Do you like chocolates? Oh! Why are we even asking this, almost every student on the planet loves them, we guess you too? So, how do you decide which chocolate to eat? Most probably, you compare them based on various factors such as taste, price, ingredients, etc. Is the comparison easy? No. It is a lot more difficult than anybody could imagine. You know what, the brand managers of your favorite chocolate brands do these comparisons and analysis regularly to determine where the resources should be allocated and how to market the product. The students, like you, who come to us in need of brand management assignment help, wonder how is this done. Then, we explain to them about BCG matrix, an easy chart used by marketing wizards across the globe. Since you are required to make it in the document, we have decided to elaborate the same through this blog.
Let’s begin our explanation of the BCG matrix with a general overview about what does it mean.
BCG Matrix: What It Is?
BCG matrix is a chart formulated by Bruce D. Handerson in 1970. It is used by companies to decide where to deploy their resources and how to market the brands effectively.
Now that you know what the BCG matrix chart is, you must be excited to know how to make one in the assignment, right? Well, go through the next segment to get familiarized with the best step-by-step guide to create it.
The Ultimate Guide to Create BCG Matrix in Brand Management Assignment
Since the deadline is approaching, let’s not waste time. Here we share the steps you require to make BCG matrix chart in the assignment. Go through them with the utmost attention without letting any distraction hamper your concentration.
Step # 1 Select the unit:
How can you analyze something when you don’t know what needs to be analyzed? According to our experts, doing this is impossible. Therefore, if the professor has not assigned a particular product line, the process of making the BCG chart begins with deciding what brands you’ll be analyzing and the analysis unit.
Step # 2 Describe the market
Now that you have decided the brands or their components you wish to analyze, the next step is to describe the market under which it falls. Remember, an incorrect description can never lead to a correct analysis. For example, if you define Lamborghini’s market as passenger car’s segment, then you’ll never be able to analyze it accurately. The cars like these fall within the purview of luxury car markets.
Step # 3 Compute the relative market share
After defining the product market, the next step of the process is to calculate the relative market share. Confused about how to do it? Well, do not be. There is an easy formula for its computation. Here we share the same.
Relative Market share of a brand = The Brand’s share or revenues/ Share or revenues of the competitive brand
Plot the result on the graph’s X-axis.
Step # 4 Calculate the market growth rate
Now that you have calculated the relative market share, the next crucial step is to calculate the market growth rate. Here you need to compute how much the industry has grown over the years as a whole. Do not know how to do it? Well, you can do it easily by analyzing the growth rate of the leading brands in the industry.
Step # 5 Put the measures onto the matrix
Celebrate. Why? Well, you have reached the last step of making the BCG chart. Now, you have to put all the measures calculated in the above-mentioned steps onto the four coordinates of the matrix. Wondering what are they? Well, here we have defined each one of them.
Cash Cows: This coordinate of the BCG matrix relates to the brands having large market share in an industry with a slow growth rate.
Dogs: This coordinate of the matrix consists of the brands having less market share in an industry with slow rate of growth.
Stars: This coordinate belongs to the giant brands having a large market share in an industry with a fast growth rate.
Unknowns: This coordinate is also known as the problem children and belongs to the brands having small market share in the fast-growing industry.
Now can you make the BCG matrix in the assignment effortlessly? We hope, yes. But, if your views are different or you need any other assistance to compose the document, then feel free to contact us for the best assignment writing services. Our experts are subject wizards, they’ll be your helping hand and guide you in the right direction.