1. 4.2 c Product

2. Product Portfolio Analysis

3. Product Life Cycle

4. SWOT Analysis

5. Boston Matrix

6. Definitions Product Mix Line Item Depth Width Goods Service
Different goods and/or services a company sells
Line
A group of closely related products
Item
Specific brand, model, or size of product within the product line
Depth
Number of product items offered within each product line
Width
Number of product lines

7. Product Terminology Product portfolio Product Line Product Range
the range of products a company has in development or available for consumers at any one time
Managing product portfolio is important for cash flow
Product Line
The related products sold by a company
For example, Proctor and Gamble produces these laundry products
Tide, Cheer, Downy, Bounce, Ivory, Dreft, Era, Fabreze, Gain
Product Range
Complementary or supplementary products manufactured or sold by a company
several similar products that appeal to different customers.
Product Mix
the complete list of all items made by the organization. 
For example, Procter and Gamble produces
Bold, Pampers, Hugo Boss, Wash & Go, Gillette Razors, Oil of Olay, Sunny Delight, Pringles, Braun, Crest, Oral B, Old Spice

8. Product Line
A set of related products or services offered by a single firm.
COCA-COLA
1886 COCA-COLA
1960 FANTA
1961 SPRITE
1963 TAB
1966 FRESCA
1972 MR. PIBB
1974 SUGAR-FREE SPRITE
1982 DIET COKE
1992 "NEW" COKE, RENAMED COKE, later dropped altogether
Coca Cola renamed Coca Cola Classic
1994 FRUITOPIA
1995 BARQ'S Root Beer
1997 SURGE CITRA
2007 Coke Zero
Not inclusive
Source: Coca-Cola Web Site

9. Product design and development
Importance of innovation
Challenges facing R & D

10. Product Differentiation
Efforts to distinguish a product from competitive products so that it is more desirable.
This is an essential behavior by businesses in Monopolistic Competition
Products are differentiated by:
Unique design.
Unique packaging.
Unique branding.

11. Product Life cycle
Shows the stages that products go through from development to withdrawal from the market
Connection to marketing mix
Contributes to strategic marketing planning
Helps the firm to identify when product needs support, redesign, reinvigorating, withdrawal, etc.
May help in new product development planning
Relationship to profit, investment, cash flow
May help in forecasting and managing cash flow
See the last slide in the PLC which demonstrates the relationship between profit and stage in PLC

12. Product Life Cycle The Stages of the Product Life Cycle: Development
Introduction/Launch
Growth
Maturity
Saturation
Decline
Withdrawal

13. The Development Stage:
Product Life Cycles
The Development Stage:
Initial Ideas
possibly large number
May come from any of the following –
Market research
identifies gaps in the market
Monitoring competitors
Planned research and development (R&D)
Luck or intuition
stumble across ideas?
Creative thinking
inventions, hunches?
Looking ahead
what will people be using/wanting/needing 5,10,20 years hence?

14. Steps to Create a New Product
Develop product idea.
Assess feasibility of idea.
Design and test product.
Distribute and promote product.
Post-audit of product plan.
Dcon’s Hurly Sticks
Business Idea

15. Product Life Cycles Introduction/Launch:
Advertising and promotion campaigns
Target campaign at specific audience?
Monitor initial sales
Maximise publicity
High cost/low sales
Length of time – type of product

16. Product Life Cycles Growth: Increased consumer awareness Sales rise
Revenues increase
Costs - fixed costs/variable costs, profits may be made
Monitor market – competitors reaction?

17. Maturity: Product Life Cycles Sales reach peak
Cost of supporting the product declines
Ratio of revenue to cost high
Sales growth likely to be low
Market share may be high
Competition likely to be greater
Price elasticity of demand?
Monitor market
changes/amendments/new strategies?

18. Product Life Cycles Saturation:
New entrants likely to mean market is ‘flooded’
Necessity to develop new strategies becomes more pressing:
Searching out new markets:
Linking to changing fashions
Seeking new or exploiting market segments
Linking to joint ventures – media/music, etc.
Developing new uses
Focus on adapting the product
Re-packaging or format
Improving the standard or quality
Developing the product range

19. Product Life Cycles Decline and Withdrawal:
Product outlives/outgrows its usefulness/value
Fashions change
Technology changes
Sales decline
Cost of supporting starts to rise too far
Decision to withdraw may be dependent on
availability of new products
whether fashions/trends will come around again

20. Product Life Cycles Sales Time Development Growth Maturity Saturation
Introduction
Growth
Maturity
Saturation
Decline
Time

21. Product Life Cycles PLC and Profits Sales/Profits PLC Profits Time
Losses
Break Even

22. Product portfolio analysis
BCG Matrix
Classifies Products into four simple categories:
Stars
Cash cows
Dogs
Question marks
Also called ‘problem children’

23. The Boston Matrix Question Marks Stars Dogs Cash Cows Market Growth
High
Market Share
Low
High

24. The Boston Matrix
A means of analysing the product portfolio and informing decision making about possible marketing strategies
Developed by the Boston Consulting Group in 1968
Links growth rate, market share and cash flow

25. The Boston Matrix Stars - Potential for high revenue growth
products in markets experiencing high growth rates with a high or increasing share of the market
- Potential for high revenue growth

26. The Boston Matrix Cash Cows: High market share
Low growth markets – maturity stage of PLC
Low cost support
High cash revenue – positive cash flows

27. The Boston Matrix Dogs: Products in a low growth market
Have low or declining market share (decline stage of PLC)
Associated with negative cash flow
May require large sums of money to support
Is your product starting to
embarrass your company?

28. The Boston Matrix Question Marks (problem children)
Products having a low market share in a high growth market
Need money spent to develop them
May produce negative cash flow
Potential for the future?
What are the chances of these products securing a hold in the market?
How much will it cost to promote them to a stronger position?
Question Marks (Problem children):
Are they worth spending good money on?

29. Branding
Strategy to differentiate products and companies, and to build economic value for both the consumer and the brand
Brand is a name or trademark attached to a product or company
is what has meaning to the customer
Brand awareness
Brand development
Brand loyalty

30. Branding/Labeling Corporate symbol National Brands Private Brands
Logo or trademark
Brand Name
National Brands
Private Brands
Generic
Branding strategy
Brand Image Enhancement

31. Classification of Brands
Producer or National Brands: represent the manufacture of products.
Store brand: represents the retail store where the product is being sold.
Arizona Jean Co.® blue jeans sold only at JC Penney
Generic: products are not branded and simply describe the product.
Aspirin
Originally a Bayer brand name for acetylsalicylic acid
In some countries, including Germany, Bayer still controls the brand Aspirin

32. Brand Image Enhancement
At the restaurant, you tell the waiter “I would like a Coke”
The waiter is required to respond, “Would Pepsi be ok?”