Product Configuration and Pricing Strategy
In the highly competitive world of clinical diagnostics, what innovative features under consideration by our client should they select?
- Which features will bring the most value to the customer?
- What price will the market bear?
- What is the best timeline for each feature?
Situation
In the highly competitive world of clinical diagnostics, the Medi-Vantage team helped our client define their product strategy. We helped our client segment the market to understand their customer base and the unmet needs of each segment.
Strategy Questions
- How do we best segment the market?
- What innovative features, by market segment, should our client select for next generation and future generation product development?
- Which features will bring the most value to the customer?
- What price will the market bear, in the short term and in the future?
Medi-Vantage Methodology
Perform market and user segmentation to assess market segments of greatest value to the client. Utilize in-depth interviews and a conjoint analysis to Identify features, the optimal system configurations, optimal pricing, price sensitivity and price-based customer segments.
Results
The client product strategy has been commercialized and the next-generation system has been well-received by the market. Market share is growing rapidly. The price sensitivity analysis performed by Medi-Vantage convinced senior management and the board of directors to launch the next-gen product at a price point higher than original estimates.