How We Think Product Development Strategy: Compiled

Hello there, friends! 👋

Are you looking to enhance your product development strategy and ensure your product's success in the market? We’ve been building digital products for the better part of a decade at Untile, and we’ve been through many ups and downs, we’ve faced the intricacies of the market and made it through to the other side.

We have always made building community a centerpiece of our culture, and that means sharing our knowledge. Whatever we’ve learned throughout this period, we are putting at your service this article that will be as comprehensive as we can possibly make it.

Here’s an outline of what you will find:

Product Development Strategy

Identifying Your Target Market

Researching the Competition 

Designing and Development

How to Figure Out a Go-to-Market Strategy 

Our goal is to equip you with the knowledge and tools necessary to develop a product that meets market needs and exceeds customer expectations. You will learn insider tips and tricks that will help you navigate the complex landscape of product development and create products that stand out from the crowd.

Put simply, Product Development Strategy is the process of creating and launching a new product or service.

The reason why it’s important to strategize well and early is that this is a more multifaceted endeavor than it can seem. It doesn’t solely include the actual building of the product, it includes all the steps that lead to it and from it. It includes research, product design, engineering, manufacturing, marketing, and customer service. If these things aren’t adequately road-mapped, budgeted, synchronized, and timed, chaos will ensue.

A successful product development strategy should focus on four core aspects, the same ones that we will develop in the following chapters. Here is a quick overview of each with a strong focus on understanding the customer needs, researching, and developing the product.

The primary objectives of the product development strategy should include providing the customer with a unique and high-quality product and launching the product successfully in the market.

The first step to creating a product development strategy is to conduct market research.

Before anything gets done, and any outlines are created for development, it is key to understand the existing needs of the market. Analyze customer buying trends and/or customer needs. In the second article in the series, we will detail how to ask the right questions to identify your customer’s needs, the competition, and the potential market size. 

This in turn will provide you with a better understanding of the potential market opportunities and solutions your company can provide in order to tap into these opportunities.

Part of this (but not exactly the same) is learning as much as you possibly can about your competition.

In the second article of this series, we will help you create a plan to analyze what other players are doing, and how they are approaching the same market you’ve already studied extensively. Remember: you are not throwing your product into an empty vessel. If you’ve identified a market need, odds are someone else has to, and you have to be ready to compete.

The third key step is to analyze the feasibility of the project and the associated risks before starting with the actual development. This is part three. Consider the cost of developing the product and the estimated returns. Only once the project is analyzed and approved, can the product design and development process begin.

You then move on to designing a prototype of the product and test it in the market. If necessary, refine the design and develop better versions. Multiple iterations of a product ensure a better alignment with client expectations because the company gets more feedback.

The last step is to finalize the production process. This is a very complex and multi-pronged process that we will look into in part four. You must choose the right manufacturing techniques, and create a production plan to meet the market demand. You will also create a timeline for product launch and set the prices based on your objectives and various market dynamics. You then have to monitor the performance of the product after it is launched and work on improving it over time. This requires an entirely different set of skills, with marketing playing a huge role.

Sometimes, developing a product is the easy part. You have an experienced team, and a knowledgeable group, you’re agile, everyone knows what to do, and you’re in your element.

You have a tonne of plans for your incredible product. So many features. Some of them are so new people don’t even know they are possible. Your team is ready to go full-steam ahead.

But in what direction? What should be built first? What can be last? When do UX and UI come in? How about marketing? How long will it take to get an MVP out? How will the product find its market fit?

The answers to these questions are different for every company. They are different for every product that they push onto the market. There’s one thing they all have in common, however: for a company to be successful, these questions need to be answered as soon as humanly possible, preferably before development begins in earnest.

One does that through market research.

While we all have an instinctive grasp of what the market needs (no one starts a company to build a product they don’t see a space for), the specifics of this can very often be hard to grasp without running proper research.

It’s easy to be misaligned with the market without proper data collection and serious analysis. Customer needs should always be a top priority when considering any product development strategy, even (especially if!) when research suggests they may not be in sync with our anecdotal evidence.

Identifying customer needs plays an essential role in ensuring the development of a product that has a great chance of being successful, instead of a problem to be fixed later on, when the company is seeking to become profitable.

Gaining a deep understanding of customer needs starts with market research. Market research helps to identify demographics, motivations, and buying patterns in a target market. It is important to consider the wider market size, competition, and position of the product before deciding on the best product development strategy to follow with. This research can also help to identify the features that customers expect to see in the product, which can inform the development process.

It’s important to note that market research and identifying customer needs don’t replace a founder’s decision-making process. It’s not about preceding one’s judgment or replacing creativity with predictability.

It’s about making informed decisions, instead of flying blind. Ultimately, the success of a product depends on how well it meets customer needs.

It also bears keeping in mind that this is a continuous process. Maintaining regular customer feedback is necessary to develop products that are attractive and relevant to customers over time. This feedback loop can be used to make adjustments to the product development strategy and ensure the product is up to market standards. Additionally, customer feedback can lead to the development of innovative and creative features, which can give the product an edge in its market. 

It’s not all about figuring out what the customers want either. It’s also about connecting that information to what you can provide. Moreover, it’s about figuring out what you can provide that others can’t or won’t.

Companies should be able to identify areas of the market that need to be addressed to increase sales and revenue. Identifying gaps can help guide product development decisions, such as introducing new products or features.

Gaps in the market are often identified by analyzing customer needs and industry trends. After completing step one, companies will have access to vast amounts of data on customer needs, preferences, and behaviors. This data can be used to identify existing gaps, as well as areas of potential opportunity. Companies typically rely on data analysis to uncover potential areas of improvement in the market and innovative product ideas.

This is also a continuous process, but it’s also a creative endeavor. To expertly exploit a market gap, the strategy must take into consideration some factors, including the company’s productive output, what the competition is doing, and the company’s ability to market a product. Sometimes it’s not about being first, it’s about having the right product at the right time with the right marketing.

You want the iPad, not the Windows XP Tablet.

Now you know what the market wants, and you’ve figured out where your sweet spot lies. You are ready to start developing, right? Almost.

You need to make sure your product fits into the way your prospective customers buy. Different demographics buy in different ways. Purchasing behaviors vary geographically, by age group, by purchasing power, etc. If you’re making a luxury product for wealthy customers, you need to make sure it’s available where wealthy people buy, and the same is true for every other data point that drives purchasing behaviors.

Maybe the simplest way to explain why this is a key thing to understand early on is an example: let’s say you’re making a video game.

Porting your game to a different console/system, later on, will be much harder, more expensive, and more cumbersome than developing it for the right platforms from the get-go. The same is true for whether you’ll make physical copies. What marketplaces do you want your game to be present on?

Most of the time, the answer isn’t all of them, because different platforms will appeal to different kinds of gamers, who will have different purchasing habits. While Football Manager does fine on Steam, FIFA needs to be on PlayStation and Xbox. Both are football simulators, but their audiences have very different buying habits.

Purchasing trends, price points, and competition are all things you should be aware of as you do your homework before starting the development of a product, but also as time elapses. All of these things will also provide insights into the lifecycle of a product. Business owners must track customer buying habits to discover when and where sales decline. This information can be used to update the product and make changes to increase demand and remain competitive.

Understanding customer buying habits can also help companies identify when it’s time to launch a new product or discontinue an existing one.

In the next chapter, we will be looking at researching the competition specifically. Expect some more notes on what to look out for, specific tips, and practical advice.

In today's competitive business environment, conducting thorough research on your competition is essential for businesses of all sizes. By understanding the strengths and weaknesses of your competitors, you can gain valuable insights that will help you make informed decisions and create effective strategies that give you a competitive advantage in your industry.

Researching your competition involves collecting and analyzing information about your competitors' products or services, marketing strategies, customer base, pricing, and other key areas that impact their business operations. This process provides you with a clear understanding of your competitors' positioning in the market, enabling you to identify gaps and opportunities that you can capitalize on.

Let’s take a look at how best to approach this issue.

To start, it is essential to research the current and past successes and failures of competitors. This approach enables businesses to identify the areas where the competition is succeeding, the opportunities they are exploiting, and the areas where they are lacking. Analyzing the latest products they have introduced, their prices, and the features they offer to customers can provide you with a better understanding of what your competitors are doing so you can stay ahead of them.

Another important area that will provide excellent information is customer feedback, reviews, and ratings of competitors. By analyzing this information, you can gain insights into how customers perceive your competitors' offerings, and how you can improve your products to better satisfy the needs of their customers. Understanding the strengths and weaknesses of competitors is essential in improving product development strategies, not just so you can take advantage of what they’re lacking, but also so you can be mindful of where you may be at a disadvantage.

Analyzing a competitor's product development process can provide invaluable insight into their strategies, approaches, and capabilities. By understanding their strategies and products, you can adapt your product development strategy accordingly and gain a competitive advantage.

To gain valuable information about a competitor's product development process, you should analyze their operational process and resource allocation. It is also important to investigate the competitor's product development organization and team members to better understand what they can do, including distribution channels and marketing strategies. Additionally, reviewing the competitor's design process and any research, development, and testing activities can provide companies with insights into their approach and product development cycle.

It is important to note that this, much like market research, is not a one-time operation. You must keep track of what competitors are doing as they are doing it, and try not to stay behind any more than you absolutely must.

Analyzing a competitor's product development process can provide valuable insights into their strategies, approaches, and capabilities. Regularly conducting a competitor analysis is essential for you to stay ahead of the game and gain the upper hand.

Understanding the pricing tactics of a company's competitors is crucial in developing an effective product development strategy. By analyzing the strategies employed by industry rivals, you can ensure that you offer products at competitive prices while maintaining desired levels of profitability. Conducting thorough research on a range of competitors is critical in understanding the wider market and making sure you aren’t leaving profits on the table.

To accurately price your products, and understand what market demand is, you must understand the pricing dynamics of similar products. This will help ensure that your development strategy does not undervalue your products while remaining competitive. Additionally, you should analyze any innovative features introduced by competitors to gain insight into what your products should include to stand out. This could range from new technology to improved customer service.

In studying the business models of competitors, you can create reliable pricing plans not just to seek stability but to capture a larger portion of the market. This may involve developing products that target specific customer segments or offering different pricing structures for customers who make bulk purchases. It is important to note that pricing strategy should also be informed by thorough market research and analysis (check our previous article), including an understanding of customer behavior and purchasing patterns.

Businesses need to conduct thorough research on their competitors to remain competitive in their respective markets. Analyzing competitors' strengths, weaknesses, pricing strategies, and product development processes can provide businesses with critical insights.

As we’ve mentioned, it is important to note that competitive analysis is not a one-time activity, but a continuous process. Regularly monitoring competitors and the market is one of the keys to growth and innovation. You can’t stay ahead of something if you don’t know it.

It is important to resist the temptation of using competitive analysis to copy the strategies or products of competitors. You should be protective of your unique approach to product development and marketing. Leverage these insights gained to identify your strengths and weaknesses. Create products that offer unique value propositions to your customers.

Designing a successful digital product requires careful planning, thoughtful consideration of user needs, and an understanding of the latest technology trends. With the increasing importance of digital products in our fast-paced world, it's more important than ever to create products that meet the needs and expectations of users.

Before diving into the design process, it's essential to understand the target audience for the product. This involves conducting research to identify their needs, preferences, and pain points, and using this information to guide the design process. 

From there, it's important to establish clear goals and objectives for the product and to create a roadmap that outlines the key steps involved in the design and development process. By following a systematic approach and keeping user needs in mind at every step of the way, you can create digital products that are not only functional and efficient but also user-friendly and visually appealing.

When generating product ideas, utilizing a product development strategy can help guide decision-making and take into account the needs of your target audience. A comprehensive strategy should carefully consider the present market situation, customer needs, user experience, and other market conditions. Having ideas is fine, but you need to make sure you are guiding that process in a manner that makes them useful.

To begin, conduct a thorough analysis of your target market. Research customer needs and pain points, and consider customer segmentation. Qualitative customer surveys may be used to better understand customer needs. Next, look for potential value-adds for existing products, as well as potential new markets. Competitive research such as reviewing competitors’ product offerings, customer reviews, and industry trends can help you understand customer demands and competitor offerings, forming a plan of attack to guide your product development strategy.

This is why this is part four of this series. All of these processes should be done with a guiding principle and in the correct order. You develop your creative ideas when you have all the information needed.

Successful product development starts with understanding user requirements. Consider user experience early on in the product development cycle. Engage users, gather feedback from usability testing, and utilize feedback loops to gain valuable insights into the user journey. By understanding users’ needs, frustrations, and satisfaction, you can ensure that the product meets user requirements

Your product development strategy should also take into account budgetary restraints and objectives. Assess your current product portfolio and ensure that any new products will be financially viable and can add short-term and long-term value. Incorporate market data such as pricing, customer segments, and forecasts to optimize your product strategy. By taking a holistic approach to product development, you can create a strategy that takes into account customer needs, the competitive landscape, and your company objectives. If you don’t do it, you risk investing precious time and resources into ideas that lead nowhere.

To create a successful digital product, you must develop features that cater to the needs of your customers. This not only increases user adoption and retention but also creates a competitive advantage and economic value for your company. Developing product features requires thoughtful consideration of various factors, including customer and internal stakeholder requirements, current technology and industry trends, and market segmentation. 

From there, you can create a list of desired product features that meet these requirements.

In addition to customer and stakeholder needs, you must also take current technology and industry trends into account when developing product features. Cutting-edge technologies can give your company a competitive edge, while outdated technologies can lead to customer dissatisfaction and a loss of market share. Staying up-to-date on industry trends such as new software, APIs, or regulations is also crucial to ensure your product features remain relevant and effective.

This may be one of our most important pieces of advice yet: don’t waste your team’s work and genius on features that aren’t thoroughly vetted. Make your decisions in the most informed way possible.

When developing a product, testing its design is a crucial step in the product development process. The goal is to ensure that the design meets the user's requirements, satisfies market standards, and is safe for consumers. There are various kinds of testing, however.

Physical testing involves creating actual prototypes and models that can be tested in different scenarios. This type of testing helps to identify flaws in the design and assess whether the product is strong enough to withstand the intended use. Physical testing is also useful in identifying any safety hazards that the product may have.

For digital products, however, maybe virtual testing will be the most significant. It involves computer simulations and models to evaluate product performance. This type of testing can identify potential design issues and whether the product meets the user's requirements. It can also identify safety hazards and any performance issues that may arise

Testing must be included in the general Product Development Strategy, and not seen as an afterthought or a separate part issue. It should include market research in and of itself, to figure out what parameters are more significant for users, and what needs to be texted more extensively.

And, of course, it goes without saying, and as we’ve mentioned for other things before, testing is a continuous process.

Creating successful products requires a comprehensive development strategy considering customer needs, stakeholder requirements, technology, industry trends, and market segmentation. Testing the product design through physical or virtual means and market research helps identify potential issues and customer needs. These may seem like simple truths, but keeping to them methodically and systematically may be the single most important thing a company can do when considering its product design.

By prioritizing the customer experience, you can create innovative products, anticipate customer needs and adopt a customer-centric approach to product development that will be crucial for success in today's competitive business landscape.

Throughout our product development series, we've discussed the importance of ideation, research, prototyping, and user testing in creating innovative products that address real needs. Now, we've reached the crucial final stage, where you're ready to introduce your product to the world. In this fifth and last installment, we'll explore the essential steps in creating a powerful go-to-market strategy that ensures your product not only launches successfully but also creates a lasting impact in the market.

A well-designed go-to-market strategy is the key to unlocking your product's full potential, fostering customer adoption, and driving long-term success. It's the bridge between your product's development and its introduction to the market. By aligning your pricing, timeline, and marketing efforts, you can pave the way for strong customer engagement and sustainable growth.

Let's dive into the steps you need to take to craft a successful go-to-market strategy for your product.

At this stage, you should have a solid understanding of your market fit, competition, and industry landscape. Consider all the costs involved in creating the product, including materials, labor, testing, marketing, and other associated expenses.

It's crucial to be aware of your competitor's pricing. Although your prices shouldn't necessarily mirror theirs, customers will compare, and significant differences can lead to conclusions. Stay on top of this for competitive purposes.

Keep your target audience in mind to ensure your pricing appeals to them. Consider any potential discounts or promotions to boost sales, but remember that customers accustomed to discounted prices may be reluctant to pay full price later.

Creating a thorough timeline is essential for the successful execution of your go-to-market strategy. This not only helps you stay organized and focused but also ensures that all aspects of your product launch are addressed in a timely and efficient manner. Here are some key elements to consider when developing your timeline:

Pre-launch activities: Begin with activities that build anticipation for your product launch. This may include creating buzz through content marketing, influencer partnerships, or teaser campaigns. Use this time to fine-tune your messaging, polish your product's value proposition, and gather feedback from early adopters to refine your offering.

Launch milestones: Identify critical milestones for your launch, such as official announcement dates, pre-order campaigns, or limited-release promotions. These milestones will help you measure your progress and maintain momentum throughout the launch process.

Post-launch activities: Plan for ongoing engagement after your product hits the market. This can include customer feedback collection, user testing, case studies, and community-building initiatives. These activities help you stay connected with your customers, address any issues, and gather insights for future product iterations.

Marketing integration: When developing your timeline, consider the marketing tactics that will be covered in Step 3. Ensure that your marketing activities are seamlessly integrated into the overall timeline, with pre-launch, launch, and post-launch activities working together to support your product's successful introduction to the market. By aligning these efforts, you can create a cohesive and effective go-to-market strategy that drives customer adoption and long-term success.

With your pricing and timeline in place, it's time to develop a marketing strategy that effectively communicates your product's value proposition and reaches your target audience. In this stage, you should have a deep understanding of your target audience, their needs, preferences, and pain points. This understanding will guide you in creating marketing messages that resonate with them and showcase how your product provides the best solution to their problems.

Craft a compelling brand story that highlights your product's unique features and the benefits it offers. This story should be consistent across all marketing channels and materials, ensuring a unified message that sticks in the minds of potential customers.

When planning your marketing tactics, consider a multi-channel approach that reaches your target audience where they're most likely to engage with your content. This can include a mix of online and offline channels, such as social media, email marketing, content marketing, public relations, and events. Tailor your tactics to your audience's preferences, maximizing the impact of your marketing efforts.

Monitor your marketing campaigns and collect data on their performance. Use this information to refine your strategy, optimizing the channels and messages that deliver the best results. This iterative process will help you focus your marketing resources effectively, driving greater ROI and ensuring your product gains traction in the market.

Finally, engage with your audience and foster a sense of community around your product. Encourage user-generated content, respond to customer feedback, and actively participate in conversations relevant to your industry. By being present and accessible, you build trust and loyalty, turning your customers into brand advocates who can amplify your marketing reach.

As we conclude our product development series, we've seen how a comprehensive strategy serves as a valuable roadmap for product creation, outlining the company's goals, objectives, and the steps to achieve them. Implementing a product development strategy offers numerous benefits for any business.

A well-structured strategy helps the development team gain a deeper understanding of the product, its features, and the target audience, ensuring the creation of a successful product that meets customers' needs. Moreover, it provides a competitive edge, as it guarantees the development of a unique and differentiated product that stands out in the market.

An effective product development strategy streamlines the process, reducing the time and costs involved in bringing the product to life. By establishing a clear strategy and timeline, the development team can prioritize tasks, complete the product within budget, and deliver a final product that exceeds customer expectations.

Overall, our product development series has aimed to provide you with valuable insights and guidance on bringing your product vision to fruition, ultimately leading to a successful launch and sustainable growth.

Make sure to follow us on our social channels so you can keep up-to-date with our activities, and make sure you tune in to the Substack frequently so you can continue reading everything we create! 

If you have read enough, and feel like you want to work with us and develop your product with our team, we would love to hear from you.

Want to know more, get in touch!