BCG Matrix

 

BCG Matrix

 The Boston Consulting group's product portfolio matrix is designed to help the organization make a strategy for the long term. It helps organizations to review their product performance in the market. It helps them to decide where to invest or not, which product should discontinue production. It is also known as the growth or share Matrix.

Following is the MCG metrics

 

Four components of the matrix-

We classified the following products of coca-cola into BCG matrix.

ThumsUp, Maaza, Kinley, Fanta, Sprite, Limka, Coca-cola, Diet Coke, Minute Maid Pulpy

 

1. Star – Products in this category have a high market share and high sales growth. The products in this category generate more ROI than the products from other categories. They are leaders of the company.

For as – ThumsUp, Maaza, Kinley

 

2. Question mark – Product in this category have the ability to come in the star category, they are mostly in the initial stage. They require high investment to grow but currently, they generate low ROI. Products in this type of category can also have a chance to come into the dog category where the company loses its faith and decreases its investment in the product.

 For example- Fanta and Sprite

 

3. Cash cow – Products in this category requires less investment but generates more cash. They act as the foundation of the company (low investment high growth)

 For example- Limka and Coca-cola

 

4. Dog – When a product has a low market share. The company also don’t see a future in this product. They decrease investment. Companies also decide to stop the production of these products. Products that come in this category are the cash trap of the company.

 For example - Diet Coke and Minute Maid Pulpy