New service product development for a consumer products company
Our client, the business-to-business unit of a leading consumer products company, wanted to begin offering professional services aimed to create healthier, safer, and more productive environments through proper education, design, products, and monitoring of the workplace. Traditionally the client had leveraged a strong consumer brand for market share and price premium in selling products (primarily through distributors) but had little service experience or expertise.
Our goal was to segment potential customers based on their demand for such services and their potential attractiveness to our client. This segmentation also creates an identification of and prioritization for service and product development. Additionally, we were tasked with quantifying the potential opportunity by segment and create a plan for targeting new customers.
Our approach included the following activities:
- Build an understanding of the potential market through primary customer research
- Segment the market and determine appropriate segment value propositions and associated product and service bundles
- Use quantitative analysis to identify, size, and prioritize potential market segments
- Create a preliminary strategy to bring the new services to market based on knowledge of teh segments and of our client's capabilities
We identified a potential $2.5 billion sales opportunity with $600 million profit. In addition, we created a prioritization of market segments based on actionable characteristics (e.g., level of workplace control, interactions with clients on-site, etc.) and provided a framework that drove executive consensus. Our final activity included a roll-out strategy that emphasized the importance of building business cases to prove the value of the service program to potential clients, as well as making appropriate internal changes to ensure that our client could meet its customers' needs more effectively.