Developing an Integrated Solutions Strategy for Entering a New Market Segment
An electronic component manufacturer had to create a strategy for entry into a growing segment of its primary market.
Industry & Client Situation
A leading electronic component manufacturer was challenged to create a strategy to support entry into the fastest growing segment of its primary market. While success had been achieved in other segments through a superior price-performance value proposition, the unique customer requirements and competitive intensity of this new target segment required a distinct approach to product development, partnering, and marketing.
Bridge deployed a small team to rapidly develop and help implement the growth strategy. Together with the client team, Bridge:
- Sized the opportunity in terms of units, revenue and profit potential over time;
- Identified customer requirements (both product and non-product) of the target segment;
- Mapped these requirements to select OEM and channel partners where the company was most likely to be successfully;
- Integrated target segment requirements into the product line planning process;
- Defined the non-product elements and business processes that contribute to a compelling solution, such as:
- Needing to partner with other component suppliers to create a platform that delivered “best-of-breed” performance relative to the competition
- Providing guaranteed availability of components targeted at this segment
- Determined appropriate level of marketing funding and programs
Finally, we organized the strategy into a series of execution programs and designed an implementation roadmap.
The strategy development process identified that solutions capabilities, beyond traditional strengths in product performance, needed to be bolstered to successful enter the target segment. The strategy was defined and the organization aligned around five pillars:
- Business processes,
- Solution elements such as software,
- Sales & marketing programs.
Bridge was engaged to support the implementation of several work streams and broaden the scope of work to include another product division. Our client has launched the solutions into the marketplace and is beginning to gain share in the target segment.