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IV.

Boston Consultancy Group (BCG) Matrix


For this analysis, we will be using the subsidiary of The Coca-Cola Company in the Philippines,
namely: Coca-Cola Bottlers Philippines, Inc. to have a relative view about its products and
brands across the country.
Introduction of Coke in Philippine market:
During the 1900s, Coke has made its way to the Philippine market. It has been the leader of the
soft drinks industry in the country with 70 million consumers. The subsidiary was formed 1981
by a joint venture with San Miguel Corp. and The Coca-Cola Company. It is now currently held
By FEMSA or the Mexican bottlers of Coke, and The Coca-Cola Company. Coke was first
bottled in the Philippines in 1912 and the country has long been one of the top 10 markets for
Coke products.

Brands in the Philippines:


The brands that would be discussed would be limited according to the share they represent in the
country. There are categories where the brands will be put, such as Coke in the carbonated
category; Real life and Minute maid in the juice category; Wilkins and viva in the water category;
Samurai and Powerade in the energy drinks category. For the purpose of analyzing, the brands
mentioned were either formerly owned and under licensed by the company or are still presently
owned.

BCG Growth Matrix Analysis


The BCG matrix approach is based on the product life cycle concepts which can be utilized to
identify what priorities should be given in the product portfolio of a business level. To make sure
that the company is creating long-term value, an industry should have a portfolio of products
which contains both high-growth products in need of cash inputs as well as low-growth products
which establishes a lot of profit or cash.
BCG matrix relies on 2 dimensions: market growth and market share. The basic notion behind it
is that the higher the market share of a specific product has or the faster the products
marketability grows, the better it is for the industry. Placing appropriate products in the BCG
matrix, results in 4 categories, in the business portfolio of an industry. The four categories
include the Stars, cash cows, dogs, question marks.

STARS: HIGH GROWTH, HIGH MARKET SHARE


A. Real Leaf
With only one major competitor C2, Tea based drinks in the Philippines are just
starting to grow and thus have a good chance of overpowering its rival competitor.
It needs more R&D, advertisements, and expansion to produce a perfect taste that
would make consumers like the brand and be aware of it.

CASH COWS: LOW GROWTH, HIGH MARKET SHARE


A. Coke
It already has captured the taste that consumers are looking for, thus it no longer
needs to enhance its formula. They require little to no expenditures.
Since it has been already at the peak for centuries, and with no more expenditures
in R&Ds, the brand has already generated a thousand folds of cash from its initial
investment and is no sign of it from stopping.
The Cola based soft drink industry in itself is mature. It is neither growing nor
declining.
B. Wilkins
It is one of the top leaders in Distilled Waters industry.
It requires little to no research cost for the industry itself is just distilling waters.
It is a Convenience- staple good, it would sell itself.

QUESTION MARKS: HIGH GROWTH, LOW MARKET SHARE


A. Samurai

DOGS:
LOW GROWTH, LOW MARKET SHARE

Dogs are the cash traps.

Dogs do not have potential to bring in much cash.

Business is situated at a declining stage.

The products which are at Dogs are Diet Coke, Minute maid