2.2. Business Idea & Value Proposition

Every new business must be distinguished the market by at least one unique selling. The unique selling proposition can refer to all features of a product or service. The unique selling proposition can relate to different dimensions at the same time. In any case, the business idea must offer the customer a previously unavailable benefit. What the special benefit for the customer is must be defined for the respective business idea. It can be: the offer is cheaper, the business is new at the location, the service better that of the competitors The unique selling proposition must be geared to the specific market situation of the enterprise. The unique selling proposition does not have to be something extraordinary or innovative, it is sufficient to justify the unique selling proposition from the respective subjective situation of the enterprise. If, for example, there is no baker in a district, the first one is the sole provider.

Unique selling proposition: Price

Perhaps the most significant unique selling proposition is price. Price is used to pursue differentiated business strategies. They must be defined in the business plan when determining the price. They can be distinguished and interpreted:

"Low price" (particularly favourable),

"High Award" (especially valuable)

"Normal price" (lies in the average),

"Maximum price" (most expensive),

"Lowest price" (cheapest, a bargain).

Price is a decisive differentiating criterion because in the consumer society there is almost nothing left that does not already exist. Services are becoming more and more similar in quality, so they have to show a price difference to be bought.

At the same time, determining the price implies a strategic orientation of the company. A company that positions itself in the low-price segment will only be able to offer certain qualities (simple) and appeal to certain target customers. A company that positions itself in high-price segments will only be able to attract target customers of this level.    

Unique selling point: speed

According to the motto, time is money, speed is a unique selling point. The way to deliver on the value proposition is an increasingly important argument for customers. Speed promises immediate satisfaction of needs. As customer orientation grows, so does the desire for fast service and immediate, individual attention. Those who promise this and can deliver it gain a competitive advantage. Speed is a criterion that can apply to low-priced offers as well as to exclusive luxury goods.

 

Possible dimensions of fast:

fast + customer orientation

fast + delivery and service

fast + production

fast + organisation and personnel

fast + payment

If a service company focuses on the characteristic of speed, it must also be fast. It must communicate to its customers what is meant by this. A fast service means that the phone is picked up at the latest after the third ring. If a transport company wants to be "fast and safe", there must be no delays and accidents.

Example: example of a successful company whose unique selling point is "speed" is the online mail order company Amazon. Amazon is an international household name among customers who like to order their goods over the internet. In addition to a wide range of products, the promise of fast and uncomplicated delivery of goods is crucial to the company's success. This promise becomes even more attractive with the offer of a so-called "Prime membership", which advertises with the argument of goods delivery within 24 hours.

Unique selling proposition: Market niche

The market gap is the area of the market that is still "free". The market is not yet occupied by another product or service.

Every company must constantly search for new markets or "market gaps". There are always market areas and niches that are still unoccupied. To track them down, a view with "other eyes" is necessary. this context, the term definitely different levels

Market niche means, for example, having detailed industry knowledge and technical know-how when developing a new product, so that the service can be fitted into the existing product ranges - including those of competitors.

Market niche means, for example, when choosing a location, finding the optimal place that is not yet occupied. It's like a jigsaw puzzle, the piece only fits into the picture at a very specific place.

The market gap practically means that a certain offer new to the customer It does not matter whether the business idea or the service is new. The market gap is found when the offer is new to the customer.

Unique selling proposition: Copying successful ideas

It can be helpful and cost-effective to copy ideas. Other countries are doing this to an unimaginable extent, such as China. There are business ideas all over the world that have already proven their success. Often these can be transferred - with modifications if necessary - to old markets or existing locations. Copying ideas and adapting them to the market opens up new markets and establishes a business with limited risk. The franchise idea is based on this concept. Copyrights or other industrial property rights must be respected.

Unique selling proposition: Trendy offers

Now, trend is not a unique selling proposition, it is rather an opportunity to make current market offers with "trendy" products and services There are constantly new products and services that can be defined as market trends. Those who are in the trend are at the top in the market. The one who recognises the trend early and creates services for it is usually ahead. The trend symbolises a basic mood in which products and services are particularly current.

The trend also knows different levels. For example, wellness, health, best agers or 50-plus, organic and energy are just as trendy as "youth". Typical products and services in fashion, sport, health and music are made from these basic social orientations. The question is, what is "trendy", what is "in". What can be sold quickly and in the latest fashion. What catches on with the customer is what catches on.

Unique selling proposition: innovation and novelty

Innovations are novelties and both technical and social inventions generated by the application of new processes and techniques. Innovations are economic novelties.

Germany can be considered the "Land of Ideas". The list of new products and services is outstanding, for example, in car technology, biotechnology, chemistry, energy, medicine, logistics, process engineering, psychological methods, living environments, etc.

Innovations are also directed towards new methods and a particular type of service. For example, the development of the call centre, which was based on telecommunications technology, can be seen as an innovation in the service sector. If technical innovations are marketed with economic expertise, there are good chances of success.

Innovations are generated in renewal processes. This applies, for example, to spin-offsin which scientists develop and sell products from their scientific research at the university. For this purpose, new companies (start-ups) are usually founded out of the university.

Innovative products or services represent "real" novelties. The service offered is really new. Bisically, this offer did not exist. This can be a product or service that not existed in the form offered of its quality, its benefits, its presentation, its distribution area, its manufacturer, its degree of innovation, its profitability or its service Novelties are becoming more and more frequent. Examples: "RTL is looking for the superstar", "videophone", "fashion creations", "computers MPx players, social networks.

Unique selling proposition: Specialisation

Specialisation is also typical for business start-ups. It refers to the fact that products or services are presented and sold in a specific way. They are separated, so to speak: One-product companies.

Specialisation can be well illustrated by the total assortment of a department store, where originally all goods were presented under one roof in a single large room. The concept of the "shop-in-shop system", in which individual products are marketed exclusively in separate business premises under the roof of a department store, can be seen as specialisation. Specialisation in the technical field also means that a single product is developed further in such a way that it could be used to set up its own company.

Specialisation means getting involved in what is special and taking it to market maturity.