MINOR PROJECT REPORT

On
“A STUDY ON MARKETING AND
ADVERTISING STRATEGIES OF NESTLE”

Submitted in partial fulfillment of the requirements for the

examination of MASTER OF BUSINESS
ADMINISTRATION

Submitted By - Poornima Chourasia

Course – MBA
Roll No. – 03715103921

Under The Guidance Of –

Dr. Gurpreet Kaur Chhabra
Associate Professor
Department of Management Studies

Management Education and Research Institute

Affiliated with
 (Guru Gobind Singh Indraprastha University, New Delhi)
(Second Semester – 2021-2023)

DECLARATION

I, the undersigned, hereby declare that the Minor Project Report entitled “Marketing and
Advertising Strategies of Nestle” is written and submitted by me in partial fulfillment of
the requirement for the award of the degree of Master of Business Administration under
the guidance of Dr. Gurpreet Kaur Chhabra. It is my original work and the conclusions
drawn therein are based on the material collected by myself.
I further declare that this report has not been submitted earlier to any other university or
institute for the award of any degree.

PLACE: NEW DELHI POORNIMA

CHOURASIA
DATE:

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 ACKNOWLEDGEMENT

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

I express my sincere thanks to my project guide Dr. Gurpreet Kaur Chhabra (Internal
Guide) for their generous support, constant direction and mentoring at all stages of project.

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

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

POORNIMA CHOURASIA

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 EXECUTIVE SUMMARY

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

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

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

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 CONTENTS

S. No. Title Page No.

1. Introduction 6-7
2. Objective of the Study 8
3. Scope of the Study 9
4. Literature Review 15-18
5. Company Profile and Marketing 19-38
Strategy
6. Research Methodology 39-40
7. Data Analysis 41-53
8. Findings 54
9. Conclusion & Recommendation 55
10. Limitations 56
11. Bibliography 57
12. ANNEXURE 58-60

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 INTRODUCTION

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

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

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

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imported and distributed by Nestle Malaysia are certified HALAL by authorized Islamic
certification bodies. Perhaps, the firm delivered shareholder value through the achievement
of sustainable and profitable long-term growth. It’s a wide area research the branding.
Branding strategy is corporate. Part of the branding strategy is the brand plan for each
product. This is an integrated strategy. The brands of Nestle are a key strength but the
executive levels are very aware today that brands alone are not enough to win.

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

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

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 OBJECTIVES OF THE STUDY

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

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

• To examine the effectiveness of advertising strategies of Nestle.

• To study the marketing mix of Nestle company.

• To analyse Nestle’s competitor and compare their strategies and come up with
recommendations for any problem being faced by it.

• To study the behaviour of the consumer with respect to attributes such as Brand
Loyalty and come up with recommendations as to what all needs to be considered
keeping the consumer in mind.

• To study the various age group customers targeting.

• To study the brand preferences of the customers.

• To study the various steps to reduce costs without affecting quality.

• To study the various promotional offers given by the Nestle company.

• To study the various factors affecting purchasing by the customers.

• To study about which media channel is more effective, by which more customers are
influenced and attracted.

• To know about the consumers’ brand loyalty towards the NESTLE company.

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 SCOPE OF THE STUDY

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

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

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

getting ready to the proverbial Indian Sweet tooth. An influx of world’s leading
Chocolate players is expected.

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

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

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

Marketing strategy:

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

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

Types of Marketing Strategy:

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

• General Marketing Strategies

• Decision Area Strategies

General Marketing Strategies:

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

• Market Expansion
• Market Share Growth
• Niche Market
• Status Quo
• Market Exit

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Decision Area Strategy:

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

• Target Market Strategy – employ segmenting techniques

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

Marketing Strategy Objectives:

• Increase product awareness among the target audience by 30 percent in one year.
• Inform target audience about features and benefits of our product and its
competitive advantage, leading to a 10 percent increase in sales in one year.
• Decrease or remove potential customers' resistance to buying our product, leading
to a 20 percent increase in sales that are closed in six months or less.

If you have multiple objectives, make sure they are consistent and not in conflict with
each other. Also, be sure that the remainder of your marketing plan components - the
marketing strategy, budget, action programs, controls and measures - supports your
marketing objectives.
Setting your marketing objectives and finalizing the remaining components of your
marketing plan may serve as a reality check: Do you have the resources necessary to
accomplish your objectives?

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

• Product - your product(s)and services

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

Limitations of Marketing Strategy:

• leads to faulty marketing decisions based on improperly analyzed data

• creates unrealistic financial projections if information is interpreted incorrectly

PRICING STRATEGY:

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

A SKIMMING STRATEGY: Where the offering has enough differentiation to

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

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A MARKET PENETRATION STRATEGY:

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

PROMOTION:

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

THE PUSH STRATEGY:

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

THE PULL STRATEGY:

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

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 COMPANY PROFILE

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

Typical characteristics of FMCG products are:

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

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

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

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

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

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

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fact, the industry is yet to crystallize in terms of definition and market size, among others.
The sector touches every aspect of human life, from looks to hygiene to palate. Perhaps,
defining an industry whose scope is so vast is not easy.

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

Nestle India:

Nestle India is a subsidiary of Nestle S.A. of Switzerland headed by Mr. Martial G. Rolland,
Chairman and Managing Director. With six factories and a large number of copackers,
Nestle India is a vibrant company that provides consumers in India with products of global
standards and is committed to long term sustainable growth and shareholder satisfaction. The
Company employs over 4500 people and for the full year 2005 Nestle India recorded net
sales of Rs. 20477 Mio.

Nestle has been a partner in India's growth for the past nine decades and has built a very
special relationship of trust and commitment with the people of India. The culture of
innovation and renovation within the company and access to the Nestle Group's proprietary
technology/ Brands, expertise and the extensive centralized Research and Development
facilities helps the company to create value that can be sustained over the long term. Nestle
India manufactures products of truly international quality under internationally famous Brand
names such as Nescafe, Cerelac, Maggi, Milky Bar, Milo, BarOne, Nestea and Kit Kat and in
the recent years the company has also introduced products of daily consumption and use such
as Nestle Milk, Nestle Dahi, Nestle Butter, Nestle Fruit 'n milk ready to drink beverage and
Nestle Pure Life bottled drinking water.

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Nestle India Ltd, 51% subsidiary of Nestle SA, is among the leading branded food player in
the country. It has a broad based presence in the foods sector with leading market shares in
instant coffee, infant foods, milk products and noodles. It has also strengthened its presence
in chocolates, confectioneries and other semi processed food products during the last few
years. The company has launched Dairy Products like UHT Milk, Butter and Curd and also
ventured into the mineral water segment in 2001. Nestle’s leading brands include Cerelac,
Nestum, Nescafe, Maggie, Kitkat, Munch and Pure Life.

PRODUCT

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

BABY FOODS

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

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Breast Milk Substitutes, and seeks dialogue and cooperation with the international health
community and in particular with the WHO and UNICEF, to identify problems and their
solution. Nestlé’s expertise as the world’s leading food manufacturer.

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

DAIRY BRANDS

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

BREAKFAST CEREALS

Although cereals have been with mankind in form or another for millennia, it was not until
the mid 19th century that scientific research, technological innovation and then influence of a

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group of American health reformers, gave rise to the currently foodstuff we know today as
breakfast cereal. Nestle' has a joint venture with General Mills outside North America,
Cereal Pardoners Worldwide, which is active in more than 80 countries. The joint venture
began in 1990 and its rapid growth has been characterized by branding and lately the
launching of breakfast cereal brands into the fast-growing cereal bar market.

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

CHOCOLATE & CONFECTIONARY

The story of chocolate began in the New World with the Mayans, who drank a dark brew
called cacahuaquchtl. Later, the Aztecs consumed chacahoua and used the cocoa bean for
currency. In 1523, they offered cocoa beans to Cortez, who introduced chocolate to the Old
world, where it swiftly became a favorite food among the rich and noble of Europe.
From the beginning, turning raw, bitter cocoa beans into what one 17 th century writer called
“the only true food of the gods” has been a fine art, a delicate mixture of alchemy and
science. Centuries ago it was discovered that by fermenting and roasting the beans, an almost
otherworldly flavor could be created. In 1875, after years of trying, a 31-year old candy
madder in Vevey named Daniel Peter figured out how to combine milk and cocoa powder.

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The result –milk chocolate. Peter, a friend and neighbor of Henri Nestlé’s started a company
that would quickly become the world’s leading maker of chocolate. For three decades the
company called Peter, Cailler, Kohler relied on Nestle for milk and marketing expertise. In
1929, the almost inevitable merger took place as Nestle’ acquired Peter, Cailler, and Kohler.
Indian chocolate market is growing day by day. Premium segment is opening upon. The
companies like Cadbury’s are launching indigenous product made to international standards
of the 20,000 tonnes chocolates market worth about Rs 400 crore, Cadbury’s accounts for
around 65% of market share followed by Nestlé’s around 23%. Amul has 5% of the share,
with the minor players taking the Rest. 5 STARS: As energy bar, earlier targeted to
teenager, before launch of perk 5 star energy bar positioning made it snacking chocolate with
Nestle' pitching Bar-one in 1993 gaian it “For those in between times”.
MUNCH: Munch is the market leader in the chocolates. It is the largest selling chocolate
in India & is followed by Cadbury’s Dairy Milk.
E’CLAIRS: competing in the chewable toffee segment, E’clairs was relaunched by
Cadbury’s during the mid-90 with a new name milk-e’clairs. Its worth is 4000 tones now.
Nestle' also presents here NESTLE' E’CLAIRS. Due to launch of multigrain’s Cadbury
can not pay attention to brands like Mr. Pop Candy Lollypop.
KIT-KAT: Kit- Kat which was launched in India in 1995, today leads the chocolate
coated wafer bars category. It has 11.5% share of chocolate market. But Cadbury’s perk
is with 9%.
Nestle' forayed into chocolate & confectionary in 1990 and has cornered a fourth share of the
chocolate market in the country. The category contributes 14% to Nestlé’s turnover. It has
expanded its products range to all segments of the market the Kit-Kat brand is the largest
selling chocolate brand in the world. Other brands include Milky Bar, Marbles, Crunch,
Nestle Rich Dark, Bar-one, Munch etc.

Amul is also competing in this category especially in western regions of India. But Nestle'
still has its own position in the market. The sugar confectionary portfolio consists of Polo,
Soothers and Frootos. All sugar confectionary products are sold under the umbrella brand
Allen’s. Nestle' has also markeys some of its imported brands like Quality Street, Lions and

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After Eight. New launches such as Nestle’ Choco Stick and Milky Bar Choo at attractive price
points to woo new consumers chocolate confectionary sales registered a strong 21.5% of
growth in 2005 aided by good volume growth in Munch, Kit-Kat and Classic sales. Nestle'
relaunched Bar-One during the year 1993.

PREPARED FOODS

Convenience foods—packaged soups, frozen meals, prepared souses and flavorings---date

back more than a century. With the industrial revolution came factory jobs for women and
less time to prepare meals. The problem was so widespread that it became the object of
intense study in 1882 by the Swiss Public Welfare Society, which offered a series of
recommendations, including an increase in the consumption of vegetables. The society
commissioned Julius Maggi, a miller with a reputation as an invention and capable
businessman, to create a vegetable food product that would be quick to prepare and easy to
digest. The results –two instant pea soups and an instant bean soup --- helped launch one of
the best known brands in the history of the food industry. By the turn of the century, Maggi
& Company was producing not only powdered soups, but bouillion cubes, sauces and
flavorings. Maggi merged with Nestle' in 1947.
Buitoni the authentic Italian brand, which has been producing pasta and sauces in Italy since
1827, became part of the Nestle' Group in 1988.
Ready to cook food/ cooking aids are sold under the umbrella brand name Maggie. Culinary
product account for about 14% of Nestlé’s turnover. Maggie is the market leader in the
noodles (45% market share), the Ketchup (43% market share) and soups (41% market share)
categories.
Other products sold under the umbrella brand Maggie, are ready-to-cook gravy/sauces,
soups, seasonings, as well as traditional Indian foods such as pickles and instant snack mixes
(dosa mixes). New taste variants are continuously launched to add variety to the product
offerings.
HLL, Heinz, Knor & Indo Nissin Foods are Major competitors in this category. Gits mixes,
Top Raman, Hot serve, are some products that are in competition to products under Maggie

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brand. But Maggie has used Quick and Easy cooking as its Unique Selling Preposition that
worked to distinguish the Nestle' to lie ahead than all brands. HLL as brand Wagon is the
part of our daily life uses creative selling prepositions to maintain its position as the top
FMCG firm in India. Its marketing strategies (including launch, pricing & distribution
strategy are good enough to shatter the competition, so Nestle' is working as an early worker
to remain and lead in the market. The distribution network of Indo Nissin food is strong
enough & it has covered a large portion of market in very short time. Its distribution network
is not very long & the prices are also low. The company had adopted a low budget
promotional strategy and is very fine at merchandising. These all are working together for
the good of the company. Nestle' has the advantage of great brand image & it is actually
working for maintenance and growing it.

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

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

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

Nesquik as well as host professional brands including Minor’s, Chief and Davigel are part

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

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

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supports our commitment to giving consumers the brands and quality they come to expect

and rely on in the home as well as out of the home.

BOTTLED WATER

Nestle' began its entry into the water business in 1969 with a 30% stake in the owners of the
Soci’e’te’ Ge’ne’le Des Mine’rale’s De Vittal. It acquired a controlling interest in SGEMV
in January 1992, and went on in May of the same year to buy the entire Perrier Group.
In 1992, Nestle' was the first company to dare to launch a mineral water, Valvert, in five
different countries at once. It’s originally lied in the use of an all-new plastic, P.E.T.
(Polyethylene teraphthalate), which is stronger and more elastic than the PVC used since
1968. Besides P.E.T. is recyclable.
By the end of 1997, the group was present on every continent, and the purchase of San
Pellegrino gave it the leadership in the Italian market. In 1998 f or the first time in its
history, Nestle' associated its name with bottled water: Nestle’ Pure Life.
The brand was launched in Pakistan and soon appeared in Brazil, followed by Argentina,
Thailand and Philippines, China and Mexico in 2000. in 2001 India, Jordan, and Lebanon
followed and in 2002, Egypt, Uzbekistan and then United States.
Nestle’ Pure Life is drinking water that has been treated and rematerialized using a
standardized industrial process to ensure purity and quality and is marketed in emerging
countries. A second product with the Nestle' name was launched in May 2000, this time in
six European countries: Nestle’ Aquarelle. A natural spring water currently from nine
different springs in France, Germany, Belgium, Hungry, Italy and Spain, Nestle' Aquarel also
uses the multi-source concept to satisfy new consumer expectations, especially for water
with a low mineral content that the whole family can drink. In April 2002, the group changed
its name to Nestle' Water’s, a token of Nestle' decisive commitment to the bottled water
market, which now represents 9% of its sales. Today, Nestle' Water’s is established in 130
countries and markets about 70 different brands. The group is able to offer top quality brands
ad innovative packaging to meet the individual needs of the water consumer all over the
world, whenever, wherever and however thanks to the wide variety of its offer in terms of
distribution and product mix.

28
PETCARE

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

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

29
their needs and expectations. Through listening and understanding we can make products
that they will want to use all through their lives.

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

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

EXHIBITIONS & TRADE SHOWS

It also participates in trade shows & exhibitions.
IN 1997, at Jawaharlal Nehru Stadium in an exhibition NIL displayed its all old and new
products. This was the time when MILO was launched in India.
AHARA 97, Here Nestle' India Ltd. presented its wonderful world of Nestlé’s recipes along
with its products. It also exhibited the various to make Maggie tastier. This shows that
Nestle' never leave its product even if it is market leader & is the good source of its revenue.
FOOD EXPO 98, organized by CII & attended by over 100000 people. The Mumbai branch
of NIL ensured high visibility for its products like products under Maggie brand, MILO &
chocolates by setting the venue ablaze with Nestlé’s hues Vic banners, umbrellas posters &
product displays.

30
INTERNATIONAL FOOD CONFEDERATION 1998: IFCON provided opportunity for
the leading, international food scientists, technologists & research institutes to reflect
massive change sweeping across the food processing sector.
FOOD EXPO 1999:
In October in Chicago NIL participated there also.
CHILDREN SPORT MEET 98:
At DPS R. K. Puram children between age group of 4-13 years put their best foot & arm
forward. Attired in colorful MILO T-Shirts & Caps they participated in 12 events.
FREE GIFTS
Like giving school Kit i.e., pen scale etc, with Maggie.noodles & chocolates, Free Cricket
bag or a sport watch, badminton racket, bag etc on the payment of a very minimal amount of
Rs. 10 with Milo.

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

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

31
emotional benefits and it really works for Cadbury’s and leaves it with dramatic increase in
sales.

PROMOTION

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

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

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

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

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

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

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

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

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

32
 DISTRIBUTION STRAGEGY

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

every nook & corner of the country.

HOW IS IT PROCEEDING?

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

and most approachable outlets are:

 A school & college canteen.

 Airport terminal.
 Cinema hall.
 Pan/cigarettes kiosks.
 Railway station/train vendors.

The company is looking to ensure that:

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

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

stock could be dumped and from where stock reaches almost all outlets in the country. The

whole seller channel could give us representation in outlets especially pan shops where they

are not present.

ROLE OF MAJOR PRODUCTS IN MAKING NIL A GRAND SUCCESS

Nestle' India Limited works a lot before launching a product. It does a lot of test marketing &
other marketing efforts for making its product & thus a company a grand success. Nestle'
believes in renting mind space by creating perception for the brand in the prospects mind so
that it stands apart from the competing brand & approximates much more closely to what the

33
customer wants. It covers that space in the customer’s mind as if they have won a long term
lease and always keep out ‘squatters’. The market conditions before & after the launch of
some major brands of Nestle' are given as under.

MAGGIE NOODLES

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

Maggie noodles were launched in Delhi in January 1983 and it became an overnight success.
The annual target for that market was increased from 50 tones to 600 tones. The Indian
market was tipped to became the second largest Nestle' market for this product worldwide,
next only to Malaysia. Maggie Noodles, as market results show, found a vacant, strong
position and sat on it as “TASTE TO COOK, GOOD TO EAT” any time snack.

RICH SOUPS (1989): traditionally at home the soup was made from Boiled vegetables &
was used as filler. Maggie soups were convenient, healthy, tasty & notorious. In first half of
the decade the soup market of Maggie grew up to 2500 tones, a large enough size to attract
competition in a short time & in 1995 competition sets in. The company’s market research
team gets the latest information regarding the changing taste and preferences, and suggested

34
steps to improve the product. Aggressive consumer benefit strategy propelled the market, to
touch the 500 tones in subsequent 2-3 years.

MILK MAID

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

“Looks beyond the Product at the Customer & Use Knowledge to Repositioning the
Brand”
Five important rules for a successful repositioning:
Renovation
Innovation
Customer communication
Product must be a low cost & highly efficient operator
Product availability: wherever, whenever & however.
Some time later milkmaid was positioned as “Tastiest milk maid”.

The concept was that you can get 1.6 liters of sweetened milk by adding water in that
condensed milk. This positioned was visualized as it had relevance at a time when fresh milk
was in short supply in some parts of India. Once again, we saw Milkmaid in yet another
position as a topper on fruits, cakes, jelly etc. and then last time through a natural evolution-
backed by consumer research & sound marketing judgment - we saw Milkmaid’s Present
position: Milk maid for desert Recipes. In due course, the packaging was smartened up &

35
changed to reflect the ‘recipe’ on culinary products; the label depicts a desert, gives the
recipe on the reverse side & announces a ‘free recipe booklet’. From the time of the dessert
recipe positioning (1982), milkmaid achieved a sales volume increase of 116% by 1988.
Sales growth has been relatively steady tear after year (an average growth about of 20%
annually), suggesting that more households are responding to this position. It is significant
that even in traditional milk shortage areas, Milk maid usage now is largely in line with the
culinary (dessert) positioning. This implies that housewives, who may have earlier perceived
Milkmaid as a substitute for milk, have now given it a different place in their “frame of
reference”. Recently Nestle Has Launched Milkmaid in a easy squeeze tubes which is
attracting children also. Positioning above all, is a matter of the perception of your brand that
we wish to do the product and more what we do to the product and more what we do to the
consumer’s perception of the product.

NESCAFE (1918-1938)

After the end of world war 1st their were crises for Nestlé’s Government contracts dried up
following the hostilities, and the civilian consumer, who had grown accustomed to
condensed & powdered milk during the War switched back to fresh milk when it became
available again. In 1921 company recorded its 1st loss. Nestle management responded quickly
and brought in Swiss Banking export, Louis Dapples to recognize the company. He
streamlined the operations to bring production in line with sales and reduce the company’s
outstanding debt. The manufacturing of chocolates became the company’s second most
important activity. New products appeared steadily:
Malted milk
Milo
Powdered butter milk for infants

36
Nescafe (1938)

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

RECENTLY LAUNCHED PRODUCTS

 Set Dahi
 New Tomato and Curry Flavors in Maggie Noodles.
 New Dal and Atta in Maggie Noodles
 A new confectionery – Nestle Choco Stick
 Soft Chewy fudge Milky bar Chocolate
 Nestle recently launched products Tea Iced Tea
 Nestle slim milk
The company is also setting up ‘CAFÉ NESCAFE’ and ‘COFFEE CORNERS’ across
metros and mini-metros in India.

NESTLÉ: 4.6% ORGANIC GROWTH IN FIRST QUARTER

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

37
The overall organic growth of 4.6% in a difficult quarter, aggravated by late Easter, is mainly
due to our successful drive for innovation and our strong market positions. Our consolidated
sales clearly took a hit from the strong Swiss franc, but we expect this effect to taper off in
the course of the year. “We are confident that the rest of the year will bring an acceleration of
growth and that we will therefore achieve our stated objective of improving the Group's
performance in constant currencies for 2006." The Nestlé Group's consolidated sales for the
first three months of 2006 amounted to CHF 19.7 billion. In constant currencies, sales
increased by 6.3%, reflecting organic growth of 4.6% (real internal growth 2.5%, pricing and
others 2.1%), as well as a small contribution from acquisitions, net of divestitures. As a result
of the strong Swiss franc, the adverse foreign exchange effect was 13.8%. Foreign exchange
factor held back consolidated sales, and real internal growth was impacted by the late Easter
date and the competitive situation in Japan. Additionally, in keeping with the Group's policy
of ensuring margin improvements, Nestlé raised prices in several product categories to
reflect cost increases. Nevertheless, the Group expects its strong brands, its broad
distribution network and its capacity for innovation to lead to an improvement in sales
growth as the year goes on.

38
 RESEARCH METHODOLOGY

It is a systematic approach of identifying the problem, collecting the information, analyzing

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

1. Defining the problem and research objective

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

2. Developing research plan

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

3. Collection and Sources of Data

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

• Primary Data

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

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

 Questionnaire

39
  Face-to-Face Interview

 Observation

 Discussion

4. Sampling Plan

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

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

5. Analyze the collected information: This involves converting raw material in to

useful information. It involves tabulation of data and using statically measures on them
for developing frequency distribution and calculating the averages and dispersions.

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

40
 DATA ANALYSIS AND INTERPRETATION

Various age group customers targeting

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

CUSTOMERS 14 42 33 11

ABOVE 30 0-10
11 % 14 %

20-30
33 %

10-20
42 %

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

41
PREFERENCE ACCORDING TO AGE GROUPS

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

42
BRAND PREFERENCE
BRANDS PREFERENCE BY CONSUMERS

CADBURY 40
NESTLE 22

PARLE 30

OTHERS 08

others
8%

Cadbury
parle 40%
30%

Nestle
22%

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

43
PRODUCT PRODUCED BY NESTLE
NESTLE PRODUCT

BABY FOOD 22

CHOCOLATE 23
BEVERAGES
15
BOTTLED WATER
15

MILK 25

Nestle chocolates purchased by People

MILK BABY FOODS

25% 22%

BOTTELLED
WATER CHOCLATE
15% 23%

BEVERAGES
15%

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

44
Business or market affected by business cycles or seasons
100

80

60
3-D Column 1
40

20

0
yes no
According to this diagram we found that 5% people said yes and 95% people said no for
this question.

Competitive price changes anticipated in the near future.

70
60
people
50
40
30
20
10
0
no yes can't say

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

45
INFLUENCING FACTORS DURING PURCHASE

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

46
FACTORS GIVING MOST SATISFACTION TO CONSUMERS

FLAVOR/
FLAVOR/
TASTE
PRICE
QUALITY

QUANTITY TASTE
9% 12%

SHAPE PRICE PACKAGING

10% 10% FORM
BRAND
COLOR
IMAGE
10% QUALITY
COLOR
11%
SHAPE
IMAGE
QUANTITY
9%
PACKAGING
BRA
ND FORM 10% 10% 10%
According to the above analysis it is concluded that on an average people are most
satisfied with the flavor/taste of a product followed by quality and brand. It is surprising
to know that although people are satisfied with quality but unsatisfied with the quantity.

47
Steps to reduce costs without affecting quality
FORM OF STRATEGY NUMBER OF RESONDENTS

Personal selling 33

utilization of resources 25

remove intermediaries 29

Others. 20

Others
20% personal
selling
33%

remove
intermediari
es
22%
utilization of
resourses
25 %

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

48
PROMOTIONAL OFFERS

PROMOTIONAL OFFERS NUMBER OF RESPONDENTS

FREE GIFTS 35

DEMONSTRATION 20

DECREASE PRICE 25

ANY OTHER 20

Effect of Promotional Offers While Purchase

ANY OTHER
20%
FREE GIFTS
35%

DECREASE
PRICE
25%
DEMONSTR
ATION
20%

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

49
FACTORS AFFECTING PURCHASE

FACTORS NUMBER OF
RESPONDENTS

ADVERTISEMENT 65

SUGGESTION FROM FRIENDS AND RELATIVES 16

ATTRACTIVE DISPLAY 11

DOCTORS ADVICE 15

BRAND AMBASSADORS 9

INGREDIENTS 25

Factors Affecting Purchase

INGREDIENTS
18%

BRAND
AMBASSADOR
ADVERTISEME
S
NT
6%
46%
DOCTORS
ADVICE
11%

ATTRACTIVE
DISPLAY SUGGESTION
8% FROM FRIENDS
AND
RELATIVES
11%

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

50
MEDIA OF ADVERTISEMENT

MEDIA OF ADVERTISEMENT NUMBER OF RESPONDENTS

TELEVISION 82

NEWSPAPERS 7

BROCHURES 3

HOARDING 4

DISPLAY 15

Media of Advertisement influencing the Purchase

INGREDIENTS
18%

DISPLAY
11%

HOARDING TELEVISION
3% 61%

BROCHURES
2%

NEWSPAPERS
5%

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

51
CONSUMER’S BRAND LOYALTY

BRAND LOYALTY ACTIONS NUMBER OF RESPONDENTS

POSTPONE YOUR PURCHASE 26

SWITCH OVER TO OTHER BRANDS 24

GO TO OTHER SHOP FOR SEARCH 45

OF PREFERED BRAND

Brand Loyalty

POSTPONE YOUR
PURCHASE
27%
GO TO OTHER
SHOP FOR
SEARCH OF
PREFERED
BRAND
48%

SWITCH OVER TO
OTHER BRANDS
25%

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

52
REACTION OF CONSUMERS IF NEW BRAND IS INTRODUCED
SHIFT TO NEW BRAND OF THE NUMBER OF RESPONDENTS
PREFERED PRODUCT

NO, NOT AT ALL 35

MAY CONSIDER 27

NO, SHALL NOT 4

CAN’T SAY 29

REACTION OF CONSUMERS IF NEW BRAND IS

INTRODUCED

CAN’T SAY
31% NO, NOT AT ALL
37%

NO, SHALL NOT

4%

MAY CONSIDER
28%

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

53
 FINDINGS

1.) Due to sluggishness in a FMCG market, most of the companies are under pressure to
maintain volume & market share. NIL should draw out an action plan to improve
sales through new product launches.
2.) The market strategy of the firm is a complete and unbeatable plan or an instrument
designed specially for attaining the marketing objective of company.
3.) The formulation of the marketing strategy consists of two steps:-
 Segmentation & target market selection
 Assembling the marketing mix
4.) It is found that 42 out of 100 respondents belong to 10-20 age group. Therefore, most
of the customers who prefer NESTLE are of young age group.
5.) It is concluded that people of different age groups prefer mostly Cadbury brand while
Nestle brand is least preferred by the age group between 10-20.
6.) People of age group above 30 equally like to have both the brands i.e., Nestle and
Cadbury.
7.) It was found that on an average most of the people are influenced by flavor/taste
followed by quality, brand and image.
8.) According to the analysis, it is concluded that most of the people said, personal
selling should be done to reduce costs without affecting quality of the product.
9.) It is found that out of 100 respondents, 35 peoples are attracted by free gifts for
promotional offers.
10.) Advertisement is the major or best measure to attract customers to purchase
more. Its impact is more than the other factors.
11.) Television emerges as the best media for advertisement that influences more
customers to buy the product.
12.) Most of the people are loyal to the brand as in the absence of availability of
their preferred brand.

54
 CONCLUSION & RECOMMENDATIONS

1.) Although product line is very good & has good width & depth, but NIL should try to
make stronger brand equity in Dairy products, Amul is still leader.
2.) It should work more on concept of CRM (Making new customers & retaining old ones.
3.) Cash discounts must be given.
4.) More competitive pricing to be done in the premium segment.
5.) Increase their sales force to make more frequent visits to the sales person.
6.) Should also look for rural markets.
7.) Quick handling of problems of stockiest & dealers.
8.) Online ordering facility & electronic payment through website can save a lot of time.
9.) Company should concentrate on all round cost saving & productivity gain, to neutralize
the adverse impact of increased excise of confectionary.

55
 LIMITATIONS

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

56
 BIBLIOGRAPHY

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

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

INTERNET SITES:

www.google.com

www.thehindubusinessline.com

www.domain-b.com

www.economictimes.indiatimes.com

www.slideshare.com

www.wikipedia.com

www.investopedia.com

57
 QUESTIONNAIRE

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

Ans= 1. Customer satisfaction 2. Increase profit

3. Sales maximization 4. Society welfare

5. All of above

2) What market segments are you targeting?

Ans= 1. Geographical segmentation 2. Demographic segmentation

3. Psychographic segmentation 4. Behavioural segmentation

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

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

3. 20-30 4. Above 30

4) What is your customer’s primary reason for buying or wanting to use your product
or service?

Ans= 1. Brand value 2. Price

3. Quality 4. Easy to get

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

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Ans= 1. Cadbury 2. Sunfeast

3. Parle 4. Others

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

Ans= 1. Quality 2. Price

3. Hygiene 4. Better services

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

Ans= 1. Direct personal selling 2. Indirect selling

3. Direct online selling 4. Any others

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

Ans= 1. Advertisement 2. Suggestion from friend

3. Attractive display 4. Brand ambassadors

9) Which advertising media is used to increase sale?

Ans= 1. Television 2. Display

3. Newspaper 4. Hoardings

5. All of above

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

Ans= 1. Price 2. Quality

3. Brand 4. Quantity

5. All of above

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

Ans= 1. yes 2. No

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

Ans= 1. Free gifts 2. Demonstration

3. Decrease price 4. Any other

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

Ans= 1. Postpone your purchase 2. Switch over to other brands

3. Go to other shop for preferred brand 4. Any other

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

Ans= 1. Remove intermediaries 2. Utilization of resources

3. Personal selling 4. Others

15) Are competitive price changes anticipated in the near future?

Ans= 1. Yes 2. No

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

Ans=
___________________________________________________________________
___________________________________________________________________
____________________________________________________________

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(Demographic Profile)

Name:

Address:

Contact No. ………………….

Age:

Occupation:

Date: ………… Signature

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