What does "Business Value Added" Mean?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 27 September 2019
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Business value added, or BVA, is a term that is 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 some change or addition that increases the benefits consumers receive by purchasing that product. By increasing the customer value of the product, the manufacturer stands to not only increase the level of customer loyalty. The business value added approach will often attract the attention of new customers who see the added value of the final product as just enough incentive to abandon similar products and try this new and improved offering.

There are several ways to engage in a business value added strategy. One approach calls for making some type of permanent change to a product that helps to broaden the appeal while also maintaining the current client base. An example of this approach would be an established laundry detergent that releases a revised formula capable of providing additional cleaning ability, plus a fresh new scent that consumers are likely to find pleasant. Advertising for the improved product not only alerts current customers that their favorite product is now better, but also motivates consumers who use other laundry detergents to give the enhanced product a try.


Another approach to business value added involves finding ways to increase the value consumers receive when purchasing a good or service. Here the focus is not so much on changing or enhancing the nature of a product, but making it possible for the consumer to receive additional volume of something he or she already prefers to buy. For example, a company selling a line of canned vegetables may choose to increase the size of the cans by ten percent, while maintaining the same price per unit. The end result is consumers receive more product for the same price, an added value that would be of especial interest to households on a tight budget.

Business value added can refer to shifts in the way products are marketed, packaged, or even how those products are produced. Companies may choose to refine their production process so that it is more environmentally friendly, a strategy that could attract consumers who seek to live green lifestyles. Even something as simple as choosing to make packaging from recycled materials may add value to the product for some consumers. Assuming a business can find some way to add value for customers without increasing its operational costs, the potential results include a larger market share, increased profits, and an enhanced reputation that is highly likely to continue attracting new customers for an appreciable period of time.


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