There are various successful products in the market which were invented by mistake. For instance, play-doh was used as a cleaning product. But later, it became a toy for children to make art and craft at home. But not every product becomes successful by mistake. There should be a good strategy behind every successful product.
Product strategy is a map used for developing a product. A product manager and his team refer to this map to achieve their business goals. Most businesses use this map when making significant product development or marketing decisions. Therefore, it is vital to make a correct strategy to ensure all the tasks are completed within a time limit.
The product strategy outlines the benefits of launching the product in the market. It even discusses the issues that can be resolved by launching the product.
The product vision is created once the strategies are clear. It acts as a foundation and helps measure a product’s success in the market.
This article discusses more product management strategies. Keep reading to know more.
What Is Product Management Strategy?
Product management strategy refers to a plan that focuses on customers’ needs and business ambitions. There are four elements of product management strategy, which are discussed below:
A product manager and his team should clearly understand the targeted customer’s needs while launching a product in the market. They should even take the feedback from the customer and make changes in strategy from time to time.
The product manager and his team should continuously develop a product with unique and outstanding features that will be different from their competitors.
The new product launched in the market should bring profit to the organization and help in achieving the desired goals.
4. Macro Environment
Factors like technology and culture significantly impact product profit and business. A good product management strategy must consider these factors while developing a product.
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What Are the Different Types Of Product Strategy?
1. Cost Strategy
The product manager and his team launch a product in the market at the least affordable price compared to their competitors.
Example: If your competitors charge $12 for subscribing to a fitness app, then you charge $10 for it.
Another example is house cleaning products. If your company sells house cleaning products, you can sell at less than your competitors. It can increase your profit because users think that almost all brands are similar and don’t think much while buying.
2. Differentiated Strategy
You launch a product in the market with features completely distinguished from your competitors.
Example: You evolve features that can measure the fuelling of bikes while riding, which your competitors have not offered till now.
3. Market-Oriented Strategy
You develop the product in the market after doing a lot of research.
Example: You had earlier planned to make a fitness app for different exercises. But after doing thorough market research, you came to know that the app will have more demand from cyclists and finally make the app only for them.
4. Quality Strategy
You develop a product that has a high-quality design, customer service, etc.
Example: You focus on quality instead of providing a cheap rate for subscribing to a fitness app. The quality of your fitness app will play a significant role in the market and can fulfill your business goals.
Another example: If you sell a cellphone with a one-year guarantee, provide exceptionally high customer service. You will find that this strategy attracts many buyers and will increase your business’s profit.
Examples Of Product Strategy
Nike is quite famous in the footwear market. It developed its first shoe in 1971. It develops exceptionally high-quality and stylish footwear from time to time, resulting in the company becoming famous worldwide.
Recently, Nike team members studied the market thoroughly and thought of developing a new shoe that would use airbag technology.
Nike’s product manager and other team members started setting business goals.
The shoe, Nike Air Zoom Mercurial, was different from other shoes in the market as it provides dynamic movement.
Another example is Teflar which is famous for bags. It introduced its first bag in 2014.
In 2020, team members studied the market and thought of making a bag that ordinary people could use. Competitor brands showcase their products through celebrity advertisements, but Teflar promoted its bags on social media, making them stand out more than the competitors.
The customers could also order the accurate model and color according to their desire. The best thing was that it was shipped in a specified period.
Teflar’s competitors make limited products and wait for them to be sold out. But Teflar gave exceptional customer service, allowing customers to order as many bags as they wanted.
A Few Final Words
Product strategy is essential to becoming successful in business. A good product strategy can guide the team members to achieve a goal.
This article provides helpful information on product strategy in business.
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