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

Rules for You Put All of Your Companys Products Essay erstwhile you put all of your bon tons products into their respective categories, you then consider these rules 1. Starsinvest your marketing dollars in these since they could become dominant market leaders 2. specie Cowsmilk these to provide the bills to invest in your stars and a few question marks 3. Question Marksinvest in the some promising of these as well but only a few 4. Dogscut the leash and let these go to the highest bidder for some much needed specie To illustrate, imagine that youre Coca-Cola. Your portfolio might look something like this Question Markyour energy drink brand (Full Throttle) ? Staryour bottled water (Dasani) ? Cash Cowyour namesake indulgent drink (Coca-Cola) ? Dogyour sweetened juice drink (Hi-C) As Coca-Colas CMO, you would use income from Coke to invest primarily in Dasani and Full Throttle, while face to sell off Hi-C to some private equity fund with too much cash on its hands. But be fore you rush off and fail reallocating your dinero, consider these caveats Caveat 1 Markets change with the economy and other conditions sometimes very quickly.What if consumers make a massive shift from bottled water to tap water, as many municipal governments are doing? Dasani is doomed. Or what ifTiki Bar TVuses Hi-C as a drink mixer, making it a hip and trendy drink amongst geeks overnight? Your dog is now a star Caveat 2 One companys dog is another companys cash alarm (or better). Some investors have struck gold by buying another companys dogs. In 2003, Nike bought troubled Converse for only $305 million (less than what the word-painting Iron Man earned in two months).Tips Invest for sales growth and market share. Use cash from Cash Cows to support mandatory investments. Star examples Apple = iPhone Coca-Cola = Vitamin Water Cash Cows Low Growth, High Market Share pic Foundation of the company and Stars of yesterday Generate more cash than required Extract profits by i nvesting as little cash as possible located in an industry that is mature and not growing or declining Tips Maintain the strong market position and defend your market share. Take advantage of sales volume and leverage the size of operations. tide over 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 amaze in much cash Number of dogs in country should be minimalized Business is situated at a declining stage Tips Optimize your current operations. induct 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