SAINTGITS INSTITUTE OF MANANGEMENT

PROJECT PHASE-2

SUBJECT: MARKETING MANAGEMENT

COMPANY: NESTLE

SUBMITTED TO
Mrs. SHINO ABRAHAM
Asst Professor
Saint gits Institute Of Management

SUBMITTED BY
SACHIN THOMAS GEORGE
Batch A
2019-2021

Submission Date :12/05/20

SALES PROMOTION OF NESTLE
The company was founded in1866 by Henri Nestle in Vevey,
Switzerland, where their headquarters are still located today.
They employ around 2,80,000 people and have factories or
operations in almost every country in the world. Nestle is the
world’s leading Nutrition, Health and Wellness company.
Their mission of “Good Food, Good Life” is to provide
consumers with the best tasting, most nutritious choice in a
wide range of food and beverages categories and eating
occasions, from morning to night. Nestle relationship with
India dates back to 1912, when it began trading as The Nestle
Anglo-Swiss condensed Milk Company (Export) Limited,
importing and selling finished products in the Indian market.
Nestle set up its first factory in 1961 at Punjab, where the
Government wanted Nestle to develop the Milk economy.
Nestle has been a partner in India’s growth for over a century
now and has built a very special relationship of trust and
commitment with the people of India. Nestle India
manufactures products of truly international quality under
internationally famous brand names such as NESCAFE,
MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID AND
NESTEA and in recent years the Company has also introduced
products of daily consumption and use such as NESTLE Milk,
NESTLE SLIM Milk, NESTLE Dahi and NESTLE Jeera Raita.
MARKETING MIX OF NESTLE-4P’s PRODUCTS
Beverages, Milk & Milk products, Prepared dishes and cooking
aides, Chocolates. PRICE- The price is dependent on the
market of each individual product. The strength of pricing for
Nestle comes from its packaging or consumption based
pricing. PLACE- Nestle follows the FMCG strategy of
distribution which involves breaking the bulk. The Nestle
channel is known to be strong with a good marketing and sales
network for channel distribution. PROMOTIONS One of the
most widely known tunes is the Nescafe tune. It was one of
the best advertising campaigns and was launched at least 2
decades back. However, that campaign brought Nescafe
strongly in the market. Nestlé’s brand was pushed by the
excellent product quality of Maggi and the witty and
innovative campaign of Maggi. Where Nescafe focuses on
value and the good things in life, Maggi focuses on moments
you had with your Maggi. The recent campaign was
completely focused on your Maggi story, where people had to
come out with various innovative ways that they had their
Maggi. Promotion for other products too is done smartly. Kit
Kat focuses on “Take a break” and had done some good
marketing for the same. The major push expected of a FMCG
company is in sales promotions at the ground level. Nestle
focuses on its strength which is Maggi, Nescafe and Kit Kat
which are the most promoted brands in the market on ground
ly uses TVC’s and ATL marketing. It is also

brand which has strong products as well as strong marketing,

and hence the brand has a very high brand recall value. TRADE
 troduces trade discounts
and various tactics to keep the channel motivate. The major
challenge is in the distribution of Maggi which is the most in-
demand product in the market as well. Thus, on purchase of
one weak product, the distributer might get a discount on the
stronger product or vice-
the chocolate segment where it faces stiff competition from
Cadbury and hence selling the chocolates become difficult. Kit
Kat might have its own brand positioning, but it is not better
than Dairy Milk. Thus, converting retailers to sell Nestle
instead of Cadbury is the toughest task for Nestle. This is
converted mainly through promotion i.e. by providing traders
better discount or gifts on target sales. CONSUMER
e regularly uses TVC’s and ATL marketing.

Consumers get benefits from attractive bonus packs and

premium It mes with purchase as well as price discounts.
Product mix is the total range of products that are
manufactured by a company. The major aspects to be
considered in product mix are explained below. Research on
the reciprocal effects of brand extensions suggests that
failure, poor quality, or low typicality of an extension has an
adverse effect on the parent brand evaluations (Kumar,
2005:183). In the case of Nestle, the sales of noodles dropped
after it introduced Atta noodles in 1996 as the consumer
response was adverse.
“A Nestle brand name on a product is a promise to the
customer that it is safe to consume, that it complies with all
regulations and that it meets high standards of quality”
Packaging: Packaging involves designing and developing a
cover for a product in order to make it attractive to the
consumers. Packaging was just a means for protecting the
product in the past, but today increase in competition has
resulted in the need to differentiate the product from those of
its competitors to attract the customers and to describe the
features of the product in order to gain consumer recognition.
Poor designs can be one of the reasons for reduction in sales
of a product due to less customer satisfaction. Nestle uses very
attractive packaging as one of their main marketing strategies.

Suggestions to the company

 Product Growth Strategies
“The emphasis in product portfolio analysis is on managing
an existing set of products in such a way as to maximise their
strengths, but companies also need to look to new products
and markets for future growth”
 Market Penetration
Market penetration is the process of increasing its customer
base in the existing market by winning over the customer
base of its competitors for further growth by means of
advertisements, promotion, price cutting, differentiation
and seeking new segments.
 . Product Development
Product development involves the development of new
product ranges for an already existing market for further
growth. One way of product development is replacing the old
product with a newer version. Another means of achieving
this is to expand its product line thereby providing more
choices to the customers.
 Market Development
“Market development entails the promotion of new uses of
existing products to new customers or the marketing of
existing products (and their current uses) to new market
segments”.
 Diversification
Diversification can be achieved “either with related products
and markets or unrelated products that are totally
unconnected with the existing products and markets”.
Nestlé’s Product Diversification is clearly evident from its
product portfolio where they have pet foods which are
different from the other products.