1. Product Portfolio analysis A Level Business

2. Name and define the 7ps of the marketing mix Marketing Mix element (7Ps)Definition Arrange yourselves in to the following groups 1. Basmila, Anustan, Shakur, Qaiser 2. Hashem, Liam, Junying 3. Nathan, Sachin, Phillip, Abdulrahman 4. Ravi, Zainab, Devante

4. Starter: How successful are these products? Arrange yourselves in to the following groups 1. Basmila, Anustan, Shakur, Qaiser 2. Hashem, Liam, Junying 3. Nathan, Sachin, Phillip, Abdulrahman 4. Ravi, Zainab, Devante

5. Aim and Objectives Aim: to be able to analyse the product portfolio of a business using the Boston Matrix and the Product Life Cycle models All students will draw and describe the Boston Matrix and the Product Life Cycle (Grade C) Most students will successfully use both models to assess the product range of a business (Grade B) Some students will evaluate the effectiveness of both models. (Grade A)

6. Starter: How successful are these products?

7. Discussion: How can we measure the success of these products? Market Share Profitability Market Growth

8. The Boston Matrix High Low High Low Stars are high growth products competing in markets where they are strong compared with the competition. Often Stars need heavy investment to sustain growth. Eventually growth will slow and, assuming they keep their market share, Stars will become Cash Cows Question marks are products with low market share operating in high growth markets. This suggests that they have potential, but may need substantial investment to grow market share at the expense of larger competitors. Management have to think hard about “Question Marks" - which ones should they invest in? Which ones should they allow to fail or shrink? Cash cows are low-growth products with a high market share. These are mature, successful products with relatively little need for investment. They need to be managed for continued profit - so that they continue to generate the strong cash flows that the company needs for its Stars Unsurprisingly, the term “dogs" refers to products that have a low market share in unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are rarely, if ever, worth investing in. Dogs are usually sold or closed.

9. The Boston Matrix Star ?/Problem Child Cash Cow Dog High Low High Low

10. Product Life Cycle Annual Sales

11. Discussion activity In groups of three you will be given a product range and one of the Portfolio analysis tools. You are to write on the model where you would put each of the products. Once you have put the products on the model you need to answer the following two questions. 1.Explain which product you would recommend for further investment. 2.Explain which product you would recommend to be discontinued.

12. Samsung product range

13. Cadbury product range

14. Student feedback…

15. Discussion questions… Why might companies such as Samsung and Cadbury use Product Portfolio analysis? What benefits can you see for companies such as Samsung and Cadbury using both methods of Product Portfolio Analysis? Which method of Product Portfolio analysis do you think is most relevant to Samsung? AO2 Application AO3 Analysis AO4 Evaluation

16. Weaknesses of the Boston Matrix Market growth is an inadequate measure of a market's attractiveness Market share is an adequate measure of a products ability to generate cash The focus on market share and market growth ignores issues such as developing a sustainable competitive advantages The product life cycle varies

17. Weaknesses of the Product Life Cycle

18. Exam questions 1.Analyse the possible ways in which Product Portfolio analysis could influence Ford when deciding whether to invest heavily in developing a new model of car. (9 marks) 2.Ford has a large product portfolio and the life cycle of each model of car is around seven years. To what extent should Ford rely on the Boston Matrix when deciding to launch a new model? (20 marks)