BCG Matrix for Coca-Cola India

Submission Date : 10/102013 Submission Time : 9 AM

MARKET ENVIRONMENT AND ANALYSIS

Assignment No: 2

BCG Matrix for Coca-Cola India

Submitted to

Dr RITANJALI MAJHI

NIT Warangal

SCHOOL OF MANAGEMENT

Submitted by

ARJUN S (138906)

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BCG Matrix for Coca-Cola India

ABSTRACT
This is a study of Coca-Cola products market share in India, with the help of BCG matrix The
BCG Growth-Share Matrix is a portfolio planning model developed by Bruce Henderson of the
Boston Consulting Group. It is based on the observation that a company's business units can be
classified into four categories based on combinations of market growth and market share relative
to the largest competitor, hence the name "growth-share". The growth-share matrix thus maps the
business unit positions within these two important determinants of profitability. This study will
help to understand the Coca-Cola products market share and growth

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BCG Matrix for Coca-Cola India

INTRODUCTION

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 16years.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 andkinley (packaged drinking water), minute maid pulpy orange.

The business system of the company in India directly employs approximately6,000 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 bottle sand 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

THE BCG MATRIX

BOSTON CONSULTING GROUP (BCG) MATRIX IS DEVELOPED BYBRUCE
HENDERSON OF THE BOSTON CONSULTING GROUP INTHE 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.

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BCG Matrix for Coca-Cola India

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

THE BCG MATRIX COMPONENTS

STARS :-

HIGH GROWTH, HIGH MARKET SHARE

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: -

LOW GROWTH, HIGH MARKET SHARE

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

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BCG Matrix for Coca-Cola India

QUESTION MARK: -

HIGH GROWTH LOW MARKETSHARE

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 :-

LOW GROWTH, LOW MARKET SHARE

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.

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BCG Matrix for Coca-Cola India

BCG-MATRIX FOR THE PRODUCT LINE OF COCO-COLA

STARS QUESTION MARKS

Thums UP Fanta;
MAAZA Sprite
KINLEY

COWS DOGS

coca-cola Diet Coke;

Limca Minute Maid Pulp ORANGE;
KINLEY club soda

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BCG Matrix for Coca-Cola India

BCG PRODUCT LIFE CYCLE

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BCG Matrix for Coca-Cola India

CONCLUSION

From the BCG matrix analysis of Coca-Cola India we reached in following conclusions,

INTRODUCTION STAGE:-

FANTA & SPRITE are at the introduction stage , as both are much new in the market as
compared to thumbs up and limca.

GROWTH STAGE:-

THUMBS UP, KINLEY & MAZAA are at the growth stage having high growth and low
market share.

MATURITY STAGE:

LIMCA, COCA-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 the decline
stage, proving to be non profitable products having low growth and low market share.

REFERENCES
http://www.scribd.com/doc/31410727/bcg-matrix-of-coc-cola-india

http://www.studymode.com/subjects/bcg-matrix-of-coca-cola-page1.html

http://www.slideshare.net/SuravarapuMohanaVamsi/main-ppt-on-coca-cola

http://scdlmbaprojects.blogspot.in/2013/03/analysis-and-application-of-bcg-
matrix.html

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BCG Matrix for Coca-Cola India

http://www.slideshare.net/almas_sshahid/cocacolamarktingproject