The 5 portfolio management mistakes you don’t know you’re making
From the risks of discounting to the risks of psychological price thresholds, we outlined five pitfalls brand managers should avoid when it comes to managing their product portfolios. Two of our directors, Robin de Rooij and Oskar Toerneld, teamed up with Anthony Kuo, Manager of strategic analytics for North America Biscuits at Mondelez International, to help you identify and avoid these common mistakes. Get the entire article on Campaign Asia-Pacific.
5 portfolio management mistakes brand managers don’t know they’re making
“A product portfolio can contain many items addressing a diverse collection of consumer needs. Some products perform well, others less so. Many times, markets have changed since a portfolio was put together and the strategy was outlined. And pricing changes have likely occurred in the category—perhaps driven by changes in the cost of goods.
Because markets are constantly changing, brands are re-evaluating constantly, adapting portfolio strategies to maintain financial goals and positioning. Portfolio adjustments can have short-term and long-term consequences, so addressing all options, along with the pros and cons to each, is necessary to finding the best option. Here are some common strategic pitfalls that brand managers can run into when trying to optimise a portfolio…”
Mistake #1: Becoming over-reliant on trade promotion
Mistake #2: Cutting off the incremental assortment tail
Mistake #3: Ignoring price thresholds
Mistake #5: Changing size without really considering value
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