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Portfolio Analysis in Principles Of Marketing
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Portfolio Analysis
Khawaja Naveed Haider
073605-085
What’s Portfolio Analysis? It’s basically a product portfolio in which we
rank our product or we can say that where our products are stands in the market.
We’ve three Matrices under this tab.
1. BCG Matrix (Boston Contingency Group)
2. GE Matrix (General Electric)
3. Product/Market Growth Matrix
BCG Matrix It is what how we maintain or analyze our product.
Here’s the matrix.
Please move to next slide for explanation of this matrix.
BCG Matrix Explanation If the industry is growing and your share is low,
you’re question mark (?). What are you doing? You need to improve. Like Snakes industry is growing but there’re some snakes with no name. You must’ve seen it.
If the industry is growing and your share is also high then it’d be Stars. Like Beauty Soap industry. LUX is a product of Unilever. Unilever’s all Beauty Soaps are all stars.
Do you know?
When you start your business, your product is in "?" position. It's up to you where you want to go, Stars Or Dogs...
BCG Matrix Explanation If the industry growth is high and but your
share is high then your product’s Cash Cow. Like industry of Tetra Pack packaging. Only “Packages Ltd” and “Tetra Pack” has the plant of Packet Milk and Juices packaging.
If the industry growth is low and your share is also low then your product is dog. Better to exit from the market. You’ll be amazed to see the example. Nestlé's Polo is the example.
GE Matrix This matrix is given by General Electric which is
world biggest electronics British company. It’s what you’ve to do with BCG Matrix.
GE Matrix Explanation Invest: It is used to strengthened and build these
kinds of SBUs (Strategic Business Units). Bold and well financial marketing efforts are needed here. It’s basically use when you start a new business as the name suggests.
Protect: It’s used to protect your current SBUs. Like PEPSI is protecting its product. Because Coke is the competitor of PEPSI and they’re allocating resources. You can say it a defensive approach. It also generates cash needed by other SBUs or products.
GE Matrix Explanation Harvest: They lack an attraction market at a strong
position. These SBUs shouldn’t receive substantial new resources instead expenditure should cut to minimize any remaining profit. You know that *CDL’s Dairy Queen milk is operating in Loss?
Divest: In this position, an SBU shouldn’t receive any resources. Probably, the best approach is to eliminate from the organization’s portfolio by selling it or shutting it down. Point To Ponder: What about POLO? I think it fits here… But why Nestle is not shutting it down?
*Chaudary Dairies Limited (Formally Haleeb Foods Ltd)
Product/Market Growth Matrix It is about the market. What you’re gonna do or
what you’ve to do. So get a look at the matrix below…
Existing Product
New Product
Existing Market
Market Penetration
Product Development
New MarketMarket
DevelopmentDiversification
Product/Market Growth Matrix Market Penetration: When someone snatches the market
share of other. Do you know that there’s big fight between Haleeb and Milkpak? Both are always willing to penetrate in the market.
Market Development: It’s like I’m supplier of Board Markers. I’m supplying to different educational institutes. If i begin to supply my product to different business organization, it would be market development. What do you think about the development of Mobile Phones market in Pakistan? Mobiles were being used by only businessmen but now… you must have your mobile phone I think…
Product/Market Growth Matrix Product Development: If you’re gonna introduce a
new product in the market, it’d be product development. Have you seen Nestlé's Pure Water? You must know that Milkpak is also the product of Nestlé .
Diversification: When we have totally new product in a new market. Conglomerates can also put under this heading. Do you know Mitsubishi is the biggest conglomerate of the world? There’re other like Berkshire Hathaway (USA), Aditya Birla Group (India), Reliance Industries (India), Habib Group (Pakistan), Bibojee Services (Pakistan)
Ok… That was it. I’m sure you understand the topic. I tried my
best of the best to make you know about the things effectively.
Thanks for you time… and and and BEST OF LUCKKKK…
FOR EDUCATIONAL PURPOSE ONLY !!!
THIS PRESENTATION IS ONLY FOR EDUCATIONAL PURPOSE
UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, LAHORE
