Test Division was in the process of trimming its product portfolio and needed to make a decision whether to continue to invest in one of its products.
Although the product was performing relatively well, the leadership team was not satisfied it was sufficiently contributing to the Division expected performance and growth.
Vaxa was engaged to determine how the product was performing relative to its competitors, its performance relative to customer expectations, and the opportunities that existed for more aggressive market share and contribution.
Approach
Conducted a survey of 150 customers in North America, Europe, and Asia Pacific to determine product relative performance.
Assessed the Division's current and projected growth aspirations and the level of revenues and margins needed to meet the Parent expectations.
Perform competitve analyses against the leading competitors' products and assessed the relative strengths and weaknesses.
Outcome
Brand strength of the product relative to the competition with comparisons across the three (3) geographies.
Identified which competitors to targets and in which geographic regions.
Product performance in identified areas was a significant enough attribute to warrant development investments.
Although customers generally appreciated the reliability of the product, they also felt the products were over-engineered and they were paying a premium because of it.
Client Results
The customer feedback was positive enough to continue investment in this product. A portion of the R&D budget was allocated accordingly.
Implemented new distribution channels in three (3) European countries since higher value products were sold in that region.
Some competitors were shown to be particular weak in some regions and more sales management effort was directed to win those deals.
The management team was to revisit this product line in 12 months to ensure the performance was as promised.
