C.C.

S NATIONAL INSTITUTE OF
AGRICULTURAL MARKETING, JAIPUR
TOPIC: BCG
MATRIX
Presented By: Group 5
1. Deepika
2. Kuntal Dash
3. Rahul Prasad
4. Prerona Baruah
5. Pradeep
6. Abhishek Raj
 BCG MATRIX: BOSTON CONSULTING GROUP MATRIX
Bruce Henderson –
1968.
Product or Services
Portfolio Matrix.
To evaluate strategic
position – Firm’s Brand
Portfolio.
The BCG growth-share
matrix contains four
distinct categories:
"dogs," "cash cows,"
"stars," and “question
marks.”
The growth-share matrix aids
the company in deciding which
products or units to either keep,
sell, or invest more in.
The BCG growth-share matrix is
a tool used internally by
management to assess the current
state of value of a firm's units or
product lines.
BCG matrix combines a
measure of market
attractiveness against overall
competitive strengths in order
to identify the quadrant of the
model with the firm or
business unit is situated.
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 BCG MATRIX
Relative market share =
firm’s market share/largest
competitor’s market share

Market growth rate = Total

market unit sales in current year
- Total market unit sales in
previous year /Total market unit
sales in previous year

It measures market attractiveness against

overall competitive strengths in order to
identify the quadrant of the model with
the firm or business unit is situated.

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 STARS

High Market Share / High Market When market matures, product re-
Growth: mains successful then stars will mi-
Use large amounts of cash; grate to become cash cows

They are the leaders in business so

they should produce large amounts
of cash as well.

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 CASH COWS
High Market Share / Low Market
Growth
These units typically generate cash in
excess of the amount of cash needed to
maintain the business.

A
They are regarded as staid and bor-
ing, in a "mature" market, but gen- B D Such investments would be wasted
in an industry with low growth.

C
erate high cash.

They are to be "milked" continu-

ously with as little investment as
possible.

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 QUESTION MARK

These opportunities
need serious thought
Question Marks as to whether increased
might become investment is war-
Stars and eventual ranted.
Cash Cows.
They are not generating Cash generation is
much revenue right now, low.
Low Market Share / but they are in high
High Market Growth growth markets so the po-
tential to make money is
there.

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 DOGS

Low Market Share / Low Market It's going to take a lot of hard work to
Growth get noticed.

In these areas, your market presence is It's going to be difficult to make a profit
weak. in this area.

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 EXAMPLE
NESTLE STARS
QUESTION MARK
• Cash Cows: Nestle’s

High
Maggi Noodles, NesCafe
KitKat, Munch.
• Stars: Nestle’s Mineral

Business growth rate

Water and Nestle’s
Nescafe Coffee (like
Nescafe Latte).
• Question mark: Nestle CASH COWS DOGS
Everyday, Nestlé slim
and Nestlé Milk maid.
• Dogs: Nestle Milo and
Koko Crunch.They did
not have any significant

Low
grasp in the market.

High Market Share Low

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THANK YOU