issue
New Product Introduction & Market Entry
Market Entry Strategy for a Data Communication/Internet Technology Product
Client Problem
- How do we leverage our client's core strengths and exploit technology changes to capture a key position in a rapidly developing $2-3 billion market segment?
- Market is so new that customers don't understand their choices yet
- Market is driven by complex service bundling/unbundling options
- Technology is evolving at an exponential rate
Project Objectives
- Design a service package that would attract customers - leading to a 30%+ market share
- Build a world-class service infrastructure
- Outstanding customer service
- High profitability
Approach
- Determined customer attitudes/preferences for this type of service
- Developed an in-depth understanding of the economic tradeoffs faced by customers
- Designed product to best meet needs
- Priced product to be attractive to customers and yield an attractive investment return to client
- Determined competitor approaches through trade show visits, customers discussions, synthesizing sales force intelligence
- Developed a service provisioning infrastructure and capability
- Identified and prequalified vendor partners to assist in service provisioning
- Delivered a long term strategy for preeminent market share, service and cost positioning
Results
- Optimized offer scope and pricing for each deal
- Developed an economic model of customer choices
- Created compelling product offering materials for customers and client sales force
- Participated in on-site customer selling
- Trained sales force in offer sales positioning strategy
- Established client as a key competitor with growing market share
- Continuing to work with client to further enhance service operations/execution
