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Timing cannibalisation dec 2014 f02 slideshare
1. Timing,
a crucial success factor
Eat ....
or be eaten
- the Cannibalised Version of -
Timing of New Product Introductions
@ReggyMortier @Barco - Mobile: 0478 25 25 16
@Vlerick @MarionDebruyne: Product Management
December 11th, 2014
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2. “Fixed” timing
“High” success rate
“longest” record
2
All other average a
!!!! 4% !!!!
success rate only
5. Timing success factor 1
Determine: to fix or find out precisely, calculate
“Product” Life Cycle Management
5
6. Determine the right timing by
calculating the Profit contribution
6
??? RED ???
Engineering?!
Product Management?!
7. Lesson learned - “Communication” to the rescue
And that’s not just the price
thinLITE family
What ?
&
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
8. Why ?
Product Profit Life Cycle Analysis
Emerging Market Segment
- opportunity for segment leadership -
“PROFIT UP”
Main Market Segment
- Need for cost optimisation & portfolio extension -
“COST DOWN” & “COST DOWN
“PROFIT UP” “PROFIT UP”
Low End Market Segment
- Losing to disruptive, “good enough” competition -
“COST DOWN”
8
14. Cannibalisation risk
not so much unlike in the movies ...
Lost Profit by
Bad Cannibalisation
at least for the product manager’s career ...
which will be short-lived
14
15. Is it relevant to you ?
Cloud is the new digital - who remembers Kodak?
16. Is it obvious to you ?
Remember Porters Five Forces?
29. Cannibalise for maximum PROFIT only
Chapter 11
Cannibalisation as
competitive strategy
PS get the XLS via Jolien ;-)
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30. 12000
9000
6000
3000
0
Profit contribution with each sold unit
3000
Profit 2 Competition
6000
Cannibalised Profit
Regained Profit
12000
9000
I
II
III
6000
2005 2006 2007 2008 2009 2010
36. Phased intro (time/segment) to maximise total profit !
& to strategically control cannibalisation
Emerging Market Segment
Main Market Segment
Low End Market Segment
36
37. Determine the right timing by
monitoring profit contribution
Control the right timing by
cannibalisation strategy
Secure the right timing by
customer engagement & phased introduction
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