With new products entering the market every day, there’s an ever-growing need for better product development. Things like the industry, type of product, features, and other factors come into play. That’s why you need an excellent product development strategy.

A lot of companies tend to focus on a product based on their customers. Some decide to offer a solution to an existing problem through their product. But, in all cases, until they have a proper product development strategy, there’s a good chance they’ll fail somewhere along the line.

You can have the best ideation process and product idea, but it’s not going to do much without a product development strategy. If youre interested in learning more via video then watch below. Otherwise, skip ahead.

In this article, we’ll go over what a product development strategy is and how you can develop a great one for your product.

Product development strategy enables product organizations to create a stream of innovative offerings that disrupt the competition and delight customers. New product development is often integrated into product strategy to emphasize innovation. Product development strategy is a subset of corporate strategy.

What is a Great Product Development Strategy?

Benefits of product development strategy

Having a strong product development strategy can support your business ability to turn an idea into a profitable product and then modify it to remain competitive within the market. Your product development strategy can reveal areas for improvement as well as which methods are most successful. To receive the most benefits from your product development strategy, consider how various techniques would work for each step and make adjustments based on your past experiences.

Why is product development strategy important?

Product development includes all aspects of producing innovation, from thinking of a concept to delivering the product to customers. When modifying an existing product to create new interest, these stages verify the potential success of the modifications at generating business. The seven stages of product development are:

Product development strategies

Some companies may focus on adapting their current products while others may mostly create innovations, but both types of product development require a clear strategy to implement. Here are some useful product development strategies for introducing a product and remaining competitive within your market:

Modify an existing product

Creating a new version of an existing product with slight changes can provide your market with the motivation to purchase an upgrade. Modifying one of your existing products and focusing on the updates in your marketing influences customers to try the newer version of the product. This strategy focuses on determining which features consumers would like to see improved and making those changes.

Increase product value

Many companies engage customers by including additional value with the purchase of a product. You can increase value by including a larger quantity of products, adding customer support or offering premium features. New customers may be drawn to your product because of the added benefits, while existing customers may purchase your products again to receive a better deal.

Offer a trial

Offering a free or less expensive sample version of your product can convince customers to try your product who might not have otherwise purchased the full version. This method relies on the quality of the product by assuming that many of the customers who experience the free trial will purchase the full version. Offering a trial can show customers how they can benefit from the rest of your products.

Specialize and customize

Many products can be specialized to target a specific customer group or customized to create a unique and personal gift. Allowing customers to personalize your product to fit their needs and lifestyle can encourage them to choose that product over a competitor who only offers a generic version.

Create package deals

You can encourage customers to purchase more of your product by creating package deals. This strategy exposes customers to a variety of your products through sample packs or assortments that could solve different problems for the customer. Package deals can also introduce customers to a product they may not have otherwise purchased and encourage them to buy it in the future.

Create new products

Another way to develop a product line is to create a new product that relates to your market. When creating new products, be mindful of what customers are looking for without discouraging them from buying your other products. Any new products should supplement what your existing product does for the customer instead of replacing the original, encouraging customers to buy multiple products from your business.

Change ideas

One strategy for developing a product can be to change your product idea. If a market is not responding to innovation, the company may consider devoting their resources to researching what that market wants. Not all ideas will result in a successful product, so a willingness to change ideas when needed can be an effective strategy.

Find new markets

Many products can be successfully sold in multiple markets. One product development strategy is to consider marketing an existing product to a different market or demographic. This could include targeting businesses instead of individual consumers, marketing toward a different age group or expanding your product geographically.

FAQ

What is product development strategy example?

Applying a Product Development Strategy to The Design Thinking Approach:
  1. Step 1: Empathize with users. …
  2. Step 2: Define the problem. …
  3. Step 3: Brainstorm potential solutions. …
  4. Step 4: Build a prototype. …
  5. Step 5: Test your solution.

What are the four product development strategies?

Proactive Product Development Strategies
  • Investment in Market Research. …
  • Investment in Research & Development (R&D) …
  • Investment in Entrepreneurship. …
  • Alliances. …
  • Company Acquisitions. …
  • Responsive. …
  • Defensive. …
  • Imitation.

What are the 5 stages of product development?

Product development strategy examples

Product development can often be as simple as taking an existing product, modifying it slightly and selling it into your existing market. This adds value for customers, who may well buy your new product, even though they have the current version. Apple is a prime example of this.

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