Product strategy is like a tactics cheat sheet and set of actions that helps Product owners and Product managers and companies turn their big ideas into reality by making smart decisions about features, market positioning, and gaining a competitive edge.
In this article, you will learn about the difference between product vision and strategy and find a guide for product teams and product management group to build a successful product strategy.
- What is product strategy?
- What is difference between product strategy and product vision?
- How to build strategy for a product?
- Strategy on a page template
What is product strategy?
A product strategy is a well crafted, tactical plan that outlines the steps that a company will undertake to not only realize its overarching product vision but also to effectively cater to the needs of its customers. This planning involves strategic decision-making regarding the features to be developed, how these features will be positioned within the market, and the methods employed to secure a distinct and sustainable competitive advantage.
Crucially, a well-formulated product strategy seamlessly aligns with and contributes to the attainment of broader business objectives. This can be observed in Google’s product strategy, which aligns with its mission to organize the world’s information. This alignment drives continuous innovations in flagship products such as Search, Maps, and YouTube, showcasing the symbiotic relationship between product strategy and overarching business goals.
Moreover, a company’s product strategy plays a critical role in establishing a strong foothold within the market and providing a distinct competitive edge. Nike, renowned for its strategic placement, exemplifies this through a product strategy anchored in continuous innovation and strategic athlete endorsements. This strategic approach has not only solidified Nike’s position as a market leader but has also propelled the brand to the forefront of athletic footwear and apparel innovation.
In practical terms, after having defined vision for a product, the next step is to build a strategy to achieve the vision.
Read more : What is a product vision? How to conduct workshop to define a clear product vision?
What is difference between product strategy and product vision?
A product vision is like the North Star, showing a company its big dreams and where it wants to go. Think of Elon Musk’s vision for Tesla: it goes way beyond just making electric cars. Musk dreams of a future where we use renewable energy for everything, making our world more sustainable. To turn this dream into reality, Tesla has some important priorities, like electric cars, better batteries, self-driving technology, and a network of charging stations.
Now, let’s talk about product strategy. It is like turning that dream into a plan, making it practical and real. It’s not just about dreaming big; it’s about figuring out what steps to take. Tesla’s product strategy is how they put Elon Musk’s vision into action. They have to decide things like which features are most important, how to stand out from other companies, and where to focus their efforts to be the best in the business.
In simpler terms, the product vision is the exciting dream, and the product strategy is the down-to-earth plan to make that dream come true. The vision gives the direction, and the strategy is the roadmap to get there. It’s like saying, “We want to go to space” (that’s the vision), and then figuring out how to build a rocket and train astronauts (that’s the strategy). Both are crucial, but they’re different parts of the journey to success.
Step by step guide to building a winning product strategy
Building a product strategy involves a series of steps to ensure that the product aligns with business goals, meets customer needs, and stands out in the market. Here are detailed steps to guide you through the process:
- Market research and analysis:
- Understand the market landscape, customer needs, and competitors.
- Actions:
- Conduct surveys, interviews, and analyze customer feedback.
- Study market trends, industry reports, and competitor strategies.
- Use data analytics to gather insights and identify patterns from current products and customer usage patterns.
- Setting clear objectives and goals:
- Define specific, measurable, achievable, relevant, and time-bound goals.
- Actions:
- Collaborate with stakeholders to establish clear objectives.
- Ensure goals are quantifiable and have a realistic timeline.
- Align objectives with broader business goals.
- SWOT analysis:
- Evaluate internal strengths and weaknesses, and external opportunities and threats.
- Actions:
- Identify company strengths, such as unique capabilities or resources.
- Address weaknesses to minimize potential risks.
- Capitalize on opportunities in the market.
- Develop strategies to mitigate potential threats.
- Understanding the audience and create user personas:
- Identify and understand the specific needs and preferences of the target audience.
- Actions:
- Define the characteristics of the target audience.
- Create detailed user personas representing different customer segments.
- Consider demographics, behaviors, and motivations.
- Defining the value proposition:
- Clearly articulate the unique value the product offers to customers.
- Actions:
- Identify key features and benefits that set the product apart.
- Craft a compelling message that communicates the product’s value.
- Ensure the value proposition addresses customer pain points.
- Roadmapping and execution plan:
- Develop a roadmap outlining the steps for product development and launch.
- Actions:
- Break down the product strategy into actionable steps.
- Create a timeline for each phase of development.
- Allocate resources and responsibilities.
- Plan for potential challenges and contingencies.
- Implementation and testing:
- Execute the product strategy and validate assumptions through testing.
- Actions:
- Develop a Minimum Viable Product (MVP) for initial testing.
- Gather feedback from users and stakeholders.
- Iterate and refine the product based on feedback.
- Market positioning and branding:
- Define how the product will be positioned in the market and establish a brand identity.
- Actions:
- Identify the product’s unique selling points.
- Develop a brand identity, including messaging and visual elements.
- Communicate the product’s positioning through marketing channels.
- Monitoring and evaluation:
- Continuously assess the performance of the product in the market.
- Actions
- Monitor key performance indicators (KPIs) related to sales, customer satisfaction, and market share.
- Gather customer feedback and iterate based on insights.
- Stay attuned to market changes and adapt the strategy as needed.
- Iterative improvement:
- Embrace an iterative approach to continually enhance the product and strategy.
- Actions:
- Incorporate lessons learned from each product iteration.
- Regularly revisit market research and adjust strategies accordingly.
- Foster a culture of continuous improvement within the product team.
Strategy on page template
Here is a template that can be used to present your product strategy on a page
| Write your product / business goals | Business/Product Goal 1 | Business/Product Goal 2 | Business/ Product Goal 3 | Business/Product Goal 4 |
| Write your OKRs here | Objective and Key results 1 | Objective and Key results 2 | Objective and Key results 3 | Objective and Key results 4 |
| Initiatives | Explain initiatives planned to deliver this objective | Explain initiatives planned to deliver this objective | Explain initiatives planned to deliver this objective | Explain initiatives planned to deliver this objective |
| Confidence to delivery | Low, Medium, High | Low, Medium, High | Low, Medium, High | Low, Medium, High |
| Relationship to enterprise strategy | How this product goal delivers on enterprise strategy | How this product goal delivers on enterprise strategy | How this product goal delivers on enterprise strategy | How this product goal delivers on enterprise strategy |
Conclusion
In conclusion, a well-crafted product strategy is the backbone of business success, providing a clear path to navigate the complexities of the market. Understanding the differences between product strategy and product vision and following a structured approach to crafting a product strategy positions companies for sustained growth and innovation. The pursuit of a winning product strategy is an ongoing and transformative journey, essential for unlocking business success in today’s competitive landscape.
