Product Portfolio Management Theories

This assignment delves into the realm of product portfolio management, examining how businesses leverage specific marketing models and theories to optimize their operations and achieve success. It analyzes the impact of internal stakeholders on project portfolio management and emphasizes the importance of learning, adapting, and focusing in this dynamic field.

PRODUCT PORTFOLIO
MANAGEMENT

Table of Contents
INTRODUCTION....................................................................................................................2
TASK1......................................................................................................................................3
1.1Concept of Product portfolio management.................................................................3
1.2. Marketing theories and marketing models based on the product portfolio..............5
1.3. Recommendations to the Mark and Spencer............................................................7
CONCLUSION.........................................................................................................................7
REFERENCES.........................................................................................................................9
INTRODUCTION
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.
TASK1
1.1Concept 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(McNally, Durmuşoğlu, and Calantone, 2013.)
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.
1.2. 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.
DOGS: Dogs are considered the critical position for any business. The dogs consists
a position of the low market share with the low market growth. They are in the state in
which they are wont be able to generate cash or able to consume the cash.
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.
In the different situations which are occurred in the business entity, Mark & Spencer
marked as a positioned as “Question Mark” when the market growth rate is high with the
cash usage in the large manner for the different projects and campaigns but they not become
successful by using this matrix in accomplishing the large market share as they want. For
attaining the objectives of the company, they have to deliver the mid range products in the
clothing market and Mark & Spencer face high competition among their competition that is
ASDA and Waitrose. Along with this both the companies become successful by using this
segment or matrix. For accomplishing the goals and objectives in the international market
they should use BCG matrix. For the overseas operation this matrix is not helpful in

expanding the market share. Along with this Mark & Spencer is on the Question Mark stage
and they are having the aim for the star position.
Cash Cows Stars
It includes the nightwear products and they
enjoy the high market share as well as they
can bring the high revenue to the business
entity without any requirements of extra
investment.
It includes outwear, women's outwear as
well as socks, stocking as they assist in
leading the segment with the promising
market growth rate.
Question Mark Dogs
The company is staying in this position of
BCG matrix.
It includes the children outfits as well as
clothing accessories having a low market
share which having the poor performers with
respect to other products of M&S portfolio.
The SWOT Analysis for the Marks and Spencer :
Strength- 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.
Weakness- They performs working with the old methods and techniques which
increase a manual working more and increases the cost.
Opportunities- They have the opportunities to expand their business more in the
certain regions and reached to global market.
Threats- 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.
1.3. 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. To attain the success the
employees of Mark & Spencer have to use appropriate methods, tools and techniques so that
the consumers can not face any issues. They have to do proper market research so that they
can identify the needs and wants of consumers and fulfil them. They can use Ansoff matrix
which will help in managing the work and the activities in the company so that they can
attain the goals and objectives.
CONCLUSION
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.

REFERENCES
Books and journals
Beringer, C., Jonas, D and Kock, A., 2013. Behavior of internal stakeholders in project
portfolio management and its impact on success.International Journal of Project
Management. 31(6). pp.830-846.
Eggers, J.P., 2012. All experience is not created equal: learning, adapting, and focusing in
product portfolio management. Strategic Management Journal.33(3). pp.315-335.
Heising, W., 2012. The integration of ideation and project portfolio management—A key
factor for sustainable success. International Journal of Project Management.30(5),
pp.582-595
Keller, K.L., Parameswaran, M.G and Jacob, I., 2011.Strategic brand management:
Building,
Klingebiel, R and Rammer, C., 2014. Resource allocation strategy for innovation portfolio
management. Strategic Management Journal, 35(2)pp.246-268.
McNally, R.C., Durmuşoğlu, S.S and Calantone, R.J., 2013. New product portfolio
management decisions: antecedents and consequences. Journal of Product
Innovation Management.30(2), pp.245-261.
Picard, R.G. ed., 2014.Media product portfolios: Issues in management of multiple products
and services. Routledge.
Reilly, F.K and Brown, K.C., 2011. Investment analysis and portfolio management.
Cengage Learning.ng, and managing brand equity. Pearson Education India.
Stark, J., 2015. Product lifecycle management. InProduct Lifecycle Management(pp. 1-29).
Springer International Publishing.
Teller, J., Unger, B.N., Kock, A. and Gemünden, H.G., 2012. Formalization of project
portfolio management: The moderating role of project portfolio complexity.
International Journal of Project Management. 30(5). pp.596-607.
Voss, M., 2012. Impact of customer integration on project portfolio management and its
success—Developing a conceptual framework. International Journal of Project
Management.30(5). pp.567-581.
Online

Boston Matrix and Product Portfolios. 2015. [Online]. Available through:
<https://www.tutor2u.net/business/reference/boston-matrix-and-product-
portfolios>. [Accessed on 12th May 2017].