Value Propositions for a Company

A value proposition is a statement outlining the set of values and benefits that a certain company intends to confer on its customers (Barnes et al, 2009). It is not a marketing strategy or slogan but serves to attract customers to the product thus not choosing the competitor products. There are five types of value propositions that a company can use in its strategies. The first strategy is the more for more propositions which provides more benefits to the customers by increasing the price of the products. In so doing, the company may be trying to justify an increment in the price of a popular product. An example is the case of a car manufacturer that improves the features of a car thus increasing its price. The company could come up with a statement that says: To high class responsible drivers who need to always be in control, Mercedes is a state of the art car that gives you maneuvering features therefore making you more comfortable as you drive.

The second type of proposition is the more for same proposition that justifies a company offering the consumers more benefits at the same price. This proposition is more appealing to the consumers because they pay little amount of money for more benefits. The use of this proposition is a good strategy of pulling consumers that would have otherwise purchased the benefits at higher prices. One example would be the improvement of the quality of a detergent but still maintaining the same price. For example, Aerial may use better chemicals that fight off germs and stains and still maintain the same price. For instance, they could say: To jubilant and responsible mothers who need better quality in laundry, Aerial is tough on stains and soft on skin therefore improving the laundry experience at the same price.

The more for less proposition is also appealing to the consumers as it communicates a company’s willingness to increase the benefits of a certain product while reducing its price (Osterwalder & Papadakos, 2014). Normally, the proposition is hard to achieve among many companies and is usually used in times of stiff competition. However, the increased in benefits does not also mean an improvement in the tangible benefits but rather a better customer service experience. For example, Toyota Company may improve the comfortability of the seats for its brand while offering a warranty of one year. This proposition may be structured as: To sensitive and high class drivers who require more leg room and comfort, Toyota has now increased the leg room for all the five seats of its car while increasing the warranty of the cars by an extra one year.

In the fourth proposition, the same for less, a company may be reducing the price of a commodity or service while maintaining the same quality.  A supermarket may for instance reduce the price of its products to levels lower than its competitors. In such instances, it can state the following: To price conscious shoppers who need the same products at lower prices, Wal-Mart store always offers lower prices for the same products while maintain the same excellent customer service experience.

The last proposition is known as the less for much less proposition and communicates a decision to lower the benefits accrued from a certain product while reducing the price for the same. This is a strategy targeted at lower end consumers who prefer cheaper substitutes for highly priced products. For instance, a retail store may state as thus: To price conscious and saving customers who prefer substitutes, Uchumi is a second hand retail store that offers cheaper products that serves the same needs of the consumer.



Barnes, C., Blake, H., & Pinder, D. (2009). Creating & delivering your value proposition: Managing customer experience for profit. London: Kogan Page.

Osterwalder, A., & Papadakos, T. (2014). Get started with … Value proposition design: How to create products and services customers want. Hoboken, NJ: Wiley.

Do you need an Original High Quality Academic Custom Essay?