Since the product is not expected to bring in any significant capital, future investment is seen as a wastage of company resources, which could be invested in a Question mark or Star category instead. Dogs:ĭogs are those products that were perceived to have the potential to grow but however failed to create magic due to the slow market growth.įailure to deliver the expected results makes the product a source of loss for the organization, propelling the management to withdraw future investment in the venture. High competition and small market share of the product in the industry is what makes it place in this quadrant. Nestle’s Chocolates and confectionaries is another business unit that can be placed in the Question Mark quadrant of the BCG Matrix of Nestle. With increasing competition and growing need to consume healthy products among consumers, Nestle’s Milk products and Nutrition requires significant investment from the brand to maintain and grow its market share.
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. There are products that formulate a part of the industry that is still in the phase of development, yet the organization has not been able to create a significant position in that industry.
Growing healthier lifestyle trends and emerging markets have prompted the brand to invest large amounts of investments in order to differentiate the bottled water brands from competitors in mature markets and grow brand awareness in emerging markets. In the case of Nestle, Nestle’s Mineral Water and Nestle’s Nescafe Coffee fall in the Star quadrant of the BCG Matrix of Nestle. The products or business units that have a high market share in high growth industry are the stars of the organization. The product requires very less investment to maintain its market share and fight off any competition. With a market share of 80-85 %, Maggi Noddles holds a very strong hold in the market and have high customer loyalty. For Nestle, there is one product that has undoubtedly been the Cash Cow and its Nestle’s Maggi Noddles. Cash Cows:Ĭashcows are the products that have a high market share in a market that has low growth. Let’s check out the BCG Matrix of Nestle and what products of the company fall under what Quadrant. Interesting read: How to develop an effective SEO strategy using theme cluster model
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