TTC Corp is a global medical device manufacturer headquartered in the US with operations in

more than 60 countries. The Company produces a range of medical devices and data
management tools. They have always been a market leader and commanded premium pricing;
however, intensified competitive pressure from lower-cost manufacturers and increased
customer price sensitivity have negatively impacted margins and market share.

In response to these dynamics, Edward, the Chief Marketing Officer of TTC, repositioned a
portion of the high-end product line to address the preferences of more cost-conscious
customers. He also led TTC’s efforts to acquire and develop a lower cost product line to
expand its product range. Edward quickly realized that while the expanded portfolio was
robust, the product lines lacked differentiation which created customer confusion and
impacted financial performance. Further, he faced organizational challenges since product
development, marketing, and sales were managed at the product level.

Concerned that product overlap would further erode market share and profitability, Edward
called you up to discuss his challenges. He needed you to develop a new portfolio strategy and
redefine the accompanying go-to-market strategy in order to position TTC for continued
market leadership and growth.

As first priority, he would like you to assess whether he should launch a new product in
Product Line B named NewPro. NewPro will have a suggested price of $200 with a rebate
offered to all purchasers of $15 per product. The manufacturing cost will be $115 per unit and
per product marketing costs are expected to be $20 per unit. The fixed costs to launch the
product will be $20,000,000. NewPro will be positioned as “leading edge” with a high touch
support model. The product will be sold through the third-party distributors that Product Line
B utilizes.

He provided you with the following data points for you to investigate.

Exhibit 1: Product portfolio of TTC

 Exhibit 2: Financial information Breakdown (Million USD)
*Note: Assuming all costs are variable cost in this breakdown

Exhibit 3: Product line information

Exhibit 4: Quotes from Customer Interviews

“In the medical industry, nothing can go wrong even just slightly, so our devices need to get
the technical support as soon as possible”

“I feel like your distributor is really dragging you down. Every time I call them, although there
are people answering but it’s really hard to get somebody to come and fix the device. We have
to hire an outside technician to fix it following their instructions.”

“Your products are quite confusing in terms of product features. The sales team is not so
efficient in giving advice either.”