What are the first key steps in developing a new product/portfolio strategy?
First of all, the change of perspective on the product portfolio is crucial: from the perspective of the customers.
Most of our clients can present the USP of their products in detail – i.e. answer the question of what the so-called Unique Selling Propositions are. This way of thinking is correct, but it is limited purely to the company's internal view of the products and thus primarily to the product features. What is often missing or only partially elaborated is the exact understanding of why the customer chooses our product and not that of the competitor. The so-called UBR, i.e. the Unique Buying Reason, enables precisely this change of perspective and focuses on essential product features for or against a purchase.
In price differentiation, we take into account relevant factors such as the competitive situation and desirability of the brand. In product development, "over-geneering" should be prevented. However, this is where the actual product portfolio process begins: with the introduction of a new product, the question arises as to which existing products should be substituted or phased out in order to avoid an increase in complexity.
