Product profitability

Our product profitability service offering helps clients design their products for maximized customer and end-user value, while maintaining cost effectiveness in the delivery of that value.

Product profitability cannot simply be about cost reduction. We believe that significant improvements in product profitability, whether from pricing or margin improvement, must begin by capturing real insights into customers and markets, and then understanding, targeting, and delivering the right “value mix.” A comprehensive focus on both top-line and bottom-line levers helps improve product competitiveness and drive increased profitability.

  • By focusing on the top-line, we can help clients quantify and translate customer insights and needs into advantaged product concepts and feature sets — together with an understanding of the willingness of customers to pay for them. Advantaged products drive superior competitive positioning, and that, in turn, drives higher sales.
  • Our bottom-line focus helps companies deliver advantaged products and feature sets to customers at the lowest possible price. Our goal is to reduce basic product or service “functional” costs and then reinvest the savings into product features and consistent quality, attributes that create real and perceived value in the minds of customers.

Our thought leadership

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Providing new goods and services to “bottom of the pyramid” customers requires a radical rethinking of product development.
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This "perspective" viewpoint describes three increasingly ambitious strategic levels of green that companies can pursue: responsible green strategies seek to meet the sustainability demands of key stakeholders.
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As India’s economy continues to grow at a rapid pace, the automobile industry will be a key beneficiary. This perspective provides an analysis of growth prospects in the Indian automotive industry.

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Client examples

Our design of an R&D function for the new engineering division of a telecom equipment maker led to real savings within the first year.

A global computer manufacturer captured over $200 million in annual COGS savings via design changes

A major European automotive manufacturer achieved upwards of 200 million Euro in design related savings annually.

A global consumer packaged goods company enabled $50 million in additional COGS savings on existing products.