How Do I Set Product Strategy?

Set your product strategy carefully to avoid shortcomings on the market.

Product strategy refers to the organized effort of a company's product management department to identify the pros and cons of a specific product and promote it to consumers. It must not be confused with business strategy, which is about setting the company's goals and deciding the right investments. Consumers' needs, as well as the market's structure, must be taken into consideration before a product is available for sale. A product strategy based on the correct market data and answering a number of core questions is essential for a successful venture.

Instructions

1. Determine who this product is targeted to. Products for men, women, children or for the whole family must be designed and promoted in a distinct way. For example, children's products must not contain hazardous materials and must have lively advertisements.

2. Find out what the market lacks and how your planned product will satisfy consumers' needs. A television is your product, but you need to see what special features you must include, such as 3-D capability, to make it stand above the competition. This information can be obtained through a carefully planned survey.

3. Set the quality standards of your products. Tailor the product according to consumers' needs and expectations, while trying to keep the balance between quality and price. A highly priced product will not attract the majority of customers, regardless of quality.

4. Decide how to release the product to the market. Electronic devices must be available in stores, so that potential buyers can test them, while products such as printer ink can be sold exclusively through the internet.

5. Form the augmenter product, the additional non-physical features, such as warranty and customer service support. Determine the duration of the proposed warranty, according to the product's durability and difficulty to fix. If a newly purchased product needs constant repairs, the warranty can be a profit-draining addition.

Tips & Warnings

• The market research can be conducted in the form of telephone interview, mail questionnaires or direct conversations with consumers. It must include both questions about the proposed features of your product, to see if consumers are positive toward them, as well as space for suggestions of their own. You never know where the next great idea can come from.

References

• Learn Marketing: Product Strategies and Decisions
• SVPG: "Business Strategy vs. Product Strategy"; Marty Cagan; April 2009
• FEB-Patrimoine: Product Strategy

Resources

• Product Strategy Network
• Product Strategy: Best Practice in Strategy and Product Management