| One of the first things discussed when you talk to | | | | because McDonald's is family, children friendly and |
| venture firms, lenders, consultants and others is what | | | | affordable. The sign "McDonald's" stood for |
| is the company "value proposition". Companies are | | | | something; a quality yet affordable, welcoming place. |
| addressed among members of these groups and the | | | | You always knew exactly what to expect when you |
| value proposition is often discussed as to whether | | | | saw that sign. Their success proves the point that |
| the company is financial attractive. Do you know | | | | this was not an accident. Its founder, Ray Kroc, and |
| your company's "value proposition"? | | | | his managers took their mission as seriously as |
| The "value proposition" can be thought of as why | | | | executives at the largest corporations. |
| the organization exists, what the company does. The | | | | The key is to broaden your thinking about your |
| question seems simple. The answer seems simple. | | | | product or service. Beware of slipping into a "safe" |
| The company provides a service or a product to a | | | | comfort zone. Do you sell insurance or the peace of |
| particular industry or segment of the population. A | | | | mind that no matter what happens your home will be |
| beauty salon may offer haircuts, styling, coloring, | | | | replaced or that you can afford to have that life |
| manicures and pedicures to women in the southeast | | | | saving surgery? If you rethink what your "value |
| portion of the city. Is that what they really offer? Is | | | | proposition" is you may find end up rethinking how |
| what they offer really is for women to feel better | | | | you approach your market and how you sell your |
| about themselves, or the hope to look more | | | | product or service. If you take a fresh look at what |
| attractive? Is the socialization with the other patrons | | | | your "value proposition" is it may separate you from |
| and employees what brings these women to this | | | | organizations you think of as your competitors. It will |
| salon? User benefits out weigh users function. In | | | | also change how your customers and potential |
| today's world, perception often out weighs reality. | | | | customers ultimately view your company and bring |
| The value proposition can be much more than what | | | | about a significant, positive change in your businesses |
| appears to be on the surface and the value | | | | future.. Take our insurance example from above. |
| proposition may not be so easily recognized. | | | | When you are selling peace of mind, does that not |
| Business's that ignore the importance of either do so | | | | also include other insurance products to make sure |
| at their own peril. | | | | your customer has as complete a peace of mind as |
| McDonald's, before they served breakfast and | | | | possible about as many things as possible. This would |
| became a coffee bistro, was in my mind an | | | | include not only is house and health insurance but also |
| inexpensive place to get a quick meal, a hamburger, | | | | his auto, retirement and any other insurable event |
| french fries and a shake. However, my marketing | | | | that would keep your client up at night. A all too |
| friends would tell me that McDonald's was a place | | | | common mistake is to serve customers in one |
| that produced a consistent meal in a consistently | | | | segment of your business and not market other |
| clean environment at an affordable price.. The key | | | | services you could provide as well. |
| word is "consistent". You could depend on getting the | | | | The question what is your company's "value |
| same tasting, size, quality meal no matter where you | | | | proposition", should not be taken lightly. I recommend |
| went in the U.S.A. and now the world. This became | | | | you discuss this subject with your employees as well |
| McDonald's value proposition. You could depend on | | | | as your customers. A thorough examination may |
| not getting sick from the food, the bathrooms were | | | | change how you, your employees your customers |
| kept clean, and it was better than taking your | | | | and others view your company. This will lead to a |
| chances at another fast food place elsewhere in a | | | | new way to be viable, successful and profitable. |
| strange city. Parents and grandparents loved them | | | | |