1. CHAPTER 5: Category Attractiveness Analysis
PRODUCT MANAGEMENT
CHAPTER 5: Category Attractiveness Analysis

2. LEARNING OBJECTIVES:
After studying this chapter, you should be able to:
Understand the basic concept of category analysis
Understand what are the aggregate market factors
Identify the category factors
Classify the environmental factors

3. CHAPTER OUTLINE Overview of the category attractiveness analysis
Aggregate market factors
Category factors
Environmental factors

4. Overview
Product managers must ask whether category of interest is sufficiently attractive
Often characterized as ‘industry’ or ‘market’ analysis
Characteristics of product category rarely point to the same direction

5. Aggregate Market Factors
Category size
Market growth
Product life cycle
Sales cyclicity
Seasonality
Profits

6. Category factors Based on Porter’s five forces: Threat of new entrants
Bargaining power of buyers
Bargaining power of suppliers
Amount of intra-category rivalry
Threat of substitute products

7. Environmental Analysis
Technological factors
Political factors
Economic factors
Regulatory factors
Social factors

8. THANK YOU