MKT 605 – Module 1 – Module Assignment BCG

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Northern Kentucky University *

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605

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Marketing

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Feb 20, 2024

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MKT 605 - Module 1 - Module Assignment BCG D) Milkybar: o — ey The Milkybar is a candy bar produced by the Nestle Corporation since the 1930s. It is made primarily of White Chocolate and is available in numerous countries around the world. When the Milkybar was introduced it entered a very packed and stagnant marketplace with dozens of competitors. In the 70s, a hit movie was released that cause tremendous interest in white chocolate candy bars. Since it was one of MANY brands in the marketplace, Milkybar failed to capture any of the new trend induced business. That hot marketplace led competitors to invest heavily in their products. Milkybar struggled to keep up. Eventually, one brand had 50% market share, a second had 25% and 10 other brands including Milkybar split the remaining 25%. After a couple of years, the excitement surrounding the white chocolate bar dropped off significantly and the marketplace shrunk to the size it was before the movie was released. Eventually, out of the 13 brands that existed at the height of the White Chocolate bar craze only 3 brands remained; Milkybar had held on and captured 40% of the marketplace, the highest of all brands. Note: this candy bar is real - the marketplace story written here is not. It was written to test your understanding of the BCG matrix. { B [ Question1 50 pts \ R ; ‘ When the Milkybar was originally introduced to the marketplace it had large competition and wasn't very popular. In terms of the BCG matrix this would be considered a \ | (O Question Mark \ @ Dog \ (O Cash Cow | O Star ‘I - ] [ Question 2 40 pts \ o The movie release caused the market to grow dramatically. Which of the axes does this impact? (O Low Market Growth O Low Market Share @® High Market Growth | O High Market Share

Question 3 40 pts When competing brands enter a market, which of the following is true? O If new entrants capture market share from you you are likely to shift left on the BCG matrix @ If new entrants capture market share from your brand, you willlikely shift right on the BCG grid O Any time competing brands enter a market, the growth rate increases. O New entrants slow down the growth of a market Question 4 40 pts In the post movie-excited marketplace, Milkybar held 40% market share. This brand would now be considered a _ O Star O Dog @® Cash Cow O Question Mark in the BCG grid.

Question 5 Which of the following would be a viable strategy for Nestle if Milkybar were a question mark? O Wait for the market to slow down and sell off the brand which is now a dog. O Increase your price to maximize revenue while the market is hot. @ Utilize the size of Nestle and purchase a competing brand which has higher market share. O Investin a new product placement to increase market growth rate Question 6 40 pts If that movie became popular again, caused the marketplace to grow, and Milkybar still had 40% Market Share, what would you consider to be its place on the BCG grid? O Cash Cow ® Star O Question Mark © Dog Question 7 50 pts Which of the following would NOT be a viable strategy for Nestle when Milkybar was a dog? O Target other brands and purchase them and their market share O Invest in marketing to try to maximize market share in the down market place. O Sell off the brand to a competitor in the marketplace ® Invest heavily to make the market grow

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MKT 605 – Module 1 – Module Assignment BCG

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