Understanding Unique Selling Proposition vs.
Value Proposition in
Philippine Business
Introduction
In the competitive world of business, companies often need to differentiate
themselves to attract customers. Two important concepts in marketing that
help businesses stand out are the Unique Selling Proposition (USP) and the
Value Proposition (VP). While they sound similar, they serve different
purposes and highlight different aspects of a business. This text will explore
these concepts with examples from Philippine business settings to provide
clear understanding.
Unique Selling Proposition (USP)
A Unique Selling Proposition is a factor that makes a product or service stand
out from its competitors. It is what a company does better than anyone else.
The USP focuses on the specific features, benefits, or characteristics that are
unique to a company's offerings.
Example of USP in the Philippines
One prominent example of a Unique Selling Proposition in the Philippines
is Jollibee, a popular fast-food chain. Jollibee's USP lies in its "Filipino twist"
on fast food. While international chains offer typical burgers and fries,
Jollibee serves items like Chickenjoy (crispy fried chicken), Jolly Spaghetti
(sweet-style spaghetti with hotdogs), and Palabok Fiesta (noodles in a savory
sauce). This unique menu caters to Filipino tastes and preferences, setting
Jollibee apart from its competitors like McDonald's and KFC.
Another example can be seen in Buko Juice, a beverage made from young
coconuts. Many local vendors offer fresh buko juice, but some brands, such
as Buko King, highlight the freshness and source of their coconuts, ensuring
customers that their juice is taken straight from the tree. This commitment to
quality and freshness serves as their USP in a market filled with various
vendors.
Value Proposition (VP)
A Value Proposition, on the other hand, explains the overall value a product
or service provides to customers. It is broader than the USP and focuses on
the benefits customers will receive, including quality, savings, convenience,
and satisfaction. The VP answers the question, "Why should a customer
choose this product over others?"
Example of VP in the Philippines
An excellent example of a Value Proposition can be seen in Globe Telecom,
one of the leading telecommunications companies in the Philippines. Globe's
VP emphasizes customer satisfaction through various service offerings,
including affordable data plans, reliable network coverage, and excellent
customer service. Their marketing campaigns often focus on how their
services can enhance customers' lives, allowing them to stay connected with
family and friends, which resonates with Filipino values of family and
community.
Another example is Lazada, an online shopping platform. Lazada’s Value
Proposition centers on convenience, a wide variety of products, and
competitive prices. They offer easy access to both local and international
brands, making shopping simpler for customers who may not have time to
visit physical stores. Their emphasis on fast delivery and discounts also adds
value for price-sensitive shoppers.
Comparing USP and VP
While the Unique Selling Proposition and the Value Proposition are both
essential for business success, they target different aspects of consumer
decision-making. The USP is about what makes a product distinctive, while
the VP is about the total value that product brings to the customer.
Key Differences
1. Focus:
USP: Highlights unique features and advantages.
VP: Emphasizes overall customer benefits and satisfaction.
2. Purpose:
USP: Aims to attract attention and differentiate from
competitors.
VP: Aims to persuade customers to choose a product based on
its value.
3. Examples:
USP: Jollibee's unique menu items.
VP: Globe Telecom's focus on customer satisfaction and
connectivity.
Conclusion
In summary, both the Unique Selling Proposition and the Value Proposition
play crucial roles in a company's marketing strategy. Understanding these
concepts can help businesses in the Philippines and beyond effectively
communicate their strengths and the value they offer to consumers. By
leveraging a strong USP and a compelling VP, companies can build brand
loyalty and increase their market share in a competitive landscape.
1. Jollibee (Fast Food Chain)
USP: "The Filipino fast food giant that serves homegrown flavors with a
twist, creating a comforting taste of Filipino culture in every meal."
Value Proposition: "Savor the taste of happiness with Jollibee's
delicious, affordable meals, from Chickenjoy and Jolly Spaghetti to
unique Filipino fast food favorites, all crafted to satisfy Filipino cravings
— whether at home or on the go."
2. Globe Telecom (Telecommunications)
USP: "A pioneer in 5G technology in the Philippines, providing fast,
seamless, and reliable mobile connections for individuals and
businesses."
Value Proposition: "Stay connected wherever you are with Globe's
industry-leading mobile services, from cutting-edge 5G internet to
exclusive perks for your entertainment and lifestyle, all designed to
empower the Filipino digital experience."
3
mobile connections for individuals and businesses."
Value Proposition: "Stay connected wherever you are with Globe's
industry-leading mobile services, from cutting-edge 5G internet to
exclusive perks for your entertainment and lifestyle, all designed to
empower the Filipino digital experience."
3. Ayala Land (Real Estate Developer)
USP: "Developing sustainable, integrated, and master-planned
communities that promote better living and contribute to the economic
growth of the Philippines."
Value Proposition: "Invest in Ayala Land's eco-friendly, world-class
developments that seamlessly blend residential, commercial, and
recreational spaces, offering a higher quality of life for families,
businesses, and communities."
4. BDO (Bank of the Philippines)
USP: "The largest and most trusted bank in the Philippines, offering an
extensive network and comprehensive banking solutions that cater to
all customer needs."
Value Proposition: "Get peace of mind with BDO's wide range of
banking services — from personal and business banking to investment
and loan solutions — supported by cutting-edge digital tools and
personalized service."
5. San Miguel Corporation (Conglomerate)
USP: "A century-old brand offering world-class products, from food and
beverages to infrastructure, with a commitment to quality and
innovation."
Value Proposition: "Experience the best in every product and service
with San Miguel's diverse offerings, from premium food and beverages
to infrastructure projects that enhance the lives of Filipinos and
contribute to national development."
Key Takeaways:
USP focuses on distinctive features that set a business apart, such
as technology, product offerings, or cultural relevance.
Value Proposition communicates the key benefits customers will
gain by engaging with the brand, emphasizing what makes their life
easier, more enjoyable, or more valuable.
For leading companies in the Philippines, local relevance, innovation, and
a customer-centric focus are often key themes in both their USPs and
value propositions, aligning with the unique needs and preferences of Filipino
consumers.
