How about this for a good example of what NOT to do with your product.
Until recently Dunlopillo used to sell around 170,000 Talalay process natural latex pillows each year in Australia. They were the best and most popular brand by miles. Competitors like Dentons, Target and TLC saw an opportunity and nibbled at their heels with similar product, slightly cheaper. As they began losing share, Dunlopillo introduced a new range of more profitable visco memory foam pillows under their umbrella Therapillo brand. Product development and marketing focused on the new golden goose.
At the same time the overseas latex factory was squeezed on price so Dunlopillo’s pillow volume could be boosted by off-price promotions. Then squeezed some more. Then more. Till the supplier began cutting corners and quality was affected. Rather than sort the quality issue out and renegotiate a more reasonable price, Dunlopillo simply found an alternative supplier and cut off the original factory.
The big problem with this move was that the product is different. The pillows aint like they used to be. The latex is now a blend of synthetic and natural latex and the resultant feel is a little firmer. Price did not reduce and in the past 18 months Dunlopillo sales have fallen off dramatically. Their customers are not happy. We know, because at TLC they tell us. They also tell us our all natural TLC talalay latex pillows are pretty much exactly like Dunlopillo used to be – at around half the price. One thing for sure – at TLC we will NOT be changing anything!