Marketing Essay

618 WordsApr 21, 20133 Pages
Question 1 1. Paper Towels- a. Market Share - 200,000/1,100,000 = .1818 b. Largest Competitors= 600,000/1,100,000=.5454 c. Relative Market Share – .1818/.5454 =.3333 d. Annual Industry Growth Rate- 8% Star | Question Mark | Cash Cow | DogPaper Towels | 2. Bathroom Tissue- e. Market share- 400,000/2,600,000=.1583 f. Largest Competitors- 500,000/2,600,000=.1923 g. Relative Market Share- .1583/.1923=.8231 h. Annual Industry Growth Rate- 15% Star | Question MarkBathroom Tissue | Cash Cow | Dog | 3. Facial Tissue- i. Market Share- 3,200,000/4,200,000 =.7269 j. Largest Competitors- 1,000,000/4,200,000=.2381 k. Relative Market Share- .7269/.2381= 3.052 l. Annual Industry Growth Rate- 4% Star | Question Mark | Cash CowFacial Tissue | Dog | 4. Baby Wipes – m. Market Share- 2,500,000/4,300,000=.5813 n. Largest Competitors- 1,000,000/4,300,000=.2325 o. Relative Market Share- .5813/.2325 =2.500 p. Annual Industry Growth Rate- 12% StarBaby Wipes | Question Mark | Cash Cow | Dog | Question 2: My recommendations for each SBU’s would be as followed: * Paper Towels are currently in the Dog quadrant. They are generating little profits and should consider dropping out of this industry. There’s not much promise for them to get any better and they have a poor future ahead of them. The paper towel industry might want to consider selling there firm to someone else perhaps in the same field so they can combine sources and money. * Bathroom tissue is in the Question Mark quadrant. They have potential to become stars or cash cows. Bathroom tissue needs to either invest more money for growth or consider disinvesting. They must decide if they want to continue supporting these products or businesses

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