Overview
If you’re a brand leader trying to connect with a clear customer segment or a marketing decision-maker wrestling with how to express what truly sets your product apart, this article is for you. In today’s overcrowded CPG marketplace, vague messaging will never work. Your target audience needs more than a clever slogan. They need insight. They need clarity. They need a brand value proposition that speaks directly to their needs, goals, and mindset, backed by the fact that your brand delivers on its promise.
But let’s be honest: creating the perfect brand value proposition isn’t just about words. It’s about sense and order. It’s about knowing your customer profile, identifying the specific feature that defines your differentiation, and translating that into a statement that performs. One that describes the thing your brand alone can offer and why it matters.
In this article, we break down the definition of a brand value proposition and examine high-performing examples that drive market growth. You’ll leave with a clear understanding of brand proposition meaning and the ability to write a brand value statement that creates immediate gain for your brand and your audience. Let’s get into it.
What is a value proposition?
A brand value proposition is the foundation of how a company positions itself in the minds of its target customers. It’s a clear and compelling brand value statement that effectively communicates the primary benefit of choosing your brand over competitors. At its core, the meaning is simple: it defines the unique value your brand delivers. It also answers the essential question every customer is silently asking, “Why you?” That’s the heart of the value prop in branding.
A brand value proposition requires understanding how it connects both rational and emotional benefits. A strong brand and value proposition strategy articulates not just what you do, but why it matters, anchored in a deep understanding of your audience.
Why does the value proposition matter?
A brand value proposition isn’t just a marketing phrase; it’s a strategic tool that defines what your company offers, who it’s for, and why it matters. It clarifies the key benefit your brand delivers and communicates your differentiation in a crowded market.
When considering your slogan as a part of your marketing strategy, it should be specific to your company and appeal to a particular subset of customers. It’s a great way to market your product or service and can help you focus on what makes you unique.
As a core element of your marketing strategy, your brand value statement should be precise, relevant, and tailored to a specific customer segment. It’s not about being everything to everyone; it’s about being the right solution for the right people.
When you identify the most compelling value proposition, you equip your brand to connect with your audience, drive preference, and build long-term loyalty. It’s how messaging becomes meaning, and meaning becomes performance.
Value proposition vs. mission statement.
Not everyone cares about your mission statement and core values. They want to know what’s in it for them. What they find important will undoubtedly be reflected in how the product improves their lives, but it may also mean what they care about, such as sustainable packaging.
The link between a brand promise & value proposition.
The objective of any company is to create a product that provides the ideal customer with equal (or greater) value with each purchase or interaction with the company. With enough consistency, we can turn this value expectation into a brand promise. Eventually, the brand promise may become interwoven within the value proposition. But tread carefully here.
Kmart once held a value proposition of “ provide families with everyday products at the lowest prices,” which worked for a while, but in time, Walmart, which made consumers question this statement, and rightfully so. Once a competitor has replaced you as the owner of a unique selling proposition, creating a new identity becomes a significant challenge.
Why a unique value proposition is critical.
There isn’t anything unique about providing families with everyday products at low prices, and as you’ve learned, you’re an easy target without uniqueness. Great value propositions solve problems and stick in your head, becoming synonymous with the brand itself. Check out these examples; we bet you’ll know what brand they’re from at a glance:
- “The Quicker Picker Upper.”
- “Think Different.”
- “Live Mas.”
- “Tastes So Good, Cats Ask for It By Name.”
Any competitor looking to capture market share from these brands will not do so by having a comparable value prop. A well-designed value proposition can stick in our minds and create brand equity for the company in question. (The above brands are Bounty, Apple, Taco Bell, and Meow Mix.)
But what makes a good value proposition? Let’s look at some examples in more detail.
The basics of a good value proposition.
The value proposition canvas is just a customer archetype you can reference when creating your value prop.
Every value proposition should address some need that your target market experiences. Hopefully, you are familiar with these needs based on your past brand strategy and marketing research. Your goal is to identify and reflect one or two of these needs in a branded slogan.
Remember that we base these value propositions on how your target market defines your value, rather than how you represent it. For example, consider Taco Bell’s above mantra, “Live Mas.” (Spanish for “Live More”). Taco Bell might distinguish itself from competitors like Del Taco or Chipotle through its low prices, efficient supply chain, or authentic Mexican recipes. However, they do not effectively convey these values in their value proposition.
Instead, the company speaks to its audience with the Live Mas mantra, offering a loftier value that promises a more upscale experience. And while many people certainly shop at Taco Bell for its low prices, this aspirational ideal helps differentiate it from similar, low-budget quick-service restaurants.
The best value props don’t merely meet a customer’s expectations; they exceed them. A level of fantasy is involved even in a simple case, such as “save money. Live better.” Saving money meets expectations, but living better exceeds them.
Can you have more than one value proposition?
The answer to this question depends on the size of your organization, the product categories you serve, and the verticals in which you operate. Large established brands may need to create several value propositions for each aspect of their company.
Most brands could benefit from a value proposition purge and narrow their focus to a single, compelling value proposition.
Start-ups and smaller brands looking to succeed in a niche are better served by having a follow-up summary, explanation, or subheading that provides context to their core value proposition.
The longer (yet still brief) explanation should answer the questions in a consumer’s mind about your value proposition. Alternatively, it should prompt consumers to consider aspects they had not previously considered.
Fundamental steps to creating an effective value proposition
As with any aspect of a product marketing strategy, a strategic approach yields better results than an impromptu decision. Unfortunately, many brands create unique value propositions in a highly caffeinated meeting where creativity flows. Caffeination and creativity are fine, but a framework within your strategy helps identify the customer value proposition, meaning, what the consumer expects, not what the brand wants.
Be clear and direct.
At its core, a good value proposition identifies the attributes most likely to resonate with customers and explains them in a clear, memorable way. It can take many forms, depending on your company and your customers. For example, many value propositions are clear and concrete:
- “Save Money. Live Better.” – Wal-Mart
It doesn’t get much clearer than that. Renowned for its rock-bottom prices, Wal-Mart wants all potential customers to understand how they have a low price guarantee. When you shop at Walmart, you’ll save money and enjoy a higher quality of life. Other examples of this type of direct value proposition include:
- “Shave Time. Shave Money.” – Dollar Shave Club
- “Soup That Eats Like a Meal.” – Campbell’s
- “Share Moments, Share Life.” – Kodak
Drawing on copywriting best practices is a brilliant idea for crafting a value proposition. Focus on brevity and using simple words that your audience will understand.
Be aspirational.
Value propositions don’t need to be direct. They can also be high-minded and aspirational:
- “Just Do It.” – Nike
As a seller of athletic goods, Nike understands that motivation is the most significant barrier to achieving our fitness goals (and, commensurately, purchasing their gear helps us overcome it). Its tagline is a call to action and a value proposition: Get out there and do it!
This style doesn’t mention a direct feature or function of the product. Instead, it takes a more imaginative approach and invites users to envision how others might say great things about them based on their brand choice. Some examples of aspirational value propositions include:
- “Maybe She’s Born With It. Maybe It’s Maybelline.” – Maybelline
- “Open Happiness.” – Coca-Cola
- “I’m Lovin’ It.” – McDonald’s
Feature descriptions.
Some companies opt for value propositions that describe key features of their product or service:
- “Watch Anywhere. Cancel Anytime.” – Netflix
This value prop helps customers know what to expect when they sign up with Netflix. You can watch shows on any device with no long-term subscriptions or contracts. These are essential benefits that help differentiate Netflix from other streaming service providers in the video-on-demand space, such as Hulu (which has a relatively similar brand slogan – “ Anywhere, Anytime .”)
Here are a few more examples of brands with feature-oriented value propositions:
- “Melts in Your Mouth, Not in Your Hands.” – M&M’s
- “Can You Hear Me Now? Good.” – Verizon
- “Snap! Crackle! Pop!” – Kellogg’s
Test your value proposition
To determine if you have a great value proposition, perform consumer testing to assess its impact on purchase intent, brand essence, brand equity, and brand recall. Value propositions are critical, so testing against these brand elements is essential.
Your value proposition can evolve.
Value propositions executed well become valuable elements in your branding strategy. However, like any aspect of your brand, your value proposition can evolve to address the changing needs and dynamics of your customers. Many of the above companies underwent many variations for their fundamental value propositions before settling on a winner.
For most brands, this is the most effective approach. Take stock of who your market is and what message you’re trying to send. It can be direct, aspirational, feature-oriented, or any combination of these. All that matters is that it resonates with your target market and clearly defines your offer.
The trick is to take proactive measures rather than reactive ones. As with Kmart, it’s often too late when you try to find a new value proposition to fit your previously successful business strategy reactively.
With the above tips, you should have no trouble developing a value proposition that suits your brand. However, if you need guidance from an experienced branding professional to set you on the right track, contact SmashBrand, and our experts will be happy to assist you.
How do you write a brand value proposition?
To create a solid and compelling value proposition, you’ll need to consider your target audience and your current brand positioning. For example, if you’re promoting an essay writing service, your value proposition should address the specific needs of students, such as reliable support and high-quality work.
Your value proposition should address the needs of your target market and clearly explain what sets your product or service apart from the competition. It’s also essential to ensure your value proposition is clear and memorable so we can easily communicate it to potential customers.
Your value proposition should come from a proper writer discussing every detail. However, to begin, your team can use an AI writer to develop immediate concepts and create discussion points for your branding agency.
Read More: A How-To Guide For Brand Repositioning.
3 Examples of strong value propositions
A strong value proposition makes companies attractive to customers and investors, making them a target for industry giants seeking an acquisition. So, for this case study, let’s look at the behemoth Amazon and the companies it proudly acquired.
Amazon’s value proposition
As large as Amazon’s catalog of products and services is, we can summarize its business model into three key components: offering low prices, providing fast delivery, and offering a wide selection of products. How does Amazon state this as a value prop? The Everything Store.
Is this the most transparent and most easily understood value proposition example? Perhaps not, but it makes it impossible for competitors to one-up their catalog size. The only way to differentiate would be to become “everything but the bad stuff” or “everything with expertise.”
Zappos’s value proposition
It’s no wonder Amazon acquired Zappos, as their focus is something the Everything Store was missing, which is essential for future success. We know Zappos for its excellent customer service, free shipping, free returns, and 24/7 support.
“Delivering Wow” seems like a fitting value prop for their service.
Whole foods value proposition
There’s a reason people poke fun at the customer-initiated value prop of “whole paycheck” yet still spend more on groceries than most shoppers. It’s because the environment at Whole Foods matches their value proposition statement: “Whole Foods, Whole People, Whole Planet.”
Essentially, they state how they care about you, your loved ones, and the world more than any other grocery store. This statement has a magnetic appeal to both selfish and selfless people, yet it does not pit one against the other.
Path to Performance™
Taking a results-obsessed approach to CPG package design.
Discover how SmashBrand’s proprietary process, rooted in scientific principles, informed by data, and validated by your target audience, eliminates the guesswork from package design and delivers guaranteed results.
Value propositions in package design
Do you want to determine whether your packaging aligns with your brand’s value proposition, or do you need help clearly defining what your proposition is? We can help.
At SmashBrand, we perform packaging design and branding services. Through our proprietary consumer testing process, we identify the most impactful copy and visual images to leave a lasting impression on any prospective customer. Book a time to discuss your project with our team.
Nice Package
Don’t miss out on our monthly newsletter Nice Package!
Each month, we deliver a data-driven newsletter directly to your inbox, unpacking a critical topic in the FMCG & CPG industry.
"*" indicates required fields
Michael is a partner and the Director of Testing and Insights at SmashBrand, where he spearheads SmashBrand's Path to Performance™ process, a proven, data-driven framework designed to put high-performing consumer packaged goods on the retail shelf. In this role, he believes that packaging acts as a product's "front door", and is almost entirely responsible for shaping how consumers perceive and engage with the brand, ultimately determining whether they will buy the product or a competitor. Thus, he defines the testing methodologies SmashBrand uses to optimize packaging designs to align with the brand's strategic vision, ensuring aesthetic appeal and market viability.
With an educational background and an early career in computer engineering, he transitioned into the entrepreneurial space, launching and owning CPG brands and quickly discovering a knack for innovative market strategies. At SmashBrand, Michael leverages this expertise to lead the research team, focusing on a holistic, data-driven approach to market research, product design, and consumer testing. His philosophy centers on the importance of understanding consumer perceptions, a viewpoint he considers vital for the success of any consumer product.
At the core of Michael's approach is an iterative cycle of specific consumer testing and integrating the insights gained directly into the creative process, leading to optimized and high-performing packaging. This commitment to a data-driven strategy ensures that the packaging designs and branding strategies SmashBrand develops are not just based on aesthetic or conceptual appeal but are proven to resonate with consumers. Over the past decade, he has integrated an agile methodology and a proven platform for consumer testing into SmashBrand's entire operational framework, solidifying the agency's reputation for guaranteeing market performance.
With a unique blend of technical skills, entrepreneurial spirit, and consumer insight, Michael Keplinger offers a multidimensional approach to brand development. His ability to connect seemingly unrelated elements for innovation and his commitment to consumer-centric optimization makes him an invaluable asset to SmashBrand and its clientele. Under his leadership, brands don't just imagine the potential success of their consumer products—they experience it.
To book Michael for speaking engagements and podcast appearances, please email hello@SmashBrand.com
Subscribe to
Nice Package.
A monthly newsletter that unpacks a critical topic in the FMCG & CPG industry.
Free Resource.
CPG product repositioning guide.
Explore the five undeniable signs your CPG product needs repositioning along with strategies for leveraging consumer insights for a guaranteed market lift.
Learn More About CPG product repositioning guide.