The 3 Types of Value Proposition
Value Proposition Competitive Analysis
1) Pain-Killer Value Proposition => Dominated by Utilitarian or Physiological Needs
2) Lifestyle/Vitamin Value Proposition => Dominated by Psycho-Social Needs
The user/client job-to-be-done of Lifestyle/Vitamin businesses is in the Psycho-Social domain. By Psycho-Social, I mean deep human fear & desire and human-human interaction & relationship (the secondary Maslow's hierarchy of needs).
Lifestyle/Vitamin businesses are therefore the most difficult ones to evaluate for investors. That's why most investors focus on Pain-killer businesses (because it's easier to analyse the criticality of technical problems or health issues).
Lifestyle/Vitamin business founders should communicate to investors with a focus on:
-The real community they have (ie a community of users/clients with a tribal affection & relationship to the brand) and its dynamic of growth, + eventually the proof of pre/sales if any.
- Offer investors to eat/drink or experience the thing. But the founders should be ready for love or a hard rejection! The legend of Redbull says that blindtests performed on people during the initial market study, raised massive rejection. Don' t be offended if investors don't like your product, they are not the target.
Nevertheless, Lifestyle/Vitamin businesses could try to objectify their Value Proposition. If they can prove with a serious CX/UX study they make their clients happier for the job they want to achieve compared to direct or indirect value propositions or behaviors on the market, it's a win.
As example : the sales of Vitamin C
Critical problem = serious health issue = Scurvy - Vit C deficiency leading to weakness, weight loss and general aches and pains. Longer-term depletion affects connective tissues, severe gum disease, and bleeding from the skin- => Pain-killer Solution = Vitamin C
Out of that critical problem, the sales of Vitamin C to the general population is not solving any serious health issue. So what is the job-to-be-done Vitamin C tries to answer for people who buy it?
The job-to-be-done is a hope, the magical hope to not get a cold, the magical hope to have more energy. I say "magical" because it's nearly impossible to avoid to be infected by a virus (you can't wear a FFP2 mask 24/7!), and how can we scientifically determine what is it to have more energy? We don't have an energy bar above our head like a video game character.
So let's see what it means for people.
Why getting a cold has to be avoided?
Because if one gets cold, he can't work and the consequences are : less money (utilitarian need), can't take care of loved ones (psycho-social need), can't enjoy the good stuff of life during the illness period (hedonistic need).
Why having more energy is something wishable?
Because one with more energy can work more and the consequences are: more money (utilitarian need), buy more fun things - travel, restaurants, cinema ... - (hedonistic need), being able to take care of loved ones - children, old parents, spouse, husband - (psycho-social need).
Therefore, as you see, buying pills of Vit C is not done to help you cure your scorbut (you are not a Pirate on a boat for long trip without any citrus fruit onboard), but to help you to become a better version of your normal self, a more valuable person for your loved ones (including your boss and co-workers).
If you can prove that your brand of Vit C is more loved by your clients to help them to become what they dream to become or at least to believe they can reach what they hope, well it's a win.
3) Candy Value Proposition => Dominated by Hedonic needs
The 3 Ultimate Reasons Why People Buy Products
Dr. Ari Massoudi: https://www.linkedin.com/in/arimassoudi/