The matrix is misrepresenting in some cases. Example: Coca Cola and Pepsi. Coca Cola is market leader, as a result of which the relative market share. Overview∗ Company Overview ∗ Strategy Formulation∗ History of Pepsi ∗ SWOT Matrix ∗ Grand Strategy Matrix∗ Growth ∗ BCG∗ Beverages Pepsi-Cola North America Pepsi-Cola Mountain Dew .. Hut Taco Bell Low High 10% BCG Matrix for PepsiCo – Early s;
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The product requires very less investment to maintain its market share and fight off any competition. NAB segment products are soft drinks and bottled water under different brands name following are some eminent brand names; Aquafina, Pepsi, Mountain dew and Sierra mist.
The industry has high potential to grow hence giving the room to the products to grow as well only if the pertinent issues are managed effectively. It has many segments each compete in different industry therefore, each segment requires a special attention from the top level management regarding strategic planning. Declining carbonated soft drinks segment share due to increasing demand for low calorie and healthy beverages and snacks is what is attributing the diminishing sales of Pepsi brand.
This change in consumer preferences is what has helped Gatorade see an exponential growth in its market share. Products or Business Units which hold a high market share and are also considered to grow in the future are positioned as Stars.
BCG Matrix of PepsiCo
Past few years have been an inflection point for the company with Pepsico seeing a bc drop in their carbonated drinks business, thus prompting it to go back to the drawing board ppesi relook at its future strategy and also its product offerings. The products or business units that have a high market share in high growth industry are the stars of the organization. These products have the potential of being positioned as cash cows in the future owing to the industry growth prospects.
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PepsiCo has 6 division, each segment operate in distinct industry or geographical region. Enter your email address: Leave a Reply Cancel reply Your email address will not be published. Your email address will not be published.
Dogs are those products that were perceived to have the potential to grow but however failed to create magic due to the slow market growth.
Products which are market leaders in their specific industry and their industry is not expected pe;si see any major growth in the future are considered as Cash Cows. The growth rate of an industry and the market share of a respective business relative to the largest competitor present in the industry are taken as the basis for the classifications, for that reason, BCG Matrix is also called as Growth-Share Matrix.
QFNA share of revenue was reported 3. These are low growth or low market share products and have very few chances of showing any gcg.
The answer is obvious that, it will not work, because each segment requires a distinct strategic plan, keeping in view the market share of each segment in the operating industry. BCG Matrix also is known as the growth-share matrix is used by organizations to classify their business units or products into 4 different categories: Segments has witnessed growth in the revenue compare to previous years despite the decline of industry sales growth rate.
Products or business units of the company that are still in the nascent stage of their product lifecycle and can either become a revenue generator by taking the position of a Star or can become a loss-making machine for the company in the future. These products are the money churners for the company and require very low investments to sustain their leadership and profitability in the market.
BCG matrix was specially designed for corporations, which operates in diverse industries.
BCG Matrix of PepsiCo | | BCG Matrix Analysis
According to BCG matrix; Question mark are those segments which, operate in high sales growth industry and have low relative market share. The company has to spend millions of dollars on brand ;epsi and promotional activities in order to maintain its market share.
The investment strategy for these products has to be very well thought through by the management as there are chances that these businesses might not yield any profit for the organization. Corporation distributes its products matrox two hundred countries around the globe. Diet Sodas, pepai seen by consumers looking to cut calories as an alternative to traditions sodas, are losing their fizz.
The small market share obtained by the organization makes the future outlook for the product uncertain, therefore investing in such domains is seen as a high-risk decision.
BCG Matrix of Pepsi | BCG Matrix analysis of Pepsi
For the above mentioned dilemma, there are many tool available, for top level matris to suggest, formulation of distinct strategies for multiple segments, operating under the singular conglomerate in multiple industries. One of the tool is BCG Matrix. Dogs are considered to be the futile segments of company.