Supporting a step-out offer get back on track
A dominant SME in a relatively small niche of the UK transportation sector re-evaluated assumptions underpinning its recent new product launch to make timely adjustments.
An SME had grown to dominate the profit pool in a small niche. It’s strategy suggested future growth lay in marketing new products to new customers to grow the size of the market. Six-months following launch it was clear current performance would result in product withdrawal and wasted investment, if nothing changed. Management turned to Focus Solutions for assistance.
Our approach was to support the product launch team critique the underpinning assumptions on the market, customer requirements, pricing, product features and benefits, intended customer journey and resources required.
The solution was a simple recalibration of the target audience: a focus on a defined segment of existing customers with a specific need – not new customers; a product extension of the existing brand as opposed to the necessity to create of a wholly new brand and product line. Combining the sales renewal process for the new product extension with the existing core product, developing a new pricing model, defining the core marketing messages, reformulating the promotions campaign and product features and benefits to more precisely appeal to the target audience, were evidence-based recommendations.
Management averted a profit loss in the first 12 months and sales improved as the business focused on selling the right products, to the right people, in the right way.