The Bcg Matrix

1694 WordsOct 17, 20107 Pages
BCG Matrix Opportunity - Threat Analysis Submitted to: Professor Clyde By : Parth Mithani Roll No. 60 F.Y.M.M.S. Alkesh Dinesh Modi Institute for Financial & Management Studies. 1) The BCG Matrix The BCG / Growth-Share matrix is a model developed by the Boston Consultancy Group in the early 1970’s. It is a well known tool for a marketing manager. It is based on the observation that a company’s business units can be classified into four main categories based on combinations of market growth and market share, hence the name growth-share matrix. Market growth represents the industry attractive attractiveness, and market share stands for competitive advantage. This helps the marketing manager allocate resources and is used as an…show more content…
* A business with a low market share can be profitable too. To understand this concept more clearly, lets study the BCG Matrix on Nestle: Market Growth Market Share Low High High Low Stars: Cash Cows: Problem Children: Dogs: Nescafe Cerelac Milo Maggi Sauce Kit Kat Bar One Nestle Milk Maggi Noodles Nestea Milkybar Crunch Munch i. Product: Nescafe Position: Star Reasons for present positioning: * Nescafe is one of the leading coffee brands in the Indian market. * It has find a dominance which is unparalleled by any other brand in the country. * Not only does it have a high market share but it growth rate is also significantly high. * The name Nescafe has become generic with coffee. ii. Product: Maggi Noodles Position: Cash Cow Reasons for present positioning: * It is surprising to note that Maggi Noodles, which has found more households of consumption in India that any other country in the world and has become the first preference of Indian children in terms of instant food, is only a cash cow and not a star. * The reason essentially lies in the fact that though Maggi Noodles has a significantly high market share in the Noodles market in India, the market growth * Rate of Noodle consumption is not very high. * Though the number of repeat purchasers is high in case of Maggi, the rate of increase among the new purchasers is not too high. iii. Product: Milo

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