Product portfolio, Branding & Differentiation

What is product?

The product is any good or service offered for sale to customers.

What is a product portfolio?

A collection of the various products and services that a business produces and offers for sale.

What is product breadth?

Product breadth refers to the number of different products and/or services that a business produces or retails.

What is product depth?

Product depth refers to the number of variations of each product / service the business is offering.

What is branding?

The process of creating a unique and identifiable name, design or symbol that differentiates a product/service or company from its competitors.

What is a brand?

What are the advantages of having a strong brand?

• To create increased consumer loyalty- this leads to repeat purchases and word-of-mouth recommendations.

• Business can charge higher prices, especially if the brand is the market leader.

• To separate / differentiate the product from competitors.

• Retailers / service sellers are more likely to stock top-selling, recognisable brands.

• To increase value of the business – brand values are often higher than other asset values of the business.

What are the disadvantages of branding?

• There is a high cost of advertising as brands must constantly be kept in the consumer’s eye.

• Loss of brand value for one product can affect a whole range of similarly branded products.

• Brands invite competition – often from copycat manufacturers.

• There may be a high cost of research and development in ensuring that the brand continues to develop and lead the market.

What is a USP?

A unique selling point is a feature or features of a product / service that can be used to separate it from the competition.

What is product differentiation?

A process used by businesses to distinguish a product or service from other similar ones available in the market.

How may a business differentiate its products?

• Packaging

• Quality

• Branding

• Pricing

• Provision of add-ons