Part 2. MM4XL Tools > 1. Strategic Tools > BCG Matrix > How To Run the Product Portfolio Analysis

BCG Portfolio Analysis

How To Run the Product Portfolio Analysis

It's easy to get up to speed with MM4XL in a matter of seconds:

  1. Select the MM4XL tool you want to work with from the toolbar.
  2. Click the Example button on the form. This opens an example sheet with data for the tool you are using.
  3. With your mouse, select the data sets as explained in the example sheet, then click the OK button to print the report.

It is very easy to run the Product Portfolio Analysis with Marketing Manager. Select Portfolio Analysis from the MM4XL menu, or click the first button from the left in the floating toolbar, and the following window appears.

Input the number of products you want to analyze. If your company markets 20 products, write 20 in the box beside Number of products and a predefined report will be automatically created. This window lets us set two important options to enhance the readability of maps. The Max Logarithmic Market Share = 1000 sets the horizontal axis of the grid at a maximum length of 1000 (equal to four times the size of the direct competitor). All leader products with sales higher than four times that of their direct competitor will be placed at 1000. There is no point in displaying broader measures, and in some cases, leaders being seven, eight or ten times larger than competitors can adversely affect the whole map. The same concept is applied to the vertical axis. Tick Max market growth = 100% to set the maximum height at 100%. If you have already stored the data in the correct format for analysis, you could click Next and run the analysis now.

Matrix BCG Software for Brand Portfolio Analysis and Management

Below is an example of the predefined input data range of the Product Portfolio Analysis built in Marketing Manager.

In column A you can input any sign or value, the function is case sensitive. This is a very useful option when running dynamic or comparative analysis. For instance, with code 1999 and code 2000 you can analyze the same portfolio at two different moments in time. Alternatively, you can code products belonging to different categories, like in our example below, or to different departments. All products sharing the same code will be displayed on the grid using the same color.

Matrix BCG Software for Brand Portfolio Analysis and Management

Then, press Click here for the next steps and the analysis runs.

The Product Portfolio Analysis function produces a grid and a summary report as shown below.

Matrix BCG Software for Brand Portfolio Analysis and Management

The summary report shows sales, market shares and market growth of products grouped in the four classes: question marks, stars, cash cows and dogs.

Matrix BCG Software for Brand Portfolio Analysis and Management

In column B the number of products belonging to each category are summed up. The sales of each class are expressed in value form (column C) and as a percentage (column D) computed on total sales of the products portfolio.

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