Every day, companies launch hundreds or even thousands of new products into the market, but not all manage to achieve the expected success. How can you avoid the pitfalls and ensure that your product will make an impact on the market? We will explore some key strategies in collaboration with Sergiu Statii, Lending Orchestra Lead at maib, who is an expert in product management, marketing, and strategy development. Currently, he leads the team managing lending products within maib, which represents 37.88% of the country's banking credit market.
- Competition analysis: find out what the competition is doing
A common pitfall in product development is to rely too much on personal opinion. Often, what you think would be a good product or service may not align with reality. That's why a detailed analysis of the competition's products is essential. It should cover several aspects:
Product features: Evaluate the functionalities offered to consumers, the technologies used in production, the design and aesthetic appearance that add value, as well as the range of options available.
Quality and performance: Pay attention to the durability and reliability of competing products, document quality standards, and try to identify any defects or missing components. Also, analyze the quality-price ratio by regularly monitoring prices and assessing quantity and quality. This way, you can approximate the competitors' profit margins and understand how often they offer discounts/promotions, which can reveal their sales potential.
Packaging: Analyze the attractiveness of the packaging, its functionality, and sustainability elements (eco-friendly). Look at the information provided, the structure, and how it is conveyed. You can shop incognito or request a consultation to get a real perspective.
Distribution channels and logistics: Evaluate how the competition manufactures and distributes products to consumers, both online and offline. In this way, you will better understand delivery costs and logistics. Also, analyze their advertising strategies to identify key messages used, types of promotion, and influencers they collaborate with. Observe the campaigns and see if they are performance-oriented, such as calls to action like "Buy now!" or "Request the offer now!" or brand development, building messages based on consumer experiences and the stories behind the products. Consumer reviews: Analyzing reviews posted by consumers on social networks (such as Facebook, Instagram, LinkedIn) and search engines (Google) is an essential part of this complex documentation. Customers' opinions and experiences can reveal important aspects and help us avoid the mistakes competitors have made in the past.
Recenziile consumatorilor: Analiza recenziilor postate de consumatori pe rețelele sociale (cum ar fi Facebook, Instagram, LinkedIn) și motoarele de căutare (Google) reprezintă o parte esențială a acestei documentări complexe. Opiniile și experiențele clienților pot dezvălui aspecte importante și ne pot ajuta să evităm greșelile pe care le-au făcut competitorii în trecut.
- Listen to what customers want:
Another important stage in product development is to talk directly with potential customers. Too many entrepreneurs fall in love with their solution instead of the problem it solves or the value it should create for consumers. In case of failure, many blame the market for not being ready for their product, but the reality is that they have not made the necessary effort to truly discover what customers want and what they are willing to pay for. There is a special technique for documentation in this regard – interviews focused on problem-solving. These will help you validate ideas and understand the needs of those you rely on to buy your product or service. You need to identify interested people from the target group and ask them relevant questions. The interviews should cover aspects such as experience, expectations, and preferences related to the product.
- Product positioning: creating a unique offer
Based on the data obtained from the competition analysis and interviews, you can outline the product's positioning. It is important to highlight the unique values of your offer and build a consistent brand message.
- The 4Ps: Price, Product, Promotion, Placement
Examining the prices, products, promotions, and distribution channels of the competition can help you develop an effective marketing strategy. You can opt for competitive pricing or highlight quality advantages, focus on distribution channels neglected by the competition, or develop well-thought-out promotional campaigns. By using these strategies and by having a deep understanding of the market and customers, you can avoid the common pitfalls in product development and increase your chances of success in the market. Success in product development depends on systematic approach and constant adaptability to market data and customer feedback. Make sure to analyze and adjust your strategies regularly to remain relevant and competitive in the market. By avoiding mistakes and by building a product that truly meets customer needs, you will have every chance of achieving long-term success.
P.S. Finally, a reading recommendation: "The Mom Test: How to talk to customers & learn if your business is a good idea when everyone is lying to you" by Rob Fitzpatrick.
