BARBADOS COMMUNITY COLLEGE

DIVISION OF COMMERCE

BUST 204 – STRATEGIC PLANNING

CASE STUDY – BOSTON CONSULTING GROUP MATRIX

GROUP EXERCISE

11 March, 2020

Barbados Dairy Cooperative (BDC) is examining its latest sales data for
its Sunrise products. Its four key products performed differently in
the local industry and as a result some critical decisions are to be made
concerning the corporation’s product portfolio. The sales data are:

% Share of the Market Segment for Each Product

2016 2017 2018
Sunrise Milk 25 26 24
Sunrise 10 14 20
Yoghurts
Sunrise Butter 8 4 2
Sunrise Spread 6 3 4

Sunrise milk is the oldest-established product. Sales have not risen

over the last few years, but it is in a mature market and BDC has not
promoted Sunrise Milk, yet it remains the market leader. Its
profitability as well as its cash flow remain relatively stable.

Sunrise Yoghurts were launched two years ago with a vigorous

marketing campaign in a high-profit-yoghurt market. This market
segment of health conscious customers is becoming one of the fastest-
growing segments of the market. Earnings are exciting with a potential
for greater improvement.

1
Sunrise Butter is the company’s headache, for some time it has been a
weak product in the industry with negative cash flow. The fact is that
the market for butter is declining. Frequent advertising and sales
promotion failed because of the healthy lifestyles of customers.
Butter sales are weak.

Sunrise Spread was introduced in 2012 and there was great response
and it grew as a result of competitive pricing and healthy eating habits
in a market that is showing a steady rate of growth. Cash flow is very
unstable. However, the competitors became fierce rivals and their
offensive marketing strategies are taking effect.

Using the Boston Consulting Group Matrix as an analytical tool, classify

the four products according to this theory.

(i) Justify your classification

(ii) Advise BDC what are the best decisions the corporation
should make in each case.

16 marks