Value proposition – examples


We can understand the concept of value proposition better by examining how companies make value propositions in positioning their products.

South West Airlines, USA

The claim: ‘… South West Airlines offer the best prices with dependable service and reasonable amenities.’

The company is making a very distinctive claim and offering certain value to the consumer. Now, the company has to support/substantiate these claims so that the consumer is convinced of the soundness and credibility of its proposition. It is here that the differentiation attributes of the product offer come in. You are guaranteeing the proposed value through the special and unique attributes of your product/brand.

The claim has to be justified by differentiation attributes:
Let us see how South West Airlines justifies the claim it makes:’ … SouthWest Airlines offer the best prices with dependable service and reasonable amenities because we don’t charge the customers anything for amenities’ (No frills, lowest price).

It is clear that the value proposition made by a product becomes convincing when it is explained and justified by the differential attributes of that product. In fact, these two elements together— the claim supported by the product differentiation plank— illuminate the positioning theme of the brand.

And to whom?

The positioning exercise is still not over. The firm has to specify to whom the offer is addressed. To the two elements, when the target market factor i.e. to whom this offer is addressed to is also added, the product positioning statement becomes complete.
Let us see how Southwest Airlines clarifies this part, it adds, for the short distance travelers.

Let us see how the total value positioning looks like, with the three components, the target market, the claim and the supporting justification based on product differentiation, in place: ‘For the

short distance travelers, we (SWA) offer the best prices, with dependable service and reasonable amenities, because we do not charge the customers anything for amenities (No frills, lowest price).’


For the business traveler …
The most convenient bank,
Because you can access your money from wherever you are… all our Branches are computer linked.


For business people who rent cars,
Avis is the company who will provide the best service because the employees own the company.

Home Depot

For do-it-yourselfers,

Home Depot offers the best process because we are the largest building supply company.