Bcg Matrix Case Study of Nestle

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BCG Matrix(Boston consulting Group )
• In the late 1960s the Boston Consulting Group, a leading management consulting company, designed a four-cell matrix known as BCG Growth/Share Matrix. This tool was developed to aid companies in the measurement of all their company businesses according to relative market share and market growth.

• The BCG Matrix made a significant contribution to strategic

management and continues to be an important strategic tool
used by companies today. The matrix provides a composite picture of the strategic position of each separate business within a company so that the management can determine the strengths and the needs of all sectors of the firm. The development of the matrix requires the assessment of a business portfolio, which include an organization’s

autonomous divisions ( activities, or profit centers).

BCG MATRIX of Nestle
• According to Nestle, the relative market share and market growth rates of different products are given below:

Name Ceralac Nestle Milk Kit Kat Maggi Noddles Nestle Dahi

Relative Market Share 31.2% 21% 19% 18.76% 3%

Market Growth Rate 45% 39% 34% 64% 12%

Star  Ceralec

 Nestle Milk  Kit Kat Dog  Nestle Dahi

Market Growth

Cash Cow  Maggi Noddles

Relative Market Share

Ceralec: • Ceralec is one of the leading baby food products. It has witnesses quite a long hold on market share and it s a major contributor for Nestle. Nestle Milk and Kit Kat:

• Relative market share of

Nestle milk

and Kit Kat is low as

compared with its growth that’s why they are lying under head Question mark.

Maggi Noddles: • Growth rate of Maggi Noddles is low as compared with its Relative market share that’s why they are lying under head Question mark. Nestle Dahi: • Its both relative market share and growth rate are low as compared

with other products that’s why it is lying under head...
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