Product Strategy Definition
Product strategy is the process of planning the various stages of the product to ensure that it reaches the desired place, and is referred to as the roadmap of a product. Product strategy will encompass all the steps that will lead to the success of a product.
Product strategy is essential to decide all the elements of a product, such as marketing, advertising, production, and design. When a company wants to target the product to the right segments, product strategy is the most essential.
It is important to conduct product analysis to develop a strong product strategy. Other elements that are important to formulate a strong brand strategy includes the study of competitors, market, and customer’s expectations.
Product Strategy Advantages
1. Value Creation:
A product strategy helps a company to focus on specific target markets, which adds value to the product. Due to the clarity in the outcome brought about by the product strategy, the customers get added value in cost and durability. Due to this value creation, the performance and reputation of a company grows.
3. Sets the foundation:
A product strategy becomes the basis for the implementation of the product road map. With a product strategy, there is a clear focus on the target market and the product life cycle. A company can measure the success of a product and minimize risks with the help of a product strategy.
As product strategy focuses on the road map of a product, there is a high emphasis on keeping up with the changes in the market at all stages of the product life cycle. Product strategy will help to design products and tailor them according to the changing needs of the customers.
4. Non-price competition:
When most of the companies are fighting it out based on price, product strategy gives an advantage for a product in other areas such as design, looks, automation, taste, and so on, thereby competing in other areas other than price.
Product Strategy Example
McDonald’s and Burger King are two fast-food giants competing with each other. Both companies released different product strategies when responding to changing attitudes about nutrition. They both reacted differently to the negative publicity about obesity and fast foods.
McDonald’s was quick to respond to the market and overtake competition by introducing a variety of healthier options.
Burger King, who had already anticipated the move, on the other hand, grabbed the opportunity to cherry-pick customers who are lesser health-conscious. In turn, they offered high-fat and high-calorie sandwiches by counter-advertising healthy choices. Burger King had anticipated that McDonald would not respond to this attack!!
See how each company, though in the same industry, work on different product strategies!!