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 organizations autonomous divisions ( activities, or profit centers).

BCG MATRIX of Nestle:

According to Nestle, the relative market share and market growth rates of different productsare 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%

BCG MATRIX Figure

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Market Growth

Star Ceralec

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Nestle Milk Kit Kat Dog Nestle Dahi

Cash Cow Maggi Noddles

Relative Market Share

Conclusions: Ceralec:
Ceralec is one of the leading baby food products.It has witnesses quite a long hold on market shareand it s a major contributir for Nestle.

Nestle Milk and Kit Kat:

Relative market share of Nestle milk and Kit Kat is low as compared with its growth thats why they are lying under head Question mark.

Maggi Noddles:
Growth rate of Maggi Noddles is low as compared with its Relative market share thats 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 thats why it is lying under head Dog.

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