A product portfolio is a collection of all the products and services offered by a company. It is used to showcase the products and services of a company and is used to help potential customers choose the products and services that best fit their needs. Product portfolios also help a company assess its current product offering, compare it to competitors, and develop strategies for future product offerings.
The product portfolio typically includes a variety of product categories, such as:
- Software products: This includes any software applications or websites created for customers to use.
- Hardware products: This includes any physical products that a company manufactures, such as computers, phones, or other electronics.
- Services: This includes any services that a company offers, such as consulting, web design, or installation services.
- Retail products: This includes any physical products that a company sells to customers, such as clothing or furniture.
The product portfolio can also include information on pricing, product features, and any other information that will help potential customers decide which products and services are right for them. Companies should regularly assess their product portfolios to ensure that they are up to date and competitive with other businesses in the same industry.
Example of Product portfolio
A company’s product portfolio can include a variety of products and services. For example, a company may have software products such as a customer relationship management application, hardware products such as laptops, services such as web development, and retail products such as apparel. The product portfolio should include detailed information about each product or service, such as pricing, product features, and any other relevant information that will help customers decide which product or service is right for them. Companies should regularly review their product portfolios to ensure that they are up to date and competitive.
When to use Product portfolio
Product portfolios are most commonly used when a company wants to showcase its products and services, compare them to competitors, or develop strategies for future product offerings. Additionally, product portfolios are often used to assess pricing, marketing strategies, and customer feedback for existing products. They can also be used to track customer trends, develop customer segmentation strategies, and create new product ideas. Lastly, product portfolios can help a company identify gaps in the market and develop new products or services to fill them.
Types of portfolios
Product portfolios can be categorized into various types, depending on their purpose and scope.
- Strategic portfolios: These are portfolios that are created to identify the products and services that the company can use to reach its strategic goals.
- Competitive portfolios: These are portfolios that are created to compare the products and services of a company to those of its competitors.
- Financial portfolios: These are portfolios that are used to analyze the financial performance of a company's products and services.
- Market portfolios: These are portfolios that are created to identify the current trends in the market and to develop strategies to maximize the company's market share.
Steps of Product portfolio
Product portfolios can be developed through several steps. These include:
- Identifying customer needs: This step involves researching customer needs, gathering feedback from customers, and analyzing customer data to determine what products and services should be included in the portfolio.
- Assessing product features: This step involves researching existing products and services, developing new features, and assessing the features of products and services from competitors.
- Determining pricing: This step involves calculating the cost of each product or service and setting prices for each one.
- Creating a marketing plan: This step involves developing a marketing plan for each product or service in the portfolio, including strategies for advertising, promotions, and sales.
By following these steps, companies can create a comprehensive product portfolio that meets customer needs and is competitive with other businesses in the industry. Once the portfolio is created, companies should regularly review and update it to keep it up to date.
Advantages of Product portfolio
Product portfolios offer many advantages for companies, such as:
- Increased visibility: Having a comprehensive portfolio of products and services makes it easier for customers to find and purchase the products they need.
- Improved market positioning: A well-crafted portfolio can help a company stand out from the competition and differentiate itself in the market.
- Easier decision making: Product portfolios make it easier for customers to compare different products and make the best decision for their needs.
- Improved pricing strategies: With a thorough understanding of the products and services offered, a company can set prices that are competitive and profitable.
Limitations of Product portfolio
Product portfolios can be limited by the company's resources and capabilities. Companies have limited resources and may not be able to offer a wide variety of products and services. In addition, the company may not have the capability to produce certain products or services, and this can limit the options available in the portfolio. Furthermore, the company may not have the resources needed to maintain the products and services in the portfolio, or the resources needed to develop new products and services. Lastly, the product portfolio may not be reflective of the changing needs of customers, and the company may not be able to update or develop new products or services to meet those needs.
A product portfolio can also be used to assess the performance of a company’s current products and services. This can be done by looking at metrics such as revenue, market share, customer satisfaction, and product quality. Companies can also use product portfolios to identify areas of improvement and develop strategies for new product launches. Additionally, product portfolios can be used to identify potential opportunities to diversify the company’s product offering.
Product portfolios should be regularly updated to keep up with changes in the market and customer needs. Companies should also regularly assess their product portfolios to ensure that they are up to date and competitive with other businesses in the same industry. By regularly assessing their product portfolios, companies can identify potential opportunities for growth and develop strategies for future product offerings.
- Cooper, R. G., Edgett, S. J., & Kleinschmidt, E. J. (1999). New product portfolio management: practices and performance. Journal of Product Innovation Management: An International Publication of The Product Development & Management Association, 16(4), 333-351.
- Jiao, J., & Zhang, Y. (2005). Product portfolio planning with customer-engineering interaction. Iie Transactions, 37(9), 801-814.