Creating a product that customers actually want

Why meeting customer needs is the foundation of all successful marketing

A product or service that delivers for customers isn’t just the starting point of effective marketing – it is the heart of it. Yet time and again, companies fall into the trap of prioritising innovation for its own sake or launching what they believe the market should desire, rather than grounding their product development in genuine needs and behaviours. Customers may not always be able to articulate what they want, but that doesn’t mean marketers can afford just to guess. True innovation requires insight, empathy and relevance.

The best marketing doesn’t begin with a slogan or a campaign, it begins with creating something that people will value. As Philip Kotler, often called the father of modern marketing, reminds us, marketing isn’t about selling what you make, it’s about identifying and responding to real customer needs.¹ While those needs are not always clearly expressed, history shows that the most successful products often anticipate them. The breakthroughs driven by Henry Ford and Steve Jobs didn’t succeed because customers asked for them, they succeeded because they met needs people didn’t even know they had.

The product pyramid

A helpful way to understand what you’re really offering is the ‘three levels of a product’ model.² It’s often drawn as a pyramid to remind us that great products are built from the bottom up. That may sound counterintuitive – surely the core benefit comes first? But starting with the foundation ensures a fully rounded offering.

The foundation is the augmented product, everything that adds extra value or creates distinction beyond the product itself. That could include customer service, brand values, environmental credentials or the sense of belonging to a community. These elements often shape how customers feel about the product before they’ve even tried it.

Next comes the embodied product, the tangible product that people experience. For plant-based milk, as an example, that means the taste, texture, packaging, how it pours, how it works in hot drinks, and how it looks on the shelf. This is where quality, usability and design come into play, and where customers begin forming opinions about trust and satisfaction.

And finally, at the top, is the core product, the basic problem it solves. In our example, that’s the ability to replace dairy in tea or cereal. The important thing is that without the foundation and structure beneath it, it’s just another generic product with no distinctive benefits or appeal.

The model shows why it’s not enough to develop a product that simply works. You need to craft the entire experience, and it starts long before the first sip.

Product classification

Another classic marketing concept is the classification of consumer products. These categories are based on how people shop for different kinds of products, and that affects how they make decisions, what they look for, and how brands should respond.

Convenience products are the everyday items people buy frequently with little thought or effort. Customers tend to choose these out of habit or routine, often sticking to familiar brands or whatever is most accessible. These products need to be widely available and instantly recognisable to stand out at the point of purchase.

Shopping products are those that customers compare before buying, based on quality, price, or features, like plant-based protein powders or meal kits. These decisions involve more deliberate thought and often some research. Shoppers are more engaged and discerning, so branding, customer reviews, clear benefits, clarity of ingredients, and strong visual appeal all play a bigger role.

Speciality products have a unique appeal. These might be artisan vegan cheeses or high-end plant-based meats that customers go out of their way to find. Buyers of speciality products are motivated by a desire for luxury, a sense of exclusivity, or are looking for a particular solution to their needs, and they often seek out items that reflect their values, tastes or identity. These products tend not to have obvious substitutes and are rarely impulse purchases; they’re chosen with care. Differentiation and desirability are crucial here, as success comes from offering something customers can’t easily find elsewhere.

Unsought products are things customers don’t actively search for until a need presents itself, or the product crosses their path. Sometimes these products are chanced upon while shopping, sparking interest through packaging or shelf placement. But more often, they require an extra push: education, endorsement and clear messaging to help people understand their relevance. Content marketing, trusted voices, and clear benefits all play a key role in bringing these products to the customer’s attention.

Each type demands a different approach. It’s not just about where your product sits on the shelf, it’s about how it fits into people’s lives and decisions.

The product life cycle

Understanding where your product fits also helps shape how you manage it over time. All products move through a life cycle, from introduction to growth, to maturity, and usually to eventual decline. The product life cycle concept, first introduced by Harvard economist Raymond Vernon in the 1960s, helps marketers think strategically about investment, messaging and timing.³

In the introduction stage, the product is launched into the market. Awareness is low and costs are high;  it’s a period of investment and learning. Marketers need to educate consumers, test assumptions and work hard to gain traction.

During the growth stage, sales increase, the product gains acceptance, and competitors often emerge. Focus typically shifts to building preference, expanding distribution and refining the offer.

In the maturity stage, growth slows down and competition intensifies. Here, differentiation, efficiency and brand strength are critical. Companies may look to adjust pricing, explore new segments or improve the product.

Finally, in the decline stage, sales fall as consumer interest wanes. The brand must decide whether to revitalise, retire, or reposition the product.

The Boston Matrix

A related and often-overlooked aspect of marketing is managing a balanced portfolio of products. Businesses should diversify their product offerings to spread risks and meet varied consumer needs. Tools like the Boston Matrix help categorise products into stars, cash cows, question marks, and dogs, based on their market share and growth potential.⁴

• Stars are high-growth, high-share products that require continued investment but offer significant potential.
• Cash cows (an unfortunate term perhaps when referring to plant-based business) have high market share in low-growth areas and are often the financial backbone of a business.
• Question marks operate in high-growth markets but haven’t yet gained traction. They’re risky but could succeed with the right support.
• Dogs have low market share and low growth. They may drain resources, and therefore need to be withdrawn, or they may serve a niche purpose and be kept, but should never receive over-investment.

Product development

No business can afford to focus on a single product. A healthy portfolio mixes short-term gains with long-term bets and ensures that you’re not overly exposed to shifts in the market.

Peter Drucker, the influential management theorist, offered a sobering insight into product strategy. He argued that most new products fail, and in his view, it is always for one of three reasons: there is no market for the product; there is a market, but the product does not meet the need; or the market exists and the product meets the need, but the company fails to communicate its value effectively.⁵

Too many companies launch products based on internal enthusiasm rather than external validation,  ignoring customer behaviour, timing, and competitive context. Success demands that products be tested against how people actually live and make buying decisions, not how businesses imagine they do.

That’s also why product development must be ongoing. Even the most successful offerings eventually face changing tastes, new competition, or shifting technology. Businesses need a pipeline of ideas and a process for turning those ideas into viable products. This isn’t just about staying ahead, it’s about staying relevant.

There are six key benefits to developing new products:

1. A new product can increase or defend your market share by giving your customers more reasons to buy from you.
2. A new product can give you something to sell to a new customer segment.
3. New products build your reputation as an exciting innovator, which is great for brand profile.
4. New products can spread risk through diversifying investment.
5. New products can make better use of existing production capacity and facilities.
6. New products can level out demand across the year or over a longer period.

Developing new products doesn’t always mean reinventing the wheel. Small iterations, improvements, and line extensions can keep your portfolio fresh and ensure that you continue to meet evolving consumer expectations.

Ultimately, building a product that people want – even if they don’t yet know it – is one of the most powerful things any business can do. And in the end, it all comes down to the spark of innovation and entrepreneurship that defines a successful business. Consumer psychology and retail expert Martin Lindstrom puts it like this: “Great brands don’t give people what they ask for, they give them what they never dreamed possible.”⁶

For more support on your alternative protein strategy, get in touch with our experts at [email protected], and subscribe to our podcast and newsletter. Make sure you catch my next article on how to find your place in a competitive market.

1. Kotler, P. (2008). Principles of Marketing. Pearson.
2. Baines, P., Fill, C. and Page, K. (2013). Marketing. Oxford University Press.
3. Vernon, R. (1966). International Investment and International Trade in the Product Cycle. Quarterly Journal of Economics.
4. BCG Matrix. Available at: https://www.productplan.com/glossary/bcg-matrix/
5. Drucker, P. (1993). Innovation and Entrepreneurship. HarperBusiness.
6. Lindstrom, M. (2011). Brandwashed: Tricks Companies Use to Manipulate Our Minds and Persuade Us to Buy. Kogan Page.