ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Product Portfolio Analysis. Asset allocation. Portfolio management strategy.

Updated on January 28, 2011

Copyright

This article is a part of an assignment written by myself. It was for a marketing module in a Diploma of Hospitality Management. It was given 9/10 as a mark and is a reliable source of information. Just remember; copy / paste is foolish. Your marker will find this article easily.

Feel free to ask questions in the comments.

Product Analysis Example: Pie in the Sky Restaurant
Product Analysis Example: Pie in the Sky Restaurant

Down to business

There are two main processes for determining under-performing products / services. These are the product portfolio analysis and the buying pattern analysis.

The product portfolio analysis separates products into four categories depending on how they are performing. These categories are; stars, problem children, cash cows and dogs.

Stars represent products that are in both a high growth market and have a high market share. They bring in increasing amounts of money but also cost increasing amounts of money as they grow.

Problem children are high growth but only have a small market share. Basically the same as a star but you don’t know whether or not they are worth investing in because they haven’t got a very big market share.

Cash cows are your veteran products. They have a high market share and crucial to cash flow. They pull in large amounts of cash on a regular basis but are growing at a very small rate or not at all. They need to be maintained but should not be a focus for investment.

Dogs are products that don’t seem to have anything going for them. They have a low market share as well as low growth. Unless a dog product can be maintained on its own profits alone, it should be removed as it is unlikely to be worth investing in. Dogs are the most unlikely to become a cash cow.

The PPA can be used to compare a business’s products against each other or to compare one business’s products to another business.

The buying pattern analysis generates useful information about customers and their buying patterns. It shows what high volume customers (HVC) are buying and what low volume customers (LVC) are buying and determines what products are worth keeping or whether market thrust should be aimed at HVC or LVC. It helps to present answers to the question; is it best to market to those who are already HVC or to target the LVC in order to increase sales in either area.

Comments

    0 of 8192 characters used
    Post Comment

    • profile image

      sobia saeed 8 years ago

      Good explanation. it's very helpful for us in understanding the product analysis in detail.

    • profile image

      Portfolio Analysis 8 years ago

      I like the use of terms used to describe performance of the different types of products and services, for those in the Fund or Asset Management field who need assistance with Portfolio Analysis - have a look at the products available from www.Statpro.com

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://hubpages.com/privacy-policy#gdpr"

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)