Consumer electronics: development of a new product portfolio

The Challenge | A manufacturer of high-quality hi-fi components is in a difficult situation. Until now, the company mainly set itself apart from its competitors through the design of its products, as well as through its high-quality sales (exclusive showrooms), which enabled it to achieve substantial premium pricing. Over the past months, however, the gradual loss in sales has increased dramatically. This is due to rapid developments in the home entertainment sector (Internet connections, music digitalization, and so on) that the company did not consider relevant for its target group. Now, however, it is clear that the company is losing its customers to other manufacturers.  As well as great design, the other companies also offer the latest digital functions: iPod integration, online connections to streaming services, control via wireless LAN instead of infrared, and so on. To win back its former market shares and sales volumes, the company has to quickly launch radically new products, which still have the brand’s core value: “great design”.

Our joint approach | In conjunction with the customer, a consultant from mm1 Consulting & Management investigates the problems. A team of employees from marketing, R & D, production, and sales draws up the function-related and non-function-related requirements for a completely new product line. During the process, the mm1 consultant utilizes two seemingly opposing development philosophies. She combines user-oriented, highly creative design thinking with management thinking – in other words, with approaches used in classic innovation management. The result is a concept for a completely new product line that is not only precisely described, but can also be experienced by the company’s decision-makers in the form of prototypes. The concept is oriented specifically toward user needs. User experiences are split into four components, for instance – physical, psychological, social, and sustainable – and then optimized for each individual component. At the same time, the concept is designed as a product platform based on standard components right from the start. This ensures a high percentage of identical parts, the rapid launch of follow-on products, and excellent availability of parts. The requirements for the new product line are set out as guiding principles for further product development, and the company is given a new R&D strategy. Just one year after the implementation of the new strategy, the company has not only regained its competitiveness, but is also able to launch new, eye-catching products that are genuinely innovative, as well as useful and visible for customers.