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“Getting the job done” Price
Value can be created simply by helping a customer OΩering similar value at a lower price is a common
get certain jobs done. Rolls-Royce understands this way to satisfy the needs of price-sensitive Cus-
very well: its airline customers rely entirely on Rolls- tomer Segments. But low-price Value Propositions
Royce to manufacture and service their jet engines. have important implications for the rest of a busi-
This arrangement allows customers to focus on ness model. No frills airlines, such as Southwest,
running their airlines. In return, the airlines pay easyJet, and Ryanair have designed entire business
Rolls-Royce a fee for every hour an engine runs. models specifi cally to enable low cost air travel.
Another example of a price-based Value Proposi-
Design tion can be seen in the Nano, a new car designed
Design is an important but diΩicult element to mea- and manufactured by the Indian conglomerate Tata.
sure. A product may stand out because of superior Its surprisingly low price makes the automobile
design. In the fashion and consumer electronics aΩordable to a whole new segment of the Indian
industries, design can be a particularly important population. Increasingly, free oΩers are starting to
part of the Value Proposition. permeate various industries. Free oΩers range from
free newspapers to free e-mail, free mobile phone
Brand/status services, and more (see p. 88 for more on FREE).
Customers may fi nd value in the simple act of using
and displaying a specifi c brand. Wearing a Rolex
watch signifi es wealth, for example. On the other end
of the spectrum, skateboarders may wear the latest
“underground” brands to show that they are “in.”

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