PRODUCT MANAGEMENT

1. PRODUCT MANAGEMENT CHAPTER 5: Category Attractiveness Analysis

2. LEARNING OBJECTIVES: After studying this chapter, you should be able to: • Understand the basic concept of category analysis • Understand what are the aggregate market factors • Identify the category factors • Classify the environmental factors

3. CHAPTER OUTLINE • Overview of the category attractiveness analysis • Aggregate market factors • Category factors • Environmental factors

4. Overview • Product managers must ask whether category of interest is sufficiently attractive • Often characterized as ‘industry’ or ‘market’ analysis • Characteristics of product category rarely point to the same direction

5. Aggregate Market Factors • Category size • Market growth • Product life cycle • Sales cyclicity • Seasonality • Profits

6. Category factors • Based on Porter’s five forces: • Threat of new entrants • Bargaining power of buyers • Bargaining power of suppliers • Amount of intra-category rivalry • Threat of substitute products

7. Environmental Analysis • Technological factors • Political factors • Economic factors • Regulatory factors • Social factors

8. THANK YOU