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Submitted toward the partial fulfillment of the requirement for the Degree of Bachelor of Business Administration AT NESTLE INDIA LTD




Customer Perception Theory (CPT)
Customer Perception Theory (CPT) illustrates and explains one method through which advertising is effective. There are two basic concepts that need to be accepted in order for CPT to be understood: cultural filtration, perceptual reality.

Cultural filtration is simply the reason that people perceive day to day life differently from one another. Each person is unique and has had a unique set of life events that shape the way they experience. An easy way of understanding cultural filtration is by comparing the cultural filter to a pair of sunglasses. W hen we wear tinted glasses we view the world as being the color of the lens, the same applies with our cultural filters. W e gather our experiences on a wide variety of topics (politics, education, experien ce, vocabulary, travel, geographic location, cultural knowledge, tradition, family, heritage, race, ethnicity, sexuality, habits, etc) and form our own unique cultural filter. It is through this unique filter that we experience everything, including advert ising. In the model above the pink tinted rectangle represents the cultural filter.

W ith cultural filtration in place, we can proceed through the steps of the model which define the theory. The process of CPT starts with the consumer: an individual toward which the message is directed.

The consumer must first have a perceived need or want, and then actively experience an advertisement in the product category where the need or want exists. It is a catalyst for the model if this advertisement occurs at strategic timing in the process. After exposure, the consumer forms an opinion about t he product. This perception becomes the reality of that product to the consumer. It is possible that this truth could change with exposure to competitive messages from a wide variety of sources (other media, friends, advice columns etc). If, however, the p roduct is perceived, and therefore assigned the truth, of being positive it is then evaluated as to whether or not it fills the need or want. If it does indeed fit the need, it is likely that the consumer will proceed to the purchase stage of the model. In the purchase stage the consumer decides to purchase or not to purchase the product. Again, there are a number of variables surrounding this decision, as surround each step and decision in the model.

Nestle India
Nestle India is a subsidiary of Nestle S.A. of Switzerland headed by Mr.Martial G.Rolland, Chairman And Managing Director. With six factories and a large number of co-packers, Nestle 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. The Company employs over 4500 people and for the full year 2005 Nestle India recorded net sales of Rs. 20477 Mio. 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. Nestles leading brands include Cerelac, Nestum, Nescafe, Maggie, Kitkat, Munch and Pure Life.

Objective of study
1. Provide our customers with superior quality products. 2. Provide our shareholders with rapid growth & fair returns. 3. Provide our employees a challenging & satisfying work environment. 4. To be a good corporate citizen & contribute positively to the society in which we operate.


1. Although product line is very good & has good width & depth, but NIL should try to make stronger brand equity in Dairy products, Amul is still leader. 2. It should work more on concept of CRM (Making new customers & retaining old ones. 3. Cash discounts must be given. 4. More competitive pricing to be done in the premium segment. 5. Increase their sales force to make more frequent visits to the sales person. 6. Should also look for rural markets. 7. Quick handling of problems of stockiest & dealers. 8. Online ordering facility & electronic payment through website can save a lot of time. 9. Due to sluggishness in a FMCG market, most of the companies are under pressure to maintain volume & market share. NIL should draw out an action plan to improve sales through new product launches. 10. Company should concentrate on all round cost saving & productivity gain, to neutralize the adverse impact of increased excise of confectionary. 11. The market strategy of the firm is a complete and unbeatable plan or an instrument designed specially for attaining the marketing objective of company. The formulation of the marketing strategy consists of two steps:12. Segmentation & target market selection. 13. Assembling the marketing mix.