Product Portfolio Product Mix Product Range ie the

Product Portfolio/ Product Mix/ Product Range ie the variety of products offered for sale

Why have a range of products? n n The benefits of having a wide product portfolio Target different markets Meet customers’ differing needs Spread the risk To help maximise sales and profits Those companies that have a large range of products are referred to as having an extensive product portfolio

Think of well known organisations that produce a range of products n n n Virgin Easy Disney Nike Rowntree Mac. Intosh Cadbury Schwepps

The range of products that a business may have can span from being: n very new to the market to those which are n well established

Extensive Product Portfolio? ? n the business may have one or more Product Lines = one product is used as the basis for a lot of “spin off” products Disney Coca Cola

Product Lines are important n n n Target the same customer many times, so increase sales and profits Build up trust and a relationship which encourages customer loyalty Help with launching new “products” (they are associated with the brand its reputation)

The Product Life Cycle S M £ Units D O G L D Time

(Product) Development n n stage before the launch of the product lots of testing, trial and error, market research … idea analysis prototype May be completed by the R&D department in large businesses test market alter launch

Introduction/Launch n n n Few Customers Sales low Costs high Earning a loss for the business No customer loyalty

Growth n n n Sales increasing Product becoming more well-known Often little competition at this stage

Maturity n n Sales are reaching the maximum Established market Many repeat customers Competitors evident now

Saturation n Sales peaked Top of the market Many competitors

Decline n n Sales dropping Changes in taste

Obsolescence n Product withdrawn from the market

Careful marketing can mean n That a business has a range of products at different stages of the life cycle to ensure that they can always maximise sales and profits without waiting for a new product to be developed

Make sure you can: 1 Define and Give Egs of: Product Portfolio/Range/Mix Product Line 2 Describe the benefits of having a Wide Product Portfolio and established Product Lines 3 Draw, describe, give examples and label the Product Life Cycle 4 Explain the stages in Product Development