The corporate realm right now is filled with buzzwords of many kinds. These are a direct result of the impact certain activities have in concurrent society. With repeated usage of the most common buzzwords, many other terms and principles associated with corporations become more neglected. ‘Value Proposition’ is perhaps one of the more victims of such negligence. The phrase itself carries a large weight in terms of the marketing and branding of a company. It is one of the essential aspects for any company or brand to put emphasis on in order for their products to succeed in the market.
A value proposition is a company’s promise of value that describes how the benefit of its product or service will be provided, experienced, and acquired. A value proposition, in essence, describes what makes a company’s product or service appealing, why a client should buy it, and exactly how the value of a product or service differs from similar offers. In most cases, the value proposition is directed toward the company’s target consumers or market group. The proposition is a brief, clear, and succinct description of the concrete and intangible advantages that will be provided to clients. The ideal offer should rapidly convey the values to potential clients without the need for more elaboration.
The creation of a value proposition is an essential component of a company’s business strategy. Because the proposition allows a corporation to influence client decision-making, it is commonly placed on the company’s promotional materials, like a website. The proposition, by nature, is an effective technique for increasing sales and building a client base. A great and engaging value proposition may also improve the success of a company’s marketing activities. It is often recognised as the most successful and broad-reaching marketing activity.
The creation of a value proposition is no easy task as it reflects on a company’s core strategy and value. Those who can create the perfect proposition evidently have to possess leadership skills. Over the years, the development and definition of corporate leadership skills have changed. Contemporarily speaking, there are even some formulas that are more or less followed globally. Formulas like this, especially for value propositions, are basically simple questions like what, how and why, which are then answered in the propositions themselves.
Simon Sinek is an American author and leadership expert. He is also very well-reputed for his lectures on platforms like TED talks. He introduced a new, reinvented model of value proposition called the ‘Golden Circle’, which offers the most success in this regard. This model offers a new perspective on the already existing formulas. Based on his study into how the most successful companies think, behave, and communicate, the Golden Circle hypothesis describes how leaders may inspire collaboration, trust, and transformation in a corporation. I believe that marketers would find the most value in his Golden Circle concept, which focuses on how a company may differentiate itself from comparable rivals by articulating its distinctions.
Sinek is the author of numerous books about leadership. Among these is ‘Start With Why: How Great Leaders Inspire Everyone to Act,’ which popularised his now-famous Golden Circle concept. Sinek’s Golden Circle concept attempts to describe why certain individuals and businesses are particularly capable of inspiring others and effectively differentiating themselves. The Golden Circle idea is based on the neuroscience that humans respond best when communications communicate with the areas of their brain that govern emotions, behaviour, and decision-making.
The golden circle has quite a clear goal when employed in business planning. Its purpose is to build or develop worth for a product, concept, or business. A product is more than simply a thing; it is the manifestation of a conviction, a passion, or a dream. As a result, you cannot only credit an organisation’s performance to the way its operations are structured or the equipment it utilises. However, these properties are also required for its proper operation. The ability of a brand, on the other hand, to gather, motivate, and gratify a customer base while prioritising the organisation’s basic values over everything else is directly tied to financial success.
The Golden Circle can be used for motives such as developing marketing messages, aligning organisational values and development current and future products. The theory suggests starting a proposition by asking the question ‘Why’. Running a successful business is the result, not the objective. Few people or organisations can clearly describe why they do what they do. The major focus of your why is your purpose. Why is your company in existence? What inspired you to get out of bed today? So why should anyone care?
Simon Sinek answers the why here as “The compelling higher purpose that inspires us and acts as the source of all we do.” Apple’s success is credited to the fact that it started with “Why.” He says that as a result, Apple has successfully recruited clientele that shares his ideals. This was the cornerstone of Apple’s business model and the driving force behind its operations. The term “why” represents your motive, the reason you exist and behave in the first place.
According to Simon Sinek’s The Golden Circle, stating one’s “Why” appeals to the part of the listener’s brain that influences behaviour. Before determining what you will accomplish or attempt, start by fantasising about what inspires you. You may be enthusiastic about learning about fresh concepts on the cusp of innovation or about other people. What drives you to engage in your favourite activities? Your reaction will most likely be yours; why.
It only counts when you act with it. Before we can assess the results, we must first consider the methods, often known as the how. Your how ought to be an offshoot of your way, with a method for getting there. Individuals and companies are skilled at what they do. Whether you call it a “differentiating value proposition” or a “unique selling proposition,” they employ HOWs to illustrate what makes something different or superior.
The final component is the What. Every organisation in the world is skilled at what they do. This is true regardless of how large or small the company or industry is. Everyone is comfortable discussing the items or services their company provides, as well as their stance.
Practices of this theory, as pioneered by Simon Sinek, can be seen conducted by big-name companies. For example, Tesla and Elon Musk have demonstrated practising the Golden Circle Theory. It’s difficult to understand Elon Musk’s and Tesla’s recent accomplishments without examining their Why. Their Golden Circle
looks like this:
Why: Our objective is to hasten the global transition to sustainable energy.
How: We are constantly looking for innovative methods to make renewable energy more inexpensive, accessible, and cost-effective.
What we do: We manufacture electric vehicles.
Similarly, Patagonia, a premium clothing brand, can be pulled in as an example as well. Patagonia employees are dedicated to environmental preservation.
Why: We’re here to save our home planet.
How: Utility and simplicity are our primary priorities.
We prioritise utility, repairability, and durability to produce the best product.
What: High-quality outdoor products
As with all great concepts, the Golden Circle must be used if it is to be effective. Let’s go over the key factors for putting the theory into action. When we start with “Why,” we travel outward from the centre of the circle. The “Why” is the reason for purchase. The “Whats” are just the tangible items that demonstrate that conviction. The “Whats” are the justifications for favouring one organisation over another. Simon Sinek investigated how successful businesses think, act, and communicate. The Golden Circle demonstrates how leaders may inspire cooperation, trust, and transformation in a company by starting with why.
Some claim that Sinek’s Golden Circle concept is simply a reflection of passion. Passionate leaders and organisations honestly convey their devotion and excitement, which inspires others rather than how they express themselves. Others say that Sinek’s thesis implies that people do not utilise reason while making judgments, which is disputed. Nevertheless, the Golden Circle assists in considerably improving management, workplace culture, recruitment, product innovation, sales, and marketing. It defines fidelity and generates enough zeal to turn a notion into a social change.
Author- Shiddhartho Zaman
