PRODUCT STRATEGY TEMPLATE

The purpose of this template is to summarize the basic steps in the formulation
of a strategy for your product or product line. Many templates
provide you with a form to fill-in-the-blanks. The strategy
formulation process is more complex and requires a fair amount of
research, data collection, analysis, and thoughtful insight. In essence, it
is a complex exercise that should be done as often as required for the
product. To carry out the exercise the product as a business strategy
model is used represented by the diagram shown here and referenced
in chapter 10.

This model is divided into four major areas as indicated by the letters A,
B, C, and D. However, for the purposes of this template, only areas A, B,
and C are included. The template is essentially a summarization of the
steps used, and the data collected to achieve three major goals:

A) Identify where you are with the product

B) Refine your vision or end state for the product
C) Determine future strategic options and opportunities
D) Is not covered in this template because it represents the outcomes
and opportunities that are outlined in C, which are fed,
along with other inputs, into the new product development
(NPD) funnel.

Captured from the essence of Chapter 10, steps A, B, and C are summarized
here:
Step A: Establish a baseline for the business of the product. This
gives you a focal point that allows you to compare where you’ve
been to where you are so you can determine where you want to
go. Setting the baseline demands that you have the most relevant
product and business data available because such data is to
be synthesized into a product snapshot.

Step B: Formulate or reformulate your vision for the product to

cast it as the driving force for the product or portfolio. You must
be sure you know where you intend to focus your efforts to
accomplish this and the reasons why you chose that focal point.
You may not have to create your why from scratch if you have
an existing product. You may just need to refine where you want
to go.

Step C: Identify strategic options by identifying the possible

future elements of the marketing mix, the desired industry and
competitive postures, and any other supporting business functions,
which need to be brought into the future state equations.

The work involved in Step A is detailed and complex because of the

level of data required to be collected. However, a simple diagram provides
the basis from which to plan your work and organize your data.

The main focal point is the data element shown roughly in the center
of the matrix. Your goal is to identify a cell and get the data that
would occupy that cell. Although it is not realistic or physically possible
to put the data in this small cell, the actual data would be collected in
many other documents. Think of this as a map to guide you in that data
collection. The current year is to the right of the product element and
the prior two years are to the left (CY – 1 represents the prior year and
CY – 2 represents the year before that).
DATA SYNTHESIS
After you’ve completed the data collection project, you have to synthesize
all of the data and analyze it. To do this, you use a SWOT analysis
for the product or product line. Refer back to Chapter 10 to learn
more about why the product level SWOT is most important. The most
important thing is to make sure that information you populate in each
quadrant can be substantiated.

Your subsequent analysis, both using the SWOT as a guide and in

extrapolating meaning from the other data elements, will provide you
with a perspective on how your product is doing. Now you’re ready to
share this with your management in a formal strategic review. The product
strategy review should be organized as follows:

1. Introduction to the product (including name and vision statement)

2. Market review
3. Financial review
4. Marketing mix and business performance review
5. Key performance indicators and their significance to the product
6. Future opportunities and considerations

Step B involves recasting the vision for the product. If you believe
you collected enough data and are going to update your vision (or
where you see the product several years into the future), you can report
this in the strategic review. You can also leave the vision as is.
Step C involves considering future strategic options. This is set
forth in a similar fashion as the Step A process; that is, you can use a
matrix as your guideline to propel your vision for the product into the
future. In this case, the future is divided into three segments: opportunities
to pursue in one year or less, opportunities in the next year or two,
and opportunities three or more years into the future. Each cell in the
table can be populated with information and action plans.
Once you assemble the future state plans within each cell, you will likely
need to focus on selecting from a variety of opportunities. Each opportunity
will have financial, human resource, and higher-level strategic
implications. This is where the product manager and the team will begin
making decisions about what to pursue and why. Some elements will
wind up in the annual budget or business plan for the product, and others
may end up as place holders, which, when appropriate, will require
a Business Case as the document to justify the investment.