The product portfolio is the collection of products produced by the marine and agricultural farmers and harvesters; manufactured and marketed by the food ingredient processor and the retail foods manufacturer; and for the retailer and food service, the food products marketed.

In large companies in the food industry, there are many products in a product mix so that they are usually grouped into product areas, which are further subdivided into product lines. A product line is a group of products that are related, either used for similar purposes or possessing similar characteristics (Schaffner et al., 1998). The product mix is live and evolving. It is currently profitable and as it changes, its profitability needs to continue to achieve the aims of the company. This does not mean that every product in the mix is profitable - there are other aims for products in a mix. They may complement other products, extend a line to give it variety, fill a place in the market, and so on.

The product mix is a mixture of products at different stages in the product life cycle: from new products to products that are at the end of their life cycle and dying. It is this variation of age that gives the mix its evolving character. The product mix also has variations in the sales revenue and the profits: some products are the major revenue earners and some the major profit earners. So the product mix has characteristics shown in Table 2.7.


Table 2.7 Characteristics of the product mix

Products Marketing Finance Types of product Product platforms Product lines Product ages Product images Product attributes Types of market Market segments Consumers Industrial customers Food service customers Competing products Sales revenues Profits Market potential

Sometimes products are also grouped according to the types of raw materials and methods of processing and distribution, for example, cereal products and meat products, frozen products and canned products.