Reference no: EM132211067

BCG matrix- Cash cow, Stars, Question Marks and Dogs

A BCG business portfolio analysis consists of four categories: question marks, stars, cash cows and dogs. Coca-Cola is a company that has products for each category of the BCG matrix. A question mark product of Coca-Cola would include Fanta. Fanta has a low market share and a high business growth rate. If Coca-Cola used more effective marketing towards Fanta, this could become a star product. Star products would include Dasani water. This product has a high share of high growth markets and will most likely need extra cash to help with their future growth. Coca-Cola would need to continue to invest money into Dasani in order to stay on the market. There are many water bottle brands that they are competing with such as Poland Spring and Nestle. A cash cow product includes Coca-Cola itself because the product generates large amounts of money to invest in other products. I think that Coke will continue to stay a cash cow product because they have hundreds of thousands of vendors and consumers that are die-hard fans of Coke. Lastly, dog products of Coca-Cola would be diet coke and coke zero. These products make enough money to sustain themselves in the company but aren't the winners of the organization. I think that Diet Coke used to be a star product before the rumor spilled out that Diet Coke could cause cancer.

We currently live in an environment where more people are becoming health conscious and aware of the food and drinks they are putting into their bodies. If Coca-Cola released another version of Coke Zero with natural sugars, then it could potentially become a cash cow product in the BCG matrix alongside the original Coke. Investing in healthy alternatives without artificial flavors / artificial sugars would be beneficial for coca-cola. They would need to invest in the right marketing for this product.

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