It is necessary for the company’s management to examine the product portfolios for differentiating between the unprofitable units and cost effective business segments. For this, BCG matrix is very helpful and provide detailed analysis. This matrix is comprised on four quadrants; stars, cash cows, problem child\question marks and dogs. The products are analyzed in relation the two main categories; market growth and market share (Hanlon, 2018).
Jaguar is a brand of luxurious vehicles of “Jaguar Land Rover”. It is a British car manufacturing multinational company, with the headquarter in Coventry, England. It is owned by Tata Motors- an Indian Company. Jaguar is responsible for manufacturing of cars till the phase when operations are merged completely with the Land Rover for forming Jaguar Land Rover.
It select marketing strategies very carefully and segment the luxury car range on Behavioral and Psychographics factors. It also target the consumers of upper class like Executives and professionals or businessmen. Selective targeting strategies are used for attracting the potential consumers and different promotional techniques are applied. It basically target the young buyers who are passionate for cars and drives (Jaguar, 2018).
Jaguar worked hard to increase its product portfolio, by bringing more unique and innovative designs for its customers to retain its market positions. The BCG matrix analysis of Jaguar is explained below;
Cash Cows
Some of the products of the product portfolio bring more revenue in the business, than the invested sum, which could be used for regulating the different operations of various business units. Such products are known as cash cows. It is the manager’s responsibility to gain advantage from its high market share, and find ways to increase the market growth. SUV cars, cars with HCV and LCV are the cash cows for Jaguar, as according to the target segment, young consumers prefer high performance cars with some sporty look. Jaguar invest much in the research and development of such cars, but receives more return (Mohapatra, 2016).
Stars
As suggested by the name, these are the rising stars of the company that holds the high market growth rate and market share. As reflected by the name, such items generate more revenue for the company along with the promising future growth, hence motivates the company to invest more in them. X series, and Pace cars are the stars for Jaguar, along with the land rover. Jaguar is mainly famous because of them, as consumers find Land rover as one of the finest car of the world. It is expected that these product categories will continue to grow more in the future, if Jaguar will remain firm with its approaches (Bhasin, 2018).
Question Marks
Operations of special vehicles and concept cars business is relatively new for the Jaguar, which clearly reflects the category as the question mark. This means, Jaguar needs to invest more in this category to achieve the desire market share, however, it is successful in achieving the desire market growth level. If the strategies are not maintained efficiently, or efforts would not be made, this product category might fall into the dog quadrant. Jaguar needs to work effectively to turn this quadrant into cash cow for the company (Bhasin, 2018).
Dogs
This category is comprise of items which consume more funds and generate very less, mostly relies on the breakeven level. There are no such direct product category in this quadrant, because its product portfolio is able to make its prominent place in the highly competitive market. However, its concept cars are the dog items for other countries to which Jaguar does not sell directly, like Pakistan etc. (Jaguar, 2018).
References
Bhasin, H. 2018. Marketing strategies of Jaguar. [Online], Available at: https://www.marketing91.com/marketing-strategy-jaguar/, [Accessed on: 28th August, 2018].
Hanlon, A. 2018. How to use the BCG matrix model. [Online], Available at: https://www.smartinsights.com/marketing-planning/marketing-models/use-bcg-matrix/, [Accessed on: 28th August, 2018].
Jaguar, 2018. About Jaguar. [Online], Available at: https://www.jaguar.in/about-jaguar/index.html, [Accessed on: 28th August, 2018].
Mohapatra, S. 2016. Strategic analysis of TATA motors. [Online], Available at: https://www.slideshare.net/SIBASISMOHAPATRA2/strategic-analysis-of-tata-motors-with-emphasison-jlr-acquisition, [Accessed on: 28th August, 2018].
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