PROJECT REPORT

On

“A Study on Consumer Behavior towards Nestle”

Submitted to
M.D.UNIVERSITY, ROHTAK
FOR PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE
AWARD OF THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION
BATCH: 2016-2019

Submitted to: Submitted By:

Controller of Examination Manish
M.D.University ,Rohtak BBA- 6th Sem

UNDER THE GUIDANCE OF Roll no.:

Mr. Virender Kumar Registration No.

INSTITUTE OF MANAGEMENT AND TECHNOLOGY, SEC- 86, TIGAON ROAD,

FARIDABAD – 121004
 DECLARATION

I MANISH Roll no …………………. Class BBA 6th Semester of Institute of Management

& Technology, Faridabad hereby declared that the project entitled “A STUDY OF
CONSUMER BEHAVIOUR AT NESTLE” is an original work and the same has not been
submitted to any other institute for the award of any other degree. The interim report was
presented to the supervisor on ……………………….. And the pre-submission presentation
was made on …………………………… The flexible suggestions have been duly
incorporated in consultation with the supervisor.

Signature of the Supervisor Signature of the Candidate

Countersigned

Forwarded by
Director Principal of the Institute
 PREFACE

The objective of the project was to do Market Research and consumer behavior towards
Nestle for that we have to understand the customer needs, Income, constraints, response and
emotions so that they can contribute their time for becoming Life advisors for the company.

We cannot rely merely upon the theoretical knowledge. It is to be complimented by practical

know-how for it to be fruitful. A positive and correct result of the classroom learning needs
realities of practical situation.

The study enables the management students to see the working conditions under which they
have to work in the future. It gives them a real feel of the corporate world, which helps them
to better equip themselves with the required skills. It has been a great learning experience for
me.

The project report is divided under 5 chapters:

Chapter 1 includes significance; review of literature, focus of study and objectives

Chapter 2 includes the industry and company profile

Chapter 3 includes research methodology and limitations of the study

Chapter 4 includes the theoretical analysis and findings of the study

Chapter 5 includes bibliography and annexure.

.
 ACKNOWLEDGEMENT

I take this opportunity to express my gratitude and profound thanks to our respected Principal
Director Dr. Ravi.K Handa.

I express a deep sense of gratitude to my Guide Mr. Virender Kumar for his
encouragement, support and guidance to complete this project work successfully.

Finally, I express our sincere thanks and deep sense of gratitude to my parents and friends for
giving timely advice in all the ways and in all aspects for doing the project.
 TABLE OF CONTENTS

CHAPTER TITLE PAGE NO

1 INTRODUCTION OF THE STUDY

Significance of problem
Review of existing literature
Focus of the study
 Objectives of the study
Need of the study

2 RESEARCH METHODOLOGY
Industry profile
Research design
Sample size and techniques
Data collection
Data analysis
Limitations of the study

3 MICRO ANALYSIS

4 MACRO ANALYSIS

5 SUMMARY OF OBSERVATIONS
Findings
conclusion

7 BIBLIOGRAPHY

APPENDICES
Questionnaire
List of tables
8 List of graphs
 CHAPTER-1
INTRODUCTION OF THE
STUDY
 SIGNIFICANCE OF THE PROBLEM

The clear purpose or objective of the research enables the researcher to collect – necessary

relevant information. The objective of the research is to know the Customer Behaviour towards

Chocolates. In this study we find out that there is increase in demand of chocolates among

customers.

The company has introduced a variety of chocolates & other products for their customers to

fulfill their level of satisfaction. Nestle has done a market research in an appropriate manner, so

that the tastes and preferences of their customers can be fulfilled. Nestle has managed to satisfy

the needs of variety of customer segments such as Kids, Teenagers and so on with good quality

products.

REVIEW OF THE LITERATURE

The Research Project is to know the Analysis of Market Segmentation of Nestle Chocolate and

Customer Behaviour towards Chocolates

 Bitta, Della, Loudon, “Consumer Behaviour and concepts and applications” Fourth Edition,

Tata Mc Graw Hill, New Delhi, PP 5-8,9,19

“Defining consumer behaviour, significance” is studied from this book & significance of

consumer behaviour for a marketer. Is studied

 Leon G. Schiffman and Lesli Lazar kanauk, Consumer Behavior, Eight Edition, Prentice Hall

of India, New Delhi, PP 8,9,11,19,20

Study of the customer behaviour is the study of how individuals make decisions to spend their

available resources (Time, Money and Efforts) on consumption related items. It includes the

study what they buy, whey they buy it, when they buy it, where they buy it, how often they buy it

and how often they use it.

 “Kothari C.R.,” Research Methodology Methods and Techniques (Second Edition) New Age

International Publishers, Ansari Road, Daryaganj, New Delhi-110002. Chapter 4, Page 55-58.

Chapter 6, Page 95,100,111

INTRODUCTION TO THE STUDY

The only listed player in sugar-boiled confectionery has not done too well either. Parry’s

Confectionery, a leading player in sugar-boiled confectionery, has reported shrinking sales

volumes in 2018-2019, after robust financial performance in earlier years.

Screeching to a halt these topline numbers only reflect the ground realities. Industry sources

estimate that the 22,500-tonne chocolate market, which grew at a robust 12 per cent per annum

until 2018, grew by just three per cent in that year.

Several factors appear to behind this slowdown. As with all other FMCG products, the demand

for confectionery products appears to have been hit by the economic slowdown and the

consequent shrinkage in consumer spending. Confectionery products are impulse foods and thus

appear to have borne the brunt of a cutback in consumer spending over the past couple of years,

while staple foods have continued to exhibit healthy growth rates.

This is evident from ORG-MARG figures which suggest that the annual per capita consumption

of chocolates actually fell from 312 grams in 2017 to 307 grams in 2018, while that for sugar

boiled confectionery fell from 621 grams to 579 grams (source: ORG-MARG Milestone Papers:

The Growth Inertia). Branded staples such as Atta and salt registered a healthy increase in per

capita consumption over this period.

No price hikes.

Despite fairly aggressive promotional efforts by marketers, the overall penetration level for

chocolates registered no increase between 2018 and 2019.

Consumption of chocolates could have been impacted by the selling price increases that

marketers affected between 2018 and 2019. In 2018 and 2019, selling prices of key chocolate

brands were pegged up by 5-15 per cent, partly reflecting a spike in cocoa prices in that period.

This probably contributed to the sales growth for the year.

However, with cocoa prices falling sharply in the second half of 2018, marketers are forcing to

maintain selling prices of most products, holding back value growth in sales. Nestle India, the

market leader in the chocolate segment (market share 71.9 per cent) saw the growth in its

chocolate portfolio slow to 6 per cent in the April 2018 to April 2019 period, from nine per cent

the previous year.

This is mainly due to the healthy double digit growth rates in its flagship brand -- Nestle. Brands

such as 5 Star and Perk stagnated in 2018-2019.

India's chocolate portfolio (comprising of KitKat, Munch and Charge commanding a total

market share of 24.7 per cent) slowed even more dramatically, registering less than one per cent

growth between April 2018 and April 2019.

Though Nestle recent launch, Munch, has been a success, the low-priced brand has moderated

the value growth in Nestle portfolio. Wooing adults now The Avenue for growth appears to lie in

taking advantage of the low penetration level for chocolates by roping in new consumers.

The chocolate majors attempted to do this by repositioning chocolate, earlier targeted at children,

as a snack food for adults. Nestle chocolate-coated wafer was essentially sold on this platform.

Though products did succeed initially (Nestle India claims to have added eight million new

consumers in 2018), growth in this segment appears to be petering out. Banking on smaller

editions Of late, the chocolate majors have been rejigging their products to launch chocolates in

the Rs 10 and Rs 5 price points. Mimicking the trend in other FMCG products, the chocolate
majors have been relaunching their conventional chocolate brands in smaller unit packs, hoping

that this will prompt more frequent purchases and pep up volume growth.

The past year has seen a slew of such launches, the 18-gram version of 5 Star (retailing at Rs 5),

the 15-gram version of Nestle Dairy Milk (Rs 5), Perk Slims (Rs 5), Nestle Chocó box (a

chocolate biscuit combination priced at Rs 5), Nestle Crunch (a mini snack at Rs 6) and Nestle

Munch (Rs 5). It is early days yet to judge if this has indeed pepped up volume growth in the

segment. However, the chocolate majors do not have much to lose. Unlike the low unit pack

versions of products such as shampoos, the low unit packs of chocolates do not cost less on a per

gram basis than their normal versions.

Seeing the cold war in the chocolate industry the company had to decide to go one step ahead to

beat the competition and to promotion activity to Nestle Chocolate.

WHY PROMOTION ACTIVITY?

Now a days dealers are expecting the promotion activity for availability of the product at the

right time is very important.

It happens where dealers will be least care about the brand availability by offering this promotion

activity Nestle will be able to hit the minds of dealers and again this activity will also help in

improving the image of Nestle where it is weak, as well as the specialties like dairy milk etc.

CUSTOMER FOCUSED MARKETING

The logical strategic point is to understand how logistical competency contributes to marketing

performances. Firms guided by market opportunity view satisfaction of the customer as the

motivation behind of the entire activities.

The objectives of marketing initiatives are to penetrate chocolate market and generate profitable

transaction. This posture often referred to as the marketing concept emerged as part of the buyer-

dominated market hence the attention is directed to their fundamental concept.

CONSUMER SATISFACTION

Consumers satisfaction means not an end in itself it is the means fulfilling the need of the

consumers and leads us to the their major distinguishing feature of the marketing concept

emphasis that it is not enough if a firm has consumer orientation, it is essential that such an

orientation leads to consumer satisfaction.

The concept underscores that no firm can afford to ignore the satisfaction of the consumer. It

counter the temptation of short sighted attitude toward consumer’s satisfaction.

WHY MEASURE CUSTOMER SATISFACTION?

The average business lose between 15% and 30% of its customers each year, often without

knowing

 Which customers they have lost.

 When they were lost

 How much the customer lost their needs

Research has demonstrated conclusively that if is a for more costly to win a new customer than it

is to maintain an existing one.

Measure customer’s satisfaction and acting appropriately on the result, will increase profitability.

Not taking action allows your customers base to decay which permitting your completion to gain

market share.

How am I doing? Posing that question demonstrated the question of openness, courage and a

willing to change. American business increasingly ask their customer similar question and the

extension service should be doing the same entrepreneur Tom Leon arm reminds us of an

excepted marketing principal that says that it costs five times as much many to get a new

customers into a store than it does to keep an old happy.

I perhaps that’s way Leonard and many other business people, and here uncompromisingly to a

corporate policy of:

 Rule 1 : The customer is always right

 Rule 2 : If your customer is even wrong reread Rule

CUSTOMER BUYING BEHAVIOUR

The main aim of marketing is to be met and satisfy target customers need and wants. The fields

of customer behavior studies how individuals groups and peoples select buy the goods to fulfill

their needs.
Understanding customer behaviors and knowing customer is a never simple customer may state

their needs and wants but act otherwise. They may not be in touch with deeper motivation. They

many respond to influences that change their mind at the last minute.

Nevertheless marketers must duty their target customers and customer wants preparation

preference shaping and buying behavior. The customer responds with certain observable buyer

responses, including product choice brand choice purchase timing and purchase amount.

Culture is the most basis determinant of a person’s want and behavior. It includes the basis value;

perception, preferences and social factors also influence buyer behavior. Product and brand

choice are strongly affected by a person’s reference group, including family, friend, and personal

factors such as age and life cycle stage, occupation, economic situation, and personality also

influence buying decision finally customer behavior is also influence by four major

psychological factors motivation, perception, learning and beliefs and attitudes.

Some buying decision involve only and decision-maker but in other decision several customer

may participate by playing different buying roles. These role includes initiator influences, decide

buyer and user in some cases different person plays each of these roles but in other decisions the

same person may take on several distinct role.

These are four different types of buying decision behavior. The type of decision behavior

employed is affected by complexity of the buying situation the number of participants and the

amount of buying effort required, the level of buyer involvement and the degree of different

among brands customers may engage in complex, dissonance reducing habitual or Varity seeking

buying behavior.
 Marketers can be more effective than they understand the type of buying behavior their

customers is must like to employ before making a purchase, consumer go through a decision

process consisting of need recognition information search and evaluation of alters natives the

purchase decision and post purchase behavior.

The marketer’s job is to understand the buyer’s behavior at each stage and the influence that are

operating. This allows the marketer to develop significant and effective marketing programs for

that target market.

The buyer decision for new products add additional complexity customer passing through the

stage of an awareness, interest, evaluation, trail and finally adopting. Customers respond to new

products at different rates depending upon individual differences in innovativeness. Whether they

are innovators, early adopter, early majority, late majority or laggards.

Finally the characteristics or the new product itself relative advantage, capability, complexity,

divisibility and communicability will affect the rate of adoption.

Customer behavior is complex and difficult to understand ever familiar country marketers who

must deal with consumer behavior across international borders face an additional challenge.

Customer in different countries may very dramatically in values, attitudes and behavior. These

different often-significant changes in products and marketing programmers to achieve success in

international markets
In the 1940s and 50's, marketing was dominated by the so-called classical schools of

thought which were highly descriptive and relied heavily on case study approaches with only

occasional use of interview methods.

At the end of the 1950s, two important reports criticised marketing for its lack of methodological

rigor, especially the failure to adopt mathematically-oriented behavioural science research

methods. The stage was set for marketing to become more inter-disciplinary by adopting a

consumer-behaviourist perspective.

From the 1950s, marketing began to shift is reliance away from economics and towards other

disciplines, notably the behavioural sciences, including sociology, anthropology and clinical

psychology. This resulted in a new emphasis on the customer as a unit of analysis.

As a result, new substantive knowledge was added to the marketing discipline – including such

ideas as opinion leadership, reference groups and brand loyalty. Market segmentation, especially

demographic segmentation based on socioeconomic status (SES) index and household life-cycle,

also became fashionable.

With the addition of consumer behaviour, the marketing discipline exhibited increasing scientific

sophistication with respect to theory development and testing procedures.

In its early years, consumer behaviour was heavily influenced by motivation research, which had

increased the understanding of customers, and had been used extensively by consultants in
the advertising industry and also within the discipline of psychology in the 1920s, '30s and '40s.

By the 1950s, marketing began to adopt techniques used by motivation researchers including

depth interviews, projective techniques, thematic apperception tests and a range

of qualitative and quantitative research methods.

More recently, scholars have added a new set of tools including: ethnography, photo-

elicitation techniques and phenomenological interviewing.[4] Today, consumer behaviour

(or CB as it is affectionately known) is regarded as an important sub-discipline within marketing

and is included as a unit of study in almost all undergraduate marketing programs.

CUSTOMER EXPECTATION

The main points that have emerged in the survey are:-

 Around 90% of the customers are ready for Nestle chocolate as they have faith in Nestle

brand.

 The customers expected the following facilities from Nestle.

1 FREEZER: -

All the chocolate company viz. Nestle and nestle give their own freezers and the customers are

not allowed to stock other company’s product in it. The freezer now being provided by Nestle are

two type. The first serve the dual purpose of storage and also a display counter as they come with

a transparent glass.
According to the retailers these freezer have added to their sales now the customer can actually

see that various chocolate kept inside further these chocolate operate on only 100 watts of

electricity can on an inverter too and the chocolate does not melt up to a long time.

The second type of freezer is the rack freezer. The deposit taken generally depends on size and

the kind of freezer taken but in certain cases I found out that the customers differ and tend to be

flexible with the amount of sales given by that particular customers.

2. ADVERTISING: -

This is another factor that affects the customers a lot. All the major player and especially Nestle

take Special care in this respect. Nestle also does the advertising but not as Nestle. Nestle has to

take aggressive advertising countered especially at Delhi market. The retailers have Cleary

stated That they would first see the demand of the product in the market coupled with

advertising support From the company and only them they would be interested in stocking

Nestle chocolate.

2. REPLACEMENT POLICY :-

Nestle is already blamed for poor replacement policy and with two major player giving this

policy. Nestle has to giving certain kinds of replacement policy to make its product more

acceptable to the retailers for instance Nestle gives 100% replacement for product defects and

around 80% replacement for damage due to some the time taken by the company to

reimbursement
4. QUALITY AND DEMAND:-

Big retailers said that they would keep the product only when the customer demand for it. There

policy and other retailer said that the quality of chocolate should be good and should be in more

variety.

5. PROPER DISTRIBUTION:-

Nestle have sound distribution system. They give their dealer a lot of monetary benefits through

schemes and dealers in turn taken care of proper distribution. Dealer are gifted on achieving sales

target. The dealers also take care of malignance of freezer in the event of these to repair the

freezer.

6. SCHEMES:-

During the festival season viz. raksha-bandan, deepawali, and other religious function Nestle

promote their product by giving special offer to their retailer as well as to their customer. In this

time every company try to maximize their sale and advertise their product in same way so Nestle

should try to do in this line too.

FOCUS OF THE STUDY

In this report, we focus on:-

 Nestle relationship towards their customers.

 To identify the customer loyalty towards Nestle.

 To identify the different types of products of Nestle.

 To know about the standards of quality used by the Nestle in their products.

OBJECTIVES OF THE STUDY

 To find out the famous products of Nestle among the customers.

 To find out the consumer behavior towards Nestle chocolates.

 To find out the range which is preferred by customers?

 To find out the product features which is most favorable

 CHAPTER-2

RESEARCH

METHODOLOGY
 INDUSTRY PROFILE

NESTLE LTD.

HISTORY OF NESTLE

Nestlé’s origins date back to 1866, when two separate Swiss enterprises were founded that would

later form the core of Nestlé. In the succeeding decades, the two competing enterprises

aggressively expanded their businesses throughout Europe and the United States.In August 1867

Charles (US consul in Switzerland) and George Page, two brothers from Lee County, Illinois,

USA, established the Anglo-Swiss Condensed Milk Company in Cham, Switzerland.

Their first British operation was opened at Chippenham, Wiltshire, in 1873.In September 1866 in

Vevey, Henri Nestlé developed milk-based baby food, and soon began marketing it.

The following year saw Daniel Peter begin seven years of work perfecting his invention, the milk

chocolate manufacturing process. Nestlé was the crucial co-operation that Peter needed to solve
the problem of removing all the water from the milk added to his chocolate and thus preventing

the product from developing mildew. Henri Nestlé retired in 1875 but the company, under new

ownership, retained his name as Société Farine Lactée Henri Nestlé.

In 1877 Anglo-Swiss added milk-based baby foods to their products; in the following year, the

Nestlé Company added condensed milk to their portfolio, which made the firms direct and fierce

rivals.In 1879 Nestle merged with milk chocolate inventor Daniel Peter.In 1904 François-Louis

Cailler, Charles Amédée Kohler, Daniel Peter and Henri Nestlé participated in the creation and

development of Swiss chocolate, marketing the first chocolate – milk Nestlé.

In 1905 the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk

Company, retaining that name until 1947, when the name ‘Nestlé Alimentana SA’ was taken as a

result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding

company,

Alimentana SA, of Kempttal, Switzerland. Maggi was a major manufacturer of soup mixes and

related foodstuffs. The company’s current name was adopted in 1977. By the early 1900s, the

company was operating factories in the United States, the United Kingdom, Germany, and Spain.

The First World War created demand for dairy products in the form of government contracts, and,

by the end of the war, Nestlé’s production had more than doubled.

Nestlé felt the effects of the Second World War immediately. Profits dropped from US$20 million

in 1938, to US$6 million in 1939. Factories were established in developing countries, particularly

in Latin America. Ironically, the war helped with the introduction of the company’s newest
product, Nescafé (“Nestlé’s Coffee”), which became a staple drink of the US military. Nestlé’s

production and sales rose in the wartime economy.

In February 2014, Nestlé sold its PowerBar sports nutrition business to Post Holdings, Inc.Later,

in November 2014, Nestlé announced that it was exploring strategic options for its frozen food

subsidiary, Davigel.

In recent years, Nestlé Health Science has made several acquisitions. It acquired Vitaflo, which

makes clinical nutritional products for people with genetic disorders; CM&D Pharma Ltd., a

company that specialises in the development of products for patients with chronic conditions like

kidney disease; and Prometheus Laboratories, a firm specializing in treatments for

gastrointestinal diseases and cancer. It also holds a minority stake in Vital Foods, a New Zealand-

based company that develops kiwifruit-based solutions for gastrointestinal conditions.

In December 2014, Nestlé announced that it was opening 10 skin care research centres

worldwide, deepening its investment in a faster-growing market for healthcare products. That

year, Nestlé spend about $350 million on dermatology research and development.

The first of the research hubs, Nestlé Skin Health Investigation, Education and Longevity

Development (SHIELD) centres, will open mid 2015 in New York, followed by Hong Kong and

São Paulo, and later others in North America, Asia and Europe.

The initiative is being launched in partnership with the Global Coalition on Aging (GCOA), a

consortium that includes companies such as Intel and Bank of America.

Nestlé S.A. formerly French: is a Swiss multinational food and drink company headquartered

in Vevey, Vaud, Switzerland. It is the largest food company in the world, measured by revenues

and other metrics, since 2014It ranked No. 64 on the Fortune Global 500 in 2017 and No. 33 on

the 2016 edition of the Forbes Global 2000 list of largest public companies.

Nestlé's products include baby food, medical food, bottled water, breakfast cereals, coffee and

tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. Twenty-nine of

Nestlé's brands have annual sales of over CHF1 billion

(about US$1.1 billion),including Nespresso, Nescafé, KitKat, Smarties, Nesquik, Stouffer's, Vitte

l, and Maggi. Nestlé has 447 factories, operates in 189 countries, and employs around 339,000

people. It is one of the main shareholders of L'Oreal, the world's largest cosmetics company.

Nestlé was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established in 1866

by brothers George and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri

Nestlé.

The company grew significantly during the First World War and again following the Second

World War, expanding its offerings beyond its early condensed milk and infant formula products.

The company has made a number of corporate acquisitions, including Crosse & Blackwell in

1950, Findus in 1963, Libby's in 1971, Rowntree Mackintosh in 1988, Klim in 1998,

and Gerber in 2007.

Nestlé has a primary listing on the SIX Swiss Exchange and is a constituent of the Swiss Market

Index. It has a secondary listing on Euronext.

Nestlé is the biggest food company in the world, with a market capitalisation of roughly

231 billion Swiss francs, which is more than US$247 billion as of May 2015.

In 2014, consolidated sales were CHF 91.61 billion and net profit was CHF

14.46 billion. Research and development investment was CHF 1.63 billion.

 Sales per category in CHF

o 20.3 billion powdered and liquid beverages

o 16.7 billion milk products and ice cream

o 13.5 billion prepared dishes and cooking aids

o 13.1 billion nutrition and health science

o 11.3 billion petcare

o 9.6 billion confectionery

o 6.9 billion water

 Percentage of sales by geographic area breakdown

o 43% from Americas

o 28% from Europe

o 29% from Asia, Oceania and Africa

According to a 2015 global survey of online consumers by the Reputation Institute, Nestlé has a

reputation score of 74.5 on a scale of 1–100.[56]

CHOCOLATES OF NESTLE BRAND
STRATEGY OF NESTLE COMPANY

As the 'Good Food, Good Life' company, we enhance quality of life and contribute to a healthier

future. Winning with consumers is the source of our sustainable financial performance and our

way to earning trust and maintain our market leadership. Based on a compelling Nutrition,

Health and Wellness strategy, our company delivers sustainable value over the short term and the

long term.

Nestlé has many distinctive strengths that keep us at the top of our industry. Our people are our

greatest strength. We have an attractive product portfolio in growing categories with leading

market positions.
We are a global company with deep local roots, which gives us a unique ability to understand

local consumers and adapt fast to their preferences. We have powerful, valuable brands, which

consumers trust. Our products reach more than 1 billion consumers every day across the world.

We also have industry-leading R&D capabilities that support our Nutrition, Health and Wellness

strategy and our innovation initiatives.

Our Nutrition, Health and Wellness strategy

Our success is built on our Nutrition, Health and Wellness strategy. Food and beverages are core

to Nestlé. We aim to provide the tastiest and healthiest choices, for all times of the day and for all

stages of life, delivered in a convenient manner. We aim to capture premiumization opportunities

and, at the other end of the spectrum, offer affordable, high-quality nutrition.

We add value to our brands and products through meaningful differentiation and innovation. We

do this by continually improving the taste, convenience and nutritional qualities of our products.

We are also well-positioned to build and share nutrition knowledge from the first 1000 days of

life through to healthy aging, and benefit from increased interest in nutrition to support good

health.

How do we create long-term value?

Our long-term value creation model is based on the balanced pursuit of resource efficient top-

and bottom-line growth. We create value by:

 Increasing growth through innovation, differentiation and by being relevant to our

consumers. We have committed to reach mid single-digit organic growth by 2020.

 Improving operational efficiency with the goal to increase our underlying trading

operating profit margin to between 17.5% and 18.5% (from 16.0% in 2016), and

 Allocating our resources and capital with discipline and clear priorities, including

through acquisitions and divestitures.

Increasing growth

Our portfolio is well positioned for growth. In the past, we have consistently delivered organic

growth at the high end of the industry. We have a clear path to achieving mid single-digit organic

growth by 2020.

Investing in high-growth categories and regions

We have identified five high-growth food and beverages categories with attractive growth rates:

coffee, petcare, nutrition, water and Nestlé Health Science.

Together, they represent 57% of sales and 61% of underlying trading operating profit *. In 2018,

organic growth was +4.0%.

In these key categories, we have strong market positions and highly-differentiated offerings.

They receive particular emphasis from a capital allocation standpoint, with significant

investments in R&D, marketing, capital expenditure and external growth whenever appropriate.

The other categories continue to be important contributors and had 1.9% organic growth in 2018.

These businesses are managed for a combination of growth and value.

We are also focused on expanding our presence in high-growth regions. Emerging markets

represent 42% of sales. In 2018, they grew organically by +4.9%, three times faster than

developed markets and with a higher underlying trading operating profit margin.

In most of these emerging markets, Nestlé has been present for many decades and our brands

enjoy a high level of trust and are rightly viewed as local.

In these key categories, we have strong market positions and highly-differentiated offerings.

They receive particular emphasis from a capital allocation standpoint, with significant

investments in R&D, marketing, capital expenditure and external growth whenever appropriate.

Fixing underperforming businesses

We have taken decisive actions to improve underperforming businesses through innovation,

better consumer understanding and, when needed, management changes and restructuring. In

2018, turnaround examples included Nestlé Skin Health and Yinlu in China.

Innovating products and business models

Rapid innovation and bringing products to market faster are key dimensions of our growth

agenda. At the same time, we continue to invest in cutting-edge science and technology to

address evolving consumer expectations through new offerings and product reformulations.

Innovation also helps us to premiumize our offering and contributes to margin improvement. In

2018, 22% of our sales came from premium products. We are not just innovating with new

products but also new business models. In particular, we have a strong focus on personalized and
Direct-to-Consumer offerings. In 2018, 8.2% of our sales came from Direct-to-Consumer

business models.

Embracing digital opportunities

Our digital transformation focuses on delivering personalized messaging, services and products

to consumers at scale. Powered by data and technology, we are modernizing our existing brands

and business operations while developing new, digitally-centric business models.

Already 10% of all consumer contacts are personalized. In addition, in 2018, our e-commerce

sales grew five times faster than the Group average and reached 7.4% of total Nestlé sales.

Managing our portfolio

We continue to actively evolve our portfolio towards attractive, high-growth businesses.

In 2018, we strengthened our position in coffee through the acquisition of the perpetual global

license of Starbucks consumer packaged goods and foodservice products. We also divested

our USAconfectionery and Gerber Life Insurance businesses.

While much work has been done, we are not yet finished. We recognize that acquisitions can

provide access to new technologies, brands, categories and geographies. Similarly, small to

medium-sized acquisitions can offer a fast and cost-effective way to embrace new capabilities or

business models.
We are also actively divesting businesses that are non-core and where we have limited ability to

win. We do this in a disciplined way with an aim to minimize potential disruption and maximize

the value of existing businesses.

Improving operational efficiency

In addition to our growth agenda, we have committed to increase our underlying trading

operating profit margin from 16.0% in 2016 to between 17.5% and 18.5% by 2020.

Reducing costs

We are actively executing several cost-saving initiatives to reduce non-consumer facing structural

costs by between CHF 2.0 and 2.5 billion. These are primarily focused on the areas of

administration, procurement and manufacturing.

We continued to strengthen our business focus through our Nestlé Business Excellence program

to simplify and standardize processes, which helped reduce administrative costs.

We have increased the penetration of our shared service centers from 17% to 35% and are on

track to reach 50% by 2020. We have also generated efficiencies in facility management, and real

estate through site closure and consolidations.

In procurement we have realized significant savings by leveraging our size and scale through

three global purchasing hubs. We now source 55% of our requirements through these hubs, and

this will reach 60% by 2020.

In manufacturing we have further simplified our factory footprint and increased capacity

utilization.

The savings generated in these three areas so far have made a significant contribution to the

improvement in our underlying trading operating profit margin by 50 basis points to 17.0% in

2018, and there is more to come.

Freeing up resources

We have also continued to deliver efficiencies in R&D and marketing. The primary focus of these

programs is to free up resources to provide fuel for growth and innovation. As an example, in the

last three years, more than CHF 500 million in marketing savings have been reinvested in

building our brands.

OTHER PRODUCTS

Nestlé has over 2000 brands with a wide range of products across a number of markets, including

coffee, bottled water, milkshakes and other beverages, breakfast cereals, infant

foods, performance and healthcare nutrition, seasonings, soups and sauces, frozen and

refrigerated foods, and pet food.

Milk products and baby food

In late September 2008, the Hong Kong government found melamine in a Chinese-made Nestlé

milk product. Six infants died from kidney damage, and a further 860 babies were

hospitalised. The Dairy Farm milk was made by Nestlé's division in the Chinese coastal

city Qingdao.

Nestlé affirmed that all its products were safe and were not made from milk adulterated with

melamine. On 2 October 2008, the Taiwan Health ministry announced that six types of milk

powders produced in China by Nestlé contained low-level traces of melamine, and were

"removed from the shelves".

As of 2013, Nestlé has implemented initiatives to prevent contamination and utilizes what it calls

a "factory and farmers" model that eliminates the middleman. Farmers bring milk directly to a

network of Nestlé-owned collection centers, where a computerized system samples, tests, and

tags each batch of milk. To reduce further the risk of contamination at the source, the company

provides farmers with continuous training and assistance in cow selection, feed quality, storage,

and other areas.

In 2014, the company opened the Nestlé Food Safety Institute (NFSI) in Beijing that will help

meet China's growing demand for healthy and safe food, one of the top three concerns among

Chinese consumers. The NFSI announced it would work closely with authorities to help provide

a scientific foundation for food-safety policies and standards, with support to include early

management of food-safety issues and collaboration with local universities, research institutes

and government agencies on food-safety.

In an incident in 2015, weevils and fungus were found in Cerelac baby food.
Cookie dough

In June 2009, an outbreak of E. coli O157:H7 was linked to Nestlé's refrigerated cookie

dough originating in a plant in Danville, Virginia. In the US, it caused sickness in more than 50

people in 30 states, half of whom required hospitalisation. Following the outbreak, Nestlé

voluntarily recalled 30,000 cases of the cookie dough. The cause was determined to be

contaminated flour obtained from a raw material supplier. When operations resumed, the flour

used was heat-treated to kill bacteria.

Maggi noodles

In May 2015, Food Safety Regulators from the state of Uttar Pradesh, India found that samples of

Nestlé's noodles Maggi had up to 17 times beyond permissible safe limits of lead in addition

to monosodium glutamate.

On 3 June 2015, New Delhi Government banned the sale of Maggi in New Delhi stores for 15

days because it found lead and monosodium glutamate in the eatable beyond permissible

limit. Some of India's biggest retailers like Future Group, Big Bazaar, Easyday, and Nilgiris had

imposed a nationwide ban on Maggi as of 3 June 2015

On 3 June 2015, Nestlé India's shares fell down 11% due to the incident. The Gujarat FDA on 4

June 2015, banned the noodles for 30 days after 27 out of 39 samples were detected with

objectionable levels of metallic lead, among other things.

On 4 June 2015, Nestlé's share fell down by 3% over concerns related to its safety standards. On

5 June 2015, Food Safety and Standards Authority of India (FSSAI) orders banned all nine

approved variants of Maggi instant noodles from India, terming them "unsafe and hazardous" for

human consumption.

On 5 June 2015 Nepal indefinitely banned Maggi over concerns about lead levels in the product.
[87]
On 5 June 2015, the Food Safety Agency, United Kingdom launched an investigation to find

levels of lead in Maggi Maggi noodles has been withdrawn in five African nations - Kenya,

Uganda, Tanzania, Rwanda, and South Sudan by a super-market chain after a complaint by the

Consumer Federation of Kenya, as a reaction to the ban in India.

As of August 2015, India's government made public that it was seeking damages of nearly

$100 million from Nestlé India for "unfair trade practices" following the June ban on Maggi

noodles.

The 6,400 million rupee suit was filed with the National Consumer Disputes Redressal

Commission (NCDRC), regarded as the country's top consumer court, but was settled on 13

August 2015.

The court ruled that the government ban on the Nestlé product was both "arbitrary" and had

violated the "principles of natural justice.

Although Nestlé was not ordered to pay the fine requested in the government's suit, the court

ruled that the Maggi noodle producers must "send five samples from each batch of Maggi
[noodles] for testing to three labs and only if the lead is found to be lower than permitted will

they start manufacturing and sale again." Although the tests have yet to take place, Nestlé has

already destroyed 400 million packets of Maggi products.

In India, Maggi products were returned to the shelves in November 2015, accompanied by a

Nestlé advertising campaign to win back the trust of members of the Indian community. At this

time, the Maggi anthem by Vir Das and Alien Chutney took the nation by storm. Nestlé resumed

production of Maggi at all five plants in India on 30 November 2015.

Careers with Nestle

The Skills required to be a part of Nestle India are as follows:

Finance

 Should be CA/MBA-Finance with an experience of about 2-10 years

 Should have negotiation and accounting skills

 Should have clarity in financial and commercial issues

 Should have the ability to analyze data

Sales and Marketing

 Candidate should be an MBA from premier institutes with an experience of 2 to 10 years

in marketing, preferably in FMCG sector

 Should have good interpersonal skills

 Should have strategic thinking

 Should have the ability to analyze data

Human Resource

 Should be an MBA-HR from premier institutes

 Should have good interpersonal skills

 Should have deep knowledge about HR processes

Operations

 Should be an Engineer with an experience of 2 to 10 years

 Should be confident in working with forecasts and time efficiencies

 Should be able to handle pressure

Information Technology

 Should be IT engineers / MCA with 2 to 10 years of work experience

 Should have problem-solving skills.

Research & Development and QA

 Should be involved, motivated and knowledgeable

 Should be comfortable working with data, and tools

 Should have problem-solving skills

Legal
 Should be LLB / LLM with 2 to 10 years of work experience

 Should have problem-solving skills

 Should be able to handle sensitive & confidential work

RESEARCH METHODOLOGY

Two broad research methodologies can be used to answer any research question.

They are – Experimental research or Non experimental research.

In experimental research, there is control over the extraneous variable and manipulation of at

least one variable investigator.

In Non experimental research, there is no intervention beyond that needed for the purpose of

measurement. The study uses Non experimental research method.

RESEARCH DESIGN:

A research design is a statement or specification of the methods and procedures used for

acquiring the information needed for the solution of some specific problems.

It provides a scientific frame work for conducting a research.

Although research design may be classified by many criteria, the most useful one concerns the

major purpose of the investigation.

On the basis, research design can be classified into three classes

1. Exploratory

2. Descriptive

3. Casual.

If no formal design or structural questionnaires are used, exploratory design is used.

Casual research design is used to establish cause and effect relationship.

If a person is conversant with the problem environment, or is conducting the research for some

specific purpose using structural questionnaire to gather information, the research design is

descriptive.

For descriptive studies and also casual studies, data analysis and project output are critical

aspects of research planning. This study uses descriptive design.

SAMPLING

SAMPLING TECHNIQUE

Simple random sampling is taken into consideration and we get better result

SAMPLE SIZE
100 customers are taken as the sample size. We do not have enough time to increase the

sample size

SAMPLING METHOD

The sample consist of 100 customers selected from the Faridabad, using convenience sampling

method. Out of the customers selected for the study, some did not own any property and some

had not responded well. Hence they are to be replaced by other customers.

DATA COLLECTION METHOD

The data required from this study is collected from primary and secondary sources;

The data collected are both Quantitative and Qualitative.

PRIMARY SOURCES:

The primary source used for gathering data required for this survey is – Survey method.

In the survey method a Survey of the consumer’s behavior towards real estate products is done. A

planned effort is made using structured questionnaire to interview the respondents.

The respondents are the owner of the real estate products, who are interviewed, are chosen using

non probability sampling method. The survey can be done through personal interviews. In this

study respondents are interviewed personally so that the errors involved in gathering primary

data are minimized.

SECONDARY SOURCES:

The secondary sources used for collecting data are:

1. Internal Sources

Company’s Reports.

Company’s Publications.

Company’s Employees.

2. External Sources

Information was gathered from Magazines like – Property Expo, Property Guru, and Business

World & Business Today.

News Paper like – The Hindustan Times, Business Standard &The Corporate Times.

Apart from this some information was also taken from internet.

DATA ANALYSIS

All the collected data will be analyzed with the help of tables and graphs
 LIMITATIONS OF THE STUDY

Although all efforts were taken to make the result of survey as accurate as possible the survey

had the following constraints:

 Retailers are not willing to give answers of the questions due to their busy schedules.

 Retailers hide the facts especially in the sales figure.

 A few retailers are not cooperating during the project survey. It is quite difficult to collect

necessary data.

 Due to the time constraint and other imperative workload during the training period it could

not be made possible to explore more areas of concern pertaining to project study.

 The employee of Nestle India limited are very hesitant and reluctant to give all information

which is vital for my project work because some information is confidential.

 CHAPTER-3

MICRO ANALYSIS
 MICRO ANALYSIS

Ques1. Which type of chocolate do you like most?

Sr. no. Product Respondents Percentage

1 Candy 8 8
2 Bar 66 66
3 Toffee 17 17
4 Others 9 9
INTERPRETATION

Bar is most popular in consumer with 66%, Toffee is the second popular chocolate in consumer

with 17%, 8% People like candy, 9% people like all kind of chocolate.

Ques2. What’s in your mind while purchasing chocolate?

Sr. No. Product Respondents Percentage

1 Flavor 66 66
2 Gift 4 4
3 Both 30 30

INTERPRETATION

While Purchasing Chocolate 66% Customer Prefer Flavors, Only 4% Customer Prefer Gift as

a Chocolate 30%, Customer Prefer Both Flavor and Gift While Purchasing Chocolate.
Ques3. At which time do you like to eat chocolate?

Sr. No. Time Respondents Percentage

1 After Meal 4 4
2 Party/Birthday 8 8
3 Anytime 88 88

INTERPRETATION

88% Customer Prefer Chocolate at anytime, only 8% Customer like Chocolate during Party

or Birthday, Only 4% Customer like Chocolate after Meal.

Ques4. Which type of flavor/taste does you like the most?

Sr. No. Product Respondents Percentage

1 Milky 22 22
2 Coffee 26 26
3 Fruit-N-Nut 22 22
4 Milky + Coffee 2 2
5 Milky + Fruit-N-Nut 12 12
6 Coffee + Fruit-N-Nut 8 8
7 All 2 2
8 Other 22 22

INTERPRETATION

According to Survey 22% Customer Prefer Milky Flavor, 26% Prefer Coffee, 22% Prefer

Fruit-n-Nut, 2% Prefer Milky and Coffee,12% Prefer Milky and Fruit-n-Nut, 8% Prefer

Coffee and fruit-n-Nut,2% prefer all Flavors and only 6% Prefer Other Flavors.

Ques5. How much do you spend on chocolates in a week?

Sr. No. Range Respondents Percentage

1 Below Rs-50 70 70
2 Rs 50-100 20 20
 3 Above Rs-100 10 10

INTERPRETATION

Customer spend below Rs/-50 on chocolate 20% customer spend Rs/-50-100 on chocolate,

10% customer spend above Rs/-50 on chocolate.

Ques6.What is your pattern of consumption?

Pattern of consumption Percentage of consumption

More than one per day 15

Daily one 25

3-4 chocolates per week 45

Weekly 10

Rarely 5

INTERPRETATION

Most of the consumers consume milk chocolate bars as 3-4 per week, which represent 45% of

the total number of surveyed consumers. And second most percentage of consumers

consumes milk chocolate bars are of daily one, 60% of population consumes milk chocolate

bars more than one a week.

Ques7. Which factor you consider the most while purchasing the chocolate?

Consumer's consideration Percentage

Price 16

Taste 48

Brand 18

Packaging 9

Other 9

INTERPRETATION

Most of the consumer of milk chocolate bars says that the most considering factor by them on

the basis of which they purchase a particular brand of milk chocolate bars is Taste of that

milk chocolate bars. And the least interested factor is Packaging. There is positive correlation

between different influencing factors and buying behavior of consumers.

 Ques8. Are you aware about?

Sr. No. Chocolates Respondents Percentage

1 Nestle 58 58
2 Nestle fruit & nut 23 23
3 Nestle Bourneville 4 4
4 Nestle choco pie 5 5
5 Nestle crust 10 10

INTERPRETATION

58% customer are well aware about the Nestle Chocolate, 23% customer are well aware

about the Nestle Fruit & Nut, 10% customer are well aware about the Nestle Bourneville, 5%

customer are well aware about the Nestle chocopie, 4% customer are well aware about the

Nestle 5 crust.
 CHAPTER-4

MACRO ANALYSIS
 MACRO ANALYSIS
1. Which type of chocolate do you like most?

Bar is most popular because it contains more caramel and healthy for body, there are more

number of consumers with 66%, Toffee is the second most popular chocolate as it is cheap and

small liked by small children consumer with 17%, 8% People like candy, 9% people like all kind

of chocolate.

2. What’s in your mind while purchasing chocolate?

While Purchasing Chocolate 66% Customer Prefer Flavors, Only 4% Customer Prefer Gift as a

Chocolate, 30% Customer Prefer Both Flavor and Gift While Purchasing Chocolate. As

chocolates are non-perishable they are preferred by many people. At the time of festivals they are

exchanged as gifts by many people.

3. At which time do you like to eat chocolate?

88% Customer Prefer Chocolate at any time, only 8% Customer like Chocolate during Party or

Birthday, Only 4% Customer like Chocolate after Meal mostly by small kids

4. Which type of flavor/taste does you like the most?

According to Survey 22% Customer Prefer Milky Flavor, 26% Prefer Coffee, 22% Prefer Fruit-

n-Nut, 2% Prefer Milky and Coffee,12% Prefer Milky and Fruit-n-Nut, 8% Prefer Coffee and

fruit-n-Nut,2% prefer all Flavors and only 6% Prefer Other Flavors.

 5. How much do you spend on chocolates in a week?

70% Customers spend below Rs/-50 on chocolate 20% customer spend Rs/-50-100 on chocolate,

10% customer spend above Rs/-50 on chocolate.

6. What is your pattern of consumption?

Most of the consumers consume milk chocolate bars as 3-4 per week, which represent 45% of the

total number of surveyed consumers. And second most percentage of consumers consumes milk

chocolate bars are of daily one, 60% of population consumes milk chocolate bars more than one

a week.

7. Which factor you consider the most while purchasing the chocolate?

Most of the consumer of milk chocolate bars says that the most considering factor by them on the

basis of which they purchase a particular brand of milk chocolate bars is Taste of that milk

chocolate bars. And the least interested factor is Packaging. There is positive correlation between

different influencing factors and buying behavior of consumers.

8. Are you aware about?

58% customer are well aware about the Nestle Chocolate, 23% customer are well aware about

the Nestle Fruit & Nut, 10% customer are well aware about the Nestle Bourneville, 5% customer

are well aware about the Nestle chocopie, 4% customer are well aware about the Nestle 5 crust
 CHAPTER-5

SUMMARY OF

OBSERVATIONS
 SUMMARY OF FINDINGS

 On the basis of research and analysis of the study conducted in NCR market, which was

divided into five areas viz. south, north, east, west and central Delhi for the Nestle Chocolate.

I would like to suggest the following key point to the company.

 The company should try to build some feed back mechanism from the retailer to check the

wholesalers intervention in the Nestle’s distribution area because the wholesaler try to

hamper the goodwill as well as the other benefit of the company and their most important part

of distribution channel.

 The company should maintain separate distribution channel for the chocolate because it is

seem mostly during study that one single distribution deals all product, as it is not a hidden

fact that the product line and product depth is very wide.

 The company should provide new schemes on the regular basis to the retailers as well as to

the consumers to increase its market share.

 During my project this fact become clear that the customer are not well aware about the all

product item of Nestle Chocolate so through the strong advertisement company should try to

increase the awareness of the Nestle Chocolate.

 Replacement is big problem for retailers especially in chocolate segment because all

chocolate products need special kind of care but there some unavoidable factor damage the

chocolate so company should provide revive the policy about the replacement, easy

replacement facility to the retailers so that they could be attracted toward selling the Nestle

Chocolate.

 The company should start promotion campaign at the micro-level by increasing the visit of

company’s representatives to the retailers.

 CONCLUSION

From the analysis, the following conclusion can be arrived at:

 Nestle Chocolate enjoys the trust of the retailers as well as the consumer because of its

quality and huge brand image. Currently the stock of Nestle Chocolate supplied by the

company is not of fresh date. As a result of this situation is making an adverse impact on the

market of Nestle Chocolate

 There a big storage problem with Nestle Chocolate it has needed to keep in certain

temperature.

 Some distributors did not give proper information to the retailers about the product and offers

given by the company for the promotion of the Nestle Chocolate Which leads bad image of

the company.

 There is some problem with the packaging of the product. As a result the Chocolate puffed

before its expiry period.

 The supply of Nestle Chocolate is not proper in some specific areas .Which gives wrong

massage about company.

 The competitors of some of the competitors of are providing easy replacement facility to the

retailers which are attracting them towards those companies.

 Some of the competitors of some of the competitors are providing wider margins to the

retailers. Wider margin is making the retailers to push the sales of the competitors.
 CHAPTER-6

BIBLIOGRAPHY
 BIBLIOGRAPHY

Books:-

 Pereaurt W.D, Basic Marketing, 2nd edition, McGraw-Hill Education, New Delhi.

 Della A.J, Consumer Behaviour, 4th edition, McGraw-Hill Education, New Delhi.

 Gupta S.L, Consumer Behaviour, 2nd edition, sultan Chand &sons, New Delhi.

 Schiff man & Kanauk, Consumer Behaviour, 3rd edition, Phi Learning Private Ltd, New

Delhi.

 Kotler Philip, Marketing Management, 1st edition reprint, Pearson education, New D

 Boyd H.W, Marketing Research , 7th edition, Richard D.lrwin Publication

 Beri G.C, Marketing Research, 3rd edition,

 Donald T.S, Marketing Research, 6th edition,

 Kothari C.R, Research Methodology, 8th edition,

Search Engine:-

www.google.com

www.yahoo.com

www.Nestle.com
 QUESTIONNAIRE

Name …………………………

Occupation………..

Age…………………

Monthly income……….

Place……………….

1. Which type of chocolate do you like most?

 Candy

 Toffee

 Bar

 Others

2. What’s in your mind while purchasing chocolate?

 Flavor

 Gift
  Both

3 .At which time do you like to eat chocolate?

 After meal

 Birthday party

 Any time

4. Which type of flavor/taste does you like the most?

 Milky

 Coffee

 Fruit-n-Nut

 Milk + coffee

 Milky + Fruit-N-Nut

 Coffee +Fruit-N-Nut

 All Others

6. How much do you spend on chocolates in a week?

 Below 50

 50-100

 Above 100

7. What is your pattern of consumption?

 More than one per day

  Daily One

 3-4 Chocolate per week

 Weekly

8. Which factor you consider the most while purchasing the chocolate?

 Price

 Taste

 Brand

 Packaging

 Other

9. Are you aware about?

 Nestle Chocolate

 Nestle Fruit & Nut

 Nestle 5 Star

 Nestle Perk

 Nestle Bourneville
 LIST OF TABLES

S. NO. PARTICULAR PAGE NO.

1 Type of chocolate
2 While purchasing chocolate what’s in your mind
3 Do you like to eat chocolate at which time
4 Type of flavor/taste does you like the most
5 Spend on chocolates in a week
6 Your pattern of consumption
7 Factor you consider the most while purchasing the

chocolate
8 Are you aware about

LIST OF GRAPHS

S. NO. PARTICULAR PAGE NO.

1 Type of chocolate
2 While purchasing chocolate what’s in your mind
3 Do you like to eat chocolate at which time
4 Type of flavor/taste does you like the most
5 Spend on chocolates in a week
6 Your pattern of consumption
7 Factor you consider the most while purchasing the

chocolate
8 Are you aware about