Product Development Strategy

A successful product placed in the market symbolizes business growth. But any product cannot be successful without proper development. To work on a product development you must know three things about the product: what, for whom and why? These three questions are the base of any product development strategy. Now, Let’s understand product development strategy better!

Product development is the process of transforming a vision into a real product for users. For this translation a roadmap is required, this roadmap is the product development strategy. A guide that can be referred to in times of problem. Every company needs a product development strategy as per their requirement. 

To work out a strategy, the vision for the product must be clear. A vision converted into strategy, keeping the key components in place is the roadmap to a successful product. These key components are:

• Audience research
• Product competitors
• Business model
• Market research and environment

For a successful business the product must leave its mark amongst the right audience. To reach the hearts of the users, a product must satisfy their needs. So the first step of developing a product is identifying the users and listing their requirements. For this, you can ask for customer feedback and user testing sessions.

Studying your competitors in the market is as important as building a product. Conducting a complete SWOT analysis of your competition always puts you a step forward. This SWOT analysis gives you an insight into the market competition along with an analysis of your own product. You can compare their products, find the weakness in them and eliminate them in your product.

A product must be designed and developed to generate ROI and meet the vision of the company. To run a business profitably a clear business model is crucial. A business model must be a quality plan that identifies the targeted markets, understands the product and captures all the expenses at any front.

The macro environment of the market must be well-studied in order to calculate its long term and short term effects on the market. You must develop a strategy that is flexible and can change with the changing time. Understanding what is most important to the customer and business. The conditions must be well understood to minimize the risk.

Cost strategy :
As the name suggests, the cost strategy focuses on making the best product at the lowest price. Here the strategy is completely focused to work on making the product cost effective. This strategy works well for the industry, where the customer’s loyalty keeps on shifting.
For example, take cleaning items. People do not care about the brand of a broomstick, rather they shift their focus on buying the cheaper one. So here you can compete by providing the customers with cheaper and better products.

Differentiation strategy:
Another strategy lies in working on a unique product. A market for luxury product booms, for it has unique and groundbreaking features. Be it a regular product or a luxury one, the success lies in its value for the perceiver.

Focus strategy:
For a company that acquires a larger clientbase in the market, this strategy can help. Here, a group of people is selected and the focus is turned to create a product that can match their persona or their needs. This can actually help acquire new clientele in the market.

Quality Strategy:
The strategy works for those who have clients that demand quality. When the company works to create the finest quality, the price increases naturally, but it does not alter the demands of those who believe in investing in the quality. Consider luxury brands, despite being expensive people invest in them, because they believe it is worth an investment.

Service strategy:
For many customers, a company’s response to the complaint is a deciding factor. People take the response time and the assistance from the company very seriously. A better response to the customer and their problem can draw better sales.

Examples of Product Development strategy:

IKEA product development strategy:

This international brand works on maintaining standard quality at a cheaper price. It works on cost strategy. It works constantly to cut down the cost of the product that ultimately increases its sale. It has a brilliant supply chain management that supplies the product in bulk to several parts of the globe. It also deals in home furnishings. It has a sustainable marketing strategy along with a well-organized supply chain.

Netflix product development strategy:

Netflix was originally a DVD rental platform which is one of the biggest OTT platforms globally. The progress that Netflix has made is exceptional. Netflix has worked out a brilliant product development strategy. They progressed in a way that could overcome the friction of the user. Netflix identified the need of the customer and developed the product accordingly. Netflix has continuously tied its strategy to the customers’ needs and company’s benefit. It has continuously evolved and updated to sustain in the changing market conditions.

Conclusion

Now, we can conclude that product strategy is the key to a successful product development. If any product development has to succeed, it must work uniquely. It must be innovative and away from the crowd. A suitable client base must be chosen to enter any market. The team must work on vision and finances simultaneously. The research work must be taken seriously and all aspects of the market must be studied well.