What Product Strategy and Selection Means for Your Company?

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Identifying products to sell is not as easy as many think. 

 

When a small business owner considers starting a company geared toward selling goods, he or she must decide what products their company will sell. 

This decision will be based on numerous factors some of which include:

  • Type of product: standard sell or fast moving product, demand of product, long tail products, vital or luxury product
  • Timing: Whether the product is new to the marketplace or currently existing
  • The preferences of small business owner: i.e. occupation, personal interests, hobbies etc.
  • Corporate purpose- brand considerations  
  • Customer target demographics: age, gender, type of population
  • Location: country of product origin
  • Positioning: Environmental concerns (organic vs. non-organic) or Health consciousness (vegetarian vs. carnivore), etc.

The product selection will likely determine the type of potential customers a company may will attract. It will also impact the development of the corporate identity. Moreover, it will help shape a corporation’s marketing strategy

Theses inputs can identify who the corporate sponsors or partners are likely to be. A new product introduction within a given market, whether it was awarded a recent patent or newly trademarked product, invites notice from competitors (regular competitor or one with a monopoly), the public, media and government. 

A small business owner need to consider licenses types and/or approvals the company is required to obtain prior to releasing product to market.  Furthermore, certain products may attract interest from:

  • Non-profits seeking to partner with humanitarian
  • Environmental
  • Social agendas with that of a particular product.

Once a product is identified and selected for potential sale, it’s recommended to test the product demand prior to large scale release. This serves to identify the potential sales level based on demand. 

As a next step establish a retail price point based on the following: 

  • Wholesale cost
  • Transportation
  • Fees
  • Taxes

These factors will identify the expected margin core to the decision.

Identifying products to sell is not as easy as many think. 

Nothing is guaranteed and careful thought, analysis and diligence must be had ahead of time to try to ensure that what is being added to the market, will generate enough interest by consumers that translates to actual sales for the company.

Related articles:

A Total Marketing Strategy Targeting Market Segments                       

Developing A Relevant Brand Strategy

Having a Small Business Strategy to Grow a Fashion Brand

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