A Study On Marketing Mix of Nestle Product

A STUDY ON MARKETING MIX OF NESTLE PRODUCT 2020
EXECUTIVE SUMMARY
A STUDY ON MARKETING MIX OF NESTLE PRODUCT
This study deals with marketing mix of Nestle product. This project report consists
of 5 different chapters. The report begins with introduction and review of literature of nestle
product.
The second chapter deals with research objectives and methodology to include:
objectives of the study, scope of the study, usefulness of the study, limitations of the study,
methodology of the research to explain how the study is carried out, use of primary and
secondary data, uses of abbreviations.
The third chapter deals with Interpretation of data which deals with Preparation of
Percentage and chi square Tools.
The fourth chapter deals with Findings and Suggestions of the study which involves
various findings from the analysed data and suggestions for improvement of Nestle Product.
The fifth chapter deals with Conclusion of the study and Annexure such as
questionnaire. I hope this project will be extremely useful for those who meant Constructive
and healthy suggestions for improvement of the Nestle Product.
SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 1

CHAPTER – 1
INTRODUCTION AND LITERATURE REVIEW

INTRODUCTION
Nestlé was founded in 1866 by Henri Nestlé and is today the world's biggest food
and beverage company. Sales at the end of 2005 were CHF 91 b n, with a net profit of CHF 8
bn. Nestlé 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 Nestlé began in Switzerland in
1867 when Henri Nestlé, the pharmacist, launched his product Farine Lactée Nestlé, 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 Nestlé’s profile. Since it began over 130 years ago, Nestlé’s success
with product innovations and business acquisitions has turned it into the largest Food Company
in the world. As the years have passed, the Nestlé family has grown to include chocolates,
soups, coffee, cereals, frozen products, yoghurts, mineral water and other food products.
Beginning in the 70s, Nestlé has continued to expand its product portfolio to include pet foods,
pharmaceutical products and cosmetics too.
Today, Nestlé markets a great number of products, all with one thing in common: the
high quality for which Nestlé has become renowned throughout the world The Company's
strategy is guided by several fundamental principles. Nestlé'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 Nestlé in each of the countries where Nestlé sell
products. Nestlé 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.
'centralize what you must, decentralize what you can'. Nestlé 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. Nestlé
believes that they should think about their organizations globally but they deal with people by
interacting with them locally. “Thinking globally - acting locally”

MARKETING MIX OF NESTLE
The Marketing mix of Nestle discusses the 4P’s of one of the strongest FMCG companies of
the world. The Nestle marketing mix shows Nestle has a strong product line which boosts its
marketing mix. Below are the products, price, place and promotions of Nestle.
Products in the Marketing mix of Nestle
There are 4 different strategic business units within Nestle which are used to manage various
food product.
Beverages – One of the most known coffee brands Nescafe, belongs to the house of Nestle and
is one of the cash cows for Nestle. However, it is not the biggest fund cow. Nestle has a
worldwide distribution and has many different variants. Looking at India, nestle has also
launched Nestea.
Milk and Milk products – Nestle every day, nestle slim and Nestle Milk maid are some of the
milk and milk-based products from the house of Nestle.
Prepared dishes and cooking aides – Nestle has a third category of products which comes into
prepared dishes and cooking aides. The major cash cow of Nestle lies in this segment, which
is Maggi Noodles. Probably one of the most widely sold ready to cook noodle brands is Maggi.
Maggi has a fantastic taste and quality. Thus, it was not a surprise, that Nestle expanded the
Maggi brand to create an umbrella of different products like Maggi pasta, Maggi sauce, Maggi
cubes etc. The Maggi range contributes vastly to the bottom line of Nestle.
Chocolates – Nestle has some popular chocolate products, most popular being Nestle KitKat,
Munch, Milky bar, Eclairs and Polo. The newly introduced Alpino is targeting the gifting
segment in response to various chocolates like Dairy milk and Bournville by Cadbury. The
chocolates segment of Nestle is a star, where the competition is high and the expense is high
but at the same time the market size is huge as well.
As we can see, two major brands of Nestle are a very high contributor to its Brand equity –
Nescafe and Maggi. These are two brands sold across India in small as well as big shops and
super markets. There have been many competitors for these products, like Bru for Nescafe and
Top ramen and SunFest Yippie against Maggi.

Price in the Marketing mix of Nestle
The price is dependent on the market of each individual products. For example, Nescafe and
Maggi being the clear leaders are priced with higher margins for the company as compared to
competition. This is because the product quality is good enough and a bit of skimming price
will not cause the customer to switch brands.
The strength of pricing for Nestle comes from its packaging or consumption-based pricing. For
Nescafe as well as Maggi, nestle offers a lot of sizes and package options. In supermarkets,
you can even find a 16 packet Maggi whereas in small retail shops, you can find 5 Rs Maggi.
Thus, with the variety available, customer can make his own choice based on his consumption.
In other products like KitKat and Munch, due to tough competition from other companies,
nestle offers competitive pricing. You will find that nestle will be similar priced to many of
Cadbury’s Products in the chocolate segment.
Place in the Marketing mix of Nestle
Nestle follows the FMCG strategy of distribution which involves breaking the bulk. The typical
distribution strategy of Nestle is as follows.
Manufacturing >> C & F agent >> Distributors >> Retailers >> Consumer
Manufacturing >> Bulk buyers >> Consumer
These are the two different forms of distribution which Nestle has. It is typical of any FMCG
company. However, the Nestle channel is known to be strong with a good marketing and sales
network for channel distribution.
On top of it, nestle regularly introduces trade discounts and various tactics to keep the channel
motivated. The major challenge is in the distribution of Maggi which is the most in-demand
product along with Nescafe. Due to these two products, nestle is able to drive other products
in the market as well. Thus, on purchase of one weak product, the distributor might get a
discount on the stronger product or vice versa.

Promotions in the Marketing mix of Nestle
One of the most widely known tunes is the Nescafe tune. It was one of the best advertising
campaigns and was launched at least 2 decades back. However, that campaign brought Nescafe
strongly in the market.
On the other hand, Nestle’s brand was pushed by the excellent product quality of Maggi and
the witty and innovative campaigns of Maggi. Where Nescafe focuses on value and the good
things in life, Maggi focuses on moments you had with your Maggi. The recent campaign was
completely focused on your Maggi story, where people had to come out with various innovative
ways that they had their Maggi.
Promotions for other products too is done smartly. KitKat focuses on “Take a break” and has
done some good marketing for the same. KitKats website too is very innovative and shows
nothing but asks the visitor to take a break and have a KitKat. The major push expected of a
FMCG company is in sales promotions at the ground level. This is where Nestle really rocks.
Nestle focuses on its strength which is Maggi, Nescafe and KitKat which are the most promoted
brands in the market on ground level.
Besides this, nestle regularly uses TVC’s and ATL marketing. It is also present online through
some smart creative. Overall, nestle is a brand which has strong products as well as strong
marketing, and hence the brand has a very high brand recall value.
We hope that Nestle keeps bringing in good products and keeps maintaining the quality of the
products it already has.
REVIEW OF LITERATURE
Paul Rozin (1991) examined that Chocolate is the most craved food among females, and is
craved by almost half of the female sample (in both age groups). Although this craving is
related to a sweet craving, it cannot be accounted for as a craving for sweets. About half of the
female cravers show a very well-defined craving peak for chocolate in the premenstrual period,
beginning from a few days before the onset of menses and extending into the first few days of
menses. There is not a significant relation in chocolate craving or liking between parents and
their children.

Sarah Hagget (1994) examined that a controversial, government endorsed campaign to tackle
obesity by encouraging children to exchange chocolate bar wrappers for sports equipment. A
company like Cadbury is capable of delivering 12 million messages into the marketplace and
engaging young people in positive dialogue. Under the scheme, school-children get “free”
equipment when they collect tokens from Cadbury chocolate bars. It has been calculated that
children need to collect tokens from 5440 chocolate bars for a net and set of volleyball posts.
Lipp (1998) examined that his work reviews the literature on the compositional data of
vegetable fats used or proposed as alternatives to cocoa butter in chocolate and confectionery
products. Cocoa butter is the only continuous phase in chocolate, thus responsible for the
dispersion of all other constituents and for the physical behaviour of chocolate. Unique to cocoa
butter is its brittleness at room temperature and its quick and complete melting at body
temperature. There were, and are, strong efforts to replace cocoa butter in part for chocolate
production for technological and economic reasons.
Philip K. Wilson (1999) examined that in 1753, the noted oncologist, Carl Linnaeus, named it
Theobroma cacao, the food of the Gods. Two and a half centuries later, Joanne Harris
emphasized this exotic’s erotic sensations in her award-winning fiction debut, Chocolate. For
millennia, healers have touted its myriad medicinal, yet mystical, abilities. By the 1950s,
chocolate, what had long been used as a drug, a food and as a source of currency, was being
marketed merely as a pleasure-filled snack. Over the next half century, the craving to carve out
chocolate’s healthy, medicinal qualities resurged.
Jan Wollgast (2000) examined that Cocoa beans are rich in polyphenols, particularly catechins
and proanthocyanins. However, a sharp decrease in quantity occurs during fermentation and
drying of cocoa beans and further retention has been reported during roasting. Characterisation
and in particular quantification of polyphenols in chocolate has only been developed relatively
recently. This work reviews further on the literature on the available methodology for analysis,
quantification, isolation, purification, and structure elucidation of polyphenols in cocoa
components and other commodities.

“Indian Food and Beverages Forecast” published by RNCOS (2007) A series of recent
studies has indicated that, India’s food –processing sector has undergone significant changes
over the last six to seven years. The type, variety, quality and presentation of products have all
improved, mainly as a result of economic liberation. The report augurs that the Indian food
processing industry would witness a CAGR growth of 15% for the period spanning from 2007
to 2011. Many countries are increasingly eying upon India for food. Recently, India has
determined to export 6000 metric tons of rice to Sri Lanka.
Jasdeep Singh Kandhari (2008) investigated that “A study of consumer preference towards
Nestle chocolates” analysed the major dimensions which affects the preference of the
consumers towards a particular brand like advertising strategies, packaging strategies, different
forms of the chocolate, etc. and it also includes responses of various respondents by conducting
a survey through questionnaires.
Krishnakumari and Das (2012) investigated that employed mothers spend more on
commercial body food which are readily available and nutritious for the cost they bear. the
improper timing, quality and quantity of weaning food are the cause of a high rate of
malnutrition in the society.
Shendge (2012) examined that “A Consumer Preference towards Nestle Chocolates with
Special Reference to Navi Peth Area in Solapur City” viewed that Chocolate is liked and eaten
by all the people of all age groups.
Syeda Quratulain Kazmi (2012) examined that Customer perception is basically an organism
which describes an individual’s perceived image which he expects from any product or service.
Observation can be changed or influenced by numerous factors behaviour, children who are in
their teenage prefer food with respect to food nutritious as well as three factors plays a very
important role, home environment, school and social gatherings.

Anna Kuikka and Tommi Laukkanen (2012) examined that "Brand loyalty and the role of
hedonic value” The objective of this paper is to explore the antecedents of brand loyalty in the
chocolate market. A large sample of 808 effective responses were collected through an online
questionnaire that was posted on the Facebook wall of a Finnish confectionery company. A
model of four antecedents (brand satisfaction, brand equity, brand value, brand trust) leading
to two aspects of brand loyalty (behavioural loyalty, attitudinal loyalty) was constructed. The
moderating effect of consumers' hedonic value in the model was tested. Confirmatory factor
analysis was used to validate the constructs and multigroup structural equation modelling was
used to test the hypotheses.
B.Sugandhi Shanmugapriya and M. Suganya (2015) examined that Chocolate are replacing
the traditional taste of Indian sweets. They conclude that chocolate company should
promotional activities to increase their demand along with introducing new flavor in chocolate.
Tanu Payal (2015) examined that “A study on consumer preference towards Nestle chocolates
in Dwarka of West Delhi” viewed that consumer is the real king of the market and large market
share can be captured by satisfying and fulfilling the customer needs.
Pednekar, Achut P. (2015) examined that Customer satisfaction is important for the company
to build the sales and value of the brand. The objectives and the purpose of the study were
explained to the respondents. Both primary and secondary data were collected to realize the
objectives of the study. Due to limitation of time, only 100 respondents were selected from
Mapusa area on the basis of convenient sampling. In order to make an in-depth study,
secondary data has been collected from journals, publications and news, internet and
magazines. Necessary statistical tools have been used and the collected data were then
consolidated, tabulated and analysed. The results and discussions have been presented under
various head. The products covered under the study are Toothpaste, Soap, Shampoo,
Detergents, Utensil cleaner, Face cream, Milk, Soft drink, Coffee, Edible Oil, Noodle, Spices,
Talcum powder, Hair oil, Deo's, Tea Powder, Biscuits, Pickles, Chips, Chocolates, Ice cream

and Ketchup. The study concludes that most of the products are purchased on the basis of
quality, price, brand status, identity, services, packaging, credibility and self-esteem. They get
attracted to the many variables related to the utility and the price value.
Udgam vigyati (2015) examined that the brand Maggi is strongly established as a family brand
with crisp brand equity in Indian market. The brand has always been known to have the first
mover’s advantage in the portfolios like noodles, ketchups, soups, sauces, etc. The parent brand
Nestle has been the strong symbol of family, shelter and warmth which brand Maggi has
innovatively capitalised.
K.Raja Rajeswari and S.Kirthika (2016) examined that Nestle is a multinational company.
Today the world’s leading Food Company, with a 140 years history and operations in virtually
every country in the world. Nestle has grown to become the world’s largest and most diversified
food company, and is about twice the size of its nearest competitor in the food and beverage
sector. The company’s export portfolio comprises branded milk product and nutrition,
beverages, Maggi, chocolates. While other companies compete with nestle in each of the
product segment, nestle pervades all these segments.
N.Vijayanand and P.Thillairajan (2018) examined that a model review of 200 respondents
was assumed to locate out the inclination of NESTLE Products in Chennai city. The study
mostly determined on universal price stage, superiority & customer anticipation overall
fulfilment about NESTLE Product, universal attentiveness and customer inclinations of
NESTLE.
S.Shanthi (2018) examined that Chocolate is liked and eaten by all age group of people. It may
be in a form of hard, nuttiest, crunchy or chew. It is available in small, big and family pack.
Chocolate has many shapes like as rectangle, sphere or a brick shape. It tastes like sweet and
bitter. Some people have chocolate in a glass of cold coffee, or in the form of a toffee. Some
people eat chocolate when they are sad; some relish hem when they are happy. But I feel, to
have chocolates we don't need a reason, because we can have it anytime, any season.

Dr.Purvi Derashri and Mr.Dignesh S.Panchasara (2018) investigated that Consumers of

nestle product refers to the level of happiness or dissatisfaction with product and brand. The
researchers have taken the sample size of 100 respondents of students, children, businessmen,
servicemen and housewives because majority these people consume nestle product in the
market. The main objective of the research is to study about consumer satisfaction of nestle
product with understanding the consumer profile, understanding the effectiveness of marketing
strategy and examine the loyalty of consumers. The research design chosen is descriptive in
nature.
P.Maria , Dr. V.Sangeetha and Dr.G.paulraj (2019) examined that In the present days there
are a large number of domestic and global players in the marketplace. The key to achieve
success is to retain the customers by providing the things which they expect. With the presence
of advanced technology, the consumers’ expectations have ascended to a very high standard
and it becomes very daring for the marketers to achieve customer satisfaction. Customer
attrition is another evident challenge facing every industry. In order to overcome this trend, the
company has to strengthen its delivery system in both pre and post purchase services to a
customer resulting to sustain55TT55 their repeated purchases and build “Brand Loyalty”.
Nestle is one among a popular brand which has been serving this world for over one hundred
and thirty years. It has differentiated itself through its high-quality product mix and positioned
itself as health and Nutrition company targeting the health-conscious people throughout the
world. Moreover, it also deals with juices, chocolates, prepared food like noodles, baby food,
infant formula milk and breakfast cereals in and extended to worldwide. Nestle is a low-cost
leader with its efficient operations. Branding creates emotional and cultural responses. As
consumers are bombarded with a variety of products to meet the same needs, branding provides
a way for consumers to reduce their time for decision-making. By considering only those
products that they feel are relevant to them or that have met their needs acceptably in the past.

CHAPTER - 2
OBJECTIVES AND METHODOLOGY

OBJECTIVE OF THE STUDY

 To study the consumer behaviour towards the product of Nestle.
 To analyse the factors influencing the buyer decision of the consumers.
 To determine the level of effectiveness of the advertisement.
 To study the level of satisfaction towards the nestle products.
SCOPE OF THE STUDY
 The study is to analyse the customers marketing mix of nestle product.

 The study analyses the buying behaviour and satisfaction towards the nestle products.
 The major factor identified for detailed study includes point of purchase of the
customer, sub brand selection, factors in purchase decision and spending pattern of the
customer.
USEFULNESS OF THE STUDY
 This study helps us to know more about the nestle products and their recent
developments.
 This study helps to know about the consumers behaviour on nestle products.
 This study helps to know about the frequency of purchases of nestle products by the
consumers and also helps to know about which sub brand of the nestle they prefer more.
LIMITATIONS OF THE STUDY
 Since the Sample size is limited to 104 numbers the findings cannot be generalized.
 Study is limited to a specific product, if many products were chosen there will be a clear
result.
 The analysis of the study is specific reference only to Coimbatore city, if analysis of
the study is done with any other city the preference of the consumer will differ.

RESEARCH METHODOLOGY
Two techniques were used for collection data; namely
 Primary data collection technique

 Secondary data collection technique
COLLECTION OF DATA:
The type of research methodology is descriptive and analytical. The data collected for the study
is primary data.
PRIMARY DATA:
The data has been collected through a well-structured questionnaire and having discussion with
sample respondents.
STUDY, POPULATION AND AREA:
The primary data was collected in Coimbatore city only because it is not feasible to collect the
data universally.
SAMPLE SIZE DETERMINATION:
Selecting an appropriate sample size is a critical aspect in research with particular reference to
this study. Since the Nestle using customers are so many, a sample of 104 was considered for
the purpose of this study. The simple random sample method has been used for customers of
the study.
POPULATION: Students
Sample size: 104

CHAPTER-3
INTERPRETATION OF DATA

DEFINITION:
Analysis is the process of breaking complex or substances into smaller parts to gain a better
understanding of it. The technique has been applied in the study of mathematics and logic since
before Aristotle, though analysis as a formal concept is a relatively recent development. It is
the process of planning data in ordered form, combing them with existing information’s and
extracting from them. Interpretation is the process of drawing conclusions from the gathered
data in a study.
TOOLS:
 PERCENTAGE ANALYSIS
 CHI-SQUARE ANALYSIS
PERCENTAGE ANALYSIS:
Percentage analysis refers to the special kind of ratio and is used in making comparison
between two or more services of data and is used to describe relationship.
Percentage is used to compare the relative terms and the distribution at the two or
more services of data.
PERCENTAGE ANALYSIS = NO.OF. RESPONDENTS
-------------------------------- X 100
TOTAL SAMPLE SIZE

FREQUENCY ANALYSIS
TABLE NO 1:
Table showing the gender of the respondents:
S.NO GENDER FREQUENCY PERCENTAGE
1 MALE 45 43.27
2 FEMALE 59 56.73
TOTAL 104 100
INTERPRETATION
The above table shows about the gender of the respondents were out of 104 respondents.
43.27% of the respondent belonging to male category and 56.73% of the respondents belonging
to the female category. Considering both, the female respondents are more than the male
respondents.
GENDER
male, 43%
male
female
female, 57%

TABLE NO 2:
The table showing the age of the respondents:
S.NO AGE FREQUENCY PERCENTAGE
1 0-15 3 2.88
2 16-25 100 96.15
3 26-35 0 0.00
4 ABOVE 35 1 0.96
TOTAL 104 100
INTERPRETATION
The above table shows about the age of the respondents were out of 104 respondents. 2.88%
are from the age group of 0-15, 96.15% are from the age group of 16-25, 0.00% are from the
age group of 26-35 and 0.96% are from the age group of above 35. It shows that most of the
respondents are from the age group of 16-25.
AGE
ABOVE 35
26-35
16-25
0-15
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

TABLE NO 3:
The table showing the occupation of the respondents:
S.NO OCCUPATION FREQUENCY PERCENTAGE
1 SSLC 3 2.88
2 HSC 2 1.92
3 UG 89 85.57
4 PG 7 6.73
5 SELF EMPLOYED 2 1.92
6 OTHERS 1 0.96
TOTAL 104 100
INTERPRETATION
The above table shows about the occupation of the respondents were out of 104 respondents
2.88% were pursuing their SSLC, 1.92% were pursuing their HSC, 85.57% were pursuing their
UG, 6.73% were pursuing their PG, 1.92% are self-employed and 0.96% of them are others. It
shows that most of the respondents were pursuing their UG.
OCCUPATION
1% 2%
7% 2%
3%
SSLC
HSC
UG
PG
SELF EMPLOYED
OTHERS
86%

TABLE NO 4:
The table showing the marital status of the respondents:
S.NO MARITAL FREQUENCY PERCENTAGE
STATUS
1 SINGLE 102 98.08
2 MARRIED 2 1.92
TOTAL 104 100
INTERPRETATION
The table shows about the Martial status of the respondents were out of 104 respondents
98.08% of them are single, 1.92% of them are married. Hence the Unmarried respondents are
more than the married respondents.
MARITAL STATUS
2%
SINGLE
MARRIED
98%

TABLE NO 5:
The table shows the monthly income of the respondents:
S.NO MONTHLY FREQUENCY PERCENTAGE

INCOME
1 BELOW 15000 74 71.15
2 15000-30000 14 13.46
3 30000-40000 9 8.65
4 ABOVE 50000 7 6.73
TOTAL 104 100
INTERPRETATION
The above table shows about the monthly income of the respondents. Out of 104 respondents
71.15% are earning below 15000, 13.46% are earning from 15000-30000, 8.65% are earning
from 30000-40000 and 6.73% are earning above 50000. It shows that most of the respondents
are earning from Below 15000.
MONTHLY INCOME
71.15%
13.46%
8.65%
BELOW 15000 15000-30000 30000-40000 6.73%
ABOVE 50000

TABLE NO 6:
The following table shows the location of the respondents:
S. NO LOCATION FREQUENCY PERCENTAGE
1 URBAN 73 70.19
2 SEMI URBAN 15 14.42
3 RURAL 16 15.38
TOTAL 104 100
INTERPRETATION
The above table shows about the place of living of the respondents. Out of 104 respondents
70.19% are from urban area, 14.42% are from semi urban area and 15.38% are from rural area.
It shows that most of the respondents are from urban area.
LOCATION
15%
URBAN
14%
SEMI URBAN
RURAL
70%

TABLE NO 7:
The following table shows about which type of product they prefer to purchase:
S.NO PREFERED FREQUENCY PERCENTAGE

PRODUCT
1 HEALTH CARE 61 58.65
NUTRITION
2 SKIN CARE 33 31.73
3 PET CARE 8 7.69
4 OTHERS 2 1.92
TOTAL 104 100
INTERPRETATION
The above table shows about which type of product they prefer to purchase. Out of 104
respondents 58.65% prefers health care nutrition, 31.73% prefers skin care, 7.69% prefers pet
care and 1.92% of them are others. It shows that most of the respondents prefers health care
nutrition.

TABLE NO 8:
The following table shows about how much they like the nestle product:
S.NO LIKE NESTLE FREQUENCY PERCENTAGE
PRODUCTS
1 YES, VERY MUCH 52 50.00
2 YES, SOMEWHAT 46 44.23
3 NO, RATHER NOT 1 0.96
4 NO, NOT AT ALL 5 4.81
TOTAL 104 100
INTERPRETATION
The above table shows about how much they like the nestle products. Out of 104 respondents
50.00% says yes, very much, 44.23% says yes, somewhat, 0.96% says no, rather not, 4.81%
says no, not at all. It shows that most of the respondents likes the nestle products very much.

TABLE NO 9:
The following table shows about the reason for purchase of nestle product:
S.NO REASON FOR FREQUENCY PERCENTAGE
PURCHASE
1 QUALITY 85 81.73
2 PRICE 9 8.65
3 IMAGE 9 8.65
4 OTHERS 1 0.96
TOTAL 104 100
INTERPRETATION
The above table shows about the reason for purchase of nestle products. Out of 104 respondents
81.73% says quality, 8.65% says price, 8.65% says image, 0.96% of them are others. It shows
that most of the respondents’ purchase nestle products because of its quality.

TABLE NO 10:
The following table shows about the mode of advertisement influence to buy nestle product:
S.NO INFLUENCE TO FREQUENCY PERCENTAGE
BUY NESTLE
PRODUCTS
1 NEWSPAPER 8 7.69
2 TELEVISION 92 88.46
3 MAGAZINE 4 3.85
TOTAL 104 100
INTERPRETATION
The above table shows about the mode of advertisement influence to buy nestle products. Out
of 104 respondents 7.69% says newspaper, 88.46% says television, 3.85% says magazine. It
shows that most of the respondents says television is the reason to influence to buy nestle
products.

TABLE NO 11:
The following table shows about the frequency of purchase of nestle product:
S.NO FREQUENCY OF FREQUENCY PERCENTAGE
PURCHASE
1 MONTHLY 59 56.73
2 QUARTERLY 25 24.04
3 HALF YEARLY 12 12.50
4 YEARLY 7 6.73
TOTAL 104 100
INTERPRETATION
The above table shows about the frequency of purchase of nestle products. Out of 104
respondents 56.73% purchase monthly, 24.04% purchase quarterly, 12.50% purchase half
yearly and 6.73% purchase yearly. It shows that most of the respondents buy nestle products
monthly.

TABLE NO 12:
The following table shows about the usage of nestle product:
S.NO USAGE OF FREQUENCY PERCENTAGE
NESTLE
PRODUCT
1 0-6 MONTHS 22 21.15
2 6 MONTHS-1 16 15.38
YEAR
3 1-2 YEARS 11 10.58
4 MORE THAN 2 55 52.88

YEARS
TOTAL 104 100
INTERPRETATION
The above table shows about the usage of nestle products. Out of 104 respondents 21.15%
using for 0-6 months, 15.38% using for 6 moths-1 year, 10.58% using for 1-2 years and 52.88%
using for more than 2 years. It shows that most of the respondents are using nestle products for
more than 2 years.

TABLE NO 13:
The following table shows about the continuation of usage of nestle product:
S.NO CONTINUE TO FREQUENCY PERCENTAGE
USE NESTLE
PRODUCT
1 STRONGLY 29 27.88
AGREE
2 AGREE 49 47.12
3 NEUTRAL 24 23.08
4 DISAGREE 2 1.92
5 STRONGLY 0 0.00
DISAGREE
TOTAL 104 100
INTERPRETATION
The above table shows about the continuation of usage of nestle products. Out of 104
respondents 27.88% says strongly agree, 47.12% says agree, 23.08% says neutral and 1.92%
says disagree. It shows that most of the respondents are agree to use nestle products.

TABLE NO 14:
The following table shows about the purchase of nestle product again:
S.NO PURCHASE OF FREQUENCY PERCENTAGE

PRODUCT
AGAIN
1 DEFINITELY 48 46.15
2 PROBABLY 44 42.31
3 MIGHT NOT 2 1.92
4 NOT SURE 10 9.62
TOTAL 104 100
INTERPRETATION
The above table shows about the purchase of nestle products again. Out of 104 respondents
46.15% says definitely, 42.31% says probably, 1.92% says not sure and 9.62% says not sure.
It shows that most of the respondents will definitely purchase nestle products again.

TABLE NO 15:
The following table shows about what the respondents thinks about the price of the nestle
product:
S.NO PRICE OF THE FREQUENCY PERCENTAGE
NESTLE
PRODUCTS
1 VERY 10 9.62
REASONABLE
2 REASONABLE 66 63.46
3 AVERAGE 26 25.00
4 HIGH 2 1.92
TOTAL 104 100
INTERPRETATION
The above table shows about what the respondents thinks about the price of the nestle product.
Out of 104 respondents 9.62% says very reasonable, 63.46% says reasonable, 25.00% says
average and 1.92% says high. It shows that most of the respondents says that the price of the
nestle products are reasonable.

TABLE NO 16:
The following table shows about recommendation of nestle product:
S.NO RECOMMENDATION FREQUENCY PERCENTAGE
OF PRODUCTS
1 DEFINITELY 40 38.46
2 PROBABLY 45 43.27
3 MIGHT NOT 14 13.46
4 NOT SURE 5 4.81
TOTAL 104 100
INTERPRETATION
The above table shows about recommendation of nestle products. Out of 104 respondents
38.46% says definitely, 43.27% says probably, 13.46% says might not and 4.81% says not sure.
It shows that most of the respondents will probably recommend the nestle products to others.

TABLE NO 17:
The following table shows about what the respondents thinks about the nestle product when it
is compared with the other competitors:
S.NO NESTLE FREQUENCY PERCENTAGE
PRODUCTS
COMPARED
WITH OTHER
COMPETITORS
1 MUCH BETTER 22 21.15
2 BETTER 66 63.46
3 SAME 15 14.42
4 WORSE 1 0.96
TOTAL 100 104
INTERPRETATION
The above table shows about what the respondents thinks about the nestle product when it is
compared with the other competitors. Out of 104 respondents 21.15% says much better,
63.46% says better, 14.42% says same and 0.96% says worse. It shows that most of the
respondents says nestle product is better when it compared with other competitors.

TABLE NO 18:
The following table shows about which sub brand they prefer more:
S.NO SUB BRAND FREQUENCY PERCENTAGE
PREFER MORE
1 NESCAFE 19 18.27
2 MAGGIE 31 29.81
3 CHOCOLATE 41 39.42
4 MILKMAID 13 12.50
TOTAL 104 100
INTERPRETATION
The above table shows about which sub brand they prefer more. Out of 104 respondents
18.27% says Nescafe, 29.81% says Maggie, 39.42% says chocolate and 12.50% says milkmaid.
It shows that most of the respondents prefer chocolate.

TABLE NO 19:
The following table shows about how many brands they know:
S.NO HOW MANY FREQUENCY PERCENTAGE

BRANDS THEY
KNOW
1 1-5 62 59.62
2 6-10 29 27.88
3 11-20 9 8.65
4 MORE THAN 20 4 3.85
TOTAL 104 100
INTERPRETATION
The above table shows about how many brands they know. Out of 104 respondents 59.62%
says 1-5, 27.88% says 6-10, 8.65% says 11-20 and 3.85% says more than 20. It shows that
most of the respondents knows 1-5 nestle products.

TABLE NO 20:
The following table shows about where they purchase nestle product:
S.NO PURCHASE FREQUENCY PERCENTAGE
NESTLE
PRODUCT
1 DEPARTMENTAL 72 69.23
STORE
2 GROCERY SHOP 27 25.96
3 ONLINE 5 4.81
PURCHASE
4 OTHERS 0 0
TOTAL 104 100
INTERPRETATION
The above table shows about where they purchase nestle products. Out of 104 respondents
69.23% says departmental store, 25.96% says grocery shop, 4.81% says online purchase. It
shows that most of the respondents will purchase nestle products from departmental store.

TABLE NO 21:
The following table shows about how much the respondents are satisfied with nestle
products:
S.NO SATISFACTION FREQUENCY PERCENTAGE
WITH NESTLE
PRODUCT
1 VERY SATISFIED 29 25.00
2 SATISFIED 52 50.00
3 NEUTRAL 22 21.15
4 DISSATISFIED 3 2.88
5 VERY 1 0.96
DISSATISFIED
TOTAL 104 100
INTERPRETATION
The above table shows about how much the respondents are satisfied with nestle products. Out
of 104 respondents 25.00% are very satisfied, 50.00% are satisfied, 21.15% are neutral, 2.88%
are dissatisfied and 0.96% are very dissatisfied. It shows that most of the respondents are
satisfied with the nestle products.

CHI-SQUARED TEST:
A chi-squared test, also referred to as chi-square test is any statistical hypothesis test in
which the sampling distribution of the test statistic is a chi-squared distribution when the null
hypothesis is true. The chi-square test was used in the hypothesis. Equal number of respondents
service highly satisfied, satisfied, not satisfied, highly not satisfied.
The formula for chi-square:

(O-E) 2
chi-square = ----------
E
Where,
O = Observed Frequency E = Expected Frequency
After finding the value of chi- square the table value is to be calculated.
Table value = (R-1) (C-1)
Where,
R = Number of Rows C = Number of Columns
CHI SQUARE TEST:
Ho – Null hypothesis - There is no significant relationship between age and the factors to be
considered while purchasing through digital marketing.
H1- Alternate hypothesis – There is significant relationship between age and the factors to
be considered while purchasing through digital marketing.

Table showing the comparison of age and advertisement influence to buy a nestle products.
FACTOR NEWSPAPER TELEVISION MAGAZINE OTHERS TOTAL
AGE
0-15 0 3 0 0 3
16-25 8 88 4 0 100
26-35 0 0 0 0 0
ABOVE 35 0 1 0 0 1
8 92 4 0 104
OBSERVATION EXPECTED (O-E)2 (O-E)2

VALUE E
0 0.23 0.05 0.22
3 2.65 0.12 0.05
0 0.12 0.01 0.08
0 0 0 0
8 7.7 0.09 0.01
88 88.5 0.25 0.003
4 3.8 0.04 0.01
0 0 0 0
0 0 0 0

0 0 0 0
0 0 0 0
0 0 0 0
0 0.08 0.006 0.075
1 0.88 0.01 0.01
0 0.04 0.002 0.05
0 0 0 0
0.508
Degree of freedom
(R-1) (C-1)
(4-1) (4-1)
(3) (3)
=9
LEVEL OF SIGNIFICANCE= 5% OR 0.05%
CHI SQUARE TEST

CRITICAL VALUE CALCULATED VALUE
16.92 0.508
INTERPRETATION
From the table values with the degree of freedom at 9 and the level of significance at 0.05, the
critical value at 16.92 which is higher than the table value. Hence, Null Hypothesis is accepted
and there is significant relationship between age and advertisement influence to buy a nestle
products.

Table showing the comparison of gender and recommendation of nestle products.
FACTOR DEFINITELY PROBABLY MIGHT NOT TOTAL

NOT SURE
GENDER
MALE 17 17 8 3 45
FEMALE 23 28 6 2 59
40 45 14 5 104
OBSERVATION EXPECTED (O-E)2 (O-E)2

VALUE E
17 17.3 0.09 0.005
17 19.4 5.8 0.3
8 6.1 3.61 0.6
3 2.2 0.64 0.3
23 22.7 0.09 0.004
28 25.5 6.25 0.24
6 8 4 0.5
2 2.8 0.64 0.23
2.179

Degree of freedom
(R-1) (C-1)
(2-1) (4-1)
(1) (3)
=3
LEVEL OF SIGNIFICANCE= 5% OR 0.05%
CHI SQUARE TEST

CRITICAL VALUE CALCULATED VALUE
7.82 2.179
INTERPRETATION
From the table values with the degree of freedom at 3 and the level of significance at 0.05, the
critical value at 7.82 which is higher than the table value. Hence, Null Hypothesis is accepted
and there is significant relationship between gender and recommendation of nestle products.

CHAPTER-4
FINDINGS AND SUGGESTIONS

FINDINGS
PERCENTAGE ANALYSIS:
 Majority of the respondents are female respondents (56.27%)

 Respondents between the age of 16-25 are a greater number of users than the others
(96.15%)
 Respondents in the category of UG are more than the school students and other
respondents (83.65%)
 The single respondents are more than the married respondents (98.08%)
 Majority of the respondents have the monthly income of below 15000 (71.15%)
 Majority of the respondents are from urban area (70.19%)
 Majority of the respondents use health care nutrition products (58.65%)
 Most of the respondents like the nestle product very much (50.00%)
 Majority of the respondents will purchase nestle products because of its quality
(81.73%)
 Most of the respondents are influence to buy nestle products through television
(88.46%)
 Most of the respondents purchase the product monthly (56.73%)
 Majority of the respondents use this product for more than 2 years (52.88%)
 Majority of the respondents agree that they will continue in the nestle products
(47.12%)
 Majority of the respondents will definitely purchase the product again (46.15%)
 Majority of the respondents feel that the prices of the nestle products are reasonable
(63.46%)
 Majority of the respondents will probably recommend the nestle product to others
(43.27%)
 Majority of the respondents feel that the Nestle products are better when compared with
its competitors (63.46%)
 Majority of the respondents prefers chocolate from the nestle products (39.42%)
 Most of the respondents knows 1-5 nestle products (59.62%)
 Majority of the respondents purchase from departmental store (69.23%)
 Majority of the respondents were satisfied with nestle product (50.00%)

CHI- SQUARE ANALYSIS:
 From the table values with the degree of freedom at 9 and the level of significance at
0.05, the critical value at 16.92 which is higher than the table value. Hence, Null
Hypothesis is accepted and there is significant relationship between age and
advertisement influence to buy a nestle products.
 From the table values with the degree of freedom at 3 and the level of significance at
0.05, the critical value at 7.82 which is higher than the table value. Hence, Null
Hypothesis is accepted and there is significant relationship between gender and
recommendation of nestle products.
SUGESSTIONS:
 Advertisement through electronic media should be increased.

 Only few people prefer nestle products for its entire product. So, the company should
give preference to the consumers.
 The company should present the products in the manner that attracts the customers.
 Satisfaction level of the customers should be higher than the present scenario.
 Products can be advertised more in rural areas.
 Innovative methodology should be used in production.
 Price of the product can be reduced.
 The product can be presented in the market with an offer to attract the customer.
Focuses on customers are needed.

CONCLUSION:
From the results it was observed that few of the respondents were neither dissatisfied nor
highly dissatisfied towards few aspects, Flavours in the product, packing of the product, Life
of the product, Advertisement for the products. Few respondents feel that the varieties of Nestle
products were loss when compared to other products in the markets. Packing of the products
were a major concern which may get exposed during the time of care of self- life is another
concern where few customers complained that the product in different colours and the company
may give more importance. They may be given based on flavour of the product, different
colours in packing and advertisements which may attract more customers towards Nestle
products which may turn as a word of mouth for the product. It is concluded that almost all the
respondents have revealed that they have overall satisfaction for the nestle product. This shall
be maintained by overcoming few problems which reveals the negative aspects that required
to be reified by the product by implementing measures to achieve greater heights in the future.
Hence, nestle should create more awareness about its products to the people, and also nestle
should provide discounts and offers to increase the sales and also sales methodology should be
improved. Nestle is just not an FMCG line but a desire and a passion to give a value for money
product to consumers at large

BIBLIOGRAPHY
BOOKS:
Kothari C. R., Research Methodology- Methods and techniques, Second Edition, New Delhi;
Wishwa Prakashan, 2007
Dhilip Kotler, Marketing Management, Text Edition, New Delhi; Prentice Hall India, 1999
Ramaswamy V.S., and S. Namakumar, Marketing Management, Mac Milan publishing Co.
Ltd., II Edition, 1995
Rajan Saxena, Marketing Management, Tata Mc Graw Hill Publishing Co. Ltd. Third Edition.
Sharma D.p., Marketing research- sultan Chand and Sons Publishing, 1997
Helmut Maucher, French translation by Monique Thiollet, Maxima Ed., Paris, 1995
Jasdeer sing Kandhari, study of consumer preference towards nestle chocolate 2008
Grunert, sustainability in the foof sector: consumer behaviour perspective,2012
Shendge a comparative study of consumer preference towards nestle product vol.1 2012
Syed quratulain kazmi international journal of advancement in research & technology, vol.1
2012
Anna kuikka journal of product and brand management 2012
Sugandhishanmugapriya. B consumer preference towards nestle products, international journal

of commerce, business and management vol.5 2015
Payal, T., a study on consumer preference towards nestle chocolate 2015
Pednekar,achut p. counsumer satisfaction and its inference towards select fast moving
consumer goods, vol.6 2015
Udgam vigyati,volume 2,2015
K.Raja Rajeshwari,astudy on consumer behaviour towards nestle products,volume-6 2016
N.Vijayanand & P.Thillairajan, a study on consumers inclination towards nestle

products,volume5,2018
D.Shanthi a comparative study on consumer preference towards nestle, volume-6,2018

Dr.Purvi & dignesh S.Panchasara, study on consumer satisfaction: a study of nestle

products,volume-3,2018
P.Maria,V.Sangeetha,G.Paulraj., International journal of science,engineering and management

volume-3,2018
WEBSITES:
Www. Google .com
Www.Studymode.com
Www.canberratimes.com
Www.wikipedia.com
Www.slideshow.com
Www.scribd.com
Www.wikipedia.org
Www.cvent.com

QUESTIONNAIRE
1) Gender
A) Male
B) Female
2) Age
A) 0-15
B) 16- 25
C) 26-35
D) above 35
3) Occupation
A) SSLC
B) HSC
C) UG
D) PG
E) Self Employed
F) Others
4) Marital Status
A) single
B) married
5) Annual Income
A) below 15000
B) 15000-30000
C) 30000-40000
D) above 50000

6) Location
A) urban
B) semi urban
C) rural
7) what kind of product will you prefer to purchase?
A) health care nutrition
B) skin care
C) pet care
D) others
8) Do you like Nestlé products?
A) yes, very much
B) yes, somewhat
C) no, rather not
D) no, not at all
F) If not specify reason
E) if yes specify reason
9) which of the following reasons would you purchase Nestlé products for?
A) quality
B) price
C) image
D) others
10) which mode of advertisement influence you most to buy a Nestlé product?
A) newspaper
B) television

C) magazine
D) others
11) How frequently you purchase the Nestlé products?
A) monthly
B) quarterly
C) half yearly
D) yearly
12) From how long you are using Nestlé products?
A) 0-6 months
B) 6 months - 1 year
C) 1-2 years
D) more than 2 years
13) Will you continue to use the Nestlé products?
A) strongly agree
B) agree
C) neutral
D) disagree
E) strongly disagree
14) Will you purchase the Nestlé products again?
A) definitely
B) probably
C) might not
D) not sure

15) What do you think about the price of Nestlé products?
A) very reasonable
B) reasonable
C) average
D) high
16) Will you recommend the Nestlé products to others?
A) definitely
B) probably
C) might not
D) not sure
17) what do you think about the Nestlé products when you compare it with the other
competitors?
A) much better
B) better
C) same
D) worse
18) Which sub-brand of Nestlé products you have preferred more?
A) Nescafé
B) Maggie
C) chocolate
D) milkmaid

19) how many brands of Nestlé do you know?
A) 1-5
B) 6-10
C) 11-20
D) more than 20
20) where do you purchase Nestlé products?
A) Departmental store
B) grocery shop
C) online purchase
D) others
21) How satisfied are you with the Nestle products?
A) very satisfied
B) satisfied
C) neutral
E) Unsatisfied
F) very unsatisfied
22) Rate the nesle products out of 5
A) 5
B) 4
C) 3
D) 2
E) 1

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A STUDY ON MARKETING MIX OF NESTLE PRODUCT 2020

A STUDY ON MARKETING MIX OF NESTLE PRODUCT

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 1

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 2

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 3

MARKETING MIX OF NESTLE

Products in the Marketing mix of Nestle

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 4

Price in the Marketing mix of Nestle

Place in the Marketing mix of Nestle

Manufacturing >> Bulk buyers >> Consumer

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 5

Promotions in the Marketing mix of Nestle

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 6

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 7

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 8

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 9

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 10

Dr.Purvi Derashri and Mr.Dignesh S.Panchasara (2018) investigated that Consumers of

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 11

OBJECTIVES AND METHODOLOGY

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 12

OBJECTIVE OF THE STUDY

 To analyse the factors influencing the buyer decision of the consumers.

 To determine the level of effectiveness of the advertisement.

 To study the level of satisfaction towards the nestle products.

SCOPE OF THE STUDY

 The study is to analyse the customers marketing mix of nestle product.

USEFULNESS OF THE STUDY

LIMITATIONS OF THE STUDY

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 13

Two techniques were used for collection data; namely

 Primary data collection technique

STUDY, POPULATION AND AREA:

SAMPLE SIZE DETERMINATION:

Sample size: 104

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 14

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 15

PERCENTAGE ANALYSIS = NO.OF. RESPONDENTS

TOTAL SAMPLE SIZE

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 16

TOTAL 104 100

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 17

2 16-25 100 96.15

TOTAL 104 100

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 18

5 SELF EMPLOYED 2 1.92

TOTAL 104 100

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 19

TOTAL 104 100

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 20

S.NO MONTHLY FREQUENCY PERCENTAGE

4 ABOVE 50000 7 6.73

TOTAL 104 100

SRI KRISHNA ARTS ANS SCIENCE COLLEGE, DEPARTMENT OF COMMERCE (PA) 21

The following table shows the location of the respondents:

S. NO LOCATION FREQUENCY PERCENTAGE