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Objectives:
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To understand the Boston Matrix
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To understand how businesses use the Boston Matrix
The Boston Matrix is a well-known tool for the marketing manager. It has two
controlling aspects: relative market share (meaning relative to your
competition) and market growth.
Businesses would look at each individual product in their range (or portfolio)
and place it onto the matrix. They can then plot the products of their rivals
to give relative market share.
| Sectors of the Boston matrix |
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Dog
Products in this area are in a market with low growth and the individual product
has a low market share. Spam has a low market share in the cold meats market
and could be described as a "dog".
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Problem child
Products in this area are in a market with high market growth, but they have
failed to establish a significant market share. The product may be inferior to
that of competitors or the businesses’ marketing may be inferior. A business
needs to analyse their failure to gain market share and develop strategies to
overcome the problem. Apple Mac computers were a problem child in the 1980s.
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Star
Products in this area are in a market with high market growth and they have a
high share of the market. These are highly successful products such as Vodafone
mobile phones.
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Cash cow
Products in this area are in a market with low market growth and they have a
high market share. These tend to be mature products in mature markets that
provide companies with solid profits year in and year out, eg Kit Kat.
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Plot the product life cycle for each of the sectors in the Boston Matrix.
Consider similar products to the Shinkendo Oi and plot them onto the Boston
Matrix.
Which sector of the Boston Matrix do the How-To project team hope that their product will be in?
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