Improve Your Ability to Develop Successful New Products and Services

Develop new products and services to gain share with Core customer segments. 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 to copy because it must be unique in order to increase your market share. Finally, this activity sets priorities for your potential innovations.

The activity that defines the potential for new products and services covers Steps 13 through 16 of the Basic Strategy Guide.

Step 13
: 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.

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