Situation
A manufacturer historically expanded its product portfolio by adding new products without fully understanding how different customer segments perceived the available price bands. As a result, the company had gaps in its offering, leading to missed sales opportunities. Leadership suspected they were losing business to competitors in key segments.
Obstacles
The manufacturer lacked:
- Visibility into product coverage gaps: They didn’t have a clear way to analyze which price bands were over- or under-represented in their portfolio.
- Strategic assortment planning: Without structured analysis, they relied on reactive product development rather than a data-driven approach.
- Pricing discipline: To compensate for gaps, they frequently discounted premium products, eroding their margins.
Action
The company turned to the Revify platform to analyze and visualize their portfolio across price bands:
- Gap identification: The tool revealed 10 product line gaps that hadn’t been previously recognized.
- Strategic product development: Instead of discounting premium offerings, they introduced targeted products in missing price segments.
- Optimized price positioning: With better product alignment, they were able to hold premium pricing on their high-end products without unnecessary discounting.
Results
By addressing gaps with new product launches, the manufacturer
expanded its market coverage while maintaining premium pricing for its flagship products. Profitability improved as they eliminated margin erosion from excessive discounting. Additionally, they captured new customers by offering products in previously underserved price segments.
