UNIVERSITY OF CENTRAL PUNJAB

SPRING 2023

Course Title: Fundamentals of Marketing

Course Code: BAMK2103

Assignment No. 1
Name of Course Instructor: Haziqah Noor Ul Islam

Section: I Program: BBA Date: 06-04-2023

Submission Date: 05-05-2023 Maximum Marks: 10

Program Objective: PO3 Course Objective: CO1 Course Learning Objective: CLO1

Instructions:
• You can access business blogs, newspapers, websites, and social media platforms
of the organizations to gather information and complete this assignment.
• The maximum word limit for each question is 800
• Plagiarized content would be penalized.
• You should submit this assignment in a group (5-6 students).
• Attach this sheet with your assignment.
• Convert your final document into PDF format

Question
Choose a brand from your local market and critically discuss its BCG MATRIX
Group Members: Muhammad Umair (L1F21BBAM0359)
Usama Maqsood (L1F21BBAMO316)
Shan E Rabi (L1F21BBAM0358)
Muhammad Hamza (L1F21BBAM0335)
Amna Saeed (L1F21BBAM0081)

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Company Introduction

Nestlé Pakistan Ltd is a subsidiary of Nestlé S.A, - a company of Swiss origin headquartered in
Vevey, Switzerland. It is a food processing company, registered on the Karachi and Lahore stock
exchanges and operating in Pakistan since 1988 under a joint venture with Milk Pak Ltd and
took over management in 1992. For ten years in a row, the company has won a place among the
top 25 companies on the Karachi Stock Exchange.
Headquartered in Lahore, the Company operates four production facilities. Two of its factories in
Sheikhupura and Kabirwala are multi-product factories. One factory in Islamabad and one in
Karachi produce bottled water. The factory in Kabirwala is the largest milk intake plant in the
Nestlé world. Through its effective marketing and a vast sales and distribution network
throughout the country, it ensures that its products are made available to consumers whenever,
wherever, and however.
Nestlé Pakistan operates in many ways but people, products, and brands are the main flag bearers
of the Company’s image.
Nestlé Pakistan now operates the biggest milk collection system in Pakistan, Currently; Nestlé
Pakistan collects milk from an estimated 190,000 farmers spread over 146,000 sq km in the
province of Punjab and Sindh.

Introduction to BCG
The BCG Matrix is a strategic management tool that is used to analyze a company's portfolio of
products based on its market share and growth potential. The BCG matrix classifies products
into four categories: Stars, Cash Cows, Question Marks, and Dogs. In this analysis, we will
apply the BCG matrix to Nestle Pakistan's product portfolio to understand its position in the
market and its growth potential.

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Stars:
Products that fall under the Stars category have a high market share in a high-growth market. In
the case of Nestle Pakistan, its star products include Nescafe, KitKat, and Maggi. These products
have a strong brand name and a large market share in their respective markets. For example,
Nescafe has a dominant market share in the instant coffee segment in Pakistan. Similarly, KitKat
is a popular chocolate brand, and Maggi is a popular instant noodle brand in Pakistan.

Cash Cows:
Products that fall under the Cash Cows category have a high market share in a low-growth
market. In the case of Nestle Pakistan, its cash cow products include Nido, Nestle Milk Pak, and
Nestle Pure Life. These products have a large market share in their respective markets, but the
markets themselves are not growing significantly. For example, the milk market in Pakistan is
already mature, and there is limited growth potential. However, these products continue to
generate significant revenue for Nestle Pakistan due to their established market position.

Question Marks:
Products that fall under the Question Marks category have a low market share in a high-growth
market. In the case of Nestle Pakistan, its question mark products include Nestle Nido Fortified,
Nestle Yogurt, and Nestle Lactogen. These products have growth potential, but they currently
have a limited market share. Nestle Pakistan needs to invest in these products to increase its
market share and capitalize on the growth potential of these markets.

Dogs:
Products that fall under the Dogs category have a low market share in a low-growth market. In
the case of Nestle Pakistan, there are no significant products that fall under this category.

Overall, Nestle Pakistan has a strong portfolio of products, with several star products and cash
cows. However, it needs to focus on investing in its question mark products to increase its
market share and capitalize on the growth potential of these markets.
A critical analysis of Nestle Pakistan's BCG matrix suggests that the company needs to focus on
diversifying its product portfolio to reduce its dependence on a few key brands. Nescafe, KitKat,

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and Maggi generate a significant portion of the company's revenue, and any changes in consumer
preferences or market trends could significantly impact the company's financial performance.
Moreover, Nestle Pakistan needs to focus on its product quality and safety concerns. The
company has faced several controversies in the past regarding the quality and safety of its
products, which has impacted its reputation and sales. The company needs to maintain high
standards of quality and safety to avoid any future controversies.
Furthermore, Nestle Pakistan needs to focus on its distribution network. While the company has
a well-established distribution network in urban areas, it needs to expand its presence in rural
areas to tap into the potential market in these areas. This can be achieved by partnering with local
retailers and investing in infrastructure to increase its distribution network in rural areas.
Conclusion
In conclusion, Nestle Pakistan has a strong portfolio of products, with several star products and
cash cows. However, it needs to focus on diversifying its product portfolio, investing in its
question mark products, and maintaining high standards of quality and safety. Additionally, it
needs to expand its distribution network to tap into the potential market in rural areas. By
addressing these issues, Nestle Pakistan can continue to grow its business and remain
competitive

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