Methodology for optimizing product differentiation in product ranges

The continuous occupation of niches within product ranges and the corresponding decrease in product differentiation are significant challenges for manufacturing companies. To address this challenge a methodology has been developed which allows recommendations for the positioning of new products within the product range in order to optimize the product differentiation. Unlike other approaches, this optimization is based on a quantified performance evaluation of products derived from their technical features using a performance index. This enables a specific and systematic differentiation on diverse levels of the product structure. The methodology is split into two phases: In the first phase, the performance of the individual product features is quantified based on a systematic evaluation method. The performance evaluations are aggregated into a product performance index. In the second phase, the feature specifications for a new product are derived from the previously calculated performance indices under consideration of the technical differentiation from the existing product portfolio. The developed methodology can be used to ensure product differentiation based on product features within the product range of manufacturing companies.