Pharma One’s analgesic drug KleenKare has a 50% share in the analgesics market in the country of Syria. Its closest competitor,
CosSign, has a 25% share in the market, while four other analgesic brands split the remaining 25% of the analgesics market. Which statement indicates that KleenKare is a cash cow according to the Boston Consulting Group (BCG) matrix? 1. A customer survey shows that KleenKare users do not prefer it to other analgesics in the market .
2. The demand for analgesic drugs in the Syrian market is expected to maintain a low-growth, high-share status.
3. Pharma One often takes money from other strategic business units to support KleenKare.
4. CoSign is rapidly gaining market share over KleenKare due to aggressive marketing efforts.
The statement that indicates that KleenKare is a cash cow according to the the Boston Consulting Group (BCG) matrix is:
2. The demand for analgesic drugs in the Syrian market is expected to maintain a low-growth, high-share status.
Explanation:
A cash cow depicts the BCG matrix quadrant where there are higher returns, high market share in a low-growth market. The cash cow requires little investment to generate high returns. It also provides the cash for financing the other quadrants (dogs, stars, and question marks). Basically, the BCG matrix, also known as the Growth/Share Matrix, depicts the products' growth opportunities.
Value co - creation is a strategy that promotes and encourages active involvement from the customer to create on-demand and made-to-order products. with this strategy, consumers get exactly what they want and are involved in making it happen. So the Art gallery using such information is clearly using a value - co creation strategy to build loyalty among its customer.
