The BCG matrix is an example of a graphical representation that helps analyze sales or revenue data.
Step 1. Data collection
At the first stage, the marketer collects information about the products, departments and companies that need to be researched. Then, for each characteristic, he collects statistics for a certain period of time. After that, the data is searched for and compared with the main competitors or other companies in the industry. For ease of analysis, the obtained data is summarized in a table and presented on a graph with two axes and four square sectors.
How to build a BCG matrix
Step 2. Calculating growth rates
At the next stage, the marketer analyzes doctor data package how much sales volumes, revenue, or net profit have changed in the chosen direction. If there is data on sales and revenue, the analyst calculates the average value. This is necessary to determine the growth rate of the business using a special formula.
For example, in 2020, company A sold 100 sports bikes, and in 2021 - 110. Thus, the growth rate for the category "sports bikes" was 110%.
Recommended articles on this topic:
9 Types of Customer Loyalty Programs
Company Marketing Plan: Short and Detailed Versions
32 Ways to Attract Clients: Proven and Unconventional