USING I-E MATRIX TO EVALUATE AND COMPARE

Let´s suppose that we have a Portfolio of pre-filtered ideas for possible ne

What would be the top 3 new business ideas to recommend a more in de

Strategical Decision - What? Strategy - How?

Invest to Grow, Concentric Diversification Frontal Challenger, Market Penetration

Invest to Grow, Horizontal Diversification Flanking, Product Development

Invest to Grow, Horizontal Diversification Flanking, Product Development

AND COMPARE NEW BUSINESS IDEAS
red ideas for possible new BUSINESSES for GLORIA S.A. (The leading dairy Peruvian compa
ecommend a more in depth analysis for a future investment of the Company?

Strategic Diagnostic

EFI EFE
Priority Ideas for New Categories Market Size
del 1 al 4 del 1 al 4

5 2.6 3.0 Ice creams

1 3.2 2.8 Seed beverages
2 2.9 3.1 Cereals for breakfast
2.6 2.7 Infusions - Herbal Teas
2.5 2.6 Ham & Sausages
3 2.9 2.8 Package Bread
2.3 2.5 Candies
4 2.7 3.0 Sauces and creams
Chocolates
Cookies
Seasonings
RTD Alcoholic drinks
Sodas

Ideas with mora than 3.0 points: Invest to Grow

Ideas with 2.7 to 2.9 poits: Invest but as a Flanker

Ideas with 2.5 a 2.7 points are not of the best
Ideas with less than 2.5: Do not invest
Examples
GROWTH STRATEGIES APPLICATION (A REAL CASE OF ALICORP)
Products
Current New

Current Market Penetration Product Development

Markets
New Market Development Diversification

EXPORTS NEW LINES OR CATEGORIES

VISION ALICORP 98
We are going to duplicate our sales by the year 2005
Revenue in 1998 for 2005 (en 6 años)

US$ 500 milions US$ 1,000 millones

(1+tasa crecimiento anual)^6
 To multiple x 2 2.04

Average grow 12.6%

Sales 500 1,019

Growth Strategy in Application

Exsiting New

Existing 480 millions (10 lines) +100 m. 50 millions Lines Ext.

Markets
New 20 millions + 80 millions. 250 millions new lines

750 millones to complete 1,000 millions

Opening of Branches in:

Ecuador (with Adquisition)
Colombia
Argentina (with Adquisition)
Brasil (with Adquisition)

Examples

INTENSIVE MARKETING WAR: APPLICATION OF STRATEGIES TO BEAT COMPETITION WITH THE BCG MATRIX

Procter & Gamble

Portafolio in the 90s
Bleeding the Cash Cow Detergents Ariel, Ace, Magia Blanca
Dog Beauty soaps Camay, Monclear, Safeguard
Dog Tooth paste Crest
Cow Dish washers Ayudin
Dog Pulisher of pots Sapolio
Dog Toilet papers
 Question mark Pringles Potatoe Chips

New Lines in the 90s

Financial Shampoo H&S, Pantene ProV, PertPlus
support Mouth wash Oral B (Adquisition), Scope
Invest to Grow
from CASH Diapers Pampers
COWS Sanitary pads Always
Shaving Gillete (Adquisition)
y Peruvian company)

Information needed to take a decision

% Annual Growth % Gross Margin Estimated Sales % Market Share Obtenible

Alicorp Current Categories in 1998: URGENT need to do DIVERSIFICATION

Categorias Marcas BCG
Cooking oil Primor, Capri, Cocin Cash Cow
Margarines Sello de Oro, Primav Question mark
Fats and Shortenings Faro, Nieve Cash Cow
Laundry Soaps Bolivar, Jumbo Cash Cow
Don
Vittorio,Nicolini,
Pasta Lavaggi, Alianza Cash Cow
1.265 Industrial Flour (wheat) Santa Rosa, Nicolini Cash Cow
 Blanca Flor,
Current %Grow Domestic Flour Favorita, Nicolini Cash Cow

4.0% Café para pasar Cafetal Cash Cow

633 Coojies Victoria, Royal, Feni Star
Package Rice Paisana, Tropical Question mark
Pet food for industries Nicovita Cash Cow
Canned tuna Bayovar (Outsource Question mark
Beauty Soaps Nivea (Licensed) Question mark

650 millions
Total Sales:

THE 1998s VISION COULD FINALLY BE ACHIEVE IN THE YEAR 2009

Launched in Year New Categories Brands
2000 Sauces AlaCena
2003 Petfood Mimaskot Nutrican
2004 Gelatines in powder Yaps
2004 Ice creams Lamborgini (Adquisition)
2006 Instants desserts in powder Negrita (Adquisition)
2006 Instants refreshments powder Negrita, Kanu, Kiriba (Adquisition)
2006 Corn & Potatoe Starch Negrita (Negrita)
2006 Smash dehydrated potatoe Menu (Adquisición)
2006 Herbal Teas in bags Zurit
2007 Detergents Bolivar Opal y Marsella (Adquisition)
2009 Omega 3
2009 Shampoos Anua
2009 Bottled Chicha Morada Negrita
2012 Prefried potatoes Cocinero
2012 Candies Sayon (Adquisition)
2012 Panettone Sayon (Adquisition) Blanca Flor
2012 Chocolate to drink Sayon -Cusco (Adquisition
2017 Canned tuna Primor

N WITH THE BCG MATRIX - SANGRANDO A LA VACA LECHERA - BLEEDING THE CASH COW

Start a Price Wars: To bleed your competitor cash cows

Unilever Opal, Omo Low Price but Good quality
Palmolive
Colgate
Very Intensive War: How to desaccelerate the expansion of the competitor??
Unilever Sedal, Clinic, Organics, Clear
Pfizer Listerines
Kimberly Huggies UNILEVER also found an ALLIED to fight against the
Kimberly Kotex Thet started to do CO-DISTRIBUTION, CROSS SALES
n
R.O.I
Competitor % Market Competitor % Market
Return of
#1 Leader Share Lider #2 Share #2
Investment
Donofrio Artika
Laive
Angel Kellog's
Mc Collins Hornimann's
San Fernando Breadt
Bimbo Pan Pyc
Arcor
AlaCena
Sublime Costa
Field Victoria
Doña Gusta
Piskano
Inca Kola

US$ millions
120
25
35
50

120
45
 12
Sold to Romero Trad. 2002
12
45
20 Sold to Costeño 2002
15
10 Sold to Austral Group 2001
4

513

US$ millions
New Sales Added
35
25 Sold to Molitalia 2013
15
50 Sold to Nestle 2012
3
3
2
1
3
250
15 Sold a Canadian Company on 2012
15 Failed
4 Failed
10
5
45
3
14
498
nd an ALLIED to fight against the expansion of Procter&Gamble
CO-DISTRIBUTION, CROSS SALES and COOPERATIVES PROMPTIONAL ACTIONS
 I-E MAtrix of New Product Ideas - Gloria S.A.
4.0
Sauces and creams

Cereals for breakfast Ice creams

3.5

3.0

Ham & Sausages

Seed beverages 2.5

2.0
Package Bread

Candies
Infusions - Herbal Teas
1.5

1.0
4 3.5 3 2.5 2 1.5 1