The product strategy is a plan that aligns the product with the wider business objectives.
Product management involves overseeing products.
The complexities of product design, including its definition, importance, features, and key elements, will be examined in this article.
Additionally, it will explore other successful business models and discuss the role that product management plays in the overall development process.
Product strategies can take many different forms, depending on the firm's objectives and market conditions.
Here are some common types:
The customer intimacy strategy:
This strategy prioritises building strong relationships with customers.
Companies can offer a personalised experience by tailoring their products and services to meet each customer's specific needs and preferences.
Ultimately, it differentiates the brand in a saturated market by creating a deep emotional connection with customers.
This approach fosters customer loyalty, encourages repeat business, and boosts positive word-of-mouth.
Market growth strategy: This strategy entails the identification and entry into new markets or the growth of the product's footprint inside existing markets.
Both of these strategies are referred to as market expansion.
The company's objective is to gain market share, broaden the client base, and capitalise on opportunities that have not yet been exploited.
Businesses are able to reduce the risks that are associated with being dependent on a particular market segment and stimulate overall business success by carefully putting their products in a variety of markets at the same time.
Cost leadership strategy: A cost leadership strategy is one that focusses on becoming a low-cost provider in order to attract clients that are price-sensitive.
In order to achieve their goal of capturing a major portion of the market, businesses that implement this approach strive to maximise their operational efficiency, decrease their manufacturing costs, and provide competitive pricing services.
When taking this strategy, it is necessary to preserve product quality while paying close attention to cost management in order to fulfil the requirements of the consumer.
Innovation strategy: An innovation strategy is centred on differentiating the product by utilising ground-breaking technologies or distinctive characteristics.
Companies can get a competitive advantage, attract early adopters, and continue to capture the attention of the market if they remain at the forefront of technical breakthroughs and maintain this position within the industry.
This tactic not only caters to the requirements of the existing market, but it also establishes the product as a pioneer, which is the driving force behind its long-term success.
Product Lifecycle method: This method entails designing specialised tactics for each period of a product's lifecycle, beginning with the launch of the product and ending with its decline.
It's possible that during the launch phase, the primary focus will be on establishing a market presence and increasing brand awareness.
When the company is growing, the focus shifts to increasing its market share, and when it reaches maturity, the centre of attention shifts to differentiating its products.
The final phase of the product's lifecycle is the decline phase, during which strategies may include product diversification or slow phasing out.
This ensures a planned reaction to the dynamics of the product itself.
The product strategy serves as a guiding principle for decision-making throughout the whole process, from ideation to launch and beyond.
Each stage of the development lifecycle is impacted by its influence on the product roadmap, feature prioritisation, and resource allocation.
Teams may ensure a unified and focused approach by aligning the product strategy with the development plan.
This increases the likelihood of the product being successful in the market where it is being sold.
When it comes to good product management, having a product strategy that is clearly stated is the most important factor.
In addition to fostering innovation and ensuring flexibility in changing markets, it acts as the guiding force that ensures product development is aligned with company objectives.
Until then, think, eat, sleep, and dream about branding!
- *Dr Farai Chigora is a businessman and academic. He is the head of business science at Africa University’s College of Business, Peace, Leadership, and Governance. His doctoral research focused on Business Administration (Destination Marketing and Branding Major, UKZN, SA). He can be contacted for feedback at [email protected] or via WhatsApp mobile: +263772886871.
- *Dr Tabani Moyo is an extra-ordinary researcher with the University of North West, South Africa’s Social Transformation School. He holds a Doctorate in Business Administration (Research focus on new media and corporate reputation management, UKZN), chartered marketer, fellow CIM, communications and reputation management expert based in Harare. He can be contacted at [email protected] @TabaniMoyo (X)
