Principles of Marketing

(JLB12223)
Adam Iqmal bin Rosdin (57212221043)
Ain Nur Husba binti Hafizudin (57212221025)
Starbuck’s BCG Matrix

BCG Matrix (also known as Growth share matrix) – The

Boston Consulting group’s product portfolio matrix (BCG
matrix) which was designed to help companies with their
long-term strategic planning and consider growth
opportunities by reviewing their portfolio of products and
decide where to invest, to discontinue or develop
products

There are 4 quadrants in which the matrix is divided to :

• DOGS : These are products with low growth or
market share
• CASH COWS : These are low growth market
products with high market share
• QUESTIONS MARKS : High growth market
products with low market share
• STARS : Products in high growth markets with high
market share
o Starbucks offers Tumblers, Mugs, T-shirts, etc. to its
customers, with most of them being limited edition,
seasonal, and often sell out within days.
o Due to the brand’s exclusive and premium
positioning, customers take pride in owning
Starbuck’s merchandise.
o Despite facing competition from the likes of Barista,
Cafe coffee day, Costa Coffee, etc. the company
has been able to create its own set of loyal
customers.
o Since its inception in 1971, Starbucks has been
instrumental in changing the way we consume and
interact with coffee.
o Contributing more than 25% to the company’s total
revenue, Starbuck’s food business vertical has surely
been the STAR for the company.
o Embracing the high customer demand for protein and
healthy snacks, the company launched Sous Vide
Egg Bites, which saw more than 60% jump since its
launch in January 2017 .
o Starbuck’s packaged goods business is the most
recent business vertical of the company.
o Starbucks Consumer Packaged Goods is operating
in a low growth market and currently holds a low
market share.