Product Portfolio Analysis

Posted by SMstudy® on May 20, 2021 | Marketing Strategy (MS)

Keywords: Product Portfolio Analysis, Market Research, SMstudy

Product Portfolio Analysis

Product portfolio includes all the products or services offered by a company. An analysis of the product portfolio is conducted by an organization to gather insights on growth prospects, opportunities, threats, profit drivers, etc. It is also helpful in evaluating the current product lines and projecting the future ones.

Peter Drucker had proposed a classification method to help companies analyze their product portfolio based on each product’s present and future profitability. In this classification method, product portfolio includes seven categories. Let’s discuss each of them one by one:

1. Today’s Breadwinners:

These are the star products of an organization. Such products are highly demanded and they are the one that contributes to the most in the current profits.


2. Tomorrow’s Breadwinners:

These are the products which are projected to be very profitable in the future but may not be contributing significantly at the present. As the companies see a very strong growth potential in such products, they may be confident enough to invest in them.


3. Yesterday’s Breadwinners:

This is a product category which once had very high demand and contributed significantly in the profitability of an organization. But, currently, they are not in demand and are not contributing to the profits any longer. However, the companies may choose to provide a minimum level of support but may not be interested in investing a lot in such products.


4. Developments:

These are the products which are in development stage. Making investments in their development to make them available in the market may be beneficial for the company. A thorough analysis of the market potential and ROI may be used by the organization while deciding whether or not to make an investment decision.


4. Sleepers:

These products had once been in the market but they could not establish themselves. The companies need to study the loopholes and causes of failure of these products and then decide the future of these products.


5. Investments in Managerial Ego:

These are the products which are backed by the influential managers but have little demand in the market. These products may be the cause of wastage of functional resources. The company should be alert to see that the products offered by them are accepted by the customers, otherwise investments and the resources may be wasted.


6. Failures:

These are the products that the companies choose to discontinue. This is because they neither contributed in profitability in the past nor do they have the potential to do the same in the future.

After classifying the products in these categories, the marketers will be in a position to pinpoint the products that contribute to the growth of the company. Generally, products that come in the first 3 categories of this matrix are the strengths of the company, while the last 2 are the weakness. However, the company needs to analyze products that fall in the category of “developments” and “sleepers”.


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Product Portfolio Analysis

Posted by SMstudy® on September 16, 2015 | Marketing Strategy (MS)

Keywords: Product Portfolio Analysis, Portfolio, Peter Drucker, today`s breadwinners

Product Portfolio Analysis

The strengths and weaknesses of a company determine its internal capabilities to compete in a market and fulfill customer expectations. One of the tools to identify the strengths and weaknesses of a company is a Product Portfolio Analysis. The Product Portfolio Analysis was proposed in 1973 by Peter Drucker as a way to classify current and expected profitability.


The Product Portfolio Analysis classified various offerings of a particular company into seven categories. They are:

  • Today`s Breadwinners - These products are most profitable to the company. The company should support these products and maintain current investment levels.
  • Tomorrow`s Breadwinners - These products have the potential to contribute to the company`s profit in the future and thus the company should support these products and perhaps increase investments in them.
  • Yesterday`s Breadwinners - These were the most profitable products of the past but do not currently contribute significantly to profits. The company needs to maintain a minimum level of support and investment for these products until the time they resume generating substantial profits. After that, the company may decide to discontinue such products.
  • Developments - These products are under development and need greater investment to achieve a level on which they start generating profits. A decision on whether to invest more resources needs to be made after a thorough analysis of the market potential and Return on Investment (ROI) for these products.
  • Sleepers - These products have been around for some time but have failed to establish themselves.
  • Investments in Managerial Ego - These products, backed by influential managers, have little proven demand in the market and typically waste many functional resources.
  • Failures - These products have failed in the past and have no future in their current form. They should ideally be discontinued unless there is a way to successfully reposition them.

Products in the first three categories, "Today`s Breadwinners," "Tomorrow`s Breadwinners," and "Yesterday`s Breadwinners," are strengths of the company while those in the last two categories, "Investments in Managerial Ego" and "Failures," are weaknesses. The "Developments" and "Sleepers" need to be analyzed in greater detail to classify them as either strengths or weaknesses.


A product portfolio analysis for a company in the phone manufacturing industry may categorize its entire product as follows:

  • Today`s Breadwinners: Touch screen cell phones
  • Tomorrow`s Breadwinners: Hybrid tablet-cell phones
  • Yesterday`s Breadwinners: Home phone handsets
  • Developments: Wearable technology
  • Sleepers: Imbedded, bio-technology
  • Investments in Managerial Ego: Extendable keyboards
  • Failures: In-ear receivers

After the classification exercise, the marketing team is able to pinpoint products that contribute to the company`s strengths and those that do not. Accordingly, the Marketing Strategy to be followed for each product can be decided.


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