Product Management Scenario- Based Questions and answers: Volume 3 | Product Strategy

This episode focuses on a more senior product interview and primarily focused only on Product Strategy which is essential for every senior and leadership product role.

As stated in volume 1 and volume 2 of these series, I noted that the types of questions you can expect to be asked in a Product Management interview are vast and varied. In general, you’ll probably be asked some of these listed here.

Questions will vary depending on the type of Product Manager role, level, company, or industry, and the kinds of questions you’ll be asked will change as you move through the interview process.

So let’s jump right into it :

What is Product Strategy?

A product strategy is a plan that outlines how a company’s products or services will be developed and marketed to achieve specific business goals.

It usually typically involves five principles

1. Identifying target customers

2. Defining the features

3. Benefits of the product or service

4. Establishing pricing and

5. Distribution strategies.

Product strategy is about building new products in a way that solves the right problems at the right time, and achieves competitive advantage. It all starts with understanding what problem you are solving and how your competitive advantages will help you to succeed in this new market. And then, comes the process of finding customers which is one very challenging task because there are so many different types of customers out there. So, it would be important to understand them properly so as to find their pain points and develop products keeping that in mind.

Product strategy is often closely tied to a company’s overall business strategy and can involve various activities, including market research, product development, and marketing campaigns. The goal of product strategy is to create value for customers and drive the growth of the business.

How do you create a product strategy?

There are several steps involved in creating a product strategy:

1. Identify your target market: To create an effective product strategy, you need to know to whom you are trying to sell your product or service.
2. Define your product or service: Be specific about it and what it does.
3. Determine the unique value proposition: What differentiates your product or service from others? What benefits does it offer to your target market?
4. Set product development goals: Determine what you want to achieve with your product or service. This might include increasing market share, improving customer satisfaction, or launching a new product line.
5. Develop a go-to-market plan: This is a plan for introducing your product or service to the market and reaching your target customers.
6. Establish a pricing strategy: Decide how you will price your product or service, considering factors such as the cost of production, competition, and the value you are offering customers.
7. Create a distribution plan: Determine how you will get your product or service into the hands of your customers.

Here are some best practices for successfully implementing a product strategy:

1. Set clear goals: It’s essential to have a clear understanding of what you hope to achieve with your product or service. This will help you stay focused and ensure that your efforts are aligned with your overall business goals.
2. Gather customer feedback: Regularly gathering customer feedback is essential for understanding what is working and what is not and making necessary adjustments to your product or service.
3. Regularly review and adjust your strategy: Markets and customer needs are constantly evolving, so it’s essential to review your product strategy periodically and make adjustments as needed.
4. Focus on the customer experience: Your product or service should be designed with the customer in mind. Consider what value it offers customers and how it fits into their daily lives.
5. Test and experiment: Don’t be afraid to test different approaches and ideas to see what works best. This can help you identify new opportunities and make better-informed decisions.
6. Foster a culture of innovation: Encourage continuous improvement and innovation within your organization. This can help you stay ahead of the competition and respond to changing market conditions.

Product Strategy Frameworks?

Yes, several frameworks can be used to help develop a product strategy. Some common ones include:

It can help define a product’s or service’s key elements and how it will be marketed to customers.

1. The Lean Startup Methodology: This framework is focused on rapid experimentation and iteration to quickly identify a product’s value proposition and refine it based on customer feedback.
2. The Ansoff Matrix: This framework helps organizations identify growth opportunities by analyzing the intersection of their existing products and target markets.
3. The Value Proposition Canvas: This tool helps organizations create a clear and compelling value proposition for their products or services by identifying the needs and desires of their target customers and the unique benefits their product or service offers.

Common techniques for Product Strategy include:

1. Market research: This can include surveys, focus groups, and customer interviews to gather insights on customer needs, preferences, and behaviors.
2. Competitive analysis: This involves looking at the products and strategies of competitors to understand the market and identify opportunities for differentiation. Platforms like LinkedIn , Owler and crunchbase can help with this technique .
3. Product development Lifecycle including designing the software , prototyping tools, project management, engineering and testing to help bring a product to market.
4. Marketing and sales tools can include marketing automation software, CRM systems, and social media management tools to help reach and engage with customers.
5. Financial modeling tools: These can include tools like spreadsheets and financial planning software to help analyze a product’s costs and potential profits.
6. Collaboration and communication tools can include project management software and messaging apps to help teams work together effectively.
7. The Four P’s of Marketing: This technique consists of Product, Price, Promotion, and Place.

Several tools are designed to help organizations plan and execute their product strategy. Some examples include:

1. ProductPlan: This visual road mapping tool helps teams create and share product plans and strategies. It offers timeline creation, stakeholder collaboration, and integration with other project management tools.
2. Roadmunk: This visual road mapping tool helps teams create, share, and track product plans and roadmaps. It offers real-time data integration, stakeholder collaboration, and reporting and analytics.
3. ProductBoard: This product management platform helps teams prioritize and manage their product roadmap. It offers customer feedback management, market research, goal setting, and tracking.
4. ProdPad: This product management platform helps teams ideate, plan, and execute their product strategy. It offers ideas management, road mapping, and customer feedback management.
5. Aha: Aha provides features like ideation management, market and customer research, and visual road-mapping to help teams plan and execute their product strategy. Aha! is designed to help teams align their product goals with their overall business strategy and to communicate their vision to stakeholders.

These are just a few examples of the many available product strategy tools. The best one for your organization will depend on your specific needs and goals.

Considerations that businesses may face when developing and implementing a product strategy include the following:

1. Limited resources: Developing and launching a new product or service can be resource-intensive, and organizations may need help in terms of budget, staffing, or expertise.
2. Competition: Other businesses may offer similar products or services in the market, making it difficult to differentiate your product and gain market share.
3. Changing market conditions: Markets are constantly evolving, and businesses may face challenges in adapting their product or service to meet changing customer needs or market trends.
4. Regulatory considerations: Depending on the industry and location, businesses may need to comply with specific regulations or standards when developing and marketing their products or services.
5. Customer adoption: Even if a product or service is well-designed and meets a customer’s need, there is no guarantee that it will be successful. Businesses may face challenges convincing customers to try their product or service and to continue using it.

Example of a product strategy in various industries.

Product strategy for a Fictional fintech application located in Lagos,Nigeria

XZ finance is an application that helps users manage their finances.

1. Target market: The fintech application’s target market is young professionals between the ages of 18–35 , looking for an easy and convenient way to track their spending and budget.
2. Product: XZ finance is a financial management tool that allows users to link their bank accounts and credit cards, track their spending, set budget goals, and receive alerts when they are close to exceeding their budget.
3. Unique value proposition: XZ finance’s main value proposition is its simplicity and convenience. It is easy to use and allows users to view all their financial accounts in one place, making it easier to manage their money.
4. Product development goals: XZ finance app’s goal is to become the go-to financial management tool for young professionals, focusing on continually improving the user experience and adding new features based on customer feedback.
5. Go-to-market plan: The application will be marketed through targeted social media campaigns and partnerships with financial institutions and personal finance bloggers. It will also offer a free trial period to attract new users.
6. Pricing strategy: XZ finance will offer a basic version for free plan and a premium version with additional features for a monthly subscription fee.
7. Distribution plan: XZ finance will be available for download through the App Store and Google Play and accessible through a web browser.

Here is another example of a product strategy for an eCommerce platform that sells health products in Nigeria:

Onehealthng.com is a digital pharmacy Store in Nigeria that delivers Pharmacy and Telehealth products platform your doorstep.

1. Target market: The Health eCommerce platform’s target market is health-conscious consumers in Nigeria looking for high-quality, natural health products.
2. Product: The platform will offer a wide range of health products, including vitamins, supplements, natural remedies, and personal care products.
3. Unique value proposition: The eCommerce platform’s main value proposition is its focus on natural, high-quality products and its commitment to customer education. The platform will offer a wealth of information on the health benefits of its products and will only carry products from trusted brands.The platform will also offer free doctor’s consultation service for certain products.
4. Product development goals: The platform aims to become the go-to destination for natural health products in Nigeria, focusing on expanding its product line and increasing customer satisfaction.
5. Go-to-market plan: The platform will be marketed through targeted online advertising campaigns and partnerships with health and wellness influencers in Nigeria. It will also offer a loyalty program to encourage repeat purchases.
6. Pricing strategy: The eCommerce platform will offer competitive prices for its products, considering the cost of sourcing high-quality, natural products and the value it provides to customers.
7. Distribution plan: The platform will offer home delivery for its products throughout Nigeria, allowing customers to pick up their orders at designated pickup locations.

Again, this is just one example of a product strategy for a Health eCommerce platform, and the specific elements will vary depending on the product and target market.

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Here is a link to volume 1 and Volume 2