Exercises: Value proposition and customer segment

Explain what a business's value proposition is and draft the value proposition for a driving school that only gives lessons in the afternoons and at weekends, designed for working people.

State which customer segment is the most logical for each offer and justify your answer: trendy designer sunglasses for 500 pesos, a set lunch menu next to an office park, and travel insurance covering extreme sports.

The figure represents the fit between the value proposition and the customer segment, as shown in the diagram. Explain what it means for both pieces to "fit", and reason what happens to a business whose value proposition does not fit its segment.

A start-up sells boxes of "wonky" fruit, rejected for its appearance but in perfect condition, with home delivery 30% cheaper than in supermarkets. a) Write its value proposition in one or two sentences. b) Define its most likely customer segment and justify your answer.

An artisanal clothing brand must choose sales channels: its own downtown store, online marketplaces, or social media sales with home delivery. Compare the advantages and disadvantages of each channel and recommend a combination to start with.

Customer relationships can be self-service, personal assistance, or user communities. Give an example of a business (real or fictitious) for each type, and explain which type of relationship best fits a language-learning app and why.

A boutique gym (small classes with a trainer, 1 400 pesos per month) and a low-cost gym (minimal staff, 400 pesos per month) coexist in the same city. Compare the value proposition, segment, channels and customer relationship for each, and explain why both can be profitable at the same time.

Design the value proposition for an online tutoring service for high school students. Start with their pain points (rigid schedules, embarrassment about asking questions in front of the class) and the gains they seek (passing, truly understanding), and draft a proposal that fits them, stating the target segment.

"A good value proposition guarantees success." Argue why this is not enough: what can go wrong even if the proposition is excellent if the segment is poorly chosen or too small, providing a fully developed example.