CHAPTER-1: INTRODUCTION

1.1INTRODUCTION

Nestle India Ltd. is a part of the Nestle SA group which is one of the largest

manufacturing companies in the world. Henri Nestle founded the company (with

its headquarters in Vevey, Switzerland) in 1867. Nestle has two major divisions -

Le Societe des Produits which looks after the production and marketing and

Nestec Ltd. which provides the technical assistance to the group companies. Since

its inception in 1867, the company has diversified it product range from the infant

weaning formula (which was its first product) to beverages, confectionery, ice

creams and pet foods among others. In a span of 130 years the company has

ranked 26th among the world‟s largest corporations and boasts of a turnover of $

48932.5 million and employee strength of 221,144 people spread over 75

countries worldwide (Annexure A).

Nestle has long been viewed as one of the most multinational of the

multinationals. This is because today only 2% of its turnover comes from

Switzerland. Out of the remaining 98%, Europe contributes 43.5%, North and

South America contribute 36.5% and Africa and the Asia Pacific Regions contribute

18%.

1
 1.2RESEARCH OBJECTIVE:

• To study the market share of NESTLE.

• To study and analyze the customer perception and preference

about NESTLE.

• To study the distribution process of Nestle

2
 1.3SCOPE OF THE STUDY

The study covers the branding strategies used by Nestle India. The study assists in
identifying how branding helps any company to get an edge over competition and
also help in a long run. Which eventually helps in growing consumer loyalty due to
brand awareness, brand recall due to effective positioning and so on.

1.4LIMITATION

Nestle is a huge brand therefore all aspect cannot be covered in a short span of
time.

Nestle is a huge brand with multiple brand extensions and therefore it uses various
branding strategies. So it is impossible to identify any single strategy used.

3
 1.5RESEARCH DESIGN

The research design will be combination of exploratory & descriptive

research. The research is used to measure the importance given to FMCG
sector exercising digital platform.
DATA COLLECTION:

Sources of Data:

The data has been collected from both primary as well as secondary source.

Secondary Data

It is defined as the data collected earlier for a purpose other than one
currently being pursued.

As a research I have scanned lot of source to get an access to secondary data

which have formed a reference base to compare the research findings. Secondary
data in this study has provided an insight and forms an outline for the objective
established.

The various source of secondary data used for this study are:

▪ Internet
▪ Blogs
▪ Journals
▪ Books

Primary Data:

The primary data has been collected simultaneously along with secondary
data for meeting the established objectives to provide the solution for the
problem identified in this study.

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 CHAPTER-2

2.1Company Profile

Although Nestle has been associated with India since the beginning of the

century through the importing and trading of infant food and condensed milk,

manufacturing in India only began with the setting up of the factory in Moga in

1962. The first product to be manufactured was Milkmaid. In the last 35 years the

company has shown rapid progress and has increased its product range to 80

products as of October 1997. Nestle India Ltd. now ranks 22nd amongst India‟s

most valuable companies (Annexure B) . Its gross revenue has increased from Rs

1000.1 crores to Rs. 1213.8 crores in 1993. This remarkable growth has been

achieved through - Rapidly creating greater manufacturing capacity, both at

factories as well as with co-packers.

• Taking measures to ensure availability and improved quality of key raw

materials - fresh milk in particular.

• Strengthening of the sales and distribution network (particularly in smaller

towns)

• Ambitious and cohesive manpower training and development programs for the

personnel of the company across all disciplines.

The company‟s exports also resulted in a very successful year in this area as

exports grew by 27% to Rs. 250.8 crores in 2003. The main contributors to this

5
increase were the export of tea and coffee to USA, Japan, Russia, Hungary and

Taiwan.

Nestle India Ltd. wants to further increase its operations in India and has started

construction of its sixth Factory at Bicholim, Goa for the manufacture of culinary

products (a key thrust area) for this purpose.

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 CHAPTER-3

LITERATURE REVIEW

3.1The Spirit of Nestle

“Organisational excellence is never achieved through a one time effort; It is

always a process of continuous improvement across a number of areas of

operation.”

A key factor for Nestle‟s success has been its quest for continuous improvement

through ushering in greater productivity and more efficiency in everyday

operations. Despite the infrastructure impediments in India, Nestle has set itself

high standards of business performance.

This is reflected through the essence of the company - its mission statement.

Nestle’s mission

“To be in every way the leading company in the Indian food industry and a good

corporate citizen by providing our consumers with superior quality products, our

shareholders with rapid growth & fair returns and our employees with a

challenging and satisfying work environment.”

To translate this spirit into a planned and measurable process, Nestle has set up

key objectives across all divisions.

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Key Objectives

Production

To optimise production costs while enhancing product quality so as to make

Nestle products even more competitive in the market place.

Sales and marketing

• To reach a sales turnover of 3000 crores by the year 2003

• To double the turnover every three years

People

• To help employees to retain a long term perspective and integrate them fully

with the company‟s business goals

• To retain a broad perspective while addressing individual needs

• To view growth as a continuous process

• To concentrate on attitudinal changes by developing leadership skills, an

appreciation of interdependence between units and the enhancement of a

sense of belonging to Nestle.

8
Finance

To maintain profit levels above the average for the food industry in India.

The Business Excellence and Common Application (BECA) initiative essentially

translates the spirit of the Journey towards excellence into an organised,

systematic and measurable approach.

The aim is to aid the achievements of the company‟s key objectives of rapid

growth by ensuring that all operations incorporate the spirit of meaningful

planning, effective cost control and efficient implementation. BECA is about “

planned improvement in everything we do ” Factories

Nestle has 6 factories in India. These are

1. Moga (punjab) : The Nestle factory in Moga has the pride of being the first

and most comprehensive factory of Nestle India. Set up in 1962, it represents the

core competence of Nestle India in the manufacture of milk products (Everyday,

Milkmaid), beverages, culinary products (Maggi sauces, noodles, soups etc.),

weaning cereals (Cerelac) and infant milk formulae.

2. Choladi ( Tamil Nadu): The factory in Choladi started production in 1967.

Situated about 60 miles from Calicut, the factory today has 81 employees and

produces 1.5% of the total turnover of Nestle India. It is a 100 percent export

oriented unit which processes freshly picked tea leaves into soluble instant tea.

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3. Nanjagud (Karnataka): Production in this factory began in 1989 with the

manufacture of Nestle instant coffee and Sunrise. Today in addition to instant

coffee the factory also manufactures health beverages. The plant to manufacture

MILO was also commissioned at this factory. This factory employs 145 people and

is cited as a model in terms of environment protection for its installations to purify

waste water as well as for its provisions for recycling coffee wastes.

4. Samalakha (Haryana): This factory was set up in 1993. Located 70

kilometres from Delhi , it manufactures weaning cereals , culinary products

,health beverages and milk products. Recently the expansion of manufacturing

capacity for Milkmaid Dessert Mixes was undertaken at this factory as this new

and unique product category is viewed to have great potential in the future.

5. Ponda (Goa): This Kit-Kat factory was set up in Goa in 1995 at a cost of Rs.

50 crores. It represented a major step by Nestle towards becoming the Number 1

Chocolates and Confectionery Company in India.

6. Bicholim (Goa)

The construction work at this new factory is progressing with speed. This factory

will soon commence the manufacture of culinary products, which is a key thrust

area for the company and will include latest technological improvements relating

to this category of products.

As a part of Nestles efforts towards continuous improvement and excellence in

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Manufacturing operation, a Moga Improvement team (MIT) was put in place at
the Moga factory.

The team comprised of international experts from Nestle Technical Services

(NESTEC) and the local staff. In 1996, it embarked on a program with the single

minded objective of optimizing production costs while enhancing the product

quality so as to make Nestle products even more competitive in the market place.

Drawing upon Nestle‟s global experience and manufacturing expertise in 75

countries the team identified the following areas for detailed study -

• Process improvement to ensure the optimal usage of resources

• Improvement of operational efficiency

• Cost optimization

A series of small but critically important initiatives ranging from redesigning

laboratories to palletisation of raw materials and packaging material utilization,

manufacturing and filling loses and labour man hours resulting in substantial

savings and improved productivity and machine utilization. In addition, several

non tangible benefits in the form of systems for sustainable improvement in areas

like factory maintenance planning tools , down time recording systems and

performance measurement tools were also realized .

This project was highly successful and the company is now implementing its key

learning‟s of MIT in its other factories.

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In a country as vast and diverse as India, supply chain management is absolutely

critical to rapid growth. Through BECA, Nestle has concentrated heavily on

streamlining and improving their supply chain management in order to make it

more dependable, more cost effective and most importantly, more responsive to

market needs.

For better supply chain integration the planning of key operations - purchase,

production, distribution and sales are synchronized to ensure that everybody

works towards a common business plan. Monthly objectives are broken down into

weekly and (wherever necessary) into daily plans and monitored regularly to

ensure smooth implementation and quick corrective action when needed . Major

benefits accrued thus far include reduction in working capital through lower

inventories of finished goods and materials, better stock availability and reduction

in obsolescence of materials.

In addition to traditional performance indicators, quantifiable performance

measures have been identified and implemented in all functional areas such as

sales planning, production output, quality assurance, material ordering

transportation and warehouse management. These measures are monitored

regularly to gauge the extent of improvement and identify root problems for

taking corrective actions.

By 1989 the company had achieved a sales figure of approximately Rs. 258 crores.

1989 was the year of launches. Seven new product lines were launched in this
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year. This was also the year in which the Nanjagud factory was set up. By the year

1992, this sales figure was touching Rs 500 crores. In the 1995 the pace of

launches quickened and since the construction of the factory at Samalakha, 20

new products have been introduced. By 2003, Nestle had about 76 different

products in its portfolio with various new products in the pipeline as well. The

sales figure now touched Rs. 1214 crores. Thus sales grew by 450% over a period

of one and a half decades.

Marketing Strategy

Nestle has adopted a four pronged growth strategy: -

1. Gunning the market with new products and brand extensions.

2. Expansion of the distribution network to small towns for extensive availability.

3. Reduce prices and introduce smaller packages for products to make them more

affordable (a tool to enter price sensitive markets).

4. Focus on employ training and develop a positive attitude through enhanced

manpower development.

5. By year 2003 it expects chocolate & confectionery to account for one in every

third rupee in sale.

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 In the late 1996 fear of breading complacency by not having a continuous

improvement, gave birth to an international sales & marketing improvement

teams (SMIT).

SMIT maps the latest in helping towards the target of year. 2003. The SMIT

exercise is a major global initiative of Nestle to enhance sales & marketing

productivity. Linked with the already existing BECA project, which in turn

emphasises on excellence by improving the distribution set up , this gave rise to

the following growth objectives for the year 2003  Ensure direct coverage of all

urban towns in India.

• Expand distribution to reach 1 million retail outlets on a regular basis.

• Work in partnership with the distributor for the achievement of these

objectives.

• Provide sustainable solution to optimize our secondary sales from distributor

to retailer.

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3.2NEW PRODUCT LAUNCHES

To put all the product launches into perspective, Nestle now has 80 products

including various flavors and variants this awesome list of 80 products for most

companies is an overfull palate. Nestle India Ltd. Still have a variety of new

products in the pipelines. It believes in slowly colonizing as much territory as fast

as it can, adapting to native conditions and then work at “holding off the

advancing herds”. Nestle products can be broadly classified into 5 main ranges

• Milk Products

• Chocolate and Confectionery

• Beverages

• Culinary

• Food service

Milk Products

This category which comprises of condensed milk, baby milk foods , milk

powders , acidified infant food , and other milk products, showed a slump in 1996

as sale of milk products fell from Rs 31.4 crores in 1995 to Rs 31.2 crores in the
15
said year. Consumer offtake remained depressed throughout this year as a

consequence of high price increases necessitated by substantial increases(+50%)

in the cost of basic raw materials( fresh milk ) , over the past two years .

However Nestle retained its leadership in the infant food market with Cerelac,

Lactogen and Nestum and even introduced a new flavour of Cerelac - Cerelac Rice

in 1996.

Chocolates and Confectionery

Nestle pursues the objective of accounting for one in every three rupees in its

sales figures through chocolates and confectionery. This has thus been one of the

thrust areas in Nestle. Nestle this year widened its range of flavours in POLO,

backed by its tremendous success in the Indian Market by adding POLO Spearmint

to its Portfolio. This new flavour has also received an encouraging response in the

market according to market analysts.

Milkybar also retained its position as the number one white chocolate brand in

India, however it did not record a significant increase in sales as a majority of

Indian tastes still do not accept this flavour.

This year however, was a year of tremendous success for Kit Kat .This

internationally renowned brand gained a large increase in the Market share in the

past year and Nestle officials are hopeful that this will further increase in the

coming years. However this Brand along with it success has brought with it its
16
share of Controversy as the Union of India has launched a Litigation against the Kit

Kat family pack.

In 1997 Nestle added to its range of confectionery by introducing SPLASH, “A soft

hearted, hard boiled sweet ” this is being promoted as a sweet unique to India and

is positioned to a target audience in the age group of 4 to 12 years and “anyone

with a soft heart” is a potential customer. Priced at Rs. 1 for a 7.5 gram candy

splash has been introduced selectively in the

South and has been speculated to repeat Polo‟s performance. Nestle‟s officials

claim that this candy has the potential to grab a quarter of the 700 crores

confectionery market.

The most recent of Nestle affairs with the confectionery market has been the

introduction of Mithai Magic which is “a little Mithai , a little magic “ .This new

product was launched in September 1997 ,in time for the Diwali purchases of

sweets . This brand has been positioned somewhere between chocolates and

traditional sweets and the company is employing a push strategy to promote this

brand.

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Beverages

This year has been very successful in the beverages market for Nestle .The sales

of beverages has increased from Rs 323.3 crores in 2002 to Rs 398.8 crores in

2003.

Nestles Flagship Nescafe which was pegged at Rupees 1040 per Kilogram before

the launch of Tata Cafe, met with stiff competition from Tata Cafe priced at

Rupees 550 per Kg once it was introduced . Tata cafe claimed to have garnered a

market share of 17% by December 1996. This forced Nestle to cut prices of

Nescafe to Rupees 840 per Kg. However Nescafe still retains 83% market share in

the Rs 177 Crores market for pure instant coffee. Nestle Sunrise also showed an

increase in sales and captured 20 % of the Rs 253 crores market in Mixed instant

coffee. This year Nestle also launched MILO, an internationally renowned

chocolate energy drink, and the response for this has been encouraging.

Nestle has also introduced Tasters Choice tea bag pitched against Taj mahal tea
bags.

Culinary Products

The market in culinary products had witnessed a high growth consequent to

aggressive pricing decisions on existing products and the introduction of a variety

of new products to match the needs of the Indian Housewife. Encouraged by this

success Nestle launched Maggi Macoroni

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Snack in three flavors - Chicken , Masala and Tomato. Nestle officials‟ say that this

would consolidate Maggis position as the number 1 culinary brand in India. The

product focuses on convenience and innovation as its Unique Selling Proposition.

This snack has opened a new segment for the maggi brands. The brand is

positioned as youthful and is represented by the twists and curls of the macaroni

snack. It is speculated to be introduced in a phase manner nation-wide to be

placed in the 7.5 lakh outlets that Maggi noodles sells in .

In the spirit of catering to Indian tastes Maggi introduced maggi pickles in five

variants benchmarked to give the “ghar ka swad”. Maggi Dosa Mix was also

introduced to offer superior quality and added convenience. Apart from this

Milkmaid Kalakand Mix, a traditional north Indian sweet of premium quality was

added to the milkmaid dessert mixes. Maggi soup also launched three new

variants. Maggi Rassam in particular was noticeable as yet another attempt to

make traditional Indian cooking a little bit easier.

Food Service

Food service items basically deal with the out of home segments, which would

include vending machines. Nestle‟s food service business is poised for rapid

expansion to meet the growing need for such a reliable, time saving and cost

effective service in this modern age .

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 Nestle wants to sell 500 million cups of tea and coffee through its vending

machines in the year 2003. It currently has 3500 vending machines at assorted

locations (both public and private). In 1995 Nestle food service did well to vend 40

million cups of Nescafe and Tasters Choice tea. Its 2003 sales were placed at 59

million cups of Nescafe and 36 million cups of tea, this figure was however way

below the expected sales for the year.

Distribution strategy

It is an indisputable fact that fundamentally all consumers marketing must first

assure availability of the product to the consumer. In India, the urban population

alone is of a whooping 250 million consumers -an unbelievable potential for any

FMCG . The potential being spread across more than 4000 towns have to be very

effectively and efficiently tapped. Nestle till now was retailing in a limited number

of towns with only 200 towns accounting for 70 % of their business. For Nestle to

be a leader in the food industry, expanding the distribution network for more

retail outlets was a must.

To meet this challenge, Nestle is working towards an objective of increasing the

retail base to 1,000,000 outlets by the year 2003. This network is feasible as

Nestle has a triangular distribution structure thus the span of control is still

retained. The Distribution Network is explained in figure 2.

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 In order to achieve these distribution objectives Nestle has formulated an

international sales and marketing improvement team (SMIT). SMIT focuses on a

single objective -provide sustainable solutions to optimize the distributor and

retailer sales through a step by step approach starting with analysis of market

followed by identification of the probable retail outlets and finally selection of the

same .The team also focuses on proper implementation of resources and timely

follow ups for effective solutions.

Advertising Strategy

Nestle, a cash rich company has plenty of marketing prowess. This can be credited

to a strong and sound advertising strategy.

Nestle in the year 2002 had an advertisement spending of Rs 43.3 crores (net) .
Tracing

Nestles advertising responses the ad campaign by HTA of „Hot and Sweet‟ was a

runway success this ad was actually meant to fend off a challenge from H.J Heinz.

The Maggi ranges of sauces were introduced in 1985 but sales didn‟t catch up

until 1990 but till 2003 it got considerable market share. At this point the popular

and memorable campaign of Javed Jaffrey and Pankaj Kapoor was launched by

Producer Pralad Kakkar . This commercial was an instant success. The volume of

sales kept rising from an initial growth of 13% to 20% in the next year.

Today the sales figure for Maggi Sauces is growing at a steady 6% per year.

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Another noteworthy campaign was that of POLO (the mint with a hole), devised

by Mudra advertising agency. This campaign was awarded 11 industry ad awards.

In 2002 the advertisement budget has been approximately Rs 56 crores where

again innovation was the main focus. The new nation-wide product launch of

Maggi Macaroni Snack and Mithai Magic have been designed by Mudra . The

Macaroni ad with its use of “English “ and a catchy beat (which is the latest trend

amongst the Indian Advertisers) appeals well to the target audience and the

Mithai Magic commercial does keep the secret of the contents in the box , intact.

“Training is an integral and indispensable part of Nestle . I regard the importance

of training a highly as research and development .

- Mr. Helmut Maucher

Chairman and CEO Nestle S A Group

Recruitment Policy

Recruitment of fresh management trainees and sales officers is done every April-

May. These graduates are generally selected from the best institutes in the

country through a series of interviews. They are then put through a probation

period of 12-18 months. Although Nestle does not offer some of the highest pay

packets in the industry, it is considered a growth oriented company.

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Training and Development: Continuous development of skills and attitudes of

employees is critical to the achievement of excellence. At Nestle therefore training

and development of human resources is viewed as a long term investment.

“If you are planning for one year , Plant wheat;

If you are planning for ten years, plant a tree;

If you are planning for life, train people.”

- Old Chinese proverb

This proverb goes with the organizations most enduring beliefs worldwide -

• That long term planning is the key to Nestles global success

• That Nestle‟s most valuable assets are its people

• Nestle‟s policy is to rely on a more decentralized form of management by

building in the habit to “Think Nestle”.

At Nestle India training and development is an integral part of the business plan

and strategy in line with the objectives for the year 2003 and aims to -

• Help employees to retain long term perspective and integrate them fully with

the company‟s business goals

23
• View the growth of both the personnel and the company as a continuous
process .

• Concentrate on attitudinal changes by developing leadership skills, an

appreciation of interdependence between units and the enhancement of a

sense of belonging to Nestle .

In 2003 Nestle India benefited greatly from the training program offered at the

Rive Reine International Training Center at Vevey, Switzerland. This training

program helped facilitate the transfer of common Knowledge (technical,

marketing, and finance) across the Nestle Group and ensure interdisciplinary

approach to learning and uniform progress with a tailor-made approach for all.

Company Training needs -

• analysis of training needs of Managers

• self development programs for staff at HO

• programs for company orientation and information sharing

• programs aimed at computer training and computerization

• Establishment of contact with leading management institutes with a view to

use the same for meeting local training requirements

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3.3Nestlé’s Corporate Culture

As we had discussed before, Nestle is one of the most multinational of

multinationals and is spread over 75 countries worldwide. This implies that it has

employees from diverse cultural backgrounds. Nestle respects the distinctive

culture, mentality and traditions of every employee in every country. What Nestle

aims at is to incorporate its own culture into its employees without stifling the

individual employee‟s culture and identity. When we went to Nestle we could feel

the existence of a distinctive work culture amongst the management - the staff

seemed highly motivated & cheerful and everybody had pin up boards in front of

their tables with reminders , motivational messages and even time logs (the

Nestle people seemed as if they availed of the benefits of time management) .

Nestle has a diverse product range and so it also has diversified risks Thus

Management on Information systems plays a vital role in Nestle to provide

information to the Sales and Marketing as well a the finance department .The

Electronic Data Processing Department looks after Management Information

Systems . Apart from this, Nestle has a vast distribution network. In order to

support the BECA process, an integrated computer system has been put in place

across the company to link all functional areas and locations. This common linked

system will improve information availability, aid quick decision-making and

improve supply chain integration.

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 CHAPER-4

Data Analysis

4.1SALES ANALYSIS

By Geographic Area
Table no- 1

In Million of CHF 2006 (%)

Europe 25/706 36.7

North and South America 22/262 31.8

Africa, Asia and Oceania 13/493 19.3

Other Activities 8/537 12.2

69/998
By Main Product Group graph no- 1

Other Activities 12.2%

Europe
Africa, Asia and Oceania 36.7%
19.3%

North and South America

31.8%

Table no- 2

In Million of CHF 2001(%)

26
Beverages 19/142 27.4

Milk Products, Nutrition and Ice 334 27.6

Cream

Prepared Dishes and Cooking Aids 17/660 25.2

Chocolate and Confectionery 10/663 15.2

Pharmaceuticals 3/1999 4.6

Chocolateb and
Graph no-2 Pharmaceut
Cofectionary 4.6% Beverages
15.2% 27.4%

Prepared Dishes
and Cooking Aids icals

25.2% Milk Products,

Nutrition and Ice
Cream
27.6%

Breakdown of 2006 Trading Expenses (in %)

Table no-3

Percentage

Raw Materials 26.2

27
Packaging 8.8

Salaries and Welfare Expenses 16.6

Depreciation 4.1

Other Trading Expenses 34.5

Total Trading Expenses 90.2

Trading Profit 9.8

Go to Financial Guide for additional facts and figures.

Company Profile Graph no-3

Raw Materials
Trading Profit
13.8%
5.2%
Packaging
4.6%
Salaries and
Welfare Expenses
8.7%

Depreciation
2.2%

Total Trading Other Trading

Expenses Expenses

47.4% 18.1%
TODAY NESTLE IS PRESENT IN DIFFERENT MARKETS WITH THE

FOLLOWING MAIN BRANDS

Soluble coffee

Nescafe, Taster's Choice, Ricore, Ricoffy.

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Roast and Ground Coffee

Hills Bros., MJB, Bonka, Zoegas, Loumidis

Mineral Water

Perrier, Contrex, Vittel, Valvert, Quezac, Arrowhead, Poland Spring, Buxton, Vera,

Blaue Quellen, Calistoga, Santa Maria, San Pellegrino.

Other beverages

Nesquik, Nescau, Nestea, Milo, Carnation, Libby's Caro.

Dairy Product

Nido, Nespray, Carnation, Milkmaid/ La Lechera, Gloria, Neslac, Barenmarke.

Breakfast Cereals

Nestle

Coffee Creamers

Coffee-mate

Infant Foods and Dietetic Products

Nestle, Nan, Lactogen, Cerelac, Nestum, Guigoz

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Culinary Products (Bouillons, soups, seasonings, prepared dishes, canned food,

pasta, sauces)

Maggi, Crosse and Blackwell, Libby's, Thomy, Builtoni, Contadina

Frozen Foods

Findus, Stouffer's Buitoni, Maggi

Ice Cream

Nestle, Frisco, Dairy Farm, Magnolia, Motta, Camy , ect.

Refrigerated Products (yogurts, desserts, pasta sauces)

Nestle, Locatelli, Vismara, Buitoni, Contadina

Chocolate and Confectionery

Nestle, Crunch, Cailler, Frigor, Chokito, Sarotti, Galak/Milkybar, Yes, Kit Kat,

Quality Street, Smarties, Baci, After Eight, Baby Ruth, Butterfinger, Lion, Nuts,
Rolo,

Aero, Polo, etc.

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Food Services and Professional Products

Chef, Davigel, Santa Rica

Pet Care

Friskies, Fancy Feast, Aplo, Mighty Dog, Gourmet.

Specialized products for the food industry

Food Ingredients Specialties (FIS)

Ophthalmological products

Alcon

Cosmetics

L'Oreal

SELECT A SAMPLING FRAME

Aadhar Card, Pan Card.

SAMPLING METHOD

Probability sampling

DETAILS OF SAMPLE

Gender: Male & Female.

Age: 20 & above

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Profile: FMCG user & College students.

DETAILS OF SAMPLING

Total number of students = 100

Number of Male & Female user = 100

AGE Male & Female
user
20-35 60
36-50 20
51 & 20
Above

4.2 Survey
32
Q1. Does nestle had created brand in mind of consumer?

• Yes
• No
Graph no-4

From the survey, we can see that 92% says that Nestle had created brand in mind
of consumer, where as remaining 8% say it doesn‟t had created brand in mind of
consumer.

Q2. Is brand image an important aspect prior to purchase of a product?

33
 • Yes

• No
Graph no-5

According to survey 78% agree that brand image is an important aspect prior to
purchase of a product and for remaining 22% disagree.

Q3. What do you think of NESTLE as a brand?

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 • Very good

• Good

• Average

• Poor

• Very poor
Graph no-6

According to survey 44% respondents Nestle as a brand is very good, for 21%
Nestle is a good brand, for 18 % Nestle is Average brand , for 10% it is poor brand
and for remaining 7% it is very poor.

Q4. What are the products offered by Nestle?

• Maggi
35
 • Kitkat
• Nescafe powder
• Cerelac
• Cornflakes
Graph no-7

According to the responses, 44% says that Nestle offers Maggi, for 24% Nestle
offers kit Kat, for 18% it offers Nescafe powder, for 7% it offers cerelac & for 9% it
offers cornflakes.

Q5. Do nestle brand have controlled the market?

36
 • YES
• NO
Graph no-8

The survey reveals that 54% agree on Nestle brand have controlled the market
and for remaining 46% it does not controls the market.

Q6. Does nestle brand market share is increasing?

• Strongly agree
• Neutral

37
 • Strongly disagree

Graph no-9

According to the survey 54% strongly agree that Nestle brand market share is
increasing/decreasing, remaining 32% are neutral and remaining 14% strongly
disagree that Nestle brand market share is increasing/decreasing.

Q7. What are your perception on nestle brand?

• Strong brand
• Normal brand
• Weak brand
38
Graph no-10

From the survey, it is revealed that 37% respondents perceive that Nestle is a
strong brand, 39% perceive it as Normal brand and for remaining 24% perceive it
as a weak brand.

Q8. How does nestle delivery system work?

• Godown- agent-distributor-retailer-end consumer

• Godown- agent-distributor-wholesaler-retailer-end consumer
• Godown- agent-stockist-re distributor-retailer-end consumer

39
Graph no-11

According to survey 48% respondents the Nestle delivery system works on

Godown- agentdistributor-retailer-end consumer, for 27% the Nestle delivery
system works on Godown- agent-distributorwholesaler-retailer-end consumer and
for remaining 25% Nestle delivery system work on Godown- agentstockist-re
distributor-retailer-end consumer

Q9. How would you rate availability of NESTLE products?

• Very good

• Good

• Average

40
 • Poor

• Very poor
Graph no-12

The survey reveals that 29% respondents rate Nestle as very good in terms of
availability of Nestle products, for 24% rate it is a Good, for 18% it is rated a
average, for 16% it is poor and for remaining 13% it is rated as very poor in
terms of availability of Nestle products.

Q10. How many NESTLE products are consumed by you or at your home in a day?

• 1–3

• 4–6

• 7–9
Graph no-13

41
The survey reveals that 56% say 1 to 3 times the Nestle products are consumed by
them or at home in a day, for 28% , it is 4 to 6 times the Nestle products are being
consumed by them or at a home in a day and remaining 16% consume 7-9 times a
day.

Q11. What is the Supply Chain process?

• Plan
• Source
• Execute
• Deliver
• return
Graph no-14

42
According to the respondents 24% says the supply chain process of nestle is
Planned, for 18% supply chain process of nestle is source, for 20% the supply chain
process is executed, for 24% it is a delivered supply chain process and for
remaining 14% the supply chain process of Nestle is return supply chain process.

CHAPTER-5: FINDINGS, SUGGETION AND CONCLUSION

5.1: FINDINGS
• From the survey, we can see that 92% says that Nestle had created brand in

mind of consumer, where as remaining 8% say it doesn‟t had created brand

in mind of consumer.

• According to survey 78% agree that brand image is an important aspect

prior to purchase of a product and for remaining 22% disagree.
43
• According to survey 44% respondents Nestle as a brand is very good, for
21% Nestle is a good brand, for 18 % Nestle is Average brand , for 10% it is
poor brand and for remaining 7% it is very poor.
• According to the responses, 44% says that Nestle offers Maggi, for 24%
Nestle offers kit Kat, for 18% it offers Nescafe powder, for 7% it offers
cerelac & for 9% it offers cornflakes.

• The survey reveals that 54% agree on Nestle brand have controlled the
market and for remaining 46% it does not controls the market.

• According to the survey 54% strongly agree that Nestle brand market share
is increasing/decreasing, remaining 32% are neutral and remaining 14%
strongly disagree that Nestle brand market share is increasing/decreasing.

• According to survey 48% respondents the Nestle delivery system works on

Godown- agent distributor-retailer-end consumer, for 27% the Nestle
delivery system works on Godown- agent distributor-wholesaler-retailer-
end consumer and for remaining 25% Nestle delivery system work on
Godown- agent-stockiest-re distributor-retailer-end consumer
• The survey reveals that 29% respondents rate Nestle as very good in terms
of availability of Nestle products, for 24% rate it is a Good, for 18% it is
rated a average, for 16% it is poor and for remaining 13% it is rated as very
poor in terms of availability of Nestle products.

• The survey reveals that 56% say 1 to 3 times the Nestle products are
consumed by them or at home in a day, for 28% , it is 4 to 6 times the
Nestle products are being consumed by them or at a home in a day and
remaining 16% consume 7-9 times a day.
• According to the respondents 24% says the supply chain process of nestle is
Planned, for
44
 18% supply chain process of nestle is source, for 20% the supply chain
process is executed, for 24% it is a delivered supply chain process and for
remaining 14% the supply chain process of Nestle is return supply chain
process.

5.2:HYPOTHESIS TESTING
Set 1:
Set 1: To study the market share of NESTLE.
H0: There is no crash in market share of NESTLE
H1: There is a crash in market share of NESTLE
Q6. Does nestle brand market share is increasing ?
• Strongly agree
• Neutral
• Strongly disagree

45
According to the survey 54% strongly agree that Nestle brand market share is
increasing/decreasing, remaining 32% are neutral and remaining 14% strongly
disagree that Nestle brand market share is increasing/decreasing.

HENCE HYPOTHESIS H0 IS ACCEPTED AND H1 IS REJECTED.

Set 2:
Set 2: To study and analyze the customer perception and preference about
NESTLE.
H0: There is no impact of customer perception on Nestle brand.
H1: There is an impact of customer perception on Nestle brand.
Q3. What do you think of NESTLE as a brand?

• Very good

• Good

• Average

46
 • Poor

• Very poor

According to survey 44% respondents Nestle as a brand is very good, for 21%
Nestle is a good brand, for 18 % Nestle is Average brand , for 10% it is poor
brand and for remaining 7% it is very poor. HENCE
HYPOTHESIS H0 IS ACCEPTED AND H1 IS REJECTED.

Q7. What are your perception on nestle brand?

• Strong brand
• Normal brand
• Weak brand

47
From the survey, it is revealed that 37% respondents perceive that Nestle is a
strong brand, 39% perceive it as Normal brand and for remaining 24% perceive it
as a weak brand.

HENCE HYPOTHESIS H1 IS ACCEPTED AND H0 IS REJECTED.

Set 3:
Set 3: To study the distribution process of
Nestle H0: Distribution process of nestle is
effective.
H1: Distribution process of nestle is not effective.
Q11. What is the Supply Chain process?

48
 • Plan
• Source
• Execute
• Deliver
• return

According to the respondents 24% says the supply chain process of nestle is
Planned, for 18% supply chain process of nestle is source, for 20% the supply chain
process is executed, for 24% it is a delivered supply chain process and for
remaining 14% the supply chain process of Nestle is return supply chain process.

HENCE HYPOTHESIS H0 IS ACCEPTED AND H1 IS REJECTED.

5.3CONCLUSION

By nestle retailer perspective there will be a greater career opportunity, and

increase in ability, skills. We also came to know that pursuing nestle from retailer
perspective is way better than any other places. Many of the customer say that
they are pursuing nestle and ITC because many of them want to be an

49
entrepreneur. Analyzing these characteristics it can be suggested that as FMCG
products are low involvement products and comes under „variety seeking buying
behavior‟. Consumer do brand switch frequently in case of FMCG products due to
variety of options available from different brands. Therefore, on the level of brand
loyalty one cannot expect committed buyer in this segment.

CHAPTER-6:
BIBLIOGRAPHY

6.1BIBLIOGRAPHY

 https://www.nestle.in/

 https://www.nestlenutritioninstitute.org/resources/library/Free/journalarti
cle/Pages/JournalArticle.aspx

50
 http://ideasmakemarket.com/2012/02/ideasclash-2-0-entry6-branding-
strategy-of- magginoodles.html

 The State Institute of Statistics conducted the Census of Businesses in 2002,

but the results were not available as of January 2005.

 https://www.moneycontrol.com/nestle

 Brand Mix l Definition and Concept l Marketing l MBA Skool-Study. Learn.

Share. http://www.mbaskool.com/business-concepts/marketing-and-
strategyterms/8761-brandmix.html. Access on 8 May 2014.

 Van Niekerk, A (2007). "Strategic management of media assets for

optimizing market communication strategies, obtaining a sustainable
competitive advantage and maximizing return on investment: An empirical
study". Journal of Digital Asset Management. 3 (2): 89–98.
doi:10.1057/palgrave.dam.3650070

 Lee, J.; Ham, C.; Kim, M. (2013). "Why People Pass Along Online Video
Advertising: From the Perspectives of the Interpersonal Communication
Motives Scale and the Theory of Reasoned Action". Journal of Interactive
Advertising. 13 (1): 1– s13. doi:10.1080/15252019.2013.768048 
Household Labor Force Survey.
 High inflation rates in the 1990s, of modern retail formats.
 Since the surveyed firms are large firms, they account a smaller share of
employment.
 Frito-Lay-salty-snack market in Turkey, traditional retailers, in the period
1998-2003.

51
 CHAPTER-7: APPENDICES

7.1: QUESTIONNAIRE:

Survey on management of nestle india ltd.

This survey is conducted in order to collect data for a research paper related to
management of nestle india ltd.

The data will be used only for educational purpose and the confidentiality of the
information provided will be maintained.

52
1. NAME:

__________________ 2. AGE:

__________________

3. GENDER:

o MALE o
FEMALE

Please answer the following questions

This survey is conducted in order to collect data for a research paper related to
management of nestle India ltd. The data will be used only for educational
purpose and the confidentiality of the data will be maintained.

Q1. Does nestle had created brand in mind of consumer?

• Yes
• No

Q2. Is brand image an important aspect prior to purchase of a product?

• Yes

• No

Q3. What do you think of NESTLE as a brand?

53
 • Very good

• Good

• Average

• Poor

• Very poor

Q4. What are the products offered by Nestle?

• Maggi
• Kitkat
• Nescafe powder
• Cereal
• Cornflakes
Q5. Do nestle brand have controlled the market?

• YES
• NO
Q6. Does nestle brand market share is increasing ?
• Strongly agree
• Neutral
• Strongly disagree

Q7. What are your perception on nestle brand?

• Strong brand
• Normal brand
• Weak brand

54
Q8. How does nestle delivery system work ?
• God own- agent-distributor-retailer-end consumer
• God own- agent-distributor-wholesaler-retailer-end consumer
• God own- agent-stockiest-re distributor-retailer-end consumer

Q9. How would you rate availability of NESTLE products?

• Very good

• Good

• Average

• Poor

• Very poor

Q10. How many NESTLE products are consumed by you or at your home in a day?

• 1–3

• 4–6

• 7–9

Q11. What is the Supply Chain process?

• Plan
• Source
• Execute
55
• Deliver
• Return

56