Portfolio Gap and Clutter Analysis

It is not uncommon to have a product portfolio that does not have any  products in a particular price range and a lot of products in some other price range.  Any such gap or clutter in a product portfolio needs evaluation. 

Some times a scientific evaluation can suggest that  a gap or a clutter is the most appropriate strategy, but most  of the times it is sign of missed opportunity. If a product is introduced in a portfolio gap, it can add to new revenues. Similarly, if some products at a clutter point are retired or re-positioned, it reduces the product management costs.

What is Portfolio Gap and Clutter Analysis?  Product Portfolio Gap and Clutter Analysis is an objective assessment of the portfolio from the customer’s point of view. It has the potential to be a significant driver of profit.

How is it done? The study begins with field work that includes extensive interviews and surveys of customers and channel partners. It helps in building a choice model for the customers. 

The Pricology team also captures the tacit knowledge of our client’s representatives through management workshops.  Additionally,  hard sales data  is evaluated to examine trends in consumer choices.

Our simulation tool uses all these information to give a host of options along with the cost benefit analysis of each of them.

How does it help the clients?  At the end of the study, we provide our clients with suggestions on introducing products at particular price points. We also recommend the products that can be retired or re-positioned.

All the recommendations factor client’s  long term strategy and brand positioning. 

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