Options for developing a new mid micron value proposition for consumers

Abstract

The research for this thesis "Options for Developing a New Mid Micron Value Proposition for Consumers", is a part of a larger "New Mid Micron Products" project initiated by Mid Micron New Zealand Inc with the key goal of turning the Mid Micron Sector into a more vibrant and profitable one. The motivation for the project can be found in the dramatic fall in demand for New Zealand Mid Micron wool over the past decade. Two dominant causes for the fall in demand for Mid Micron wool were identified: the substandard skin comfort of final products made from Mid Micron wool, and a problem with the structure of the Mid Micron Sector. These problems are addressed in the "New Mid Micron Products" project that combines new product development and new marketing initiatives. Product development involved the use of new spinning technology to improve skin comfort quality and develop new products that are softer and prickle free. The aim is to extract more value for woolgrowers by having the wool converted into a higher value product. The new marketing initiatives, which were identified in this thesis research, Focusing On New Market Segments via E-Commerce and Reconfiguring The Value Chain, and concentrate on the operational issues of capturing the value from the newly developed Mid Micron products. Taking into account the nature of the overall Mid Micron Project and type of developed products, this research identified the Operational Excellence and Product Leadership models as alternative routes to develop a new Mid Micron Value Proposition for consumers. Operational Excellence, and the associated Cost Leadership strategy, is a low capital investment option, while Product Leadership and the associated Differentiation strategy is a high capital investment option. The models' principles and their elements, products, price and delivery to market, are evaluated in the context of the Mid Micron Business.