School of Business

Independent University, Bangladesh

BCG Matrix: Abul Khair Group

Course: MKT201

Section: 6

Individual assignment
 BCG Matrix: Abul Khair Group

Abul Khair Group is the largest manufacturing and exporting company in Bangladesh. Even
though their business sector has expanded in various sectors, they achieved most success in Fast
Moving Consumer Goods like beverage, tea, condensed milk, cement, powdered milk, tobacco,
edible oil, steel products etc.

Stars Question Mark

High
1.Marks Full Cream Milk 1.Stella Sanitary
Powder
2. Ceramics
2. Starship Condensed Milk
3. Starship Chocolate Milk
Market share 3. Goru Marka Dhewtin
Cash Cows Dogs

1.Seylon Tea 1. Shaad Litchi Drink

2. Shah Cement 2.Shaad Orange Drink

Low
3. AKS TMT Bars

High Low
Stars: (High Growth, High Market Share): These are brands very much at their top, holding a
huge market share in very much a growing market – therefore requiring continued investment to
hold or mark up their place, as competitors continually enter the market and innovate. For Abul
Khair Group, (Marks Full Cream Milk Powder, Starship Condensed Milk, Goru Marks Dhewtin)
example of this is bestselling brand.

Cash Cows: (Low Growth, High Market Share): These are yesterday’s top products in industries
that have since reached saturation. This is arguably the most important category of brands for
companies like Abul Khair Group as they require very little further investment to generate
revenue – allowing for profits to be reinvested into Stars or Question mark brands. Marmite is a
key Cash Cow for Abul Khair Group with sales just about holding their own in the spreads
industry. Example: Seylon Tea, Shah Cement, AKS TMT Bars.

Question Mark (High Growth, Low Market Share): These can be described as tomorrow’s
breadwinners (Stars). Often relatively young brands, they are yet to maximize their potential
within the industry and so require greatest investment from the success of Cash Cow. Business in
attractive industry but holds low market share. Some will be sold-off, some will become Stars.

Dog (Low Growth, Low Market Share): These are the dead-end products whose time has been
and gone and likely most offer no future profits. Simply keeping them on the market is wasting
resources generated by Star and Cash Cow brands. Dogs should be disposed of unless they
somehow contribute to the sales of other brands/products within the portfolio.

This long-term perspective is a key strength of the BCG Matrix as a strategic tool. However,
there are still a couple of cautions to be considered when using it. Firstly, market growth may be
directly influenced by Abul Khair Group due to its market power. For example, as Starship
condensed milk is the bestselling condensed milk brand, an increase in investment by Abul Khair
Group would lead to a growth of the overall market and give the impression that the market is a
Star, when in fact it should be a Cash Cow. It can also be misleading in terms of defining
whether a market is growing or not depending on the brand’s countries of operation.

Despite the limitations, the BCG Matrix is a very simple and useful tool for portfolio managers
to review their brands and products across industries and a strategic business unit and assist in
prioritization of investment and divestment.