Boston Matrix and

Nestle Pakistan






Presented To

Tahir Ashfaq, Associate Professor
M. Phil. (TQM), M.A. (English), PGD (TQM)

Presented By

Arslan Nawaz
Muhammad Saghir
Muhammad Ali Naqvi
A.D. Ahsan
Sumbal
Madiha Sabir
Javeria
Hina
2011



1.1 What is Boston Model?
The Boston Model is a chart that had been created by Bruce Henderson for the Boston Consulting
Group in 1968 to help corporations with analyzing their business units or product lines. This helps
the company allocate resources and is used as an analytical tool in brand marketing, product
management, strategic management, and portfolio analysis.
2.0 Other Names
Growth-share matrix
BCG matrix
Boston Box \ Matrix
Boston Consulting Group analysis
Portfolio diagram
3.0 Why its important for companies?
The company must
Analyze its current business portfolio and decide which businesses should receive more or
less investment,
And
Develop growth strategies for adding new products and businesses to the portfolio, whilst
at the same time deciding when products and businesses should no longer be retained.
4.0 How to prepare this model?
This categorizes the products into one of four different areas, based on:
Market share does the product being sold have a low or high market share?
Market growth are the numbers of potential customers in the market growing or not
The four categories can be described as follows
Dogs / Shrinkers (Low Market Share / Low Market Growth)
Unsurprisingly, the term "dogs" refers to businesses or products that have low relative share in
unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are
rarely, if ever, worth investing in.



Cash Cows / Bankers (High Market Share / Low Market Growth)
These are products with a high share of a slow growth market. Cash Cows generate more than is
invested in them. So keep them in your portfolio of products for the time being.
Stars / Growers (High Market Share / High Market Growth)
These are areas where there is real opportunity as the market as a whole and your share of it are
both increasing. These gains however will not be realized without further development and
investment.
Question Marks/Maybes/Problem Children (Low Market Share / High Market Growth)
These are products with a low share of a high growth market. They consume resources and
generate little in return.
5.0 Boston model and Nestle Pakistan
5.0.1 Nestle products in Pakistan
Nestle Milkpak Nestle Fruita Vitals (Necter Juices)
Nesvita Pure Life
Nido Milo
Everyday Maggi
Milkpak Cream Cerelac
Nestle Dahi Nestle Koko Crunch
Nestle Raita Nestle Cornflakes
Kit Kat Polo








7.0 Categorized under Boston Matrix
7.0.1 Star Category
Nestle Milkpak
Pure life
Nido
Cerelac
Nestle Fruita Vitals (Necter Juices)
Our suggestion
On the base of our survey and statistic these products are widely used by peoples in Pakistan. So
to increase market share. Nestle should decrease the price of these products.
7.0.2 Question Mark Category
? Everyday
? Milkpak Cream
Our Suggestion
There are some minor default in above mentioned products like there taste and expiry dates.
These products can become star product if these defaults be removed.
7.0.3 Cash Cow Category
$ Nestle Dahi
$ Maggi
$ Kitkat
$ Polo
Our Suggestion
These product can made star products of nestle if nestle add new flavors and do penetration
instead of skimming.
7.0.4 Dog Category
Nestle Koko Crunch
Nestle Cornflakes
Milo
Nestle Raita

Our suggestion
These products are not sold as much due to following factors.
Targeting specific economic class.
Not according to taste of peoples.
Rare peoples like these products.
8.0 References
http://en.wikipedia.org/wiki/Growth-share_matrix
http://www.netmba.com/strategy/matrix/bcg/
http://www.quickmba.com/strategy/matrix/bcg/
http://www.bcg.com/documents/file13904.pdf
http://tutor2u.net/business/strategy/bcg_box.htm
http://www.nestle.pk/Brand/AmbientDairy
http://www.nestle.pk/Brand/ChilledDairy
http://www.nestle.pk/Brand/Beverages
http://www.nestle.pk/Brand/BottledWater
http://www.nestle.pk/Brand/CulinaryFood
http://www.nestle.pk/Brand/BabyFood
http://www.nestle.pk/Brand/BreakfastCereals
http://www.nestle.pk/Brand/Confectionary