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MGT503 Principles of Management GDB 2 Solution Fall 2012

On any given day, two billion people use Unilever products to look good, feel good and get more out of life. With more than 400 brands focused on health and well being, no company touches so many people’s lives in so many different ways.
The portfolio ranges from nutritionally balanced foods to indulgent ice creams, affordable soaps, luxurious shampoos and everyday household care products. The company produces world-leading brands including Lipton, Knorr, Dove, Lux, Lifebuoy, Axe, alongside trusted local names such as Blue Band, Pureit and Suave. (Courtesy Unilever)
President, Soap Division of Unilever received the annual report of 2012, called his team and asks them to make goals and strategies for the year 2013. The team responds that there are many brands of soap of Unilever and each brand presents a unique offering to different customers; therefore to develop corporate strategy for each product they have to do portfolio analysis by using Boston Consulting Group (BCG) matrix. Now it comes down to you, as a team lead, that how you can segregate the soap brands according to BCG matrix.

Soap Category
Brand
Market Share
2012
Market
Share
2011
Market Growth
2012
Market Growth
2011
Beauty
Lux
60 %
58%
18 %
22 %
Germ
Lifebuoy
54%
51 %
29 %
26 %
Skin Care
Dove
4 %
2.5 %
11 %
7 %

Legend:
Market share scale is 0 – 100
Market growth scales is 0 – 50

Question:
For any two of the brands, you have to analyze the given data, and decide which brand falls in which category of BCG Matrix? Also suggest strategies for both selected brands as per BCG matrix.

 

1) The Star has a high market share in a rapidly growing  market.—–Lifebuoy

2) A Question Mark (problem child) has a low market share in a rapidly  growing

market.

3) The Cash Cow has a high market share in a slowly growing market.  —–Lux

4) A Dog has a low market share in an area of low  growth.———–DOVE

Lux will fall in Cash Cow with low growth of 18 % 22 % with high market share 60 % 58%

Lifebuoy will fall in Star with high growth of 29 % 26 % with high market share 54% 51 %

Dove will fall in Question mark with high growth of 11% 7% with low market share 4 % 2.5 %

Note:- strategies khd mention krain ab that wht strategies we should adopt against each category of BCG Matrix.

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