Professional Documents
Culture Documents
ON
TO STUDY THE MARKET STRATEGY OF NESTLE PRODUCT
(With special reference to Indore market)
BM COLLEGE INDORE
MBA IV SEM
2008-2010
GUIDED BY SUBMITTED BY
MRS RICHA DARSHAN MR. SAKET JAIN
Faculty Guide
INDEX
Reference 48-49
Web Resource
Annexure : 50-54
A) Questionnaire
B) Respondent sheet
C) Percentage analysis.
D) synopsis
(i)
CERTIFICATE
This is to certify that Mr. Saket Jain has undergone project entitled “TO
STUDY THE MARKET STRATEGY OF NESTLE PRODUCT”
(With respect to FMCG Industry) towards the partial fulfillment of her two
years Master’s Degree of Business Administration (MBA) successfully. He
has carried out this project with full sincerity and dedication and the work is
original and genuine.
( ii)
DECLARATION
I have tried my level best in making this project useful, pragmatic &
successful. I have tried to provide the accurate information to the best of my
knowledge. The data collected is primary, authentic & analyzed by me.
(SAKET JAIN)
BM COLLEGE OF MANAGEMENT & RESEARCH
(iii)
ACKNOWLEDGEMENT
This project is not one person’s solitary effort. Its successful completion is
the result of many different people to whom I owe a debt beyond repayment.
Unfortunately, I can not acknowledge my indebtedness to all these people,
so I must necessarily limit my thanks to those who have helped me directly
in making my project work an incredibly pleasant task and to give final
shape.
judgment alone are no longer adequate find out an application solution to,
to our research .
The report is divided into seven chapters. The first part consist of History of
the Nestle, second contains the Introduction of the company Third is
objectives of the project. The middle part gives a brief overview about the
organization and the methodology use in the project. Fourth chapter is the
most important part as it contains the analysis of data. Last part contains the
findings and suggestions.
The Chapter3 consists the rationale of the study. This chapter includes
topics of basic Conceptual Framework work related to Nestle product
objectives of the study, scope of the study. consist limitation of the study.
The Chapter 5consists of data analysis and result through use of various
tools and techniques dealt through sections:
Section A: Subjective Analysis.
Section B: Market Share Analysis through Inferences.
The Chapter6 consist of improvement and suggestion.The suggestion is that
any research is time consuming and involves the basic knowledge of the
interpretation which may not be up to the mark all the time.
The Chapter 7 deals with various Summary and Conclusion drawn from the
data collected and the interpretation of response as given by the respondents.
My final conclusion is that the To know consumer expectation from the
product. To understand level of consumer satisfaction.
Chapter one
INTRODUCTION
1
History
The company dates to 1867, 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 of 1867 Charles A. and George Page, two American brothers from
Lee County, IL, established the Anglo-Swiss Condensed Milk Company in
Cham. Their first British operation was opened at Chippenham, Wiltshire in
1873.
Henri Nestlé.
Maggi was a major manufacturer of soup mixes and related foodstuffs. The
company’s current name was adopted in 1977. By the early 1900s, the
company was operating factories in the United States, United Kingdom,
Germany and Spain. World War I created new demand for dairy products in
the form of government contracts; by the end of the war, Nestlé's production
had more than doubled.
After the war, government contracts dried up and consumers switched back
to fresh milk. However, Nestlé's management responded quickly,
streamlining operations and reducing debt. The 1920s saw Nestlé's first
expansion into new products, with chocolate the company's second most
important activity.
Nestlé felt the effects of World War II immediately. Profits dropped from
US$20 million in 1938 to US$6 million in 1939. Factories were established
in developing countries, particularly Latin America. Ironically, the war
helped with the introduction of the company's newest product, Nescafé,
which was a staple drink of the US military. Nestlé's production and sales
rose in the wartime economy.
The end of World War II was the beginning of a dynamic phase for Nestlé.
Growth accelerated and companies were acquired. In 1947 came the merger
with Maggi seasonings and soups. Crosse & Blackwell followed in 1950, as
did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification
came with a shareholding in L'Oréal in 1974. In 1977, Nestlé made its
second venture outside the food industry by acquiring Alcon Laboratories
Inc.
In 1984, Nestlé's improved bottom line allowed the company to launch a
new round of acquisitions, notably American food giant Carnation and the
The first half of the 1990s proved to be favorable for Nestlé: trade barriers
crumbled and world markets developed into more or less integrated trading
areas. Since 1996 there have been acquisitions including San Pellegrino
(1997), Spillers Petfoods (1998), and Ralston Purina (2002). There were two
major acquisitions in North America, both in 2002: in June, Nestlé merged
its U.S. ice cream business into Dreyer's, and in August a US$2.6 billion
acquisition was announced of Chef America, the creator of Hot Pockets. In
the same time frame, Nestlé came close to purchasing the iconic American
company Hershey's, though the deal fell through.Another recent purchase
includes the Jenny Craig weight loss program for US$600 million.
In December 2005 Nestlé bought the Greek company Delta Ice Cream for
€240 million. In January 2006 it took full ownership of Dreyer's, thus
becoming the world's biggest ice cream maker with a 17.5% market share
6
Nestlé India is a subsidiary of Nestlé S.A.z of Switzerland. With
seven 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
7
Company Profile
Nestlé - The World Food Company
The founder of Nestlé was Henri Nestlé, who, from a modest beginning,
founded the Company in 1867 at Switzerland for manufacturing Infant
cereal for babies. At that time Switzerland faced one of the highest infant
mortality rates and the milk formula lives of many infants whose mothers
were unable to breast feed successfully.
With the introduction of the infant formula came the symbol of the bird’s
nest, which personifies our business. The symbol which universally
understood represents motherhood, love, nourishment, family, tradition and
safety. Today the symbol is central to our corporate identity and closely
parallels the company’s culture.
At present Nestlé is the world’s largest food company, with its international
head quarters at Vevey, in Switzerland. With 468 factories in 84 countries, it
employs over 230,000 people.
Nestlé is often quoted as “the most multinational of multinationals”. There is
good reason, as less than 2% of the turnover comes from the domestic
market in Switzerland. Nestlé is very decentralized in its operations and
most markets are given considerable autonomy in its operations. It is more
of a people and products oriented company rather than a systems oriented
8
company. There are “unwritten” guidelines which are to be followed, based
on common sense and a strong set of moral principals emphasizing a lot on
respect for fellow human beings.
Nestlé has adapted to the local conditions and at the same time integrated its
Swiss heritage. It has always taken a long-term view in the countries in
which it operates. Therefore, one can se a lot of investment in Research and
Development and risk taken in new product areas. There is a great emphasis
placed on training by the company. It believes in rewarding and promoting
people from within.
Today its product brand name “Nestlé” is associated with “Quality
Products” in worldwide consumer markets.
When Henri Nestlé introduced the first commercial infant formula in 1867,
he also created a symbol of the bird’s nest, graphic translation of his name,
which personifies the company’s business. The symbol, which is universally
understood, evokes security, motherhood and affection, nature and
nourishment, family and tradition. Today it is the central element of Nestlé’s
corporate identity and closely parallels the company’s corporate values and
culture.
9
Introduction of Nestle India limited and
Partnership
Nestlé’s relationship with India dates back to 1912, when it began trading as
The Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited,
importing and selling finished products in the Indian market.
Nestlé has been a partner in India's growth for over nine decades now and
has built a very special relationship of trust and commitment with the people
10
of India. The Company's activities in India have facilitated direct and
indirect employment and provides livelihood to about one million people
including farmers, suppliers of packaging materials, services and other
goods.
Organization structure
Over the years, Nestle India Limited has grown to become a multi-million
US Dollar company. Many of the Nestle’s products – dairy products and
beverage products are market leaders in their category and have won acclaim
at the Monde Selection, since1912.
Today, Nestle India Limited enjoys a big share of the total food items
market , in India. The Nestlé’s brands, such as, Nescafe, Maggi and
milkmaid and confectionery brands, such as, Eclairs, Polo, Munch and
Kitkat, enjoy a strong imagery and appeal amongst consumers.
Great care is exercised in the selection & quality control of raw materials,
packaging materials & rigid quality standards are ensured at every stage of
the manufacturing process. Every batch of biscuits & confectioneries are
13
The Marketing Strength
to the common man. Most of Nestle’s product offerings are in the low&
The Nestle name conjures up fond memories across the length and
breadth of the country. After all, since 1961, the people of India have been
growing up on Nestlé’s Milk products & Beverages.
Today, the Nestle brands have found their way into the hearts and
homes of people all over India & abroad. Nestle products; continue to spread
happiness & joy among people of all ages.
15
70%
60%
50%
40%
30%
20%
10%
0%
Nestle Good Nestle Average Nestle poor
Business Principle
3. Consumer Communication
We are committed to responsible, reliable consumer communication that
empowers consumers to exercise their right to informed choice and
promotes healthier diets. We respect consumer privacy.
17
9. Environmental sustainability
We commit ourselves to environmentally sustainable business practices. At
all stages of the product life cycle we strive to use natural resources
efficiently, favour the use of sustainably-managed renewable resources, and
target zero waste.
10. Water
We are committed to the sustainable use of water and continuous
improvement in water management. We recognise that the world faces a
growing water challenge and that responsible management of the world’s
resources by all water users is an absolute necessity.
Board of Directors
Mr. Antonio Helio Chairman and Managing Director
Mr. Shobinder Director - Finance & Control
Duggal
Mr. Christian Schmid Director - Technical
Mr. Pradip Baijal Non Executive Director
Dr. Rakesh Mohan Non Executive Director
Mr. Ravinder Narain Non Executive Director
Dr. Swati A. Piramal Non-Executive Director
Mr. Richard Sykes Alternate Director to Mr. Michael
W.O Garrett
Company Secretary
Mr. B. Murli Senior Vice President -
Legal & Company Secretary
Confectionery Industry
Mints /
Chewing Gums
12%
Chocolates Sugar boiled
24% Chocolates
Sugar boiled
Mints / Chewing Gums
64%
2323
MAGGI 2-MINUTE Noodles is one of the most popular
brand of instant noodles in India. Available for export in
5 authentic Indian flavours (spicy Masala, tangy
Chatpata, Chicken, Tomato and Curry), it is a delicious
anytime snack that’s ready in just 2 minutes.
Objective
CONCEPTUAL FRAMEWORK
The Starting point is every one who might conceivably buy the
product that is called suspects and from these the company determines the
most likely prospects which it hopes to convert into first time customers
customers .
Suspects
Repeat Customers
Clients
Inactive or ex customer
Members
Advocates
Partners
29
Limitation of study
Nothing in this world is perfect. Everything has its limit, so has this
survey. The main limitations encountered are: -
Time is short to carry out the survey is more detail as well as with
more respondent.
information
Chapter Four
“ Research Design”
“ Tool for Data Collection”
“Sample Design”
30
Research Methodology
Introduction
making for its advancement. The role of research in several fields of applied
economically.
Type of study:-
Descriptive
Nature of study:-
Qualitative & Quantitative
31
Type of questionnaire: -
Structured
Type of questions:-
Open & Closed ended (as per Company guidelines)
Type of analysis:-
The percentage method will be used by the researcher
in order to analyze the data collected and then interpretation through pie-
charts will be done.
1. Exploratory
2. Conclusively Research.
and looking to the objective of the research that is finding out the most
dominant attribute and also the market leader in respect to brand vs price.
project.
32
Primary Data
These are the data’s which are not readily available to the user or
researcher but these data’s has to be collected by some one primarily for
their own use. They are specifically Collected for certain research. I have
Secondary Data
Refers of those data, which are collected and distributed is parts and are
In the study secondary data were used for required information like:-
Nestle product.
3. Population of customer.
33
REVIEW OF LITERATURE
research.
continually shifting.
consumers who express their ideas and opinions about their needs and views
on different products.
Chapter Five
“Subjective Analysis”
“Market Share analysis”
35
40%
20%
Different variety
good taste
Model 3:-
80
70
60
50
80
40
30
20
10 16
4
0
Customer Customer not No Response
Satisfied Satisfied
Model:5-
37
South
20% North
35% North
East
West
West South
East
33%
12%
Qus:-In Nestle india limited What is the total revenue in different types of
product?
15%
18% 45%
22%
Model 8:- shows that Different type of the product generate different type
Of revenue in the market.Milk product generate 45%,beverage product 22%
Chocolate product 15%,and dishes and coocking aids 18%.
40
15%
85%
MARKET ANALYSIS
Amul
8%
Nestle
22% Cadbury's
Nestle
Amul
Cadbury
70%
Choco panned
4%
Sugar panned
13% Moulded Chocolates
Moulded Countline bars
Chocolates Sugar panned
Countline bars 50%
33% Choco panned
42
Model:10-
Inference: According to the result revealed by above charts,
NESTLE Product is good in Quality and Quantity means his
Quality and quantity of NESTLE product is standard.
“Suggestion”
“Improvement”
43
Consumers always see for fresh quality so always should try to keep
stock in retail stores be fresh.
The retailers must be satisfied with the company.
Many consumers want more taste in chocolate.
Company should give time to time in center to its client i.e. dealer
for achieving a particular sales target.
At least once in a year every brand should launch a particular
scheme to attract marginal customer.
Effective advertising companies through print as well as electronic
media.
44
The range began with yoghurts and dairy products and globally now
includes bottled water, ice cream, cereal bars and frozen prepared
meals.
“Conclusion”
“Summary”
45
Conclusion
• Consumer interest in the good quality and health impact of foods has
probably never been greater and for good reason.
Its commitment to high quality market research ensures that it remains fully
aware of changes in consumer behaviour and consumer tastes
consumer.
Fresh ‘n’ Natural is liked mostly to its good and delicious taste.
46
Results
47
Bibliography
Books
www. google.com
www.nestle.in
www.wikipedia.com
www.yahoo.com
www.msnsearch.com
www.amazen.com
www.freebooks.com
48
Summary
The idea behind the project is to know about the MARKET STRATEGY
ON NESTLE PRODUCT” and make the customer aware about the different
variant of product that is provided by the Nestle. As the customers purchase
a type of product and he is not satisfy with it, so under this project it is my
responsibility to suggest them good product.
Annexure
Questionnarie
Personal details:-
Name……………………………….
Address…………………………………………………..
Age………………..
20-30 above
Gender ………………………
Phone/mob…………………………..
Profession…………………………….
a. Yes b. No
50
a. Cadbury b. Nestle
Cadbury Nestle
b. 5 star munch
a. Cadbury b. Nestle
a. Hard b. notties
c. Crunchy d. chew
51
a. Free gifts
b. Price offer
c. Any other
a. Television
b. Newspaper
c. Brochures
d. Hoarding
e. Display
9. If your preferred brand is not available for repeat purchases then what will
you do?
52
PERCENTAGE ANALYSIS
S. No. a b c d e
Q. 3 60(a) 40(b)
Q. 5 70(c) 30(d)
Q. 6 80 15 5
Q. 7 80 15 5
Q. 9 65 35
Q 1 70 30
Q 8 25 5 10 40 20
Q. 4 60 30 10
54
Respondent Sheet II
R:1 1 1 2 1 1 3 1
R:2 1 1 4 2 1 1 1
R:3 1 2 2 2 2 1 1
R:4 1 2 1 2 3 1 1
R:5 1 2 1 1 2 2 2
R:6 1 1 3 2 3 3 2
R:7 1 1 2 2 2 3 3
R:8 1 1 2 1 1 3 3
R:9 1 1 2 2 1 1 1
R:10 2 1 2 2 3 1 1
R:11 1 2 4 2 2 1 1
R:12 1 2 3 2 2 1 2
R:13 1 1 1 2 2 1 2
R:14 1 1 1 1 1 2 2
R:15 2 1 1 1 1 2 3
R:16 1 1 2 2 1 3 1
R:17 1 2 2 2 4 1 1
R.18 1 1 2 2 2 1 2
R.19 1 1 1 1 3 3 2
R.20 1 2 1 2 2 2 2
R.21 1 2 1 2 1 3 3
R.22 1 2 3 2 1 1 1
R.23 1 1 3 2 3 2 1
R.24 1 2 2 1 2 3 2
R.25 1 1 2 2 2 2 1
“ Major Research Project Synopsis ”
ON
“Market Strategy Of Nestle Product”
BM COLLEGE INDORE
Declaration
I have tried my level best in making this project useful, pragmatic &
successful. I have tried to provide the accurate information to the best of my
knowledge. The data collected is primary, authentic & analyzed by me.
(SAKET JAIN)
BM COLLEGE OF MANAGEMENT AND RESEARCH
ACKNOWLEDGEMENT
This project is not one person’s solitary effort. Its successful completion is
the result of many different people to whom I owe a debt beyond repayment.
Unfortunately, I can not acknowledge my indebtedness to all these people,
so I must necessarily limit my thanks to those who have helped me directly
in making my project work an incredibly pleasant task and to give final
shape.
It is my duty as well as privilege to express my deep sense of gratitude to all
those who have been associated with me in this summer project.
63
CHAPTER SCHEME
PAGE NO:
Executive Summary………………………….………………….…….1
Chapter one:
1.1 Introduction………………………………………………………………….. 2
1.2 Conceptual framework……………………………………………………… 3
1.3 Statement problem ………………………………………………………… 4
1.4 Purpose of the study …………………………………………………….….. 4
1.5 Objectives…………………………………………………………………….. 4
1.6 Scope of the study…………………………………………………………… 4
1.7 Reaearch Timeline……………………………………………………………4
1.8 Limitations of the study………………………………………………………4
REFERENCE……………………………………………………………8
BIBLOGRAPHY……………………………………………………… 8
ANNEXURE…………………………………………………………… 9
Executive Summary
The idea behind the project is to know about the MARKET STRATEGY
ON NESTLE PRODUCT” and make the customer aware about the different
variant of product that is provided by the Nestle. As the customers purchase
a type of product and he is not satisfy with it, so under this project it is my
responsibility to suggest them good product.
1.1 Introduction
The founder of Nestlé was Henri Nestlé, who, from a modest beginning,
founded the Company in 1867 at Switzerland for manufacturing Infant
cereal for babies. At that time Switzerland faced one of the highest infant
mortality rates and the milk formula lives of many infants whose mothers
were unable to breast feed successfully.
With the introduction of the infant formula came the symbol of the bird’s
nest, which personifies our business. The symbol which universally
understood represents motherhood, love, nourishment, family, tradition and
safety. Today the symbol is central to our corporate identity and closely
parallels the company’s culture.
At present Nestlé is the world’s largest food company, with its international
head quarters at Vevey, in Switzerland. With 468 factories in 84 countries, it
employs over 230,000 people.
Nestlé is often quoted as “the most multinational of multinationals”. There is
good reason, as less than 2% of the turnover comes from the domestic
market in Switzerland. Nestlé is very decentralized in its operations and
most markets are given considerable autonomy in its operations. It is more
of a people and products oriented company rather than a systems oriented
company. There are “unwritten” guidelines which are to be followed, based
on common sense and a strong set of moral principals emphasizing a lot on
respect for fellow human beings.
Nestlé has adapted to the local conditions and at the same time integrated its
Swiss heritage. It has always taken a long-term view in the countries in
which it operates. Therefore, one can se a lot of investment in Research and
Development and risk taken in new product areas. There is a great emphasis
placed on training by the company. It believes in rewarding and promoting
people from within.
Today its product brand name “Nestlé” is associated with “Quality
Products” in worldwide consumer markets.
When Henri Nestlé introduced the first commercial infant formula in 1867,
he also created a symbol of the bird’s nest, graphic translation of his name,
which personifies the company’s business. The symbol, which is universally
understood, evokes security, motherhood and affection, nature and
nourishment, family and tradition. Today it is the central element of Nestlé’s
corporate identity and closely parallels the company’s corporate values and
culture.
1.2Conceptual framework
The Starting point is every one who might conceivably buy the
product that is called suspects and from these the company determines the
most likely prospects which it hopes to convert into first time customers
customers .
Suspects
Repeat Customers
Clients
Inactive or ex customer
Members
Advocates
Partners
1.2 Statement of the Problem
The purpose of this study is that how to satisfy to consumer with company
product.
what is effect on current scenario.
1.5 Objectives
It was hard to gather all information about project from Internet due to
Time is short to carry out the survey is more detail as well as with
more respondent.
information
Chapter Three
RESEARCH METHODOLOGY
Finally, the results of the survey has been presented in Tabular form,
analyzed and interpreted to meet the required needs of this project study and
presented in Report form.
70
Chapter four
4.1 Results
4.2 Discussions
Chapter five
5.1 Implications
5.2 Suggestion
Chapter six
6.1 Summary
6.2 Conclusion
APPENDIX
QUESTIONNAIRE FOR
IN INDIAN
Dear Sir/Madam,
As you are all aware that industry is achieving a great success in Indian
employment context. As you are to a part of industry and must be observing
that the Market trends are quite different from the conventional old economy
sectors.
The results shall be submitted to the university in the report format for the
usage of researchers and other concerned authorities. As is the case for entire
study, no individual will be identified. Only group averages will be reported.
Thanking You
Personal details:-
Name……………………………….
Address…………………………………………………..
Age………………..
20-30 above
Gender ………………………
Phone/mob…………………………..
Profession…………………………….
a. Yes b. No
a. Cadbury b. Nestle
Cadbury Nestle
b. Dairy milk kitkat
c. 5 star munch
a. Cadbury b. Nestle
a. Hard b. notties
c. Crunchy d. chew
a. Free gifts
b. Price offer
c. Any other
a. Television
b. Newspaper
c. Brochures
d. Hoarding
e. Display
9. If your preferred brand is not available for repeat purchases then what will
you do?