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BCG Matrix Analysis of Unilever Products: Report On
BCG Matrix Analysis of Unilever Products: Report On
Submitted to:
Barota Chakraborty
Lecturer
Department of Marketing
Jahangirnagar University
Submitted by:
RUNNERS
Department of Marketing
Jahangirnagar University
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1
We Are..
The Group of Runners
Serial No.
Name
ID
1.
658
2.
Ashik Abdullah
678
3.
S. Mohammadur Rahman
681
4.
642
5.
644
6.
663
Letter of Transmittal
16th August, 2011
Barota Chakraborty
Lecturer
Department of Marketing
Jahangirnagar University
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Acknowledgement
At the very beginning, we would like to convey our sincere appreciation to the
almighty god for giving us the strength, ability and confidence the tasked within the
planned time.
We are indebted to our course instructor Barota Chakraborty, lecturer, Department
of Marketing, Jahangirnagar University for her meticulous support and direction.
Her suggestions and encouragement helped us in preparing this report.
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Our fellow classmates supported us in every possible way. We would like to thank
them for all their support.
Table of contents
Serial
No.
Title
Executive Summary
1.0
Page No.
6
7-9
Introduction
Page
4
10
2.0
Limitations
3.0
Report Body(Discussion)
4.0
Conclusion
13
5.0
Reference
14
11-12
Executive Summary
1. Pure it
2. Lux
3. Colgate Toothpaste
4. Wheel washing bar soap
We try to put these products on BCG Matrix based on their market
growth rate and relative market share. As we know to put a product on
BCG matrix, we have to know the products market growth rate and
relative market share. We have tried our best to analysis these products
based on BCG Matrix.
INTRODUCTION
BCG Matrix has been introduced by Boston consulting group. It is a tool for analyzing market
business portfolio based on market growth rate and relative market share. In this method SBU
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(strategic business units) are categorized into four several sections as: question marks, stars,
cash cow, dog. It is based on product life cycle.
The BCG Matrix method can help understand a frequently made strategy
mistake: having a one-size-fits-all-approach to strategy, such as a generic growth
target (9 percent per year) or a generic return on capital of say 9.5% for an entire
corporation.
In such a scenario:
A. Cash Cows Business Units will beat their profit target easily; their management
has an easy job and is often praised anyhow. Even worse, they are often allowed to
reinvest substantial cash amounts in their businesses which are mature and not
growing anymore.
B. Dogs Business Units fight an impossible battle and, even worse, investments are
made now and then in hopeless attempts to 'turn the business around'.
C. As a result (all) Question Marks and Stars Business Units get mediocre size
investment funds. In this way they are unable to ever become cash cows. These
inadequate invested sums of money are a waste of money. Either these SBUs
should receive enough investment funds to enable them to achieve a real market
dominance and become a cash cow (or star), or otherwise companies are advised to
disinvest and try to get whatever possible cash out of the question marks that were
not selected.
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To prepare our assignment we have chosen Unilever Ltd. because it is one of the
global fast moving consumer goods companies. Among the Unilever products we
have chosen: Pure it, Lux, Colgate Toothpaste, and Wheel washing bar soap.
Limitations
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Discussion:
Unilever currently maintain a price estimate at 37.89 dollar, roughly 23% ahead of
the companys market value.
To observe the Unilever growth share matrix we select four kinds of products, by
which we can know the market position of this company. Market growth axis,
correlates with the product life cycle and predicts the cash requirement a product
needs relative to the growth of that market.
Star:
Another product that we have chosen for analysing the BCG matrix LUX is one of
them. We thing it is under the STAR categories. LUX is the most renowned
product of Unilever and most people prefer to use it. It has been running since1916
and modified different times but its growth rate and relative market share havent
fallen so much and recently the soap industry has seen to have a market growth
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rate of about 10%. This shows that industry has a high growth rate. Unilever is a
market leader in the industry and its soap Lux enjoys a market share of 17% in
India. So according to the concept of BCG matrix any product which has high
market growth and market share is classified as STAR. The major objective of
products coming in Star is to maintain their high market share. Unilever comes up
with various variants in LUX quite frequently in order to maintain their position.
Cash Cow:
Colgate Toothpaste is another product that we have taken. We think it is under the
Cash Cow categories. Colgate is also a renowned and high selling product so its
market share is so high (up to 51%). But its growth rate is 11% which is
comparatively too low than the market share. And as the BCG matrix says which
product market share is high but is market growth rate is low the product falls into
cash cow categories.
Dog:
Our next and final product that we have taken for BCG matrix analysis is Wheel
Bar Soap. We know Wheel is a renowned brand. But the usage of this brands
products is declining day by day. And to survive from this situation Unilever has
taken a decision to remove this brand and launched a new product called Rin
detergent instead of Wheel detergent. And Unilever has mentioned Wheel under
the Dog categories in their web page. As a result the product market growth rate
and relative market share of Wheel is decreasing. Thats why we put Wheel bar
soap in the DOG categories of the BCG Matrix.
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Conclusion:
Through the whole survey and research, it is very clear that the products that we
have chosen among the Unilever products are fall into the four categories of BCG
Matrix. And we think that the four products are fit the BCG matrix correctly and
we put them according to their market growth rate and relative market share.
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Reference
hppt://www.Google.com
hppt://www.capitaline.com
hppt://www.unilever.bd
hppt://www.scribe.bd
hppt://www.valuebasedmanagement.net
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