Taking a more strategic approach to new products and portfolio management will yield a 50 percent increase in returns on R&D.
Your product portfolio isn’t performing. The sales and channel teams are wrestling with too many offers with too little differentiation. You are sure some products are draining growth and profitability. But you don’t know how many or which ones are the culprits.
Boost Growth and Profitability
Careful evaluation and optimization of under-performing portfolios will increase both revenue and profitability. Catalyst Strategies portfolio optimization does just that. We employ a thorough, criteria-based product rationalization process, taking into account elements such as company core competencies, cross-offer interdependencies, brand equity, operational capacity, and change implications.
- Development and commercialization of new products and services
- Existing product management, including how to maintain, enhance, refine, or repositioning products to maximize value
- Product retirement, including migration strategy
Effective Product Portfolio Rationalization
Catalyst Strategies’ rigorous portfolio rationalization process starts with an in-depth review of the current performance of each product or service. We then dive into target markets and needs gaps, competitive climate, market size, growth, and dynamics. We incorporate a clear understanding of the company’s competencies, existing portfolio, and brand equity. Based on these insights, and in collaboration with the client team, we offer recommendations based on criteria such as:
- Alignment with brand and other portfolios
- Fully-loaded product contributions, total and margin, averages and trends
- Quantities sold and sales trends
- Sales force or channel share of mind
- Ancillary product revenues
- Competitive ratings
- Satisfaction ratings
- Service levels and issues Improvement opportunities with high-level costs
- Cross-product cannibalization
Concurrently, we work closely with product management teams to define or refine their portfolio management process and incorporate the best practices we use in the optimization process. Our process recommendations are designed to fit the existing culture, structure, and governance of the organization.
To ensure positive outcomes, Catalyst Strategies portfolio optimization approach is fact-based, relevant, and collaborative. We model likely market outcomes, assess the interdependencies of products and services, and predict the financial impacts of adding, eliminating or changing products. We build recommendations on robust business cases to ensure buy-in and follow through.
Catalyst Strategies uses proven methodologies to drive portfolio performance improvement. Often we work simultaneously on cleaning up the existing portfolio while improving the overall portfolio management process.
Call us to increase market share, portfolio revenue, and profitability through optimized portfolio and improved portfolio management process.