Cannibalization Effect Product Cannibalization

 

Cannibalization effect is a phenomenon that occurs when a new product or service within a company’s portfolio competes with and reduces the sales and market share of its existing products or services. While it may seem counterintuitive for a business to undermine its own offerings, cannibalization can be a strategic move when managed effectively.

Introduction to Cannibalization Effect

Cannibalization effect, also known simply as “cannibalization,” refers to the situation where a company’s new product or service directly competes with its existing offerings, leading to a reduction in the sales or market share of those existing products. This phenomenon occurs when a business decides to introduce something new that appeals to its existing customer base, even if it means some of its existing products will lose sales.

Causes of Cannibalization Effect

Several factors can lead to the cannibalization effect:

1. Innovation: The introduction of innovative products or services can render existing offerings less attractive, prompting customers to switch to the new, superior option.
2. Market Evolution: Changes in customer preferences, market dynamics, or technological advancements may require companies to adapt and offer new solutions to remain competitive.
3. Competitive Pressure: The presence of strong competitors in the market can force a company to innovate and release new products or services to maintain or expand its market share.
4. Diversification: Companies often seek to diversify their product or service portfolios to reduce risks and capture a broader range of customers.

Impact of Cannibalization Effect

The cannibalization effect can have various consequences for a business:

Advantages:

1. Innovation: Cannibalization encourages companies to innovate and introduce new products or services, ensuring they stay relevant in a rapidly changing market.
2. Market Leadership: Embracing cannibalization can reinforce a company’s market leadership position by demonstrating its commitment to innovation and progress.
3. Sustained Growth: The introduction of new products or services allows a company to continue growing and adapting to changing market conditions.

Disadvantages:

1. Short-Term Revenue Loss: Cannibalization can result in a temporary decline in sales and revenue as customers switch to the new offerings.
2. Brand Confusion: Customers may become confused or frustrated when a company offers similar products with slight variations, potentially affecting brand loyalty.
3. Resource Allocation: Companies need to allocate resources for the development, marketing, and distribution of new products, which can be costly.
4. Channel Conflict: Cannibalization may create conflicts within distribution channels, as retailers or distributors may struggle to allocate resources and shelf space to competing products.

Strategies for Managing Cannibalization Effect

To effectively manage the cannibalization effect, businesses can implement several strategies:

1. Customer Segmentation: Identify distinct customer segments for existing and new products. Ensure that the new offerings cater to different customer needs or preferences.
2. Clear Communication: Transparently communicate the benefits of new products to existing customers. Explain how the innovations address their needs or offer superior value.
3. Gradual Transition: Implement cannibalization gradually rather than abruptly discontinuing existing products. This allows customers to adjust to the changes.
4. Pricing Strategies: Employ pricing strategies that encourage customers to switch to new products gradually. This can include offering discounts or bundling options.
5. Cross-Promotion: Promote new products to existing customers through cross-selling and bundling, creating synergy between the old and new offerings.
6. Innovation Pipeline: Establish a consistent innovation pipeline to continually introduce new products and stay ahead of market changes.
7. Monitoring and Adjustment: Monitor the performance of new products and be prepared to adjust marketing, pricing, and distribution strategies based on customer feedback and market dynamics.

Real-World Examples of Cannibalization Effect

1. Apple Inc.: Apple has strategically employed the cannibalization effect several times. When it introduced the iPhone, it cannibalized its own iPod sales, recognizing that the iPhone’s capabilities made standalone music players less relevant. Similarly, the introduction of the iPad disrupted its laptop sales, but it opened up a new market segment for Apple.
2. Toyota: Toyota introduced its hybrid vehicles, like the Prius, which cannibalized its own sales of traditional gasoline-powered cars. The company recognized the shift in consumer preferences toward more fuel-efficient and environmentally friendly vehicles, and it embraced this change through innovation.
3. Netflix: Netflix, originally a DVD rental service, transitioned to a streaming platform, cannibalizing its own DVD rental business. This move allowed Netflix to stay ahead in the evolving entertainment industry and cater to changing viewer habits.

Conclusion

The cannibalization effect is a complex phenomenon in business where a company’s new product or service competes with and reduces the sales and market share of its existing offerings. While it may initially lead to short-term revenue loss and brand confusion, when managed effectively, it can drive innovation, sustain growth, and maintain market leadership. By understanding its causes, impact, advantages, disadvantages, and effective management strategies, businesses can make informed decisions regarding the cannibalization effect. In a competitive business landscape, embracing well-managed cannibalization can contribute to long-term success and adaptability.

Product cannibalization is a situation where a company’s new product directly competes with and diminishes the sales and market share of its existing products. Essentially, it involves a company competing with itself by introducing a new offering that appeals to the same customer base as its existing products. While this may appear detrimental at first glance, product cannibalization can be a strategic choice made to maintain or expand a company’s overall market presence.

Causes of Product Cannibalization

Several factors can lead to product cannibalization:

1. Innovation: The introduction of innovative products or services can make existing offerings less attractive, prompting customers to switch to the new, superior option.
2. Market Evolution: Changes in customer preferences, market dynamics, or technological advancements may require companies to adapt and offer new solutions to remain competitive.
3. Competitive Pressure: The presence of strong competitors in the market can force a company to innovate and release new products to maintain or expand its market share.
4. Diversification: Companies often seek to diversify their product or service portfolios to reduce risks and capture a broader range of customers.

Impact of Product Cannibalization

Product cannibalization can have various consequences for a business:

Advantages:

1. Innovation: Cannibalization encourages companies to innovate and introduce new products or services, ensuring they stay relevant in a rapidly changing market.
2. Market Leadership: Embracing cannibalization can reinforce a company’s market leadership position by demonstrating its commitment to innovation and progress.
3. Sustained Growth: The introduction of new products or services allows a company to continue growing and adapting to changing market conditions.

Disadvantages:

1. Short-Term Revenue Loss: Cannibalization can result in a temporary decline in sales and revenue as customers switch to the new offerings.
2. Brand Confusion: Customers may become confused or frustrated when a company offers similar products with slight variations, potentially affecting brand loyalty.
3. Resource Allocation: Companies need to allocate resources for the development, marketing, and distribution of new products, which can be costly.
4. Channel Conflict: Cannibalization may create conflicts within distribution channels, as retailers or distributors may struggle to allocate resources and shelf space to competing products.

Strategies for Managing Product Cannibalization

To effectively manage and leverage product cannibalization, businesses can implement several strategies:

1. Customer Segmentation: Identify distinct customer segments for existing and new products. Ensure that the new offerings cater to different customer needs or preferences.
2. Clear Communication: Transparently communicate the benefits of new products to existing customers. Explain how the innovations address their needs or offer superior value.
3. Gradual Transition: Implement cannibalization gradually rather than abruptly discontinuing existing products. This allows customers to adjust to the changes.
4. Pricing Strategies: Employ pricing strategies that encourage customers to switch to new products gradually. This can include offering discounts or bundling options.
5. Cross-Promotion: Promote new products to existing customers through cross-selling and bundling, creating synergy between the old and new offerings.
6. Innovation Pipeline: Establish a consistent innovation pipeline to continually introduce new products and stay ahead of market changes.
7. Monitoring and Adjustment: Monitor the performance of new products and be prepared to adjust marketing, pricing, and distribution strategies based on customer feedback and market dynamics.

Real-World Examples of Product Cannibalization

1. Apple Inc.: Apple has strategically employed product cannibalization several times. When it introduced the iPhone, it cannibalized its own iPod sales, recognizing that the iPhone’s capabilities made standalone music players less relevant. Similarly, the introduction of the iPad disrupted its laptop sales, but it opened up a new market segment for Apple.
2. Toyota: Toyota introduced its hybrid vehicles, like the Prius, which cannibalized its own sales of traditional gasoline-powered cars. The company recognized the shift in consumer preferences toward more fuel-efficient and environmentally friendly vehicles, and it embraced this change through innovation.
3. Netflix: Netflix, originally a DVD rental service, transitioned to a streaming platform, cannibalizing its own DVD rental business. This move allowed Netflix to stay ahead in the evolving entertainment industry and cater to changing viewer habits.

Conclusion

Product cannibalization is a complex phenomenon in business where a company’s new product competes with and reduces the sales and market share of its existing products. While it may initially lead to short-term revenue loss and brand confusion, when managed effectively, it can drive innovation, sustain growth, and maintain market leadership. By understanding its causes, impact, advantages, disadvantages, and effective management strategies, businesses can make informed decisions regarding product cannibalization. In a competitive business landscape, embracing well-managed cannibalization can contribute to long-term success and adaptability.

By Gennaro Cuofano

https://tinyurl.com/mryef4ts

BCG Matrix- How To Use, Insights and Free Templates

 

The BCG Matrix was initially sketched by Alan Zakon, a senior executive at BCG, and was later refined by Bruce Henderson, the founder of BCG, in his 1970 essay The Product Portfolio.

The BCG Matrix gained widespread use during the 1970s and was adopted by many Fortune 500 companies to manage diversification.

The BCG Matrix is still widely used today, although modern business dynamics have introduced new complexities that the traditional matrix did not fully account for​.

What is the BCG Matrix?

The BCG Matrix, also known as the Growth-Share Matrix, is a strategic framework developed by the Boston Consulting Group in 1970.

It helps firms evaluate their product portfolios by categorising products into four quadrants based on market growth rate and relative market share.

The matrix offers guidance on where firms should invest, divest, or maintain, and how they can best allocate resources across their product lines.

A Guide to the BCG Matrix

Market Growth

Traditional View:
The market growth rate refers to how attractive a market is in terms of expansion opportunities.

High-growth markets offer potential for revenue growth, while low-growth markets often represent maturity or saturation.

Traditionally, companies invested heavily in high-growth markets and maintained profitability with minimal investment in low-growth markets​.

Contemporary View:
In today’s business landscape, high-growth markets are more volatile and susceptible to disruption.

Rapid technological shifts and shorter product lifecycles often complicate long-term investment strategies.

For digital sectors, growth cycles are shorter, and companies must continuously adapt to remain competitive.

Key considerations:

• Volatility: High-growth markets are more vulnerable to economic fluctuations and technological advancements.
• Short product lifecycles: Digital products often experience faster saturation.
• Disruptive technologies: Technological innovations can rapidly change the market landscape​

Market Share

Traditional View:
Relative market share measures a product’s competitive strength compared to its largest rival.

Higher market share traditionally correlates with competitive advantages like economies of scale and increased profitability.

Products with low market share typically require substantial investment to become competitive​.

Contemporary View:
In today’s service-based and digital sectors, market share is not always the best measure of success.

For example, network effects, customer retention, and recurring revenue models often hold more importance than traditional market dominance.

Smaller, agile organisations can outcompete larger players by focusing on customer experience and innovation.

Key considerations:

• Network effects: In digital industries, user engagement and network growth often outweigh traditional market share.
• Scalability: Digital products can achieve rapid growth without high market share.
• Recurring revenue: Subscription business models focus on customer retention rather than market dominance​

The Four Sections of the BCG Matrix

BCG Matrix: Cash Cows (High Market Share, Low Growth)

Traditional View:
Cash Cows are products with high market share in low-growth or mature markets. These products generate reliable cash flow with minimal investment, as competition is limited. Firms often use profits from Cash Cows to fund investments in Stars or Question Marks​.

Contemporary Insights:
While Cash Cows continue to be valuable for maintaining financial stability, firms today also use them to drive innovation and diversify product offerings.

Markets evolve and so firms need to regularly reassess their relevance and explore incremental improvements or new customer segments.

Strategic Decisions:

• Maximise profitability: Focus on cost-efficiency to sustain cash flow.
• Invest in innovation: Use steady cash flow to fund innovation or enter adjacent markets.
• Diversify product lines: Extend product offerings to maintain customer interest​.

Example: Procter & Gamble’s Pampers brand generates significant cash flow, allowing the company to invest in developing new products​.

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BCG Matrix: Dogs (Low Market Share, Low Growth)

Traditional View:
Dogs are products with low market share and limited growth potential. These products often underperform financially, generating little to no profit. Traditionally, companies divested Dogs to redirect resources to more promising ventures​.

Financial Perspective:
From a financial standpoint, Dogs contribute minimally to revenue and may generate losses. Maintaining Dogs ties up capital and resources that could be better deployed elsewhere.

Companies that divest Dogs can improve profitability by reducing overhead costs and reallocating resources to higher-growth areas​.

Contemporary Insights:
Some Dogs can still offer strategic value, especially in niche markets. These products might provide customer insights, create synergies with other units, or generate steady, if modest, revenue. Firms should weigh up these benefits against the financial strain these products impose.

Strategic Decisions:

• Divest or exit: Most Dogs should be divested to free up resources for more promising products.
• Reposition for niche markets: Dogs may succeed in smaller, specialised markets with less competition.
• Reduce costs: Implement cost-cutting measures to minimise the financial burden​.

Example: Apple’s iPad is now considered a Dog, yet Apple continues to produce it for a loyal customer base​.

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BCG Matrix: Question Marks (Low Market Share, High Growth)

Traditional View:
Question Marks are products with low market share in high-growth markets. They require substantial investment to increase market share, with the potential to become Stars. However, if they fail to gain traction, they risk becoming Dogs​(Boston Consulting Group…).

Contemporary Insights:
In the digital economy, Question Marks face more risk due to rapid changes in consumer preferences and technology.

Firms can employ agile methodologies to test the viability of a product before fully committing resources which reduces the risk of over investing in the early stages of development.

Strategic Decisions:

• Invest selectively: Carefully assess potential before committing significant resources to growing market share.
• Test and iterate: Use agile approaches to validate market demand.
• Divest early: Exit the market if growth prospects are weak​(Understanding the BCG G…)​(Boston Consulting Group…).

Example: Apple TV remains a Question Mark, with Apple investing heavily in content while competing against dominant players like Netflix​(What Is the Growth Shar…).

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BCG Matrix: Stars (High Market Share, High Growth)

Traditional View:
Stars are products with high market share in high-growth markets. These products often require substantial investment to maintain their leadership positions but have the highest potential for growth. Stars are key drivers of future revenue and, as the market matures, often transition into Cash Cows​(Boston Consulting Group…).

Contemporary Insights:
In tech-driven markets, Stars face constant competition and shorter product life cycles. Companies must continuously innovate to maintain their market leadership. Agility and a deep understanding of consumer trends are essential to maintaining a Star’s status.

Strategic Decisions:

• Sustain high investment: Continue investing in growth to maintain leadership.
• Explore integration opportunities: Use vertical or horizontal integration to strengthen market position.
• Prepare for market maturation: Plan for the product’s transition into a Cash Cow as the market matures​.

Example: The iPhone remains Apple’s Star, commanding high market share and driving significant revenue, while Apple invests in R&D to maintain its competitive edge​.

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BCG Matrix Example

The BCG Model is based on products rather than services, however, it does apply to both. You could use this if reviewing a range of products, especially before starting to develop new products.

Looking at the British retailer, Marks & Spencer, they have a wide range of products and many different lines. We can identify every element of the BCG matrix across their ranges:

• Stars

Example: Lingerie. M&S was known as the place for ladies underwear at a time when choice was limited. In a multi-channel environment, M&S lingerie is still the UK’s market leader with high growth and high market share.

• Question Marks/Problem Child

Example: Food. For years M&S refused to consider food and today has over 400 Simply Food stores across the UK. Whilst not a major supermarket, M&S Simply Food has a following which demonstrates high growth and low market share.

• Cash Cows

Example: Classic range. Low growth and high market share, the M&S Classic range has strong supporters.

• Dogs

Example: Autograph range. A premium-priced range of men’s and women’s clothing, with low market share and low growth. Although placed in the dog category, the premium pricing means that it makes a financial contribution to the company.

Conclusion: Strategic Importance of the BCG Matrix

You can also apply the BCG model to areas other than your product strategy.

For example, I developed this matrix as an example of how a brand might evaluate its investment in various marketing channels.

The medium is different, but the strategy remains the same –  milk the cows, don’t waste money on the dogs, invest in the stars and give the question marks some experimental funds to see if they can become stars.

Whether you’re strategising for growth or assessing performance, these ready-to-use templates will help you visualise your company’s market position and make informed decisions.

https://tinyurl.com/bddffx3t

Product Management Tools: What Should Your Product Stack Include?

 

When talking about tools for product managers, we’re usually referring to the standard few that most product managers use every day. These product management tools generally include product analytics software, development tracking tools, and roadmapping software.

But a product manager’s job involves a lot more than gather product insight, tracking the backlog, and reviewing the product roadmap. Whether you’re a new product manager or a seasoned PM just wanting to make sure you’re not missing a key component of your role because you’re lacking the proper tool—the following is a list of product management tools to help you excel in your role.

12 Product Management Tools to Have in Your Product Stack

1. User tracking and analysis tools (such as Pendo and Amplitude)

These tools can be invaluable sources of intelligence and insight into how your software’s users or your website’s visitors are actually engaging with your product and your content.

Whereas customer surveys or interviews — which are valuable tools in their own right — will tell you only what your customers say and think product analytics platforms capture and help you analyze what those customers actually do.

If your company sells software or just maintains a lot of content on a website, deploying a service like Pendo or Amplitude can uncover important realities about what resonates with your users, and what doesn’t.

2. Roadmapping software (such as ProductPlan)

Roadmapping software is a must-have item on any list of product management tools. Using any non-native roadmap application to draft and maintain your product roadmap (such as spreadsheets or slide decks) will create far more work, be far less flexible and easy to share, and more prone to version-control issues that can slow your product’s progress. This is exactly why we built ProductPlan.

ProductPlan makes it easy for product teams to build and collaborate on product roadmaps. A visual, interactive roadmap is much more effective for communicating product strategy and helps align your team around your product vision.

3. Customer survey tools (such as SurveyMonkey or Typeform)

What’s great about web-based survey tools like SurveyMonkey or Typeform is that they have so many types of pre-formatted questions that, whether you want to offer multiple-choice questions, drop-down lists, or just open comment fields, you can put together a survey in minutes.

You can then send the survey out to your customers and easily track and analyze the results.

For gathering quick answers to important user questions, these tools are extremely helpful. But beware: Like email, online survey tools are so easy, convenient, and inexpensive that it can be tempting to overuse them. Use your surveys sparingly, so as not to upset your user base.

For gathering quick answers to important user questions, these tools are extremely helpful. But beware: Like email, online survey tools are so easy, convenient, and inexpensive that it can be tempting to overuse them. Use your surveys sparingly, so as not to upset your user base.

4. Recording apps for customer interviews (such as GoToMeeting or Zoom)

When you speak on the phone with customers, even if you’re just calling to answer a question, it’s always a great idea to record the call. Using a tool such as GoToMeeting or Zoom makes it easy to record those conversations and reference them later. You never know when a customer will offer valuable insight, ask a question you realize a lot of other users will have, or just share with you a novel why they’re using your product that you might not have otherwise thought of.

5. Industry analyst accounts (like Gartner or Sirius Decisions)

Here’s a tool you probably wouldn’t immediately think of as part of the product management tool stack — but depending on your industry and target customer, you might want to consider it.

Having access to the collective industry research and the latest thinking of the analysts covering your space can be extremely beneficial in terms of guiding your strategic thinking and helping you determine where your market is headed. The statistics and reports these research firms (such as Gartner or Sirius Decisions) output can give you just the types of data you need to prioritize and earn stakeholder buy-in for specific themes and features on your product roadmap.

Of course, this will be among the most expensive product management tool on this list, so you might need to use your powers of persuasion (which you no doubt have as a product manager) to convince your management team of its value.

6. Team messaging tools (such as Slack or Confluence)

When your product development, or any complex and cross-functional initiative, gets underway, you will want an easy and immediate means of communicating — as well as maintaining an ongoing record of all communications related to the initiative.

Thankfully, there are many simple, cloud-based tools that allow for just this type of easy and centralized team communication. Slack and Atlassian’s Confluence are a few that come to mind.

7. Presentation software (like PowerPoint or Keynote)

We often point out how inefficient presentation tools are for roadmaps. But that doesn’t mean that PowerPoint or Keynote shouldn’t have a prominent slot in your product management toolkit.

Presentation decks can be invaluable for communicating your high-level strategies, visions, and plans across your organization and to external audiences like customers.

Vision decks, for example, can be a powerful way of communicating your product’s vision to a group of executive stakeholders and earning their buy-in. Presentations can also be a highly effective way of conducting sales training or educating industry analysts about your product.

8. Project management tools (such as Jira, Pivotal Tracker, or Trello)

Like the team messaging tools we listed above, today’s project management applications are much more robust and provide a simplified means of tracking and documenting details.

Using a web app such as Trello, for example, you can track and share various items with relevant team members by grouping these items into easy-to-view Boards — such as “Sales Collateral in Progress” — and then creating individual Cards below, such as “Product Data Sheets” or “Case Studies.” These cards can easily be dragged and dropped under different Boards — say, from “In Progress” to “Under Review.”

Other popular project management tools include Microsoft Project, which teams typically arrange in Gantt chart format, and Jira, which is often configured as a less visual issue-tracking tool. And tools like Pivotal Tracker will help you to execute on your roadmap and keep your backlog organized.

9. Feature flagging software (such as Split.io or LaunchDarkly)

Feature flags give product teams an easy way to “turn on and off” specific features once code has been deployed to production. This comes in handy in a number of scenarios: coordinating a big feature launch, A/B testing, rolling back a new problematic feature.

Tools such as Split.io and LaunchDarkly empower product teams to manage feature flags and get the most out of their usage.

10. Session replay and heatmap tools (such as FullStory or Hotjar)

As a product manager, you spend a lot of time trying to dig into the minds of your customers and unearth exactly what the experience of using your product is like for them. With tools like FullStory and Hotjar, you can get insight into user behavior like never before.

Heatmap software helps you understand exactly what users on your site care about by visually representing their on-site behavior. This insight can be extremely valuable as supplemental data for your product team. A heatmap in conjunction with a number of session replays and a few customer interviews will give you plenty of data to make an informed product decision.

11. Flowcharting tools (such as Visio)

Although not all product managers use flowchart and diagram applications, the affordability and ease of use of these tools make them a great way of performing a step that many PMs overlook but shouldn’t — customer journey mapping.

Creating a customer journey map is helpful in giving you and your organization a clearer view of your customer’s full experience with your company. When created properly, a journey map will show all of the touchpoints an individual has with your organization from the first visit to your website (or the first call from one of your sales reps) through purchasing and using your product.

Journey maps can also focus specifically on the full experience of using your product — say, from the first visit to the site, through completing an online form, through any contacts the user has with your sales reps or other staff, through downloading and logging in to your tool.

Flowcharting and diagramming tools — like Microsoft Visio and OmniGraffle — can be helpful in mapping out any specific aspects of a user’s workflow or experience with your product. And because they offer a visual view of that workflow or experience — as opposed to merely a list of steps your customer will take — the flowcharts you output from these tools can then help you uncover insights into how to strategically prioritize your product roadmap.

12. Idea-capture and collaboration tools (like Evernote and Google Drive)

Finally, don’t forget the business productivity tools to capture ideas, review and share notes from meetings, and organize your insights into cohesive plans to earn stakeholder support.

Here we’re thinking about idea-capturing tools like Evernote, cloud-based collaboration apps like Google Drive, Dropbox — and even paper and pen because sometimes inspiration strikes when your smartphone is across the room!

Get a Budget for Your Product Management Tools

Requesting budgets for a tool is still a relatively rare occurrence for product teams, who traditionally haven’t had any dedicated budget and rarely ask for anything financial other than approving travel expenses or a new laptop. So, how do you successfully broach this subject with the executives holding the purse strings?

1. Make assumptions

Paint a picture of how life will be better once you have this tool because you’re either more productive, more nimble, your customers are happier, you’re saving the company money or you’re improving time to market, you can begin trying to quantify those benefits.

For example, having a requirements management tool will save the team 15 hours per week and reduce the likelihood that customer requests will fall through the cracks, which will reduce the average turnaround time from customer feedback to deployed feature by one sprint.

2. Strength in numbers

While a tool that only helps product management is still valuable, a much stronger case can be made when the tool will benefit other groups in the organization. This could be via direct usage—meaning that not only will product management use this tool but it will also be utilized by customer support or engineering—or as an indirect benefit where the output of the tool will be consumed by another group and make them more efficient as well. In addition to benefitting more than just the product management team, it also gives you another executive in your corner when it’s time to ask for money.

3. Acknowledge the alternatives

In most cases, there are multiple vendors offering specialized software solutions that address your needs. Even if you have already settled on a particular vendor, do your homework and include the other options as part of your pitch.

You can highlight why the solution you’re sweet on is superior, whether it’s the features or the cost, and potentially have a fallback plan if there’s a cheaper, inferior choice you could live with if you can’t get the full budget you were looking for.

4. Try the free-trial

If the tool you want has a free trial, dive in and start using the product before you even broach the budget subject with the powers that be. Not only will you be able to confirm that it’s the tool you want, but you can also collect more data to strengthen the business case when the trial is ready to expire, and you can demonstrate exactly how your team is using it.

5. Overcome the uncomfortable ask

Product teams aren’t used to requesting a budget for tools, but that doesn’t mean the team doesn’t deserve them. High performing organizations need tools and processes that support their growth and expanding portfolio, so there’s no shame in requesting the budget required to equip your team with tools that can truly make a difference. Even if the funds aren’t available immediately, you can at least start the conversation to carve out a dedicated product management tool budget for the next planning round to get them in the future.

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