Having an offer that fully meets the needs of the target group and addresses the majority of values recognised by customers is the primary challenge for a product manager. Specialists in charge of offer development need to be able to rely on relevant and accurate information for both individual offerings and entire product portfolios.
- Does my product portfolio lack specific products that could be important to existing customers?
- Which of my products will best meet the needs of a specific group of customers?
- How to optimise my product portfolio taking into account the needs of my existing and potential customers?
A properly diversified product portfolio not only contributes to the success of a company as a whole, but also helps improve the sales performance of individual products, while increasing the satisfaction and loyalty of target customers to individual product lines.
The assessment of a product portfolio must take into account the nature of products and the purchasing model. The assessment of a portfolio of fast moving consumer goods (FMCGs), for example, is quite different to an assessment of a portfolio of luxury products. Segmentation studies may also be used to assess service offerings.
Segmentation studies help ascertain whether a company’s existing products or services satisfy the needs of the target group and whether they enable customer migration between individual price categories (whether the offer includes a properly defined premium segment). In addition, a product segmentation study provides insight into which elements of a product portfolio help generate new business and whether any gaps in the portfolio lead to a loss of business.
How do we deliver
PMR Research commonly begins its segmentation studies with a qualitative assessment based on focus group interviews (FGI). This is conducted with typical consumers from the product category in question as well as existing users of the client’s products. After defining the key features of offer perception and following a workshop interview with the client (aimed at determining key product strategy elements to be tested), we proceed on to the quantitative part of the study. At this stage, relevant data is expressed in percentage values to demonstrate the strengths and weaknesses of a product or service, as well as customer flow. Analysis of the information gathered in the study, together with the company’s sales data, enable us to conduct a detailed examination of the offer structure and evaluate its ability to address the expectations of the market.