Estrel, M., 2016. Md. A larger segment of the operations is based on finished products (including sparkling and still beverages) manufactured by the company, constituting 63% of the operations in 2015 (The Coca-Cola Company, 2015). Arnett, G., 2015. It was also awarded ‘highest brand equity award’ in 2011 by Interbrand. Dogs are those products that were perceived to have the potential to grow but however failed to create magic due to the slow market growth. Md. The market is at a mature stage for these products, nevertheless, these products continue to generate cash for the organization. The company is investing a lot of capital to create awareness about these brands. [online] October 12 Available at: http://www.news.com.au/finance/business/other-industries/spork-life-dysfunction-at-the-heart-of-cocacola/news-story/e02d21493c23b58c4ff48bb96cbb3de7 [Accessed 12 September 2016]. The article ‘What is Ansoff Growth Matrix’ offers more insights into the matrix. These products have not thrived into the market to such as extent that they can be recognized as stars. Coca-Cola Boosted by Sales of Tea, Bottled Water. BCG Matrix - Boston consulting group group analysis of companies SBU, product lines, products and services. Cash cows are those business products which are a significant source of income for a business entity and generate enough sales to obtain a significant market share in the local or global industry. Let’s check out the BCG Matrix of Coca Cola and what products of the company fall under what Quadrant. The investment strategy for these products has to be very well thought through by the management as there are chances that these businesses might not yield any profit for the organization. Even though the company faces competition from other bottled water producers, the growing market offers it significant opportunities to attain a large market share and expand it further in future. Since the industry is mature, the company needs to invest little effort to keep the sales high as the business unit has captured a large market to generate cash. Uploaded by. Your email address will not be published. 2342 2356 Introduction of Coca-Cola. Carousel Previous Carousel Next. Coke brand which is currently regarded as a cash cow for the company will eventually fall in quadrant qaudrant in the future due to all these factors. Products which are market leaders in their specific industry and their industry is not expected to see any major growth in the future are considered as Cash Cows. The effect on the business world was dramatic. Below are few products which have been the cash cow for the company for all these years: Coke: Coke for years has been a market leader in carbonated soft drink segment and a major cash generator for the company. Here is a gist of points that we covered about the 4 different quadrants of the BCG Matrix. Let’s check out the BCG Matrix of Coca Cola and what products of the company fall under what Quadrant. The small market share obtained by the organization makes the future outlook for the product uncertain, therefore investing in such domains is seen as a high-risk decision. The Boston Consulting Group BCG Matrix is a simple corporate planning tool, to assess a company’s position in terms of its product range.. To demonstrate usefulness of Ansoff matrix, we have applied it to Coca-Cola. Here are a few examples to help you understand the quadrants of the concept even better. The health conscious consumers formulate a significant part of the industry, suggesting the growth potential, but diet coke has not been able to tap this market potential to gain sustainable revenues. The soda industry has matured over the years, limiting the growth prospects for new products. Mumin Sheikh. The Guardian, [online] February 13. These are the products which are in high growth markets with a high market share. The products that are categorized as questions marks seem to have a dubious outlook for the future development. Despite the efforts to target this segment of the market, the brand has not been able to perform well as depicted through the declining sales of this business unit. The flagship product of the company is Coca-Cola and was the first product the company launched. The products in this segment can either grow and become stars or cash cows for the company or can turn into a bad investment. The Boston Consulting Group (BCG) Matrix is used in analyzing the various products being sold by manufacturers. Let’s see what are these 4 different quadrants of BCG Matrix: These are the products with low growth or market share. Boston matrix (BCG matrix) At the end of the 1960s, Bruce Henderson, founder of the Boston Consulting Group, BCG, developed his portfolio matrix. 3 reasons why Diet Coke sales will keep plunging. Coca-Cola life is a brand that has been launched with the aim of targeting the market that is seeking low calorie soda. These quadrants are made according to the market share and growth rate of products. ← BCG Matrix of Pepsi | BCG Matrix analysis of Pepsi, Marketing Mix of Red Bull | 4Ps of Marketing Mix of Red Bull →, These business units or products require high capital investment, They can either become Stars and then Cashcows or and turn in Dogs as well, These are the businesses or products which are in the declining stage. Save my name, email, and website in this browser for the next time I comment. This concludes the BCG Matrix of Coca Cola. Estrel, M., 2015. These are the products which are in low growth markets with high market share. In case of Coca-Cola life, the brand has not been able to gain expected level of market share. The candy seems have a loyal customer base. These are low growth or low market share products and have very few chances of showing any growth. When examining market growth, you need to objectively compare yourself to your largest competitor and think in terms of growth over the next three years. Coca-Cola Company is the worlds largest selling soft drink. Ife and Efe Matrix Sm. The market is at a mature stage for these products, nevertheless, these products continue to generate cash for the organization. The reason for this classification is that the mineral water industry is still viewed as a gradually evolving segment on an international scale. The products that are included in the category of dogs are a part of mature industry, thus the chances of further growth are limited. With an aim to cater to the changing needs of consumers to zero calories and no sugar drinks, Coca-cola company has launched a number of products/brands to cater the same. Available at: [Accessed 12 September 2016]. It classifies business portfolio into four categories based on industry attractiveness (growth rate of that industry) and competitive position (relative market share). A slowdown in sales has been a temporary setback for the organization, however adjusting the business strategy has helped the management to regain its firm hold in the industry (Estrel, 2016). In Europe and Asian regions, Kinley is being sold while Dasani bottled water is targeting the US and UK market. Since the product is not expected to bring in any significant capital, future investment is seen as a wastage of company resources, which could be invested in a Question mark or Star category instead. It is your reliability asset. Required fields are marked *. But because of this Coca cola is … Nevertheless, an important consideration for the management is to ensure that the bottled water brands remain a source of significant sales as decline in sales can reduce the revenues. It consists of a 2×2 matrix with four categories apparently named by a 3-year-old: Coke Begins to Win Back Investors.