Vic Progressive - Launch of SkyTrack

Description

The president of Vic Progressive Diamond Drilling, a Canadian enterprise based in Sussex, New Brunswick that provides products and services to mining companies, is reviewing the progress in the market launch of SkyTrack, a new product designed for use in difficult terrain exploration by large mining corporations. Feedback during field trials has been favourable; the innovation is, in fact, customer-led. There is also evidence that this multipurpose vehicle saves time and money in transporting mining equipment across rough terrain in remote areas. But the company has yet to make its first sale in two years because the user community is experiencing a difficult economic environment and is unwilling to make capital investments. How can product adoption be generated? What customer value proposition can be developed? Can SkyTrack be positioned as a means to improve cash flow for customers during difficult times, or should customers be primed to adopt it when the inevitable uptick in exploration occurs?

Learning Objective

·To develop a price-value model for an industrial product. ·To estimate Economic Value to the Customer (EVC) for an innovative product. ·To determine product ideation.

Keywords

break even analysis capital equipment economic value ideation Leasing New product