Among the most prized assets of every company are its products. It’s the products that generate revenue and profit. And they’re the reason why businesses continue operating. People demand products. And the only entities that can offer the product they want are the businesses that produce them. However, despite the public’s consistent demand for products, launching a new product isn’t an instant success. You need to have the right tactics in developing, designing, and distributing it. Otherwise, it cannot bring revenue and profit to your business. Even breaking even would be improbable. So before you start crafting a new product, devise the best possible strategy for it first. To commence things on the right note, feel free to download and use our Product Strategy Examples!
A product strategy is a set of dynamic guidelines on how a business must plan the various aspects of a product line. It aims to help a business on what to do to maximize the potential of a product vision and benefit from it. A product strategy framework covers every component that’s crucial for a product’s success.
Products drive the business world. Every year, companies from different industries create new ones to remain at the top or remain relevant, at least. Your business should do the same for it to have a steady footing in the market. So follow this process to develop new products for your business.
Everything starts with an idea. So in developing new products, generating ideas is always the first step. Product creators or innovators do a lot of brainstorming in this phase. Past products could inspire their ideas, or they could be something entirely new and original.
In this step, the product creators will identify the most viable ideas. They could ask the opinions of other business stakeholders, such as business owners, employees, and also loyal customers. They do that through a survey or a feasibility analysis.
After the screening, the product creators will then develop a concept for the product based on the screening results. They’ll plan things such as how it’ll function, how it’ll appear, what raw materials it needs, and how much its pricing will be. And most importantly, who are the product’s consumers or users will be.
You can say that this step is the most crucial in the product development process. That’s because this is where the product will get its final form. The product creators will create various prototypes or samples of the product for testing and quality assurance. They’ll keep doing that until they perfect the product.
Once every component of the product is complete, the company will then mass produce it for selling. As production progresses, they’ll establish or find distribution channels to bring the product to its consumers or users. And also, marketers will create a marketing plan to promote it in the competitive marketplace.
A report from Inc. shows that 95% of new products fail to impress and generate profit. Of course, that’s very worrying. Among the suspected reasons why most of them fail is a lack of research and resources. But whatever the culprit is, there’s one general reason why they end up a disappointment, and that’s the absence of a smart new product strategy. So don’t let the trend of failed new products daunt you. Your product can succeed by following these tips in creating a product strategy presentation:
Right from the get-go, your strategy should be to make a product that has a real purpose other than making money. That real purpose is solving a problem. An excellent example of this is Tesla’s electric-powered vehicles. Their cars help in reducing carbon emissions, which bodes well for the environment. Because of that, Tesla became a prominent brand in the car manufacturing industry. The bottom line is that products that can solve certain problems have higher success rates.
It’s understandable that you’re trying to be innovative. That’s a good trait to have in making a new product. But don’t emit being realistic. You should set achievable goals and expectations for your product. Whatever you envision about it, make sure to assess its viability. Find out if it’s doable or if there are enough resources to bring it to life. Unachievable goals will only lead your product to join the 95% of new products that failed.
Many companies have failed to identify the shortcomings of their product before launch. They were too focused on the positives. The result is what you have in mind. Their products mostly earned bad reviews. So to avoid that outcome for your product, make sure to conduct a SWOT analysis for it. Identify both of its strengths and weakness to find a way to optimize its quality. And determine the opportunities that can make it a success and the threats that can put it down.
Your product won’t garner attention if you don’t market it well. So see to it to establish the right product marketing approach. Figure out what platforms or channels that can help in raising awareness for your product. And also, identify what forms of media are best suited to promote it.
These are the types of products:
These are the five types of promotional strategies:
Product design is the process of devising the physical components of a product. Product development, on the other hand, is the overall process of creating a product, which starts with brainstorming ideas. Those ideas will then carry on to further product analysis, planning, strategizing, and designing. Product design is a specific phase of the product development process.
Your business could be one high-quality product away from becoming a multi-million company. It seems far-fetched, but we never know. Many companies were able to grow because of one successful flagship product. Your company could be next. So as early as now, begin strategizing your envisioned product. And don’t forget to download our Product Strategy Template!