BCG MATRIX OF

NESTLE
Name - Harshita Kapoor
Roll No.- 35224401721
INTRODUCTION
ON BCG

What is the BCG Matrix?

The BCG matrix, also known as the Boston Consulting Group matrix, is a strategic tool used to analyze a
company's product portfolio. It was developed by the Boston Consulting Group in the 1970s and is based
on the idea that a company's products can be divided into four categories based on their market share
and market growth rate.

Purpose of the BCG Matrix

The BCG matrix is used to help companies determine which products they should invest in and which
products they should divest. By analyzing the product portfolio in this way, companies can make strategic
decisions about where to allocate resources and how to prioritize their investments.
 STRATEGIC IMPLICATIONS AND RECOMMENDATIONS

Based on the BCG matrix analysis, there are several strategic implications and recommendations
for Nestle's product portfolio.

Invest in the Stars products to maintain their high market share and continue to grow them.
This can be achieved through increased marketing and innovation.
Maintain the Cash Cows products by continuing to invest in them but at a lower rate. This will
help to maximize profits and maintain their market share.
Reconsider investing in the Question Marks products. While some may have potential for
growth, it is important to carefully evaluate the market and competition before investing
further resources.
Divest or reposition the Dogs products. These products have low market share and low growth
potential and may not be worth the investment.
CASH COW
PRODUCTS
Cash cow products are those that have a high market share in a slow-growing industry. These products generate significant profits for the
company and require minimal investment to maintain their position in the market.

NESTLE'S CASH COW PRODUCTS

Nescafe instant coffeeNescafe is a well-established brand that has a dominant market share in the instant coffee industry. It is a cash cow product
for Nestle, generating significant revenue and profits for the company. Its strong brand recognition and customer loyalty make it difficult for
competitors to enter the market.

Nestle Pure Life bottled waterNestle Pure Life is a leading brand in the bottled water industry, with a significant market share. It is a cash cow
product for Nestle, as it generates high profits and requires minimal investment to maintain its position in the market. Its strong distribution
network and brand recognition give it a competitive advantage over other brands.

KitKat chocolate barsKitKat is a well-known brand of chocolate bars that has a significant market share in the confectionery industry. It is a cash
cow product for Nestle, generating high profits and requiring minimal investment to maintain its position in the market. Its strong brand
recognition and customer loyalty make it difficult for competitors to enter the market.
QUESTION MARK
PRODUCTS
Question mark products have a low market share in a high-growth market. These
products require a lot of investment to grow their market share and become stars.

NESCAFE DOLCE GUSTO

Nescafe Dolce Gusto is a single-serve
coffee machine that uses Nestle's
proprietary coffee pods. It has a low
market share in the highly competitive
coffee machine market, but the market is
growing rapidly. Nestle has invested heavily
in advertising and promotions to grow the
market share of this product.
SKINNY COW
Skinny Cow is a low-fat ice cream brand that targets health-conscious
consumers. It has a low market share in the highly competitive ice cream
market, but the market for healthier ice cream options is growing rapidly.
Nestle has invested heavily in developing new flavors and promoting the
brand to grow its market share.
STAR PRODUCTS

STAR RODUCTS ARE AS FOLLOWS :

NESCAFE

KITKAT

SAN PELLEGRINO
DOG PRODUCTS

PURINA ONE
PURINA PRO PLAN SPORT ALL BEGGIN' STRIPS ORIGINAL
SMARTBLEND TRUE
LIFE STAGES PERFORMANCE WITH BACON FLAVOR
INSTINCT NATURAL
30/20 FORMULA DRY DOG
DRY DOG FOOD
FOOD
 NESTLE’S PRODUCT PORTFOLIO
Nestle is a Swiss multinational food and beverage company that offers a wide range of
products. Its product portfolio includes food, beverages, pet care, and nutritional health
products.

BCG MATRIX ANALYSIS

Nestle's product portfolio can be analyzed using the BCG matrix, which categorizes products into four quadrants based on their market growth rate and relative
market share. The four quadrants are stars, cash cows, question marks, and dogs.

STARS
Nestle has several star products, such as Nescafe coffee, KitKat chocolate, and Purina pet food. These products have a high market share in a growing market and
generate significant revenue for the company.

CASH COWS
Nestle has several cash cow products, such as Nestle milk and Maggi noodles. These products have a high market share in a mature market and generate steady
revenue for the company.

QUESTION MARKS
Nestle has several question mark products, such as Nespresso coffee machines and Boost nutritional drinks. These products have a low market share in a
growing market and require significant investment to grow their market share.

DOGS
Nestle has several dog products, such as PowerBar energy bars and Jenny Craig weight loss programs. These products have a low market share in a mature
market and generate little revenue for the company
THANK
YOU