Rules for You Put All of Your Company’s Products Essay Example for Free

Rules for You Put All of Your Comp whatevers Products EssayOnce you put all of your bon tons products into their respective categories, you then consider these rules 1. Stars expend your marketing dollars in these since they could become dominant market leaders 2. currency Cowsmilk these to translate the currency in to spend in your stars and a few question marks 3. Question Marksinvest in the most promising of these as well but nevertheless a few 4. Dogs golf shot the leash and let these go to the highest bidder for whatever much needed currency To illustrate, imagine that youre Coca-Cola. Your portfolio top executive look something like this Question Markyour energy drink brand (Full Throttle) ? Staryour bottled water (Dasani) ? Cash Cowyour namesake soft drink (Coca-Cola) ? Dogyour sweetened juice drink (Hi-C) As Coca-Colas CMO, you would apply income from Coke to invest primarily in Dasani and Full Throttle, while looking to sell off Hi-C to some private equity f und with too much cash on its hands. But before you rush off and start reallocating your dinero, consider these caveats Caveat 1 food markets change with the economy and other conditions sometimes very(prenominal) quickly.What if consumers make a massive shift from bottled water to tap water, as many municipal governments argon doing? Dasani is doomed. Or what ifTiki Bar TVuses Hi-C as a drink mixer, making it a hip and stylish drink amongst geeks overnight? Your dog is now a star Caveat 2 One companys dog is another companys cash cow (or better). Some investors have strike gold by buying another companys dogs. In 2003, Nike bought troubled Converse for only $305 million (less than what the movie Iron Man earned in two months).Tips Invest for sales return and market share. Use cash from Cash Cows to support required investments. Star examples Apple = iPhone Coca-Cola = Vitamin peeing Cash Cows Low Growth, High Market Share pic Foundation of the company and Stars of yesterda y relent more cash than required Extract profits by investing as little cash as possible located in an industry that is mature and not growing or declining Tips sustain the strong market position and defend your market share. Take advantage of sales volume and supplement the size of operations.Support other businesses. Cash Cow examples Apple = iPods Coca-Cola = Coca-Cola Classic Dogs Low Growth, Low Market Share pic Cash traps Do not have potential to bring in much cash Number of dogs in country should be minimalized Business is situated at a declining stage Tips optimise your current operations. Get rid of all non value added activities and features. Reposition your offering to generate positive cash flow or sell this business. Dog examples Apple = Since good company should not have any dogs Coca-Cola = New Coke