MINOR PROJECT REPORT

ON

“MARKETING STRATEGY OF NESTLE”

Submitted in the partial fulfillment for the award of Degree of Bachelor in

Commerce 2019-2022

UNDER THE GUIDANCE: SUBMITTED BY:

Ms. Surbhi Gupta Dhruv Verma

FACULTY (Management), CPJCHS ENROLLMENT No 01524288819

BATCH NO. : 2019-22

CHANDERPRABHU JAIN COLLEGE OF HIGHER STUDIES & SCHOOL OF LAW

An ISO 9001:2008 Certified Institute (Approved by the Govt of NCT of Delhi
Affiliated to Guru Gobind Singh Indraprastha University, Delhi)
Plot No OCF Sector A-8, Narela New Delhi -40
 DECLARATION

This is to certify that Report entitled “ Marketing Strategies Of Nestle Co.” which is submitted

by me in partial fulfillment of the requirement for the award of degree B.Com (H) to GGSIP

University, Dwarka, Delhi comprises only my original work and due acknowledgement has been

made in the text to all other material used.

Date: Dhruv Verma

APPROVED BY Ms. Surbhi Gupta

 CERTIFICATE
 
This is to certify that Report entitled “Marketing Strategies Of Nestle Co.” which is submitted

by DHRUV VERMA in partial fulfillment of the requirement for the award of degree

B.Com(H) (2019-2022) to GGSIP University, Dwarka, Delhi is a record of the candidate own

work carried out by him under my/our supervision.

 
Date: Supervisor Signature
 ACKNOWLEDGEMENT

I offer my sincere thanks and humble regards to Chanderprabhu Jain College of Higher Studies
& School of Law, GGSIP University, New Delhi for imparting us very valuable professional
training in B.Com (H).
.
I pay my gratitude and sincere regards to Ms. Surbhi , my project Guide for giving me the cream
of his knowledge. I am thankful to him as he has been a constant source of advice, motivation
and inspiration. I am also thankful to him for giving his suggestions and encouragement
throughout the project work.

I take the opportunity to express my gratitude and thanks to our computer Lab staff and library
staff for providing me opportunity to utilize their resources for the completion of the project.

I am also thankful to my family and friends for constantly motivating me to complete the project
and providing me an environment which enhanced my knowledge.

Student’s Signature
 Table of Contents
Student declaration………………………………………………………………………… …i
Certificate from Guide……………………...…………………………………....…....ii
Acknowledgement....................................................................................................... ..iii
Executive Summary………………………………………………………………..…..iv
CHAPTER- 1: INTRODUCTION
1.1 About the Industry
1.2 About Organization/ Company Profile………………………………
CHAPTER – 2: Literature Review/ Company Profile
2.1 Literature Review ………………………………………………………………
2. 2 About the Topic………………………………………………………………………
CHAPTER – 3: RESEARCH METHODOLOGY
3.1 Research Objectives of the study…………………………………………………..
3.2 Research Methodology of the study………………………………………….
3.3 Data Collection Techniques …………………………………
3.4 Sample size……………………………………………………………
3.5 Sampling method……………………………………………………...
3.6 Method of data collection……………………………………………………..
3.7 Instrument for data collection………………………………………………
3.8 Limitations……………………………………………………………………
CHAPTER – 4: ANALYSIS& INTERPRETATION
4.1
CHAPTER- 5: FINDINGS & SUGGESTIONS
5.1 Findings …………………………………………………………………………..
5.2 Suggestions…………………..…………………..…………………..………………
CHAPTER- 6: CONCLUSION
BIBLIOGRAPHY
Bibliography……..………………..…………………..…………………..……………
 CHAPTER – 1

INTRODUCTION

1.1 OVERVIEW OF INDUSTRY AS A WHOLE

The Indian food industry is poised for huge growth, increasing its contribution to world food
trade every year. In India, the food sector has emerged as a high-growth and high-profit sector
due to its immense potential for value addition, particularly within the food processing industry.

The food industry, which is currently valued at US$ 39.71 billion! is expected to grow at a
Compounded Annual Growth Rate (CAGR) of 11 per cent to US$65.4 billion by 2018. Food and
grocery account for around 31 per cent of India’s consumption basket.

Accounting for about 32 per cent of the country’s total food market, The Government of India
has been instrumental in the growth and development of the food processing industry. The
government through the Ministry of Food Processing Industries (MoFPI) is making all efforts to
encourage investments in the business. It has approved proposals for joint ventures (JV), foreign
collaborations, industrial licenses and 100 per cent export oriented units.

Market Size

The Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per
cent of the sales. Food has also been one of the largest segments in India's retail sector, which
was valued at US$ 490 billion in 2013@. The Indian food retail market is expected to reach Rs
61 lakh crore (US$ 894.98 billion) by 2020.

The Indian food processing industry accounts for 32 per cent of the country’s total food market,
one of the largest industries in India and is ranked fifth in terms of production, consumption,
export and expected growth. It contributes around 14 per cent of manufacturing Gross Domestic
Product (GDP), 13 per cent of India’s exports and six per cent of total industrial investment.
Indian food service industry is expected to reach US$ 78 billion by 2018.The Indian gourmet
food market is currently valued at US$ 1.3 billion and is growing at a Compound Annual Growth
Rate (CAGR) of 20 per cent. India's organic food market is expected to increase by three times
by 2020.

The online food ordering business in India is in its nascent stage, but witnessing exponential
growth. The organised food business in India is worth US$ 48 billion, of which food delivery is
valued at US$ 15 billion. With online food delivery players like Food Panda, Zomato, Tiny Owl
and Swiggy building scale through partnerships, the organised food business has a huge potential
and a promising future.

Investments

According to the data provided by the Department of Industrial Policies and Promotion (DIPP),
the food processing sector in India has received around US$ 6.82 billion worth of Foreign Direct
Investment (FDI) during the period April 2000-March 2016. The Confederation of Indian
Industry (CII) estimates that the food processing sectors have the potential to attract as much as
US$ 33 billion of investment over the next 10 years and also generate employment of nine
million person-days.

Mr Tomasz Lukaszuk, the Ambassador of the Republic of Poland had also highlighted the keen
interest shown by Polish companies looking for opportunities in India to expand collaboration
and invest food processing.

Some of the major investments in this sector in the recent past are:

 Di Bella, the Australia-based coffee chain, plans to invest Rs 67 crore (US$ 10 million)
for setting up around 20 new outlets in Mumbai, besides entering Delhi and Bangalore by
2017.

 KKR & Co LP, the US-based private equity firm, plans to invest about Rs 520 crore
(US$ 77.38 million) in dairy company Kwality Ltd, which will be used to strengthen its
milk procurement infrastructure and increase processing capacity.

 Henry Ford Health Systems (HFHS), a US-based health and wellness group, plans to
enter India by signing a franchise partnership with Chandigarh-based hospitality and food
services firm KWalls Hospitality, and set up 'Culinary Wellness' branded stores across
the country.
 Mondelez International, the US-based confectionery, food, and beverage major,
inaugurated its new manufacturing plant in Andhra Pradesh set up for Rs 1,265 crore
(US$ 190 million), with an annual production capacity of 250,000 tonnes.

 PureCircle, a Malaysia-based natural sweetener producer, plans to invest around Rs 1,300

crore (US$ 200 million) in India to set up a manufacturing plant and make the country its
regional production and export hub in the next five years.

 Swiggy, a food delivery start-up owned by Bundl Technologies Private Limited, has
raised Rs 230.34 crore (US$ 33.80 million) in a Series C funding round, with its existing
investors SAIF Partners, Accel Partners, Norwest Venture Partners and Apoletto Asia Ltd
contributing 79 per cent of the new funds raised.

 Gujarat Cooperative Milk Marketing Federation (GCMMF), popularly known as 'Amul',

plans to invest Rs 5,000 crore (US$ 733.6 million) to establish ten new processing plants
as well as expand the current capacity to touch 32 million litres per day (MLPD) capacity
by 2020.

 American doughnut chain Dunkin' Donuts has tied up with local online grocery delivery
platform Grofers for home-delivery of its packaged and freshly made products.

 Private Equity (PE) firm India Value Fund Advisors (IVFA) plans to invest around US$
100-150 million in the food business in India over the next two years.

 Zomato, a restaurant search and discovery platform, has raised US$ 60 million from
Singapore government-owned investment company Temasek, along with existing
investor Vy Capital, in order to explore new business verticals.

 ITC Limited plans to invest Rs 800 crore (US$ 117.4 million) to set up a world-class
food processing facility in Medak, a district located in Telangana. The company has also
formulated plans to enter the dairy market.
Government Initiatives

In order to promote food processing industries, increase level of processing and exploit the
potential of domestic and international market for processed food products, Vision Document-
2015 was prepared by the Ministry of Food Processing Industries. The document envisages
trebling the size of investment in the processed food sector by increasing the level of processing
of perishables from 6 per cent to 20 per cent, value addition from 20 per cent to 35 per cent and
share in global food trade from 1.5 per cent to 3 per cent by 2015. According to the Ministry, an
investment of Rs 100,000 crore (US$ 14.67 billion) would be required in 2015 to achieve these
targets. The Government of India has also relaxed foreign direct investment (FDI) norms for the
sector, allowing up to 100 per cent FDI in food product e-commerce through automatic route.

Some of the major initiatives taken by the Government of India to improve the food processing
sector in India are as follows:

 The Government of India allocated Rs 1,500 crore (US$ 225.7 million) and announced
various measures under the Merchandise Exports from India Scheme (MEIS), including
setting up of agencies for aquaculture and fisheries in coastal states and export incentives
for marine products.

 Union Budget 2016-17 has proposed 100 per cent FDI through FIPB (Foreign Investment
Promotion Board) route in marketing of food products produced and manufactured in
India.

 All of the ration cards in India have been digitised and 42 per cent of the digitised ration
cards are now linked to Unique Identification (UID) or Aadhaar cards.

 Government of India plans to allow two Indian dairy companies, Parag Milk Foods and
Schreiber Dynamix Dairies, to export milk products to Russia for six months, after these
companies got approval for their products by Russian inspection authorities.
 Ms Harsimrat Kaur Badal, Union Minister for Food Processing Industries, Government
of India inaugurated the first of its kind Rs 136 crore (US$ 20 million) mega international
food park at Dabwala Kalan, Punjab. She has also expressed confidence that the decision
to allow 100 per cent Foreign Direct Investment (FDI) in multi-brand retail with 100 per
cent local sourcing condition, will act as a catalyst for the food processing sector, thereby
controlling inflation, uplifting the condition of farmers, and creating more jobs in the
country.

 The Food Safety and Standards Authority of India (FSSAI) has issued new rules for
importing products, to address concerns over the entry of sub-standard items and simplify
the process by setting shelf-life norms and relaxing labelling guidelines.

 The Ministry of Food Processing Industries announced a scheme for Human Resource
Development (HRD) in the food processing sector. The HRD scheme is being
implemented through State Governments under the National Mission on Food
Processing. The scheme has the following four components:

o Creation of infrastructure facilities for degree/diploma courses in food processing

sector

o Entrepreneurship Development Programme (EDP)

o Food Processing Training Centres (FPTC)

o Training at recognised institutions at State/National level

 The Food Safety and Standards Authority of India (FSSAI) under the Ministry of Health
and Family Welfare has issued the Food Safety and Standards (Food Product Standards
and Food Additives) Regulations, 2011 and the Food Safety and Standards
(Contaminants, Toxins and Residues) Regulations, 2011 which prescribe the quality and
safety standards, respectively for food products.
  The Ministry of Food Processing Industries has taken some new initiatives to develop the
food processing sector which will also help to enhance the incomes of farmers and export
of agro and processed foods among others.

 Spices Board, set up by the Ministry of Commerce to develop and promote Indian spices
worldwide, aims spice exports of US$ 3 billion by 2017.

 The Government of India has approved the setting up of five numbers of Mega Food
Parks in the states of Bihar, Maharashtra, Himachal Pradesh and Chhattisgarh. The
Government plans to set up 42 such mega food parks across the country in next three to
four years.

 In the Budget 2015-16, a corpus of Rs. 2,000 crore (US$ 293.44 million) was created
under National Bank for Agriculture and Rural Development (NABARD) to provide
cheaper credit to food processing industry. Excise duty on plant and machinery for
packaging and processing has been brought down to six per cent from 10 per cent.

Road Ahead

Going forward, the adoption of food safety and quality assurance mechanisms such as Total
Quality Management (TQM) including ISO 9000, ISO 22000, Hazard Analysis and Critical
Control Points (HACCP), Good Manufacturing Practices (GMP) and Good Hygienic Practices
(GHP) by the food processing industry offers several benefits. It would enable adherence to
stringent quality and hygiene norms and thereby protect consumer health, prepare the industry to
face global competition, enhance product acceptance by overseas buyers and keep the industry
technologically abreast of international best practices.

Exchange Rate Used: INR 1 = US$ 0.0149 as on September 28, 2016.

Reasons for the growth of the food industry

 Increased urbanization in the country has given a boost to the food industry in India.

 Majority of the women in the country are working as a result of which families have extra
income which they are spending in buying food.
 The standard of living in the country has improved as a result of which there has been an
increased demand for food.

 Supermarkets and malls have opened all over the country and this has helped in making
shopping for food a pleasurable experience.

 The consumers can select, inspect and pick up food items that they like in an ambience
that is comfortable. This too has helped to boost the sale of food products in the country

Major companies in the food industry

 Nestle India Ltd.

 Kelloggs India

 Cadbury's India Ltd.

 MTR Foods Ltd.

 Hindustan Lever Ltd.

 Godrej Foods

 ITC-Agro

 Coca-Cola

 Britannia
1.2 ABOUT THE COMPANY

Nestle India Ltd, one the biggest players in FMCG segment, has a presence in milk & nutrition,
beverages, prepared dishes & cooking aids & chocolate & confectionery segments. The company
is engaged in the food business. The food business incorporates product groups, such as milk
products and nutrition, beverages, prepared dishes and cooking aids, chocolates and
confectionery. Nestle India manufactures products under brand names, such as Nescafe, Maggi,
Milkybar, Milo, Kit Kat, Bar-One, Milkmaid and Nestea. 

The company has also introduced products of daily consumption and use, such as Nestle Milk,
Nestle Slim Milk, Nestle Fresh 'n' Natural Dahi and Nestle Jeera Raita. The company's brands
include milk products and nutrition, prepared dishes and cooking aids, beverages, and chocolates
and confectionery. Their milk products and nutrition includes Nestle Everyday Dairy Whitener,
Nestle Everyday Ghee, Nestle Milk, Nestle Slim Milk and Nestle Dahi. Beverages Include
Nescafe Classic, Nescafe Sunrise Premium, Nescafe Sunrise Special and Nescafe Cappuccino.
Nestle India is a subsidiary of Nestle S.A. of Switzerland

The company has presence across India with 8 manufacturing facilities and four branch offices
spread across the region. The four branch offices in the country help facilitate the sales and
marketing of its products. They are in Delhi, Mumbai, Chennai and Kolkata. The company's
head office is located in Gurgaon, Haryana.

Nestle India Ltd was incorporated in the year 1956. The company set up their first production
facility in the year 1961 at Moga in Punjab. In the year 1967, they set up their second plant at
Choladi in Tamil Nadu as a pilot plant to process the tea grown in the area into soluble tea. In the
year 1989, they set up a factory at Nanjangud in Karnataka. 

In the year 1990, the company entered into the chocolate business by introducing Nestle
Premium Chocolate. In the year 1991, they entered in joint venture floated by the parent in
collaboration with BM Khaitan group to set up facilities to manufacturing a range of Soya based
products. In the year 1993, they set up a factory at Samalkha in Haryana. In the year 1995, the
company launched the company's worldwide legendary brand chocolate, Kitkat. 

The company commissioned two factories in Goa at Ponda and Bicholim in the year 1995 and
1997 respectively. In the year 1999, the company launched the product, Nestle Growing Up Milk
nationally. In April 2000, they forayed into the Ultra Heat Treated (UHT) liquid milk market. In
the year 2001, the company launched Nestle Pure Life bottled water. Within few months, they
again launched their second water brand-San Pellegrino - in the Indian market. The company
also made their foray into the iced tea segment. 

In the year 2004, a project has been initiated to upgrade the production technology for infant
nutrition products at the Samalkha factory. Nestle India Ltd recognised for its outstanding
performance in Exports by the Coffee Board of India in the Export Awards 2004-05 as the Best
Exporter of Instant Coffee, Best Exporter to Russia & CIS Countries (coffee) and Best Exporter
for Far East Countries (coffee). The company bestowed the UDYOG RATNA award by the PHD
Chamber of Commerce and Industry to recognise Nestle's significant contribution to the
economic development of Punjab for the year 2005. The company set up a new department -the
Channel & Category Sales Development (CCSD) to develop new solutions for the various
channels and customers and improve the implementation of commercial plans in the market. 

In the year 2006, the company set up their seventh factory at Pantnagar in Uttarakhand. In the
year 2007, CNBC Asia presented the company with the India Innovator of the year award. The
company's four factories were awarded the internationally recognised external certification ISO
14001 for adherence to environmental processes and OSHAS 18001 for Health and Safety. 

In the year 2008, the company launched Nestle Nesvita Pro-Heart Milk with Omega-3 in
Mumbai. Nestle Nesvita Pro-Heart is part of daily diet and has Omega-3 heart friendly nutrients
scientifically known to help manage cholestrol. As part of their ongoing commitment to offering
best in class nutrition products to Indian consumers, the company launched NESTLE NAN 3, a
follow-up formula for older infants. 

During the year, MAGGI PICHKOO Tomato Ketchup was launched in a unique easy to handle
day pack to drive affordability, taste and convenience for a larger number of consumers. The
company also launched another pioneering product, MAGGI Bhuna Masala, to cook tasty and
healthy everyday meals, more conveniently. The company also launched Nestle Kitkat Mini and
Nestle Bar One Mini, at Rs 3 price to expand the repertoire of offerings. Similarly, they launched
Nestle Kitkat Chunky at Rs 15 to strengthen the range of wellness oriented Nestle products that
consumers can choose from. The company's three more factories were awarded the
internationally recognized external certification ISO 14001 for adherence to environmental
processes and OSHAS 18001 for Health and Safety. With this, all the seven factories of the
company now have ISO 14001 and ISO 18001 certifications.

In the year 2009, the company provided inputs to the group R&D for development of an
innovative product Maggi Bhuna Masala. They launched Maggi Nutri-Licious Pazzta. During
the year, Maggi further leveraged their strengths to drive affordable nutrition and launched two
new products, namely, Maggi Rasile Chow and Maggi Masala-ae-Magic. They launched Nestle
Kitkat in a new unique single finger format and Nestle Much Guru pack at the higher price point.
The company acquired the Healthcare Nutrition business of Speciality Foods India Pvt Ltd with
effect from January 1, 2010. In 2011, Nestle opens new plant in Karnataka, investing Rs 360 cr.
In 2013, the company reviews the General Licence Agreement. The company also acquires 26%
minority stake in indocon agro and allied activities pvt ltd. The company commences export of
noodles, sauces from New Mangalore Port.

In May 2015, Food Safety Regulators from the Uttar Pradesh, India found that samples of Nestle
leading 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. 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. Some of India's biggest retailers like Future Group, Big Bazaar, Easyday and Nilgiris
have imposed a nationwide ban on Maggi. Thereafter multiple state authorities in India found
unacceptable amount of lead and it has been banned in more than 5 other states in India. 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. In June 2015 Nepal indefinitely banned Maggi over concerns about lead
levels in the product. On the same day Food Safety Agency, United Kingdom has 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.

On August 2015, Govt of India made public that it was seeking damages of nearly $100 million
from Nestle 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 Nestle product was both 'arbitrary' and had violated
the 'principles of natural justice.' Although Nestle 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. The ban has been repealed by
the Government of India, with effect from the end of 2015, after the company cleared court
directed safety tests. The test results from all laboratories mandated by the Bombay High Court
have validated Nestl India's position that MAGGI Noodles are safe for consumption. The
company resumed manufacturing at Pantnagar (Uttarakhand) Factory and also resumes
manufacturing of MAGGI at Tahliwal, HP unit. On 9 November 2015, Nestle India announced
reintroduction of MAGGI Noodles in the market. 

On April 2016, Nestle India announced that MAGGI Noodles has further strengthened its
leadership position with more than 50% market share in the Noodles category as per Nielsen
report. On 21 April 2016, Nestle India announced the launch of a brand new exotic range of
Greek Yoghurt under the brand name of NESTLE a+ GREKYO. NESTLE a+ GREKYO is a
further brand extension of the NESTLE a+ range.

On 29 April 2016, Nestle India announced the launch NESCAFE SUNRISE INSTA-FILTER -
which provides the taste of filter coffee and yet does not require a filter. On 17 August 2016,
Nestle India announced the launch of new variants of MAGGI Noodles MAGGI HOT HEADS'
and MAGGI No Onion No Garlic Masala'. On 26 August 2016, Nestle India announced the
launch of NESTLE a+ PRO-GROW milk containing 20% higher milk protein. 

On 20 March 2017, Nestle India announced the launch of MILO Ready to Drink, a cocoa-malt
milk beverage crafted specially for growing children. MILO RTD has lower sugar with less than
10 grams of added sugar per pack (180 ml). On 2 May 2017, Nestle India announced the launch
of a new range of MAGGI noodles in four new flavors - Amritsari Achari, Mumbaiya Chatak,
Super Chennai and Bengali Jhaal. 

On 9 May 2017, Nestle India announced the extension of its popular NESTLE a+ GREKYO
range with the launch of Blueberry Greek Yoghurt and Greek Style Curd. On 29 August 2017,
Nestle India announced the launch of MAGGI NUTRI-LICIOUS noodles range in four flavors -
Atta Masala, Atta Mexicana, Oats Masala and Oats Herbs & Spice.
On 8 March 2018, Nestle India's food brand MAGGI completed 35 years of existence in
India.MAGGI began its journey in 1983, with the launch of MAGGI 2-minute noodles.

HISTORY

866–1900: Founding and early years

Nestlé's origins date back to the 1860s, when two separate Swiss enterprises were founded that
would later form Nestlé. In the following decades, the two competing enterprises expanded their
businesses throughout Europe and the United States.
In 1866, Charles Page (US consul to Switzerland) and George Page, brothers from Lee County,
Illinois, USA, established the Anglo-Swiss Condensed Milk Company in Cham, Switzerland.
The company's first British operation was opened at Chippenham, Wiltshire, in 1873.

In 1867 in Vevey, Switzerland, Henri Nestlé developed milk-based baby food and soon began
marketing it. The following year, Daniel Peter began seven years of work perfecting the milk
chocolate manufacturing process. Nestlé was the solution Peter needed to fix his problem of
removing all the water from the milk added to his chocolate, 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 its products; in the following year, the
Nestlé Company added condensed milk to its portfolio, which made the firms direct rivals.

In 1879, Nestlé merged with milk chocolate inventor Daniel Peter.

1901–1989: Mergers

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.[18]

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. 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.

In January 1919, Nestlé bought two condensed milk plants in Oregon from the
company Geibisch and Joplin for $250,000. One was in Bandon, while the other was
in Milwaukie. They expanded them considerably, processing 250,000 pounds of condensed milk
daily in the Bandon plant.

After the war, government contracts dried up, and consumers switched back to fresh milk.
However, Nestlé's management responded quickly, streamlining operations and reducing debt.
The 1920s saw Nestlé's first expansion into new products, with chocolate-manufacture becoming
the company's second most important activity. Louis Dapples was CEO till 1937 when
succeeded by Édouard Muller till his death in 1948.

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 South 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.

The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated
and numerous companies were acquired. In 1947 Nestlé merged with Maggi, a manufacturer of
seasonings and soups. Crosse & Blackwell followed in 1950, as
did Findus (1963), Libby's (1971), and Stouffer's (1973). Diversification came under Chairman
& CEO Pierre Liotard-Vogt with a shareholding in L'Oreal in 1974 and the acquisition of Alcon
Laboratories Inc. in 1977 for 280 million dollars.

In the 1980s, Nestlé's improved bottom line allowed the company to launch further
acquisitions. Carnation was acquired for $3 billion USD in 1984 and brought the evaporated
milk brand, as well as Coffee-Mate and Friskies to Nestlé. In 1986, the company founded Nestlé
Nespresso S.A.. The candy company Rowntree Mackintosh was acquired in 1988 for
$4.5 billion, which brought brands such as Kit Kat, Smarties, and Aero.

1990–2011: Growth internationally

The first half of the 1990s proved to be favourable for Nestlé. Trade barriers crumbled, and
world markets developed into more or less integrated trading areas. Since 1996, there have been
various acquisitions, including San Pellegrino (1997), D'Onofrio (1997), Spillers
Petfoods (1998), and Ralston Purina (2002). There were two major acquisitions in North
America, both in 2002 – in June, Nestlé merged its US ice cream business into Dreyer's, and in
August, a US$2.6 billion acquisition was announced of Chef America, the creator of Hot
Pockets. In the same time-frame, Nestlé entered in a joint bid with Cadbury and came close to
purchasing the American company Hershey's, one of its fiercest confectionery competitors, but
the deal eventually fell through.

In December 2005, Nestlé bought the Greek company Delta Ice Cream for €240 million. In
January 2006, it took full ownership of Dreyer's, thus becoming the world's largest ice cream
maker, with a 17.5% market share. In July 2007, completing a deal announced the year before,
Nestlé acquired the Medical Nutrition division of Novartis Pharmaceutical for US$2.5 billion,
also acquiring, the milk-flavoring product known as Ovaltine, the "Boost" and "Resource" lines
of nutritional supplements, and Optifast dieting products.

The Brazilian president, Lula da Silva, inaugurates a factory in Feira de Santana (Bahia), in

February 2007

In April 2007, returning to its roots, Nestlé bought US baby-food

manufacturer Gerber for US$5.5 billion. In December 2007, Nestlé entered into a strategic
partnership with a Belgian chocolate maker, Pierre Marcolini.

Nestlé agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The sale was
to form part of a broader US$39.3 billion offer, by Novartis, for full acquisition of the world's
largest eye-care company. On 1 March 2010, Nestlé concluded the purchase of Kraft Foods's
North American frozen pizza business for US$3.7 billion.

Since 2010, Nestle has been working to transform itself into a nutrition, health and wellness
company in an effort to combat declining confectionery sales and the threat of expanding
government regulation of such foods. This effort is being led through the Nestlé Institute of
Health Sciences under the direction of Ed Baetge. The institute aims to develop "a new industry
between food and pharmaceuticals" by creating foodstuffs with preventive and corrective health
properties that would replace pharmaceutical drugs from pill bottles. The Health Science branch
has already produced several products, such as drinks and protein shakes meant to combat
malnutrition, diabetes, digestive health, obesity, and other diseases.

In July 2011, Nestlé SA agreed to buy 60 percent of Hsu Fu Chi International Ltd. for
about US$1.7 billion. On 23 April 2012, Nestlé agreed to acquire Pfizer Inc.'s infant-nutrition,
formerly Wyeth Nutrition, unit for US$11.9 billion, topping a joint bid from Danone and Mead
Johnson.

2012–present: Recent developments

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 specialising 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 as
of 2012.

Another recent purchase included the Jenny Craig weight-loss program, for US$600 million.

Nestlé sold the Jenny Craig business unit to North Castle Partners in 2013. In February 2013,
Nestlé Health Science bought Pamlab, which makes medical foods based on L-methylfolate
targeting depression, diabetes, and memory loss. 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 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 spent 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 announced in January 2017 that it was relocating its US headquarters from Glendale,
California, to Rosslyn, Virginia outside of Washington, DC.

In March 2017, Nestlé announced that they will lower the sugar content in Kit
Kat, Yorkie and Aero chocolate bars by 10% by 2018. In July followed a similar announcement
concerning the reduction of sugar content in its breakfast cereals in the UK.

The company announced a $20.8 billion share buyback in June 2017, following the publication
of a letter written by Third Point Management founder Daniel S. Loeb, Nestlé's fourth-largest
stakeholder with a $3.5 billion stake, explaining how the firm should change its business
structure. Consequently, the firm will reportedly focus investment on sectors such as coffee and
pet care and will seek acquisitions in the consumer health-care industry.

In September 2017, Nestlé S.A. acquired a majority stake of Blue Bottle. While the deal's
financial details were not disclosed, the Financial Times reported "Nestle is understood to be
paying up to $500m for the 68 per cent stake in Blue Bottle". Blue Bottle expects to increase
sales by 70% this year.

In September 2017, Nestlé USA agreed to acquire Sweet Earth, a California-based producer of
plant-based foods, for an undisclosed sum.

In January 2018, Nestlé USA announced it is selling its US confectionary business to Ferrero, an
Italian chocolate and candy maker. The company was sold for a total of an estimated $2.8
billion.

In May 2018, it was announced that Nestlé and Starbucks struck a $7.15 billion distribution deal,
which allows Nestlé to market, sell and distribute Starbucks coffee globally and to incorporate
the brand's coffee varieties into Nestlé's proprietary single-serve system, expanding the overseas
markets for both companies.

Nestle set a new profit target in September 2017 and agreed to offload over 20 of its US candy
brands in January 2018. However, sales grew only 2.4% in 2017, and as of July 2018, the share
price declined more than 8%. While some suggestions were adopted, Loeb said in a July 2018
letter that the shifts are too small and too slow. In a statement, Nestle wrote that it was
"delivering results" and listed actions it had taken, including investing in key brands and its
global coffee partnership with Starbucks. However, activist investors disagreed, leading Third
Point Management to launch NestleNOW, a website to push its case with recommendations
calling for change, accusing Nestle of not being as fast, aggressive, or strategic as it needs to be.
Activist investors called for Nestle to divide into three units with distinct CEOs, regional
structures, and marketing heads - beverage, nutrition, and grocery; spin off more businesses that
do not fit its model such as ice cream, frozen foods, and confectionery; and add an outsider with
expertise in the food and beverage industry to the board.

In October 2018, Nestlé announced the launch of the Nestlé Alumni Network, through a strategic
partnership with SAP & EnterpriseAlumni, to engage with their over 1 million Alumniglobally.

In September 2018, Nestlé announced to sell Gerber Life Insurance for $1.55 billion.

In 2020, Nestlé wants to invest in plant-based food, starting with a "tuna salad" and meat free
products to engage and reach a vegan and younger target.

Factories

Nestle has 6 factories in India. These are

1. Moga (Punjab) : The Nestle factory in Moga has the pride of being the first and most
comprehensive factory of Nestle India. Set up in 1962, it represents the core competence of
Nestle India in the manufacture of milk products (Everyday, Milkmaid), beverages, culinary
products (Maggi sauces, noodles, soups etc.), weaning cereals (Cerelac) and infant milk
formulae.

2. Choladi ( Tamil Nadu): The factory in Choladi started production in 1967. Situated about 60
miles from Calicut, the factory today has 81 employees and produces 1.5% of the total turnover
of Nestle India. It is a 100 percent export oriented unit which processes freshly picked tea leaves
into soluble instant tea.
3. Nanjagud (Karnataka): Production in this factory began in 1989 with the manufacture of
Nestle instant coffee and Sunrise. Today in addition to instant coffee the factory also
manufactures health beverages. The plant to manufacture MILO was also commissioned at this
factory. This factory employs 145 people and is cited as a model in terms of environment
protection for its installations to purify waste water as well as for its provisions for recycling
coffee wastes.

4. Samalakha (Haryana): This factory was set up in 1993. Located 70 kilometres from Delhi ,
it manufactures weaning cereals , culinary products ,health beverages and milk products.
Recently the expansion of manufacturing capacity for Milkmaid Dessert Mixes was undertaken
at this factory as this new and unique product category is viewed to have great potential in the
future.

5. Ponda (Goa): This Kit-Kat factory was set up in Goa in 1995 at a cost of Rs. 50 crores. It
represented a major step by Nestle towards becoming the Number 1 Chocolates and
Confectionery Company in India.

6. Bicholim (Goa): The construction work at this new factory is progressing with speed. This
factory will soon commence the manufacture of culinary products, which is a key thrust area for
the company and will include latest technological improvements relating to this category of
products.

As a part of Nestles efforts towards continuous improvement and excellence in Manufacturing

operation, a Moga Improvement team (MIT) was put in place at the Moga factory. The team
comprised of international experts from Nestle Technical Services (NESTEC) and the local staff.
In 1996, it embarked on a program with the single minded objective of optimizing production
costs while enhancing the product quality so as to make Nestle products even more competitive
in the market place. Drawing upon Nestle’s global experience and manufacturing expertise in 75
countries the team identified the following areas for detailed study -

 Process improvement to ensure the optimal usage of resources

 Improvement of operational efficiency

 Cost optimization

A series of small but critically important initiatives ranging from redesigning laboratories to
palletisation of raw materials and packaging material utilization, manufacturing and filling loses
and labour man hours resulting in substantial savings and improved productivity and machine
utilization. In addition, several non tangible benefits in the form of systems for sustainable
improvement in areas like factory maintenance planning tools , down time recording systems and
performance measurement tools were also realized .

This project was highly successful and the company is now implementing its key learning’s of
MIT in its other factories.

In a country as vast and diverse as India, supply chain management is absolutely critical to rapid
growth. Through BECA, Nestle has concentrated heavily on streamlining and improving their
supply chain management in order to make it more dependable, more cost effective and most
importantly, more responsive to market needs.

For better supply chain integration the planning of key operations - purchase, production,
distribution and sales are synchronised to ensure that everybody works towards a common
business plan. Monthly objectives are broken down into weekly and (wherever necessary) into
daily plans and monitored regularly to ensure smooth implementation and quick corrective action
when needed . Major benefits accrued thus far include reduction in working capital through
lower inventories of finished goods and materials, better stock availability and reduction in
obsolescence of materials.

In addition to traditional performance indicators, quantifiable performance measures have been

identified and implemented in all functional areas such as sales planning, production output,
quality assurance, material ordering transportation and warehouse management. These measures
are monitored regularly to gauge the extent of improvement and identify root problems for taking
corrective actions.

Teams have been put in place at all factories and sales offices to ensure the implementation is
continuous and self-sustaining. Areas of improvement are regularly identified and time bound
action plans established. For this purpose, standard tools such a Total Quality
Management(TQM), Kaizen, 5S and Small Group improvement activity (SGIA) are being
extensively used.

The efficacy of this hierarchical structure is seen in Nestle’s performance over past few years of
various products.

By 1989 the company had achieved a sales figure of approximately Rs. 258 crores. 1989 was the
year of launches. Seven new product lines were launched in this year. This was also the year in
which the Nanjagud factory was set up. By the year 1992, this sales figure was touching Rs 500
crores. In the 1995 the pace of launches quickened and since the construction of the factory at
Samalakha, 20 new products have been introduced. By 2003, Nestle had about 76 different
products in its portfolio with various new products in the pipeline as well. The sales figure now
touched Rs. 1214 crores. Thus sales grew by 450% over a period of one and a half decades.

Marketing Strategy Of Nestle -

Nestle has adopted a four pronged growth strategy: -

1. Gunning the market with new products and brand extensions.

2. Expansion of the distribution network to small towns for extensive availability.

3. Reduce prices and introduce smaller packages for products to make them more
affordable (a tool to enter price sensitive markets).
 4. Focus on employ training and develop a positive attitude through enhanced manpower
development.

5. By year 2003 it expects chocolate & confectionery to account for one in every third
rupee in sale.

In the late 1996 fear of breading complacency by not having a continuous improvement,
gave birth to an international sales & marketing improvement teams (SMIT).

SMIT maps the latest in helping towards the target of year. 2003. The SMIT exercise is a major
global initiative of Nestle to enhance sales & marketing productivity. Linked with the already
existing BECA project, which in turn emphasises on excellence by improving the distribution set
up , this gave rise to the following growth objectives for the year 2003

 Ensure direct coverage of all urban towns in India.

 Expand distribution to reach 1 million retail outlets on a regular basis.

 Work in partnership with the distributor for the achievement of these objectives.

 Provide sustainable solution to optimize our secondary sales from distributor to retailer.

PRODUCTS

Nestlé currently 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.  In 2019, the company entered the plant-based food production
business with its Incredible and Awesome Burgers (under the Garden Gourmet and Sweet Earth
brands). In 2020, Nestle announced additional plant-based products including bratwurst that is
soy-based and chorizo-like sausages.

To put all the product launches into perspective, Nestle now has 80 products including various
flavours and variants this awesome list of 80 products for most companies is an overfull palate.
Nestle India Ltd. Still have a variety of new products in the pipelines. It believes in slowly
colonizing as much territory as fast as it can, adapting to native conditions and then work at
“holding off the advancing herds”. Nestle products can be broadly classified into 5 main ranges -

 Milk Products

 Chocolate and Confectionery

 Beverages

 Culinary

 Food service

Milk Products

This category which comprises of condensed milk, baby milk foods , milk powders , acidified
infant food , and other milk products, showed a slump in 1996 as sale of milk products fell from
Rs 31.4 crores in 1995 to Rs 31.2 crores in the said year. Consumer offtake remained depressed
throughout this year as a consequence of high price increases necessitated by substantial
increases(+50%) in the cost of basic raw materials( fresh milk ) , over the past two years .

However Nestle retained its leadership in the infant food market with Cerelac, Lactogen and
Nestum and even introduced a new flavour of Cerelac - Cerelac Rice in 1996.

Chocolates and Confectionery

Nestle pursues the objective of accounting for one in every three rupees in its sales figures
through chocolates and confectionery. This has thus been one of the thrust areas in Nestle.
Nestle this year widened its range of flavours in POLO, backed by its tremendous success in the
Indian Market by adding POLO Spearmint to its Portfolio. This new flavour has also received
an encouraging response in the market according to market analysts.

Milkybar also retained its position as the number one white chocolate brand in India, however it
did not record a significant increase in sales as a majority of Indian tastes still do not accept this
flavour.

This year however, was a year of tremendous success for Kit Kat .This internationally renowned
brand gained a large increase in the Market share in the past year and Nestle officials are hopeful
that this will further increase in the coming years. However this Brand along with it success has
brought with it its share of Controversy as the Union of India has launched a Litigation against
the Kit Kat family pack.

In 1997 Nestle added to its range of confectionery by introducing SPLASH, “A soft hearted,
hard boiled sweet ” this is being promoted as a sweet unique to India and is positioned to a target
audience in the age group of 4 to 12 years and “anyone with a soft heart” is a potential customer.
Priced at Rs. 1 for a 7.5 gram candy splash has been introduced selectively in the South and has
been speculated to repeat Polo’s performance. Nestle’s officials claim that this candy has the
potential to grab a quarter of the 700 crores confectionery market.

The most recent of Nestle affairs with the confectionery market has been the introduction of
Mithai Magic which is “a little Mithai , a little magic “ .This new product was launched in
September 1997 ,in time for the Diwali purchases of sweets . This brand has been positioned
somewhere between chocolates and traditional sweets and the company is employing a push
strategy to promote this brand.

Beverages

This year has been very successful in the beverages market for Nestle .The sales of beverages
has increased from Rs 323.3 crores in 2002 to Rs 398.8 crores in 2003.

Nestles Flagship Nescafe which was pegged at Rupees 1040 per Kilogram before the launch of
Tata Cafe, met with stiff competition from Tata Cafe priced at Rupees 550 per Kg once it was
introduced . Tata cafe claimed to have garnered a market share of 17% by December 1996. This
forced Nestle to cut prices of Nescafe to Rupees 840 per Kg. However Nescafe still retains 83%
market share in the Rs 177 Crores market for pure instant coffee.
Nestle Sunrise also showed an increase in sales and captured 20 % of the Rs 253 crores market in
Mixed instant coffee.

This year Nestle also launched MILO, an internationally renowned chocolate energy drink, and
the response for this has been encouraging.

Nestle has also introduced Tasters Choice tea bag pitched against Taj mahal tea bags.

Culinary Products

The market in culinary products had witnessed a high growth consequent to aggressive pricing
decisions on existing products and the introduction of a variety of new products to match the
needs of the Indian Housewife. Encouraged by this success Nestle launched Maggi Macoroni
Snack in three flavors - Chicken , Masala and Tomato. Nestle officials’ say that this would
consolidate Maggis position as the number 1 culinary brand in India. The product focuses on
convenience and innovation as its Unique Selling Proposition. This snack has opened a new
segment for the maggi brands. The brand is positioned as youthful and is represented by the
twists and curls of the macaroni snack. It is speculated to be introduced in a phase manner
nation-wide to be placed in the 7.5 lakh outlets that Maggi noodles sells in .
In the spirit of catering to Indian tastes Maggi introduced maggi pickles in five variants
benchmarked to give the “ghar ka swad”. Maggi Dosa Mix was also introduced to offer superior
quality and added convenience. Apart from this Milkmaid Kalakand Mix, a traditional north
Indian sweet of premium quality was added to the milkmaid dessert mixes. Maggi soup also
launched three new variants. Maggi Rassam in particular was noticeable as yet another attempt
to make traditional Indian cooking a little bit easier.

Food Service

Food service items basically deal with the out of home segments, which would include vending
machines. Nestle’s food service business is poised for rapid expansion to meet the growing need
for such a reliable, time saving and cost effective service in this modern age .

Nestle wants to sell 500 million cups of tea and coffee through its vending machines in the year
2003. It currently has 3500 vending machines at assorted locations (both public and private). In
1995 Nestle food service did well to vend 40 million cups of Nescafe and Tasters Choice tea. Its
2003 sales were placed at 59 million cups of Nescafe and 36 million cups of tea, this figure was
however way below the expected sales for the year.

Distribution strategy

It is an indisputable fact that fundamentally all consumers marketing must first assure
availability of the product to the consumer. In India, the urban population alone is of a whooping
250 million consumers -an unbelievable potential for any FMCG . The potential being spread
across more than 4000 towns have to be very effectively and efficiently tapped. Nestle till now
was retailing in a limited number of towns with only 200 towns accounting for 70 % of their
business. For Nestle to be a leader in the food industry, expanding the distribution network for
more retail outlets was a must.

To meet this challenge, Nestle is working towards an objective of increasing the retail base to
1,000,000 outlets by the year 2003. This network is feasible as Nestle has a triangular
distribution structure thus the span of control is still retained. The Distribution Network is
explained in figure 2.
In order to achieve these distribution objectives Nestle has formulated an international sales and
marketing improvement team (SMIT). SMIT focuses on a single objective -provide sustainable
solutions to optimize the distributor and retailer sales through a step by step approach starting
with analysis of market followed by identification of the probable retail outlets and finally
selection of the same .The team also focuses on proper implementation of resources and timely
follow ups for effective solutions.

Advertising Strategy

Nestle, a cash rich company has plenty of marketing prowess. This can be credited to a strong
and sound advertising strategy.

Nestle in the year 2002 had an advertisement spending of Rs 43.3 crores (net) . Tracing Nestles
advertising responses the ad campaign by HTA of ‘Hot and Sweet’ was a runway success this ad
was actually meant to fend off a challenge from H.J Heinz. The Maggi ranges of sauces were
introduced in 1985 but sales didn’t catch up until 1990 but till 2003 it got considerable market
share. At this point the popular and memorable campaign of Javed Jaffrey and Pankaj Kapoor
was launched by Producer Pralad Kakkar . This commercial was an instant success. The volume
of sales kept rising from an initial growth of 13% to 20% in the next year. Today the sales figure
for Maggi Sauces is growing at a steady 6% per year.

Another noteworthy campaign was that of POLO (the mint with a hole), devised by Mudra
advertising agency. This campaign was awarded 11 industry ad awards.

In 2002 the advertisement budget has been approximately Rs 56 crores where again innovation
was the main focus. The new nation-wide product launch of Maggi Macaroni Snack and Mithai
Magic have been designed by Mudra . The Macaroni ad with its use of “English “ and a catchy
beat (which is the latest trend amongst the Indian Advertisers) appeals well to the target audience
and the Mithai Magic commercial does keep the secret of the contents in the box , intact.

“Training is an integral and indispensable part of Nestle . I regard the importance of training a
highly as research and development .It is a major investment in the Future of the company and
imperative because it is an investment in people ”

- Mr. Helmut Maucher

Chairman and CEO Nestle S A Group

Nestle India Ltd. has an employee base of 3040 people and aims to be in the top quartile of the
FMCG companies .For this purpose it follows a very stern and rigorous recruitment policy .

Recruitment Policy

Recruitment of fresh management trainees and sales officers is done every April-May. These
graduates are generally selected from the best institutes in the country through a series of
interviews. They are then put through a probation period of 12-18 months. Although Nestle does
not offer some of the highest pay packets in the industry, it is considered a growth oriented
company.

Training and Development

Continuous development of skills and attitudes of employees is critical to the achievement of
excellence. At Nestle therefore training and development of human resources is viewed as a long
term investment .

“ If you are planning for one year , Plant wheat;

If you are planning for ten years, plant a tree;

If you are planning for life, train people.”

- Old Chinese proverb

This proverb goes with the organizations most enduring beliefs worldwide -

 That long term planning is the key to Nestles global success

 That Nestle’s most valuable assets are its people

 Nestle’s policy is to rely on a more decentralized form of management by building in the

habit to “ Think Nestle”.

At Nestle India training and development is an integral part of the business plan and strategy in
line with the objectives for the year 2003 and aims to -

 Help employees to retain long term perspective and integrate them fully with the company’s
business goals

 View the growth of both the personnel and the company as a continuous process .

 Concentrate on attitudinal changes by developing leadership skills, an appreciation of

interdependence between units and the enhancement of a sense of belonging to Nestle .

In 2003 Nestle India benefited greatly from the training program offered at the Rive Reine
International Training Center at Vevey, Switzerland. This training program helped facilitate the
transfer of common Knowledge (technical, marketing, and finance) across the Nestle Group and
ensure interdisciplinary approach to learning and uniform progress with a tailor-made approach
for all.

Company Training needs -

 analysis of training needs of Managers

 self development programs for staff at HO

 programs for company orientation and information sharing

 programs aimed at computer training and computerization

 Establishment of contact with leading management institutes with a view to use the same for
meeting local training requirements

Food safety
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.[82] 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. 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 6.4 billion rupee (approximately US$93 million) 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 sought 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 consumer trust, featuring items such as [106] the Maggi
anthem by Vir Das and Alien Chutney. Nestlé resumed production of Maggi at all five plants in
India on 30 November 2015.

Sponsorships

Music and Entertainment

In 1993, plans were made to update and modernise the overall tone of Walt Disney's EPCOT
Center, including a major refurbishment of The Land pavilion. Kraft Foods withdrew its
sponsorship on 26 September 1993, with Nestlé taking its place. Co-financed by Nestlé and the
Walt Disney World Resort, a gradual refurbishment of the pavilion began on 27 September 1993.
In 2003, Nestlé renewed its sponsorship of The Land; however, it was under agreement that
Nestlé would oversee its own refurbishment to both the interior and exterior of the pavilion.
Between 2004 and 2005, the pavilion underwent its second major refurbishment. Nestlé stopped
sponsoring The Land in 2009.

On 5 August 2010, Nestlé and the Beijing Music Festival signed an agreement to extend by three
years Nestlé's sponsorship of this international music festival. Nestlé has been an extended
sponsor of the Beijing Music Festival for 11 years since 2000. The new agreement will continue
the partnership through 2013.
Nestlé has partnered the Salzburg Festival in Austria for 20 years. In 2011, Nestlé renewed its
sponsorship of the Salzburg Festival until 2015.

Together, they have created the "Nestlé and Salzburg Festival Young Conductors Award", an
initiative that aims to discover young conductors globally and to contribute to the development
of their careers.

Sports
Nestlé's sponsorship of the Tour de France began in 2001 and the agreement was extended in
2004, a move which demonstrated the company's interest in the Tour. In July 2009, Nestlé
Waters and the organisers of the Tour de France announced that their partnership will continue
until 2013. The main promotional benefits of this partnership will spread on four key brands
from Nestlé's product portfolio: Vittel, Powerbar, Nesquik, or Ricore.

In 2014, Nestlé Waters sponsored the UK leg of the Tour de France through its Buxton Natural
Mineral Water brand. In 2002, Nestlé announced it was main sponsor for the Great Britain
Lionesses Women's rugby league team for the team's second tour of Australia with
its Munchies product.

On 27 January 2012, the International Association of Athletics Federations announced that

Nestlé will be the main sponsor for the further development of IAAF's Kids' Athletics
Programme, which is one of the biggest grassroots development programmes in the world of
sports. The five-year sponsorship started in January 2012. On 11 February 2016, Nestlé decided
to withdraw its sponsorship of the IAAF's Kids' Athletics Programmes because of doping and
corruption allegations against the IAAF. Nestlé followed suit after other large sponsors,
including Adidas, also stopped supporting the IAAF.

Nestlé supports the Australian Institute of Sport (AIS) on a number of nutrition and fitness

fronts, funding a Fellowship position in AIS Sports Nutrition; nutrition activities in the AIS
Dining Hall; research activities; and the development of education resources for use at the AIS
and in the public domain.
Football

Currently a sponsor of India's top-tier men's football league, the I-League.

Controversies And Criticism

Baby formula marketing
Concern about Nestlé's "aggressive marketing" of their breast milk substitutes, particularly
in less economically developed countries (LEDCs), first arose in the 1970s. Critics have accused
Nestlé of discouraging mothers from breastfeeding and suggesting that their baby formula is
healthier than breastfeeding, while the reverse is true. [citation needed] This led to a boycott which was
launched in 1977 in the United States and subsequently spread into Europe. The boycott was
officially suspended in the US in 1984, after Nestlé agreed to follow an international marketing
code endorsed by the World Health Organization (WHO), but was relaunched in 1989. As of
2011, the company is included in the FTSE4Good Index designed to help enable ethical
investment.

In May 2011, nineteen leading Laos-based international NGOs, including Save the

Children, Oxfam, CARE International, Plan International, and World Vision launched a boycott
of Nestlé with an open letter.[130] Among other unethical practices, they criticised a failure to
translate labelling and health information into local languages and accused the company of
giving incentives to doctors and nurses to promote the use of infant formula. Nestlé denied the
claims and responded by commissioning an audit, carried out by Bureau Veritas, which
concluded that "the requirements of the WHO Code and Lao PDR Decree are well embedded
throughout the business" but that they were violated by promotional materials "in 4% of the
retail outlets visited".
Ernest W. Lefever and the Ethics and Public Policy Center were criticized for accepting a
$25,000 contribution from Nestlé while the organization was in the process of developing a
report investigating medical care in developing nations which was never published. It was
alleged that this contribution affected the release of the report and led to the author of the report
submitting an article to Fortune Magazine praising the company's position.

Nestlé has been under investigation in China since 2011 over allegations that the company bribed
hospital staff to obtain the medical records of patients and push its infant formula to increase
sales. This was found to be in violation of a 1995 Chinese regulation that aims to secure the
impartiality of medical staff by banning hospitals and academic institutions from promoting
instant formula to families. As a consequence, six Nestlé employers were given prison sentences
between one and six years.

Slavery and child labour

Multiple reports have documented the widespread use of child labour in cocoa production, as
well as slavery and child trafficking, throughout West African plantations, on which Nestlé and
other major chocolate companies rely. According to the 2010 documentary The Dark Side of
Chocolate, the children working are typically 12 to 15 years old. The Fair Labor Association has
criticised Nestlé for not carrying out proper checks.

In 2005, after the cocoa industry had not met the Harkin–Engel Protocol deadline for certifying
that the worst forms of child labour (according to the International Labour
Organization's Convention 182) had been eliminated from cocoa production, the International
Labor Rights Fund filed a lawsuit in 2005 under the Alien Tort Claims Act against Nestlé and
others on behalf of three Malian children. The suit alleged the children were trafficked to Ivory
Coast, forced into slavery, and experienced frequent beatings on a cocoa plantation. In
September 2010, the U.S. District Court for the Central District of California determined
corporations cannot be held liable for violations of international law and dismissed the suit. The
case was appealed to the U.S. Court of Appeals. The Ninth Circuit Court of Appeals reversed the
decision. In 2016, the U.S. Supreme Courtdeclined to hear Nestlé's appeal of the Ninth Circuit's
decision.

A 2016 study published in Fortune Magazine concluded that approximately 2.1 million children
in several West African countries "still do the dangerous and physically taxing work of
harvesting cocoa", noting that "the average farmer in Ghana in the 2013–14 growing season
made just 84¢ per day, and farmers in Ivory Coast a mere 50¢ [...] well below the World Bank’s
new $1.90 per day standard for extreme poverty". On efforts to reduce the issue, former secretary
general of the Alliance of Cocoa Producing Countries Sona Ebai commented "Best-case
scenario, we’re only doing 10% of what’s needed."

In 2019, Nestlé announced that they couldn't guarantee that their chocolate products were free
from child slave labour, as they could trace only 49% of their purchasing back to the farm level.
The Washington Post noted that the commitment taken in 2001 to eradicate such practices within
4 years had not been kept, neither at the due deadline of 2005, nor within the revised deadlines of
2008 and 2010, and that the result was not likely to be achieved for 2020 either.

Anti-union activities
Nestlé has been involved in extensive union-busting activity in Colombia since it first arrived
there. According to a spokesman for Sinaltrainal, the Colombian Foodworkers Union: "Nestlé
converts the factories into camps for the public security forces in order to create terror in the
community, destroy the unity of the workers, and misinform the members of the union, with the
goal of pitting them against the leaders and destroying the movement."

Water
Status of potable water
At the second World Water Forum in 2000, Nestlé and other corporations persuaded the World
Water Council to change its statement so as to reduce access to drinking water from a "right" to a
"need". Nestlé continues to take control of aquifers and bottle their water for profit. Peter
Brabeck-Letmathe later changed his statement.

Plastic bottles
A coalition of environmental groups filed a complaint against Nestlé to the Advertising
Standards of Canada after Nestlé took out full-page advertisements in October 2008 claiming,
"Most water bottles avoid landfill sites and are recycled", "Nestlé Pure Life is a healthy, eco-
friendly choice", and, "Bottled water is the most environmentally responsible consumer product
in the world." A spokesperson from one of the environmental groups stated: "For Nestlé to claim
that its bottled water product is environmentally superior to any other consumer product in the
world is not supportable." In their 2008 Corporate Citizenship Report, Nestlé themselves stated
that many of their bottles end up in the solid-waste stream, and that most of their bottles are not
recycled. The advertising campaign has been called greenwashing. Nestlé defended its ads,
saying they will show they have been truthful in their campaign.

Water bottling operations in California, Oregon and Michigan

Considerable controversy has surrounded Nestlé's bottled water brand Arrowhead sourced from
wells alongside a spring in Millard Canyon situated in a Native American Reservation at the base
of the San Bernardino Mountains in California. While corporate officials and representatives of
the governing Morongo tribe have asserted that the company, which started its operations in
2000, is providing meaningful jobs in the area and that the spring is sustaining current surface
water flows, a number of local citizen groups and environmental action committees have started
to question the amount of water drawn in the light of the ongoing drought, and the restrictions
that have been placed on residential water use. Additionally, recent evidence suggests that
representatives of the Forest Service failed to follow through on a review process for Nestlé's
permit to draw water from the San Bernardino wells, which expired in 1988. In San Bernardino
Nestlé pays the US Forest Service $524 yearly to pump and bottle about 30 million gallons, even
during droughts. Peter Gleick, a co-founder of the Pacific Institute, that has focused on water
issues remarks, “Every gallon of water that is taken out of a natural system for bottled water is a
gallon of water that doesn’t flow down a stream, that doesn’t support a natural ecosystem,” he
says, “Our public agencies have dropped the ball”.

The former forest supervisor Gene Zimmerman has explained that the review process was
rigorous, and that the Forest Service "didn't have the money or the budget or the staff" to follow
through on the review of Nestlé's long-expired permit. However, Zimmerman's observations and
action have come under scrutiny for a number of reasons. Firstly, along with the natural resource
manager for Nestlé, Larry Lawrence, Zimmerman is a board member for and played a vital role
in the founding of the nonprofit Southern California Mountains Foundation, of which Nestlé is
the most noteworthy and longtime donor.[163] Secondly, the Zimmerman Community Partnership
Award – an award inspired by Zimmerman's actions and efforts "to create a public/private
partnership for resource development and community engagement" – was presented by the
foundation to Nestlé's Arrowhead Water division in 2013. Finally, while Zimmerman retired
from his former role in 2005, he currently works as a paid consultant for Nestlé, leading many
investigative journalists to question Zimmerman's allegiances prior to his retirement from the
Forest Service.

In April 2015, the city of Cascade Locks, Oregon and the Oregon Department of Fish and
Wildlife, which is using water for a salmon hatchery, applied with the Oregon Water Resources
Department to permanently trade their water rights to Nestlé; an action which does not require a
public-interest review. Nestlé approached them in 2008 and they had been considering to trade
their well water with Oregon's Oxbow Springs water, a publicly owned water source in the
Columbia River Gorge National Scenic Area, and to sell the spring water at over 100 million
gallons of water per year to Nestlé. The plan has been criticized by legislators and 80,000
citizens. The 250,000-square-foot, $50 million Nestlé bottling plant in Cascade Locks with an
unemployment rate of 18.8 percent would have 50 employees and would increase property-tax
collections by 67 percent. In May 2016, voters of Hood River County voted 69 percent to 31
percent for the ballot measure to ban large bottling operations in the area, but in Cascade Locks,
the one precinct in Hood River County, voters decided against the ballot measure, 58 percent to
42 percent. As a result, the Cascade Locks city council voted 5-to-1 to keep up the fight. Soon
after, Governor Kate Brown directed state officials to stop an exchange of water rights that was
crucial to the deal, citing fiscal rather than environmental reasons. Nestlé then acknowledged that
the exchange "will not be going forward", marking a definite end to the planned bottling
operation.

Although a 2005 court settlement gave Nestlé the right to pump 250 gallons per minute (GPM)
from a well in unincorporated Osceola Township, Osceola County, Michigan, Nestlé has tried to
increase that rate to 400 GPM. Its bottled water is sold under the Ice Mountain Spring label. The
local planning commission denied the application to build a booster station to increase the
capacity of the pipeline that delivers water to a water truck depot some distance from the town.
Local citizens mounted considerable grassroots opposition to the plan, with 55 opponents
testifying against the proposal at a meeting attended by almost 500 people in July 2017. The
litigation has been costly to the small town, which receives its only compensation from a $200
annual pumping fee. Regarding the 1976 Michigan Safe Drinking Water Act, section 17, a
measure precipitated by Nestlé's previous demands, Bill Cobbs, a current Democratic
gubernatorial candidate said, "This is wrong -- when this act was written in 1976 it was never
intentioned that water would be up for sale." The "David vs. Goliath" situation is drawing
increasing national attention. Nestlé approaches water purely as a commodity. In 1994 Helmut
Maucher, Nestlé's CEO commented, “Springs are like petroleum. You can always build a
chocolate factory. But springs you have or you don’t have.” His successor, Peter Brabeck-
Letmathe, was criticized when, in a 2005 documentary, he similarly promoted and rationalized
the commodification of water, saying: “One perspective held by various NGOs—which I would
call extreme—is that water should be declared a human right."

Chocolate price fixing

In Canada, the Competition Bureau raided the offices of Nestlé Canada (along with those
of Hershey Canada and Mars Canada) in 2007 to investigate the matter of price fixing of
chocolates. It is alleged that executives with Nestlé (the maker of KitKat, Coffee Crisp, and Big
Turk) colluded with competitors in Canada to inflate prices.

The Bureau alleged that competitors' executives met in restaurants, coffee shops, and at
conventions, and that Nestlé Canada CEO, Robert Leonidas, once handed a competitor an
envelope containing his company's pricing information, saying: "I want you to hear it from the
top – I take my pricing seriously."

Nestlé and the other companies were subject to class-action lawsuits for price fixing after the
raids were made public in 2007. Nestlé settled for $9 million, without admitting liability, subject
to court approval in the new year. A massive class-action lawsuit continues in the United States.

Ethiopian debt repayment

In 2002, Nestlé demanded that the nation of Ethiopia repay US$6 million of debt to the company
at a time when Ethiopia was suffering a severe famine. Nestlé backed down from its demand
after more than 8,500 people complained via e-mail to the company about its treatment of the
Ethiopian government. The company agreed to re-invest any money it received from Ethiopia
back into the country. In 2003, Nestlé agreed to accept an offer of US$1.5 million, and donated
the money to three active charities in Ethiopia: the Red Cross, Caritas, and UNHCR.

Ukraine
In August 2015, the Ukrainian TV channel Ukrayina refused to hire a worker of the weekly
magazine Krayina, Alla Zheliznyak, as a host of a cooking show because she speaks Ukrainian.
The demand to only hire a Russian-speaking host was allegedly set by a sponsor of the show
– Nesquik, which is a brand of Nestlé S.A. Activists of the Vidsichcivil movement held a rally
near the office of the company in Kiev, accusing Nestlé of discriminating against people who
speak Ukrainian and supporting the Russification of Ukraine. They also criticised goods sold in
Ukraine being manufactured in Russia and threatened a boycott.

Forced labour in Thai fishing industry

At the conclusion of a year-long self-imposed investigation in November 2015, Nestlé disclosed
that seafood products sourced in Thailand were produced with forced labour. Nestlé is not a
major purchaser of seafood in Southeast Asia, but does some business in Thailand – primarily for
its Purina cat food. The study found virtually all US and European companies buying seafood
from Thailand are exposed to the same risks of abuse in their supply chains. This type of
disclosure was a surprise to many in the industry because international companies rarely
acknowledge abuses in supply chains.

Nestlé was expected to launch a year-long program in 2016 focused on protecting workers across
its supply chain. The company has promised to impose new requirements on all potential
suppliers, train boat owners and captains about human rights, ] and hire auditors to check for
compliance with new rules.

Deforestation
In September 2017, an investigation  conducted by NGO Mighty Earth found that a large amount
of the cocoa used in chocolate produced by Nestlé and other major chocolate companies was
grown illegally in national parks and other protected areas in Ivory Coast and Ghana. The
countries are the world's two largest cocoa producers.

The report documents how in several national parks and other protected areas, 90% or more of
the land mass has been converted to cocoa. Less than four percent of Ivory Coast remains
densely forested, and the chocolate companies’ laissez-faire approach to sourcing has driven
extensive deforestation in Ghana as well. In Ivory Coast, deforestation has
pushed chimpanzees into just a few small pockets, and reduced the country's elephant population
from several hundred thousand to about 200-400.
Competitors
 PepsiCo
 Kraft Heinz
 Mondelez International
 Unilever
 Mars, Incorporated
 Sara Lee
 Cadbury
 Danone
 Ferrero SpA

Corporate social responsibility program involvements -

Nestlé efforts relating to social responsibility programs include:

 World Cocoa Foundation: In 2000, Nestlé and other chocolate companies formed the
World Cocoa Foundation (WCF). The WCF is an international membership organization
 representing more than 100 member companies across the cocoa value chain. Its goal is to
form a sustainable cocoa economy by prioritizing farmers, promoting agricultural &
environmental stewardship, and strengthening development in cocoa-growing communities.
 Sustainable Agriculture Initiative: In 2002, Nestlé, Unilever, and Danone created the
Sustainable Agriculture Initiative (SAI) Platform, a non-profit organization for sharing
knowledge and initiatives for the development and implementation of sustainable agriculture
practices involving the different stakeholders of the food chain. The SAI Platform has more
than 60 members, which actively share the same view on sustainable agriculture seen as "the
efficient production of safe, high-quality agricultural products, in a way that protects and
improves the natural environment, the social and economic conditions of farmers, their
employees and local communities, and safeguards the health and welfare of all farmed
species." The SAI Platform developed (or co-developed) Principles and Practices for
sustainable water management at the farm level; recommendations for Sustainability
Performance Assessment (SPA); a standardised methodology for the dairy sector to assess
green house gas emissions; an Executives Training on Sustainable Sourcing; and many more.
[193]
 One instance of Nestlé's impact on sustainable agricultural practices has been
documented in academic literature.
 Creating Shared Value: Creating Shared Value (CSV) is a business concept intended to
encourage businesses to create economic and social value simultaneously by focusing on the
social issues that they are capable of addressing. In 2006, Nestlé adopted the CSV approach,
focusing on three areas – nutrition, water and rural development – as these are core to their
business activities. Nestlé now publishes an annual progress report on its goals. Nestlé also
established the Creating Shared Value Prize, which is awarded every other year with the aim
of rewarding the best examples of CSV initiatives worldwide and to encourage other
companies to adopt a shared value approach. These initiatives should take a business-
oriented approach in addressing challenges in nutrition, water or rural development. The
winner can win up to CHF 500,000. Nestlé was an early mover in the shared value space and
hosts a global forum, the Creating Shared Value Global Forum.
 Nestlé Cocoa Plan: In October 2009, Nestlé announced "The Cocoa Plan." The company
is working to get 100 percent of its chocolate portfolio using certified sustainable cocoa. For
third-party certification, Nestlé has partnered with UTZ Certified to ensure that best practices
 are being used. Many of Nestlé's efforts are focused on the Ivory Coast, where 40 percent of
the world's cocoa comes from. The company has developed a higher-yielding, more drought-
and disease-resistant cocoa tree; and they have given 3 million of these super trees to farmers
thus far and plan to give away 12 million of them in total. They are also training farmers in
efficient and sustainable growing techniques, which focuses on better farming practices,
including pruning trees, pest control (with an emphasis on integrated pest management) and
harvesting, as well as caring for the environment. In addition, they have built 23 new schools
so far and plan to build 40 in total by 2015.  Another part of the plan has been to address
child labor. Nestlé says that according to US statistics, there are about 800,000 children who
work the cocoa supply chain. With this in mind, Nestlé approached the Fair Labor
Association to map out strategies to help curb child labor in the cocoa sector, and these
efforts – including community education and the building of schools – have become a focus
of the Cocoa Plan.
 Ecolaboration: On 22 June 2009, Nestlé Nespresso and Rainforest Alliance signed a pact
called "Ecolaboration". One of the shared goals is to reduce the environmental impacts and
increase the social benefits of coffee cultivation in enough tropical regions so that 80 percent
of Nespresso's coffee comes from Rainforest Alliance Certified farms by the year 2013.
Certified farms comply with comprehensive standards covering all aspects of sustainable
farming, including soil and water conservation, protection of wildlife and forests, and
ensuring that farm workers, women and children have all the proper rights and benefits, such
as good wages, clean drinking water, access to schools, and health care and security.
 The Nescafé Plan: In 2010, Nestlé launched the Nescafé Plan, an initiative to increase
sustainable coffee production and make sustainable coffee farming more accessible to
farmers. The plan aims to increase the company's supply of coffee beans without clearing
rainforests, as well as using less water and fewer agrochemicals. According to Nestlé,
Nescafé will invest 350 million Swiss francs (about $336 million) over the next ten years to
expand the company's agricultural research and training capacity to help benefit many of the
25 million people who make their living growing and trading coffee. The Rainforest Alliance
and the other NGOs in the Sustainable Agriculture Network will support Nestlé in meeting
the objectives of the plan.
 Health care and nutrition product development: In September 2010, Nestlé said that it
would invest more than $500 million between 2011 and 2020 to develop health and wellness
products to help prevent and treat major ailments like diabetes, obesity, cardiovascular
disease, and Alzheimer’s, which are placing an increasing burden on governments at a time
when budgets are being squeezed. Nestlé created a wholly owned subsidiary, Nestlé Health
Science, as well as a research body, the Nestlé Institute of Health Sciences.
 Membership in Fair Labour Association: In 2011, Nestlé started to work with the Fair
Labor Association (FLA), a non-profit, multi-stakeholder association that works with major
companies to improve working conditions in developing countries, to assess labor conditions
and compliance risks throughout Nestlé's supply chain of hazelnuts and cocoa. On 29
February 2012, Nestlé became the first company in the food industry to join the FLA.
Building on Nestlé's efforts under the Cocoa Plan, the FLA will send independent experts
to Ivory Coast in 2012 and where evidence of child labour is found, the FLA will identify
root causes and advise Nestlé how to address them in sustainable and lasting ways. As a
Participating Company, Nestlé has committed to ten Principles of Fair Labor and
Responsible Sourcing, and to upholding the FLA Workplace Code of Conduct throughout
their supply chains, starting with farms.
 Rural Development Framework program: In 2012, Nestlé developed the Rural
Development Framework, which supports farmers and cocoa growing communities. It is an
investment program aimed at improving infrastructure, increasing access to safe water,
address financing and market efficiency gaps, and improving labor conditions.
 Partnership with IFRC: Nestlé has had a long-standing partnership with the International
Federation of Red Cross and Red Crescent Societies (IFRC) to increase access to safe water
and sanitation in rural communities. In recent years, the partnership has brought clean
drinking water and sanitation facilities to 100,000 people in Ivory Coast's cocoa
communities. Nestlé committed to contributing five million Swiss francs during 2014–2019
to the IFRC.
CHAPTER – 2
 LITERATURE REVIEW

2.1 Literature Review

Anja Lambrecht, Catherine Tucker (2012) : the authors suggest that rather than
evaluating multiperiod service contracts at the contract level, customers use period-level
bracketing.
customers evaluate the distinct per-period loss or gain they incur from choosing this
contract. this has important consequences when benefits vary over the course of the contract
—for example, due to ―hassle costs.‖ if customers use period-level bracketing, they will
value a lower price more in periods during which they have hassle than in other periods. the
authors explore this using data from a field experiment for web hosting services.

Arul Mishra & Himanshu Mishra (2010) : In this article, the authors find that type of
food consumed can also influence impulsive choice. Specifically, food that enhances the
levels of the neurotransmitter serotonin can reduce impulsive choice. To test the hypotheses
on the influence of serotonin on post consumption impulsive choice, the authors collected
data on the eve of Thanksgiving. The occasion of Thanksgiving dinner provides a
naturalistic setting in which people consume a tryptophan-rich meal.

Asthana A K (2012) : IFFCO is a multi-product, multi-business enterprise. The fertilizer

product line of IFFCO needs to be analysed to assess the cash consumption and cash
generation position of the product. This analysis will help to determine the continuity of the
product in the future and protect its market leader position.

Athanasios Kristallis, Klaus G Grunert, Marcia D de Barcellos, Taula Perrea, & Wim
Verbeke (2013) : This study aims to analyse citizens' sustainability attitudes towards food
production in the EU, Brazil, and China , using pork as an exemplary production system.
The objective is to map citizens' attitudes towards sustainable characteristics of pig
production systems, and investigate whether these attitudes coincide with people's general
attitudes towards sustainability, on one hand, and their consumption of specific pork
products, on the other.
Babu P George & Manoj Edward (2009) : The authors suggest that cognitive dissonance
and purchase involvement which happen when customers have a discrepancy between what
they believe and what are the information they call to question. It is high in high
involvement products and so is critical to marketers.

Benedict GC Dellaert, Gerald Hauble (2014) : This article examines how a common form
of decision assistance— recommendations that present products in order of their predicted
attractiveness to a consumer—transforms decision processes during product search. Such
recommendations induce a shift in consumers' decision orientation in search from being
directed at whether additional alternatives should be inspected to identifying the best
alternative among those already encountered.

Blair Kidwell, David M Hardesty, Brian R Murtha, Shibin Sheng (2011) : This research
examines how sales professionals use emotions in marketing exchanges to facilitate positive
outcomes for their firms, themselves, and their customers. The authors conduct three field
studies to examine the impact of emotional intelligence (EI) in marketing exchanges on
sales performance and customer relationships.

Chandan Goswami, & Pradip C Bhuyan (2015) : The study was carried out in Sonitpur
district of Assam to find out the segmental variation of fish consumption patterns based on
demographic and geographic profiles. A total of 132 respondents covering four different
communities from both rural and urban areas had been selected following quota and
judgment sampling.

Che Aniza Binti Che Wel & Jamil Bojei (2009) : The authors discuss about the
dimensions of relationship marketing instruments that are appropriate in managing
customer relations. It advises to move to personal touch.

Ernst C Osinga, Peter SH Leeflang, Shuba Sreenivasan, Jaap E Wereinga (2011) :

Marketing managers increasingly recognize the need to measure and communicate the
impact of their actions on shareholder returns. This study focuses on the shareholder value
effects of pharmaceutical direct-to-consumer advertising (DTCA) and direct-to-physician
(DTP) marketing efforts.

Figen Ebren (2008) : The study contrasts status seeking and role relaxed customers spread
across social influence and personal factors Concepts of social and functional benefits
found in buying process is age old.

Gyi Huang, Vincent R Nijs, Karsten Hansen, Eric T Anderson (2016) : Little is known,
however, about Wal-Mart's influence on suppliers' performance. Manufacturers suggest that
Wal-Mart uses its power to squeeze their profits. In this article, the authors study the
validity of this claim. They investigate the underlying mechanisms that may cause changes
in manufacturer profits following Wal-Mart market entry. The data contain information on
supplier interactions with retail stores, including Wal-Mart, for a period of five years. They
find that postentry supplier profits increased by 18% on average, whereas profits derived
from incumbent retailers decreased only marginallyWalmart‘s impact on supplier profit.
Ingrid Moonsa & Patrick De Pelsmackreb (2016) :The authors have stated that emotions
and the attitude towards the electric car are the strongest determinants of usage intention,
followed by the subjective norm. Reflective emotions towards car driving and perceived
behavioural control factors also play a significant role. Differences in the relative
importance of the determinants of usage intention between subgroups based on
environmental concern and behaviour and social values are also studied. In general, people
in segments that are more inclined to use the electric car are less driven by emotions
towards the electric car and more by reflective emotions towards car driving, and take more
perceived behavioural concerns into account..

James F Devlin (2017) : Evaluative Cues & services : The purpose of this paper is to
provide an insight into the use of evaluative cues by consumers in a services context. In
particular, the paper investigates the extent to which consumers' familiarity and
objective/subjective expertise affect the degree to which functional and non-functional cues
are used in evaluating investment products. The methodology for the study is quantitative,
involving a random telephone sample of 1002 respondents broadly representative of the UK
population.

Jan Benedict EM Steenkampf, Herald J van Herdee, Inge Geinskins (2010) : The
growing sales of private labels (PLs) pose significant challenges for national brands (NBs)
around the world. A major question is whether consumers continue to be willing to pay a
price premium for NBs over PLs. Using consumer survey data from 22,623 respondents
from 23 countries in Asia, Europe, and the Americas across, on average, 63 consumer
packaged goods categories per country, this article studies how marketing and
manufacturing factors affect the price premium a consumer is willing to pay.

JesperH Neilsen, Stewart A Shapiro, Charlotte H Mason (2018) : In this article, the
authors demonstrate that certain semantic characteristics of nonfocal advertising elements
may similarly attract attention when consumers are focused on a primary task elsewhere in
the visual field. In three experiments, the authors investigate how orienting attention
responses to highly emotional advertising elements influence ad and brand awareness in
cluttered environments.

Jie Zhang, Els Breugelmans (2019) : The authors conduct an empirical investigation of a
new retail loyalty program (LP), called an item-based loyalty program (IBLP), in which
price discounts are replaced by reward point promotions that need to be accumulated and
redeemed later. The main objective is to examine its impact on various aspects of consumer
purchase behavior and a retailer's sales revenue. They find that after a retailer switched
from a conventional LP to the IBLP, consumers became more responsive to reward point
promotions than to price discounts of the same monetary value, were no longer responsive
to competitors' reward point promotions, and exhibited stronger cumulative reward point
effects. in addition, the new LP had a significantly different impact on ―current‖ LP
members and nonmembers (defined by their status right before the switch), resulting in
decreased (increased) total spending by the former (latter) group, under the retailer's current
promotion .
Ji Hoon Jhang, Susan Jung Grant, Margaret C Campbell (2018) : The current research
addresses the challenge faced by new products that are extremely different from existing
offerings by drawing on theory regarding the evaluation of schema incongruity. The authors
posit that consumers' acceptance of extremely incongruent products will increase when
firms use strategies that facilitate cognitive flexibility and thus the likelihood that
consumers will be able to make sense of the same.

Kelly Goldsmith, On Amir (2017) : Many consumer promotions involve uncertainty (e.g.,
purchase incentives offering the chance to receive one of several rewards). Despite retailers'
heavy reliance on such promotions, much academic research on uncertainty has
demonstrated examples of consumers avoiding and/or disliking uncertainty, implying that
promotions involving uncertainty may not be as effective for retailers as promotions
offering certain rewards. In an effort to reconcile the prevalence of uncertain promotions
with the existing research, this article explores the conditions under which uncertain
promotions may be effective for retailers. The article concludes with a discussion of the
theoretical and practical implications for these findings.
Kunter Gunasti, William T Ross, (2018) : This research develops a taxonomy of
alphanumeric brand names (ABs) based on the alignment between the brand names and
their links to products and attributes. Five empirical studies reveal that ABs have systematic
effects on consumers' product choices, moderated by consumers' need for cognition, the
availability of product attribute information, and the taxonomic category of the AB. In an
identical choice set, the choice share of a product option whose brand name takes a higher
versus lower numeric portion (e.g., X-200 versus X-100) increases, and it is preferred more
even when it is objectively inferior to other choice alternatives .

Laura Salciuviene, Pervez N Ghauri, Ruth Salomea Streder, & Claudio D Matos
(2018) : This study examines the effects of brand names in a foreign language, country of
origin, and the incongruence between the two on brand perceptions of services. Employing
congruity and categorisation theory as a theoretical foundation, this study empirically tests a
number of hypotheses. The findings suggest that services with a French brand name are
perceived as more hedonic.

Maciej Szymanowski, ElsGijsbrechts (2018) : The authors investigate whether consumers

generalize knowledge from product experience across PLs of different retail chains and
whether such cross-brand learning depends on the PL brands' link with the chain name or
on their quality differences. The proposed brand choice model captures cross-brand learning
through quality perception spillovers (consumers adjust beliefs about PL quality on the
basis of consumption experience) and familiarity spillovers (uncertainty about a PL
diminishes with rival PL consumption)

Marco Bertini, Luc Wathieu, Sheena S Iyengar (2019) : The authors propose that a
crowded product space motivates consumers to better discriminate between options of
different quality. Specifically, this article reports evidence from three controlled
experiments and one natural experiment that people are prepared to pay more for high-
quality products and less for low-quality products when they are considered in the context
of a dense, as opposed to a sparse, set of alternatives. To explain this effect, the authors
argue that consumers uncertain about the importance of quality learn from observing market
outcomes.

Michael K Brady, Clay M Voorhees, Michael J Brusco (2012) : This research is the first
to examine service sweethearting, an illicit behavior that costs firms billions of dollars
annually in lost revenues. Sweethearting occurs when frontline workers give unauthorized
free or discounted goods and services to customer conspirators.

Nevena T Koukova, Kannan PK, Amna Kirmani (2017) : The authors investigate the
impact of usage situations, relative attribute quality levels of the formats and their
interactions on the perception of the formats as perfect or imperfect substitutes or
complements, and the purchase likelihood of the bundle of formats. The study demonstrates
that when formats have equivalent quality on a salient attribute, consumers perceive the
formats as more complementary and are more likely to buy the bundle. This happens
because consumers consider more usage situations for the formats and view the bundle as
providing greater flexibility for future usages.

Phil Megicks, Juliet Memery & Robert J Angell (2014) : Analysing shopping in the local
food sector is an area of contemporary consumer research that has received considerable
interest in recent times. The significance of the topic relates not only to underlying
consumer behaviour theory, but also to the perceived role of local food in environmentally
responsible purchasing practices, and consequently sustainable food policies. However,
previous empirical investigation of local food buying behaviour is limited, and this research
extends current work through adopting a mixed methods approach that comprised
qualitative focus groups with an online survey of consumers. Multivariate analysis
techniques were utilised to identify a set of drivers of and inhibitors to local food buying.

Philip Crowther & Leah Donlan (2011) : This paper provides a new conceptual
contribution to our understanding of the value of events, examining their potential through
the lens of service dominant logic. Through a conceptual analysis and discussion,
augmented by a small-scale and exploratory empirical study using semi-structured
interviews, it evaluates the growing resonance of events in modern-day marketing.

Philipp Schmitt, Berndt Skeira, Christophe Van Den Bulte (2019) : Referral programs
have become a popular way to acquire customers. Yet there is no evidence to date that
customers acquired through such programs are more valuable than other customers. The
authors address this gap and investigate the extent to which referred customers are more
profitable and more loyal.

Pradeep Racheria, Munir Mandviwalla, & Daniel J Connolly(2018) : In this study, we

apply the uncertainty reduction theory from communication to delineate the antecedents of
consumers' trust in online product reviews. We test the competing effects of information
content (argument quality) and social component (perceived background similarity) on
consumers' trust in reviews.

Rajani Kambhoj (2016) : The case examines a detailed account of Nestlé's promotion and
advertising strategies for creating a noodles market from scratch. This case looks at the
various phases in the product life cycle of Maggi noodles in India. It talks about the various
measures taken by NIL to keep the Maggi brand fresh in the minds of the Indian consumers
and reposition Maggi as a ‗Health product'.

Ravi Dhar, Klaus Wertenbroch (2018) : The authors propose that temptation entails not
only costs but also benefits for consumers. These arise from self-signaling effects of how
consumers handle tempting choice options. Succumbing to temptation is a (costly) self-
signal of weak willpower, whereas resisting temptation is a (beneficial) self-signal of strong
willpower. Five experiments demonstrate that these self-signaling costs and benefits of
temptation depend not only on the chosen item but also on the temptation from the
nonchosen options.

Rebecca J Slotegraff, Kwaku Atuahene Gima (2019) : Innovation scholars have long
touted the value of cross-functional teams, and though firms have embraced a cross-
functional design in their new product development (NPD) teams, these teams continue to
face challenges. the authors develop a process-based model that examines the extent to
which stability influences certain decisionmaking processes, which in turn influence new
product advantage.

Ruth Rettie, Kevin Burchell, & Debra Riley (2017) : This paper develops a new
approach to sustainability marketing: repositioning activities as normal, or not normal, to
encourage the adoption of more sustainable consumer practices. The paper is grounded in
theories of social normalisation, conformity, and social practice theory. Previous qualitative
work by the authors suggests that some sustainable behaviours are not adopted because they
are perceived to be not normal, and that some unsustainable behaviours persist because they
are seen as normal.

Sanjay Puligadda, William T Ross, Rajdeep Grewal (2016): This research uses schema
theory to build the theoretical groundwork for brand schematicity and reports seven studies
conducted to measure, validate, and establish the nature of the construct. Studies 1 and 2
pertain to a scale developed to measure brand schematicity, Study 3 measures the construct
using response times, and Study 4 situates the construct in a nomological network of
associated constructs. Studies 5 and 6 test the predictive validity of the brand schematicity
construct, and Study 7 uses memory clustering to provide evidence of the schematic nature
of the construct that represents an inherent difference in the way consumers organize and
utilize brand information.

Stephanie Slater & Mirella Yani – de- Soriano (2019) : The paper presents a critical
review of the main studies in cross-cultural consumer behaviour and marketing research,
and identifies the methodological issues that frequently undermine the quality of research in
this area. The paper offers suggestions for addressing these issues, which are becoming
even more complex due to growing Internet-based marketing research and increasingly
multicultural societies.
Svetlana Bogomolova & Olga Grudinina (2018) : Research on brand switching has
indicated that consumers switch for a variety of reasons, including ‗other‘, ‗personal‘, or
‗consumer-driven‘. While these ‗uncontrollable‘ reasons cause substantial customer loss,
they rarely get into marketers' focus, and often considered outside the range. In 39 in-depth
interviews, researchers qualitatively explore consumers' entire lifetime of brand experiences
with all brands in six product categories.

Thomas. T. Thomas (2019) : Rural India is still a mystery, with perspectives varying with
the researchers. The large share of population residing in these areas with diverse cultures,
aspirations and needs make it a challenging proposition for both academics and
industrialists. This paper looks at the scenario and explores opportunities for the corporates
to take advantage of a market that holds almost three-fourths of all Indians.

Tom Meyvis, Kelly Goldsmith, Ravi Dhar (2011) : The authors propose that the relative
importance of these two factors is influenced by two key features of a typical shopping
environment: the presence of visual information and the availability of comparison brands.
In particular, the authors demonstrate that adding pictures and enabling brand comparisons
shift consumers' preference from extensions of better-fitting brands to extensions of higher-
quality brands. The authors propose that this occurs because pictures and brand
comparisons create a more concrete representation of the extension, which in turn increases
the importance of parent brand quality relative to brand–extension fit. They provide support
for this underlying mechanism and discuss the practical implications of their findings.

Xueming Luo, Christian Homburg, Jan Weisike (2010) : Although managers are
interested in the financial value of customers and researchers have pointed out the
importance of stock analysts who advise investors, no studies to date have explored the
implications of customer satisfaction for analyst stock recommendations. Using a large-
scale longitudinal data set, the authors find that positive changes in customer satisfaction
not only improve analyst recommendations but also lower dispersion in those
recommendations for the firm.
Zheyin Gu, Sha Yang (2013) : The authors propose a modeling framework composed of a
demand-side model and a supply-side model. The empirical results suggest that quantity-
discountinduced gains or losses have a significant impact on consumer buying behavior.
The authors also find a substantial amount of structural heterogeneity; that is, some
consumers perceive quantity discounts as gains, whereas others perceive quantity discounts
as losses. Conversely, the supply-side analysis suggests that manufacturers in the empirical
application do not consider quantity-discount effects

CHAPTER – 3
 RESEARCH METHODOLOGY

3.1 OBJECTIVES OF THE STUDY

1. To study the growth and development of Nestle.

2. To study in detail the preference of consumers of India towards’ Nestle.

3. To examine the perception of customers on Nestle in India.

4. To examine the level of customer satisfaction of Nestle in India.

5. To evaluate the effectiveness of Nestle in India.

6. To offer suitable suggestions for the effective functioning of Nestle in India.

Research Methodology :

The research was conducted an to March2020. There search includes meeting with the
Retailers and consumers. It included preparation of the questionnaire to be answered by

People for knowing the competitive position of Nestle in the Market. The view of the

Customers were recorded in the questionnaire set by us.

Research Approach:

 To know the relationship of sales with the advertisement.

 To know awareness of people towards Nestle.

 To know which advertisement tool is mostly preferred by people.

 To know the preference of Nestle in comparison with other competitive

brands.

 To know the factors which affects the consumer buying behaviour to purchase of

Nestle products.

Limitations of the Research:

 There is Financial Constraint i.e. traveling cost, administrating questionnaire etc.

 To know the consumer psyche and their behaviour towards Nestle.

 Time frame was not enough to survey more number of outlets.

 Retailers did not come up with true response in case of less educated persons.

Sources of Data:

Primary Sources:

The Primary data was collected through questionnaires. They were filled using the

Proper method through the customers from shops and general stores.
Secondary Data:

Secondary data is the data which is borrowed from the secondary sources by the

researcher. The secondary data is only used for collecting information regarding the

samples; they were not used for analysis.

Analysis Techniques:

Quantitative analysis is performed using the data collected at each out let to estimate

the presence of Nestle. Tools utilized-

 Percentage analysis
 Graph Chart

Sampling:

1. Sampling Technique: Non probability Sampling

2. Sample Unit: People who buy Dairy products in the shops.

3. Sample size: 40

4. Method: Direct interview through questionnaire.

5. Scale: Limited to shops and general stores

 CHAPTER – 4

ANALYSIS AND INTERPRETATION OF DATA

4.1 DATA ANALYSIS AND INTERPRETATION

The collected data were not easily understandable so I would like to analyse the collected data in
a systematic manner and interpreted with simple method.

The analysis and interpretation of data involves the analyzing of the collected data and
interpretation it with pictorial representation such as bar graph, pie chart etc.

Q 1. Have you heard about Nestle?

a) Yes

b) No
Interpretation : The above diagram show that 96% people know about Nestle and 4% of people
don’t know about Nestle. So, it is concluded that the maximum number of the people know
about Nestle

Q 2. How do you see Nestle Company as?

a) Baby food Company

b) Cereals Company

c) Coffee Company

FIG 4.1
d) Chocolates Company

Interpretation : The above diagram show that 32% of people see Nestle as Coffee Company, 32%
of people see Nestle as Chocolate Company, 20% of people see Nestle as Cereals Company and
16% of people see Nestle as Baby food Company. So, it is concluded that maximum and equal
number of people see Nestle as Coffee Company as well as a Chocolate Company.

Q3. Do you like Nestle?

a) Yes, very much

b) Yes, somewhat
c) No, rather not

d) No, not at all

Interpretation : The above diagram show that 48% of people like Nestle very much, 44% of
people somewhat like Nestle, 8% of people rather not like Nestle and 0% of people don’t like
Nestle at all. So, it is concluded that maximum number of people like Nestle Company.

Q4. Which chocolate do you prefer the most?

a) Cadbury

b) KitKat
c) Munch

d) Cadbury Silk

Interpretation : The above diagram show that 40% of people prefer KitKat, 24% of people
prefer Cadbury Silk, 20% of people prefer Cadbury and 16% of people prefer Munch . So, it is
concluded that maximum number of people prefer KitKat.

Q5. What do you like Maggi or Top Ramen?

a) Maggi
b) Top Ramen

Interpretation : The above diagram show that 76% of people like Maggi, 24% of people like
Top Ramen. So, it is concluded that maximum number of people like Maggi.

Q6. Which mode of advertisement influence you most to buy a particular product?

a) Television
b) Radio

c) Magazines

d) Others

FIG 4.6

Interpretation : The above diagram show that 64% of people gets influenced by Television,
24% of people gets influenced by Other means, 8% of people gets influenced by Radio and 4%
of people gets influenced by Magazine. So, it is concluded that maximum number of people gets
influenced by Television to buy a particular product.

Q7. Have you purchased products from Nestle or its subsidiaries in the last four weeks?

a) Yes
b) Don’t Know, probably yes

c) Don’t Know, probably no

d) No

Interpretation : The above diagram show that 36% of people purchased product from Nestle or
its subsidiaries, 28% of people probably purchased product from Nestle or its subsidiaries, 20%
of people probably not purchased product from Nestle or its subsidiaries and 16% of people not
purchased product from Nestle or its subsidiaries. So, it is concluded that maximum number of
people purchased product from Nestle or its subsidiaries.

Q8. Which of the following reasons would you purchase Nestle products for?
a) Quality

b) Price

c) Image

d) Selection

e) I do not buy anything from Nestle

Interpretation : The above diagram show that 56% of people prefer Quality, 16% of people
prefer Price, 16% of people prefer Image, 8% of people prefer Selection and 4% do not buy
anything from Nestle. So, it is concluded that maximum number of people prefer Quality.
Q9. How many brands of Nestle do you know?

a) 1-3

b) 4-5

c) 6-10

d) 11-20

e) 21-50

f) more than 50
Interpretation : The above diagram show that 32% of people know11-20 Brands, 24% of people
know 4-5 Brands, 12% of people know 1-3, 6-10, 21-50 Brands, 8% of people know more than
50 Brands. So, it is concluded that maximum number of people know 11-20 Brands.

Q10. Does the company's image play a role in your purchase decision?

a) Yes, very much

b) Yes, somewhat

c) No, rather not

d) No, not at all

FIG 4.9
 FIG 4.10

Interpretation : The above diagram show that 64% of people prefer Company’s Image very
much, 32% of people somewhat prefer Company’s Image, 4% of people rather not prefer
Company’s Image and 0% of people don’t prefer Company’s Image at all. So, it is concluded
that maximum number of people prefer Company’s role.
 CHAPTER-5
FINDINGS AND SUGGESTIONS

5.1 FINDINGS AND SUGGESTIONS

1. The overall data across the background characteristic categories show that across the
background categories the preference for Nestle chocolate and milk products is better than
Cadbury.

2. Most respondents would purchase both Chocolate and Milk products of Nestle for its
Quality.
3. It can be seen that more percentage of respondents has seen the advertisement of Nestle
products.

4. Nestle company has been using the promotion media to enhance the reading of their message
to the target audience.

5. The overall effectiveness of the Nestle products has been rated higher than that of Cadbury
products.

6. It is observed that for Chocolate and Milk products of Nestle, most of the respondents take
festive season or mood and Word of mouth communication respectively as more important
factors affecting their buying individually.

7. It can be seen that across all the predefined background characteristic categories, more
percentage of respondents are satisfied with the availability of quantities or Size of Milk
products and Chocolate of Nestle.

8. It can be observed that most percentage of respondents are satisfied by the packaging of
Chocolate and Milk products of Nestle.

9. It is seen that most of the respondents believe that they have not been disappointed by any
brand of Nestle.

10. Traditional sweets can and do easily override customer purchase of Chocolate and Milk
products.

11. It can be seen that most respondents would contact the dealer for resolving their complaints
for Nestle products.

12. It is seen that most percentage of dealers are satisfied with Nestle as far as the follow-up of
the order is concerned.

13. Respondents generate the awareness from advertisement sources like Newspaper, Magazine,
Television, Hoardings and Internet for Chocolate and Milk product of Nestle.

14. Respondents seem to be more satisfied with Nestle packaging for Chocolate and Milk
products.
15. Respondents believe that Nestle products available in India are different from that available
in foreign countries.

16. Respondents believe that the Nestle products are more easily available.
 CHAPTER-6

CONCLUSION

6.1 CONCLUSION

• From my study I would like conclude that Nestle India has been working in India from more
than 100 years and by each day its growing drastically and the time is not far when it may become
the biggest FMCG Company of India.
• Despite of many controversy and ban on Maggi Nestle India is trying to get into the market at very
fast speed and is once again able to regain trust of its customer.

• Nestle India has always worked first for their customer by providing them quality product and by
maintaining the trust there customer have in them and that is the reason why more and more have been
associated to Nestle India and is growing everyday.

• Nestle also keep in mind the golden rule of business which is profit thats why in 2015 it had a
whooping profit of n14.5 billion rupees from the net sales of 91.6 billion rupees in the year 2015.

STRENGTHS

Available Assortment

Distribution network

Packaging

Satisfied customers

Overall attractiveness of Cadbury products

Being better able to reap the benefits of the festive seasons or mood

Effective brand ambassadors

Overall more demand & Preference among the dealers

Strong follow-up of order system

Effective advertisements

WEAKNESSES

Disappointment of the customers at times

Unawareness of the customers about the existence of the customer complaint handling system
Less attractive packaging

Less attractive window display or point of purchase

Ineffective advertisement and use of brand ambassador

OPPORTUNITIES

Festive seasons and Cultural beliefs and attitudes of people in India

Use of non-conventional modes of promotion or communication like ecommunication through

Internet

Scope of making advertisements effective and interesting and using effective brand ambassadors

Developing better products

Expanding market by entering into diverse areas in production line of food and beverages like;
soft drinks

Development of a sound customer oriented complaint handling system

THREATS

Overall high preference of customers for Cadbury products

Competition from the other products in the same category like; Pastries and Sweets as well as
other confectionaries

Competition form the major giants like Cadbury and many others

Strong brand image of Cadbury products

FUTURE SCOPE

Based on Nestlé India Limited’s (NSEI:NESTLEIND) earnings update in December 2017, the
consensus outlook from analysts appear fairly confident, as a 21.90% increase in profits is
expected in the upcoming year, relative to the past 5-year average growth rate of -1.02%. By
2019, we can expect Nestlé India’s bottom line to reach ₹14,935.3M, a jump from the current
₹12,251.9M. I will provide a brief commentary around the figures and analyst expectations in
the near term. Readers that are interested in understanding the company beyond these figures
should research its fundamentals here.

How will Nestlé India perform in the near future?

Over the next three years, it seems the consensus view of the 23 analysts covering NESTLEIND
is skewed towards the positive sentiment. Broker analysts tend to forecast up to three years ahead
due to a lack of clarity around the business trajectory beyond this. To understand the overall
trajectory of NESTLEIND’s earnings growth over these next fews years, I’ve fitted a line
through these analyst earnings forecast to determine an annual growth rate from the
slope.NSEI:NESTLEIND Future Profit Feb 23rd 18This results in an annual growth rate of
16.50% based on the most recent earnings level of ₹12,251.9M to the final forecast of
₹20,629.1M by 2021. EPS reaches ₹213.98 in the final year of forecast compared to the current
₹127.07 EPS today. The main reason for growth is a result of cost cutting activities, as revenues
is expected to grow much slower than earnings. With a current profit margin of 12.24%, this
movement will result in a margin of 14.65% by 2021.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For
Nestlé India, I’ve put together three relevant factors you should look at:

1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet
analysis with six simple checks on key factors like leverage and risk.

2. Valuation: What is Nestlé India worth today? Is the stock undervalued, even when its growth
outlook is factored into its intrinsic value? The intrinsic value infographic in our free research
report helps visualize whether Nestlé India is currently mispriced by the market.

3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding
instead of Nestlé India? Explore our interactive list of stocks with large growth potential to get
an idea of what else is out there you may be missing!
 CHAPTER – 6

BIBLIOGRAPHY

6.1 BIBLIOGRAPHY

 La stratégie Nestlé (Nestlé Strategy), Helmut Maucher, French translation by Monique

Thiollet, Maxima Ed., Paris, 1995, ISBN 2840010720