Professional Documents
Culture Documents
Session 6 Value Delivery Process
Session 6 Value Delivery Process
Session 6
VALUE DELIVERY
PROCESS
Value Delivery Process
Recently, due to the pandemic, when consumers are preferring healthy products, several companies
have added a health and wellness portfolio to their product offerings.
Asian Paints created a new “Health and Hygiene” segment, that offers an anti-bacterial range of
wall paints, disinfectants and sanitisers, and masks and PPEs. According to the company website,
Royal Anti-bacterial wall paints are, “A revolutionary indoor Anti-Bacterial paint, Royale Health
Shield Luxury Emulsion is equipped with Silver
Ion Technology which kills 99% of infection-
causing bacteria on the painted surfaces and
providing a more hygienic environment at home.
This healthy paint also improves indoor air quality
by reducing formaldehyde, a source of indoor air
pollution.” Picture 6.1 shows the communication
showing the value (Asian Paints, 2021).
1
Principles of Marketing| Richa Saxena
The marketers need to prioritise the value best desired by the consumers. The assessment of the
customer's perceived value can be done through market research and competitor analysis. The
objective of this exercise is to seek maximum
customer satisfaction by meeting customer
expectations. Also, the value proposition should be
designed from a long-term perspective and should
not be changed often.
In modern marketing, the value creation process is carefully done by analysing the demand and
preference of the target audience. The entire company – all departments, functions, and activities –
are involved in the task. Technology, design, R & D, engineering, manufacturing, finance, and
marketing, all have a role. Royal Caribbean is the world’s biggest cruise liner. Their ship Quantum
of the Seas, designed with the Chinese guests in mind, is a fully immersive ship, complete with a
Mandarin-speaking crew and local cuisines served on-board (Royal Caribbean, 2014).
Amazon Prime is another example, where the company has clubbed various benefits under Prime
membership. As illustrated in Picture 6.3, Prime membership includes OTT platform and music
subscription, and fast delivery.
3
Principles of Marketing| Richa Saxena
Capturing the Value back for the Company from the Market
Over some time, the company attempts at getting its due share from the value. The value is captured
back through value pricing. The company
identifies the features that customers value
and design a very strong pricing strategy
around it. One of the examples is sachets
marketing. Marketing of shampoos and
similar products through sachet is an
innovative “offer value and capture value”
process (Ramaswamy & Namakumari,
2018, p. 31). Picture 6. 5 Horlick's Sachets
Recently, the sachet market has expanded to products like washing powders, cooking oils, ghee, face
creams, and tea bags. The sachet marketing gave a unique opportunity to many customers to try the
company’s products. And with this, the companies too captured good value for themselves from the
market through volume.
4
Principles of Marketing| Richa Saxena
Today’s consumers are also willing to be a part of the value creation process. The shift began in the
late 1990s when a few pioneers began to let customers participate in product development. Lego, for
example, invited consumers to create designs of toy robots and construction models, write
applications for the robots, and offer them to other consumers on its website. Over the past decade,
dozens of other firms—including Cisco, Dell, Procter & Gamble, Sony, Starbucks, and Unilever—
have embraced “customer co-creation” and discovered something crucial: Generating new
experiences for end customers often requires designing better experiences for internal players, a fact
frequently overlooked in conventional process analysis.
A far better way to design new customer experiences is an organized process of experimentation
where customers and companies progressively evolve existing offerings into new ones.
Starbucks took a long time before settling on the customer experience it currently provides. The first
stores, originally called Il Giornale, were pompous Italian places where the whole menu was in
Italian, customers could not sit down, baristas were fully dressed up, and loud Italian opera music
hindered any socialization. Now, Starbucks encourages dialogue across all its stakeholders through
the highly popular mystarbucksidea.com website. 3M invites its B2B customers to co-create new
products with its R&D people live in their corporate labs. Apple invites third parties to develop new
applications for its iPhones, iPads, and iPods (Ramaswamy & Gauillart, 2010). User-generated
content also known as UGC is a great way to co-create. Article 6.2 brings you the top UGC of pre-
COVID 2020 (Rindfleisch, 2020).
5
Principles of Marketing| Richa Saxena
help in increasing your brand exposure. The
more exposure for your brand, the better
brand awareness and reach on the platform.
User-generated content also adds to the
diversity of content on your feed.
6
Principles of Marketing| Richa Saxena
As their Instagram bio reads, Visit Singapore its users to tag it in content that features their
asks their audience to either tag them or add products. Then they post the user-generated
the hashtags ‘#PassionMadeImpossible or content they are tagged in.
#VisitSingapore’ to allow users to repost
Look at the Instagram feed of NYX Cosmetics
content.
and you will see a whole range of appealing
Using UGC, Visit Singapore attracts followers and creative posts by different users. Each of
to their content on the platform. these posts features the brand’s products.
4. Adobe 7.Nike
Another brand acing User-generated content It is very well known that the ‘swoosh’ logo
is Adobe. This brand constantly runs user- brand, Nike does a lot of creative marketing
generated content campaigns based on campaigns to promote their products. This
branded hashtags to create content on the includes doing user-generated campaigns
platform. Most recently, on the occasion of from their creative arsenal. One of which was
pride month, Adobe has created a UGC Nike’s “Better For It” women empowerment
campaign based on the branded hashtag campaign.
‘#Adobe_PridePortrait’.
SUMMING IT UP
User-generated content is a great format to
Picture 6. 8 Go Pro experiment with. Users’ content featuring
your brand and/or products helps you
establish trust for your brand. It also helps
6. NYX Cosmetics
you increase brand exposure. With the help of
NYX Cosmetics is also posting user-generated
a good social media analytics tool, you can
content to power up its brand. The brand asks
7
Principles of Marketing| Richa Saxena
measure your growth on the platforms. Here Adobe’s constantly changing hashtags-
is a quick round-up of some of the top UGC based user-generated content
campaigns of all time- campaigns
GoPro’s hashtag-focused user-
Airbnb's Instagram feed populated
generated content aims to attract
completely with user-generated
customers through content created
content featuring great homestays and
using the brand’s product (s)
vacation homes
NYX Cosmetics posting creative
ASOS’s hashtag campaign aims to
content by their users to create a
bring more customers on-board
colorful, attractive feed
through posts featuring users donning
Nike’s ‘Better for It’ women
clothes from the online apparel store
empowerment campaign encouraging
Visit Singapore’s smart hashtag and
women to take care of their body and
@tag-based user-generated campaign
health
to promote the country’s tourism
(Rindfleisch, 2020)
Co-Creation Advantages
Customer co-creation is central to the Network Orchestration business model. Research shows that
companies that facilitate a network of co-creators deliver shareholder value two to four times greater
than companies that don’t leverage co-creation business models. We see four main reasons for this
value gap:
Lower marginal cost: Your customer co-creators bring an entirely new set of assets to
the company, at a very low or near-zero cost. They may be willing to share their opinions, skills,
relationships, and even their real assets (cars, apartments, etc.) for the right incentives and shared
value.
Improved customer insight: The increased customer intimacy that comes with co-
creation deepens your understanding of your market, enabling you to serve it better. When
customers co-create and have a vested interest in its success, they are more willing to share personal
data and other assets with it.
8
Principles of MarketingPrinciples of Marketing | Richa Saxena
Article 6.3
9
Principles of Marketing| Richa Saxena
Discussion 6.3 Find one example of co-creation. Explain tangible and intangible
value features with respect to your example.
References
Asian Paints. (2021). Health Shield. Retrieved from Asian Paints:
https://www.asianpaints.com/healthshield.html
ET Brand equity. (2019, December 12). YouTube, Gaana lead top music apps of India. Retrieved
from ET Brand equity:
https://brandequity.economictimes.indiatimes.com/news/digital/youtube-gaana-lead-top-
music-apps-of-india/72487610
Gilliland, N. (2018). Lego to BMW: How brands have used co-creation to earn consumer trust.
Retrieved from EcoConsultancy: https://econsultancy.com/lego-to-bmw-how-brands-have-
used-co-creation-to-earn-consumer-trust/
Libert, B., Wind, Y. (., & Beck, M. (2015). What Apple, Lending Club, and AirBnB Know About
Collaborating with Customers. Retrieved from Harvard Business Review:
https://hbr.org/2015/07/what-apple-lending-club-and-airbnb-know-about-collaborating-with-
customers
Ramaswamy, V. S., & Namakumari, S. (2018). Marketing Management Gloabl Perspective Indian
Context. Noida: McMilllan.
Ramaswamy, V., & Gauillart, F. (2010). Building the Co-Creative Enterprise. Retrieved from
Harvard Business Review: https://hbr.org/2010/10/building-the-co-creative-enterprise
Rindfleisch, A. (2020). Optional Resources for GoPro case study. Retrieved from Coursera:
https://www.coursera.org/learn/marketing-digital/home/welcome
10