In order to make sure that company maintains a competitive edge in the market, it is essential for the company to launch new products to attract more customers and enhance its customer base. New product developed using the innovation and creativity needs to be marketed properly so that the company is able to reach out to the customers. In this manner, it will let them know about the features of the new product (Peter, Olson, and Grunert, 2012).
Nestle already has Chocolate flavour in its Milo product. The company could develop more variants of Milo with different flavours. Mango is one flavour, which has received good response from customers in many other hot beverages products offered by the companies. Nestle expects the same with new Mango flavoured Milo.
To develop a strategic accurate marketing plan, BCG matrix could be used by Nestle, which would allow the company to divide its products portfolios into a matrix that identifies the products into segments based on the following four parameters:
These are the products, which does not have large share in a mature market. Nestle Fruity Yogurt and Nestle Probiotic are some of the products from Nestle that could be put in this category. These are the products that consumes lots of company resources which could be diverted to some other segment and generate more profit instead of keep investing in these products
Question marks or problem child
Nestea and Milo are the products that fall in this category. The market is open for these types of product but the company has not yet able to exploit the market conditions properly (Nestle, 2011). If Nestle would focus more on these products, they could turn into Stars. But it could not be said that it would happen eventually.
Products in this category represent the ones that are in high demand in the market. These products generate good revenue for the company. But, as the market is growing at a good pace, more investments are needed. Nestle Alpino, Neslac and Nescafe Gold are some products from Nestle that fall in this category
Nestle products with large market share in a market that is slow in terms of growth are put in this category. Company enable to generate enough revenue from these products with little investments. Revenue from these products could be used in promoting the new Mango Flavoured Milo