BCG Matrix of Nestle India

BCG Matrix of Nestle India
Check out the BCG Matrix of Nestlé and what products of the company
fall under what Quadrant. The case study is in Indian market context.
Cash Cows
For Nestle, there are some products those have been undoubtedly the
Cash Cows. They are- Nestle’s Maggi Noodles, NesCafe and its popular
chocolates like KitKat, Munch.
With a market share of 80-85 %, Maggi Noodles holds a pseudo-

monopoly in the market and have a high customer loyalty.
These products need very less investment. In fact, they are already
available at every nook and cranny. And loved my most of us!
Stars
In the case of Nestle, Nestle’s Mineral Water and Nestle’s Nescafe
Coffee (like Nescafe Latte) fall in the Star quadrant of the BCG Matrix of
Nestle.
With the growing number of health-conscious customers, these

products have the potential to produce greater ROI later. Even though,
it might take heavy investment to make Nestle-brand visible in that
market, they may turn to cash-cows pretty soon!
This study source was downloaded by 100000858463505 from CourseHero.com on 12-09-2022 04:28:17 GMT -06:00
https://www.coursehero.com/file/176528620/BCG-Matrix-of-Nestle-Indiadocx/
Source: nestlepurelife.com
Question Mark
Now this is an interesting bunch of products!
Nestle Everyday, Nestlé slim and Nestlé Milk maid are some of the milk
and milk-based products from the house of Nestlé. And they come
under Question Mark category.
This domain needs a higher investment, because its in the phase of

development. And it is a high-risk decision to invest in them too. Like
for example, “É by Nescafé”! Nestle aims to revolutionize coffee-
making with this new smart coffee maker.
Source: enescafe.in
Pets
Products under this category are not expected to bring in any
significant capital. So future investment is seen as a wastage by firms,
it could be invested in a Question mark or Star category instead.
I believe Nestle Milo and Koko Crunch can be put in this category. They
did not have any significant grasp in the market.
Source: Nestle.com
Its time to dig deeper. Let’s see how Nestle “milked” their Cash-Cow
Maggi!!
Maggi- Milking the Cash cow!

Nestle has sold Maggi in India for over 50 years now and it’s one of the most
recognised brands in modern India. It accounts for about 23% of the total
revenues and its popularity with the millennial segment is perpetually on the
rise
Source: nestle.in
Do you know how has Nestle uses this as an opportunity?
Yet, Nestle never steps back from launching new products. And what’s
a better way to do that than launching under the safety-net of “Maggi”
brand?
Firstly, new variants of existing product lines have more chances of

surviving out. Secondly, if gaining popularity then same distribution
channels can be used, without extra efforts. And thirdly, analysts have
noticed that Nestle doesn’t even feel the need to advertise them.
And lastly, as consumer already love Maggi’s brand, they hardly spend
time for purchase decisions.
Now, the next segment is to know what strategy to follow, based on

the growth-share matrix??
What Next to do with the Growth-Share

Matrix?
We can use this matrix to decide on multiple fronts. Starting from
resource allocation to utilization of marketing channels or platforms.
It can help grow a company’s expected ROI per channel. Now, it may
vary for different B2B and B2C businesses and even across industry
sectors.
For instance, high growth and high returns, investing in organic search
(SEO) may be a good choice. At the other end of the scale, we have not
witnessed companies growing exponentially and achieving high ROI as
a result of Twitter alone.
Source: yewbiz.com
You can apply different strategy according to the quadrant you are in.
The above image summaries a generic trend followed in the industry.
It tells you about how the matrix can help you to understand which
resource allocation-strategy to use for which category. The strategies
that are used by marketers are- Build, Hold, Harvest and Divest.
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BCG Matrix of Nestle India

With a market share of 80-85 %, Maggi Noodles holds a pseudo-

With the growing number of health-conscious customers, these

This domain needs a higher investment, because its in the phase of

Maggi- Milking the Cash cow!

Do you know how has Nestle uses this as an opportunity?

Firstly, new variants of existing product lines have more chances of

Now, the next segment is to know what strategy to follow, based on

What Next to do with the Growth-Share

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