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    Gunjan Satija (BCG Matrix)

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    Gunjan Satija
    Nestle has several "Cash Cow" products that require little investment but generate substantial profits, including Maggi noodles (80-85% market share in India), Nescafe coffee, and KitKat chocolate. Nestle mineral water and Nescafe coffee drinks are considered "Stars" with growth potential through greater investment. "Question Mark" products that require higher investment and carry more risk include Nestle milk/dairy products and their new smart coffee maker. Products like Milo and Koko Crunch cereals are in "Pets" category with little significance. Nestle leverages their popular Maggi brand to successfully launch new product variants and lines with less marketing spend required given existing brand loyalty.

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    Gunjan Satija (BCG Matrix)

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    Gunjan Satija
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    Nestle has several "Cash Cow" products that require little investment but generate substantial profits, including Maggi noodles (80-85% market share in India), Nescafe coffee, and KitKat chocolate. Nestle mineral water and Nescafe coffee drinks are considered "Stars" with growth potential through greater investment. "Question Mark" products that require higher investment and carry more risk include Nestle milk/dairy products and their new smart coffee maker. Products like Milo and Koko Crunch cereals are in "Pets" category with little significance. Nestle leverages their popular Maggi brand to successfully launch new product variants and lines with less marketing spend required given existing brand loyalty.

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    Nestle has several "Cash Cow" products that require little investment but generate substantial profits, including Maggi noodles (80-85% market share in India), Nescafe coffee, and KitKat chocolate. Nestle mineral water and Nescafe coffee drinks are considered "Stars" with growth potential through greater investment. "Question Mark" products that require higher investment and carry more risk include Nestle milk/dairy products and their new smart coffee maker. Products like Milo and Koko Crunch cereals are in "Pets" category with little significance. Nestle leverages their popular Maggi brand to successfully launch new product variants and lines with less marketing spend required given existing brand loyalty.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    58 views5 pages

    Gunjan Satija (BCG Matrix)

    Uploaded by

    Gunjan Satija
    Nestle has several "Cash Cow" products that require little investment but generate substantial profits, including Maggi noodles (80-85% market share in India), Nescafe coffee, and KitKat chocolate. Nestle mineral water and Nescafe coffee drinks are considered "Stars" with growth potential through greater investment. "Question Mark" products that require higher investment and carry more risk include Nestle milk/dairy products and their new smart coffee maker. Products like Milo and Koko Crunch cereals are in "Pets" category with little significance. Nestle leverages their popular Maggi brand to successfully launch new product variants and lines with less marketing spend required given existing brand loyalty.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    BCG Matrix of Nestle

    Gunjan Satija
    190380

    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!
    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.
    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.
    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

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


    Let me tell you some sad facts first. Nielsen points out that 85% of all consumer
    packaged goods (CPG) product launches flop.
    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.

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