“The Value Proposition – What it means in Convenience Retailing”

In the field of marketing, a customer value proposition consists of the total of benefits which a chain or store owner promises that a customer will receive in return for the customer's business (or other value-transfer- time, loyalty, brand allegiance).

Put simply, the value proposition is what the customer gets (or your store provides) for their money and time. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings. “in ten words or less, why should people be YOUR customer”
Accordingly, a customer can evaluate a company's value-proposition on two broad dimensions, with multiple subsets:

1. relative performance: what the customer gets from the vendor relative to a competitor's offering; How much better is your location than your competitors?

2. Price: which consists of the payment the customer makes to acquire the product or service, since most C-Store items aren’t unique to the location, this is a driver.

The company or Store’s marketing and sales efforts offer a customer value proposition; the Store’s delivery and customer-service processes then need to fulfill that value-proposition, in order to make the customer happy.

How to use developing a Value Proposition as a marketing tool

A value-proposition approach can assist in a firm's marketing strategy, and may guide a retailer to target a particular market segment. Typically, there are three elements that should always be in a value proposition: Convince (who’s our customer?), that (what you want them to believe), because (why they SHOULD believe it). This framework will structure your value proposition in a cohesive manner that makes sense internally and externally
A company should always have the value-proposition of increasing its market share and growing revenue by:
1. providing superior customer service – self explanatory
2. product differentiation – Colder coolers, cleaner store, fresher products
3. operational efficiency – making it look effortless
Strategic analysis and planning for value proposition marketing should contain at least five elements:
1. Your current situation (including problems, causes and effects – need to be honest)
2. target situation – what you would like to achieve
3. How long to reach the target situation – when do you need the new results
4. cost of reaching the target situation and opportunity cost analysis – need to be honest again – a plan you can’t afford doesn’t do you any good
5. the benefits of both the targeting and the achievement phases – what do you (and importantly your team) get for the all the planning and work?

Developing Your Value Proposition

It's important when developing your value proposition that it be clear and concise. It's best to start by brainstorming and focusing on what needs your target customer group have in common. This can be done by some simple market research in your stores. What does your current traffic want that your business can provide? What is important to them?

Once you've found the common denominating need, you can determine what it is that they are in search of in addition to your current lineup and develop your value proposition around that need. If you find a great unmet need, think about adding that product or service to your line-up, and letting people know about it.
Keep in mind that the purpose of your value proposition is to identify and satisfy an unmet or under-met need that your target market possesses.
Why is the development of your value proposition important?

The answer to that question is easy. Your value proposition can equip you with the following benefits to your business:

• Create a strong differential between you and your competitors
• Increase not only the quantity but the quality of your in-store traffic
• Gain market share in your targeted segments
• Assist you in merchandising and store layout that will increase business.
• Improve your operation efficiency

You can get started developing your store’s value proposition today. Just remember that an effective value proposition describes what you do in terms of tangible business results. It draws interest and shares a customer benefit within a few words.