Mapping Value and Cost of Dairy Product Substitutes PPT
This PPT slide, part of the 654-slide Business Unit Strategy Training Program PowerPoint presentation, presents a value/cost matrix designed to analyze product substitutes within an industry, specifically dairy products in this case. The matrix visually represents how different products (S1 to S6) relate to customer value and cost. The vertical axis indicates the value to the customer, while the horizontal axis denotes the cost incurred by the customer.
Products S1 and S3 are highlighted as delivering the most value relative to their cost, positioning them as optimal choices for customers. This suggests that these products effectively meet customer needs while maintaining a favorable cost structure. The diagonal line in the matrix indicates a balance point where value equals cost, serving as a benchmark for evaluating other products.
Products S1, S2, S3, and S4 are noted to provide more value than their cost, indicating that they are likely to be perceived positively by customers. Conversely, S5 and S6 are positioned in a way that suggests they cost more than the value they deliver. This could imply a risk of losing customer interest or market share, as consumers seek better value options.
The slide emphasizes the importance of understanding how products stack up against one another in terms of value and cost. It encourages businesses to consider substitution threats posed by high-value, low-cost products. This analysis can guide strategic decisions regarding product development, pricing, and marketing efforts to enhance customer satisfaction and retention. Overall, the matrix serves as a useful tool for visualizing and assessing product positioning in a competitive market.
This slide is part of the Business Unit Strategy Training Program PowerPoint presentation.
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Consulting Training Strategy Development Industry Analysis Environmental Analysis IT Strategy Customer Satisfaction Product Development Positioning
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