Question

In the early 1990s, Dean & Summers Inc. marketed three brands of car fresheners,Coral, White Springs, and Autumn Breeze. The car freshener industry is typically described as a low-growth industry. In 1993, Dean & Summers spent $5.1 million to advertise Coral and was rewarded with sales of over $112 million. In the same year, it spent nearly $5 million marketing White Springs, but the car freshener had disappointing sales of less than $23 million. Autumn Breeze, with hardly any promotion at all, had $1.2 million in sales. According to the BCG Portfolio Model, which of the following statements about these three products best describes them?

A. Coral is a star, White Springs is a cash cow, and Autumn Breeze is a dog.
B. Coral is a cash cow while White Springs and Autumn Breeze are both question marks.
C. Coral and White Springs are cash cows and Autumn Breeze is a dog.
D.Coral is a cash cow while White Springs and Autumn Breeze are both dogs.

Answer 1

Answer:

C: Coral and White Springs are cash cows and Autumn Breeze is a dog.

Explanation: Coral and White Springs both made a lot of money, meaning the profit far exceeded the amount of money spent on advertisements. Even though White springs didn't make as much as Coral in terms of profit, it's profit margin still exceeded the money spent on it.