MINOR PROJECT REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF

BACHELOR OF BUSINESS ADMINISTRATION

MINOR PROJECT REPORT

ON

A STUDY OF THE MARKETING MIX OF NESTLE

Batch: 2012-2015

Submitted By: PROJECT GUIDE

Name of student: SHAILENDRA Name: REEMA ALAGH

Enrollment No. : 01512401716 Designation: Assistant professor

Delhi Institute of Rural Development

Affiliated To Guru Gobind Singh Indraprastha University , New delhi

 CERTIFICATE

TO WHOM SO EVER IT MAY CONCERN

This is to certify that the minor project titled “To Study the Marketing

mix of NESTLE India” is an academic work done by “SHAILENDRA, BBA

(GENERAL),ENROLLMENT NO. 01512401716,” submitted in the partial fulfillment of the
requirement for the degree of Bachelor of Business Administration at Trinity Institute Of
Professional Studies, Delhi, under my guidance and direction of Ms. REEMA ALAGH. To the
best of my knowledge and belief the data and information presented by her in the project has not
been submitted earlier.

PROJECT SUPERVISOR

SIGNATURE

NAME- MS. REEMA ALAGH

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 ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany the successful completion of any task is
incomplete without the mention of people who made it possible. So I take this as a great
opportunity to pen down a few lines about the people to whom my acknowledgement is due.
It is with the deepest sense of gratitude that I wish to place on record my sincere thanks to
Ms.Reema Alagh, my project guide for providing me inspiration, encouragement, guidance,
help and valuable suggestions throughout the project.

I would also like to thank all my respondent for giving me their valuable time and information.

Signature:

SHAILENDRA

01512401716

BBA(GENERAL)

5th SEM.

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 DECLARATION

I hereby declare that the following documented Project report titled - To Study the Marketing

Mix of “NESTLE”is an original and authentic work done by me for the partial fulfillment of
Bachelors of Business Administration degree program.

I hereby certify that all the endeavour put the fulfillment of the task are genuine and original to
the best of my knowledge & I have not submitted it elsewhere.

Signature:

SHAILENDRA

BBA(GENERAL), 5th SEM.

01512401716

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 TABLE OF CONTENT

S. NO. PARTICULARS PAGE NUMBER

1. Chapter-1 1
 Introduction(Topic)
 History(Topic)
(Theorectical Concept About The Topic Such As
Importance,Function,Types,Roles)Etc.
2. Chapter-2(Research Objectives& Methodology) 34
 Research Objective Of The Study
 Research Methodology
 Research Design
Types Of Research Design
 Data Collection

3. Chapter-3 (Data Processing, Analysis & Interpretation) 37

 Analysis Of Data
 SWOT Analysis
 PEST Analysis

4. Findings and Analysis 57

5. Limitations 60
6. Suggestions & Recommendations 62
7. Conclusion 64
8. Bibliography 66
9. Annexure 68

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 CHAPTER-1
INTRODUCTION AND
HISTORY

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The main aim of studying marketing strategies of nestle is to provide solid foundations
that are useful for explanation, prediction and control of the business activities. Weare not an
expert in nestle but we have analysis the firm’s Indian marketing strategy in the
field of their brand awareness, products and system design, product positioning,
advertising, packaging, distribution and customer service.

My secondary data is the most of important for our research and I contributed inthe area such
as group or segment those types of potential customers that are most likely to benefit
from their product line.It also includes business principles of the organization.

Nestle coat of arms, the bird’s nest, which refers to his name, has become a symbol
for the products being a safe care for their consumer product safety and quality.Research and
development based innovation capacity and strong brands are priority for Nestle.

Every organization needs to have clear marketing objectives and the major route to achieving
organizational goals will depend on strategy.Developing a strategy involves establishing clear
aims and objectives around which the framework for a policy is created. Having established its
strategy, an organization can then work out its day-to-day tools and tactics to meet the
objectives.The success of any business entity solely depends on how effectively it utilizes its
optimum resources. The company should always be ready to make necessary changes according

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to the requirements, in order to attract more customers so as to maintain a substantial growth in
the market.

Nestle India is a subsidiary of Nestle S.A of Switzerland. With seven factories and a large
number of co-packers, brands of the company are grouped under four categories, Milk Products
& Nutrition, Prepared Dishes & Cooking Aids, Beverages and Chocolates & Confectionery.
Nestle has been a cohort in India's growth and has built a very special relationship of trust and
commitment with the people of India. The Company's activities in India have facilitated direct
and indirect employment and afforded livelihood to about one million people together with
farmers, suppliers of packaging materials, services and other goods.

Nestle India manufactures products of truly international quality under internationally famous
brand names and in recent years the company has also introduced products of daily consumption
and use such as NESTLE Milk, NESTLE SLIM Milk, NESTLE Fresh 'n' Natural Dahi and
NESTLE Jeera Raita. Beginning with its first investment in Moga in 1961, where the
Government wanted Nestle to develop the milk economy. Progress in Moga required the
introduction of Nestlé’s Agricultural Services to educate, advise and help the farmer in a variety
of aspects.

Nestlé’s regular and substantial investments established that it was here to stay. In 1967, Nestle
set up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the
area into soluble tea. The Nanjangud factory (Karnataka) became operational in the year 1989. In
1990, the company entered into the chocolate business by introducing Nestle Premium
Chocolate.

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 Henri Nestlé (1814 - 1890)

The key factor which drove the early history of the enterprise that would become the Nestlé
Company was Henri Nestlé's search for a healthy, economical alternative to breastfeeding for
mothers who could not feed their infants at the breast.
In the mid-1860s Nestlé, a trained pharmacist began experimenting with various combinations of
cow's milk, wheat flour and sugar in an attempt to develop an alternative source of infant
nutrition for mothers who were unable to breast feed. His ultimate goal was to help combat the
problem of infant mortality due to malnutrition.

He called the new product Farine Lactee Henri Nestlé. Nestlé's first customer was a premature
infant who could tolerate neither his mother's milk nor any of the conventional substitutes, and
had been given up for lost by local physicians. People quickly recognized the value of the new
product, after Nestlé's new formula saved the child's life and within a few years, Farine Lactee
Nestlé was being marketed in much of Europe.

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Henri Nestlé also showed early understanding of the power of branding. He had adopted his own
coat of arms as a trademark; in his German dialect, Nestlé means 'little nest'. One of his agents
suggested that the nest could be exchanged for the white cross of the Swiss flag. His response
was firm: "I regret that I cannot allow you to change my nest for a Swiss cross .... I cannot have a
different trademark in every country; anyone can make use of a cross, but no-one else may use
my coat of arms."
Meanwhile, the Anglo-Swiss Condensed Milk Company, founded in 1866 by Americans Charles
and George Page, broadened its product line in the mid-1870s to include cheese and infant
formulas. The Nestlé Company, which had been purchased from Henri Nestlé by Jules Monnerat
in 1874, responded by launching a condensed milk product of its own. The two companies
remained fierce competitors until their merger in 1905.
Some other important firsts occurred during those years. In 1875 Vevey resident Daniel Peter
figured out how to combine milk and cocoa powder to create milk chocolate. Peter, a friend and
neighbor of Henri Nestlé, started a company that quickly became the world's leading maker of
chocolate and later merged with Nestlé. In 1882 Swiss miller Julius Maggi created a food
product utilizing legumes that was quick to prepare and easy to digest.
His instant pea and bean soups helped launch Maggi & Company. By the turn of the century, his
company was producing not only powdered soups, but also bouillon cubes, and sauces and
flavorings.

HISTORY OF NESTLE

1866 -1905
In the 1860s Henri Nestlé, a pharmacist, developed a food for babies who were unable to
breastfeed. His first success was a premature infant who could not tolerate his mother's milk or
any of the usual substitutes. People quickly recognized the value of the new product, after
Nestlé's new formula saved the child's life, and soon, Farine Lactée Henri Nestlé was being sold
in much of Europe.

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1905-1918
In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s, the
company was operating factories in the United States, Britain, 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.

1918 -1938
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.

1938 -1944
Nestlé felt the effects of World War II immediately. Profits dropped from $20 million in 1938 to
$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,
Nescafe, which was a staple drink of the US military. Nestlé's production and sales rose in the
wartime economy.

1944 -1975
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 Magi seasoning sand soups. Crosse
& Blackwell followed in 1950, as did Findus (1963), Libby's (1971) and Stouffer's
(1973).Diversification came with a shareholding in L’Oreal in 1974.
1975 -1981
Nestlé's growth in the developing world partially offset a slowdown in the Company's traditional
markets. Nestlé made its second venture outside the food industry by acquiring Alcon
Laboratories Inc...

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1981 -1996
Nestlé divested a number of businesses1980 / 1984. In 1984, Nestlé's improved bottom line
allowed the Company to launch a new round of acquisitions, the most important being American
food giant Carnation.

1996+
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 Pet foods (1998) and Ralston Purina
(2002). There were two major acquisitions in North America, both in 2002: in July, Nestlé
merged its U.S. ice cream business into Dreyer's, andin August, a USD 2.6bn acquisition was
announced of Chef America, Inc. On June 25 Neslte India launches new variant of Maggi Delists
securities from the Delhi Stock Exchange Association Ltd (DSE) w.e.f. July 15, 2005. Nestle's
starts Uttaranchal unit Nestle India Ltd has informed that the Board of Directors of the Company
at its meeting held on July 31, 2007.

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COMPANY REPORT OF NESTLE INDIA

Company Snapshot
Nestle India, incorporated in the year 1959, is the largest dairy products company in India. The
company has a broad portfolio of milk products & nutritions, beverages, prepared dishes &
cooking aids and chocolates & confectionary. The company is a subsidiary of Nestle S.A. of
Switzerland and their history goes back to 1912 when it imported and sold products in India
under the name of ‘The Nestle Anglo Swiss Condensed Milk Company (Export) Ltd.

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Business Details
Nestle India was established in India in the year 1961 with its first investment in Moga, Punjab.
Nestle India manufactures products of truly international quality under internationally famous
brand names such as Nescafe, Maggi, Milkybar, Milo, Kit Kat, Bar-one, Milkmaid and Nestea.
Nestle has been a partner in India’s growth for over nine decades now. It encompasses a wide
range of products from milk and skimmed milk to value added products like condensed milk,
curd, ghee, yoghurt and raita. All these products are sold under various brands such as Nestle
Everyday, Nestle Milkmaid, Nestle Milk, Nestle Fresh n Natural etc. Nestle India enjoys the
leadership position in infant milk foods business. The company has a capacity to produce 72,502
tonnes of milk products and nutritions per annum. They are spread over seven plants located
across India in the states of Punjab, Haryana, Uttarakhand, Goa, Karnataka and Tamil Nadu. It
processes over 3.3 lakh tonnes of milk and nearly 10,000 tonnes of milk powder per annum. The
company has tied up with Heritage Food in South, Bengal Nester in the East and Dynamix Dairy
in the West for sourcing, processing, packaging, and supplying milk. The company also has a
strong presence in the chocolates and confectionary business. It is the second largest
confectionary company in India. It is the largest coffee company in India sold under the brands
of Nestle Classic, Nescafe Sunrise and Nescafe 3 in 1. The company also exports its instant
coffee to various countries such as Russia and Japan.

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Segmental Outlook
The food processing industry which is a sub-sector of the food industry includes milk and milk
products, fruits & vegetables processing, grain processing, fisheries, meat & poultry processing
and other consumer products such as packaged foods, confectionary, chocolates, beverages and
packaged drinking water. The Indian food market is estimated at over $182 billion and accounts
for about two-thirds of the total Indian retail market. According to McKinsey and co., the retail
food sector in India is likely to grow from around US$70 billion in 2008 to US$150 billion by
2025. According to Dairy India 2007 estimates, the current size of the Indian dairy sector is
US$62.67 billion and has been growing at a rate of 5% per year. the dairy exports in 2007-08
rose to US$210.5 million against US$113.57 last fiscal whereas the domestic dairy sector is
slated to cross US$108 billion in revenues by 2011. The Indian snack market holds enormous
growth potential for snack food, which is estimated to be worth US$3 billion. The market is
divided in to organized and unorganized sector. The organized sector of the snack food market is
growing at 15-20 % a year while the growth rate of the US$1.56 billion unorganized sector is 7-
8%. India has a target of doubling its processed food production by 2015 and will set up 10 food
technology parks during the next year with a view to achieving this.

Past Price movement of the stock

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Valuation
We are positive on company’s long term prospects. The company has earned 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'. The Company
continuously focuses its efforts to better understand the changing lifestyles of India and
anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its
product offerings. Presently the company is running at a P/E multiple of 35.47x to its CY09 EPS
of Rs.55.39. Based on the positive financial performance reported by the company, we
recommend BUY on the stock with a medium term price target of Rs.2500.00.

NESTLE INDIA’S STORY

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

11
the Indian market. After India’s independence in 1947, the economic policies of the Indian
Government emphasized the need for local production. Nestlé responded to India’s aspirations
by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the
Government wanted Nestlé to develop the milk economy. Progress in Moga required the
introduction of Nestlé’s Agricultural Services to educate advice and help the farmer in a variety
of aspects. From increasing the milk yield of their cows through improved dairy farming
methods, to irrigation, scientific crop management practices and helping with the procurement of
bank loans. Nestlé set up milk collection centers that would not only ensure prompt collection
and pay fair prices, but also instill amongst the community, a confidence in the dairy business.
Progress involved the creation of prosperity on an on-going and sustainable basis that has
resulted in not just the transformation of Moga into a prosperous and vibrant milk district today,
but a thriving hub of industrial activity, as well.

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 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.
Nestlé India is a responsible organization and facilitates initiatives that help to improve the
quality of life in the communities where it operates.

Date of Establishment 1959

Revenue 1417.18 ( USD in Millions )

Market Cap 433740.5607834 ( Rs. in Millions )

Corporate Address M- 5a, Connaught Circus, New Delhi-110001, Delhi

Chairperson Antonio Helio Waszyk

MD Antonio Helio Waszyk

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Directors Antonio Helio Waszyk, Ashok Kumar Mahindra, B Murli,
Christian Schmid, Martial G Rolland, Michael W O Garrett,
Pradip Baijal, Rajendra S Pawar, Rakesh Mohan, Ravinder Narain,
Richard Sykes, Shobinder Duggal, Swati A Piramal

Business Operation Consumer Food

Background Nestle has its presence in India for around nine decades, making it one
of the oldest company in India. Nestlé India is a subsidiary of Nestlé SA

Financials
Total Income Rs. 62973.966 Million ( year ending Dec 2010)
Net Profit Rs. 8186.648 Million ( year ending Dec 2010)
Company Secretary B Murli
BankersAuditors AF Ferguson & Co.

The Samalkha factory (Haryana) was started its operation in 1993. Kitkat, the company's
worldwide legendary brand chocolate was launched in the year 1995. Nestle commissioned two
factories in Goa at Ponda and Bicholim in the year 1995 and 1997 respectively. Nestle Growing
Up Milk was launched nationally in the year 1999. In April 2000, the company forayed into the
Ultra Heat Treated (UHT) liquid milk market. Launched Nestle Pure Life bottled water in the
year 2001 by the company, within few months, again launched its second water brand-San
Pellegrino-- in the Indian market. The company also made its foray into the iced tea segment.
Iced tea has already been soft-launched in Mumbai in two flavours, one being peach. The
company commenced participation in this global Nestle initiative in the year 2003 to create and
adapt common business process, permitting adoption of best practices, standardization of internal
and external master data and standardization of the information systems infrastructure. During
the year 2004, a project has been initiated to upgrade the production technology for infant
nutrition products at the Samalkha factory. Nestle India Ltd recognised for its outstanding

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NESTLE SUCCESS STORY

From the famous Nestlé's chocolate that gratifies the sweet tooth of millions, to Stouffer's frozen
family dinners served up by harried soccer moms, to Fancy Feast cat food for pampered felines
from coast to coast, Nestlé USA's basket of products caters to a wide range of consumer needs.
For many years, the operations of this US$6.6 billion subsidiary
"Anyone who simply lays the
of Swiss food giant Nestlé SA reflected the diversity and
technology on top of existing
individuality of its hundreds of brands. Created in 1991 to unify
business processes is
disparate divisions, Nestlé USA's business units nevertheless
doomed. This is the time to
remained largely autonomous, and that arrangement worked
unite far-flung parts of the
well for a number of years. But, as competition heated up —
business into a cohesive,
with massive industry consolidation and retailers' private label
smart, and efficient whole —
products eroding customer loyalty and squeezing margins —
and that's done by
Nestlé USA needed to wring out efficiencies to slash costs and
fundamentally reworking
boost bottom-line performance.
how the company operates."
In response, the company crafted a vision it called One Nestlé
— Jack Rinquist, Deloitte
— a vision that would introduce common processes, standards,
and systems across the enterprise, resulting in unprecedented economies of scale and cost
savings.
To make that vision a reality, Nestlé USA selected SAP software to automate and integrate all
operations, from procurement through production, distribution, and customer care. At the same
time, Nestlé USA was well aware that this was not simply a software implementation that would
automate existing processes, but rather an undertaking that would mean fundamental changes in
how it approached and ran its business.

From vision to reality

To that end, Nestlé USA first reworked, standardized, and integrated its operations, and then
implemented the technology to support its new and improved way of doing business. And all of
this was done while making certain that employees had the appropriate training for their new
jobs.

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This was no easy task to be accomplished overnight, that's for sure.
"Nestlé USA did it right. A huge SAP implementation like this is so not about the software," says
Jack Ringquist, a Deloitte Consulting partner helping to drive Nestlé USA's transformation
efforts. "Anyone who simply lays the technology on top of existing business processes is
doomed. This is the time to unite far-flung parts of the business into a cohesive, smart, and
efficient whole — and that's done by fundamentally reworking how the company operates."

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MARKETING ENVIRONMENT

EXTERNAL ENVIRONMENT

Demographic External factor

 More the education more will be the awareness about brand and quality food.
 If the income level of people is high then purchasing power will be high so they will
purchase more.
 Nestle products are made for people belonging from all age groups.
 Both male/female are included equally in its target market.

Economic environment
 If the inflation rate is high then there will be decrease in purchasing power. so inflation
indirectly affects the company’s sale.
 Nation varies greatly in its level and distribution of income.
 Changes in major economic variables such as income, cost of living, interest rate and
savings have a large impact on the market place.

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Political environment
 Government regulations to protect interest of society and from unfair business practices.
 Unstable political conditions.
 Law order situation getting worse.

Legal environment
 Registered in the stock exchanges of Pakistan.

Social/cultural environment
 Consumption behavior of Pakistani people is high so they consume more goods.
 As Pakistan is Muslim country so we cannot add any ingredient which is prohibited in
Islam or which is not “Halal”.
 As nestle water is the branded item so the people who are brand conscious will prefer to
use nestle water .so nestle is focusing more on the posh areas.

Technological environment
 Technological environment is changing rapidly.
 Most dramatic force shaping company’s offerings and the way product is marketed.
 Company’s must keep up with technological changes to match up with its environment.

Internal Environment

 In Nestle Internal environment ensures.

 Employees are on side with the goals of an organization.
 They have direct impact on product quality,dependability and overall productivity.
 They are internal market, which impact everydepartment within an organization; a
satisfied internalmarket will be better able to satisfy external market.

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  Nestle under the supervision of top management runs thedepartments of finance,
operations, accounting, sales andmarketing, research and development to achieve the
goalsof organization.

Micro Environment

In Nestle microenvironment includes:

a )Suppliers :

Suppliers provide the resources like labor and material resources to produce goods and services.
They add to customer overall value delivery system. Labor supplies include handling of
 Quantity of labor
 Quality of labor
 Labor strikes
 Labor relations Material supplies deals with the:

 Quality of material
 Price of material
 Stability of material inputs
 Delivery delays

Nestle efficiently handles the quality, quantity, price and stability of both material and labor
supplies. Management maps out the strategies for labor strikes, supply short age sand delays to
avoid increasing the cost of production, which can badly affect sales in short run and customer
satisfaction in long run.

b) Marketing Intermediaries:
 It includes the firms that help the company to promote, sell and distribute its goods to
final buyers.
 The physical distribution firms determine the ways to store and ship goods to reach their
destination.

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  Marketing service agencies including marketing research firms, advertising agencies and
media firmsare also hired to target and promote product to right market.
 Financial intermediaries like banks, insurance companies helps to finance transactions
and insureagainst risks associated with buying and selling of goods.
 Nestle works in coordination with marketing intermediaries to make its product Pure Life
Water available and visible to its valuable customers.
c ) C u s t o me r s :
Nestle deals with the reseller customers who buy the product Pure Life to resell at a reasonable
profit.

Macro Environment

Macro environment include political, cultural, economical factors but as for as Nestle Pure Life
Water is concern none of above factors affect on it. Because it is not at luxury item they are
selling necessities of life which can never be affected.

NESTLE’S DEFINATION OF MARKETING

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Building customer relationship based on customer values and satisfaction is at the very heart of
modern marketing. The two fold goals of nestle marketing is to attract new customers by
providing superior value and to keep and grow the current customer by delivering satisfaction.
Nestle defines marketing as:

“A social and managerial process whereby individual and group obtains good food and
good life through creating and exchanging products and values”

MARKETING MIX

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Elements of the marketing mix are often referred to as the "Four 'P's a phrase used since
the1960's

MARKETING MIX OF NESTLE

Nestle, a very well known brand that is now housing thousands of products was primarily formed
for helping the infants survival who could not feed on mothers lactation., its first product being
"Farine Lactee Henri Nestle". The brand was introduced by Henry Russel in 1866, which was
boosted up by its merger in 1905 with Anglo Swiss Milk Company, headquartered in Vevey,
Switzerland.

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Product
• Being the world’s largest food and nutrition company almost six thousand products are
being hosted under the brand named Nestle.
• Its products are very wide spread in range counting almost all daily use products as well
as occasionally used products. The products includes coffee, bottled water, cereals,
pharmaceutical products like lens care solutions, infant food, beverages, chocolates,
candies, ice creams, refrigerated foods, yogurt, milk cream a very unusual product that is
pet food and the largest selling brand milkman. All these categories are subdivided to the
diverse choices of customers including different sizes and flavors (Kowitt, 2010).
• Products that are introduced in the market are first screened through high profile research
and development sector including food processing, micro analytical research and proper
delivery of functionalities in the food products thus promising the healthy goods for
consumers.
• Main raw material for its milk products are UHT treated and packed in tetra packaging,
moreover the packaging is long lasting as well as tempting.
• As hygiene is a basic ethical question for edible products, so Nestle has a full concern
and focus on this parameter.
• Nestle provides the product compliance to the customers including all legal supports.
• Nutrition quality is preferably determined and is provided on the packing of the product
to facilitate consumers to check their preferences along with the expiry dates.
• Complaints if any are timely responded and suggestions are always welcomed.

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Price

• Flexible prices are the key factor of success of Nestle in global markets for example
Milkpak being the largest selling brand is being sold out at the same price as that of other
low quality products while maintaining its quality.

• Their marketing strategy includes a wide range of pricing strategy, and by doing this they
can maintain their product rates at a sustainable position.

• Prices are affordable to almost all types of consumers as they have wide range of single
product as in the case of beverages, fruit juices are affordable to low economy class and
expensive tin packed beverages are also doing business in the market.

• Bulk purchase discount is also provided at the whole sale markets as well as at the market
stores.

• Seasonal price variations are also seen, especially in the case of chocolate products, either
by upsizing at the same price or reducing the sale price.

Place

• Nestle products have their main business area in Europe from where they get almost 90
percent of the sales and revenues.

• Nestle is running globally, its setup being run in 86 countries. So, the sales are also done
globally and are impulsive ones.

• The products are not directly thrown into the market, rather a full procedure is followed
including all the essentials from Manufacturer, Distributor, Wholesaler, Retailer and
finally to Consumer.

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• Nestle products are available in all its variety at the maximum outlets, as the company is
always looking forward to expand its outlets

Promotion

• Promotion strategies of the company are very well planned and they always pay multiples
of the expected amounts.

• Advertising on electronic and print media along with sign boards having tempting
figurations of the brand always proves good for the brand

• Sometimes limited economy offers boost up the popularity of brand especially in the case
when new induction to the market is made.

Strategy - Nestlé Roadmap to Good Food, Good Life

Nestlé’s objectives are to be recognised as the world leader in Nutrition, Health and Wellness,
trusted by all its stakeholders, and to be the reference for financial performance in its industry.

24
We believe that leadership is not just about size; it is also about behaviour. Trust, too, is about
behaviour; and we recognise that trust is earned only over a long period of time by consistently
delivering on our promises. These objectives and behaviours are encapsulated in the simple
phrase, “Good Food, Good Life”, a phrase that sums up our corporate ambition.

The Nestlé Roadmap is intended to create alignment for our people behind a cohesive set of
strategic priorities that will accelerate the achievement of our objectives. These objectives
demand from our people a blend of long-term inspiration needed to build for the future and
short-term entrepreneurial actions, delivering the necessary level of performance.
We are seeking to achieve leadership and earn that trust by satisfying the expectations of
consumers, whose daily choices drive our performance, of shareholders, of the communities in
which we operate and of society as a whole. We believe that it is only possible to create long-
term sustainable value for our shareholders if our behaviour, strategies and operations are also
creating value for the communities where we operate, for our business partners and, of course,
for our consumers. We call this “Creating Shared Value”.

We are investing for the future to ensure the financial and environmental sustainability of our
actions and operations: in capacity, in technologies, in capabilities, in people, in brands, in R&D.
Our aim is to meet today’s needs without compromising the ability of future generations to meet
their needs, and to do so in a way which will ensure profitable growth year after year and a high
level of returns for our shareholders and society at large over the long term.

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STRATEGY FOR LAUNCHING THE PRODUCT:

GOALS & OBJECTIVES:

Creating awareness about our product to at least 50% of the target market within three
months of launch
This objective will be achieved through intense promotional activities, developed to get to the
target market in the best possible manner.

Capturing 60 % of target market within 1 year.

Our promotional activities will develop interest for people thus compelling them to approach us.
We will make good relations with our customers so they create good word of mouth for us and
approach us again and refer others.

Launching the product in summers.

We will be launching the product in summers to capture most of the target consumers and as well
as market share.

Opening different outlets.

We will be opening different outlets initially in major two cities and after gaining primarily
success we will be available in all big and small cities of India.

MARKETING STRATEGY

Our product will include features that contain the combination of both health and hygiene
keeping in mind the individuals requirements in terms of taste. However the marketing will be
done considering the concept of mass personage.
Our product will be tailored to individual needs (desired taste) but promotion will attract all of
them collectively. Furthermore we will be following pull strategy and approach our end users

26
ourselves with the help of various promotional activities. In our case no intermediary (whole
sellers) is involved. Our distribution channel will be as follow.

PRICE FIXATION STRATIGIES

These are following objectives of nestle pure life regarding price fixation:

Profit Earning:

Profit earning is the main objective of every company but in case of nestle their profit margin is
low. Only a few amount of profit is collected from pure life water.

Customer satisfaction:

In nestle pure life price is not fixed by keeping in mind profit motive, only customer satisfaction
is kept in mind while fixing the prices.

STRATIGIES FOR FIXING THE PRICE:

In nestle prices are set on cost basis as given below:
Price = Cost + Profit
Break even or Target price:
Per Unit Price= variable cost + fixed cost / units of sale

DISTRIBUTION

According to the distribution, India is divided four geographical zones and then in further
Regional Sales Offices.

27
 PRODUCTS
COMPETITIVE ANALYSIS
Competitive analysis includes the comparison of one organization with its competitor. It
differentiate product and tells which product stands at which position. It tells about the
differentiation of characteristics and weaknesses of the product with its competitors.
As we know that more important competitor of Nestle is Aquafina.

SEGMENTS AND TARGET MARKETS SERVED

MARKET SEGMENTATION (PURE LIFE)

For getting the maximum market share and respect of the product in the minds of the consumer,
as per our observation and market survey we have concluded that Nestle Pure Life Water’s
segmentation is based on two points.
Geographic Segmentation
Demographic Segmentation

28
 Geographic Segmentation
The company has divided its geographic segmentation in several regions. First they have the
segmentation of a whole country and from each provincial capital, they divided its areas into
north, east, west, south. So that it could be easy for the company to work efficiently on its supply
chain management.

 Demographic Segmentation
Nestle Pure Life isn’t a supreme quality product that only the high class uses. There is no age,
sex, income and any other kind of limitation on use of the product. The product is for all. Anyone
can use the product as per need.
Nestle is a well-known company all over the world. The company basically deals in food
products as their logo says “Good Food, Good Life”. Their major products lines are:

MILK PRODUCTS

i. NESTLE EVERYDAY:
To meet the requirements of the tea-whitening segment, this product was launched in 1986. On
account of aggressive marketing, focused distribution, excellent consumer acceptance and
product quality, this brand has shown strong growth and holds good promise for the future.

ii. NESTLE MILKMAID:

It is a Partly Skimmed Sweetened Condensed Milk. NESTLÉ MILKMAID is a versatile product

and excellent as a dessert ingredient. Lip-smacking desserts can be whipped up in the shortest

29
possible time. NESTLÉ MILKMAID is a globally recognized and popular brand of Nestlé. It has
been available in India ever since the Company first started importing and selling its products
over 90 years ago.

iii. NESTLE DAHI:

is made from fresh, high quality pasteurized toned milk. It has all the goodness of natural
Calcium and the Cultures used in NESTLÉDahi help improve digestion. It comes available for
your convenience in 85g, 200g and 400g Tubs and 200g and 1kg Pouch packs.
The pouch packs are currently available only in Delhi NCR.

BEVERAGES

i. NESCAFÉ CLASSIC:

30
It is 100% Pure Instant Coffee. NESCAFÉ CLASSIC has the unmistakable taste of 100% pure
coffee and is made from carefully selected coffee beans picked from the finest plantations,
blended and roasted to perfection. 100% coffee…100% pleasure…

ii. NESTEA:
New NESTEA Iced Tea with Green Tea brings natural, healthy goodness of Green tea into your
glass. Green tea is a good source of NATURAL ANTIOXIDANTS which are known to protect
body cells from damage caused by free radicals.Feel good everyday with the refreshingly light
taste of NESTEA with Green Tea.

iii. NESCAFÉCAPPUCCINO:
The world's favorite instant coffee brand NESCAFÉ brings two delicious new Cappuccino
variants - NESCAFÉ Choco Mocha and NESCAFÉ Vanilla Latte. Treat yourself to its rich coffee

31
taste and delicious froth. Comforting, relaxing - a delicious cup of NESCAFÉ Cappuccino is a
great way to enjoy a true café experience at home.

CHOCOLATES

i. MILKYBAR CHOO:
MILKYBAR CHOO - the tasty chewy MILKYBAR - now has power of Calcium! Outdoor
champions, grab one now. Also available in yummy Strawberry and Choko flavours!!
mm, mm, mmmmmmmmm......

32
ii. MILKYBAR ECLAIRS:
Introducing a delicious new wave of strawberry flavor in your favorite’s MILKYBAR Éclairs.

iii. POLO

33
 CHAPTER 2
OBJECTIVES AND
RESEARCH
METHODOLOGY OF THE
STUDY

34
 My main objective of the project is to study the marketing mix of
Nestle India Ltd.

Other Objectives of the study are:

 To understand Nestlé’s share in Indian food market.

 To find out that what all strategies a company makes and follows for their products.

 To understand the Indian food market.

 The major steps taken by the company to enhance the sales.

 To analyze the strength of Nestle in the Baby food segment.

35
RESEARCH METHODOLOGY

Secondary research can be described as the most widely used method for data collection. This
process involves accessing information that is already gathered from either the originator or a
distributor of primary research. Secondary research includes collecting information from third-
party sources such as company websites, sales and accounting records, magazine articles and
marketing research reports. It also includes any previously gathered information used by the
marketer from any internal or external source.

Achieving accuracy in any research requires in depth study regarding the subject. As the prime
objective of the project is to compare Cadbury with the existing competitors in the market and
the impact of Nestle on Cadbury, the research methodology adopted is basically based on
secondary data. Sources of secondary data used to obtain information on Cadbury and its
competitor history, current issues, policies, procedures etc, wherever required.
1)Internet
2)Magazines
3)Newspapers

36
 CHAPTER-3
DATA ANALYSIS AND
INTERPRETATION

37
1] TABLE SHOWING AGE OF RESPONDENTS

S.No Age No. Of Respondents Percentage

(%)

1 Less than 25 yrs 43 35.83

2 25-35 32 26.67

3 35-45 20 16.67

4 45-55 12 10

5 Above 55 yrs 13 10.83

Total 120 100

Inference: It is inferred that there is a higher percentage (i.e. 35.83%) of respondents in the age
group of less than 25 years and comparatively very lower percentage (i.e. 10%) of respondents in
the age group of 45-55 years

38
39
2] TABLE SHOWING GENDER OF RESPONDENTS

S.No Gender No. Of Respondents Percentage (%)

1 Male 81 67.5

2 Female 39 32.5

Total 120 100

CHART SHOWING GENDER OF RESPONDENTS

Inference: The above table shows that 67.5% of respondents are male and 32.5% are female
respondents. It is inferred that there is a higher percentage (i.e. 67.5%) of male respondents.

40
3] TABLE SHOWING OCCUPATION OF RESPONDENTS

S.No Occupation No. Of Respondents Percentage (%)

1 Service 25 20.83

2 Govt. employee 16 13.33

3 Business 23 19.17

4 Professional 19 15.83

5 Others 37 30.83

Total 120 100

3] CHART SHOWING OCCUPATION OF RESPONDENTS

41
Findings: The above table shows that 20.83% of respondents belong to the category of services,
13.33% are government employees, 19.17% belong to the category of business, 15.83% are
professional and the rest 30.83% belong to other category, which comprises of private sector
employee

Inference: It is inferred thatthere is a higher percentage (i.e.30.83%) of respondents in the

category comprising private sector employees.

4] CHART SHOWING THE RESPONDENTS WHO HAVE OR HAVE NOT HEARD OF

NESTLE

120

100

80

60 No
Yes
40

20

0
No. Of respondents

Findings: The above table shows that 100% of respondents have heard about nestle and on the
contrary, there are none of the respondents who haven’t heard about nestle.

Inference: It is inferred that all the respondents surveyed have heard of nestle which means it’s a
popular brand which is known by everyone.

42
5] CHART SHOWING THE RESPONDENTS WHO HAVE OR HAVE NOT TRIED OF
NESTLE

5%

YES NO

95%

Findings: The above table shows that 95% of respondents have tried nestle and on the contrary,
there are 5% of the respondents who haven’t tried nestle.

Inference: It is inferred that all the respondents surveyed have tried nestle which means it’s a
popular brand which is used by everyone.

43
6] CHART SHOWING THE RESPONDENT’S FREQUENCY OF USING NESTLE
PRODUCTS

5% 10%
15%

Daily Weekly Monthly Rarely

70%

Findings: The above chart shows that 5% of respondents use nestle products rarely, 10% of them
use it daily, 15% of the people use it monthly and most of them means 70% of them are like to
consume the products weekly.

Inference: It is inferred that most of the respondents surveyed use the products very frequently
i.e. weekly. This suggests that it is a favorable product that is preferable by a lot of people.

44
Q7] CHART SHOWING THE RESPONDENT’S PREFERENCE OF THE TYPE OF
PRODUCTS OF NESTLE

Chocolates; 20%

Milk products; 50%

Beverages; 30%

Findings: The above pie chart shows that 50% of respondents prefer milk products, 30% of them
like beverages and only 20% of the public prefer chocolates.

Inference: It is inferred that most of the respondents surveyed prefer milk products such as
nestle milkmaid, nestle dahi, nestle every day, etc.

45
Q8]CHART SHOWING THE RESPONDENT’S FAVORITE BRAND IN THE
FOLLOWING NESTLE PRODUCTS?

Milky bar Choo Nescafé Classic Nestle Everyday

Milky bar Éclairs Nestea Nestle Milkmaid

Polo Nescafe Cappuccino Nestle Dahi

46
 Nescafe Classic; 25%
Nescafe Cappuccino; 50%
Nestea; 25%

Nestle everyday; 20%

Nestle dahi; 55%
Nestle milkmaid; 25%

Milky bas choo; 30%

Polo; 45%

Milky bar eclairs; 25%

Findings: The above pie charts suggest that out of the beverages Nescafe cappuccino is most
likely to be consumed that is 50%. Out of the milk products, people are preferably consuming
nestle dahi which is 55%. Lastly, polo is consumed by public which is 45%.

47
Inference: It is concluded that the products are consumed preferably of most of every brand by
the customers.

Q9]CHART SHOWING THE RESPONDENT’S SATISFACTION WITH THE VARIETY

IN PRODUCTS OFFERED BY NESTLE

How satisfied are you with the variety in products offered by Nestle?

Satisfied Quite satisfied

Slightly dissatisfied Unsatisfied

Slightly dissatisfied; 5% Satisfied; 20%

Quite satisfied; 75%

Findings: The above pie chart suggests that out of all the respondents, most of them are quite
satisfied with 75%. None of them are unsatisfied.

Inference: It is concluded that the variety in products offered by Nestle are quite satisfied by the
respondents.

48
Q10] CHART SHOWING THE RESPONDENTS THOUGHT ABOUT NESTLE
PRODUCTS IF THEY ARE HEALTHY TO CONSUME OR NOT

Yes No

No; 5%

Yes; 95%

Findings: The above pie chart clearly shows that almost all of the respondents are completely
satisfied with the products of nestle and think it is healthy to consume.

Inference: It is interfered that nestle brand is successful and is consumed by many.

49
Q11] CHART SHOWING THE RESPONDENTS SATISFACTION WITH THE
QUALITY OF PRODUCTS

How satisfied are you with the quality of products?

Satisfied Quite satisfied

Slightly dissatisfied Unsatisfied

Slightly dissatisfied; 5% Satisfied; 10%

Quite satisfied; 85%

Findings: The above pie chart shows that almost all of the respondents i.e. 85% are quite
satisfied with the quality of products of nestle, 10% are satisfied, 5% are slightly dissatisfied and
none of them are unsatisfied.

Inference: Most of the respondents like the quality of products of nestle.

50
Q12] CHART SHOWING THE RESPONDENTS SATISFACTION WITH THE
OVERALL PRODUCTS OF NESTLE ON THE SCALE OF 1 TO 5

On a Scale of 1 to 5 tell us how much satisfied are you with the overall products of Nestle?
“Where (1 = Very much Unsatisfied, 2 = Unsatisfied, 3 = neither Unsatisfied nor Satisfied, 4
= Satisfied, 5 = Very much Satisfied”

5; 10% 3; 5%

4; 85%

Findings: The above pie chart shows that none of the respondents are unsatisfied. Almost all of
them are satisfied having 85%, 10% of very much satisfied with the overall products of nestle,
5% of those which are confused themselves if they are satisfied or not.

Inference: Most of the respondents like the quality of products of nestle.

51
 SWOT ANALYSIS

STRENGTHS
 Very long history (over 140 years)
 Operated factories in 77 countries (all six continents), a truly global company.
 Considered the innovation leader in the global food and nutrition sector(3500 scientist
in company R&D network)
 Low cost operators (beat the competition by producing low cost products, edging ahead
with low operating costs)
 Offering thousands of local products.
 Have a great CEO, Peter Brabeck.
 Socially Responsible Company.
 Products enjoy strong brand image and market pull.
 Innovative and constantly growing product line. NML launched 17 new products,
including variants of existing products in recent past.

52
  Sales force is the major resource strength in terms of physical resources of the Periodic
research carried out to judge market trends.
 Multinational.
 Growing Sales and profits.
 Major shareholder in the food industry of Pakistan.
 Aggressive Marketing.
 Efficient Distribution networks throughout the country.
 Quality product
 Solid Financial position
 Strong supply chain network
 Qualified work force and a very strong workforce.
 Commitment to High Quality Products
 Year Annual Production (million liters) Annual Consumption (million liters) 2008-09 =>
648.43 353.71 2009-10 => 753.89 372.05.

WEAKNESSES
 Not as successful as they thought they would be in some market (i.e. France)
 Some of their product were positioned as too scientific, and consumers didn’t quite
understand (i.e. LC-1 was a food and not a drug)
 Selective investment due to uncertain economic and political conditions.
 Feasibility of new products needs to be analyzed, e.g. Nestea was launched some years
back but it failed because no customer demand for it existed.
 There is weak marketing of some products as sometimes there is no advertisement.
 Lack of awareness among the target market.
 It Dependency on others (govt. & sponsors) for the arrangement of events. The target
market of some of the Nestle products like MilkPak is upper middle and high class
because lower middle and poor class cannot afford to buy UHT milk due to its premium
price.
 It is a main weakness of some of the products of Nestle that there are different companies
of same products but the name of nestle sometimes stand in the last because of low
advertising and marketing.

OPPORTUNITIES

53
  Well-known company and strong brand name.
 Health-based products are becoming more popular in the world, including in the
United States.
 Ranked first in nearly all the product segments in which it operated (market leader).
 Unaffected by current economic conditions (itsshare of the UK confectionery market
rise to 15.6 per cent with a 0.5 per cent growth this year).
 Pakistan is the seventh largest producer of milk in the world with annual output of over
22 billion liters.
 Nestlé MilkPak has expanded its product range by entering the cold dairy market
recently by launching Nestlé plain yogurt and now fruit yogurt is also added to it.
 Credit policy can be adopted to increase sales.

THREATS
 Some markets they are entering are already mature.
 Global competition is high.
 There are intense competitions in the United States, especially yogurt market (General
Mills).
 Price fluctuations due to rupee devaluation as raw material are imported.
 The present economic crisis in the world, led to the withdrawal of foreign
management from the company and the investment has come to a halt.
 Legal and ethical issues.
 Market segment growth could attract new entrants.
 Economic slowdown can reduce demand.
 Two main competitors Haleeb and Olpers are main threat for MilkPak especially the
Olpers is growing very fast.
 Inflation is getting higher and higher so the purchasing power of the people is
decreasing day by day.
 There is no entry barrier for new entrants as the Olpers has come in the market.
 Taste of consumers for some products has already developed which is hard to change.

54
 PESTANALYSIS

This is my PEST analysis of Nestle:

Political factors

 Changes in tax- If the tax rate was to change it would have a direct affect on Nestle,
because every change happens that occurs in tax will also cause price of Nestle to do the
same. So if the tax rate increased this would mean that the price of confectionery goods
would also increase, this could cause Nestle to lose customers as a result of over pricing.

 Trade unions- Trade unions are put in place to look out for the best interests of the
worker. If Nestle had to lower wages for some reason, this would mean that the trade
union would file a complaint because of the wage reduction and if the wages were not
raised to an acceptable amount there is a danger of a staff strike. This would cause Nestle
to be late on deliveries and maybe even stop some production lines.

55
  Duties and levies- Are additional to the cost of shipping when importing and when
exporting products. This is what duty free is because there is no added cost for the
import/export of the goods. So if the price of duties and levies was to increase the
company would have to pay extra for transport.

Economic factors

 Inflation- Inflation effects Nestle in much the same way as changes in tax would. So if
the changes in interest rates went down so may the prices.

 Unemployment- may affect sales because if the unemployment rate was to rise this would
mean that people would not be earning as much money and they might have to cut back
on luxuries such as chocolate and other things that are not needs.

 Energy prices- Energy prices rise as do interest rates and taxes, so if electricity costs were
to be rise this would mean that it would cost Nestle more to run their machinery and this
would lead to price increases. As a result again this could mean that Nestle lose out on
customers as a result of over pricing.

Social factors

 Consumer lifestyles-This is the feeling of the current trend what is considered to be in

style and popular. These trends run in cycles and this is a good way of predicting what
will become trendy and when this gives businesses a chance to prepare. Nestle can use
this to their advantage by anticipating the next trend and releasing a product meeting that
need.

56
Technological factors

 New technological progresses-This would more than likely have a positive knock on
affect to Nestle as new technologies means faster computers and things that make every
day jobs easier. Or it may be possible to get a new machine that could increase
production rate as it is more advanced that the older model.

 Energy saving techniques- If any new energy saving techniques are invented this would
mean that the price of the energy would go down which would mean there would be extra
money to invest in to the business or into a new product.

 New materials and substitutes for existing materials- New material could be useful to
nestle as they could be used to make new types of packaging and it may make chocolate
wrappers more environmentally friendly.

 Better equipment- This is just like new technological progresses. Better equipment means
that the production rate would increase as they would be more advanced and faster. This
would enable Kit Kat to meet popular demand.

57
CHAPTER-4
FINDINGS

58
 It is inferred that there is a higher percentage (i.e. 35.83%) of respondents in the age
group of less than 25 years and comparatively very lower percentage (i.e. 10%) of
respondents in the age group of 45-55 years

 The analysis shows that 67.5% of respondents are male and 32.5% are female
respondents. It is inferred that there is a higher percentage (i.e. 67.5%) of male
respondents.

 The analysis shows that 20.83% of respondents belong to the category of services,
13.33% are government employees, 19.17% belong to the category of business, 15.83%
are professional and the rest 30.83% belong to other category, which comprises of private
sector employee

 The analysis shows that 100% of respondents have heard about nestle and on the
contrary, there are none of the respondents who haven’t heard about nestle.

 The analysis shows that 95% of respondents have tried nestle and on the contrary, there
are 5% of the respondents who haven’t tried nestle.

 The analysis shows that 5% of respondents use nestle products rarely, 10% of them use it
daily, 15% of the people use it monthly and most of them means 70% of them are like to
consume the products weekly.

 The analysis shows that 50% of respondents prefer milk products, 30% of them like
beverages and only 20% of the public prefer chocolates.

 The analysis shows that out of the beverages Nescafe cappuccino is most likely to be
consumed that is 50%. Out of the milk products, people are preferably consuming nestle
dahi which is 55%. Lastly, polo is consumed by public which is 45%.

 The analysis shows that out of all the respondents, most of them are quite satisfied with
75%. None of them are unsatisfied.

 The analysis clearly shows that almost all of the respondents are completely satisfied
with the products of nestle and think it is healthy to consume.

59
 The analysis shows that almost all of the respondents i.e. 85% are quite satisfied with the
quality of products of nestle, 10% are satisfied, 5% are slightly dissatisfied and none of
them are unsatisfied.

 The analysis shows that none of the respondents are unsatisfied. Almost all of them are
satisfied having 85%, 10% of very much satisfied with the overall products of nestle, 5%
of those which are confused themselves if they are satisfied or not.

60
CHAPTER-5
LIMITATIONS

61
There are some disadvantages to using secondary research:

1) Quality of Research
The originators of the primary research are largely self-governed and controlled by the marketer.
Therefore, the secondary research used must be scrutinized closely since the origins of the
information may be questionable. Moreover, the researcher needs to take sufficient steps to
critically evaluate the validity and reliability of the information provided.

2) Not Specific to Researcher’s Needs

In many cases, secondary data is not presented in a form that exactly meets the researcher’s
needs. Therefore, the researcher needs to rely on secondary data that is presented and classified
in a way that is similar to their needs.

3) Incomplete Information
In many cases, researchers find information that appears valuable and promising. The researcher
may not get the full version of the research to gain the full value of the study. This is because
many research suppliers offer free portions of their research and then charge expensive fees for
their full reports.

4) Not Timely
When using secondary research, one must exercise caution when using dated information from
the past. With companies competing in fast changing industries, an out-of-date research reports
many have little or no relevance to the current market situation.

62
 CHAPTER-6
SUGGESTION &
RECOMMENDATION

Nestle is the best company all over the world but there are some
recommendation and suggestions.

 Their prices are bit higher so they should low their prices to increase their customers.

63
  About 70% people use their products while the rest don’t use them. They should conduct
survey and concentrate on those facts why people are nto using their products.
 They should also improve their advertising as their advertising doesn’t pay long-term
effects in the mind of customers.
 About 17% people are not satisfied from the taste of nestle so nestle has to improve its
taste.

Recommendation
 Keep the taste nice.
 Increase advertising and show your competitive edge.
 Increase loyalty of customer with brand through attractive packages.
 Keep the price low because the day when price of competitor will be very near to your
price your sales will boost up.
 Increase its distribution network.
 Try to get more & more party orders.
 Increase incentive and promotional activities, traning courses/workshops for team.
 Conduct weekly meetings with distributors and sales team in order to review weekly
target closing.

64
 CHAPTER-7
CONCLUSION

Nestle is a market leader due to different reasons:

 Its price is high against its competitors but it matches its quality with its competitors.
 Nestle is using its brand name to promote its products & it’s very popular as compared to
its competitors.

65
  Its packaging is good.
 We can easily find Nestle from any retailer shop.
 Due to its advertisement, Nestle attracts more customers & has very prosperous future if
it continues to promote its products and bring all the possible innovational aspects using
different product line strategies.
 It has always maintained the quality of its products.
 Despite of all the facts, there’s need to maintain the condition of office and enhance the
security.
 Behavior of employees is not professional and every department should treat equally.

From our report it is concluded that nestle has a good reputation as a strong consumer brand.
66% of the consumers use Nestlé’s products regularly. 60% of the consumer’s associate quality
with Nestle.57.3 % of the consumers prefers Nestle over other brands of pure water that are
available in the market. Nestle formulating a good strategy and they are trying to go for mass-
marketing.

66
BIBLIOGRAPHY

67
 BIBLOGRAPHY

Books:
• Kotler Philip (Eighth Edition) “Marketing Management”, Prentice Hall of India Ltd.
• T.N.Chhabra (Fourth Edition) “Marketing Management”, Dhanpat Rai & Co.(Pvt.) Ltd.

Magazines:
• Advertising and marketing Magazine
• The Economic Times – “Brand Equity”
• Company Literature
• Business World
• Business Today

Website:
• www.nestle.com
• www.moneycontrol.com
• www.iloveindia.com
• www.shine.com
• http://www.thetimes100.co.uk
• http://www.deloitte.com/view/en_GX/global/services/consulting/enterprise-
applications/08645de9542fb110VgnVCM100000ba42f00aRCRD.htm
• http://www.coursework.info/University/Business_and_Administrative_studies/Economics/
Microeconomics/PEST_Model_L61591.html
• http://www.scribd.com/doc/21544545/Introduction-Nestle-Was-Founded-in-1866-by-
HenriNestle-And
• http://kninn.blogspot.com/2010/06/recommendations-for-nestle.html

68
ANNEXURE

69
 QUESTIONNAIRE

Please fill up the questionnaire according to the questions asked. (Just put on
a tick mark [√] wherever needed

Q1]What is your Age? <Less than 25>

<25-35>

<35-45>

<45-55>

<55 and above>

Q2] What is your gender? M

Q3]What is your occupation?Service

Govt. Employee

Business

Professionals

Others

Q4]Have you heard of Nestle?

Yes

No

70
Q5]Have you tried of Nestle products?

Yes

No

Q6]How frequently do you use Nestle products?

Daily Weekly

Monthly Rarely

Q7]Which type of products do you prefer the most? Milk products

Beverages

Chocolates

Q8] Which is your favorite brand in the following Nestle products?

ChocolatesBeveragesMilk Products

Milky bar Choo Nescafé Classic Nestle Everyday

Milky bar Éclairs Nestea Nestle Milkmaid

Polo Nescafe Cappuccino Nestle Dahi

Q9]How satisfied are you with the variety in products offered by Nestle?

Satisfied Quite satisfied

Slightly dissatisfied Unsatisfied

Q10]Do you think Nestle products are healthy to consume?

Yes No

71
Q11]How satisfied are you with the quality of products?

Satisfied Quite satisfied

Slightly dissatisfied Unsatisfied

Q12] On a Scale of 1 to 5 tell us how much satisfied are you with the overall products of
Nestle? “Where (1 = Very much Unsatisfied, 2 = Unsatisfied, 3 = neither Unsatisfied nor
Satisfied, 4 = Satisfied, 5 = Very much Satisfied”

14

25

Please state your valuable comments on

Nestle________________________________________________________________________
______________________________________________________________________________
______________________________

Email id:

Contact no.:

Signature

Thank you for your time and support.

72