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Performance Analysis Lecture by Murad Rattani Oxford College of London.

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Presentation on theme: "Performance Analysis Lecture by Murad Rattani Oxford College of London."— Presentation transcript:

1 Performance Analysis Lecture by Murad Rattani Oxford College of London

2 Performance Analysis Performance Analysis of a business or a company can be done by two methods: 1.Boston Consulting Group (BCG) 2.Product Life Cycle (PLC)

3 Boston Consulting Group

4 STARS Companies operating in higher industry growth rate with high market share. CASH COWS Companies operating in low industry growth rate with high market share.

5 Boston Consulting Group QUESTION MARK Companies having low market share and high industry growth rate. DOGS Companies having low market share in a low industry growth rate industry.

6 Product Life Cycle Stages of Product Life cycle 1.Introduction 2.Growth 3.Maturity 4.Decline

7

8 Implications of Marketing Mix during different stages of PLC Introduction At this stage the company builds products awareness and develops the market for the product. Product: Branding and quality level is established. Property rights and trademarks are obtained.

9 Introduction stage Price: either market penetration strategy or market skimming strategy is adopted Place: Distribution is selective Promotion: bring awareness and educate the market about the product. Mainly aimed at innovators and early adopters.

10 Growth stage Growth To increase market share and build brand preference. Product: Quality is maintained and additional features may be added. Pricing: it is maintained as the firm enjoys less competition and increase in demand.

11 Marketing Mix during Growth stage of PLC Place: Distribution channels increase as demand increases and customers accept the product. Promotion: aimed at broader audience.

12 Maturity stage Maturity At this stage the sale diminishes. There is increased competition. The main aim of the company is to defend market share with profitability.

13 Maturity stage Product: differences may be enhanced to differentiate the products with the competitors. Price: reduced because of competition

14 Maturity stage Distribution: It may become intensive and incentives may be offered to build preference over competing products. Promotion: emphasizes over product differentiation

15 Decline stage Decline At this stage, the sales decline as the product can either get obsolete or suffer reduced demand or lack of innovation.

16 Decline stage During decline stage, the firm has got different options: Product development strategy Harvest the product: reduce the cost and continue to sell it to loyal or laggards customers. Divestment

17 References Philip Kottler, Marketing Management, The Millennium Edition, 2000.Philip Kottler, Marketing Management, The Millennium Edition, 2000. www.bettermanagement.comwww.bettermanagement.comwww.bettermanagement.com www.valuebasedmanagement.netwww.valuebasedmanagement.netwww.valuebasedmanagement.net


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