Boston Matrix Quiz PDF

Boston Matrix and the product portfolio Product portfolio defined A product portfolio is the collection of all the products and services offered by a company A detailed analysis of this portfolio can provide insights into the sources of company sales and profits, and growth prospec...

Boston Matrix and the product portfolio Product portfolio defined A product portfolio is the collection of all the products and services offered by a company A detailed analysis of this portfolio can provide insights into the sources of company sales and profits, and growth prospects This is just some of the products in the portfolio of Unilever – see more here Boston Matrix Introduction The Boston matrix is a marketing planning tool which helps managers to plan for a balanced product portfolio It looks at two dimensions: market share and market growth, in order to assess new and existing products in terms of their market potential It helps marketing managers work out how much to spend on Have a go at drawing one, larger version of this each product blank on the next slide. You won’t need to draw one in an exam, but it will help you to learn about this business analysis tool. Boston matrix Market share High market share Low market share High Market Growth Market Growth Low Market Growth Boston matrix - star Star products: Have high market share Are in a high growth market Star products need to maintain their current marketing spend to keep sales high Stars should become cash cows in time, if the marketing is managed correctly For Unilever Stars can Lynx is a become star in cash cows their in time portfolio Boston matrix – question mark Question mark products: Have low market share Are in a high growth market Question mark products have lots of potential to become stars if they are managed correctly Question marks will need lots of investment in marketing and promotion – if they are to succeed For Unilever the new mini Berry Truffle Question magnum product is a marks can question mark as its become stars sales are as yet in time unknown Boston matrix – cash cow Cash cow products: Have high market share Are in a low growth market Cash cow products are good sellers and need little or no new investment The product just need to be “milked” for cash (hence the term) Cash cows need monitoring in case they become dogs For Unilever the Cash cows Hellman’s can brand is a become cash cow in dogs in their time portfolio  Boston matrix - dog Dog products: Have a low market share Are in a low growth market Dog products require no investment as they are in the decline phase of their lifecycle The product may have become obsolete or replaced The business may consider discontinuing or withdrawing the product Why do you think Flora is Dogs get a “dog” product in their withdrawn portfolio? in time Boston Matrix Uses Limitations Uses of the Boston matrix The Boston matrix is a good starting point when reviewing an existing product line to decide future strategy and budgets The conclusions drawn from such an analysis are to transfer the surplus cash from cash cows to the stars and the question marks, and to close down or sell off the dogs In the end, question marks reveal themselves as either dogs or stars, and cash cows become so drained of finance that they turn into dogs Ragu sauce – Cash cow, question mark, star or dog? Limitations of Boston Matrix Products may not be low or high market share they could be medium High market share does not always lead to high profits, there are high costs also involved with high market share Many people argue this matrix is too simple What do you think– dogs, stars, cash cows or question marks? Phone holder Sweet corn drink Snack holders Emoji hat for cars