Product Positioning

Case in point

A middle-market company with a broad range of products was unable to position its offerings as a total solution provider for the consumer market

Situation Assessed

The Company had a unique solution offering; however it was selling a combination of services and limited individual products. The Company required a "whole product" offering which would enable them to expand the lifetime value of their customer.

Challenges Encountered

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    Limited product offering

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    Selling individual component products

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    Services had a high Cost of Goods Sold

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    Gross margins suffered due to high labor content on services

Value Delivered

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    Significantly expanded product line with the acquisition of new products

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    Created a whole product offering with a strong value proposition

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    Changed the internal compensation model for support labor on services

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    Used technology to improve labor ratios

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    Branded the "whole product offering" for a total solution offering

Outcomes Achieved

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    Branding allowed for a whole product offering with twelve consecutive quarters of year-over-year revenue growth

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    Improved gross margins from 52% to 67% during the same periods

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    Repositioned the company from a professional service to a technology-enabled service business

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    Significantly improved the competitive position of the company