i

To set the Route to Market & Selling methodology for Nestea Iced Tea



By

Ankur Verma
Institute of Management Technology, Ghaziabad













IMT
June, 2010

















ii

To set the route to market and selling methodology for Nestea Iced Tea










By

Ankur Verma
Institute of Management Technology, Ghaziabad



Under the guidance of


Mr. Sanjay Singh Prof. Dr.Nina Jacobs
Area Sales Manager Assistant Professor
Nestle India IMT, Ghaziabad











IMT
June , 2010







iii

Certificate of Approval


The following Summer Project Report titled "To set the route to market and selling
methodology for Nestea Iced Tea" is hereby approved as a certified study in management carried
out and presented in a manner satisfactory to warrant its acceptance as a prerequisite for the award
of Post-Graduate Diploma in Management for which it has been submitted. It is understood that
by this approval the undersigned do not necessarily endorse or approve any statement made,
opinion expressed or conclusion drawn therein but approve the Summer Project Report only for
the purpose it is submitted.

Summer Project Report Examination Committee for evaluation of Summer Project Report

Name Signature



1. Faculty Examiner _____________________ ___________________


2. PG Summer Project Co-coordinator _____________________ ___________________




iv

Certificate from Summer Project Guides

This is to certify that Mr. Ankur Verma, students of the Post-Graduate Diploma in Business
Management, have worked under our guidance and supervision. This Summer Project Report has
the requisite standard and to the best of our knowledge no part of it has been reproduced from any
other summer project, monograph, report or book.







Mr. Sanjay Singh
Area Sales Manager
Nestle India Ltd.
M-5A,Connaught Circus,
New Delhi 110001

Date : 18 / 06 / 2010














v

Abstract

To set the route to market and selling methodology for Nestea Iced Tea

By

Ankur Verma


This project deals to Study the market and selling methodology of Nestea Iced Tea and compare
viz-a-viz its competitors and suggest ways for improving sales, distribution and merchandising.
There are many players in the refreshing drinks industry and the competition is increasing and it is
getting extremely difficult for the players to retain their market share. It has become essential for
all the companies to come up with marketing strategies for customers, influencers and channel
partners.
A market research was done to know about the customer/retailer perception about Nestea Iced Tea
and its competitors (Tang and Rasna).All the data was analyzed to know about the factors which
customers and retailers consider while making their buying decision .The research focused on
refreshing drinks which are available in the condensed powder form. The data has been collected
from customers and retailers of west Delhi region.

The major findings are:

1. Usage of Nestea was lowest in comparison to its competitors Tang and Rasna. Tang was more
preferred in posh markets whereas Rasna was preferred drink in the lower end markets.

2. Most people were aware of its Herbal variant but still lemon was the most preferred flavor.

3. Television was found the most convenient medium through which people got aware about
Nestea.

4. Quality and Brand were two important factors on which customers based their buying decision
in refreshing drinks industry and Nestle had high brand value among its customers.

5. The consumer promotion most desired by the customers were free gifts,1+1 free and 25% extra
.


vi

6. Many retailers confirmed that sachets and smaller packs sell more as compared to half kg packs
especially in the lower end markets.
7. According to retailers quality, product visibility and customer satisfaction are important
reasons affecting sales.

8. According to retailers schemes offered by the company is an important factor that affect the
retailing of the products in this category.


9. Display money given to Nestea retailers was at par with other competitors but margin given to
retailers was less as compared to others in the industry.

The research methodology used consisted of three phases:

i) A primary data collection by getting the questionnaires filled from customers and retailers
ii) Study of secondary data sources, and
iii) Quantitative analysis of the collected data and qualitative analysis of the information.

Other data sources were in-depth interviews of some 150 retailers present in west Delhi region for
a total period of about 4 weeks.












vii

Acknowledgement

This project report has been a very special project, brought to fruition through the efforts of some
very special people. I am deeply grateful to the entire management of Institute of Management
Technology Ghaziabad for giving me an opportunity to dirty my hands on the practical aspect of
life. It would have been quite impossible without the immense help and conducive environment
proffered at Nestle India, wherein they bared me as an intern for two months.

I express special thanks :

I would like to express my deep sense of gratitude to Prof. Dr.Nina Jacobs, Faculty Guide
for not only being a guide but also a mentor and his tireless support and guidance in the
course of my project and its completion.

To Mr. Sanjay Singh, Area Sales Manager of Nestle India for giving me an opportunity to
work on this project in Nestle. He took additional efforts to bring my report to its
fulfillment and completion. His continuous encouragement through the freedom given to
me to try out new things immensely helped me in understanding the concepts practically.

To Mr. Gurdeep Singh, for his keeping the continuous track of my work and performance
and guiding me on my project.

To all my fellow colleagues and seniors too, for being an immense help to me in this
project.

Last but not the least, I would like to express my thanks to god and my parents who have always
helped me in giving the moral support whenever required.





viii

Table of Contents
Certificate of Approval .................................................................................................................................... iii
Certificate from Summer Project Guides ........................................................................................................ iv
Abstract ............................................................................................................................................................ v
Acknowledgement ......................................................................................................................................... vii
Introduction: .................................................................................................................................................... 2
HISTORY ......................................................................................................................................................... 3
DYNAMIC EXPANSION ............................................................................................................................... 4
NESTLE TODAY ............................................................................................................................................ 4
RESEARCH & DEVELOPMENT .................................................................................................................. 5
FMCG SECTOR IN INDIA .................................................................................................................................... 5
FOOD AND BEVERAGES ................................................................................................................................ 6
SWOT ANALYSIS ............................................................................................................................................... 8
OBJECTIVES OF THE STUDY ............................................................................................................................ 10
RESEARCH METHODOLOGY ............................................................................................................................ 11
WHAT IS RESEARCH METHODOLOGY? ....................................................................................................... 11
OBJECTIVE OF THE STUDY: ......................................................................................................................... 11
Primary Objective ................................................................................................................................... 11
Secondary Objective ............................................................................................................................... 11
RESEARCH DESIGN: ........................................................................................................................................ 12
ANALYSIS AND FINDINGS ....................................................................................................................... 15
RECOMMENDATIONS ..................................................................................................................................... 24
FOR INCREASE IN THE SALE OF Nestea Iced Tea (CONSUMERS) ............................................................... 24
FOR INCREASE IN THE NESTLE ICED TEA (RETAILER) .................................................................................. 27
APPENDIX ....................................................................................................................................................... 28
Annexure 1: QUESTONNAIRE FOR CUSTOMERS ........................................................................................ 29
Annexure 2: QUESTONNAIRE FOR RETAILERS ............................................................................................ 32


2

Introduction:
Nestle India.
Nestl India is a subsidiary of Nestl S.A. of Switzerland. With seven factories and a large
number of co-packers, Nestl India is a vibrant Company that provides consumers in India with
products of global standards and is committed to long-term sustainable growth and shareholder
satisfaction.
The Company insists on honesty, integrity and fairness in all aspects of its business and expects the
same in its relationships. This has earned it the trust and respect of every strata of society that it
comes in contact with and is acknowledged amongst India's 'Most Respected Companies' and
amongst the 'Top Wealth Creators of India'.
The Company continuously focuses its efforts to better understand the changing lifestyles of India
and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through
its product offerings. The culture of innovation and renovation within the Company and access to
the Nestl Group's proprietary technology/Brands expertise and the extensive centralized Research
and Development facilities gives it a distinct advantage in these efforts. It helps the Company to
create value that can be sustained over the long term by offering consumers a wide variety of high
quality, safe food products at affordable prices.
Nestl India manufactures products of truly international quality under internationally famous
brand names such as NESCAF, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE,
MILKMAID and NESTEA and in recent years the Company has also introduced products of daily
consumption and use such as NESTL Milk, NESTL SLIM Milk, NESTL Fresh 'n' Natural
Dahi and NESTL Jeera Raita.
Nestl India is a responsible organization and facilitates initiatives that help to improve the quality
of life in the communities where it operates.






3

HISTORY
Henri Nestl founded Nestl in 1866 in Switzerland. Nestl means little nest in Swiss German.
Nestl first customer was a premature infant who could tolerate neither his mothers milk nor any
other conventional substitute. Thus, Henris ultimate goal was to help fight the problem of infant
mortality due to malnutrition for which he developed a product combining various cows milk,
wheat flour and sugar and name it Farine Lactee Nestl, which was the first product of Nestl
being marketed in Europe.

In 1974, Jules Monnerat purchased Nestl and collectively they launched a condensed milk
product of its own. In 1905, Nestl got merged with Anglo-Swiss condensed milk.
After some time, when Nestl got fully established and all its operation were properly functioning
in Europe and was gaining fame around Europe, then Nestl decided to set up production plants
around the globe to ensure the growth of the organization and to become multinational.
The decision to set up industrial operation in new market needs a lot of research, as there are
various factors that effect the growth of the organization and turns out to be a loss for the
company. Such factors are as follows
Availability of raw materials
Cost factor
Economic climate
Consumer purchasing power
Consumer tastes


The decision to become multinational turned fruitful for Nestl and today Nestl has its own
operations and products in America, England, India, Brazil, Australia, Pakistan, Hungary, France,
Belgium, Italy, Spain and various other countries around the globe.





4

DYNAMIC EXPANSION
The history of Nestle includes the development of many different products as well as acquisitions,
mergers and the purchasing of shares in companies, mainly abroad. Over the course of the years,
this enabled it to broaden its range of products and diversify its operations, while at the same time
strengthening the economic foundations of the company. Amongst the most important acquisitions
were Carnation in Los Angeles (milk, culinary products and pet foods) and more recently
Rowntree Mackintosh in York (chocolate and confectionery), Buitoni in Perugia (pasta) as well as
Perrier in France(mineral water). Nestle, which does 98% of its business outside Switzerland, also
has interests in non-food sectors, in cosmetics (a large share holding in L'Oreal) and ophthalmic
products (acquisition of Alcon Laboratories Inc.) while continuing to give priority to food products

NESTLE TODAY

Nestle is now the world's largest food company. It is present on all five continents, has an annual
turnover of 74.7 billion Swiss francs, runs 509 factories in 83 countries and employs about
231,000 people the world over.
The Company owes its current status to the pioneering spirit inherited from its founders which
continues to inspire it, to its concern with quality and to its constant search for new ways of
satisfying man's nutritional needs.
Wherever possible, it sets up factories locally, employs personnel from the country concerned and
relies on indigenous raw materials. Its agricultural services provide assistance to improve the
quality and yield of the raw materials it uses. Much attention is devoted to professional training
and to the integration of the Company in its economic and social environment






5

RESEARCH & DEVELOPMENT

Nestle, the world's biggest food Group, is also the global leader in the industry with regard to
Research and Development (R&D), No other food company matches the R&D presence of Nestle,
with a worldwide network of centers in 17 locations on four continents. No other food company
dedicates so many human and financial resources to R&D: an international staff of 3500 engaged
in the search for innovative new products and the renovation of existing ones. Year after year,
Nestle invests some 800 million Swiss francs into R&D as a major driving force of its double
strategy: to strengthen the Company's brands worldwide and to continue to support future long-
term growth and competitiveness through innovation and renovation.
At the threshold of this new millennium, Nestls objective is to consolidate and strengthen its
leading position at the cutting edge of innovation in the food area, in order to meet the needs and
desires of consumers around the world, for pleasure, convenience, health and well being.
FMCG SECTOR IN INDIA
The Indian FMCG sector is the fourth largest sector in the economy with a total market size in
excess of $13.1 billion. It has a strong MNC presence and is characterised by a well established
distribution network, intense competition between the organised and unorganised segments and
low operational cost. Availability of key raw materials, cheaper labour costs and presence across
the entire value chain gives India a competitive advantage. The FMCG market is set to treble from
$11.6 billion in 2003 to $33.4 billion in 2015. Penetration level as well as per capita consumption
in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating
the untapped market potential. Burgeoning Indian population, particularly the middle class and the
rural segments, presents an opportunity to makers of branded products to convert consumers to
branded products. Growth is also likely to come from consumer 'upgrading' in the matured product
categories. With 200 million people expected to shift to processed and packaged food by 2010,
India needs around $28 billion of investment in the food-processing industry.




6

FOOD AND BEVERAGES

The size of the Indian food processing industry is around$ 65.6 billion, including $20.6 billion of
value added products. Of this, the health beverage industry is valued at $230 million; bread and
biscuits at $1.7 billion; chocolates at $73 million and ice creams at $188 million. The size of the
semi-processed/ready-to-eat food segment is over $1.1 billion. Large biscuits & confectionery
units, soya processing units and starch/glucose/sorbitol producing units have also come up,
catering to domestic and international markets. The three largest consumed categories of packaged
foods are packed tea, biscuits and soft drinks. The Indian beverage industry faces over supply in
segments like coffee and tea. However, more than half of this is available in unpacked or loose
form. Indian hot beverage market is a tea dominant market. Consumers in different parts of the
country have heterogeneous tastes. Dust tea is popular in southern India, while loose tea in
preferred in western India. The urban-rural split of the tea market was 51:49 in 2000. Coffee is
consumed largely in the southern states. The size of the total packaged coffee market is 19,600
tonnes or $87 million. The total soft drink (carbonated beverages and juices) market is estimated at
284 million crates a year or $1 billion. The market is highly seasonal in nature with consumption
varying from 25 million crates per month during peak season to 15 million during offseason. The
market is predominantly urban with 25 per cent contribution from rural areas. Coca cola and Pepsi
dominate the Indian soft drinks market. Mineral water market in India is a 65 million crates ($50
million) industry. On an average, the monthly consumption is estimated at 4.9 million crates,
which increases to 5.2 million during peak season.




7


NESTEA ICED TEA

NESTEA Iced Tea: NESTEA Iced Tea is a special blend of natural tea & natural fruit flavour. Its
so convenient to make that now you can enjoy your favourite iced tea at home. 1 glass of NESTEA
Iced Tea provides with 50% of daily requirement for Vitamin C. It comes in two flavours Lemon
and Peach.
NESTEA Iced Tea with Green Tea: NESTEA Iced Tea with Green Tea brings natural, healthy
goodness of Green tea into your glass. Green tea is a good source of NATURAL
ANTIOXIDANTS which are known to protect body cells from damage caused by free radicals. It
comes in Mint flavour.






8

SWOT ANALYSIS

STRENGHTS
The strengths of Nestea Iced Tea are as follows:
Companys name Nestl signifies the quality image high standard and quality product
Loyalty from customers is also the major strength for the company.
Employees are also loyal due to the decentralized culture of company.
People trust on products due to the proper health and safety measures.

Very Few Products in this iced tea category. Other products available are imported like
Liptons Iced Tea

Being a multinational company it has the capability to attract more customer than the local
companies.

Company has the ability to compete in a dynamic environment.

Company always adapts the new technology


WEAKNESSES

The weaknesses are as follows:
There is not much margins for retailers to prefer its sales
Main weakness is that product is not available in small packs of Rs 1 or 2 like competitors
tang and rasna which is affecting the penetration of the product in the market.
The distribution cost is high as compared to the competition in the local market.
Advertisements of Iced tea should increase.








9

OPPORTUNITIES
Company can open separate stores to eliminate retailers.
Company is trying to open stores in universities.
They can provide incentives to retailers to increase sales volume.
Company can start selling the products through chemists shops also if it is introduced in
small packets.



THREATS

Existing companies are increasing their product lines that can prove to be a threat in the
coming years.

Company like Pioma Industries(Rasna),Kraft Foods(Tang) is giving more discounts to
retailers as compared to distributors due to which retailers prefer its products for sale.

As compared to the local competitors, our distributor cost is very high. As Nestl
products has to maintain and obey the Nestl standards.

Some companies are competing on the basis of cost.









10

OBJECTIVES OF THE STUDY

To Study the availability of Nestea Iced Tea & scope of expansion among the end customers and
retailer satisfaction level with Nestea Iced Tea viz a vis its competitors in the condensed powder
form refreshing drinks segment in west Delhi region.
1. To meet customers to get information regarding their perception about Nestea Iced Tea
2. To meet customers to know what are the reasons for not having Nestea Iced Tea.
3. To meet customers and find out the reasons for their preference of any other refreshing
drink over Nestea Iced Tea
4. To meet customers to find out what influences their buying decisions
5. To understand the needs and trends of the end customer and analyze how Nestle fits into
the scheme of things
6. To meet retailers and find out what is their perception about Nestle India ltd
7. To meet retailers and find out what more they accept from Nestle India ltd viz a viz its
competitors
8. To identify scope of improvement in the beverages category of Nestle










11

RESEARCH METHODOLOGY

WHAT IS RESEARCH METHODOLOGY?

Research Methodology may be defined as, scientific and systematic search for information
require on a specific topic. In short research is an art of scientific investigation. Thus it is a
movement, i.e. from known to unknown.
Research comprises defining and redefining problems formulating hypothesis or suggested
solutions. Research methodology refers to the tools and methods used for obtaining information
for the purpose of the subject under study.

OBJECTIVE OF THE STUDY:

The objective of the study is divided into two parts:
Primary Objective

The main objective is to Study the availability of Nestea Iced Tea & suggest scope of expansion.
The aim behind it is to help the Management of Nestle in bringing improvements in sales,
distribution, merchandising strategy so that sales can be increased.
Secondary Objective

The secondary objective is to find out the Retailer satisfaction level with Nestle India viz a viz
its competitors in beverages segment. The aim behind it is to find out the relationship between
Nestle and its retailers in the west delhi region as compared to its competitors; so that Nestle can
improve its relations with the and corrective measures can be taken if at all there exists any
problems.





12

RESEARCH DESIGN:

The kind of research I have done is called APPLIED RESEARCH. Where one has to solve a
current problem faced by the manager in the current setting, demanding a timely solution. For
the purpose of this study initially I used exploratory research in the form of an exhaustive market
survey of various retailers and customers in wesr delhi region which equipped me with requisite
knowledge. In the later stages of research around 200 end customers and 150 retailers were
targeted. I have used a combination of both descriptive and casual research to fulfill the above
stated objective

TYPES OF DATA

1. PRIMARY DATA:
Primary data is that data, which is, collected a fresh for the first time and thus happens to be
original in character. In the study, primary data is collected with the help of:

a. Questionnaire:
It is a popular means of collecting all kinds of data in research. A structured questionnaire was
used which consisted of both open ended and closed ended questions.

Open Ended Question:

In these types of questions, the answers totally depend upon the judgment of the respondent.
They are generally asked about their opinion and suggestions of the respondent.

Closed Ended Question:

These are objective type questions in which the respondent is given certain choices amongst
which he has to choose the most appropriate option.



13

b. Interview:

It is a process of communicating and interacting with the respondents in which the subject or
interviewee gives the needed information verbally in a face-to-face situation. In this study, direct
questions were asked from the customers, retailers in order to extract maximum information
from them

c. Observations:

Observation method refers the information collected by way of investigators own direct
observation without asking from the respondent


2. SECONDARY DATA:

Secondary data are those, which have already been collected by some one else. Secondary Data
sources for this study are:

Website of Nestle
Magazines
Articles and newspapers

DATA COLLECTION METHOD

Based on initial market survey, two detailed questionnaire were made both for the
consumers and retailers
Personal visits to the wholesalers and the distributors of Nestle India
Access to various websites.




14

SAMPLE DESIGN:
For end customers Convenience sampling was used and a sample size of 200 was taken. For
retailers we were given the data of the retailers in the west delhi region and to collect data from
150 retailers simple random sampling was done. Thus these two techniques proved to be very
fruitful for the data collection


SAMPLE SIZE
End consumers : 200 subjects
Retailers : 150 subjects













15

ANALYSIS AND FINDINGS
Customers
1. Out of the total respondents only 48% had ever used Nestea Iced Tea.




2. Out of 96 consumers who used Nestea Iced Tea
38.5% agreed that quality of Nestle is high
36.5% consumer feels that Nestle provide value for money
42.7% found packaging appealing
70.8% feel it is easily available in the market.
Only 36.4% found that it is well placed on the store shelves and is recommended by
the sales person.
Only 13.5% agreed that the promotional schemes are satisfactory
Only 32.3%% people agreed that the product satisfied them
Only 20% agreed to use Nestea in future

Percentage of people
who ever had Nestea.
Yes
No

16

3. 78% of the respondents claimed to see the advertisement of Nestea Iced Tea.


4. Out of the respondents surveyed, 78%

a. 32.5% found it appealing
b. 49.5% found that the message is clear
c. 30% found that they can easily relate to it
d. 38% found they could easily recall it
e. 18.5% respondents found the advertisement persuasive





Percentage of people
who had viewed
Nestea's add.
Viewed
Not
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
appealing message is clear can easily relate to it easily recall it persuasive
strongly agree
agree
neither agree nor disagre
disagree
strongly disagree

17

5. 80% of the respondents prefer herbal tea.

6. 85.5% of the respondents were aware of Nestea iced tea

7. 66.5% of the respondents are aware that Nestea has a herbal variant(green tea).


8. Of the 96 people who had tasted iced tea 50 preferred lemon flavor,21 peach flavor,25
preferred green tea(mint flavor)








Awareness about green
tea
Aware
Not Aware
Flavour Preferrence
Lemon
Peach
Mint

18

9. Various attributes influencing the buying decisions

a. 81.5% agree that quality is a factor
b. 41% feel that advertisement influence their buying decision
c. only 17.5% think that celebrity endorsements influence their buying decisions
d. 77%respondents feel that brand makes a difference
e. 57.5% feel that price is an important factor
f. For only 35.5% people, promotional schemes matter
g. 51% consumers feel that packaging influences their buying decisions

10. The consumer promotion most desired by the customers were free gifts,1+1 free and 25%
extra
11. The reasons why the people stopped using Nestea iced as told by the respondents were that
they sometimes feel more thirsty 5 min after having Nestea iced tea.




0
10
20
30
40
50
60
70
I
N

%

Strongly disagree
disagree
neither
agree
strongly agree

19

RETAILERS
In order to find out the retailer satisfaction level with Nestle India ltd viz a viz its competitors in
the beverages segment, data from 150 retailers was collected and then analyzed. Given below are
the findings from the data
1. Out of 150 retailers 52% sold Nestea iced Tea


On an average according to the retailers the sale of Tang was maximum in the posh
markets of west delhi such as dwarka,Punjabi bagh, Paschim Vihar and that of Rasna
was maximum in lower end markets like nangloi,madipur,Vikas Nagar. Sales of
Nestea iced Tea were minimum in condensed powder form refreshing drinks category.
2. Out of 95 retailers that answered that sachets and smaller packs sell more as compared to
half kg packs especially in the lower end markets, 58.% said that sachets are sold more
3. 54% of 150 retailers said that display of the sachets effect the sale of the sachets





Retailers
Sell
Do not Sell

20


4. Reasons for sale of most preferred refreshing drink.

a) 52.7 % of the retailers said that packaging is not an important reason for the sale of most
preferred refreshing drink.
b) 80% said that quality is a reason
c) 65.3% said that brand loyalty is a reason
d) 62.7% say that promotional schemes are a reason
e) 82.7% say that product awareness is a reason
f) 73.3% say that product visibility is a reason
g) 80.7% say that customer satisfaction is a reason
h) 57.3% say that product variants not a reason






0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
no
yes

21

5. Out of the total 150 respondents,
a) 72.66% retailers agree that Schemes offered by the company affect the retailing of
the product. At times the company offer them discounts and special schemes so
they buy in bulk in these cases



b) 59.3% agree that timely delivery of the order affect the buying decision



0.70% 4.70%
22%
45.30%
14%
strongly disagree
disagree
neither agree nor disagre
agree
strongly agree
strongly
disagree
4%
disagree
4%
neither agree
nor disagre
19%
agree
58%
strongly agree
15%

22

c) 49.3% of the retailers neither agreed nor disagreed that mode of payment affect the
retailing; as most of the transactions take place on credit

6. There are many tactics used by the companies to promote their sales. One of them is the display
schemes. The companies rent out windows in the shops and pay the retailers some amount of
money or rent to display their products in those windows. This is done in order to increase the
visibility of the product
a. Nestle gives around 2-3% of sales for a window for visibility.
b. Pioma Industries gives(Rasna) around Rs 250 to 350(fixed for smaller shops) for their
window and 4-5% of sales at good retail outlets and sometimes some gifts the shops which
has high sale figures
c. Similar is the case with Kraft foods(Tang) who gives 3-4% of sales for display windows.






0.70% 4.70%
49.30%
22.70%
6.70%
strongly disagree
disagree
neither agree nor
disagre
agree
strongly agree

23


7. Profit margin earned by the retailers behind the sale of every pack of every company
a. Nestea Iced Tea they earned the profit of 9 % behind the sale of any pack of Nestea Iced
Tea. Other than this no other schemes are offered to boost sales.
b. Pioma industries(Rasna) retailers earned profit of 12 14 % for every sale of Rasna pack
accompanied by other schemes in addition to this margin on the basis of stock they buy.On
an average thy get additional 2-4% margin.
c. Kraft Foods(Tang) margin of 14 to 15 % and additional schemes depending on stock
capacity of retailer.

8. Retailer cycle of buying

a. Most of them said that their cycle of buying Nestea Iced tea is weekly
b. But the stores in high end markets bought tang biweekly and similarly rasna is bought
biweekly in lower end markets.













24


RECOMMENDATIONS

The project on Nestea Iced Tea has proved to be very informative and has helped me a great deal
in understanding the refreshing drinks industry. After analyzing the facts and figures from close
quarters there are certain recommendations that should be given a thought and if incorporated, they
would help in the positive development of the company.
FOR INCREASE IN THE SALE OF Nestea Iced Tea (CONSUMERS)

1. AGGRESSIVE CAMPAIGNING: This should be done both at local level and
National level. At the National level more appealing Ad campaigns should be done
and the frequency of these Advertisements should be increased. Hoardings should
be placed at strategic places like bus stands, Railway stations etc

2. PACKAGING SHOULD BE MADE MORE APPEALING. Sachets should be
introduced. They are required to increase penetration in the markets.

3. IT SHOULD BE ENSURED THAT ICED TEA PACKS ARE WELL
PLACED ON THE SHELVES. They should be kept with other refreshing drinks
rather than being kept with other hot tea products


25


Should not be kept at this place.

Should be kept in these shelves.

These are pics of the same store

4. PROMOTIONAL SCHEMES: There should be good Promotional schemes for
the customers eg, Cash Discounts.Free gifts , buy one get one free offers etc. 1L
pitcher given free with 500g pack actually increased the sales. Retailers were found
to be more willing to keep the stock after the scheme was introduced.
5. AWARENESS THAT HERBAL VARIANT (GREEN TEA) IS AVAILEBLE
SHOULD BE INCREASED
6. DISTRIBUTION OF FREE SAMPLES TO INTRODUCE THE PRODUCT
WHERE PENETRATION IS LOW.

26

7. MORE VARIANTS OF THE PRODUCT SHOULD BE THERE: This is one
reason why rasna and tang are selling more.They are having more flavours.
8. REGULAR SURVEYS SHOULD BE DONE TO KNOW WHAT ARE THE
CHANGING DEMANDS OF THE CUSTOMERS.
9. VARIOUS COLLEGE FESTS SHOULD BE SPONSORED BY NESTLE
ICED TEA SO THAT THERE IS INCREASED AWARENESS OF THE
BRAND AMONG THE YOUNG CROWD







27

FOR INCREASE IN THE NESTLE ICED TEA (RETAILER)

1. The concept of CRM (Customer Relationship Management) should be adopted.
The relations with the retailers and wholesalers should be made friendly and
feedback should be taken from them at regular interval of time so as to know
what type of problems are they facing while using your product and what
improvements can be made.
2. Increase the Retailer base and Target retailers which have large customer base
and high sales
3. It should be taken care of that Retailer has adequate stock of the product .
problem of unavailability of the product should not be there
4. The company should try to provide some more attractive incentives to the
dealers as they also play a role in the sale of the product
5. The companies like Pioma Industries AND Kraft Foods are giving more margin
to the retailers in the beverages segment. Nestle should also follow suit and
give more margin to the retailers
6. Visibility of the product in the market should be increased and Display schemes
should be given to the Retailers so that the product is visible
7. Timely Gifts should be given to the retailers
8. Retailers who do good sale of the product should be rewarded
9. Cash Discounts should be given to the retailers
10. Occasional competitions should be organized for the retailers to develop good
relation with them
11. Their grievances should be addressed
12. The sales force should be dynamic and well informed
13. The salesmen should be properly trained and their regular visits to the retailers
should be ensured
14. Product replacement for the retailers should be facilitated


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APPENDIX


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Annexure 1: QUESTONNAIRE FOR CUSTOMERS

OBJECTIVE:- To study the brand preference of Nestea Iced Tea .
1. Name: ..

2. Occupation: .

3. Family Monthly Income:
Below 25000 25000-50000 50000-1 Lac 1 Lac and above

4. Location: .

5. Age:
15-25 25-35 35-45 45 and above

6. Family type:
Joint Nuclear

7. Do you consume Iced Tea?
Yes vNo

8. Which brand you prefer the most in Refreshing Drinks(available in condensed powder form)?
Nestle Iced tea
Tang
Rasna
Other .....

9. Have you ever used Nestea Iced Tea?
Yes No

10. If no , it is because :
Lack of awareness
Lack of availability
You find it expensive
You dont like the product

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Others .

11. You came to know about Nestea Iced Tea from :
Newspaper advertisements
Radio
T.V. advertisements
Word of mouth
Point of sale
Other source..

12. Do you remember any of the T.V. advertisements of Nestea Iced Tea?
Yes No


13. Have you tried new variants of Nestea Iced Tea after viewing the advertisements?
Yes No

14. What is the level of discounts /offers available with Nestea Iced Tea?
High Medium Low

15. Which of the offers will influence you the most to purchase Nestea Iced Tea?
Extra offered
Buy one get one
Free gifts
Other

16. Is Nestea Iced Tea easily available to you?
Yes No

17. From where do you usually purchase Nestea Iced Tea?
Nearby store
Retail store
Whole seller



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18. Which flavor of Nestea Iced Tea you like the most?
Lemon
Peach
Mint (Green Tea)

19. What is the size of Nestea Iced Tea you usually purchase?

20. How frequently you purchase Nestea Iced Tea?
Every week
Every forth night
Every month
Occasionally


21. Any further suggestions: ....
.



















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Annexure 2: QUESTONNAIRE FOR RETAILERS

1. Name: ..
2. Occupation: .
3. Sales of Nestle items pm:
25000 25000-50000 50000-1 Lac 1 Lac and above
4. Location: .
5. Do you sell Nestea Iced Tea
Yes No
6. What Sell most in beverages available in powder form
a)Nestea Iced Tea
b)Rasna
c) Tang
7.What sizes are sold most
a)sachets b)smaller packs(100g-200g) c)larger packs(>=500g)
8.What factors effect the sales of refreshing drinks(can mark more than one)
a) packaging
b) quality
c) brand loyalty
d) promotional schemes
e) product awareness
f) product visibility
g) customer satisfaction
h) product variants

9.What factors you consider while keeping a stock of a company
a) Schemes offered by the company
b) delivery of the order
c) mode of payment