Use a product tracking system to optimize the product portfolio

Companies like to launch new brands, lines, and brand extensions. These new product launches are usually created by using different package sizes, ingredients, flavors, etc. The strategy behind numerous new product launches is to capture more shelf space or to satisfy the tastes of consumers. As new products come online the product portfolio quickly grows and becomes unmanageable. It costs a lot of overhead to continue to manage large complex product portfolios and when companies find themselves in this situation they start eliminating whole sets of products at once out of desperation. Moves like this usually generate press and sometimes cost CEO’s and Marketing Leaders their jobs. After the product portfolio has been thinned the whole cycle starts again.

If a product tracking system was incorporated into the marketing plan the scenario described above could be eliminated. The system should simply track all products in the product portfolio and monitor each products percentage of overall revenue on a quarterly basis. These percentages can then be incorporated into the annual marketing plan allowing marketers to focus on the top brands and products of the company. By focusing on the top products the company is able to increase overall sales and profitability. This is a wise use of resources that directly affect the bottom line and it allows weaker performing brands, lines, and products to be reduced through sale, liquidation or simply eliminated much quicker.