Designing New Product Portfolios

Ennis, D. M. (2003). IFPress, 6(2) 2-3.



It is generally impossible to satisfy every consumer in a target group with a single product. Product portfolios are used to maximize overall consumer satisfaction. Just as one player cannot play every position on a basketball or soccer team, one product cannot play the role of a portfolio. The general problem of interest in this report is to find the optimum position for a portfolio of products so that the proximity of the products to a set of individual consumer ideal points is optimized.

Figure 4. Optimum portfolio product shifts (black to yellow) when both competition and cannibalization are considered.

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