Bcg matrix case study of nestle

Nevertheless, the decision to replace the product once its positioning fails is a yet more complex decision. Nonetheless there seems to be some barrier for which the retailers seem to recognize it only as a market challenger with subtle features.

In fact a huge number of them related Maggi as a different firm altogether than Nestle 3 Nestle India needs to do away with this attitude of every time trying to impose a foreign taste on the local consumers.

They require very little investment to generate revenue, which allows funds generated from such SBUs to be reinvested into Stars or Question Marks. Even worse, they are often allowed to reinvest substantial cash amounts in their businesses which are mature and not growing anymore.

The small market share obtained by the organization makes the future outlook for the product uncertain, therefore investing in such domains is seen as a high-risk decision.

However, it has a limited number of brands on India. Product: Maggi Noodles Position: Cash Cow Reasons for present positioning: 1 It is surprising to note that Maggi Noodles, which has found more households of consumption in India that any other country in the world and has become the first preference of Indian children in terms of instant food, is only a cash cow and not a star.

Dogs These are the products with low growth or market share These are low growth or low market share products and have very few chances of showing any growth. Question Marks The business units that are identified as question mark are those who do not have a large market share, despite the industry holding growth opportunities for the specific business segment.

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Rana, P. Nestle had launched a brand for people who were living an active life style and engaged in sports. Thus it finds the place as a question mark.

Intended Placement: Disinvest Comments: 1 Placing Maggi Pickles on the hearts and mind of the typical taste centric and money conscious Indian consumer will require an overhauling and huge investment.

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Nestle and BCG matrix strategy