Redifferentiating Existing Products and Resegmenting Their Markets An Innovation Workout using your Creativity to Breath new Life into an Old Product

To Present Prepare for your group to present Prepare for your group to present –In 5-10 minutes –Describe your two new products –Draw pictures of your redifferentiated products –Describe briefly how your group managed ‘Creativity’ when approaching this task –Present a maximum of 1-2 slides per task (hand written) For the sake of time, please to not include anything else For the sake of time, please to not include anything else

You are provided At the front of the class, you will find a stack of A4 sheets At the front of the class, you will find a stack of A4 sheets –Each contains a picture of a physical product (there are no services, software, financial instruments or other abstractions) Each product contains pointers to the main features of the product, Each product contains pointers to the main features of the product, –and a short description of the main uses of the product

Choose a Product from the Pictures Pick a specific consumer product picture from the pile Pick a specific consumer product picture from the pile –There are two (2) copies of each product; no more than two groups should redifferentiate the same product –Each one of these products has been a ‘blockbuster’ – i.e., has defined a major market in the past, – i.e., has defined a major market in the past, Some have even redefined consumer lifestyles Some have even redefined consumer lifestyles Quickly think through: Why customers buy this product (be honest) How customers buy this product (i.e., the consumption chain) Complementary products required to market this product Competences your firm needs to compete

: Redifferentiate your Product Each product picture provides a list of features with pointers to where they are implemented on the product Each product picture provides a list of features with pointers to where they are implemented on the product –They do not contain any information about why those features are important –You “redifferentiate” by changing features (components) and the way they are put together into a product (architecture) Create two new “redifferentiated” products Create two new “redifferentiated” products –By choosing different objectives as a basis for redifferentiation Is the objective to reduce cost (how)? Is the objective to reduce cost (how)? Or to create new, perhaps narrow, set of markets? Or to create new, perhaps narrow, set of markets? Or to position the new product among its competitors Or to position the new product among its competitors Or to change the way consumers use, purchase, search for or otherwise interact with the product Or to change the way consumers use, purchase, search for or otherwise interact with the product

Resegment the Market For each of the two new products (objectives; feature sets; architecture) Describe how customers will use the redifferentiated product What new customer groups will you generate with this redifferentiated products? What old customer groups will you alienate? What new customer groups have the Growth potential? Profit potential? Revenue potential?

Remember More is NOT better! More is NOT better! –It is just more confusing –SIMPLE is good –Do not redifferentiate by adding features only Change existing features Change existing features Get rid of useless or redundant features Get rid of useless or redundant features Simplify, worry about the human interface Simplify, worry about the human interface In the process, maybe you will want to add a feature In the process, maybe you will want to add a feature

To Present Prepare for your group to present Prepare for your group to present –In 5-10 minutes –Describe your two new products –Draw pictures of your redifferentiated products –Describe briefly how your group managed ‘Creativity’ when approaching this task –Present a maximum of 1-2 slides per task (hand written)