A Case Study On Nestle India

A Case Study On Nestle India
PROJECT REPORT
ON
A CASE STUDY ON NESTLE
SUBMITTED TO
Rashtrasant Tukdoji Maharaj Nagpur University for the partial
fulfilment of the degree of Bachelor Of Business Administration
(B.B.A)
Specialization in Marketing
For the academic session
2014-15
Submitted by
Mr.Shahrukh Mirza
B.B.A-III
Under the guidance of
Prof.Nikhil Polke
Tirpude Institute Of Management Education

1,Balasaheb Tirpude Marg,Civil Lines,Nagpur-440001
Tirpude Institute of Management Education, Nagpur
CERTIFICATE
This is to certify that investigation described in this project entitled,

A CASE STUDY ON NESTLE was carried out by Mr. SHAHRUKH
MIRZA in Tirpude Institute of Management Education, Nagpur under
my supervision and guidance in partial fulfilment of the requirement for
the degree of Bachelor of Business Administration of R.T.M.U Nagpur
University, Nagpur.
This work is the own work of the candidate, complete in all respects and
is of sufficiently high standard to warrant its submission to the said
degree.
The assistance and resources used for this work are duly
acknowledged
Prof : NIKHIL SIR
Director
PLACE : NAGPUR
DATE :
DECLARATION
I hereby declare that this project titled A CASE STUDY ON
NESTLE is bonafide and authentic record of work done by me under
supervision of Mr. NIKHIL SIR during academic session 2014-15.
The work presented here is not duplicated from any other source &
also not submitted earlier for any other degree/diploma to any university.
I understand that any such duplication is liable to be punished in
accordance with the university rules.
The source material, data used in this research study have been
duly acknowledged.
PLACE : NAGPUR
DATE :
Year
Shahrukh Mirza
BBA Final
ACKNOWLEDGEMENTS
These is my privilege to express deepest sense of gratitude and in
debt sense to my Supervisor Mr. NIKHIL SIR for his invaluable
Supervision, unending support, constant encouragement, keep interest,
helpfulness and constructive criticism. All this provided us the needed
moral and confidence to carry out this project.
I am honourably thankful to Dr., Director, TIME, Nagpur for
making us all facilities available.
I am also thankful to all other faculty members of TIME for their
help during my project work.
I take pleasure in expressing heartiest thanks to my parents,
colleagues and classmates for their moral support and helpfulness through
my project work. I am also thankful to my other friends excluding TIME,
for giving me full support in my project work.
SHAHRUKH MIRZA
(Name of the Student)
CHAPTERIZATION
CHAPTERS
PARTICULARS
INTRODUCTION
COMPANY PROFILE
OBJECTIVES OF STUDY
SCOPE OF STUDY
PAGE NO.
RESEARCH METHODOLOGY
DATA ANALYSIS AND

INTERPRETAION
LIMITATION
DATA COLLECTION
ANEXURE
10
CONCLUSION
11
BIBLIOGRAPHY
INTRODUCTION
CHAPTER.1
INTRODUCTION
Businesses operate in markets that are constantly changing. Consumer
tastes and expectations are always on the move. This case study examines
a market-focused innovation developed by Nestl. It explores the
development of Maggi 'A Natural Choice': a range of culinary (cooking)
products that is primarily targeted at chefs.
Maggi
Nestl is the world's leading food company. Since it was set up by Henri
Nestl to provide an infant food product, it has been associated with
providing high quality, customer and consumer focused products. In
recent years it has focused on becoming a nutrition, health and wellness
company. Wellness is about supporting people to live more healthy lives
e.g. through the development of probiotic yoghurts that help maintain the
balance of the digestive system. The company is a world leader in
research and development, and Nestl's scientists work in all areas to
create healthier and more nutritious foods. Maggi is an important brand
for Nestl. It is a global brand - widely recognised as a consumer and
foodservices brand in continental Europe. In the UK, Maggi consists of a
range of culinary aid products that are exclusively available to the
catering trade (known as 'foodservice') - primarily to chefs. Maggi 'A
Natural Choice' is a new development that is unique to the UK.
Wholesale distribution
Nestl Foodservices sells Maggi 'A Natural Choice' to wholesale
distribution companies, such as 3663 and Brakes, and Cash and Carry
operators such as Booker, who in turn supply chefs and the catering trade.
The UK foodservice market is very competitive. Companies must apply

high standards to products and their nutritional content to meet stringent
food safety and labelling laws. In addition, members of the public are
becoming increasing knowledgeable and choosy about what they eat, as a
result of food scares and an increase in food allergies, leading to even
higher specifications.
STUDY OF ADVERTISING STRATEGY

The organizations handle their advertising in different ways. In small
companies, advertising is handled by someone in the sales or marketing
department, who works with an ad agency. A large company will often set
up its own advertising department or else hire an ad agency to do the job of
preparing advertising programmes.
In developing a program, marketing managers must always start by
identifying the target market and the buyers motives. Then they can make
the five major decisions in developing an advertising program, known as
the five Ms, viz.
Mission: what are the advertising objectives?
Money: how much can be spent?
111Message: what message can be sent?
Media: what media should be used
Measurement: how should the results is evaluated?
In effect this means that Mission must be clear, the environment must be
understood, the means must be ranked, and choices must be made based on
available resources. Effective product assessment, market definition, media
analysis, and budgetary choices result in an optimum plannever the

perfect plan because resources are always limited.
DEVELOPING THE STRATEGY
Positioning Statement:Also referred to as a brand strategy, positioning strategy, or brand

positioning statement, a positioning statement is a succinct description of
the core target audience to whom a brand is directed, and a compelling
picture of how the marketer wants them to view the brand.
A well-constructed positioning statement is an invaluable means of
bringing focus and clarity to the development of a marketing strategyand
tactics. How? Because every decision that is made regarding the brand is
judged by how well it supports the positioning statement---from the brand
name, the product itself, and packaging, to advertising, promotions, etc.
Formal advertising strategies are based on a "positioning statement," a
technical term the meaning of which, simply, is what the company's
product or service is, how it is differentiated from competing products and
services, and by which means it will reach the customer. The positioning
statement covers the first two items in the listing above.
Implicit in a good positioning statement is what the industry calls
the product concept, namely a cluster of values that the product or service
represents and the associational frameworks in which it fit.
Target Consumer:The attitudinal and demographic description of the core prospect to whom
the brand is intended to appeal; the group of customers that most closely
represents the brands most fervent users.The target consumer is a complex
combination of persons. First of all, it includes the person who ultimately
buys the product. Next it includes those who, in certain circumstances,

decide what product will be bought (but do not physically buy it). Finally,
it includes those who influence product purchases (children, spouse, and
friends). In practice the small business owner, being close to his or her
customers, probably knows exactly how to advise the advertising agency
on the target consumer.
Communication Media:Once the product and its environment are understood and the target
consumer has been specified, the routes of reaching the consumer must be
assessedthe media of communication. Five major channels are available
to the business owner:
PrintPrimarily newspapers (both weekly and daily) and
magazines.
AudioFM and AM radio.
VideoPromotional videos, infomercials.
World Wide Web.
Direct mail.
Outdoor advertisingBillboards, advertisements on public
transportation (cabs, buses).
Each of the channels available has its advantages, disadvantages, and cost
patterns. A crucial stage in developing the advertising strategy, therefore, is
the fourth point made at the outset: how to choose the optimum means,
given budgetary constraints, to reach the largest number of target
consumers with the appropriately formulated message.
Implementation:The advertising campaign itself is distinct from the strategy, but the
strategy is meant to guide implementation. Therefore across-the-board
consistency is highly desirable. Copy, artwork, images, musicindeed all
aspects of the campaignshould reflect the strategy throughout. This is
especially important when multiple channels are used: print, television, and
direct mail, for instance. To achieve a maximum coherence, many effective
advertisers develop a unifying thematic expressed as an image, a slogan, or
a combination which is central to all the elements that ultimately reach the
consumer.
COMPANY PROFILE
CHAPTER.2
COMPANY PROFILE
Nestle India is a subsdiary of nestle S.A.of switzerland. Nestle India
manufactures a variety of food products such as infant food, milk
products, beverages, prepared dishes & cooking aids, and chocolates and
confectionary. Some of the famous brands of Nestle are NESCAFE,
MAGGI, MILKYBAR, MILO, KITKAT, BAR ONE, MILKMAID,
NESTEA, NESTLE MILK, NESTLE SLIM MILK, NESTLE fresh
n Natural Dahi and NESTLE Jeera Raita.
After independence, in response to the then economic policies,
which emphasized local production, Nestle formed a company in India,
namely Nestle India Ltd, and set up its first factory in 1961 in Moga,
punjab, where the Government wanted Nestle to develop the milk
economy. In Moga, Nestle educated and advised farmers regarding basic
farming and animal husbandry practises such as increasing the milk yield
of the cows through improved dairy farming methods, irrigation,
scientific crop management practises etc. Nestle set up milk collection
centres that ensured prompt collection and paid fair prices. Thus, Nestle
transformed Moga into a prosperous and vibrant milk district.
In 1967, Nestle set up its next factory at Choladi [Tamil Nadu] as a pilot
plant to process the tea grown in the area into soluble tea. Nestle opened
its third factory in in Nanjangud [Karnataka] in 1989. Thereafter, Nestle
India opened factories in Samalkha [Haryana], in 1993 and two in Goa at
Ponda, and Bicholim in 1995 and 1997 respectively. Nestle India is now
putting up the 7th factory at Pant Nagar in Uttarakhand.
Today, Nestle is the worlds largest and most diversified food company. It
has around 2,50,000 employees worldwide, operated 500 factories in
approximately 100 countries and offers over 8,000 products to millions
of consumers universally. Nestle India is a responsible organisation and

facilitates initiatives that help to improve the quality of life in the
communities where it operates.
Nestle India Ltd, incorporated in the year 1959, is a large cap company
[having a market cap of Rs 60,771.79 Cr] operating in Food Processing
sector.
Nestle India Ltd. Key products/Revenue segments include Milk Products
which contributed Rs 4071.22 Cr to sales value [43.22% of Total
sales],prepared Dishes & cooking aids which contributed Rs2698.21 Cr
to sales value [28.64% of Total Sales],Beverages which contributed Rs
1324.06 Cr to sales value [14.05% of Total Sales],Chocolates which
contributed Rs 1286.38 Cr to Sales Value [13.65% of Total Sales],Scrap
which contributed Rs 19.69 Cr to Sales Value [0.20% of Total
Sales],Export Incentives which contributed Rs 19.46 Cr to Sales Value
[0.20% of Total Sales],for the year ending 31-Dec-2013.
The companys management includes Dr.Swati Ajay Parimal,
Mr.Antonio Helio Waszyk, Mr.Aristides Protonotarios, Mr.Ashok
Kumar Mahindra, Mr.B.Murli, Mr.Etienne Andre Marie Benet,
Mr.Michael William Oliver Garrett, Mr.Ravider Narain, Mr.Shobinder
Duggal, Mr.B Murli.
Company has A F Ferguson & Co. as its auditors. As on 30-Sep-2014, the
company has a total of 96,415,716 shares outstanding.
OBJECTIVES
CHAPTER-3
OBJECTIVES
It is vital to any firm that its marketing objectives are compatible with the
overall corporate objectives. In selecting corporate objectives and
strategy, a firm might wish to refer to the Boston Matrix, Ansoff's Matrix
or use a simple SWOT analysis to establish where the company is and in
which direction it wishes to head. For example, a company planning to
consolidate its position within a national market might set very different
objectives for the marketing of its products to a company wishing to
expand into international markets. This in turn would affect the marketing
tactics each company might employ.
Confusion can often arise when attempting to reconcile marketing and
corporate objectives. It could be argued that the success of any firm
depends on its ability to satisfy a consumer need at a profit. This is, itself,
the essence of marketing - so it could also be said that marketing and
corporate objectives are the same thing. However, this would imply that
marketing is more important than the other functional areas, when clearly
they are all inter-dependent. Ultimately, any corporate strategy must both
reflect and dictate to each of the different functional areas of the firm.
Nevertheless, the information provided by the marketing department will
be central to any corporate strategy formulation. This will include sales
and market share, analysis of the competition, sales and profit forecasts
for the future and analysis of changing consumer attitudes.
Corporate objectives:Nestl's corporate objective is to be the world's largest and best branded
food manufacturer, whilst ensuring that the Nestl name is synonymous
with products of the highest quality. In recent years, the company has
pursued a policy of expansion and diversification through acquisition and
divestment to achieve a more balanced structure to the business.
Global brand names can achieve substantial production and purchasing
economies of scale and, as world travel increases, so does the importance
of instantly recognisable products. With a product portfoliowhich
includes eight of the thirty top selling confectionery brands, such as
Quality Street, Aero, Smarties, Polo and Rowntree's Fruit Pastilles, Milky
Bar and After Eight, it is extremely important that the marketing
objectives for each product line are fully compatible with the overall
objectives of the company as a whole. Like any group of individuals,
each product has its own character, strengths and weaknesses and
consequently, the marketing objectives of each product need to be
specifically tailored:
Objectives: What is the company trying to achieve? In which

direction are we headed?
Strategy: How can we get there?
Tactics: What specific actions need to be taken, by whom and

when?
Control:How can we judge whether we are being successful in

achieving our objectives? How do we measure our success or failure?
Marketing objectives:Having decided its corporate objectives and strategy, Nestl can set
marketing objectives for each of its product lines and profit centres. The
primary objective for Kit Kat is to maintain its position as the UK's
number one selling confectionery brand. In order to achieve this, Nestl
has to develop a marketing strategy that will take into account all the
elements of the marketing mix. This will involve individual strategies for
pricing, product development, promotion and distribution.
For an established brand name, these strategies must be flexible and
relevant to each new generation of consumers, but at the same time, great
care must be taken not to damage the perceptions of the product built up
over decades of marketing. Kit Kat has a particularly broad consumer
profile and is popular with all age groups. The Kit Kat marketing strategy
can be summarised by the line 'Broad in appeal, young in feel and big in
stature.'
Marketing objectives are compatible with the overall corporate objectives

of nestle. Companys objective is to be the worlds largest and best
branded food manufacturer while insuring that nestle name is
synonymous with the products of the highest quality.
ITS CHIEF OBJECTIVES ARE
To achieve compatibility with international voluntary standards on

environmental management systems.
To build mutual trust with consumers, governmental authorities
and business partners.
To ensure continuous improvement of nestles environmental

performance.
Conservation of natural resources and minimization of waste.
Total compliance with the laws.
To establish the benchmark for good business practice.
Employing new technologies and processing.
By committing to resources, both human and financial.
Measuring the cost and benefits to business of its activities.
Monitor progress.
Audit results
SCOPE OF STUDY
CHAPTER-4
SCOPE
Defining the organizational mission is one of the fundamental tasks of top
management. The mission defines the organization, its aims, activities
and outputs, its raison detre in a nutshell, and hence establishes the
boundries of its scope. Organizational missions therefore focus
organizational attention and accountability. Thus, broad and vague

missions might not accomplish this function.
In 2004 Nestle started to define its mission as nutrition, health,
wellness,together with its moto and ambition GOOD FOOD, GOOD
LIFE. Is it a good mission? Is it too broad?
RESEARCH
METHODOLOGY
CHAPTER-5
RESEARCH METHODOLOGY
Nestle, the world's biggest food Group, is also the global leader in the
industry with regard to Research and Methodology (R&M), No other
food company matches the R&M presence of Nestle, with a worldwide
network of centres in 17 locations on four continents. No other
food
company dedicates so many human and financial
resources to R&M:
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&M 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. In addition, significant progress was achieved across the
broad range of our business activities such as Information systems,
logistics, sales and distribution structure where strong distribution and
effective merchandising made a major contribution in achieving the
high rate of growth as mentioned above
Priliminary study
Discussion with customers & Review of Literature
Survey Objectives and questionnaire design

Data collection
Data analysis
Data analysis and interpretation
Presentation of findings & Recommendation
TYPE OF RESEARCH
The researcher has used descriptive research design for the project.
The research is descriptive as it involves statistical calculation and
analysis. This type of design is used when the researcher is interested in
knowing the characteristic of certain groups. Other cases, where it is used
are when the researcher is interested in knowing the proportion of people
in a given population who have behaved in a particular manner, making
projection of certain thing or determining the relationship between two or
more variables. Descriptive research, also known as statistical research,
describes data and characteristics about the population or phenomenon
being studied.
1. Types of research
Data source
2. Data collection technique
Descriptive research
Primary data & secondary data
Questionnaire method and personal
3. Target audience
interaction with general customer

Urban educated customers and post
4. Contact method
5. Sampling procedure
6. Sample size
7. Statistical tool
graduate students
Personal interview
Convenient sampling
100
Pie chart and percentage
DATA ANALYSIS
CHAPTER-6
DATA ANALYSIS
SWOT ANALYSIS
STRENGTHS ----------------- TO BUILD ON

WEAKNESESS --------------------- TO COVER ON
OPPORTUNITIES ------------------------- TO CAPTURE
THREATS ----------------------- TO DEFEND ON
STRENGHTS
The greatest strength of nestle is that it includes a culture that is
team focused and an open door policy. Nestle focus on
collectivism and performance orientation attitude which
encourages employees to work harder. Another thing is high
level of market share and that people all over the world trust
and recognizes Nestle as a big brand name. Strength is that
people trust on Nestle. It looks at achieving higher volumes by
renovating existing products and innovating new products.
Strength is that they are low cost operators which allow them to
not only beat competition but also edging ahead operating
excellence, innovation, renovation, product availability and
communication are major strengths.
IT is an important aspect that people all around the world are
becoming more conscious about health, thats why they prefer
Nestle.
WEAKNESESS
One major weakness of Nestle is that it is entering into markets
that are already mature and can give a tough competition to new
entrants. Nestle Plain Yogurt has proved to be a Nestle
weakness because it has been unable to make its market place in
USA. But Nestle by analyzing the sensitive areas can overcome
its weaknesses.
OPPORTUNITIES
Nestle in Pakistan has a great opportunity for expanding its
markets because in Pakistan there is a large ready market of
food and beverages due to trends of eating and the increasing .I
t 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
conferences and campaigns have been held against Nestle in

this regard which can damage the name and trust of its
customers. Another threat is due to the increasing popularity of
its competitor OLPERS in local and international markets.
LIMITATIONS OF
STUDY
CHAPTER-7
LIMITATIONS OF STUDY
1. Research was carried out in Nagpur and near places only the findings
may not be applicable to the other parts of the country because of
social and cultural differences.
2. Samples are collected using convenience sampling techniques. As
such result may not give an exact representation of the population
3. Shortage of time is also the reason for incomprehensiveness.
4. The views of the people are biased therefore it does not reflect true
picture.
DATA COLLECTION
CHAPTER-8
DATA COLLECTION
Data has been collected through two sources:1. Primary source
2. Secondary source
1. Primary data
Primary data has been collected by the method of survey.
Questionnaire was made and filled by general customers. The
questionnaire was prepared to understand the perception of customers
towards NESTLE.
2. Secondary data
Secondary data has been collected from Internet, books and
newspapers.
ANNEXURE
CHAPTER-9
ANNEXURE
Name: ______________________________________________
Gender: o Male
o Female
Age group:o Younger than 25
o Between 25-30
o Elder than 30
Profession: -
_____________________
Have you heard of Nestle?

Yes
No
Have you tried Nestle products?

Yes
No
You prefer to buy nestle product?
Agree
Neither agree not disagree
Strongly disagree
Strongly agree
What motivates you to shop nestle product?

Advertisement
Quality and branded products
5 Which of the following brands of Nestle can you recall?
Kit Kat (Chocolate)

Nescafe (Coffee)
Milo (Health Drink)
Maggi (Food)
How frequently do you use Nestle products?
Daily
Monthly
Weekly
2-3 times in a week
7 Which is your favourite Nestle brand?
Kit Kat (Chocolate)

Nescafe (Coffee)
Milo (Health Drink)
Maggi (Food)
8 Why is it your favourite brand?

Its good for my health
Its tasty
Because of quality
How satisfied are you OVERALL with Nestle?

Very satisfied
Quite satisfied
Dissatisfied
Neither satisfied nor dissatisfied
10 How satisfied are you with the QUALITY of Nestle products?
Very satisfied
Quite satisfied
Dissatisfied
11 How satisfied are you with the PACKAGING of Nestle products?
12
Very satisfied
Quite satisfied
Dissatisfied
How satisfied are you with the PRICING of Nestle products?
Very satisfied
Quite satisfied
Slightly dissatisfied
Thank you for your time and valuable feedback. I

sincerely appreciate your opinion.
CONCLUSION
CHAPTER-10
CONCLUSION
From this project I can conclude that customers are overall satisfied with
Nestle products.
Advertisement plays an important role in achieving growth in sales of

product and services. Effective advertising refers to informing the public
about the right product at the right time through the right medium. The
right media selection is the crux of the success of the entire advertising
campaign. The medium that could become the biggest thing in
advertising since TV- the cell-phone. With more than two billion users
around the world, the potential reach alone has advertisers drooling.
Advertising, in the real world, does its work in marvellously
contradictory ways.
Advertising works on the consumer, to change consumer purchasing.
Advertising works indirectly. Advertising changes attitudes; it makes
people feel more favourably disposed toward a brand. The sale is made in
the store, but the buy is in the mind. Advertising works by conversion, by
changing brand preference. Advertising is a form of salesmanship.
.
BIBLIOGRAPHY
CHAPTER -11
BIBLIOGRAPHY
BOOKS REFERED:
1. Marketing management (14th addition) by Philip Kotler
2. Research methodology (2nd edition) by C R Kothari
WEBSITES:
1. http://www.wikipedia.com
2. http://www.scholars.google.com
3. http://www.scribd.com
4. http://www.nestle.com
SEARCH ENGINE:
www.google.com

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Tirpude Institute Of Management Education

Tirpude Institute of Management Education, Nagpur