Week 7

This week, we focused on many topics including the value proposition canvas and positioning bases, as well as a review of segmentation bases and the elements of the value pyramid. After better understanding these concepts, we applied a Shark Tank pitch to them, to further grasp the concept. 

This week's Shark Tank was for a service called Gato Café.  This café was familiar in that it would sell prepackaged food and serve beverages, such as coffee. However, it differed in that customers would pay a standard entrée fee of nine dollars to g into the café, play with cats, enjoy the atmosphere, while eating a sack or sipping on a drink. While this idea may appeal to cat-lovers, I am still rather skeptical and weary of it.

Positioning Bases

Positioning bases is all about how the customer views your product in relation to the competition.  This is very important, as it ultimately decides whether the consumer will buy your product, or your competitors.

Attribute

• Attempts to diversify itself through its unique characteristics
• EX: Seventh Generation cleaning supplies market themselves as a green product that is all natural and will not hurt the environment, unlike its competition.

Price/Quality

• High Price = High Quality(Bloomingdales)
• Low Price = Low Quality(Walmart)

Use/Application

• Often have different product lines (a group of closely related product items) positioned based on use
• Arm and Hamer Baking Soda is marketed for cooking/baking practicalities, to be used in cat litter, in your fridge, and in toothpaste

Product User

• Positioned towards a certain segment
• Although Banana Republic, Gap, and Old Navy are all owned by the same company, they are each geared towards different groups of people
• Banana Republic: Higher end fashion for young adults - adults
• Gap: Mid-range clothing for teens - young adults
• Old Navy: Lower prices for children and teens(Family oriented)

Product Class

• Promoting two products in the same market (Coke and Pepsi)

Competitor

• How will you differentiate your product from the competitor? What will you focus on? (Apple versus Samsung)

Emotion

• Appeal to the emotions of the consumer (Nike, Vertu, etc.)

Gato Café could fit under both Attribute and Emotion.  It fits under attribute as it found a way to differentiate itself from other cafes(as their consumer will get to play with cats while snacking and sipping).  It also appeals to the emotions of consumers in that petting cats and kittens de-stresses humans and can provide a therapy/get-away for them.

Value Proposition Canvas

The goal of the Value Proposition Canvas is to minimize the gap between the Product and the Customer, while widening the gap between the Customer and the Substitutes(the competition).

Let's run through an example of the Value Proposition Canvas using Gato Café.

PRODUCT(What?)

Benefits

• emotional de-stressing
• hunger/thirst
• enjoyment

Features                             

• cats
• coffee
• environment
• cost of nine dollars

Environment

• Sit down, pet cats, drink coffee, eat snacks

CUSTOMER(Why?)

Wants

• Social entertainment
• Calming getaway
• Coffee, snacks
• To purchase a cat
• Test drive how a cat would work with your children

Needs

• Emotional needs
• Animal-assisted therapy

Fears

• Food around animals
• Aggressive Animals
• Sanitation
• Allergies
• Can I afford this service?

SUBSTITUTES(Competitors)

Direct Competitors

• Pet shop/shelter
• Cafes (Starbucks, Panera, etc.)

Indirect Competitors

• Zoos
• Other getaway experiences
• Spa
• Nail Salon

With this information, Gato Café can decide on whether they want to focus on marketing their service to either the cat-lover, or perhaps to those in need of animal therapy. It is pertinent to not only think about these concepts while in class, but to involve them in our SMART Projects as well. For our Smart Project, OK TO DRIVE?, it is necessary to develop both the Product and Customer sides to the Value Proposition Canvas, as we attempt to widen the gap between us and our competition.