[BCG model relates to marketing, The 8CG madel is 2 wel-known portflio management
tool used in order to analyze and position the product by keeping in view the market share as
‘well as the market growth rate of the product. 8GG matric Is often used to priortze which
products within company product mix get more funding and attention. The BCG made is based
‘on dassiication of products (and implicitly also compary biainess urits) into four categories
based on combinations of market growth and market share relative to the largest competitor.
In order to elaborate the BCG matris, Ihave chose Engro fcods limited. Though Engro has a
number of other business n which it involve but in this repert | have focused only in one
business unit of Engro which is Engro foods limited Engro foods have launched six major
brands since 2004, year of establishment of Engro faacs. n these six major brands five are dary
products. In year 2010, Enero has launched olfrute which is a fresh juice product by this
particular company. In thi report, | have categorized all the six major branes of Engro foodsin
to four categeries of 8CG matrix. The decision of this categcriation has been made on the basis,
‘of two major thing: that are market share and the growth in the market‘Stars
Inthe 8¢G matrix, | have placed two preducts in the star categories that are Omore and
TTarang as the growth rate of these tivo products are quite high as you can see in the tabe-
{Beside this the market share is alo increasing. As both cf the products are relatively new in
the market as compared to its competitors and the market share is not so well but stillin this
shortage period this erowth rate and the market shareis incredible There isa lat of patential in
booth of these products and company can ircrease its market share by massively investing in
these two products. Investing Strategy must be used in order to cons.ant the growth, the
company must constantly invest in orderto grow the current level of market sare.
‘Growth Rate 45% (Olper), +56 (trang)
lee Cram Market Share ‘Tea Whitener Market Share
nore 38% Tene sim
Wale a8 Every Dey 27%
Yummy 1% Tes Max 22%
Cash Cows
Oper & one of the well renowned brands by Engro foods and this has lead te a drastic
change inthe diary industry of Pakstan. Before ojper, haleeb and mik pack had the monepoly
Inthe tetra pock dary industry butafter the olper success a lot of other brands lke good milk,
‘hurpur etc got enter into the market, Now the market of the alper hasa relatively high market
hare and the third largest mill procucer in Pakistan, Clper milk and cream come under the
same umbrella of brand nameoiper. Harvesting Strategy should use and Engro should milk its
cow for the Omore and Tarangin order to increase their cufrent marketshare.
Growth Rate “
Milk Market Share ‘Cream Market Share
Obler 21% Olper Cream 28%
MillkPak 459 Nestle Cream 52%
Hales atv Hakescream 20%lestion Marks
[At the end of year 2010, Engro food tas launched Its Ast jue brand name olrute
COffrute has reiatvely low market share but the arough petentialis quite high. Olfute is facing a
toush competitor with a strong brand name of Nestle. The initial promotion and the sales
figures depict that it can be a successful product but stil the results of this brand has yet to
come. In this particular period Engre food has alse lsunched flavored milk with brand rame
‘owsur. Though the experiences of haleeb in the case of candia was biter, now just see what
Engro will eo in order to make this brand a suecass
Growth Rate 2
‘ices Market Share
Nestle 0%
Ofte 3%
country 25%
Halle 13%
Dog
Engro has lauched a brand with the name Olwell with high calcium and low fat. This has
{get 9 great failure and the market share of Olwell ¢ compared to nesvita is quite low beside
this ts sales are started decreasing as compared to the previous year figures. Divesting Strategy
can be used as from the past two yearsthe market share has been started losing and also the
there i slow market growch for this product.
Growth Rate “
Milk Market Share
DairyOmang 10%
sae Pak 45%
Dairy Queen 33%
Halla %