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SUMMER TRAINING PROJECT REPORT

ON

MARKETING AND ADVERTISING STRATEGIES OF


NESTLE

Submitted in Partial Fulfillment of the Degree of BBA, Guru


Gobind Singh Indraprastha University, Delhi
UNDER THE GUIDANCE OF SUBMITTED BY:
PUJA SAREEN VIKAS
(INTERNAL GUIDE) ENR NO. 10310601710
BBA (G)
Ansal Institute of Technology
Gurgaon

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EVALUATION CERTIFICATE

This is to certify that the project titled Advertising and Marketing

Strategies of Nestle, Mr. Vikas, a student of BBA of Ansal Institute of

Technology to GGSIP University, Delhi has been examined by the following

Internal Examiner External Examiner

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ACKNOWLEDGEMENT

An individual alone cannot do project of this scale. I take this opportunity to express my
acknowledgement and deep sense of gratitude to the individuals for rendering valuable
assistance and gratitude to me. Their inputs have played a vital role in success of this
project.

I express my sincere thanks to my project guide Ms. Puja Sareen (Internal Guide) for
their generous support, constant direction and mentoring at all stages of project.

I take this opportunity to thank all dealers, customers who spared their precious time to
provide me with valuable inputs for project without which it would have not been possible.

I firmly believe that there is always a scope of improvement. I welcome any suggestions
for further enriching the quality of this report.

VIKAS

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EXECUTIVE SUMMARY

The main aim of studying marketing and advertising strategies of nestle is to provide solid
foundations that are useful for explanation, prediction and control of the business activities.

Every organization needs to have clear marketing objectives and the major route to
achieving organizational goals will depend on strategy. Developing a strategy involves
establishing clear aims and objectives around which the framework for a policy is created.
Having established its strategy, an organization can then work out its day-to-day tools and
tactics to meet the objectives. The success of any business entity solely depends on how
effectively it utilizes its optimum resources. The company should always be ready to make
necessary changes according to the requirements, in order to attract more customers so as
to maintain a substantial growth in the market.

This report also includes the market mix of the product. All the 4Ps of marketing mix for
the product has been discussed and explained to reveal the significance of its pricing,
product, placing and advertising strategies along with the strength and weaknesses of the
organization. Secondary data is the most of important for our research and I contributed in
the area such as group or segment those types of potential customers that are most likely to
benefit from their product line. It also includes business principles of the organization.

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Table of Contents

S.NO PARTICULAR PAGENO.

01 Introduction 6-7

02 Objective of the Study 8

03 Scope of the study 9

04 Literature Review 15-18

05 Company Profile and marketing strategy 19-42

06 Research Methodology 43-44

07 Data Analysis 45-57

08 Conclusion & Recommendation 58

09 Limitations 59

10 Bibliography 60

11 ANNEXURE 61-63

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INTRODUCTION
Nestle India Limited is one of the fastest growing FMCG Company with its strengths for
ongoing product innovation & renovation. It performs very well. It still have a stiff
competition in the market for its various products especially from HUL - Bru Coffee for
Nestle's Nescafe Sunrise Premium Coffee.

Marketing is the process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services to create exchanges that satisfy individual and
organizational goals. While strategy is the action plan to do something and hence,

Marketing Strategy is the managerial process of developing and maintaining a viable fit
between the organizations objectives, skills and resources and its changing market
opportunities. The aim of marketing strategy is to shape the companys business and
products so that they yield targeted profit growth.
Promotion is the very important and crucial element of marketing strategy as through it the
company establishes its image in the minds of the customers. Nestle India is promoted by
using different ways of promotion. Advertisement of Nestle India is done through TV,
radio, billboards, newspapers and magazines. Nestl also conducts the tradeshows,
concerts, events, sponsorships, and discounts for sales promotion. For establishing public
relations, Nestl distributes its newsletters, annual reports, calendars and diaries, lobbying,
donation for charitable and civic events.
The firm applied a progressive human resource and social policy; with a management style
that is based on management commitment and people involvement. Moreover, the firm had
responsible corporate citizen, fulfilling obligation to government, shareholders, customers,
communities and consumers. Protest the environment by being committed to

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environmentally sound business practices and taking into account the need to preserve
natural resource and save energy. For example, guarantee that all products manufactured,
imported and distributed by Nestle Malaysia are certified HALAL by authorized Islamic
certification bodies. Perhaps, the firm delivered shareholder value through the achievement
of sustainable and profitable long-term growth. Its a wide area research the branding.
Branding strategy is corporate. Part of the branding strategy is the brand plan for each
product. This is an integrated strategy. The brands of Nestle are a key strength but the
executive levels are very aware today that brands alone are not enough to win.

From its beginning, Nestle developed its business internationally and became aware of the
fact that food products have to be closely linked to local eating and social habit. That is
why Nestle form the very start has always shown respect for diverse cultures and
traditions. Nestle activities to integrate itself as much as possible into the cultures and
traditions where it is present, adding also to the local environment its own set of values.
Therefore, Nestle embrace cultural and social diversity and does not discriminate on the
basis of origin, nationality, religion, race, gender or age. Furthermore, Nestle believes that
is activities can only be of long term benefit to the company if they are the same time
beneficial to the local community. Precisely, the environment is changing very rapidly and
in particular customers are looking for answer to their concerns.

To our opinion, global thinking and strategies can best be expressed through local action
and commitment as showed as Nestle Malaysia. And of course, Nestle applied think
globally act locally as well as thinking out of the box idea in their product and distribution
with the help of strategic global marketing.

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OBJECTIVE OF STUDY

To study the current market condition, track the performance and lay down the
strategies for successful marketing of Nestle.

To examine the marking strategies of Nestle India to tackle the stiff competition

To examine the effectiveness of advertising strategies of Nestle.

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SCOPE OF THE STUDY

India is on the move and so are the markets in India. Apart from economic changes, India
is also facing social changes like changes in life style, hobbies etc. New fashions,
Adventures holidays, etc. are in today.

Further, food habits of Indians are changing rapidly. Chocolates which were believed to
be kids preference are now being consumed by kids, teenagers, and adults. Chocolate
market in India is growing at a fast rate annually.

To take advantage of the growing market, international confectionery companies are


getting ready to woo the proverbial Indian Sweet tooth. An influx of worlds leading
Chocolate players is expected.

Further, since Confederation of Indian Industry (CII) is a representative body of the


Indian Industry, it receives its inquiries for pertinent marketing information from various
domestic and international players, who want to invest in India.

In the above context, the prime objective of this report is to prepare a marketing plan for
any brand that is planning to enter the Indian Market, based on the study conducted on
Nestle.
LITERATURE REVIEW

Marketing strategy

A marketing strategy is a process that can allow an organization to concentrate its


limited resources on the greatest opportunities to increase sales and achieve a sustainable
competitive advantage. A marketing strategy should be centered around the key concept
that customer satisfaction is the main goal.

TYPES OF MARKETING STRATEGY

One of the most important concepts of the marketing planning process is the need to
develop a cohesive marketing strategy that guides tactical programs for the marketing
decision areas. In marketing there are two levels to strategy formulation:

General Marketing Strategies


Decision Area Strategies

GENERAL MARKETING STRATEGIES

These set the direction for all marketing efforts by describing, in general terms, how
marketing will achieve its objectives. There are many different General Marketing
Strategies, though most can be viewed as falling into one of the following categories:

Market Expansion
Market Share Growth
Niche Market
Status Quo
Market Exit

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DECISION AREA STRATEGIES

These are used to achieve the General Marketing Strategies by guiding the decisions
within important marketing areas (product, pricing, distribution, promotion, target
marketing). For example, a General Marketing Strategy that centres on entering a new
market with new products may be supported by Decision Area Strategies that include:

Target Market Strategy employ segmenting techniques


Product Strategy develop new product line
Pricing Strategy create price programs that offer lower pricing versus
competitors
Distribution Strategy use methods to gain access to important distribution
partners that service the target market
Promotion Strategy create a plan that can quickly build awareness of the
product

MARKETING STRATEGY OBJECTIVES

Increase product awareness among the target audience by 30 percent in


one year.
Inform target audience about features and benefits of our product and its
competitive advantage, leading to a 10 percent increase in sales in one
year.
Decrease or remove potential customers' resistance to buying our product,
leading to a 20 percent increase in sales that are closed in six months or
less.

If you have multiple objectives, make sure they are consistent and not in conflict with
each other. Also, be sure that the remainder of your marketing plan components - the
marketing strategy, budget, action programs, controls and measures - supports your
marketing objectives.

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Setting your marketing objectives and finalizing the remaining components of your
marketing plan may serve as a reality check: Do you have the resources necessary to
accomplish your objectives?

The marketing strategy section of your plan outlines your game plan to achieve your
marketing objectives. It is, essentially, the heart of the marketing plan. The marketing
strategy section should include information about:

Product - your product(s)and services


Price - what you will charge customers for products and services
Promotion - how you will promote or create awareness of your product in the
marketplace
Place (distribution) - how you will bring your product(s) together with your
customers.

LIMITATION OF MARKETING STRATGY


leads to faulty marketing decisions based on improperly analyzed data
creates unrealistic financial projections if information is interpreted incorrectly

PRICING STRATEGY

Having defined the overall offering objective and selecting the generic strategy one must
decide on a variety of closely related operational strategies. One of these is how one will
price the offering. A pricing strategy is mostly influenced by the net income. There are
three basic strategies one can consider.

A SKIMMING STRATEGY:

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Where the offering has enough differentiation to justify a high price and one desire
quick cash and have minimal desires for significant market penetration and control,
then one sets the prices very high.

A MARKET PENETRATION STRATEGY:

Where near term income is not so critical and rapid market penetration for eventual
market control is desired, then one must set the prices very low.

PROMOTION

To sell an offering one must effectively promote and advertise it. There are two basic
promotional strategies, PUSH and PULL.

THE PUSH STRATEGY:

It maximizes the use of all available channels of distribution to "push" the offering
into the marketplace. This usually requires generous discounts to achieve the
objective of giving the channels incentive to promote the offering, thus minimizing
the need for advertising.

THE PULL STRATEGY:

It requires direct interface with the end user of the offering. Use of channels of
distribution is minimized during the first stages of promotion and a major
commitment to advertising is required. The objective is to "pull" the prospects into
the various channel outlets creating a demand the channels cannot ignore.

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COMPANY PROFILE

FMCG refers to consumer non-durable goods required for daily or frequent use.
Typically, a consumer buys these goods at least once a month. The sector covers a wide
gamut of products such as detergents, toilet soaps, toothpaste, shampoos, creams,
powders, food products, confectioneries, beverages, and cigarettes

Typical characteristics of FMCG products are:


Individual items are of small value. But all FMCG products put together account for a
significant part of the consumer's budget.

The consumer keeps limited inventory of these products and prefers to purchase them
frequently, as and when required. Many of these products are perishable.

The consumer spends little time on the purchase decision. Rarely does he/she look for
technical specifications (in contrast to industrial goods). Brand loyalties or
recommendations of reliable retailer/ dealer drive purchase decisions.

Trial of a new product i.e. brand switching is often induced by heavy advertisement,
recommendation of the retailer or neighbours/ friends.

These products cater to necessities, comforts as well as luxuries. They meet the demands
of the entire cross section of population. Price and income elasticity of demand varies
across products and consumers.

The FMCG sector has been the cornerstone of the Indian economy. Though, the sector
has been in existence for quite a long time, it began to take shape only during the last
fifty-odd years. To date, the Indian FMCG industry continues to suffer from a definitional
dilemma. In fact, the industry is yet to crystallize in terms of definition and market size,

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among others. The sector touches every aspect of human life, from looks to hygiene to
palate. Perhaps, defining an industry whose scope is so vast is not easy.

After witnessing booming sales and flooding markets with innumerable products, FMCG
companies have had to abruptly apply the brakes and look for various ways to save costs.
MORE THAN RS. 43,000 crore (listed companies) FMCG industry in India, which has
been on a roll for many years, faces tough times ahead, although many segments still
shows good growth.

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.

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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.

PRODUCT

Quality is the essential ingredients in all of our brands and the reason why millions of
people choose Nestls products every day. Our consumers have come to trust in Nestls
commitment to excellence and turn to Nestle brands to maintain nutritional balance in a
fast paced world.

BABY FOODS

The production of infant food goes right back to the origins of the Nestle Company. Henri
Nestls `Farine Laces was the first product to bear the Nestle name. In 1867 a physician
persuaded Henri Nestle to give his product to an infant who was very illhe had been
born prematurely and was refusing his mothers milk and all other types of nourishment.
Nestls new food worked, and the boy survived from the very beginning, Nestle' product
was never intended as a competitor for mothers milk. In 1869, he wrote; During the
first months, the mothers milk will always be the most natural nutrient, and every mother
able to do so should herself suckle her children. The factor that made baby foods success
in the early days of the Nestle' companyquality and superior nutritional valueare still
as valid today for the wide range of infant of infant formula, cereals and baby food made
by Nestle'. The World Health Organization (WHO) recognizes that there is a legitimate
market for infant formula, when a mother cannot or chooses not to breast feed her child.
Nestle' markets infant formula according to the principles and aims of the WHO

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International Code of Marketing Breast Milk Substitutes, and seeks dialogue and
cooperation with the international health community and in particular with the WHO and
UNICEF, to identify problems and their solution. Nestls expertise as the worlds leading
food manufacturer.

Gained over more than 125 years, is put the disposal of health authorities, the medical
profession and mothers and children everywhere. Milk based products and baby food
contributes to 34% of Nestls turnover. For ensuring regular procurement of good
quality milk, Nestle' has developed a network around its Moga factory for collection of
fresh milk everyday from the farmers. Nestle' has a dominating 87%market share in the
baby weaning foods with its Cerelac and Nestum brands. Infant milk powder is sold
under the Lactogen and Nestogen brands. Brand loyalties are very high in categories
such as infant food and weaving cereals, enabling the company to command a price
premium.

DAIRY BRANDS

Nestle has long been a major player in the dairy industry, originally with well known
shelf stable brands such as Nido, Nespray, La Lechera and Carnation, then building a
strong international presence in Chilled dairy and Ice cream under the Nestle' brand.
Innovation and renovation play a major role in the development of milk based products as
well as of breakfast cereals, managed as a joint venture with General Mills. The area of
nutrition, with its benefits to health and wellbeing, is having a significant impact on the
development of our business. A wide range of proven, science based solutions such as
starter and follow-up formulas, growing-up milks, cereals, eternal diets, oral supplements
and performance foods are actively developed and successfully brought to market under
the Nestle' brand.

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BREAKFAST CEREALS
Although cereals have been with mankind in form or another for millennia, it was not
until the mid 19th century that scientific research, technological innovation and then
influence of a group of American health reformers, gave rise to the currently foodstuff we
know today as breakfast cereal. Nestle' has a joint venture with General Mills outside
North America, Cereal Pardoners Worldwide, which is active in more than 80 countries.
The joint venture began in 1990 and its rapid growth has been characterized by branding
and lately the launching of breakfast cereal brands into the fast-growing cereal bar
market.

ICE CREAM
There are many myths and stories as to the invention of ice cream: was it Macro Polo
who brought it back from China (along with pasta)? Probably not, considering he most
likely never visited China. The story of its popularity is however connected with the
invention of technology to make it on an industrial scale and to keep it cold once made.
Before refrigeration techniques, food was frozen with the aid of ice mixed with salt
which was either stored in ice house or shipped from cold countries. But then at the end
of the 19th century, both making and freezing it became easier and together with the
invention of the ice cream cone made the product boom. Today the United States is the
absolute leader in terms of volume consumed but the highest per head consumers are in
New Zealand. Flavors youd never thought of and yet theyre commercially available:
Sorbets- Smoked Salmon, Tomato, Cucumber Ice-Creams Garlic, Avocado, Sweet
Corn.

CHOCOLATE & CONFECTIONARY

The story of chocolate began in the New World with the Mayans, who drank a dark brew
called cacahuaquchtl. Later, the Aztecs consumed chacahoua and used the cocoa bean for
currency. In 1523, they offered cocoa beans to Cortez, who introduced chocolate to the
Old world, where it swiftly became a favorite food among the rich and noble of Europe.

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From the beginning, turning raw, bitter cocoa beans into what one 17 th century writer
called the only true food of the gods has been a fine art, a delicate mixture of alchemy
and science. Centuries ago it was discovered that by fermenting and roasting the beans,
an almost otherworldly flavor could be created. In 1875, after years of trying, a 31-year
old candy madder in Vevey named Daniel Peter figured out how to combine milk and
cocoa powder. The result milk chocolate. Peter, a friend and neighbor of Henri Nestls
started a company that would quickly become the worlds leading maker of chocolate.
For three decades the company called Peter, Cailler, Kohler relied on Nestle for milk and
marketing expertise. In 1929, the almost inevitable merger took place as Nestle acquired
Peter, Cailler, and Kohler. Indian chocolate market is growing day by day. Premium
segment is opening upon. The companies like Cadburys are launching indigenous
product made to international standards of the 20,000 tonnes chocolates market worth
about Rs 400 crore, Cadburys accounts for around 65% of market share followed by
Nestls around 23%. Amul has 5% of the share, with the minor players taking the Rest.
5 STARS: As energy bar, earlier targeted to teenager, before launch of perk 5 star energy
bar positioning made it snacking chocolate with Nestle' pitching Bar-one in 1993 gaian it
For those in between times.
MUNCH: Munch is the market leader in the chocolates. It is the largest selling chocolate
in India & is followed by Cadburys Dairy Milk.
ECLAIRS: competing in the chewable toffee segment, Eclairs was relaunched by
Cadburys during the mid-90 with a new name milk-eclairs. Its worth is 4000 tones now.
Nestle' also presents here NESTLE' ECLAIRS. Due to launch of multigrains Cadbury
can not pay attention to brands like Mr. Pop Candy Lollypop.
KIT-KAT: Kit- Kat which was launched in India in 1995, today leads the chocolate
coated wafer bars category. It has 11.5% share of chocolate market. But Cadburys perk is
with9%.

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PRODUCT PRICE WEIGHT
KIT- KAT Rs. 14 36 gm.
PERK Rs. 10 2x17.5 gm.

Nestle' forayed into chocolate & confectionary in 1990 and has cornered a fourth share of
the chocolate market in the country. The category contributes 14% to Nestls turnover. It
has expanded its products range to all segments of the market the Kit-Kat brand is the
largest selling chocolate brand in the world. Other brands include Milky Bar, Marbles,
Crunch, Nestle Rich Dark, Bar-one, Munch etc.

Amul is also competing in this category especially in western regions of India. But
Nestle' still has its own position in the market. The sugar confectionary portfolio consists
of Polo, Soothers and Frootos. All sugar confectionary products are sold under the
umbrella brand Allens. Nestle' has also markeys some of its imported brands like Quality
Street, Lions and After Eight. New launches such as Nestle Choco Stick and Milky Bar
Choo at attractive price points to woo new consumers chocolate confectionary sales
registered a strong 21.5% of growth in 2005 aided by good volume growth in Munch,
Kit-Kat and Classic sales. Nestle' relaunched Bar-One during the year 1993.

PREPARED FOODS

Convenience foodspackaged soups, frozen meals, prepared souses and flavorings----


date back more than a century. With the industrial revolution came factory jobs for
women and less time to prepare meals. The problem was so widespread that it became the
object of intense study in 1882 by the Swiss Public Welfare Society, which offered a
series of recommendations, including an increase in the consumption of vegetables. The
society commissioned Julius Maggi, a miller with a reputation as an invention and
capable businessman, to create a vegetable food product that would be quick to prepare
and easy to digest. The results two instant pea soups and an instant bean soup --- helped
launch one of the best known brands in the history of the food industry. By the turn of the

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century, Maggi & Company was producing not only powdered soups, but bouillion
cubes, sauces and flavorings.
Maggi merged with Nestle' in 1947.
Buitoni the authentic Italian brand, which has been producing pasta and sauces in Italy
since 1827, became part of the Nestle' Group in 1988.
Ready to cook food/ cooking aids are sold under the umbrella brand name Maggie.
Culinary product account for about 14% of Nestls turnover. Maggie is the market leader
in the noodles (45% market share), the Ketchup (43% market share) and soups (41%
market share) categories.
Other products sold under the umbrella brand Maggie, are ready-to-cook gravy/sauces,
soups, seasonings, as well as traditional Indian foods such as pickles and instant snack
mixes (dosa mixes). New taste variants are continuously launched to add variety to the
product offerings.
HLL, Heinz, Knor & Indo Nissin Foods are Major competitors in this category. Gits
mixes, Top Raman, Hot serve, are some products that are in competition to products
under Maggie brand. But Maggie has used Quick and Easy cooking as its Unique Selling
Preposition that worked to distinguish the Nestle' to lie ahead than all brands. HLL as
brand Wagon is the part of our daily life uses creative selling prepositions to maintain its
position as the top FMCG firm in India. Its marketing strategies (including launch,
pricing & distribution strategy are good enough to shatter the competition, so Nestle' is
working as an early worker to remain and lead in the market. The distribution network of
Indo Nissin food is strong enough & it has covered a large portion of market in very short
time. Its distribution network is not very long & the prices are also low. The company had
adopted a low budget promotional strategy and is very fine at merchandising. These all
are working together for the good of the company. Nestle' has the advantage of great
brand image & it is actually working for maintenance and growing it.

BEVERAGES

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In 1937, Nestle' scientists perfected a powered coffee product that was introduced in 1938
under the brand name Nescafe- the worlds first commercially successful soluble coffee.
It became so popular during World War II that for one full year the entire output of the
Nescafe plant in the United States (more than one million cases) was reserved for
military use only. Since then, Nescafe has become one of the worlds best-known brands.
In addition, Nestle' is a major producer of chocolate-based and malted drinks.
Its leading brands, Nesquik, Milo and Nescau are very popular with a growing number
of young people around the world. Nestle' ready-to-drink beverages Nestea and Nescafe
are sold in various forms (cans, bottles). These are distributed by Nestls join-venture
with the Coca-Cola Company, Beverages Partners Worldwide. Nestle' is also present in
fruit juices (Libbys) as well as espresso coffee in capsules (Nespresso).

Beverages like coffee, tea and health drinks contribute to about 30% of Nestls turnover.
Beverages sales registered a 155 yoy growth during 2005. while about 14% of sales come
from domestic market, exports contribute to about 16% of sales. Nestle' Nescafe
dominates the premium instant coffee segment. Nestls other coffee brand Sunrise has
also been relaunched under the NESCAFE franchise to leverage on the existing equity of
the brand. Nestle' has focused on expanding the domestic market through price cuts and
product repositioning. However it has been losing share in the domestic market, where it
has a 37% market share. The major competitors are Coca-Cola, which launched coffee &
tea under brand name Georgia in 2002. Its tea in four flavors which are classic, Adark,
Masal & Elaichi and coffee in three variants Classic, Cappuccino & Mochaccino to suit
the taste of customer. They adopted the strategy to distribute vending machine to even
small retailer so as to cover a large market. Tata coffee also Works against Nestle'. But n
is still the market leader in terms of market share, Customers choice & quality. Milo,
brown-malted beverages was launched in 1996. It has an estimated volumes share of
about 35 in the malted food drink segment. Cadburys Bournvita & HLL with Boost are
the major players in the market along with Milo. Bournvita is with largest market share of
35%. The promotional strategies of Nestle' for Milo are working fast for the good of

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Milo. Nestle' has launched non-carbonated cold beverages such as Nestea Iced Tea and
Nescafe Frappe during 2002.

BEVERAGES
Nestle' Food Services provides food and beverages professionals with a wide selection of
branded products. Our solutions meet the growing opportunities to service consumers in
out-of-home channels.
Beverages solutions featuring well known consumer brands such as Nescafe, Nestea and

Nesquik as well as host professional brands including Minors, Chief and Davigel are

part of the diverse portfolio of Nestle' Food Services. Working to meet the need of Food

Service operators across a wide spectrum of business channels such as quick service

restaurants supports our commitment to giving consumers the brands and quality they

come to expect and rely on in the home as well as out of the home.

BOTTLED WATER

Nestle' began its entry into the water business in 1969 with a 30% stake in the owners of
the Societe Genele Des Minerales De Vittal. It acquired a controlling interest in
SGEMV in January 1992, and went on in May of the same year to buy the entire Perrier
Group.
In 1992, Nestle' was the first company to dare to launch a mineral water, Valvert, in five
different countries at once. Its originally lied in the use of an all-new plastic, P.E.T.
(Polyethylene teraphthalate), which is stronger and more elastic than the PVC used since
1968. Besides P.E.T. is recyclable.
By the end of 1997, the group was present on every continent, and the purchase of San
Pellegrino gave it the leadership in the Italian market. In 1998 f or the first time in its
history, Nestle' associated its name with bottled water: Nestle Pure Life.
The brand was launched in Pakistan and soon appeared in Brazil, followed by Argentina,
Thailand and Philippines, China and Mexico in 2000. in 2001 India, Jordan, and Lebanon
followed and in 2002, Egypt, Uzbekistan and then United States.

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Nestle Pure Life is drinking water that has been treated and rematerialized using a
standardized industrial process to ensure purity and quality and is marketed in emerging
countries. A second product with the Nestle' name was launched in May 2000, this time
in six European countries: Nestle Aquarelle. A natural spring water currently from nine
different springs in France, Germany, Belgium, Hungry, Italy and Spain, Nestle' Aquarel
also uses the multi-source concept to satisfy new consumer expectations, especially for
water with a low mineral content that the whole family can drink. In April 2002, the
group changed its name to Nestle' Waters, a token of Nestle' decisive commitment to the
bottled water market, which now represents 9% of its sales. Today, Nestle' Waters is
established in 130 countries and markets about 70 different brands. The group is able to
offer top quality brands ad innovative packaging to meet the individual needs of the water
consumer all over the world, whenever, wherever and however thanks to the wide variety
of its offer in terms of distribution and product mix.

PETCARE

Nestle' entered the pet care business with the purchase of carnation in 1985, and we
consolidated our position in Europe with acquisition of the spillers brand in 1998, and
further with the acquisition of Ralston-Purina in 2001 creating Nestle' Purina Pet Care.
Carnation for its part developed the Friskies brand in the United States in the 1930s and
in selected markets in Europe and Asia since the 1960s. Today Nestle' is well-positioned
with a balanced portfolio of internally developed and recently acquired brands.
Technologies to develop and add value continually for pets and their owners are
engineered into our current product range. These include state-of-the-art nutritional
innovations, such as products which help maintain feline urinary tract health or
innovations for the most discriminating of pets and their owners. Nestle' has already
become an industry leader and we continue to develop our international presence.

CONSUMER SERVICES

29
At Nestle' we are committed to offering consumers high-quality food products that are
safe, tasty and affordable. The Nestle' seal of guarantee is a symbol of this commitment.
We also believe in maintaining regular contact with our consumers. This applies both to
how we present our products and to how we address our consumers questions and
concerns. When Henri Nestle' prepared his first boxes of infant formula for sale, he put
his address on the packages so people would know where to go if they had questions.
Today our consumer relationship panel with the words Talk to Nestle' expresses the
same commitment. This is why we have a worldwide Nestle' consumer services network
devoted to caring for our consumers. Our people have expertise in a wide range of areas
such as nutrition, food science, food safety and culinary expertise. They provide the
prompt, efficient and high quality service that consumers expect from Nestle'. In addition
we teach them talk with consumers and above all, to listen. Listening helps us to
understand what people want. Nestle' uses the insights gained from relationships with
consumers to driver product development. At Nestle' we care for our consumers because
our success depends on meeting their needs and expectations. Through listening and
understanding we can make products that they will want to use all through their lives.

PROMOTION
Promotion is an attempt to influence customers. Its aim is inform & remind the
prospective consumers of the companys offer & to advocate the cause of its production
in the minds of its audience. Thus informing, reminding & advocating about the
companys product are real purpose of the promotion component of the mix.
NIL has rightly understood the production of a good product is not enough to ensure
success in the market, unless target customers are aware of its existence, features and
products. So company has framed a very strong and very wide communication plan.

ADVERTISING

30
NIL is associated with MUDRA advertising company in India. It has properly studied the
market and developed the commercials in several languages. NIL has booked spot for the
advertising in almost all the channels.

EXHIBITIONS & TRADE SHOWS


It also participates in trade shows & exhibitions.
IN 1997, at Jawaharlal Nehru Stadium in an exhibition NIL displayed its all old and new
products. This was the time when MILO was launched in India.
AHARA 97, Here Nestle' India Ltd. presented its wonderful world of Nestls recipes
along with its products. It also exhibited the various to make Maggie tastier. This shows
that Nestle' never leave its product even if it is market leader & is the good source of its
revenue.
FOOD EXPO 98, organized by CII & attended by over 100000 people. The Mumbai
branch of NIL ensured high visibility for its products like products under Maggie brand,
MILO & chocolates by setting the venue ablaze with Nestls hues Vic banners,
umbrellas posters & product displays.
INTERNATIONAL FOOD CONFEDERATION 1998: IFCON provided opportunity
for the leading, international food scientists, technologists & research institutes to reflect
massive change sweeping across the food processing sector.
FOOD EXPO 1999:
In October in Chicago NIL participated there also.
CHILDREN SPORT MEET 98:
At DPS R. K. Puram children between age group of 4-13 years put their best foot & arm
forward. Attired in colorful MILO T-Shirts & Caps they participated in 12 events.
FREE GIFTS
Like giving school Kit i.e., pen scale etc, with Maggie.noodles & chocolates, Free
Cricket bag or a sport watch, badminton racket, bag etc on the payment of a very minimal
amount of Rs. 10 with Milo.

OTHERS

31
Some other examples of exhibition in which NIL participated are:
India international trade fare (IITF).
Nestle' Hungama 1998.
Maggie Display Contest.
Splendor 1999.
Boarding School Development Campaign.
Moga Summer School Camp.

The competitors of NIL are also very Active and they also participate in these events and
sponsor some event in there own ways & methods. HLL participates in most of the
regional trade shows through its retailers. It displays its new products at large. HLL is the
1st largest company of India in terms of advertising & promotional expenditure. It also
invents largely on window display contests retail level. Amul promotes its products by
using emotional appeal in order to use the emotional aspects if Indian citizen. It uses
kiosks and hoardings to promote its product range. The promotional expenses of Amul
are not so big as that of the MNCs but still it is a respected firm in our eyes. Cadburys
under its promotional campaign that are designed by Ogilvy & Mather the adv shows the
power of positioning with emotional benefits and it really works for Cadburys & leaves it
with dramatic increase in sales.

MILO

32
BACKGROUND

Milk additive market in India in formally here for the last three to four decades. Over 2

decades, there have been only two large players in the beverage segment - Bournvita and

Boost. Horlicks and Complan are traditionally more strong brands in the South. Mumbai,

being the base for Cadbury India Limited, Bournvita has been the strong brand here.

Cadbury's aggressive sales distribution in Western Region is largely responsible for this.

On communication front, Bournvita has had changed in positioning twice, Milk additive

brands are traditionally positioned on three benefits - Taste, Nutrition or Energy.

Bournvita is positioned closer to taste and energy benefit while Horlicks, Complan are

closer to nutrition associated with the needs of growing children. As per an article in

A&M magazine published in October 1995, brown beverage market was nearly under

saturation with diminishing growing rate, and the possibility of a new entrant in this field

was minimal.

MARKETING PLAN

Objective: Launching of international brand 'Milo' in India.

PRODUCT AND POSITIONING

In August 1996, Nestle launched its internationally known Milo brand in India. Initially,

launch was limited to Tamil Nadu. Estimated market of brown beverages in 1995 was

15,000 tons and market was growing with 6% per annum growth rate. Milo was launched

with a pricing index of 100, 99 and 94 respectively of Milo. Boost and Bourn vita. With a

slogan that said "Win with Milo" and its association with energy and sports, it was

launched in an attractive pack of green color.

33
In February 1996, Milo was launched in the city of Mumbai. The launch was a rather

simple one with lease media hype. Instead of this, sampling was done in schools and at

the places where direct trial to the end user could be included. There are few sports

competitions also organized in schools as a launching strategy for Milo.

After the months of launch of Milo, it was necessary to understand how Milo in doing on

the retailer front and what is the retailer's response on various issues associated with

distribution of Milo. At the same time, it was necessary to understand the awareness of

Milo in consumers and their purchase and consumption habits of milk additive brands.

Milo being a relatively new brand in India, Nestle carried out a research on its own.

Recall of different brands - All the brands had similar overall recall if the TOM

spontaneous aided recalls are added. However, in total spontaneous recall (TOM and

unaided added), Bournvita had a 100% recall, followed by Boost with 76%. 60% retailers

had a spontaneous recall of Milo and no one recalls Maltova.

PROMOTION

Retailers most preferred option was of 'On pack Incentive'. This is followed by price-offs

and extra quantity. Practically no retailer like redemption's discount coupons or contests

kind of options. As consumers are not really concerned much if 4 to 5 rupees off is given

or 20 to 50 gms is given extra, gifts turned out to be the best incentives. Bournvita and

Maltiva are considered to be giving highest promotion and Milo had not offered any

promotion since its launch. Milo should have been launched with a heavy promotion

offer so as to induce trial, but it is not so. Milo had a biter taste, so it is not preferred as a

34
drink for children. Milo had offered trade promotion only during the time of its launch.

This is in the form of Rs. 5/- against display for a week.

DISTRIBUTION STRAGEGY

The aim of Nestle India Ltd. is to cover & open the largest possible number of out lets in

every nook & corner of the country.

HOW IT IS PROCEEDING?

Confectionary can be sold almost any where. In our regular outlets also. Some of the

major and most approachable outlets are:

A school & college canteen.

Airport terminal.

Cinema hall.

Pan/cigarettes kiosks.

Railway station/train vendors.

The company is looking to ensure that:

Any where the people congregate the aim is the representation in all these outlets as their

distribution objective. Exclusive retail coverage is to focus to on whole seller, where

endless stock could be dumped and from where stock reaches almost all outlets in the

country. The whole seller channel could give us representation in outlets especially pan

shops where they are not present.

DISTRIBUTION NETWORK OF NIL

35
MANUFACTURER

C & F AGENTS (1%-3-%


Margin)

SUPER STOCKIST (3%-6%)

STOCKIST (3%-5%)

DISTRIBUTOR (4%-7%)

ORGANISED RETAILER (6%-


18%)

36
ROLE OF MAJOR PRODUCTS IN MAKING NIL A GRAND SUCCESS

Nestle' India Limited works a lot before launching a product. It does a lot of test
marketing & other marketing efforts for making its product & thus a company a grand
success. Nestle' believes in renting mind space by creating perception for the brand in the
prospects mind so that it stands apart from the competing brand & approximates much
more closely to what the customer wants. It covers that space in the customers mind as if
they have won a long term lease and always keep out squatters. The market conditions
before & after the launch of some major brands of Nestle' are given as under.

MAGGIE NOODLES

Maggie Noodles were launch in 1983, where there was a latent need for the Indian
market to make foray into the fast food segment. Previous there was no trend of instant
noodles in India, most of the people were aware of Chinese noodle only. In 1982 when
Food Specialized Ltd. (associated with Nestle' considered launching Maggie instant
noodles, the company had the option of choosing from several alternative positions. The
product could have been launched, for the sake of argument, as the means of cooking
tasty Chinese dishes at home, or as a TV Dinner, or as a mini meal. Through
consumer research the company felt that the most profitable position would be as a tasty,
instant snack, made at home & initially aimed at children. The target market was the in-
home segment of the very substantial snack category. This positioning decision
automatically determined the competition which included all snack products in general.
These would range from ready to eat snacks-biscuits, wafers & peanuts-to ready prepared
snacks such as samosas. All were bought out items.

Maggie noodles were launched in Delhi in January 1983 and it became an overnight
success. The annual target for that market was increased from 50 tones to 600 tones. The
Indian market was tipped to became the second largest Nestle' market for this product
worldwide, next only to Malaysia. Maggie Noodles, as market results show, found a

37
vacant, strong position and sat on it as TASTE TO COOK, GOOD TO EAT any time
snack.

RICH SOUPS (1989): traditionally at home the soup was made from Boiled vegetables
& was used as filler. Maggie soups were convenient, healthy, tasty & notorious. In first
half of the decade the soup market of Maggie grew up to 2500 tones, a large enough size
to attract competition in a short time & in 1995 competition sets in. The companys
market research team gets the latest information regarding the changing taste and
preferences, and suggested steps to improve the product. Aggressive consumer benefit
strategy propelled the market, to touch the 500 tones in subsequent 2-3 years.

MILK MAID

Milkmaid was launched in 1962 by Nestle' as a creamer or whitener for tea and office.
The most interesting thing about Milkmaid is that it has been repositioned 4 times
without any considerable changed in packaging & product remained totally unchanged.
But off course it is the illustration & headlines that really determines the position which
the consumer will give the brand in her mind. This repositioning strategy proved to be a
great success for Nestle' each time the volume of sales got an upward shift & that too by
a large denomination. They believe that the perceived image of the product belongs not to
the product but rather is the property of the consumers mental perception. So the strategy
should be:

Looks beyond the Product at the Customer & Use Knowledge to Repositioning the
Brand
Five important rules for a successful repositioning:
Renovation
Innovation
Customer communication
Product must be a low cost & highly efficient operator

38
Product availability: wherever, whenever & however.
Some time later milkmaid was positioned as Tastiest milk maid.

The concept was that you can get 1.6 liters of sweetened milk by adding water in that
condensed milk. This positioned was visualized as it had relevance at a time when fresh
milk was in short supply in some parts of India. Once again, we saw Milkmaid in yet
another position as a topper on fruits, cakes, jelly etc. and then last time through a natural
evolution-backed by consumer research & sound marketing judgment - we saw
Milkmaids Present position: Milk maid for desert Recipes. In due course, the packaging
was smartened up & changed to reflect the recipe on culinary products; the label depicts
a desert, gives the recipe on the reverse side & announces a free recipe booklet. From
the time of the dessert recipe positioning (1982), milkmaid achieved a sales volume
increase of 116% by 1988. Sales growth has been relatively steady tear after year (an
average growth about of 20% annually), suggesting that more households are responding
to this position. It is significant that even in traditional milk shortage areas, Milk maid
usage now is largely in line with the culinary (dessert) positioning. This implies that
housewives, who may have earlier perceived Milkmaid as a substitute for milk, have now
given it a different place in their frame of reference. Recently Nestle Has Launched
Milkmaid in a easy squeeze tubes which is attracting children also. Positioning above all,
is a matter of the perception of your brand that we wish to do the product and more what
we do to the product and more what we do to the consumers perception of the product.

NESCAFE (1918-1938)

After the end of world war 1st their were crises for Nestls Government contracts dried
up following the hostilities, and the civilian consumer, who had grown accustomed to
condensed & powdered milk during the War switched back to fresh milk when it became
available again. In 1921 company recorded its 1 st loss. Nestle management responded
quickly and brought in Swiss Banking export, Louis Dapples to recognize the company.
He streamlined the operations to bring production in line with sales and reduce the

39
companys outstanding debt. The manufacturing of chocolates became the companys
second most important activity. New products appeared steadily:
Malted milk
Milo
Powdered butter milk for infants

Nescafe (1938)

The Brazilian coffee institute approached Louis Dapples in 1930, seeking new product to
reduce Brazils large coffee surplus. Eight years of research produced a soluble powder
that revolutionized coffee drinking habits worldwide. The most interesting thing to talk
about Nescafe is its Brand personality. It is the personality that marketer wishes to attach
to his brand & which actually enters the targets customers mind. In March 1989, the
students of IIMC, conducted a small scale survey on personality of some major brands &
and Nescafe was one among them Nescafe was compared to gold caf-both were 100%
pure instant coffees, both heavily advertised & both premium priced. Gold caf was a
successful competitor of Nescafe. The respondents were asked to describe the personality
of the brands in terms of Mr. Nescafe & Mr. Gold caf. The respondent in one group
based there observation on the advertisements of two brands. While other group made
observations on the basis of other factors such as history of the company, marketing
strategy, etc. one might describe them as the first groups findings better because those
reflected the consumers point of view better.

40
RECENTLY LAUNCHED PRODUCTS
Set Dahi
New Tomato and Curry Flavors in Maggie Noodles

41
New Dal and Atta in Maggie Noodles
A new confectionery Nestle Choco Stick
Soft Chewy fudge Milky bar Chocolate
Nestle recently launched products Tea Iced Tea
Nestle slim milk
The company is also setting up CAF NESCAFE and COFFEE CORNERS across
metros and mini-metros in India.

NESTL: 4.6% ORGANIC GROWTH IN FIRST QUARTER


Group-wide organic growth of 4.6%
6.3% sales increase at constant exchange rates
Swiss franc sales down 7.5% as a result of a 13.8% negative foreign exchange impact

The overall organic growth of 4.6% in a difficult quarter, aggravated by late Easter, is
mainly due to our successful drive for innovation and our strong market positions. Our
consolidated sales clearly took a hit from the strong Swiss franc, but we expect this effect
to taper off in the course of the year. We are confident that the rest of the year will bring
an acceleration of growth and that we will therefore achieve our stated objective of
improving the Group's performance in constant currencies for 2006." The Nestl Group's
consolidated sales for the first three months of 2006 amounted to CHF 19.7 billion. In
constant currencies, sales increased by 6.3%, reflecting organic growth of 4.6% (real
internal growth 2.5%, pricing and others 2.1%), as well as a small contribution from
acquisitions, net of divestitures. As a result of the strong Swiss franc, the adverse foreign
exchange effect was 13.8%. Foreign exchange factor held back consolidated sales, and
real internal growth was impacted by the late Easter date and the competitive situation in
Japan. Additionally, in keeping with the Group's policy of ensuring margin
improvements, Nestl raised prices in several product categories to reflect cost increases.
Nevertheless, the Group expects its strong brands, its broad distribution network and its
capacity for innovation to lead to an improvement in sales growth as the year goes on.

42
RESEARCH METHODOLOGY
It is a systematic approach of identifying the problem, collecting the information,
analyzing the information and providing alternate suggestions. Three type of project
research can be distinguished. Some research is exploratory, i.e., to gather preliminary
data to shed light on the real nature of the problem and suggest possible hypothesis on
new ideas. Some are descriptive, to ascertain certain magnitudes.

1. Defining the problem and research objective

The research objective state that what information is needed to solve the problem. Here
the objective of the research is doing marketing and advertising strategies of Nestle and
finding the shortcomings it.

2. Developing research plan

Once the problem is defined, the next step is to prepare a plan for getting the information
needed for the research. The present study will adopt exploratory approach where in there
is a need to gather a large amount of information before making a conclusion if required.
The descriptive and casual approaches may also be used.

3. Collection and Sources of Data

To collect the data, relevant information is necessary as regards to the project; as a result
data was collected by using two ways:

Primary Data

Secondary Data

43
Primary Data: In this the information is being possessed with first hand information,
which is new and fresh.

The tools used by me for the primary data are as follows:

o Questionnaire

o Face-to-Face Interview

o Observation

Secondary data: The information that is received with the help of Journals, Magazines,
Financial reports or which is already present with the company.

o References used from management books

o Gathered information through World Wide Web (www).

o Support and knowledge provided by Faculty and Company guide.

o Financial reports of the company

4. Sampling Plan

Sampling unit:: The respondents were mainly the retailers who were stratified in
according to the monthly turnover

Sampling size: A survey was conducted for 100 hundred respondents at nestle
India ltd. Gurgaon

5. Analyze the collected information: This involves converting raw material in to useful
information. It involves tabulation of data and using statically measures on them for
developing frequency distribution and calculating the averages and dispersions.

6. Report research finding: This phase will mark the culmination of the marketing
research efforts. The report with the research finding is a formal written document.

44
DATA ANALYSIS AND INTERPRETATION
Various age group customers targeting

AGE GROUPS 0-10 10-20 20-30 ABOVE 30

CUSTOMERS 14 42 33 11

According to the above analysis it is concluded that I have surveyed 100 respondents out
of which 14, 42, 33, 11 belongs to age group 0-10, 10-20, 20-30, above30 respectively.

PREFERENCE ACCORDING TO AGE GROUPS

45
AGE GROUPS

BRANDS 0-10 10-20 20-30 ABOVE 30

CADBURY 7 35 24 5

NESTLE 5 6 8 5

NO CONSUMTION 2 1 1 1

PREFERENCE ACCORDING TO AGE GROUPS

45
NUMBER OF CONSUMERS

40 1
6
35
1
30
8
25
20
35
15
2 24
10 5 1
5
5 7 5
0
0-10 10 to 20 20 to 30 Above 30

AGE GROUPS

CADBURY NESTLE NONE

According to the above analysis it is concluded that people of different age groups prefer
mostly Cadbury brand while Nestle brand is least preferred by the age group between
10-20. People of age group above 30 equally like to have both brands.

BRAND PREFERENCE

BRANDS PREFERENCE BY CONSUMERS

46
CADBURY 40
NESTLE 22

PARLE 30

OTHERS 08

According to this diagram 22% people like nestle prduct and 40% Cadbury and
30% parle product is liked by people.

PRODUCT PRODUCE BY NESTLE

NESTLE PRODUCT

47
BABY FOOD 22

CHOCOLATE 23
BEVERAGES 15
BOTTLED WATER 15

MILK 25

From the above analysis of given sample of 23% people who eat Nestle chocolates it is
concluded that mostly all other brands are purchased by people but top most is Milk
followed by beverages and baby foods. While surveying we have found that many people
are not aware of bottelled water.

Business or market affected by business cycles or seasons

48
According to this diagram we found that 5% people said yes and 95% people said no for
this question.

Competitive price changes anticipated in the near future.

According to this analysis 10% people said that price will not increase
in near future. And 65% said yes and left cant say.

49
INFLUENCING FACTORS DURING PURCHASE

OVERALL INFLUENCE

FACTORS GRAND TOTAL AVERAGE RANK


FLAVOR/TASTE 435 4.58 1
PRICE 295 3.1 9
QUALITY 391 4.12 2
PACKAGING 344 3.62 4
FORM 301 3.17 7
BRAND 354 3.73 3
IMAGE 344 3.62 4
COLOR 297 3.13 8
SHAPE 268 2.82 10
QUANTITY 342 3.6 6

According to the above analysis it is concluded that on an average mostly people are
influenced by flavor/taste followed by quality, brand and image. It is surprised to know
that very few people are influenced by price followed by shape.

50
FACTORS GIVING MOST SATISFACTION TO CONSUMERS

OVERALL

FACTORS GRAND TOTAL AVERAGE RANK


FLAVOR/TASTE 427 4.81 1
PRICE 337 3.6 4
QUALITY 367 3.86 2
PACKAGING 338 3.56 5
FORM 332 3.49 7
BRAND 358 3.77 3
IMAGE 328 3.45 9
COLOR 332 3.49 7
SHAPE 335 3.52 6
QUANTITY 328 3.45 9

According to the above analysis it is concluded that on an average people are most
satisfied with the flavor/taste of a product followed by quality and brand. It is surprising
to know that although people are satisfied with quality but unsatisfied with the quantity.

51
Steps to reduce costs without affecting quality

FORM OF STRATEGY NUMBER OF RESONDENTS

Personal selling 33

utilization of resources 25

remove intermediaries 29

Others. 20

According to the above analysis it is concluded that most of the people said personal
selling should be and should be remove intermediaries and some said that resources
should be utilized properly and 20% said other action should be take.

52
PROMOTIONAL OFFERS

PROMOTIONAL OFFERS NUMBER OF RESPONDENTS

FREE GIFTS 35

DEMONSTRATION 20

DECREASE PRICE 25

ANY OTHER 20

According to the above analysis it is concluded that out of sample of 95 respondents that
52% peoples are attracted by free gifts, 23 by price offers while 20 were attracted by
some other reasons.

53
FACTORS AFFECTING PURCHASE

FACTORS NUMBER OF
RESPONDENTS

ADVERTISEMENT 65

SUGGESTION FROM FRIENDS AND RELATIVES 16

ATTRACTIVE DISPLAY 11

DOCTORS ADVICE 15

BRAND AMBASSADORS 9

INGREDIENTS 25

According to the above analysis it is concluded that Advertisement is the best measure to
attract customers to purchase more. Its impact is much more than other factors. While
friends and relatives and brand ambassadors also play a significant role in this regard.

54
MEDIA OF ADVERTISEMENT

MEDIA OF ADVERTISEMENT NUMBER OF RESPONDENTS

TELEVISION 82

NEWSPAPERS 7

BROCHURES 3

HOARDING 4

DISPLAY 15

According to the above analysis it is concluded that television emerges as the best media
for advertisement that compel consumers to buy. It is much more than other ways as out
of 95 respondents 82 are attracted to by through television media while brochures are the
least attracting media.

55
CONSUMERS BRAND LOYALTY

BRAND LOYALTY ACTIONS NUMBER OF RESPONDENTS

POSTPONE YOUR PURCHASE 26

SWITCH OVER TO OTHER BRANDS 24

GO TO OTHER SHOP FOR SEARCH 45


OF PREFERED BRAND

According to the above analysis it is concluded that mostly people are loyal to the brand
as in the absence of availability of their preferred brand mostly people like to search for it
or they are ready to postpone their purchase.

56
REACTION OF CONSUMERS IF NEW BRAND IS INTRODUCED

SHIFT TO NEW BRAND OF THE NUMBER OF RESPONDENTS


PREFERED PRODUCT

NO, NOT AT ALL 35

MAY CONSIDER 27

NO, SHALL NOT 4

CANT SAY 29

According to the above analysis it is concluded that mostly people are addicted to the
same flavor or taste and they dont want to change it as out of 95 respondents 35 are not
ready to try new brand at any cost.

57
CONCLUSION & RECOMMENDATIONS

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.

Limitations

58
A Project that is undertaken, any research that is carried out or any venture that is to
be accomplished is not without its share of limitations. Limitations are present
irrespective of the scale of intensity of the research undertaken. I was no exception. I
too came across limitation but was not discouraged.
Nearly all the companies maintain a certain degree of secrecy. There were hesitations
while providing an outsider with the information & feedback regarding the
companys strategies & even financial data. To overcome this shortcoming secondary
sources were tapped for required information. These sources were checked for
ensuring their Authenticity bias. Numbers of visits were made for procuring a single
appointment.
Though sample size is large enough it is cost so diversified to be called as exact.
Inadequacy of time & other resources proved to be a strong limitation. The data
collected from consumers may not be exactly what they think & use as they might
have misinterpreted the objective of research.
Throughout the study utmost care has been taken to avoid biases, errors so as to
ensure authenticity and accuracy. But there is possibility for some discrepancies to
come in between due to following limitations:
Respondents may give their biased opinion, as they know the identity of interviewer.
My study is based on responses of executives of mentioned company of concerned
department only, which may not give a true picture.
Last but not the least and the most deciding factor paucity of time.
But I have put in my honest efforts to make this project a useful one for every one
who reads it.

59
BIBLIOGRAPHY

Kotler Phillip, Marketing Management-2006 [12th edition]


Singh Para pal, Service Marketing- 2008 [ 11th edition]
Russell S. Winer &Donald R. Lehmann, Analysis for Marketing Planning-2009[ 7th
edition]
Lean G. Sehiffman and Leslic lazan Kanuk., Consumer Behavior-2006[6thEdition]

INTERNET SITES
www.nestle.com
www.yahoosearch.com

www.thehindubusinessline.com

www.domain-b.com

www.economictimes.indiatimes.com

60
QUESTIONNAIRE

Qns1) What are your business objectives over the next two years?

Ans. 1. Customer satisfaction 2. Increase profit

3. Sales maximization 4. Society welfare

5. All of above

Qns2) What market segments are you targeting?

Ans. 1. Geographical segmentation 2. Demographic segmentation

3. Psychographic segmentation 4. Behavioral segmentation

Qns3) What kind (age group) of customer are you targeting?

Ans. 1. 0-10 2. 10-20

3. 20-30 4. Above 30

Qns4) What is your customers primary reason for buying or wanting to use your
product or service?

Ans. 1. Brand value 2. Price

3. Quality 4. Easy to get

Qns5) Which competitors have the largest market share within your target market
segments?

Ans. 1. Cadbury 2. Sunfiest

3. Parle 4. Others please mention

61
Qns6) What improvements can you make to your offering to better meet customer
needs?

Ans. 1. Quality 2. Price

3. Hygine 4. Better services

Qns7) What is the process for selling your services or products?

Ans. 1. Direct personal selling 2. Indirect selling

3. Direct online selling 4. Any others

Qns8) Which of the factor has higher impact on community that a potential
customer become a customer ?

Ans ) a) Advertisement b) Suggestion from friend

c) Attractive display d) Brand ambassadors

Qns9) Which advertising media is used to increase sale?

Ans ) a) Television b) Display

c) Newspaper d) Hordings

d) All of above

Qns10) Which factor influence the purchasing power of a customer?

Ans) a) Price b) Quality

c) Brand d) Quantity

e) All of above

Qns 11) Is your business or market affected by business cycles or seasons?

Ans) a) yes b) No

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Qns13) Which promotional offer is used by you to increase sale?

Ans a) Free gifts b) Demonstration

c) Decrease price d) Any other

Qns14) What affects is provided by consumer brand loyalty on product?

Ans) a) Postpone your purchase b) Switch over to other brands

c) Go to other shop for preferred brand d) Any other

Qns 15) What can be done to reduce costs without affecting quality?

Ans: a) Remove intermediaries b) Utilization of resources

c) Personal selling d) Others.

Qns 16) Are competitive price changes anticipated in the near future?

Ans: a) yes b) No

Qns 17) What is the single most important message that youe must communicate to
all of your target audiences?

Ans:
___________________________________________________________________
___________________________________________________________________
____________________________________________________________

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(Demographic Profile)

Name:

Address:

Contact No. .

Age :

Occupation:

Date: Signature

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