Market Segmentation Strategies for Smart Customization PPT

This PPT slide, part of the 28-slide Product Strategy: Key Challenges of Smart Customization PowerPoint presentation, presents a framework for understanding how leading organizations segment their markets based on socioeconomic classes, particularly in the context of smart customization. It introduces the "Valueless Variety – Smart Customization Performance Curve," which illustrates the relationship between customization, revenue, and operating costs.

Market leaders are depicted as categorizing their products into 3 tiers: low-cost options for lower-income groups, moderately priced offerings for the middle class, and premium products for high-income consumers. This segmentation strategy allows companies to address diverse customer needs effectively. The slide emphasizes the importance of smart customizers, who implement specific actions to manage their marketplaces. These actions include creating multidimensional management systems that enhance operational efficiency across inventory, manufacturing, and distribution processes. Additionally, smart customizers focus on resource sharing among departments to optimize performance.

The accompanying graph visually represents the extent of customization and its impact on revenue and costs. It highlights 3 key points: the transition from low customization to optimal product/service breadth, the peak of maximum profit, and the implications of increased complexity on costs. As customization increases, revenue initially rises,, but unmanaged complexity can lead to increased operational costs. The graph suggests that there is a balance to be struck between customization and cost management, with a new maximum profit achievable when complexity is controlled.

Overall, this slide provides valuable insights into how organizations can strategically approach market segmentation and customization to enhance their offerings while managing costs effectively. Understanding these dynamics is crucial for executives looking to optimize their product strategies.

This slide is part of the Product Strategy: Key Challenges of Smart Customization PowerPoint presentation.

Download the Full Presentation

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Product Strategy Cost Management Market Segmentation Manufacturing

Are you familiar with Flevy? We are you shortcut to immediate value.

Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations

Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.

Flevy is the world's largest knowledge base of best practices.

Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.

Read Customer Testimonials

"Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.

Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten.

In today's environment where there are so

... [read more]

– Omar Hernán Montes Parra, CEO at Quantum SFE

"Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I

... [read more]

– M. E., Chief Commercial Officer, International Logistics Service Provider

"As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor

... [read more]

– Michael Duff, Managing Director at Change Strategy (UK)

"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

– David Coloma, Consulting Area Manager at Cynertia Consulting

"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact

... [read more]

– Roberto Pelliccia, Senior Executive in International Hospitality

"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

– Michael Evans, Managing Director at Newport LLC

"I like your product. I'm frequently designing PowerPoint presentations for my company and your product has given me so many great ideas on the use of charts, layouts, tools, and frameworks. I really think the templates are a valuable asset to the job."

– Roberto Fuentes Martinez, Senior Executive Director at Technology Transformation Advisory

"FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."

– David Harris, Managing Director at Futures Strategy