Frito Lay generates the most cash flow as a cash cow for Pepsico with 58.8% of the US market share. Pepsi remains a star despite an 8.4% market share due to its strong brand equity. Diet Pepsi, Pepsi Max and Quaker are question marks as it is uncertain if the diet food and soda industry will grow. Seasonal products like Pepsi Real Sugar are dogs that resulted in losses. An ideal portfolio based on the BCG matrix has cash cows to generate funds, stars to ensure future success, and question marks that can be developed into future stars through investment.
Frito Lay generates the most cash flow as a cash cow for Pepsico with 58.8% of the US market share. Pepsi remains a star despite an 8.4% market share due to its strong brand equity. Diet Pepsi, Pepsi Max and Quaker are question marks as it is uncertain if the diet food and soda industry will grow. Seasonal products like Pepsi Real Sugar are dogs that resulted in losses. An ideal portfolio based on the BCG matrix has cash cows to generate funds, stars to ensure future success, and question marks that can be developed into future stars through investment.
Frito Lay generates the most cash flow as a cash cow for Pepsico with 58.8% of the US market share. Pepsi remains a star despite an 8.4% market share due to its strong brand equity. Diet Pepsi, Pepsi Max and Quaker are question marks as it is uncertain if the diet food and soda industry will grow. Seasonal products like Pepsi Real Sugar are dogs that resulted in losses. An ideal portfolio based on the BCG matrix has cash cows to generate funds, stars to ensure future success, and question marks that can be developed into future stars through investment.
Cash Cows – With a market share of 58.8% in the US, Frito Lay is the biggest cash cow for Pepsico. Stars – Even though Pepsi’s share in the market has been reduced to 8.4%, it’s still the star for Pepsico because of its brand equity. Other stars are Aquafina, Tropicana, Gatorade, and Mountain Dew. Question Marks – Since it’s a mystery whether the diet food and soda industry will boom in the future and will Pepsico’s products will find their place or not, Diet Pepsi, Pepsi Max, Quaker, etc. fall in the question marks Dogs – seasonal products like Pepsi Real Sugar, Mtn Merry Mash-up wich gave losses to the companie.
2. What would be an ideal composition of a product portfolio
(several products) of a company based on the BCG matrix?
A diversified company with a balanced portfolio is in the ideal
position to use its strengths to capitalize on its growth opportunities and potential. A balanced portfolio is one which has: Stars to assure future success Cash cows to bring in funds for future growth Question marks that can be turned into the next stars with some attention and investment