It is important to define the value proposition of your business because it can help you market your product and guide your strategy.
How do I define/understand my target consumer?
It is important to divide your customers into groups (or segments) with similar characteristics based on their needs, behaviors, and demographics. Then you can select and target the group that you think your product best serves. Always start by outlining the customers’ needs, then behaviors, then demographics. If you start with just demographics, the group might have too many differences within the group, which will make for a difficult marketing strategy. If you are a dispensary, here are some questions to consider based on this segmentation framework:
What do your customers need? Are they looking for cannabis products for health reasons like muscle aches or chronic pain? Are they looking for cannabis products for social reasons?
When do they usually use cannabis?
What age group are they? What generation are they? What is their income level?
How can I reach Product/service-market fit?
You need to collect data on how your customers are reacting to your marketing campaigns and what your customers are buying. This can help you understand if you’re serving your customers well.
How should I think about a product’s positioning strategy (i.e., the value space your company occupies in customer’s minds)?
One way to define your value proposition is to create a positioning statement by stating:
Your target segment(s)
Point of different (reason for customers to buy your product)
Frame of reference (who your competitors are)
Competitive advantage (why you are better than everyone else)
How do I ensure my employees/partners understand our value proposition and can execute it?
As the owner of your business, you set the culture, mission, and vision. It is important to develop routines and hire the right people that can execute on the value proposition.