Product portfolio analysis involves identifying the position of each product in a company's portfolio based on its market share and the market's growth. The Boston Matrix is a common method used, classifying products as stars, cash cows, question marks or dogs. Stars have high market share in growing markets while cash cows have high share in stagnant markets. Question marks have low share but are in growing markets, while dogs have low share in declining markets. Extending a product's lifecycle can involve introducing variations, exporting to new markets, minor redesigns, new advertising, or improved versions. The next class will cover the price aspect of the marketing mix.

1. Unit 2 Marketing
The Marketing Mix – Product (Boston Matrix)

2. Learning starts with a question.....
In your groups, answer the question:
What is product portfolio analysis and why is
it important?

3. Product portfolio analysis
• It is a method used to identify the position of
every product in a company’s portfolio within its
target market.

4. Product portfolio analysis can be
done with:
• The Boston matrix
• The product life cycle

5. The Boston Matrix
• It is the method of analysing the products in a
company’s portfolio based on their share of the
market and the growth of the market

6. The Boston Matrix

7. The question mark/Problem child
• New products with a low share of a high growth
market
• High maintenance
• High failure rate but potential for future success

8. The rising star
• Products with a high share of a growing market
• High maintenance
• Generates a lot of income

9. The cash cow
• Products with a high share of a low growth market
• Generates high profit for the business
• Low maintenance
What has happened to the X-Box? Did Microsoft manage
to turn it to a star or cash cow?

10. The Dog
• Products with a low share of a declining or low
growth market
• High cash burn rate
• Generates little or no income

11. Example of a Boston Matrix for
an independent newsagent
Question Mark
Rising Star
Sporting memorabilia
- Lunch deals
-signed, framed photos of local
sports stars
Dog
Cash Cow
-Convenience food
-Postcards
-Stationery items
-Pay phone cards
-Cigarettes, chocolates,
sweets, lottery tickets and
scratch cards
- Local and national
newspapers, magazines
- Mobile phone top up

12. Group activity
• Prepare a portfolio analysis for a mobile phone
company
1. Pick a mobile phone company (Nokia, Samsung...).
2. Think about the mobile phone market at the
moment, is it growing or is it relatively static?
3. List the product portfolio and place each of their
phones on a Boston Matrix chart.
4. Discuss with your classmates your selection.

13. What is the relevance of the
Boston Matrix in Business?

14. The Product life cycle
• It shows the path of a product from its
development to its disappearance from a
business’s portfolio and the sales expected at
each stage

15. The Product Life Cycle
Sales
• Sales
• Sales
are low
• Profits will be
• Product is
being designed negative
• Product may
be unknown
Development
Introduction
•Sales reach
• Similar
its highest point products enter
the market
• Sales falling
•Rate of growth
• Profits will
• Profits continue
slows
•Price lowered
reach their
to fall
highest at the
•Competitors
•Some
end of this stage
enter
businesses
the market
may be forced
out of the
market
increasing
rapidly
Growth
Maturity
Saturation
Decline
How does the product life cycle relate to the Boston Matrix?
Time

16. Group activity
Choose two products from the list below and draw product
life cycle sketches for the products and services below:
1.
2.
3.
4.
5.
6.
iPad
James Bond films
Dove chocolate bar
BMW’s Mini
Coca-Cola
QQ
• Discuss with your classmates your selections

17. Decline / Dog
Maturity & Saturation / Cash Cow
Growth / Rising Star
Introduction / Problem Child
Sales
Product Life Cycle – BMW 3 Series
Why do BMW
keep releasing
another 3
series?
191975-82 1982-1990
1990-1998
1998-2006
2006 ->
Why do some products have a long life cycle while others do not?

18. Group activity
• Read the MINI case study and answer the question given…..

19. in t r o d u c e n e w
v a r ia t io n s o f t h e
o r ig in a l p r o d u c t , e . g .
a c h ild r e n ' s v e r s io n
s e ll in t o n e w m a r k e t s ,
e .g. e x port th e p rod uct
to anoth er country
m a k e s m a ll c h a n g e s t o
t h e p r o d u c t ' s d e s ig n ,
c o lo u r o r p a c k a g in g
EXTEN DIN G TH E
PRO D U CT LIFE CYCLE
use a new
a d v e r t is in g c a m p a ig n
in t r o d u c e a n e w ,
im p r o v e d v e r s io n o f t h e
o ld p r o d u c t
s e ll t h r o u g h a d d it io n a l,
d if f e r e n t r e t a il o u t le t s

20. For next class:
• Research – The Marketing Mix (PRICE)