BCG Matrix Application: Coca-Cola Company's Marketing Strategy

This report provides an analysis of Coca-Cola Company's marketing strategy using the BCG Matrix. The BCG Matrix, also known as the growth-share matrix, is a corporate planning tool used to evaluate a company's brand portfolio. The report categorizes Coca-Cola's products into four types: Cash Cows, Dogs, Stars, and Question Marks, based on market share and growth potential. It discusses how Coca-Cola uses the BCG model to improve its operations and product distribution globally. The analysis highlights the strategic implications of each category, such as investing in Stars, maintaining Cash Cows, and carefully managing Question Marks and Dogs. The report concludes that the BCG Matrix is a valuable tool for Coca-Cola in creating lasting marketing plans and developing profitable products.

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BCG Matrix of Coca-Cola Company
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BCG matrix in relation to Marketing Strategy
BCG matrix is also known to be the matrix of growth-share. The matrix of BCG is the
corporate scheduling device that is utilized to represent the brand assortment of an organization.
It is also used to represent the SBUs on the quadrant alongside relative axis of share of market
together with the pace of growth of the market (Jain, 2015). BCG Model is the structure that had
been established by Boston Consulting Group with the significant purpose of evaluating the
planned position of the business brand assortment along with its prospective. In the marketing
sector, the BCG Model is responsible for classification of the business portfolio into four diverse
groups (Resources & Matrix, 2019). The categorization of such business portfolio is based on the
attractiveness of industry which is the rate of growth of that industry and competitive position
that stands out as relative market share. Additionally, industry attractiveness and competitive
position disclose probable abundance of the business collection concerning needed fund to offer
support to that component as well as the cash it generates in the process of marketing (Yadav,
2014). Hence, analysis through BCG matrix in marketing remains to be an appropriate strategy
that is used to aid in understanding the brand that the organization should spend in and which
products should be deprive. Therefore, primary objective of this research is to describe the
principle of the BCG matrix concerning marketing strategy while offering different examples
that illustrate the clear understanding alongside the application. Analysis through BCG matrix in
marketing remains to be an appropriate strategy that is used to aid in understanding the brand
that the organization should spend in and which products should be deprived.
Example of BCG Matrix in reference to Coca-Cola Company
BCG Matrix is utilized by Coca-Cola Corporation to categorize its trade units or yields
into four diverse types that comprise of Cash Cow, Dogs, Stars, alongside Question Mark. The

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market share, prospect for growth and annual sales are taken into consideration (Teryim &
Aondona, 2014). Besides, Coca-Cola Corporation remains to be the multinational corporation
that has been operating for over a century. The company uses the BCG model to improve on how
it does its operations by supplying its products to different customers in various nations
worldwide (Elmore, 2013). However, to develop the BCG model, the growth of the company and
its market is drawn on the y-axis and x-axis respectively.

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Figure 1 - BCG Model. Retrieved from BCG Matrix | Principles of Marketing, 2019
Cash Cow
These stand out to be goods that are in high progress marketplaces with a huge share of
the market. In the Coke Company, yields or units of business that contain the huge percentage of

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the marketplace and are also termed to develop in the prospect are situated as stars (Resources &
Matrix, 2019). The cash cow products need less investment of cash together to produce extra
cash than needed by management of Coke Company (Karnani, 2014). For instance, Coke has
been the market leader in soft beverages and the significant cash generator for the Coke
Company.
 Dogs
They are the yields with low advancement of the market within the operations of the
Coke Company. They comprise of low advancement or small marketplace share of coke yields.
Dogs have very minimal opportunities for presenting any advancement in operations of
organization (Yadav, 2014). The venture policy in marketing for coke products has to be healthy
as there are cases when the companies can fail to make any profit during its operations. Besides,
these trading units or products can reduce the profit earned by the company in different markets
where it distributes its beverage products (Yao, 2017). For instance, thriving demand for
beverages products due to increasing in need for low calorie as well as beverages of great health
and snacks is what is leading to cases of the decline in sales of different brands of Coke.
 Question Mark
They refer to different goods that devise the operation of the Coke Company that remain
to exist within the cycle of progress while the corporation is aiming to develop an important
position in the manufacturing sector. The small marketplace share attained by the corporation
formulates the prospect position for the product to be hesitant. Therefore, making investments in
those kinds of areas are viewed as the highly dangerous decisions in operations (Mo, Park, &
Lee, 2018). The goods in this sector can improve its operations of the company to turn to stars or
cash cow or can turn out to be the wrong venture. For instance, Coke Corporation is spending

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huge funds intending to develop awareness concerning different products (Gabrielli, 2018). Such
goods are presently in the first or advancement state of the production state of the product and
contain the considerable prospective to expand (How to use the BCG Matrix - Smart Insights
Digital Marketing, 2019). Therefore, developing healthier existence trends along with rising
marketplaces have been able to increase the desire of company to invest in improving its brand.
The investment leads to significant funds in quality beverages drinks to distinguish itself from
rivals such as PepsiCo while improving the awareness of brand as well as improving the way
products is shared around different markets.
 Star
The product or business units that comprise of the high percentage of the market in high
advancing corporations are known to be stars of the coke company. For instance, the company
targets on improving its products. Kinsley along with Dasani that are presently the bottled water
brands produced by the management of Coke Company are being offered in different markets in
the global society (Faisal, 2016). However, Kinsley is quite the famous bottled brand of water in
Europe and Asia nations, but Dasani has the quite firm base of the market in the US. The
differences in the increasing quest for low calories together with quality drinks, the bottled
watered corporation is presently going through evolution cycle (How to use the BCG Matrix -
Smart Insights Digital Marketing, 2019). Hence for the company to cater to a different segment
of customers and their desires, Coke is focusing on initiation of diverse variants of the bottled
brand of water such as Kinsley alongside Disannul sparkling water to cater to affluent clients.
BCG Matrix in relation to marketing strategy
BCG stands out to be named for the Boston Consulting Group that created it to be used in
business operations. BCG Matrix is the standard conceptual model in marketing as it is used

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when an individual is reviewing his or her business strategy (BCG Matrix | Principles of
Marketing, 2019). The model provides the way for different organizations in Canada to review
their services, products, together with brands based on the competitive position of the product. It
also helps in reviewing brands based on how it is performing in comparison to competitor
products within the market (Yadav, 2014). The utilization of BCG matrix by Coke Company to
plot their products enable them to see at a glance the products that they need to invest in, those to
develop, and products to discontinue. Besides, the BCG matrix was developed over four decades
ago by the Boston Consulting Group and it has remained very much alive as the strategic
planning device for marketing (Øivind Madsen, 2017). Besides, the BCG Model is grouped into
four different quadrants founded on the examination of the development of the marketplace and
relative share of the market.
Conclusion
It is apparent that the components of BCG Model assume that the relative market share of
product or brand is the indicator of its cash generation potential. The product that comprises of
the high percentage of the market typically has a high return of cash. Such products are also to
have a firm position relative to its major rivals in operations. The rate of market growth is the
indicator of cash outflows during the process of business operations. In most cases, a high
standard of growth means the product is earning well, but these products always need the
massive injection of cash to aid in the process of stimulating the prospective growth. Hence,
setting these numbers against each other offers a better indicator of the viability of the product
than measuring the generation of cash flow alone. It is evident from the above examination that
BCG Matrix is useful in marketing strategy for companies such as Coke Corporation. The model
aids in the creation of lasting marketing plan that lead to the development of more profitable

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products. It s important to note that BCG Matrix can be used to visualize the kind of marketing
channels that can aid to grow the corporation and the expected RIO per channel. It is simple to
relate the BCG concept to different segments excluding the organization’s product policy. For
instance, this concept was developed as an instance of how the firm might assess its goods or
assets in several marketing channels.

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