Deogiri Institute of Management Studies, Aurangabad

A Mini Project Report On

To Study of Marketing Mix on Nestle

Submitted by Mr. Ajay Singh Shekhawat Roll no:-22 MBA I semester Batch C 2011-2012

Deogiri Institute of Management Studies, Aurangabad

A Mini Project Report On

To Study of Marketing Mix on Nestle

Submitted by Mr. Ajay Singh Shekhwat Roll no:-22 MBA I semester Batch C 2011-2012
In partial fulfillment of the completion of the course of Dr. Babasaheb Ambedkar Marathwada University, Aurangabad

Prof. Anchal Tyagi Project guide

Prof. Jeevan Salunke HOD

Dr. Ulhas Shiurkar Director

Certificate
This is to certify that, Mr. Ajay Singh Shekhawat is the students of Deogiri Institute of Engineering And Management Studies, Batch 2011-12. They have successfully completed the Mini project report (CP109) on To Study of Marketing Mix on Nestle and had submitted the report to Dr. Babasaheb Ambedkar Marathwada University, Aurangabad. In practical fulfillment of the course Master of Business Administration (F.Y.1st semester) 2011-2012.

Prof. Anchal Tyagi

Prof. Jeevan Salunke

Dr. Ulhas Shiurkar

Project guide

HOD

Director

Declaration

I, Mr. Ajay Singh Shekhawat here by declare that, the Mini project report submitted by me in partial fulfillment of MBA Degree course is genuine work. It has not been submitted either fully or partially to their or any other institute prior in any other connection I have done the project as per the guidelines of our respected guide.

Mr. Ajay Singh Shekhawat

Acknowledgement
I, Ajay Singh Shekhwat here by thank my project guide, Prof. Anchal Tyagi for guiding and encouraging me to complete the Mini Project.

I also thank Prof. Jeevan Salunke (HOD) and Dr. Ulhas Shiurkar (Director), Deogiri Institute of Engineering and Management Studies, Aurangabad for encouraging and guiding me through the Mini Project study.

Mr. Ajay Singh Shekhawat

Roll no:-22 MBA I semester Batch C 2011-2012

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INDEX
Sr. No. 1 2 3 4 Introduction VISION MISSION RESEARCH METHODOLOGY MARKETING MIX 5
PRODUCT PRICE PROMATION PLACE

Name

Page No. 12 14 15 16 18
19 22 24 26

6 7 8 9 10 11

SWOT ANALYSIES FINDING SUGGESTIONS AND RECOMENDATIONS CONCLUSION BIBLOGRAPHY ANNEXURE

30 32 33 36 37 38

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INTRODUCATION
Nestl was founded in 1866 by Henri Nestl and is today the world's biggest food and beverage company. Sales at the end of 2005 were CHF 91 bn, with a net profit of CHF 8 bn. Nestl employ around 250,000 people from more than 70 countries and have factories or operations in almost every country in the world. The history of Nestl began in Switzerland in 1867 when Henri Nestl, the pharmacist, launched his product Farine Lacte Nestl, a nutritious gruel for children. Henri used his surname, which means little nest, in both the company name and the logotype. The nest, which symbolizes security, family and nourishment, still plays a central role in Nestls profile. Since it began over 130 years ago, Nestls success with product innovations and business acquisitions has turned it into the largest Food Company in the world. As the years have passed, the Nestl family has grown to include chocolates, soups, coffee, cereals, frozen products, yoghurts, mineral water and other food products. Beginning in the 70s, Nestl has continued to expand its product portfolio to include pet foods, pharmaceutical products and cosmetics too. Today, Nestl markets a great number of products, all with one thing in common: the high

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quality for which Nestl has become renowned throughout the world The Company's strategy is guided by several fundamental principles. Nestl's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for short-term performance. The Company's priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives. Taste of Nestl in each of the countries where Nestl sell products. Nestl is based on the principle of decentralization, which means each country is responsible for the efficient running of its business - including the recruitment of its staff. That's not to say that every operating company can do as it wishes. Headquarters involve sets the overall strategy and ensures that it is carried out. It's an approach that is best summed up as: 'centralize what you must, decentralize what you can'. Nestl is a company which is present in all over the world but it has difference and unique motto to deal in all over the world. Nestl believes that they should think about their organizations globally but they deal with people by interacting with them locally. Thinking globally - acting locally
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VISION
Nestl's vision of making good food central to enjoying a good healthy life for consumers everywhere. This implies gaining a deeper understanding in many areas of nutrition and food research and transforming the scientific advances into applications for the company. Having a broad vision the company is doing its best for their consumers to show the great sense of responsibility. Nestls aim is to meet the various needs of the consumer every day by marketing and selling food of a consistently high quality. The confidences that consumers have in our brands is a result of our companys many years of knowledge in marketing, research and development, as well as continuity -consumers relate to this and feel they can trust our product.

MISSION

AT NESTLE, WE BELIEVE THAT RESEARCH CAN HELP US MAKE BETTER FOOD SO THAT PEOPLE LIVE A BETTER LIFE.
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MARKETING MIX

PRODUCT PLANNING PRICE PLANNING PROMATION PLANNING PLACE(DISTRIBUTION) PLANNING

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PRODUCT PLANNING

Nestle first launched its powder milk in the market in 2003 and then came the liquid powder.

Nestle has introduced the milk powder which outshined others because of its great taste, refrigeration, ready to drink, less volume, more stable shelf life.

At Nestle the Research and Development department is called as the APPLICATION GROUP. No other company matches the R&D presence of Nestle. No other company dedicates so many human and financial resources to R&D as Nestle.

The technology is imported and is latest. The factory mil powders spray drying capacity was doubled in 1999 with commissioning of new evaporator.

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The actual target is a companys secret that will not be disclosed. But we received an overwhelming acceptance and liking of the product.

Over many years companys primary concern has been to improve the quality and volume of milk for UHT processing and other milk based products.

The target market of the product is definitely he tea drinkers who have a choice and capacity for the best taste.

There was a problem of segmentation but it was quickly taken into notice and the problem was readily removed.

It is designed to be used in general but it is popular mostly in offices and cafs for tea purposes.

Now the error rate has been reduced to zero. 2004 --------------------------- 3 complaints 2005 --------------------------- 6 complaints 2006 --------------------------- 4 complaints 2007 ---------------------------- 2 complaints

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Well the product is matchless in quality and has no match. It

has a sufficient name and place in the market. On the basis of profit margin Nestle seldom make donations o

non- profit organizations and charitable institutions. Nestle has its own dairy farms from which we collect milk and

we have a special team of veterans who regularly inject animals against epidemic diseases. The Nestle logo is a must, other than that the product is made

available in convenient sizes and attractive colors. The WHITE color is the chief color to depict the color f milk. Competitors are: PIA, MC-DONALDS and PEARL CONTINENTAL in India.

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PRICE PLANNING

Global pricing policies: Apart from global coordination of prices on specific products and firms usually adopt one of the three alternative pricing policies that cut across their product lines. These are 1. Polycentric pricing 2. Geocentric pricing 3. Ethnocentric pricing Nestle use geocentric pricing policy. Nestle Products price planning Nestle dairy products are priced keeping in view the buying power of middle-income and high-income social classes. The cost includes the cost of manufacturing, labor, raw materials etc. The industry sales growth is largely driven by population growth as well as the amount of advertising and product innovation taking place in the industry. The company has resorted to pricing discrimination strategies to maximize the value of consumer demand
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 Being a multinational brand, the pricing objective of Nestle is mainly to increase sales as it has already penetrated the market. Their prices are not affected by price changes by competitors, and they dont engage in price wars. Competition is met through innovation. The prices of Nestle milk change as the product size is changed of the Product Life Cycle. And Because of the contract between the seller companies, they offer same price. So there is no skim based or penetration based pricing by company. The retail prices are different according to their size and brand. However prices have been standardized throughout Pakistan and there is no differentiation based on geographical areas. There is no change in prices according to season. It remains the same. They adopt same strategy in international marketing as in local marketing. But the prices are according to the international currency.

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PROMOTION PLANNING

The promotion of Nestle Dairy product are no doubt the best of all. Its intense advertising has really captured the minds of all categories of people besides media advertising; the company has signed several agreements with different sports in order to promote. For the Advertising, the company has a policy that the commercial should best communicate its message toward its target markets. The promotional planning of Nestle milk has taken the emotions of youngsters quite successfully. Promotion is handled by the marketing department but campaigns are launched through an agency. Promotion is done through the electronic media, billboards and print media (press). Promotion Objectives To project sales of Nestle Dairy Products To create awareness among the masses about any new product of Nestle To achieve brand loyalty Selection of Promotion Media Selection of promotion media is done on the basis of whether the company wants:
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 Immediate sales uplift - Achieved through television and other forms of electronic media Or Gradual sales uplift Promotion planning depends on marketing push or marketing pull strategy. Nestle milk is not considered a seasonal product in Pakistan, so they do not need to promote very much.

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PLACE (DISTRIBUTION) PLANNING

They distribute their products nationally and internationally throughout the world. Nestle are distributed using an indirect channel, that is, dealers. Nestle milk is sent to warehouses after manufacture

NESTLE DEALER RETAILER FINAL CONSUMERS

They use intensive distribution for marketing coverage. Because its goals are to have wide market coverage, channel acceptance and high total sales and profits. Distribution is made nationally and internationally through Motor. Carriers Waterways Airways Railroads Throughout the country in every city and village. It includes suppliers and retailers
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Supply chain: There are various departments Raw material department Finished goods department From the finished goods department the product goes to the warehouses. Export Expansion Strategy: There are two types of export expansion strategies 1. Water fall 2. Sprinkler Nestle use waterfall strategy. It moves gradually to different countries.

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RESEARCH METHODOLOGY

Research refers to search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. It is an art of scientific investigation. Research Methodology:It is the way to systematically solve a problem. The methodology adopted in this study is explained below: Research Design Literature Survey: I have used books, prospectus & websites. Type of research: The research is descriptive in nature. Descriptive research is one that describes things as exists in present. Data collection: Sources of data 1. Primary Sources I have used questionnaire as primary source for collecting data for my study. 2. Secondary sources I had collected my secondary data from websites & Prospectus.

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ANNEXURE
Q: which Chocolate do you like most? Ans KITKAT 80% ECLAIRS 20%

Q: which flavors do you like most? Ans Choc 65% strawberry 35%

Q: if you like chocolate colour ya other ? Ans chocolate 73% other 27%

Q:
Ans

why are you select nestle products? reasonable 20% quality 35% both 45%

Q: which size do you prefer in ECLAIRS ? Ans regular 80% large 20 %

Q: which NESTLE products do you like most? Ans chocolate 30% maggi 70%
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SWOT ANALYSIS OF NESTLE

STRENGHTS

Nestle is a multinational company which establish his bench mark across in INDIA and all over world.

Nestle is trust by consumer due to its quality and brand name. Nestle products price is affordable. Nestle promotes their products by attractive advertisement and free sampling.

WEAKNESESS
In all over world many food company enter in competition of Nestle. Nestle products promotion policy is not more attractive
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OPPOTUNITIES

Nestle in Pakistan has a great opportunity for expanding its market. It also has opportunities largely in China and India as well. Through proper marketing research Nestle can cash on to these opportunities.

THREATS

Nestle is facing the threats by worldwide community due to its

violation of international marketing standards.

Many campaigns have been held against Nestle in this regard

which can damage the name and trust of its customers.

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FINDINGS OF THE STUDY

Nestle Corporation has is satisfactory to customer needs. As it can be clear that Nestle as a company has expanded its products and services from Food, Qualitative like need of everyday food. In providing a wide range of products and services with high quality, Nestle has by far influenced most of the customers perception favorably towards its products. Nestle is fair with consideration of the quality of the products and services offered , The only problem is that, Nestle has priced its products for a middle or lower class customer to afford to buy those products. Apart from that Nestle has targeted its market mainly to urban customers as are the only customers who can afford such products. Nestle has to create also some of low end products with low prices which can be affordable to low income users.

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SUGGESTIONS AND RECOMENDATIONS

As Nestle is the best company all over the world but there is some recommendations and suggestions.
NESTLE products would be try to available not only for urban as well as ruler. It attracted the customers by good advertisement and distributed free sample in schools colleges and ruler areas. It tried to maintain quality and change in taste according the consumer. For online promotion of products its use FS4I ( free staff for INDIA) To come ahead the competition NESTLE make price reasonable for all.

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CONCLUSIONS
Nestle Brand enjoys market leadership position and it is also prefer by the majority of the consumer for Product among different brands OF Everyday product available in the market. In different types of Coffee, Chocolate is preferred by most of consumers and they have ranked Everyday product as No 1 among different Types of Product. Nescafe is preferred by the consumer among different type of coffee. Majority of the Consumer prefer KITKAT, ECLAIRS they like Crispy, Creamy and Sweet Chocolate. Most of the consumers Buying Decision is not only influenced by any specific single characteristics but it is influenced by either the combination of more than 1. Thus majority buying decision is influenced by Performance of Everyday Product in Total, Of course in different consumer segments there are different characteristic impacting buying Decision. Occupation Wise Classification o For Senior Person: The most influencing characteristic impacting buying decision is Price.
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o For Young generation and Child: Price & Performance have impact influence on buying decision. It signifies that Service Person purchase Product not only considering price but along with it some different features such as Quality, Brand, Taste etc. are also impacting the Decision. But still Price & Performance are dominating features for this Consumer Segments.

BIBLIOGRAPHY

A Complete Guide to Programming in Microsoft Office 2007 Advanced Programming Using Microsoft Word 2007 Marketing Management ---- Philip Kotler 12th Edition Advanced MS Power Point Company's Draft Prospectus. Companys 13th Annual Report Business Research --- By Cooper Www. nestlemilk.com Www. economictimes.com http://en.wikipedia.org/nestle milk

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