marketing : Boston Consultancy Group (BCG Matrix)

This product portfolio matrix classifies product lines into four categories. The BCG models suggests that organizations should have a healthy balance of products within their range. The Boston Consultancy Group classified these products as following:

Dogs

These are products which have low market shares and low market growth rates. The options for many companies is to phase these products out, however some organization do go for the strategy of re-inventing and injecting new life into the product.

Question Mark/Problem Child

These are products with low market share but operate in high market growth rates. The company puts a lot of resources in this product in the hope that it will eventually increase market share and generate cash returns in the future.

Star

Stars have high market shares that operate in growing markets. The product at this stage should be generating positive returns for the company.

Cash Cow

Cash Cow is products at the mature stage of the lifecycle, they generate high amounts of cash for the company, but growth rate is slowing. There are chances that the product may slip into decline; appropriate marketing mix strategies should be employed to try to prevent this from happening.