CHAPTER I VALUE PROPOSITION
In this chapter, authors analyze industries around the market and competitor.
Understanding market potential is important for companies that want to launch new products or services, so authors took time to analyze the healthy catering market through survey. Using a variety of secondary market research sources and databases, authors synthesize results from previously published research and other data sources to help determine market size.
1.1. Market Analysis
1.1.1. Market Profile
For determining the market size, there are two basic methodologies that can be used top-down and bottom-up. Top-down uses existing market size and determine how much percentage of Pratique target market and the bottom-up approach is totaling main variables of the target market. Pratique are using bottom-up approach based the data available on the market. The variables are:
Spending behavior in south Jakarta
According to BPS in year 2017 the average percentage of household
expenditure of South Jakarta is 38 percent for food and 62 percent is for non-food
category.
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Population in south Jakarta
From the survey that BPS conduct in South Jakarta, as per 2017 the total population is about 2.226.830 people and predicted to keep growing, 989.992 of them is worker which about 44 percent of the total population in South Jakarta is a worker. And supported with result from our survey that the 41 percent of the worker are eat outside for lunch more than 4 times a week because of they are busy with they work.
Total Available Market 5 T
Serviceable Available Market 2.4 T
Serviceable Obtainable Market 240 M
Figure 2.1 Market Size
Source: Authors analysis
Based on the variable mentioned above, authors can predict Total Available
Market (TAM), Serviceable Available Market (SAM) and Serviceable Obtainable
Market (SOM) to measure the market (TheBusinessPlanShop). TAM is entire potential market that can use your product or service. Where SAM is the segment of targeted market and SOM is how big is the portion of the SAM that you can capture.
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Based on data from BPS, the resident 37.7 percent who lives in South
Jakarta spend of their monthly expenditure is above IDR 2.000.000 per month. 38 percent out of 100 percent of them is for food class expenditure. From the survey conducted, almost half of the respondent had income in IDR 8.000.000 –
12.000.000. If taking base line at IDR 6.000.000 as their income 38% of it would be IDR 2.2800.000 per month just for food category. Population in South Jakarta is 2.226.830 per year 2017. That makes out TAM IDR 5 trillion, this means there is still plenty of market in food industry in South Jakarta to take advantages of.
While in SAM, Pratique take the data from BPS generation Y in the age bracket of 23-41 there are 9.81.728 people as a worker. From the survey, 49% the salary is at IDR 8 until 12 million followed by 27 percent on 4 until 8 million, then
14% of them is above 12 million and 8% is under 4 million. With this, the prediction of SAM can be calculated by multiplying total of gen Y with the spending money per month for food, Pratique got IDR 2.4 trillion.
SOM is based on package sales, authors assume that it can sale 3000 package a month which priced at IDR 75.000 then the number is 240 million.
Compare to SAM, the share market is about 0.01% of the SAM value.
Pratique kitchen will be based on Kebayoran lama and the operation will cover 5 km from the kitchen, this will cover some major office building like
District 8, Equity tower, Gandaria 8, Menara Jamsostek, Menara Mulia,
Summitmas, Sentral Senayan. This estimation will cover around 35 office towers, some apartment and University.
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1.1.2. Market Potential
The authors decide to choose survey as the research method for this method.
The instrument that was used is questionnaire. According to Nazir (1983), questionnaire is a set of questions that logically relate to research problems, and each question is the answers that have meaning in testing the hypothesis. The list of questions is made quite detailed and complete. Here the authors target audience or sample comes from people who live in Jakarta, particularly those who works in the urban area. Below is the writer’s analysis of the results from questionnaire collected.
To find out more about the market profile of the Pratique business model, authors distributed questionnaires to get customer insights that authors will later use as references in determining the strategy in running this business model. Total respondents filled out questionnaires totaling 102 respondents who filled out online.
Online questionnaires are distributed to office workers who are the target market for this business model. The results of the questionnaires distributed are as follows:
Figure 2.2 Gender respondent Source: Authors analysis
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Based on Figure 2.16 the gender of the respondents consisted of 60.8% of women and 39.2% of men from a total of 102 respondents who answered. In this case, the Pratique Catering business model does not distinguish gender in determining segmentation targets.
Figure 2.3 Percentage of age groups of respondents Source: Authors analysis
Based on Figure 2.13 for the respondent's age group, the majority is dominated by the age group of 25-30 years by 59.8%, then followed by the age group 31-36 years by 22.5%, and the rest is the age group 20-24 and more than 36. Age group that dominating respondents will be used to determine the target segmentation of business models Pratique.
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Figure 2.4 Percentage of respondent’s residents Source: Authors analysis
Based on Figure 2.14 for the location of the respondent's residence, as many as
100 respondents lived in Jakata or 95.1% according to the target market of the
Pratique catering business model.
Figure 2.5 Percentage respondents’ monthly income Source: Authors analysis
Based on Figure 2.15 regarding the monthly income of respondents, 49% ranged in the range of IDR 8.000.000 - 12.000.000, followed by a range of IDR
4.000.000 -8.000.000 by 27.5%, and the range in the range of > IDR 12.000.000 by
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14.7% and lastly the range of < IDR 4.0000.000 is around 8.8%. In this case, the target segmentation of the Pratique business model will target the social classes from middle to high income.
Based on the survey, there are still a lot of people struggling to find healthy based food around their workplace. The reason may vary, but the most common one is they don't have time to prepare for their meal because of their hectic work. As seen on the table below, the survey stated that around 67.6% the respondents seem hard to find a healthy based food near their work. About 23.5% the budget for lunch is IDR
25.000-35.000, following 52% at IDR 35.000-45000, lastly 18.6% > IDR45000.
Figure 2.6 Healthy food location near office area Source: Authors analysis
Based on figure 2.17, 44.1% of the respondent stated that the reason they chose to eat outside is because of their hectic work, the second is 25.5% they can’t cook themselves and the rest is cannot cook and got no time in the morning with 15.7% and 14.7% respectively. Due to their intensity of the work, this will lead to people
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buying their food wherever they feel like without considered the kind of food they consume. For people who work in Jakarta, they generally work in hectic area. Early in the morning they had to leave to avoid traffic jam and route policies to get in to their workplace.
Figure 2.7 Why they choose to eat outside Source: Authors analysis
Figure 2.8 Frequency eating outside Source: Authors analysis
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Based on survey above fig. 2.18, there are still a potential market for this catering, because there are about 52% of respondents that claim to eat outside more than four times a week. This proof that consumer in Jakarta is evolving and the purchasing power is high. Consumer are not afraid to spend money on something they need it, and food is one of them.
Figure 2.9 Online media used for purchasing food online Source: Authors analysis
95.1% already familiar with purchasing food online, this survey proof that millennials habits to continue the experience gained from offline to online. The online media used is variety, but from the survey as shown in Fig 2.19, 53 people (95%) tend to use the go-food/grab food application to order their food. This is one of the reasons why creating mobile application can have a lot of advantages for the consumer. They can order the food wherever they want and any time they want.
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Figure 2.10 Awareness of food the you consume Source: Authors analysis
Figure 2.11 Interest to eat healthy Source: Authors analysis
Based on Fig. 2.20 and 2.21, 55.9% of respondent is sometimes aware of what are they consuming is it healthy or not, 29.4.1% is not aware, and 14.7 is aware all the time. Author also asked how many times do you work out in a week? And the and the answer is 43.9% is not routine, 29.8 is 1-2 times per week, 14% 2-3 times per week and lastly above 3 times per week.
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Figure 2.12 Willingness to pay for healthy food Source: Authors analysis
Based on Fig. 2.22, Respondents are willing to pay extra for healthy food and interested in subscribing healthy catering. From the survey it stated that 66.7% is yes,
17.8% is maybe and the rest is not really.
From this survey Author can make conclusion that people are not actually pay attention to food they eat, and they wanted to change their lifestyle into a healthy one.
1.2. Consumer Behavior Research
1.2.1. Healthy lifestyle
According to Kotler, a healthy lifestyle is an overview of activities or activities supported by interests, desires and how the mind goes through it in interacting with the environment in good and positive things. From this understanding can be concluded healthy lifestyle is a choice very appropriate for survival, while a healthy lifestyle is the way must be taken to obtain physical health both physically and
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spiritually. So, the style of healthy living is a process to achieve a healthy lifestyle, which include:
Food Consumption
Consumption of food that meets health standards is food that must be able to
meet the needs of the body. But not many people pay attention to food, even many
foods that are harmful to health are in great demand, such as foods that contain
preservatives, fast food / instant food.
Sports
Exercise is an activity that is easy to do but many ignore it, even though
exercise is a source of health for the whole body. Regular exercise provides many
benefits for the health of the body, such as being more active, lowering high blood
pressure, strengthening bones, increasing HDL (good cholesterol), preventing
diabetes, reducing the risk of cancer, reducing stress and depression, and also
giving fitness.
1.2.2. Generation Y
Generation Y is a generation that is aware of price and quality with product selection. Consumers with Generation Y are consumers who use the internet as the main source of information and social. In addition, Generation Y consumers were raised in an era of economic prosperity that made it possible to have additional income and have many opportunities to spend it. One of the common shopping behavior of Y generation is that they prefer to buy new products in stores. In this case
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Y generation consumers or commonly known as millennial, have become an important market segment and millennial consumer shopping behavior has a big influence on older generations (Solomon, 2017).
Since the last two decades, Y Generation consumers have become the goal of global marketers because they have high purchasing power and tend to be involved in impulsive buying behavior, as mentioned before, internet usage behavior in Indonesia is around 32% for purchasing online and 89% for chatting. Y generation is a consumer born between 1977-1995. At this time many of the members of Generation
Y are just graduating from school, still studying in college, just graduating from college, and some are currently working. Generation Y income makes them a larger potential buying group. Thus, generation Y is considered as the group that has the most influence on purchases because of high purchasing power and significantly buying more often than other generations (Kim & Ammeter, 2017)
One of those purchase that millennial consume is food. Based on data managed by tirto.id, millennial expenditures in eating outside is outnumber other generations such as generation X as seen on figure 2.23. Millennial are often having a lot of activities in their workplace and this causes them to spend their money on eating outside (Debora, 2017). These data can back up the fact that many businesses often see millennial as their target market because they are very easy to spend their money on their needs, especially for food.
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Figure 2.13 Millennial consumption behavior Source: Tirto.id
Food consumption behavior is strongly influenced by social context. Research related to food consumption behavior tends to discuss consumption with dietary efforts or the effects of obesity (Higgs & Thomas, 2016). This is because the issue of food is very close to health issues. Meanwhile, research on food behavior with social contexts - especially from the influence of social media, is generally done through marketing approaches, brands, consumer types, and so on. In essence, research is conducted to look at food in the context of social media business.
Based on this phenomenon, Tirto.id conducted a survey which aimed to get an overview of the influence of social media on food consumption behavior for the community. Based on figure 2.24, the type of information that is most seek after by
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the public is food that is well-known (59.64 percent). In addition, 55.61 percent of the public also sought information about promos or discounts from food. There are also people who seek for healthy food, which around 49.78%. For recipes, as many as
44.62 percent of the public searched for this topic on social media. From this, conclusion can be made that millennial are often using media social as a tool to find information about food. The results also stated that millennial is generation that like to try everything new or trendy, this means that many new businesses has opportunities to attract this audience (Purnamasari, 2018).
Figure 2.14 Types of food information seek by consumer Source: Tirto.id
1.3. Industry Analysis
1.3.1. Porter’s Five Forces Model
Five forces model competition is powerful tool and widely used for assessing the strength of the competitiveness that affecting industry attractiveness (Gamble,
Thompson, Jr., & Peteraf, 2015). By using this tool, people can understand whether
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this industry is still attractive enough to do business in with microenvironment scale.
The variable is threat of new entrants, threat of buyer, threat of substitute, threat of supplier, and industry rivalry.
Figure 2.15 5 Porter diagram Source: (Porter, 1979)
Below are some analysis for the five forces:
Threat of potential new entrants
Threat of new entrant is a new player that can join in the industry. In this case is on low level.
Why is on low level the reason is, small to medium capital requirement depends on how wide you want to service your target market. Incumbents do not possess proprietary technology to produce the goods, raw material are widely available. The number of internet user are still growing and the trends towards m-commerce are more popular than e-commerce according to Euromonitor (2018) insights for
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customer in 2018 where Indonesia on second rank from china. Almost 60% purchased via mobile compared to computer (Hodsgon, Evans, & Marceux, 2018).
Figure 2.16 Mobile Versus Computer Purchase Percentage Source: Euromonitor (2017)
Based on these insights, new opportunities for mobile segments still wide available to be exploited. But new comer will have to fight the existing player in industry. The industry is still low it means still attractive to establish the business.
Threat of buyers
Threat from buyer is high, in this internet age where you can find various information about something you interested in, not to mention some of the price also will be there so the price list is mostly open to public and customer can get to consider one to another. The switching cost also variative depends on what package they wanted. By switching customer also give positive and negative from the seller.
The industry product is standardized.
Based on the survey for Jakarta market customer willing to pay more to get more healthy products but still price conscious, customer wants to change to other seller they will consider the quality and the price also the features they get. That’s why Pratique tried to lower the price from our competitor.
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Threat of Substitutes product
Threat of substitute product in the catering industry is high. Because food is a basic need of people, everyday people will search for food to fulfill their basic needs.
Besides healthy catering there are couple substitutes like normal food, restaurant or fast food to fill in their needs. The buyer switching cost is relatively low. On the long run Pratique will also look for substitute product to accommodate people’s need.
Threat of supplier
Threat from supplier is low. Supplier is the distributor that sells main fresh ingredients that is going to be used for Pratique menu. There are plenty of distributor for supplying fresh ingredients like in Jakarta there is Food Hall, Hero Supermarket,
Ranch market, local market etc. The ingredients are widely available in the market, switching cost are relatively low, Other than that Pratique also supports Indonesian farmers by using material to create the goods. This will be explained further in chapter 4 in risk management.
Threat if rivalry in the industry
Rivalry in this industry is moderate, since this is a monopolistic market and there are many small players but still growing. According to APJI there are about
1500 Catering business in Jakarta alone (SEDAP, 2014). With that number industry, player will have to select their market carefully and sometimes will try to compete in the same market with the other player. The marginal cost is still good enough to cover the fixed cost
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This industry is still compelling to enter because the threat from supplier and entrance are low, the rivalry in moderate level, and the high level is on substitute and buyer. The stronger the five forces the lower the profit potential, in the other hand the lower the five forces the higher the profit potential to come.
1.3.2. Competitor Analysis
Competitor analysis will give views is about strength and weaknesses of your possible competitor. Here is the possible competitor in healthy catering based on their product that has standard healthy package not diet package:
1. Slim Gourmet
Slim gourmet was a sister company of European Slimming Center. From
slimming focused they expand to other segment due to increased public demand of
healthy food. Currently they have 8 products which weight loss, extreme weight
loss, weight maintenance, medical conditioning, muscle building, custom menu,
healthy bento, and event catering. Slim gourmet currently has Facebook, twitter,
and Instagram as their social media and purchase can be done via their website,
some customization can be done through telephone/email but no mobile support.
They have largest partnership with other corporate level. Shipping charge is IDR
10.000 if < 5 meal.
2. Healthy Bento
Healthy bento first post in their Instagram is 22 August 2014, currently they
have 3 product which Healthy living, instant seasoning, and weight loss. Healthy
Bento has Facebook and Instagram as their social media. Purchase also can be
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done via their website and contact via social media or email, no mobile support.
Free shipping Jakarta Area.
3. 3 Skinny Minnies
3 Skinny Minnies established since 2014. They have 10 main package plus
seasonal diet, lean men, health streak, breastfeed, maternity, bride-to-be, no-salt,
no carbs, intensive diet, and seasonal package. Social media YouTube, Facebook,
Instagram contact via social media, WhatsApp and email. Website only for catalog
cannot be used as transactional method and no mobile support. Free shipping
Jakarta area.
4. Dapfurfit
Established since 2015, currently they have 4 packages Dapurfit, Dafit vege,
Dafit go, Dafit juice. Social media currently Instagram, YouTube, ask FM,
Facebook and twitter, contact via phone number or email. Website only for catalog
cannot be used as transactional method and no mobile support. Contact can be
done via Social media and email, IDR 15.000 per shipping.
5. Leafwell
Established in 2014, currently have 5 products which are weight loss,
maintain, muscle up, new mom, cia po. Social media has Facebook, twitter, and
Instagram contact can be done via WhatsApp or phone call. Website is only for
catalog cannot be used as transactional.
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To make it simpler Pratique categorize online capability into three categories:
● Online Presence
The company has online presence like social media, website, WhatsApp
contact or email to promote their product to the market, but that’s just it all
transaction is still in manual process not integrated to the website.
● E-commerce
E-commerce is where company take online presence further to enhance the
utility of website from just a gallery or portfolio, now customer can make
transaction through website directly.
● E-commerce with m-commerce
As the time shift and mobile phone are more accessible to everyone, so
company will make something that can be accessed wirelessly through hand held
device and cover a new segment of online market by making mobile apps to
support wider range of customer.
Table 2.1 Competitor Comparison
Competitor Online Category Product Cheapest package price S Slim Gourmet e-commerce 8 packages 79.000/day
ource: Healthy Bento e-commerce 3 packages 77.000/day
Authors 3 skinny minnies Online Presence 10 packages 230.000/day Dapurfit Online Presence 4 packages 100.000/day analysis Leafwell Online Presence 5 packages 110.000/day B
ased on data that writer gathers in terms on mobile apps there’s no one in the
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house that have mobile apps to support the business. Slim gourmet and Healthy
Bento support transaction from the website but they don’t have the mobile
platform yet. Other three competitor 3 Skinny Minnies, Dapurfit and Leafwell only
has social media and website to see their product but cannot do transaction. While
Slim gourmet provide next day service but there are shipping cost IDR 10.000 for
purchase less than 5 Pax.
1.3.3. SWOT and TOWS Analysis
SWOT analysis is used to assess company strength, weaknesses, opportunities and threat (SWOT). This one of a way to measure or monitor external and internally.
External factor covered for finding opportunity and threat. After finding attractive opportunities Pratique will be able to take advantage and eliminate the threats by evaluating Pratique internal strength and weaknesses (Kotler & Keller, Marketing
Management, 2016).
TOWS in the other hand has a different approach from SWOT, instead of focusing on internal environment, TOWS more towards to external environment to make strategic option. TOWS usually used to make strategic planning tools to help company take advantages of the opportunities, reducing the threats, exploit Pratique strength and overcome weaknesses. (Gamble, Thompson, Jr., & Peteraf, 2015).
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Table 2.2 Tows matrix
Internal
Strength Weaknesses TOWS Matrix -Mobile support -Food are standardized -Mix and match menu creation -Newly established no -Loyalty program reputation -Practical -Price above standard food -No need fancy place to operate
Opportunities SO Strategies WO Strategies -Health conscious trend -Tap into mobile apps to -Use social media to promote -Mobile user are still accommodate m-commerce Pratique product and services growing -Create healthy food menu -Create custom menu -No mobile support from -Couple product to -Good services
competitor accommodate needs
Threats ST Strategies WT Strategies External -Competitor make mobile -Ease of use of the mobile apps -Take serious attention to apps -Create loyalty points to attract feedback -High level of rivalry repetitive customer -Keep the food quality ok -Learning curve using -Add new feature to the apps -Promotion apps -Consumer preferences Source: Authors analysis
1.4. Value Proposition
In the modern age in the science of marketing that Author know is STP, which is Segmentation, Targeting and Positioning. This STP strategy basically used to position a brand in the mind of consumers in such a way that the brand has an edge competitive. The formula “Segmentation, Targeting, Positioning (STP)” is the essence of strategic marketing. The second phase is providing the value. Marketing must identify specific product features, prices, and distribution. The task in the third phase is communicating the value by utilizing the Internet, advertising, sales force, and any other communication tools to announce and promote the product. The value
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delivery process begins before there is a product and continues through development and after launch (Kotler & Keller, Marketing Management, 2016).
1.4.1. Segmenting
According to Kotler & Keller (2016), market segmentation is the division of a market into different groups of buyers. Market segmentation can be intended as a heterogeneous market division into homogeneous market groups, where each group can be targeted to market a product according to the needs, wants, or characteristics of the buyers in the market. there are three market divisions that are done:
1. Geographic Segment: geographical segment is focuses on the city of Jakarta. In
this section, Pratique segmentation is covering office workers who are work in
central (crowded) areas, specifically in South Jakarta urban areas.
2. Demographic Segment: The demographic segment is the division of the market
using several variables such as age, race, gender, income, level of education, and
social class. Pratique covers market segmentation with a demographic age of 23-
41, which is also commonly known as Generation Y or millennial and with an
income level of IDR 6,000,000 above. Middle-class millennials generation is a
demographic segment that has purchasing power because it consists of individuals
who are already working.
3. Psychographic Segmentation: Psychographic segments are divided based on
psychographics such as social characteristics, lifestyle or personality. In this
section, the segmentation of Pratique catering is those who wants to start living
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healthy, in terms of food and also the activities. From the survey gathered by the
writer, most of the respondent are still in the process of living healthy.
1.4.2. Targeting
Targeting is essentially means choosing one or more market segments that will be entered or how the company optimizes a market and in determining the company's target market must use the concept of priority, variability and flexibility. Targeting is the selection of market segments that have been focused which are then chosen to be used as markets potential. Thus, the market that is targeted will be more specific and allow producers to reach more potential consumers, so the response of market potential will be greater (Kotler & Keller, Marketing Management, 2016).
Once firms have identified its market-segment opportunities, they have to decide
how many and which ones to target. Two factors companies look at is the
segments overall attractiveness and the company’s objectives and resources:
Full Market Coverage - A firm attempt to serve all customer groups with all the
products they might need.
Selective Specialization – A firm selects several segments, each objectively
attractive & appropriate, and promises to be a money maker. The multi segment
strategy has the advantages of diversifying the firms’ risks.
Single-Segment Concentration – In concentrated marketing a firm gains a strong
knowledge of the segment’s needs and achieves a strong market presents. There
are risks involve in single segment concentration such as loss of customer’s
interest for a particular product.
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Target selection is based on the identification of the problems that have been explained in chapter 1, namely the variety of needs and interests of consumers towards a product, besides the density or business of the community makes consumers have less time to buy a product, and the last is consumer behavior that is always changing by therefore it is required to always innovate on a product. Upper- middle class millennials with an age range of 23 years to 41 years are believed to continue to seek innovation and diversity in offering the latest tea. Many start-up companies handling this desire continue to flow and emerge on the market. Therefore,
Pratique targets the urban middle class millennials along with consumer demand that continues to grow, innovation and marketing of new products that often have helped keep healthy food a choice, especially in the minds of consumers.
Target market for Pratique uses market specialization approach, because it is only targeting to a specific segment of market, in this case is office worker that wants to start living healthy. Based on the survey that has been conducted, Y generation is dominating and most of them (66.7%) has already working and has range of income from IDR 6.000.000 above. How the author knows that most of them is in millennials generation, is from the fact that they used social media and mobile apps as a tool to get information (Social Media 66.7%, Mobile Apps 63.3%). This survey also shows that all the respondent already has experiencing buying online which is crucial to know what kind of buying power that this respondent has.
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1.4.3. Positioning
Positioning is designing a company image and product and take up a place in market minds. By having brands in consumer’s mind, it will maximize the potential of benefits to the firm.
The differentiation and positioning step consist of three stage:
- Identify a set of competitive advantages different where to build positions.
- Choose the right competitive advantage.
- Choose the overall positioning strategy.
Positioning is not the same as segmentation either in concentration or concentration. In other words, positioning is not placing products for certain groups but trying to instill a product image in the minds of consumers in the segment that has been chosen. Positioning relates how to play communication so that in the minds of consumers, a particular image is planted. Guided by marketing strategies, the company designs an integrated marketing mix consisting of factors under its control - products, prices, places, and promotions (4Ps). (Kotler and Armstrong, 2015).
Based on author analysis and survey, they will make positioning map based on ease of use and product range to cover the consumer needs because Gen Y is diverse and wants everything fast. If see at the image, Pratique is positioned at Easy to use and low product range, with the specific target market Pratique only need a couple of products and make it easy to use in terms of purchasing, browsing the menu,
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customizing the menu, etc. to accommodate their needed instead of aiming for the mass market.
Figure 2.17 Positioning map Source: Authors analysis
1.4.4. Value Proposition
Value proposition according to (Osterwalder, Smith, Pigneur, & Bernarda,
2014) is a benefits customer can expect from your products and services. In other way value proposition is creation of product and services that designed to attract your customer based on customer profile that aimed for.
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There are 11 elements types of value proposition (Osterwalder & Pigneur,
2010):
1. Newness
Entirely new set of value proposition that never offered before. This value is not
supported by Pratique because service have been offered before.
2. Performance
Improving product or services that previously has been existed. Pratique supported
this performance by improving user interface and making payment easier by
integrating to the system.
3. Customization
Customizing product and services to deliver needs for specific needs or customer
segments. This value is offered by Pratique by creating product mix and match for
customizing and next day catering to fill the curious customer that has not
committed to subscribe for a week.
4. Getting the job done
Sometimes helping customer to get a certain job done is a value. There are a
couple jobs that authors accommodate by using Pratique product they don’t have
to search for healthy food vendor, Pratique cook it for you and will deliver with a
good service.
5. Design
Design is something that will help product to appeal than any other product. With
good design package, website and apps this will make customer more comfortable
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using Pratique service and lead to customer satisfaction and strengthen our brand
image.
6. Brand/status
Customer can find a value by using or displaying some brand. Pratique will work
together with food blogger and other influencer to make Pratique product is easy to
use and trending.
7. Price
For price sensitive customer this will be a value, with lower price they can get
satisfaction without have to pay more. This value is not offered by Pratique
because out target market is for upper-middle class who is willing to pay more for
healthy product.
8. Cost reduction
Helping customer reducing their expenses by using certain product or services.
This value is not offered by Pratique by using our product and service it will not
help customer reducing their expenses.
9. Risk reduction
Customer will benefit lowering their risk by using certain productor services. This
value is not offered by Pratique, by using the product and service it will not help
customer reducing their risk.
10. Accessibility
Making Pratique product and services more accessible for people to use. This
value is not offered by Pratique. Pratique only serve 5 km from the kitchen.
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11. Convenience/Usability
By using product and services customer which easy to use so customer have a
pleasant experience using it. This value is the strong point for Pratique because
Pratique offer mobile apps and website transactional to make it all in one place so
our customer no need to look elsewhere to find our info.
Value proposition canvas consist of two section, the first section is value
map which describes your product features in your business model in a structured
and detailed way. The value map composed of product and services, gain creator
and pain relievers. Second section is customer profile which describes a specific
customer segments in your business model in more structured and detailed way.
this section is composed of customer jobs, pains and gains.
Figure 2.18 Value Proposition Source: Authors Illustration
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1.4.4.1. Customer Jobs
In this section Authors will discuss about what things customer wants to get done in in their life. Mainly there are three types of customer jobs to be done and supporting jobs.
First one of customer jobs is functional jobs where customer tries to complete their task. Second type of the customer job is Social job. These jobs are where customer want to be perceived good or professional by others. Last one is personal/emotional jobs where customer needs a specific emotional state like peace of mind in investing in something.
Supporting jobs is where customer performs supporting jobs in utilizing the value. Three is three different roles in supporting jobs.
First one is buyer of value, this job related to buying value like comparing prices, features, completing a purchase or taking a delivery of a certain service. the second job are co-creator of value. This job is related to co creating value within the organization like take a participation in creating new design for a product. The third one is transferrer of value; this job is related to end of a value proposition life cycle like unsubscribe a service.
In Pratique case the customer job is
1. Want to eat healthy
2. Search for healthy food provider
3. Not wasting time in search for offline healthy food
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4. Purchase the food
1.4.4.2. Customer Pain
Customer pain is anything that disturb customer jobs to be done from before it starts until it finished the job. There are three types of customer pains the first one is undesired outcome, problems, and characteristics which these kinds of pain are functional like “the solution doesn’t work” or has a negative impact. Emotionally like
“i feel bad for doing this every time”, etc. the second pain is obstacle. Obstacle are things that prevents customer from even getting started or slows down the jobs that are they trying to finish. The third one is risks (undesired potential outcome) where in condition what could go wrong will become disastrous if it happens.
Based on authors observation and survey these are some pains that authors found.
1. Healthy food is hard to find in office area
2. Customer sensitive about the price
3. Late delivery
4. Too many works, not have a spare time to prepare food.
1.4.4.3. Customer Gain
Customer gain is what are the final result that your customer wants to achieve. some are required, expected or desired by customer. Here are some gains types. First one is required. This type of gain should’ve in the solution otherwise there is no gain to it. Second is expected gain, on expected gain the solution will work just fine but if they have it more it’s a plus value. Third gain is desired gain, this type of gain is
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usually what customer want Pratique to have in the value that they don’t have right now. Fourth gain is unexpected gain. This gain is more to visionary beyond expected and desired gain.
With all these gains what Pratique provide to the customer is
1. Delivered to you
2. All the process is simplified through mobile apps
3. Healthy food
4. No hassle preparing and cooking.
1.4.4.4. Products and Services
Products and services are basically what are the company offer to the customer.
There are various product and services types:
1. Tangible
Tangible item is a product that you can touch physically.
2. Intangible
Intangible item is a product that has no physical form e.g. downloadable music or
videos.
3. Digital
Digital product can be categorized as intangible but digital terms is usually online
services like activity or labor.
4. Financial
Product such as insurances, investment etc.
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Writer create a healthy food catering as a tangible product and combined it with digital services product that can accommodate the pain of the customers. The product that the writer offers is a healthy catering business with support of mobile apps to accommodate them trends and ease of use. This product is helpful for those who want to live healthy but there is no time to find or bring healthy food. Especially for office workers who work in busy areas. Pratique product is divided into 3 packages:
Weekly Package:
This package is a standard product that already has a series of healthy food preset. Customers can purchase the package and wait to enjoy the food.
Daily Package:
This package is intended for customer who curious about what healthy catering is and wants to try new things in their daily lunch. This package follows the regular package menu. If the customer places an order in Wednesday, then the food will be arrived next day following the menu on regular package on Thursday.
Mix n Match Package:
This package is where customer can create thier own personalized menu based on the variety’s food that Pratique provide and saved it to customer list. Later, if customer wants to order the menu or change the food, they can edit it or order it for the next batch.
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1.4.4.5. Pain Reliever
Pain reliever describe how product and services going to aid specific customer pain. Great value proposition will just be going to focus to aid the customer pain well.
These are some of pain reliever to aid Pratique customer pain
1. Delivered to You, to aid healthy food is hard to find office area.
2. Good Services, to aid for the customer that sensitive about healthy food being
rather expensive, being more expensive Pratique try to give the best services to the
customer, so they feel appreciated.
3. Custom Menu, for those who cannot cook Pratique provide mix and match
package. Customer can choose the food from the menu and Pratique make it for
you.
4. Mobile Apps, customer can browse the menu, order, customize and pay in one
place.
1.4.4.6. Gain Creators
Gain creator will describe how product and services create customer gain. Pratique will generate gain creators by using its services:
Pratique will delivered services that customer wants which eating healthy food
Mobile Apps support helps customer in practicality from searching till purchasing
the package. No need browses which is the closest restaurant that serve healthy
food.
Pratique do the chore for customer. Customer can do something that more
productive rather waiting and searching for place to eat.
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Fresh Ingredients, Pratique only used fresh ingredients for the food to make healthy food to the customer.