1. 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.

2. 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?

3. Slide 3 Volkswagen AG… Its brand portfolio

4. Slide 4 Volkswagen… Its product portfolio FOXPOLOGOLF BETTLEPASSATPHAETON JETTA TOUAREG TOURAN SHARAN 10 basic model in 123 variants sold in the UK alone as at June 2006!

5. 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

6. Slide 6 Boston Matrix – Product Portfolio Analysis Rising StarProblem Child Cash CowDog 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

7. Slide 7 Product Life Cycle – BMW 3 Series 1975-821982-1990 Sales 1990-19981998-20062006 -> Why do BMW keep releasing another 3 series? Maturity & Saturation / Cash Cow Decline / Dog Introduction / Problem Child Growth / Rising Star

8. Slide 8 Boston Matrix – Product Portfolio Analysis Rising StarProblem Child Cash CowDog 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.

9. 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?

10. 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. http://www.cadbury.co.uk/EN/CTB2003/about_chocolate/ brand_stories/ http://www.mars.com/The_Mars_Directory/index.asp http://www.nestle.co.uk/ProductNewsAndOffers/About OurBrands/ConfectioneryAndCakes/Conf+Products+- +home.htm

11. Slide 11 Cadbury, Mars & Nestlé Cadbury Cadbury's Dairy Milk Cadbury's Dairy Milk extensions (e.g. Caramel, mint, bubbly etc.) Heroes Crème Egg Milk Tray Roses Flake Double Decker Picnic Boost Dream Dream extensions (e.g. Dream with strawberries) Mars Mars bar M & Ms Snickers Twix Maltesers Milky Way Nestlé KitKat Yorkie Rolo Walnut Whip Smarties Toffee Crisp Crunch Munchies Caramac Aero Drifter Milky bar Maveric Lion bar All Stars After Eight Dairy Milk