Your Elevator Pitch and

your Value Proposition

Whats an Elevator pitch?

It is a brief, carefully constructed statement that
outlines the merits of a business opportunity.
Communicating your business in a way that gets
people excited and thinking
Most elevator speeches are 45 seconds to 2
minutes long.
To come up with a good pitch, think..
WHAT IS THE CUSTOMER PROBLEM?
What pain are you relieving?

Guidelines for Preparing Elevator Pitch

Steps Description

Time

Step 1: Describe the opportunity or problem that needs to be solved

20 seconds

Step 2: Describe how your product or service meets the opportunity or solved the problem

20 seconds

Step 3: Describe your qualifications

10 seconds

Step 4: Describe your market

10 seconds

Total
Source: Barringer, B., Ireland, D. 2008. Entrepreneurship. Second edition page 289

60 Seconds

http://www.youtube.com/watch?v=Tq0tan49rmc
http://www.youtube.com/watch?v=phyU2BThK4Q

Elevator Pitch
Questions:
Identify the problem that the service is relieving.
What are the benefits for the potential client?
What are the characteristics of the service?
https://www.youtube.com/watch?v=g4o_YQ4qBGQ
https://www.youtube.com/watch?v=Cymp7rLBY48

Elevator Pitch
Shark Tank Questions:
What problem does this product/service solve?
What do you think about the entrepreneur
solution?
Does the entrepreneur get funded?

Shark Tank Season 3 Episode 11 (17:59min).

Shark Tank Season 3 Episode 12 (15:00min)
Shark Tank Season 3 Episode 1 part 1 (1:38min).
Shark Tank Season 3 Episode 7 part 1 (2:41min).

For more examples ..

Read the sections you be the V.C on your book.
Read the assignment in the intranet.
Watch Shark Tank videos available in youtube.

Watch DragonDen:
http://www.youtube.com/user/dragonsden2011

Tell the Story

Helps you to connect with your
audience in its every day life and
believes to discover its insights.
Time to clearly state what pain
youre addressing and how your
business solves this.
Help you to build on your
sentence to provide a clear picture
of your business offering.
The storytelling can made your
communication more persuasive.

Process of New Products Development

Detail by Stages

Preliminary
Technical
Analysis

Technical/ Production
Activities

Ideas
Generation

Not
go
Initial
Scan

Marketing
Activities

STAGE I:
IDEA

Not
go

g
o

Preliminary
Evaluation

Preliminary
Market
Analysis

STAGE II: PRELIMINARY

ANALYSIS

Product
Test

Technical Concept
Generation

Not go

g
o

Concept
Evaluation

Concepts
Identification
Market
Research

Concept
Test
Market
Research

STAGE III:
THE CONCEPT

Source: Robert G. Cooper - Predevolpment Activities Determine New Product Success

Not go

g
o

Product
Development

go

Concept and
Product Test

STAGE IV:
THE DEVELOP

Concept of the product

An elaborate version of the business idea.
Focus on an specific target market. Should include
the user/client. Who will use the product/service?
What are the main benefits offered?
Must include a valuable promise to your customer or
a problem that you are solving.
All concepts should be clear, unique and credible.

Concept of the product

Concept of the product

Before you developed your concept
statement, you need to know:
Target Market.
Why is important your product or service?
Please include here the problem that you solved and
the benefits that your customers will receive.

Describe why is unique in your product or service

proposed.
Mentioned why people should believe in your
offer.

Concept Statement of the product

To..(your target market)..
The brand (that will include the product/service)
is the (qualify: is the best, the unique, the first).
Set category (i.e. the best what?).
That .(mention your benefits)
Because..(attributes that serve as support to your
benefits. You want that people believe in your offers).

Concept of the product (example)

To..(all people worried about their mouth health
and that always look for the best)..
Your brand (Colgate Total)
is the (qualify: is the best, the unique, the first).
Set category (i.e. is the toothpaste premium).
That .(that provides complete protection)
Because..(because its action kill all the bacteria for
long time).

Concept of the product (example)

To..(all women worried about their dry skin)..
Your brand (Dove)
is the (qualify: is the best, the unique, the first).
Set category (i.e. is the soap).
That .(that provides a more beautiful smooth skin)
Because..(because it contains one quarter of
moisturising cream and neutral cleansing
ingredients).

Concept of the product

SweetDreams ChildCare is targeted at health-care professionals
employed during the evening shifts, primarily in Jackson
Memorial Hospital, who have children between the ages of
18months to six years of age.
SweetDreams Childcare, is currently the first and only evening
childcare in the geographic market that offers a safe, statelicensed, affordable, and convenient facility. Its certification,
surveillance cameras, convenient hours, and flexibility allow
the company to provide its customers with these benefits.

Components of Business Model Canvas

Who?

How?
What?

How much?
Logical Side
Efficiency

Emotional Side
Value Creation

1 Customer Segment
Customer groups represent separate segments if:
- Their needs require and justify a distinct offer
- They are reached through different Distribution
Channels
- They require different types of relationships
- They have substantially different profi tabilities
- They are willing to pay for different aspects of the offer

1 Customer Segment
Types:

- Mass market
- Segmented market
- Diversified (multiple unrelated segments)

- Niche market
- Multi sided platform or market

If I had asked my clients what they needed,

they would have said a better horse
Henry Ford

What can I use to understand my

customers?
Empathy maps
Used whenever you find a need to
immerse yourself in a users
environment, behaviours, concerns and
aspirations.
They can be helpful when, but are not
limited to:
Diving into the customer segments of
a business model canvas
Capturing the behaviors of a
customer in a interview.

Whats the look like of an Empathy Map?

Is a tool that
helps sketching
the profile of a
customer
segment.

Consists of a
simple face
surrounded by
six sections

https://www.youtube.com/watch?v=ZaUwfAss3Tk

How would I use an Empathy Map?

They can be used during contextual inquiry or as a communication
tool within the team or support the creation of persons profiles.
Thinking & feeling about their
worries or aspirations?

Hearing while using our

product, from their family,
friends or colleagues?

Seeing while using

our product in their
environment?

Saying & doing while

using our product in
public or in private?

Experiencing as a pain
point or fear when using
our product?

Experiencing as a
positive or gain when
using our product?

Empathy Map: Identify needs and insights

IDENTIFY NEEDS:
Needs are human emotional or
physical necessities. Needs help
define your design challenge.

IDENTIFY INSIGHTS:
An Insight is a remarkable
realization that you could leverage
to better respond to a design
challenge.
Insights often grow from
contradictions between two user
attributes or from asking yourself
Why? when you notice strange
behavior.
https://www.youtube.com/watch?v=RuucbQQYw-0

Empathy map:
Entertainment Coffee Bar

2 Value Proposition
Creates value for customer through a
distinct mix of elements that satisfies
its needs.
http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2879

2 Value Proposition Types

Qualitative

Quantitative

- Newness

- Price

- Performance
- Customization
- Getting the job done
- Design
- Status

- Brand

- Cost Reduction

- Risk Reduction
- Accesibility
- Convenience
- Usability

Most of the time people do not know

what they want until you show it
Steve Jobs

Value Proposition Canvas

A helpful tool to project, test and build
the value business proposition of
customers in a more structure and
reflective way.

http://www.youtube.com/watch?v=xTtvwAmjais

What is a Pain?
Negative consequences for not acting

B2B Examples:
- Lost of sales or incomes
- Lost of market share
- Lost of opportunities
- Inability to stay competitive
- Embarrasement
- Polithical implications (between business units or
between executives to excel to show results)

Value Proposition Canvas

Customer Gains gather all the customers benefits and
desires, and may span personal, functional, or economical etc.
For example, this box could include positive emotions,
functional requirements, or specific cost savings.

Customer Jobs gather all the

customer needs, the problems
that they are trying to solve and
the tasks they are trying to
perform or complete

Customer Pains gather all the negative emotions and

undesired costs, situations and risk which the
customer could experience before, during and after
getting the job is done

Value Proposition Canvas

Gain Creators describe how your product
creates customer gain, how it offers an added
value to your customer.

Product & Services list all the products

and services which your value proposition
is build around. This includes for example
the services that you offer or the help the
customer receives either a functional,
social, or emotional.

Pain Relievers describe how your products

addresses the challenges needs and the pains
of the customer, how you eliminate negative
emotions, undesired costs or avoidable
situations.

Strategic Positioning
Is the creation of a unique and valuable position, involving a
different set of activities:
Serving few needs of many customers
Serving broad needs of few customers
Requires you to make trade-offs in competing to choose what
not to do.
You cannot be all things to all people.
Focus on developing a solution and a brand that is
meaningful and consistent to customers.
Emphasize serving one market well and explore growth
opportunities later.
Involves creating a fit among a companys activities and
reinforce one another .

Pillars of Proposals for Brand Value (Aaker)

Provide to customer
the basis for
selection. Without
differentiation would
not have loyalty
from customers.
Everything would be
price.

FUNCTIONAL
BENEFITS

DIFFERENTIATION
SELFEXPRESSIN
BENEFITS

EMOTIONAL
BENEFITS

HIERARCHY OF NEEDS (Maslow)

Proposition of Differential Value

Functional, Technical or Sensory Benefits

Benefits based on attributes of the product / service.

Objective is to differentiate / improve performance
Provides useful "functional" to the consumer.
Develop the Power Brand Leadership type

Printer speed HP
Taste of a hamburger Bembos
Efficient Customer Service DHL
Great customer service (BCP)
Nutrient (Ideal Milk)

Proposition of Differential Value

Emotional Benefits
Positive feeling that arouses in the consumer purchase /
use of a BRAND.
Provide depth to the experience of use of the brands
Develop the Leadership type Icon Brand

Open Happiness (Coca Cola)

Funny Experience Universal studios
Affective children (Ronald Mc Donalds)
Electronic music Live (Camden Town London Store)
Magic Cuy sympathy, Pyme Business Solution (BCP)

Proposition of Differential Value

Self-expression Benefit
The BRAND is a vehicle to express who I am or who I want to
be.
Indicate personal and social assertiveness.
Expression is more than feelings.
It refers to the permanent more than the temporary
Develop Leadership of Identity or Explorer Brand

The Peruvians are creative (Inca Kola)

The taste of the new generation (Pepsi)
We are the bank of moving the country (Mi Banco)
Your potential, our passion (Microsoft)
Life's good (LG)
Keep walking (Johnny Walker)