Strategy | Pinpointing Product Priorities

It's planning season, that time of year when every organization large or small is struggling to refine its strategic focus for the coming year.

We have in fact been working with a small business client on just such an effort. The big pieces of the plan have solidified and the client is so delighted, they were happy to share a high level overview here.

Let's take a look.

Highlights

The company has several existing product lines along with new products in various stages of development. Product expansion is a top priority for the foreseeable future, so we created a basic Venn diagram as part of the strategic analysis to illustrate priorities and clarify crucial relationships. (Obviously, the client's version is specific and detailed.)



Top tier products are integral to the client's core business. The products are separate and distinct, but they share similarities, such as the fact that development, testing, refinement and release require a significant amount of time that's relatively fixed. These products are valued by the primary customer base, command a higher price and are less price sensitive overall.

Second tier products are just what they sound like. They support and supplement primary products. They have specific features that help them sell steadily so they're worth producing. However, they're competing in a crowded, competitive arena and customers tend to be more price sensitive.

The tertiary line represents spinoff opportunities that in the past were largely unanticipated and often ignored. Products in this category are loosely related to the other two lines, are comparatively easy to produce, appeal to a broader customer base and create an additional income stream. If production costs rise or distribution becomes complicated, tier three products can be pared down, reconfigured or abandoned without harming the core business or other product lines.

Bottom Line

The holiday season is on the horizon and the year is rapidly coming to a close. As hectic as things are, it's worth carving out time now to clarify your strategy and define your plan of action, so you and your organization can hit the ground running when January arrives. Something as simple as the strategy shown here could be precisely what you need.


2 comments:

Anon said...

Perfect timing. We're wrestling with similar issues and will be using your strategy to refine our plan.

Shubham Prasad said...

Marketing strategy is very much needed for making a product conversion more. Nice post

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