Activity 2: Develop New Products and Services
Activity Two: Develop New Products and Services (Steps 13-18):
Develop new products and services to gain share with Core customer segments.
Your market share with your Core customers will not grow unless you do something for them that you are not doing now. But, what do you add to your current package of products and services and in what order? This activity answers these questions. First, it corrects problems that cause your current customers to reduce their purchases from you. These are the easiest changes you can make. It proceeds to develop potential innovations that might reduce the costs that customers incur with your product over the life of the product. It checks whether each innovation is difficult or easy to copy because your Company’s package of product and services must be unique in order to increase your market share. Finally, this activity sets priorities for your potential innovations because you can always do more than your money and time will allow you to do.
|Determine the reasons for the Company’s Negative Volatility with Core customers.|
|Step 14:||Determine the reasons for the Company’s “hidden” Negative Volatility.|
|Step 15:||Evaluate the Company’s success in penetrating each Price Point in the market.|
|Step 16:||Estimate the customer’s Life Cycle Cost with the product.|
|Step 17:||Develop a program for new products and services and confirm their value for customers.|
|Step 18:||Modify the Company’s product and service innovation program to reflect the value to the company and the practicality of each innovation.|
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