Bcg matrix in cosmetics

Thinking of a tool which could fit in this category? Tell us Total results: The BCG matrix is categorised into four quadrants: The dog represents a product that has a low market share and is in a low growth market.

Bcg matrix in cosmetics

The premise of the BCG Matrix is that all products or brands can be classified as one of the following categories, based on its market share and market growth: These are brands very much at their peak, holding a large market share in very much a growing market — therefore requiring continued investment to hold or enhance their position, as competitors continually enter the market and innovate.

Despite its existing stature, continued investment in the patented TESS technology which uses the natural essence pressed from freshly picked leaves enabled a global re-launch of Lipton Yellow Label that fuelled growth of 5.

This is arguably the most important category of brands for companies like Unilever as they require very little further investment to generate revenue — allowing for profits to be reinvested into Stars or Problem Child brands.

Bcg matrix in cosmetics

Marmite is a key Cash Cow for Unilever with sales just about holding their own in the spreads industry that is slowly beginning to decline in Europe and North America. Investment in Marmite in recent years has been largely limited to advertising campaigns.

Often relatively young brands, they are yet to maximise their potential within the industry and therefore require greatest investment from the success of Cash Cow brands in order to exploit the fast market growth ahead of competitors. These are the dead-end products whose time has been and gone and likely most offer no future profits.

Simply keeping them on the market is wasting resources generated by Star and Cash Cow brands. For this very reason, Unilever sold its Slim-Fast brand in July to private-equity firm, Kainos Capital, to focus on other brands with greater appeal and growth potential.

Bcg matrix in cosmetics

Excellent portfolio management by Unilever will see T2 become the future Dove or Tipton, before naturally becoming a Marmite and subsequently another Slim-Fast, but smart investments will prolong the growth stages and hold off the decline.

This long term perspective is a key strength of the BCG Matrix as a strategic tool.

Understanding the tool

However, there are still a couple of cautions to be considered when using it. Firstly, market growth may be directly influenced by Unilever due to its market power. For example, Unilever claimed in that the soups market declined in developed markets. Despite the limitations, the BCG Matrix is a very simple and useful tool for portfolio managers to review their brands and products across industries and SBUs, and assist in prioritisation of investment and divestment.What is the BCG matrix?

BCG – Global Management Consulting

The BCG matrix is a tool which uses the relative market share and growth rate of the various product lines of an organization to assess the relative strength of products .

BCG MATRIX Boston Consulting Group (BCG) Matrix or also called BCG model relates to marketing. This model is a known as portfolio management tool that used in product life cycle theory. This model is a known as portfolio management tool that used in product life cycle theory.

BCG matrix can be used to analyze SBUs, separate brands, products or a firm as a unit itself.

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Which unit will be chosen will have an impact on the whole analysis. Therefore, it is essential to define the unit for which you’ll do the analysis. Unilever: BCG Matrix Unilever is officially the world’s third largest consumer goods company, behind Procter & Gamble and Nestle, having generated a turnover of .

The growth–share matrix (aka the product portfolio matrix, Boston Box, BCG-matrix, Boston matrix, Boston Consulting Group analysis, portfolio diagram) is a chart that was created by Bruce D.

Marketing Theories - BCG Matrix

Henderson for the Boston Consulting Group in to help . how to apply bcg matrix to your business “To be successful, a company should have a portfolio of products with different growth rates and different market shares.

The portfolio composition is a function of the balance between cash flows.

Growth–share matrix - Wikipedia