entrepreneurship

Lesson 3: Finding the Value Proposition

 Creating a
value proposition

A value proposition is the benefit or

value that companies give to
customers through their products
and services.

Entrepreneurship
 Creating a
value proposition
• To provide a concrete benefit or value, you
need to know the market segment you serve.
• A market segment is group of customers with
the same characteristics or needs.
• It is important to identify a market segment
because no product or service can satisfy
everyone.

Entrepreneurship
 customer persona:
a face to your segment
• A customer persona is like a fictional
character that represents the market segment.
• It will help you recognize key traits that affect
your customer's decision to buy your product,
such as:
• Gender, age
• Motivation for buying
• Influences
• Where they shop
• What media platforms they use
Entrepreneurship
 Finding a value
proposition canvas
There are two ways to create a value proposition:
• Start with the product
• Start with the customer

Entrepreneurship
 Finding a value
proposition canvas
Product-driven
• Look at product features and strengths,
how it can help customers, and how it
stands out from competitors.

Entrepreneurship
 Finding a value
proposition canvas
Customer-driven
• Look at customers' needs and behaviors,
and use your observations to develop a
product around what they need and want.

Entrepreneurship
Value proposition canvas questions
1. Persona Fill in the name of your persona. Which customer segment do you have in mind for this proposition?
2. Job-to-be-done What are the jobs your customer is trying to get done in work or life? These could be both functional
and social. What basic needs do your customers have (emotional and/or personal)?
3. Gains What would make your customer happy? What outcomes do they expect and what would exceed
their expectations? Think of the social benefits, functional, and financial gains.
4. Pains What is annoying or troubling your customer? What is preventing them from getting the job done?
What is hindering your customer’s activities?
5. Gain creators What can you offer your customers to help them fulfill the gains? Be concrete (in quantity and
quality)
6. Pain relievers How can you help your customers relieve their pains? Be explicit about how you can help.
7. Products & Services What products and services can you offer your customer so they can get their job done?

Entrepreneurship
Sample customer persona
Joanna, a young entrepreneur, wants to start a small fashion boutique that sells clothes for
“females aged 16-19 years old.” After interviewing several teens, she created this persona for
her target segment:

1. Persona Ingrid, 17 years old, high school student

2. Job-to-be-done Wants to have nice clothes for going out, but does not want to spend much
3. Gains Happy if she can buy the latest fashion and save money at the same time
4. Pains The mall is too far and would need to spend for transportation to go there
5. Gain creators Wants to feel pretty and save money at the same time
6. Pain relievers Stylish and comfortable clothes within her budget. Willing to spend P300 on clothes
7. Products & Services Sell clothes in a neighborhood fashion boutique

Entrepreneurship
Value proposition statement
Your analysis of the customer persona and how your products
meet the needs must be summarized in a value proposition.
To (target segment and need), our (brand/product) is
(concept/category) that (difference).

Joanna’s value proposition for her fashion boutique will be:

To high school teenagers, our clothes are trendy and

fashionable that are reasonably priced and can be
purchased conveniently.

Entrepreneurship