Overview
To ensure maximum profitability, businesses need a strategy in place for every product that will extend the life of the product and obtain the maximum price from the marketplace. The price a product can achieve is always determined by the buyer. What they are willing to pay for the product depends upon the volume of available product, as well as the alternative products available and their prices and accessibility. Product profit margins vary and not every product can demand the same margin. To maximize the return to the business the product margins and mix should be determined based on an analysis of all factors affecting their marketing, not simply on a fixed percentage markup or similar basis for calculation. Identifying the factors that customers look at when buying your products will identify the level of demand and their dependence on the product. This will help determine your ability or need to increase, maintain or decrease the margin, or to examine the make up of the product to find alternative methods to maintain the margin and extend its lifecycle.
What We Do
A review is carried out of the product range and margins. A review is carried out of alternative products (both those of direct competitors and possible alternatives). Customers of the different product groups are segmented and reviewed to ascertain their view of the product - are they price sensitive? Can it be further differentiated to decrease sensitivity/competition or increase its lifecycle? Other possible savings and/or production efficiencies that can increase the profit margin are identified and examined.
Your Outcomes
	Development of an outline of the current product strategy. Customer groups are matched to the product ranges. Feedback is provided on how the customers view the products based on various criteria, the performance of your products against those criteria, and how this compares with the competition’s offerings. Recommendations for areas where you can make changes – which may include such factors as features, pricing and production costs. Recommendations for ways of improving your product strategy.