This article includes:
- What is B2B Product Launch Strategy?
- What is Technology Product Strategy?
- What is Product Line Expansion Strategy?
- What is Product Mix Strategy?
- What is Product Repositioning Strategy?
- What is Product Specialization Strategy?
- What is a Product Line Strategy
- What is Digital Product Strategy
- What is Partial Product Strategy?
- What is Product Focus Strategy?
- What is Multi-product Strategy?
Many factors go into a successful product launch. And one of the most important is having a clear product strategy.
This article will outline the different types of product strategies commonly used by businesses. Each type has its benefits and drawbacks, so choosing the right one for your company and products is essential. Stay tuned for more information on how to create a winning product strategy!
Melissa Perri explains product strategy as “a system of achievable goals and objectives that work together to bind the team around desirable outcomes for both your company and your consumers.”
Types of Product Strategy for Businesses
There are several product strategies. Some common examples include:
What is B2B Product Launch Strategy?
Companies that sell products directly to other businesses use this type of product strategy. The goal here is usually to provide an easy way for customers who need your product or service quickly, at a low cost, with little effort on their part (and vice versa). Because these types of purchases are typically made through a third party (such as an online retailer), there is less risk involved than if you were to sell directly from your website.
This strategy can be effective when it comes time for customers who need something right away but don’t have access to physical stores nearby or an internet connection because they may not want the hassle of ordering products directly from a website.
How to Effectively Launch a B2B Product?
To successfully launch a B2B product strategy, it is vital to understand the needs of your potential customers and tailor your product or service accordingly. You’ll also want to make sure that your sales and marketing teams are well-trained in how to sell your product.
What is Technology Product Strategy?
This product strategy is aimed at companies that make innovative, cutting-edge products. The goal is to create a unique product that appeals to a specific niche market. The key here is to make sure that you have the resources to support and market your new product properly. Otherwise, it’s likely to fail.
Technology Product Strategy is helpful for businesses to target a niche market and attract customers who need a specific type of product.
Following Are the Elements of the Technology Product Strategy:
Selecting the Technology Field:
The first step is selecting the technology field based on your product and customers. Make sure that you are aware of the other technologies that could be an obstacle and other technologies that might be helpful to launch your existing tech product.
Performance and Competition:
This step will require you to assess the technical performance versus the competition in the market.
Technology Pioneers V/S Technology Followers:
Determining the timing of your field will set you up for either being a tech follower of tech or a leader/pioneer. Decide the role your tech field wants to reach for. A tech leader or pioneer develops the technology, whereas a tech follower either buys it or becomes a part of the development afterward.
If you are looking for innovation, then your tech product strategy must be to be a tech pioneer and vice versa in the case of ‘Cost leadership’.
Utilization of Tech Product:
Internal and external utilization are two forms of usage that can be distinguished. Internal usage refers to using technology for business purposes, such as keeping track of your products. External usage is a term used to describe tech partnerships, sales, and licensing.
Evaluation of the Technological Fields:
You’ll need to decide if your firm can develop a new tech from the ground up whether you want to invest or sell the latest technologies.
Based on the utilization of the tech, decide the source through which the tch can be distributed.
Having a direction and a technology product strategy in place can help your company from crashing when economic times are tough. Product and technology strategy goes hand in hand because it depicts what technology started needs to be in place to plan the product strategy.
What is Product Line Expansion Strategy?
A marketing strategy like product line expansion refers to adding new products or services to an existing product line.
This strategy is usually used when several similar products need to be added together. For example, if you sell hair care products like shampoos and conditioners, it would make sense to keep them all under one umbrella brand to easily find them.
Suppose you are going to use this strategy for your company. In that case, there must be a competitive advantage or unique selling proposition to separate the products from others on offer by competitors.
This strategy can also help companies diversify their portfolio and reduce risk if something happens with one product line, such as a recall.
Two Types of Product Line Expansion Are Horizontal and Vertical
This type of expansion is when a company adds products similar to what they already offer (price and quality). For example, if you sell women’s clothing, you might add men’s clothing to your product line.
This type of expansion is when a company offers more variety (fluctuations in price and quality) within their existing product lines. For example, if you sell women’s clothing, you might add different sizes or colors for your current products.
Benefits of the Product Line Expansion Strategy for the Company Are :
- It can increase the number of sales and profits in the short term.
- It is a low-cost way to grow your company without having to spend money on new product development or marketing campaigns.
However, there are some disadvantages, such as diluting brand equity if done improperly; customer confusion may result from too much variety within one product line; increased competition from other companies offering similar products at lower prices.
What is Product Mix Strategy?
Product mix strategy is also known as flexibility strategy, product assortment, or product portfolio.
The product mix is an integral part of any business’s overall product strategy. This type of strategy aims to create a product mix that meets the needs of as many customers as possible. This can be achieved by offering products in several different categories or by creating a product line that targets specific markets. When all the product lines and individual products are grouped, they form a product mix.
Some of the factors that affect a product mix strategy are profitability and policy of a company, the capacity of a production plant, economic and business situation, production costs, government rules and regulations, demand and competition in the market, etc.
The Four Dimensions of a Product Mix Strategy Are as Follows:
Product line width: The number of product lines that a company offers
Product line depth: The number of product variations within each line
Product line Length: The number of products in a product mix
Consistency: This refers to the relation of product lines to each other.
Using a product roadmap while laying out a product mix strategy is advised.
A simplified and practical example of a product mix strategy would be Coca-Cola. Assuming coca-cola has two product lines of Juices and soft drinks. They have products such as Coke, Sprite, Fanta, etc. In the juices section, products such as Minute Maid juice, Maaza Juice, etc will be included. This refers to the product mix.
This type of marketing strategy involves changing customers’ perception of an existing product by making it more appealing than before through advertising campaigns or promotions aimed at increasing sales volume over time (e.g., adding new features). It can be used when there are no competitors offering something.
A product mix strategy is fundamental because it helps companies find different ways to sell products that they already have. This means more sales and a more significant market share for your organization, which can also lead to increased profits down the road.
William Stanton and Others Provide Eight Product Mix Strategies.
Expansion of Product Mix: This is done to enlarge the market by introducing more products in the same category.
Contraction of Product Mix: Contraction or elimination of products is done to decrease the market size. When a product line or items aren’t profitable, the company eliminates those items.
Improvement in existing products: Sometimes a company may decide to improve an existing product rather than bringing out a completely new one.
Adding variations to the product line: Here, the company decides not to add product lines but to expand the existing ones.
Varied uses of products: This product mix strategy focuses on using the existing products differently. The company convinces customers to use one product in various ways.
Differentiation of the product: By using different marketing, sales, etc., companies convince customers of the advantage of buying their products over the competitors’.
Trading Up: This strategy adds premium and high-priced quality items to their existing product lines, and this strategy helps market the cheap products.
Trading down: This technique involves putting inexpensive goods in the higher-priced product line. It allows customers on a budget to purchase items that fit within their financial constraints.
What is Product Repositioning Strategy?
Sometimes companies find it challenging to keep up with the changes in technology, so they have to reposition their products. This might mean changing the way the product is advertised or sold.
Product repositioning is also done when a company wants to introduce a new product and make sure that the old products don’t interfere with the sales of the new product.
How Is Repositioning a Product Helpful?
- It helps in identifying new market segments for the product.
- It helps create a more distinct and differentiated image of a company’s product from that of its competitors.
- Helps in increasing the sales volume by adding value to existing products without incurring extra costs.
- It helps in identifying new customers for existing products.
Types of Product Repositioning:
Product Line Repositioning:
The product line is extended or reduced, and the consumers are targeted again. This can be done by adding a new product to the same category (e.g., Apple added a Macbook Pro laptop when it was repositioning its product line) or by dropping an old product from the line (e.g., Coca-Cola dropped Surge from its product line).
The market segments are redefined, and new markets are targeted. This can be done by targeting a different audience than before or using a different sales approach for the same product (e.g., a company in India might reposition its products by selling them online instead of offline).
The brand image changes and new markets are targeted. This can be done through advertising campaigns or promotions to increase sales volume over time (e.g., adding new features). It can also involve changing the packaging for an existing product.
What is Product Specialization Strategy?
This strategy focuses on a specific market segment and develops products or a product line that appeals to them. The company might decide to discontinue its other products and focus only on specialized products.
Product specialization strategies are often used by companies with a limited budget and need to target specific customers to be successful.
Product specialization can be done by targeting a specific demographic (e.g., seniors, young adults), by focusing on a particular need or want other products aren’t meeting that (e.g., low-cost products, luxury products), or by catering to a specific geographical area (e.g., local products).
How Is Product Specialization Strategy Helpful?
- It helps in focusing on the target audience.
- It allows companies to focus their resources and attention on specific products or customers, thus increasing efficiency.
- It helps in developing a solid relationship with targeted market segments. This allows for better customer service and support when needed.
- It allows for better customization of products to meet customer needs.
What is a Product Line Strategy?
When a company decides to sell multiple products that share some standard features, this is called a product line strategy. This product strategy can be successful because it allows businesses to reach more customers who may not have found those products before. Having different versions available means that consumers have a more comprehensive range of products from which they can choose.
In a product line strategy, the produced products align with each other. For example, in the cosmetics industry, many different products can be sold, including skincare, haircare, makeup, etc.
A line manager handles all products within the line and ensures that all products are cohesive. The line manager will be responsible for the marketing of all products and the overall brand image.
The Benefits of a Product Line Strategy Include:
- Increased market coverage as products can be sold to new markets that weren’t targeted before
- Can create brand loyalty as customers feel like they’re getting more for their money as they can buy multiple products.
- It helps to build brand awareness and recognition within the market. It is much easier for consumers if they see one product they like, then other products in the same range will be more appealing to them.
The most essential thing in a product line strategy is to have a clear plan and ensure that your new strategy aligns with your company’s goals. If you’re not sure where to start, consult with an experienced marketing professional who can help you create a product line that meets your customers’ needs.
A product line strategy is not suitable for all businesses, as it does require a lot of resources to be put into marketing and managing the products. The company must understand their target market and what they want from their products.
What is Digital Product Strategy?
Employing a digital product strategy refers to attracting, selling, or serving your target audience via the digital platform. It is about designing, developing, and launching digital products that solve customer problems.
Digital strategy should not be confused with online or digital marketing, which are tactical executions supporting the overarching strategy.
The goal of digital product strategy is to create a delightful experience for users, so they keep coming back. It’s also to find ways to monetize the product so the company can continue investing in and improving it.
For the success of any company, a digital product strategy can be beneficial. This strategic plan can be monitored and communicated via a product roadmap.
In the past, having a digital product strategy was simply one of the many methods for executing a company’s broader product strategy. Today, right from the CEO to the CTO is responsible for employing the digital product strategies in the company.
‘All successful digital initiatives begin in the C-suite.’ Everyone contributes in an equal way. The team works together, from getting everyone on board with the new digital world to making decisions regarding technology investments.
What is Partial Product Strategy?
When a company launches a new product, it may not have the resources to develop and market it fully. In these cases, a partial product strategy can be used, which involves selling only part of the product’s features or releasing it in stages.
This type of strategy is often used when companies introduce a new version of an existing product or service. For example, if you have a software application already in use by many customers and want to introduce new features, then releasing an update with some of these features might be more appropriate than launching the whole thing at once.
If you plan to use this strategy for your business, make sure it aligns with your overall business goals. For example, you may want to introduce the new features in stages, so customers have time to adjust their workflows and processes before releasing them all at once.
A partial product strategy is also used by companies trying out different things without committing too much money or resources upfront. This allows them to see what works and doesn’t before entirely investing in a product.
Benefits of Partial Product Strategy Include:
- Savings because only part of the product is being developed and launched, so there are fewer costs involved.
- It allows customers to get used to new features over time rather than all at once, which may be overwhelming or confusing for some people who don’t have much experience with technology products.
- This strategy also gives companies more control over their product launches since they can decide when to release new features and updates. This means that customers won’t get frustrated by having constant updates pushed onto them without warning about what’s coming next!
- A partial product strategy allows businesses to test out different things before committing fully, which gives them more flexibility for future versions of their products or services.
- If you have a limited budget and need some time to build up capital before introducing your product thoroughly, then this might be the right option for you!
What is Product Focus Strategy?
Firms that use a product-focused strategy keep up with the competition by updating their goods based on market success rates. A product-focused strategy is commonly used to produce, improve and enhance the existing products rather than focusing on new ones.
This type of strategy can be helpful for a company that has been in business for many years but wants to keep up with current trends or technology changes. For example, an electronics firm might decide to upgrade its product line annually and focus on a specific area, such as wearable technology.
Many companies use this type of strategy to keep up with the competition. Additionally, it’s essential to have clear goals for what you want your product to achieve, and this will help you stay focused on these goals when developing your product line.
Benefits of Product Focus Strategy Include:
- It allows companies to maintain their competitive edge by focusing on what they do best while keeping up with changing trends and technology advances in other areas like manufacturing processes or materials used for products.
- Enhancing products can also increase customer loyalty because customers know they can depend on the company to improve its offerings over time.
- This type of strategy typically results in increased profits, allowing companies to continue selling older versions of their products while introducing new ones.
- Firms that use this strategy often have a more streamlined product line, making it easier to manage and produce
- Customers are more likely to be familiar with your products, as they have been around for a while, so they may be more likely to buy them.
- This type of strategy also helps businesses stay relevant to consumers by offering up-to-date products and meeting current market needs.
- It allows companies more control over their production processes, resulting in a higher quality product or service at lower prices than competitors who are not using operations management strategies like this one.
- When implemented correctly, this strategy can help reduce costs associated with production processes such as material waste or worker errors that could lead to defects being found in finished goods before they even reach consumers’ hands!
Product Focus Strategy in Operations Management
Using a Product focus strategy in operations management keeps the cost low and focuses on quality to ensure that products are produced efficiently. When a company decides to use this type of strategy, it means that the resources within the organization are used to improve and manufacture products.
The goal is to have an efficient production line where workers can produce products with little waste and low cost. To do this, companies must plan ahead of time to know what needs to be done, and they also need to manage their resources for this strategy to work successfully.
Product Focus Strategy Examples
- A company that manufactures and sells camping gear might focus on redesigning its tents based on customer feedback.
- Another example would be a manufacturer of children’s toys who decides to improve the quality of its plastic materials used in products.
If you are using this type of strategy, make sure that your team designs, manufactures, and produces products that meet customer needs.
What is Multi-product Strategy?
A multi-product strategy is one where a company produces many different products or services. This helps the company stay competitive in a variety of markets and also allows them to appeal to different types of customers.
When companies use this type of strategy, they often have a wide range of products that can be used for different purposes.
The ability to diversify your product offerings means that you’ll be able to appeal to a broader range of customers and increase sales over time because people will want what they need rather than just buying from one company all the time.
- Ability to produce more goods at one time, which means less waste due to excess production capacity.
- Diversification allows a company to remain competitive in multiple markets by offering products that meet specific customer needs.
Multi-product Strategy Example:
A company might produce different types of cars for various purposes, like an SUV or sedan.
Another example would be a company that manufactures different types of phones like an iPhone, Android phone, or Windows phone.
If you are using this type of strategy, make sure that each product can stand on its own and unique selling proposition (USP).
Additionally, it’s crucial to have a team dedicated to developing each product because they will need to keep up with the demands of their customers so they can continue producing quality goods at competitive prices.
Product strategy is an integral part of any business. Using the correct type of product strategy can increase your market share and revenue while also aligning your company’s goals with the products you offer.
You may also be interested in:
- 6 Key Ingredients for a Successful Product Strategy
- Customer-Led Product Strategy: The Future of Customer Service
- Product Strategy vs Go-to Market Strategy
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- Idea generation (Ideation)
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- Initial design.
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- Step 4: Launch.
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