Product Strategy for entering the market.
While entering the market with a new product or as a new player in the existing market, should you adopt a narrow product Line or broad Product line strategy with a suite of product portfolio?
Here are a few examples:
- Jeff Bezos started Amazon by selling books online and gradually grew its product portfolio to sell everything online. To enter the market with a new product or any new concept, the first phase is for Customers to form the habit of buying online. So, Amazon started with only one product, books and then gradually introduced a wide range of products once the customers developed the habit of buying online.
- Marc Benioff started Salesforce by building CRM software on the cloud for Small and medium enterprises. In 1999, Siebel and other players in the CRM domain were targeting Large enterprises. Salesforce was clear about the target customer and the problem that it can solve for them. Salesforce started with a narrow product strategy by building one single application on the cloud and then grew to a broad portfolio in the last 20 years.
- In India, Cred started in 2018 with only one use case for its customers to be able to pay credit card bills on its platform. Once the customers have developed the habit of using Cred, they started selling stuff on Cred. Now, Customers can also pay House rent, Utility bills on Cred. The same Strategy is followed by Cred. Initially, start with a narrow and specific problem for a target customer segment, then gradually expand your product portfolio.
As a product manager, if you are building a new product or entering a new market with your product, the recommended Product strategy is to have a narrow product strategy initially.
You must have complete clarity about the target customer and the specific problem that the product will address.
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