Product Analysis and the Growth-Share Matrix (BCG)

It is true that market uncertainty is quite high, and that There is no method that can guarantee that a product will be successful in a market.. But there are ways to reduce uncertainty before launching a product on the market, and certain methods that allow us to make decisions about products already on the market, thereby increasing the chances of success; one such method is the product analysis, which is becoming more important every day due to intense competition and hostility of international markets.

Product analysis is a tool for Marketing, which involves conducting an in-depth analysis of a product, good, or service within the context of the market it will face, with the goal of to increase its acceptance as much as possible, thereby increasing their chances of success. Drawing on 3 fundamental pillars: product characteristics, consumer behavior, and market supply.

When should you conduct a product analysis?

Although many entrepreneurs and companies believe that once a product has been launched on the market, it is no longer necessary to product analysis. The experts They do not view product analysis as a static tool, it is advisable to do this during the product design phase, as the product is being introduced to the market and compared with other products, and you can even learn a great deal about how some users continue to use discontinued products.

How do you conduct a product analysis?

There are a number of steps that can serve as a guide when conducting a product analysis to ensure it is as efficient as possible:

1. The first thing is to know What kind of data will we need?, and which ones will be most useful for our analysis.

2. A decision must be made regarding a moderately flexible structure to find out how the data will be collected, and, more importantly, to define sources reliable sources of information.
3. Set a budget that will determine how long the analysis will take and how detailed it will be, since you must optimize the resources invested to the fullest. 
4. Research the Competition and similar products on the market, to understand why some work better than others.

5. Focus on consumer habits and behaviors , what their preferences are, and, of course, their needs. 

Example of a simple user satisfaction survey. Rate Now

By following these guidelines, you'll be able to reach A conclusion about our product, and an overview of its market performance, but as we mentioned at the beginning, there is no guarantee of its success. A product's success is usually a combination of innovation, market acceptance, design, and a bit of luck. 

Analysis of a Product Within a Product Portfolio

Once a product has been launched on the market, the type of analysis we need to conduct is a little different, since It is usually evaluated in comparison to the other products we offer (Portfolio), this is known as Growth-Share Matrix (BCG).The goal is to categorize the products in a portfolio into the following groups to determine their market performance and how to maximize the return on all products: 

Unknown product

It is currently in the market introduction phase, and is referred to as an "unknown" because we still have very little information about it. Therefore, we do not know how long it might remain on the market. 

Featured Product

These companies are in a growth phase within the market and have a very strong market share. This means they are already generating solid revenue, but at the same time, they require significant investment to maintain their market position. 

Cow product

These are the mature products in the portfolio, which means they no longer have significant growth potential but have already established their position in the market. They are the most profitable because they generate strong revenue without requiring significant investment in market positioning. 

Dog product

These are the products that are already in decline, show no growth whatsoever, and have lost market share. These products require no investment and generate some revenue from the sale of their remaining inventory. 

Graph of the Growth-Share Matrix (BCG).marketing-xxi

Even though we are aware that uncertainty plays a significant role in how a product performs in the market, it is very important to study it before, during, and after its launch. Markets are becoming increasingly aggressive, and competition for consumers’ attention is getting fiercer, so we can say with certainty that if proper product analysis, failure is almost guaranteed. In the Structuralia MBA will expand on the concepts of marketing like this one and many others.