MME-307

BCG Matrix Analysis

of
Amul
- Group 12
Introduction – What is a BCG Matrix

The BCG (Boston Consulting Group) Matrix is a strategic management tool used to
analyze a company's product portfolio. It categorizes products into four categories
based on their market share and market growth rate:
• Stars: High market share in High growth market
• Question Marks (Problem Children): Low market share in High growth market
• Cash Cows: High market share in Low growth market
• Dogs: Low market share in Low growth market
BCG Matrix Classification Analysis for Amul products
After going through Amul’s various products, they can be classified according to the BCG
Matrix Analysis in the following way:
Stars: High share, high growth
• Amul Ghee
• Amul Ice Cream
Question Marks: Low share, high growth
• Amul Lassi (slowly improving)
• Amul Fresh Cream
Cash Cows: High share, low growth
• Amul Milk
• Amul Butter
• Amul Cheese
Dogs: Low share, low growth
• Amul Milk Powder
• Amul Cookies
Suggested actions for each class
Stars: Invest in R&D. Maintenance is tougher than growth, hence constant efforts and research need to be put in
maintaining and developing the star products
Questions: Market Expansion. Since the share is low even when high growth market is present, market expansion
through aggressive marketing, entering new markets, or developing variations that can cater to a bigger audience is a
great way to improve the products with questionable future
Cash Cows: Cost Efficiency. These products generate high cash flow, and have less growth market but higher market
share. Amul should focus on cost cutting and operational efficiency to maximize profits
Dogs: Either Divestment or Product Improvement. Either phase out underperforming products so that resources can be
used in other products, or improve the product by introducing variations, etc. and finding a market where they can gain
good market share.

Conclusion
In BCG Matrix analysis, we classify products based on market share and market growth. Here, we
have classified the products of Amul in the same way, and recommended a few actions to improve
the profitability of Amul. In addition to the BCG Matrix analysis, it's essential for Amul to adapt to
changing consumer preferences, invest in sustainability, and expand its product range into emerging
markets. The success of these strategies will depend on effective execution, market research, and
continuous monitoring and adjustment. Moreover, as the market is dynamic, the products may shift