Customer value proposition for cosmetic products PDF

Running head: CUSTOMER VALUE PROPOSITION FOR COSMETIC PRODUCTS
Storyboard:
Customer value proposition theory:
Customer value proposition theory encompasses three areas namely, relevance, value
and differentiation. The term relevance refers to the actual utility of the products to the
customers which is defined by the demand of the latter. For example, the personnel at I-Face first
understand the dermatological issues of the customers to finally decide on the most relevant skin
treatment which the customer would require like UV treatment. The term value here refers to the
utility which the products bring to customers using them. I-Face to understand the requirements
of the customers conducts various medical tests using their imaging systems and photographic
systems. These tests help in identifying the actual skin ailments the customers are suffering from
right from blackheads to sun-burns. Then the customers are suggested appropriate skin treatment
as per their requirements which in turn creates value to them. The term differentiation as per as
CVP is concerned, is the outcome of relevance and value. The capability of products to meet the
requirements of the customers and create value to them enables customers to differentiate them
from competitor products. The differentiation strategy of I-Face lies in the fact that the clinic first
analyses the issues the customers are facing using medical tests like UV tests and photography.
This use of imaging of the skin of the customers enables them to understand the problematic
areas which then pave ways for determining the most appropriate treatment methods which the
customers can undergo. The dermatological professionals can also suggest the changes in their
lifestyle which the customers have to bring about in order to deal with their respective skin
problems.

1CUSTOMER VALUE PROPOSITION FOR COSMETIC PRODUCTS
Stakeholder groups of the venture-I-Face:
The stakeholder groups of I-Face can be divided into internal and external stakeholders.
Internal stakeholders:
The key internal stakeholders are the management of I-Face, the managers and the front
level employees who offer services directly to the customers. The management of I-Face makes
strategies about all areas of business which the clinical center can adopt to cause value to the
customers. The areas of decisions include marketing mix of the dermatological clinic, key
performance indicators to measure the performance of the staff as well as sanctioning of funds to
acquire machinery like imaging machine. The managers supervise the service provider
professionals and enable the latter deal with complex customer complaints. The service
providing staff offer services directly to the customers and thus have to capability of ensuring
high level of customer satisfaction and business generation.
External stakeholders:
The key external stakeholders are investors, sales channels and partners. The investors
invest capital into the shares of I-Face which I-Face which attribute the capital base of the latter.
The sales channels consists of promotion companies and the medical technological firm which
development the website for I-Face. The partners are the suppliers of machinery and
pharmaceutical products are also key external stakeholders.
Value proposition of two other stakeholder groups:
The two other stakeholder groups which I-Face satisfies are the customers and banks. The
dermatological treatment center creates value to customers by providing them with superior

2CUSTOMER VALUE PROPOSITION FOR COSMETIC PRODUCTS
treatment. Similarly, the firm creates value to the banks by opening accounts and purchasing
their financial products, thus generating revenue for them.
Video transcript:
Time in
seconds
Transcript
0.08 Hello. This video is about CVP of customer value proposition which
dermatological centers have to ensure
0.12 The organization considered would I-Face which provides services like
dermatological tests like UV imaging. The result is customers are able to see their
skin problems.
0.20 CVP stands on three pillars relevance, value and differentiation. Relevance
refers to identifying the needs of the customers while value refers to the benefits
customers derive from appropriate product offerings based on relevance. The
outcome of the two is differentiation.
0.30 The treatment center has to ensure that is able to provide customers with
appropriate advices regarding their skin problems based on medical tests.
0.60 The center creates customer value by first analyzing the problem of customers
using imaging and other advanced systems.
1.10 Then the professionals advice the customers on the treatments which they should
undergo.
1.30 I-Face serves several key stakeholders both internal and external. Internal
stakeholder groups are the management, managers and employees. The external
key stakeholders are sales channels, promotion companies and investors. The