SlideShare a Scribd company logo
qwertyuiopasdfghjklzxcvbnmqwertyui
opasdfghjklzxcvbnmqwertyuiopasdfgh
jklzxcvbnmqwertyuiopasdfghjklzxcvb
nmqwertyuiopasdfghjklzxcvbnmqwer
tyuiopasdfghjklzxcvbnmqwertyuiopas
dfghjklzxcvbnmqwertyuiopasdfghjklzx
cvbnmqwertyuiopasdfghjklzxcvbnmq
wertyuiopasdfghjklzxcvbnmqwertyuio
pasdfghjklzxcvbnmqwertyuiopasdfghj
klzxcvbnmqwertyuiopasdfghjklzxcvbn
mqwertyuiopasdfghjklzxcvbnmqwerty
uiopasdfghjklzxcvbnmqwertyuiopasdf
ghjklzxcvbnmqwertyuiopasdfghjklzxc
vbnmqwertyuiopasdfghjklzxcvbnmrty
uiopasdfghjklzxcvbnmqwertyuiopasdf
ghjklzxcvbnmqwertyuiopasdfghjklzxc
BCG SHARE MATRIX ANALYSIS of
NESTLE and P&G
Submitted to: Dr. Alam Zeb
By: Adil Nawaz Khan
BBA 5th
Semester
E# 368
BCG Growth Share Matrix
The Growth share matrix was developed by BCG in 1970. The Boston Consulting Group (BGC) growth
share matrix is a planning tool that uses graphical representations of a company’s products and services in
an effort to help the company decide what it should keep sell or invest more in. The BCG growth share
matrix plots a company’s offerings in a four square matrix, with the y-axis representing rate of market
growth and the x-axis representing market share.
Howto use the BCG Matrix?
To look at each of these quadrants, here are some tips:
 Dogs: The usualmarketing advice is to remove any dogs from your product portfolio as they are a
drain on resources.
However, some can generate ongoing revenue with little cost.
 For example, in the automotive sector, when a car line ends, there is still a need for spare parts. As
SAAB ceased trading and producing new cars,a whole business has emerged providing SAAB parts.
 Question marks: Named this, as it’s not known if they will become a star or drop into the dog
quadrant. These products often require significant investment to push them into the star quadrant. The
challenge is that a lot of investment may be required to get a return. For example, Rovio, creators of
the very successfulAngry Birds game has developed many other games you may not have heard of.
Computer games companies often develop hundreds of games before gaining one successfulgame.
It’s not always easy to spot the future star and this can result in potentially wasted funds.
 Stars: Can be the market leader though requires ongoing investment to sustain. They generate more
ROI than other product categories.
 Cash cows:‘Milk these products as much as possible without killing the cow! Often mature, well
established products. The company Procter & Gamble which manufactures Pampers nappies to Lynx
deodorants has often been described as a ‘cash cow company’.
Using the tool
Although BCG analysis has lost its importance due to many limitations, it can still be a useful tool if
performed by following these steps:
 Step 1. Choose the unit
 Step 2. Define the market
 Step 3. Calculate relative market share
 Step 4. Find out market growth rate
 Step 5. Draw the circles on a matrix
Step 1. Choose the unit. BCGmatrix can be used to analyze SBUs,separate brands,products or a firm as
a unit itself. Which unit will be chosen will have an impact on the whole analysis. Therefore,it is
essential to define the unit for which you’ll do the analysis.
Step 2. Define the market. Defining the market is one of the most important things to do in this analysis.
This is because incorrectly defined market may lead to poor classification. For example, if we would do
the analysis for the Daimler’s Mercedes-Benz car brand in the passenger vehicle market it would end up
as a dog (it holds less than 20% relative market share),but it would be a cash cow in the luxury car
market. It is important to clearly define the market to better understand firm’s portfolio position.
Step 3. Calculate relative market share. Relative market share can be calculated in terms of revenues or
market share. It is calculated by dividing your own brand’s market share (revenues) by the market share
(or revenues) of your largest competitor in that industry. For example, if your competitor’s market share
in refrigerator’s industry was 25% and your firm’s brand market share was 10% in the same year,your
relative market share would be only 0.4. Relative market share is given on x-axis. It’s top left corner is set
at 1, midpoint at 0.5 and top right corner at 0 (see the example below for this).
Step 4. Find out market growth rate. The industry growth rate can be found in industry reports, which
are usually available online for free. It can also be calculated by looking at average revenue growth of the
leading industry firms. Market growth rate is measured in percentage terms. The midpoint of the y-axis is
usually set at 10% growth rate,but this can vary. Some industries grow for years but at average rate of 1
or 2% per year. Therefore,when doing the analysis you should find out what growth rate is seen as
significant (midpoint) to separate cash cows from stars and question marks from dogs.
Step 5. Draw the circles on a matrix. After calculating all the measures,you should be able to plot your
brands on the matrix. You should do this by drawing a circle for each brand. The size of the circle should
correspond to the proportion of business revenue generated by that brand.
Nestlé
“Nestlé” is a Swiss-German word which means “Little Nest” Nestlé is the worlds’ number one food
company. Nestle is 5th
largest company of the world according to its turnover. More than 2 million 31
thousand people employed from all over the world. It is one of largest diversified food company in
Pakistan with the widest product range.
NESTLE BCG Share Matrix
Star Question Mark
 Mineral water
 Nescafe
 Ceralac
o Nesquik
o Magi Sauce
o Nestle Nestum
o Nescafe Decaf
Cash Cow Dog
Milkpak
Baby Food
Maggi Noodles
 Chocolates
 Juices
 Nestea
 Nestle dahi
 Nestles market share in chocolate segment is 25% as compared to Cadbury 70%
 Maggi sauce has a market share of 47% as compared to its competitor kissan with 26%
 Nescafe market share in the instant coffee segment is 52% compared to Bru which has 43% of
market share.
 Nestle has 80% market share in baby food segment.
 It is a major contributor for Nestlé’s revenues with 68% market share compared to its competitor
Heinz.
 Mineral water has a market share of 89% as compared to its competitor Aquafina with 22%
 Milkpak has a market share of 65% as compared to its competitor Good milk with 35% and
Olpers 45%.
 Maggi noodles has a market share of 70% as compared to top ramen 19%
 80% market share in the Rs.1300 crore instant noodles segment.
Procter & Gamble
The Procter & Gamble Company, also known as P&G,is an American multinational consumer goods
company headquartered in downtown Cincinnati, USA. As of 2008, P&Gis the 23rd largest US company
by revenue and 14th largest by profit. P&Gis credited with many business innovations including brand
management, the soap opera, and "Connect & Develop" innovation. According to the Nielsen Company,
in 2007 P&Gspent more on U.S. advertising than any other company.
NESTLE BCG Share Matrix
BCG TITLE Brand Revenues Brand’s
market
share
Relative
market
share Market growth
rate
Star Mineral Water 2903040 32% 89% 85%
Cash Cow Milkpak 65% 55%
Question Mark Noodles 43% 75%
Dog Chocolates/Juices 10.2% 38% 40%
Family of Products :
Personal & Beauty
- Cosmetics, Oral Care,Hair Care
House & Home
- Laundry care,Dish Soap, Snacks & Coffee
Health & Wellness
- Prescription drugs, Health Care
Baby & Family
- Pet Care & Nutrition
NESTLE BCG Share Matrix
Star Question Mark
 Pantene
 Gillete
 BraUn
 Pampers
o Olay
Cash Cow Dog
Tide
H&S
Vicks
Oral B
Ariel
 Pert
 Cheer
 Ambi pur
 Vicks Vaporub is market leader in this segment with a share of 50%.
 Vicks action 500 has around 40% market share
 Vicks brand accounts for 40% of Company turnover, i.e. Rs. 170 Cr.
 H&S is market leader for more than 35 years. As a result, over 90 million people in over 45
different countries have come to depend on Head & Shoulders® to help prevent dandruff.
 Pamper has a market share of 35% as compared to its competitor Huggies with 22%

More Related Content

What's hot

Analysis of P&G
Analysis of P&GAnalysis of P&G
Analysis of P&G
Manas Kasliwal
 
Presentation on P&G
Presentation on P&GPresentation on P&G
Presentation on P&G
Mian Zahid
 
Detergent Market in India as of 2015 (Surf Excel, Ariel, Nirma, Wheel, Tide, ...
Detergent Market in India as of 2015 (Surf Excel, Ariel, Nirma, Wheel, Tide, ...Detergent Market in India as of 2015 (Surf Excel, Ariel, Nirma, Wheel, Tide, ...
Detergent Market in India as of 2015 (Surf Excel, Ariel, Nirma, Wheel, Tide, ...
Arjun Parekh
 
Colgate case study
Colgate case study Colgate case study
Procter and Gamble (P&G) Company overview
Procter and Gamble (P&G) Company overviewProcter and Gamble (P&G) Company overview
Procter and Gamble (P&G) Company overview
Akhil Raj
 
SWOT and BCG Matrix of ITC Company Competitive Marketing
SWOT and BCG Matrix of ITC Company Competitive MarketingSWOT and BCG Matrix of ITC Company Competitive Marketing
SWOT and BCG Matrix of ITC Company Competitive Marketing
Mayank Garg
 
Procter & gamble co
Procter & gamble coProcter & gamble co
Procter & gamble co
Jay Shah
 
Bcg matrix of itc ltd
Bcg matrix of itc ltdBcg matrix of itc ltd
Bcg matrix of itc ltd
Bibaswan Mohanty
 
ChotuKool Case Study Solution.pptx
ChotuKool Case Study Solution.pptxChotuKool Case Study Solution.pptx
ChotuKool Case Study Solution.pptx
Vishal543707
 
Colgate ppt
Colgate pptColgate ppt
Colgate ppt
AbhishekPaul87
 
AMUL BCG Matrix
AMUL BCG MatrixAMUL BCG Matrix
AMUL BCG Matrix
Shubham Shah
 
FMCG SECTOR ANALYSIS
FMCG SECTOR ANALYSISFMCG SECTOR ANALYSIS
FMCG SECTOR ANALYSIS
arjunarg
 
FMCG sector in india
FMCG sector in indiaFMCG sector in india
FMCG sector in india
Sagar Bhatt
 
Colgate Product life cycle and Bcg Matrix
Colgate Product life cycle and Bcg MatrixColgate Product life cycle and Bcg Matrix
Colgate Product life cycle and Bcg Matrix
Praveen Choudhary
 
Marketing case study on procter & gamble (P&G)
Marketing case study on procter & gamble (P&G)Marketing case study on procter & gamble (P&G)
Marketing case study on procter & gamble (P&G)
Rahbar Haque
 
Porters five forces model on fmcg
Porters five forces model on fmcgPorters five forces model on fmcg
Porters five forces model on fmcg
Rameez Ahmed
 
Cola wars Case Study Analysis
Cola wars Case Study AnalysisCola wars Case Study Analysis
Cola wars Case Study Analysis
Vinodhini Guhesan, MBA, PMP, CSM, PSM1
 
HUL vs P&G
HUL vs P&GHUL vs P&G
HUL vs P&G
Saurabh Barnwal
 
P&g company analysis
P&g company analysisP&g company analysis
P&g company analysis
Abhay Chavan
 
Colgate new
Colgate newColgate new
Colgate new
Art Tech JEwels
 

What's hot (20)

Analysis of P&G
Analysis of P&GAnalysis of P&G
Analysis of P&G
 
Presentation on P&G
Presentation on P&GPresentation on P&G
Presentation on P&G
 
Detergent Market in India as of 2015 (Surf Excel, Ariel, Nirma, Wheel, Tide, ...
Detergent Market in India as of 2015 (Surf Excel, Ariel, Nirma, Wheel, Tide, ...Detergent Market in India as of 2015 (Surf Excel, Ariel, Nirma, Wheel, Tide, ...
Detergent Market in India as of 2015 (Surf Excel, Ariel, Nirma, Wheel, Tide, ...
 
Colgate case study
Colgate case study Colgate case study
Colgate case study
 
Procter and Gamble (P&G) Company overview
Procter and Gamble (P&G) Company overviewProcter and Gamble (P&G) Company overview
Procter and Gamble (P&G) Company overview
 
SWOT and BCG Matrix of ITC Company Competitive Marketing
SWOT and BCG Matrix of ITC Company Competitive MarketingSWOT and BCG Matrix of ITC Company Competitive Marketing
SWOT and BCG Matrix of ITC Company Competitive Marketing
 
Procter & gamble co
Procter & gamble coProcter & gamble co
Procter & gamble co
 
Bcg matrix of itc ltd
Bcg matrix of itc ltdBcg matrix of itc ltd
Bcg matrix of itc ltd
 
ChotuKool Case Study Solution.pptx
ChotuKool Case Study Solution.pptxChotuKool Case Study Solution.pptx
ChotuKool Case Study Solution.pptx
 
Colgate ppt
Colgate pptColgate ppt
Colgate ppt
 
AMUL BCG Matrix
AMUL BCG MatrixAMUL BCG Matrix
AMUL BCG Matrix
 
FMCG SECTOR ANALYSIS
FMCG SECTOR ANALYSISFMCG SECTOR ANALYSIS
FMCG SECTOR ANALYSIS
 
FMCG sector in india
FMCG sector in indiaFMCG sector in india
FMCG sector in india
 
Colgate Product life cycle and Bcg Matrix
Colgate Product life cycle and Bcg MatrixColgate Product life cycle and Bcg Matrix
Colgate Product life cycle and Bcg Matrix
 
Marketing case study on procter & gamble (P&G)
Marketing case study on procter & gamble (P&G)Marketing case study on procter & gamble (P&G)
Marketing case study on procter & gamble (P&G)
 
Porters five forces model on fmcg
Porters five forces model on fmcgPorters five forces model on fmcg
Porters five forces model on fmcg
 
Cola wars Case Study Analysis
Cola wars Case Study AnalysisCola wars Case Study Analysis
Cola wars Case Study Analysis
 
HUL vs P&G
HUL vs P&GHUL vs P&G
HUL vs P&G
 
P&g company analysis
P&g company analysisP&g company analysis
P&g company analysis
 
Colgate new
Colgate newColgate new
Colgate new
 

Similar to Bcg growth share matrix

Pragmatic Marketer Winter 2014
Pragmatic Marketer Winter 2014Pragmatic Marketer Winter 2014
Pragmatic Marketer Winter 2014
Pragmatic Marketing
 
Pricing Analytics Case Study
Pricing Analytics Case StudyPricing Analytics Case Study
Pricing Analytics Case Study
Michael Wolfe
 
Marketing plan for green basket
Marketing plan for green basketMarketing plan for green basket
Marketing plan for green basket
Mohit00013
 
BCG Matrix presentation
BCG Matrix presentationBCG Matrix presentation
BCG Matrix presentation
Rishi Narula
 
BCG Matrix presentation
BCG Matrix presentationBCG Matrix presentation
BCG Matrix presentation
Rishi Narula
 
Marketing plan for green basket
Marketing plan for green basketMarketing plan for green basket
Marketing plan for green basket
Mohit00013
 
The Procter & Gamble Company Full Report (1)
The Procter & Gamble Company Full Report (1)The Procter & Gamble Company Full Report (1)
The Procter & Gamble Company Full Report (1)
Mozika Maloba
 
Ay Chip. Annual Report
Ay Chip. Annual ReportAy Chip. Annual Report
Ay Chip. Annual Report
David Minatra
 
Procter & Gamble Strategic Analysis
Procter & Gamble Strategic AnalysisProcter & Gamble Strategic Analysis
Procter & Gamble Strategic Analysis
Steven Perdoch
 
Demo marketing plan
Demo marketing planDemo marketing plan
Demo marketing plan
Anuj Verma
 
6 7-product-portfolio-analysis compress
6 7-product-portfolio-analysis compress6 7-product-portfolio-analysis compress
6 7-product-portfolio-analysis compress
UCB
 
FY15 Marketing Strat SOLAL final
FY15 Marketing Strat SOLAL finalFY15 Marketing Strat SOLAL final
FY15 Marketing Strat SOLAL final
Graham Boden
 
Section 2 Team 9 BP
Section 2 Team 9 BPSection 2 Team 9 BP
Section 2 Team 9 BP
Michael Calo
 
Analysing Top FMCG Company performance
Analysing Top FMCG Company performanceAnalysing Top FMCG Company performance
Analysing Top FMCG Company performance
Rinshi Singh
 
MARK Consulting Group – GAP Apparel Division
MARK Consulting Group – GAP Apparel DivisionMARK Consulting Group – GAP Apparel Division
MARK Consulting Group – GAP Apparel Division
russfurman
 
StayinFront Leadership Perspective Roundtable Interview with Dale Hagemeyer- ...
StayinFront Leadership Perspective Roundtable Interview with Dale Hagemeyer- ...StayinFront Leadership Perspective Roundtable Interview with Dale Hagemeyer- ...
StayinFront Leadership Perspective Roundtable Interview with Dale Hagemeyer- ...
StayinFront
 
BCG Matrix Explaint
BCG Matrix ExplaintBCG Matrix Explaint
BCG Matrix Explaint
Fatih Mehmet Zeybekci
 
Pet tracker oap final
Pet tracker oap finalPet tracker oap final
Pet tracker oap final
Carlos Felipe Colmenares Misas
 
Interpreting product launch sales data for NPDs
Interpreting product launch sales data for NPDs Interpreting product launch sales data for NPDs
Interpreting product launch sales data for NPDs
IRI, INTL
 
Pharmasim final presentation
Pharmasim final presentationPharmasim final presentation
Pharmasim final presentation
AuT Tanwichit
 

Similar to Bcg growth share matrix (20)

Pragmatic Marketer Winter 2014
Pragmatic Marketer Winter 2014Pragmatic Marketer Winter 2014
Pragmatic Marketer Winter 2014
 
Pricing Analytics Case Study
Pricing Analytics Case StudyPricing Analytics Case Study
Pricing Analytics Case Study
 
Marketing plan for green basket
Marketing plan for green basketMarketing plan for green basket
Marketing plan for green basket
 
BCG Matrix presentation
BCG Matrix presentationBCG Matrix presentation
BCG Matrix presentation
 
BCG Matrix presentation
BCG Matrix presentationBCG Matrix presentation
BCG Matrix presentation
 
Marketing plan for green basket
Marketing plan for green basketMarketing plan for green basket
Marketing plan for green basket
 
The Procter & Gamble Company Full Report (1)
The Procter & Gamble Company Full Report (1)The Procter & Gamble Company Full Report (1)
The Procter & Gamble Company Full Report (1)
 
Ay Chip. Annual Report
Ay Chip. Annual ReportAy Chip. Annual Report
Ay Chip. Annual Report
 
Procter & Gamble Strategic Analysis
Procter & Gamble Strategic AnalysisProcter & Gamble Strategic Analysis
Procter & Gamble Strategic Analysis
 
Demo marketing plan
Demo marketing planDemo marketing plan
Demo marketing plan
 
6 7-product-portfolio-analysis compress
6 7-product-portfolio-analysis compress6 7-product-portfolio-analysis compress
6 7-product-portfolio-analysis compress
 
FY15 Marketing Strat SOLAL final
FY15 Marketing Strat SOLAL finalFY15 Marketing Strat SOLAL final
FY15 Marketing Strat SOLAL final
 
Section 2 Team 9 BP
Section 2 Team 9 BPSection 2 Team 9 BP
Section 2 Team 9 BP
 
Analysing Top FMCG Company performance
Analysing Top FMCG Company performanceAnalysing Top FMCG Company performance
Analysing Top FMCG Company performance
 
MARK Consulting Group – GAP Apparel Division
MARK Consulting Group – GAP Apparel DivisionMARK Consulting Group – GAP Apparel Division
MARK Consulting Group – GAP Apparel Division
 
StayinFront Leadership Perspective Roundtable Interview with Dale Hagemeyer- ...
StayinFront Leadership Perspective Roundtable Interview with Dale Hagemeyer- ...StayinFront Leadership Perspective Roundtable Interview with Dale Hagemeyer- ...
StayinFront Leadership Perspective Roundtable Interview with Dale Hagemeyer- ...
 
BCG Matrix Explaint
BCG Matrix ExplaintBCG Matrix Explaint
BCG Matrix Explaint
 
Pet tracker oap final
Pet tracker oap finalPet tracker oap final
Pet tracker oap final
 
Interpreting product launch sales data for NPDs
Interpreting product launch sales data for NPDs Interpreting product launch sales data for NPDs
Interpreting product launch sales data for NPDs
 
Pharmasim final presentation
Pharmasim final presentationPharmasim final presentation
Pharmasim final presentation
 

More from Adil Nawaz Khan

Civic Engagement in Time of Uncertainty
Civic Engagement in Time of UncertaintyCivic Engagement in Time of Uncertainty
Civic Engagement in Time of Uncertainty
Adil Nawaz Khan
 
The Art of Change management
The Art of Change managementThe Art of Change management
The Art of Change management
Adil Nawaz Khan
 
Internship Report on The Bank Of Khyber
Internship Report on The Bank Of KhyberInternship Report on The Bank Of Khyber
Internship Report on The Bank Of Khyber
Adil Nawaz Khan
 
Hrm analysis of malakand university
Hrm analysis of malakand universityHrm analysis of malakand university
Hrm analysis of malakand university
Adil Nawaz Khan
 
Hrm analysis of pia
Hrm analysis of piaHrm analysis of pia
Hrm analysis of pia
Adil Nawaz Khan
 
Introduction to business research methodology
Introduction to business research methodologyIntroduction to business research methodology
Introduction to business research methodology
Adil Nawaz Khan
 

More from Adil Nawaz Khan (6)

Civic Engagement in Time of Uncertainty
Civic Engagement in Time of UncertaintyCivic Engagement in Time of Uncertainty
Civic Engagement in Time of Uncertainty
 
The Art of Change management
The Art of Change managementThe Art of Change management
The Art of Change management
 
Internship Report on The Bank Of Khyber
Internship Report on The Bank Of KhyberInternship Report on The Bank Of Khyber
Internship Report on The Bank Of Khyber
 
Hrm analysis of malakand university
Hrm analysis of malakand universityHrm analysis of malakand university
Hrm analysis of malakand university
 
Hrm analysis of pia
Hrm analysis of piaHrm analysis of pia
Hrm analysis of pia
 
Introduction to business research methodology
Introduction to business research methodologyIntroduction to business research methodology
Introduction to business research methodology
 

Recently uploaded

Industrial Tech SW: Category Renewal and Creation
Industrial Tech SW:  Category Renewal and CreationIndustrial Tech SW:  Category Renewal and Creation
Industrial Tech SW: Category Renewal and Creation
Christian Dahlen
 
Building Your Employer Brand with Social Media
Building Your Employer Brand with Social MediaBuilding Your Employer Brand with Social Media
Building Your Employer Brand with Social Media
LuanWise
 
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesEvent Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
Holger Mueller
 
Top mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptxTop mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptx
JeremyPeirce1
 
amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05
marketing317746
 
2024-6-01-IMPACTSilver-Corp-Presentation.pdf
2024-6-01-IMPACTSilver-Corp-Presentation.pdf2024-6-01-IMPACTSilver-Corp-Presentation.pdf
2024-6-01-IMPACTSilver-Corp-Presentation.pdf
hartfordclub1
 
Lundin Gold Corporate Presentation - June 2024
Lundin Gold Corporate Presentation - June 2024Lundin Gold Corporate Presentation - June 2024
Lundin Gold Corporate Presentation - June 2024
Adnet Communications
 
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
AnnySerafinaLove
 
Authentically Social Presented by Corey Perlman
Authentically Social Presented by Corey PerlmanAuthentically Social Presented by Corey Perlman
Authentically Social Presented by Corey Perlman
Corey Perlman, Social Media Speaker and Consultant
 
Observation Lab PowerPoint Assignment for TEM 431
Observation Lab PowerPoint Assignment for TEM 431Observation Lab PowerPoint Assignment for TEM 431
Observation Lab PowerPoint Assignment for TEM 431
ecamare2
 
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
my Pandit
 
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfThe 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
thesiliconleaders
 
LA HUG - Video Testimonials with Chynna Morgan - June 2024
LA HUG - Video Testimonials with Chynna Morgan - June 2024LA HUG - Video Testimonials with Chynna Morgan - June 2024
LA HUG - Video Testimonials with Chynna Morgan - June 2024
Lital Barkan
 
ikea_woodgreen_petscharity_dog-alogue_digital.pdf
ikea_woodgreen_petscharity_dog-alogue_digital.pdfikea_woodgreen_petscharity_dog-alogue_digital.pdf
ikea_woodgreen_petscharity_dog-alogue_digital.pdf
agatadrynko
 
buy old yahoo accounts buy yahoo accounts
buy old yahoo accounts buy yahoo accountsbuy old yahoo accounts buy yahoo accounts
buy old yahoo accounts buy yahoo accounts
Susan Laney
 
Best Forex Brokers Comparison in INDIA 2024
Best Forex Brokers Comparison in INDIA 2024Best Forex Brokers Comparison in INDIA 2024
Best Forex Brokers Comparison in INDIA 2024
Top Forex Brokers Review
 
Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
techboxsqauremedia
 
Business storytelling: key ingredients to a story
Business storytelling: key ingredients to a storyBusiness storytelling: key ingredients to a story
Business storytelling: key ingredients to a story
Alexandra Fulford
 
3 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 20243 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 2024
SEOSMMEARTH
 
Recruiting in the Digital Age: A Social Media Masterclass
Recruiting in the Digital Age: A Social Media MasterclassRecruiting in the Digital Age: A Social Media Masterclass
Recruiting in the Digital Age: A Social Media Masterclass
LuanWise
 

Recently uploaded (20)

Industrial Tech SW: Category Renewal and Creation
Industrial Tech SW:  Category Renewal and CreationIndustrial Tech SW:  Category Renewal and Creation
Industrial Tech SW: Category Renewal and Creation
 
Building Your Employer Brand with Social Media
Building Your Employer Brand with Social MediaBuilding Your Employer Brand with Social Media
Building Your Employer Brand with Social Media
 
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesEvent Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
 
Top mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptxTop mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptx
 
amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05amptalk_RecruitingDeck_english_2024.06.05
amptalk_RecruitingDeck_english_2024.06.05
 
2024-6-01-IMPACTSilver-Corp-Presentation.pdf
2024-6-01-IMPACTSilver-Corp-Presentation.pdf2024-6-01-IMPACTSilver-Corp-Presentation.pdf
2024-6-01-IMPACTSilver-Corp-Presentation.pdf
 
Lundin Gold Corporate Presentation - June 2024
Lundin Gold Corporate Presentation - June 2024Lundin Gold Corporate Presentation - June 2024
Lundin Gold Corporate Presentation - June 2024
 
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.
 
Authentically Social Presented by Corey Perlman
Authentically Social Presented by Corey PerlmanAuthentically Social Presented by Corey Perlman
Authentically Social Presented by Corey Perlman
 
Observation Lab PowerPoint Assignment for TEM 431
Observation Lab PowerPoint Assignment for TEM 431Observation Lab PowerPoint Assignment for TEM 431
Observation Lab PowerPoint Assignment for TEM 431
 
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
 
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfThe 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
 
LA HUG - Video Testimonials with Chynna Morgan - June 2024
LA HUG - Video Testimonials with Chynna Morgan - June 2024LA HUG - Video Testimonials with Chynna Morgan - June 2024
LA HUG - Video Testimonials with Chynna Morgan - June 2024
 
ikea_woodgreen_petscharity_dog-alogue_digital.pdf
ikea_woodgreen_petscharity_dog-alogue_digital.pdfikea_woodgreen_petscharity_dog-alogue_digital.pdf
ikea_woodgreen_petscharity_dog-alogue_digital.pdf
 
buy old yahoo accounts buy yahoo accounts
buy old yahoo accounts buy yahoo accountsbuy old yahoo accounts buy yahoo accounts
buy old yahoo accounts buy yahoo accounts
 
Best Forex Brokers Comparison in INDIA 2024
Best Forex Brokers Comparison in INDIA 2024Best Forex Brokers Comparison in INDIA 2024
Best Forex Brokers Comparison in INDIA 2024
 
Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
 
Business storytelling: key ingredients to a story
Business storytelling: key ingredients to a storyBusiness storytelling: key ingredients to a story
Business storytelling: key ingredients to a story
 
3 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 20243 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 2024
 
Recruiting in the Digital Age: A Social Media Masterclass
Recruiting in the Digital Age: A Social Media MasterclassRecruiting in the Digital Age: A Social Media Masterclass
Recruiting in the Digital Age: A Social Media Masterclass
 

Bcg growth share matrix

  • 2. BCG Growth Share Matrix The Growth share matrix was developed by BCG in 1970. The Boston Consulting Group (BGC) growth share matrix is a planning tool that uses graphical representations of a company’s products and services in an effort to help the company decide what it should keep sell or invest more in. The BCG growth share matrix plots a company’s offerings in a four square matrix, with the y-axis representing rate of market growth and the x-axis representing market share. Howto use the BCG Matrix? To look at each of these quadrants, here are some tips:  Dogs: The usualmarketing advice is to remove any dogs from your product portfolio as they are a drain on resources. However, some can generate ongoing revenue with little cost.  For example, in the automotive sector, when a car line ends, there is still a need for spare parts. As SAAB ceased trading and producing new cars,a whole business has emerged providing SAAB parts.  Question marks: Named this, as it’s not known if they will become a star or drop into the dog quadrant. These products often require significant investment to push them into the star quadrant. The challenge is that a lot of investment may be required to get a return. For example, Rovio, creators of the very successfulAngry Birds game has developed many other games you may not have heard of. Computer games companies often develop hundreds of games before gaining one successfulgame. It’s not always easy to spot the future star and this can result in potentially wasted funds.
  • 3.  Stars: Can be the market leader though requires ongoing investment to sustain. They generate more ROI than other product categories.  Cash cows:‘Milk these products as much as possible without killing the cow! Often mature, well established products. The company Procter & Gamble which manufactures Pampers nappies to Lynx deodorants has often been described as a ‘cash cow company’. Using the tool Although BCG analysis has lost its importance due to many limitations, it can still be a useful tool if performed by following these steps:  Step 1. Choose the unit  Step 2. Define the market  Step 3. Calculate relative market share  Step 4. Find out market growth rate  Step 5. Draw the circles on a matrix Step 1. Choose the unit. BCGmatrix can be used to analyze SBUs,separate brands,products or a firm as a unit itself. Which unit will be chosen will have an impact on the whole analysis. Therefore,it is essential to define the unit for which you’ll do the analysis. Step 2. Define the market. Defining the market is one of the most important things to do in this analysis. This is because incorrectly defined market may lead to poor classification. For example, if we would do the analysis for the Daimler’s Mercedes-Benz car brand in the passenger vehicle market it would end up as a dog (it holds less than 20% relative market share),but it would be a cash cow in the luxury car market. It is important to clearly define the market to better understand firm’s portfolio position. Step 3. Calculate relative market share. Relative market share can be calculated in terms of revenues or market share. It is calculated by dividing your own brand’s market share (revenues) by the market share (or revenues) of your largest competitor in that industry. For example, if your competitor’s market share in refrigerator’s industry was 25% and your firm’s brand market share was 10% in the same year,your relative market share would be only 0.4. Relative market share is given on x-axis. It’s top left corner is set at 1, midpoint at 0.5 and top right corner at 0 (see the example below for this). Step 4. Find out market growth rate. The industry growth rate can be found in industry reports, which are usually available online for free. It can also be calculated by looking at average revenue growth of the leading industry firms. Market growth rate is measured in percentage terms. The midpoint of the y-axis is usually set at 10% growth rate,but this can vary. Some industries grow for years but at average rate of 1
  • 4. or 2% per year. Therefore,when doing the analysis you should find out what growth rate is seen as significant (midpoint) to separate cash cows from stars and question marks from dogs. Step 5. Draw the circles on a matrix. After calculating all the measures,you should be able to plot your brands on the matrix. You should do this by drawing a circle for each brand. The size of the circle should correspond to the proportion of business revenue generated by that brand. Nestlé “Nestlé” is a Swiss-German word which means “Little Nest” Nestlé is the worlds’ number one food company. Nestle is 5th largest company of the world according to its turnover. More than 2 million 31 thousand people employed from all over the world. It is one of largest diversified food company in Pakistan with the widest product range.
  • 5. NESTLE BCG Share Matrix Star Question Mark  Mineral water  Nescafe  Ceralac o Nesquik o Magi Sauce o Nestle Nestum o Nescafe Decaf Cash Cow Dog Milkpak Baby Food Maggi Noodles  Chocolates  Juices  Nestea  Nestle dahi  Nestles market share in chocolate segment is 25% as compared to Cadbury 70%  Maggi sauce has a market share of 47% as compared to its competitor kissan with 26%  Nescafe market share in the instant coffee segment is 52% compared to Bru which has 43% of market share.  Nestle has 80% market share in baby food segment.  It is a major contributor for Nestlé’s revenues with 68% market share compared to its competitor Heinz.  Mineral water has a market share of 89% as compared to its competitor Aquafina with 22%  Milkpak has a market share of 65% as compared to its competitor Good milk with 35% and Olpers 45%.  Maggi noodles has a market share of 70% as compared to top ramen 19%  80% market share in the Rs.1300 crore instant noodles segment. Procter & Gamble The Procter & Gamble Company, also known as P&G,is an American multinational consumer goods company headquartered in downtown Cincinnati, USA. As of 2008, P&Gis the 23rd largest US company by revenue and 14th largest by profit. P&Gis credited with many business innovations including brand management, the soap opera, and "Connect & Develop" innovation. According to the Nielsen Company, in 2007 P&Gspent more on U.S. advertising than any other company. NESTLE BCG Share Matrix BCG TITLE Brand Revenues Brand’s market share Relative market share Market growth rate Star Mineral Water 2903040 32% 89% 85% Cash Cow Milkpak 65% 55% Question Mark Noodles 43% 75% Dog Chocolates/Juices 10.2% 38% 40%
  • 6. Family of Products : Personal & Beauty - Cosmetics, Oral Care,Hair Care House & Home - Laundry care,Dish Soap, Snacks & Coffee Health & Wellness - Prescription drugs, Health Care Baby & Family - Pet Care & Nutrition NESTLE BCG Share Matrix Star Question Mark  Pantene  Gillete  BraUn  Pampers o Olay Cash Cow Dog Tide H&S Vicks Oral B Ariel  Pert  Cheer  Ambi pur
  • 7.  Vicks Vaporub is market leader in this segment with a share of 50%.  Vicks action 500 has around 40% market share  Vicks brand accounts for 40% of Company turnover, i.e. Rs. 170 Cr.  H&S is market leader for more than 35 years. As a result, over 90 million people in over 45 different countries have come to depend on Head & Shoulders® to help prevent dandruff.  Pamper has a market share of 35% as compared to its competitor Huggies with 22%