12a - Product portfolio analysis Flashcards
product protfolio analysis
track teh dveelopment of products over time, accounting for sales, market conditions and growth
Stages of the product lifecycle
product devlopment
introduction
growth
maturity
decline
product devlopment
lifecycle
research and development of the product
introduction
lifecycle
launching the product, more likely to spend on promotion ect
Growth
lifecycle
sales may begining to increase now that customers are aware of product
competitiors enter the market ect
must keep up with demand
Maturing and saturation
lifecycle
sales will have peaked and compeitiors will have entered the market
may use an extension strategy at this point
Decline
Lifecycle
due to changes in tech, tatse or introduction of new products, will loose appeal and sales decrease
Extension staretgies
extending the range, repackaging or updating a product to prolong its life
they may slo use promtotion to regenerate sales
What is a product portfolio
made up of product lines that the business offers, a product line is a line of products that are similar
Use of the bostin matrix
used to analyse a prodcut profolio
Boston matrix
categorises a product based off of market growth and relative market share.
there are 4 4 categories of product
star
cash cow
dog
problem child/ question mark
Star
boston matrix
high market growth and market share
great potential growth
likely very profitable
Cash cow
boston matrix
relatively high market share, well positioned in the market and likely to be profitable
wake growth and little chance of increasing sales in the future
likely used to fund other product developments
Dogs
boston matrix
low makret share and low potential growth in the market
may generate cash flow
Question mark
boston matrix
relatively low market share in a growing market
potential to turn into a star but could also be unprofitable
