product portfolio

Product portfolio

In a simple way product portfolio refers to all that a company has to offer.

PepsiCo’s foods division Frito-Lay is the leader in the branded salty snack market. All its products are free of trans-fat and MSG. It manufactures Lay’s potato chips, Cheetos extruded snacks, Uncle Chips and traditional snacks under the Kurkure and Lehar brands. The company’s high-fibre breakfast cereal, Quaker Oats and low-fat and roasted snack options like Aliva increase the number of healthy choices available to consumers.

Every company addresses to produce and maintain leading edge products. Portfolio management for new products is a dynamic decision process wherein the list of active new products and R&D projects is constantly revised. In this process, new projects are evaluated, selected, and prioritized. Existing projects may be accelerated, killed, or de-prioritized and resources are allocated (or reallocated) to the active projects.

Because of proper portfolio management frito-lay managed to get its premium potato chip brand lay’s maxx from its global portfolio to india via amazon. Present in markets like Europe, USA and Middle East, Lay’s Maxx’s core target audience is young males. The company has tied up with Amazon to launch the product in a 4 pack bundle priced at Rs. 120.

The product is available in two flavors – Sizzling Barbecue and Macho Chilli at price points of Rs. 15 and Rs.30 each.

Goals of Portfolio Management

While the portfolio methods vary greatly from company to company, the common denominator across firms are the goals executives are trying to achieve. Which are.

1. Value Maximization

Allocate resources to maximize the value of the portfolio via a number of key objectives such as profitability, ROI, and acceptable risk.. pepsi very carefully observed the buying pattern of the potato chip market as its already a market leader in salty snack market  available India since a long time.

With its irresistible taste, international and Indian flavours and youth-centric imagery, Lay’s has established itself as a youth brand and continues to grow in the hearts and mind of its consumers.

2.Balance

Achieve a desired balance of projects via a number of parameters: risk versus return; short-term versus long-term; and across various markets, business arenas and technologies.

3.Business Strategy Alignment

Ensure that the portfolio of projects reflects the company’s product innovation strategy and that the breakdown of spending aligns with the company’s strategic priorities. The three main approaches are: top-down (strategic buckets); bottom-up (effective gate keeping and decision criteria) and top-down and bottom-up (strategic check).

Campaign Dillogical -The Dillogical concept made the consumer be dillogical. The campaign deals with the ongoing tussle between head and heart. Lays introduced their new flavor Lime n Masala Masti along with it.

And last year it launched a product maxx “maxx crunch maxx taste”

4.Pipeline Balance

Obtain the right number of projects to achieve the best balance between the pipeline resource demands and the resources available. The goal is to avoid pipeline gridlock (too many projects with too few resources) at any given time.

5. Sufficiency

Ensure the revenue (or profit) goals set out in the product innovation strategy are achievable given the projects currently underway. Typically this is conducted via a financial analysis of the pipeline’s potential future value.

What are the benefits of Portfolio Management?

When implemented properly and conducted on a regular basis, Portfolio Management is a high impact, high value activity:

•             Maximizes the return on your product innovation investments

•             Maintains your competitive position

•             Achieves efficient and effective allocation of scarce resources

•             Forges a link between project selection and business strategy

•             Achieves focus

•             Communicates priorities

•             Achieves balance

•             Enables objective project selection

Top performers emphasize the link between project selection and business strategy.

So to conclude i believe that product portfolio must be carefully managed so that it fetches maximum returns and fulfils all the companies objectives smoothly.