Defining product strategy
Product strategy is a guiding plan that defines your product goals and how they align with organizational objectives. It answers key questions about who you serve, what problems you solve, and how you will win in the market. A strong strategy does not need to be fully comprehensive from the start. The best strategies are built step by step, tested in practice, and refined as new insights appear.
While every strategy looks a little different, most effective ones include 6 core components that can be adjusted as your product evolves:
- Identify your target customer with clear segments based on demographics, behaviors, and needs.
- Pinpoint the customer need or problem that is real, relevant, and worth solving.
- Define your market category so customers understand what your product is before they buy it.
- Explain the key benefit that your product delivers to help users reach their goals.
- Establish your unique differentiator that sets you apart from alternatives.
- Analyze why you are different based on competitor research, which forms your "moat."
These components come together in what's called an elevator pitch framework: "For (target customer), who has (customer need), (product name) is a (market category) that (one key benefit). Unlike (competition), the product (unique differentiator)." This concise format forces clarity and ensures all strategic elements work together coherently.[1]
