STRATEGIC

MANAGEMENT
EMAMI’S BCG MATRIX
SBU – SKIN
SUBMITTED TO CARE
PROF. JAYANT BOSE

Group1 SUBMITTED TO: -

PROF. JAYANT BOSE
AYUSH MANRAL (PGFB2001)

ABHISHEK ANAND (PGFB2002)

ADITI VERM A (PGFB2003)

ADITYA LAL (PGFB2004)

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 INTODUCTION
Emami Limited was founded in the year 1974 by RS Agarwal & RS Goenka with a vision of
making people healthy and beautiful, naturally. Emami Ltd. has a portfolio of over 260
products based on ayurvedic formulations. It is one of the fastest-growing personal and
healthcare businesses in India, with an enviable portfolio of household brand names such as
BoroPlus, Navratna, Fair and Handsome, Zandu Balm, Mentho Plus Balm, and Fast Relief.

The company manufactures products under various categories such as Hair Care, Skin Creams
and Lotions, Talcum Powder, and Ayurvedic healthcare products. Its current operations
comprised more than 63 countries including Europe, Africa, and the SAARC.

Emami was serving more than 40 lakh consumers by employing 2600 employees by accessing
a network of 3000 distributors with 5 overseas subsidiaries and 32 distribution centres in India.

Talking about the case, in 2006, Emami Executive Chairman, R.S.Aggrawal was examining
on lowering profit of Emami in India and thinking of expanding the business overseas but was
in dilemma for choosing a country to establish the manufacturing plant among Bangladesh,
Egypt, Russia, and UAE.

BCG MATRIX
The Boston Consulting Group (BCG) Matrix is a four-celled (two-by-two) matrix generated
by BCG in the United States. It is the most widely used method for analyzing corporate
portfolios. It offers a visual representation for a company to assess various companies in its
portfolio based on their market share and growth trends in their respective industries. It's a two-
dimensional study of SBU management (Strategic Business Units). In other words, it is a
comparison of economic opportunity and environmental assessment.

Based on their company growth rate and relative market share, companies may be listed as high
or low in this matrix.

The horizontal axis represents relative market share, while the vertical axis represents market
growth rate in the BCG matrix, which has four cells. Stars, cash cows, question marks, and
dogs are the names given to the four cells of this matrix. Each cell represents a different form
of enterprise.

• STARS- Corporate units with a significant market share in a fast-growing sector are
represented by stars. They can make money, but in order to retain their position in the
industry, celebrities must make significant investments. In most cases, net cash flow
is minimal. When the market matures, a celebrity can become a cash cow. Fair and
Handsome is a flagship product in India, Middle Eastern and European countries.

• CASH COWS- Company units with a significant market share in a developed, slow-
growing sector are represented by Cash Cows. Cash cows are low-cost investments that
raise cash that can be used to fund other business units. These SBUs are the company's
main cash generators, and they are specifically the core market. They are

EMAMI Page 1
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 an organization's foundation. Stability policies are normally followed by these firms.
Boro Plus contributes to 20% of the company’s market share. Boro Plus Antiseptic
Cream is the #1 in India and Russia.

• QUESTION MARKS- Question marks indicate business units with a low relative
market share in a fast-growing sector. To retain or win market share, they need a large
sum of money. They necessitate careful consideration in order to decide whether or
not the venture is feasible. New products and services with a bright commercial future
are usually marked with a question mark. If the company believes it has a large market
share, it can pursue a growth strategy; otherwise, it can pursue a retrenchment strategy.
When a company wants to reach a high-growth industry where it already has a market
share, it usually starts as a question mark. However, once a significant investment is
made, they have the opportunity to become celebrities. Creme 21 is one of the latest
acquisitions in skin care segment by Emami so as to expand their market in Russia,
SAARC, North African and Middle Eastern countries.

• DOGS- Dogs symbolize companies with poor market share in slow-growing

economies. They don't raise money and don't need a lot of it. These company units face
cost limitations as a result of their poor market share. Such a product is Emami Malai
Kesar Cold Cream which contributes to even less than 1% market share of Emami.

Relative Market Share (Cash Generation)

High Low

Creme 21
High

Fair and Handsome

Market Growth Rate

Boro Plus Antiseptic Cream Emami Malai Kesar Cold Cream

Low

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