Product SWOT Analysis
Before any project goes on the market, it's just plain business-savvy to do the research first. An effective market analysis known by the acronym SWOT is performed to determine the strengths, weaknesses, opportunities and threats within a proposed project. These factors should be considered before investing time and money. Throughout history, consumers have seen many products come and then go off the market with lightning speed because SWOT analysis was disregarded.
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Benefits
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SWOT tells managers how a product will hold up on the market. Knowing what the market will bear determines whether the project will stand strong against the competitors. Often if there is no initial competition, such as with a brand new idea, the product's ability to meet a new demand is found within the different areas of the SWOT analysis.
Features
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New products stay new for what seems to be merely moments once they hit the market. It is common to see the words "new and improved" almost immediately after a product hits the shelves. What is found after determining a new product's viability through the use of a SWOT analysis will determine the focus areas for the product (e.g., the four Ps of marketing: product, price, place and promotion). Often the SWOT analysis includes competitor information for an at-a-glance comparison.
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Significance
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Within the strengths and weaknesses of a product SWOT analysis, a marketing manager can find opportunities. Each level analyzed lays a foundation for the next. In the case of the opportunities level, knowing what the product can do and what the product is up against (e.g., the four Ps of marketing from Section 2), the marketing manager finds opportunities to develop good marketing strategies. The product SWOT analysis shows, through statistical, graphic and other visual means, the pros and cons of producing a product.
Considerations
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The SWOT analysis on products also carries caveats for the marketing department. Market research is gathered from various populations and sample markets to weigh the possible threats (e.g., competition, public outcry, negative social and/or environmental implications). If it is determined that the product would adversely affect the company in the long run, the marketing manager may scrap it. On the other hand, the product manager can use SWOT analysis to determine whether threats can be tempered by persuasive advertizing.
Summary
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The importance of a product SWOT analysis is simple. Without using it, the marketer is going up against competitors blind. SWOT is the eyes and ears of the market. Data found within this analysis can save time, money and a company's reputation. Even companies with brands that everyone recognizes and trust would do well to visit and revisit a product through SWOT analysis.
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References
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