strategic product planning. part i: analysis by wayne chen

© 2013! @POCKETSQRMEDIA | POCKETSQUAREMEDIA.CO!

Series: How To Be A Rock Star Product Manager By: Wayne Chen, @MobiWayne

© 2013 POCKET SQUARE MEDIA! @MOBIWAYNE!

¡  One of the primary planning documents or tools that the product manager develops with others in the company is the annual marketing plan for the product line

¡  The planning process starts with an examination of current conditions to search for problems and opportunities for the product(s)

¡  Once problems and opportunities are identified and synthesized, a statement of direction for the next fiscal year is provided through sales and marketing objectives

¡  An action program is created that clarifies the strategies and tactics required to achieve the stated objectives

¡  These strategies and tactics might encompass all of the traditional components of marketing, including: §  Target market refinement §  Product changes / deletions

§  Pricing modifications §  Expansion/contraction or changes among

distributors or retailers §  Updating marketing communication

approaches


Marketing is too important to be left to the marketing department

David Packard, Founder off Hewlett-‐Packard


¡  Marketing is about building a business around satisfying current and future market needs

¡  Product managers play a critical role in the development and execution of annual marketing plan for their products or product lines

¡  Customers form impressions about the company beyond the product quality delivered

¡  Customers want a product that addresses their needs, purchase at a fair value, while having a positive buying experience


The Planning Fundamental Questions

Where are you today? •  Current background analysis

Where do you want to be? •  Synthesis

How can you get there? •  Action program

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PART I WHERE ARE YOU TODAY? BACKGROUND ANALYSIS


Background Analysis

Business Assessment

Market Analysis

Competitive Analysis

Performance History

Trend & Tech

¡  Is the analytical portion of the planning process that should happen before the development of the product plan


¡  Determines the vision and strategy of the overall company

¡  Visualizes what the company will be in the future with the product offer and market focus

¡  Must be consistent with overall company vision and strategy, should align winning customer satisfaction

¡  Assessment guide §  Describe the company

vision, strategies and core competencies that might impact the product programs

§  List the strengthens/weaknesses of the company that impacts new product/line

§  Describes the role the you play in accomplishing the corporate strategy


Man

agem

ent

Who are the movers and shakers of the company?

Who should be part of a new-‐product venture?

Who is owns the budget?

Does company have unique business practices different from the competition?


Compe

tenc

ies What capabilities are the core of the firm’s reason for

being today?

Are the various products today leveraging these competencies effectively or efficiently?

How can product managers leverage the capabilities of other parts of the company?


Plan

ning

What is the basic approach to tactical and strategic

planning today?

What are the plans for global or international growth?

What significant new products are under development?

To what extent are documented objectives used in planning today?

Company’s grow through acquisition, penetration of new markets, or increased market share?


Func

tiona

l How is research and development organized?

What is the major research and development trust?

Does the company have available resources, time and budget?

What is the background of the R&D manager or team?

How is product planning prioritize?


¡  Reviews the current/potential customers for a product/line, groups by demographics, needs and use cases

¡  Breaks demographic into subgroups to improve understanding and benefits they look for to improve overall competitive edges


Cons

umer

Age, sex, race

Income

Family size

Family life-‐cycle

Location

Lifestyle

B2B

Industry

Geography

Company Size

Functional Decision Makers

Profitability

Risk Categories


Cons

umer

Frequency of purchase

Size of purchase

How product is used

Product support

B2B

Application

Importance of purchase

Volume

Frequency of purchase

Ability to purchase


Cons

umer Product desirability

Consumer psychology

Level of need B2

B

Performance requirements

Support service

Desired features

Service requirements


¡  Competitive intelligence is key part of a product manager’s job

¡  Is a summary of information compiled from published, internal, and customer conversations

¡ Must analyze data both from projected, current, and past trends

¡  Enables product manager to develop assumptions, competitive marketing strategies to refine future growth


Division: Group: Product Line:

Market:

Owner: Date:

My Product Product A Product B Product C Product D

Sales Volume

Revenues

Target Market(s)

Profit

Product Strategy

Customer Image

Average List Price

Promotion Strategy

Distribution Strategy

Sales Force

Sales Strengthens

Market Share


Compe

titors

To which competitors have you lost business and from which have you gained business?

(This is the competition from the customer’s perspective.)

Where (in what regions, applications, industries, etc.) is competition the strongest? Why?

What are the corporate competencies of the companies that own competing products?

What is the relationship between the competencies and the products?

Compe

ting

What are the list prices of the competing products? Actual prices?

What is the market perception of the competing products? Awareness level? Customer loyalty?

Is the competing product a small percentage of its company’s business, or is it the main product of the company?

How important are the sales to the competitor, and how much is the company willing to invest to protect these sales?

Are there any specific product features that are “best-‐in-‐class,” against which your product should be benchmarked?


¡  Allows the product manager to look at how well a product performed over time and relative to its planned lifecycle

¡  Focuses attention on the market share, financial and other statistical indicators of performance


Division: Group: Product Line:

Market:

Owner: Date:

My Product Product A Product B Product C Product D

Industry Volume

Your Volume

% of industry volume

Industry Sales

Your Sales

% of Industry Sales

Product Sales as % percentage of company sales

COGS

Quality Index

New Product Sales

Price Index

Strengthens/Weaknesses


Custom

ers

Is there a group of heavy users of the product(s)? What percentage of the purchasers do they constitute?

Is the primary target market growing, stable, or declining?

Under what circumstances do customers purchase the product(s)?

How and why is geographical coverage limited?

What percentage of customers are national accounts? International?

Are most customers new or repeat buyers?

Are the customers the end-‐users? If not, what information is available about the end-‐user?

How sensitive have customers been to past price changes?


Prod

uct

What does the name of the product imply? Can it be branded?

Which of the features are distinguishable by the customer?

Identify the benefits from the customer’s point of view.

How would customers rate the product from 1-‐10? Prod

uct

What does each item in the product line contribute to sales

and profits?

To customer satisfaction? Can some of the products be pruned?

How does the product line rate of return compare with company’s

overall rate of return?

What are the engineering costs for product development, product

engineering, and design?

What is the unit break-‐even sales for the product?


Sales Fo

rce

Is the current sales force structure appropriate for achieving the product objectives? Are the target customers being reached in the most effective manner?

How effective has the product/sales training been?

What sales tools do the salespeople actually use to sell the product?

Has the sales force been taught how to help customers visualize the benefits of the product?


Value

Have significant amounts of business been lost because of product prices?

Are errors frequently made in pricing?

What is the perceived cost of buying the product/service?

Is the company a price leader or a price follower?

What is the pricing policy of the company?

What types of discounts are offered? How does that compare with the competition?


Prom

otion

What is the current image customers have of the product? Is it consistent with the advertising?

Did prior advertising strategies work? Why or why not?

What non-‐advertising promotion has been tried? How well did it work?

Distribution

What is the company’s relationship with intermediaries (e.g., distributors, agents, retailers, etc.)?

What are the channels of distribution? What percentage of the product sales are through each type of intermediary?

What are distribution costs as a percentage of sales?

How does the company’s policy for distributor/retailer margins compare with those of the competition?

What has been the recent history of stock-‐outs, substitutes, and back orders?


Dyn

amics

What tech changes are likely?

How might they impact product sales within the next several years?

What leading indicators correspond with product sales?

What are the basic trends and changes in the economy?

Are there regulatory or political forces that could impact product sales. What is the probability of the

above trends occurring?

What impact do these have on the product(s)?


¡  Begin the annual planning process by assessing the current status of your product and your company

¡  Look for problems to address during the next fiscal year as well as opportunities to capitalize

¡  Do your best to predict the future based on current trends

¡  Will regulatory forces impact your product design and positioning?

¡  Challenge the way you look at your customers


II. Synthesis

Problems and

opportunities

Sales forecast &

goals

Product & product lines objectives

Positioning strategy


Action Program

Summary of background analysis & synthesis

Target Market Strategy

Product & Growth Strategy

Development & Testing Strategy

Pricing & Message Strategy

Branding & Advertising Strategy

Budget & Forecast Strategy

Sales & Distribution Strategy

Performance & Tracking Strategy


Contact information ¡ Wayne Chen ¡ [email protected] ¡ @MobiWayne or @WayneChenNY ¡  www.PocketSquareMedia.co ¡  Blog: www.Enovaminds.com

strategic product planning. part i: analysis by wayne chen

Business

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time andbudget

awareness level

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howcanyou getthere

wheredoyou wanttobe

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