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Verhaert Innovation Day 2011 – Dany Robberecht (VERHAERT) - Product differentiation strategies
 

Verhaert Innovation Day 2011 – Dany Robberecht (VERHAERT) - Product differentiation strategies

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Speaker of Verhaert at the 8th edition of our Innovation Day on October 21st 2011.

Speaker of Verhaert at the 8th edition of our Innovation Day on October 21st 2011.

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    Verhaert Innovation Day 2011 – Dany Robberecht (VERHAERT) - Product differentiation strategies Verhaert Innovation Day 2011 – Dany Robberecht (VERHAERT) - Product differentiation strategies Presentation Transcript

    • CONFIDENTIAL Product differentiation strategies – the holy grail in product innovation Dany Robberecht Verhaert – Director Consulting office dany.robberecht@verhaert.comINNOVATIONDAY 2011
    • commoditization become unique expectations conclusionINNOVATIONDAY 2011
    • Differentiating a product or service means creating a product or service which is perceived industry wide as being unique. It results in brand loyalty and lower sensitivity to price. Im willing to pay extra for my …INNOVATIONDAY 2011
    • A successful differentiation is focusing on delivering (perceived) value add to users and on competitive advantage. In other words the story telling component is as essential as the distinctive benefit of your innovation. Eventually it should lead to a strong experience.INNOVATIONDAY 2011
    • + + In the product economy we try to over class each performance + brand B + brand A other with ‘better’ features. © C. Christensen timeINNOVATIONDAY 2011
    • customer absorption level + + The rules of the game change performance + brand B when willingness to pay ends because + brand A products become good enough. © C. Christensen timeINNOVATIONDAY 2011
    • ? customer absorption level + + How to be perceived valuable? performance + brand B You seek recognition, strong story + brand A telling or distinctive benefits to satisfy needs. The experience economy becomes the rule. © C. Christensen timeINNOVATIONDAY 2011
    • An example … In our product economy we often tell bizarre stories. Stories that not engage our users, neither they improve our competitive position. Despite the efforts of a whole company they don’t deliver anything.INNOVATIONDAY 2011
    • If you manage it poorly, then this is your destiny.INNOVATIONDAY 2011
    • But, we all love commodities. They offer economies of scale, thus accomplish efficiency in manufacturing as they target high volume markets. If we only could maintain our margins, YES!INNOVATIONDAY 2011
    • the other side of the coinINNOVATIONDAY 2011
    • CONFIDENTIAL There are two strategy choices: do what everyone else is doing, only better, cheaper or faster. Or do something different and truly distinctive.INNOVATIONDAY 2011
    • It starts with being different therefore you must think differentlyINNOVATIONDAY 2011
    • Let’s unveil the puzzle pieces and construct our puzzle.INNOVATIONDAY 2011
    • Canon’s professional L series – though used extensively by non-pros - is recognized easy because of its distinctive color. It doesn’t add functions, but connects users to the brand.INNOVATIONDAY 2011
    • Brompton folding bikes do not excel in weight, neither in usability, but everybody knows it’s a Brompton because of the iconic design.INNOVATIONDAY 2011
    • ALU modem Materials, color, finishing, styling, modus operandi provide foothold for iconic products. Recognition and visibility combined with strong story telling are the foundation of iconic products. Users are willing to pay a premium price as they create value.INNOVATIONDAY 2011
    • recognition in-store walking modelsINNOVATIONDAY 2011
    • Often technology benefits are difficult to explain to users. Dyson’s bladeless fan promises a smooth airflow with no unpleasant buffeting because it has no blades. Users will buy it for another reason I suppose.INNOVATIONDAY 2011
    • user research often leads to better insights of unmet needs. It provides foothold for distinctive features. Companies can build a succesful product strategy based upon these distinctive benefits, especially when they are visible and recognized easy.INNOVATIONDAY 2011
    • INNOVATIONDAY 2011
    • reduce eliminate create attributesjuggling raise © VerhaertINNOVATIONDAY 2011
    • What are great functionalities? Those that create experiences … Products having these abilities typically show a low churn rate. Especially in mature markets it is essential to keep your customer base, as the market faces a low or even zero-growth.INNOVATIONDAY 2011
    • In 1991 the concept was launched as a pilot project. Today it foresees athletes with custom made shoes. The concept includes scanners at the POS, a sales website and marketing collateral. At the back end the manufacturing concept was rigorously changed as well as the product architecture and logistics. experience driven servicesINNOVATIONDAY 2011
    • If creating superior products is not ambitious enough for your company then you seek the blue ocean by creating a new market. You want to discover how to tap into refusing non-consumers by addressing latent needs. However it is difficult to reinvent the meaning of a product or service, this strategy is very rewarding.INNOVATIONDAY 2011
    • On-the-go health 1994INNOVATIONDAY 2011
    • Back in a minute 1961INNOVATIONDAY 2011
    • Stream and share 2008INNOVATIONDAY 2011
    • ? customer absorbtion level + + How to be perceived valuable? performance + brand B You seek recognition, strong story + brand A telling or distinctive benefits to satisfy needs. The experience economy becomes the rule. © C. Christensen timeINNOVATIONDAY 2011
    • experiences services Choose make goods your strategy create commodities market pricing premium pricing © VerhaertINNOVATIONDAY 2011
    • Understand focus and risks © VerhaertINNOVATIONDAY 2011
    • + competitive advantage © VerhaertINNOVATIONDAY 2011
    • manage perceived value Create distinctive performances and attributes. Translate into iconic designs. Resulting in user experiences and brand value.INNOVATIONDAY 2011
    • helps companies and governments to innovate. We design products and systems for organizations looking for new ways to provide value for their customers. Hogenakkerhoekstraat 21 We are a leading integrated 9150 Kruibeke (B) product innovation center; creating tel +32 (0)3 250 19 00 technology platforms, developing fax +32 (0)3 254 10 08 new products and business in info@verhaert.com parallel, hence facilitating new- growth strategies for our clients. More at www.verhaert.comINNOVATIONDAY 2011