• SWOT analysis
• Marketing budget
• Business Objectives
• Marketing strategies
• Market Research
Marketing plan needs to consider:
• Market place
• Future development
S = Strengths facing a business
W = Weaknesses facing a business
O = Opportunities facing a business
T = Threats facing a business
• Market existing products to our existing customers
• This means increasing the revenue by promoting the
product, repositioning the brand, etc
• The product is not altered and no new customers are
• Market the existing product range in a new market.
• The product remains the same, but it is marketed to a
new audience eg exported
• A new product is marketed to existing customers
• Develop and innovate new product offerings to replace
• Products are marketed to existing customers e.g. could be
• Market new products to new customers
Two types of diversification:
1. Related diversification means remaining in a market or
industry with which we are familiar
2. Unrelated diversification is where there is no previous industry
nor market experience
• The Boston Matrix is a way of analysing how successful a company is
by looking at its market share and how fast that share is growing
• The Boston Matrix was developed by the Boston Consulting Group in
1970 to help corporations compare their business investments and
decide where to allocate funding
• It has two dimensions - relative market share and market growth
• You can look at your investment (your company, a business unit or its
products and services) and place it onto the Matrix
• You can gain perspective from this analysis that allows you to plan with
confidence to use money generated by cash cows to fund stars and
possibly question marks
Most investments start in this category.
A problem child has a small share of a growing market; it
needs investment and attention if it is to grow.
They consume resources and generate little in return as
you attempt to increase market share.
The corporate goal must be to grow the business to
become a star. Otherwise, when the industry matures and
growth slows, the unit will fall down into the dog category.
Strategy - Focus
A star has a large share of the market and it is growing
In order to grow further, it requires more investment which
it is often able to pay for from its own profits. When it stops
growing, a star may become a cash cow.
These are products that are in high growth markets with a
relatively high share of that market.
Stars tend to generate high amounts of income. Keep and
build your stars.
Strategy – Develop
If a product or business unit is a cash cow then it has a large
share of a market that is no longer growing.
It is regarded as staid and boring but every investor would be
pleased to own as many as possible.
It produces a lot of revenue but most of this can be invested
in other areas of the company as further investment in the
cash cow would produce little or no extra profit.
Strategy - Hold
Dogs can more charitably be called pets.
These are investments with a low share of a low growth
A dog is of little value to most companies and a decision
must be taken whether to continue investing in it or to
dispose of the investment entirely.
Strategy – Divest
Look for balance within your portfolio.
Try not to have any Dogs.
The remaining investments need to be kept in equilibrium.
The funds generated by your Cash Cows is used to turn
Problem Children into Stars, which may eventually become
Some of the Problem Children will become Dogs.