Milestone 6: Product Strategy

  

Define what your offering actually is and why the target market from Milestone 4 should care.

Product strategy is about value creation. It comes before price, promotion and distribution because those decisions have nothing to work with until this one is settled. A strong product strategy explains what you offer, who it is for, and why it matters.

This milestone is about strategic product decisions, not packaging design or promotional tactics.

THE TOOLS YOU NEED

Everything required is below. Chapter 8 of the course readings covers each idea in more depth if you want it.

The three product levels

Every offering exists on three levels at once.

• Core      benefit:      the outcome the customer is really seeking. Not the object (someone buying      a drill wants a hole).
• Actual      product:      the tangible offering — features, design, quality level, brand name,      physical components.
• Augmented      product:      the supporting layer — warranty, support, updates, onboarding, community,      connected services.

Don't just describe the actual product and stop. The core benefit is what your positioning rests on, and the augmented layer is often where differentiation actually lives.

Consumer product classifications

• Convenience: bought      frequently, little comparison, low risk
• Shopping: compared on      price, quality and style before buying
• Specialty: unique enough      that buyers will not accept substitutes
• Unsought: buyers are      not looking for it and must be made aware

Your classification drives how much effort buyers will spend finding you, which shapes distribution and promotion later.

Product line and mix

• Product      line:      closely related products serving similar customers
• Line      length:      how many distinct items in the line
• Line      depth:      how many variants of each
• Product      mix:      all lines together
• Mix      width:      number of lines
• Mix      consistency:      how related they are
• Cannibalisation: when a new      item shifts existing customers rather than adding new demand

Product life cycle

1. Introduction
2. Growth
3. Maturity
4. Decline

Where your offering sits changes what the marketing has to do. A new product must build awareness and trial; a mature one defends share.

WHAT TO SUBMIT

You must include these six sections:

1. Your      offering in one sentence: What it is and what it does.
2. The      three levels:      Core benefit, actual product, augmented product. Be specific at each      level. The augmented layer is where you're most likely to be thinnest —      spend time there.
3. Features,      benefits, and why this target market cares: A      three-column table (feature → benefit → why it matters to the Milestone 4      target market specifically). A feature is what the product has. A benefit      is what that does for someone. The third column connects the benefit to something      you established about your target market.
4. Differentiation: • What      competitors offer that you must match to be taken seriously. • The one      thing you offer that they do not, that your target market values and you      can defend. • Why a competitor cannot copy it easily.
5. Classification,      line and life cycle: • Which consumer product classification fits, and      what that implies for how buyers will search for you. • Whether this is a      single item or the first of a line (and if a line, its likely length and depth,      plus any cannibalisation risk). • Which life-cycle stage it enters at, and      what that means the marketing has to accomplish
6. Alignment: Two or three      sentences connecting this product strategy back to your SWOT and your      target market decision. If the product needs a capability your SWOT listed      as a weakness, say so and say how you will handle it.

WHAT LOSES MARKS

• Features      listed with no benefit: "Stainless steel, 750ml, vacuum      sealed" tells the reader nothing about why anyone would buy it.
• Benefits      with no named customer: "Convenient and durable"      for whom? Tie it to your Milestone 4 target market by name.
• Differentiation      that is not differentiating: If every competitor also claims it,      it is a point of parity, not a point of difference.
• Ignoring      the augmented product: Support, warranty, onboarding and service are      often the easiest place to compete and the easiest to forget.
• A      product that contradicts the SWOT: If you listed no manufacturing      capability, a hardware-heavy strategy needs an explanation.

SUBMISSION AND AI USE

Submission — One PDF per student. Bullets and short paragraphs are preferred over continuous prose.

AI use — limited and transparent. You may use AI tools for support: reviewing product frameworks, organising your feature and benefit lists, or checking clarity. You may not use AI to define your product strategy or make product decisions on your behalf. The judgement must be your own.

If you use AI, add two or three sentences at the end describing how. You will not be penalized for disclosing. If you didn't use AI for this assignment, include a sentence saying so.

Grading Criteria

Points

The Three Product Levels

20

Exemplary: Provides a sophisticated and accurate breakdown of all three levels. The augmented layer is particularly well-developed with specific, actionable examples of secondary value (warranty, service, etc.).

20 / 20

Proficient: Detailed description of all three levels. The core benefit is clearly distinguished from features, though the augmented layer could benefit from more specific detail.

15 / 20

Developing: Addresses all three levels, but may struggle to differentiate between the core benefit and actual product features. The augmented layer is generic or lacks depth.

10 / 20

Emerging: Missing one of the three levels or provides very brief descriptions that do not demonstrate an understanding of the framework.

5 / 20

Not Evident: Section is missing or fails to address the three product levels.

0 / 20

Features, Benefits, and Target Market Fit

25

Exemplary: A clear, insightful three-column table. Every feature leads to a distinct benefit, and the connection to the specific Milestone 4 target market is deeply reasoned and evidence-based.

25 / 25

Proficient: Complete table that accurately maps features to benefits. The connection to the target market is clear, though perhaps one or two connections are somewhat broad.

18 / 25

Developing: Table is present but contains 'benefits' that are actually just more features. Connections to the target market are generic and could apply to almost any segment.

12 / 25

Emerging: Incomplete table or one that lists features without naming associated benefits. Fails to mention the Milestone 4 target market.

6 / 25

Not Evident: Missing the features, benefits, and target market fit analysis.

0 / 25

Differentiation and Value Creation

25

Exemplary: Clearly identifies realistic points of parity and a powerful, unique point of difference. The justification for why competitors cannot easily copy the offering is strategically sound.

25 / 25

Proficient: Successfully identifies points of parity and a point of difference. The defensibility explanation is present but may be slightly optimistic or less detailed.

18 / 25

Developing: Differentiation is weak or addresses qualities that the target market may not highly value. Point of difference is easily replicable by competitors.

12 / 25

Emerging: Fails to clearly distinguish between parity and difference, or lists 'differences' that are standard industry requirements.

6 / 25

Not Evident: No differentiation or value creation strategy provided.

0 / 25

Classification, Line and Life Cycle

15

Exemplary: Correct identification of classification, line, and life cycle stage. The entry provides expert-level analysis of how these factors dictate specific marketing and distribution actions.

15 / 15

Proficient: All components identified correctly. The analysis of marketing implications is logical, though stay at a high level rather than providing specific tactics.

11 / 15

Developing: One component is misidentified (e.g., wrong classification) or the implications for how buyers search are not addressed.

7 / 15

Emerging: Correctly labels the terms but provides no analysis of what those labels mean for the actual product strategy or marketing tasks.

3 / 15

Not Evident: Misses classification, line, and life cycle analysis entirely.

0 / 15

Alignment and Professionalism

15

Exemplary: Flawless alignment with the SWOT analysis; the strategy directly addresses prior weaknesses. Document is exceptionally clear and includes a transparent AI disclosure statement.

15 / 15

Proficient: Solid alignment with previous milestones. Writing is professional and easy to follow. A statement regarding AI usage is included.

11 / 15

Developing: Minor contradictions with the SWOT analysis exist. The formatting reflects some effort but may be cluttered. AI disclosure is vague or missing.

7 / 15

Emerging: Major contradictions with the SWOT analysis. Poor formatting makes it difficult to understand the strategy. No AI disclosure statement.

3 / 15

Not Evident: Total lack of alignment with previous milestones or failure to provide a professional submission.

0 / 15