PPM Analysis for Beginners: Stars, Cash Cows, Question Marks, Dogs

Business & Strategy

PPM Analysis for Beginners: Stars, Cash Cows, Question Marks, Dogs

Anyone deciding which of several products or services to focus on opens this beginner template the first time they try PPM analysis (the BCG matrix). The whiteboard holds a four-quadrant matrix (market growth rate x relative share) for stars, cash cows, question marks, and dogs, two frames on the high/low lines, a 5x3 grid for each product's numbers, five allocation steps, and a frame for what to grow and cut. The task board has five columns from listing products to review, with four parent tasks, each split into three not-started subtasks. Even if you don't know PPM analysis, just list products, enter the numbers, place them in the quadrants, then follow each quadrant's playbook to land on an allocation. It suits individuals or small teams with several offerings, like a restaurant menu, courses, or side-income sources. Enter amounts in dollars and compare annual revenue and profit over the same period.

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PPM analysis BCG matrix product portfolio business analysis basics select and focus
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1. The PPM/BCG Matrix (Market Growth ... Question Mark (growing market, not No... Star (growing market, you're No. 1) Dog (market not growing, you're not N... Cash Cow (market not growing, you're ... 2. Setting the High/Low Line (Market ... 3. Setting the Left/Right Line (Relat... 4. Per-Product Entry Grid (fill in nu... 5. 5 Steps for Deciding the Money and... 6. What You Decided (Grow / Cut) PPM Analysis Star... How to use: (1) W... Stars, products t... Decisions & a... Dogs, products to... Insights & ju... 縦軸: Market growth... The playbook is to choose. It's a growing market so you can't ignore it, but you can't invest in all of them either. Pick one to invest in fully and pass on the rest. e.g. Soup subscription (growth +20%, No. 3, annual revenue $4,000, annual profit $400) The playbook is to grow it. Put in the most money and time to defend the No. 1 spot. When market growth stops, it becomes a cash cow on its own. e.g. Fried chicken bento (growth +15%, No. 1, annual revenue $16,000, annual profit $3,200) The playbook is to pull back. Decide to scale down or end it, with a date. Redirect the freed-up time and money to your stars. e.g. Takeout bread (growth -3%, No. 4, annual revenue $2,700, annual profit $130) The playbook is to protect it. Cut the effort it takes and lock in the profit. The profit from here becomes the funding for your stars and question marks. e.g. Daily lunch special (growth +2%, No. 1, annual revenue $24,000, annual profit $6,000) e.g. Check whether the whole market grew this past year. +10% or more goes "high" (top). No stats? Use the change in customer count or inquiries over the past year instead. Look at the market's own growth, not your own sales. If you grew but the market didn't, that's "low." When unsure, go "low." Overestimating means overinvesting in a market that isn't growing. e.g. Estimate your rank against the top seller in the same market and category. No. 1 goes "high" (right); No. 2 or below all go "low" (left). The exact rank doesn't matter. Compare against outside competitors, not your own sales mix. Mix this up and everything reads "high." If you don't know your rank, compare order or booking counts for similar products as a stand-in. Market growth Relative share Annual revenue Annual profit Quadrant e.g. Fried chicke... High (+15%/yr) High (No. 1) $16,000 $3,200 Star e.g. Daily lunch ... Low (+2%/yr) High (No. 1) $24,000 $6,000 Cash Cow e.g. Soup subscri... High (+20%/yr) Low (No. 3) $4,000 $400 Question Mark Step 1 - StarGrow it (put in the most money and time)e.g. Put $270/month in ads and 8 hours/week into the fried chicken bento. Step 2 - Cash CowProtect it (cut effort, keep the profit)e.g. Standardize the daily lunch special's prep and cut it to 1 hour/week. Step 3 - Question MarkChoose (decide invest-fully or pass, one by one)e.g. Try the soup subscription for just 3 months, then stop if it's not working. Step 4 - DogPull back (decide to scale down or end it)e.g. End the takeout bread this month and free up 5 hours/week. Step 5 - TotalSplit money and time so they total 100%e.g. Money: 50% star, 30% cash cow, 20% question mark, 0% dog. Time: of 10 hours/week, 8 to the star, 1 to the cash cow, 1 to the question mark. What to grow (stars, plus any question marks you're investing in)e.g. Fried chicken bento - raise ads from $130/month to $270/month, and hours from 3/week to 8/week (using the 5 hours/week freed up by dropping takeout bread)Owner: ____ What to cut or stop (dogs, plus question marks you're passing on)e.g. Takeout bread - end it this month, redirect the freed 5 hours/week to fried chicken bentoOwner: ____ / Next re-entry and re-placement date: __/__
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Task board contents

List products 16 items

List products
Gather the numbers
Place in quadrants
Decide & execute
List what you sell
Align count units
Narrow to 4-8 items
Revenue & profit
Check market growth
Rank vs competitors
Set high/low lines
Place each product
Note your reasons
Pick what to grow
Pick what to cut
Set review date

Gather numbers 0 items

Place in quadrants 0 items

Decide allocation 0 items

Execute & review 0 items

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