Marketing ManagementAssignment

BCG Matrix and GE Matric of Tide

Name: Fahad ur Rehman khan (1496)

Class: Tuesday – 3 to 6

Instructor: Sir Mobasher Sandila

Introduction of TideTide (Alo, Vizir or Ace in some countries) is the brand-name of a laundry detergent manufactured by Procter & Gamble, first introduced in 1946. Tide, manufactured by Procter and Gamble, has been a part of American culture for more than six decades. During those years, the formula, packaging and advertising have changed to meet the demands of the marketplace. Let's take a look at the evolution and innovation of Tide.

In a 2009 survey, consumers ranked Tide among the three brands they would be least likely to give up during the Great Recession. The Tide trademark is an easily recognized, distinctive orange-and-yellow bulls-eye. This original logo was designed by Donald Deskey, an architect and famous industrial designer.

Currently, the Tide brand is on at least six powders and liquid detergents in the United States alone.

BCG Matrix of TideThe BCG matrix, is a device that permits to arrange and assess the items and administrations of a business. It is a choice making instrument so as to adjust the exercises of an organization among those which make benefits, the individuals who guarantee development, those which constitute the eventual fate of the firm or the individuals who are its legacy. With this instrument one can characterize the advancement strategy of the organization.

The grid will position the items/administrations in two ways:

1. The rate of growth of the market;

2. The market share of a product offered facing the competitors.

STAR:

Tide detergent has the highest market share and highest business growth which has showed a lot of growth in sales since many decades, and still it’s one of the most of the most used household amongst the household in United States and all over the world.

DOG:

Tide Stain Remover, has small market share yet low market growth because of its new product so the new product takes time to gain its value thus neither generate nor consume a large amount of cash.

QUESTION MARK:

Tide Pacs, It has a small market share in a high growth market. Tide Pacs are growing rapidly and thus consume large amounts of cash, but because Tide Pacs have low market shares they do not generate much cash. It has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows.

CASH COW

Tide Boost, has a large market share in a mature, slow growing industry. As leaders in a mature market, Tide Boost exhibit a return on assets that is greater than the market growth rate, and thus generate more cash than they consume. Tide Boost should be "milked", extracting the profits and investing as little cash as possible.

GE Matrix of TideGE-McKinsey nine-box matrix is a strategy tool that offers a systematic approach for the multi business corporation to prioritize its investments among its business units.

Market Attractiveness:

Tide, has a substantial standing within a market, as their products are gorwing and it also includes Annual market growth rate

Overall market size

Historical profit margin

Current size of market

Market structure

Market rivalry

Demand Variability

Global opportunities

Business Unit Strength:

Tide, has several business units producing the different kind of products in a same niche, the above table is evaluated. This refers to how strong the firm or SBU is in terms of the market

A market might be very attractive but the firm lacks strengths in terms of supplying the market

As with industry attractiveness a composite of industry strength is based on weighting a range of factors.

Options for each cell:

Invest for growth (cell 1)

This is a very attractive market in which the firm has great strength

Distinctive competences can be harnesses to good advantages

Recommended strategies:

-Invest for growth

-search for global opportunities

-maximise market share

-seek dominance

-concentrate on building up strength in this area

Manage selectively (cells 2 and 4)

These two cells record a high rating in either business strength or industry attractiveness and a medium rating in the other This suggests that these SBUs show some promise.

Recommended strategy:

Investment for growth

Invest to expand existing segments

Search for new segments

Build on existing strengths in order maintain competitive ability and even to challenge for leadership

Manage selectively (cells 3,5,7)

In each case the SBU has certain positive features – high in one of the dimensions or middling in both

Recommended strategy

Invest for earnings

Maintain/defend market position

Concentrate on selected segments

Specialize in niches where strengths could be built on

Invest selectively

Harvest (cells 6, 8 and 9)

In each case either market attractiveness or business strength is low and other one is only medium

Recommended strategies:

Manage for cash

Avoid unnecessary investment

Move to the most profitable segments

Prune product lines

Specialise in profitable niches

Consider exit