Product Positioning
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