What is a Core Product? How to Build a Business Around It?

Core Product Concept

Any product is an output resulting from the needs and demands of its end users. It is developed because someone somewhere wanted or needed it. Not all products come in the form of items or objects. Some also come in the form of services. A core product is a basic need that leads to designing and developing a specific object or service.

Core Product Examples

a.   A scooter was developed because someone needed a mode of transportation that runs faster than a bicycle but does not occupy a large space like a car.

b.   A mobile phone was created because someone needed a means of communication while on road.

Importance of a Core Product

1. A core product builds the foundation of a company’s business.
2. A core product defines the level of expertise and accomplishment of a company.
3. A core product fulfils an essential market demand and ensures customer satisfaction.
4. A company relies on its core product for growth in business and its further development in the long run.

3 Levels of a Product

Every product that a company produces is not a core product. There are three different levels of a product:

• Core Product: A core product is not always the end product a customer uses. It can be in the form of a concept, information, or experience.
• Actual Product: An actual product has a physical entity or service model. It is delivered to actual users who evaluate the effectiveness of the product and its features.
• Augmented Product: An augmented product is the innovative version of an existing product. It has certain additional features to enhance the user’s experience.

A company builds all its business and marketing strategies focusing on its core product. However, it develops actual products to gain a foothold in a competitive market and augmented products to keep the business sustainable.

How to Build Business Strategies Around a Core Product

A study by IBM Institute found that 90% of India’s start-up companies failed within five years of launching. Although many of them had a unique core product, they still failed due to a poor business model and lack of innovation in the core product.

A well-planned data-driven approach is required to develop business strategies around a core product. Web-based market analysis is a cost-effective and easiest technique to collect the right data for business. You have options like social media platforms, paid search marketing campaigns, digital tools, etc., to know the market and its customers. Here are nine essential steps to building a successful business around a core product: 

Conduct a customer survey: Identify ideal customers who need your core product. Know their problems that can be resolved with the core product. Collect data on their buying behaviour, product preferences, and usage habits and analyse them to understand customer expectations from the product.

Conduct market research: Gather information on your competitors, their product, and pricing. This helps you define the Unique Selling Proposition (USP) of your core product. Plan your marketing and branding strategies accordingly to make your business stand out.

Prepare the actual product properly: Customers will spend money to buy your actual product. Create features, functions, and designs considering the customer survey results. Ensure delivery of a good quality product that meets customer expectations.

Create a brand awareness campaign: Prepare a trustworthy brand story to educate customers about your product. Keep this content simple but interesting, ensuring it instantly connects with customers. They must understand the message and feel curious about your product.

Launch and promote your product: Use the correct advertising strategy to ensure that users realise the opportunities the product offers. Publicise promotional content online through the company’s website and social media platforms. Along with the digital campaign, use traditional marketing channels like newspapers, magazines, and TV channels to create a buzz around the product.

Reach out to probable consumers: Start an e-mail marketing campaign to increase your customer base. Send personalised e-mail messages with detailed product descriptions to prospective product users. Interested consumers will get back to you via e-mail.

Establish direct connection with new product users: Use social media platforms to interact with your customers using the product. Consider it as a form of after-sales service. Answer customer queries related to the product and its usage. It gives them a sense of care and support. Take their feedback and product reviews seriously. Analyse those users’ experiences for future modifications of the product.

Stay organised: Selling an actual product in huge numbers is not the ultimate goal of a core product. It goes beyond that. Build a strong positive image for your product brand to grow a prosperous business around it. Continue to produce a good quality product. Do the needful to make the product accessible to the maximum users. Provide a great after-sales service to retain customers. All these are possible when you have a well-organised management team in place.

Use innovations to upgrade the core product: Your actual product may show outstanding performance in the present market trend. It indicates that the principal idea behind the core product is user-friendly. Still, further refinement is needed to make it sustainable in this ever-changing market scenario. Add new features and functions to your product from time to time. Include customer feedback and product review based on user experience to develop any new product enhancements.

Conclusion

The journey from developing a core product to building a business establishment is long. Nothing will happen overnight. There are no shortcuts. However, using marketing analytics tools often simplifies several complex processes like pre-sales market research and studying consumer behaviour. It also saves a lot of your time and money.