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BCG Matrix on Nestle
Name Matrix Number
Lee Yean Yeon GM 05291
Loh Chee Kheong GM 05299
Chin Fui Yien GM 05287
Table of Content
Nestle Malaysia an Overview
Vision and Mission of Nestle
Categories of the products
BCG Matrix/ Growth Share Matrix
Products on BCG Dimension
Conclusion
Nestle Malaysia an Overview
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.
Milk
Produce over 300 halal products in categories
Dairy
Milk
Beverage
Nestle Professional
Food Business
Confectionary
Nestle Liquid Drink
Nestle Ice-cream
Healthcare Nutrition
Chilled Dairy
Maternal & Infant Nutrition
Vision and Mission of 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
Categories of the products
BCG Matrix/ Growth Share 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.
BCG Matrix
Cash Cow
• As leader 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?
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
Star
• Stars generate large 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?
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
Question mark/ Problem Child
• 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?
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.
Dog
• It has low 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?
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
Overall BCG MatrixBusinessGrowthRate
Low
High
Market Share Rate (Relative Position)High Low
Conclusion
• BCG framework is 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.
Nestle bcg

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Nestle bcg

  • 1. BCG Matrix on Nestle Name Matrix Number Lee Yean Yeon GM 05291 Loh Chee Kheong GM 05299 Chin Fui Yien GM 05287
  • 2. Table of Content Nestle Malaysia an Overview Vision and Mission of Nestle Categories of the products BCG Matrix/ Growth Share Matrix Products on BCG Dimension Conclusion
  • 3. Nestle Malaysia an Overview 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 300 halal products in categories Dairy Milk Beverage
  • 6. Nestle Liquid Drink Nestle Ice-cream Healthcare Nutrition
  • 7. Chilled Dairy Maternal & Infant Nutrition
  • 8. Vision and Mission of 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 the products
  • 10. BCG Matrix/ Growth Share 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.
  • 12. Cash Cow • As leader 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 generate large 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/ Problem Child • 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 has low 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 Market Share Rate (Relative Position)High Low
  • 21. Conclusion • BCG framework is 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.