Professional Documents
Culture Documents
On
1 Certificate
2 Acknowledgements -
3 Executive Summary -
4 Chapter-1: Introduction -
7 Chapter-4: Analysis
9 Bibliography
10 Appendices -
• Tables and Graph (If Any)
• Analytical Master Charts (If Any)
• Financial Statements (If Any)
Certificate
This is to Certify that the Project Report (BBA-114) titled “Marketing Strategies of
Nestle India Ltd.”
India has the most attractive FMCG market in the world. It is the fourth largest market of
Indian economy. The market size for FMCG in India is estimated to grow from US$30
billion in 2011 to US$74 billion in 2018. Food Products is the leading segment
accounting for 43 percent of the overall market. Personal care 22 percent and fabric care
(12 percent) comes next in terms of market share. Easier access, growing awareness and
changing lifestyles have been the key growth drivers for the sector. Read more to know
about the FMCG industry in India.
FMCG sector in India is one of the largest sectors in the Indian economy. According to an
FMCG industry overview, revenues of the FMCG sector has reached $52.75bn in FY18
and are estimated to reach $103.7bn in 2020. As the consumption in India grows at an
unprecedented rate, the FMCG industry remains a key sector for investors.
Acknowledging these trends in the FMCG industry profile, the Government of India has
undertaken various initiatives to promote the sector. The minimum capitalization for
foreign FMCG companies to invest in India is $100mn. Even the implementation of GST
in India has had far-reaching consequences as for the sector as the highest-selling FMCG
products in India such as soap, toothpaste and hair oil come under the 18% tax bracket
which was earlier under the bracket of 23%
The Indian FMCG industry generates massive employment opportunities and currently
employs more than 3 million people. Departmental stores, grocery stores, and
supermarkets are the places where consumers buy the necessary products for daily
consumption. In the 21st century, people don’t want to move across different stores to
acquire the common household goods. Hence, the introduction of supermarkets, where
customers have a variety of choices for different household products, into localities are
proving to be extremely convenient to the customers. Some of the most common stores in
India are: Reliance Retail, Big Bazaar, D-Mart, Easy day, MORE, Spencer’s, Spar,
HyperCity, and Star Bazaar. Although the operations of supermarkets are profitable, local
grocery stores are suffering due to lack of variety of products. Unlike other emerging
FMCG industry around the world, FMCG sector in India is still quite conventional.
Despite street markets are still one of the most visited places for shopping in urban and
rural settings, online platforms are leading the way to buy FMCG products.
ITC 30%
Nestlé 5%
Britannia 1%
Patanjali Ayurved 4%
Dabur 2%
Godrej Group 2%
Marico 5%
GlaxoSmithKline (GSK) 1%
Colgate-Palmolive 1%
Emami 2%
Amul 4%
Parle Products 7%
1.2 Profile of the Organization
NESTLÉ India is a subsidiary of NESTLÉ S.A. of Switzerland. With eight factories and a
large number of co-packers, Nestlé India is a vibrant Company that provides consumers
in India with products of global standards and is committed to long-term sustainable
growth and shareholder satisfaction.
Nestle has been a partner in India's growth for the past nine decades and has built a very
special relationship of trust and commitment with the people of India. The culture of
innovation and renovation within the company and access to the Nestle Group's
proprietary technology/ Brands, expertise and the extensive centralized Research and
Development facilities helps the company to create value that can be sustained over the
long term. Nestle India manufactures products of truly international quality under
internationally famous Brand names such as Nescafe, Cerelac, Maggi, Milky Bar, Milo,
BarOne, Nestea and Kit Kat and in the recent years the company has also introduced
products of daily consumption and use such as Nestle Milk, Nestle Dahi, Nestle Butter,
Nestle Fruit 'n milk ready to drink beverage and Nestle Pure Life bottled drinking water.
Nestle India Ltd, 51% subsidiary of Nestle SA, is among the leading branded food player
in the country. It has a broad based presence in the foods sector with leading market
shares in instant coffee, infant foods, milk products and noodles. It has also strengthened
its presence in chocolates, confectioneries and other semi processed food products during
the last few years. The company has launched Dairy Products like UHT Milk, Butter and
Curd and also ventured into the mineral water segment in 2001. Nestle’s leading brands
include Cerelac, Nestum, Nescafe, Maggie, KitKat, Munch and Pure Life.
Plant Location:
After more than a century-old association with the country, today, NESTLÉ India has
presence across India with 8 manufacturing facilities and 4 branch offices.
NESTLÉ India set up its first manufacturing facility at Moga (Punjab) in 1961 followed
by:
The 4 Branch Offices located at Delhi, Mumbai, Chennai and Kolkata help facilitate the
sales and marketing activities. The NESTLÉ India’s Head Office is located in Gurgaon,
Haryana.
Brands:
NESTLÉ India has more than 2000 brands ranging from global icons to local favourites,
and are present in 186 countries worldwide.
Beverages
• NESCAFÉ
• NESCAFÉ CLASSIC
• NESCAFÉ GOLD
• NESCAFÉ SUNRISE
• É by Nescafé
• Nescafé Latte
• Koko Krunch
• NESTLÉ KITKAT
• NESTLÉ MUNCH
• NESTLÉ MILKYBAR
Dairy
• NESTLÉ a+
• NESTLÉ MILKMAID
Nutrition
• Nestlé Nangrow
• Nestlé LACTOGROW
Foods
• Masala Noodles
• Nutrilicious
• Fusian
• Cuppa
• Sauces
• Pazzta
Cooking Aids
• MAGGI Masala-ae-Magic
• Nestlé Professional
Imports
• FOX’s
Business Overview:
The company worked closely with employees, local communities and business
partners to navigate through the unprecedented times, reduced manufacturing
complexities which arose as a result of the lockdown and made available its
products to consumers with speed and agility. 4
The company stood by nearly 100,000 dairy farmers in these difficult times and
bought every drop of milk which was offered by them. The company continued to
work closely with its 3,500 coffee farmers, 1,250 spice growers and extended its
support to numerous farmers in Karnataka by sourcing substantial quantity of
tomatoes from them through its suppliers to reduce distress.
The company is proposing to invest Rs 26 billion over the next three to four years
to augment its existing manufacturing capacities, as well as towards its new under
construction ‘state of the art’ factory in Sanand, Gujarat, which demonstrates the
company’s commitment to India.
MAGGI registered strong growth across its brands, that strengthened its position
as the industry leader. MAGGI noodles responded to consumers experimenting
during in-home indulgence and launched new flavours such as Yummy Capsica
and Chatpata Tomato and renovated Desi Cheesey.
The company also launched MAGGI Atta Spinach noodles for consumers seeking
both taste and nutritional benefits. MAGGI Sauces registered double-digit growth
and MAGGI Upma and Poha scaled up in volume and delivered strong presence
in the Ready-to-Eat segment. As there was an increased need for cooking aids
during and post-lockdown, the company launched MAGGI Fried Rice Masala
with two spice mixes - Classic Veg and Chilli Garlic fried rice, and MAGGI
Paneer-aeMagic Shahi Paneer and Kadhai Paneer Masala mix.
To strengthen the consumers trust, the company created QR code enabled anti-
counterfeit solution for MAGGI Masala-ae-Magic to ensure the authenticity of the
pack.
The company launched ‘MAGGI – Cooking Made Simple’, a service that makes
every-day cooking simple, convenient and enjoyable for everybody. This service
brings popular recipes from across the country, under three areas of ‘made easy’,
‘made with a twist’ and ‘made healthier’.
The company believes in the power of food to enhance lives, improve livelihoods
and protect the planet for future generations. The company launched,‘MAGGI -
DESH KE LIYE 2 MINUTE – Ek Chhoti Si Koshish’, an initiative aimed at
inspiring people to take small steps to bring about change. Centered around 3S -
Swasthya, Swachhta and Sahayata, MAGGI collaborated with communities in a
purposeful way, provided 1 million meals to disadvantaged sections of the society,
supported street food vendors to come out of these challenging times, inspired the
youth to connect with agriculture and supported 10,000 home chefs to start their
own food business.
The Milk Product and Nutrition business continued to deliver good performance
despite disruptions caused by COVID-19 and challenges linked to commodity
price fluctuation. The company mitigated some of these challenges by identifying
and implementing efficiency improvements across the value chain.
The company continued to support over 100,000 Dairy farmers during the
pandemic by buying every litre of milk offered to the company, providing
uninterrupted timely payments and ensuring COVID-19 related precautions are
followed during milk collection.
The company distributed over 6 Million serves of dairy products as a part of ‘Care
Packs’ to frontline COVID warriors. The company also pioneered the purpose-
driven campaign by distributing sweet dish made from MILKMAID to over
10,000 families during Kerala’s Onam festival.
The company continued to focus on growing Coffee and Beverages business and
remain relevant to consumers, despite the challenges posed by COVID-19.
Remaining consistent to the successful strategy over last few years, NESCAFÉ led
the journey of building the coffee consumption category throughout the year. This
reflected in strong brand growth and resulted in significant market share gains.
The company continued its journey of building relevance and strong connection
with consumers with the NESCAFÉ Classic new campaign, ’Karne se hi hona hai’
The campaign was anchored in hope and action to inspire consumers to restart
lives in the new normal.
Despite the pandemic, the company continued to build its portfolio through the
launch of innovative products and solutions. In response to hygiene concerns post
the pandemic, the company led the launch of contactless beverage solutions in the
industry. Continuing with the objective to premiumize the beverages business
portfolio, Roast & Ground (R&G) coffee was developed and launched. This was
accompanied by the development of an R&G beverage solution which opens-up
an additional market for such solutions.
Since the dependence on food delivery due to the pandemic had increased, the
company introduced a service and product platform to expand its role in the
delivery ecosystem. The company introduced 100+ quick and easy recipes for
menu partnerships with restaurants, based on top-sellers and limited pantry
support. The company also introduced a food solutions portfolio customized for
delivery applications like rice seasonings (Oriental) and pasta sauce mixes
(Italian) that are operator friendly and cost effective.
The company took an important initiative to scale up the kiosk business through
‘Entrepreneurship for Youth’ which aims to create livelihood and job
opportunities for people through their kiosk business model, helping the youth of
the country cope with these unprecedented times. The kiosks are run on a youth-
facing, franchisee-operated business model, offering unique entrepreneurial
opportunities to generate sustainable business, decent employment and respectable
livelihoods for the franchise owners.
Financial Highlights:
Total Sales and Domestic Sales for the year ended 31, December 2020; increased
by 8.1% and 8.5% respectively. Domestic Sales growth is largely driven by
volume & mix and is broad based. Demand in Out-of-Home channel was
impacted throughout the year due to COVID-19 pandemic. Export Sales growth at
1.4% impacted by lower coffee exports.
Other Income has decreased due to lower yields and lower average liquidities.
The Board of Directors have recommended a final dividend of Rs 65.00 per equity
share amounting to Rs 6,267 Million for the year 2020. The total dividend for
2020 aggregates to Rs 200 per equity share which includes interim dividend of Rs
135.00 per equity share paid on 20th November 2020.
Exports:
In 2020, the exports of the company registered 4.8% volume growth, driven by
categories such as Prepared Dishes and Cooking Aids, Milk Products and
Nutrition. The company’s continued focus on MAGGI range extension and
channel proliferation brought growth across international markets.
The company recorded highest ever exports of MAGGI noodles and sauces to the
United States, Canada, United Kingdom, European Union, Australia and New
Zealand, despite disruptions in supply chain, caused as a result of COVID-19.
Categories such as Coffee and Beverages were negatively impacted by supply
chain disruptions, lower coffee exports to Turkey and drop in Out-of-Home
consumption.
28 July 2021; The Board of Directors of Nestlé India today approved the results
for the second quarter of 2021.
Key Highlights
• Domestic & Export Sales achieved double digit growth largely driven by volume
& mix.
• In recent times, commodity prices have been rising across oils and packaging
materials.
1.3 Problems of the Organization
In June 2015, Nestlé India's instant noodles product 'Maggi Noodles' was banned by
the Government of Delhi for a 15 day period after lead and monosodium glutamate in
samples of the product were found to be beyond permissible limits. On 5 June 2015
Maggi noodles were banned nationwide by the Food Safety and Standards Authority of
India. The ban was overturned on 13 August 2015 following the Bombay High Court's
order and samples of Maggi Noodles were ordered to be retested within 6 weeks by three
labs authorized by the National Accreditation Board for Testing and Calibration
Laboratories. Nestle was fined ₹45 lakh for the incident by the district
administration. Between 5 June 2015 when the noodles were first banned and 1
September 2015, Nestlé recalled 38,000 tonnes of Maggi Noodles from stores and
incinerated them at 11 cement plants across India. Nestlé eventually cleared the Bombay
High Court mandated lab tests and Maggi Noodles were allowed to be manufactured and
sold again.
Here are five ways the controversy affects Nestle India, the multinational company,
which owns this brand:
As states across the country banned the product, many retailers took Maggi off the
shelves. Future Group, which owns the supermarket chain Big Bazaar, was one of the
first to stop selling the noodles packs. Some states such as Punjab, Karnataka and
Uttarakhand also ordered Nestle to stop production until further orders. As a result,
Maggi sales fell 60% across India since the controversy began in the last week of May,
according to a Kotak Securities report.
The fall in sales directly affects the revenues of the consumer company since Maggi is a
big revenue generator for Nestle India. It is the single largest brand under Nestle India,
which usually contributes about 22-25% to its total revenue of the company, the Kotak
report said. The fiasco has forced Nestle to cut production by one-third. It also began
recalling Maggi from markets across India. Consequently, many analysts feel that Nestle
may lose about Rs 160 crore in revenue in the quarter to June 2015. This is also expected
to affect Nestle's overall profits. Maggi contributed 30% of Nestle India's Rs 1,185 crore-
worth profits in 2014-15, as per the media reports.
Trust plays a major factor when a consumer buys a particular product. With harmful
chemicals like lead and MSG found in samples across the country, consumers may feel
their health is at stake. This has shaken consumers' confidence. Nestle's public relations
strategy also failed to take consumers into confidence, points out Kotak Securities. Even
consumer grievances on social media were managed only with a standard automated
response, which did not impress its loyal consumers. The company voluntarily recalled
Maggi after calling its consumers 'confused', according to media reports. This further
damaged the reputation of the company, the Kotak report said. Ironically, Maggi was
adjudged the most powerful brand in India in 2014.
Ultimately, the controversy over Maggi's safety is likely to impact Nestle's financial
prospects as the demand has grown at a slow pace in the past quarters. Most consumer
goods companies have seen single-digit growth in the recent past. Keeping this in mind,
the current controversy is only expected to add to Nestle's woes. Revenue growth may
weaken in this financial year in the aftermath of the controversy, Kotak said.
The Nestle India stock currently trades at 33 times the company's future Earnings per
Share (EPS), according to Kotak Institutional Equities report. This means, investors pay
33 times more than the company's expected profit in FY16 to purchase the stock.
Importantly, the future EPS was calculated by considering 55% growth in profit per share
between 2014 and 2016. This is not valid anymore. Experts foresee EPS to be hit by 10-
20% by the fall in Maggi sales, the Kotak Institutional Equities report states. This means,
the stock is even more costly - trading at 37-40 times Nestle's FY16 EPS.
1.4 S.W.O.T. Analysis of the Organization
The following section presents the Strength, Weakness, Opportunity and Threat analysis
of Nestlé India.
Strengths
2. Strong brands
4. Product innovation
5. Good leadership
The company enjoys good support of parent company Nestlé S.A. which is a nutrition,
health and wellness company headquartered in Vevey, Waadt, Switzerland. The
company's product portfolio includes baby foods, bottled water, cereals, chocolate and
confectionery, coffee, culinary products, chilled and frozen foods, dairy products, drinks,
nutritional products, ice-cream, cooking aid products, pet care products, sports nutrition
products, weight management and pharmaceutical products. The company has strong
brands like Nescafe, milkmaid, kit kat, etc. and the company is known for product
innovation. Under the dynamic leadership of the current Chairman and Managing
Director Mr. Suresh Narayanan Nestlé India is doing extremely well and infact the
company is even open to strategic acquisition for faster growth. More importantly brand
under his stewardship Maggi attained over 60 percent market share and almost reached
the pre-crisis level in value sales volume. Nestlé have a century old presence in India
when Nestlé AngloSwiss Condensed Milk Company (Export) Limited imported and sold
the finished products in the Indian market. The company has been an associate in India's
growth and has a very unique association of confidence and commitment with the people
of India. The Company's have provided direct and indirect employment to over one
million people including farmers, suppliers of packaging materials and other. Nestlé
India, achieved a major landmark in the financial year 2017 as the first listed food
company to cross Rs10,000 crore in sales in India. Also, the good financial performance
in first quarter of the current financial year leads to good show in share prices of Nestlé
India in National Stock Exchange and Bombay Stock Exchange.
Weaknesses
1. Nestlé India was totally unaware and were ill prepared to handle a regulator's call on
Maggi ban
2. responses to Maggi ban were very brief and not adequately culture-sensitive
3. Heavy dependence on milk products and nutrition, the largest category that contributes
nearly 47.6% to the company's top line
Nestlé India was caught off the guard as the company was totally ignorant and were ill
prepared to manage the regulator’s call on Maggi ban and more importantly the responses
to Maggi ban were very brief and not adequately culture-sensitive. Heavy dependence on
milk products and nutrition, the largest category that contributes nearly 47.6% to the
company's top line is another major weakness of the company.
Opportunities
2. The Company have a global portfolio of about 2,000 brands but in India they are
operating with a truncated portfolio of just 20 brands
The company have excellent potential for growth in confectionery and beverage
segment. The Company have a global portfolio of about 2,000 brands including best
selling brands like Aero, Cerelac, Chocapic, Nescafe, Boost, Kit Kat, Crunch, S.
Pellegrino, Perrier, Nido, La Laitiere, Carnation, Milo, Nestea, Nesquik, Dreyer’s,
Movenpick and Alpo, Beneful. But in India they are operating with a truncated portfolio
of just 20 brands. So, the company can capitalise on the product and brand strength of the
parent company.
Threats
1. Stiff competition from new entrants like Ferrero India and Patanjali Products
The company is facing stiff competition from new entrants like Ferrero India and
Patanjali Products. Raising cost of input is another threat is a common problem faced by
most of the companies in Fast Moving Consumer Goods sector. Maggi ban negative
publicity is probably the major threat for the company and if the issue have not been
raised, the company would have reached Rs. 10,000 crore mark a couple of years ago.
1.5 Competitive Analysis
Competition
Name Last Price Market Cap. Sales Net Profit Total Assets
(Rs. cr.) Turnover
Dec '21 Mar '22 Mar '22 Mar '19 Mar '22
Sources Of Funds
Total Share Capital 96.42 24.09 129.97 42.06 131.97
Equity Share Capital 96.42 24.09 129.97 42.06 131.97
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 1,988.06 2,378.45 7,247.91 4,052.66 1,971.53
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Net worth 2,084.48 2,402.54 7,377.88 4,094.72 2,103.50
Secured Loans 34.06 2,178.14 2,507.86 0.00 0.00
Unsecured Loans 0.00 0.00 0.00 0.00 0.00
Total Debt 34.06 2,178.14 2,507.86 0.00 0.00
Total Liabilities 2,118.54 4,580.68 9,885.74 4,094.72 2,103.50
Nestle Britannia Adani Wilmar GlaxoSmith Con Jubilant Food
Dec '21 Mar '22 Mar '22 Mar '19 Mar '22
Application Of Funds
Gross Block 5,116.88 2,238.46 4,509.08 695.07 2,728.55
Less: Accum. Depreciation 2,122.91 861.03 0.00 233.00 0.00
Net Block 2,993.97 1,377.43 4,509.08 462.07 2,728.55
Capital Work in Progress 246.23 535.27 0.00 17.73 0.00
Investments 773.98 2,024.11 286.01 0.00 954.41
Inventories 1,580.22 1,251.64 7,376.50 465.47 157.05
Sundry Debtors 165.27 253.85 2,142.21 385.68 26.75
Cash and Bank Balance 735.41 52.29 4,445.51 4,097.34 539.99
Total Current Assets 2,480.90 1,557.78 13,964.22 4,948.49 723.79
Loans and Advances 1,714.85 1,508.36 1,492.00 639.80 368.63
Fixed Deposits 0.00 0.00 0.00 0.00 0.00
Total CA, Loans & Advances 4,195.75 3,066.14 15,456.22 5,588.29 1,092.42
Deferred Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 2,668.31 1,971.11 10,331.24 1,595.89 2,631.18
Provisions 3,423.08 451.16 34.33 377.48 40.69
Total CL & Provisions 6,091.39 2,422.27 10,365.57 1,973.37 2,671.87
-
Net Current Assets 643.87 5,090.65 3,614.92 -1,579.45
1,895.64
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00
Total Assets 2,118.54 4,580.68 9,885.74 4,094.72 2,103.51
Marketing strategies play a vital role in the consumers' decision making process, as the
strategies are designed particularly in achieving the organisational goals. Different
companies follow different strategies to meet their objectives, and the strategies which
companies implement have a greater impact on consumer behaviour towards the product.
The organisations forecast the future while implementing the marketing strategies, and
also analyse the areas in which they need to improve, and the changes which have to be
taken into consideration. The organisation cannot enjoy success unless they come up with
strategies which will help them in meeting their objectives. FMCG companies mainly
concentrate on product innovation, and use strategies like Multi brand strategy, new
product development etc.
The noodle industry is a part of the FMCG sector. India is one of the largest consumers of
noodles in the world, India ranked 4th in the world in terms of noodle consumption. To
fulfil this increasing demand for noodles many noodles manufacturing companies
increasing their production capacity in India and maximizing their marketing to reach a
greater number of customers. To sustain in this competition and gain a competitive
advantage over a competitor, every industry tries to expand its marketing strategies.
Noodles manufacturing companies are doing their advertisement in various ways like
Print media, broadcast media, digital media, guerrilla marketing, outdoor media, etc. Each
media has some advantages and some disadvantages. Based on a line of penetration
advertisement classified into above the line, below the line, through the line
advertisements. Above-the line advertisements are nontargeted and have a large reach.
Below the line advertisements are specified with a particular group and through the line
advertisement, there is the use of both above the line and below the line advertisement.
2.3 Impact of ban to sell Maggi noodles in India during 2015 on the revenue of
Nestle Indian Ltd.
After re-launching the market shares of Maggi Noodles have persistently increased
months by month. Maggi noodles had adopted variations strategies for attracting
consumers such as attractive slogans, tailor made products according to desires of
consumers, much emphasis on health and quality, sale promotion schemes and market
research etc. for increasing sales. Though, in today's competitive era, varieties of fast
foods are available in the markets. However, instant Maggi noodles have become
universal food product for the peoples of all age groups. There are immense possibilities
of earning huge profit. There is need to establish more accredited laboratories.
Government must always have a vigilant check over the quality of products keeping
public health in mind.
2.4 Culture and Crisis Communication: Nestle India's Maggi Noodles Case
2.5 Fast Moving Consumer Goods Sector in India -Tending Towards Oligopoly?
FMCG sector is the fourth largest sector in India. Macroeconomic factors, modern
production techniques, robust logistics facilities, efficient distribution networks and
superior marketing capabilities have given the sector an edge over the other sectors. Firm
performance is determined by considering liquidity, solvency and profitability ratios and
also by employing common size statements, and comparative statements. The sector
appears to be overly dependent on the performance of a few firms. Firm performance is
not related to non-commercial factors such as CSR.
2.6 Nestle India in a Soup: Mapping Emotions to the Use of Coping Strategies.
When the affected publics express emotions such as sadness, happiness and humour, their
rational thinking ability is diminished. In such situations, it is recommended to instil
organizational messages with emotional expressions that validate such emotions to assist
the affected public to revert to their original state of emotions. Also, substantive changes
are recommended to the ICM model, such as categorizing crisis based on goal congruence
and goal relevance; and substituting the X-axis with internal locus of control.
2.7 Behaviour Change and Nutrition Education for Teenagers: Nestlé Social
Marketing “Healthy Kids Programme” in India
The Nestlé Healthy Kids Program is a campaign that aims to determine major behaviour
changes in terms of nutrition and lifestyle by educating teenagers to set a balanced and
healthy diet together with an active lifestyle. The paper emphasizes the strengths of the
campaign along with its limitations in terms of branding, communication, and image
challenges encountered so far by the company.
Most of Nestle’s income comes from Milk Products and Nutrition (MPN) sales. Nestle
has to maintain or even improve the quality of their nutritious products, in order to be
able to secure their market share in India. Secondary data such as annual reports, news
articles, and analysis on trusted websites were used to conduct this study. the data was
processed by using IFE, EFE, TOWS, and QSPM matrices. The result shows that Nestle
India should prioritize to apply product development strategy first, then related
diversification strategy
2.9 A Study on Rural Marketing Management of Indian FMCG Product
FMCG market has seen faster growth in rural India when contrasted with the urban
partners. FMCG products are accounted for to represent half of the complete rural
spending, which is a verification of the fast growth in the semi-urban and rural consumers
in the industry. Companies that prior treated the rural market as a freedom ground for
their lower-end products are presently realizing the need to concentrate on the
prerequisites of the rural customers. Companies, particularly in the FMCG sector, need to
comprehend the elements of the blossoming rural market and think of creative systems to
win the trust of these potential consumers and to remain important in the market.
Several state food regulators found that Maggi contained monosodium glutamate as well
as lead well above the prescribed limits. Both these substances were harmful especially
for children. The national food regulator FSSAI, ordered a ban on the sale of Maggi
including product recall. Nestlé India was slow to respond to this fast unfolding crisis.
Further, their responses were very brief and not adequately culture sensitive. To set right
things Nestlé's worldwide CEO flew into India to douse the flames of the controversy and
draw up an appropriate strategy to bail out the brand. He address the media, put in place a
new CEO for Nestlé India and set brand Maggi on the path of recovery.