Introduction to Product Portfolio Management
A product portfolio consists of goods and services company have for their offerings. They consists the coverall collection of goods and services. It consists different varieties of products and services offerings. It mainly emphasis on different types of goods sold by any company to their customers.
Mark and Spencer is an multinational company established in the British(Eggers,2012.)They deals in the various products offerings mainly in clothes selling,luxury goods ,home products and the food items and also manages to deal with the branded clothes.
The report basically consists the product portfolio and the Mark and Spencer products offerings an focuses on the models and theories based on the portfolio.
Concept of Product Portfolio Management
Product portfolio consists of the combination of two or more products togetherly. It emphasis on the different products line offerings. Product portfolio management is considered as an authentic management process performed by the manager of an company. It leads to emphasis on framing of strategies and adaptation of the methods and implementation of the technologies which leads to innovation in the existing and the corer products. It consists the various different product lines and the variant services offered by a company to their consumers.
Management is required on the all levels for managing the product portfolio. Managers are required at an individual level for managing the products they are required for managing the different products line and for the top level management which are considers as the working factors and manages the portfolio completely. As the organisation comprises of different departments and aims only with the one target of efficiency in their organisation as same the product portfolio is aims at utilisation of their each and every product effectively and aims at utilisation of their products at an maximisation level.
Product portfolio analysis helps in finding the companies growth rate, profitability state and the income level. It sates the expansion level of the products and helps in the identification of the declined products which leads to introducing of the new products. The established companies deals with the huge range of product portfolio offers variety of products for there customers and have great expansion in their businesses and leads to the diversification in different range of products.
They offers their products ranges in the different cites and countries for the supplying of the goods to their customers in the different states and reaches(Klingebiel, and Rammer, 2014.).Proctor and gambler is an example of the mature firm with the different diversification of the products and offers more than 65 products for their customers. The firms which are smaller in size and having the small scale of portfolio range are leads to offering of products in small varieties leads to focus more on their main products for the operations and aims for their business growth by leading to more growth of their products in the markets. They leads to gaining profits against their service offerings.
The Apple company deals with the with the different electronic products. They deals in different electronic instruments mainly as iPhones, laptops,iPads and many more products they offer to their products.
The Mark and Spencer(M&S) is an British multinational company (MNC). The M&S retail outlet headquartered in the London city of Westminster. The M&S is has also been listed in the stock of exchange of London. M&S had a different products offerings and had great expansion in their business range. They provides the different range of products and variant product line offerings to their consumers.
M&S mainly trades in the several fields. They emphasis on the clothes world focuses on the selling of different clothing patterns,offers a wide range of different products they leads to differentiation in their products range provides the certain varieties of the goods which leads to gain more attention of consumers towards the products. The M&S also deals in the wide range of food products(Picard,2014).They deals in offering certain food products varieties. The M&S started their expansion of business towards the moving on supplying of the branded food products.
They started supplying of Kellogg cornflakes in November. Mark and Spencer currently dealing with the 959 stores established in the U.K offering different products services to the consumers and including 615 stores of the food outlets which deals in the offering of food services to the certain people.
Mark and Spencer had a great expansion of business in different regions. They have expanded their business to the certain regions and countries and expanded to a large expansion in the business fields. They have 852 stores established throughout the U.K They also deals internationally hence established certain international stores in the India. They have build 52 stores of Mark and Spencer in India.
The Marks and Spencer food line mainly focuses on their quality of food products by providing the fresh and hygienic quality food to the customers(Reilly,and Brown,2011.).Their cloth division sector consists with the men's clothing offering different women clothing products emphasis on certain children clothings and also deal with footwear section. They offers a different clothing sections targeting each category of consumers for their business and expansion. They also provides different online services to capture more consumers towards their company. They had a wide range of diversification of their products.
Marketing Theories and Marketing Models Based on The Product Portfolio
Product portfolio is based on different range of products and service the products classification can be done by the BCG matrix. The BCG matrix model will helps the M&S company in classifying the products on their basis of their market share and helps in identifying the growth rate which the product has having in the market. On the basis of the product classification and the growth rate the M&S managers and the top level authority will be able to frame out the decisions and identify the investment level they require in their working and identifying the certain point of return they may be gaining through the certain products.
The product portfolio aims at managing the cash flow management the BCG matrix will enables M&S to manage their cash flow management between the different products services(Heising, 2012. ).
The Boston Consulting Group(BCG) Matrix is framed according to the identifies the growth and investment opportunities in the business with the proper strategy planing. The products access based on the two dimensions. The first dimension identifies the growth level of products in the market and the second dimension depicts the product market share in the markets. Products are classified into four quadrants mainly as the cash cows,stars,dogs and the question marks. The Marks and Spencer can use it in the following way:
Cash Cows : The cash cows are the slow workers in the business. They consists the products which are slow in nature and reaching to a declining state with the no scope of increment in the product range(Voss,2012.)They reaches to the state where there is no growth of the product. These types of products range are less adapted by the people.
The product can be occurred in utilisation over the competitors and when the company is no more interested in the development of the products. These types of products leads to an beneficial element for the M&S for several years hence they doesn't require more innovation and adopt new techniques until the products gets obsolete.
Stars :Stars are considered as the products having a high market range in the business. They are the fast growing products in the market considering more in demand for the products . The M&S must focuses on the goods which are having a high demand rate and getting more preferable by the consumers. This will leads to growth in the business and helps in meeting with the customer requirements. These type of goods consists with the beneficial in the monetary terms for the M&S due to more preferable goods and helps in reaching the business to a high growth level.
Question Mark : The question marks are the products which are having low products sharing in the rapid growing market(Beringer, Jonas, and Kock, 2013.)They are denoted with the symbol of the question mark because they may be valuable or they may not be valuable for the business to be get continued for there further processing. They helps in identification of the investment whether it is required or not for the growth state. These type of goods consists with the high growth rate in the market but does not leads to have a high share in the market.
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The Marks and Spencer can imply the BCG matrix to identify the business growth rate and the declining state. The BCG matrix helps in identifying the investments needs and requirements to the M&S for the further expansion. The model also helps in identifying which type of products are getting more preferable by the consumers and which are not getting suitable favourable by the consumers.
The SWOT Analysis for the Marks and Spencer
M&S have a high many strength and powers as they had a great expansion in their business. They consists a well settled brand image and deals in the wide range of the products offerings consists a strongest power of their working. They have certain outlets.
They performs working with the old methods and techniques which increase a manual working more and increases the cost.
They have the opportunities to expand their business more in the certain regions and reached to global market.
They have a threat of the competitors presented in the markets. They have a scope of losing their strength of the business due to the raising competition.
Recommendations To The Mark and Spencer
There are certain recommendations for the Mark and Spencer which they needs to imply for the further expansions in their business and for performing the work smoothly. They need to evaluate their working accurately and and must adopt certain parameters for the performance measurement. They can also adopt different more theories and models in their working. They can implement different marketing theories in their working analysis.
The Mark and Spencer can do the pestle analysis this helps in monitoring the external and internal environment for their working and work according to meeting its external and internal factors(Stark,2015.)They must adopt the different new techniques and methods for there working and adapt new technologies which leads to efficiency in the working.
The M&S must focus on their customers demand and provide attention towards their needs. They may provides to their customers for gaining the customers knowledge towards their company and helps in judging their performance. The M&S works based on the BCG matrix they may acquire different models in their working porter's model ansoff matrix this will leads to work effectively and leads to an positive results(Keller, Parameswaran, and Jacob,2011.)They must do the up gradation in their products a regular update in the stocks must be conducted by the M&S for their inventory this leads to gaining more attention of consumers towards the M&S.
They can provides certain promotional and beneficial schemes to the customers like discount on particular products ,buy one get one offers to attain more attraction of customers towards the Marks and Spencer(Boston Matrix and Product Portfolios,2015.). They can provide more beneficial service offerings to their loyal customers for maintaining their loyalty towards the company.
From the above report it has been concluded that the product portfolio consists the different products offerings and helps in providing various products and services to the customers. The Mark Spencer deals in supplying of multi products to the customers. They deals on the large bases and covers an wide range area and business worldwide. They have expanded their business at a large scale and leads to an overall growth of the business. They adapted certain marketing models and the theories for their working and for effective work performance.
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