A PROJECT REPORT

ON
CUSTOMER PERCEPTION WITH REFERENCE TO NESCAFE Ltd
FOR THE PARTIAL FULFILLMENT
OF
Master of Business Administration

SUBMITTED TO: SUBMITTED BY:

Dr.Kirti Miglani Sachin Chadha

{Faculity Guide} 43721303918

1
 To Whom It May Concern

I _______________________,Enrolment No. ______________from MBA-III Sem,

Shift_____________ of the Tecnia Institute of Advanced Studies, Delhi hereby
declare that the Summer Training Report (MS-201)
entitled____________________________________________________________
_________________________________at
__________________________________________________________________
is an original work and the same has not been submitted to any other Institute
for the award of any other degree. A presentation of the Summer Training
Report was made on _______________________ and the suggestions as
approved by the faculty were duly incorporated.

Date Student Signature

Certified that the Summer Training Report submitted in partial fulfillment of

Master of Business Administration (MBA) to be awarded by G.G.S.I.P.
University, Delhi by _________________________, Enrolment No.
________________ has been completed under my guidance and is Satisfactory.

Date: Signature of the Faculty Guide

Name of the Guide:

Designation:

2
 ACKNOWLEDGEMENT
for imparting us very valuable professional training in MBA.

I pay my gratitude and sincere regards to Dr.Kirti Migkani my project Guide for giving me the
cream of his knowledge. I am thankful to him/her as he/she has been a constant source of advice,
motivation and inspiration. I am also thankful to him/her for giving his suggestions and
encouragement throughout the project work.

I take the opportunity to express my gratitude and thanks to our computer Lab staff and library
staff for providing me opportunity to utilize their resources for the completion of the project.

I am also thankful to my family and friends for co

I offer my sincere thanks and humble regards to Tecnia Institute Of Advanced Studies,
GGSIP University, New Delhi nstantly motivating me to complete the project and providing
me an environment, which enhanced my knowledge.

Date:
Name: Sachin Chadha
Enrollment .No.43721303918
Course: MBA
(Signature of the Student)

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 TABLE OF CONTENTS

S.NO. TITLE PAGE NO.

1 Student Declaration 1

3 Certificate from Guide 2

4 Acknowledgement 3

5 Executive Summary 4

Chapter - 1: INTRODUCTION TO COMPANY 5

6 1.1 About the Industry 6-7

1.2 About Company Profile 8-17

Chapter - 2:INTRODUCTION TO TOPIC 18

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2. 1 About The Topic 19-30

8 Chapter - 3: LITERATURE REVIEW 31-33

9 Chapter - 4: RESEARCH AND METHODOLOGY 34-38

10 Chapter - 5: DATA ANALYSIS AND INTERPRETATION 39-49

Chapter - 6: FINDINGS AND SUGGESTIONS

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11 6.1 FINDINGS
52
6.2 SUGGESTIONS

12 Chapter -7: CONCLUSION 53-54

13 BIBLIOGRAPHY AND QUESTIONNAIRE 55-59

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 CHAPTER 1

INTRODUCTION

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OVERVIEW OF THE INDUSTRY

Coffee is one of the favorite and temping beverages for many of us. Its rich aroma
will always attract the people. India is now considered as the home of coffee,
where we can see 16 varieties of coffee is grown in 13 distinct widespread regions.

Coffee is a brewed drink prepared from roasted coffee beans, which are the seeds
of berries from the Coffea plant. The genus Coffea is native to tropical Africa,
and Madagascar, the Comoros, Mauritius and Réunion in the Indian Ocean. The
plant was exported from Africa to countries around the world and coffee plants are
now cultivated in over 70 countries, primarily in the equatorial regions of the
Americas, Southeast Asia, India, and Africa. The two most commonly grown are
the highly regarded arabica, and the less sophisticated but stronger and more
hardy robusta. Once ripe, coffee berries are picked, processed, and dried. Dried
coffee seeds (referred to as beans) are roasted to varying degrees, depending on the
desired flavor. Roasted beans are ground and brewed with near boiling water to
produce coffee as a beverage.

Coffee is slightly acidic and can have a stimulating effect on humans because of
its caffeine content. Coffee is one of the most popular drinks in the world. It can be
prepared and presented in a variety of ways (e.g., espresso, French press, cafe latte,

6
etc.). It is usually served hot, although iced coffee is also served. Clinical studies
indicate that moderate coffee consumption is benign or mildly beneficial in healthy
adults, with continuing research on whether long-term consumption
inhibits cognitive decline during aging or lowers the risk of some forms of cancer.

The earliest credible evidence of coffee-drinking appears in the middle of the 15th
century in the Sufi shrines of Yemen. It was here in Arabia that coffee seeds were
first roasted and brewed in a similar way to how it is now prepared. Coffee seeds
were first exported from East Africa to Yemen, as the coffeaarabica plant is
thought to have been indigenous to the former. Yemeni traders took coffee back to
their homeland and began to cultivate the seed. By the 16th century, it had
reached Persia, Turkey, and North Africa. From there, it spread to Europe and the
rest of the world.

Coffee is a major export commodity: it is the top agricultural export for numerous
countries and is among the world's largest legal agricultural exports. It is one of the
most valuable commodities exported by developing countries. Green (unroasted)
coffee is one of the most traded agricultural commodities in the world. Some
controversy is associated with coffee cultivation and the way developed countries
trade with developing nations and the impact of its cultivation on the environment,
in regards to clearing of land for coffee-growing and water use. Consequently, the
markets for fair trade coffee and organic coffee are expanding.

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COFFEE PRODUCTION IN INDIA
Coffee production in India is dominated in the hill tracts of South Indian states,
with the state of Karnataka accounting 71% followed by Kerala 21% and Tamil
Nadu 5% of production of 8,200 tonnes. Indian coffee is said to be the finest coffee
grown in the shade rather than direct sunlight anywhere in the world. There are
approximately 250,000 coffee growers in India; 98% of them are small
growers. As of 2009, the production of coffee in India was only 4.5% of the total
production in the world. Almost 80% of the country's coffee production is
exported. Of that which is exported, 70% is bound for Germany, Russian
federation, Spain, Belgium, Slovenia, United States, Japan, Greece, Netherlands
and France, and Italy accounts for 29% of the exports. Most of the export is
shipped through the Suez Canal.

Coffee is grown in three regions of India with Karnataka, Kerala and Tamil Nadu
forming the traditional coffee growing region of India, followed by the new areas
developed in the non-traditional areas of Andhra Pradesh and Orissa in the eastern
coast of the country and with a third region comprising the states of Assam,
Manipur, Meghalaya, Mizoram, Tripura, Nagaland and Arunachal
Pradesh of Northeastern India, popularly known as “Seven Sister States of India".

Indian coffee, grown mostly in southern India under monsoon rainfall conditions,
is also termed as “Indian monsooned coffee". Its flavour is defined as: "The best
Indian coffee reaches the flavour characteristics of Pacific coffees, but at its worst
it is simply bland and uninspiring”. The two well known species of coffee grown
are the Arabica and Robusta. The first variety that was introduced in the Baba
BudanGiri hill ranges of Karnataka in the 17th century was marketed over the
years under the brand names of Kent and S.795.

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1.1. COMPANY PROFILE

Nescafe is most famous and also one of the oldest coffee brand in India. It has a
strong hold over the Indian market. This brand is renowned for its rich taste and
aroma. It was introduced in 1938 in Switzerland. This brand belongs to Nestle
India Limited. This coffee brand has lot of manufacturing units and coffee
machines set up at across the country. It marketing around 700 million cups of
coffee every day.

Nescafe a brand introduced by the Nestlé Company, can be traced back to the
1930s. In the United States, the Nescafé name was used on its products until the
1960s. Later, Nestlé introduced a new brand in the US called “Taster’s Choice”,
which supplanted Nescafé for many years. Nescafé is a brand of instant coffee
made by Nestlé. It comes in many different product forms. The name is a
portmanteau of the words “Nestlé” and “café.

NESTLÉ India is a subsidiary of NESTLÉ S.A. of Switzerland. With eight

factories and a large number of co-packers, Nestlé India is a vibrant Company that
provides consumers in India with products of global standards and is committed to
long-term sustainable growth and shareholder satisfaction.

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The Company insists on honesty, integrity and fairness in all aspects of its business
and expects the same in its relationships. This has earned it the trust and respect of
every strata of society that it comes in contact with and is acknowledged amongst
India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of
India'.

Nestlé S.A. (French pronunciation: [nɛsle]; English /ˈnɛsleɪ/, /ˈnɛsəl/, /ˈnɛsli/) is a

Swiss transnational food and drink company headquartered in Vevey, Vaud,
Switzerland. It has been the largest food company in the world, measured by
revenues and other metrics, for 2014, 2015, and 2016. It ranked No. 72 on the
Fortune Global 500 in 2014 and No. 33 on the 2016 edition of the Forbes Global
2000 list of largest public companies.

Nestlé's products include baby food, medical food, bottled water, breakfast cereals,
coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods,
and snacks. Twenty-nine of Nestlé's brands have annual sales of over CHF1 billion
(about US$1.1 billion), including Nespresso, Nescafé, Kit
Kat, Smarties, Nesquik, Stouffer's, Vittel, and Maggi. Nestlé has 447 factories,
operates in 194 countries, and employs around 339,000 people. It is one of the
main shareholders of L'Oreal, the world's largest cosmetics company.

Nestlé was formed in 1905 by the merger of the Anglo-Swiss Milk Company,
established in 1866 by brothers George and Charles Page, and FarineLactée
Henri Nestlé, founded in 1866 by Henri Nestlé (born Heinrich Nestle). The
company grew significantly during the First World War and again following the
Second World War, expanding its offerings beyond its early condensed
milk and infant formula products. The company has made a number of corporate
acquisitions, including Crosse & Blackwell in 1950, Findus in 1963, Libby's in
1971, Rowntree Mackintosh in 1988, and Gerber in 2007.

10
Nestlé has a primary listing on the SIX Swiss Exchange and is a constituent of
the Swiss Market Index. It has a secondary listing on Euronext. In 2011, Nestlé
was listed No. 1 in the Fortune Global 500 as the world's most profitable
corporation. With a market capitalisation of US$239.6 billion, Nestlé ranked
No. 11 in the FT Global 500 2014.

The beginnings of Nescafe can be traced all the way back to 1930, when the
Brazilian government, first approached Nestlé. The agency, Brazilian Coffee
Institute seeks Nestle to preserve the huge coffee surpluses, by develop coffee that
was soluble in hot water.

Coffee guru, Max Mergenthaler, and his team set out immediately to find a way of
producing a quality cup of coffee that could be made simply by adding water, yet
would retain the coffee’s natural flavor.

After seven long years of research in Nestle

Swiss laboratories, they found the answer.
The new product was named Nescafe – a
combination of Nestlé and café. Nestle
introduced Nescafe, the first commercially
successful soluble coffee, in Switzerland, on
April 1st, 1938. The company applied the technology at its Hayes factory, west
London.

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Instant coffee processing was not a new
idea; it was invented by a Japanese chemist in
1901 and had been marketed and sold by
other companies without success. Nestle
revolutionized the way instant coffee was
made. Nestle developed a new process for
dehydrating the concentrated coffee which vastly improved the quality. In entailed
spraying a fine mist of the solution into a heated tower where the droplets turned to
powder almost instantly.

For the first half of the next decade, however, World War II hindered its success in
Europe.

Nescafe was soon exported to France, Great Britain and the USA. Its popularity
grew rapidly through the rest of the decade. It was so popular that the entire
production of its US plant was reserved for military use.

By the 1950s, coffee had become the beverage of choice for teenagers, who were
flocking to coffeehouses to hear the new rock ’n’ roll music.

Over the years the company has kept the emphasis on innovation, introducing pure
soluble coffee (1952) solely using roast coffee beans, freeze dried soluble coffee
(1965) and coffee granules (1967). In 1994 Nestle invented the full aroma process,
which improved the quality of instant coffee. Such innovations have made sure that
Nescafe has remained the world’s leading coffee. It is also the third most valuable
brand in the entire drinks sector.

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MISSION STATEMENT
To bring Nescafe to people around the globe, providing a Nescafe to satisfy every
aspect of needs.

Nescafe provides good test, aromatic smells of coffee to people, providing “1 Nescafe
with 1 unique moment” so that everyone can enjoy. Wherever you are, you will be
able to find Nescafe around, whether in shopping complexes,
supermarkets/hypermarkets or even grocery stalls.

GOALS/ ACHIEVEMENTS
Giving people the unique moments (comfort, relaxations) through Nescafe. Stress,
pressures, working overtime has led the people to have at least a cup of Nescafe coffee
to relax them, having chit-chat with friends/colleagues as well, to prevent from
emotional influences.

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HISTORY
Nestlé's origins date back to 1866 when two separate Swiss enterprises were
founded that would later form the core of Nestlé. In the succeeding decades, the
two competing enterprises aggressively expanded their businesses throughout
Europe and the United States.

In August 1867, Charles (US consul in Switzerland) and George Page, two
brothers from Lee County, Illinois, USA, established the Anglo-Swiss Condensed
Milk Company in Cham, Switzerland. Their first British operation was opened
at Chippenham, Wiltshire, in 1873.

In September 1866, in Vevey, Henri Nestlé developed milk-based baby food and
soon began marketing it. The following year saw Daniel Peter begin seven years of
work perfecting his invention, the milk chocolate manufacturing process. Nestlé
was the crucial co-operation that Peter needed to solve the problem of removing all
the water from the milk added to his chocolate and thus preventing the product
from developing mildew. Henri Nestlé retired in 1875 but the company, under new
ownership, retained his name as SociétéFarineLactée Henri Nestlé.

In 1877, Anglo-Swiss added milk-based baby foods to their products; in the

following year, the Nestlé Company added condensed milk to their portfolio,
which made the firms direct and fierce rivals.

In 1879, Nestle merged with milk chocolate inventor Daniel Peter.

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Quality coffee since 1938

The rich taste of your favorite coffee is reflected in its rich history. Nescafe
products are produced by Nestle. The beginnings of NESCAFÉ can be traced all
the way back to 1930, when Nestlé was approached by the Brazilian Coffee
Institute to seek a way to preserve the huge coffee surpluses. Nestlé took up the
challenges, coffee specialist, Max Morgenthaler, and his team set out to find a
way of producing a quality cup of coffee that could be made simply by adding
water, yet would retain the coffee’s natural flavor. After seven long years of
research in Swiss laboratories, they succeeded in producing the world’s first fully
soluble coffee extract and quickly gained popularity around the world.
Today NESCAFÉ is the world’s leading coffee brand with more than 4,000 cups
of NESCAFÉ enjoyed every second throughout the world.The new product was
named NESCAFÉ – a combination of the Nes-root of Nestlé and the word café.
NESCAFÉ was first introduced in Switzerland, on April 1st, 1938. For the first
half of the next decade, however, World War II hindered its success in Europe.
NESCAFÉ was soon exported to France, Great Britain and the USA. American
forces played a key role in re-launching NESCAFÉ in Europe by virtue of the fact
that it was included in their food rations. Its popularity grew rapidly through the
rest of the decade. By the 1950s, coffee had become the beverage of choice for
teenagers, who were flocking to coffee-houses to hear the new rock ’n’ roll
music. In 1965 NESCAFÉ continued to bring the world’s best cup of coffee by
introducing freeze-dried solublecoffee with the launch of Gold Blend. A few
years later, a new technology was invented to capture more aroma and flavor
from every single coffee bean. In 1994 the ‘full aroma’ process was invented to
make the unique quality and character of NESCAFÉ even better.

15
Nestlé first introduced their flagship powdered coffee brand in Switzerland on
April 1, 1938.Nestlé began developing an instant coffee brand in 1930, at the
initiative of the Brazilian government, to help to preserve the substantial surplus of
the annual Brazilian coffee harvest. Max Morgenthaler led the development
project. Nestlé introduced the new product under the brand name "Nescafé" on
April 1, 1938. In 1965, Nestlé introduced a freeze-dried coffee brand called
"Nescafé Gold" in Europe. In the United States, Nestlé used the Nescafé name on
its products until the late 1960s. Later, Nestlé introduced a new brand in the US
and Canada called Taster's Choice, which supplanted Nescafé for many years. The
company continues to sell Taster's Choice as a separate product, branded as
superior to Nescafé and higher priced.

In the United Kingdom, a television advertisement campaign, the Gold Blend

couple starring Anthony Head and Sharon Maughan ran in 12 installments between
1987 and 1993. The first 11 episodes were released as a promotional compilation
video called Love Over Gold in 1993. A novelisation of the same name written
by Susan Moody (under the pseudonym Susannah James) was released in the same
year.

In 2003, the company reintroduced the Nescafé brand in Canada and the US, and
the product is now known as Nescafé Taster's Choice. It is sold in North American
supermarkets in both glass and plastic packaging.

While the Nescafé brand was created for soluble coffee, it has subsequently been
used as an umbrella brand on a number of instant coffee products, including, in the
UK, Gold Blend and Blend 37 freeze-dried coffees.

In 2006, Nescafé launched the new coffee machine system "Dolce Gusto" ("sweet
taste" in Italian). The system allows consumers to make various styles of coffees
themselves (cappuccino, latte macchiato, espresso, lungo, etc.). Additionally, hot
16
chocolate and cold drinks can be prepared with the machine. The machines are
now sold in more than 60 countries. Unlike other Nescafé products, most Dolce
Gusto beverages use roasted and ground coffee beans, instead of instant coffee.

Other marketing activity included experiential marketing/relationship marketing,

which led Nescafé to become the headline sponsor of Good Food Show 2008
at Birmingham NEC as part of their campaign to drive awareness of the increased
Nescafé collection. About 95% of consumers at this popular event rated the
Nescafé Collection stand the best at the show. Nescafé used
advanced 3D technology to engage their consumers, led by iD Experiential.

In the UK in August 2009, Nescafé unveiled a £43 m ad campaign for Nescafé,

focusing on the purity of its coffee and featuring the strapline "Coffee at its
brightest".

Nescafé was ranked 153rd among India's most trusted brands according to
the Brand Trust Report 2012, a study conducted by Trust Research Advisory. In
the Brand Trust Report 2013, Nescafé was ranked 230th among India's most
trusted brands and subsequently, according to the Brand Trust Report 2014,
Nescafé was ranked 209th among India's most trusted brands.

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NESCAFE IN INDIA

• NESCAFE CLASSIC

• NESCAFE GOLD BLEND

• NESCAFE SUNRISE

• NESCAFE INSTA FILTER

• NESCAFE INSTANT COFFEE

• NESCAFE COLD COFFEE

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RECENT DEVELOPMENT
In recent years, Nestlé Health Science has made several acquisitions. It acquired
Vitaflo, which makes clinical nutritional products for people with genetic
disorders; CM&D Pharma Ltd., a company that specialises in the development of
products for patients with chronic conditions like kidney disease; and Prometheus
Laboratories, a firm specialising in treatments for gastrointestinal diseases and
cancer. It also holds a minority stake in Vital Foods, a New Zealand-based
company that develops kiwifruit-based solutions for gastrointestinal conditions as
of 2012.

Another recent purchase included the Jenny Craig weight-loss program,

for US$600 million. Nestlé sold the Jenny Craig business unit to North Castle
Partners in 2013. In February 2013, Nestlé Health Science bought Pamlab, which
makes medical foods based on L-methylfolate targeting depression, diabetes, and
memory loss. In February 2014, Nestlé sold its PowerBar sports nutrition business
to Post Holdings, Inc. Later, in November 2014, Nestlé announced that it was
exploring strategic options for its frozen food subsidiary, Davigel.

In December 2014, Nestlé announced that it was opening 10 skin care research
centres worldwide, deepening its investment in a faster-growing market for
healthcare products. That year, Nestlé spend about $350 million on dermatology
research and development. The first of the research hubs, Nestlé Skin Health
Investigation, Education and Longevity Development (SHIELD) centres, will open
mid 2015 in New York, followed by Hong Kong and São Paulo, and later others in
North America, Asia, and Europe. The initiative is being launched in partnership
with the Global Coalition on Aging (GCOA), a consortium that includes
companies such as Intel and Bank of America.

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Nestlé announced in January 2017 that it was relocating its U.S. headquarters
from Glendale, California, to Rosslyn, Virginia outside of Washington, DC.

In March 2017, Nestlé announced that they will lower the sugar content in Kit
Kat, Yorkie and Aero chocolate bars by 10% by 2018.

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MAJOR COMPITITORS

1. BRU

Under the brand name of Brooke Bond Green Label the brand was pioneered.
Brooke Bond Green Label is India's first branded filter coffee. A part of Hindustan
Lever, BRU Coffee is India's largest and favourite coffee brand that offers a range
of Indian and international coffee products. Since 1968, BRU has constantly
endeavoured to bring varied types of authentic coffee with premium tastes to
Indian consumers. After conducting innumerable coffee trials with coffee samples,
we personally select the best coffee beans and freshly roast them to serve you a
great cup of rich aromatic coffee, whether it's coffee at home or at BRU World
Café. BRU-ed with love and blended with passion to make a perfect coffee recipe,
BRU Coffee lets you discover the lovely moments of your life, with a flavour of
happiness. Some moments in life are special and close to heart. Bru makes these
moments with loved ones even more magical… It is India’s largest coffee brand
that offers a range of coffee products. Its rich aroma and unique blend makes every
moment come alive.

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Ever since its inception, Bru has been on a
constant Endeavour to bring better products and
formats to the consumer with every passing year.
With the launch of Cappuccino in 2007, Bru
pioneered the launch of instant coffee premixes in
India for the youth. Then in 2010, a premium
filter coffee with a blend of 85% coffee and 15% chicory was introduced under the
brand name BRU Select.

In 2011, BRU Lite, a light-tasting coffee with classic Mocha flavor, was launched
for people who avoid coffee because of its bitter taste. In the same year BRU
Exotica was launched which is premium freeze dried coffee sourced from some of
the world’s best coffee-producing regions like Colombia, Brazil and Kilimanjaro.
With BRU Exotica, Bru brought in ‘the world’s finest coffee experience’ for the
discerning Indian consumer. Later, in the same year, BRU Gold - a 100% pure
granulated coffee with an uplifting aroma and superior taste - was launched.

Bru’s specially selected and freshly roasted coffee beans offer a great cup of
aromatic coffee to the consumers, which makes their moments of genuine warmth
and happiness even more special.
Bru also has opened cafes in Mumbai under the name BRU World Cafe with world
coffee experiences to be enjoyed out of home.

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 2. TATA COFFEE GRAND

Tata Coffee is coffee company owned by the Tata Group. The company owns 19
coffee estates in southern India. The estates are spread across the districts
of Coorg, Chickmaglur, and Hassan in Karnataka and Valparai district in Tamil
Nadu. Tata Coffee is the largest integrated coffee plantation company in the world.

Tata Coffee entered into a coffee sourcing and roasting agreement

with Starbucks Coffee Company to supply coffee beans to its coffee chains in
India. Both agreed to work toward developing and improving the profile of Indian-
grown arabica coffees around the world by elevating the stature of Indian coffee,
as well as improving the quality of coffee through sustainable practices and
advanced agronomy solutions.

Tata Coffee's past was rooted in 1922 when two companies – M/s Coorg Co. Ltd.,
London and M/s Pollibetta Coffee Estates Co. Ltd., London – both managed
by Matheson and Company, combined to form Consolidated Coffee Estates Ltd.,
Edinburgh. In 1943, Consolidated Coffee Estates Ltd., Edinburgh became a full-
fledged Indian company headquartered in Pollibeta. In the same year, the shares in
Consolidated Coffee Estates Limited (CCE) were offered to the general public

23
through a prospectus, with the parent, Edinburgh Company, being allotted a major
share as a consideration for transfer of its estates. Shortly thereafter, during the
early part of the 1950–1960 decade, the Edinburgh Company sold all its
shareholdings to the Indian public, relinquishing its controlling interest in CCE and
becoming one of the first sterling plantation company to become an Indian
company. During 1966–67, Volkart properties in India, which included four
estates, two curing works and an export division, merged with CCE, and the
company was renamed as the erstwhile Consolidated Coffee Limited (CCL). Tata
Tea Limited, in a trend setting and transparent open offer to the resident
shareholders, acquired a controlling interest in CCL during 1991-1992. CCL
became the single largest coffee plantation company in Asia with its estates located
in Kodagu, Hassan, and Chikmagalur districts of Karnataka. In a historic move in
September 1999, M/s Asian Coffee Ltd., M/s Veerarajendra Estates Ltd., and M/s
Charagni Ltd., merged with CCL, and became the single largest integrated
plantation company in the world. In 2000, the company was renamed as "Tata
Coffee Limited".

24
 3. DAVIDOFF

The Zino Davidoff Group (Zino Davidoff SA) is a Swiss family business founded
in 1980 and active exclusively in the luxury segment offering a wide portfolio of
products. The company owns and manages the brand Davidoff for watches, leather
goods, writing instruments, men’s and women’s fashion accessories such as
ties, foulards and cufflinks, fragrances, eyewear, coffee and cognac.

25
 CHAPTER 2

RESEARCH
METHODOLOGY

26
2.1. OBJECTIVES OF THE STUDY.

• To analyze the customers preference with respect to Nescafe

• To know customers suggestions and recommendation about Nescafe
• To Study the Consumer Perception about the taste and availability of
product.

2.2. SCOPE OF THE STUDY

• This project provides the knowledge about coffee industry of India.

• It also gives a brief knowledge about the customer preference about various
coffee brands.
• It also gives knowledge about different varieties of coffee available in the
market.
• This study will help us to understand customer’s preference and their needs
among different types of coffee brands.

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2.3. METHODOLOGY

TYPE OF RESEARCH

QUANTITATIVE RESEARCH

Quantitative research allows a firm to develop an understanding of the "big

picture" of their customers' experiences based upon a relatively small number of
interviews. This "sample" of the firm's customers must be carefully designed and
drawn if the results of the study are to be considered representative of the customer
population as a whole. In most cases, the results of quantitative studies are based
upon the responses of a relatively "large" number of interviews. Depending upon
the size of the population and the amount of segmentation desired, "large" can be
as few as 50 responses or range from several hundred to thousands of interviews.
Mail-based, telephone-based, and (more recently) Internet-based surveys and
related data collection.

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RESEARCH DESIGN

DESCRIPTIVE RESEARCH

Descriptive research includes Surveys and fact-finding enquiries of different kinds.

The major purpose of descriptive research is description of the state of affairs, as it
exists as the present. The main characteristic of this method is that the researcher
has no control over the variables; he can only report what has happened or what is
happening, the research cannot describe what caused a situation. Thus, Descriptive
research cannot be used to create a causal relationship, where one variable affects
another.

However, it does not answer questions about eg: how/when/why the characteristics
occurred, which is done under analytic research.

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SOURCES OF DATA COLLECTION
During preparation of the Project Report many different kinds of Data were required
which Included both Primary and Secondary Sources.

PRIMARY SOURCES
Primary sources are original sources from which the researcher directly collects data
that have not been previously collected, e.g., collection of data directly by the
researcher on brand awareness, brand preference, brand loyalty and other aspects of
consumer behavior from a sample of consumers by interviewing them. Primary data
are first-hand information collected through various methods such as observation,
interviewing, mailing etc.

• Questionnaire - A sample questionnaire was provided to around 50 different

people which was used to Derive Results and Analyze customer preference
among various milk brands and how far they have been satisfied with their milk
brand.
A sample of the questionnaire along with Results from Findings and Analysis
are given later in the Project

SECONDARY SOURCES
These are sources containing data that have been collected and compiled for another
purpose. The secondary sources consist of readily available compendia and already
compiled statistical statements and reports whose data may be used by researches for
their studies, e.g., census reports, annual reports and financial statements of
companies, Statistical statements, Reports of Government Departments, Commercial
Banks.

30
 • Journals – Various Journals published by B-Schools as well as Business
houses have provided vital statistical as well as Theoretical Data which have
been very helpful.

• Internet and Other Media Sources – WWW has the latest data and interviews
which helped me in determining the scope pf my project as well as make it as
up to date as possible.

SAMPLE DESIGN AND SAMPLE SIZE

• Sampling Unit

The marketing researcher must define the target population that will be sampled.

• Sample size/Population Size

I have questioned various Consumers for the survey. Sample size of 50 from West
Delhi was used for questionnaire.

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• Sampling Method

Random Sampling

Since the information required was not of a very technical nature

and also looking at the scope of the project and the extent of the
target segment, the sampling technique employed was Random
Sampling.
A random sample gives every unit of the population a known and
non-zero probability of being selected. Since random sampling
implies equal probability to every unit in the population, it is
necessary that the selection of the sample must be free from human
judgment.

32
TOOL OF PRIMARY DATA COLLECTION

QUESTIONNAIRE DESIGN / FORMULATION

A questionnaire is a research instrument consisting of a series of questions and other

prompts for the purpose of gathering information from respondents. Although they are
often designed for statistical analysis of the responses, this is not always the case.
Questionnaires have advantages over some other types of surveys in that they are
cheap, do not require as much effort from the questioner as verbal or telephone
surveys, and often have standardized answers that make it simple to compile data.

TYPES OF QUESTIONS USED IN THIS PROJECT:

• Close ended Questions

To know the choice of the people regarding various matters

• Dichotomous Questions
Which has only two answers “Yes” or “No”?

• Multiple Choice Questions

Where respondent is offered more than two choices. This is done to know
the choice of the customers regarding different matters.

33
 CHAPTER 3
FINDINGS AND ANALYSIS

34
 3.1. DATA ANALYSIS AND INTERPRETATION

1. Do you drink coffee?

Yes No

INTERPRETATION: As per the analysis it is seen that 80% people from the total population
drink coffee while the rest 20% do not drink coffee.

35
2. What age bracket you fall into?

16-19 20-29 30-39 40-49 50+

INTERPRETATION: The age group of 20-29 and 30-39 hold the majority of

coffee consumption.

36
 3 How often do you drink coffee?

Regularly Occasionally Rarely

INTERPRETATION: 50% of the people from the total population have coffee regularly. Only
34% people drink coffee occasionally followed by 16% people who drink coffee rarely.

37
 4 How aware are you with Nescafe brand? 1 being very aware and 5
being not aware at all.

1 2 3 4 5

INTERPRETATION: Nearly 90% of people are very much aware of the brand NESCAFE.

38
 5 What do you think which is the biggest competitor of Nescafe?

Bru Tata Davidoff Others

INTERPRETATION: 50% of people think that Bru is the biggest competitor of Nescafe
followed by 32% who have voted for Tata, 16% for Davidoff.

6 Are you satisfied with the quality and price of Nescafe?

Yes No

INTERPRETATION:85% of people are satisfied with the Nescafe coffee.

39
 7 Why do you prefer Nescafe brand?

Taste Price Availability Others

INTERPRETATION:68% people prefer Nescafe because of its taste and 24% of people prefer
it on the basis of availability.

40
 8 Do you feel that you should switch to some other brand?

Yes No

INTERPRETATION: 95% of people are satisfied with the Nescafe brand and do not want to
switch to another brand.

41
 9 Would Nescafe be your top choicefor buying coffee at home?

Yes No

INTERPRETATION:95% of people have agreed that Nescafe would be their top choice to buy
coffee at home.

42
 10 From where did you see our product?

Advertisement Own Experience Reference

INTERPRETATION: As most of the people are regular coffee drinkers so they know Nescafe
by their own experience.

43
 11 Were you influenced by the brand ambassador of Nescafe and started
drinking it?

Yes No

INTERPRETATION: Majority of people drink coffee on a daily basis so they think that the

advertisement did not have any influence on their coffee consumption but 45% of people have
committed to be influenced by the advertisement.

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 12 What type of coffee do you like?

Hot Cold

INTERPRETATION: 55% of people prefer to have hot coffee while 45% of people prefer cold
coffee.

45
 13 Which flavor of Nescafe Coffee you like the most?

Classic Insta-filter Sunrise Gold Blend Cappuccino

Hazelnut Latte Mocha Caramel

INTERPRETATION: The flavors which hold the top position were Classic
followed by Insta-filter, Gold Blend, Latte, Cappuccino, Hazelnut, Mocha, Sunrise
and finally Caramel.

3.2. FINDINGS

• As per my findings Nescafe is indeed a better coffee brand in comparison to

Bru, Tata, Davidoff and others.

• Most of the people prefer Nescafe because of its taste in the first place
followed by availability and price.

• Most people who drink coffee and are aware of Nescafe are of age group 20-
29 and 30-39 and consume coffee on a regular basis and are satisfied with the
taste as well as the price and do not want to switch their brand.

• As per the analysis Bru is the biggest competitor of Nescafe followed by Tata
Coffee Grand, Davidoff and then others.

46
• As analysed above we have seen that most of the people regularly consume
coffee and have kept NESCAFE as their top choice.

• As per the analysis, most of the people prefer Classic, Insta-filter, Latte and
Cappuccino flavor as their top choice and nearly half of the population like
hot coffee and half of them prefer cold coffee.

47
CHAPTER 4
CONCLUSION

48
CONCLUSION
Coffee is one of the favorite and temping beverages for many of us. Its
rich aroma will always attract the people. India is now considered as the home of
coffee, where we can see 16 varieties of coffee is grown in 13 distinct widespread
regions.

From the above data analysis and findings, it can be concluded that-

• NESCAFE is the leading brand in coffee industry in India.

• NESCAFE provides more satisfaction level to the customers as compared to
any other brand.
• Most of the people have perfect knowledge about the available products in the
markets via friends, own experience or television commercials.
• Customer’s preference does not change in a long run.
• Taste and availability are the key factors that influence the customer’s
decision in choosing the particular brand.
• NESCAFE has more availability as well as variety of flavors as compared to
BRU, TATA and Davidoff.

49
 CHAPTER 5

RECOMMENDATIONS

50
RECOMMENDATIONS

• Consider on the supply of product in the peak season.

• NESCAFE should concentrate on their sales promotion activities.
• NESCAFE should think of opening café houses so that people can enjoy
their trusted brand outside of their home and also this will add competition
to the existing café houses such as Starbucks, Café Coffee Day, Dunkin
Donuts etc.
• NESCAFE should increase their focus on their advertisement campaign
because as analysed above we have seen that nearly have of the people were
influenced by the advertisement or Brand Ambassador of the company.,
• Packaging of product can be improved to influence the buying behavior of
the customer.
• Varieties of coffee can be increased like canned coffee, ready to go tetra
packs etc. so as to increase the customers.
• NESCAFE should decrease the product price so as to beat BRU and TATA
in competition.

51
 CHAPTER 6

LIMITATIONS OF THE
STUDY

52
LIMITATIONS OF THE STUDY
By working on this project, a lot of knowledge has been gained over the coffee
industry of India. But there are a certain no. of limitations while working on this
project. These problems can be illustrated as limitations of study which are as
followed:–

• Most of the contents collected were difficult to understand because it was

new for me to work in this field.

• It was tricky and time consuming to compare between different brands.

• Response of customers could be biased.

• Lack of interest shown by the respondents resulted in incomplete responses.

• Poor and ambiguous responses were there because of some respondents

responded without clearly understanding the questions. But this was
minimized as far as possible because the interviewer assisted the
respondents.

• Contacting the customers was a difficult job.

53
 BIBLIOGRAPHY

BOOKS:

• Dr. F.C. Sharma ,Principles of marketing ,RajeeV bansals publishing

• Philip kotler , principles of marketing ,12 edition

th

• P.k. agarwal , marketing management ,2010 edition , prakash publishing house

WEBSITES:
www.nestle india com
https://www.google.co.in
http://en.wikipedia.org/wiki/Retailing_in_India
http://en.wikipedia.org/wiki/nestle_Retail_India

54
 Questionnaire

Name …

Contact No …

Address …

Question 1: Do you Visit Nestle because of Variety products available here?

a. Yes b) No

Question 3: How do you come to know about Nestle?

a. Advertisement b) Market c) Friends

Question 4: Do you Visit Nestle as it makes easy for you to differentiate Between brand you
want and you don’t want ?
a. Yes b) No

Question 5: When you purchase Nestle coffee?

a) New offer b) Need c) Requirement

Question 6: Are you satisfied with coffee pricing?

a. Yes b) No

Question 7: How much are you satisfied with the ambience of Nestle?

a)Very satisfied b) Satisfied c) Very dissatisfied d) Dissatisfied

Question 8: Does Nestle give better discounts/offers than other retail

Stores?

A yes b) No

55