PROJECT REPORT

ON

MARKETING STRATEGIES OF NESTLE

COMPANY
SUBMITTED IN PARTIAL FULFILLMENT FOR THE
AWARD OF THE
DEGREE OF BACHELOR OF BUSINESS
ADMINISTRATION (2016-19)

UNDER THE GUIDANCE OF SUBMITTED BY:

RACHITA GARG AMAN JAIN
FACULTY, MAIMS Roll no: 00914701716

MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES

(Affiliated to Guru Gobind Singh Indraprastha University, Delhi)
PSP Area, Plot No.1, Sector 22, Rohini, Delhi-110086
 STUDENT UNDERTAKING

This is to certify that I have completed the Project title MARKETING STRATEGIES OF
NESTLE in NESTLE COMPANY under the guidance of Mrs. Rachita Garg in partial
fulfilment of the requirement for the award of degree of Bachelor of Business Administration
at Maharaja Agrasen Institute of Management Studies, Delhi.
This is an original piece of work & I have not submitted it earlier elsewhere.

Aman Jain
(00914701716)
 CERTIFICATE

This is to certify that the project titled MARKETING STRATEGIES OF NESTLE is an

academic work done by AMAN JAIN submitted in the partial fulfilment of the requirement
for the award of the degree of Bachelor of Business Administration from Maharaja Agrasen
Institute of Management Studies, Delhi, under my guidance & direction. To the best of my
knowledge and belief the data & information presented by him/her in the project has not been
submitted earlier.

Mrs. Rachita Garg

Faculty, MAIMS
 ACKNOWLEDGEMENT

Apart from the efforts of me, the success of any project depends largely on the
encouragement and guidelines of many others. I take this opportunity to express my gratitude
to the people who have been instrumental in the successful completion of this project.
A special note of thank goes to the Director Dr. M.K. Bhatt for his guidance while
undergoing this project.
I am very thankful to Mrs. Rachita Garg. Thank you wont be enough for her tremendous
support and help. I feel motivated and encouraged every time I attend her meetings. Without
her encouragement and guidance, this project would not have been materialized.
The guidance and support received from all the members who contributed to this project, was
vital for the success of the project. I am grateful for their constant support and help.

Aman Jain
(00914701716)
EXECUTIVE SUMMARY

This report is based on NESTLEs Marketing mix, SWOT analysis and the way they have
successfully managed to achieve considerable market shares. The case continues with an
insight into NESTLEs innovations that have been a success among the diverse segments of
the global market. This report is based on exploratory research where the data collected is
secondary data
NESTLE deals in food processing industry and they hold wise position in instant noodles &
ketchups, second in healthy soups, No.1 in instant coffee, & No.2 in overall chocolate
category. Their strategy focuses on delivering distinct benefits to people through the food and
beverages, products and services they provide. Over 150 years they have built a successful
business by understanding and anticipating the needs of society, and continuously adapting
their selves to seize the opportunities presented to us.
They transport more than 145 000 tonnes from 1600 warehouses daily the equivalent of 274
times around the world each day. Their partnerships with third-party logistics providers
enable us to track their environmental performance and improve efficiency by reducing miles
travelled, fuel consumed, GHG emissions, noise and congestion. NESTLE want to shape a
better and healthier world. This was how it started more than 150 years ago when Henri
NESTLE created an infant cereal that saved the life of a child. NESTLE's purpose is
enhancing quality of life and contributing to a healthier future. It is further recommended that
NESTLE should not get loose on the current taste, and therefore launch new products that
offer a distinct benefit to the customers.
The Company insists on honesty, integrity and fairness in all aspects of its business and
expects the same in its relationships. This has earned it the trust and respect of every strata of
society that it comes in contact with and is acknowledged amongst India's 'Most Respected
Companies' and amongst the 'Top wealth Creators of India'. NESTLE set up milk collection
centres that would not only ensure prompt collection and pay fair prices, but also instil
amongst the community, a confidence in the dairy business.
NESTLE India manufactures products of truly international quality under internationally
famous brand names such as NESCAF, MAGGI, MILKYBAR, KIT KAT, BAR-ONE,
MILKMAID and NESTEA and in recent years the Company has also introduced products of
daily consumption and use such as NESTLE Milk, NESTLE SLIM Milk, NESTLE Dahi and
NESTLE Jeera Raita.
NESTLE India extends its support to girl child education in association with Nanhi Kali, one
of the largest community programs imparting education to underprivileged girl children
across India. This initiative further strengthens the NESTLE Healthy Kids Programme which
has already reached out to about 1, 00,000 beneficiaries. Project Nanhi Kali, jointly managed
by K. C. Mahindra Education Trust and Naandi Foundation, has been a credible programme
over the last 20 years working in the area of girl child education. Leveraging on the extensive
work done by Nanhi Kali, NESTLE India is supporting this cause and will become a part of
the movement
 TABLE OF CONTENTS

Student Undertaking
Certificate
Acknowledgement
Executive Summary
A. Industry profile

CHAPTER-1: INTRODUCTION
1.1 Research objective
1.2 Research Methodology

CHAPTER-2: COMPANY PROFILE

CHAPTER-3: FINDINGS AND ANALYSIS

3.1 Segmentation
3.2 Marketing Mix
3.3 New Product Development Strategy

CHAPTER-4: SUGGESTIONS

CHAPTER-5
1. Conclusion
2. Bibliography
 A. INDUSTRY PROFILE

NESTL's relationship with India dates back to 1912, when it began trading as The NESTL
Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished
products in the Indian market.

After India's independence in 1947, the economic policies of the Indian Government
emphasised the need for local production. NESTL responded to India's aspirations by
forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the
Government wanted NESTL to develop the milk economy. Progress in Moga required the
introduction of NESTL's Agricultural Services to educate, advise and help the farmer in a
variety of aspects. From increasing the milk yield of their cows through improved dairy
farming methods, to irrigation, scientific crop management practices and helping with the
procurement of bank loans.

NESTL set up milk collection centres that would not only ensure prompt collection and pay
fair prices, but also instil amongst the community, a confidence in the dairy business.
Progress involved the creation of prosperity on an on-going and sustainable basis that has
resulted in not just the transformation of Moga into a prosperous and vibrant milk district
today, but a thriving hub of industrial activity, as well.

NESTL has been a partner in India's growth for over a century now and has built a very
special relationship of trust and commitment with the people of India. The Company's
activities in India have facilitated direct and indirect employment and provides livelihood to
about one million people including farmers, suppliers of packaging materials, services and
other goods.

The Company continuously focuses its efforts to better understand the changing lifestyles of
India and anticipate consumer needs in order to provide Taste, Nutrition, Health and
Wellness through its product offerings. The culture of innovation and renovation within the
Company and access to the NESTL Group's proprietary technology/Brands expertise and
the extensive centralized Research and Development facilities gives it a distinct advantage in
these efforts. It helps the Company to create value that can be sustained over the long term by
offering consumers a wide variety of high quality, safe food products at affordable prices.
NESTL India manufactures products of truly international quality under internationally
famous brand names such as NESCAF, MAGGI, MILKYBAR, KIT KAT, BAR-ONE,
MILKMAID and NESTEA and in recent years the Company has also introduced products of
daily consumption and use such as NESTL Milk, NESTL SLIM Milk, NESTL Dahi and
NESTL Jeera Raita.

NESTL India is a responsible organisation and facilitates initiatives that help to improve the
quality of life in the communities where it operates.
 CHAPTER-1
INTRODUCTION
 1.1 RESEARCH OBJECTIVE

The objectives of the project are:

1. To explore business portfolio of NESTLE,
2. To study marketing strategies of NESTLE in Indian market by studying:
Segmentation, targeting and positioning,
Product strategy of NESTLE,
Place strategy of NESTLE,
Pricing strategy of NESTLE,
Promotion strategy of NESTLE
3. To analyse the market situation i.e. market share
4. To study process of new economic development.

Marketing is the process by which companies create value for customers and building strong
customer relationships in order to capture value from customer in return. Here I would be
analysing the strategies followed by NESTLE to create value for customers and building
strong customer relationship.
After the whole study on NESTLE, I would be analysing the strengths and weaknesses, if any
of the company. At the end, suggestions would be given to overcome and control the lacking
point and weaknesses.

1.2 RESEARCH METHODOLOGY

Research: meaning and concept

Research may be very broadly defined as systematic gathering of data and information and
its analysis for advancement of knowledge in any subject. Research attempts to find answer
intellectual and practical questions through application of systematic methods.
It aims at discovering the truth. It is the search for knowledge through objective and
systematic method of finding solution to problems. It is carried on both for discovering new
facts and verification of old ones. Therefore, research is a process of systematic and in-depth
study or search of any particular topic, subject or area of investigation backed.
Types of research
1. Descriptive research
It concentrates on finding facts to ascertain the nature of something as it exists. In contrast
analytical research is concerned with determining validity of hypothesis based on analysis of
facts collected.
2. Applied research
It is carried out to find answers to practical problems to be solved and as an aid in decision
making in different areas including product design, process design and policy making.
Fundamental research is carried out as more to satisfy intellectual curiosity, than with the
intention of using the research findings for any immediate practical application.
3. Quantitative research
It studies such aspects of the research subject which are not quantifiable, and hence not
subject to measurement and quantitative analysis. In contrast quantitative research makes
substantial use of measurements and quantitative analysis techniques.
4. Conceptual research
It involves investigation of thoughts and ideas and developing new ideas or interpreting the
old ones based on logical reasoning. In contrast empirical research is based on firm verifiable
data collected by either observation of facts under natural condition or obtained through
experimentation.

Research Design
A research design is utilized to structure the research, to indicate that all the major elements
of the research have been designed to work together. There are numerous types of research
designs that one may decide to use.
Burns and Grove define a research design as a blueprint for performing a study with
maximum control over factors which could interfere with the validity of the findings.

Data Collection:
Data collection is the process of gathering and measuring information on targeted variables
in an established systematic fashion, which then enables one to answer relevant questions and
evaluate outcomes. Data collection is a component of research in all fields of study
including physical and social sciences, humanities, and business. While methods vary by
discipline, the emphasis on ensuring accurate and honest collection remains the same. The
goal for all data collection is to capture quality evidence that allows analysis to lead to the
formulation of convincing and credible answers to the questions that have been posed.
SECONDARY DATA
Secondary data refers to data that was collected by someone other than the user. Common
sources of secondary data for social science include censuses, information collected by
government departments, organisational records and data that was originally collected for
other research purposes. Primary data, by contrast, are collected by the investigator
conducting the research.
Secondary data analysis can save time that would otherwise be spent collecting data and,
particularly in the case of quantitative data, can provide larger and higher-
quality databases that would be unfeasible for any individual researcher to collect on their
own. In addition, analysts of social and economic change consider secondary data essential,
since it is impossible to conduct a new survey that can adequately capture past change and/or
developments. However, secondary data analysis can be less useful in marketing research, as
data may be outdated or inaccurate.
The sources of secondary data can be classified as:
A. Internal Sources:
1. Accounting resources
2. Sales Force Report
3. Financial data
4. Transport data
5. Storage data
6. Internal Experts
7. Miscellaneous Reports

B. External Sources:
1. Demographic data
2. Competitors
a) Company web sites
b) Press Releases
c) White Papers
d) Presentations
Research Design:
i. The type of research used is exploratory:
ii. The tool used for data collection in this project is SECONDARY DATA:
The secondary data tools used in the project are books and internet. I refused to various
articles and data on internet. The foundings of other people were also used to achieve
appropriate data. The secondary data thus collected helped to get refined and reliable data.
This Project report is made on the basis of secondary data.
iii. This project is based on qualitative research:
This project is based on marketing strategies which are intangible and cannot be measured in
terms of quantity or amount. It is concerned with the qualitative aspects.
Sources for the collection of data are:

For Company History, mission and basic information has been collected from NESTLEs
profile official site i.e. www.NESTLE.in

For study Data for companys business activities, companys product, strategies, and
their working pattern has been collected from NESTLEs official site i.e.
www.NESTLE.in and data to study about the competitors and market
reputation and to know the current market situation and current affairs has
been collected from
i. Online material
ii.Books
Limitations of the Research:
While conducting the research, there were many limitations. Few of the limitations of the
research are mentioned below:
a. Time Constraints
b. Secondary data is used in this project. There are large amount of data already been
collected by others. Theres always a doubt in the accuracy of secondary data as it is not
completely reliable.
c. A very less amount of data is available on internet.
d. We dont know whether the data available is correct or not.
 CHAPTER-2
COMPANY PROFILE
 NESTLE India is a subsidiary of Nestle S.A. Of Switzerland with seven 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 insists on honesty, integrity and fairness in all aspects of its business and
expects the same in its relationships. This has earned it the trust and respect of every strata of
society that it comes in contact with and is acknowledged amongst India's 'Most Respected
Companies' and amongst the 'Top wealth Creators of India'.
NESTLE's relationship with India dates back to 1912, when it began trading as The NESTLE
Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished
products in the Indian market.
After India's independence in 1947, the economic policies of the Indian Government
emphasised the need for local production.
NESTLE India manufactures products of truly international quality under internationally
famous brand names such as NESCAF, MAGGI, MILKYBAR, KIT KAT, BAR-ONE,
MILKMAID and NESTEA and in recent years the Company has also introduced products of
daily consumption and use such as NESTLE Milk, NESTLE SLIM Milk, NESTLE Dahi and
NESTLE Jeera Raita.

Presence Across India

NESTLs Presence In India

After more than a century-old association with the country, today, NESTL India has
presence across India with 8 manufacturing facilities and 4 branch offices.
NESTL India set up its first manufacturing facility at Moga (Punjab) in 1961 followed by
its manufacturing facilities at Choladi (Tamil Nadu), in 1967; Nanjangud (Karnataka), in
1989; Samalkha (Haryana), in 1992; Ponda and Bicholim (Goa), in 1995 and 1997,
respectively; and Pantnagar (Uttarakhand), in 2006. In 2012, Nestl India set up its 8th
manufacturing facility at Tahliwal (Himachal Pradesh).

The 4 Branch Offices located at Delhi, Mumbai, Chennai and Kolkata help facilitate the sales
and marketing activities. The NESTL Indias Head Office is located in Gurgaon, Haryana.

* This pictorial representation does not purport to be the political map of India.

Head Office Registered Office

NESTL India Limited NESTL India Limited
NESTL House M-5A, Connaught Circus, New Delhi -
Jacaranda Marg, 'M' Block, 110001
DLF City, Phase II, Tel.: +91-11-41514444
Gurgaon - 122002 (Haryana)
Tel.: +91-124-2389400
Nestl Strategic Roadmap

The Nestl Strategic Roadmap guides us in these turbulent times. The glue is our purpose and
values, and our culture. The roadmap says what we want to be as a company, what we want
to leverage as competitive advantages to fuel growth, where we want to grow and how we
will do that efficiently, effectively and responsibly. It drives internal alignment behind our
goals.

Our objective is to be the leader in Nutrition, Health and Wellness, and the industry reference
for financial performance, trusted by stakeholders.
Nestle strategic priorities

It is more important than ever to ensure that resources are dedicated to the right projects,
maximising the effectiveness of what we spend. We have a strong cost control culture.
Through Nestl Continuous Excellence we continuously improve our operations and deliver
savings. With Nestl Business Excellence we simplify, standardise and share. This is creating
backoffice efficiencies, helping us to leverage our size and scale to deliver competitive
advantage, and unlocking resources. These are the fuel for growth, brand support, Research
and Development, innovation and renovation.
We challenge ourselves continuously to look for new opportunities and for areas where we
can make a contribution to the issues society faces. This creates shared value for the
communities where we operate and for our shareholders. We are contributing to society while
growing our business. Trust is fundamental to our success. Trust helps deliver growth,
creating shared value for our shareholders and for society. Quality and compliance underpin
that trust, and are the best way to ensure the long-term success of our business.
Our strategy helps achieve our purpose: enhancing quality of life and contributing to a
healthier future. Nestl is always anticipating and adapting to the changing world, guided by
our purpose and our values, as we have since the company started 150 years ago. Our purpose
defines why the world is a better place with Nestl, better for those who enjoy our products
and services, and for those who are affected by our business. It is the inspiration for each and
every one of us in the company. It aligns our actions and creates a common language. It is the
compass for our decisions and for everything we do. It helps ensure we remain a long-term
company delivering with short-term intensity, investing for future success while ensuring
that we meet the needs of the billions of people we touch every day, and the expectations of
our shareholders.

Nestle System and Organization Structure

Nestle Company is a decentralized organization that is organized according to the matrix
structure. Nestle as a decentralized organization permits to subordinate branches to enjoy a
proportionately high-level of independence. Although it still makes major strategy decisions
at the headquarter level, daily operations are left up to subordinate branches to derive and
perform. The responsibility for operating decisions is push down to local units (Broeckx &
Hooijberg 2008).
In organization structure, Complex system is a system that is comprises a large number of
entities that display a high level of nonlinear interactivity. There are number of basic
observations that have been made through the examination of complex systems, mainly using
computer simulation and the mathematic of non-linearity. (Unden 2001)
Complex systems are usually open systems. Nestle, over its long historical development from
a small village operation to the world's leading food Company, has illustrate an excellent
capability to adjust to an ever-changing external environment, without losing its basic beliefs
and core values, so important for long-term success. Over the years to come, this capability
will continue to be challenge even more as Nestle is growing in size and complexity up to a
dimension, which demands a continuous development of its organisation and of the way in
which it run (Christopher & Yannicrumar 2008).

Nestle Organization Chart

In Organization chart, they can see that the management of Nestle is also divided into 3 types'
top-level management, middle level of management and low-level management.
1. Top Level of Management:
It contains of board of directors, chief executive or managing director. The top management
is the final source of authority and it manages aims and policies for an initiative. It dedicates
more time on planning and coordinating functions.
The role of the top management can be summarized as follows:
(a) Top management broad policies of the enterprise and lays down the objectives.
(b) It issues necessary instructions for preparation of subdivision procedures, schedules,
budgets, etc.
(c) It prepares strategic policies & plans for the initiative.
(d) It appoints the executive for middle level for instance departmental managers.
(e) It coordinates & controls the activities of all the departments.
(f) It is also responsible for maintaining a contact with the outside world.
(g) It provides direction and guidance.
(h) The top management is also responsible towards the stockholders for the performance
of the initiative.

2. Middle Level of Management

The branch managers and departmental managers constitute middle level. They are
responsible to the top management for the operative of their department. They devote more
time to directional and organizational functions.
Their role can be highlighted as:
(a) They execute the plans of the organization in accordance with the policies and
directives of the top management.
(b) They make plans for the sub-units of the organization.
(c) They participate in training & employment of lower level management.
 (d) They understand and explain policies from top-level management to lower level.
(e) They are also responsible for inspiring lower level managers towards better
performance.

3. Lower Level of Management

Lower level is also known as operative/supervisory level of management. It contains of
supervisors, superintendent section, officers etc... Their activities include -
(a) Assigning of jobs and tasks to various workers.
(b) They instruct and guide workers for day-to-day activities.
(c) They are responsible for the quality as well as quantity of production.
(d) They are also entrusted with the responsibility of maintaining good relation in the
organization.
(e) They communicate workers problems, suggestions, and recommendatory appeals etc.
to the higher level and higher-level goals and objectives to the workers.
(f) They help to solve the complaints of the workers.

Quality and safety

Quality and Safety for consumers is Nestls top priority. This applies to our entire portfolio,
from foods and beverages to all our systems and services.
Quality assurance and product safety is one of Nestls 10 Corporate Business Principles ,
which form the foundation of all we do.
Nestl Quality Policy
Our actions to ensure quality and food safety are guided by the companys which describes
our commitment to
Build trust by offering products and services that match consumer expectation and
preference
Comply with all internal and external food safety, regulatory and quality requirements
Gain a zero-defect, no-waste attitude by everyone in our company
Make quality a group-wide objective
Nestl Quality Management System
Our Quality Management System is the platform that we use globally to guarantee food
safety, compliance with quality standards and to create value for consumers. Our internal
Quality Management System is audited and verified by independent certification bodies to
prove conformity to internal standards, ISO norms, laws and regulatory requirements.
OUR CHEFS: Ingredients being prepared by Nestl chefs

From farm to fork

Our Quality Management System starts on farms. We have a long history of working together
with farmers in rural communities to help them improve the quality of their produce and
adopt environmentally sustainable farming practices.
The Quality Management System not only ensures our ongoing access to high quality raw
materials. It also enables farmers to protect or even increase their income. Often the standard
of living of entire rural communities is raised as a result. The system helps address key global
environmental and social issues.

Research and Development

Research and Development (R&D) in India is part of NESTL S.A.s global R&D network
and supports all markets worldwide with new product development and manufacturing
excellence for Noodles. It is also a Centre of expertise for local Indian cuisine within the
NESTL R&D network and offers assistance to Culinary, Confectionery, Nutrition and Dairy
products in the South Asia Region (SAR).

Better nutrition in the region is a perpetual challenge. Its meaning changes with the stage of
development, the degree of social awareness, and scientific advancement. The new NESTL
R&D facility in India will help develop great tasting food solutions that are relevant for
consumers in the South Asia Region, creating products that take the promise of taste and
health to a broader economic and social section than ever before. It will also strengthen
NESTLs position as the leader in Nutrition, Health and Wellness in the emerging markets.

NESTL India has always had Research and Development support from the NESTL R&D
network across the world. Now, with the new R&D Centre in Manesar, NESTL South Asia
Region will benefit from a greater regional consumer focus. Having an R&D Centre in
India also brings Research and Development closer to NESTL India businesses, and reflects
the NESTL spirit of R&D-Business partnership towards developing winning concepts,
suited to the local consumer. It will in turn help NESTL R&D to bring out strong local
concepts that are in accordance with the NESTL Group ambition to provide affordable
Nutrition, Health and Wellness.

Ultimately, these concepts will not just be relevant for emerging markets like India, but could
be transferred to NESTL worldwide.

Achievements:
As per the marketwise position NESTLE stands first in instant noodles & ketchups, second
in healthy soups, No.1 in instant coffee, & No.2 in overall chocolate category.
Nestle India continuously focuses on understanding changing lifestyles in India. This helps it
to foresee needs in hts product offerings. The company innovates new product & renovates
existing one providing high quality, safe food products at affordable prices.
Milestones achieved
1. CNBC Awaaz Consumer Awards has honoured Nescafe as the most preferred coffee
brand.
2. Business NESTLES as No.1 on Return on Capital Employed amongst Super 100
companies.
3. In 20062007 NESTLE India was awarded the Best Exporter of Instant Coffee, Highest
Exporter to Russia and CIS, Highest Exporter to Far East Countries.
4. In 2009 Nestle India Board approved Proposal to acquire Healthcare Nutrition Business of
Speciality Foods in 2010 NESTLE Inaugurates New Culinary Plant at Nanjangud.
5. 201012 CNBC Awaaz Consumer Awards Business India has rated Nestle India as No.1
on Return on Capital Employed amongst Super 100 companies.
Corporate Governance:
Board of Directors
1. Paul Bulcke
i. Chairman of the Board of Directors, Nestle S.A.
ii. Chairman's and Corporate Governance Committee (Chairman)
iii. Nomination and Sustainability Committee
2. Mark Schneider
i. Chairman's and Corporate Governance Committee
3. Andreas Koopmann
i. Chairman's and Corporate Governance Committee
ii. Compensation Committee
4. Henri de Castries
i. Chairman's and Corporate Governance Committee
ii. Nomination and Sustainability Committee(Chairman)
iii. Audit Committee
5. Beat Hess
i. Chairman's and Corporate Governance Committee
ii. Compensation Committee(Chairman)
6. Renato Fassbind
i. Chairman's and Corporate Governance Committee
ii. Audit Committee(Chairman)
7. Steven George Hoch
Nomination and Sustainability Committee
8. Naina Lal Kidwai
Audit Committee
9. Jean-Pierre Roth
Compensation Committee
10. Ann M. Veneman
Nomination and Sustainability Committee

These major authority holder people perform the organisation functions smoothly
accompanied by their expertise so as to achieve all the goals and targets efficiently and
effectively.
MARKET SHARE OF NESTLE

Nestle India Ltd., incorporated in the year 1959, is a Large Cap company (having a market
cap of 63582.79 Cr.) operating in Food Processing sector.
Nestle India Ltd. key Products/Revenue Segments include Milk Products which contributed
4713.66 Cr to Sales Value (49.32 % of Total Sales), Prepared Dishes & Cooking aids which
contributed 2298.89 Cr to Sales Value (24.05 % of Total Sales), Beverages which
contributed 1294.92 Cr to Sales Value (13.55 % of Total Sales), Chocolate which
contributed 1184.25 Cr to Sales Value (12.39 % of Total Sales), Export Incentives which
contributed 46.52 Cr to Sales Value (0.48 % of Total Sales) and Scrap which contributed
18.00 Cr to Sales Value (0.18 % of Total Sales)for the year ending 31-Dec-2016.
For the quarter ended 30-06-2017, the company has reported a Standalone sales of 2386.54
Cr., down -3.60 from last quarter Sales of 2475.68 Cr. and up 5.78 from last year same
quarter Sales of 2256.09 Cr. Company has reported net profit after tax of 263.43 Cr. in
latest quarter.
The companys top management includes Dr .Rakesh Mohan, Dr. Swati A Piramal, Mr.
Ashok Kumar Mahindra, Mr. Martin Roemkens, Mr. Rajya Vardhan Kanoria, Mr. Ravinder
Narain, Mr. Shobinder Duggal, Mr. Suresh Narayanan, and Ms. Rama Bijapurkar. Company
has A F Ferguson & Co. as its auditors. As on 31-03-2017, the company has a total of
96,415,716 shares outstanding.

KEY FIGURES:
Rupees in Millions
Particulars 2012 2013 2014 2015 2016
Domestic Sales 81,561.9 87,537.4 94,853.2 77,949.1 88,338.0
Export Sales 4,256.9 6,261.3 6,441.8 6,355.3 6,579.2
Less: Excise duty 2,796.2 3,179.7 3,232.3 3,071.7 3,324.4
Net Sales 83,022.6 90,619.0 98,062.7 81,232.7 91,592.8
Other Operating Income 322.7 391.5 485.7 520.4 645.2
Total revenue from 83,345.3 91,010.5 98,548.4 81,753.1 92,238.0
operations
Total Expenses 67,944.9 74,068.7 80,622.9 68,415.6 76,519.3
Profit From Operations 15,400.4 16,941.8 17,925.5 13,337.5 15,718.7
Other income 310.3 830.9 873.2 1,100.9 1,493.9
 Finance costs 266.0 365.1 142.3 32.9 35.1
Employee benefit expense * 558.1 648.3 753.2 874.0
due to passage of time
Net provision for -81.5 207.4 249.5 301.5 1,266.7
contingencies (others)
Profit Before Exceptional 15,526.2 16,642.1 17,758.6 13,350.8 15,036.8
Items And Taxation
Exceptional items - - -138.1 -70.0 5,008.4 307.8
Charge/(Credit)
Corporate social - 0.0 85.1 206.1 313.6
responsibility expense
Profit before taxation 15,526.2 16,780.2 17,743.5 8,136.3 14,415.4
Tax expense 4,846.9 5,608.9 5,896.6 2,503.6 5,150.0
Profit after taxation 10,679.3 11,171.3 11,846.9 5,632.7 9,265.4
Earnings per Share (Rs.) 110.8 115.9 122.9 58.4 96.1
Dividends per Share (Rs.) 48.5 48.5 63.0 48.5 63.0

BRANDS:

MILK PRODUCTS AND NUTRITION:

EVERYDAY DAIRY WHITENER EVERYDAY GHEE

MILK SLIM MILK

SILM MILK NEVISTA PRO-HEART MILK

FRESH n NATURAL DAHI FREAH n NATURAL SLIM DAHI

JEERA RAITA NESVITA DAHI

MILKMAID FRUIT YOGHURT MILKMAID

 BEVERAGES

NESCAFE CLASSIC SUNRISE PREMIUM

SUNRISE SPECIAL CAPPUCCINO

MILO SMART PLUS ICED TEA WITH GREEN TEA

READY TO- DRINK

NESTEA ICED TEA

PREPARED DISHES AND

COOKING AIDS:

MAGGI 2 MINUTE NOODLES VEG ATTA NOODLES

RICE NOODLES MANIA CUPPA MANIA

SAUCES PICHKOO

PIZZA MAZZA MAGIC CUBES

BHUNA MASALA COCONUT MILK POWDER

HEALTHY SOUPS HEALTHY SOUP-SANJEEVNI

 CHOCOLATES AND
CONFECTIONERY:

KIT-KAT KIT - KAT CHUNKY

MUNCH MUNCH POP CHOC

MILKYBAR MILKY BAR CHOO

BAR-ONE CAREMAL CHOCOLATE

MILKYBAR ECLAIR ECLAIRS

 CHAPTER-3
ANALYSIS AND FINDINGS
3.1 Market Segmentation

Marketing Segmentation
The market is looking for the basic food trend among the people and Nestle is providing its
food products to the clients relating to different segments of society. As the food items are
cheap so they can be available to people of all classes and these are also available with great
ease. The food brand keeps in mind the different sections of people and their requirements
before launching of their food products.

Target marketing
Nestle is expanding its market in different regions of the world and these food items are
provided in different variety. The company is looking for new market including the rural
areas, where these food products can be made available through their effective and quick
distribution channels. The food brand is providing its food products in the target market and it
needs to meet the requirements of the clients.

Product Differentiation & Positioning

Nestle has prepared its food products in vast range, in which juices, yogurt, milk, butter and
other food items are included. The products of this brand have great quality and they are
getting popular among its clients. Nestle is the market leader in the food products and the
quality of the food products is unique and wonderful. The food brand has unique position and
the good quality food items or ingredients are used to make these food products, which can
have long shelf life and they can be used for longer time and these can also be preserved.

Example: - Nestle Slim Milk: Segmentation, Targeting and Positioning

SEGMENTATION:
1. Demographic Segmentation
In demographic segmentation, the market is divided into groups on the basis of variables
such as age, gender, income, occupation etc; these demographic variables are so popular with
marketers so that they are often associated with the consumers needs and wants.
Segmentation variables are easily measurable. Here are the demographic variables have been
used to segment markets. Nestle Slim Milk categorizes its target on the following criteria.
Age
20 to 40 years they account for the major share of the customer base as they are young
urban working professionals with limited time and a desire to lead a healthy lifestyle.
Middle age and elderly The ready-to-use tetra pack content of healthy milk is very
convenient for the elderly although frankly, this isnt the target market Nestle aims to
conquer.
Gender: Nestle Slim Milk is a gender neutral drink positioned for anyone who wishes to be
healthy.
Income: Nestle is associated with a certain luxury with their brand name and hence caters
to a segment that is well off in terms of income. E.g.; IT Professionals in India
Occupation: Students, working professionals, sports enthusiasts, athletes, health
enthusiasts.

2. Psychographic Segmentation:
Psychographic segmentation buyers are divided on following ways:

Lifestyle: Business class, working class executives, students

Personality: hardworking, health conscious.
Occasions:
Benefits: Quality, health
User status: regular user
Usage rate: regular
Loyalty status: regular Loyal
Readiness stage: intending to buy
Attitude toward product: enthusiastic, grateful

3. Geographic Segmentation:
Geographic segmentation is done using the spatial location to segment the market. In
geographic segmentation there are different schemes for the different geographical units such
as states, regions, cities. Markets are mainly divided into the rural and urban areas. The
Geographical variables have been used to segment markets in following ways:

Area: Nestle Slim Milk limits itself to semi urban and urban India as that is their
major consumer base
City: Class-A and Class-B cities i.e. metro politician cities
Region: Distribution is constant across urban areas
Socioeconomic Classification:
The people belong to the high job profile with efficient communication knowledge can use it.
The purchase potential of this product is limited up to the B1, B2, A1 and A2.

TARGETING:

In geographic segment they target cities with a rampant IT culture.

In demographic segment their main target is young working professionals (20 to 40 years).

In psychographic segmentation they targeted a2, b1 and b2 socio-economic classes. In

behavioural segmentation it was found that they were targeting the first time users and also
their regular users. They target grocers, departmental stores and hyper markets.
POSITIONING:

Nestle Slim Milk Amul (established branch in India)

Point of Difference Higher price (Rs. 80)

Lower price (Rs. 45)
Point of Parity 1. Category POP- Both are calorie free milk
2. Competitive POP- Amul is cheaper and a trusted brand in India
with a large history.
3. Nestle is a luxury good and available in selected outlets.

3.2 Marketing Mix

The Marketing mix of Nestle discusses the 4Ps of one of the strongest FMCG companies of
the world. The Nestle marketing mix shows Nestle has a strong product line which boosts its
marketing mix. Below are the products, price, placement and promotions of Nestle.
The marketing mix has been defined as the "set of marketing tools that the firm uses to
pursue its marketing objectives in the target market. Given the valuation of customers
towards potential product attributes (in any category, e.g. product, promotion, etc.) and the
attributes of the products sold by other companies, the problem of selecting the attributes of a
product to maximize the number of customers preferring it is a computationally
intractable problem.
Products in the Marketing mix of Nestle

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

Beverages One of the most known coffee brands Nescafe, belongs to the house of Nestle
and is one of the cash cows for Nestle. However, it is not the biggest cash cow. Nestle has a
worldwide distribution and has many different variants. Looking at India, Nestle has
also launched Nestea. Milk and Milk products Nestle every day, Nestle slim and Nestle
Milk maid are some of the milk and milk based products from the house of Nestle.
Prepared dishes and cooking aides Nestle has a third category of products which comes
into prepared dishes and cooking aides. The major cash cow of Nestle lies in this segment,
which is Maggi Noodles. Probably one of the most widely sold ready to cook noodle brands
is Maggi. Maggi has a fantastic taste and quality. Thus, it was not a surprise, that Nestle
expanded the Maggi brand to create an umbrella of different products like Maggi pasta,
Maggi sauce, Maggi cubes etc. The Maggi range contributes vastly to the bottom line of
Nestle.
Chocolates Nestle has some popular chocolate products, most popular being Nestle Kitkat,
Munch, Milky bar, clairs and Polo. The newly introduced Alpino is targeting the gifting
segment in response to various chocolates like Dairy milk and Bounville by Cadbury.
The chocolates segment of Nestle is a star, where the competition is high and the expense is
high but at the same time the market size is huge as well.
As they can see, two major brands of Nestle are a very high contributor to its Brand equity
Nescafe and Maggi. These are two brands sold across India in small as well as big shops and
super markets. There have been many competitors for these products, like Bru for
Nescafe and Top ramen and Sunfeast Yippie against Maggi. The appreciable factor in Nestle
is that quality maintenance of products is up to mark and there are hardly any complaints
about Nestles products in the market. This is a major achievement for a company which relies
majorly on food products.
Price in the Marketing mix of Nestle

The price is dependent on the market of each individual product. For example, Nescafe and
Maggi being the clear leaders are priced with higher margins for the company as compared to
competition. This is because the product quality is good enough and a bit of skimming
price will not cause the customer to switch brands.
The strength of pricing for Nestle comes from its packaging or consumption based pricing.
For Nescafe as well as Maggi, Nestle offers a lot of sizes and package options. In
supermarkets, you can even find a 16 packet Maggi whereas in small retail shops, you can
find 12 Rs Maggi.
Thus, with the variety available, customer can make his own choice based on his
consumption. In other products like Kitkat and Munch, due to tough competition from other
companies, Nestle offers competitive pricing. You will find that nestle will be similar priced
to many of Cadburys Products in the chocolate segment.

Place in the Marketing mix of Nestle

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

They transport more than 145 000 tonnes from 1600 warehouses daily the equivalent of 274
times around the world each day. Their partnerships with third-party logistics providers
enable us to track their environmental performance and improve efficiency by reducing miles
travelled, fuel consumed, GHG emissions, noise and congestion. Their reporting covers 66%
of their total product volume.
Approach
As outlined in the NESTLE Policy on Environmental Sustainability, their aim is to:
i. Optimise streamline distribution networks, route planning and vehicle space usage;
ii. Explore identify and define new transportation methods and alternative fuels; and
iii. Prepare train their drivers to improve safety and environmental efficiency.
Promotions in the Marketing mix of Nestle:

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

1. Nescafe Classic

(a) BRU
Another significant coffee brand in India Bru is one of the most sought after brands produced
by HUL. Introduced in the year 1969 the brand became the pioneer of instant coffee in India.
Positioned as a family coffee brand Bru even managed to push Nescafe to the second position
in 2008. Currently among the top coffee brands in India Bru accounts for 49.6% market share
of the coffee industry in India.

2. Maggi 2 Minutes Noodles:

(a) Yippee!

Another popular noodle brand in India is Sunfeast Yippee! This belongs to the Indian
conglomerate ITC. Yippee made its way into the Indian market in the first decade of the
2000s and gradually made a considerable presence. By the early 2010s, Yippee! Had started
giving market leader Maggi some sort of competition. Yippee! Noodles are available in five
different variants; namely, Classic Masala, Magic Masala, Chinese Masala, Tricolor Pasta
(Creamy Corn).
(b) Ching's Secret

Ching's Secret is another popular noodle brand in India. It is a product of Capital Food Indian
Limited. Another popular brand of noodles in India produced by Capital Food India Limited
is Smith & Jones. But Ching's Secret is the more popular one and is giving stiff competition
to the top noodle brands in India. Ching's Secret offers a vast range of products to its
customers that include Schezwan Instant Noodles, Singapore Curry Instant Noodles, Hot
Garlic Instant Noodles, Egg Hakka Noodles and Veg Hakka Noodles.

(c) Knorr Soupy Noodles

Knorr Soupy Noodles is a product of Hindustan Unilever and has turned out to be a popular
brand in India of late. Knorr is famous for its unique range of soups in India and is the
leading brand for the same but has earned accolades for its unique combination of noodles
and soup, that is, Knorr Soupy Noodles. Knorr noodles range consists of Mast Masala Soupy
Noodles, Knorr Chinese Noodle Hot Spicy, Knorr Chinese Noodle Schezwan, Chinese
Noodles and Fried Rice.

3. Kitkat chocolate

(a) Cadbury

Cadbury is a British multinational chocolate major. It is handled by Mondelez India (earlier

Cadbury India). Cadbury was established in Birmingham, U.K. by John Cadbury in 1824.
Cadbury entered India in 1948 and started its operations by importing chocolates. Today,
Cadbury is the most loved and most widely sold in India. According to Euromonitor
International, Cadbury accounted for 55.5% of the total chocolate sales in India during 2014.
Dairy Milk is the flagship brand of Cadbury.
(c) Amul

Amul is India's indigenous dairy cooperative primarily dealing in dairy products. It is also
one of the biggest players involved in chocolate manufacturing industry of India. Amul is
owned by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) and was founded
in 1946 by Dr. Verghese Kurien. The credit of making India the largest producer of milk and
dairy products by bringing about the 'White Revolution' goes to Amul. Milk chocolate is
Amul's most trusted brand amongst Indians. Accounting for 1.1% of India's overall chocolate
sales volume in 2014, Amul stands fourth.

4. Nestle Milk

(a) Mother Dairy

Mother Dairy toned milk which is a mix of cow and buffalo milk was very light with a faint
aroma. The texture was smooth, but it wasn't creamy like the others. Some of the tasters
found it to be slightly watered down. The freshness didn't stand out considering the fact that
the others provide all tetra packs.
Calcium per 100 ml - 127 mg
Calories - 59 Kcal

(b) Amul Taaza

It tasted somewhat artificial and had a bitter aftertaste. Some deemed that it was synthetic and
boring. 'Nothing interesting,' remarked one of them. Amul Taaza was also a mix of cow's and
buffalo's milk.
Calcium per 100 ml - 150 mg
Calories - 58.2 Kcal
These are some of the major competitors for Nestle Company in the Indian market.
ORGANISATIONAL SET UP:

Marketing
MARKETING: The focus, the strength of NESTLE brand portfolio and the breadth of their
brand activities make their Marketing team the place to be.
As the function driving its brand-building efforts, Marketing is right at the heart of what it
does. Indeed, Brand Building the NESTLE Way is a distinctive process that sets its
marketing function apart in the industry from both a commercial and a career point of view.
NESTLE Marketing team provides an end-to-end marketing service reflected in their three
key areas: brand management, communications and consumer insight. Importantly, marketing
is not an isolated activity here their focus on the consumer ensures that they provide a
seamless service, working hand-in-hand with their Sales & Customer Development teams.

Sales & Customer Development

SALES: Multiple portfolios; multiple geographies; multiple channels. People will never have
a dull day.
Fast-moving consumer goods (FMCG) have made their business they are today.
Driving all this forward is its Sales & Customer Development team. They have a very varied
brief. They handle category and shopper management, customer relationships, route to
market strategies, field sales activities and their customer-facing supply chains. All of these
areas are focused on delighting their consumers and making sure their products are where
customers want them.

Human Resources
HUMAN RESOURCES: The function responsible for enabling the business in growing is
always a lucrative option.
As the function attracting, developing and engaging more of the exceptional talent that they
need to grow their business, HR offers opportunities in three key areas. You could continue
your career in HR business partnership helping line managers improve business performance
through people. If youve proven experience in recruitment, development or another
specialist HR area, youll join their team devoted to specialism. Or you could join their
Employee Services team; the group that ensures their employees have their essential needs
taken care of so they can focus on what they do best.

Finance & Control

FINANCE & CONTROL: Their ambition is to be the reference for financial performance.
Make their Financial and Control team your next career destination and youll monitor and
report the performance of their business, analyse strategic issues and complete specific
projects. Whatever your particular focus, youll never be short of challenge and can be sure
that your ideas and expertise will sharpen their competitiveness.

After sales services:

NESTLE sells an extensive range of grocery products through its own sales force, and
distributors' sales forces. In their daily visit to the customers, the sales teams are expected to
perform a number of different activities such as market surveys, asset tracking and
merchandiser audits to gather customer and market intelligence. However, most activities
have traditionally been carried out manually using pen and paper. This resulted in lost time
and was prone to data entry errors. Manual processes also often lacked checking mechanisms.
As a result, the accuracy of secondary sales data has always been a key concern.
Another challenge was with the way information was managed. When a sales person was on
site with a customer, he or she often lacked the necessary information on hand to respond to
basic questions such as stock availability, product information, order status or current pricing.
What they needed was a tool to sell the right product range at the right outlet, in the right
channel and with right promotional activity.
"To enable us to scale their operations efficiently and cost-effectively, they needed to look for
new technology and solutions that would increase productivity manifold, without necessarily
increasing cost.
SOCIAL RESPONSIBILITY:
NESTLE India extends its support to girl child education in association with Nanhi Kali, one
of the largest community programs imparting education to underprivileged girl children
across India.
Nanhi Kali

This initiative further strengthens the NESTLE Healthy Kids Programme which has already
reached out to about 1,00,000 beneficiaries. Project Nanhi Kali, jointly managed by K. C.
Mahindra Education Trust and Naandi Foundation, has been a credible programme over the
last 20 years working in the area of girl child education. Leveraging on the extensive work
done by Nanhi Kali, NESTLE India is supporting this cause and will become a part of the
movement.
Speaking on the partnership Mr. Suresh Narayanan, Chairman and Managing Director,
NESTLE India said, They are delighted to be a partner in the cause of promoting education
of the girl child that has been championed by Project Nanhi Kali for years. The objective is to
sensitize and draw attention to the fact that society needs to embrace collective responsibility
in ensuring that more girls have the opportunity to pursue education. Girls with access to
education not only improve their own lives but also bring changes to their families,
communities and economies. This partnership is a powerful tool to draw attention and
awareness of the cause, to then involve in helping the girl child seek education and for
ensuring, among other aspects, that children understand the value of nutrition and leading
healthy lives. This is NESTLE Indias humble way of making a small yet deeply felt
contribution to a cause that is important and vital to their society.
According to Mr. Anand Mahindra, Chairman and Managing Director, Mahindra Group,
The Nanhi Kali partnership with NESTLE is unique. It will go beyond the traditional model
of sponsoring girls education to helping generate huge awareness of the cause. I do believe
the partnership with NESTLE will give a fillip to donations and bring us closer to their goal
of providing education to a million girls. I am immensely grateful to NESTLE for their
invaluable support.
Highlighting the issue of the need for girl child education and with the intent to create
awareness, this partnership has been marked by the launch of the campaign
#EducateTheGirlChild. The social media campaign, narrating a series of stories on themes of
gender bias, domesticity, sanitation, infrastructure and social taboos, aims to provoke the
community at large to join the movement of educating girl child. Under the aegis of the
NESTLE Healthy Kids Programme, this partnership will provide on ground support to girl
children through necessary academic material and social backing. This will be augmented by
identifying critical centres of education of the Nanhi Kali project and impart nutrition
Education there.

NESTLE India Changes Packaging of Iconic Brands MAGGI, NESCAF and KITKAT
Supports the Cause of #EducateTheGirlChild with Nanhi Kali

NESTLE India has brought about a change in packaging of three of their most iconic brands,
MAGGI, NESCAF and KITKAT to support girl child education in association with Nanhi
Kali, one of the largest NGOs imparting education to underprivileged girl children across
India. In an attempt to spread awareness for this critical issue of girl child education in India,
NESTLE has changed packaging of 100 million packs available on shelves by the end of
September.
In an innovative approach and for the first time in India for any FMCG brand, MAGGI,
NESCAF and KITKAT will give up their most iconic and recognized brand properties to
support the cause of educating the girl child. MAGGI has changed its tag line from 2 minute
noodles to 2 minutes for education. KITKAT has changed the visual of the finger snap to
one without the break with the line No break from education and NESCAF changed the
tagline It all starts with a NESCAF to It all starts with education. This has been further
reinforced with a blue band which carries more information on the association with the URL
of Nanhi Kali.
Speaking on the partnership Mr. Suresh Narayanan, Chairman and Managing Director,
NESTLE India said, Brands are built with purpose and exist by earning the love and trust of
consumers over time. Each time a consumer picks a pack off the shelf, the visual properties
of the brand serve as symbols of the promise the brand has made to the consumers. These are
invaluable assets, protected, cherished and treasured by organizations. They are changing the
packaging of three of their most iconic brands to sensitize and draw attention to the crucial
need for society & citizens to embrace their collective responsibility in ensuring that girls are
allowed, given access to and nurtured with the power of education. Girls with access to
education not only improve their own lives but also bring positive changes to their families,
communities and economies. This is their belief and conviction as NESTLE India and their
humble way of making a small yet deeply felt contribution to a cause that is important and
vital to Indian society.
Mr. Anand Mahindra, Chairman, Mahindra Group, says This is a path-breaking and
innovative partnership between NESTLE India and a non-profit organisation, both leaders in
their respective field. They believe that supporting girls education is a national priority and
will have a far reaching positive impact on society. I am sure the new packaging of MAGGI,
NESCAF and KITKAT carrying the message to #EducateTheGirlChild will have the
desired impact of helping Nanhi Kali put a million girls in school. I am immensely grateful to
NESTLE for their support to Nanhi Kali."
The partnership with Nanhi Kali further strengthens the NESTLE Healthy Kids Programme
which has already reached out to about 1,00,000 beneficiaries. Project Nanhi Kali, jointly
managed by K. C. Mahindra Education Trust and Naandi Foundation, has been a credible
programme working in the area of girl child education for decades. Leveraging on the
extensive work done by Nanhi Kali, NESTLE India is supporting this cause and has become
a part of the movement.

3.3 New Product Development Strategy

Strategy
Nutrition plays a profound role in everyones life. Their strategy focuses on delivering
distinct benefits to people through the food and beverages, products and services they
provide. Over 150 years they have built a successful business by understanding and
anticipating the needs of society, and continuously adapting their selves to seize the
opportunities presented to us.
The fast-evolving needs and expectations of society today reconfirm the validity of their
Nutrition, Health and wellness strategy. The world is at an inflection point. The speed,
intensity and the breadth of change is unprecedented. Digital disruption is reshaping their
industry, their relationships with their suppliers and retailers, and with the people who buy
their brands. Advances in science and technology are opening up new opportunities for us to
play a role in addressing the challenges society faces. In a world where hundreds of millions
of people are under-nourished, malnourished or over-weight they are well positioned to help
contribute solutions.

Their strategic priorities

It is more important than ever to ensure that resources are dedicated to the right projects,
maximising the effectiveness of what they spend. They have a strong cost control culture.
Through NESTLE Continuous Excellence they continuously improve their operations and
deliver savings. With NESTLE Business Excellence they simplify, standardise and share.
This is creating back office efficiencies, helping us to leverage their size and scale to deliver
competitive advantage, and unlocking resources. These are the fuel for growth, brand
support, Research and Development, innovation and renovation.
They challenge their selves continuously to look for new opportunities and for areas where
they can make a contribution to the issues society faces. This creates shared value for the
communities where they operate and for their shareholders. They are contributing to society
while growing their business. Trust is fundamental to their success. Trust helps deliver
growth, creating shared value for their shareholders and for society. Quality and compliance
underpin that trust, and are the best way to ensure the long-term success of their business.
Their strategy helps achieve their purpose: enhancing quality of life and contributing to a
healthier future. NESTLE is always anticipating and adapting to the changing world, guided
by their purpose and their values, as they have since the company started 150 years ago. Their
purpose defines why the world is a better place with NESTLE, better for those who enjoy
their products and services, and for those who are affected by their business. It is the
inspiration for each and every one of us in the company. It aligns their actions and creates a
common language. It is the compass for their decisions and for everything they do. It helps
ensure they remain a long-term company delivering with short-term intensity, investing
for future success while ensuring that they meet the needs of the billions of people they touch
every day, and the expectations of their shareholders.

Nestle SWOT Analysis

Nestle Strength

The food brand has been doing business in market for over 140 years.
It is considered world biggest food brand and it is included in fortune 500 list.
The brand has considerable global reach in over 86 countries.
The brand has employed over 328,000 people across the world.
The brand has maintained wide product range like pet food, baby food, beverages, dairy
product, pharmaceuticals and confectionaries.
The brand has various subsidiaries brands like Kit Kat, Maggi, Boost, Haagen-Dazs and
Nescafe.
The brand has maintained large R&D network, which is busy in carryout research and
development work and also busy in innovation.
The brand has maintained strong supply chain network.
The food brand adopted strong marketing and advertising campaign.
The company has done some mergers and acquisitions and also makes the joint ventures to
enhance its market share.
The company initiates the CSR activities for the environment protection, rural development,
water conservation.
The brand enjoys strong brand loyalty and brand recall.

Nestle Weaknesses
 Nestle is the big global brand but it has to face different controversies in the countries,
where their operations are being carried out and they can cause issues.
The brand has strong competition with other food brands in market.

Nestle Opportunities

The food brand needs to introduce more health base food products and give awareness
among the customers.
The company needs to tap its business in the rural markets.
The brand needs to expand its business in developing countries as there is huge customer
base in these countries.
The food brand needs to make more joint venture and acquisitions to enhance their market
share.

Nestle Threats

There is increase the cost of raw materials for the preparation of the products.
The brand has to face strict competition in product segment.
The company fails in maintaining complex supply chain.
The brand faces economic instability and inflation in most of the countries.
The company has to face EURO zone crisis and the company earns more revenue from
Europe.

Marketing Objectives
Nestle does the analysis of the products and it also helps to carry out different studies about
its products. The brand is working hard to know the eating trends of people and the necessity
of the food items, which people like to eat eagerly. The company is spreading its business in
almost all regions across the world and its business is getting attention of its clients. The
research work is also being carried out to know the basic objectives and the trend of food in
people.

Future
The future for NESTLE's R&D is firmly set on the path of Nutrition, Health and wellness.
The innovations and product renovations of the coming years will be driven by nutrition that
is tailored to better meet the needs to their consumers. These needs may be defined by their
genes, the metabolites that their body creates or by the way the brain perceives food. At the
same time NESTLE R&D is committed to continuous improvement in consumer insights,
and translating these into innovative products and packaging to meet consumer needs and
preferences.

2020 objectives

By 2017: Further enlarge the scope of their database on agricultural raw materials used in
EcodEX.
By 2017: Identify or update and address the sustainability hotspots for 15 product categories.
By 2020: Identify, update and address the sustainability hotspots for 20 product categories.

Product life cycle:

Their commitment: Assess and optimise the environmental impact of their products

They assess and improve their products from development to disposal. This gives us a clear
understanding of their lives or life cycles. Their life-cycle assessments (LCAs) enable us to
focus on minimising their environmental impact across their products lives.
The LCAs inform their decision-making, helping us to improve their environmental
performance while responding to stakeholder concerns and providing us with credible
evidence to support specific marketing claims.
Total number of NESTLE employees worldwide from 2008 to 2016 (in 1,000s)
This statistic depicts the total number of NESTLE employees worldwide from 2008 to 2016.
In 2016, NESTLE employed approximately 328,000 people around the world. NESTLE is a
multinational consumer goods company, headquartered in Vevey, Switzerland.

Marketing control system in Nestle Company:

NESTLE is a globally recognized food and nutrition company. Their product portfolio covers
almost every food and beverage category. The most well known brands include
KitKat, Nescaf, Milo, Nestea, Nesquik, Maggi, Herta Purina, Nespresso to name a few. The
company has many brands in the following categories: Baby foods, bottled water, cereals,
chocolate and confectionery, coffee, culinary and cooking, chilled and frozen food, dairy,
drinks, professional food service, health care nutrition, ice cream, pet care and weight
management.
To maintain a company of this size, a lot of rules are implemented. In this situation,
management control plays an important role for the company. Control is a regulatory process
of establishing standards to achieve organizational goals, comparing actual performance
against the standards and taking corrective action when necessary (Williams & McWilliams,
2010, p.319)
There are 3 methods of control, which are feed forward control, concurrent control and
feedback control (Williams and McWilliams, 2010).
Feed forward control is a mechanism for gathering information about performance
deficiencies before they occur. In contrast to feedback and concurrent control, which provides
feedback on the basis of outcomes and results, feed forward control provides information
about performance deficiencies by monitoring inputs, not outputs (Williams and McWilliams,
2010). Feed forward controls are helpful to managers because they allow a manager to plan
work effectively; they can regulate resources like employees, raw materials and capital ahead
of time. The company ensure that all NESTLE units have the necessary systems in place to
deliver the same level of basic safety and health protection for all employees to avoid
incidents. Nestle follows their slogan of good food, good life by training their employees to
produce high quality products.
Concurrent control is a mechanism for gathering information about performance deficiencies
as they occur. Thus, it is an improvement over feedback, because it attempts to eliminate or
shorten the delay between performance and feedback about the performance. (Williams and
McWilliams, 2010). Nestle factory uses concurrent controls when decisions simply cannot be
made based on a preventative approach. As problems can arise during an activity, rather than
wait until the entire work activity is completed concurrent controls allow managers to
monitor work as they occur. Some of the areas of an organization that benefit from
concurrent controls are production and employee behaviour.
Feedback control is a mechanism for gathering information about performance deficiencies
after they occur. This information is then used to correct or prevent performance deficiencies.
Study after study has clearly shown that feedback improves both individual and
organisational performance. In most instances, any feedback is better than no feedback.
However, if there is a downside to feedback, it is that it sometimes occurs too late.
Sometimes it comes after big mistakes have been made. (Williams and McWilliams, 2010).
Nestle like to listen feedback from their employees and customers. According from that
negative feedback, Nestle Company try to solve these problems. Other than that, Nestle
Company do research about what their customer want and try to create something new.
 CHAPTER-4
SUGGESTIONS
SUGGESTIONS:

1. Firstly, NESTLE should generate trustworthy brand in the mind of their customers. This is
so because when the MAGGI Noodles was banned, the company loosed many of their
customers. Even though after the post-ban, myriad customers have not tried their yummy
MAGGI. This was because the customers dont want to take risk from their life. So, now
company has to build that trust again.
2. With a growing interest in the health segment by younger generations, it would be of
recommendation to NESTLE to consider its involvement in this segment. Now, old
generation are also focussing on their health, this can prove to be an early mover advantage.
3. NESTLE ought to apply the five criteria for effective targeting of market segments namely
that it must be identifiable, sizeable, stable, and accessible and coincide with the companys
goals and resources, in order for it to be truly successful in this crucial stage in terms of a
companys strategy.
4. Lucrative Advertisements of products can prove to be a salient tool in increasing the sale
of the company.
5. Indian Economy is a Vast Economy where different types of personality behave
differently. Here, different culture has different taste. So, NESTLE has to analyse the market
so that it can succeed in making a unified product without being hurting any religion
sentiment.
6. The company can add new flavours in their product line to boost up the sale which will
also give much new option to the customers. For example: Tasting the product again and
again makes the product boring for the customers. Adding new flavours will keep their
customers away from their competitors.
7. NESTLE should work on its distributions channels so that their products can reach in rural
and semi-urban areas. Since, NESTLE follows Penetration Pricing Strategies, it would be
affordable for every section of society. But this can only work on Strong distribution Channel
of the brand.
8. NESTLE should install latest technology for reducing their cost of production and can
serve better from competitors.
9. NESTLE must state in writing that it accepts the international code and the subsequent
relevant World Health Assembly Resolutions are minimum requirements for every country.
Nestle must state in writing that it will require changes to bring its Baby Food Marketing
policy practice into line with international code and Resolutions.
 CHAPTER-5

1. CONCLUSION
2. BIBLIOGRAPHY
CONCLUSION

Through NESTLE brands, their products and the services they offer, they are helping and
inspiring people to live healthier lives. They are building, sharing and applying nutrition
knowledge, and empowering people to make informed decisions about what they eat and
what they feed their families. Their Start Healthy Stay Healthy programme helps parents and
caregivers provide their children with the best start in life. In partnership with other
stakeholders, their United for Healthier Kids programme helps establish healthier eating,
drinking and lifestyle habits, and the NESTLE Healthy Kids Programme is teaching nutrition
and encouraging physical activity.
They want their products to be the healthiest and the tastiest choices in each and every
category they compete in. They use quality ingredients people know and trust, adding
nutrients where appropriate. They are substantially reducing sugar, saturated fat and salt. By
communicating clearly about the contribution each product makes to a healthy diet, they are
helping people make informed decisions about what to eat and drink.
Their new nutrition and health platforms NESTLE Health Science and NESTLE Skin Health,
allow us to apply the knowledge they have developed with the most advanced Research and
Development network in the industry. They enable us to develop products and services that
meet specific needs of different parts of the population, to help address issues the world
faces, for example rising healthcare costs.
By keeping their selves relevant in this fast-changing world, they can deliver industry-leading
growth. They work with agility, creativity and discipline, constantly innovating and
renovating their portfolio. Their Research and Development capability ensures they maintain
their leading positions in the categories they compete in, driving growth throughout the
portfolio. The innovation is broad-based across all categories, brands and markets. It comes
in many forms from blockbusters like Nespresso, to renovating products to keep them fresh
and relevant as they have done with brands like Nescaf and Nescaf Dolce Gusto, Nido,
Milo and Maggi.
Digital innovation is a strong competitive advantage and a cornerstone of the companys
future development. For some time now they have been creating a digital-first culture that
enables us to manage and to benefit from the disruption digital is bringing. As the fourth
industrial revolution takes hold, they are confident that they can capitalise on the efficiencies
and the opportunities digital brings.
BIBLIOGRAPHY

Books:

Websites:
https://en.wikipedia.org/wiki/NESTLE
https://www.nestle.in/brands