When the product has already entered the market, it’s status or position in the market is usually described in the form of a BCG matrix.
A BCG Matrix was invented by Bruce D. Henderson back in 1970’s for the company he was working for (Boston’s Consulting Group). This matrix, like a regular graph, has four quadrants.
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On the x-axis, we have a relative market share, whereas on the y-axis we have market growth rate.
Depending on both of these factors, we categorize the products as Superstars, Question marks, Cash cows or Dogs.
But what do all of these mean? Have a look:
Superstars are the products that are the market leaders. They generate the most cash, and every new idea they come up has an equal hype and superiority in the market. The best example is Apple, which is the most profit generating company right now.
As the name already tells the story, question marks are those products which when enter in the market are in a very unsure state. Not even the best analysts ca predict how the buyers will react to it. It includes the new ideas or innovations.
This category includes the products that over the years have established a very solidified name in the market. They are no more threatened by the new entries and are in a very profit generating position.
For example Suzuki Mehran.
They are the products that have failed and with time has slowly wiped out of the market. The general public did not accept them and declined. For example, food items by Colgate. As Colgate was a brand related to dental hygiene, people could not take their ready to cook range, and it had to exit the market.