Marketing Case Studies: Solutions for New Product Development and New Market Entry Challenges

Synopsis: Heat Pumps – New Product Commercialization

We examined a new product launch for a heat pump/water heater manufacturer to see why its product didn't take off in the marketplace. Through our research, we discovered the manufacturer failed to place the product in the proper channels. It was an innovative high-end product being sold by the lower-end product's channels. Placing the product in the correct channel improved sales dramatically.

Synopsis: Educational Software – New Market Entry

A major test publishing firm purchased an online-testing company and turned to QDI consultants to learn how to brand the new product line. By talking to education professionals around the country, we helped determine a branding strategy that would launch the online-testing service successfully while incorporating the well-known publisher's name.

Synopsis: Biometrics – New Market Entry

While the benefits of Biometrics are well known, few businesses have adopted its applications. Our client, a handwriting signature verification software company asked us to find powerful partners in the market to help sell their software. We researched several vertical markets where their technology seemed to fit. QDI identified the healthcare sector as having the greatest need for high-level user authentication. We designed an effective marketing strategy targeting organizations selling software products to the healthcare market.

Synopsis: Pump Manufacturer – New Product Assessment - New Product Commercialization

At great expense, our client previously launched several products with disappointing results. To avoid another costly mistake, the client retained QDI to conduct research to measure their new product’s potential for success before the actual launch. We used in-depth, end-user discussion groups to determine if any market segments would place enough value on the new pump concept to warrant commercialization. We identified five major potential benefits the new design delivered. Through end-user discussion groups, we were able to assess the value each benefit had on the target market segments. We learned while the core segment did not value the concept enough to justify launch, a smaller segment did. However, the smaller segment was not large enough to merit further investment. Thanks to our research findings, the client saved valuable resources that would have been spent chasing a low-potential opportunity.

Synopsis: Power Transmission – New Market Entry

A major power transmission equipment manufacturer came to us
with a new product concept it developed by combining the most
innovative technologies across the company. The manufacturer was at a stage gate review and had to answer the question, “Does the market opportunity warrant further investment?” Working with a product concept and a set of potential benefits the project team identified, QDI consultants went into the market and spoke with plant maintenance engineers, corporate engineering and purchasing groups. Our objective was to evaluate the value of this product concept to different customer segments and to quantify the size of the opportunity for each segment.

Using QDI’s Value Management Model, our consultants determined the proposed offering ranged from 80% to 280% of the value of existing alternatives and that the overall potential for this new offering was in excess of $325 million. About one-third of this potential was available through the existing marketing organization. To compete for the remainder of the market, QDI identified acquisition strategies that would make our client’s offerings worth at least 20% more than any competitive alternative. QDI provided the data and insight the client’s project team needed to validate movement to the next step in their stage gate process.

Synopsis: - Chemical Additives Manufacturer – New Market Entry

We used innovative end-user research and original OEM
profitability models to establish the value of our client's chemical
additive to the OEM, thus enabling our client to price the additive based on value.

 

 

Synopsis: Basic Chemical Manufacturer – New Product Brainstorming - New Product Commercialization

We facilitated cross-functional sessions with R&D, prospective customers, industry experts, and sales and marketing personnel to brainstorm new product concepts. We used QDI's Portable Strategy Center to generate dynamic collaboration between the diverse participants. After a day and a half, we zeroed in on several promising ideas that management agreed should be evaluated in the initial phase of their stage-gate process.

 

Synopsis: - Floor Coatings Manufacturer - New Market Entry

Historically, our client sold directly to the end-user and performed
his own flooring system installation. The company wanted to
become a strong player in the new construction market, a market in which architects and general contractors make the purchase decisions. However, the company's existing value proposition did not address the needs of these new buyers and the sales organization was not familiar with the needs of this new segment. We conducted primary research with the key buying influencers, contractors and architects to help the client develop effective value propositions targeting the new customer segments; and we identified the actions required to successfully enter this new market. Our work included mapping out the structure, buying process and buying influences in the commercial market and identifying the benefits each group valued. Using the newly gained understanding, QDI developed training materials for the sales force designed to target and win these new buyers.

 

Synopsis: – Barcode Printer Manufacturer – New Market Entry -- Identifying Early Adopters

Our client was launching a new line of printers targeting industries that were not currently bar code printer users. Since their distributors did not have experience with these segments, we identified early adopters and learned their applications, vocabulary, and adoption issues. This enabled our client to give their distributors a complete primer on the new applications and sales leads pinpointing firms interested in seeing the new products. These tools jump started sales and shortened the new product ramp-up to less than a year.

 

Synopsis: MES Software Vendor – New Market Entry

As the Manufacturing Execution Systems (MES) market
developed, firms purchased solutions for a wide range of reasons. We found early adopters, learned what defined the emerging segments and identified leads. This enabled our client to focus valuable sales resources on solid opportunities and to assign sales resources based on experience with similar types of issues.

 

Synopsis: CRM Product & Services Provider – Market Opportunity Assessment – New Market Entry

We conducted a major marketing study among Fortune 500 vice presidents to determine the state of CRM marketing and the direction it would take in the coming year.

 

Synopsis: Electric Ranges and Ovens – New Product Strategies - New Market Entry

Our client had access to several new cooking technologies from convection and light ovens to induction cooking and smooth-top ranges. The challenge was to grow the electric cooking appliance market by stimulating manufacturers in the industry to adopt the new technologies. At the time of our research, the market for kitchen appliances was dominated by low price, limited-feature products. Our objective was to identify the consumer performance needs that could be met by the new technologies. Using lifestyle research, QDI led a consumer-based research process to identify consumer cooking problems. Based on the issues we identified, QDI explored innovative applications for the new cooking technologies and tested their appeal in focus groups and through conjoint research. We learned the key performance features consumers wanted and determined the prices they would be willing to pay for them. The outcome of the work was the adoption of many new cooking technologies currently sold at higher price points in today’s consumer appliance market.

Synopsis: International Pump Manufacturer -- OEM Market Entry Strategies for Markets in Europe – New Market Entry

Our client's need was simple: to learn how to grow business outside their home market. While the client had operations in each major market in Europe, their share was minimal and their marketing organization fragmented from country to country. We conducted research into the buying behavior of OEMs in each country to identify the best segments for our client, based on their product capabilities and the competitive landscape. Prior to our research, OEM targeting was performed randomly, and luck had more to do with success than strategy. Research identified the highest priority markets and the programs our client had to initiate to capitalize on these opportunities.

For solutions to your New Product/New Market Entry challenges, contact Steve Bassill or
Mike Barr at QDI Strategies, Inc.

Steve Bassill -- 847-566-2020 Ext. 229

Mike Barr -- 847-566-2020 Ext. 225