Product repositioning justifies price differential
Our client’s sales were suffering because its products were more expensive than those of its competitors, and potential customers were not perceiving the higher prices as justified.
The client wanted to reposition its products in a way that would make them easier for customers to understand and to buy and would justify its price levels compared with those of the competition.
What we did
To validate the client’s thinking, we tested it by acting as the “voice of the customer”.
To tackle the repositioning issue, we suggested different ways of describing the value proposition to simplify the messaging and make the product easier to understand and sell.
To improve targeting, we helped the client to refine its work on segmentation of its buying audiences and how to communicate messages to these audiences.
In terms of vertical targeting, the client used our input to identify the key markets it should focus on.
We helped to position the products as a single value proposition. The client’s product set had grown by acquisition, so product branding was inconsistent and had evolved in an unplanned way. We gave the client recommendations on how to position its products and those of its partners more clearly against those of its competitors, to make it easier to sell its value.
In the roll-out phase we provided internal training and support to key staff on how to have “critical conversations” about the positioning changes, how to communicate with different buying audiences, and how to deal with competitive questions.
The repositioning was a success and continues to be so, as it differentiates the client and the way it describes its value to customers. It defined a new way to describe the company’s products that its competitors (and businesses in other segments of the same industry) are attempting to emulate.
Most importantly, it allowed the client to better articulate its value in a crowded marketplace where its products were viewed as expensive.