Product / Service Offering:  Conforming with your business strategy – but not too closely

 
   
 
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Aerospace BizDev News from Linda Wolstencroft
Newsletter #40 –
Oct 15th, 2014

Product / Service Offering: Conforming with your business strategy – but not too closely

Linda Wolstencroft’s monthly Newsletter offers business leaders insights on business growth in complex situations.

The product and/or service that a company offers is, of course, a fundamental element of the business.

But how do you decide what products or services to offer when you are growing your business? 

Start with defining the business strategy and determine whether the new business fits within it.  The article “Strategy Made Simpler:  Being sensible, practical and avoiding the overcomplicated” sets out the fundamentals of customer value proposition and can be found here.

While the business strategy sets out how a company fundamentally approaches its product and service offerings, different customer value propositions mean different approaches to product and service offerings:

  • Companies with a customer value proposition based on close customer relationships will offer products and services that evolve based on the customer’s current and future requirements and exactly support those requirements..
  • A business that follows a product innovation and leadership customer value proposition will have an approach that keeps their products and services on the very front leading edge of all competitive offerings. 
  • For businesses engaged in a customer value proposition of lowest total cost, the cost factors will continually be addressed. 
  • Engaging customers in a locked-in long-term relationship will be the focus of businesses following a lock-in customer value proposition. 

How do you decide to develop new products or services, or let go of certain products or services that you offer? 

Reverting to the customer value proposition on which your business is built will guide you.  For example, a business that is focused on close customer relationships will not adopt a product / service offering change if it means the customer relationship will decline as a result.  If we look at the airline industry and the current focus on increasing the number of passengers while decreasing comfort, as well as the pushback that the air traveler is presenting to the airlines, we see that airlines are reducing customer comfort in favor of lower cost.  This is a specific decision made on the part of the carrier, and with the continuing focus on low airfares, carriers have good reason to make this decision. The carriers are likely banking that air travelers who prefer to have some comfort during their flight would be willing to pay the upcharge to an “economy plus” type of fare.  In this example, the airline has a focus on both customer and cost, with low-cost likely being the primary customer value proposition, but they still provide customers who are willing to pay higher prices for more comfort the option to do so. 

Of course, because the airline primarily follows a low-cost model, all passengers - whether in economy or first class - will experience the low-cost customer value proposition impact in other areas, such as in telephone wait times when reserving or contacting customer service, internet reservation sites that do not work well, wait times at check in, lack of attention to detail by aircraft agents, poorer food quality, and aircraft maintenance performed to the minimum acceptable airworthy standards.  The importance of this example is that the combination of the lowest total cost model and a customer-focused model is often the case and can survive superficially, but ultimately one needs to be prioritized over the other in many business decisions. 

How are you adapting your products and services to suit your customer value proposition?

This Newsletter has addressed the complex decision of Product / Service Offering.  Decisions related to Product / Service Offering comprise one set of nine complex decisions that are required when developing the winning solution for a complex sale:

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WEBINAR NOW AVAILABLE FOR DOWNLOAD: “B2Bs AND THE QUICKER CLOSE: GENERATE MAXIMUM SALES TRACTION IN B2B MEETINGS” – With Linda Wolstencroft, Lockheed Martin Canada and The OMX

Do you want to increase your speed of selling? Land important contracts quicker? This webinar will help get you there.

Enhance your sales performance using meeting situations as a tool to advance your sales.

This webinar features live feedback from a prime contractor on what captures attention when meeting suppliers, advice from a seasoned professional who has first-hand experience with failures and successes, a description of the new and innovative tool of The OMX that puts you in contact with a community of like-minded companies, and connects you to primes looking for Canadian suppliers.

Click here for more information and to download.

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THE BRITISH COLUMBIA AVIATION COUNCIL PRESENTS THE 2014 “SILVER WINGS AWARDS” EVENT

Join us on October 30th at the Vancouver Convention Centre to celebrate aviation in British Columbia and learn about this year’s award recipients.  

Click here for more information.

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“RED TEAM REVIEW” - LINDA WOLSTENCROFT’S PROPOSAL Exposé, Dramatically Growing Sales

This unique service is offered by one of the few experts in business development in aerospace. Learn from over two decades of developing and reviewing proposals – dramatically improving clients’ success rates of winning new business from government and the military, airlines, helicopter operators, OEMs and prime contractors, throughout North America and internationally.

This essential service will change the game for your business development efforts and significantly increase your probability of winning.
  
Outcomes you will gain:

  • Set a winning strategy
  • Align your entire proposal with your strategy
  • Boost your technical, management and past performance scores
  • Identify key areas of weakness and make them irrelevant
  • Mitigate risk areas
  • Avoid the business killer:  being non-compliant
  • Add dynamic material that captivates the evaluators
  • Escape the doldrums of boring sections
  • Creatively use visuals for best impact and maximum points
  • Make it easy for the evaluators to see your value

Your proposal will be dramatically improved AND you will be able to generate better proposals in the future.

This service is available when, where, and through the best medium for you. 

Contact Linda for more information.

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THE BUSINESS DEVELOPMENT COACHING PROGRAM – Gold, Silver and Bronze Levels

Improve your performance like you can’t even imagine.  Learn how to land the big sales.  The coaching program is a highly effective way of learning what you need, when you need it.

Click here for more information.

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