Value Proposition Evolution in Internal Corporate Ventures

This compilation of research articles and books focuses on the concept of value proposition, its evolution, and its impact on business performance. The studies examine how companies can create unique value for customers by understanding their needs, developing strategic positioning, and co-creating value with them. Additionally, the articles discuss the importance of perceived value in driving customer satisfaction and loyalty. Furthermore, they highlight the significance of trust and assurance in building strong relationships between businesses and their customers. Overall, this collection of research provides valuable insights for marketers and business leaders on how to create competitive advantages by crafting compelling value propositions that meet the needs of their target audiences.

Marketing Management
Table of content
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Introduction
In a competitive market, the business Qatar Airwayss try to increase their market share
as much as possible because the market share determines the Qatar Airways's existence
potential in the market. Therefore, the Qatar Airwayss try to achieve goodwill in the market to
increase their market share. To achieve the goodwill the Qatar Airwayss has to satisfy their
customers by providing standard products and services. The Qatar Airwayss use some
marketing and promotion strategies to increase their market share in the market (Anker et al.
2015). The Qatar Airwayss try to earn some value in the market by providing quality products
and services to the customers. The thesis statement of this assignment is the use of value
propositions in the Qatar Airwayss to create discrimination with the other products and services
in the market. Actually, the Qatar Airwayss make the discrimination with the other products in
the market by using some innovative marketing strategies, production process and business
strategies this discrimination process is known as Value proposition (Covin et al. 2015).
Identify the customer perceived value for the customers for a company
Customer perceives valuation model so that it can broadly divided into three stage which
is as follows: The unidimensional conceptualization. Here customer mainly focus on the the
quality price relationship which lead to understand the value of cognitive trade off between
perception of quality sacrifice.
Further the customer perceived value is the different betwixt the prospective customers
evaluation of all the profit and cost of an contribution and the detected alternatives.
Total customer value is known as the detected monetary value of the bundle which
economic, functional and benefits to customer expect from the given market offering. On the
other hand total customer value is known as the bundle of cost which consumer expect to incur
in measureing as well as acquire and position of the given marketing contribution.
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The Qatar Airwayss create the value proposition by providing excellent quality products
and services to the customers at a best price. This is a promise to the customer made by the
Qatar Airwayss that the Qatar Airwayss are bound to deliver best quality products to the
customer at best price (Bharadwaj et al. 2015). The Qatar Airwayss are developing the value
proposition by analyze the advantages, expenses and value that the product and services of the
Qatar Airwayss deliver to the customers. The value proposition also provides an opportunity to
the Qatar Airwayss to describe the reasons why the customers use the products and services of
the Qatar Airwayss. The Qatar Airwayss also use the value proposition as a marketing
statement to convince the customers that the product and services provided by the Qatar
Airways is better than other similar products and services in the market (Covin et al. 2015).
Customer perceived value of Airiness
Creation of Value proposition: The processes followed by the Qatar Airwayss to create
the value proposition in the market are as follows:
 A) The Qatar Airwayss have to do a proper analysis about the demand pattern of the
customers in the market and the Qatar Airwayss have to design the products according to
the requirements of the customers. The Qatar Airwayss also do analysis about the per
4 Illustration 1: Customer
percived value

capita income and purchasing power of the customers and set the price of the products
and services according to the purchasing power of the customers (Anker et al. 2015).
 B) The Qatar Airwayss have to conduct a feedback process regularly to provide an
opportunity to the customers that how the product meets their requirements and the price
of the products is equal to the value of the requirements meet by the product. The
customers also share the experiences about the use of the products and provide some idea
and opinions to increase the effectiveness of the products. The Qatar Airwayss follow
the opinions while they develop the existing products (Covin et al. 2015).
 C) The Qatar Airwayss also do some research in the market to know the value of other
products in the market. The Qatar Airwayss try to know the price of the other products,
the features of the products for that the customers use products and the marketing
strategies used by the other products to increase their market share (Bharadwaj et al.
2015). After getting the detail information about the products the Qatar Airwayss use the
information to set the price of the products, develop new products with new features
according to the market demand and launch the products in the market by using
innovative marketing strategies (Anker et al. 2015)..
 D) The Qatar Airwayss calculate the value of the products in the marker by deduct the
cost from the benefits provided to the customers. The size of the difference between the
cost and benefits describe the performance of the products in the market. Therefore, the
Qatar Airwayss try to increase the difference between the cost and benefits to create
better value proposition than other products in the market (Gengler and Mulvey, 2017).
 E) The research and development department of the Qatar Airways played a vital role to
create value proposition in the market. The research and development departments invent
new production process and add new features in the products that improve the quality of
the products (Bharadwaj et al. 2015). The new production process also decrease the
production cost of the products that provide a competitive advantages to the Qatar
Airwayss in the market. The research department also develop some new marketing and
promotion strategies to increase the competitive advantages in the market.
 F) The satisfactory feedback from the customers and recommendations of the customers
also help the Qatar Airwayss to create the value proposition in the market (Gengler and
Mulvey, 2017).
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Creation of Competitive advantages through value proposition: The process that
followed by the Values propositions to create the competitive advantages in the market for the
company. The processes are as follows:
A) The value proposition provide a direction to the Qatar Airwayss to design and develop the
products and services according to the requirements of the customers, The power of the products
to meet the requirements of the customers create a competitive advantage for the organizations
in the market (Li et al. 2014).
B) The value proposition helps the Qatar Airways to take the initiatives and business activities
according to the demand of the customers (Bharadwaj et al. 2015). The value proposition
provides a guide to the Qatar Airwayss to know the customers, the process to meet the
requirements of the customers and the reasons that push the customers to use the products of the
Qatar Airwayss. All such aspects help the Qatar Airways to create a customer focused
competitive advantage in the market (Anker et al. 2015).
Wide selection of products which go beyond the remit of airline company. Online booking
facility which involve help customer in booking ticket by sitting at home. Further it can be stated
that customer are increasingly demanding so that it can easily
Graph 1.1: Airlines industry scenario overseas
(Source: Anker et al. 2015)
 C) The experience got by the customers by using the products also help the Qatar
Airways to create competitive advantages in the market. The positive experience of the
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customers helps the Qatar Airwayss to get some confidence in the market (Lodish et al.
2015).
 D) The value proposition also help the Qatar Airways associate with the customer and
recognize the requirements of the customers efficiently. The better understanding the
requirements of the customers help the Qatar Airwayss to prepare better competitive
advantages in the market (Gengler and Mulvey, 2017).
 E) The innovative marketing strategies help the Qatar Airwayss to create better value
proposition in the market and the marketing strategies provide the Qatar Airwayss a
greater competitive advantages in the market (Anker et al. 2015).
 In the following analysis of the study is about the value proposition of the airlines
companies, the process followed by the airlines Qatar Airwayss to create value
propositions in the market and use of value proposition to create the competitive
advantages in the airlines industry.
The industries maximum benefits of perceiving value i.e reliability, products, convenience,
loyalty programs, refund policy, etc.
Consumer Perceived Value of Airline industries:
As mentioned in the above analyses of the study that the value of the products is equal to
the difference between the benefits of the consumers by consuming the products and the cost
paid by the customers to consume the products (Merkert and Pearson, 2015). In the airline
industry, the consumers of the airlines services also try to get better benefits from the companies
by spending a small cost. The consumers use this approach while they select the airlines
companies. The consumers wants best airlines services at best price. The following factors help
the consumers to create a value perception about the services provided by the airlines
companies:
The comfort ability provides by the airlines companies help the consumers to make
positive value about the airline services of the airlines companies. The following comfort ability
is basic services provided by the airlines companies:
A) The consumers can buy the tickets from anywhere in the market. The availability of the
tickets of the airlines companies help to create a positive perspective about the value of the
airlines companies (Osterwalder et al. 2014).
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Graph 1.2: Financial performance of selected company
(Source: Osterwalder et al. 2014)
B) The capacity of the airline companies also helps the consumers to make a positive perception
about the services of the airline companies (Covin et al. 2015).
C) The online ticket buying facilities also make a positive perception about the value of the
airlines companies (Anker et al. 2015).
D) The quality of the food served by the airlines also create a positive perception about the
airlines company.
E) The reasonable price of the air ticket also helps the company to create a positive perception
about the value of the airlines company’s services.
The following analysis is about the value proposition created by the airline company in the
competitive airlines industry, the goals achieved by the airline company by using the value
proposition (Gengler and Mulvey, 2017).
Proposed functional value
The selected airlines company include the following features in their services to create a positive
value proposition in the market. The features are as follows:
A) The airline company tries to include excellent safety and security features in the plane.
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B) The company provides excellent quality services and hospitality to the customers and the
service of the company try to fulfil individual passenger’s requirements (Gengler and Mulvey,
2017).
C) The employees of the airline company also provide excellent services to the customers.
D) The airline company create the segmentation of the customers according to the culture and
background of the customers and the company try to provide the services according to the
cultural segments to the customers (Payne and Frow, 2014).
E) The aggressive marketing strategies and discount offers in the ticket price help the company
to increase their market share in the airlines industry. The company also create a positive value
proposition in the market by their excellent services and hospitality.
i. Customer value proposition : Target Customer / benefits / price / value proposition
Benchmarking value of existing value proposition comparison.
Customer experience
The selected airway company can provide its customer a good value for money but basically for
there money items sometime people misunderstood its concept becuae it economically price
good but it lead to bad quality product
Competitive positioning: As it can be stated that Qatar is one of the leading airway company
which make product and services which are of good quality. Further it provide facility to book
ticket online. It provide best quality product and services as compare to its competitor.
Competitive differentiation It is one of the ability to locate their online presences. Further it
make product and services which are different from its competitor in order to enhance sale.
Proposed social value
The Airlines company also use some strategies and plans to create a proper customer value in the
airline industry. The strategies are as follows:
The airline company use the Porter’s generic strategies to know the strength that help them to
create a value in the market. After analyzing the strategies, the company recognise that in the
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competitive industry the company has to provide the services at reasonable price. The strength to
set the price of the tickets according to the purchasing power of the customers help the company
to create a value in the industry. The bargaining power with the oil suppliers also helps the
company to buy the oil at a reasonable price. The low oil price helps the company to reduce their
cost and increase the profit (Pearson et al. 2015). The company also provide some discount to
the customers due to the low price in oil. The low oil cost of the company reduces the operation
cost of the company and it completes the cost leadership strategies of the company efficiently.
This kinds of incidents help the company to create a value in the industry. The research and
development department of the company also keep the company up to date with the new
technologies. The use of new technologies in the services help the company to improve the
quality of the services provided to the customers. The company also follow the differentiation
strategy in the services. According to differentiation strategy, the company create large service
segmentation based on the price of the tickets (Ponte et al. 2015). The customers who preferred
light travel they can buy the ticket at lower price and the customers who preferred luxurious
facilities during the travel they can buy the ticket of higher prices. This segmentation make the
service of the company affordable to everyone and this affordability help the company to create
a differentiation in the industry with other company (Covin et al. 2015). The company also
apply the Niche strategy in their business activity to increase the value of the company among
the customers. According to this strategy, the company is trying to utilize their resources and
capacity of the planes properly (Payne and Frow, 2014). The proper utilization of such resources
and capacity help the company to reduce the operational cost of the company and sale the air
tickets to the customers at an affordable price. This strategy helps the company to apply
differentiation and cost leadership strategy in the business activities properly. The successful
application of such strategies helps the company to increase the value in the customer’s
perspective (Gengler and Mulvey, 2017).
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Graph1.3: Net profit of selected airlines Company
(Source: Gengler and Mulvey, 2017)
New value proposition and the value criteria
The successful application of such strategies of the selected company helps them to create values
in the market but they cannot create competitive advantages in the industry. For This reason,
they cannot take lead in the airlines industry (Prahalad, and Ramaswamy, 2013). The leading
company in the airlines industry are creating better competitive advantages in the industry then
the selected company. The main reasons behind the success of the leading airlines company is
the proper use value proposition to create the competitive advantage in the market. The leading
company also use some strategies better than the selected company to make the competitive
advantage does. The strategies are as follows:
Segmentation: The leading company properly segment the market into two categories. In the
first category the company put the business travellers who travel in the airlines for the luxurious
services the company can earn most of the profit from this segments (Gengler and Mulvey,
2017).. In the second category, the company put those passengers who cannot afford the tickets
of the luxurious segments. The passengers of this category want to buy the tickets at affordable
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price. This segmentation strategy helps the airline company to create better competitive
advantages in the industry (Sawhney et al. 2017).
Focusing: The Company focus on the passengers who buy the ticket of business class for
luxurious services and these passengers preferred excellent quality services at any cost.
Therefore, the company can earn more profit if they can satisfy the passengers of the business
class by their luxurious facilities (Suki, 2014).
Positioning: The positioning strategy of the leading airlines company creates a good position
among the business class passengers and families positioned the services of the economy class of
airlines in the premium position. Therefore, it is clear that the leading airlines company also
provide good quality services to the passengers of the economy class (Li et al. 2014).
Graph1.4: Customer Perceived Performance
(Source: Li et al. 2014)
Differentiation strategy: The differentiation strategies of the airlines company also help the
company to create competitive advantages in the market (Li et al. 2014). The use of modern
technologies in the services such as mobile phone in the plane, internet browsing etc helps the
airlines company to create a differentiation in the services with other company in the market.
Marketing mix strategies: The Company use its marketing mix strategy as competitive
advantages in the market (Thompson et al. 2013). In the marketing mix strategy, the company
set the price of the products according to the requirements of the customers. The services
provided by the products of the company also provide the company a competitive advantage in
the market. The company also expand their business in different places, different countries in the
world and try to provide the services and set the price of the tickets according to the purchasing
power of the local people of that place (Lodish et al. 2015). The passengers of the airlines
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company also satisfied with the services and the number of customers of the airlines company
increase day by day.
BCG Matrix: The BCG matrix also helps the company to do the business activities according
to the profit of such activity. The company try to increase the investment in the star activity in
which the company can earn more profit (Li et al. 2014). The company shut down the business
activities properly in that place where the company incur loss consistently. The proper use of
BCG matrix also helps the company to create competitive advantages in the market (Prahalad,
and Ramaswamy, 2013).
The proper implementation of such strategies in the leading airlines company helps the company
to achieve the maximum share in the market (Suki, 2014).
Company Target
Customers
Key benefits Key price Value proposition
Qatar Airways Middle level
customers
Provides quality
facilities at
affordable prices
Affordable prices Quality services
Emirates Airways High Class
customers
Provide quality
facilities at high
prices
Unaffordable
prices
Quality services
Qatar airways can be reviewed on the basis of product, place, price and promotion
Product: that is offered by the Qatar airways is the airline service. It has various range of seats
for various class of customers.
Place: Qatar Airways caters to the international audience and has several global routes.
Price: It has positioned itself in the premium airlines of international level with five star rating.
Going- rate pricing strategy has been adopted by the company.
Promotion: Various promotional policies has been adopted by the company to create brand
awareness. It has entered into various promotional and sponsorship deals. It even rewards its
loyal customers with several benefits.
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Value Proposition is a promise of value to be delivered to the customers in the product. it
means that extra value should be added to the firm's product. It states the reason why a
consumer should by its product/ services.
The services provided by Qatar Airways are affordable and the quality of services matches to
luxurious facilities provided by some elite class airways.
According to the elements of value proposition. Qatar airways is the most optimal choice since
the services being provided by the company is not provided by any other airline service. The
service provided by Qatar airways is impactful because of the less and affordable cost of the
airline service.
There are 3 types of value propositions:
All benefits: All the benefits are included during promotion which will be offered to the target
customers.
Favourable points of difference: the focus is on to differentiate the products and services from
another.
Reasoning focus: The key points of difference is focussed to deliver the greatest value to the
customer in the near future at some affordable prices.
Value proposition is a marketing statement that a company uses to stand out of all the other
companies. The company assures to provide better offering than the other companies available
out there in the market. Qatar airways has proved to be the one standing out in terms of the
value proposition. The main USP of the service is it caters to the upper middle class and middle
class of the society with premium class of facilities. The friendliness of the cabin staff, its
entertainment system and the comfortable of its seat makes it unique in its own way. The
facilities provided by them at way cheaper cost than the other airlines.
Dimensions of value preposition:
Cost: Qatar airline offer cheaper airline tickets and also give special offers to students and
senior citizens.
Customer Roles: A customer value proposition (CVP) comprises total of benefits in which a
vendor promises to customer can receive in return for the customer's associated payment. And
also it provides services according to customer preferences.
Performance: Qatar airline is one of the youngest and fastest growing airline in India.
Evaluating value preposition:
Price:It offers minimal price to customers.
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Features:It provides superior board service,extraordinary cuisine etc.
Quality:It is certified with highest 5-star rating for its best quality of onboard product and service.
Identification of specific values:
Qatar airlines is earning profit of QAR 35.6 billion, and it has an operating margin of 8.6 per
cent. It has earning its name as best and reliable airlines in the world.
Qatar Airways, operations also have expanded at Ha mad International, which was opened in
2014 and has handled over 30 million passengers, nearly 250,000 aircraft movements and 1.5
million tonnes of cargo in the year 2015/16
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