5.19 : Brand and Product Portfolio

The Growth Share Matrix is a strategic tool for managing brands and product portfolios. Based on market growth rate and market share, it categorizes products into four quadrants—Stars, Cash Cows, Question Marks, and Pets. Stars are high-growth, high-market-share products with the potential to become Cash Cows, which are low-growth, high-market-share products that generate surplus cash. Question Marks are high-growth, low-market-share products requiring substantial investment, while Pets are low in both growth and market share, barely generating enough cash.

This matrix assists in:

• Portfolio analysis by helping businesses turn Question Marks into Stars using funds from Cash Cows.
• Resource Allocation as businesses might invest more into 'Stars' and 'Question Marks' while maintaining 'Cash Cows' and phasing out 'Pets.'
• Strategic Planning as marketers can develop strategies for each category to maximize profit and growth. For example, they could use 'Cash Cows' revenues to fund potential 'Stars.'
• Performance Evaluation is where businesses can see if a product moves from a 'Question Mark' to a 'Star' or if a 'Star' falls to become a 'Pet,' indicating the need for revised strategies.
• Competitive Advantage: Marketers can identify opportunities for competitive advantage by understanding their product positioning through the Growth Share Matrix.