The product strategy forms the basis for executing a product roadmap and subsequent product releases. The product strategy enables the company to focus on a specific target market and feature set, instead of trying to be everything to everyone.
When defining your product strategy:
- Define your target customer or market.
- Understand what makes your product unique in the market.
- Create a value proposition to position the value you provide and the benefits that customers will receive with your solution.
- State how you will price the product. Include its perceived value and a pricing model.
- Describe how you will sell your product, and how your target market will acquire your product.
The power of a product strategy comes from what you define as well as what you exclude. By identifying a particular target market in your product strategy, you are also excluding other markets.
This helps your company to understand which projects fall outside the product strategy and distract from strategic goals.