7 success factors for a strong product strategy
What is a product strategy?
Definition and objectives
A product strategy is the long-term plan for successfully positioning, developing and distributing a product on the market. It determines the target group, the unique selling proposition (USP), the pricing strategy and the market and distribution channels.
The aim of a product strategy is to manage product success in a targeted manner – from the idea to market maturity and beyond. It serves as a compass for product development, marketing and sales.
Differentiation from marketing strategy and business strategy
While the marketing strategy focuses on communication and addressing customers and the business strategy focuses on the company as a whole, the product strategy relates directly to the individual product or product line. It acts as a bridge between market requirements and internal resources.
Why is a well thought-out product strategy crucial?
Understanding the product life cycle
Products go through phases: Introduction, growth, maturity, saturation and decline. A smart product strategy helps to actively shape each phase – be it through innovations, repositioning or targeted withdrawals.
Strategic alignment for market needs
Customer expectations are changing rapidly. Those who align their product strategy with this will remain relevant and achieve sustainable growth. Without a clear strategy, development is often aimless – leading to costs and frustration.
The 7 key success factors of every product strategy
1. focus on customer needs
A successful product strategy starts with the customer. What problems do you want to solve? What is the specific benefit for the target group? Tools such as jobs-to-be-done or persona models help with structuring.
2. clear positioning
How do you differentiate yourself from the competition? A strong positioning answers why customers should buy your product – with simple, clear messages.
3. competitive analysis
No strategy without market knowledge. Successful companies continuously analyze what competitors offer, how they communicate and where opportunities for differentiation lie.
4. unique selling proposition (USP)
Your USP should be unique, comprehensible and relevant. It is not enough to be “high quality” – everyone expects that. What makes you really different?
5. roadmap and timelines
Strategy also means planning: Which milestones are to be reached and when? With roadmaps and milestone plans, you create clarity for teams and investors.
6. cross-functional coordination
A product strategy affects many departments: Product development, sales, marketing, service. Only those who integrate all stakeholders can successfully implement the strategy.
7. data-driven monitoring
Use KPIs, customer feedback and market data to adapt your strategy. Successful strategies are dynamic, not static.
Common mistakes in product strategy
Unclear target groups
“Our product is for everyone!” – this statement leads to chaos. Without a target group, there is no clear value proposition, no marketing focus.
Lack of market validation
Many companies develop products in secret. Only the market reveals whether there is a need for them. Early feedback saves costs and nerves.
Reactive rather than proactive thinking
A strategy is not a fire department operation. It should proactively recognize trends instead of merely reacting to changes.
When does external product strategy consulting make sense?
Signs of a lack of strategic competence
- Product sells poorly despite technical excellence
- Teams work without a clear roadmap
- Marketing and product goals contradict each other
Advantages of external consulting teams
- Objective view from the outside
- Access to best practices & tools
- Methodological expertise in agile product development, positioning and analysis
Best practices from the SME sector (case studies)
Example 1: Repositioning an industrial product
An automation company was able to double its turnover by repositioning itself (“plug-and-play instead of engineering project”). The target group approach and pricing model were adjusted.
Example 2: Introduction of digital services
A measurement technology manufacturer expanded its devices to include cloud-based evaluation – with a strategic roadmap, MVP test phase and launch campaign.
How does a consultation with Li2pps actually work?
Analysis phase
We start with an in-depth analysis of the current situation: products, market, target groups, potential. Interviews and competitor analyses provide clarity.
Strategy development
Together we develop a clear positioning, roadmap and product vision – data-based and targeted.
Implementation & monitoring
We support the launch, internal communication and implementation – with measurable goals and regular reviews.
Conclusion: Using product strategy as a competitive advantage
A strong product strategy is not a luxury, but a basic requirement for success in the SME sector. Those who know their markets, customers and unique selling points will win. Li2pps supports you with experience, structure and passion.
FAQs on product strategy consulting
What does product strategy consulting cost?
This depends on the scope – initial analyses are available for as little as €2,000, while comprehensive projects can cost between €10,000 and €30,000.
For which companies does consulting make sense?
For SMEs that want to grow, develop new products or realign existing products.
How long does it take to develop a product strategy?
Between 4 and 12 weeks – depending on the depth of the analysis and the number of products.
What distinguishes Li2pps from other consultancies?
Our focus on product and marketing strategy – plus our expertise in the industrial environment.
Can strategy and implementation be combined?
In fact, that is our USP – we accompany the entire process: analysis, strategy, implementation, performance measurement.
Further resources & contact
Recommendation: Product strategy matrix https://de.wikipedia.org/wiki/Produkt-Markt-Matrix
Interested? Arrange a free initial consultation now via www.li2pps.com