Since 1907 Bourbon Brothers Distilling Company has provided quality liquors to its customers. Over the years, Bourbon Brothers has grown and expanded products to meet the changing needs of the American consumer. Recently the company has become sluggish and stagnate in its growth. This case will try to identify some of the problems that Bourbon Brothers is facing and propose some possible solutions. .
The first step in trying to identify Bourbon Brother's problem is to identify its main products and group them into the Boston Consulting Group's Growth Share Matrix (BCG). The BCG Matrix compares the market growth rate and the relative market share of a group of brands. The BCG is split into four categories: Stars, Question Marks, Cash Cows, and Dogs. What category the product falls in will help identify what action is needed. Star products are those that are market leaders in a high-growth markets. Question Marks are businesses that operate in high-growth markets but have low relative market share. Cash Cows are former stars with large relative market share in a slow growth market. Finally, Dogs have weak market share and are in a slow growth market (Kotler, p.62).
From Table 1, we can see where Bourbon Brothers brands fit in the BCG Matrix. The Nicholas II Vodka, Sonoma Cream Variety Wines, and the El Centro Jug Wines fall into the high-growth, weak market share Question Marks category. The Missouri Oaks Bourbon, Bicycle Brand Bourbon, Old Carnaby Gin, and Clan McAdoo Scotch fit in the low-growth strong market share Cash Cow category. The remaining brands, Old Havana Rum and Centennial Nights Blend, fall into the low-growth weak market share Dogs category. There are no brands that fall into the high-growth weak market share Stars category.
The problem that the Bourbon Brothers is facing is that they do not have any brands that fall into the Stars category. The Stars category is where the market is really expanding and the potential for sales are the greatest.
