Report: Value Proposition for a New Health Venture - XYZ

This report analyzes the value proposition of a new health venture, XYZ, in the Australian market. It explores the health services industry, consumer needs, and market segmentation. The report details XYZ's products, including weight loss drinks, vitamins, and wellness coaching, and how they address consumer pain points. It also examines the company's potential early adopters, gain creators, and competitive advantages. The study highlights the importance of market segmentation and the unique value proposition of XYZ compared to competitors like GNC, Mannatech, and Herbalife. The report concludes with recommendations for XYZ, emphasizing the need to maintain a competitive edge and adapt to market changes. The report emphasizes the link between XYZ products and services in terms of pain relievers and benefit creators. The report is based on desk research and potential customer surveys, which provides a good match between its product and market.

New venture creation 1
NEW VENTURE CREATION
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Table of Contents
1. Introduction........................................................................................................................3
2. Value proposition...............................................................................................................3
2.1. Health Services industry..............................................................................................4
2.1.1. Products and services...........................................................................................4
2.1.2. Pain Relievers.......................................................................................................5
2.1.3. Gain Creators.......................................................................................................6
3. Conclusion..........................................................................................................................7
4. Recommendations..............................................................................................................8
5. References..........................................................................................................................9

1. Introduction
On selected health indicators, Australia gets better results than many other
comparable countries. Half the population, however, is suffering from at least one chronic
condition (IBISWorld, 2020). Therefore, growing demand in health care industry has largely
influenced revenue growth of bsuinesses, and rise in inflation due to high program and
schedule fees. In this context, the aim of this report is to establish a value proposition for a
new XYZ venture in the health service industry to save time, effort and money of people, and
to proide them best nutritious products. This aims at explicitly identifying consumer needs
and concerns through desk research and potential customer surveys, possible solutions
available, targeted market segments, and characteristics of potential early adopters. This also
aims to deliver a message highlighting a clear value proposition. In summary, this report
aims at discussing the connection between providing products and services to pain relievers
and gaining creators. This study primarily aims to include some practical
recommendations based on the conclusions drawn from the research and evaluation.
2. Value proposition
A value proposition in its most simple form is a synopsis of how the company’s
product or service helps its customers. It is about identifying the unique benefit that a
company delivers its customers when opposed to other marketplace rivals (NCBI, 2016). A
value proposition of a product needs to appeal to its customers. Value proposition is how the
brand or company addresses a specific point of suffering, boosts the lifestyles of the target
audience, and how it makes them feel. A value proposition must be consumer-centric, which
means concentrating on what consumers need and not what the company is selling. Relevant,
pain-focused and unique should be a persuasive value proposition. It allows prospective
customers to grasp the product or service of a company easily, offers a great competitive

edge, attracts potential prospects and improves not only the quantity but the consistency of
prospective leads, improves consumer awareness and interaction, and sends out a consistent
message (Osterwalder et al., 2018).
2.1. Health Services industry
Any business that specializes in medical and health products and services are defined
in the healthcare industry. The section Health Care includes a variety of health programs and
facilities. Rising and ageing population of Australia, as well as widening private health
insurance coverage is expected to create high demand for health services in both the present
and future. Growing demand has largely influenced revenue growth, as inflation in some
sectors has outpaced rises in Medicare benefits per program and schedule fees (IBISWorld,
2020). In this situation, a health care industry venture which offers the best products and
services at affordable rates to meet consumer needs, can operate and be very effective.
2.1.1. Products and services
Good health is significant, as it affects not only how one feels, but how one goes
about in its everyday life. Health is more than just the presence or absence of disease; it
encompasses the physical, emotional and social well-being of humans. Much can affect
health and wellness, but in general, it relies on two main aspects. The first is determinants,
meaning the multiple interrelated factors affecting the well-being. The other dimension is
interventions or activities we do to improve our health or avoid ill health, such as being
immune to illness or attending a doctor or hospital while we feel not well (Edwards, 2017).
Therefore, it is difficult to ignore the value of health behaviours.
By keeping all of these points in view, an XYZ company is planning to start a venture
in order to sell nutritious products that include weight loss and protein drinks, as well as,
vitamins, teas, protein bars, aloes, and energy products. The main aim of these items is to
help consumers lead a healthier lifestyle with the required and ample nutrients for

themselves. In addition, XYZ seeks to provide customers with a Wellness Coach to advise
products for customer excellence (Fallon, 2015).
2.1.2. Pain Relievers
Australians survive longer than ever, yet half of them struggle with at least one
chronic illness that can compromise the quality of their lives, as well as their families and
those who cares for them. Chronic diseases and cancer are the primary cause of declining
health and high death rate in Australia and have significant consequences for the health
system. Emotional illnesses define a broad range of mental and behavioural disorders.
Around 45 per cent of Australians aged 16–85 suffered a lifelong mental disorder (Australian
Health, 2019). Likewise, findings of a survey conducted by XYZ show that many of the
chronic conditions are related to lifestyle factors such as insufficient physical activities due
to busy routines, overweight and obesity, cigarette smoking and alcohol, particularly among
young Australians. Each of these issues severely impacts the health of the mass population.
Hence, health habits are essential in changing these conditions. Simple improvements in
lifestyle such as lowering levels of alcohol intake, giving up smoking, or maintaining regular
weight by a healthy diet can contribute to health benefits for individuals and the community
with lifelong results (Hwang and Christensen, 2017).
In this case, XYZ aims to establish a nation welfare venture with a powerful message
that is stated as; a goal to improve the lives of people by offering the best business
opportunity in direct selling and best nutrition items. Furthermore, the value and advantages
of segmentation cannot be ignored because market segmentation helps a company to
precisely target a customer with specific needs and requirements. Market segmentation is the
method of separating a potential consumer market into categories, or segments, based on
multiple characteristics (Booth et al., 2016). XYZ market segmentation aims at targeting
those customers who choose to improve their lifestyles in cost and time-effective manner.

This includes anyone in any age group who would like to gain lean muscle, lose weight, or
simply gain strength. XYZ geographic segmentation considers the population of Sydney,
which is the largest and fastest-growing city in Australia. In the future, however, XYZ also
intends to approach other major Australian cities to strengthen their health.
Health habits are essential, but they are not the only variables that influence the health
of people. Climate, socioeconomic factors, easy access to health care services, and
government policies are also essential in changing health habits and outcomes (Booth et al.,
2016). Within the health care industry, the major rivals of XYZ companies include GNC,
Mannatech, and Herbalife, as they all somehow provide health and fitness promoting
products and services (Haug, 2017). Nevertheless, XYZ differentiates itself from competitors
based on its commodity value proposition. Also, potential early adopters are potential
customers of a particular company who is essential for any new product or service to be
successful (Marshall, 2016). Youth will be the potential early adopters of XYZ. The
explanation for this is that youth are the ones more likely to engage in coronary conditions
due to high workload pressures, and they are the ones who are expected to be more
productive and healthy. In this way, these potential early adopters provide an opportunity for
XYZ Company to test and develop the quality of products before it hits the mass audience.
2.1.3. Gain Creators
XYZ products portfolio helps customers lose weight, gain weight, shape their body,
strengthen health, improve skin and boost strength. XYZ provides goods and services based
on the superpowers potential customers get receive. These products meet consumer needs and
offer them a pleasant customer experience. In addition, defining a distinctive value
proposition as opposed to rivals is the key pillar that defines one company’s performance in
both sales and marketing (Simopoulos et al., 2018). Distribution process, product coaching,
and nutrition clubs distinguish XYZ from other competitors. Consumers would be able

to order products via distribution or can ship virtually anywhere that saves their time, energy
and resources. A website designed for customers is also helpful for them to know how to
connect a distributor, coach or a nutrition club in their area. Offering products of XYZ
contain 80 per cent nutrition and 20 per cent fitness and also provide a sustainable
competitive advantage from other alternatives available in the health care industry. Beauty is
another essential part of the value proposition of XYZ. XYZ claims that everyone can look
good and can have a strongly positive impact on well-being by creating trust in the outer
aspect (Osterwalder et al., 2018).
3. Conclusion
To sum up the entire discussion, it is reported that the value proposition of XYZ
venture indicates a good match between its product and market based on the results of desk
research and potential customer survey. This report clearly outlines rising health problems
in Australia, and the necessity to strengthen the well-being and safety of peoples. XYZ aims
at reaching all those people who wish to improve their lifestyles in a healthy manner. In the
study, it is also observed that youth are the potential early adopters of XYZ, and then state its
characteristics. Distributors, nutrition clubs, coaching, beauty, and 80% nutrition and 20%
fitness are some unique value proposition of XYZ, which truly stands it out from other
potential competitors in the health service industry. In short, this study demonstrates the
strong link that exists between offering XYZ products and services in terms of pain relievers
and benefit creators. Hence, to be concluded, the value proposition of XYZ venture shows
that XYZ can become a potentially leading business start-up activity with further
development.

4. Recommendations
Based on the results and possible problems emerging from investigations and study of
XYZ, some useful recommendations may be beneficial for XYZ while developing business.
New competitors in nutrients and personal goods could bring innovative methods of
performing processes, and exert pressure on XYZ through lower pricing policy and customer
value proposals. It is recommended that XYZ take all these uncertainties into consideration
proactively and be prepared to create effective defences to maintain its competitive
advantage, as watchful waiting is no solution (NCBI, 2016). XYZ is also encouraged to
develop and maintain a positive culture in the company. The explanation for this is that
organizational environments have profound effects on the levels of employee success that
inspire them to better engage consumers. As a result of this, XYZ business value proposition
could be extended rapidly (Igbal, 2016). Also, trading supply power may pose an obstacle for
XYZ, particularly because of the new presence in the market. However, by creating an
efficient supply chain with multiple providers or by developing committed suppliers, this
challenge becomes tackled (Elkington, 2011). In addition, as XYZ operates in a highly
competitive health service industry, competition among existing players can bring prices
down and diminish the total profitability of the industry. Nonetheless, it is recommended that
XYZ develop and retain its competitive differentiation on an on-going basis and can also
collaborate with rivals to expand the size of the market rather than just fighting for the
smaller market (Hawkes and Ruel, 2017).

5. References
Australian Health. 2019. Australian Institute of Health and Welfare [online] Available at:
https://www.aihw.gov.au/getmedia/fe037cf1-0cd0-4663-a8c0-67cd09b1f30c/aihw-aus-
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Booth, M.L., Bernard, D., Quine, S., Kang, M.S., Usherwood, T., Alperstein, G. and Bennett,
D.L., 2016. Access to health care among Australian adolescents young people’s perspectives
and their sociodemographic distribution. Journal of Adolescent Health, 34(1), pp.97-103.
Edwards, N., 2017. Population health: determinants and interventions. Canadian Journal of
Public Health, 90(1), p.10.
Elkington, J., 2011. Towards the sustainable corporation: Win-win-win business strategies for
sustainable development. California management review, 36(2), pp.90-100.
Fallon, J., 2015. New thinking on health and fitness. Journal of Retail & Leisure
Property, 3(4), pp.307-313.
Haug, A.S., 2017. Growth Strategies in the Australian Health and Fitness Industry: Value
Creation Frameworks. pp. 53-65.
Hawkes, C. and Ruel, M.T., 2017. Value chains for nutrition. Reshaping agriculture for
nutrition and health, pp.73-82.
Hwang, J. and Christensen, C.M., 2017. Disruptive innovation in health care delivery: a
framework for business-model innovation. Health affairs, 27(5), pp.1329-1335.
IBISWorld, I., 2020. Market Research Reports & Analysis | Ibisworld AU. [online]
Ibisworld.com.au. Available at: https://www.ibisworld.com.au/industry-trends/market-
research-reports/health-care-social-assistance/health-services.html [Accessed 16 April 2020].
Igbal, R., 2016. Impact of organizational culture to achieve competitive edge. European
Journal of Business and Management, 3(4).

Marshall, J.G., 2016. Characteristics of early adopters of end-user online searching in the
health professions. Bulletin of the Medical Library Association, 77(1), p.48.
NCBI, 2016. Continuously Learning Health Care: The Value Proposition. [online]
Ncbi.nlm.nih.gov. Available at: https://www.ncbi.nlm.nih.gov/books/NBK284656/ [Accessed
16 April 2020].
Osterwalder, A., Pigneur, Y., Bernarda, G., Smith, A. and Papadakos, T., 2018. Value
Proposition Design: How to Create Products and Services Customers Want.
Simopoulos, A.P., Faergeman, O. and Bourne, P.G., 2018. Action plan for a healthy
agriculture, healthy nutrition, healthy people. Lifestyle Genomics, 4(2), pp.65-68.