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The Boston Matrix The Boston Matrix is a tool used by marketing managers to make decisions on which products within their portfolio that they should market and under what category on the Boston Matrix they fall into. There are four sections to the Boston Matrix, problem child, stars, dogs and cash cows. Each category is different to one another as they represent different products on how they are selling. The Boston Matrix can be useful to a business like Cadburys as they have a wide range of products in which they can separate to these four different categories.

This can determine for Cadburys which products they could possibly market. The four different categories within the Boston Matrix are:

  • Problem Children
  • Stars
  • Dogs
  • Cash Cows

The market growth is the amount of potential consumers that could buy your product but have not bought it yet. The market share is the amount of consumers that are currently buying your product.

Problem Children

This is the category for products which have a low market share within a high growth market. These products need money to develop them and also have potential for the future.

A product within this section would be the new Dairy Milk Bubbly. This is because this product has just been released this year and is a new product on the market. As it being a new product on the market this means it is going to have a low market share but the overall product has potential to develop and increase its growth market. Cadbury’s could possibly market the product a bit more to get it out there. This would help them make this product reach its full potential and capability.

Stars

This is the category in which products within this category have a high growth and also have a higher share within the market too. Products within this market are doing well, but still have further potential. The chocolate bar that would fit into this category would be the Aero Bubble. The reason for this is because this chocolate bar has a high market share within a fast growing industry. This allows this product to do well but can also has potential to grow.

Dogs

Products within this category in the Boston Matrix have a low growth market and also have a declining market. These products are usually within the declining stage on their own life cycles. Companies may take products off the market due to the lack of its sales that it is generating. Cadburys Bournville chocolate bar is an example of a chocolate bar which is within this section. This because there is not many people buying this chocolate bar, it is declining within the market which puts it in the declining stage within its life cycle. This is why this is chocolate bar is in the Dog section.

Cash Cows

Products that are in this section usually having a high market share but also a low growth market. Products within this stage are usually within the maturity stage on their product life. These products do not require a lot of help because they have already established their consumers therefore their market is high and is at a steady pace with regular sales. Cadburys Dairy Milk is an example of a chocolate within this section. The reason or this is because Dairy Milk has been around for 100 years and everyone recognises the chocolate which means it is already established and known.

Dairy Milk does not require any advertising but may need a little help like a new packet, or an offer to get people buzzing about it again. The reasons they are called cash cows are because they generate money in excess of the amount needed to maintain the business. The reason this section is the best section is because products within this section need very little amount of advertising due to the high market share that they have. The Fuse Bar The Fuse when launched went through all of these sections in its life time.

The Fuse Bar had its ups and down throughout its life time. The Fuse Bar had gone through the “stars” section when it was introduced. The reason for this was because of the fact that it had a very big open day known as the Fuse Day. This had increased sales within the introduction thus having a high growth market and high market share straight away with sales of 40 million within the first week. The reason for his is due to the huge marketing campaign that Cadburys had set up which led to a global rollout of the product on the September 24 1996 called “Fuse day”.

Following from this the Fuse bar fell into the “cash cow” section. This is because everyone knew about the Fuse Bar and recognised it. This left it with no new potential consumers. This is why they were within this section. Then the Fuse Bar went through the “problem child” section. This only lasted for about a month or two. This was because no one really knows what had happened but it is suggested that the Fuse Bar was trying to market itself more and fell into having a high growth market and a low market share.

Because the share had dropped, it had potential to grow again so they re-advertised again. The last section that they were left it before they officially closed was the “dogs” section. This is because after they pulled their advertisement the Fuse Bar didn’t have much attention given to it, which left it to decline within the market and not many people were buying it either. This is why they were in this section at the end which lasted 5 years.