Product Portfolio/
Product Mix/
Product Range
ie the variety of products
offered for sale
Why have a range of products?
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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
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Virgin
Easy
Disney
Nike
Rowntree MacIntosh
Cadbury Schwepps
The range of products
that a business may have can span from
being:
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very new to the market
to those which are
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well established
Extensive Product Portfolio????
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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
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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
and its reputation)
The Product Life Cycle
S
M
D
£
Units
O
G
L
D
Time
(Product) Development
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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
launch
Introduction/Launch
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Few Customers
Sales low
Costs high
Earning a loss for the business
No customer loyalty
Growth
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Sales increasing
Product becoming more well-known
Often little competition at this stage
Maturity
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Sales are reaching the maximum
Established market
Many repeat customers
Competitors evident now
Saturation
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Sales peaked
Top of the market
Many competitors
Decline
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Sales dropping
Changes in taste
Obsolescence
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Product withdrawn from the market
Careful marketing can mean
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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