A solid product development strategy may help your company transform a concept into a successful product or service, which it can then tweak to stay competitive in the market. It might reveal areas that need to be improved as well as the most effective ways to get the product to the market. To receive the most benefits from your product development strategy, consider how different approaches and techniques would work for each step and adjust based on past experiences.
What is a product development strategy?
The methods and processes used to deliver new items or innovations to consumers are referred to as product development strategy. It can also refer to the process of modifying existing products. From generating a concept to selling products to clients, there are various processes involved in developing a product. Each stage requires a strategy to be successful and generate revenue for a business.
Benefits of a Product Development Strategy
A good product development strategy has proven to be valuable to a business and helps companies reach the highest level of value, in terms of profitability and competition in the markets. Its benefits include:
Risk Mitigation: A product development strategy increases the company's chances of developing a product that consumers want and need. The strategy should be founded on extensive study on the target market, competitors, and target audience. This eliminates guesswork and allows you to rely on accurate facts.
Resource Saving: As we mentioned before, product development strategy explains what to build and what not to build. This will allow the company to focus their resources on the right things and areas.
Product development strategies that could help in achieving optimum value
Here are some useful product development strategies for introducing a new product or modifying an existing product while remaining competitive within your market:
Modify an existing product - Creating a new version of an existing product by modifying it can provide your consumers with the motivation to purchase an upgrade. Customers are more likely to test the newest version of a product if you modify one of your existing products with a focus on the features consumers would like to see improved and making those changes. For example, Nigerian Breweries created AMSTEL Malt from Maltina with a focus on health-conscious consumers.
Offer a trial - Here, the company offers a free trial or sample version of your product to customers enabling them to experience the benefits of the product. This method relies on the assumption that many of the customers who experience the free trial will purchase the full version.
Specialise and customise - Allowing customers to customize your product to match their own demands and lifestyle might persuade them to pick it over a competitor's generic version. Some customers value exclusivities, which may be used to set your business apart from the competitors.
Change ideas - The ability to adapt or tweak ideas as required can be a successful strategy. If a market isn't reacting to current innovations, a company can consider committing resources to figuring out what that market needs and bringing new items to market, as well as altering or tweaking original concepts. New products need the identification of a need/want and the subsequent development of a solution to make life easier, safer, or more fun.
Find new markets or expand market segmentation - Many products may be offered in various markets or market segments with success. One rationale for developing a product development strategy is to think about selling an existing product to a different demographic, market, or market segmentation. For instance, instead of targeting individual customers, market to businesses, a particular age range or a certain generation that has previously been disregarded.
In summary, a company can achieve optimal value in their product(s) through their product development strategy by
Keeping the product development strategy solution-oriented and customer-focused.
Researching and understanding their target market to be able to remain competitive.
We at OVAC Group can develop a product development strategy for your business or product(s). Email us at: enquiries@ovacgroup.com for a free consultation with our team specialists.