Profitable paint manufacturer trying to understand which projects to invest in and prioritize in the NPD pipeline
Conflicting feedback from Sales, R&D, and Product Line Management on what performance dimensions and product capabilities that customers valued. Lack of alignment between functions
Proliferation of low value projects in pipeline
Actions Taken
Developed “Customer Value Model” to evaluate top-line potential for several potential product performance dimensions and product capabilities to develop
Reverse-engineered customer P&Ls, and designed and implemented structured interviews to determine areas and magnitude of customer benefits from several new potential product capabilities
Determined value to customers for each of the capabilities
Results
Client gained better understanding about which product capabilities had the highest value to customers, and why
This guided subsequent investments in new product concepts, which are in development today and still look attractive
