Business Value Add (BVA) involves making changes to a product to increase its value to customers, attracting new customers and retaining existing ones. This can involve permanent changes, increasing volume or changing marketing and packaging, and can lead to higher profits and market share.
Corporate Value Added, or BVA, is a term used to identify any changes made to the quality of a given product before it is made widely available to consumers. Typically, this approach involves taking a product that already has an established reputation and loyal customer base and making a few changes or additions that increase the benefits consumers receive by purchasing that product. By increasing the customer value of the product, the manufacturer not only increases the level of customer loyalty. The commercial value-added approach will often attract the attention of new customers who see the added value of the final product as incentive enough to abandon similar products and try this new, improved offering.
There are several ways to engage in a business value-add strategy. One approach involves making some type of permanent change to a product that helps broaden the appeal while retaining the current customer base. An example of this approach would be an established laundry detergent releasing a revised formula that provides additional cleaning ability, as well as a new scent that consumers are likely to find pleasant. Advertising for the improved product not only warns current customers that their favorite product is now better, it also motivates consumers who use other laundry detergents to try the improved product.
Another approach to business value-add involves finding ways to increase the value consumers receive when they purchase a good or service. Here the focus is not so much on changing or improving the nature of a product, but on allowing the consumer to receive an additional volume of something they already prefer to buy. For example, a company that sells a line of canned vegetables may choose to increase can size by ten percent, while maintaining the same price per unit. The end result is that consumers receive more products for the same price, an added value that would be of particular interest to families on a budget.
Business value-add can refer to changes in the way products are marketed, packaged, or even how they are produced. Companies may choose to refine their manufacturing process to be more environmentally friendly, a strategy that could appeal to consumers looking to live green lifestyles. Even something as simple as choosing to package recycled materials can add value to the product for some consumers. Assuming a business can find a way to add value for customers without increasing its operating costs, the potential outcomes include higher market share, higher profits, and an improved reputation that is highly likely to continue to attract new customers for a appreciable period of time.
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