Lecture 3: Product Portfolio Frameworks

Question 1

What is the BCG Product Portfolio matrix?

Answer 1

The BCG product portfolio matrix looks at a portfolio of products and helps companies decide whether they should invest in a product, discontinue a product, or develop products.

It’s divided into 4 sqaures:
- HIGH market growth, HIGH market share: Growth Stars
- HIGH market growth, LOW market share: Question Mark
- LOW market growth, HIGH market share: Cash Cows
- LOW market growth, LOW market share: DOGS

Question 2

What is Aakers Brand Equity Model? For Eileen Fisher

Answer 2

Brand Awareness - People that are already established customers are well aware of the brand, those who aren’t customers aren’t aware.

Perceived Quality - Established customer segments perceives high quality materials used and style

Brand Association - Perceived value, value is high for established women segment and value is low for non-established segments

Brand Loyalty - Established female customers have a high willingness to pay, whereas others don’t

Question 3

Ansoff Matrix for Product Market growth

Answer 3

4 squares:

Market / Products
- EXISTING market, EXISTING product: Market Penetration
- NEW market, EXISTING product: Market Development
- NEW product, EXISTING market: Product Development
- NEW product, NEW market: Related Diversification