F10+MKTG+3104+Student+02.+Strategy+Part+2+ppt[1]

Bcg growth share matrix for pg market growth relative

This preview shows page 9 - 17 out of 26 pages.

BCG Growth-Share Matrix for P&G Market Growth Relative Market Share 10 1 .1 10 % PROCTER & GAMBLE A = toothpaste B = detergent C = color cosmetics D = dog food
Image of page 9

Subscribe to view the full document.

WHAT IS RELATIVE MARKET SHARE? RELATIVE MARKET SHARE = FIRM’S MARKET SHARE / MARKET SHARE OF LARGEST COMPETITOR TOOTHPASTE MARKET SHARE RELATIVE SHARE U.S. COLGATE 36 % 36/ 35 = 1.03 CREST 35 % 35/ 36 = .98 AQUAFRESH 14 % 14/ 36 = .39 ARM & HAMMER 8% 8/ 36 = .22
Image of page 10
BCG Growth-Share Matrix Market Growth Relative Market Share 10 1 .1 10 % PROCTER & GAMBLE A = toothpaste B = detergent C = color cosmetics D = dog food A B C D
Image of page 11

Subscribe to view the full document.

ASSUMPTIONS OF PRODUCT PORTFOLIO THEORY Ø High growth markets are more competitive and require more investment (cash) than low growth markets Ø High relative share implies lower costs and more profit. Ø You should have a balance between businesses that provide cash and those that require it.
Image of page 12
BCG Growth-Share Matrix Market Growth Relative Market Share 10 1 .1 10 % Needs High Investment Low Margins Needs Low Investment High Margins Which cells will… require the most cash from other businesses?
Image of page 13

Subscribe to view the full document.

Cash Cows CASH COW: Share leader in low growth market Market Growth Relative Market Share 10 1 .1 10 % Try to maintain position Milk cash for other businesses
Image of page 14
Stars Cash Cows Market Growth Relative Market Share 10 1 .1 10 % Invest to maintain or improve position Future cash cow STAR: Share leader in high growth market
Image of page 15

Subscribe to view the full document.

Stars Question Marks Cash Cows QUESTION MARK (PROBLEM CHILD)
Image of page 16
Image of page 17
You've reached the end of this preview.
  • Spring '08
  • EBCoupey
  • Marketing, procter, .1Relative Market Share

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern