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BCG Matrix
Nestle produces over 300 halal products across categories like coffee, milk, beverages, cereals, ice cream, and chocolate. Their vision is to be a trusted provider of healthy food, nutrition and wellness solutions. Using the BCG matrix, their products can be categorized as stars, cash cows, question marks, or dogs based on market growth and market share. Maggi noodles and Milo are examples of cash cows as market leaders in mature markets. Nescafe is a star with a high market share but also high research costs in a growing market. The chocolate category is a question mark as competitors are rising. Mineral water and Sterile Milk bear brand are examples of dogs with low market share and
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BCG Matrix
- 1. BCG Matrix onNestle Name Matrix Number Lee Yean Yeon GM 05291 Loh Chee Kheong GM 05299 Chin Fui Yien GM 05287
- 2. Table of Content NestleMalaysia an Overview Vision and Mission of Nestle Categories of the products BCG Matrix/ Growth Share Matrix Products on BCG Dimension Conclusion
- 3. Nestle Malaysia anOverview Strength and Advantages of Nestle Produce over 300 halal products in categories • Coffee and beverages, prepared foods, milk, liquid drinks, breakfast cereals, chilled dairy, ice- cream, chocolate and confectionery Brand names under Nestle • Maggi, Nespray, Kit Kat, Nestiva, Nestum, Bliss, Nutren, Cerelac, Power Bar & etc.
- 4. Milk Produce over 300halal products in categories Dairy Milk Beverage
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- 6. Nestle Liquid Drink NestleIce-cream Healthcare Nutrition
- 7. Chilled Dairy Maternal &Infant Nutrition
- 8. Vision and Missionof Nestle Vision Good Food Good Life Position As a global, trusted and responsible food, nutrition, health and wellness company to be more proactive in providing healthy solutions and value – added products to meet the needs of consumers
- 9. Categories of theproducts
- 10. BCG Matrix/ GrowthShare Matrix BCG Matrix was developed based on a company’s business units/product can be classified into four categories based on combinations or market growth and market share relative to the largest competitor.
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- 12. Cash Cow • Asleader in a mature market, cash cow exhibit a return on assets that is greater than the market growth rate, and thus generate more cash than they consume. • What do you think about the ‘Cash Cow’ for Nestle?
- 13. BusinessGrowthRate Low High Market Share Rate(Relative Position)High Low • Maggi Noodle (Food) • Introduced in 1969 • Market share is still growing • Milo (Beverage) • Introduced in 1950 • Sponsor 200 sport events in one year Brand name has been embedded into customer’s heart
- 14. Star • Stars generatelarge amounts of cash because of their strong relative market share, but also consume large amounts of cash because of their high growth rate. • What do you think about the ‘Star’ For Nestle?
- 15. BusinessGrowthRate Low High Market Share Rate(Relative Position)High Low • Nescafe • Launched in 1964 • High in research and development (R&D) cost • The coffee market is still growing, increasing number of coffee shops in the country
- 16. Question mark/ ProblemChild • It grow rapidly and thus consume large amount of cash, but as they have low market share, they do not generate much cash. As a result, it is a large net cash consumption. • What do you think about the ‘Question Mark’ For Nestle?
- 17. BusinessGrowthRate Low High Market Share Rate(Relative Position)High Low • Chocolate (Confectionery) • Introduced in 1995 • It remained strong brand leader in the market. • Rise of competitors and start lose the grip in the market.
- 18. Dog • It haslow market share and a low growth rate and thus it neither generate nor consume a large of cash. • Dogs are cash traps because of the money tied up in a business that has little potential. • What do you think about the ‘Dog’ For Nestle?
- 19. BusinessGrowthRate Low High Market Share Rate(Relative Position)High Low • Mineral water (Beverage) • Sterile Milk bear brand (liquid drink) • Launched in 2013 • The concept of packaging is not welcomed Weak in market, difficult to make profit
- 20. Overall BCG MatrixBusinessGrowthRate Low High MarketShare Rate (Relative Position)High Low
- 21. Conclusion • BCG frameworkis needed to assume whether the product has an increment in relative market share as well as to increase in the cash generation. • It is a simple tool to view a corporation’s portfolio at a glance and resource allocation among strategic business units. • Example, the position of a business on the growth-share matric provides an indication of its cash generation and its cash consumption.
Editor's Notes
- #17 Either it has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. It not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Hence, it is vital to analyze carefully to determine whether they are worth the investment required to grow market share.
- #18 Doing well, but do not know what to do with opportunities; decide whether to increase investment
- #20 Majority of the consumers are unaware that Nestle offers Sterile Milk Bear brand and mineral water. The concept of packaging is not being accepted by the consumers. Lack of growing market makes Nestle Malaysia to be placed in as a Dog.