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BCG Case Study

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105 views2 pages

BCG Case Study

Uploaded by

profshravan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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BC Matrix in action !!

Hiroshi Tanaka, the Portfolio Strategy Director at Unilever, stood before his
team in their London headquarters, examining their product portfolio
through the lens of the Boston Consulting Group Matrix. "Understanding
where each of our products sits in the BCG matrix is crucial for resource
allocation," he explained to Priya Patel, his newly appointed Strategy
Manager.

"Take Dove," Hiroshi said, pointing to their market share data. "It's
definitely our 'Star' performer. High market growth, high market share -
it's leading the personal care segment globally. We're investing heavily to
maintain its position, and it's paying off with strong cash generation."
Priya nodded, noting how Dove had evolved from a simple soap brand to a
beauty and self-esteem movement, commanding premium shelf space
worldwide.

Amara Okafor, the Brand Manager, pulled up the sales figures for their
homecare division. "Domestos bleach represents our perfect 'Cash Cow,'"
she explained. "The cleaning products market isn't growing rapidly
anymore, but we maintain dominant market share. It requires minimal
investment yet generates significant cash flow that we can redirect to our
Stars and Question Marks."

"Speaking of Question Marks," Kenji Yamamoto from Innovation


interjected, "our new sustainable living brand, Love Beauty and Planet,
shows promising growth potential. The eco-friendly personal care market
is booming, but we're still building market share. It needs substantial
investment, but could become tomorrow's Star if we play our cards right."

Zainab Mensah from Market Research brought attention to their 'Dogs'


category. "Remember Brylcreem? Once a grooming essential, now it's
struggling with low market share in a stagnant market. We need to decide
whether to divest or attempt to reposition it."

"That's the power of the BCG Matrix," Hiroshi emphasized. "It helps us
make these tough decisions. We're using Cash Cow revenues from brands
like Domestos and Comfort fabric conditioner to fund our Question Marks
like our new plant-based food brands, while maintaining investment in
Stars like Dove and Ben & Jerry's."

Amara highlighted their strategy for managing Stars: "With Ben & Jerry's,
we're investing heavily in new flavors and sustainability initiatives to
maintain its high market share in the premium ice cream segment. The
goal is to keep it from sliding into the Cash Cow category too quickly."
"Meanwhile," Priya added, "we're carefully monitoring our Question Marks
like our Prestige beauty brands. The premium beauty market is growing
rapidly, but we're competing against established luxury brands. We need
to decide which Question Marks deserve continued investment and which
might need to be divested."

Rajesh Kumar, their Finance Director, joined the conversation: "The real
challenge is maintaining the right balance. We can't have too many
Question Marks draining our resources, nor can we rely solely on Cash
Cows that might eventually decline. Our portfolio needs to be dynamic."

Kenji shared some success stories: "Remember how we successfully


transformed Lipton Ice Tea from a Question Mark to a Star in several Asian
markets? It took significant investment, but now it's generating strong
returns."

As the meeting concluded, Hiroshi emphasized the importance of


continuous portfolio assessment. "Markets change, consumer preferences
evolve, and products move between quadrants. Our job is to maintain a
healthy balance, knowing when to invest, harvest, or divest."

Chinua Adeleke, their Global Markets Head, added final thoughts on


emerging market strategy: "We're seeing particularly interesting
movements in African and Asian markets, where local preferences are
reshaping how our global brands perform in the BCG matrix."

The team left with a clear understanding of their portfolio strategy:


nurture Stars like Dove and Ben & Jerry's, milk Cash Cows like Domestos
efficiently, carefully select which Question Marks like Love Beauty and
Planet to back, and make tough decisions about Dogs like Brylcreem.

"In the FMCG world," Hiroshi remarked as they wrapped up, "success isn't
just about individual brand performance. It's about managing your
portfolio like a well-balanced investment fund. Today's Stars help fund
tomorrow's opportunities, while Cash Cows provide the stability we need
for long-term growth." Priya and Amara nodded in agreement, already
planning their next portfolio review meeting.

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