Product Portfolio

• Advantages:

  • Spreads risk - if one product fails there are others to rely on.
• Advantages:

  • Maximise sales - attracting different market segments.
• Advantages:

  • Raise the profile/image of the business - because they have several products.
• Advantages:

  • Consumers see a variety of products with the same brand - so brand recognition is high.
• Advantages:

  • Increased market share - as they are able to meet the needs of a number of different market segments.
• Advantages:

  • Can easily cope with seasonal fluctuations- the range of products will bring in revenue at different times.
• Advantages:

  • Easier to launch new products - because brand recognition is high.
• Disadvantages:

  • Advertising costs can be higher to ensure customers know about all of their products.
• Disadvantages:

  • Research and Development costs can be high to maintain a variety of new products.
• Disadvantages:

  • If one product has a problem it can affect the whole portfolio.
• Disadvantages:

  • Training for staff for each new product may be time consuming.