Final Customer Purchasing from the Product Producer

Use Steps: Use steps include all the customer's value added activities or the consumption of the product itself. These steps include all the costs the customer incurs in employing the product in its intended use.

Resources: Reduce resources required for the use of the product

Money: Reduce the money the customer uses with the product. For more ideas on using pricing, please see the Improve/Pricing section of StrategyStreet.

A. Reduce the level of payment for use of the product

Reduce performance benefits
Reduce function benefits

Reduce taste

No. SIC Year Note
1 2084 2001 By producing a sweeter, less harsh wine, the Sutter Home Winery was able to increase its sales and keep its prices low, despite critics who labeled the wine as unsophisticated.
2 2084 2003 France's Bordeaux and Burgundy regions remain world champions in the high-end segment of wine, where prices start at $12 a bottle. But these account for only about 5% by volume of all wines sold. A group of producers known as the "New World"-Australia, California, Chile, South Africa, Argentina and New Zealand-is eating France's lunch in the much larger low and middle segments, which accounted for around 90% of the $100 billion global wine market. France's share of the global export market fell to 23% last year from 32% a decade ago, while the New World producers' share rose to 20% from 6%.

<< Return to Use Steps