Value proposition

Posted: October 17th, 2013








Value proposition

            Value proposition refers to the assurance that value will be delivered to a customer and a belief from a customer of value that will be experienced. The Spring Green vehicle suspension system is most suited for hybrid vehicles, regular cars for example saloons, wagons as well as vehicle owners with a need to make a shift into the new technology. Most vehicles currently use a combination of leaf and coil spring suspension systems which have the disadvantage of having very stiff reactions to bumps as well as being quite expensive (Rackham, Vincentis 1999 .45).

Spring Green offers a solution to this problem and others in their product package. The new innovation works on the concept of a new technology that is intended to give motorists a whole new driving experience. Having the first of its kind, the unique idea created by Spring Green’s engineers is bound to give it an edge over the other regular suspension. The vehicle suspension system being offered is quite unique. It is based on an environment-friendly technology that applies the basics physics of kinetic energy.  Spring Green has developed a suspension system that aims to solve the comfort vis-à-vis affordability impasse while conserving the environment. In summary, this car suspension technology utilizes the pressure and heat generated from the contact of the car and the imperfect ground it travels on. This new innovation is guaranteed to provide all types of vehicles with the most comfortable ride. Conserving the environment is the biggest advantage that Spring Green’s suspension concept offers to drivers. The vehicle industry is the biggest polluter of the environment and the eco-friendly technology provided by Spring Green will ensure that motorists reduce global warming.

Customer Identification

            The major customers identified as being the best consumers of Spring Green’s products are car manufacturers. These have a large financial base as well as market needs. Therefore, they will demand the new suspension system in bulk as their production is similarly in large volumes.

a)      Fuel efficiency

Globally, there is a shift towards more cost efficient vehicles that consume way less fuel than before. Therefore, companies like Toyota are in pursuit of technology that will enable them achieve the standards set out by EPA. This is where Spring Green’s innovative suspension system benefits customers in that coupled with other similar fuel-saving approaches; it can deliver a low cost service to car owners.

b)     Environmental conservation

The environment is being threatened with pollution that is majorly contributed by the vehicle industry. Manufactures are shying away from fuel guzzlers that pollute the air as well as adopting bio-degradable measures. Within Europe, the biggest car manufacturers are Daimler AG, Fiat and Porsche. These companies have an interest in economical and environmental-friendly innovations such as Spring Green’s. Therefore, they will serve as the biggest customers of this new innovation that will help users save the world from global warming and other forms of land, air and water pollution.



Target Market

            Target markets generally refer to a group of customers which are the primary focus of a particular product promoted by a business. The products aimed for a particular target market have to be relevant in that market. The four elements necessary in selecting a target market include product, place, promotion and price (Kurtz, 2010 34). Spring Green used demography as criteria for selecting the most appropriate market and ended up with the industrial sector as the best customers for their new product. The target audience within this market will light and heavy commercial vehicles. Spring Green will use niche marketing as the approach in this marketing they deal specifically in vehicle suspension systems within the automobile industry. In this way, the plan on reducing costs by customizing your product to the particular context as well as having cheaper advertising. Spring Green is also planning to embark on strategic research in order to determine the types of people most likely to buy their products. Like all other firms, Spring Green has a limited budget especially for advertising. Therefore, knowing who is most likely to be interested in eco-friendly suspension systems will be cost effective to them. Spring Green will also conduct evaluative research to determine how well consumers have embraced the new vehicle suspension. They shall evaluate the number of refitting that old cars have ordered and the number of car manufacturers that have made orders. Likewise, Spring Green will also analyze sales results.

Target Product Range

            Product ranges are sets of products which a company markets to potential customers. Spring Green has developed certain objectives which will guide the marketing of their suspension system. These objectives include the purpose of the suspension system and how to achieve the said purpose. The decision by the management to specifically differentiate the target market is because the product range was very particular in nature. Spring Green is specifically dealing in eco-friendly vehicle suspension systems. Extensive research into this segment showed that vehicles manufacturers and owners were looking for new products and technologies that would provide a more efficient transportation experience. The data collected built a consumer profile that displayed our customers as vehicle manufacturers who wanted eco-friendly techniques of producing vehicle parts. An expanding product range can increase the revenue and the profitability of a firm. This is not given as it may require additional resources and the profit contribution may not be able to justify its costs. Another advantage that would become Spring Green is that by expanding their product range; they would be giving more choice to their customers. The biggest disadvantage to Spring Green is that they have to keep a lot of stock and capital to develop different products which might be duplicated by other competitors.

Customer needs

            Spring Green has prioritized the customer highly as a company policy. They are out to ensure customers get the best products as well as services by employing the following techniques. Meeting the needs of vehicle manufacturers requires a constant research into the urgent problems that affect them in order to come up with a suitable product to solve this issue. The new innovation by Spring Green answers many problems of flimsy or fickle brands of suspension which litter the market but disappoint manufacturers in the long run. Customers at Spring Green are also exposed to a lot of information concerning the company, its structures and personnel. Information is also disseminated on the production process so that any potential buyer can be briefed on the details of our product. Spring Green also has plans of awarding the customer a fair amount of control in recommending the best way to improve our product (Bettencourt 2009 18, 46). Apart from having a consumer purchase strategy, Spring Green also plans to have a customer support system which will implement certain measures in order to attract, keep and serve customers. This support system will contain highly professional and receptive staff who can greet customers graciously and welcome them. Spring Green also intends to treat all customers fairly; avoiding discrimination of a particular group of customers will ensure that every buyer feels comfortable. Lastly, Spring Green is planning to give customers numerous options in order to help them achieve their needs. Customers sometimes have a tough time choosing a particular product over another and this is where Spring Green shall come in to assist.

Product Positioning

            Within marketing, product positioning refers to the process that is intended to present products in the best way so as to target different audiences. The main target here will be to attract commercial vehicle manufacturers for example Caterpillar, Volvo and Mercedes Benz. This will be achieved through thorough campaigns in all social networking sites that will serve to communicate our cause as well as advertise our product. Spring Green shall also develop a website where all the information about the company can be posted. In the website, special preference shall be given in attending to every customer through customized and flexible customer care. All these programmes shall be specifically designed for large scale manufacturers that operate on globally. (Ries & Trout, 2000 56-68)

a) Competitor analysis

            Spring Green has identified their main competitor in the vehicle suspension manufacture as KYB Europe. The competition currently sells over a million units of shock absorbers every week. KYB however sell normal suspension giving Spring Green an edge when it comes to environmental concerns. Monroe Shocks and Struts is also another competitor that deals in vehicle suspension systems.  Monroe also has around a million unit of stock sold in their worldwide branches. However, Monroe still uses the regular shocks as opposed to the newer technology being offered by Spring Green. Therefore, Spring Green can find a place in the vehicle suspension industry by capitalizing on their eco-friendly vehicle products.

b) Product differentiation

            Product differentiation involves distinguishing a product from others with the purpose of gaining competitive advantage. Spring Green has factored this aspect of uniqueness into its differentiation strategy. They intend to use their environment –friendly concept as the main differentiation standard that will boost the sales of their innovation. Spring Green has planned to differentiate the workings of its suspension system to be widely different from those of other companies such as Monroe or KYB. The advertisement of Spring Green products will also be designed in order to appeal specifically to the large scale manufacturers who are mostly ignored by many despite their purchasing power.  This will significantly create brand loyalty, which in turn will create price inelasticity on the part of buyers. (Porter, 1998 124)

c) Competitive strategy of Spring Green

Spring Green also plans within its differentiation strategy to spend considerably on production to come up with high quality goods. Although this is highly risky especially for a new entrant like Spring Green, their strategy will ensure that all customers are offered high quality products. Satisfied customers will recommend the product to other customers that will allow Spring Green to increase its profit margins. As the business grows, Spring Green intends to ride on the economies of scale to provide a cost leadership (Gale Research Inc, 1995 340).



BETTENCOURT, L. A. (2009). Debunking Myths About Customer Needs – Give your customers the proper role in the innovation process by forming correct beliefs about their needs. Marketing Management. 18, 46.

GALE RESEARCH INC. (1995). Business plans handbook: a compilation of actual business plans developed by small businesses throughout North America. Detroit, MI, Gale Research, Inc.

KURTZ, DAVE. (2010). Contemporary Marketing Mason, OH: South-Western Cengage Learning

NEIL RACKHAM, JOHN DE VINCENTIS. (1999)Rethinking the Sales Force; Redefining Selling to Create and Capture Customer Value, McGraw Hill,

PORTER, M. E. (1998). Competitive strategy: techniques for analyzing industries and competitors: with a new introduction. New York, Free Press.

RIES, A., & TROUT, J. (2000). Positioning the battle for your mind. New York, N.W., McGraw-Hill.

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