View
8
Download
0
Category
Preview:
Citation preview
Pharmaceutical Marketing Product part 2
Lecturer: Enas Abu-Qudais
Product portfolio
• A product portfolio is the collection of all the products or services offered by a company
• Many companies are multi products and serving multiple markets segments
• Portfolio planning: Managing group of brands and products
Portfolio Planning(analysis) • Involves decisions on the choice of which brands/product lines
to build, hold, harvest or divest.
• Companies must decide how to distribute their limited resources among the competing needs of products to achieve the best performance for the company as a whole.
• Portfolio planning is done using the BCG matrix.
BCG growth-share matrix
Boston Consulting Group Growth-share matrix
Ma
rk
et
Gr
ow
th
Relative Market share
BCG Elements
• Stars • The market leaders in high growth markets.
• Already successful products.
• Have the Highest Profitability
• Objective is to build sales and/ or Market share
Question Marks
o They are cash drains. o They have low profitability o Needs investment to keep up with the Market growth o The company has to choose(Objective): Build to turn into stars
Harvest( raise prices) or Divest (dropping or selling it)
• Cash Cows • High profitability in low growth markets
• Objective: Hold sales and market share
• Excess cash is used to fund stars and
the selected question marks
Dogs o Weak products that compete in low growth
markets o Failed to achieve market dominance o Objective: Harvest or divest
Build, harvest or divest
Hold
Build
Harvest or divest
Question marks
Question marks
Growth Strategies
Product life cycle (PLC)
Conceptualizing the changes that may take place during the time that the product is in the market
Stages
• Introduction : Product’s sales growth is typically low and losses happen due to heavy development and promotional costs and no profit.
• Growth: faster sales and profit growth.
• Maturity : peak of sales as saturation occurs
• Decline: sales and profit fall. For example due to a new technology or change in consumer taste or demand
Stages objectives
Introduction Growth Maturity Decline
Strategic marketing objective
Build Build Hold Harvest/manage for cash/ divest
Strategic focus Expand Market Penetration Protect share/ innovation
Productivity
Brand objective Product awareness/Trial
Brand preference Brand Loyalty Brand exploitation
Product Basic Differentiated Differentiated Rationalized
Promotion Creating awareness / Trial
Creating awareness/ Repeat purchase
Maintaining awareness/Repeat purchase
Cut/eliminated
Price High Lower Lowest Rising
Distribution Patchy Wider Intensive Selective
Product strategies for growth
(Ansoff matrix) A matrix the determines how growth can be achieved through product
strategy to look for growth opportunities.
Ansoff matrix
Market penetration: growing existing products in existing markets(Growing sales).
Product development: Developing new products for existing markets.
Market development: taking existing products and marketing them in new
markets.
Diversification: developing new products for new markets.
Most risky strategy
Recommended