Going by how strategic and profitable it is, a business can create four types of value: flagship, fill gap, future, and free.
Flagship product is a core product that drives a company’s growth. It brings in maximum profit and is strategic to a business. The flagship product represents a company’s core competency.
Fill-gap product complements flagship products. Fill-gap product is not strategic, but it can be profitable. In the case of a bank, the flagship product can be a deposit or loan. But it can sell a mutual fund to fill the gap in its services portfolio.
Future product is a lab product - only a small segment of the market will need it today. It is strategic but may not be profitable yet.
Free product is a “good will” or “charity” product that a business creates to discharge its corporate social responsibility. Ideally, it is neither strategic nor profitable.
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