B

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BY :
R
AANCHAL BIRDI I
ANUPAM KAPOOR
KANIKA SOOD X
Nestle India limited
• Riding on the growth of its power brands,
Nestle has extended its dominance in food
business in India as well.
•
• However, a number of its brands require a
repositioning.
•
• The present exercise is an attempt to
analyse the position of the different brand
offered by Nestle India.
•
• BCG matrix of Nestle and all the different
brands offered by Nestle in India have been
analysed along with a critical insight and
The objectives
• (i) To place the various brands of
Nestle in India in the matrix as
suggested by the Boston Consultancy
Group, as based upon the Secondary
data collected.
•
• (ii) To analyse the brands so placed
and critically compare their
placement.
•
• (iii) To compare the outcomes so
BCG Matrix
• The beauty of BCG Matrix, a Matrix developed by
a group known as Boston Consulting Group,
USA, is that it seeks to place the different
products of an organization in different grids
such as to analyze them in a comparative
manner in terms of profitability or in terms of
•
• (a) percentage growth in sales and
• (b) market share position, to be exact. Thus
•
• it gives an opportunity of self assessment to the
organization to reassess its product positioning
and come out with alternative solution if the
original placement of the products in the
market does not meet the desired level of
growth.
Nestle India and BCG
Matrix
• With headquarters at Vevey, Switzerland and
established in 1866, Nestle has growth today to be
the world’s biggest food and beverages company.
• Established in the strong foundation of growth
through innovation and renovation, the company is
known today by its several strong brands which are
dominating the markets the world over.
• Nestle India is a subsidiary of Nestle S.A. of
Switzerland. With six factories and a large number
of co-packers.
• Nestle India is a vibrant company offering a number of
products in the Indian market. In the first nine
months of 2010, it achieved strong growth of
around 21%
• A number of brands are offered by the company in the
country of which while some have already
established a strong hold, many others exhibit
 NESTLE BRANDS
MILK PRODUCTS AND NUTRITION PREPARED DISHES AND COOKING AIDS

Nestle Everyday Dairy Whitener Maggi 2 minute Noodles

Nestle Everyday Ghee Maggi Atta Noddles
Nestle Milk Maggi Cupa Mania
Nestle Slim Milk Maggi Soups
Nestle Milkmaid Maggi Suces
Nestle Dahi Maggi Bhuna Masala
Nestle Neslac Maggi Pazzta

BEVERAGES CHOCOLATES AND CONFECTIONARY

Nescafe Classic Nestle Kitkat

Nescafe Sunrise Premium Nestle Milkybar
Nescafe Sunrise Classic Nestle Bar - One
Nescafe Cappuccino Nestle Munch
Nescafe Ice Tea Nestle Eclairs
Nescafe Hot Tea Mixes Nestle Polo
Nestle Pure Life 
 BCG MATRIX
STA R S QUESTION MARKS
Milo
Nestle Kitkat/Barone/ Munch
N e sca fe
BUSINESS GROWTH RATE

Maggi Sauces
HIGH

M a g g iN o o d le s Maggi Soups

Nestle Butter

Nesvita

Milk

CASH COWS DOGS

 Nestle Maggi Pickles
Ceralac Nestle
Nestea Butter
Milky Bar

Nestle Crunch
LOW

HIGH LOW
MARKET SHARE
Product: Nescafe
Position: Star S- 60% M-+6%
CAGR
• Reasons for present positioning:
• (1) Nescafe is one of the leading coffee brands in
the Indian market.
• (2) It has find a dominance which is unparalleled
by any other brand in the country.
• (3) Not only does it have a high market share but
it growth rate is also significantly
• high.
• (4) The name Nescafe has become generic with
coffee.
Product: Maggi Noodles
Position: Star S- 80% M-+20%
CAGR
• 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, but
with other competition prospects are changing
• (2) The reason essentially lies in the fact that
though Maggi Noodles has a significantly high
market share in the Noodles market in India,
the market growth rate of Noodle consumption
is growing very high.
• (3) Though the number of repeat purchasers is
high in case of Maggi, the rate of increase
among the new purchasers is also growing.
Product: Ceralac
Position: COW S- 85%

• Reasons for present positioning:

• (1) Ceralac has become one of the
leading baby food products
• (2) It has witnesses quite a long hold
in its market share with its sales
increasing on a continuous basis for
almost more than one and a half
decade.
• (3) Its different variants have kept
competitors at bay and its finds a
place easily at almost every general
Position: Question Mark
Intended Placement:
Star


• (The reason why these are is not placed as a dog is that it has
the potential to expand
• and also because the product lies in a market with high
business growth rate.
•
• The retailers don’t give much importance to these items as an
item on the shelf but they also do not completely disregard it
off their stores.
•
• WHY?
•
• These might have not seriously taken promotional drive.
• The main chunk of advertisements is seasonal
• Extensive promotional exercise meant to place it in the mindset
of the Indian psyche.
• It has huge avenues for growth especially analyzing the
extending Indian market.
Position: Question Mark
Intended Placement:
DISINVEST
• Reasons for present positioning:
• (1) Maggi Pickles and, on account of its limited variety
(especially in this taste crazy country) and
comparatively higher prices, has been unable to
acquire a market
• necessary for its bare minimum existence.
•
• (2) The sales of Maggi Pickles has never really trigged
since its launch.
•
• (3) The placement of Maggi Pickles is doubted for the
twin reasons of its high price and packing, which seems
to target it to the upper substrata while the lack of a
significant number of variants poses it a challenge to
maintain itself in such households.
•
• (4) It is not a dog because it is not the market which has
low growth rate. In fact the market of packaged pickle
• (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.
• (2) Extensive price cuts are required but the
matching returns are doubtful.
• (3) Pickles being a non-durable product and
their success essentially related to the
taste of the consumer, are not one of the
core competencies of Nestle, which is
better known to introduce standard taste in
the country and get them approved by the
consumers.
• (4) Thus it is better advised to disinvest in
the business and focus on other brands.
• Reasons for present positioning:
• (1) Nestle Butter, though available in the
market for some time now, has not found
much support from the consumers primarily
on account of the dislike of the taste of
Nestle Butter.
• (2) Considered as salt less, Nestle butter
again is yet to grow from its pre-launch
position on account of the huge
competition it faces from Amul, the market
leader in this field.
• (3) Now, as the market growth rate is quite
significant, yet as Nestle Butter has not
acquired a better share in the market, it
has been placed in the category of
Question Mark.
• 1) Facts do not favour Nestle to continue with
its butter.
•
• (2) Instead of no response, a significant
number of retailers are of the opinion that
Nestle Butter seems to be rejected by the
consumers for the reason that its taste
does not suit the Indian psyche.
•
• (3) Thus it is advisable for Nestle to
discontinue with butter, as it did with its
water brand, Pure Life. Also, it would be
better to concentrate on other brand than
to go in for a head on collision with Amul,
the market leader, which is inevitable on
 • Product: Milky Bar
• Position: Dogs
• Reasons for present positioning:
• (1) It become quite popular in and around the year
2000 but it never reached the stage of a power
brand.


• (2) Primary tried by the Indian consumer as a craze

which laid in trying the first nonbrown chocolate,
Nestle Milky bar was a sweet chocolate with cream
color. Thus the primary acceptance of Milky bar was
not based on its core qualities but on the basis of
certain peculiarities which it contained,
differentiating it from other products in the same
line.
•
• (3) Milky Bar, as a chocolate, though has a growing
market, yet it has been placed as a dog on account
of the inherent lack of core quality which makes it
generic with chocolates. This was the main reason
Intended Placement:
Disinvest
• Comments:
• (1) Milky Bar has lost the primary battle which it
had with mindset of the unaware Indian
consumers who could never contemplate a non-
brown chocolate.
• (2) The market positioning of Nestle Milky Bar has
been only to children (as one can contemplate
from the advertisements which relate only to
children in the age group of 10 -15) and thus it
has lost the adolescent consumer, which is also
a
• major part of the entire consuming segment of
chocolates.
• (3) The promotion style of Milky Bar has
disappeared. The advertisements have been