Today’s lesson. What are we learning today? To learn why companies analyse their product portfolio in terms of their actual and potential market share and market growth. What companies do with the results of the analysis. What I am looking for from you - PowerPoint PPT Presentation
Slide 1 Today’s lesson What are we learning today? To learn why companies analyse their product portfolio in terms of their actual and potential market share and market growth. What companies do with the results of the analysis. What I am looking for from you To undertake a product portfolio analysis. We are doing this because It will help to develop your understanding of how companies develop their products to meet their marketing objectives.
Transcript
Slide 1
Today’s lesson
What are we learning today?To learn why companies analyse their product portfolio in terms of their actual and potential market share and market growth.What companies do with the results of the analysis. What I am looking for from youTo undertake a product portfolio analysis.
We are doing this becauseIt will help to develop your understanding of how companies develop their products to meet their marketing objectives.
Slide 2
Group 1…Have a think about the Volkswagen group…make a list of how many brands do they have in their portfolio…Here is a starter for you.Seat….Can you get all 7 of them?
And list as many products from ONE brand you can think of.
Starter – Product Portfolio Analysis
Group 2…Can you think of a number of products that have been established for a long time that have a high market share but a low market growth?
Slide 3
Volkswagen AG… Its brand portfolio
Slide 4
Volkswagen… Its product portfolio
FOX POLO GOLF
BEETLEPASSAT PHAETON
JETTA
TOUAREG TOURAN SHARAN
10 basic model in 123 variants sold in the UK alone as at June 2006!
Slide 5
This is a method of ANALYSING THE MARKET POSITION of a firm's existing products.
It can also help companies compare their products market size and grow in comparison to another company’s.
It is used TOGETHER WITH the PRODUCT LIFE CYCLE as part of the marketing planning process and ‘What do we do next?’
Boston Matrix – Product Portfolio Analysis
Slide 6
Boston Matrix – Product Portfolio Analysis
Rising Star Problem Child
Cash Cow Dog
High market growth
%
Low market growth
%
High market share %
Low market share %
Where would you place a DOG, a CASH COW, a RISING STAR and a
PROBLEM CHILD
Slide 7
Product Life Cycle – BMW 3 Series
1975-82 1982-1990
Sale
s
1990-1998 1998-2006 2006 ->
Why do BMW keep releasing another 3 series?M
atur
ity &
Sat
urat
ion
/ Cas
h C
ow
Dec
line
/ Dog
Intr
oduc
tion
/ Pro
blem
Chi
ld
Gro
wth
/ R
isin
g St
ar
Slide 8
Boston Matrix – Product Portfolio Analysis
Rising Star Problem Child
Cash Cow Dog
High market growth
%
Low market growth
%
High market share %
Low market share %
Profits from Cash Cows help fund new products.
Sales made with little investment.
Sales are falling and it may be
taking profit to keep the dog alive.
Big investment to develop and
advertise to start with but it has big sales potential for
the future.
Excellent products with high growth and high market share; but need
constant advertising.
Slide 9
Cash Cows?
Can you think of a number of products that have been established for a long time that have a high market share but a low market growth?
Slide 10
Chocolate!!!
• Cadbury
• Mars
• Nestlé
These companies sell many brands of chocolates, in the UK and abroad. In pairs, using the internet sites produce a list of all the chocolate brands/products AND using the Boston Matrix place these brands/products in Dogs, Rising Stars, Cash Cows or problem children.
