Product positioning, whether internal (Good – Better –Best) or external (competitor-based value modeling) is another significant area of focus often overlooked in Industrial Equipment Manufacturing. This oversight often leads to improper launch price setting for New Product Introduction during the Stage Gate process, as well as misalignment with the current portfolio.
Not unexpected, but ill planned patent expiration led to lost market advantage in the Elemental Analyzers product category. To combat the low-cost competitive alternatives, the business introduced alternative low-cost products as well and tapped into ConsilieX expertise for; New Product Pricing, Product Positioning,Value Mapping, and Portfolio Pricing Alignment to limit share erosion and maximize margin return.
Following thorough market analysis, created a rigorous Pricing Process Platform to mitigate the risk of lost barriers to entry while maintaining long term growth expectations. Designed a Discount Authority Matrix (discount rules of engagement) to provide a hard floor for downside risk, while also injecting enhanced visibility and communications to upper management. Streamlined the Product Lifecycle and re-aligned the portfolio to reset relative prices.
Further introduced a New Product Pricing Process into the existing Stage gate steps to ensure thresholds were met prior to progressing down the product development pathway.
