Product portfolio management
: what are Sonae MC’s star products?

  • José Leopoldo Soares Almeida Carvalhaes (Student)

Student thesis: Master's Thesis

Abstract

Product portfolio management plays a key role in the performance of a company operating in a very competitive environment, as it is the case with Sonae MC. Being able to identify which products are Star and which factors make a product a Star is of paramount importance for the company. In this Master Final Assignment, a product classification model based on a combination of different customer segmentation is proposed to identify Sonae MC's Star products. A Logistic Regression and Decision Tree models are then used to verify main factors that affect the probability of a product being a star. Results show that the probability of a product being a star is influenced by the average frequency of sales, the percentage of sales when on sale, the price level and the percentage of customers in the following 3 segments: Quality, Family and Price/Promotion. Comparing Logistic Regression and Decision Tree models, the greater predictive capacity of the latter provides better classification metrics.
Date of Award20 Oct 2022
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
Supervisor Leonardo Costa (Supervisor)

Keywords

  • Star products
  • Classification model
  • Logistic regression
  • Decision trees
  • Product portfolio management

Designation

  • Mestrado em Gestão

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