In the early 1990s, Procter & Gamble marketed three brands of toilet paper, Charmin, White Cloud, and Banner. The toilet paper industry is typically described as a low growth industry. In 1993, P&G spent $8.1 million to advertise Charmin and was rewarded with sales of over $312 million. In that same year, it spent nearly $8 million marketing White Cloud, but the toilet paper had disappointing sales of less than $63 million. Banner, with hardly any promotion at all, had $3.6 million in sales. According to the BCG Portfolio Model, which of the following statements about these three products best describes the situation in 1993?
A) Charmin is a star, White Cloud is a cash cow, and Banner is a dog.
B) Charmin is a cash cow, and White Cloud and Banner are both question marks.
C) Charmin and White Cloud are cash cows, and Banner is a dog.
D) Charmin is a cash cow, and White Cloud and Banner are both dogs.
Correct Answer:
Verified
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