Presentation

on
BCG Matrix
on
Coca-Cola

Names of Group Members

Md. Abdullah Al Mamun

2349

Mohammad Sajjad Hossain

1422

Md. Mushtar Hossain

Md. Mumin Sheikh

Md. Ferdos Chowdhuri

2342
2356

Introduction of Coca-Cola

Coca-Cola Company is the worlds largest selling soft drink.

It was established in 1886

It spreads its business in India in 1993.

Coca-Cola serves in India some of the most recalled brands across the
world including names such as Coca-Cola, sprite, Fanta, Thums Up,
Limca, Maaza and Kinley (packaged drinking water).

Operational Reach: 200+ countries.

Consumer Servings (per day): 1.5 billion.

THE BCG MATRIX INTRODUCTION

According to BCG Matrix businesses or products are classified as low
orhigh performers depending upon their market growth rate and relative
market share.
MARKET SHARE
Is the percentage of the total market that is being serviced by your
company measured either in revenue terms or unit volume terms? The
higher yourmarket share, the higher proportion of the market you control.

Figure 01: BCG Matrix

THE BCG MATRIX INTRODUCTION

(Cont.)
MARKET GROWTH RATE
Market growth is used as a measure of a markets attractiveness. Markets
experiencing high growth are ones where the total market share available
is expanding, and theres plenty of opportunity for everyone to make
money.

THE BCG MATRIX COMPONENTS

STAR
High growth business competing in market where they are relatively strong
compared with the competition. they have a high point shares and are the
idealbusinesses.

CASH COW: The low-growth business with a relatively high point market shares.
Thesebusinesses were stars but now have lost their attractiveness.

THE BCG MATRIX COMPONENTS

(Cont.)
QUESTION MARK
Businesses with low point share but which may have a high growth rate.
This suggests that they have potential but may require huge ever, a
competing force extraordinary effort in order to grow point share.
DOGS
Businesses that have low relative share and low expected growth rate.
Dogs may generate enough points to sustain but they are rarely, if ever, a
competing force

STARS
HIGH GROWTH, HIGH MARKET SHARE

Stars are leaders in business.

They also require heavy investment, to maintain its large market share.

It leads to large amount of cash consumption and cash generation.

Attempts should be made to hold the market share otherwise the star
willbecome a cash cow.

CASH COWS
LOW GROWTH, HIGH MARKET SHARE

They are foundation of the company and often the stars of yesterday.

They generate more cash than required.

They extract the profits by investing as little cash as possible

They are located in an industry that is mature, not growing or declining.

Figure 02: BCG-MATRIX

DOGS
LOW GROWTH, LOW MARKET SHARE

Dogs are the cash traps.

Dogs do not have potential to bring in much cash.

Number of dogs in the company should be minimized.

Business is situated at a declining stage.

QUESTIONMARKS
HIGH GROWTH , LOW MARKET SHARE

Most businesses start of as question marks.

They will absorb great amounts of cash if the market share remain sun
changed, (low)

Question marks have potential to become star and eventually cash cow
but can also become a dog.

Investments should be high for question marks

Position of Coca-Cola Products

INTRODUCTION STAGE
FANTA & SPRITE are at the introduction stage , as both are much new in the
market as compared to THUMS UP and LIMCA.

GROWTH STAGE
THUMS UP, KINLEY & MAZZA are at the growth stage having high growth
and low market share.

Position of Coca-Cola Products (Cont.)

MATURITY STAGE
LIMCA, COCO-COLA are at the maturity stage having low growth but high
market share.
DECLINE STAGE
DIET COKE, MINUTE MADE PULPY ORANGE & KINLEY SODA are at decline
stage, proving to be non profitable product for coco-cola having low growth
and low market share.

CONCLUSION
Dog Strategy
Either invest to earn market share or consider disinvesting. Forthe
products like Diet Coke, Pulpy Orange and Kinlely Soda it better to stop
manufacturing these products and to should try to come up with some new
innovative and better beverages.
Star Strategy
Invest profits for future growth and for earning more of market share and
profits, Thums Up and Mazza will be a lot profitable for Coco-Cola India

CONCLUSION (Cont.)
Question Mark Strategy
Either invest heavily in order to push the products to star status or divest in
order to avoid it becoming a Dog.
Cash Cow Strategy
Use profits to finance new products and growth elsewhere.