PROJECT REPORT ON

VALUE PROPOSITION OFFERED BY THE

COMPANY TO THE STAKEHOLDERS

GROUP ASSIGNMENT

SUBMITTED TO : Dr. SUDHIR RANA

SUBMITTED BY: TEAM 8

SWATI SRIVASTAVA

RITIKA VIJAY

TEESTA SINHA

AKSHAY ARORA

ADITYA SRIVASTVA

PRADEEP KUMAR

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 ACKNOWLDGEMENT
Preparing a report of any sector or subject is really challenging work for anyone. Being
the student of any management and to prepare report on the specified topic, we accept it
with challenge, opportunity and also became successful to present the report with our full
endeavor. This term paper has been duly prepared and submitted to meet the partial
fulfillment of PGDM programmed designed by Professor Dr. Sudhir Rana and Professor
Arpan Anand . As being the student of PGDM level, we are so pleased and proud for being
the integral part of this report in this context.

We owe a deep of gratitude to Professor Dr. Sudhir Rana and Professor Arpan Anand
lecturer of Marketing management,FIIB for their constant encouragement, patience
guidance and valuable supervision at every stage of our work. This work would not have
been materialized at the present from without her incisive observation and intellectual
directions in the course of completion.

In this limited space, it is simply impossible to give the names of large number of friends
and well wishers who provided invaluable cooperation whose direct or indirect help assisted
us in carrying out this venture. We are personally obliged and highly grateful to all those
who guided us properly.

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VALUE PROPOSITION
Value Proposition is a promise of value to be delivered, communicated, and acknowledged.
It is also a belief from customer about how value (benefit) will be delivered, experienced
and acquired.

A value proposition can apply to an entire organization, or parts thereof, or customer

accounts, or products or services.

Value proposition advantages

A robust and impactful value proposition is essential for any business to effectively engage
and connect with customers, partners, stakeholders, and critically internal employees, by
clearly communicating how it is different, better and worth purchasing from. The value
proposition is central to the overall business model and should form the anchor for
all decision-making, operations, and customer engagement. It is more than a set of words;
more than a set of marketing messages; it is the framework for how the business aligns its
activities and output with its target audience’s needs, to deliver a compelling experience
that can ultimately be monetized through an exchange of value. In this respect, the value
proposition is key to validating the business idea; both as you start up and as you grow.
These are the benefits and advantages that should be considered as you go through the
process of discovering, articulating and realizing the value proposition:

 Gives direction
A value proposition provides direction by defining the ideal target audience right up-front,
then identifying and understanding the core needs that can be satisfied by the planned
solution. A clear value proposition thereby helps avoid wasting time, money, and effort by
offering products or services that aren’t relevant or attractive to the target customers.

 Creates focus
A robust value proposition gives team focus by identifying the fundamental initiatives,
activities and aspects of the business; this will have an impact on meeting the defined target
audience’s needs. Value proposition assists in focusing on the who, why and how the
business will be delivering value. It outlines what you must deliver to meet the defined
audience’s needs and create an overall remarkable experience.

 Breeds confidence
Having a robust and perfected value proposition gives the team and stakeholders’ clarity so
that progress can be made without questioning and second-guessing every move, thus

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breeding confidence. Confidence comes from knowing that you’re making a difference to
the people that you’re serving, that you’re doing so in a way that’s meaningful to them, and
that the actions are aligned to delivering an overall remarkable experience.

 Improves customer understanding and engagement

Value proposition gives you the basis to engage with customers in a compelling and
resonant manner by understanding how they view the products or services. Without this
alignment, you may be talking to prospects and customers in ways that breed
misunderstanding or even alienation – and people who feel misunderstood don’t buy. The
value proposition determines the factors that not only make a difference to the audience,
but do so in aspects or ways that are meaningful to them.

 Provides clarity of business value

As a start-up without any brand recognition, you’re going to have to paint a very clear
picture as to why you’re worth people’s time. Often though, many companies’ marketing
messages end up being vague and unfocused, thereby losing their impact and
persuasiveness. The value proposition frames not only how you’re creating value for the
audience by addressing a core need, but critically why the solution is better than what they
are currently doing or using, or versus whatever else is potentially out there that could do
so.

 Increases effectiveness of marketing

Value proposition directs marketing efforts to concentrate on those activities that will
generate the best results. By truly understanding desired customers and their core need
that you’re accommodating to, you’re able to focus on the channels that are most relevant,
and will effectively communicate the benefits and advantages of the solution.

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5
What is a CVP

Customer Value Proposition is a promise of potential value that a business delivers to its
customers and in essence is the reason why a customer would choose to engage with the
business. It is concise statement that highlights the relevance of a product offering by
explaining how it solves a problem or improves the customer's situation, the specific value
against the customer's needs and the difference to competitors.
Customer Value Proposition is a complicated principle however, it is the main theory behind
the existence and the survival of a business or a company. Value proposition means that
extra values and benefits should be added to the firm’s products. Due to the high rate of
competition between businesses with similar products in the market, value proposition
enables companies to differentiate the brands from each other helping the customers to
choose the most valuable brand of product which will provide them with most benefits and
advantages. Once the business receives the attention they require from their target market
through the use of customer value proposition they can increase their sales and gain more
profit along with the amount of consumers.

Why CVPs are important

A good customer value proposition will provide convincing reasons why a customer should
buy a product, and also differentiate your product from competitors. Gaining a customer's
attention and approval will help build sales faster and more profitably, as well as work to
increase market share. Understanding customer needs is important because it helps
promote the product. A brand is the perception of a product, service or company that is
designed to stay in the minds of targeted consumers.

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CVPs Development Cycle

Competitive advantage

A product with a successful customer value proposition is directly linked to a product's

actual and sustained performance versus competition. The two main attributes that allow
consumers to differentiate among products are price and quality. Finding the correct
balance between these two attributes usually leads to a successful product. If a company is
able to produce the same quality product as its direct competition but sell it for less, this
provides a price value to the consumer. Similarly, if a company is able to produce a superior
quality product for the same or a slightly higher but acceptable price, the value to the
consumer is added through the quality of the product. A product must offer value through
price and/or quality in order to be successful.

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Competitive advantage can come in a range of ways, such as pricing, packaging, layout,
looks, services provided and more. All these can add value proposition to a product,
therefore making it worth more, and more desirable to a customer. However with the
modern technology available to firms, it makes information that could help firms to gain
competitive advantage over their rivals, far easier to obtain.

Target audiences
 End user - The initial and ongoing satisfaction of the end user is the goal of every
business. Customer satisfaction is achieved when superior customer value is delivered.
Establishing a lasting business relationship will lead to future sales. Price and quality are
the most important factors in a consumer purchase.

 Market Segmentation divides markets into smaller segments by which they can match
their needs and requirements. The smaller segments are then turned into target
markets. End users are known as the key targeted consumers who are the main users of
the product. Thus, the product is produced and established according to their needs and
purposes. There could be more than one group of targeted consumers hence, in that
situation it is important that the requirements of the different groups are identified
individually. Most vital information that any business should be aware of is the
background demographics of their target market to gain a broad understanding and
positive approach towards their needs and requirements.

 Manufacturer/Distributor – When the sales target is not the end user, but
a manufacturer or distributor of a product, the most important factor is conveying
superiority of one product over another. There may be other factors besides price and
quality that would affect a customer's decision and communicating those as well is
essential.

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DELL and HP are the two organizations from one
industry taken as a based to evaluate value
proposition offered by the company to the
stakeholders.

About DELL
The Dell Computer Company is one of the great success stories of the 20th century. Started
in 1984 by then college student Michael Dell, it rose to become one of the computer giants
well into the 21st century. To understand what makes Dell so great, you need to understand
the power of Dell's Mission Statement, as well as its history, growth, and entrepreneurial
founder Michael Dell.

The Dell Mission Statement

“Customers are the core of everything we do”
"Dell's mission is to be the most successful computer company in the world at delivering the
best customer experience in markets we serve. In doing so, Dell will meet customer
expectations of:

 Highest quality
 Leading technology
 Competitive pricing

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  Individual and company accountability
 Best-in-class service and support
 Flexible customization capability
 Superior corporate citizenship
 Financial stability

In all they do, they are focused on delivering solutions to enable smarter decisions
and more effective outcomes so their customers can overcome obstacles, achieve
their ideas and pursue their dreams. Above all, they are committed to the superior
long-term value they need to grow and thrive.

DELL’s VALUE PROPOSITION

Dell’s value proposition is simple. Dell will deliver a low-cost, customized computer direct to
your door. Dell can keep its prices down because of it’s just-in-time ordering system which
minimizes stock and the need to calculate demand in advance.

Dell employment value proposition

 Employment value proposition is their purpose. Their role is to bring innovation to
people everywhere to drive progress around the world. They take pride in fostering a
winning, innovative, inclusive employee culture. They also take calculated risks and
they celebrate big victories when they pay off. Their core values entrepreneurial
culture.

 Their spirit: Fast paced, results-driven and always evolving.

 Their teamwork: Encourages everyone to contribute ideas and suggestions.

 Their people: Continuously improve, build great relationships and value diverse
perspectives. “YOU HAVE THE FREEDOM TO DREAM BIG”. A full 40% of positions are
filled internally, allowing for greater career:
• Depth — develop an impressive knowledge base to do your job well
• Breadth — explore different vocations and career paths
• Height — move up and advance your career into management, executive
leadership and more leadership and more “WE ARE COMMITTED TODEVELOPING
HIGHLY ETHICAL AND INSPIRING LEADERS”. Every year, thousands of their team
members take advantage of growth opportunities by moving into new roles, getting
involved with a mentor, networking, attending formal training, and obtaining new
certifications. “WE ARE PROUD TO BE RECOGNIZED AS ONE OF THE GREENEST IT
COMPANIES IN THE WORLD”.
• Recipient of the Environmental Leader Product Project Awards for our 2020
Legacy of Good Plan
• 1st to ban the export of e-waste to developing countries

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 • 1st to use innovative packing materials such as bamboo and mushroom
• 1st to offer free global recycling for consumer’s career into management,
executive leadership and more leadership and more a commitment to our
communities (and our planet)
• Closed-loop recycled packaging
• Support of solar powered classrooms
• Technology recycling and refurbishing efforts
• Team volunteer opportunities
• Employee charitable donation matching Customers Winning Together Innovation
Results Integrity diverse and inclusive Dell ranked No. 4 on Diversity Inc’s list of Top
10 Companies for Global Diversity. We’ve increased our gender diverse hires by four
points in the past 2 years.

Dell Computers won business on price, but the company provides also high-quality
products and services and maintains partner relationships with their customers. Actually,
Dell Computers have found that the pricing was only one-third of their customers'
decision-making process; the other two-thirds represented service and support

Customer Value Proposition

 Dell sell its products at low prices because of its just- in –time ordering system which
minimizes stock and the need to calculate demand in advance .

 They provide an opportunity for the customers to choose what specifications they want
through Dell’s customization program and the prices are quoted accordingly.

 The sales and marketing efforts of Dell are focused around customer groups whereas many
of the technology companies focus around product lines.

 The ability to quickly respond to the design flaws and component defects reported by the
customers gives a significant advantage for Dell over other PC makers.

 The direct sales approach by Dell gives an edge over the other manufactures which acts as a
totally customer driven system. This customer driven system provides flexibility to transition
quickly to new generations of components and PC models.

 Dell website provides almost all the details what the prospective customer wants like
configuration, price customization, track order etc. As the sales through website is higher
than the sales inquiries received via phone. This helps to identify the level of customers “E-
Loyalty” regarding the purchase mode.

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  Dell has an efficient way of delivering free. On- Site service for most of its PC’s by having a
tie up with local contracts service providers to support the customers.

Hewlett Packard Company (HP) is an American multinational Information

Technology organization that provides hardware and software services to small,
medium and large sized businesses across industries. It also has an extensive
range of IT products to offer.

HP is a technology company that operates in more than 170 countries around the world. We
explore how technology and services can help people and companies address their
problems and challenges, and realize their possibilities, aspirations and dreams. We apply
new thinking and ideas to create more simple, valuable and trusted experiences with
technology, continuously improving the way our customers live and work. No other
company offers as complete a technology product portfolio as HP. We provide
infrastructure and business offerings that span from handheld devices to some of the
world's most powerful supercomputer installations. We offer consumers a wide range of
products and services from digital photography to digital entertainment and from
computing to home printing. This comprehensive portfolio helps us match the right
products, services and solutions to our customers' specific needs.

 HP was incorporated in 1939.

 Corporate headquarters are in Palo Alto, Calif.

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 Mark Hurd is president and CEO.

 HP is a Fortune 11 company, with $86 billion in revenue,

generating $7 billion in organic growth for fiscal year 2005.

Growth:
HP is focused on three technology shifts that have the power to transform our customers'
lives and businesses.

 Next-generation data centre

 Always on, always connected mobile computing
 Ubiquitous printing and imaging.

Our vision is to create technology that makes life better for

everyone, everywhere — every person, every organization, and
every community around the globe. This motivates us — inspires us
— to do what we do. To make what we make. To invent, and to
reinvent. To engineer experiences that amaze. We won’t stop
pushing ahead, because you won’t stop pushing ahead. You’re
reinventing how you work. How you play. How you live. With our
technology, you’ll reinvent your world.

This is our calling. This is a new HP.

Keep reinventing.

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Value proposition is identical as competitive differentiation. It's the basis on which
customers would purchase a company's product or service as contrasting to another's.

If the company can put it through clearly and the customers and employees agree that it's
correct, then the company is in business. And if the company isn't able to come up with a
good one, then it will likely experience the slow, excruciating loss of share in the market and
erosion of margins in profit.

The IT industry is extremely volatile and ever changing, it is next to impossible to survive in
this industry without innovation.

Hp provides its customers with products enabled with the latest technology and sky high
performance, and all this at extremely rational prices. Adaptive edge architecture used by
hp makes it simple for the company to provide to its customers forthcoming needs. By
providing regular upgrades hp facilitates expansion of product and solution life.

Even though hp provides its customers with the benefits of latest technology at reasonable
price yet in recent times hp has failed to innovate which was made evident by the
discontinuation of Ipaq smart phones. The company's inability to launch mobile internet
device in the first half of 2010 has put hp far behind.

Furthermore, revenues from ink sales, a major part of its Imaging & Printing division, have
been declining as consumers are not only printing less, opting for online storage and
transition of documents, but also buying cheaper, generic-branded ink cartridges. Brands
like Ink Tec and Ink Wise have gained popularity as consumers were looking to save money
in the recession. The shrinking revenue stream is making printing a smaller priority for the
biggest manufacturers.

Hp has its prime focus on innovation and provides the customers with the latest plug and
play and constant upgrades. But in context of mobile phones it is however difficult to imply
the same as hp has had difficulty in issues with using the windows operating system on
touch screen devices which in turn had been responsible for keeping hp branded mobile
phones out on the fringe. Though by the acquisition of palm inc. hp looks forward to launch
a web operating system based device in early 2010.

Captive Product Pricing

Hp uses captive market in the context that its printers are priced in a way affordable to its
customers but it tends to recoup its margin from the sale of its ink cartridges that fit those
printers.

Promotional Pricing
Hp makes use of promotional pricing to promote its products by making available various
offers and vouchers. Hp gives discount to buyers of large volumes and also to channel
members like National and sub distributers who perform further selling

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SEGMENT PRICING
Hp also follows segmented pricing whereby household and industrial customers pay
different prices for the same product. Different versions of the same product are priced
differently because of different features.

Place
Strengthening upcountry focus: for the personal printing range hp will be increasing its sales
from 300 cities to 450 cities through channel expansion

Enhancement of availability: 1500 multi brand retail outlets and new personal printing
solutions across 400 hp experience zones.

Customer experience enhancement: increase in number of service centres from 273 to 342
and increase in customer support coverage from 114 to 155 cities.

Sales Promotion
Hp promotes its products by various money-off offers, introductory offers and other types
of coupons.

Launching of sweepstakes: a total of 21 prizes were given out to people who won by
submitting their pictures and a short story about their printer.

Development programs focussed on market: customized solutions offered for self

employed, design agencies, photographers and jewellers.

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 DELL VS HP
Hp and dell do have a few things in common. Starting with pricing both dell and hp sell their
merchandise directly and maintain a cheaper price. Both dell and hp hold promotions
frequently for their laptops. Choice of various designs and colours for their products are
offered by both the companies. Both companies offer durable products and last long
depending on use and care, a warranty is also offered which can be extended for a price

DELL HP

Dell mission-Dells mission is to be the most Hp mission-To provide product, services and
successful computers company in the world at solutions of highest quality and deliver more
delivering the best customer experience in the value to our customers and earn their respect
markets we serve. In doing so we meet the and loyalty.
customer expectations of: Highest quality,
leading technology, competitive pricing,
individual and company accountability, best in
class service and support, flexible customization
capability, Superior corporate citizenship and
Financial stability.

Vision statement-It's the way we do business; Hp vision-To view change in market as an

it's the way we interact with the community. It’s
the way we interpret the world around us- our
customer needs, future of technology and
global business climate. Whatever changes the
future may bring our vision- dell vision- will be
our guiding force.
opportunity to grow, to use our profit and our
ability to develop and produce innovative
products, services and solutions that satisfy
emerging customer needs.

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DIFFERENCES

 Value proposition or competitive differentiation whatever one may call it, may not
guarantee success, but it is not likely to get there either without it.

 Value proposition to offer customers custom built ibm-compatible computers

straight from the manufacturers and for cheaper than other brand names was
offered from the beginning by Michael dell.

 The major difference between dell and hp is in their chain of supply. Even though hp
sells directly to its customers yet it relies heavily on its indirect distribution models.
Hp's focuses on providing its customers with the products of highest quality and
latest technology at affordable prices whereas dell in this context focuses on lowest
cost with high quality for which dell uses its direct supply model.

 Dell took up a new strategy to expand to notebooks, storage, peripheral etc from
desktops, to contend against rivals like HP.

 But recently there have been various complaints and unhappy customers due to
poor after sales service provided by dell. Providing pc at low prices is how dell built
its reputation. Yet dell fails to provide a customer intimate solution and if the
product starts giving problems after a few months the experience is likely to differ
from the original acquisition experience.

 Until now dell has stood by this approach because its customers tend to be
experienced in the field of technology and aren't expecting a lot of after sale service.
However customers are growing in numbers and that's where the problems are
arising from.

 Achievement of a decent market share by dell has in turn led to the company picking
up new customers much of whom are novices or first time buyers requiring lot of
after sale services.

 On the other hand, Hp's focus to reach the customers is broader than dell, as dell
only looks to cater to the unsophisticated and educated customer.

 Hp considers the vital markets as different entities and targets them differently
whereas dell considers the south Asian market similar to that of U.S. and Europe.

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A Shift in Strategy
 Dell being essentially a low cost provider does not have enough margins in profit to
offer full fledged customer service
 But paid customer support was recently announced by dell. Apart from offsetting
customer complaints dell is hoping to push up profit by spinning customer service
from an expenditure to a profit centre.
 This however may lead to confusing customers by becoming a services company and
in turn confusing the brand name.
 HP depends on its customer's outlook and rating. This tactic helps the company to
get continuous feedback about its products and give the support needed for the
products in order to accomplish a strong support system. This strategy helps the
company to strengthen the relations between company and clients.
 Dell follows the principle of ethnocentrism whereas hp follows the policy of
polycentrism.

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 RESEARCH METHODOLOGY

The process used to collect information and data for the purpose of making business
decisions. The methodology may include publication research, interviews, surveys and other
research techniques, and could include both present and historical information.
It is pursuit of truth with help of study, observations, comparison and experiment.

Objectives of Research
 Defining and redefining the problems.
 Formulating suggested solutions.
 Collecting, organizing and evaluating data.
 Making deductions and reading conclusions.

Research Process

 Formulating the Topic: Studying the topic “Value Proposition” in detail and
getting to know its aspects and its importance.

 Preparing the Designed Format: Preparing for a rough outline to work

in for and start to collect information related to that. Choosing the Industry and two
organizations out of it which could help in explaining the value proposition in a
better and detailed manner.

 Determining Sample Design: The pattern or which would help us in

knowing that the organizations are delivering value that they promise.

 Collecting the Data: Choosing the retailers and the consumers who would
take the survey and fill the questionnaire with honesty and help in giving appropriate
results.

 Analysis of Data: Going through the data collected and analysing the pattern
of the answers by the sample population.

 Generalization or Interpretation: And at last interpreting it and getting

to know that which organization live up to its words and deliver value or whether
both deliver promised values.

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 DATA ANALYSIS
As per our survey we went to some stores near Delhi and asked them to fill our
questionnaire and collected data. We also went to some consumers and asked them about
their satisfaction level with the product. On the basis of that we interpret some conclusions

Middleman Survey :
Q1) Does Brand Value of the product makes you sell this product?

HP ( Brand Value)
Yes No

33%

67%

67% of the Retailers of laptops sell product of HP by seeing its brand value in the
market whereas only 33%
Doesn’t care about the brand before selling the product

Q2) Do you think this product can sustain market for long ?

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 HP(Sustainibility)
HP (Sustainibility) Yes No

17%

83%

83% of the middleman thinks that HP can sustainin the market for long whereas only
17% are not sure about its sustainability.

DELL

Dell (Sustainibility)
Yes No

25%

75%

75% of the middleman think that Dell can sustain in the market for long while 25% were in
doubt .

Q3) Does the Price Value of the product motivates you to sell this product ?

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 Price Value ( Dell)
Yes No

50% 50%

50% of the retailers think that price value of Dell laptops is worth and quality offer by it also
the customers are satisfied by their price value

CUSTOMER SURVEY
Q1) Are you satisfied with the product?

Satisfaction of Product
HP Dell

17%

83%

The main objective of any brand is to check whether customers are satisfied with their
product or not. By our survery and data report 83% of HP customers are satisfied with the
product, quality , service and its durability while only 17% of the Dell customers are satisfied
with the brand , they have issues of its durability and quality.

Q2) Does the product is worth of price?

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 Worth of Buying
HP Dell

20%

80%

80% of the customers thinks that its worth of buying HP laptops , which means they like the
product and its services, quality and other things whereas only 20% of the Dell customers
think that buying a Dell laptop is worth of price which means dell fails to provide the service
and quality.

Q3) Will you purchase any of other products of the same brand again?

Purchase Again
HP Dell

25%

75%

75% of the HP customers will like to purchase the product again if given the opportunity
where as only 25% of Dell customers will likely to the product again .

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 CONCLUSION
On the basis of our survey we can conclude that more of the customers are satisfied by HP
its quality offering, services provided and thinks that its value for money . The mission of HP
is to earn loyalty of customers by providing the quality value to its customers where as Dell
customers are comparatively low on satisfaction with the product the main problem its
durability according to our survey we came to know that some of problems regarding
keypad and mouse pad that is hampering customers .

Though Dell products are cheaper then Hp so its budget friendly . HP hands down has a
greater number of features and is known to perform better than Dell. HP laptops have a
higher battery life than Dell laptops and if used well the battery life of a HP laptop does not
reduce significantly over the years with use . Dell has known to be really caring to its
customers. It regularly offers deals such as free memory upgrade or exceptionally low priced
memory upgrade. All you need to do is keep a keen lookout for such deals on their website.

Dell has a very huge range of laptops. It caters to the needs of a lot more individuals as
compared to the HP’s laptop range. Dell’s vast variety means that people can choose a
laptop that is just perfect for their needs, with HP’s range of laptops people might have to
compromise and settle for something other than what they originally intended to buy.

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NAME -…………………………………………………………
STORE NAME - ……………………………………………..
HP Dell
Questions Yes/No
1) Does Brand Value of the product
makes you sell this product
2) Does the Quality value of the
product satisfies customer ?
3) Did you surveyed market before
selling the product ?
4) Does the Price Value of the
product motivates you to sell this
product ?
5) Are you satisfied with the perks
and incentives provided by the
company ?
6) Are you motivated by the product
placing value ?
7) Do you think this product can
sustain market for long ?
Customer Name - …………………………………..

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Contact No. ……………………………………………
HP Dell
Questions Yes/No

1) Are you satisfied with the product?

2) Does the company deliver you the

product as promised?
3) Does the product is worth of price?

4) Will you purchase any of other

products of the same brand again?
5) Is the product well communicated
and all your queries were taken?
6) Are you satisfied with the
customer care service of the
product?
7) Do you compare the price of
product before buying ?
8) Will you suggest someone to buy
this product?

Retailers Pictures
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 Customer Pictures
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