Question

Topic: Strategy

Portfolio Analysis New Market

Posted by ruud_vdven on 1/19/2015 at 4:50 AM ET 125 Points
Dear professionals,

I am a student based in the Netherlands and currently working on my final internship writing a strategic marketing paper for a Turkish tableware, cookware and cutlery producer that started selling their products in the Netherlands using their own distribution system (one store & webshop).

Currently I am struggling with the portfolio analysis. They have a lot of items (over 900) so it's really difficult making a MaBa or BCG without having proper information about the market.

What is the best way finding out which product-market-combinations are the best to invest in? Right now i created a diagram which listes the revenue in combination with the cost of products. So i can see for example that most of the revenue for tableware products comes from products under €50,-. But this is only internal information without looking at the market.

Is there anyone who could help me with this?
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RESPONSES

  • Posted by cookmarketing@gmail. on 1/22/2015 at 10:28 AM Accepted
    900 items...wow and way to many?

    You noted 3 market silos. Does one of the three dominate sales? If so begin there. If there is a dominate market silo (50%+ of total sales) you know where to begin

    If there is no dominate silo, only a truncated item review...

    Add your item dollar contributions until you reach 50% of total sales.
    Those SKU's are what drives the business. If any of those Top ? fall below 5% of totals sales - eliminate.

    A note - Of the 900 SKU's, The Top 90 (Top 10%) does not total 25-30% of total sales, they will be having problems anyway
  • Posted by ruud_vdven on 1/22/2015 at 11:11 AM Author
    First of all, thanks for your answer.

    Regarding the items, not all of them are always in the shop. Some are seasonal and others refresh over the year. Over the course of 5 months 880 different items have been sold. And with different items I also mean difference in size. For example, they have maybe 15 different series in dishware and every serie has over 15 products. The same goes for cutlery.

    My assignment is to create a strategic marketing plan so they can make €xx,- revenue for the year 2017 with these products. So I will figure out what strategic choices need to be made to achieve this target.

    I will not look at it at an operational level, but rather analyse what kind of implementation the company needs to do regarding the marketing mix and which target group they need to focus on.

    The company is new to the Dutch market, their whole concept is still based on the Turkish consumer.
  • Posted by Shelley Ryan on 2/9/2015 at 3:15 PM Moderator
    Hi Everyone,

    I am closing this question since there hasn't been any activity in at least 10 days.

    Thanks for participating!

    Shelley
    MarketingProfs
    Customer Service Samurai
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