Two firms A and B are belonging to the service sector. They are identical except growth rate and market share because of locational and other external reasons. Firm A has high market share and high growth rate while firm

Answer 5(e) As per the information the firm A belongs to the category of Star. In such category of product, both market share as well as growth rate is high. Stars cannot be complacent when they are on top because they can immediately be overtaken by another company which capitalizes on the market growth rate. Strategies for Stars All types of marketing, sales promotion and advertising strategies are used for Stars. Similarly in Stars, because of the high competition and rising market share, the concentration and investment needs to be high in marketing activities so as to increase and retain the market share. Firm B falls in the category of cash cows. Cash cows are products which have a high market share in low growing market. Strategies for cash cow Cash cows are the most stable product/service line for any business and hence the strategy includes retention of the market share for such category. As the market growth rate is low and acquisition is less and customer retention is higher. Thus, customer satisfaction programs, loyalty programs and other such promotional methods form the core of the marketing plan for a cash cow product. The company can also adopt market expansion strategies by identifying opportunities in the emerging global markets.