MGT 301 Principles of Marketing Assignment No 1 Fall Semester 2012 Due Date15-11-201

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MGT 301 Principles of Marketing Assignment No 1 Fall Semester 2012 Due Date15-11-201


Principles of Marketing (MGT 301) Fall 2012
Assignment No: 01
Total Marks: 20
Opening date: 12 November, 2012
Closing date: 15 November, 2012
TOPIC: Analysis of Business Portfolio by using Boston consulting group (BCG) Matrix
Lessons: 6 & 7
Learning Objectives:
The prime objective of this activity is to get the student familiar with the business portfolio analysis tool created by Boston Consultant Group which is known as BCG matrix and its application.
Learning Outcomes:
1. Students will learn how BCG Matrix helps businesses to make better business portfolio analysis.
2. Students will be able to conduct business portfolio analysis of Gourmet and demonstrate the profitability of each SBU of Gourmet.
3. Students will be able to comprehend the analysis, decisions, and recommendations.
THE CASE:
Today, the world has become a saturated market with thousands of products; supported by hundreds of strategies and initiated by millions of creative ideas. Now the subject matter of satisfying needs and wants has been reshaped with the creation of demand by providing innovative products with extra ordinary features/attributes. The markets with full of customers and conducive technological environment are inviting firms to expand their businesses for capturing a big pie of market share. The small as well as large corporations are expanding their businesses through SBUs (Strategic Business Units) to capture current market’s shares against competitors. Dealing in different markets with different products companies face the difficulties while investing in different SBUs. To knob this situation wisely, companies first need to analyze each SBU. Each SBU has a separate mission and objectives that can be planned independently. The SBU can be a company division, a product line within a division, or even a single product or brand. Furthermore companies should assess the attractiveness of its various SBUs and decide how much support each deserves. We have different models for designing and analyzing
the business portfolio planning but the best-known portfolio planning tool is the Boston
Consulting Group (BCG) matrix. This model has been specifically developed for
analyzing the current business situation of different SBUs of companies.
GOURMET is the largest food retail chain of Pakistan; founded in 1987 in Lahore and
started its operations as a bakery and confectioner shop. It has diversified into a versatile
food company over 25 years. It always focuses on customer’s need that’s why it is
considered as the number one brand in the market due to its best quality products and
valuable services. They are also expanding their business portfolio by introducing many
other products (dairy products, beverages, traditional halwas, candy, toffee, jams, ice
cream, ketchup, nimko) along with the existing products (Bakery and Mithai).
Some of its products have high market growth with high market share; some have high
market share but with low market growth or high market growth with low market share
while few are still far behind to achieve the higher level of customer’s satisfaction hence
not successful yet.
REQUIREMENT:
You are required to analyze the business portfolio of the following gourmet products by
using BCG Matrix:
1. Bakery
2. Water
3. Ice-cream
4. Milk
5. CSD (Gourmet cola)
6. Juices
NOTE: Your answer should be in;
1. Matrix form (As given below in Figure 1.1)
2. Provide justification for placing each product(s) in each quadrant i.e. Star, Cash
cows, Question mark and Dogs
3. Each quadrant contains 4 marks: I mark for placing the product in right quadrant
and 3 marks for justification.
Figure 1.1 BCG matrix for Suzuki Pakistan
ASSIGNMENT INSTRUCTIONS & GUIDELINES:
1. You are advised to visit the website of gourmet gourmet.
2. Make a personal visit at any gourmet franchise if accessible otherwise use your personal contacts to get the information about all gourmet products.
3. Take help from internet for collecting the information.
4. Carefully watch Lecture # 06 and 07 and consult the recommended books.
5. Above matrix is just a sample; use the same pattern for solution.
6. Attempt the assignment by yourself and it will be entertained positively
7. Copied material from any source will be marked ZERO
8. Solution should be to the point and relevant
NOTE:
Assignment received after the due date will not be considered.
Good Luck

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Idea Solution

Principles of Marketing (MGT301)

Analysis of Business Portfolio of Gormet products through BCG Matrix
ASSIGNMENT NO 1


PREPAID BY
QASIM ALI
MBS 1ST SEMESTER
MC120402441













BCG Matrix about Business portfolio of Gourmet Products




Star
CSD

Ice Cream


Question Mark
Water


Cash Cows
Milk

Bakery

Dogs
Juices


High



Market
Growth








Low
Low Market Shares High

• Stars
CSD(Gourmet Cola) has huge market in Lahore , Faisalabad and other areas of Pakistan because of its low price and quality products in competition with other brands namely Coca Cola and Pepsi.
Ice Cream
It is another Star product of gourmet creating high level of competition in market with Walls and other Ice Cream Brands again because of its low price and high quality.
• Cash Cows
Milk is another quality product from Gourmet Sweets and Bakers creating good competition with other diary brands. It is little bit expensive but better than its competitors having good sale in the market. It is also used as raw material for other diary products.
Bakery
In bakery items, Nimko, sandwichs and other fast food items are becoming popular and creating good market in the Lahore and Faisalabad.
Whereas Sweets have low market because high prices and low taste as compared with Ideal Bakers, Nirala Sweets etc

• Dogs
Gourmet sweets & bakers are struggling in sales of Juices, because mostly people want to consume fresh juices direcly from fruits others have practice for consuming brands of Nestle because of low price and high quality.
• Question Mark
Gourmet Sweets and Bakers have equal shares in market in sales of water. They have to do lot of work on this product to make it more competitive.