BCG Matrix of Fanta, a Coca-Cola product

BCG Matrix helps business to analyze growth opportunities by reviewing the

market growth and market share of products and further help in deciding
where to invest, to discontinue or develop products. BCG Model puts each of a
firm’s businesses into one of four categories. The categories were all given
remarkable names- Cash Cows, Stars, Dogs, and Question Marks.

Let’s understand BCG Matrix in detail with examples:

Question Marks (High Growth, Low Market Share)

Fanta, a Coca-Cola product, is one such example where the business units can be seen as a question
mark. As the brand has not been able to gain much popularity like Coke. Therefore, the brand is
losing its popularity. However, in some areas, it has been able to obtain a generous sales volume.

Cash Cows (Low Growth, High Market Share)

Coca-Cola is one such example of Cash Cows. This product is sold in 200 countries in a mature
beverage industry. The bottling partners in different regions help in making the finished beverages
available to the market. This is how the organization is earning a significant amount of revenues
from its finished products. In a mature industry, it is advisable for a company to keep the sales
volume high as the business unit is comparatively a good source to generate revenue.
Stars (High Growth, High Market Share)

The bottled water Kinley, a Coca-Cola product, is one such example of Stars. This example is suitable
here because the mineral water industry is still viewed as a gradually growing segment on an
international scale. The rising population would require more bottled water to fulfil the needs of the
people. Due to the rising need for bottled water, the growth opportunities for this business product
in the industry has increased.

Dogs (Low Growth, Low Market Share)

Diet coke, a Coca-Cola product, is on such example of Dogs. It was launched with the motive to offer
consumers relatively healthier beverage option in terms of calories consumed. However, the brand
has not been able to fetch consumers’ interest, which led to declined sales of this business unit.

Conclusion

The BCG model helps in strategic planning, but like any other marketing model, it works in some
situation and in others. It helps companies to assess which products need to be promoted to
generate revenue and which one needs to be discontinued. In short, BCG Model gives a true picture
of how marketing efforts will affect business’s overall cash flow.