Product Analysis: Types, Methods, and Examples

When it comes to making products, there’s no room for guesswork.

The market is filled with products that somehow surprisingly fit the exact need of the user. Moreover, most of these do what the company claims, and some thoroughly fail their product delivery.

All of this is the result of product analysis.

Product analysis helps us understand the product down to the T. From manufacturing units to economic costs, utility, services, design, and technology up to its USP.

In this article, let’s understand what product analysis is and why it is necessary to create successful products.

Let’s get started!

What is Product Analysis?

Product analysis is “the process of gathering, defining, and analyzing data about a product or service to make better decisions.”

To create products that fit the needs of your target market, you need to have a clear understanding of what those needs are. 

This is where product analysis comes in.

Through product analysis, you can understand the following about a product:

• The product design
• How it is made
• Its component parts
• The manufacturing process
• The costs involved in making the product
• Its utility and usefulness
• The design of the product
• The technology used in making the product
• The product marketing
• Its unique selling proposition
• Competitive analysis.

By understanding all of these aspects of a product, you can make better decisions about how to create and market the product.

Product analysis is not just limited to physical products, though. It can also be used for services, websites, and even software or SaaS.

Product analysis aims to understand as much as possible about a product so that informed decisions can be made.

What Is Product Analysis in Design and Technology?

Product analysis is not just limited to business and economic factors.

It can also be used in the design and technology of products.

A product designer uses product analysis to help understand how well the product meets your customers’ needs.

You Can Use Product Analysis To Evaluate Things Like:

• The usability of your product
• The ergonomics of your product
• The aesthetic appeal of your product
• The durability of your product

By understanding these factors, you can make decisions about how to improve the user experience and implement the customer’s needs into your product roadmap. 

In technology, product analysis helps you understand the feasibility of your product.

You Can Use It To Assess Things Like:

• How well your product meets customer needs
• The complexity of your product
• The cost of manufacturing your product
• The time it will take to develop and deploy your product
• The demand for the features v/s the capacity of your engineering team.
• The prioritization of certain features over others.

By understanding these factors, you can make decisions about how to improve the technology of your product.

Why Is Product Analysis Necessary?

Now that we know what product analysis is, let’s look at why it’s so necessary for any product team.

Product Analysis Is Necessary as It Allows You To Understand the Target Market for Your Product.

You can’t create a product that people will want to buy if you don’t know what they want. Product analysis helps you figure out the needs and wants of your target market.

This is essential to creating a successful product.

Product Analysis Is Also Necessary Because It Allows You To Understand Your Competition.

To create a successful product, you need to know what your competition is doing. Product analysis helps you understand the strengths and weaknesses of your competition.

This knowledge will help you make decisions about improving upon their products and give you an edge in the market.

Product Analysis Is Necessary as It Allows You To Understand the Costs Associated With Making and Selling Your Product.

In case you are unaware of how much it costs to make a product, you won’t be able to deal with it for a profit. Product analysis helps you understand all of the costs involved in creating and selling a product.

This information is essential to make decisions about pricing and profitability.

Product Analysis Is Also Necessary Because It Allows You To Understand the Risks Associated With Making and Selling Your Product.

There are always risks involved in any new product. Product analysis helps you identify and assess those risks to make informed decisions about your product strategy.

Product analysis is also necessary because it helps you understand the potential of your product lifecycle.

Not all products are equally created, and some have more potential for growth than others. Product analysis helps you identify which products have the most potential and decide how to best capitalize on that potential.

There are many reasons why product analysis is necessary, and these are just a few of the most important ones.

Product analysis is an essential part of any product team’s work and should be given the attention it deserves.

One of the most fundamental reasons product analysis is crucial is because it helps you understand how well your product will compete in the market. This is called competitive product analysis.

We will cover that in more detail in our product analysis methods.

A lot of times, product managers and product owners use various terms interchangeably with product analysis.

Other processes help you gain insight into your product, but they shouldn’t be used identically.

Here’s a distinction between some significant processes.

Examining the Difference Between Product Screening and Product Analysis

Product screening is identifying products that meet a particular set of criteria.

This could include products that have a specific feature, are in a certain price range, or meet some other requirement.

Screening helps you narrow down your options and focus on the products that are most likely to be successful.

On the other hand, product analysis is the process of studying a product to understand its strengths and weaknesses.

Analysis helps you understand how well a product will meet your customers’ needs and what improvements can be made.

What Is the Difference Between Customer Analysis and Product Analysis?

Customer analysis is studying your target market to understand their needs and wants.

The information is then used to decide what features to include in your product and how to market it.

The best product management software like Chisel helps you in understanding your target market efficiently.

On the other hand, product analysis is the process of studying a product to understand its strengths and weaknesses.

Analysis helps you understand how well a product will meet your customers’ needs and what improvements can be made.

As you can see, product analysis is just one piece of the puzzle for developing a successful product.

But it’s an important piece and one that should not be overlooked.

If you want to create a product that meets your customers’ needs, you need to analyze what they want as well as how to deliver it. 

Difference Between Ladle Analysis and Product Analysis

Ladle analysis is studying the metal content of a sample to understand its composition.

This information is then used to decide how to best use the metal.

We’ve already learned that assessing a product and determining its strengths and flaws is known as product analysis.

Product analysis aims to help you determine how well a product will fulfill your users’ demands and what modifications may be made.

As you can see, many different types of analyses can be done on a product,  and cloud scraping has emerged as a valuable tool to gather extensive data about a product’s performance and user feedback.

Each one provides valuable information that can be used to make decisions about the product.

Product analysis is essential because it helps you understand your product and how to make it better when it comes down to it.

Without product analysis, you would be flying blind and making decisions based on guesswork.

So now that we know what product analysis is and why it’s important let’s look at some of the different methods used.

Product Analysis Methods

Several product analysis methods help you understand a product in detail.

Here are the most popular product analysis methods to get you started:

1. KJ method
2. SWOT analysis
3. Value chain analysis
4. PESTLE analysis
5. Business model canvas
6. Competitive product analysis

To understand which method to adopt, it is essential to know each.

KJ Method

The KJ method is a popular technique used to help understand a product.

It’s also known as the Affinity Diagram, and it’s often used in product design and development.

The KJ method is a way of organizing information by grouping it into categories.

This can be done by brainstorming with a group and then sorting the information into groups.

The advantage of using the KJ method is that it helps you see patterns and relationships between ideas.

It can also help you find solutions to problems.

SWOT Analysis

SWOT analysis is another standard product analysis tool. It’s also known as the TOWS matrix.

SWOT implies strengths, weaknesses, opportunities, and threats.

The SWOT matrix can help you make decisions about what to do next.

It can also help you understand how your competitors operate.

The advantage of using SWOT analysis is that it helps you understand a product by looking at its positive and negative aspects.

Value Chain Analysis

The value chain analysis method is used to understand the activities that a company performs to create value for its customers.

It includes all the stages, from acquiring raw materials to delivering the finished product to the customer.

The advantage of using this analysis is that it helps you see how your company creates value for its customers and where there are opportunities for improvement.

It’s also known as the value chain model.

PESTLE Analysis

PESTLE analysis is another popular product analysis tool, and it’s also known as the PESTEL framework.

PESTLE stands for the political, economic, social, technological, legal, and environmental factors.

This type of analysis is used to understand the external factors that can impact a product. This can help you make decisions about things outside your scope and how to work your way around them.

Business Model Canvas

The business model canvas is an element used to help businesses understand their products. It’s a way of visualizing a company’s business model.

The advantage of this is that it helps you understand how a product works and what it needs to succeed.

And most importantly, let’s discuss competitive product analysis.

Competitive Product Analysis

Competitive product analysis is studying your competitors and their products to understand how well they meet the needs of their customers.

You can learn a lot from the competitor’s products, including:

• What features are included in their product
• How well do those features meet customer needs
• How competitive the pricing is for their product
• What marketing strategies they’re using
• How successful they have been so far

Understanding all of this information about your competition, you can decide how to improve their products and provide yourself an edge in the market.

Why Is a Competitive Product Analysis Critical?

A competitive product analysis is crucial because it allows you to understand the strengths and weaknesses of your competition.

This knowledge will help you make decisions about improving upon their products and give you an edge in the market.

To do a competitive product analysis, you need to gather data about your competitor’s products.

This data can come from various sources:

• Product reviews
• Industry reports
• Company websites
• Social media platforms
• Online forums
• Competitor product packaging

To stay competitive online, it’s essential to study your competitors’ strategies on various digital platforms, including their approach to keyword research, content creation, and backlink building, to understand how they promote their products. Using tools like SE Ranking analyze your competitors’ top pages and traffic to gain valuable insights into what brought them the best results.

Once you have gathered this data, you need to analyze it and identify your competitor’s products’ key strengths and weaknesses.

Then, you need to create a strategy for how you can capitalize on your competitor’s weaknesses and improve upon their products.

There are many ways to do a competitive product analysis. Still, the most essential part is to make sure that you are gathering accurate data about your competitor’s products.

Keep in mind to use reliable sources to make informed decisions about your product strategy.

Each product analysis method has its own unique advantages that can help you understand a product better.

So, which methods should you use? It actually depends on your specific goals and needs.

Suppose you’re trying to understand the overall strengths and weaknesses. In that case, SWOT or business model canvas might be an excellent place to start.

Suppose you’re trying to understand how a product fits into the larger market landscape. In that case, PESTLE or competitor analysis might be more helpful.

There is no one-size-fits-all answer for product analysis.

The important thing is to experiment with different techniques and see what works best for you and your team.

So far, this was all theoretical. Once you have chosen what product analysis method you will employ, it is essential to write down your complete product analysis in a best-fitting manner. For example, if you’re analyzing a software product, incorporating insights from performance testing can significantly enhance the depth and relevance of your analysis.

And how do you do that?

How To Write a Product Analysis Report?

A product analysis report is a document that describes a product and its features and how it benefits the customer.

The report should be well-organized and easy to read, with sections that cover all of the crucial aspects of the product.

Below is an outline of what should be included in a product analysis report:

Title Page

This is obviously the title of your product analysis. A straightforward one, for that matter.

Table of Contents

This section includes all of the different areas and subsections of your report. It helps the reader navigate through the document and find the information they’re looking for quickly and easily.

Executive Summary

It is a brief overview of the product analysis report. It should include the most essential information from each report section, such as the product’s features, benefits, and market opportunity.

This section is often written last after the rest of the report has been completed.

Product Analysis Methods

This section should outline the different methods used to analyze the product.

It should include a description of the collected data and how it was used to analyze the product.

Product Overview and Description

This section should provide a detailed description of the product, including its features, benefits, and unique selling points.

It should also outline how the product fits into the larger market landscape.

How the Product Meets Customer Needs?

This section should outline how the product meets the needs of the customer.

It should include a description of the target user and information about what needs the product meets.

Pricing and Availability

This section should include information about the product’s price and availability.

This means that here you outline the estimated price ranges of the product with the best-suited price.

You also include where and when your product will be made available to the user.

It should also outline any promotions or discounts that are currently or plan to be made available.

Marketing Strategies

This section should outline the different product marketing strategies used to promote the product. This could include content creation, email marketing, social media and more.

It should include a description of the target market and information about how the product will reach them.

Sales and Distribution Channels should describe how the product will be sold and distributed to customers.

Successful Applications of the Product

This section should provide examples of how the product has been successfully used in the past or during testing.

It can include case studies, customer testimonials, or other forms of social proof.

Competitors’ Products and How They Compare

This section should provide a detailed description of the competition and how their products compare to yours.

It should include information about what the competition offers and how your product is better (or worse).

It is best to summarize a SWOT analysis of the competition here.

Recommendations

This section should provide recommendations for how to improve the product.

It can include recommendations for changes to the product and suggestions for how to better market or sell it.

This is where you would outline any areas that need improvement and provide solutions for how to fix them.

Conclusion

This section provides a summary of the product analysis report.It should highlight the most critical findings from the report and outline what actions should be taken based on those findings.

It includes information about what was learned from the product analysis and what can be done to improve it in the future. Phew! That’s a lot of data, innit? How about we put all of this information to use? Let’s take a hypothetical product analysis example.

Product Analysis Example

You are the product analyst for a new fitness tracker that has recently hit the market.

Your task is to provide a detailed report on the product, including its strengths and weaknesses, and compare it to similar products.

To do this, you will have to use various product analysis methods.

• Data Collection

The first step in any product analysis is data collection.

For our fitness tracker example, we will need to collect data about the product itself and how it is being used by customers.

This data can be collected through surveys, interviews, focus groups, or even by observing people using the product.

• Product Testing

Another critical step in product analysis is product testing.

This involves putting the product through its paces to see how it performs in different scenarios.

For our fitness tracker example, you might test how well it tracks activity, monitors heart rate, and records data.

You might also test how water-resistant or durable the product is.

• Competitive Analysis

The next step is competitive analysis.

In this stage, you compare your product to similar products.

For our fitness tracker example, you would compare it to other trackers on the market and health apps and wearable devices.

You would then outline what features the fitness tracker offers that are not available on other products.

• Financial Analysis

The final step in product analysis is financial analysis.

In this stage, you examine the cost of producing the product and its potential profitability.

You might look at how much revenue the product generates and how that compares to other products on the market.

This information can be used to recommend pricing, production, or marketing strategies.

And voila! There you have it. You have successfully conducted a product analysis example.

Conclusion

Product analysis is a vital tool for any product manager that wants to create or improve a product. It helps you understand the product and how it compares to similar products on the market.

It also helps you identify areas where the product can be improved. By using various methods, you can get a detailed picture of the product and its potential. So what are you waiting for? Get out there and start analyzing!

Try out Chisel’s free trial to get all your product management tools in one place for better product analysis!