Conclusion of BCG matrix of Coke:
The BCG matrix is used in analyzing the various products being sold by manufacturers. The
market share, potential for growth and annual sales are taken in to consideration.
Coca-Cola is a multinational company that has been operating for over a century. It supplies its
products to hundreds of countries worldwide. To create the matrix, the industry growth rate and
relative market share is drawn on the y-axis and x-axis respectively.
CASH COWS:
Cash cows are the products that have a high market share in a market that has low growth.
The cash cows of Coca-Cola are Coca-Cola and Limca which functions as the foundation of the
company.
Coca-Cola: Coca-Cola for years has been a market leader in carbonated soft drink segment and a
major cash generator for the company. Having a presence in 200+ countries, coke has been the
no.1 choice for millions of consumers all these years when it comes to choosing a carbonated
soft drink.
STARS:
The products or business units that have a high market share in high growth industry are the stars
of the organization.
The star products of Coca-Cola are Thumbs up, Mazaa, Kinley and Dasani and these are the
leader of the business.
Kinley and Dasani: Kinley and Dasani are still bottled water brands owned by Coca-Cola
and offered in different countries in markets. Both products are stars for Coca-Cola Company as
the need for water increases, it will lead to more growth opportunities in the industry.
While Kinley is quite a popular bottled water brand in European and Asian countries, Dasani has
a quite a stronghold in US market.
Owing to the growing demand for low calorie and healthy drinks, the bottle watered industry is
currently under an evolution phase.
To cater to different customer segments and their needs, coke is looking out at launching
different variants of Bottled water EG: Apart from just simple bottled water, Coke also offers
Kinley and Dasani sparkling water (just to cater to affluent customers).
That’s not it, these also come in different flavours giving the customers a wide range of options
to choose from.
QUESTION MARK:
There are products that formulate a part of the industry that is still in the phase of development
and the organization is trying to create a significant position in the industry. 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.
The products in this segment can either grow and become stars or cash cows for the company or
can turn into a bad investment.
The beverage industry is at an inflection point and is undergoing a major transformation. With an
aim to cater to the changing needs of consumers to zero calories and no sugar drinks, Coca-Cola
Company has launched a number of products/brands to cater the same.
The Question marks of Coca-Cola are Fanta and Sprite and the investment is high on these
products.
The company is investing a lot of capital to create awareness about these brands. These
products/brands are Still in the initial/development phase of the product lifecycle and have a
huge potential to grow.
Growing healthier lifestyle trends and emerging markets have prompted the brand to invest a
large amount of capital in healthier beverages in order to differentiate itself from competitors and
grow brand awareness and Market share.
DOGS:
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.
The Dogs of Coca-Cola are Minute maid and Diet coke that are cash traps of the company.
Failure to deliver the expected results makes the product a source of loss for the organization,
propelling the management to withdraw future investment in the venture. Since the product is not
expected to bring in any significant capital, future investment is seen as a wastage of company
resources, which could be invested in a Question mark or Star category instead.
The BCG matrix is one of the best methods for business portfolio analysis and can help Coca-
Cola in implementing the right investment actions.
