Optimize your product portfolio

One of the components of the marketing strategy is the product portfolio. The latter is defined as all the products offered by a company, whether new or historical.

Optimize your product portfolio

The product portfolio policy includes:

  • Variants associated with the characteristics/performance/functionality of products or services
  • Customizations for a customer
  • The design
  • Packaging
  • The brand under which the product is sold
  • Standards and labels

All these products were created to satisfy needs. These needs may have specific characteristics depending on the target market. Moreover, the pace of renewal of a range as well as the necessary evolutions (technical, normative, etc.) increase the diversity of a product portfolio.

This results in a large number of product variants in order to satisfy each customer according to his needs.

Historically, to meet the specific and varied needs of each customer or market, companies used the following product policy logic:

Need► Specific study / Customized for delivery ► Delivery

This approach leads to unique products that are difficult to reuse to meet other needs.

Consequently, the costs of development, tools, marketing, etc. are difficult to share, which is nevertheless a major challenge for companies.

Standardisation solutions include the manufacture of "envelope" solutions that cover all requirements, even if certain functions are not systematically used.

This approach quickly shows its limitations because unnecessary functions represent an unjustified extra cost.

The challenge for companies is therefore to continue to offer a diversity of apparent products at just the right cost and while maintaining the advantages of the rationalisation operations already carried out over the delivery times.

The success of this "adaptable" diversity management to all targeted needs will allow you to optimize all or part of:

  • Your management costs
  • Your production costs
  • Your study/research costs
  • Your time-to-market delivery times
  • Your maintenance costs

IAC’s approach is carried out in parallel on the product and on the company’s internal processes.

Modular design and platforming are 2 design modes that allow adapting product design to diversity, on the principles of delayed differentiation and flexible architecture industrially and scalable over time.

IAC has developed expertise in these approaches with its clients, enabling them to reduce internal diversity, while maintaining an apparent, visible and sufficient diversity for the client. Streamlined production and cost control are the results.

On the organizational side, IAC found during its projects that much of the diversity produced was also caused by a lack of capitalization of past projects. With each newly expressed need, the work of study, design, purchasing, production was systematically restarted, without any analysis of the interest of reusing an existing solution.

IAC helps you to set up the organisation and process to take advantage of the studies, solutions and products already carried out in your company. The tools used by IAC intervene on the process of obtaining an order, on its treatment and on its manufacture.

This operation leads, for example, to an internal standardisation of the offer (new coding of components by variants and options), a proposal for a standardised product if one exists and simpler customisation if necessary.

In the end, delivery times are shortened and manufacturing costs are reduced.

This approach also has the second effect of pushing you to rethink your product offering strategy in order to reach a maximum number of customer targets looking for both standard and customized products.

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