BOSTON CONSULTING GROUP (BCG) MATRIX OF NESTLE

STAR
Products or Business Units which hold a high market share and are also considered to grow in the
future are positioned as Stars. As a result, companies are interested to invest in developing these
units further to gain a larger market share and attain a stronger position in the market. These
products have the potential of being positioned as cash cows in the future owing to the industry
growth prospects.
 QUESTION MARK
Products or business units of the company that are still in the nascent stage of their product lifecycle
and can either become a revenue generator by taking the position of a Star or can become a loss-
making machine for the company in the future. The industry has high potential to grow hence giving
the room to the products to grow as well only if the pertinent issues are managed effectively.

COWS
Products which are market leaders in their specific industry and their industry is not expected to see
any major growth in the future are considered as Cash Cows. These products are the money
churners for the company and require very low investments to sustain their leadership and
profitability in the market.
 DOGS

These are low growth or low market share products and have very few chances of showing any
growth. The investment strategy for these products has to be very well thought through by the
management as there are chances that these businesses might not yield any profit for the
organization. These business units or products are cash traps and therefore are not seen as a useful
source of earning.
 THE STRATEGIES AND MANAGEMENT FUTURE DIRECTIONS

Identification
Nestlé was founded in 1866 by Henri Nestlé and is now the largest food and beverage company in
the world. Nestlé employs approximately 250,000 people from more than 70 countries and has
factories or operations in almost every country in the world. Nestlé’s vision of making good food
central to enjoying a good healthy life for consumers everywhere. This implies gaining a deeper
understanding in many areas of nutrition and food research and transforming the scientific advances
into applications for the company. Having a broad vision the company is doing its best for their
consumers to show the great sense of responsibility. Nestlé’s aim is to meet the various needs of the
consumer every day by marketing and selling food of a consistently high quality. The confidences
that consumers have in our brands is a result of our company’s many years of knowledge in
marketing, research and development, as well as continuity -consumers relate to this and feel they
can trust our products. Nestle mission is to strive to bring consumers foods that are safe, of high
quality and provide optimal nutrient to meet physiological needs. Nestle helps provide selections for
all individual taste and lifestyle preferences.

Analysis SWOT of NESTLE

1. Strengths
Partnership with other large companies’ strategy that has been successful for Nestlé involves
striking strategic partnerships with other large companies. In the early 1990s, Nestlé entered
into an alliance with Coca Cola in ready-to-drink teas and coffees in order to benefit from Coca
Cola’s worldwide bottling system and expertise in prepared beverages.

2. Weakness

The main weakness of Nestle is that they were not as successful as they thought they would
be in France. The launch in France was in 1994, but since the late 1980s, Danone had already
entered the market with a health-based yogurt.
 3. Opportunities

The Company has the potential to expand to smaller towns and other geographies. Existing
markets are not fully tapped and the company can increase presence by penetrating further.
With India’s demographic profile changing in favour of the consuming class, the per capita
consumption of most FMCG products is likely to grow. Nestle will have the inherent
advantage of this trend.

4. Threats

A threat to Nestle is the fact that some markets they are entering are already mature.
Danone had an established leadership position in the yogurt market in France. Since Danone
was the first to arrive in the market, they have always been the market leader there.

Corporate Communication Strategy of Nestle

In nestle communication management is the result of planning and implementations of strategies
set by the senior practitioners in relation with the top management of the company. The company
decides that how and which kind of relationship they need for the business with regards to the
stakeholders and management. As the success and failure of the company depends upon the
planning and setting up of this corporate communication strategy and its effective implementation.
For the Nestle as studies there are following strategy followed for the getting up in the market.