CFT 3.2 Product Service Offering Document (Template)

1 Products/Services Offerings, Value, and Positioning – The Customer Focus Team (CFT) reviews and updates the organization's product and service offerings, financial value contribution, and positioning in the marketplace vs. competitors or comparative organizations. The Customer Focus Team (CFT) is responsible for the administration of this standard.

 

1.1 Value Added: Products/Services Offerings, Value, and Positioning

 

  • Improve product and service offerings, value and competitive positioning

 

  • Target customers and stakeholders are prioritized

 

1.2 Inputs to Products/Services Offerings, Value, and Positioning

 

(a) Product or Service Data Sheets (sales flyers, brochures, similar materials)

 

(b) Product or Service Web Site images and descriptions

 

(c) 1.1 Organizational Profile

 

(d) List of Customers and key Stakeholders

 

(e) Estimates of competitive position (by product or service and by market)

 

(f) Estimates of changes in the competitive position

 

(g) Comparative organization lists

 

(h) Estimates of comparative organizations products/service offerings

 

1.3 Tools and Techniques: Products/Services Offerings, Value, and Positioning

 

  • CFT_3.2_Prioritization_Customers_Stakeholders (.xlsx)

  • CFT_3.2_Product_Service_Value_Contribution (.xlsx)

 

1.4 Process Instructions

 

Step 1: Product Service Value Contribution. The CFT uses the Product Service Value Contribution tool to evaluate the financial value (in terms of revenue, cost of goods sold and gross profit) for each major product or service the organization produces.

 

  • The organization Chief Financial Officer or Certified Public Accountant should assist the CFT in this process to ensure accurate numbers for revenue, cost of goods sold and gross profit are input to the Product Service Value Contribution tool. The results of this analysis may necessitate changes in the strategy of the organization for each of its key products and services. The OE21 Product Service Value Contribution tool provides the entire spreadsheet for this example.  

 

  • The goal is to learn which products and services are gaining or losing money in terms of Gross Profits. This analysis may drive changes in organizational strategy to improve gross profits. Some of this analysis should include an examination of the organization's Expenses because these can be higher than necessary to provide the desired Net Income (Gross Profit - Expenses = Net Income).

 

Step 2: Product Service Value Contribution Action Plans and Meetings. The CFT initiates action plans and meetings with other focus teams, using the results of the Value Contribution analysis, to improve overall gross and net profits. Improvements are made through changes in focus on sales of specific products or services. The LFT may initiate a new Strategic Objective and Strategic Action Plan because of the Value Contribution analysis. Alternatively, the CFT may focus on sales of the most profitable products and services, as opposed to those less profitable.

 

Step 3: Customer and Stakeholder Prioritization Matrix. The CFT uses the Customer and Stakeholder Prioritization Matrix to maintain and prioritize lists of customers, prospective customers, and key stakeholders. The prioritization worksheets in the Customer/Stakeholder Prioritization Matrix include:

 

  • NAICS Prioritization Matrix to help determine what market sectors are best to pursue;

 

  • Customer Prioritization Matrix to score (high to low) the position of each product against seven criteria; and

 

  • Stakeholder Prioritization Matrix to score (high to low) the most valuable stakeholders to the organization. The prioritized lists of customers, prospective customers, and key stakeholders are used by the CFT to determine which targets are most likely to succeed in the overall marketplace, short- and long-term.

 

Step 4: Publish Product or Service Data Sheets and Information. The CFT publishes revised Product or Service Data Sheets and Product or Service Web Site images and descriptions to the organization's Intranet. Revised information may include sales flyers, brochures, images, product information sheets, and other descriptive information. The LFT is responsible for initiating any new Strategic Objectives and Strategic Action Plans.

 

1.5 Outputs from Products/Services Offerings, Value, and Positioning

 

(a) Improved Product or Service offerings

(b) Revised Product or Service Data Sheets (sales flyers, brochures, etc.)

(c) Revised Product or Service Web Site images and descriptions

(d) New or revised Strategic Objectives and Strategic Action Plans that would improve product or service value contribution, and market/sales performance

(e) Product Service Value Contribution spreadsheet

(f) Customer Stakeholder Prioritization Matrix

 

End of CFT 3.2 Products/Services Offerings, Value, and Positioning

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