Developing a New Product Suite

Situation:

An established software company, with its product a 4 GL language, had a very successful long-term business targeted at a small market segment. Over time, the company services division initiated new applications and titles for associated niche market segments. The challenge was to create new titles as new applications, based on the core product without diluting the value of the core. After research, the company also realized that it needed to demonstrate that these products were fully developed and supported, and not just extensions or plug-ins to the main products.

The company needed to brand, package, and position the new titles so they could gain rapid market acceptance. The company needed to show support and investment in these new applications where there was overlap and where there was no overlap, they needed to associate brand and quality attributes from an advanced product to a 1.0 offering.

Action:

With the core product, the company first needed to identify brand attributes that were key to their success in the market. They also needed to begin marketing those attributes to the market to reinforce their value.

This client worked with Bates Strategy Group to identify market overlap and potential markets for each new application. They also worked together to tie the appropriate brand attributes to the new products, while maintaining attributes distinct and separate from those of their core products. They also developed packaging and branding messaging that was similar to their core products, but still unique to the new offerings. Finally, the company and Bates Strategy Group positioned these products to analysts and customers as a blend of the company’s core expertise and co-development from experts in each new segment.

Results:

This program was highly successful! By leveraging the reputation of segment experts, the new products gained market acceptance, and the company’s reputation was enhanced through providing value to its customer base.