BCG MATRIX:

Boston consulting group (BCG) approach, a company classifies all its SBU’s according to the
growth–share matrix. The growth-share matrix defines four types of SBU’s.
1. Star (high market share and market growth).
2. Cash cow (low market growth and high market share).
3. Problem Child (low market share and high market growth).
4. Dogs (low market share and market growth).

BCG MATIX OF PepsiCo.

Introduction:

Pepsi is the world renowned brand. It is a very well organized multinational company, which
operates almost all over the world. They produce, one of the best carbonated drinks in the world.
Pepsi is a symbol of quality and service, all over the world. Pepsi is producing Cola for more
than 100 years and it has dominated the world market for a long time. Its head office is in New
York. The market in Pakistan is surely dominated by Pepsi. It has proven itself to be the No.1
soft drink in Pakistan. Now days Pepsi is recognized as Pakistanis National drink.

Nature of Business:
Pepsi is a FMCGS (Fast Moving Consuming Goods) produced in bulks. Pepsi is consumed
regularly that’s why Plants work continuously 24 hours.

Pepsi Products:
 Pepsi (cola drinks).
 7UP (cola drinks).
 Miranda (cola drinks).
 Mountain Dew (cola drinks).
 Diet Pepsi (cola drinks).
 Slice (juice).
 Aquafina (Mineral Water).
BCG MATRIX OF PEPSI:

STAR: CASH COW:

1) Pepsi. 1) Aquafina.
2) Mountain Dew.
3) Slice Juice.

PROBLEM CHILD: DOGS:

1) Diet Pepsi. 1) Pepsi Max.
2) Miranda.
3) 7 Up.
 Category RMS MGR Growth rate
Pepsi 16%

Mountain dew 13%

Slice Juice

Aquafina

7up

Diet Pepsi

Pepsi Max

Product Life Cycle:

The course of product sales and profits over its lifetime, it involves five distinct stages product
development, introduction growth maturity and decline.

When Pepsi entered the market they had just invested in market in the 1st two stages of product
life cycle and earned nothing. Then in the stage of growth when early adopters buy the products,
Pepsi was in No profit No loss situation but now Pepsi is on maturity stage of product life Cycle
and is earning a lot of profit.

Pepsi never entered the decline stage.

Conclusions:

• Pepsi lies in stars (maturity) due to high market share that is 72% in Pakistan and high
industry growth rate. With the passage of time they are capturing more market share by
enhancing their product line.
• They are in stars because of one main reason that is PepsiCo is financially strong. Their
brand name is well known all over the world and have the strong positive brand image in
the mind of customer.
• Pepsi is convenient product where ever you go you can find each brand of Pepsi cola.
• The main advantage of Pepsi cola for lying in star is that they are targeting every type of
customer and these customers are increasing market share for Pepsi cola.