The term "cash cow" originates from business and investment contexts, and it refers to a product, service, or business unit that generates consistent, significant profits with minimal investment or upkeep. It is a metaphor from farming, where a cow produces milk steadily, providing continuous returns.
In Philip Kotler's marketing framework, a cash cow is part of the BCG Matrix (Boston Consulting Group Matrix), a tool for analyzing product portfolios. A cash cow represents a product or business in a mature market with a high market share but low growth potential. The steady revenue from a cash cow can be used to fund other business areas, like developing new products or expanding into growth markets.
Examples of cash cows include established brands or products with loyal customer bases, such as Coca-Cola's classic soda.
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