Defining the new, "new thing." The challenge of market and category maturity
Challenge
Years of growth by acquisition had left many old product lines in place that offered questionable return to this large information technology corporation. Although profitable, our client found themselves in a large number of mature categories, but without significant market presence or brand recognition in any.
The division management team of one believed that a recent, major new product release could create an opportunity to reposition the entire division and brand. If successful, such efforts could drive overall growth and also create more aggressively focus investment into the brands/products that really mattered.
Solution
Broader offerings, better organization
Based upon our interviews with customers, channel partners and industry gurus, coupled with a market category analysis, it became clear that the right go-to-market strategy was becoming critical—not just for the new product launch but also for the future of the entire business. We analyzed the customer base and decided that a complete solution should include the new product, and a package of several other products from other divisions integrated together to create a whole product solution.
In parallel we worked with division management in order to assist them in thinking through their plan to reorganize the division around the new solution definitions.
Result
Taking the lead
The new positioning and the resulting product portfolio were accepted enthusiastically by the sales team - with increased revenue recognized in one quarter. Going forward, the division had met its full year sales target in the first 6 months. Soon other divisions within the client company began to aggressively seek ways to cross-license the technology into their own product offerings, creating further differentiation from competitors and creating a significant barrier to entry.
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