Types of product strategies include product positioning, re-positioning, overlap, scope, design, elimination and diversification. Additionally, companies can compete by bringing entirely new products to market or offering a superior value on existing products. Important considerations when selecting a product strategy are research, design, pricing, promotion and distribution.
The plethora of available strategies reflects the reality of highly specialized markets. Good product strategies either meet an existing need with a quality solution or create a need by offering something so innovative and special that customers decide they don't want to live without it. Some products, such as organic foods, meet customer concerns about the environment and their own personal health. Other products, such as candy, fulfill customers' desires for a sweet treat.