The 4 important step of value analysis in project management

Network analysis and Value analysis both are important factor for an entrepreneur to success their projects and every entrepreneur should know about both analysis before product launched.

In this article we shared all the important factor and their solution of Value analysis, So that you will clear all the doubts about Value analysis.

Value analysis

After prepare a project report and process to action an entrepreneur must have analysis of market about his product and then having identified and opportunity we now turn to developing the idea, product, service or process that will provide the solution for customers.

  • Customer Benefits
  • Customer Segmentation
  • Innovation throughout the total offer
  • The total Product offer and Areas for Innovation

Customer Benefits

The starting point is to consider what people actually buy. Customer buy benefits rather than product features.

A new idea, product, service or process must provide something that the customers need, want and will value.

Many organizations and entrepreneurs erroneously believe that the secret to satisfying all their customers is to focus on packing a product with features, introducing advanced new products, service and intricate design.

Customer Segmentation

Many new products claim to be right for everyone.

The Problem with the ‘one product fits all approach is that it ignores that fact that, within a mass market, there are a number of groups of customers with some similar but also different requirements.

The organization would choose the segments it wishes to target on the basis of its ability to service the segment better than its competitors.

Innovation throughout the total offer

The aim for the majority of suppliers is to differentiate their product or service form that of their competitors through innovation on some aspect of the product or service, or the activities supporting it, in order to gain competitive advantage.

The total Product offer and Areas for Innovation

It is a product or service innovation not just in terms of creating new core product benefits to the customer but rather in terms of improving some or all of the elements of the product offer.

In simple words, to understand there features its divided to three category;

  1. Basic features :- These are the core attributes, without which the product would be acceptable.
  2. Performance features :- These provide a real benefit to the customer, such as fuel economy in a car or battery life in a mobile phone.
  3. Excitement Features :- These give unexpected value to the customer that seems out of proportion to the objective value. for example – remote control for television operation.

Having introduced the concept of the total product offer and the opportunity for innovation in every element, it is useful to consider the questions.

  • For what purpose has the product have been developed and how will the product be used ?
  • What distinctive physical properties does the product have ?
  • What benefits is consumer expected to gain ?
  • How is the product positioned and what image do consumers perceive it to have ?
  • Which consumer segments of the total market are expected to buy the product, on what accessions and for what purposes ?

It is essential to evaluate the total product offering by answering the above six questions for each market. Entrepreneurs should have mind the above question before product launch.

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