Boston Matrix.
Boston Matrix This is a method of analysing the product portfolio of a business (that is, the number and range of different products which a business produces at a particular point in time). This model was developed by a group of management consultants called the Boston Consulting Group, and it divides the products that are produced by a business into 4 categories, according to their market share and the level of market growth. The 4 categories are : Problem Child (Sometimes referred to as Question Marks or Wild Cats). This is a product which has a low market share in a high growth industry. These products have often been launched quite recently and have not had the necessary time to establish themselves in the market. They will require a significant amount of money to be spent on their promotion in order to achieve a healthy market share. They are at the 'Introduction' stage of the product life-cycle. Stars These products have a high market share in a high growth market. They are very successful products which create a large amount of revenue for the business. They still require a large amount of money to be spent on their promotion, in order to keep ahead of the rival products in the marketplace. They are at the 'Growth' stage of the product life-cycle. Cash Cows These products have a very high market share in a stable market (i.e. market growth is low). These
The Boston Matrix
Michael McGloin Homework The Boston Matrix ) Following further Market Research it is established the PLP LTD is seen as a company that is not very adventurous and it has nothing set to itself apart from its competitors. In order to change its image with its customer base suggest how the company could move from its present market to a new "niche market" I would suggest that this company should go into a market "niche" as their current product lines are not doing to well. They should go into a specific market that no one dominates and bring out a product that does just that. This would increase their profits no end, as the consumers will want this product. As they involved in the promotion of leisure products they to come up with a unique idea that will take the market by storm. But I would also suggest keeping some of their old lines, the more successful lines. This would lower the risk factor as the new product might not do as well as they expected and they would be ruined. They have to move into the "niche market" as the passage says that there will be no profits left. 2) Explain why it may be less of a risk for PLP to carry on with its present customers as well as forming a new "niche market" for the new product and using a different brand name. I think that the PLP should keep their present customers because it will be
Ansoff and Boston Matrix
Ansoff matrix: New product development is an option in the Ansoff's product-market growth matrix, a instrument used by business to identify numerous options a business could adopt to increase its sales. Depending on the aims and objectives of the business, and strategy it wants to adopt, the Ansoff matrix will suggest one of four options which are shown below in a table I found on the search engine 'Google'. Market penetration - the safest option, based on selling more to existing customers. Market development - seeking new channels of distribution or selling in different geographical areas. Product development - selling new products into the existing market, with all the risks associated with a new product. Diversification - the area of highest risk, based on developing new products for new markets. Market penetration is one of the four growth strategies as defined by Ansoff. Market penetration occurs when a company enters/penetrates a market with current products. The best way to achieve this is by gaining competitors' customers. Other ways include attracting non-users of your product or convincing current clients to use more of your product/service. Product development: A firm with a market for its current products might embark on a strategy of developing other products catering to the same market. For example, McDonalds is always within the fast-food industry, but
The marketing models I will evaluate will be SWOT and PEST analysis, the product life cycle, the Boston Matrix and the Ansoff Matrix.
Objective 4 Marketing strategies/models In this objective I will be analysing the different marketing models and evaluating their reliability. The marketing models I will evaluate will be SWOT and PEST analysis, the product life cycle, the Boston Matrix and the Ansoff Matrix. SWOT and PEST analysis In the previous objective, I analysed SWOT and PEST of Cadbury. These enabled me to gain insight into the external and internal influences that may arise which may either be beneficial or cause problems for the launch of my product. Product life cycle The product life cycle shows the sales of a product over time. To be able to market a product, Cadbury must be aware of the product life cycle of its products. The cycle can be demonstrated as below: Introduction Following planning and development, the product is introduced onto the market. This stage includes characteristics such as: Low initial sales, due to limited knowledge and no consumer loyalty Heavy promotion to build brand image and consumer confidence Losses (low profits at best) due to heavy development and promotion costs Limited distribution levels, but high stockholding for the manufacturer Growth At this stage, consumer knowledge and loyalty has grown, and the company increases sales and begins to make profits. There may be a growing number of competitors who may introduce similar products or adapt
SWOT, PEST and Boston Matrix analysis for Sainsburys.
SWOT Analysis In order for Sainsbury's to be successful they need to consider certain factors. SWOT Analysis is a good method that can be used to ensure Sainsbury's consider all factors of the business. SWOT stands for: Strengths Weaknesses Opportunities Threats As swot analysis clearly outlines Strengths, Weaknesses Opportunities and Threats it is very clear to Sainsbury's what areas of the business they are successful in and which areas of the business need a little more work. Strengths * Quality Management * Customer Service * Organisation * Satisfying Needs * Technology * Delivery Service * Brand Strength Weaknesses * Expensive * Location Opportunities * Abroad * Expanded Product Range * Advertisements * New Products Threats * Competitors * Recession As with most forms of research and evaluation we will find that some aspects are easier to find than others, with a SWOT analysis it is much easier to highlight Internal Factors (which are the Strengths and Weaknesses of the business) than it is to highlight External Factors (which are the Opportunities and Threats to the business). Therefore other methods need to be explored to identify more factors that may affect the business. Ansoff Matrix Another method that may be used to identify more aspects relevant to Sainsbury's could be Ansoff Matrix. The Ansoff Growth matrix is a tool that helps a
The Marketing Mix
E1. The Marketing Mix A. Promotion There are many methods I can use to promote Classic Cola. I can use above the line promotion methods, where I can use media to get through to potential and actual customers. I can also use below the line promotion, such as personal selling. But I think I will use above the line promotions methods as I think it will be more affective. I will use television adverts as over 90% of homes have television sets in them. Also I will have the choice to choose the timings of when I can advertise Classic Cola, as different advertising spaces during the day target different people. B. Price I will have to chance the price of Classic Cola from the current price, which is 64p for a 2-litre bottle. I have decided to change the price to 55p and lower as time goes. I say this because I will make sure the production of Classic Cola will benefit from Economies of Scale, which then I can pass the benefits over to the consumers via lower prices. C. Place I will also place Classic Cola in national and international stores, in order for more people to actually know and buy the product. I say this because not everyone has seen or heard about Classic Cola, so by placing the product nationally and internationally there is more change of people taking an interest in the product, resulting in an increase of sales for Classic Cola. D. Production Classic
Marketing Mix - Principles and Scope of Marketing.
MK209 Marketing Mix Mr J Turner Principles and Scope of Marketing Coursework Miss Ashley Kennedy 0205036 April 2003 "I keep six honest serving men (they taught me all I know) their names are What and Why and When and How and Where and Who" Rudyard Kipling The above quote is an early form of Market Research, one could say! But what is the point in asking questions if you do not react to the answers. In this Coursework, I wish to explain, using examples of Companies and Firms, factors that SHOULD be taken into account when making Product Decisions. This will include the 4 (7) P's, and how each is inter-dependant and inter-related. Included is analysis of Marketing Planning, and the benefits and disadvantages of certain models. The Marketing Mix can be defined as the combination of detailed strategies, tactics, techniques, and activities. The role of the Marketing Mix is to move marketing objectives and plans into reality, and ultimately achieves Company/Firms goals. The key to a successful Marketing Mix, lies with the Management, and the decision maker is crucial to any Marketing Department. Why? Because getting the right Product available, at the right Price, in the right Place with an appropriate Promotional Campaign behind it all - takes planning, strategy and tactics. This does not just happen through instinct alone. The skill of the Marketing Manager
Analysis of the Boston Consulting group Matrix
Boston Consulting Group Matrix (BCG Matrix) According to Sadler and Craig (2003:54), the BCG matrix is a corporate portfolio analysis tool that provides a graphic representation of an organization that is used to scrutinize the different businesses involved in the portfolio on the basis of the related market share and industry growth rate. However, it is also a model based on the product-life cycle theory that is used to determine the priorities that are supposed to be given in the product portfolio of a business unit in order to ensure that long-term value is created (Sadler and Craig, 2003:54). Therefore, a company needs to have a portfolio of products that comprise of both the high-growth products in order to create the need of cash inputs and low-growth products that generates a lot of cash (Sadler and Craig, 2003:54). Furthermore, the BCG matrix can be elaborated as a two dimensional analysis on management of the Strategic Business Unit (SBU), generally meaning that it is a comparative analysis of a business potential and the environmental evaluation (Warren, 2008:344). Thus, the two dimensions are the relative market share (SBU sales this year leading to the competitors sales this year) and market growth rate (industry sales this year minus the industry sales last year) and this analysis entails that both measures be calculated for each SBU (Warren, 2008:344).
What is the Boston Consulting Group Growth-Share Matrix and how is it used?
"Do Dogs Always Die?" .0 Introduction .1 What is the Boston Consulting Group Growth-Share Matrix and how is it used? The Boston Matrix is an approach to product portfolio planning. It enables management to decide where and how resources would best be allocated, and allows them to make cash-flow forecasts. By answering the following questions they are "ensuring that there are enough cash-generating products to match the cash-using products": . Are you trying to fund too many new products? 2. Is there a need for immediate new product development? 3. Are there products that should be dropped? (boston, businessreview, www.nvq5.com) .2 Practicalities of the BCG - How to use it A circle, the size of which indicates the revenue it generates, represents each of the company's products. It is plotted on the grid according to its relative market share and the growth of the market it operates in. An arrow is then placed in the direction they think each is moving. A pie slice sometimes represents the proportion of corporate profits generated by that product. (boston, business review, www.nvq5.com) The 'Experience Curve' suggests that a larger market share will enable the business to benefit from economies of scale, lower per unit costs and higher margins. (Peter W Turnbull, 1990) The grid is then split into quadrants: * Stars - "High-growth, high-share products that
The Marketing Mix.
The Marketing Mix By M.S.D The shop that I am going to be investigating is "Tesco" established in Slough. This is an established opened 60 years ago. My plan for the company's marketing campaign must include; · All the options that the company should consider, · Why I have chosen to make the decisions I do. I will have to research the company and what forms of marketing they have intended to be set up. Also I will need to know what funds is set-aside for marketing. All of this will found out through primary data collection that will be in the form of a letter to the business Marketing strategies for "Urban Surf Co" Sources of knowledge To help generate a fully comprehensive marketing strategy for your company I will use four source of information to investigate the way you wish to be perceived and the way other firms have achieved this . Paper. I have written a letter to your store with an attacked questionnaire this is in an attempt to understand the market you have set up in and the marketing strategies that you would to put in place. 2. People. This can be covered by the questionnaire or can also be completed by speaking the shop staff or a telephone call to them. 3. Technology. For this I will look over the Internet to find a site about setting up marketing strategy for new company and I will also look at existing one from other companies. 4.
