CASE STUDY:
Optimizing an Entry Level Product Line Extension
Background: A large high tech firm needed to figure out the right positioning and messaging for a new, low end product line extension that was in development.
Challenges: The new product differed from the flagship offering in a variety of highly specific ways – too many to communicate in broad messaging. Substantial concerns remained about the risk of revenue cannibalization.
Objectives: Provide clear assessments of the individual impact of the various differentiating attributes and then identify the positioning strategy that maximizes growth and minimizes cannibalization.
Solution: Schireson developed an innovative approach:
- Developed survey instrument to simulate typical purchase process
- Used discrete choice Bayesian modeling combined with Crystal Ball optimization to analyze the results
- Presented recommendations to senior executives of marketing and development
Results: Clear recommendations on what to emphasize in positioning and messaging.
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