A case study in developing a successful product based on customer requirements.
Tier 1 Telecoms Carrier
A large B2B customer asked for a new product variant that they could customise, brand and distribute to their own consumers. Changing the manufacturing process for the standard service would result in loss of all economies of scale making the new product prohibitively expensive. A solution would secure new incremental sales revenues.
The manufacturing process was analysed to identify individual product components, costs, operational drivers, dependencies and where the economies of scale were located exactly. Using these insights, a new product was designed, negotiated and agreed with the 3rd party supplier. This included order fulfilment, handling B2B custom specifications and onward distribution. The final product was 99% customisable with only a small loss of economies of scale. Finally, a premium value-based pricing structure was created and the new product was sold to several wholesale customers.