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"Acknowledgement is an art ,one can write glib stanzas without meaning a word,and on other hand one can make a simple expression of gratitude" I am grateful to my teacher of the college who inspires me to do so. As in the absence of a teacher the right of path of knowledge is impossible.So, I feel pleasure to be grateful towards my guide Mr. Vaibhav Sharma who encouraged me ana provide the shape & structure to this project.
Shreesh Mehrotra BBA VI Semster 915671
ACKNOWLEDGEMENT SYNOPSIS OBJECTIVES NESTLE INDIA 4-9
1-2 10-11 12-17 18-43 44-53 54-55 56
2. 3. 4. 5. 6. 8. 9.
COMPANY PROFILE SWOT ANALYSIS LIMITATIONS FINDINGS
7. RESEARCH METHODOLOGY 59-62
10. RECOMMENDATIONS 11. CONCLUSION 12. BIBILOGRAPHY 65
SYNOPSIS 4 .
Progress in Moga required the introduction of Nestlé’s Agricultural Services to educate. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers. scientific crop management practices and helping with the procurement of bank loans. Punjab. Nestlé responded to India’s aspirations by forming a company in India and set up its first factory in 1961 at Moga. suppliers of packaging materials.Profile of nestle Nestlé’s relationship with India dates back to 1912. The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste. but a thriving hub of industrial activity. After India’s independence in 1947. to irrigation. when it began trading as The Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited. From increasing the milk yield of their cows through improved dairy farming methods. For more on Nestlé Agricultural Services. 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 5 . 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. where the Government wanted Nestlé to develop the milk economy. the economic policies of the Indian Government emphazised the need for local production. importing and selling finished products in the Indian market. Nestlé set up milk collection centres that would not only ensure prompt collection and pay fair prices. 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. Health and Wellness through its product offerings. advise and help the farmer in a variety of aspects. as well. Nutrition. click here. but also instil amongst the community. services and other goods.
with around 450 factories spread across the globe. At the same time. NESTLÉ Fresh 'n' Natural Dahi and NESTLÉ Jeera Raita. and a portfolio that ranges from baby foods to pet care. from chocolate to mineral water. developing the widest possible range of nutritionally balanced products under the overall umbrella "Good Food. KIT KAT. Kit Kat and Perrier. Nestlé India manufactures products of truly international quality under internationally famous brand names such as NESCAFÉ. Good Life BRANDS Nescafe L'Oreal Nestlé Rowntree Nestlé Purina / Friskies Gervais Extreme Maggi Maxibon Galderma 6 . MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTLÉ Milk. In particular Nestlé has leveraged its performance in sectors such as ice cream and petfoods with an aggressive acquisition strategy. NESTLÉ SLIM Milk. among many others. As with other food companies. It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality. Nestlé is the world's biggest food manufacturer.these efforts. safe food products at affordable prices. it has placed health and wellness at the forefront of its agenda. MILO. recent years have seen a greater concentration on a focused food and beverage business. BARONE. Nestlé India is a responsible organization and facilitates initiatives that help to improve the quality of life in the communities where it operates. MAGGI. The group also owns a large shareholding in cosmetics company L'Oreal. Its world-famous brands include Nescafe. MILKYBAR.
Nestea Cereal Partners Dreyer's Ice Cream Nestlé Waters Nestlé Baby Food Nesquik Baci
Buitoni Herta Gerber Nespresso Willy Wonka Jenny Craig Nestlé Professional
1. To determine the sales volume of the company. 2. To overcome the failures that are being faced by company. 3. To know the advertising strategy of the company. 4. To know the strategy of competitors.
1. RESEARCH METHODOLOGY
I have carried out a research which is both qualitative and quantitative in its support. The qualitative approach applies to both, descriptive and inductive forms of research. While as in case of quantitative approach, an extensive use has been made of the literature available to carry out a detail research on the nature of the problem. I have chosen Nestle as the target company for my research study. 1.1 Method of data collection & analysis The data, after collection, has to be processed and analyzed in accordance with the outline laid down for the purpose at the time of developing the research plan. This is essential for a scientific study and for ensuring that we have all relevant data for making contemplated comparisons and analysis. I have conducted a graphical analysis based on the responses received from the persons questioned and interviewed. Once the interview was over, the responses received were be grouped together, and a graphical presentation and analysis has been made for every set of questions. I have made use of both, the primary sources and the secondary sources of data in collecting information. PRIMARY DATA The primary source of data involves oral interviews and questionnaires. These sources are inadvertently expected to yield more qualitative data and results. SECONDARY DATA The secondary source of data includes relevant literature including periodicals and journal articles in the areas of Marketing, customer satisfaction. product. To have a good image in the eyes of retailers.
Objectives Objectives 10 .
To know the advertising strategy of the company. To determine the sales volume of the company. 2.1. To overcome the failures that are being faced by company. To know the strategy of competitors. 4. Nestle India 11 . 3.
Nestle Dahi. Rolland. Munch and Pure Life. Nestum. Nestea and Kit Kat and in the recent years the company has also introduced products of daily consumption and use such as Nestle Milk. of Switzerland headed by Mr. The culture of innovation and renovation within the company and access to the Nestle Group's proprietary technology/ Brands. Nestle’s leading brands include Cerelac. 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. Cerelac. The company has launched Dairy Products like UHT Milk. Chairman And Managing Director. Milo. Nestle India manufactures products of truly international quality under internationally famous Brand names such as Nescafe. Nestle Fruit 'n milk ready to drink beverage and Nestle Pure Life bottled drinking water. Nestle Butter. Milky Bar. milk products and noodles. Nescafe.Nestle India is a subsidiary of Nestle S. Butter and Curd and also ventured into the mineral water segment in 2001. Kitkat. infant foods.A. 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. COMPETITION Baby food and Instant coffee are categories where brand loyalties are very strong and Nestle is the market leader. It has a broad based presence in the foods sector with leading market shares in instant coffee. is among the leading branded food player in the country. Nestle India Ltd. BarOne. The Company employs over 4500 people and for the full year 2005 Nestle India recorded net sales of Rs. Martial G. Maggie. With six factories and a large number of co-packers. It has also strengthened its presence in chocolates. 51% subsidiary of Nestle SA. expertise and the extensive centralized Research and Development facilities helps the company to create value that can be sustained over the long term. Maggi. 20477 Mio. HUL is a significant competitor to Nestle in instant 12 . confectioneries and other semi processed food products during the last few years.
1929: Merger with Peter Cailer-Kohler Chocolate Suisse S. ready mixes for Indian ethnic breakfast and sweets. A. 1905: Merger Between Nestle' & Anglo-Swiss Condensed Milk Company. 1947: Merger with Alimentana SA (Maggie). HLL and Indo Nissin Foods are the main competitors in these product segments. The company also forayed into the bottled water segment with the launch of its Perrier brand in the premium mineral segment and Pure Life in the purified water segment. 1977: Acquisition of Alcon (2002: partial IPO). 1985: Acquisition of Carnation (USA). 1969: Vittel (equity interest) 1971: Acquisition of Ursina-Franck (Swiss). curd and butter. semi-processed foods such as noodles. SOME ACQUISITIONS & MERGERS 1866: Company Foundation. 1988: Acquisition of Buitoni-0-Perugina (Italy). The company has recently expanded its dairy products portfolio to include. Nestle has also achieved a significant 25% share in the chocolate/confectionery market. The market for culinary products.coffee. is largely an urban market. 1974: Acquisition of L’ Oreal (France). 1988: Acquisition of Rowntree 13 . milk. while Heinz is the main competitor in the baby foods market.
1992: Acquisition of Perrier (France) 1998: Acquisition of San Pellegrino and Spillers Petfoods 2000: Acquisition of PowerBar 2001: Acquisition of Ralston Purina 2002: Acquisition of Scholler and Chef America 2003: Acquisition of Movenpick. 1990: Nestle' – Walt Disney (USA). Proteika. 1989: CPW (USA) (Cereal Partner World Wide). 2002: Dairy Partners Americas and Laboratories MAJOR PRODUCTS & YEAR OF INCEPTION 14 . Powwow and Dreyer’s 2004: Acquisition of Valio (ice cream activities) 2005: Acquisition of Wagner. 1991: Cooperation with Coca Cola (USA). Musashi SOME STRATEGIC ALLIANCES 1981: Galderna 1989: With Clintec (USA).
NIL is running with about 80 brands in India. Some major products under those brands are till the year 2003 is as follows: PRODUCTS MILKMADE NESCAFE LACTOGEN MAGGI NOODLES MAGGI SAUCES SUNRISE EVERY DAY MAGGI SOUPS ECLAIRS BARONE NESTLE BONUS CHOCOLATE KIT-KAT POLO MILO NES TEA NESTLE SLIM MILK YEAR OF INCEPTION 1962 1964 1968 1983 1985 1983 1986 1989 1991 1993 1995 1995 1995 1996 1996 2003 15 .
RECENTLY LAUNCHED PRODUCTS 16 ..
Nestle India ltd. 17 . The marketing objectives indicate what the firm wants to achieve. And in this linkage lies the significance of marketing strategy.e. has an aggressive marketing strategy which is very well understood when one goes through the in-depth study of the 4-P’s of the marketing and price strategies with respect to its products. The link between marketing strategy and overall success is indeed direct and vital. the marketing strategy that decides the success at the business unit level which in turn decides the total corporation’s success. One comes to the conclusion that NIL has a well defined roadmap to success i. to reach its ultimate objective of realizing customer satisfaction through value for price products.* Set Dahi * New Tomato and Curry Flavors in Maggie Noodles * New Dal and Atta in Maggie Noodles * A new confectionery – Nestle Choco Stick * Soft Chewy fudge Milky bar Choo * Nestle` recently launched products Tea Iced Tea * Nestle slim milk Error: Reference source not foundMARKETING STARTEGIES OF NESTLE INDIA LIMITED Marketing strategy is the complete and unbeatable plan designed specially for attaining the marketing objective of the firm.
COMPANY PROFILE Nestle India 18 .
MILKMAID. Nestle's first product was "Farine Lactee Nestle".A. namely Nestle India Ltd. Switzerland by Henri Nestle. Thereafter. in 1993 and two in Goa at Ponda. KIT KAT. irrigation. Thus. prepared dishes & cooking aids.000 employees worldwide. Nestle formed a company in India. Some of the famous brands of Nestle are NESCAFE. scientific crop management practices etc. Nestle educated and advised farmers regarding basic farming and animal husbandry practices such as increasing the milk yield of the cows through improved dairy farming methods. 19 . NESTLE SLIM Milk. Punjab.50. milk products. Nestle India is now putting up the 7th factory at Pant Nagar in Uttarakhand. NESTEA. and chocolates & confectionary. beverages.Nestle India is a subsidiary of Nestle S. Nestle acquired the Anglo-Swiss Condensed Milk Company. BAR-ONE. Nestle transformed Moga into a prosperous and vibrant milk district. operated 500 factories in approximately 100 countries and offers over 8. Nestle was founded in 1867 in Geneva. and set up its first factory in 1961 at Moga. and Bicholim in 1995 and 1997 respectively. Nestle is the world's largest and most diversified food company. an infant cereal. Nestle set up milk collection centres that ensured prompt collection and paid fair prices. where the Government wanted Nestle to develop the milk economy. Nestle opened its third factor in Nanjangud (Karnataka) in 1989. In 1967. MILKYBAR. in response to the then economic policies. Nestle India opened factories in Samalkha (Haryana).000 products to millions of consumers universally. which emphasized local production. importing and selling finished products in the Indian market. Nestle India manufactures a variety of food products such as infant food. After independence. when it began trading as The Nestle Anglo-Swiss Condensed Milk Company (Export) Limited. Nestle's relationship with India started 1912. Nestle set up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area into soluble tea. In Moga. Today. NESTLE Milk. MAGGI. MILO. In 1905. of Switzerland. It has around 2. NESTLE Fresh 'n' Natural Dahi and NESTLE Jeera Raita.
under new ownership. 20 . retained his name as Farine Lactée Henri Nestlé. the milk chocolate manufacturing process. when two separate Swiss enterprises were founded that would later form the core of Nestlé. Henri Nestlé developed a milk-based baby food and soon began marketing it. saw Daniel Peter begin seven years of work perfecting his invention. M. USA established the Anglo-Swiss Condensed Milk Company in Cham. Nestlé's was the crucial cooperation M. In September 1867. but the company. two brothers from Lee County. Peter needed to solve the problem of removing all the water from the milk added to his chocolate and thus preventing the product from developing mildew. 1868. The following year. Henri Nestlé retired in 1875. Illinois. In August 1867 Charles A and George Page. in Vevey. The company dates to 1867. In the succeeding decades the two competing enterprises aggressively expanded their businesses throughout Europe and the United States.History Nestlé headquarters in Vevey. Their first British operation was opened at Chippenham. Wiltshire in 1873.
World War I created new demand for dairy products in the form of government contracts. Germany and Spain. In 1905 the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk Company. and in the following year the Nestlé Company added condensed milk. 21 . By the early 1900s. In 1877 Anglo-Swiss added milk-based baby foods to its products. by the end of the war. After the war. Switzerland. the company was operating factories in the United States. with chocolate the company's second most important activity. The 1920s saw Nestlé's first expansion into new products. United Kingdom. government contracts dried up and consumers switched back to fresh milk. The company’s current name was adopted in 1977. Maggi was a major manufacturer of soup mixes and related foodstuffs. Alimentana SA of Kempttal. when the name Nestlé Alimentana SA was taken as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding company. However. streamlining operations and reducing debt. retaining that name until 1947. so that the firms became direct and fierce rivals. Nestlé's production had more than doubled. Nestlé's management responded quickly.Henri Nestlé.
The Brazilian president. Crosse & Blackwell followed in 1950. the war helped with the introduction of the company's newest product. Diversification came with a shareholding in L'Oréal in 1974. Factories were established in developing countries. as did Findus (1963). and Ralston 22 . notably American food giant Carnation and the British confectionery company Rowntree Mackintosh in 1988.The logo that Nestlé's used till the 1970s. The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and world markets developed into more or less integrated trading areas. Nescafé ("Nestlé's Coffee"). Libby's (1971) and Stouffer's (1973). In 1947 came the merger with Maggi seasonings and soups. which was a staple drink of the US military. which brought the Willy Wonka Brand to Nestlé. In 1984. Nestlé's production and sales rose in the wartime economy. The end of World War II was the beginning of a dynamic phase for Nestlé. Profits dropped from US$20 million in 1938 to US$6 million in 1939. Nestlé felt the effects of World War II immediately. Since 1996 there have been acquisitions including San Pellegrino (1997). Growth accelerated and companies were acquired. Nestlé's improved bottom line allowed the company to launch a new round of acquisitions. Ironically. particularly Latin America. in February of 2007. inaugurates a factory in Feira de Santana (Bahia). In 1977. Spillers Petfoods (1998). Lula da Silva. Nestlé made its second venture outside the food industry by acquiring Alcon Laboratories Inc.
5 billion. one of its fiercest confectionery competitors. also acquiring in 2007 the milk flavoring product known as Ovaltine. Nestlé merged its U. Nestlé entered in a strategic partnership with a Belgian chocolate maker Pierre Marcolini. other beverages (including Aero (chocolate) & Skinny Cow). confectionery and pet food. seasonings. for full acquisition of the world’s largest eye-care company. returning to its roots. Nestlé bought the Greek company Delta Ice Cream for €240 million. thus becoming the world's biggest ice cream maker with a 17. Products Main article: List of Nestlé brands Nestlé has 6. both in 2002: in June.5B. performance and healthcare nutrition. chocolate.3 billion offer. Nestlé bought baby-food manufacturer Gerber for $5. In April of 2007. Nestlé came close to purchasing the iconic American company Hershey's.6 billion acquisition was announced of Chef America. The sale was to form part of a broader US $39.In December of 2007. with a wide range of products across a number of markets including coffee (Nescafé). Nestlé agreed to sell its controlling stake in Alcon to Novartis on 4 January. ice cream business into Dreyer's.000 brands. ice cream. In December of 2005. There were two major acquisitions in North America.5% market share. though the deal fell through. frozen and refrigerated foods. infant foods. In the same time frame. and in August a US$2. Another recent purchase included the Jenny Craig weight loss program for US$600 million. by Novartis. 2010. In January of 2006. In November of 2006.S. Nestlé purchased the Medical Nutrition division of Novartis Pharmaceutical for $2. it took full ownership of Dreyer's. bottled water. the creator of Hot Pockets. BUSINESS 23 .Purina (2002).
Japan headquarters The Nestlé Tower in Croydon. This serves as their headquarters in the United Kingdom. 24 .
Werner Bauer. IP. Nestlé S. includes: • Peter Brabeck-Letmathe.A. United States of America. Marketing. Harris. Research & Development • • • Friz van Dijk.A. Caribbean • José Lopez. Paul Bulcke. Strategic Business Units. Executive Vice President. a distinct entity from the board of directors. Nestlé S.A. GLOBE John J. Nestlé S. Chief Executive Officer.A. Chairman & CEO of Nestlé Waters • • Nandu Nandkishore. Executive Vice President. Operations. Executive Vice President. Europe Petraea Heynike. Executive Vice President..A. Chief Technology Officer. Sales and Nespresso • 25 . Nestlé S. Executive Vice President. Legal. Technology. CEO of Nestlé Nutrition James Singh. Nestlé S. Nestlé S. Canada.A. Asia. Nestlé S. Executive Vice President. Tax. Latin America.Management The executive board. Chairman of the Board of Directors. Nestlé S. Executive Vice President. Head of Innovation. Nestlé S.A. Finance and Control. Executive Vice President. Oceania. Middle East • Luis Cantarell.A.A.A. Global Nestlé Business Services • • Laurent Freixe. Africa. Nestlé S. Nestlé S.A. Executive Vice President.
26% from dairy and food products. 6% from pharmaceutical products and 2% from baby milks. Nestlé S. • Sales by activity breakdown: 27% from drinks.02 billion.4% of the shares of L'Oréal. 11% from pet products. and Dairy Partners Americas with Fonterra. Research and development investment was CHF 2.6 billion and net profit was CHF 10.A. 21% from rest of the world. Deputy Executive Vice President. 31% from Americas (26% from US). Others include Cereal Partners Worldwide with General Mills.43 billion. and Galderma a joint venture in dermatology with L'Oréal. 12% from chocolate. Frick. Joint ventures Nestlé holds 26. 26 . Deputy Executive Vice President Nestlé S. Nestlé has a reputation score of 70. The Laboratoires Inneov is a joint venture in nutritional cosmetics between Nestlé and L'Oréal.A. Head of Nestlé Professional Strategic Business Division • Jean-Marc Duvoisin.• Marc Caira. Earnings In 2009. Senior Vice President and ex officio Member of the Executive Board According to a 2006 global survey of online consumers by the Reputation Institute. the world's largest company in cosmetics and beauty.4 on a scale of 1–100. Beverage Partners Worldwide with CocaCola. Head of Human Resources and Centre Administration • David P. 16% from Asia. consolidated sales were CHF 107. • Sales by geographic area breakdown: 32% from Europe. 18% from ready-prepared dishes and ready-cooked dishes.
with a target of producing 1 million high-quality. an issue that attracted significant attention in 1977 as a result of the Nestlé boycott which is still ongoing.  however. the Ivorian National Centre for Plant Science Research. and eliminating child trafficking and abusive labour practices. Controversy and criticism Marketing of formula Main articles: infant formula and Nestlé boycott One of the most prominent controversies involving Nestlé concerns the promotion of the use of infant formula to mothers across the world including developing countries. states that breastmilk is the best food for infants. The aim is to replace old. The WCF was set up specifically to deal with issues facing cocoa farmers (disease had wiped out much of the cocoa crop in Brazil) including ineffective farming techniques and poor environmental management. however. signed a frame agreement for cooperation in plant science and propagation. encouraging sustainable farming techniques and environmental and social programmes. The company will invest CHF 110 million in the Plan over ten years to achieve a sustainable cocoa supply. women who cannot 27 . In October 2009 Nestlé announced its Cocoa Plan. Nestlé's policy. The WCF focuses on boosting farmer income. less productive trees with healthier new ones. an independent foundation set up in 2002 and dedicated to ending child and forced labour in cocoa growing. Nestle continues to draw criticism that it is in violation of a 1981 World Health Organization code  that regulates the advertising of breast milk formulas. Nestlé is launching a Fair Trade branded Kit Kat in the UK and Ireland from January 2010. disease-resistant cocoa plantlets a year by 2012. On the 23rd October 2009 Nestlé and CNRA.Ethical and sustainable efforts In 2000 Nestlé and other chocolate companies formed the World Cocoa Foundation.Nestlé is a founding participant in the International Cocoa Initiative (ICI).
Nestlé themselves stated that many of their bottles end up in the solid waste-stream and that most of their bottles are not recycled. On October 2. Nestlé has announced that it will begin a recall of milk products produced in China. it was brought to light that Nestlé was buying milk from illegallyseized farms currently operated by Robert Mugabe's wife. Grace Mugabe. Mugabe and his 28 .or choose not to breast feed for whatever reason do need an alternative to ensure that their babies are getting the nutrition they need. "Nestlé Pure Life is a healthy. Nestlé affirmed that all its products were safe and were not made from milk adulterated with melamine.In their 2008 Corporate Citizenship Report. Zimbabwe farms In late September 2009.The advertising campaign has been called greenwashing. The Dairy Farm milk was made by Nestlé's division in the Chinese coastal city Qingdao. A spokesperson from one of the environmental groups stated: "For Nestlé to claim that its bottled water product is environmentally superior to any other consumer product in the world is not supportable". 2008 the Taiwan Health ministry announced that six types of milk powders produced in China by Nestlé contained traces of melamine. eco-friendly choice" and that "Bottled water is the most environmentally responsible consumer product in the world". the Hong Kong government claimed to have found melamine in a Chinese-made Nestlé milk product. Greenwashing A coalition of environmental groups filed a complaint against Nestlé to the Canadian Code of Advertising Standards after Nestlé took out full page advertisements in October 2008 claiming that "Most water bottles avoid landfill sites and are recycled". Melamine in Chinese milk In late September 2008.
much public attention has been given to the environmental impact of palm oil and the role of multi-nationals such as Nestlé in this. Greenpeace welcomed the agreement promising to monitor it closely. E.regime are currently subject to European Union sanctions.000 tonnes of palm oil worldwide. Virginia. in answer to a question from Greenpeace. to audit its supply chain and promised to cancel contracts with any firm found to be chopping down rainforests to produce the palm oil which it uses in KitKat. Coli O157:H7 was linked to Nestlé's refrigerated cookie dough originating in a plant in Danville. comparing this with the 500. Coli is not known to live in any of its constituent 29 . told the Company’s Annual General Meeting in Lausanne on April 15.]and "Nestlé Loses Face On Facebook". half of whom required hospitalization. because E.000 cases of the cookie dough. Palm oil use Rapid deforestation in Borneo and other regions to harvest hardwood and make way for oil palm plantations sends massive amounts of carbon dioxide into the atmosphere." Nestlé's attempt to engage with the issue were met with criticism. Peter Brabeck-Letmathe. the caused sickness in at least 69 people in 29 states. In the USA.There is ongoing concern by various NGOs including Greenpeace. Nestlé Chairman. Nestlé later stopped buying milk from the dairy farms in question.Nestlé were met with "a deluge of criticism from consumers. 2010 that in 2009 Nestlé used 320. Nestlé voluntarily recalled 30. In May 2010 Nestlé said it was inviting The Forest Trust. where peat swamp forests are cleared. Following the outbreak. Aero and Quality Street. Coli In June 2009. a not-for-profit group.]In particular. including headlines stating: "Nestlé fails at social media". destroying the habitat for many threatened species of animals such as the orangutan. How the dough became contaminated is unclear. after a large number of Facebook users posted negative comments about the company's business practises. an outbreak of E.000 tonnes of palm oil used for biodiesel in Germany and Italy alone.
This (test launch) will be undertaken in Bombay. The chosen segment is targeted because – *0 Lack of infrastructure. the cities with 1 million + population i. Within Urban India. since it (Bombay) is a high consumption city for chocolates. *3 Semi-Urban may be considered in the second phase. *2 The limitation of disposable income is another factor that hampers entry in rural areas. The company may focus on the following factors while laying down the target market. 1. In the first phase (after the test launch). like refrigeration-not to venture rural markets.GEOGRAPHIC SEGMENTATION Geographically the country can be broadly divided into 3 sub segments -Rural. A soft launch of the brand should be undertaken before taking the brand to these areas.( Source: Nestle (I) Ltd – infact Nestlé’s sales peaked out 30 . An year after the launch. Suburban and Urban. *1 The consumption pattern & behavior in Rural India does not fit with the product attributes and perceived benefits. MARKET SEGMENTATION AND TARGET MARKET SELECTION Market segmentation and target market selection have an intimate relationship with market strategy formulation. Urban parts of the country should be targeted.e.ingredients. top 23 metros will be targeted.
it may not be easy to get youngsters off their tuck money. lozenges and toffees). rolls. Life Style: In terms of lifestyle. because of the nature of the perceived product benefit by consumers in that age group. pioneers. Personality Traits: This segment essentially consists of emulator’s i. as the universe of chocolate consumption is changing from occasion led to more casual consumption. *4 Age: 12 years + segment of the population is recommended to be targeted.PSYCHOGRAPHIC SEGMENTATION Social Class: In terms of psychographic the social class targeted is the educated upwardly mobile urban middle and upper class. Further. 4.in Bombay. Small kids may not be targeted. BEHAVIORAL SEGMENTATION 31 .DEMOGRAPHIC SEGMENTATION The demographic variables have been separately addressed to arrive at the target audience. it may be aimed at those who favor buying convenience products. upwardly mobile. These are the people who like to enjoy life and believe in traveling and adventure. Also. lollipops. one lakh. They are also willing to experiment with alternate products in place of conventional food items. fun loving type of people. 2.e. children today already have an array of cheap domestic and international confectionery (in the form of chewing-gums. during its initial launch). *5 Income: The income segmentation may be all households with an annual income exceeding Rs. 3. freaky. who are inclined towards sweeter and creamier snacks. Targeted audience may be all households that can afford a television or have access to satellite television.
it is recommended to target consumers who found traditional snacks too heavy. 5. Further. Since this segment is tipped to be the growth engine of the industry (according to industry sources – Mr. this segment is quite lucrative for a new brand launch. a core brand (concentrated strategy mentioned later) may be launched in the countline segment. Sanjay Verkey.4 % of SEC A-B have a cable & satellite connection) [All these are NRS -VI & IRS ’99 figures]. which implies 63 million people. This is a group of consumers that find traditional snacks too heavy. Bohidar) and this segment has a substantial share of the market (33%). USAGE RATE The market may be further segmented on usage rather than attitude-Anytime Anyplace Snack. There are 181 million urban individuals in India Our target segment is people living in the top 23 metros (1 million +population). anytime anyplace snack aspect needs to be established. This is the segment that tended to pick up biscuits instead-something they could munch while continuing with their schedule. Even though a range of chocolates may be offered. Hence. It is an impulse purchase and decision to buy is not pre-planned. Also.The moulded segment of the market is perceived to be the growth engine of the market. 6. TARGET AUDIENCE Following from the above. Cadbury’s India and Mr. Hence. 32 . Usage rather attitude is being used to segment. chocolate purchases have moved from being occasion-led to a casual snack. SEC A-B in these 23 metros with Cable & Satellite at home are targeted (94. This segment comprises of people who like to have chances and want to try new things. LEARNING-INVOLVEMENT The purchase of a chocolate is of a low-involvement category.
this has to be a mass contact which means that the marketer is interested in reaching a large number of people so that his product may receive optimum exposure . Moreover. there is a need for establishing contact with the target market to eventually sell the product .ADVERTISING & SALES PROMOTION When a marketer or a firm has developed a product to satisfy market demand after thoroughly analyzing the market . the best way 33 . Naturally .
therefore. The American Marketing Association.Advertising as a means of mass communication has . Marketers and firms engaged in selling their products and services throughout the country and or in other nations are fully aware of the necessity and importance of advertising . It only helps in selling through the art and business of persuasive communication . advertising promotes the sale of goods . Advertising is not a panacea that can restore a poor product or rejuvenate a decline market . made mass selling possible . images and ideas through information and persuasion . Chicago. It seeks to create an awareness about the existence of advertised product .to reach this mass market is through mass communication and advertising is one of the means of such mass communication along with such other means as publicity. It passes product in such a way that interest is created in the consumer about the product . sales promotion and public relations . As a means of forceful communication . services . It is perhaps the best known mass communication channel. defines advertising as “ ANY PAID FORM OF NON PERSONAL PRESENTATION OF IDEAS GOODS AND SERVICES BY AN IDENTIFIED SPONSOR . TYPES OF ADVERTISING: On the basis of geographical spread we have the following types advertising : (1) National (2) Local on information about the mind of the prospective 34 .” Advertising aims at drawing attention to a product.
(3) Global On the basis of target group we have the following types :(1) (2) (3) Consumer Industrial Trade (4) Professional Some more broad categories of advertising are:(1) Product (a) Pioneering (b) Competitive (c) Preventative (2) (3) (4) (5) Service Institutional Public Relations Public Service 35 .
A detailed promotion plan involving advertisement. sales promotion and public relations is proposed. in order to arouse their interest in the product. 36 .(6) (7) Financial International PROMOTION This involves communicating persuasively to the consumers.
enriched milk chocolate Fruit n Nut Positioned at Creamy Bar adults as an Roast Almond impulse anytime Nut Milk purchase Crackle .POSITIONING The positioning of the various brands in the market is listed below: CADBURY’S BRANDS POSITIONING NESTLÉ’S BRANDS POSITIONING Cadbury’s Dairy Milk “The Real Taste of Life” Classic Milk Chocolate Positioned as an affordable.self expression Bournville values attached 37 .
gifting 38 . Have a Kit Kat” Reach for the Stars Bar One Positioned as a trendy. Snacking Consumption Break/Krisp/ Double Decker “Thodi Si Pet Pooja” 5 Star-Energy Bar “Have a Break. cool anytime snack Gems/Eclairs Positioned as Butterscotch variety.5 Star / Perk Perk-Positioned as a Kit Kat Positioned as a Snacking Consumption.
Caramels/ Overtures and taste preference Nutties/All Silk Tiffins Relish The flagship brand may be positioned as a premium (see pricing) anyplace. anyplace products”. positioning should hence. 39 . so as to reinforce consumer confidence in the brands of the company. fun anytime. snacking proposition is the growth engine for the industry. since over a period of time. anytime snacks. This is also essential to counter competition. with a wide range of offering. The two drivers – Impulse purchase and need to snack. names such as Cadbury’s. Nestle have attained high levels of recognition and assurance. ADVERTISEMENT OBJECTIVES • To position the product as a “high quality brand. providing. Since. be focused on that. ADVERTISEMENT PLAN The Advertisement plan could be as under: CORPORATE OBJECTIVE: The corporate image should be built over a period of time.
society. stardust etc. *7 Electronic Media: Since the whole of target segment watch Satellite TV during prime time and advertisement will be featuring share for 3 or more time to leave an impact.P. Media Print Media: Will be the major magazines read by the target segment i. Apart from it company will be sponsoring the fun related programmers on DD and Satellite TV. yachting etc. India today. skiing river rafting. SALES PROMOTION ACTIVITIES: To induce consumers to try the new chocolate and to get the product pushed in the market the sales promotion plan should include the following: 40 . *6 P.Material induce impulse purchase.• • • • To create awareness about new flavors. Company has planned to sponsor events like 2 viz. PUBLIC RELATIONS I. II. Build corporate image To undertake competitive advertisement. Induce consumer trials. III. Company will also sponsor fun based TV programs. femina.O...e. The company will hold a press conference announcing its arrival in India and will highlight its global achievements..
the following trade promotion measures may be adopted: • Schemes such as. chocolate dispensers. The Company can announce consumer “contests” (with proof of purchase) with attractive prizes. heavy point of purchase advertising in the form of danglers. At the retail level.Trade promotion: The Company will have to offer lucrative trade promotion schemes.. Hence. supplemented by an advertisement campaign. may be used. Money Savers 3. comics etc. These include incentives to stockiest for pushing the sale of chocolates. since sales are impulse /casual driven. etc. 2. 4. POINT OF PURCHASE MATERIAL POP is of extreme importance. on return chocolate wrapper. This is so. Window Shelf space may be purchased outright. Consumer Promotion: Some of the consumer offers that could be introduced are: 1.000 worth of chocolates. Chocolates in a toy truck etc. in order to push primary sale. to a product category like this. a certain percent off on the purchase of Rs 5000 or Rs 10. DIRECT COMPETITION 41 . • • A box of chocolates free with every dozen purchased. Shop Displays/Vizzy Coolers –linking them to sales Apart from these. Free gifts like pen.
42 . In all the segments i. Cadbury’s and Amul in the Indian Chocolate market. Cadbury planned to pump in Rs. In 1997. Besides CDM Cadbury’s has a number of endorser brands such as Fruit’n’Nut. Brief profile of the same has been entailed below: CADBURY’S INDIA LTD. has been in India since 1948. increase in the excise duty and a fall in the demand inspired the idea of repositioning. the oldest of Cadbury’s brands was launched in 1956. Mithuri and Kolapur. it is undoubtedly the market leader. 5 Star. Even though contribution of these brands to the company’s bottom-line is very small. CADBURY & AMUL At present there are three major players Nestle. Its brands: Dairy Milk. In the early 90s. count chocolates and panned chocolates.e. a rise in the prices of cocoa.80-crore to up production capacity at a couple of Cadbury’s factories.NESTLE. This cash is exactly double of what’s been invested in 1996. Cadbury’s has its manufacturing units at Thane (Mumbai).THE FLAGSHIP BRAND CDM. they are required in order to make a complete portfolio of offering. Cadbury’s India Ltd. Gems and Chocolate Éclairs are the households names in India today. It has a strong distribution network with about 500 distributors in North India and more than 3 lac retail outlets being serviced all over India. moulded chocolates. This was reactionary to the launch of Kit Kat and has been able to counter competition. Malanpur. The Company launched Perk. CADBURY’S DAIRY MILK (CDM) . Two years in the process after relaunch Cadbury’s Dairy Milk’s market share stood at 25 percent with sales rising by an average 40 percent per annum. Nut Milk etc. a wafer enrobed chocolate in 1995. Campco initially tried to break into market but failed. Indori(near Pune).
Cadbury’s Éclairs. 43 . Perk and the latest of its offering Picnic (which has drawn a good response in the market). as a growth sector. Five Star. The Company has also identified sugar confectionery. Cadbury’ Gems.The Company developed a concentration strategy on CDM. It’s first offering Googly.
It has been common to suggest that companies identify its strengths and weaknesses as well as opportunities and threats in the external environment. An 44 . ‘O’ stands for opportunities and ‘S’ stands for strengths. To systematize these choices. ‘T’ stands for threats. the SWOT matrix has been proposed.SWOT ANALYSIS The SWOT Analysis shows the relationship between critical variables of the company. ‘W’ stands for weaknesses. The SWOT matrix is a conceptual framework for a systematic analysis that facilitates the external threats and opportunities with the internal weaknesses and strengths of the organization. A marketing opportunity is aware of buyer need in which a company can perform profitably. But what is often overlooked is that combining these factors may require distinct strategies choices. The SWOT matrix has a wider scope.
environment that would lead. An ideal business is high in both major opportunities and low in major threats. The SWOT matrix starts with the threats because in many situations a company undertakes strategic planning as a result of a perceived crisis. in the absence of defensive marketing action. to deterioration in sales or profit. problems or threats. A mature business is low in opportunities and high in threats. A speculative business is high in both major opportunities and threats. 45 .
Distributions are highly dedicated towards performance & experience.STRENGTHS High brand equity ……… consumer & dealer regarding Nestle' as company delivery quality product. Strong base in monitoring & controlling market. Company processes an extensive powerful distribution network. Company processes a dedicated & experienced sales staff. 46 .
Maggi and Nescafe. support with 51% of equity share holding. 25/. Idealization of products to suit local tastes are critical for success and NIL is converting its international products into Indian tastes products.State of the Art Technology and production systems ensuring high technological/high value and optimum cost advantage to its product portfolio.A. priced within Rs.so that they are afforded by most of the people easily. Milo. Polo. advertised and promoted according to regional culture and values and is available to most of the consumers easily. at their nearby shops. This is one of the major strengths of the company. NIL . Nestle India Limited (NIL) has a very strong parent company Nestle S. NIL's milk products sold under Milkmaid and Everyday brands are market leaders. NIL most of the products are being produced according to Indian tastes. Nestle has altogether 570000 outlets in more than 3000 towns. NIL has strong brand value in other products like Kit-Kat. which is the world's largest food company. 47 .
Warehousing norms are not followed which account for increased breakage.WEAKNESSES Company takes time in handling return claims on authorized whole seller. Yearly initiatives are not so motivating. Restricted website minimizes marketing opportunities. 48 .
The profits of NIL are also reduced because of increased Royalty payments that NIL is making to its parent Nestle. Proof financial distribution as the NIL is unnecessarily giving its shareholders high dividend. NIL's products range is so large that it is not able to give proper attention to all the products. NIL factories are not to meet the demands of products with the supply. Milo is not given much of promotion. Even its M. A high percentage of turnover and profits coming from a few products categories like Coffee/Maggi. Recently.A. The higher royalty payments are made on account of new international brands launched by NIL in India.a glucose rich energy drink. their marketing strategies are not properly worked out as many of its products are dieing. which could be avoided and be used for investment in plants for capacity. Bonus. 49 . NIL has been in India since last 39 years yet its growth has been very slow. there are difference between the Nestle S. After the opening up of the economy. Nesfit . it has started growing but till then it did not launched much products. parent company and Nestle India Limited and because of this there are in the top management of the NIL. There was an embarrassing starter like Nestea an iced tea. Ardeshin has also resigned.D Daravis E. Switzerland.
50 . Growing middle class is increasing opportunities. Mass market is growing with established performances.OPPORTUNITIES Great quality.
51 . Credit facility given to dealers. tastes and psychology of the Indian consumer and so it can easily develop Indianised products that will be acceptable to the Indian consumer. values. As NIL has been in India since last 39 years. Low differentiation in market brands. it has understood the culture. Great taste. NIL has lot of opportunities of launching and selling new products and earning a record profit from this country. India being the second most populated country in the world. Food industry is the second highest growing industry in India and offers a lot of opportunities for NIL in India.
café coffee day.THREATS Tough competition especially in premium segment. 52 . Characteristics of premium segment that it is never brand loyal. Tough competition (indirect) with barista.
Since most of these products would be fighting it out with their global competitors and then Indian counterparts on the Indian turf. Horlicks. Perk. Milo vs. Kit-Kat vs. It duels with Top Ramen in the instant noodle market. 53 . Complan and Bournvita. Polo vs. Mere availability of best sellers from the parent’s portfolio does not guarantee a winner. Mithai Mate (launched by Amul at a staggering 60% discount to the market leader). Milkmaid vs. Minto. It faces fierce competition in almost all the segments it participates in like.
While as 54 . descriptive and inductive forms of research. The qualitative approach applies to both.RESEARCH METHODOLOGY 1. RESEARCH METHODOLOGY I have carried out a research which is both qualitative and quantitative in its support.
customer satisfaction. product. the responses received were be grouped together. an extensive use has been made of the literature available to carry out a detail research on the nature of the problem. This is essential for a scientific study and for ensuring that we have all relevant data for making contemplated comparisons and analysis. the primary sources and the secondary sources of data in collecting information. I have conducted a graphical analysis based on the responses received from the persons questioned and interviewed. To have a good image in the eyes of retailers. SECONDARY DATA The secondary source of data includes relevant literature including periodicals and journal articles in the areas of Marketing. after collection. 55 .in case of quantitative approach. I have made use of both. (2) Information given by researcher is not always right. and a graphical presentation and analysis has been made for every set of questions. (3) It takes lot of time to research the data. has to be processed and analyzed in accordance with the outline laid down for the purpose at the time of developing the research plan.1 Method of data collection & analysis The data. 1. LIMITATIONS (1) Research is conducted in Bareilly. Once the interview was over. I have chosen Nestle as the target company for my research study.
ANNUAL REPORT OF NESTLE Financial Results and Operations (Rs In Millions) 2010 Gross Revenue 2009 62.974 51.672 56 .
612 3.205 772 619 6.345 3.94 57 .001 7.264 8.) 84.620 103 323 9.91 3.205 795 655 1.560 1.Profit before Interest Impairment.471 1.610 Impairment Loans on Fixed Assets (Net) Provision for Contingencies (Net) Provision for Tax Net Profit Profit Brought Forward Balance Available for Appropriation Interim Dividends Final Dividend Proposed Corporate Dividend Tax Transfer to General Reserve Surplus carried in Profit and Loss Account Key Rates Earnings per Share (Rs.646 14 164 3.187 2.471 1.425 1. contingencies and taxation Interest 11 11.425 67.551 9.
50 48.50 58 .Dividend per Share (Rs ) 48.
974 2010 59 .FINDINGS (1) REVENUE 51.672 2009 62.
(2) PROFIT 6560 2009 8187 2010 60 .
(3) LOSS 2009 1425 2010 3345 61 .
RECOMMENDATIONS RECOMMENDATIONS (1) Employees should be trained according to the changing standards of the organization. 63 . (2) Company should conduct survey from time to time to according to which changes can be introduced in the organization to stay updated in the market.
(3) They should introduce creativity into the work.market and how to deal customers in the market. I got an enriching experience about selling and how to convince the customer to buy the product. Company like NESTLE gave me an exposure about the nature of customers and market and how to deal 64 . (4) Company should provide incentives to employees. CONCLUSION During the project. so that the employees can do their work active mindedly.Study on NESTLE gave me an practical experience about nature of customers.
65 .with customers.
moneycontrol.google.BIBILOGRAPHY INTERNET SITES * * www.nestle.com 66 .in www.com * www.
BOOKS MARKETING MANAGEMEMT BY PHILIP KOTLER 67 .
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