A leading industrial automation company had postponed a new product launch due to deteriorating global economic conditions. Internal budgets had been slashed, and customers were unlikely to approve spending for the proposed new product, so the launch was postponed.
As the Client’s sales started to stabilize, it began to revisit its prior growth initiatives, particularly the new product launch. However, the market landscape appeared to have changed causing the Client to become very uncomfortable with its market projections and even its value message. Therefore, before investing further in the product launch, the Client engaged RSR Marketing Solutions to help them validate and/or revise key elements of the new product launch plan.
Overview of RSR Engagement – New Product Introduction
- Re-assess the market and competitive landscape in light of recent global economic changes.
- Determine market size and growth potential by vertical a geographic market.
- Conduct interviews with key market participants and customers.
- Integrate customer input with sales model to assess market potential and addressable market to the client.
Key Study Findings
- A well-entrenched competitor in one segment will be difficult will be difficult to displace due to loyal customers.
- Small and mid-sized customers account for a larger and faster growing portion of the market than originally envisioned.
- The leading competitor has released product enhancements that many customers view as difficult to configure and maintain.
- The market opportunity may be larger than originally forecasted.
Implications and Results
- RSR identified opportunities in other segments where competition is less entrenched.
- The Client is re-aligning business development resources.
- The Client will highlight simplicity and ease of use over performance in its marketing collateral.
- RSR identified customers who are interested in a lower-cost, streamlined version of the original product.
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