ASSIGNMENT OF

STRATEGICMANAGEME
NT
ON
BCG MATRIX OF COCOCOLA

SUBMITTED BY,
YOGESH
POTE
TYBBI.
ROLL NO37

CONTENTS
I.

II.

VII.
VIII.
IX.
X.

COCO-COLA, INDIA

MISSION STATEMENT

VISSION STATEMENT

BCG- MATRIX

BENEFITS

LIMITATIONS

BCG-MATRIX COMPONENTS

BCG-MATRIX OF PRODUCTLINE OF COCO-COLA ,INDIA

BCG- PRODUCT LIFE CYCLE
REVIEW OF LITERATURE
CONCLUSION

COCO-COLA , INDIA
Coca-cola Company, nourishing the global community with the worlds largest
selling soft drink since 1886, returned to India in 1993 after a gap of 16
years.HCCB 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), minute maid pulpy orange.
The business system of the company in India directly employs approximately
6,000 people, and indirectly creates employment for many more. Coca-Cola India
has increased its market share from 57 percent in the carbonated soft drink (CDs)
category in 2005 to 61 percent at the end of December 2006.
Coca Cola was the first in the country to launch cans, plastic cap leak proof bottles
and full length delivery crates.
Ranking: We own 4 of the worlds top 5 nonalcoholic sparkling beverage
brands: Coca-Cola, Diet Coke, Sprite and Fanta.
Company Associates: 90,500 worldwide (as of December 31, 2007)
Operational Reach: 200+ countries
Consumer Servings (per day): 1.5 billion.

MISSION STATEMENT
TO HAVE A STRONG DOMINANT AND PROFITABLE BUSINESS IN INDIA.
SHARED VALUES
We value and respect our employees
We communicate openly
We have integrity
We are committed to winning

VISION
TO CREATE VALUE FOR OUR SHARE HOLDERS.
Building Preference & Market Leadership For Our Brands

Achieve Quality Excellence And Serve Our Customers With Quality

Products

Maximizing Profits

Developing People Optimum Utilization Of Assets

VALUES
Respect And Trust As The Framework Of All Our Relationships

Flexibility For Our Clients, Partners And Staff

Innovation In The Products, Processes, And Services We Offer

Focus On Results, Without Neglecting The Quality Of The Process

Doing the Right Thing

THE BCG MATRIX

INTRODUCTION
BOSTON CONSULTING GROUP (BCG) MATRIX IS DEVELOPED BY
BRUCE HENDERSON OF THE BOSTON CONSULTING GROUP IN THE
EARLY 1970S.

According to this technique, businesses or products are classified as low or

high 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 your
market share, the higher proportion of the market you control.
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.
It is a portfolio planning model which is based on the observation that a
companys business units can be classified in to four categories:

STARS
QUESTION MARKS
CASH COWS
DOGS

It is based on the combination of market growth and market share relative to the
next best competitor.

BENEFITS

OF BCG MATRIX

BCG MATRIX is simple and easy to understand.

It helps you to quickly and simply screen the opportunities open to you, and
helps you think about how you can make the most of them.
It is used to identify how corporate cash resources can best be used to
maximize a companys future growth and profitability.
LIMITATIONS
BCG MATRIX uses only two dimensions, Relative market share and market
growth rate.
Problems of getting data on market share and market growth.
High market share does not mean profits all the time.
Business with low market share can be profitable too.

THE BCG MATRIX COMPONENTS

STARS:High growth business competing in market where they are relatively strong
compared with the competition. they have a high point shares and are the ideal
businesses.

CASH COW:-

The low-growth business with a relatively high point market shares. These
businesses were stars but now have lost their attractiveness.

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.

BCG- MATRIX

 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 will
become 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.

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 remains
unchanged, (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.

BCG-MATRIX FOR THE PRODUCT LINE OF COCO-COLA

STARS
HIGH GROWTH, HIGH MARKET SHARE

CASH COWS

LOW GROWTH, HIGH MARKET SHARE

DOGS
LOW GROWTH, LOW MARKET SHARE

QUESTIONMARKS
HIGH GROWTH , LOW MARKET SHARE

BCG PRODUCT LIFE CYCLE

From here we can say that: 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.

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.

Literature Review :

Carl W. Stern.

Typical Question Marks are new products in markets with a high growth rate.
They enter the market with a small market share in relation to the market leader. In
order to improve their position, it takes investments, especially in marketing.
Normally, such products do not generate profits.
The BCG Matrix is useful for a company to achieve balance between the four
categories of products a company produces. As a particular industry matures and
its growth slows, all business units become either cash cows or dogs. The overall
goal of this ranking is to help corporate analysts decide which of their business
units to fund, and how much; and which units to sell. Managers are supposed to
gain perspective from this analysis that allowed them to plan with confidence to
use money generated by the cash cows to fund the stars and, possibly , the question
marks .

CONCLUSION
TO CONCLUDE WE CAN SAY THAT:

Dog Strategy: Either invest to earn market share or consider disinvesting. For
the 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

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.

LIFE CYCLE:
To be able to market its product properly, a firm must be aware of the product
life cycle of its product. The standard product life cycle tends to have five
phases: Development, Introduction, Growth, Maturity and Decline. Coca-Cola
is currently in the maturity stage, which is evidenced primarily by the fact that
they have a large, loyal group of stable customers.
Furthermore, cost management, product differentiation and marketing have
become more important as growth slows and market share becomes the key
determinant of profitability.
In foreign markets the product life cycle is in more of a growth trend Coke's
advantage in this area is mainly due to its establishment strong branding and it
is now able to use this area of stable profitability to subsidize the domestic
"Cola Wars".