Introduction:
The planning strategy is the route map of the series of events a product ought to go through from the idea to the implementation and follow-up.
The planning strategy is a need for the new developments and services presented by the organization.
Re-planning is required for the follow-up of the entire procedure or with the shift in the market requirements, technological improvement, and any other change that could affect the demand of the product, but to have an idea for the new product planning strategy is the most dedicated pathway.
The planning strategy helps to create the entire structure of how to carry out the production of the product. For an instance, the premise of the establishment, machinery needs, personal needs, and other factors which are directly or indirectly create an impact on the product line.
Factors affecting the decisions are:
Demand:
The organization’s motive is to make a product that fits its targeted audience. Customers tend to order products per their needs.
An organization with a motive in mind to survive and earn is willing to create its product to meet the customer requirements.
It is very difficult to find a pattern in the customer demand as it varies with certain elements like seasonality, liking, tastes, cost of substitute goods, and many more.
One of the prominent factors for customers’ demand is price.
Price and demand are inversely related to each other.
The more the price is, is less likely a large audience will buy the product. Companies should evaluate the price sensitiveness of their targeted audience before pricing their product.
Expansion of the product line:
The organizations give the greatest value to the expansion of the product line while preparing the product strategy.
It is the procedure of taking ownership of every step of the product from production to distribution. It collaborates with different steps of the supply chain to make the process as smooth as possible.
It helps the organization to have control over everything and not rely on others factors to work to make things work.
For example, a laptop manufacturing company is producing every component of the laptops in their factory rather than purchasing the parts from different distributors and assembling them in the factory.
It helps the companies to take over the responsibility for the quality of the product and may reduce the extra cost of purchasing the component from third-party sellers.
It depends a lot on the organization. It could be suitable for one organization may not necessarily be apt for the other.
Organizations need to decide to which extent they can integrate their product line.
Pliability:
Pliability plays a noteworthy role in providing the best possible product to the customers.
Pliability helps to cater to the audience for their happiness.
It allows the organization increases their market share to earn profits.
It states that an organization must know how to grow or reduce its production.
It is not cost-effective to produce a higher volume of goods whose demand fluctuates with time. Organizations having these kinds of products need to be flexible in their approach rather than producing goods.
Customer Interaction:
Customer interaction works as feedback on the product.
Customers are using this product, and having a say on the product reaching out to customers helps maintain a relationship with the customer, and it helps to improve the product where it is required.
Supervision:
An organization wants to put the best possible product in front of its customers.
They try their level best to make a product that attracts the audiences’ attention.
Availability of Resources:
Availability of resources is another aspect in determining the planning strategy.
The organization needs to identify their requirement, as the organization has to prepare plans beforehand and needs to know about the requirement of material or skilled personnel.
The organization needs to have the cost element in its mind as per the requirement. The cost of resources mainly changes with the change in availability and nature of the task. Cost can make or break the project as a separate budget is allowed to carry out the project.
Cost:
Cost is another factor when deciding on the planning.
A firm peeking ahead to start a new venture or even having a follow-up of the current is keen on the idea of planning. They have to plan accordingly. The cost could be many types like the cost of raw materials, expenditure, etc.
For Example:
An organization can have two types of costs while selecting the establishment of a factory for their business. Either it could be the price of the establishment acquired or as an expense called rent.
