A value proposal is a description of the product and/or service provided to cover a market need (usually a problem that to date has not been catered for or a need hitherto dealt with, albeit not at currently expected standards) for which a significantly large group of target clients is able and willing to pay a price it considers appropriate. Upon deduction of production costs it yields the desired return.
A value proposal must feature the following characteristics: it must be focused, divergent when compared to other similar proposals on the market, and be communicable using a strong message.
One way of generating a value proposal with such characteristics is to apply the value innovation principles described by W. Chan Kim and Renée Mauborgne in their book Blue Ocean Strategy.
