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BCG Matrix of Coc Cola India
BCG Matrix of Coc Cola India
BCG Matrix of Coc Cola India
OF
STRATEGIC MANAGEMENT
ON
“BCG MATRIX OF COCO-COLA”
VISSION STATEMENT
VALES
LIMITATIONS
BCG-MATRIX COMPONENTS
X. CONCLUSION
COCO-COLA , INDIA
Coca-cola Company, nourishing the global community with the world’s largest
selling soft drink since 1886, returned to India in 1993 after a gap of 16
years.HCCB serves in India some of the most recalled brands across the world
including names such as coca-cola, sprite, fanta, thums up, limca, maaza and
kinley (packaged drinking water), minute maid pulpy orange.
Coca Cola was the first in the country to launch cans, plastic cap leak proof bottles
and full length delivery crates.
MISSION STATEMENT
“TO HAVE A STRONG DOMINANT AND PROFITABLE BUSINESS IN INDIA”.
SHARED VALUES
We communicate openly
We have integrity
VISION
“TO CREATE VALUE FOR OUR SHARE HOLDERS.”
Maximizing Profits
VALUES
Respect And Trust As The Framework Of All Our Relationships
Motivating employees
New employees are placed with old ones to learn work and the values
prevalent in the company
Product: Anything that can be offered to a market for attention, acquisition, use or
consumption that might satisfy a want or need.
Actual product:
Quality: Quality differs with respect to country for example. Coca-Cola Can
quality that is available in Middle East is certainly different as compared to Coke
Can available in India.
Product Classifications:
Brand
Existing New
BRANDING:
a) Brand Equity:
As far as coke is concerned brand equity for the customers is very high. People are
highly brand loyal.
b) Brand Strategy:
Line Extension:
Brand Extension:
Brand extension means using a successful brand name lets say Coca-Cola and then
launching new product for example cherry coke. This was an example of brand
extension.
Multi-Branding:
It means introducing additional brands in the same category. For example Coca-
Cola not only introduced coke as a brand but also sprite and Fanta.
Diversification:
It means introducing new product with the new brand name. It means
diversification but this is something Coca-Cola has not adopted for as yet.
It means the number of products that company is offering. For example Coke, Diet
Coke, Fanta , Sprite.
PRODUCT LINE OF COCO-COLA IN INDIA
PRODUCT THAT SELL MORE IN MARKET ACCORDING TO
DISTRIBUTORS
9
8
7 8
6
SELL IN MARKET
5 6
4 5
3
2 3
1 2
1
0
T H U M S - S P R IT E C O K E M A A ZA F A N T A L I M C A
UP
PRODUCTS
Strength Weakness
• Strong leading brands with • Financial market volatility
high level impacting pension assets and in
of consumer acceptance – this turn the liquidity position of the
allow the company to extend company.
it product to attract new • Big slow decision making can
customers. give competitive advantage to
• Large scale of operations – the competitor such as PepsiCo
Coca-Cola product already sold by being the first to introduce a
in 200 countries. In addition it product for example.
recorded revenue of $31million
making the largest
manufacturer in the industry.
• Leading market position – the
brand large market about 5%
ahead of its main competitor
PepsiCo.
MARKET SHARE
Is the percentage of the total market that is being serviced by your company,
measured either in revenue terms or unit volume terms? The higher your
market share, the higher proportion of the market you control.
STARS
QUESTION MARKS
CASH COWS
DOGS
It is based on the combination of market growth and market share relative to the
next best competitor.
BENEFITS OF BCG-MATRIX
LIMITATIONS
BCG MATRIX uses only two dimensions, Relative market share and market
growth rate.
High market share does not mean profits all the time.
$ CASH COW:-
The low-growth business with a relatively high point market shares. These
businesses were stars but now have lost their attractiveness.
Ɂ QUESTION MARK:-
Businesses with low point share but which may have a high growth rate. This
suggests that they have potential but may require huge ever, a competing force
extraordinary effort in order to grow point share.
DOGS:-
Businesses that have low relative share and low expected growth rate. Dogs may
generate enough points to sustain but they are rarely, if ever, a competing force.
BCG- MATRIX
STARS
HIGH GROWTH, HIGH MARKET SHARE
They also require heavy investment, to maintain its large market share.
Attempts should be made to hold the market share otherwise the star will
become a cash cow.
$ CASH COWS
$ They are foundation of the company and often the stars of yesterday.
DOGS
LOW GROWTH, LOW MARKET SHARE
Ɂ QUESTIONMARKS
HIGH GROWTH , LOW MARKET SHARE
Ɂ They will absorb great amounts of cash if the market share remains
unchanged, (low)
Ɂ Question marks have potential to become star and eventually cash cow but
can also become a dog.
BCG-MATRIX
BCG-MATRIX FOR THE PRODUCT LINE OF COCO-COLA
STARS
HIGH GROWTH, HIGH MARKET SHARE
$ CASH COWS
DOGS
LOW GROWTH, LOW MARKET SHARE
Ɂ QUESTIONMARKS
HIGH GROWTH , LOW MARKET SHARE
BCG PRODUCT LIFE CYCLE
FANTA & SPRITE are at the introduction stage , as both are much new in the
market as compared to thums up and limca.
GROWTH STAGE:_
THUMS UP, KINLEY & MAZZA are at the growth stage having high growth
and low market share.
$ MATURITY STAGE:
LIMCA, COCO-COLA are at the maturity stage having low growth but high
market share.
DECLINE STAGE:-
DIET COKE, MINUTE MADE PULPY ORANGE & KINLEY SODA are at
decline stage, proving to be non profitable product for coco-cola having low
growth and low market share.
REVIEW OF LITERATURE
R.Sharma
The BCG Matrix is useful for a company to achieve balance between the four
categories of products a company produces. As a particular industry matures and
its growth slows, all business units become either cash cows or dogs. The overall
goal of this ranking is to help corporate analysts decide which of their business
units to fund, and how much; and which units to sell. Managers are supposed to
gain perspective from this analysis that allowed them to plan with confidence to
use money generated by the cash cows to fund the stars and, possibly , the question
marks .
CONCLUSION
Dog Strategy: Either invest to earn market share or consider disinvesting. For
the products like diet coke ,pulpy orange and kinlely soda it better to stop
manufacturing these products and to should try to come up with some new
innovative and better beverages.
Star Strategy: Invest profits for future growth and for earning more of market
share and profits , thums up and mazza will be a lot profitable for Coco-Cola
India
Question Mark Strategy: Either invest heavily in order to push the products to
star status, or divest in order to avoid it becoming a Dog.
Cash Cow Strategy: Use profits to finance new products and growth elsewhere.
LIFE CYCLE:
To be able to market its product properly, a firm must be aware of the product
life cycle of its product. The standard product life cycle tends to have five
phases: Development, Introduction, Growth, Maturity and Decline. Coca-Cola
is currently in the maturity stage, which is evidenced primarily by the fact that
they have a large, loyal group of stable customers.
In foreign markets the product life cycle is in more of a growth trend Coke's
advantage in this area is mainly due to its establishment strong branding and it
is now able to use this area of stable profitability to subsidize the domestic
"Cola Wars".