This document summarizes a presentation about the BCG matrix, a tool for portfolio analysis and business strategy. It describes the components of the BCG matrix, including cash cows, stars, question marks, and dogs. It also discusses how to measure relative market share and market growth rate to analyze products on the matrix. Finally, it provides examples of products mapped to the BCG matrix and strategies for different portfolio positions, such as building question marks into stars or harvesting cash from dogs.

1. BCG Matrix :
Presentation by-
• Abhinav Doye (02)
• Nidhi Moily (34)
• Pranav Kumar Singh (39)
• Sai Ajit Deshpande (46)
• Suvesh Raj Srivastava (57)

2. Introduction
• Given by Bruce Henderson of
the Boston Consulting Group in
1968
• Corporate strategy
management tool
• Product portfolio framework
• For large product assortment
• To decide where to cut, where
to invest
• Based on profitability and
future potential

3. Components of BCG Matrix
CASH COW
• High cash and profit generation
• Provides financial basis for the
company (often former Stars)
• Low customer acquisition cost
• Can be milked to provide cash for riskier &
struggling business
• Maturity phase of PLC
STAR
• High generation and usage of cash
• Best Investment opportunity
• Growth phase of PLC

4. Components of BCG Matrix
QUESTION MARK/ PROBLEM CHILD
• Low market share, needs investment
• Push & move to Star quadrant​
• Good commercial potential
• Usually at introduction phase of PLC
DOG
• Poor profits
• Low cash generation and usage
• Negative cash flow
• Decline phase of PLC

5. Measurement scales
Relative Market Share: Market Growth Rate:
Market Share of your brand
Market leader's market share
Industry sales current year- Industry sales previous year
Industry sales previous year
100
X
How is your brand fairing
vis-a-vis largest
competitor's brand
Analyzing the future scope
of market growth

6. Market
Share-
Growth
Analysis
Sr No Product Leader
Market
Share
Product
Market
Share
Leader
Relative
Market
share
Market
Growth
Rate
(Industry)
Industry Category
1 Pepsodent Colgate 17% 53% 0.32 30%
Dental
care
Question
Mark
2
Lipton
Green Tea
Tetley 15% 35% 0.43 14.4%
Green
Tea
Question
mark
3 Lifebuoy Lifebuoy 13.10% 13.10% 1 11.60%
Bath and
Shower
Star
4 Horlicks Horlicks 45% 45% 1 18%
Health
Drinks
Star
5 Surf Excel Ariel 17.19% 30% 0.57 4.90%
Homecar
e &
Laundry
Cash Cow
6
Brooke
Bond
Tata Tea 19% 19% 1 5.69%
Tea
Industry
Cash Cow
7 Clinic Plus
Clinic
Plus
25% 25% 1 9% Shampoo Cash Cow
8 Domex Harpic 11.70% 75% 0.16 4% Toiletries Dog
9 Liril Lifebuoy 1% 13.10% 0.08 9%
Bath and
Shower
Dog

7. BCG Matrix:

8. Linking with PLC

9. Strategies for Portfolio
Build: Lipton Green Tea, Pepsodent, Lifebuoy
• Increase market share to become star/ if a star, then cash cow
Hold: Brooke Bond, Clinic Plus, Surf Excel
• Preserve market share
Harvest: Lipton Green Tea, Domex
• Increase short term cashflow regardless long-term effect
Divest: Liril
• Sell / liquidate for resource optimization

10. Conclusion
EXIT
ENTRY

11. THANK YOU