An Analysis of Several PepsiCo Brands Using a Boston Consulting Group Matrix

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Analysis of Several PepsiCo Brand Using a Boston Consulting Group Matrix Introduction The Boston Consulting Group matrix, also known as the BCG Matrix, divides brands and products into different categories based on their market performance. The matrix looks at two dimensions: growth rate of the industry and market share. The aim of the matrix is to aid with strategic decision making, allowing firms to identify and invest in products that create, or have the potential to create, the best returns, while reviewing the viability of weaker product ranges (Johnson et al, 2010). The four categories in the matrix are cash cows, dogs, stars, and question marks. The matrix may be used to examine some of PepsiCo's brands. Frito-Lay The cash cow category is products where the product has a large market share in a slow growing market. Products that are defined as cash cows are generating a high level of cash in excess of the costs and profitable products. In many instances the cash cows may be perceived boring product; with a stable market share. The benefit of a cash cow is the ability of the firm to 'milk the cow' by investing relativity small amounts to maintain the product and its market share. The Frito-Lay is a significant brand for PepsiCo, from the US operations this brand is contributing more than $10 billon revenue to the firms' sales in the financial year ending 2012 (Trefis, 2012). The operating profit of the product in the North American Market is in excess of

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