A PROJECT REPORT ON PRODUCT LINE EXTENSION OF

NESTLE

Submitted By
Vanshika Singh
2001810700167
Under the guidance of
Mrs. Pooja Bhakuni
In partial fulfilment of the requirements for the award of the
degree
MASTER OF BUSINESS ADMINISTRATION
OF
A.P.J ABDUL KALAM TECHNOLOGICAL
UNIVERSITY

MBA STEP HBTI

MARCH 2021

1
 DECLARATION

I undersigned, hereby declare that the project titled “A

PROJECT REPORT ON PRODUCT LINE EXTENSION OF
NESTLE“ submitted in partial fulfilment for the award of
Degree of Master of Business Administration of A P J
Abdul Kalam Technological University is a bonafide
record of work done by me under the guidance of Pooja
Bhakuni, MBA STEP HBTI. This report has not previously
formed the basis for the award of any degree, diploma,
or similar title of any University.

SIGNATURE
Date VANSHIKA SINGH

2
 M.B.A. STEP HBTI

CERTIFICATE

This is to certify that the report titled “ A PROJECT REPORT ON

PRODUCT LINE EXTENSION OF NESTLE” being submitted by
VANSHIKA SINGH, 2001810700167, in partial fulfilment of the
requirements for the award of the Degree of Master of Business
Administration, is a bonafide record of the project work done by
Vanshika Singh of MBA STEP HBTI.

MRS. POOJA BHAKUNI Dr. Prabhat K. Dwivedi

ASSISTANT PROFESSOR PRINCIPLE

Acknowledgements
3
Through this acknowledgement I express my sincere
gratitude towards all those people who helped me in this
project, which has been a learning experience.

This  space  wouldn’t  be  enough  to  extend  my  warm

gratitude to Pooja Bhakuni for her efforts in coordinating
with my work and guiding me right direction.

I escalate a heartfelt regards to our Institution Principle

for giving me the essential hand in concluding this work.

It would be injustice to proceed without acknowledging

those vital supports I received from my beloved
classmates and friends, without whom I would have been
half done.

I also use this space to offer my sincere love to my parents

and all others who had been there, helping me walk through
this work.

TABLE OF CONTENTS
4
S NO.
TOPIC PAGE

1 TITEL PAGE
2 DECLARATION

3 CERTIFICATE
4 ACKNOWLEGEMENT

5 EXECUTIVE SUMMARY

6 BACKGROUND STUDY

7 INTRODUCTION

8 NEED & PROBLEM DEFINING

9 ABOUT THE PRODUCT

10 SWOT ANALYSIS

11 IDEA DEVELOPMENT PROCESS

12 OBJECTIVES

13 MARKETING STRATEGIES

14 MARKETING R

5
 EXECUTIVE SUMMARY

I gladly present our report on new product launch of nestle.

I have prepared the report on the marketing plan of our new product.
This report is prepared on the basis of both primary as well as
secondary data. The primary data was collected by survey and
secondary data was collected by various websites on internet.

Although the main purpose of the report is to generate new idea or a

product and describe the whole process of developing and promoting
our product.

I would like to express my sincere gratitude to our mentor was giving

me this opportunity.

6
The project is about product line extension of nestle and the product is
green tea. The project tells about the idea came up what is its
feasibility and how the concept and marketing strategies was
developed, who we are targeting , what is our mission, vision, price of
the product and distribution channel.

Since people are more health conscious and nestle is a popular brand
we are expecting product will sell like a charm.

INDIAN TEA INDUSTRY

Tea isn’t simply tea in India but it is like a staple beverage here and a
day without it is impossible and incomplete. Indians prefer their
steaming cup of tea because for them it acts as an energy booster and
is simply indispensable. This popular beverage has a lot of health
benefits too as its antioxidants help to eliminate toxins and free
radicals from the blood.

Originally tea is indigenous to the Eastern and Northern parts of

India, but the tea industry has expanded and grown tremendously over
the years, making India the largest grower and producer of tea in the
world. The tea production in India was 979,000 tonnes as of 2009. In
terms of consumption, export and production of tea, India is the world
leader. It accounts for 31% of the global production of tea. India has
retained its leadership over the tea industry for the last 150 years. The

7
total turnover of this industry is roughly Rs.10, 000 crores. Since
1947, the tea production in India has increased by 250% and the land
are used for production has increased by 40%.

Even the export sector of India has experienced an increase in the

export of this commodity. The total net foreign exchange in India is
roughly Rs.1847 crores per annum. The tea industry in India is labor
intensive, meaning it depends heavily on human labor instead of
machines. This industry provides employment to more than 1.1
million Indian workers and almost half the workforce constitutes of
women.

INTRODUCTION
NESTLE
Nestlé with headquarters in Vevey, Switzerland was founded in 1866
by Henri Nestlé and is today the world's leading nutrition, health and
wellness company. Sales for 2009 were CHF$ 108 bn. We employ
around 280 000 people and have factories or operations in almost 
every country in 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-

8
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

NEED & PROBLEM DEFINING

MARKET NEED OF THE PRODUCT-

Nestle is a company of world’s leading nutrition’s and health products
but they don’t have the Green tea. Which most of the people take and
since nestle already have such a big name in the market its product
will sell like a charm.

DEFINING THE PROBLEM-

9
We are launching a new product NESTLE GREEN TEA and we need
to sell it at a low price and gain a maximum market.

PRODUCT MISSION
We provide quantity with quality

PRODUCT SLOGAN
Chai main twist life mein twist

FLAVOURS

10
Green Tea

Lemon grass

Minty

INGREDIENTS
 Green tea is made of 100% natural
green tea
 Mint ingredients- green tea, spearmint
leaves, peppermint leaves, & lemon
grass
 Lemon grass ingredients- green tea,
panax ginseng, natural flavours, lemon
grass, soy lecithin

Calories 0 % daily
value

Total fat 0g 0%

Sodium 0mg 0%

Carbohydrates 0%
0g

Protein 0g

11
 So it best for the people who want to
maintain or loose weight.

Target market
Product target the mass market it includes
all age groups except children infants.

Product competitors

 Lipton
 Organic india
 Eco valley
 Typhoo

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 SWOT ANALYSIS

STRENGHTS-

 Nestle is number 1 nutrition’s company in the

world and its repetition will be the reason of
the green tea to sell.
 Made up of 100% natural tealeaf.
 Prices will be lesser than other due to its own
cultivation of the green tea leafs.
 Available in all sizes
 Lauched all over india

13
WEAKNESS-

 Cannot take it more than 2 to 3 times a

day.
 Youth don’t consume tea

OPPORTUNITY-

 Tea demand never decline

 Innovative & new idea
 Shift to healthy living
 Currently no flavoured tea available

THREATS-

 Competitors already dominating the

market
 Change in government policies
 Change in consumer demand

14
 CONCLUSION OF SWOT ANALYSIS

Nestle green tea is having more strengths and

we have a very good faith in it that it will sell
like a charm.

GREEN TEA DEVELOPMENT PROCESS

IDEA GENERATION-
We thought of the new product nestle green tea because tea is taken
by almost all over INDIA and everyone has a very good perception
about nestle so that was also the reason we thought of this product.

IDEA SCREENING-
Before thinking of the nestle green tea we had some alternatives in
mind such as 
o Nestle Lassi 
o Nestle Bread 
o Nestle Donuts 

CONCEPT DEVELOPMENT & TESTING-

Concept Development: 

15
In this stage we thought of our product to be a very low price high
quality product We made it 100% natural, In order to make one more
addition to the nutritious product 

Concept Testing:
In order to confirm our idea of nestle green tea to be a good selling
product we used different research tools and survey method .

MARKETING STRATEGY DEVELOPMENT-

Nestle green tea is going to be a leading tea product all over INDIA
because of its low price, more quantity and high quality and also
because of our reputation of nestle as a leading brand.

BUSINESS ANALYSIS-

In this stage we set the prices on which we are going to introduce our
product in the market as we already know that the people has a made
up psyche about nestle awesome products so we are hoping that with
in a year we will capture large number of market share.

PRODUCT DEVELOPMENT-
Since we have our own growing fields of green tea leaves so the
product development stage will not be hard for us and we can cover it
in a low budget.

16
TEST MARKETING-

Before launching our product completely we will first test our product
in places like Kanpur Lucknow Delhi etc.

COMMERCIALIZATION-
As green tea consumption is more likely to be sold in the winters so that is the
timing that we choose for introducing or commercializing nestle green tea.

17
18
 OBJECTIVE OF THE STUDY

 Nestle is number one nutrition company in

world and green tea under its name will
sell like a charm.
 Its made of 100% natural leaves
 Its price are lesser due to its own
cultivation.
 Increase market share
 Improve visibility and credibility
 Increase customer loyalty

MARKETING STRATEGIES

19
The marketing logic by which the business unit hopes to achieve its marketing
objectives. 
We Thought of a strategy to lunch nestle green tea, minty, Pink Tea because
Nestle is a company of world’s leading nutrition’s and health products but they
don’t have the tea. 
Which most of the people take and since nestle already have such a big name in
the market its product will sell like a charm.
We will also use market penetration strategy because there are already
competitors who are dominating the market in this field.

SOCIETAL MARKETING CONCEPT: 

The nestle green tea is made from 100% natural ingredients so it symbolizes
pureness, quality and quantity and it is also very good for health conscious
people and people who wants to lose weight and enjoy the flavours of life. 

PROPOSED PRICE

20
We offer a variety of packaging for the feasibility of users.

 50g priced for Rs.20 (ticki pack)

 200g priced for Rs. 55 (tea bags packs)
 500g priced for Rs.110 (family package)

COST OF DEVELOPMENT OF OUR

PRODUCT
Since we have our own field of growing all the three
kinds of tea the cost are-

 50g- RS 10
 200g-rs 32
 500g- Rs 60

MARKETING RESEARCH

21
The systematic design, collection, analysis, and reporting of data relevant to a
specific marketing situation facing an organization. 

 We use marketing research to understand customer satisfaction and

purchasing behaviour which helps us to assess market potential and
market share or to measure the effectiveness of pricing, product, and
distribution and promotion activities. 

 We use marketing research to check the market situation through

marketing research. 

The marketing research program has four steps: 

1. Defining the problem and research objectives.

2. Developing the research plan.
3. Implementing the research plan.
4. Interpreting and reports the findings.

DISTRIBUTION CHANNEL
A distribution channel, in simple terms, is the flow that a
good or service follows from production or manufacturing

22
to the final consumer/buyer. Distribution channels vary but
typically include a producer, a wholesaler, a retailer, and
the end buyer/consumer

We will use indirect channel of distribution in the initial

phase than we’ll adopt mix of both.

PROMOTION

A promotion strategy is an actionable plan to influence people about your

business, generate more leads, and boost customer engagement. It visualizes

23
how to perform your marketing strategy and communication, who to target as
your audience, and where and when to execute the promotion plan.

 WE HAVE ADOPTED PULL STRATEGY

Since Lipton and Organic are already dominating the market so in order
for our product to sell we need to have a bigger promotion and
advertising in order to make our product sell.

FEASIBILITY TEST

1. Conduct a Preliminary Analysis

24
Begin by outlining your plan. You should focus on an unserved need,
a market where the demand is greater than the supply, and whether
the product or service has a distinct advantage. Then you need to
determine if the hurdles are too high to clear (i.e. too expensive,
unable to effectively market, etc.).

2. Prepare a Projected Income Statement

This step requires you to work backwards. Start with what you expect
the income from the project to be and then what investment is needed
to achieve that goal. This is the foundation of an income statement.
Things to take into account here include what services are required
and how much they’ll cost, any adjustments to revenues, such as
reimbursements, etc.

3. Conduct a Market Survey, or Perform Market Research

This step is key to the success of your feasibility study, so make it as

thorough as possible. It’s so important that if your organization
doesn’t have the resources to do a proper one, then it is advantageous
to hire an outside firm to do so.

The market research is going to give you the clearest picture of the
revenues you can realistically expect from the project. Some things to
consider are the geographic influence on the market, demographics,
analyzing competitors, value of market and what your share will be
and if the market it open to expansion (that is, response to your offer).

25
4. Plan Business Organization and Operations

Once the groundwork of the previous steps has been laid, it’s time to
set up the organization and operations of the planned business
venture. This is not a superficial, broadstroke endeavor. It should be
thorough and include start-up costs, fixed investments and operation
costs.

These costs address things such as equipment, merchandising

methods, real estate, personnel, supply availability, overhead, etc.

5. Prepare an Opening Day Balance Sheet

This includes an estimate of the assets and liabilities, one that should
be as accurate as possible. To do this, create a list that includes item,
source, cost and available financing. Liabilities to consider are such
things as leasing or purchasing of land, buildings and equipment,
financing for assets and accounts receivables.

6. Review and Analyze All Data

All these steps are important, but the review and analysis are
especially important to make sure that everything is as it should be

26
and nothing requires changing or tweaking. So, take a moment to look
over your work one last time.

Reexamine your previous steps, such as the income statement, and

compare it with your expenses and liabilities. Is it still realistic? This
is also the time to think about risk, analyzing and managing, and
come up with any contingency plans.

7. Make a Go/No-Go Decision

You’re now at the point to make a decision about whether the project
is feasible or not. That sounds simple, but all the previous steps we’re
leading to this decision-making moment. A couple of other things to
consider before making that binary choice is whether the commitment
is worth the time, effort and money and is it aligned with the
organization’s strategic goals and long-term aspirations.

RESEARCH METHODOLOGY

 METHODOLOGY OF THE STUDY-

27
 The research was carried out through survey. Data was collected
through questionnaire. The study analysis of the data was done
through statistical technique such as drawing of percentage
for generalization. The use of bar diagrams, pie chart to have
better understanding etc. of the study was adopted in the study.

 SOURCES OF DATA-
DATA was collected from 2 sources:
1. PRIMARY DATA: questionnaire
2. SECONDORY DATA: internet, books, company record.

 SAMPLE SIZE-
in this project a sample size of 50 individual were chosen for the
study.

 SAMPLING TECHNIQUE-
Convenience sampling, which is a non probability sampling was used.
In this kind the respondents are choosen according to the researcher
and its convenience.

SAMPLING AREA- KANPUR CITY.

DATA ANALYSIS

1. Do you consume green tea?

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 response

NO
30%

YES
70%

YES NO

2. Which tea you prefer?

Response

normal tea
41% green tea
45%

mint tea
5% black tea
9%

green tea black tea mint tea normal tea

3. In which condition you like the tea most?

29
 response

evening morning
45% 45%

party after meal

1% 9%

morning after meal party evening

4. How many cups of tea do you take?

Response
1
1% 2
5
22% 17%

3
60%

1 2 3 5

5. Are you taking tea as a habit?

30
 response

no
30%

yes
70%

yes no

6. You take tea for?

Response
diet
1%

habit
48%
refreshment
51%

habit refreshment diet

7. Which pack you will buy most?

31
 response
200gm
10%

1 kg
50%

400gm
40%

1 kg 400gm 200gm

8. Overall, how interested are you in buying

this nestle green tea if it were available?

Sales
not very much interested Not at all interested
11% 4%

somewhat interested
25%

very interested
60%

Not at all interested somewhat interested very interested not very much interested

9. Why would nestle green tea will sell?

32
 response
cost
10%

quality
30%

reputation
60%

reputation quality cost

10. Do you feel nestle green tea will be

better than other?

not sure
25%

yes
no
not sure

no
10%
yes
65%

QUESTIONNAIRE

33
1. Do you consume green tea?

 YES

 NO

2. Which tea you prefer?

 Black
 Normal
 Green

3. In which condition you like the tea most?

 Morning
 Evening
 Party
 After meal

4. How many cups of tea do you take?

 1
 2
 4
 5

5. Are you taking tea as a habit?

 Yes
 No

6. You take tea for?

34
 Diet
 Refreshment
 Habits

7. Which pack will you buy?

 200gm
 400gm
 1kg

8. Overall how interested are you in buying nestle

green tea?

 Not much
 Not at all
 Somewhat
 Very much

9. Why would nestle green tea will sell?

 Cost
 Quality
 Reputation

10. Will nestle green tea better than other?

 Yes
 No
 Not sure

35
 CONCLUSION
 Majority of respondents like the idea of green tea
under the brand of nestle.
 Respondents are satisfied with the price, pack,
quantity offered.
 Due to the increasing health consciousness green tea
is likely to be successful product.

 On account of altering lifestyles of consumers, increasing

prevalence of chronic diseases and rising awareness about
the health benefits of green tea

36
  Due to the increasing consumer tendency of spending on
weight management products, the demand for green tea is
proliferating across the globe.

REFERENCES

Books:-
1) Marketing of Indian Manufactured goods at Home & Abroad by T. N.
Rastogi
2) Retail Marketing by Gary Akehurst, Nicholas Alexander.
3} W.J. Stanson, “Fundamentals of Marketing", Me Graw Hill, Tokyo 1974.
4) Philip Kotler "Marketing Management- Analysis Planning, implementation
and control", Prentice Hall, New Delhi, Millennium Edition, 2001.
5) Kothari C.R, "Research Methodology-Methods and Techniques", Wiswa
Prakashan Publishers, 1998.K

Journals:-

37
1. Innovation: Management Policy & Practice.
2. Nestle India: Its journey

38