In-class Marketing Case 01_Ch02.

BCG and Growth Strategies (10%)

BCG - Business Portfolio Analysis

Coffee & Packed food: These are products operating in high-growth markets and with a high
market share. They are products which tend to generate high amounts of Starbucks cash. This
means the company would continue to spend money in developing and promoting their coffee
and packaged food.

Tea: Tea for Starbucks is a product which operates in a sector of high market growth but has
low market share. Because Starbucks is more popular for their coffee, their tea, like Twinings,
reflects inferior product quality or marketing to their rivals. Knowing that there is a high growth
in the tea market, Starbucks could analyse the reasons for its low market share and then
develop strategies to gain a greater share of the growing tea market.

Mugs: Are high market share goods operating in a low growth environment. This is more of a
developed market and the goods are well known, which is why they produce great net cash

Harleen Sandhu (300119338)

ADM 2320 [Y]
Ysabella (Hwa) Lee
May 18, 2020
flow. Starbucks mugs provide them with huge quantities of income according to seasonal
trends and have high quality income.

Packaged Coffee beans: Is a product which has a low marketing share and operates on a low
growth market. Packaged coffee beans from Starbucks don’t produce much cash for the
company, as customers tend to go to Starbucks for a quick coffee and food service.

Growth Strategies: Market Product Analysis

McDonald’s
PRODUCTS
Markets Current
Current Market Penetration
Selling more products in
existing markets for
McDonald’s it would be like
coupons, deals like 2 can
dine, also how they have
seasonal $1 drinks.
New Market Development
McDonald’s is global
worldwide, has many
different locations all around
the world. Where
McDonald’s is selling existing
products to new markets.
New
Product Development
McDonald’s adding a new
product to menu for existing
market such as the New
Caesar Mc wrap with Crispy
Chicken.
Diversification
Different locations of
McDonald’s sell different
products depending on
consumer needs and wants.
For example, India they sell
vegetarian food products
(vegetarian menu).

Harleen Sandhu (300119338)

ADM 2320 [Y]
Ysabella (Hwa) Lee
May 18, 2020
Subway
PRODUCTS
Markets Current
Current Market Penetration
Selling more products in
existing markets like Subway
has coupons and reward
cards.
New Market Development
Subway has expanded to
many locations around the
globe which does sell existing
products to new markets.
New
Product Development
New products made for
existing markets how Subway
has the New Southwest
Chipotle Club.
Diversification
Depending on different
locations around the world
products are made to satisfy
consumer needs and wants.
For example, cultural aspects
play a role as Subway in India
it makes many varieties like
Paneer Tikka Wraps to target
the customers in the specific
geographic location.

Citations
10 Starbucks Hot Tea Secrets You Should Know. (2020, April 26). Retrieved from
https://www.sweetsteep.com/starbucks-hot-tea-secrets/

Heartofcodes. (2019, April 5). BCG Matrix of Starbucks: How to brew the perfect coffee.
Retrieved from http://heartofcodes.com/bcg-matrix-of-starbucks/

Home: SUBWAY.com - Canada (English). (n.d.). Retrieved from

https://www.subway.com/enCA?
utm_source=google&utm_medium=cpc&utm_term=core&utm_content=Subway&utm_
campaign=ipros-FY18-National-Subway-allyear-
2018&cid=0:tx:0:0:gserp:0&segment_code=0&gclid=CjwKCAjw5Ij2BRBdEiwA0Frc9cHSf_
O3zQcdxzsak6AGOSocUe7pKBuV_VrrAITcRXyyZ5VhUnq54RoCW_EQAvD_BwE

Home: SUBWAY.com - India (English). (n.d.). Retrieved from https://www.subway.com/en-IN

McDonald's. (n.d.). Retrieved from https://www.mcdonaldsindia.com/

Melody. (2016, February 1). What happened to the free tall coffee on the side of the Starbucks
coffee package? What are stars? Retrieved from
http://www.starbucksmelody.com/2014/08/10/free-tall-coffee-phased-out/

Harleen Sandhu (300119338)

ADM 2320 [Y]
Ysabella (Hwa) Lee
May 18, 2020
New packaging comes to Starbucks Stores. (n.d.). Retrieved from
https://www.starbucks.com/promo/package-art

Starbucks Essentials. (n.d.). Retrieved from

https://www.starbucks.com.sg/coffeehouse/merchandise/starbucks-essentials

Starbucks' BCG Analysis. (n.d.). Retrieved from

https://prezi.com/8cvrorgxtj6r/starbucks-bcg-analysis/

The Ultimate Guide to Starbucks Coffee Recipes ebook by Paul Zara. (n.d.). Retrieved from
https://www.kobo.com/ww/en/ebook/the-ultimate-guide-to-starbucks-coffee-recipes

Unknown. (1970, January 1). STARBUCKS PRODUCT PORTFOLIO ANALYSIS. Retrieved

from http://abhinavchoudhary03.blogspot.com/2017/02/starbucks-product-portfolio-
analysis.html

Your Favourite Burgers, Fries & More: McDonald's Canada. (n.d.). Retrieved from
https://www.mcdonalds.com/ca/en-ca.html

Harleen Sandhu (300119338)

ADM 2320 [Y]
Ysabella (Hwa) Lee
May 18, 2020