Unit 2: The Business Plan

Lesson 3
The Business Plan Contents (II): Target
Customers, Value Proposition, Market,
and Product Offering

Entrepreneurship
Senior High School Applied - Academic
What is your idea of
presenting your
proposed product or
service?

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Learning
Objective
Discuss the different parts of a
At the end of the business plan.
lesson, you should
be able to do the
following:

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Why is it important to
have a catchy tagline for
your business?

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 How can you
integrate your
tagline in
promoting your
business?

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 Target Customers

The target market refers

to a selected and
well-defined client
segment among the
businesses’ serviceable
market.

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 How to define your market?

Segment the market:

Segment the serviceable market consistent
with their demographics, geography,
psychographics, and behavioral patterns.

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 How to define your market?

Identify the Unique Selling Proposition

(USP):
The USP is what differentiates you from other
competitors. It's why shoppers like your
product over others.

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 How to define your market?

Analyze the customer base:

If you’re already in business, the most
effective way to outline your target market is
to gather your client information and to
analyze it.

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 How to define your market?

Analyze the competitors’ customer base:

Who does your competitor aim to target
through their promotional efforts? Where do
they sell their products? You can either choose
the same target market or opt for a rather
completely different phase.

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Why does a good value
proposition have a big impact in
attracting customers?

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 Value Proposition

A value proposition refers to the worth an

organization guarantees to deliver to
customers should they prefer to obtain their
product.

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 Value Proposition

● Create a robust differentiation between you

and your competitors.
● Increase the standard of prospective leads.
● Gain market share in your targeted
segments.

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 Value Proposition

● Improve your operation potency.

● Increase your revenue.
● Ensure that everybody in your company
communicates a similar message.

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Remember

A successful value proposition should be

communicated to customers directly,
either via the company's internet site or
alternative promotion or advertising.

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 Product and/or Services Offering

This section must showcase the standard,

value, and advantages your business offers.

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 Product and/or Services Offering

● a short explanation of the products or

services you are offering
● the proposed price of the products or
services
● differentiation between your products or
services to be offered and your competitors’
offering
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 Product and/or Services Offering
● information about your marketing styles and
strategies
● the process on how your customers will
process or fulfill their orders
● any legal issues that you need to address like
intellectual property and/or trademarks
● any products or services you plan to offer in
the future
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Remember

The business plan’s products and

services section is the heart of the
business plan itself. While other parts of
the business plan are also important, the
products and services section is the soul
of the business. All other parts of the
business plan should be anchored in this
section.
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 Example: Product Offering Sample

Holiday Hills Cycle Rentals

Holiday Hills Cycle Rentals offers a comprehensive line

of bicycles and cycling instrumentation for all ages and
levels of ability. Since the standard client seeks
medium-quality equipment and wonderful services at
competitive costs, we'll concentrate on providing
brands like Keysto Bikes and Exustar helmets.

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 Example: Product Offering Sample

Holiday Hills Cycle Rentals

These manufacturers have good reviews as a mid- to

high-level quality of bikes, in contrast to equipment
generally found within the rental market.

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 Example: Product Offering Sample

Price per hour Price per day Price per week

(in Php) (in Php) (in Php)

Bicycle 50 500 3000

Helmet 10 100 500

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 Example: Product Offering Sample

Notes:

● Customers can extend the rental term by messaging

our social media page or contacting us using our
phone numbers.
● A grace period of two hours will be applied to all
rentals; we will not charge any additional amount if
the customer brings back the product within the
grace period.

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 Example: Product Offering Sample

Competition:

Holiday Hills Cycle Rentals will have great

advantages over its primary competitor, the bike
shops located in Brgy. San Antonio, San Pedro,
Laguna due to the following:

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 Example: Product Offering Sample

● It will provide newer equipment inventory with great

quality.
● The price of the rental is 20 percent lower than the
other bike shop.
● The customer can extend the rent by using social
media or phone numbers.
● A grace period for returning bikes that will make it a
customer-friendly bike shop.

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Tip

When you draft your products

and services section, consider
your reader as someone who has
very little knowledge about your
business. Be clear to the purpose.

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 Activity

If you will promote your business using a

poster, how will it be?

Make an advertising poster that indicates your

product or service to offer and your value
proposition.

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 Questions
Part A.
1. Why is there a need to specify the target customers of a
proposed business?
2. Why is there a need to describe the products or
services to be offered to the target customers?
3. What should be considered in determining the price of
a product or service?

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 Questions

4. What are the things that need to be considered in

making a value proposition for a product or service?
5. Why is there a need to determine the advantage of a
proposed product or service against its competitor?

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 Questions
Part B. Write a possible value proposition statement for the following
businesses:

Business Value Proposition Statement

Meat Shop

Teleconferencing Service

Hardware Store

Computer Accessories Shop

Bakeshop

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 Wrap Up

The target market refers to a selected and

well-defined client segment among the business’s
serviceable market.

A value proposition refers to the worth an

organization guarantees to deliver to customers
should they prefer to obtain their product.

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 Wrap Up

The products and services section of your business

plan is not only the inventory of what your
business wants to produce.

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Wrap Up

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 Bibliography
Allen, Scott. “Write a Business Plan Concept and Value Proposition.” The Balance Small Business.
Accessed on March 30, 2020.
https://www.thebalancesmb.com/writing-business-plan-concept-value-proposition-1200835.

Duermyer, Randy. “How to Write the Product and Services Section of Your Business Plan.” The
Balance Small Business. Accessed on March 30, 2020.
https://www.thebalancesmb.com/business-plan-format-1794224.

Kauffman, Ewing Marion. “Value Proposition.” Accessed on March 30, 2020.

https://www.entrepreneurship.org/articles/2007/03/value-proposition.

Pahwa, Aashish. “Target Market - Definition, Examples, Strategies, & Analysis.” Feedough.
Accessed on March 30, 2020.
https://www.feedough.com/target-market-definition-examples-strategies-analysis/#What-Is-A-T
arget-Market.

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 Bibliography
Shewan, Dan. “7 Of the Best Value Proposition Examples We've Ever Seen.” WordStream.
Accessed on March 30, 2020.
https://www.wordstream.com/blog/ws/2016/04/27/value-proposition-examples.

Twin, Alexandra. “Value Proposition: Why Consumers Should Buy a Product or Use a Service.”
Investopedia. Accessed on March 30, 2020.
https://www.investopedia.com/terms/v/valueproposition.asp.

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