Brand Strategy & Architecture

Portfolio Mapping with the BCG Matrix

Map your portfolio to spot cash generators versus growth bets. Use the classic growth‑share lens to decide where to invest, hold, harvest, or exit.

In the BCG matrix, a ‘Star’ is defined by ______.

high growth and low absolute revenue

high market growth and high relative market share

low growth and high relative market share

low growth and low relative market share

Stars sit in fast‑growing categories where the brand also holds strong share. They need investment to defend leadership and can become Cash Cows as growth slows.

Relative market share in BCG mapping is typically calculated against ______.

weighted average price index

total category revenue

the largest competitor’s share

last year’s own share

Using the largest rival as the denominator standardizes comparisons across markets. It shows whether you lead or trail the top competitor.

A ‘Cash Cow’ usually warrants which default strategy?

divest immediately regardless of margin

hold and harvest while defending share efficiently

aggressively build at any cost

pause all investment until growth returns

Cash Cows generate surplus cash in low‑growth markets. The goal is to sustain profit with disciplined spend.

‘Question Marks’ (or ‘Problem Children’) call for ______.

selective investment tests to earn leadership or quick exit

brand name changes without investment

automatic conversion to Cash Cows over time

heavy harvest tactics despite low share

Because they operate in high‑growth spaces but lack share, you either back a path to leadership or cut losses. Prolonged indecision drains resources.

On the BCG matrix, the vertical axis represents ______.

brand awareness score

market growth rate

media share of voice

gross margin percentage

Growth rate indicates category momentum and future potential. It complements the share axis to inform resource allocation.

A common pitfall in BCG mapping is ______.

mapping brands only once per year

using absolute sales instead of any share metric

including margin in the axes definition

defining the market too narrowly or broadly, distorting share and growth

Poor market definition can misclassify brands as leaders or laggards. Aligning on a consistent category lens is critical.

When a Star category matures, a successful brand most often transitions to ______.

a new axis outside the matrix

Question Mark status

Dog status

Cash Cow status

As growth slows, leaders in the space typically become steady cash generators. The investment profile shifts from build to defend and harvest.

In portfolio reviews, pairing BCG with profitability by brand helps avoid ______.

tracking share against competitors

over‑funding high‑growth but chronically unprofitable bets

detecting market growth changes

identifying underfunded Stars

Growth alone can mask weak unit economics. Overlaying profit steers investment to value‑creating positions.

A ‘Dog’ typically suggests which action if no strategic role exists?

rename the product while keeping spend constant

double the marketing budget

brand expansion into premium tiers first

orderly divestment or retirement

Low growth and low share positions seldom warrant ongoing investment. Exit frees resources for stronger roles.

BCG’s horizontal axis uses ______ to indicate competitive strength.

gross rating points

share of voice

relative market share (your share divided by the leader’s)

household penetration

Relative share normalizes across categories and sizes. It focuses on competitive position rather than absolute sales.

Starter

Good start—keep practicing the fundamentals of this topic.

Solid

You’re on track—tighten edge cases and apply the rules in live work.

Expert!

Outstanding—your brand strategy instincts are sharp and consistent.

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