A good Brand Strategy is always parent to any value proposition worth it’s salt.
How strongly you brand your product or service will dictate how to position the value proposition.
I disagree that the value proposition can afford the either/or options of “make for less – sell for more,” or the reverse?
Sometimes the brand strategy will lead to the formulation of the value proposition…almost in parallel. Consider the Sony Walkman…what was the value proposition there…it was all about carrying your music wherever you went…nothing quite abut making for less and selling for more ore vice versa?
Consider the IPhone…the iconic nature of the brand married to the world class creative genius that was Steve Jobs carved out a niche for this product with almost the same kind of ‘Lifestyle’ appeal of a Luis Vuitton, or a Lexus. It is not an exaggeration to say the IPhone that was launched 8 years ago…truly transformed Apple!
The 5S model did exceptionally well with it’s diminutive screen even tho the big players were gunning for the large Phablet size phone screens. The IPhone was able to dictate that the screen size really became incidental when supported by the hugely ‘desired’ brand credibility…and thereby the value proposition that allowed them so sell $ Bil. 43 in the last 3 months alone ending in Dec. 2014…
The Value Proposition is largely predicated upon the brand strategy…get the brand strategy right and the Value proposition will follow.
Regardless of whether or not a product or service is sold…the concept of the Value Proposition should remain equally relevant. If we consider a ‘transaction’ to have occurred, when a product or a service exchanges hands, then this idea may be easier to deal with (note I am substituting transaction for sale)
Let’s consider the Homeless Shelters as a not for profit service. The value proposition is clearly as important here – what can we do to convince the homeless and/or displaced folk feel a sense of trust and security in utilizing the services the shelters have to offer. The key to note here is that the facility could boast 100 beds with a guarantee of a shower and breakfast and still run half empty…with people still preferring to sleep on the streets?
It is the value proposition that will define whether the shelter will have 100% ‘occupancy’ on a cold night…or whether it will remain unused…even while we know there are while more folk out there…shivering in the cold.
The Brand should always precede the value proposition.
Let me explain: The Walkman came from an existing and highly credible ‘Brand’ – the Sony Corporation replete with the Sony Logo…a highly visible and recognizable entity in the Personal Entertainment space for eons. Ergo, the Walkman was just another value add product from an existing and easily distinguishable brand. In this sort of scenario,…the Value proposition (Mobility of one’s music collection) becomes one with the brand …and when you think about it…the two cannot truly be separated.
If the concept of the Walkman was launched…say by Acme Corp from, Nowheresville, Someplaceelse, the result may not have been quite the same…sans the warm and fuzzy that the Sony Brand was able to generate and deliver on.