Bs Accounting and finance

Semester-3
Name:
Ariba khalid
Registration number:
671- fms/bsaf/f21 (13)
Assignment:
Fundamentals of marketing
Date:
25-Oct-2022
Submitted to:
Ma’am Ayesha
 BCG Matrix

A BCG matrix is a model used to analyze a business’s products to aid with

long-term strategic planning. The matrix helps companies identify new growth
opportunities and decide how they should invest for the future.
Most companies offer a wide variety of products, but some deliver
greater returns than others. The BCG matrix gives the business a framework for
evaluating the success of each product to help the company determine which
ones they should invest more money into and which they should eliminate
altogether. It can also help companies identify a new product to introduce to the
market.
The matrix is divided into four quadrants based on market growth and relative
market share. BCG matrix is divided into 4 quadrants.

BCG Matrix of Nestle

1. Star: (high market share /high market growth)

In this areas company has full opportunity as the market as a

whole and share of it both increasing. These gains however be realized without
further development and investment.
 Products:
● Nestle milk pack
● Pure life
● Nido
● Cerelac
● Nestle fruita vitals( nectar juices)
With the growing number of health-conscious customers, these products have the
potential to produce greater market growth and market price. Even though, it
might take heavy investment to make Nestle-brand visible.

2. Cash cows: (high market share/ low market growth)

Cash cows generate more than is invested in them. So, keep them
in your portfolio of products for the time being.
Products:
● Nestle yogurt
● Maggi
● Kitkat
These products can made under star products of nestle add new flavors and do
penetration instead of skimming.

3. Question mark: (low market share/ high market growth)

They consume resources and generate little in return. This category includes
milk based products.
Products:
● Everyday
● Milkpack cream
This domain needs a higher investment, because its in the phase of
development. And it is a high-risk decision to invest in them too. Nestle aims to
revolutionize coffee-making with this new smart coffee maker.
 4. Dog: (low market share/ low market growth)
The term "dogs" refers to businesses or products that have low
relative shore in unattractive, low-growth markets. Dogs may generate enough
cash to break-even, but they are rarely, if ever, worth investing in.
Products:
● Nestle coco crunch
● Nestle cornflakes
● Milo
These products are not sold because they targeting specific economic class or only
rare people like these products.