all of the following are limitations of the bcg matrix except

This is arguably the most important category of brands for companies like Unilever as they require very little further investment to generate revenue – allowing for profits to be reinvested into Stars or Problem Child brands. Despite its existing stature, continued investment in the patented TESS technology (which uses the natural essence pressed from freshly picked leaves) enabled a global re-launch of Lipton Yellow Label that fuelled growth of 5.6% in the last two years.Ĭash Cow (HIGH Market Share, LOW Market Growth): These are yesterday’s top products in industries that have since reached saturation. For Unilever, a prime example of this is Lipton, the world’s best selling tea brand.

Star (HIGH Market Share, HIGH Market Growth): These are brands very much at their peak, holding a large market share in very much a growing market – therefore requiring continued investment to hold or enhance their position, as competitors continually enter the market and innovate. The premise of the BCG Matrix is that all products or brands can be classified as one of the following categories, based on its market share and market growth: To answer this question, the Boston Consulting Group (BCG) Matrix (also known as the ‘Boston Matrix’) is a very useful marketing tool in understanding portfolio management. If this were the case, the question arises as to why Unilever retains such a large portfolio of brands and why future “selective acquisition” is highlighted in its most recent annual report? It is often said however that the company focuses on just 14 brands – those that each generate sales of €1+ billion. Unilever is officially the world’s third largest consumer goods company, behind Procter & Gamble and Nestle, having generated a turnover of €49.8 billion in 2013, across its staggering 400+ brands.

All of the following are limitations of the bcg matrix except