DR MAHADEO GHADGE

PRODUCT PORTFOLIO/BRAND
ING DECISION
Product Portfolio analysis
A product portfolio or product mix is
the range of products a firm produces.
A single product firm is vulnerable to
external forces and needs a range of
products to spread risk. Products need
to be developed and firms need to
have a sensible portfolio of products,
which are at varying stages of the
product life cycle.
TOOLS FOR ANALYSIS

BCG Matrix
SWOT Analysis
Ansoffs Matrix

BCG MATRIX-BOSTON
BOSTON MATRIX
The Boston Matrix helps firms assess if they have a balanced
product mix. E.g.: todays cash cows are tomorrows dogs. Dogs
need to be replaced with new products to widen the product
mix.
Star products have a high share of a market in the growth
stage of the product life cycle. These products capital to finance
the growth i.e. may mean negative cash flows but have potential
for high sales and profit.
Cash cows have a high market share and generally high sales
revenue, cash flow and profit. However, no market growth likely.
Cash cows can be used to subsidise stars. Hold market share
works here.
Problem Child has a low share of a market with high potential
for growth and requires large injections of finance needed. They
could become a star or a dog. Firms need to decide on whether
or not to halt production, or sell the brand. Build market share
works here.
Dogs have low share of a market in a low growth market.
These products have no growth potential and any profit has to
be reinvested just to maintain market share. Harvest the market
share is suitable .

SWOT ANALYSIS

Internal
External
Internal Analysis:
The internal analysis is a comprehensive evaluation of the internal
environment's potential strengths and weaknesses. Factors should be
evaluated across the organization in areas such as:
Company culture
Company image
Organizational structure
Key staff
Access to natural resources
Position on the experience curve
Operational efficiency
Operational capacity
Brand awareness
Market share
Financial resources
Exclusive contracts
Patents and trade secrets
External Analysis:
An opportunity is the chance to introduce a new product or
service that can generate superior returns. Opportunities
can arise when changes occur in the external
environment. Many of these changes can be perceived as
threats to the market position of existing products and
may necessitate a change in Product specifications or the
development of new product s in order to remain firm
competitive. Changes in external environment may be
related to
Customer
Competitor
Market trend
Supplier
Social changes
Technology
Political and legal environment
Ansoffs Matrix
Ansoff Matrix
(1) Market penetration- involves increasing sales to
present target customers. The product remains
unchanged although there may be a substantial
change in how the product is promoted;
(2) Market development - involves identifying new
segments for the current products offered by the
company;
(3) Product development - seeks growth by
modifying existing products or introducing new
products to serve existing markets;
(4) Diversification - involves taking profits from
existing products or businesses to acquire or enter
new markets, usually in different industries from
previous company efforts.
PROCESS FOR PRODUCT
PORTFOLIO SELECTION
Strategic Planning
Balance The Product Portfolio
Focus On Research And
Development
Continuous Evolution Of Product
Development
Sharing Of Information Across The
Company
STRATEGIC PLANNING

At this stage it must evaluate how
its new products will affect its
competitive position. This means
will the company stay ahead of
completion or will it begin go lag or
will this new product add a new
market which the company is
already strong or will it take it to
new unchartered markets.

BALANCE THE PRODUCT
PORTFOLIO
At any time the company will be evaluating
and developing new products and each
product has a different need of time and
money for development. However in order to
generate the right portfolio the company must
ensure that it has the right balance of
investment across:
a. Products, technologies and markets (new
and existing)
b. Customer segments and regions
c. Innovation Level, Project Stage, Timing and
Risk
d. Business Unit

FOCUS ON RESEARCH &
DEVELOPMENT

The company must ensure that the necessary
Research and Development activities needed for
development of their products has clear
objectives so that the necessary developments
are ready on time for product development.

CONTINIOUS EVOLUTION OF
NEW PRODUCT DEVELOPMENT

Every new product being developed must be
evaluated at each stage of development for them
consumed, costs incurred, and ability to meet
business and financial goals. Products that do not
meet the necessary requirements must be
rejected even though the company may have
spent some resources on it. This will ensure that
only the best products are finally completed and
it also ensures that the company does not keep
spending money on projects that will not meet the
requirements in the end.


SHAIRING OF INFORMATION
ACROSS THE COMPANY

In order to speed up product development we
must ensure that mistakes are not repeated and
good practices are duplicated across the
company. Hence knowledge of product
development must be shared across the
company.

Product Management & Its Interface
with other function
1 - It identifies a market problem/ customer
needs
2-It quantifies the opportunity
3- It communicates the market opportunity to
the top management
4-It communicates with the Product
Development team
5-It communicates to Advertising/ Promotion
team
6- It empowers the sales team







BRAND
A brand is a set of symbols, words, marks,
perceptions and images that represent a
company, product or service.
While many people think of a brand as only a
logo, tag line or an audio jingle, a brand is
actually much larger. A brand is the core value
or promise of what will be delivered to or
experienced by the customer. It creates
associations and expectations amongst
customers for products made by a company.
A brand allows buyers to distinguish itself
from its competitor.
Identity
vs.
Image
How we see ourselves...
How others see us...
Branding Strategy
Identity and Image
Image:
The way a public
perceive the
company or its
product
Identity:
The way a
company
aims to identify or
position itself.
BRANDING DECISIONS
Brand or No brand
Brand name selection
Brand promoter / benefactor
1- MNUFACTURERS BRAND
2- PRIVATE BRAND
3-LICENCE BRAND
4- CO-BRANDING
BRAND STRATEGY
product
Brand Existing New
Existing Line Extension Brand Extension
New Multiple Brands New Brands

BRAND /

PRODUCT
EXISTING NEW
EXISTING Line
Extension
Brand
Extension
NEW Multiple
Brands
New Brands

Line extension Extend the existing brand name
in existing product category. for example
shampoo companies introduced shampoo sachet
for market penetration or to improve market
share.
Brand extension extend brand name to new
product category. It helps to get easy assess in
market due brand image & popularity
Multiple brand New brand name in same
product category. It helps to capture market
share. For example Hindustan Lever have so
many soap brand. Product with different future
and characteristics can not be introduced under
one brand. It involve high cost.
New brand invent new brand for new product
category
High uncertainty / high risk / high profit or loss