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产品策略及客户定制服务

ABC LED Product Strategy for Key Customer

 

As we all know that the 80% business and 80% profit is come from about 20% customers (key customer), so that how to maintain the relationship with key customer as well as to maintain the market share and profit from the key customer is very importance for our profit and business grow.

And from the PM side we need to have a product strategy (special for LED product) for the key customer as well as the sales strategy focus on key customer. With the ABC LED product strategy we can build up a strong LED product brand image in a short time and avoid the front competition to have a good profit also.

 

What is the ABC LED Product Strategy?

l         A Product= Advantage Product with unique function in order to have the good profit from key customer.

l         B Product= Basic Product with the basic need function in order to have the good market share from key customer.

l         C Product= Custom Make Product with private requestment in order to banding the key customer and have the good relationship with key customer, and if we manger good we can also have good profit.

 

 

The benefit of ABC LED Product Strategy for us:

 

-         To have the good circle of good profit, good market share and good relationship from key customer.

The B product can enhance us to have a business with key customer, after that we provide the customization service to banding the key customer and so that with the C product we can have a good relation ship with key customer, after that we promote the A product to have a good profit from key customer. And with the good profit we can reduce the price of B product to have more market share from the key customer.

 

The benefit of ABC LED Product Strategy for key customer:

 

-         To have the good market position and profit in the competition with our ABC product.

 

    Because our B product is “design for cost” product, mean with B product our key customer can have a good cost saving to address the target market, and with our C product the key customer can building up they brand image. And they can use our A product to meet the unique market request to have a good profit, so that they will have a good market position in the competition with our ABC LED product.

 

The selling price Strategy for ABC LED product solution.

 

l         A Product= high selling price for meet the unique function request and give a benchmark of customize product.

l         B Product= low selling price for meet the basic function request and give a cost saving solution for customer.

l         C Product= middle selling price for meet the private request (such as private label or special function) to banding the customer.

l         The price gap between B and A is the negotiate price gap, mean we can negotiate the selling price for customize product in this gap.

Case example: China MOFREE

MOFREE is the key LED OEM in China

 

       The ABC LED products we provide to MOFREE

-         A products: LCI TOP LED convertor

-         B products: LCI TEC LED convertor

-         C products: LCI TEC LED customize convertor with MOFREE label 

 

The price we provide to MOFREE

-         A products: high price

-         B products: low price

-         C products: middle price

 

Outcome for us:

-         Increase the market share of LED convertor using in MOFREE.

-         Increase the product profit from MOFREE.

-         The relationship with MOFREE has enhanced.

 

Summary:

-         A products is “design for luxury ” to get the good brand image

-         B products is “design for cost” to get the big market share

-         C product is “design for ideas” to banding the customer.

 

 

 

 

 

 

 

 

 

 

Customized Service for Key Customer

 

As we know that now in the LED light world the quickly feedback and customized service is become very importance to key customer and product develop. And the 80% business and 80% profit is come from about 20% customers (key customer), so that how to maintain the relationship with key customer as well as to maintain the market share and product range, I suggest we need to build up a customized service team for key customer and new product develop, and this team including the persons from PM,R&D and project team, and follow below process:

 

 

   With this process, if the key customer need non-standard product, the sales define the customer product request in product description form and the customer commercial request in project description form. After finish this forms and sales send it to customized PM, and after that the PM set up a meeting to clarify the requestment with the sales and customer according to below classification standard, and make a decision to take this project or not by PM.

 

 

  If this project request take in to consideration by PM and sales. The PM will pass this project to project team to find an internal project leader.

  And the project leader will create the project order into the product customized system for monitor.

  When the project order request come down to customized R&D team, and the R&D team according to below typical duration based on project classes to find the solution and ENG samples to PM & sales.

If the prototype confirm and draft spec confirm by key customer, the PM and sales need to review the pricing and commercial condition with the customer, after make a agreement with the customer the sales need to sign off a project customized service contract including all the details (such as pricing, delivery plan, specification, payment conditions and also the confidentiality condition). If this product is using Tridonic brand, it is not allow signing off a total exclusive contract, meaning TRIDONIC can sales this customized product to other party.

 

When the project customized service contract sign off and receive the project deposit, this project will go to M2, and after M2 this project order will go though the standard project process.

 

So that with the ABC LED product strategy and Customized Service we can truly enlightening our key customer’s LED lighting ideas.

 

 

Michael Xu

PM

2013-10-6

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