A new way of using the value proposition canvas?
We've all been using Strategyzer's brilliant value proposition canvas for years now (thanks!) so I wondered if its information structure (service, pains, gains etc) could help build a useful illustration of brand alignment in a given market.
Testing the approach with a Car marketplace example
If I wanted to understand the market and one operator’s place it in (let’s say Carwow for this example) I would build out propositions for each operator.
So here are a couple of examples. For both of these value propositions we assume the customer is: Individuals in the UK looking to sell their car quickly. Who they are: Private car owners, often with vehicles that are difficult to sell privately or via trade-ins. They may value speed, simplicity, and convenience over securing the highest price.
Example value proposition: Carwow
Carwow addresses the frustrations of traditional car buying by simplifying the process, providing transparency, and ensuring a user-centric experience. It’s particularly appealing to tech-savvy buyers who value convenience and cost savings.
Example value proposition: Webuyanycar
WeBuyAnyCar appears to align well with its customer segment by addressing the specific pains (hassle, risk, and time) and delivering gains (speed, simplicity, security). The company has positioned itself as the go-to solution for quick, stress-free car sales in the UK.
What we learned (comparison of customer pains and gains by competitor)
| WeBuyAnyCar | Motorway | Cazoo | Carwow | Evans Halshaw | Arnold Clark | Wizzle | The Car Buying Group | Autotrader | |
|---|---|---|---|---|---|---|---|---|---|
| Uncertainty about car valuation | M | H | M | H | L | M | M | M | H |
| Time consumption | H | M | H | M | M | H | M | H | H |
| Inconvenience of travel | H | M | H | M | L | M | M | H | M |
| Hidden fees | M | H | H | H | L | M | H | H | H |
| Low sale price | L | H | M | H | M | L | M | M | M |
| Transparency in pricing | M | H | H | H | M | M | M | M | H |
| Convenience | H | M | H | M | M | M | M | H | M |
| Fast payment | H | M | H | M | H | H | M | H | M |
| Competitive offers | L | H | M | H | M | M | M | M | M |
| Simple process | H | H | H | H | M | M | M | H | M |
What it might mean (who is Carwow’s biggest competitor?)
Based on these unvalidated and guessed ratings, Motorway could be Carwow’s biggest competitor.
Strengths shared by Carwow and Motorway?
- Transparency in pricing: Both platforms allow dealers to bid on cars, creating competition and higher transparency for sellers.
- Competitive offers:
The auction-style model enables sellers to secure higher prices compared to fixed-price services like WeBuyAnyCar (maybe… is this true?). - Simple process:
Both have streamlined online systems that minimise hassle for sellers. - Focus on dealer networks:
Both connect sellers directly with dealers, bypassing the need for branches or private buyers.
Motorway’s edge over Carwow?
- Uncertainty about car valuation: Motorway’s valuation process is highly transparent, and sellers often get bids that reflect the market value, making it slightly stronger in this area.
- Hidden fees: Motorway consistently emphasises a fee-free experience for sellers, which can be a deciding factor.
Carwow’s differentiators?
Carwow is a broader platform that also supports buyers (especially for new cars), meaning it benefits from brand recognition among a dual audience.
Head-to-head comparison
- Motorway is better suited for sellers prioritizing price maximization.
- Carwow has an edge with its cross-functional platform for both buying and selling.
However, for pure car-selling services, Motorway is the closest and strongest competitor to Carwow.
But this is entirely make-believe and just the result of a half-hour look online. To manage this proposition will require ongoing research, planning, and creative.
What next?
So had some feedback, I guess I need to sort out a couple further posts:
LLM-enhanced business design tools
I’ve now built some LLM demos for creating most of the more frequently used tools - writing a business case, testing the big idea, defining a value proposition, crafting business model canvas, setting up lean testing etc. I should probably explain how those work and why you might want to use them. The main idea was that smaller businesses either might not know about these things, not can they afford fancy consultants to guide them, so the tools are a little ‘self-serve’ experiment.
Method deeper dive
There are lots of question around choices versus assumptions, how you map specific research to the proposition, why certain pains or gains make for more useful comparisons etc. I’ll have to unpick this and share when i get a minute…
In
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