It is available in almost every country and has a history of more than 100 years. The market is at a mature stage for these products, nevertheless, these products continue to generate cash for the organization. These products have not thrived into the market to such as extent that they can be recognized as stars. Documents Similar To Coca Cola Bcg Matrix. First, you'll need data on the market share and growth rate of your products or services. Cash cows are those business products which are a significant source of income for a business entity and generate enough sales to obtain a significant market share in the local or global industry. Products in high growth markets with a low market share. A larger segment of the operations is based on finished products (including sparkling and still beverages) manufactured by the company, constituting 63% of the operations in 2015 (The Coca-Cola Company, 2015). The stars are said to, “Generate large amounts of cash because of their strong relative market share, but also consume large amounts of cash because of their high growth rate,” according to The Boston Consulting Group Matrix (BCG Matrix) can be used to analyze the different products being sold by the company in terms of their market share, sales generated on an annual basis and the potential for growth. Learn more about the 4ps of Marketing Mix, Your email address will not be published. … Products or business units of the company that are still in the nascent stage of their product lifecycle and can either become a revenue generator by taking the position of a Star or can become a loss-making machine for the company in the future. These products/brands are still in the initial/development phase of the product lifecycle and have a huge potential to grow. Having a presence in 200+ countries, coke has been the no.1 choice for millions of consumers all these years when it comes to choosing a carbonated soft drink. Form 10-K. The Boston Consulting Group BCG Matrix is a simple corporate planning tool, to assess a company’s position in terms of its product range.. If you've taken business class or familiar with management consulting strategies, you've probably come across this tool called a BCG Matrix. The rising number of people increases the need to produce more bottled water to fulfil the needs of the expanding population. ← BCG Matrix of Pepsi | BCG Matrix analysis of Pepsi, Marketing Mix of Red Bull | 4Ps of Marketing Mix of Red Bull →, These business units or products require high capital investment, They can either become Stars and then Cashcows or and turn in Dogs as well, These are the businesses or products which are in the declining stage. Mohammad Sajjad Hossain. BCG Matrix also is known as the growth-share matrix is used by organizations to classify their business units or products into 4 different categories: Dogs, Stars, Cash Cows and Question Mark. The BCG Matrix for Coca-Cola is as follows: Cash cows are those business products which are a significant source of income for a business entity and generate enough sales to obtain a significant market share in the local or global industry. These are low growth or low market share products and have very few chances of showing any growth. 2349. The Cola market, as a specific part of the beverage industry has matured over the years, becoming concentrated by various companies selling their own brand of cola. Coca-Cola Boosted by Sales of Tea, Bottled Water. There are products that formulate a part of the industry that is still in the phase of development and the organization is trying to create a significant position in the industry. The best way to understand BCG Matrix is to look at some examples of BCG Matrix and start drawing your own. A star in Coca Cola Company is its BCG matrix was a framework originally devised by Boston Consulting Group to strategically measure the potential growth rate of a company within its industry versus its relative market share. 6. The candy seems have a loyal customer base. As indicated by Kell (2015) the brand has received relatively favourable response in the past, however recent data shows that the brand is losing its popularity. Both of these business units are stars for the Coca-Cola Company as the rising need of bottled water opens up growth opportunities in the industry (Estrel, 2015). Over the years, Pepsi has faced stiff competition from Coca-Cola and has also seen its market share take a hit. The products or business units that have a high market share in high growth industry are the stars of the organization. Example: Coca Cola and Pepsi. [online] October 12 Available at: [Accessed 12 September 2016]. The market is still in the phase of development, therefore, the stars have the likelihood of further adding to the existing market share and create a steady source of revenue for a business entity. Therefore, The Boston Consulting Group designed product portfolio matrix (BCG matrix) or growth-share matrix to help business with long-term strategic planning. These are the products which are in high growth markets with a high market share. Coca-Cola is a multinational company that has been operating for over a century. Owing to the growing demand for low calorie and healthy drinks, the bottle watered industry is currently under an evolution phase. Let’s check out the BCG Matrix of Coca Cola and what products of the company fall under what Quadrant. This is a simple example of a BCG Matrix application for google. The corporation's primary roles are to manufacture, retail, and the marketing of beverage syrups and concentrates. The products that are viewed as stars are defined by the key feature of having a high market share as compared to the other products which have a lower share in the market. Coca Cola is market leader, as a result of which the relative market share of Pepsi is always smaller than 1. The company is investing a lot of capital to create awareness about these brands. They operate in a high growth industry and have a high market share and for this reason, they require high cash investment to maintain its market share. Ife and Efe Matrix Sm. It was established in 1886. Here are a few examples to help you understand the quadrants of the concept even better. But because of this Coca cola is … Introduction Coca Cola is the most famous company that makes soft drinks, not only that but other products also, in this work we’re going to see a history of the company, the BCG Matrix and the SWOT of coca cola, which we’re going to talk about the major strengths and weaknesses and threats and opportunity which set and make coca cola stand out and step ahead to be the market leader. The products in this segment can either grow and become stars or cash cows for the company or can turn into a bad investment. It is a growth share 2×2 matrix. Worlds leading ready-to-drink beverage company, Coca Cola company has more than 500 soft drink brands, from Fuse Tea to Oasis to Lilt to Poweradeorlds, but none of them is anywhere close to coke brand in awareness, revenue, and profit. It classifies business portfolio into four categories based on industry attractiveness (growth rate of that industry) and competitive position (relative market share). Diet Coke. Let’s check out the BCG Matrix of Coca Cola and what products of the company fall under what Quadrant. What is Marketing Mix of Apple and how it’s helping in creating worlds most valuable brand? In case of Coca-Cola life, the brand has not been able to gain expected level of market share. Henderson first came up with the concept of an experience curve, which differs widely from the learning curve, a concept formulated many years BCG Matrix of The Coca Cola Company. Ferdos Chowdhuri. It consists of a 2×2 matrix with four categories apparently named by a 3-year-old: The Coca-Cola Company. In 2007, Coca-Cola spent $4.1 billion to acquire Glaceau, including its health drink brand Vitaminwater. The Boston Consulting Group (BCG) Matrix is used in analyzing the various products being sold by manufacturers. That’s not it, these also come in different flavors giving the customers a wide range of options to choose from. With a year-on-year decline in sales of carbonated soft drinks like Coca-Cola, the brand anticipates the drinks market may be heading less-sugary future – so has jumped on board the growing health drink sector. Coca-Cola life is a brand that has been launched with the aim of targeting the market that is seeking low calorie soda. Arnett, G., 2015. BCG Matrix - Boston consulting group group analysis of companies SBU, product lines, products and services. The BCG Growth-Share Matrix The BCG Growth-Share Matrix is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970's. Cash Cow examples: iPods of Apple, Coca-Cola Classic of Coca-Cola, Procter and Gamble which . It supplies its products to hundreds of countries worldwide. (adsbygoogle = window.adsbygoogle || []).push({}); Designed by Elegant Themes | Powered by WordPress,,,,,, Dogs are those products that were perceived to have the potential to grow but however failed to create magic due to the slow market growth. It is your reliability asset. Even though in some regions minute maid has been able to obtain a generous sales volume of $ 1 billion, the brand has not been able to gain widespread popularity as the coke (Arnett, 2015). It has been further stated that the decision to launch the low calorie version of coke didn’t take the market needs into consideration, which has resulted in the brand becoming an initiative with low market share. These products have the potential of being positioned as cash cows in the future owing to the industry growth prospects. These business units or products are cash traps and therefore are not seen as a useful source of earning. Save my name, email, and website in this browser for the next time I comment. Spork Life: Dysfunction at the heart of Coca-Cola. Then, prepare a SWOT Matrix for the Coca-Cola Company. Coke –  Declining demand for carbonated soft drinks due to increasing demand for low calorie and healthy beverages and snacks is what is attributing the diminishing sales of Coke brand. Stars: Honey Nut Cheerios, the leading product in the category of breakfast cereal in the USA is a great example of a star product from General Mills. They are cash traps – Getting a return on investment from these businesses or products is next to impossible. The Boston Consulting Group (BCG) Matrix is a portfolio management tool created in 1970 by Bruce Henderson. STARS HIGH GROWTH RATE, HIGH MARKET SHARE CASH COWS LOW GROWTH,HIGH MARKET SHARE QUESTION MARKS HIGH GROWTH,LOW MARKET SHARE DOGS LOW GROWTH,LOW MARKET SHARE. Uploaded by. Highest brand equity – Coca-Cola is undoubtedly one of the most renowned brands with the highest brand equity. The products that are categorized as questions marks seem to have a dubious outlook for the future development. These products are the money churners for the company and require very low investments to sustain their leadership and profitability in the market. Every business needs strategic planning to rule in the industry. Coca-Cola Strengths – Internal Strategic Factors. Fortune, [online] October 23 Available at: [Accessed 12 September 2016]. by adamkasi | Oct 8, 2016 | BCG Matrix Analysis. Ξ In the case of Pepsico, Pepsi falls in the Star quadrant of the BCG Matrix of Pepsi. Kell, J., 2015. Available at: [Accessed 12 September 2016]. BCG matrix is a framework created by Boston Consulting Group to evaluate the strategic position of the business brand portfolio and its potential. Boston matrix (BCG matrix) At the end of the 1960s, Bruce Henderson, founder of the Boston Consulting Group, BCG, developed his portfolio matrix. The next part of the BCG matrix for Coca Cola deals with Stars. Md. If your market is extremely fragmented, however, you can use absolute market share instead, according to the Strategic Thinker blog.Next, you can either draw a matrix or find a BCG chart program online. The BCG model, when put into the BCG matrix template, can be varied in nature. The Boston Consulting Group (BCG) is a renowned organization. Apart from minute maid, the sales volume of Diet coke doesn’t present favourable prospects for the future. The company has to spend millions of dollars on brand awareness and promotional activities in order to maintain its market share. To demonstrate usefulness of Ansoff matrix, we have applied it to Coca-Cola. So, according to the BCG matrix, this candy is your ‘Cash Cow ’- the steady cash flow commodity. Bcg Matrix Of Coca Cola. The Coca-Cola Company is the manufacturer of a variety of non-alcoholic beverages. To cater to different customer segments and their needs, coke is looking out at launching different variants of bottled water EG: Apart from just simple bottled water, Coke also offers Kinley and Dasani sparkling water  (just to cater to affluent customers). They are the star products or businesses of the company. The purpose of the BCG Matrix (or growth-share matrix) is to enable companies to ensure long-term revenues by balancing products requiring investment with products that should be managed for remaining profits.. Strong brand identity – Coca-Cola is a highly popular brand with a unique brand identity.Its soft drinks are the most-selling drinks in history. Copyright © 2018 Heart of Codes — Escapade WordPress theme by. Coke Begins to Win Back Investors. To help you make your decision, you can use the classic Boston Consulting Group Matrix, which MBA students have used for decades. The effect on the business world was dramatic. Coca-Cola as a beverage has been operating as a cash cow for the Coca-Cola Company, as the brand is sold across 200 countries in a mature beverage industry. The soda industry has matured over the years, limiting the growth prospects for new products.