Value Proposition

This document provides an introduction to value proposition and its importance in attracting customers. It discusses the design problem faced by a company and its unique selling proposition. It also explores the risks from competitors and concludes with the significance of value proposition in meeting customer needs.

Running head: VALUE PROPOSITION
VALUE PROPOSITION
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Table of Contents
Introduction......................................................................................................................................2
Design problem................................................................................................................................3
Unique selling proposition...............................................................................................................3
Risks from competitors....................................................................................................................5
Customers loyalty........................................................................................................................5
Customer compliance..................................................................................................................5
Lack of customers understanding................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7
Appendix..........................................................................................................................................8

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Introduction
Value proposition refers to introduction of new products and services into the market and
innovation for the purpose of delivering value to the customers. It helps in attracting the
customers through the various product features. A company decides to lunch new products into
the market when it understands the problems and needs of the customers. The company under
study decided to develop new product and launch it into the market for the purpose of meeting
the problems faced by its major customers (Baldassarre et al. 2017). The main aim of the study is
to depict the problem of its major customers, to show the unique selling proposition of the
company’s product that will help in providing a solution to the problems faced by the customers.
The paper will also discuss about the risks of the company from its competitors and the value
propositional map.
Figure 1: Value proposition

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Source: (Payne, Frow and Eggert 2017)
Design problem
The target customers of the company comprises of older people who are already working
in different organization after passing from colleges such that these people have rose to the
higher position in the organization because of their hard work and long working hours. This has
left them with very less time to look after themselves and as a result these people are now facing
various health issues. These health issues include- blood pressure, heart diseases, diabetes and
others. One of the persona customers of the company is recently facing many health issues. Eral
Jones is working as the sales head and is of 54years of age and is obese, has high blood pressure
and is pre diabetic. His doctors have clearly told him that e will not be able to live long enough
to even see his granddaughters graduate if he continues the same working lifestyle. He is afraid
of dying but he does not have much time to do the same so the doctor told him to use the fitness
band for monitoring his heart rate and other health issue. However, he is not so good at selecting
technological gadgets. The company Withings moving has introduced a new product called the
ECG watch that can help in monitoring the heart beat while carrying out various activities and
also during sleep. The company has introduced this product in order to meet the need of its
customer’s persona by having a portable ECG (Withings.com 2019). The watch has a feature
called HealthMate which helps in recording and sending the data to the doctors.
Unique selling proposition
The three main competitors of the company are Apple watches, Samsung and Fitbit.
Apple is the biggest competitor of the Withings watches product lines. Apple is a brand that us

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widely trusted by customers ad is used across different countries (Withings.com 2019). It is
known for quality of its products. Apple watches provide many features and can be connected to
the apple iPhone. Withings can however differentiate their fit bands from the apples phones
because of the fact that they have the fitness feature and it will be preferred over the apple
watches for the same reason. People with various health issues will purchase the fitness bands
because it creates value for them. The focus of the withings fitness watches is completely on the
fitness features whereas the watches of apples provide many features at the same time and that
makes the watches ineffective or health conscious people. Samsung is one of largest competitors
of the Whitings because Samsung also provides fitness watches. Samsung has been in existence
for a long time and as a result it is a brand that people trust and it also enjoys the loyalty of the
customers. The Samsung watches also provide a number of features. However, their focus is not
on fitness and as a result this will be the point of differentiation for the Withings watches with
that of Samsung watches. Moreover, the Withings watches are much better at tracking and
monitoring the health of the customers. The ECG watches help the customers with heart disease
to continuously monitor and track the heart beats irrespective of whether they are doing any
activity or sleeping. The Withings fitness band has helped the heart patients by providing them
with the facility of portable ECG. The third largest competitor of the company is Fitbit and it is
a brand that focuses in the fitness feature of its watches and bands and also specializes in the
same. The company has been successful in positing itself in the minds of its customers and
creating awareness among its customers in such a way that most of the customers worldwide use
the term fitbit when they mean the fitness watches. Withings however can differentiate itself
from the fitbit based on their technological advantage that it has and that it provides. Withings
provides the portable ECG monitor on ECG move. The company’s main aim is to help its

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customers with heart health disorders and who do not have much time with themselves to look
after their health and regularly visit the doctor because these people are preoccupied with their
works and by doing so it is aiming to become the leader of the fitness bands segment.
Risks from competitors
Customers loyalty
There are already too many fitness watches in the market belonging to different brands
and so the consumers have many options in front of term and they remain indifferent to the
different watches because they do not have so much of knowledge about technological gadgets.
Moreover the customers purchase these bands from the brand which they are well known of
because of their loyalty towards the brand. Moreover the Fitbit that is the competitor of the
company has positioned itself in the minds of the consumers in such a way that customers use
the word fitbit to define the fitness watches.
Customer compliance
These fitness bands can only help the consumers by tracking their heart rate and
monitoring the same continuously but it is only a tool and sometimes the consumers may be
required to put in effort by themselves. If the consumers are only using the band and they feel
that they are going to become healthy by just using it then their expectations fail because it is
only a tool and it cannot help the consumers in actually becoming healthy and as a result the
consumers share negative reviews.

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Lack of customers understanding
Consumers do not have a proper understanding of the technological gadgets and as a
result they may fail to recognize the benefits provided by the Withings Company. Sometimes the
customers are unaware of their heart conditions they are having then they might find the product
as of no value.
Conclusion
From the above discussion it can be concluded that, the value proposition can provide a
competitive advantage to the company by meeting the needs of the customers in a better way.
Value proposition helps a company in innovating those products and services that can be used to
meet the needs of the customers. In this study, the main focus has been to describe the problems
being faced by the main customers of the company due to which the company decided to
introduce a new product. The unique selling proposition refers to those characteristics’ that
differentiates the company from its competitors in the minds of the competitors. The paper also
discusses about the same in the paper. The risks from the competitors have also been discussed
in the paper.

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References
Baldassarre, B., Calabretta, G., Bocken, N.M.P. and Jaskiewicz, T., 2017. Bridging sustainable
business model innovation and user-driven innovation: A process for sustainable value
proposition design. Journal of Cleaner Production, 147, pp.175-186.
Baumann, J., Le Meunier-FitzHugh, K. and Wilson, H.N., 2017. The challenge of
communicating reciprocal value promises: Buyer-seller value proposition disparity in
professional services. Industrial Marketing Management, 64, pp.107-121.
Payne, A., Frow, P. and Eggert, A., 2017. The customer value proposition: evolution,
development, and application in marketing. Journal of the Academy of Marketing Science, 45(4),
pp.467-489.
Withings.com (2019). Withings | Smart Scales, Watches and Health Monitors. [online]
Withings.com. Available at: https://www.withings.com/us/en/ [Accessed 7 Jun. 2019].

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Appendix
Appendix 1: Perceptual mapping
From the above diagram, we can understand about the perception of the
customers about the various fitness bands of the different companies. On the axis we have the
four main elements- smart watch, high quality, casual or sporty and fitness tracking. The three
main competitors of the company have been shown on the graph. The apple watches and the
Samsung watches are smart watches and of high quality. Withings watches are basically fitness
watches and high quality and the fitbit watches are sporty watches and fitness.