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

Why have a range of products? 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 The benefits of having a wide product portfolio

Think of well known organisations that produce a range of products Virgin Easy Disney Nike Rowntree MacIntosh Cadbury Schwepps

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

Extensive Product Portfolio???? 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 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 £ Units TimeD L G D S M O

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

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

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

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

Saturation Sales peaked Top of the market Many competitors

Decline Sales dropping Changes in taste

Obsolescence Product withdrawn from the market

Careful marketing can mean 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 4Explain the stages in Product Development