Product portfolio

• Benefits of product portfolios

  • Spreads the risk- if one product fails the organisation can depend on the other products to make profits.
  • Maximising sales - since there are multiple products are organisation are meeting different market segments therefore maximising profits.
  • Can raise profile of the business because it has a wide range of products.
  • Consumer see a variety of products with the same brand so brand recognition is high.
  • Easier to launch new products as customers may already know the brand.
• Costs of product portfolios

  • Higher research and development for multiple products.
  • Higher advertising and marketing costs for multiple products.
  • Bad publicity of one product can tarnish reputation of the other products which can affect their sales.
  • Resources may be spread out too thin therefore leading to no product being a market leader.