You know, product strategic options are kind of like game plans we set to score big in the business world. At their core, they’re about carving out the best path to reach our goals, all while navigating the ever-shifting landscapes of markets and stakeholder expectations. Think of them as the roadmap guiding us, especially if you’re donning the hat of a Product VP, Chief Product Developer, or Chief User Experience Officer. Now, I’m about to share five critical strategic viewpoints that you absolutely need to consider and monitor closely in your role.

Top 5 Product Strategies are here:

1. Product Strategic Option 1: Market Penetration – Dive Deeper, Not Wider
2. Product Strategic Option 2: Market Development – Spreading Your Wings
3. Product Strategic Option 3: Product Development – Crafting Tomorrow’s Big Thing
4. Product Strategic Option 4: Diversifying & Standing Out from the Crowd
5. Product Strategic Option 5: Pinching Those Pennies: The Art of Operation Cost

It’s all about leveraging what we’ve got, be it our resources or strengths, to give us that competitive edge in the long run. And here’s the thing: these strategies aren’t set in stone. They can overlap, change, or combine based on the game’s changing rules. Making the right strategic choice isn’t a mere toss-up. It involves taking a deep dive into both our organization’s capabilities and the market’s ever-changing pulse. So, let’s gear up and delve into these strategic insights that promise to set you on the right path.

Product Strategic Option 1: Market Penetration – Dive Deeper, Not Wider

Alright, imagine being at your favorite pool. Some folks are content just lounging in the shallow end, while others? They want to explore the deep end, dive in, and claim that territory. That’s kind of what Market Penetration is all about. Instead of looking for a new pool or trying out different swim styles, it’s about making the most of the pool you’re already in.

So, let’s break down how to own that deep end:

• Price Play: Think about it. If I offered you your favorite chocolate at a lesser price, wouldn’t you be tempted to buy two instead of one? Slashing prices, even a tiny bit, can draw in a crowd. But a heads-up – it’s like holding your breath underwater. You can’t do it for too long. And for those bulk buyers? Offer them a neat volume discount. You sell more, they save more. Win-win!
• Promotion Power: This is about shouting from the pool’s diving board. Boost your advertising, run some PR magic, or throw in sales promos. Make sure more people know just how awesome your pool (product) is.
• Pimp Up Your Product: Let’s keep it real. Nobody wants the same old floaties every summer. By tweaking your product or sprucing up its quality, you make sure your customers always have something fresh to look forward to.
• Dive into Distribution: Consider this – more diving boards, more swimmers. Whether it’s setting up shop in a new part of town, jazzing up your online store, or partnering with that trendy retailer everyone’s talking about, widening your distribution channels is a surefire way to deepen your market reach.
• Customer Experience is King: Remember the lifeguard who always had your back? Be that for your customers. Uplift their shopping journey, throw in some loyalty perks, or simply be there when they need you. Ensuring a smooth sail for your customers can turn them from casual swimmers to loyal divers.

Now, as you ponder over these strategies, always remember it’s about making the biggest splash in the pool you’re already familiar with. Dive deep, make waves, and own your territory!

Product Strategic Option 2: Market Development – Spreading Your Wings

Imagine you’ve mastered the art of making the best lemonade in your neighborhood. Every local resident is a fan. Now, what’s next? Sticking to the same streets or taking your stand to the next town, or maybe even to a big city festival? That’s what market development is all about – taking your tried-and-true lemonade and introducing it to new folks.

Here’s how you can expand your lemonade stand horizons (or, you know, whatever your product is):

• The Geographic Gallop: Think bigger! And by bigger, I mean, taking your product beyond your backyard. Maybe it’s setting up a new store across state lines, or even jumping over oceans. Remember, every new place has its quirks. From understanding local tastes to navigating the maze of regulations, expanding geographically is both a thrill and a challenge.
• Demographics Dive: Let’s say teenagers love your lemonade. Ever thought about making a “grown-up” version for adults? Perhaps a fancy glass bottle or a lemonade-mimosa mix? Adjusting your product to appeal to different age groups, genders, or other demographics can be a game-changer.
• Discovering New Uses: Like that moment you realized your hair gel doubles up as a great shoe polish (okay, maybe not that). But like baking soda wasn’t just for cakes and turned into a household cleaning staple, there’s always a chance to reinvent the uses of your product.
• Partnerships and Pow-wows: Join forces! Collaborate with brands or companies that complement your product. Maybe your lemonade stand partners with a pretzel seller? It’s about doubling the power and reaching twice the audience.
• The Digital Domain: If your business is more brick than click, how about taking the plunge online? An e-store, social media shoutouts, or even international shipping can bring in crowds you didn’t even know were waiting for you.

In a nutshell, market development is like throwing a wider net – in new waters. You’ve got the bait, now find the best pond and see what you catch!

Product Strategic Option 3: Product Development – Crafting Tomorrow’s Big Thing

Ever wondered how we got from bulky cell phones to sleek smartphones or from simple burgers to gourmet avocado-infused burger delicacies? The answer lies in product development. It’s all about reimagining what you can offer, making it better, shinier, and, most importantly, super relevant to your market.

So, you’re considering a new product for your brand? Let’s break down how you can go about it:

• Become the Market’s BFF: Before you start, ask your market what they’re missing. Do they need something faster, stronger, or sparklier? Dive deep into research, play detective, and pinpoint what your audience is secretly (or not-so-secretly) yearning for.
• Blueprints & Brainstorms: Now that you’ve got an idea, it’s time to give it shape. Sketch, prototype, discuss, repeat. Remember, every iconic product started with a wild idea and a piece of paper. This stage is all about experimenting and refining.
• Trial Runs & Tweak Time: Let’s face it, your first shot might not be the bullseye. So, test your product. Get feedback, face the music (even if it’s a bit off-tune), and tweak till it’s just right.
• Go Big or Go Home: Once you’re sure it’s a winner, roll out the red carpet and launch it with a bang! Make sure your team knows the product inside out and get ready to introduce your baby to the world.
• Keep the Ball Rolling: Launching isn’t the end; it’s just the beginning. Stay on your toes, listen to your users, and keep refining. A product is like a good story, it evolves with time, and there’s always a sequel around the corner.

In essence, product development is about taking a leap of faith, backed by heaps of research, a sprinkle of intuition, and a dash of bravery. Ready to jump?

Product Strategic Option 4: Diversifying & Standing Out from the Crowd

So you’re doing great in your niche, but ever thought about trying something new? Or maybe you’re looking to stand out in a sea of sameness? Enter the exciting realms of diversification and differentiation.

1. Diversifying: New Lands and New Adventures

Related Diversification: It’s like taking what you’re good at and stretching it just a bit. Say you’re a kingpin in the car manufacturing world; why not try your hand at motorcycles? You’re already familiar with the dance, now just change the tune a bit.

Unrelated Diversification: This is the wildcard! Like that car maker suddenly deciding to launch a line of organic snacks. A surprise move, sure, but if done right, it’s a game changer!

Diving into Diversification:

• Spotting The Gold: It starts with a hunch or some solid market research. Where’s the untapped potential? Where can you truly shine?
• New Play, New Rules: Sure, it might feel like reinventing the wheel. But creating new products or services for a different ball game is exhilarating.
• Joining Forces: Sometimes it’s easier to ride on someone else’s coattails. A smart acquisition or a strategic partnership might just be the shortcut you need.
• Gearing Up: New horizons often require new tools. Whether it’s tech, talent, or infrastructure, be ready to invest.

2. Differentiation: Be The Purple Cow

In a world where everyone’s vying for attention, you need to be, well, memorable!

• Cool Features, Bro!: Like Apple’s notch or Tesla’s falcon wings. It’s that X-factor that makes people go, “Wow!”
• Quality Is King: Whether it’s the product, the service, or even the after-sales, top-notch quality is often a surefire way to stand out.
• All About The Brand: Names like Louis Vuitton aren’t just brands; they’re a statement. It’s about prestige, baby!
• Tech It Up: If you’ve got a tech edge, flaunt it. It could be your secret sauce.
• The Experience: Sometimes, it’s not just about the product but how you make your customers feel. A smile, a thank you note, or maybe just a seamless online checkout.

So, whether you’re diving into new territories or making a mark in your own backyard, it’s all about taking risks, being unique, and always, always listening to the beat of the market.

Product Strategic Option 5: Pinching Those Pennies: The Art of Operation Cost

You know that moment at the grocery store, when you’re trying to decide if the off-brand cereal is just as good as the expensive kind? Well, businesses face a similar question. How do they deliver quality without breaking the bank? The answer: mastering the art of operation cost.

1. Scale Matters: Think Big!

• Economies of Scale: Imagine you’re baking cookies. Making a big batch is usually more cost-efficient than several small ones. It’s the same with products. The more you produce, the cheaper each unit becomes. It’s all about spreading out those pesky fixed costs.
• Economies of Scope: Now imagine you’re baking cookies, pies, and cakes. If you can use the same oven, utensils, and ingredients for different treats, you save a bunch. Similarly, businesses can cut costs by producing a range of products using shared resources.

2. Run a Tight Ship:

• Operational Efficiency: Think of this as spring cleaning, but for businesses. It’s about cutting out the fluff, streamlining processes, and making sure every cog in the machine runs smoothly. Whether that’s fine-tuning the supply chain or embracing tech to reduce manual work, efficiency is key.
• Design and Manufacture with $$$ in Mind: It’s like fashion – looking good doesn’t always mean wearing the most expensive outfit. It’s about choosing the right materials and design that give the best bang for your buck. Similarly, savvy businesses design products that look great, work great, but don’t cost a fortune to make.

3. Wheel and Deal:

• Bargain with Suppliers: It’s like haggling in a market, but on a larger scale. When you’re a big player (or even a smaller one with good negotiation skills), you can strike deals that benefit your bottom line.

So next time you’re debating cereal brands, remember: it’s not always about the price tag. It’s about delivering value without skimping on quality. And that, dear reader, is the essence of mastering operation cost.

In a Nutshell: The Five Pillars of Product Strategy Thinking

Alright, let’s rewind a bit. From all our chit-chat, we’ve untangled the web of product strategy into five key areas:

• Market Penetration: Dive deeper into your existing market, lure in new customers, and keep the regulars coming back for more.
• Market Development: Stretch those boundaries. New places, new faces. Expand your horizons and bring your products to fresh territories and demographics.
• Product Development: Innovate, innovate, innovate! Keep the surprises coming and unveil new products for your loyal customer base.
• Diversification and Differentiation: Mix things up! Venture into new territories with novel products, or just jazz up what you’ve got to stand out from the crowd.
• Operation Cost: It’s not all about cutting corners, but more about smart spending. Make every penny count, and deliver value without breaking the bank.

Now, here’s the kicker. Having a strategy isn’t just about making plans for tomorrow. It’s the foundation for long-term success. In the unpredictable world of business, it’s your north star, guiding you through the fog.

But remember, one size doesn’t fit all. Think of it like shoes; what’s comfy and stylish for one might be tight and tacky for another. So, businesses, big or small, must pause, assess their position, and pick the strategy (or strategies) that feel just right.

In essence, your product strategy is the playbook for your business’s future. Draft it well, keep revisiting, and make sure it evolves as you grow.

To long-term growth and success! 🥂