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Mature markets, where the customer base begins to stagnate, call for structured Organic Growth founded on a superior Customer Value Proposition (CVP). CVP encompasses all that is gained by customers for the money they pay—material as well as intangible. Customer Value can be articulated by the equation:
Customer Value = (Product Performance + Service Delivered + Image) / Price Paid
CVP endeavors can be lacking due to many reasons such as use of incorrect Research Method, misapplication of a correct statistical method, incorrect interpretation of research outcomes in the background of current brand position, market situations, or capabilities system of the company.
Crafting an effective CVP requires insight and experience, but the probabilities of realization escalate by applying a structured process. Organizations that defy odds and repeatedly thrive with many new-product unveilings lean towards applying a disciplined approach to developing their CVP. The approach that these organizations follow comprises of 3 distinct practices, blending creative inventiveness and analysis. The 3 Pillars of Product Launch Strategy are:
- Market-backed Analysis
- Darwinian Competitive Review
- Capabilities-Forward Assessment
Each of the 3 practices has the two-fold effect of being an idea generator as well as an idea sifter.
The practices produce fresh thoughts regarding trends for growth and also assist in determining the products and services to launch and the way to position them.
Let us go a little further into details of each pillar.
Market Research merely queries consumers regarding their attitudes, inclinations, and aversions. Real focus of such research should be on comprehending behavior; such as the trade-offs consumers make when deliberating a purchase. Market-Backed Analysis is a method of collecting consumer insights that isolates the value imputed by consumers to various components of a product or service, and generates practical information as a consequence.
Darwinian Competitive Review (DCR)
Executives are always on the lookout for new product and service innovations that can distinguish their companies. New ideas are always more exciting than an innovation that the industry has already introduced. Darwinian Competitive Review suggests that even a new idea must follow some demonstrated Value Proposition—i.e., proven success somewhere else. DCR calls for scrutiny of those Customer Value Propositions that have exhibited success across several markets, and of competitors who have already instituted themselves in those markets.
Capabilities-Forward Assessment is a thorough evaluation of what the company already does skillfully, and which novel Value Propositions its Capabilities System will be able to sustain. Possessing the correct Distinctive Capabilities that are aligned can be the difference between being common place and being great. An example of the above would be the difference between offering a product at low cost and at the lowest cost.
Interested in learning more about the 3 Pillars of Product Launch Strategy? You can download an editable PowerPoint on 3 Pillars of Product Launch Strategy here on the Flevy documents marketplace.
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- ABC Analysis
- Adoption Cycle
- Ansoff Market Strategies
- Balanced Scorecard
- BCG Growth-Share Matrix
- Blue Ocean Strategy
- Break-even Analysis
- Business Unit Profitability
- Economics of Scale
- Environmental Analysis
- Experience Curve
- Cluster Analysis
- Company & Competitor Analysis
- Core Competence Analysis
- Cost Structure Analysis
- Customer Experience
- Customer Satisfaction Analysis
- Customer Value Proposition
- Fiaccabrino Selection Process
- Financial Ratios Analysis
- Gap Analysis
- Industry Attractiveness & Business Strength Assessment
- Key Purchase Criteria
- Key Success Factors (KSF)
- Market Sizing & Share
- McKinsey 7-S
- Net Present Value
- PEST Analysis
- Porter Competition Strategies
- Porter’s Five Forces
- Portfolio Strategies
- Price Elasticity
- Product Life Cycle
- Product Substitution
- Relative Cost Positioning
- Rogers’ Five Factors
- Scenario Techniques
- Scoring Models
- Segment Attractiveness
- Segmentation & Targeting
- Six Thinking Hats
- Stakeholder Analysis
- Strengths & Weaknesses Analysis
- Structure-Conduct-Performance (SCP)
- SWOT Analysis
- SWOT Strategies
- Treacy / Wiersema Market Positioning
- Value Chain Analysis
- Venkat Matrix
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