Product Portfolio Flashcards
Product Portfolio
Complete range of products managed by a business; including product lines and individual products.
Product Line
Group of products that are closely related to each other and are viewed as a unit because of marketing, technical, or end-use considerations.
Product Portfolio Management
Management of multiple
brands as a coordinated portfolio of meaning-based assets, that address the needs of diverse customers in a
marketplace and maximize return, while minimizing risk.
Specifies the optimal portfolio of brands a company should maintain for comprehensive market coverage
with minimal overlap.
Product Mix Breadth
Number and variety of product lines
Product Mix Depth
Number and variety of item in a product line. Catering to sub-segments with different tastes and different sensitivities.
Managing the Product Portfolio
Necessary for efficient allocation or resources and identifying underperforming products and gaps. It involves:
- Understanding (visualize coverage/ financial contribution/strategic roles)
- Change (Line pruning and line extension)
BCG Matrix
Strategic planning tool used to categorize a firm’s business units or products based on their relative market growth and market share.
BCG Ideal Cash Movement
Ideally, the excess cash from Cash Cows is invested in Question marks, so that they become Stars.
Stars ideally become Cash Cows once category growth slows down.
Strategic Brand Goals
- Focus
- Niche
- Past Champion
- Entry Point
- Fighter
- Silver bullet
Line pruning
Removing or phasing out underperforming or obsolete products from a company’s product portfolio
Extensions
Use an established brand name (parent) to introduce a new product.
- Line extension (depth)
- Category extension (breadth)
- Customer extension
- Channel extension
Horizontal Line Extension
Stretching horizontally at the same quality level to accommodate different tastes
Vertical Line Extension
Downmarket & Upmarket
Customer extension
Using existing brand on new products
or services sold to a different
customer segment.
Asymmetric dominance
A behavioral economics phenomenon that occurs when the presence of a third, inferior option (the decoy) influences the perceived attractiveness of two other options.
