INSTITUTE OF PROFESSIONAL PSYCHOLOGY

ASSIGNMENT

SUBJECT: PRINCIPLES OF MARKETING

TEACHER: MS. TOOBA SALEEM

NAME: KAINAT RAHIM

CLASS: 3B

ENROLLMENT NUMBER: 05-171201-062

SUBMISSION DATE: 31 - MARCH – 2021

QUESTION # 1:
DEFINE BCG MATRIX AND POSITIONING STRATEGIES?

QUESTION # 2:
EXPLAIN WITH EXAMPLES AFTER PLOTTING THEM ON CHARTS.

BCG MATRIX:

BCG matrix is designed to help with long-term strategic planning, to help a business consider
growth opportunities by reviewing its portfolio of products to decide where to invest, to
discontinue or develop products. It's also known as the Growth/Share Matrix. The Matrix is
divided into 4 quadrants based on an analysis of market growth and relative market share, as
below:

STARS:

Stars are high-growth, high-share businesses or products. They often need heavy investments
to finance their rapid growth. Eventually their growth will slow down, and they will turn into
cash cows.

CASH COWS:

Cash cows are low-growth, high-share businesses or products. These established and
successful SBUs need less investment to hold their market share. Thus, they produce a lot of
the cash that the company uses to pay its bills and support other SBUs that need investment.

QUESTION MARKS:

Question marks are low-share business units in high-growth markets. They require a lot of
cash to hold their share, let alone increase it. Management has to think hard about which
question marks it should try to build into stars and which should be phased out.

DOG:

Dogs are low-growth, low-share businesses and products. They may generate enough cash to
maintain themselves but do not promise to be large sources of cash.
 EXAMPLE 1

COLGATE PALMOLIVE:

This is the detailed BCG matrix analysis of Colgate-Palmolive Company which is one of the
renowned company operating in consumer goods industry.

STARS:

Colgate-Palmolive Company has some products that can be identified as stars due to the
significant market share, along with the market share growth potential of these products. The
mouth wash range offered by Colgate is one such example as it is a growing segment of the
oral healthcare industry. 

CASH COWS:

For Colgate-Palmolive Company, the cash cow includes its toothpastes and toothbrush range
which has been a steady source of earning for the firm from the past decades. The financial
downturn has affected the consumption of other products, but the demand of toothpaste and
toothbrush has retained a steady pace. The large market share has helped Colgate-Palmolive
Company to be positioned as a significant toothpaste supplier in the US as well as other
regions across the globe.

QUESTION MARKS:

In case of oral healthcare products, Colgate-Palmolive has not been able to create a similar
strong market presence through its toothpaste for kids. In comparison to the toothpaste
manufactured for adults, the sale of children’s toothpaste has not achieved similar results. 

DOGS:

For the company, the products that can be considered as Dogs include Colgate toothpowder
that has not been able to achieve significant demand in the target market. The consumers
have been more interested in buying toothpastes and mouth wash products rather than
spending money on purchase of Colgate tooth powder. In addition to the tooth powder, the
company has not been able to achieve strong sales in the domain of talcum powder. Another
issue that has reduced the growth chances of Colgate talcum powder is the complaints about
the quality of the product and the issues it was causing among the users.

Below is the picture-oriented BCG chart of Colgate Palmolive.

STARS QUESTION MARK

Colgate plax peppermint fresh

Colgate plax freshmint
Kid’s toothpaste range
CASH COWS DOGS
Tooth powder

Colgate talcum powder

 EXAMPLE 2

PROCTER AND GAMBLE (P&G):

STAR PRODUCT:

Gillette, Pantene, head & shoulders, pamper and whisper is the tart product of proctor and
gamble. These products can be seen as market leading products. These products need a lot of
investment to retain their position, to support further growth as well as to maintain its lead
over competing products. That being said, the above mentioned products also generate a lot
of income due to the strength they have in the market.

CASH COWS PRODUCT:

for the company, proctor and gamble the cash cows are a range of different products that
include ariel, Vicks, tide and oral-B. These product enjoys a dominant position in market that
is generated from economies of scale.

QUESTION MARK PRODUCT:

the question mark product for proctor and gamble is Olay, specially in south Asian counties
like Pakistan, India, Bangladesh etc. This product is in a high growth market but do not seem
to have a high share of the market. 

DOGS PRODUCT:

Products classified as dogs always have a weak market share in a low growth market. These
products are very likely making a loss or a very low profit at best. These products can be a
big drain on management time and resources. This is the reason that the dog product for the
company P&G is ambi pur.

Below is the BCG matrix chart of P&G. pur.

 STARS QUESTION MARK

 Gillette  Olay

 Pantene

 Head & shoulders

 Pamper

 Whisper

CASH COWS DOGS

 Ariel  Ambi pur

 Vicks

 Tide

 Oral – B
 POSITIONING STRATEGY

MORE FOR MORE:

More-for-more positioning involves providing the most upscale product or service and
charging a higher price to cover the higher costs. A more-for-more market offering not only
offers higher quality, it also gives prestige to the buyer. It symbolizes status and a loftier
lifestyle. Four Seasons hotels, Patek Philippe watches, Starbucks coffee, Louis Vuitton
handbags, Mercedes automobiles, Sub Zero appliances—each claims superior quality,
craftsmanship, durability, performance, or style and therefore charges a higher price.

MORE FOR THE SAME:

A company can attack a competitor’s value proposition by positioning its brand as offering
more for the same price. For example, Target positions itself as the “upscale discounter.” It
claims to offer more in terms of store atmosphere, service, stylish merchandise, and classy
brand image but at prices comparable to those of Walmart, Kohl’s, and other discounters.
Lexus can also be taken as an example. It offers more value, being a luxury car brand, while
not claiming exceptionally higher prices, in contrast to competitors such as Mercedes. The
Infinity is another example because Infiniti was the first to attempt to uproot major luxury car
in much less cost than "More For More" brands such as Mercedes, BMW and Cadillac. 
Offering more car, for the same (and usually lower price), these brands were able to take
away more and more market share. I Projector, a proposed built-in projection feature for
Apple devices that was created by a marketing group, demonstrates this value proposition.
the built-in projection feature would not increase or decrease the price of the Apple devices,
but would still manage to present the consumers with a valuable benefit that allows them to
more easily share information. Similarly, in cosmetics industry Jeffree star cosmetics gave
much better quality and product from kylie cosmetics in the same price.

THE SAME FOR LESS:

Offering the same for less can be a powerful value proposition— everyone likes a good deal.
Discount stores such as Walmart and “category killers” such as Best Buy, PetSmart, David’s
Bridal, and DSW Shoes use this positioning. They don’t claim to offer different or better
products. Instead, they offer many of the same brands as department stores and specialty
stores but at deep discounts based on superior purchasing power and lower-cost operations.
Other companies develop imitative but lower-priced brands in an effort to lure customers
away from the market leader. For example, Amazon offers a line of Kindle Fire tablets,
which sell for less than 40 percent of the price of the Apple iPad or Samsung Galaxy tablet.
Amazon claims that it offers “Premium products at non-premium prices.”

LESS FOR MUCH LESS:

Less-for-much-less positioning involves meeting consumers’ lower performance or quality

requirements at a much lower price. For example, Uber, the global leader of the app-based
taxi booking service is far cheaper than any local taxi service like Careem. Another example
of companies that have adopted this proposition is Thred-up, the world's largest online thrift
and consignment store. They operate on donations or the buying back of products from
consumers. These stores then sell the clothing at extremely low prices, which they are able to
do because they do not incur high costs when they are gathering the products they are selling.
In exchange for the low prices, customers purchase clothing that is used and considered lower
quality than clothing that is bought “off the rack” Or new. The people who are unable to
spend large sums of money for high quality and those who value low prices over quality help
the less-for-much-less proposition companies stay alive. Similarly thrift stores like posh
mark, goodwill are great examples of poor-quality items in a much much cheaper rate.
Wholesale store like china-brands is also an example for ‘less for much less’ value
proposition where you can find a lot of grocery items though low quality in half price in
comparison to other supermarkets.

MORE FOR LESS:

Strategy where companies offer more to their customers at lower prices. Companies offer
superior product selection and service at lower prices. Many companies claim to do this. And,
in the short run, some companies can actually achieve such lofty positions. For example,
when it first opened for business, Home Depot had arguably the best product selection, the
best service, and the lowest prices compared with local hardware stores and other home-
improvement chains. Other examples of more for less are cosmetics companies like Rivaj,
glamourous face, miss rose and BH cosmetics have value proposition of more in quality and
quantity with less price are competing with high-end brands like MAC etc. though having a
different target market these make-up and skin care brands are one of the leading companies
in drug store makeup industry.
 MORE SAME LESS

 FOUR SEASONS HOTEL  HOME DEPOT

 TARGET
 PATEK PHILIPPE  BH COSMETICS
MORE WATCHES  LEXUS
 MISS ROSE
 STARBUCKS COFFEE COSMETICS
 INFINITY

 LOUIS VUITTON  GLAMOROUS

 I PROJECTOR
HANDBAGS FACE COSMETICS

 JEFFREE STAR
 MERCEDES  RIVAJ
COSMETICS
AUTOMOBILES COSMETICS

 SUB ZERO APPLIANCES

 WALMART

 BEST BUY
SAME

 PETSMART

 DAVID’S BRIDAL

 DSW SHOES

 UBER

LESS  TRED UP

 POSHMARK

 GOODWILL

 CHINA BRANDS