Balancing the product portfolio to satisfy customer demand
A JD Sports case study

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Page 6: Conclusion

Jd Sports 18 Image 7Understanding customer buying habits and having the right mix and balance of products is essential for business survival, particularly in the fast moving environment of fashion and sports retail. JD understands the importance of market research to understand what its customers want. JD constantly analyses its product portfolio to ensure that it reflects these wants. A business needs a mix of products in its portfolio so that if one product fails to sell it still has other products that it can depend on. The stages of the PLC help a business to measure the return on its investment in new products and to develop appropriate marketing activities to promote products through their ‘life’.

Pricing of the product and the balance of products can be changed in response to the stage of the life cycle that the product has reached. The PLC helps in planning and forecasting the revenue likely to be generated, from the product development stage through to maturity and decline. JD invests heavily in its promotional activity to ensure products are targeted to its fashion conscious market. Its innovative visual merchandising and promotional strategies help it to remain the UK’s leading retailer and distributor of fashionable sports and casual wear.

JD Sports | Balancing the product portfolio to satisfy customer demand