MARKETING

Project ON

A STUDY ON MARKETING STRATEGY OF NESTLE [WITH REFERENCE TO

MAGGI,NESCAFE,MILKMAID & KITKAT]

SUBMITTED IN PARTIAL FULFILLMENT OF THE

Degree of

MASTER OF MANAGEMENT STUDIES [MMS] ACADEMIC YEAR : 2022-2024

SUBMITTED BY

SOHEL SHAIKH

ROLL NO : A202237

SEMESTER – IV

Specialization : MARKETING
UNDER THE GUIDANCE OF

PROF : NEHA SHARMA

H.K. INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

JOGESHWARI {W},MUMBAI : 400102

1
 MARKETING
Project ON

A STUDY ON MARKETING STRATEGY OF NESTLE [WITH REFERENCE TO

MAGGI,NESCAFE,MILKMAID & KITKAT]

SUBMITTED IN PARTIAL FULFILLMENT OF THE

Degree of

MASTER OF MANAGEMENT STUDIES [MMS] ACADEMIC YEAR : 2022-2024

SUBMITTED BY

SOHEL SHAIKH

ROLL NO : A202237

SEMESTER – IV

Specialization : MARKETING
UNDER THE GUIDANCE OF

PROF : NEHA SHARMA

H.K. INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

JOGESHWARI {W},MUMBAI : 400102

2
 STUDENTS DECLARATION
I hereby declare that this report submitted in partial fulfillment of the requirement of
Master of Management Studies degree awarded by University of Mumbai from H.K.
Institute of Management Studies and Research, is my original work and not submitted
for award of any other degree or diploma fellowship or for similar titles or prizes.

I further certify that I have no objection and grant rights to H.K. Institute of
Management Studies and Research to publish any chapter/project if they deem fit to
publish in Journal/Magazines and newspapers etc. without my permission.

Name :- sohel shaikh

Class :- A

Roll No :- 202237

Place :- MUMBAI

Date :-

Specialization :- MARKETING

3
 CERTIFICATE
This is to certify that the dissertation submitted in partial fulfillment for the award of
Master of Management Studies under University of Mumbai from
H.K. Institute of Management Studies and Research is a result of the bona fide
research work carried out by Mr. SOHEL SHAIKH under my supervision and
guidance. No part of this report has been submitted for award of any other degree,
diploma, fellowship or other similar titles or prizes. The work has also not been
published in any Journals/Magazines.

------------------------------ -------------------------
Director Project
HKIMSR HKIMSR

4
 ACKNOWLEDGEMENT
I take this opportunity to thank all those who have been of help to me in the
completion of this project.

I would like to appreciate PROF NEHA SHARMA (faculty of HKIMSR) for their
guidance and constant supervision as well as for providing necessary information
regarding the project & also for their support in completing the Project.

I am also grateful to, Director and all the faculty members who have
directly or indirectly helped me in preparing this project report.

5
SR NO. CONTEXT PAGE NO.

6
1 EXECUTIVE SUMMARY 5

2 OBJECTIVE 6

3 CHAPTER 1 – LITERATRE REVIEW 9

4 CHAPTER 2 – INTRODUCTION TO NESTLE 10

2.1 INTRODUCTION 10-11
2.2 HISTORY 11-12
2.3 ADVANTAGE & DISADVANTAGE 13
2.4 LOGO 14

5 CHAPTER 3 – COMPANY PROFILE

3.1 VISSION & MISSION
15
3.2 PRODUCT MIX
16-17
- MILK PRODUCT
- NEUTRATION PRODUCT
- BEVERAGES
3.3 MARKETING MIX
18-30
-BEVERAGES
-PREPAID DISHES & COOKING AIDS
MILK & MILK PRODUCT
3.4 PRODUCT CYCLE
31-35
-MAGGI
- KITKATE
3.5 BCG MATRIX
35-36

3.6 SWOT ANYLYSIS OF NESTLE 37-38

3.7 PROMOTIONAL STRATIGIES 39-45
7
 - NESTLE
-MAGGI
-KITKAT
-NESCAFE
3.8 POSSITIONING STREGIES OF NESTLE 45-50
3.9 CONSUMER PREFRENCE 50-56
-MEANING OF CONSUMER PREFRENCE
-CULTURE FACTORS
- SOCIAL FACTORS
- PERSONAL FACTORS
- PSYCHOLOGICAL FACTORS
3.10 BRANCHES & OFFICES 56
3.11 ORGANIZATIOON & STRUCTURED 57

6 CHAPTER 4 – RESEARCH METHODOLOGY 58-61

7 CHAPTER 5 – DATA ANALYSIS & INTERPRETATION 62-72

8 CHAPTER 6 – CONCLUSION 73-74

9 CHAPTER 7 – SUGGESTION & RECOMMENDATION 75

10 BIBLOGRAPHY 76

11 ANNEXURE 77-79

8
EXECUTIVE SUMMARY

Nestle is the world's best Nutrition, Health and Wellness company. Our work of
"good food, good life" is to offer customers with the top tasting, most nutritious
choices in a wide variety of food and drink categories and eating occasion, beginning
morning to night. The members working in the Organisation are concerned about
developing the high standards in the market. They basically focus on making sure that
their products are best to use. Nestlé has the one of the largest R&D networks of any
food company.Headquartered in Vevey, Switzerland, Nestlé is one of the world’s
largest food and nutrition Company. Nestlé now operates 115 countries and has
around 280,000 employees worldwide. Nestlé produces a different range of product
categories from baby foods, bottled water, chocolate, coffee, dairy to healthcare and
sports nutrition. Well‐known product brands owned by Nestlé include NesCafé, Kit
Kat, Milk products and ice cream represent around one ‐fifth of the company's total
turnover in 2009. According to the company's 2009 report, the operations, offices and
manufacturing sites of Nestlé are present in 115 countries around the world and
Nestlé has 449 factories in 83 countries of which Nestle Headoffice is situated at
Gurgaon, Haryana in India.

Through engaging in various partnerships with organisations that range from business
enterprises to development boards, Nestlé is developing its business globally as well
as establishing a favourable image.Nestle’s performance in the past years gives and
idea about ther effective business strategies and unique strenghts. Despite of this
prestige status Nestle is face a number of challenges and has also undergone many
controversiesnin past and also in present (Maggi). Nestle’s follows various marketing
strategies, promotional strategies which directly or indirectly promotes products in the
market and also gains consumer prferences towards their products to some extent in
chocolates and confectioneries i.e. KitKat & milk and milk products i.e. Milkmaid,
much extent in prepared food dishes and cooking aids i.e. Maggi, & beverages i.e.
Nescafe.The advertising strategies of Nestle is attractive to much extent to the
customers & potential customers. The positioning strategies of Nestle is good as
Nestle products are easily available, affordable to the customers.The company values
research and development and perceives it as a key competitive advantage for the
company.

9
 CHAPTER 1 INTRODUCTION TO NESTLE

1.1 INTRODUCTION

The Nestlé company was founded by a German political refugee, Henri Nestlé, who
in the 1860s developed a way of combining flour with milk for babies whose mothers
were unable to breastfeed them. Maggi (now part of Nestlé) was launched in the
1880s, when miller Julius Maggi - the son of an Italian immigrant father - working
with factory inspector Fridolin Schuler, developed nutritious instant soups, using peas,
beans and lentils.

NESTLÉ's relationship with India was since 1912, when it began trading as The
NESTLÉ Anglo-Swiss Condensed Milk Company (Export) Limited, importing and
selling finished products in the Indian market. After India's independence in 1947, the
economic policies of the Indian Government stressed the need for local production.
NESTLÉ responded to India's hop and ambition of achieving local production 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, advise
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 centres that would not only ensure prompt collection
and pay fair prices, but also instil 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.

10
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. The culture of innovation and
renovation within the Company and access to the NESTLÉ Group's proprietary
technology/Brands expertise and the extensive centralized Research and Development
facilities gives it a distinct advantage in these efforts. It helps the Company to create
value that can be sustained over the long term by offering consumers a wide variety of
high quality, safe food products at affordable prices.

NESTLÉ India manufactures products of truly international quality under

internationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR, KIT
KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has
also introduced products of daily consumption and use such as NESTLÉ Milk,
NESTLÉ SLIM Milk, NESTLÉ Dahi and NESTLÉ Jeera Raita.

NESTLÉ India is a responsible organisation and facilitates initiatives that help to

improve the quality of life in the communities where it operates.

11
1.2 HISTORY

Nestlé's products include baby food (some including human milk

oligosaccharides), medical food, bottled water, breakfast cereals, coffee and tea,
confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. Twenty-
nine of Nestlé's brands have annual sales of over 1 billion CHF (about US$1.1 billion),
[11] including Nespresso, Nescafé, Kit Kat, Smarties, Nesquik, Stouffer's, Vittel,
and Maggi. Nestlé has 447 factories, operates in 189 countries, and employs around
339,000 people.[12] It is one of the main shareholders of L'Oreal, the world's largest
cosmetics company.[13]

Nestlé was formed in 1905 by the merger of the "Anglo-Swiss Milk Company",
established in 1866 by brothers George and Charles Page, and "Farine Lactée Henri
Nestlé", founded in 1867 by Henri Nestlé.[14] The company grew significantly during
the First World War and again following the Second World War, expanding its
offerings beyond its early condensed milk and infant formula products. The company
has made a number of corporate acquisitions, including Crosse & Blackwell in
1950, Findus in 1963, Libby's in 1971, Rowntree Mackintosh in 1988, Klim in 1998,
and Gerber in 2007.

The company has been associated with various controversies, facing criticism
and boycotts over its marketing of baby formula as an alternative to breastfeeding in
developing countries (where clean water may be scarce), its reliance on child labour
in cocoa production, and its production and promotion of bottled water.

12
2.1 LOGO

The Nestlé logo is undoubtedly one of the most memorable and well-recognized food
logos ever created. Despite being changed several times, the logo still retains a sense
of authority and modernity with an up-to-date feel.

Shape of the Nestlé Logo:

The earliest Nestlé logo was introduced by Henri Nestlé in 1868, based on the
meaning of his name in German, i.e. little nest, as an artistic conceptualization of his
family emblem. Henri secured a 15-year French patent for this design the same year.
Following his retirement, the logo was registered in Vevey in 1875 by the new owners
of the Nestlé S.A. Company.

Later in 1938, the “Nestlé” name was introduced to the traditional nest design, giving
rise to the “combined mark”. However, in 1966, the design was simplified once again,
with a few minor graphic tweaks to the nest as well as the typeface.

In 1988, the worm in the beak of the mother bird was taken out while an extra
fledgling was also added. Such changes were intended to put an emphasis on the
activities of the company, which was broadening its horizons to
include diversified products, while reflecting the modern family with two children.

The current Nestlé logo has been recently simplified, and the tree is supposed to
symbolize an oak and the birds’ thrushes.

Colour of the Nestlé Logo:

The blue colour in the Nestlé logo represents prosperity, purity, care and goodness.

Font of the Nestlé Logo:

The custom typeface used in the Nestlé logo has been derived from Helvetica.

13
 CHAPTER 3 COMPANY PROFILE

3.1 VISSION & MISSION

VISION

People understand that food is a source of nourishment and satisfaction, but also
pleasure, health, happiness and peace of mind. They are
increasingly aware that their food and beverage choices can
impact their quality of life and affect the lives of others.
Innovation has been at the heart of Nestlé’s company since its
beginning. Ever since Henri Nestlé invented Farine Lactée to
alleviate infant mortality, they have been dedicated to
enhance people’s lives.Each day they strive to make their
products tastier and healthier choices that help consumers
care for themselves and their families. This would not be
possible without Nestlé’s unmatched R&D capability,
nutrition science and passion for quality in everything they
do.Nestle has the largest R&D network of any food company in the world, with 34
R&D facilities (3 Science & Research centres and 31 Product Technology Centres
and R&D centres worldwide), and over 5,000 people involved in R&D.
Behind every one of Nestlé’s products there is a team of scientists, engineers,
nutritionists, designers, regulatory specialists and consumer care representatives
dedicated to earn their consumers’ trust with safe products of the highest quality: at
Nestlé, safety and quality are non-negotiable.
Whether it is in terms of convenience, health or pleasure, they are able and committed
to create trustworthy products, systems and services that contribute to improving the
quality of consumers’ lives.

MISSION
“Nestlé is the world's leading nutrition, health and wellness company. Our mission of
"Good Food, Good Life" is to provide consumers with the best tasting, most nutritious
choices in a wide range of food and beverage categories and eating occasions, from
morning to night.”

14
3.2 PRODUCT MIX
Nestlé has 64 brands, with a wide range of products across a number of markets,
including coffee, bottled water, milkshakes and other beverages, breakfast
cereals, infant foods, performance and health care nutrition, seasonings, soups &
sauces, frozen & refrigerated foods, & pet foods.

PRODUCT CLASSIFICATION

MILK PRODUCTS

NESTLE EVERYDAY DAIRY WHITENER:

NESTLE EVERYDAY is the No.1 selling dairy whitener in INDIA. It’s no wonder
then, that in blind taste tests consumes ranked tea made with NESTLE EVERYDAY
as their No.1 choice for a perfect cup of tea.

NESTLÉ ACTIPLUS Probiotic Dahi:

NESTLE ACTIPLUS DAHI is a deliciously thick ‘n’ tasty low fat DAHI enriched
with the goodness of more than 100 CRORE special PROBIOTICS in every serving
(100g), which work hard everyday to ensure your digestive system is strong and
healthy.

NESTLÉ MILKMAID:

A Partly Skimmed Sweetened Condensed Milk, NESTLE MILKMAID is a versatile

product and excellent as a dessert ingredient. With MILKMAID, you can whip up lip-
smacking desserts for your family in the shortest possible time.

NESTLÉ EVERYDAY Ghee:

NESTLE EVERYDAY Ghee is 100% pure Clarified Butter hygienically packed to

preserve its rich aroma and granular texture. As a cooking medium, NESTLÉ

15
EVERYDAY Ghee helps you add that authentic ethnic aroma and flavour to Indian
preparations every time, everyday.

NESTLE Bhuna Jeera Raita:

NESTLE Bhuna Jeera Raita is a unique proprietary product from Nestle, currently
available in Delhi NCR. It offers all the innate goodness of Dahi with real Jeera – a
delicious meal accompaniment which tastes exactly like home-made Raita. It aids in
digestion and is low in Fat (only 1.5% fat).

NESTLE Masala Buttermilk and Sweet Lassi:

NESTLE Masala Buttermilk and NESTLE Sweet Lassi NESTLE Masala Buttermilk
has the goodness of Ayurvedic ingredients like Jeera, Kala Namak, Mint and
Ginger NESTLÉ Sweet Lassi is a tasty and refreshing drink with approximately 99
Kcal per pack.\

16
3.3 MARKETING MIX

The Marketing mix is a set of four decisions which needs to be taken before launching
any new product. These variables are also known as the 4 P’s of marketing. These
four variables help the firm in making strategic decisions necessary for the smooth
running of any product/organization. These variables are as follows:

1. Product
2. Price
3. Place
4. Promotions

Marketing mix is mainly of two types:

PRODUCT MARKETING MIX

Comprised of Product, Price, Place and Promotions. This marketing mix is mainly
used in case of Tangible goods.

SERVICE MARKETING MIX

The service marketing mix has three further variables included which are people,
physical evidence and process. They are discussed in detail in the article on service
marketing mix.

17
 PRODUCT MARKETING MIX OF NESTLE

The Marketing mix of Nestle discusses the 4P’s of one of the strong
FMCG companies of the world. The Nestle marketing mix shows Nestle
has a strong product line which boosts its marketing mix. Below are the
products, price, placement and promotions of Nestle.

PRODUCTS

There are 4 different strategic business units within Nestle which are used to manage
various food products.

 Beverages
One of the most known coffee brands Nescafe, belongs to the house of Nestle and is
one of the cash cows for Nestle. However, it is not the biggest cash cow. Nestle has a
worldwide distribution and has many different variants. Looking at India, Nestle has
also launched Nestea.

 Milk and Milk products

Nestle everyday, Nestle slim and Nestle Milk maid are some of the milk and milk
based products from the house of Nestle.

 Prepared dishes and cooking aides

Nestle has a third category of products which comes into prepared dishes and cooking
aides. The major cash cow of Nestle lies in this segment, which is Maggi Noodles.
Probably one of the most widely sold ready to cook noodle brands is Maggi. Maggi
has a fantastic taste and quality. Thus, it was not a surprise, that Nestle expanded the
Maggi brand to create an umbrella of different products like Maggi pasta, Maggi
sauce, Maggi cubes etc. The Maggi range contributes vastly to the bottom line of
Nestle.

18
  Chocolates
Nestle has some popular chocolate products, most popular being Nestle KitKat,
Munch, Milky bar, Éclairs and Polo. The newly introduced Alpino is targeting the
gifting segment in response to various chocolates like Dairy milk and Bourneville by
Cadbury. The chocolates segment of Nestle is a star, where the competition is high
and the expense is high but at the same time the market size is huge as well.

As we can see, two major brands of Nestle are a very high contributor to its Brand
equity – Nescafe and Maggi. These are two brands sold across India in small as well
as big shops and super markets. There have been many competitors for these products,
like Bru for Nescafe and Top ramen and Sun feast Yippee against Maggi.

The appreciable factor in Nestle is that quality maintenance of products is up to mark

and there are hardly any complaints about Nestles products in the market. This is a
major achievement for a company which relies majorly on food product

PRICING STRATEGY

The price is dependent on the market of each individual products. For example,
Nescafe and Maggi being the clear leaders are priced with higher margins for the
company as compared to competition. This is because the product quality is good
enough and a bit of skimming price will not cause the customer to switch brands.
The strength of pricing for Nestle comes from its packaging or consumption based
pricing. For Nescafe as well as Maggi, Nestle offers a lot of sizes and package options.
In supermarkets, you can even find a 16 packet Maggi whereas in small retail shops,
you can find 5Rs Maggi.
Thus, with the variety available, customer can make his own choice based on his
consumption. In other products like KitKat and Munch, due to tough competition
from other companies, Nestle offers competitive pricing. You will find that nestle will
be similar priced to many of Cadbury’s Products in the chocolate segment.

19
 PLACE/DISTRIBUTION STRATEGY

Nestle follows the FMCG strategy of distribution which involves breaking the bulk.
The typical distribution strategy of Nestle is as follows.

Manufacturing >> C & F agent >> Distributors >> Retailers >> Consumer
Manufacturing >> Bulk buyers >> Consumer

These are the two different forms of distribution which Nestle has. It is typical of any
FMCG company. However, the Nestle channel is known to be strong with a good
marketing and sales network for channel distribution.
On top of it, Nestle regularly introduces trade discounts and various tactics to keep the
channel motivated. The major challenge is in the distribution of Maggi which is the
most in-demand product along with Nescafe. Due to these two products, Nestle is able
to drive other products in the market as well. Thus, on purchase of one weak product,
the distributor might get a discount on the stronger product or vice versa.
The challenge for Nestle is in the chocolate segment where it faces stiff competition
from Cadbury and hence selling the chocolates becomes difficult. Kitkat might have
its own brand positioning, but it is not better than Dairy milk. Thus, converting
retailers to sell Nestle instead of Cadbury is the toughest task for Nestle. This is
converted mainly through promotions.

20
PROMOTIONAL STRATEGY
One of the most widely known tunes is the Nescafe tune. It was one of the best
advertising campaigns and was launched at least 2 decades back. However, that
campaign brought Nescafe strongly in the market.
On the other hand, Nestlé’s brand was pushed by the excellent product quality of
Maggi and the witty and innovative campaigns of Maggi. Where Nescafe focuses on
value and the good things in life, Maggi focuses on moments you had with your
Maggi. The recent campaign was completely focused on your Maggi story, where
people had to come out with various innovative ways that they had their Maggi.
Promotions for other products too is done smartly. Kitkat focuses on “Take a break”
and has done some good innovative and shows nothing but asks the visitor to take
a break and have a Kitkat. The major push expected of a FMCG company is in sales
promotions at the ground level. This is where Nestle really rocks. Nestle focuses on its
strength which is Maggi, Nescafe and Kitkat which are the most promoted brands in
the market on ground level.
Besides this, Nestle regularly uses TVC’s and ATL marketing. It is also present
online through some smart creative. Overall, Nestle is a brand which has strong
products as well as strong marketing, and hence the brand has a very high brand
recall value. We hope that Nestle keeps bringing in good products and keeps
maintaining the quality of the products it already has marketing for the same.
Kitkats website too is very.

21
 BEVERAGES:
MARKETING MIX OF NESCAFE

PRODUCTS OF NESCAFE

Nestle is the parent company of Nescafe and it is one of the most successful
companies in the world and is well known for offering a variety of products, one of
them being Nescafe. Nescafe has developed a lot over the years and is touted as the
market leader in the instant coffee industry.

The history of Nescafe can be traced as far back as 1930 when its coffee specialist
Max Mergenthaler and his team were asked to produce high quality coffee that could
be prepared by simply adding hot water, yet retain its natural aroma. It then took
nearly 8 years of research in their Swiss laboratories until they finally managed to get
the solution in 1938. The final product was called Nescafe, a portmanteau of the
names Nestle and Café. However, the instant coffee did not become an instant success
in Europe due to World War II. It was immediately exported to other countries like
Great Britain, France and the U States and its fame spread further to Europe. By
1950’s people was flocking coffee shops for the product.

Later in 1965, Nescafe introduced its Gold Blend version which was a huge
improvement on the original Nescafe which used carbon-dioxide as a preservative.
The Gold Blend brand was made of freeze-dried soluble coffee granules. And in the
1960, another brand called Taster’s choice was unveiled. Over the years, the company
has produced a number of brands under the umbrella name, Nescafe. The following is
the full list of the brands
.S.A. It later on became a huge success in the United

22
 Nescafé Original
 Nescafé Classic
 Nescafé Gold Blend Half Caff
 Nescafé Gold Blend Decaf
 Nescafé Alta Rica Decaff
 Nescafe Blend 43
 Nescafé Blend 37
 Nescafé Black Gold
 Nescafé Classico
 Nescafé Decaff
 Nescafé Half Caff
 Café Parisien
 Nescafé Gold Blend
 Nescafé Suraya
 Nescafé Alta Rica
 Nescafé Espresso
 Nescafé Fine Blend
 Nescafé Partners Blend

23
 PROMOTIONAL STRATEGIES OF NESCAFE
Nestle has used a number of advertising strategies throughout the years to make the
product Nescafe appealing. In particular, it has used persuasive advertising, with an
emotional aspect, to make it an instant success. Nestle runs a number of
advertisements and TV commercials focused towards making it a household
premium brand. Another powerful tool is the widely known ‘Nescafe tune’ which
is one of the best advertising campaigns which was launched about 20 years ago.
The continuous advertising with smart promotions has given Nescafe a strong
position in the instant coffee industry. Nescafe also focuses on producing high quality
products and experiments with a lot of variants. It recently introduced the Nestea
which was instant tea, looking at the potential consumption of tea loving customers.
Moreover, Nestle also uses its other powerful products like Maggi and KitKat to
strongly push for a higher market share. In India, Nescafe has signed on Deepika
Padukone as the brand ambassador and has introduced many ads including Purab
Kohli and Karan Johar to push the Nescafe coffee brand.

A significant portion of Nescafe’s promotion strategy involves the use of

 Advertising Campaigns
 Newspapers
 Internet
 Television
 Public relation activity
Another promotion strategy is excellent branding that is used to build high brand value for end customers. Besides
some packaging and product changes, Nescafé logotype has always remained the same since it’s origin.

24
 PRICING STRATEGIES OF NESCAFE
Nestle has adopted the strategy of non-price competition. It ensures that traders don’t
take advantage and hike prices by maintaining uniform pricing for all its products,
including Nescafé. It offers generous discounts to its distributors. Different Nescafé
brands come with different prices depending on how they are made. Nescafe has
estimated other cost factors such as labor and considered mass production in order to
reduce the price and make it more affordable in India. However, being one of the
premium brands it enjoys a high stature and acceptability at a relatively high cost than
its nearest competitors.

25
 PLACE/DISTRIBUTION STRATEGIES OF NESCAFE

Nestle company follows the FMCG strategy of distribution. This is quite effective
because it involves breaking the bulk in a typical distribution channel. The two
channels are

 Manufacturing-C&F agent-Distributors-Retailers
 Manufacturing- Consumers Bulk buyers-

Actually, the above distribution channels are typical of any FMCG company.
However, Nestle enjoys a stronger distribution network and sales network than most
because of the pull from the market. In order to encourage sales, Nestle frequently
offers bulk buyers trade discounts to keep the sales high. The company also uses two
other famous products (Maggi and KitKat) to boost sales. For instance, when a
merchant purchases one product, he/she might get a discount for purchasing an
additional product. The only challenge for Nescafe is that it faces competition from
other chocolate companies like BRU and Cadbury.

26
 PREPARED DISHES & COOKING AIDS

MARKETING MIX OF MAGGI NOODLES

PRODUCTS OF MAGGI NOODLES
Maggi has introduced numerous products in the market according to the needs
and tastes of its consumers. The brand has been known for its noodles, wuze, bouillon
cubes, instant soups, stocks, sauces, ketchups and seasonings. The products that have
surpassed the expectations of the people and have become a hit in the minds of the
consumer’s are-

 Maggi 2 Minute Noodles- The flagship product in the Maggi umbrella brand, this
product is available in five flavours that are Tricky Tomato, Chicken, Masala,
Romantic Capsica and Thrillian Curry.

 Maggi Vegetable Multigrainz Noodles is a product that has Fibre, Calcium, protein
and added vegetables.
 Maggi Vegetable Atta Noodles is made from wheat flour that has fibre content and
added vegetables.
 Maggi Cuppa Mania is available in an easy cup format with two variants Chilly Chow
Yo and Masala Yo.
 Maggi Oats Noodles is an innovative, healthy and delicious dish that is made from
Wholegrain Oats.
 Maggi Sauces
 Maggi Pichkoo
 Maggi Pazzta
 Maggi Healthy Soups
 Maggi Magic Cubes
 Maggi Coconut Milk Powder
 Maggi Masala -ae- Magic
 Maggi Bhuna Masala
 Maggi Pasta and Pizza Sauce

27
PLACE/DISTRIBUTION STRATEGIES OF MAGGI
Maggi has followed the distribution channel of Nestle to Distributor to Retailer
to Consumer, as a chain system is helpful in proper distribution of the product.

 Nestle- The Company has decentralized the process of manufacturing where

every plant is responsible for its own production. It follows a twofold path for
distribution. In the first, the product is available to every local store and the
second where the stock is available for every malls and shopping centres.

 Distributors- The Company offers its distributors a clear-cut margin of 6%. In

this scheme, the distributor makes advance payment to the company but
supplies the product on credit to the retailers.

 Retailer- The retailer in turn gets a 15% margin on promotional products and
10% margin on normal products.

The key ingredient in the Marketing mix of Maggi has been its distribution. It
is one thing to have a successful product in your hand, it is a completely
different ball game to ensure time and time again that this top of the line
product reaches the nooks and corners of the world. Even if you go in the
Himalayas, you will find Maggi selling there at select places. Isn’t that
something!! This single factor – distribution, has been the backbone for the
success of the product.

28
 PRICING STRATEGIES OF MAGGI
Maggi has a penetration pricing strategy because it knows it has to penetrate
the market the world over. There are many indirect competitors to Maggi as
well. Maggi has a very clear-cut policy regarding its prices.

 From its initial years it has kept low pricing policy because, its
consumers mostly belong to the average middle class group.

 To make the product affordable they had to tone down their prices but
the volumes the product generates has helped the company in
maintaining a healthy profit. Therefore, the prices have always been
kept normal without any dramatic In order to keep with the changing
economic times Maggi has reduced the quantity, instead of the prices.

 Along with this, to cater to the middle and low income class customers,
Maggi offers different sizes of packets at various prices so that the
customer can buy as per budget.

 Considering the price points in the market for Maggi, it should continue to
position itself in the “snack” category itself, since few would be willing to
accept it as a meal.

 The company is taking no chances and is extending its distribution reach to

smaller towns and cities. Maggi happens to be Nestlé’s most widely
distributed brand in the country. Through independent channels, it reaches
those villages where the company has no presence, according to Hedge. This
is also the time that Maggi’s value-for—money pack priced at Rs5 is expected
to come handy. The regular pack comes for Rs10.

 Affordable by all income groups.

 changes.
29
 PROMOTIONAL STRATEGIES OF MAGGI
When the parent company Nestle decided to launch Maggi in India, its
promotional activities included creating awareness amongst the females and
kids.

 Toys and utensils were offered as gifts along with packets of Noodles.
This turned out to be a huge booster for the brand and made it an instant
household name.

 Maggi advertised on kid’s channels and between main programs in the

television. Its tagline “2 minute noodles” is known to be the smartest
tagline in the advertising industry and is still very famous amongst the
consumers.

 Till date, no one has been able to cook a Maggi in 2 minutes J but still,
people love the product for the quick way they can get an excellent
snack.

 Maggi has also announced many offers and schemes over the years to
attract its consumers like Fun books, free Maggi products, scratch and
win coupons, discounts and money back offer.

 In an exciting commercial for Maggi Oats Noodles, a consumer can see

the famous Bollywood actors commending the product to the viewers.
The convincing advertisement has proved to be a hit with the audiences
taking the company to new heights.

 In all its campaigns, since the year 1982, the product has been advertised
as “2 minute noodles”. The famous actor Amitabh Bachchan is also
seen in the promotional activities of Maggi.

30
 You can see Maggi advertising heavily when it brings a new product in
the market. But time to time, it also advertises for product recall.

For example, the Maggi masala for ready made food is advertised time
to time to keep the hand, the 2 minute noodles are advertised heavily
when there is a new variant such as Oats noodles or Aata noodles.

 The major cash cow of Nestle lies in this segment, which is Maggi Noodles.
Probably one of the most widely sold ready to cook noodle brands is Maggi.
Maggi has a fantastic taste and quality.

 Thus, it was not a surprise, that Nestle expanded the Maggi brand to create an
umbrella of different products like Maggi pasta, Maggi sauce, Maggi cubes etc.
The Maggi range contributes vastly to the bottom line of Nestle.

31
3.4 PRODUCT LIFE CYCLE

The product life cycle has 4 very clearly defined stages, each with its own
characteristics that mean different things for business that are trying to manage the
life cycle of their particular products.

PRODUCT LIFE CYCLE OF MAGGI

INTRODUCTORY STAGE OF MAGGI

Nestle launched Maggi in India in the year 1982 with its 2 minutes instant noodles.
When Nestle launched this product there were a lot of ups and downs, with high
failure rates. Maggi, then had no competition and incurred high production cost. A lot
of research was also done in this stage which caused frequent modifications.

32
GROWTH STAGE OF MAGGI

Around 1985, the demand for Maggi had increased tremendously in India. The entire
development cost was recovered and moreover its sale rates had also increased. In
1990 the demand for Maggi had dropped a little because of an introduction of a new
brand named Top Ramen. So in order to increase its sales Nestle formulated a new
flavour which wasn’t well accepted by its consumers. Thus in 1999, Nestle re-
launched the flavour of Maggi, which in turn increased its sales.

MATURITY STAGE OF MAGGI

During its maturity stage, Maggi’s sales were at peak, production costs were low and
profits were high.

DECLINE STAGE OF MAGGI

As we all know that Maggi is now banned in India due to its high lead content. Thus it
is going through its decline stage now. Nestle is conducting a lot of research and if
they come up with something new and better, then Maggi might be selling its
products in future, or else after the declining stage, this brand would become history
in India.

33
3.5 SWOT ANAYLISIS

STRENGHT

Nestle has a global reach, with presence in more than 100 countries. They gained this
advantage through decentralization, as every branch in their respective countries are
responsible in running the business efficiently. The extent of their decentralization
includes autonomy in the hiring of staff and varied product ranges to suit different
cultural tastes. Additionally, they also have a medium-length supply chain, with 3-4
intermediaries to ensure that their products cover different regions efficiently. To
ensure maximum effectiveness, Nestle also implements standardization in criteria for
selection, terms of operations and incentives in their distribution (Nadar, 2013)

WEAKNESS:

 Implementation of CSR

Although Nestle has implemented eco-friendly packaging and improved on nutritional

values on their current products (as stated above), they still gain criticism for their
weak implementation of CSR. The company has repeatedly been at human rights risk

34
in the areas of labour practices (Rossman, 2013), food safety and the environment
(Eccleston, 2008). Some examples of these issues include mass firing of union
workers, presence of child labour in the Ivory Coast and for involvement in the Palm
Oil industry which has caused the deforestation of Borneo (CSR News, 2010). In
facing most of these CSR issues Nestle usually responds by feedback control, where
the issues are handled when it is too late. Thus their CSR issues has been made known
to the public, which leads to conflict with external stakeholders such as pressure
groups and customers who lose faith in the brand or boycott Nestle products.

OPPORTUNITIES

 Acquisitions and Mergers

Nestle also has the advantage of having a large amount of money (Nestle.com, 2014)
and brand recognition at their disposal, which gives them the opportunity of acquiring
startups. One significant focus point they can focus on is expanding their product
portfolio, which still lacks significant health based products. By acquiring new
startups that creates products for well-being, they are able to accomplish this easily
and with minimal monetary cost. Additionally, they can be involved in partnerships
with other multinationals such as the Coca Cola Company to create new products as
well.

THREATS

 Rising Raw Food Prices

Due to an increase in global population and stronger economies, prices of raw foods
produced in developing countries will increase. This will be a problem that Nestle has
to consider in the long-term as their cost of production will increase. Nestle will be
forced to consider either increasing the prices of their products as well, or keeping
them the same. Increasing their prices may lead to a lower demand while maintaining
it will reduce their profit margins.

35
3.6 CONSUMER PREFERENCES

MEANING OF CONSUMER PREFERENCES

Consumer preferences are becoming increasingly known through online sources,

according to Maritz. Younger people expect companies to communicate online
through forums and social media. Companies also attempt to listen to consumers'
needs through online sources as well. Young consumers between 18 and 24 prefer
generic online messages rather than private communications through email.

Consumer preference is a general term applied to all facets of marketing products and
services. This is not to be confused with the more-specific term brand preference,
which relates to consumers preferring one brand over competing brands. If one brand
is unavailable, consumers will likely choose another brand to fill the gap.

A revealed preference is also a subset of consumer preferences in that companies

determine consumption behaviour based upon sales numbers. The theory is that
companies can change strategies if consumers buy one product over another. The
revealed preference theory was first promulgated in 1938.

There are 4 main types of factors influencing consumer behaviour:

Cultural factors

Culture is crucial when it comes to understanding the needs and behaviors of an

individual.

Throughout his existence, an individual will be influenced by his family, his friends,
his cultural environment or society that will “teach” him values, preferences as well as
common behaviors to their own culture.

For a brand, it is important to understand and take into account the cultural factors
inherent to each market or to each situation in order to adapt its product and its
marketing strategy. As these will play a role in the perception, habits, behavior or
expectations of consumers.

36
Sub-cultures

A society is composed of several sub-cultures in which people can identify.

Subcultures are groups of people who share the same values based on a common
experience or a similar lifestyle in general.

Subcultures are the nationalities, religions, ethnic groups, age groups, gender of the
individual, etc..
The subcultures are often considered by the brands for the segmentation of a market
in order to adapt a product or a communication strategy to the values or the
specific needs of this segment.

Social classes

Social classes are defined as groups more or less homogenous and ranked against
each other according to a form of social hierarchy. Even if it’s very large groups, we
usually find similar values , lifestyles, interests and behaviors in individuals
belonging to the same social class.

We often assume three general categories among social classes : lower class, middle
class and upper class.

People from different social classes tend to have different desires and consumption
patterns. Disparities resulting from the difference in their purchasing power, but not
only. According to some researchers, behavior and buying habits would also be a way
of identification and belonging to its social class.

Beyond a common foundation to the whole population and taking into account that
many counterexample naturally exist, they usually do not always buy the same
products, do not choose the same kind of vacation, do not always watch the same TV
shows, do not always read the same magazines, do not have the same hobbies and do
not always go in the same types of retailers and stores.

37
Cultural trends

Cultural trends or “Bandwagon effect” are defined as trends widely followed by

people and which are amplified by their mere popularity and by conformity or
compliance with social pressure. The more people follow a trend, the more others will
want to follow it.

They affect behavior and shopping habits of consumers and may be related to the
release of new products or become a source of innovation for brands.

By social pressure, desire to conformity or belonging to a group, desire to “follow

fashion trends” or simply due to the high visibility provided by media, consumers will
be influenced, consciously or unconsciously, by these trends

38
Social factors

Social factors are among the factors influencing consumer behavior significantly.
They fall into three categories: reference groups, family and social roles and status.

Reference groups and membership groups

The membership groups of an individual are social groups to which he belongs

and which will influence him. The membership groups are usually related to its social
origin, age, place of residence, work, hobbies, leisure, etc..

The influence level may vary depending on individuals and groups. But is generally
observed common consumption trends among the members of a same group.

The understanding of the specific features (mindset, values , lifestyle, etc..) of

each group allows brands to better target their advertising message.

More generally, reference groups are defined as those that provide to the individual
some points of comparison more or less direct about his behavior, lifestyle, desires or
consumer habits. They influence the image that the individual has of himself as well
as his behavior. Whether it is a membership group or a non-membership group.

Family

The family is maybe the most influencing factor for an individual. It forms an
environment of socialization in which an individual will evolve, shape his personality,
acquire values. But also develop attitudes and opinions on various subjects such as
politics, society, social relations or himself and his desires.

But also on his consumer habits, his perception of brands and the products he buys.

We all kept, for many of us and for some products and brands, the same buying habits
and consumption patterns that the ones we had known in our family.

Perceptions and family habits generally have a strong influence on the consumer
buying behaviour. People will tend to keep the same as those acquired with their
families.

Social roles and status

The position of an individual within his family, his work, his country club, his group
of friends, etc.. – All this can be defined in terms of role and social status.
39
A social role is a set of attitudes and activities that an individual is supposed to have
and do according to his profession and his position at work, his position in the family,
his gender, etc.. – and expectations of the people around him.

Social status meanwhile reflects the rank and the importance of this role in society or
in social groups. Some are more valued than others.

The social role and status profoundly influences the consumer behavior and his
purchasing decisions. Especially for all the “visible” products from other people.

Personal factors

Decisions and buying behavior are obviously also influenced by the characteristics of
each consumer.

Age and way of life

A consumer does not buy the same products or services at 20 or 70 years. His lifestyle,
values environment, activities, hobbies and consumer habits evolve throughout his life.

Purchasing power and revenue

The purchasing power of an individual will have, of course, a decisive influence on

his behavior and purchasing decisions based on his income and his capital.

This obviously affects what he can afford, his perspective on money and the level of
importance of price in his purchasing decisions. But it also plays a role in the kind of
retailers where he goes or the kind of brands he buys.

As for social status, some consumers may also look for the “social value” of products
they buy in order to show “external indications” of their incomes and their level of
purchasing power..

Lifestyle

The lifestyle of an individual includes all of its activities, interests, values and
opinions.

The lifestyle of a consumer will influence on his behavior and purchasing decisions.
For example, a consumer with a healthy and balanced lifestyle will prefer to eat
organic products and go to specific grocery stores, will do some jogging regularly
(and therefore will buy shoes, clothes and specific products), etc..
40
Personality and self-concept

Personality is the set of traits and specific characteristics of each individual. It is the
product of the interaction of psychological and physiological characteristics of the
individual and results in constant behaviors.

It materializes into some traits such as confidence, sociability, autonomy, charisma,

ambition, openness to others, shyness, curiosity, adaptability, etc..

While the self-concept is the image that the individual has – or would like to have – of
him and he conveys to his entourage. These two concepts greatly influence the
individual in his choices and his way of being in everyday life. And therefore also his
shopping behavior and purchasing habits as consumer.

In order to attract more customers, many brands are trying to develop an image and a
personality that conveys the traits and values - real or desired – of consumers
they are targeting.

Psychological factors

Among the factors factors influencing consumer behavior, psychological factors can
be divided into 4 categories: motivation, perception, learning as well as beliefs and
attitudes.

Motivation

Motivation is what will drive consumers to develop a purchasing behavior. It is the

expression of a need is which became pressing enough to lead the consumer to want
to satisfy it. It is usually working at a subconscious level and is often difficult to
measure.

To increase sales and encourage consumers to purchase, brands should try to create,
make conscious or reinforce a need in the consumer’s mind so that he develops a
purchase motivation. He will be much more interested in considering and buy their
products.

They must also, according to research, the type of product they sell and the consumers
they target, pick out the motivation and the need to which their product respond in
order to make them appear as the solution to the consumers’ need.

41
Perception

Perception is the process through which an individual selects, organizes and interprets
the information he receives in order to do something that makes sense. The perception
of a situation at a given time may decide if and how the person will act.

Depending to his experiences, beliefs and personal characteristics, an individual will

have a different perception from another.

Each person faces every day tens of thousands of sensory stimuli (visual, auditory,
kinesthetic, olfactory and gustatory). It would be impossible for the brain to process
all consciously. That is why it focuses only on some of them.

Learning

Learning is through action Beliefs and attitudes

. When we act, we learn. It implies a change in the behaviour resulting from the
experience. The learning changes the behaviour of an individual as he acquires
information and experience.

A belief is a conviction that an individual has on something. Through the experience

he acquires, his learning and his external influences (family, friends, etc..), he will
develop beliefs that will influence his buying behaviour.

While an attitude can be defined as a feeling, an assessment of an object or idea and

the predisposition to act in a certain way toward that object. Attitudes allow the
individual to develop a coherent behaviour against a class of similar objects or ideas.

Beliefs as well as attitudes are generally well-anchored in the individual’s mind and
are difficult to change. For many people, their beliefs and attitudes are part of their
personality and of who they are.

42
 CHAPTE 1 REVIEW OF LITERATURE

Chocolate! Chocolate is liked and eaten by all age group of people. It may be in a form of hard, nutties,
crunchy or chew. It is available in small, big and family pack. Chocolate has many shapes like as
rectangle, sphere or a brick shape. It tastes like sweet and bitter. Some people have chocolate in a glass of
cold coffee, or in the form of a toffee. Some people eat chocolate when they are sad; some relish them
when they are happy. But I feel, to have chocolates we don't need a reason, because we can have it
anytime, any season! By Dr. Shengde

Nestlé: A Brief History of the Marketing Strategies of the First Multinational Company in the Ottoman
Empire This article investigates—via a brief historical survey of the marketing activities of Nestlé in the
Ottoman Empire between the years 1870 and 1921—the interaction between Western firms and
consumers. The article explores how Nestlé gained access to the urban Ottoman market and the methods
it used for attracting the Ottoman consumer. Nestlé’s sales efforts show that it had to adjust its strategies
to local realities through a process of learning, adapting, and using the specific characteristics of its host
society to be successful. Nestlé: A Brief History of the Marketing Strategies of the First Multinational
Company in the Ottoman Empire.

Yavuz Kose Marketing plays a key role in the company’s strategic planning process. Customer’s needs
are the core focus of strategy. That does not mean overall strategy or marketing strategy are set up by
marketing department only. In today’s companies plans are developed by teams, with inputs and sign off
from every important function. In most large companies strategic plans are made at four level: corporate
level; division level; business level and product level. Philip Kotle

43
 OBJECTIVES OF THE PROJECT

To identify the product offerings by Nestle Company.

To study the promotional strategies adopted by Nestle Company for Food Dishes
( Maggi ), Milk products (Milkmaid), Chocolates (Kit Kat) & Beverages (Nescafe).

To study & analyse the positioning Strategies of Nestle in different market segments.

To analyse the influences on consumer preferences for the brand.

44
CHAPTER 4 RESEARCH METHODOLGY

 MEANING OF RESEARCH

The systematic investigation into and study of materials and sources in order to
establish facts and reach new conclusions.
MEANING OF RESEARCH METHODOLOGY It is the systematic, theoretical
analysis of methods applied to a field of study. It comprises the theoretical analysis of
the body of methods and principles associated with a branch of knowledge.

 MEANING OF RESEARCH DESIGN

Research design is important primarily because of the increased complexity in the

market as well as marketing approaches available to the researchers. It is important
tool to study buyer’s behaviour, consumption patter, brand loyalty, and focus market
changes. A research design specifies the methods and procedures for conducting a
particular study. According to Kerlinger, “Research design is a plan, conceptual study,
and strategy of investigation conceived as to obtain answers to research questions and
to control variance.

 TYPES OF RESEARCH

Qualitative Research:

It is primarily exploratory research. It is used to gain an understanding of underlying

reasons, opinions, and motivations. It provides insights into the problem or helps to
develop ideas or hypothesis for potential quantitative research.

Quantitative Research:

Quantitative research is the systematic empirical investigation of observable

phenomena via statistical, mathematical or computational techniques. [1] The objective
of quantitative research is to develop and employ mathematical
models, theories and/or hypotheses pertaining to phenomena.

45
  SOURCES OF DATA

PRIMARY DATA:

Primary data are those which are collected at the first hand either by the researcher

or by someone else especially for the purpose of the study is known as primary data.

Questionnaire is to be filled up by an informal means. Tool or instrument for primary

data is questionnaire.

SECONDARY DATA:

Any data, which have been gathered earlier for some other purpose, are known as

Secondary Data.” Secondary data are already gathered by any other or someone else.

Like magazines, books etc.

COLLECTION OF DATA

The sampling technique used is convenience sampling or opportunity sampling, it is a

type of non-probability sampling that involves the sample being drawn from that part
of population that is close to hand. That is, a sample population selected because it is
easily available and convenient.

It is fast, inexpensive and the subjects are readily available. The relative cost and time
required to carry out a convenient sampling are small in comparison to probability
sampling techniques.

 Keeping my objective in mind and techniques to be used, I designed a

questionnaire.(i.e. primary data)
 I initially conducted a pilot survey with a sample size of 50.
 After this pilot survey , I conducted interview in Kamgar Nagar to analyse the
positioning strategies in the above area.

46
Types of questions asked

 Dichotomous questions
 Multiple choice questions

Interview Method:

Interview is verbal questioning. In research, Lindzey Gardner has defined interview as

“a two-person conversation, initiated by the interviewer for the specific purpose of
obtaining research-relevant information and focused by him on the content specified
by the research objectives of description and explanation”

Types of interviews:

 Informal, conversational interview:

No predetermined questions are asked, in order to remain as open and
adaptable as possible to the interviewee’s nature and priorities; during the
interview the interviewer “goes with the flow”.

 General interview guide approach:

Intended to ensure that the same general areas of information are collected
from each interviewee, this provide more focus than the conversational
approach, but still allows a degree of freedom and adaptability in getting the
information from the interviewee.

 Standardized, open ended interview:

The same open ended questions are asked to all the interviewees, this
approach facilitates faster interviews that can be more easily analysed and
compared.

 Closed, fixed-response interview:

All interviewees are asked the same questions and asked to choose answer
from among the same set of alternatives. This format is useful for those not
practiced in interviewing. This type of interview is also referred to as
structured.

47
According to my research an open ended interview was the best way to get across to
the answers of the objectives of the research.

I interviewed Mr. Ahmed Mohammed Shaikh (owner of a retail shop at Kamgar

Nagar) on 23rd October 2015. He guided me with the answers to the following
questions-

1. How many Nestle products he sells?

He sells most of the Nescafe, Maggi Noodles (when in market), Kit Kat &
Milkmade
2. Does he promote the products to customers by asking them about any of
Nestle product:?
The customers ask for Nestle products from their end.
3. Do customer ask for Milkmade?
Customers do ask for Milkmade but he don’t sell in that particular area
because it doesn’t have much of demand and also that there are for it to get
spoilt.
4. What no of customers does he attend for Nestle products and how of it he sells
per day?
He sells approx. 5-6 Kit Kat chocolate daily and 12 Kit Kat chocolates
weekly,
He also purchases a packet of 10-24 sachets, and many customers demand for
Nescafe.
5. What would be the number if Nestle Maggi is back in market that he sells?
He sells 24 pieces weekly of every variety and of different range related to
price i.e Rs.5 and Rs.10.
6. Whether he would sell if MIilkmade is demanded by customers?
He would sell if comparatively the demand increases for Nestle Milkmade.

Secondary Data:

It includes information collected from internet ,books

48
 CHAPTER NO. 5
ANALYSIS AND INTERPRETATION

Q Gender

GENDER PERCENTAGE FREQUENCY

MALE 48% 24
FEMALE 52% 26
TOTAL 100% 50

49
 TABLE NO. 13 GENDER

FINDINGS AND INTERPRETATION

It is found that in the sample size of 50 there:
 48% are male respondents
 52% are female respondents

50
Q1 Respondents who are aware of Nestle products. TABLE NO. 4.1: Respondents who are aware of
Nestle products.

AWARE PERCENTAGE FREQUENCY

YES 100% 50
NO 0% 0
TOTAL 100% 50

FINDINGS AND INTERPRETATION

From the above table (Table no. 4.1), it is observed that when respondents were asked
whether they are aware of Nestle company, on the basis of survey done on 50
respondents, it was found that all are aware of Nestle Brand.

51
Q2 Respondents who have tried Nestle products.

TABLE NO. 4.2 RESPONDENTS WHO HAVE ACTUALLY TRIED NESTLE

PRODUCTS

NESTLE USERS PERCENTAGE FREQUENCY

YES 100% 50
NO 0% 0
TOTAL 100% 50

FINDINGS AND INTERPRETATION

From the above table (Table no. 4.2), it is observed that when respondents were asked
whether the respondents have tried Nestle products or no, it was found that all the
respondents have tried at least one of the product of Nestle Brand.
52
Q3 Respondents who recalled products from four Nestle products.

OPTIONS PERCENTAGE FREQUENCY

KITKAT 30.0752% 40
NESCAFE 26.3158% 35
MAGGI 27.8195% 37
NESTLE MILKMAID 15.7895% 21
TOTAL 100% 133

TABLE NO. 4.3 Respondents who recalled products from four Nestle
products.

FINDINGS AND INTERPRETATION

From the above table (table no. 4.3), it is observed that when respondents were asked
which products they would recall in the choices of four products (i.e. Kit Kat, Nescafe,
Maggi & Nestle Milkmaid),
 30.07% of the respondents can recall Nestle Kit Kat
 26.31% of the respondents can recall Nestle Nescafe
 27.81% of the respondents can recall Nestle Maggi
 15.78% of the respondents can recall Nestle Milkmade

53
Q4 How frequently the respondents used Nestle products.

OPTIONS PERCENTAGE FREQUENCY

DAILY 18% 9
WEEKLY 56% 28
MONTHLY 24% 12
YEARLY 2% 1
TOTAL 100% 50

TABLE NO. 4.4 How frequently the respondents used Nestle products.

FINDINGS AND INTERPRETATION

From the above table (table no. 4.4), it is observed that when the respondents were
asked how frequently they use Nestle products,
 18% of the respondents used Nestle products daily.
 56% of the respondents used nestle products weekly.
 24% of the respondents used nestle products monthly.
 2% of the respondents used nestle products yearly

54
Q5 Respondent’s favourite products among the given choices:
CHOCOLATES

OPTIONS PERCENTAGE FREQUENCY

PERK 40.5797% 28
BIG BITE 2.8986% 2
KITKAT 55.0725% 38
NECCO WAFER CHOC 0% 0
YUM WAFERS 1.4493% 1
BRITANIA WAFERS 0% 0
TOTAL 100% 69

TABLE NO. 4.5.1 CHOCOLATES

FINDINGS AND INTEREPRETATION

From the above table (table no. 4.5.1), it is observed that when the respondents were
asked what was their favourite product in the given options in wafer chocolate,
 40.57% of the respondent’s favourite wafer chocolate is Perk.
 2.89% of the respondent’s favourite wafer chocolate is Big Bite.
 55.07% of the respondent’s favourite wafer chocolate is Kit Kat.
 1.44% of the respondent’s favourite wafer chocolate is Yum
Wafers.
 None of the respondent’s favourite wafer chocolate is Necco Wafer
Chocolate & Britania Wafers.

55
Q6. Media through which respondents were aware of Nestle products.

COMMUNICATION MEDIUMS PERCENTAGE FREQUENCY

ADVERTISING 64.2857% 45
INTERNET 17.1429% 12
PRINTED MEDIA 4.2857% 3
SALES PROMOTION 4.2857% 3
EVENT & EXPERIENCE 4.2857% 3
PRICE 5.7143% 4
TOTAL 100% 70

TABLE NO. 4.9 Media through which respondents were aware of Nestle
products.

FINDING AND INTERPRETATION:

From the above table (table no. 4.9), it is observed that when the respondents were
asked about how they came to know about NESTLE in the given options,
 64.28% of the respondents came to know about Nestle from
ADVERTISEMENTS.
 17.14% of the respondents came to know about Nestle from INTERNET.
 4.28% of the respondents came to about Nestle from PRINTED MEDIA.
 4.28% of the respondents came to about Nestle from
SALES PROMOTION.
 4.28% of the respondents came to know about Nestle from EVENT &
EXPERIENCE.
 5.71% of the respondents came to know about Nestle from PRICE of
Nestle products.

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Q7. Respondents who find Nestle advertisement attractive.

OPTIONS PERCENTAGE FREQUENCY

YES 80% 40
NO 20% 10
TOTAL 100% 50

TABLE NO. 4.10 Respondents who find Nestle advertisement attractive

FINDINGS AND INTERPRETATION

From the above table (table no. 4.10), it is observed that when the respondents were
asked about whether the advertisements they see were attractive,
 80% of the respondents found the advertisements they see were
attractive.
 20% of the respondents found the advertisements they see were not
attractive.

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Q8 Influence of advertisement in the buying process of the respondents.

OPTIONS PERCENTAGE FREQUENCY

YES 60% 30
NO 40% 20
TOTAL 100% 50

TABLE NO. 4.11 Influence of advertisement in the buying process of the

respondentss

FINDINGS & INTERPRETATION:

From the above table (table no. 4.11), it is observed that when the respondents
were asked about whether the advertisement they see influence them,
 60% of the respondents are influenced by the advertisements.
 40% of the respondents are not influenced by the advertisements.

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Q9 Reasons for respondent’s favourite product.

OPTIONS PERCENTAGE FRQUENCY

HEALTHY 22.3684% 17
TASTY 40.7895% 31
AFFORDABLE 6.5789% 5
EASILY AVAILABLE 15.7895% 12
ATTRACTIVE 1.3158% 1
PACKAGING
QUALITY PRODUCT 22.3684% 10
TOTAL 100% 76

TABLE NO. 4.6 Reasons for respondent’s favourite product

FINDINGS AND INTERPRETATION

From the above table (table no. 4.6), it is observed that when the respondents were
asked about reasons behind why they purchase product (in the above 4 tables i.e. table
no. 4.5.1, table no. 4.5.2, table no. 4.5.3, & table no. 4.5.4),
 22.36% of the respondents purchase the products because they feel it
as healthy product.
 40.78% of the respondents purchase the products because they feel it
as tasty product.
 6.57% of the respondents purchase the products because they feel it as
affordable product.
 15.78% of the respondents purchase the products because they feel it
as easily available.
 1.31% of the respondents purchase the products because they feel it as
having attractive packaging.
 22.36% of the respondents purchase the products because they feel it
as quality product.

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 Q10 Satisfaction level of the respondents.

OPTIONS PERCENTAGE FREQUENCY

SATISFIED 58% 29
QUITE SATISFIED 34% 17
DISSATISFIED 0% 0
QUITE DISSATISFIED 0% 0
NEITHER SATISFIED 8% 4
NOR DISSATISFIED
TOTAL 100% 50

TABLE NO. 4.7 Satisfaction level of the respondents.

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CHAPTER NO 6 CONCLUSIONS

 It is found that awareness made by Nestle for its products is good enough as in
sample size of 50, everybody know well about Nestle and also have tried
Nestle’s products.

 It is found that at least 20 respondents out of 50 can recall Nestlé’s product in

the given four options.

 It is found that most of the respondents consume Nestle products weekly with
56%, monthly with 24%, daily with 18% & yearly with 2%.

 It is found that main competitor for Nestle in chocolates and confectioneries id

Cadbury Perk i.e. it is a main competitor to KitKat.

 It is found that the main competitor to Nestle Milkmaid would be Amul

Mithaimate. Milkmaid is favourite of more than 40% of the respondents
among 50.

 It is found that Maggi Noodles is main favourite product of the people.

 It is found that Nescafe is leading in the market. Bru would be the competitor

 It is found that the Nestle products which are consumed is beacause they are
approx. 22% healthy, 40% tasty, 6% affordable, 1% having attravtive
packaging & 22% quality product.

 It is found that approx. 58% of the respondents are satisfied with the Nestle
products, 34% are quite satisfied & 8% are neither satisfied nor dissatisfied.

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 It is found that 58% of the respondents rated Nestle as good among the other
brand, 32% respondents rated very good & 10% respondents rated excellent.

 It is found that advertising plays an important role in making the people aware
of the Nestle products.

 It is found that 80% of the respondents found Nestle advertisements attractive.

 It is found that 60% of the respondents are influenced by just seeing the
advertisements of Nestle.

 It is found that 30% of the respondents are influenced by the advertisements of

Nestle if celebrities are endorsed.

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 CHAPTER NO. 7
SUGGESTIONS

 The company should more of variety of products in eatables such as

BISCUITS, WAFERS, and also COLD DRINKS.
 the company should also make sure of quality of the product (as in MAGGI),
and should also get back Maggi in the market as it is favourite among many of
the people.

 The company should put up affordable prices to the product and also should
ensure about the quality as well as quantity.

The company should keep producing new products as consumers always

want varients in the products

63
 ANNEXURE QUESTIONAIRRE

Full Name:

Gender: □ Male □ Female

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Q1 Who are aware of Nestle products.

A ) YES
B ) NO

Q2 Who have tried Nestle products.

A ) YES
B ) NO

Q3 WHO RECALL PRODUCT FROM NESTLE PRODUCT

A ) KITKATE
B ) NESCAFE
C ) MAGGI
D ) MILK MADE

Q4 WHO FREQUENTLY YOU USE NESTLE PRODUCT.

A ) DAILY
B ) WEEKLY
C ) MONTLY
D) YEARLY

Q5 YOUR CHOCOLATE AMONG THE GIVEN CHOICE.

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A) PERK
B) BIG BITE
C) KITE KATE
D) NECCOWAFER CHOC
E) YUMY WAFFERS
F) BRITTANIA WAFFER

Q6. Media through which respondents were aware of Nestle products.

A ) ADVERTISING
B) INTERNET
C) PRINTED MEDIA
D) SALES PROMOTION
E) EVENT & EXPERIENCE

Q7. Respondents who find Nestle advertisement attractive.

A) YES
B) NO

Q8 Influence of advertisement in the buying process.

A) YES
B) NO

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Q9 Reasons for your favourite product.

A) HEALTHY

B) TASTY

C) OFFORDABLE

D) ATTRACTIVE PACKAGING

E) QUALITY PRODUCT

Q10 YOUR SATISFACTION LEVEL TOWARDS THE NESTLE.

A) SATISFIED
B) QUITE SATISFIED
C) DISSATISFIED
D) QUITE DISSATISEFIED
E) NIETHER SATISFIED NOR SATISFIED

67
 BIBLIOGRAPHY

 BOOK NAME: Special studies in marketing.

AUTHOR: Romeo S. Mascarenhas.
PUBLISHER: Vipul Prakashan

 BOOK NAME: Marketing management

AUTHOR : Philip Kotler

WEBLIOGRAPHY

 http://www.iuf.org/sites/cms.iuf.org/files/NESTLE%20.pdf
 http://www.marketing91.com/marketing-mix-nescafe/
 https://www.nestle.in/aboutus/allaboutnestl%C3%A9
 http://www.gtu.ac.in/ABP/GCSR%20PDF%202012/816%20-
%20Switzerland.pdf
 http://www.academia.edu/7613238/Marketing_Report_on_Nestle_Pakistan
 http://ideasmakemarket.com/2012/02/ideasclash-2-0-entry6-branding-
strategy-of-maggi-noodles.html
 https://www.scribd.com/doc/107494610/7/COMPANY-PROFILE
 www.managementparadise.com/forums/marketing-management/205529-
product-profile-maggi
 http://in.reuters.com/finance/stocks/companyProfile?symbol=NEST.BO
 https://en.wikipedia.org/wiki/Nestlé
 http://www.reuters.com/finance/stocks/companyProfile?symbol=NESN.VX
 http://companies-profiles.blogspot.in/2009/08/nestle-india.html
 http://www.nestle.com/asset-
library/Documents/Library/Documents/Annual_Reports/2011-Annual-
Report-EN.pdf

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