Value Innovation Portfolio Management: Achieving Double-Digit Growth Through Customer Value

Chapter 1: Understanding Customer Value The Grounded Portfolio

OVERVIEW

Schering-Plough Corporation says that the U.S. launch of PEGINTRON (peginterferon alfa-2b) Powder for Injection and REBETOL (ribavirin, USP) Capsules combination therapy has been the most successful new product introduction in the company's history, as measured by product sales. Product News in Brief, Drug Cost Management Report, January, 2003

The result of Titleist's process technologies, product design, and intellectual property protection efforts was the Titleist Pro V1. Introduced on the PGA Tour in fall 2000 and to the market in January 2001 to instant acclaim, the Pro V1 quickly became the most successful golf ball introduction in Titleist's and the game's history. "From corporate press release: Titleist Pro V1 and Pro V1x Technology Leadership"

Laserscope, a small maker of medical lasers and advanced fiber optic devices saw revenues increase 63 percent in 2004. The product was a KTP (single-wavelength laser) system for treating enlarged prostates.

Sales of that product nearly tripled and company revenue increased to nearly $100 million.

"America's Fastest-Growing Small Public Companies," Fortune Small Business, July/August 2005

Every company dreams of a category-busting new product, a launch that defies all expectations, an item that catches on with buyers, spreads like wild-fire, and becomes a business legend. Such introductions don't arise spontaneously. They result from many factors, each of which may be necessary but not sufficient on its own to propel a new product into the sales stratosphere. Even experts hold conflicting opinions about what makes for success in introducing new products. Ask the question of...

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