5.2 The Fine Cut

In the fine cut, a product's success is based on how appealing it is to the intended segment's customers. A product's appeal is driven by its monthly Customer Survey Score (the December survey score is published in the Courier's segment analyses). Each month, segment sales are determined by product survey scores. If a product is not available in sufficient numbers, other products with lower scores may outsell it. A product's survey score starts with how well it satisfies the segment's buying criteria: Positioning, Price, MTBF and Age.

5.2.1 Positioning In The Fine Cut

In the fine cut, the product's relative position within the circle affects its appeal. Each segment's fine cut circle has an ideal spot. The ideal spot indicates the location where positioning demand is highest (darkest areas, Figures 5.2 - 5.6). Exact ideal spot locations relative to the segment centers can be found in in Table 8.3. Ideal spots drift with the segments, moving a little each month.

Customers in the high technology segments (High End, Performance and Size) want cutting-edge products. The ideal spots for these segments are located towards the lower-right edge of the circles, where size is smaller and performance is faster.

Low technology customers (Traditional and Low End) want proven technology. The Low End ideal spot is located towards the upper left, where products are bigger and slower. The Traditional ideal spot is in the center of the circle.

Ideal spots drift with the circles. The locations on December 31 of the previous year are reported in the Segment Analyses of The Capstone® Courier.

A sensor within the outer circle but outside the inner fine cut circle (orange areas, Figures 5.2 - 5.6) has reduced appeal. Appeal drops in a linear fashion. Just beyond the fine cut circle, appeal drops 1%; halfway between the fine and rough cut circles, appeal drops 50%; appeal drops 99% for products that are just inside the rough cut circle.

Figure 5.2 Traditional Preferred Position: Customers prefer products located in the center of the circle.

Customer positioning preferences are indicated by the darker areas of Figures 5.2 through 5.6. The darkest areas indicate the ideal spots.

Figure 5.3 Low End Preferred Position: Customers want tried and true technology. They prefer products with slower performance and larger sizes.

Figure 5.4 High End Preferred Position: Customers want high performance and small size.

Figure 5.5 Performance Preferred Position: Customers prefer higher performance levels.

Figure 5.6 Size Preferred Position: Customers want smaller sizes.