BCG MATRIX OF PARLE

The BCG matrix method is based on product life cycle theory that determine the product portfolio of a unit which
contains both high growth products & low growth product having 2 Dimensions: Market share & Market growth.
Advantages Of BCG Matrix

 To evaluate balance in the firm’s current portfolio of Stars, Cash Cows, Question marks & Dogs
 To decide & prepare for future actions
 Applicable for large companies that seeks volume & experience effects
 It is simple & easy to understand.
 1. STARS: (High growth & High market share)
 As per the parle company’s survey, parle G is touching the peek of success & therefore comes under the STAR category thereby the co. can
invest a large sum for its upliftment

 2.CASH COWS:( Low growth, High market share)

 Profits & cash generation should be high due to its low growth, the investment needed to be low to keep profits high
 The products like krackjack, pralemarie, hide & seek comes under this category

 3.Question Mark: ( High growth, Low Market share)

 It has worst cash characteristics because of high demands & low returns due to low market share makes the co. to sell off & deliver cash.
 Products like CHOX, NIMKIN KREAMS GOLD, PARLE 20-20, MONACO JEERA comes under this.

 4. DOGS: ( Low growth, Low market share)

 The products like SIXER, JEFFS, MUST BITES , MUST STIX & MUST CHIPS conclude with DOGS as they need to be divested because
they are doing no good for the co. & have remained as an liability.
 ANSSOFF MATRIX OF PARLE

•Parle-G has viably utilized this instrument to develop a procedure for accomplishing
competitive advantage in the industry and various markets it operates in.
•Recently, Parle-G has made use of the four strategies of Ansoff matric to maintain
competitive advantage and leadership position.
1. Market development strategies
* Advertising and promotion of products:
• One of the most popular means of developing a market is to use marketing strategically.
• By making use of advertising and marketing communications, the company will be able to disseminate information about its
product, and the various benefits of consumption to its target market easily.
• Also, the use of social media for marketing will, at the same time allow the company to communicate directly with the
consumers, and answer their queries.
* Education about product consumption:
• The company can make use of widespread marketing campaigns using traditional means as well as means of social media to
increase awareness of their product amongst the target market.
• This task of educating the markets will give the company a first-mover advantage, as well as develop important functional
appeals for the product.
2.Market penetration strategies
* Geographical expansion :
• The company can expand into other markets through its previous experience, as well as through partnerships and contracts with
other agents and parties.
• The company can also develop subsidiaries, as well as offer its products through franchising as well as licensing.
• The geographical expansion is suggested into emerging economies because of the favourable income levels of the consumers, as
well as the growing infrastructure.
* Increased number of retail outlets and retail presence :
• The company can penetrate existing markets by offering more shops or making its product more widely available.
• This may be done through increasing the accessibility of the product at places where the target consumers are expected to
purchase from, as well as improving the interaction of the product with consumers at different touchpoints.
* Online retailing :
• Another means of improving market penetration is through online retailing. Parle-G can stock its products on online retailing
sites locally and internationally.
• This would help the company improve sales, accessibility, as well as reach higher levels of target consumers. All of this, in turn,
would increase market penetration.
• Besides, it would also help the company maintain and control costs for Parle-G, and thereby help it achieve cost leadership in the
industry
3.Product development strategies
* Research and development :
• To be able to develop new products, the company should have a focused interest and budget sending allocated to new product
research and development.
• This research would take a basis in the consumer market and the overall market trends, to identify the gap in consumer demands,
and market availability of different products.
• The new product would then generally be aimed towards fulfilling this gap.
* New product development labs :
• The company should have dedicate incubation labs for the development of new products.
• This means that this development should be a focused and separate entity that should focus on the company’s innovation.
• The company should also hire the right talent for business development and innovation to be able to achieve targets and goals
accordingly.
* Market testing :
• New products should follow PD cycles for testing before launching in a market.
• This will ensure that the company can fix any loopholes present in the product, as well as incorporate positive feedback.
* Strategic Marketing :
• The company should also have a focused and strategic budget for marketing and communications allocated for new product
development.
• This is because the company will need to increase the appeal, as well as develop functional and emotional appeals and
characteristics of the new product.
• Communicate with the consumers to enhance sales as well as increase likeability and rate of consumption and trial.
4. Product penetration strategies
* Acquiring personally owned retail to strengthen its presence :
• One way of increasing product penetration is that the company directly manages and controls sales operation through owned
retail.
• This will give the campy leverage over communication, as well as product stocking and placement.
* Diversification of portfolio :
• The company can further expand its portfolio as a means of product penetration.
• The expansion of the portfolio will allow the company to reach a different and diverse target group, thereby increasing the overall
share of the pie for the company
• This will also increase Parle-G ’s products’ accessibility to different consumers.