Professional Documents
Culture Documents
PROJECT REPORT
ON
NESTLE
SUBMITTED BY:
VIPUL
BBA (GEN)
SUBMITTED TO:
Mr. AMIT GUPTA
COURSE CORDINATOR OF BBA (GEN)
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ACKNOWLEDGEMENT
I would like to thank my project guider Mr. AMIT GUPTA for his
immense guidance .A valuable help and provided me the
opportunity to complete the project under his guidance
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CERTIFICATE
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DECLARATION
VIPUL
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INDEX
CHAPTER 1
OJECTIVE
RESEARCH METHODOGY
CHAPTER 2
INTRODUCTION
COMPANY PROFILE
CHAPTER 3
ANALYSIS OF DATA
PRODUCTS
CHAPTER 4
CONCLUSION
LIMITATIONS
BIBLOGRAPHY
ANNEXURE
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EXECUTIVE SUMMARY
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OBJECTIVE
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RESEARCH METHODOLOGY
services that create value in the mind of the customer. But the
this year may be quite different from what they value next year. As
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For the purpose of study, data from the in-house survey
been used and also for coming out with the recommendation. It
was also felt that mere secondary data would not provide in-depth
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INTRODUCTION
Nestle India Ltd. is a part of the Nestle SA group which is one of the largest manufacturing
companies in the world. Henri Nestle founded the company (with its headquarters in Vevey,
Switzerland) in 1867. Nestle has two major divisions - Le Societe des Produits which
looks after the production and marketing and Nestec Ltd. which provides the technical
assistance to the group companies. Since its inception in 1867, the company has diversified
it product range from the infant weaning formula (which was its first product) to beverages,
confectionery, ice creams and pet foods among others. In a span of 130 years the company
has ranked 26th among the world’s largest corporations and boasts of a turnover of $
48932.5 million and employee strength of 221,144 people spread over 75 countries
contribute 18%.
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Company Profile
food and condensed milk, manufacturing in India only began with the
smaller towns)
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The company’s exports also resulted in a very successful year in
this area as exports grew by 27% to Rs. 250.8 crores in 2003. The
main contributors to this increase were the export of tea and coffee to
and has started construction of its sixth Factory at Bicholim, Goa for the
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The Spirit of Nestle
A key factor for Nestle’s success has been its quest for
mission statement.
Nestle’s mission
superior quality products, our shareholders with rapid growth & fair
environment.”
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Key Objectives
Production
People
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Finance
To maintain profit levels above the average for the food industry in
India.
Factories
1. Moga (punjab) : The Nestle factory in Moga has the pride of being
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2. Choladi ( Tamil Nadu): The factory in Choladi started production
in 1967. Situated about 60 miles from Calicut, the factory today has 81
a 100 percent export oriented unit which processes freshly picked tea
this factory. This factory employs 145 people and is cited as a model in
India.
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6.Bicholim (Goa)
products, which is a key thrust area for the company and will include
(MIT) was put in place at the Moga factory. The team comprised of
Cost optimization
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A series of small but critically important initiatives ranging from
business plan. Monthly objectives are broken down into weekly and
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capital through lower inventories of finished goods and materials, better
actions.
Teams have been put in place at all factories and sales offices
approximately Rs. 258 crores. 1989 was the year of launches. Seven
new product lines were launched in this year. This was also the year in
which the Nanjagud factory was set up. By the year 1992, this sales
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figure was touching Rs 500 crores. In the 1995 the pace of launches
pipeline as well. The sales figure now touched Rs. 1214 crores. Thus
Marketing Strategy
availability.
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In the late 1996 fear of breading complacency by not having a
improving the distribution set up , this gave rise to the following growth
basis.
objectives.
distributor to retailer.
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NEW PRODUCT LAUNCHES
To put all the product launches into perspective, Nestle now has
conditions and then work at “holding off the advancing herds”. Nestle
Milk Products
Beverages
Culinary
Food service
Milk Products
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This category which comprises of condensed milk, baby milk
foods , milk powders , acidified infant food , and other milk products,
of basic raw materials( fresh milk ) , over the past two years .
with Cerelac, Lactogen and Nestum and even introduced a new flavour
has thus been one of the thrust areas in Nestle. Nestle this year
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increase in sales as a majority of Indian tastes still do not accept this
flavour.
Market share in the past year and Nestle officials are hopeful that this
will further increase in the coming years. However this Brand along with
India has launched a Litigation against the Kit Kat family pack.
customer. Priced at Rs. 1 for a 7.5 gram candy splash has been
Polo’s performance. Nestle’s officials claim that this candy has the
little magic “ .This new product was launched in September 1997 ,in
time for the Diwali purchases of sweets . This brand has been
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positioned somewhere between chocolates and traditional sweets and
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Beverages
This year has been very successful in the beverages market for
per Kilogram before the launch of Tata Cafe, met with stiff competition
from Tata Cafe priced at Rupees 550 per Kg once it was introduced .
840 per Kg. However Nescafe still retains 83% market share in the Rs
chocolate energy drink, and the response for this has been
encouraging.
Nestle has also introduced Tasters Choice tea bag pitched against Taj
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Culinary Products
officials’ say that this would consolidate Maggis position as the number
new segment for the maggi brands. The brand is positioned as youthful
Dosa Mix was also introduced to offer superior quality and added
mixes. Maggi soup also launched three new variants. Maggi Rassam in
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Food Service
need for such a reliable, time saving and cost effective service in this
modern age .
Nestle wants to sell 500 million cups of tea and coffee through
its vending machines in the year 2003. It currently has 3500 vending
Nestle food service did well to vend 40 million cups of Nescafe and
Tasters Choice tea. Its 2003 sales were placed at 59 million cups of
Nescafe and 36 million cups of tea, this figure was however way below
Distribution strategy
being spread across more than 4000 towns have to be very effectively
and efficiently tapped. Nestle till now was retailing in a limited number
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of towns with only 200 towns accounting for 70 % of their business. For
of increasing the retail base to 1,000,000 outlets by the year 2003. This
explained in figure 2.
of the probable retail outlets and finally selection of the same .The
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Advertising Strategy
was actually meant to fend off a challenge from H.J Heinz. The Maggi
until 1990 but till 2003 it got considerable market share. At this point
was an instant success. The volume of sales kept rising from an initial
growth of 13% to 20% in the next year. Today the sales figure for
56 crores where again innovation was the main focus. The new nation-
wide product launch of Maggi Macaroni Snack and Mithai Magic have
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and a catchy beat (which is the latest trend amongst the Indian
Advertisers) appeals well to the target audience and the Mithai Magic
commercial does keep the secret of the contents in the box , intact.
it is an investment in people ”
Group
Recruitment Policy
done every April-May. These graduates are generally selected from the
does not offer some of the highest pay packets in the industry, it is
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Training and Development
investment .
worldwide -
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At Nestle India training and development is an integral part of
the business plan and strategy in line with the objectives for the year
continuous process .
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analysis of training needs of Managers
incorporate its own culture into its employees without stifling the
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motivational messages and even time logs (the Nestle people seemed
Nestle has a diverse product range and so it also has diversified risks
put in place across the company to link all functional areas and
integration.
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Nestle India Ltd., is a part of the Nestle SA group, which
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today only 2% of its turnover comes from Switzerland.
OVERVIEW
through:
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Taking measures to ensure availability and improved
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The spirit of Nestle
A key factor for Nestle's success has been its quest for
mission statement.
Nestle's mission
environment."
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To translate this spirit into a planned and measurable
divisions.
40
KEY OBJECTIVES
Production
2000.
People
goals.
individual needs
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To view growth as a continuous process.
belonging to Nestle.
Finance
Key Fact
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SALES ANALYSIS
By Geographic Area
(%)
69/998
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In Million of CHF 2001(%)
Cream
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Breakdown of 2006 Trading Expenses (in %)
Percentage
Packaging 8.8
Depreciation 4.1
Company Profile
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Chairman of the Board: Helmut O. Maucher
Worldwide operations
495 factories
Historical Development
Milk Company
Suisses. S. A.
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1947 Merger with Alimentana S.A. (Maggi)
Factories
1. Moga (punjab)
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The Nestle factory in Moga has the pride of being the
3. Nanjagud (Karnataka)
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manufactures health beverages. The plant to
4.Samalakha (Haryana)
5.Ponda (Goa)
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towards becoming the Number 1 Chocolates and
6.Bicholim (Goa )
products.
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manufacturing expertise in 75 countries the team
resources
Cost optimization
realized .
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This project was highly successful and the company is
factories.
market needs.
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goods and materials, better stock availability and
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The efficacy of this hierarchical structure is seen in
products.
factory was set up. By the year 1992, this sales figure
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TODAY NESTLE IS PRESENT IN DIFFERENT
Soluble coffee
Mineral Water
Other beverages
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Nesquik, Nescau, Nestea, Milo, Carnation, Libby's Caro.
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Dairy Product
Neslac, Barenmarke.
Breakfast Cereals
Nestle
Coffee Creamers
Coffee-mate
Contadina
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Frozen Foods
Ice Cream
sauces)
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Food Services and Professional Products
Pet Care
Ophthalmological products
Alcon
Cosmetics
L'Oreal
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NEW PRODUCT LAUNCHES
Milk Product
Beverages
Culinary
Food Service.
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Milk Products
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Chocolates and Confectionery
analysts.
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success has brought with it its share of Controversy as
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and the company is employing a push strategy to
Beverages
1996.
instant coffee.
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Nestle Sunrise also showed an increase in sales and
instant coffee.
Culinary Products
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innovation as its Unique Selling Proposition. This snack
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Food Services
age.
figure was however way below the expected sales for the
year.
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In 2001 and 2002 nestle has come with a number of new
the full cream , toned and double toned milk. The nestle
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BIBLIOGRAPHY
www.nestle.com
www.google.com
NEWSPAPER
MAGZINES
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ANNEXURE
Payment
extraordinary item
70
Reserves written back 49 130
appropriation
Transfer to debenture 42 2
redemption reserve
transfer to general 54 56
reserve
the 1200 crores mark . Domestic sales grew by 19% and exports
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Throughout 2003, there was a marked lack of buoyancy in the
and trade .
advance .
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Financial Information
Sales 81 422
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Equity 29 904
on a worldwide basis.
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