The Practical Significance of BCG (Boston Consulting Group) Matrix in the Fast Moving Consumable Sector in Ghana,Case Study of Nestle Ghana Limited

Abstract

In an ever changing marketing environment where businesses have to continuously develop and maintain existing brands, product management is of critical importance to organization’s sustainability. Through the tool of portfolio analysis, corporate managers ensure a healthy and balanced portfolio by optimally allocating limited resources among its SBUs and chart the best growth path for the organization. Even though BCG (Boston Consulting Group) model is widely known and adopted its significance has not been empirically tested inthe Ghanaian fast moving consumable sector. The objective of the study was to evaluate the practical significance of BCG matrix in the fast moving consumable sector in Ghana, using Nestle Ghana limited as the case study. The study was descriptive. Primary data were captured through the use of questionnaires administered to management and staff of NGL. Target population of the study was management and staff of NGL. Fifty one (51) respondents were randomly selected through purposive sampling technique. Responses were coded using T-Test and Linear Regression for the analysis. The study established that NGL uses BCG in analyzing products, and that BCG has delivered superior profitability to product analysis by determining where a product is in its PLC, which has helped in evaluating a balance portfolio. The researcher recommended that, in the fast moving consumable sector where close product management skills are needed businesses need to have a healthy balance portfolio for sustainability purposes.