Marketing Strategy of Nestle

RESEARCH PROJECT REPORT
On
“Marketing Strategies of Nestle With Special Reference

to Lucknow City”
Towards partial fulfilment of

Bachelor of Business Administration (BBA)
(BBD University, Lucknow)
Submitted to: Submitted by:

Ms.Tuba Parveen Tripti Jaiswal
(Assistant Professor) Roll No. 1190671439
SOM, BBDU LUCKNOW BBA VIth Semester
Session 2021-2022
School of Management
Babu Banarasi Das University
Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India
DECLARATION
This is to declare that I, Tripti Jaiswal student of BBA, have personally worked on
the project entitled “Marketing Strategies of Nestle with Special Reference to
Lucknow City”. The data mentioned in this report were obtained during genuine
work done and collected by me. The data obtained from other sources have been duly
acknowledged. The result embodied in this project has not been submitted to any
other University or Institute for the award of any degree.
Tripti Jaiswal
Roll No. 1190671439
BBA VIth Semester
DATE:
ACKNOWLEDGEMENT
Gratitude is not a thing of expression; it is more a matter of feeling. There is always a
sense of gratitude which one express for others for their help and supervision in
achieving the goals. I too express my deep gratitude to each and everyone who has
been helpful to me in completing the project report successfully. I would also like to
thank Almighty God for blessing showered on me during the completion of summer
training project report.
I give my regards and sincere thanks to Dean Prof. Dr. Sushil Pande and also I am
deeply gratified to Ms.Tuba Parveen for her earnest coordination and valuable
efforts. She constantly encouraged me right from the inception to final preparation of
my project. She has been a constant source of knowledge, information, help and
motivation for me through her depth knowledge and experiences.
Last but not the least; I am hugely indebted to all the faculty members of my institute,
my family members and friends for their sincere advice & cooperation to complete
my project in efficient & effective manner.
Tripti Jaiswal
Roll No. 1190671439
BBA VIth Semester

TABLE OF CONTENT
 Certificate
 Declaration
 Acknowledgement
Sl. No. Contents Page No.
1 Introduction 1
2 Company profile 30
3 Objectives of the study 44
4 Research Methodology 46
5 Limitations 49
6 Data Analysis & Interpretations 51
7 Findings 66
8 Suggestions/Recommendations 70
9 Conclusion 72
Bibliography
Appendix
INTRODUCTION
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INTRODUCTION
Nestle Market Analysis and Marketing Strategy
Nestle is one of the largest companies in the world in the drinks, food and snacks
industry. The Swiss company, though renown worldwide for its chocolate, has
successfully transformed itself into a truly global force in the food industry with
expansion to other areas of the industry such as baby foods, beverages and frozen
foods. Currently, the company which owns more than 2,000 brands employs around
340,000 employees and operates in more than 180 countries worldwide. The company
started out in 1905 from a merger as a milk company specializing in infant formula
products and condensed milk products and has since grown to be one of the largest
international food companies and the clear global leader in the sector in terms of
revenues and profitability.
Nestle is one of the largest companies in the fast-moving consumer goods (FMCG)
sector and is the market leader in several of the sector’s markets, especially with
revenues in consideration. The FMCG sector is currently dominated by companies in
the snacks, food and beverages industry (Consultancy.uk, 2015). These companies
include Nestle, Tyson Foods, Coca-Cola and Kraft Heinz.
The company has seven verticals namely liquid and powdered beverages,
confectionary and cookies, ready prepared and cooked foods, dairy products,
chocolate, drinking water and pet care. Even though the FMCG sector in large, there
are a lot of players in the sector of all sizes and the competition is stiff since there are
many international players in the market. In order for the company succeed in such a
highly competitive sector, it must adopt effective marketing practices (Pride, Ferrell,
Lukas, Schembri, & Niininen, 2015). Among the stiffest competitors facing Nestle are
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Procter & Gamble, Kraft Heinz, Coca-Cola, Unilever, Kellogg’s, Danone and
PepsiCo.
BCG analysis
Given that Nestle is a company with both multiple products and it operates in multiple
categories, BCG analysis is essential in order to better understand the company’s
markets and better manage its business portfolio and to come up with an effective
marketing strategy and plan (Pruschkowski, 2018). To gain a better understanding of
Nestle, its BCG analysis should be done both by taking into consideration both its
verticals and products.
In the liquid and powdered beverages, confectionary and cookies, chocolate, ready
prepared and cooked foods and dairy products verticals, Nestle is a star, enjoying
large market share and great opportunity for growth. In the pet care vertical, it is a
question mark since Nestle has a small market share of a high growth market while
the water vertical is a dog due to low market share of a highly saturated market that
features both international and local players in each of their target markets.
Nestle has a wide range of products in its various verticals in different stages of the
product pipeline (Immonen & Saaksvuori, 2008). In the liquid and powdered
beverages sector, Nestle has two main products in the powdered beverages market,
Nescafe and Nespresso, with Nescafe being a cash cow and Nespresso being a star. In
the ready prepared and cooked foods, the Maggi brand, especially Maggi noodles, is a
cash cow while in the bullions and dried food, the Maggi brand is a star, with its
major competition being the Knorr brand from Unilever. In the chocolate vertical,
KitKat and Munch are the main products from Nestle falling in the star category given
that although the competition is stiff, the market segment has huge potential for
growth and the company is in a position to increase both market share and revenue.
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In the pet care vertical, the most known brand from Nestle is Purina, which also falls
in the question mark category like the pet care vertical since there is high growth in
the segment although it doesn’t enjoy dominant market share. In the water vertical,
the company has many brands including Poland Spring, Perrier and Vittel, all of
which can be considered to be in the dog category of the BCG matrix with low
prospects for growth and attaining dominant market share.
PESTLE analysis
Given the understanding of the company’s product portfolio and the understanding of
how it various products are positioned and performing in their markets, the next step
is to carry out PESTLE analysis. The knowledge and insight from BCG analysis is
used in determining how various external factors that can affect a business are to be
handled in order to minimize business risks, leverage emerging opportunities and gain
better insight in the business’ environment in a cost effective manner (Campbell,
2015). These are namely political, economical, social, technological, social and
environmental factors.
There are many political factors that Nestle must take into account in its different
markets. These include taxation, laws and regulation and compliance with various
laws and regulations from different regions, governments and regulatory bodies and
various import and export duties among other factors. Additionally, it must also
account for global changes in the political landscape and regulations as well as
regional political stability in its market.
Economic factors are important in determining the viability of both current and new
markets, given that most of their target market is the middle and upper classes with
enough disposable income to buy branded products. Additionally, economic factors
play a huge role in price determination for their various products, which is critical in
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determining revenues, profitability and competitiveness of the products. Given the
large scale of the company’s operations, changes in the prices of various inputs and
expenses and market conditions like fuel cost and inflation also have a huge impact on
the company’s bottom line and must be accounted for when strategizing and planning.
Social factors have a large bearing on the opportunities and threats that face
businesses and this is especially more so in the FMCG sector and the food industry in
particular. These factors include the local culture, values and norms, fashion and
lifestyle among other social demographic patterns and trends. Social factors are
important in determining emerging markets, detecting the change in customer
preferences, cultural differences in various markets as well as current and future
consumer behavior and psychology. This knowledge is essential in determining how a
business reacts to the ever changing business environment in order to maximize their
returns while minimizing their risk.
Technological factors
Technological factors play an important role in changing business environment,
creating disruptions that can pose both challenges and present new opportunities for
businesses. Various advances in technology can affect any part of the business
including production (new product developments like using 10% less sugar without
changing the sweetness of products), logistics (determining more optimal ways of
delivering products to the end consumers) and marketing (rise of social media and
other online channels) to name but a few. By being aware of technological changes in
the industry, Nestle is better positioned to leverage new technology in a cost effective
manner to meet business objectives and delivery quality products to diverse consumer
markets.
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Legal factors have a very important bearing on the operations of any business since it
determines at the very least of a business can carry out its operations in a given
jurisdiction. Such factors include licensing, obtaining various required permits,
auditing and compliance with various standards. Additionally, business in food
industry not only have to comply with rules and regulations that affect other business
but also comply with regulations set by other governmental and controlling bodies
like food and health safety laws and regulations. All these factors play an important
role in determining how favorable or unfavorable the operating conditions directly
attributable to the actions and policies of external stakeholders with authority are for
the industry in general and a business in particular are.
Environmental factors can also be favorable on detrimental to a business’ operations.
Some of the factors like extreme weather conditions can have impact on several areas
of business operations e.g. by making inputs or transportation costs more expensive,
environmental regulations affecting business operations for example in packaging or
affecting sales as customer preferences change with the weather. Additionally,
consumers the world over are increasing more environmentally conscious and using
their purchasing power to reward and punish businesses based on the environmental
practices. Nestle must also take into account the diversity in the physical environment
they operate in and the different rules and regulations of different regions.
Of all these factors, social factors are the ones most likely to affect Nestle. The
company has a wide presence in many countries and regions, which means they have
already been exposed to different political, legal and environmental factors of the
regions they already serve. The company has shown its innovativeness in dealing with
different economic factors in various regions e.g. by offering small packing in lower
middle income countries and combining both prestigious brands that can command
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high price with brands that compete on price depending on market conditions.
Although the company fairs well in dealing with social factors e.g. using local
ingredients and taking local tastes into account, this is an area they could improve and
likely to pose the most challenges due to the ever changing preferences and
demographics of any society.
Nestle liquid and powdered beverages vertical analysis
Given the wide range of verticals and products that Nestle offers, it is important to
approach the products and their vertical separately even when developing a holistic
marketing for their product portfolio (Aerk, 2009). The focus shall be on the largest
contributor to Nestle in terms of revenue generation, the liquid and powdered
beverages vertical, as shown below for revenues for the year 2017 (Statista, 2018).
Special emphasis will be on powdered beverage products like Nescafe and Milo, the
main offering from Nestle against its competitors and a focus on Milo, its flagship
brand in the powder cocoa/ chocolate segment.
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Marketing strategy
There are many explanations and definitions which tell you what is a
marketing strategy. However, it all boils down to one sweet and simple
explanation. Marketing strategy basically tells you WHAT you are going to do for
the marketing of your product / firm or organization.
Marketing strategy is a small part of Business strategy. Where business strategy deals
with manufacturing, operations, procurement etc; Marketing strategy will look
towards marketing mix, business environment, distribution and other such marketing
related areas.
Both, business strategy as well as marketing strategy, are important for a firm to move
forward. A firm needs to know what Business strategy it needs to follow? Which
businesses will the organization like to be present in? Where is the industry heading?
And what moves need to be taken to establish and sustain the business?.
The same way a firm needs to know its marketing strategy. What are the
organizations strengths and weaknesses? What products does it have? What segment
can these products be sold to? Can we design a new product? Where are gaps present
in the system so that an optimum marketing strategy be designed?
After taking all these factors into consideration, a marketing plan is prepared. The
marketing plan is nothing but a written document which is a roadmap of HOW you
are going to achieve your marketing strategy. This marketing plan is then presented to
investors or bankers to get funds for your organization. Or the same can be used as
a reference for the management or in any future endeavours of the organization.
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What is Marketing strategy?
A marketing strategy usually has the following factors at the core of its formation
1) Long term objectives of the firm
The vision of the firms plays a crucial role in forming a marketing strategy for the
organization. The vision defines where the firm wants to be in the long term.
2) Actions which need to be taken
The mission statement is another important part of the marketing strategy and it
defines exactly what actions need to be taken by the firm.
3) Strategic plans
Exactly how a firm will achieve its mission is known as the strategic plan. This
involves various steps such as getting to know the firms strengths and weaknesses,
formulating a product strategy, knowing the marketing mix, and then planning
resources which will be needed to implement the plan.
4) Tactics
Tactics are generally not included in long term strategic plans, however, tactics are
important for the organization to achieve short term goals and hence they can be
formulated along with the marketing strategy. Tactics may include giving sales
discounts, addition promotional support, or any such support which motivates the
customer to buy the product.
Once all the above factors are in place, your marketing strategy is formed. Forming a
marketing strategy is much simpler than actually implementing it. This is where the
marketing plan plays a crucial role. The marketing plan plays a role of a reminder
wherein it reminds the management again and again of its marketing strategy and the
road map to organizations success.
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Types of Marketing Strategies
A right marketing strategy plays an important role in the success of a business. Every
company chooses and spends a lot of money for the right marketing strategy to boos
ttheir sales. Powerful companies opt for more than one marketing strategies.
Lets first learn about why businesses spend millions in the marketing of
their products.
1. Right marketing technique increases the visibility of the product.
2. People become familiar with your product, thus, they start trusting you.
3. Marketing creates loyalty for the brand for both prospects and existing customers.
4. Marketing builds the credibility and authority of the brand in the market.
5. Effective marketing positions a brand as an expert in the market.
6. Motivates customers to move through the purchase decision making.
You might need more than one business marketing strategy to keep your business
growing. Different market strategy can be used to target different audience at different
stages. In this article, you will learn about the different types of marketing strategies.
1) Business-to-consumer :
B2C market strategy is for those companies which market their products directly to
consumers. These types of businesses can work online or in store. A business-to-

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consumer strategy is consumer driven. You must know your customers inside-out.
There preferences of social media, where they live, and how much money they earn.
2) Employee marketing
The strategy of this marketing type is to overtake its employees as potential customers
and brand ambassadors. We all know that companies provide employee discounts as a
part of their deal. Mostly, employees buy from their employees as long as they are
getting the best deals. In this way, employees become the advocate of the company.
They not only come to work and get paid, but they promote your products and thus,
help you to generate revenue. They will recommend your products to their family,
friends, and acquaintances. they might share about your products on social media and
can refer potential employees. Therefore, never make a mistake to ignore your
employees while building a market strategy. They can be loyal customers of your
business if treated right.
3) Business to Business :
Business-to-business marketing takes place when a business markets its products and
services to another business.
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For instance, you produce equipment of machines, you are doing a business-to-
business space. It requires a different approach than business-to-consumer marketing
because there several more steps involved in it. You need to find out the decision
makers and find out ways to persuade them to business with you. to do this, you need
to build a relationship with them by providing superlative services.
4) Direct selling :
There are few products which can be sold by meeting your customers face-to-face and
providing them a demonstration of your products. For example, if you selling a
product used at home. You can call a group of customers in one person’s home and
can provide a demonstration about how that product works.
There are companies like Amway, Vestige, Avon which apply direct selling
marketing strategy to built their businesses. This market strategy is less expensive but
works for a few products and it requires sales skills and an extrovert personality to
convince your customers to buy products.
5) Cause marketing :
Many companies opt for this marketing technique to boost their sales. People get
drawn towards the businesses which are working for a cause. They feel good knowing
that their money is being used for a good cause. Therefore, there is no harm to opt for
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this strategy which benefits you as well as the community. To do this, you need to get
into a partnership with a charity organization.
You can choose the cause of providing education to orphan children. For this, you can
partner with an orphanage or an NGO working for this cause. Later, you can let your
customers know so that they can add to a donation by purchasing things from you.
6) Earned Media/PR :
In the modern era, there is hardly a person who isn’t aware of this type of marketing
strategy. Companies pay a lot of money to promote their products on various media
platforms like newspaper, television, social media etc. They even pay celebrities to
promote their products. People trusts earned media than any other sort of promotion.
7) Co-branding and affinity marketing :
By using this marketing strategy, you share your customers with businesses that
compliment your own business. For example, if you are selling Yoga related products
like a yoga mat, yoga pants etc. you can tie up with a famous yoga instructor to
promote your products by sharing a percentage of profit with them.

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If you follow yoga instructors on Instagram you must have seen them promoting
products of certain brands. It is clear that co-branding or affinity marketing represents
a partnership between two businesses with similar interests. They aren’t competitors
to each other. Hence, there is no fear of losing your customer base. Affinity marketing
refers to creating a product with another business to boost its sales.
8) Internet Marketing :
Internet marketing includes various marketing from social media, blogs, email, vlogs
to landing pages. Any type of marketing that you conduct on the internet is called
internet marketing. However, internet marketing requires a strategy that how and
when you post your posts and how you encourage people to purchase your product.
9) Point-of-purchase marketing :
Point-of-purchase marketing strategy includes placing your product where customers
make the most purchase. You must have noticed that many small products are being
placed near the cash counter. This is done intentionally so that people make an
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impulse purchase. In addition to this, you must have experienced cashier who tried to
sell your product. This is another example of POP marketing.
10) Word-of-mouth advertising :
Traditionally, word-of-mouth advertising was limited to face-to-face praise of the
product. Nowadays, the method of this type of marketing has been changed.
When people mention your services or products on their social media page and give a
positive review, they are doing word-of-mouth advertising of your business. You can
also pay some review bloggers to write reviews about you. These days people have a
tendency to read reviews about everything before making a purchase.
11) Paid media advertising :
Paid media advertising is the best solution to grow your business fast. Obviously, you
will have to liquidate capital to get results. But there is Return of investment on every
penny you spent. Followings are the types of paid media advertising.
 Paid search
 Paid social
 Television and radio commercial
 Display advertising
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 Print ads
 Billboards
 This type of marketing requires planning and specific goals for every
ad’s performance. In case, your advertising is not working, don’t keep wasting
your money instead think about some other ways to market your product.
12) Storytelling :
Storytelling is an emotional way to reach your audience. You can produce
personal stories, brand stories or a story of one of your customers after taking
their permission. There is one more trend of saying a story in exactly six
words. Here writer requires great writing skills to create a short meaningful
story. This type of marketing strategy helps you to win the trust and loyalty of
your customers.
13) Referral Program :
This type of marketing strategy makes the use of your existing customers to
get new customers on board. You pay some incentive or benefits to your
customers if they ask their friends to buy your product or service. People
usually do word-of-mouth marketing to get the benefit. The amount you pay to
them is quite small in front of the returns you are getting. Find the way to keep
the track of referrals done by your customers before giving them benefits.
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14) Growth Hacking :
This type of marketing strategy is used to gain resurgence in the audience in a
short span of time by hacking into one of the internet marketing strategies.
There are many professionals who can do this job for you in return for money.
One method is to try several marketing strategies simultaneously. You can get
a huge amount of data by following this technique.
15) Networking events :
Yes, internet marketing will get your audience. But there are other marketing
techniques too that you cannot do from behind the computer screen. For this,
you need to step out in the real world and organize some networking events to
get prospects who might enjoy your services. For example, if you are
providing an online course, you can set up a booth where people can reach you
and you can share knowledge with them about your course and encourage
them to take the course by providing them additional discounts.
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16) Content Marketing :
People enjoy participating in contests. You can use online platforms like Facebook,
Instagram, YouTube or other online platforms to run contests. Organizing contest is
the best way to direct traffic to your website and optimize the conversion rate. You
can keep digital devices or travel tickets as prize money.
17) Retargeting :
Using this type of marketing you target people who have shown interest in your
business before. For example, Facebook let you place a pixel on your website. A user
will see the ad of your product on Facebook if he/she has recently visited your
website.
As they already know about your brand, they will recognize it and there are high
chances for them to get convert. There are other retargeting platforms too like
Instagram, YouTube etc. where you can retarget your prospects.
18) Search Engine Marketing :
Everyone wants their content to appear first in a search engine using search engine
optimization (SEO). Search engine marketing can help you generate a massive return
on investment. To do this, you need to have unique, creative, value-driven content so
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that your content appears appealing to search engine. You can learn online how to use
search engine optimization to market your products and services.
19) Social Media Marketing :
Businesses make the use of social media platforms to share value-rich content and
directing traffic to their websites and landing pages, thereby, improving brand
awareness and multiplying customers. social media marketing strategy works better if
you know how to use hashtag, links, images, and videos to increase engagement.
20) Content Marketing :
This type of strategy involves sharing the content that you write of your blog or
landing pages to social media platforms. It is one of the effective marketing strategies
because it gets organic traffic to your blog and convert visitors into loyal followers.
You need to upload value-rich data constantly to keep your followers. Therefore, you
should plan your content months in advance.
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21) Social media and viral marketing :
It is unpredictable that what kind of content will go viral through social shares, email,
search engine etc. however, getting your business in the eyes of your audience is one
of the best methods to increase your business. There are a few ways that you can try
to make your content viral on the internet such as
 Post visual posts like images and videos.
 First, build your audience and then release your content.
 Produce content on a trending topic.
 Encourage your followers to share your content.
 Share emotional, inspiring, or entertaining content.
 Give an incentive for every video share.
This is the oldest type of marketing strategy. Where rather than sending emails you
send postal mail to your prospect. There is one glitch in this type of marketing
strategy that you can’t do cold-call. You need to have a list of qualified prospects who
will not let your email go waste.
23) Inbound Marketing :
This type of market strategy is effective when you want to build a positive
relationship with your prospect audience without spending too much money. This
includes marketing strategies which attract your customers to your business like a
magnet. You can make your presence visible on social media use an email list to share
free content. As people have become blind to television advertisement these days.
This type of marketing strategy will surely get their attention.
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24) Influencer Marketing :
This type of marketing involves online influencers like bloggers, YouTubes to
recommend your products and services to their audience. You can either give away
free products or pay them to promote your business. Every influencer has its own
terms and conditions. You should discuss with them before lending into partnership.
25) Behavioural Marketing :
In the present time, businesses can generate more data than ever before in history.
Behavioural marketing exploits this advantage to target specific consumers. By
tracking IP address, cookies, and web histories you can make sure that your audience
is viewing your content at the right time.
The above were all the different marketing types and Types of Marketing strategies
which can be planned and executed by a company. Hope the article helps you with
coming up for strategies to run for your organization.
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The Nestle has been established and founded in Switzerland around 1866 by Heinrich
Nestle the base of the business was identity of the Milk food products. The major
concentration of the business where been nailed towards the infants further they look
forward and established their business in the developing countries. The Nestle has
started their marketing practices in the India since late 1980’s and Nestle have
improved their marketing strategy and the promotion in to their practices of day to
day life where they have tend to widen their opportunities in improvising their
marketing strategy throughout the India. The Nestle concentration is completely been
focused towards the Food products. The Nestle food manufacturing products include
coffee and other dairy products. The Nestle established nearly 27 factories in and
around India more over the 11500 employees have been engaged for the
manufacturing unit, Nestle also included 50000 suppliers in to their integration of
supply chain units. The food quality and the social improvements are the two main
core principles of the Nestle in emphasizing their business and the marketing
practices. The Promotion activity is the act which has experienced them in the India in
making a improvement in the Baby milk powder over the India. The social frame
work and the manufacturing of high quality products have been frame worked in
Nestle principles. The developments are been much sustainable in Nestle’s case where
the initiatives of their business practices have been expanded over the regions of
Europe as well. The major initiatives of the Nestle have been implemented over the
developed countries for better integration and the development of the business. The
Nestle established the Milk districts wherever they have established their business
ensuring their quality also concerning their Global strategy and the development of
the business (Boycott Nestle, 2010).
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The Global strategy of the Nestle has been despite unsuccessful The Nestle had major
failures in the India due to their promotional products of Nestle towards the Infants.
The Nestle had faced major challenges in the 1990’s due to major products which
they launched and in efficient marketing strategies. The environment of the western
nations has been increased with in a challenge around the India due to the large scale
manufacturing on a supplier chain discounts and the promotional offers. The price
valuation has been applied drastically on the several products of Nestle in making
their successful products around the Europe and other developed markets. The
competition exist around the Indian region for several products and in the regions of
Europe this has really influenced the Nestle to compete the competitors in a high level
so they have decided to op for the promotional strategy towards the infants products
in India.
The Nestle has always focused on the Developing and the underdeveloped countries
recently they have targeted the China and the India for making their business since the
previous estimated population for the China on 2010 is 700 million and also targeting
on the incoming levels they have been several opportunity to create in the large
markets. The Nestle has Worldwide for several key brands The overall brands of the
company has been reached over 8500 in that only few has been registered to business
in those countries. The Nestle has established their network with the warehouses and
they have wide spread the opportunity for more good supply with the developing
markets. The marketing practices and the strategies of Nestle always faces the
challenge in the Indian regions especially recently they have faced a major challenge
in the Nigeria due to the polluted water and also on top of it they have the challenging
hygienic conditions for their environment (Carroll and Buchholtz, 2008).
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The research and the development operation have been specialized with in the Nestle
over the years since they have been specialized and concentrating more on
commercializing their food stuffs and innovation has been touched everywhere in
their marketing practices and in terms of their food products as well. The SBU’s have
been concerned with the managers and the region in terms of perceiving their long
term development with respect to the projects and technology (Cowe and Roger,
1999).
Nestle boycott- Nestle has made several practices in issuing the free samples to
hospitals and the infants in the poor countries like India and the other regions of India
,The real intention of the issuing with the free samples is to promote their products
based on which they want the customers to get habituated with the products so that
they will have a good business over the regions with the infants and other products. In
some cases the people have been influenced and often forced to consume the
products. In some cases they have been sold the products out of compulsion for the
infants. The Indian criticized nestle for distributing the free samples of milk powder to
hospitals and maternity wards in many countries like India and other developing
countries. The Nestle has done these promotional practices of infant products often
nestle milk powder this was been the key measure for the Nestle in leading to further
disaster. The campaigns were conducted against nestle for preventing the further
promotion and to stop delivering the marketing practices of Nestle in the market
though Nestle should have considered themselves to make the effective ease of
marketing practices for the better improvement of their business with the infant
products. The failure in instructing the people with the sanitation methods for
preparing the bottles was also being a major reason in death of many infants and
leading to the criticism. There are several people who are unaware with the exact
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method of the steps in preparing the milk using the Milk product from nestle as the
failure in providing the preparation procedures were not given in the regional
languages.
The Indian criticized nestle for distributing the free samples of milk powder to
countries. The progression of the research there by will be further discussed in order
to provide a robust recommendation which may yield the marketing strategy. The
thorough critique of Nestlé’s marketing strategy for baby milk powder in the
developing world. This marketing strategy of nestle indeed faced many criticisms and
ethical concerns as a serious concern and the regular addressing of these issues in
India and other regions the Nestle has been prolonged with a Ban on the infant
products and other major goods supply. The campaigns were conducted against nestle
for preventing the further promotion and to stop delivering the marketing practices of
Nestle in the market, based on Nestle- boycott (Rapoport, 1994).
The major evidence of compliance has been addressed in India due to the marketing
practices of the milk powder issued in the India. The India being a underdeveloped
and known for its poverty, Nestle have concentrated on the Infant milk products
where they have addressed the parents having less breastfeeding habits more over
they have not having sufficient nutrition for their infants hence they have promoted
the milk products which will give the nutrition for the infants based on regular usage.
The people are not aware about the ratio on which they need to mix the infant milk
products although hey have promoted the products on behalf of Nestle they have
failed to instruct the people as they have been known as the illiterates un aware of the
usage towards the milk products though they have been instruction available in
English. The actual scenario of the Nestle Milk powder is that needed to be mixed in
25
water the worst case of the India is that they fail to have the availability of pure water
rather they have the contaminated water all around including the ground water. This is
very common that the poor countries often have the failures in the clean water supply
and also availability of the non-adulterated food (Sillivan, 1998).
The milk product from the Nestle has been feeded to the infants has been practiced
with the contaminated water although the milk also become contaminated further
been consumed by the infants where they have been severely affected with many
incurable diseases and often leading to death etc. The children who has consumed it
has been leaded towards the serious diseases. This marketing strategy of nestle indeed
faced many criticisms and ethical concerns as a serious concern and the regular
addressing of these issues in India and other regions the Nestle has been prolonged
with a Ban on the infant products and other major goods supply. The campaigns were
conducted against nestle for preventing the further promotion and to stop delivering
the marketing practices of Nestle in the market
The failure in instructing the people with the sanitation methods for preparing the
bottles was also being a major reason in death of many infants and leading to the
criticism. The many mothers are also un-aware with the exact method of the steps in
preparing the milk using the Milk product from nestle as the failure in providing the
preparation procedures were not given in the regional languages.
The INDIAN criticized nestle for distributing the free samples of milk powder to
countries. The Nestle has done these promotional practices of infant products only
with the hospital for a free basis. Once they have decided to leave the hospital the
issuing of milk powder were been stopped to provide free whereas on the other hand
the supplements has been already started working with the children the family
26
continues to buy the formula again this has been a reason for heavy Un ethical
practices of nestle or even termed to be the un ethical strategy of nestle. The INDIAN
accused nestle for offering the sponsorships and gifts to the health workers for
promoting the nestle milk powder (Monroe, 1999).
After the incident of the Nestle Boycott Incident in the India based on the Milk
powder they have finally met their protestors since they have decided to modify their
business practices in four main perspectives. The restriction were included with the
distribution of the free samples. The Nestle labels were been identified and being the
benefit of the breastfeeding and later they have been the emphasized for the bottle
feeding. The promises of the hospitals and relevance towards their product and code
were aided with the codes of world health organization (WHO). The infant formulae’s
were been agreed to promote in the markets based on the professionals with proper
training and related to the terms of policy in the specified environment. the Infant
milk products where they have addressed the parents having less breastfeeding habits
more over they have not having sufficient nutrition for their infants hence they have
promoted the milk products which will give the nutrition for the infants based on
regular usage. The people are not aware about the ratio on which they need to mix the
infant milk products although they have promoted the products on behalf of Nestle
they have failed to instruct the people as they have been known as the illiterates un
aware of the usage towards the milk products though they have been instruction
available in English. The actual scenario of the Nestle Milk powder is that needed to
be mixed in water the worst case of the India is that they fail to have the availability
of pure water rather they have the contaminated water all around including the ground
water. This is very common that the poor countries often have the failures in the clean
water supply and also availability of the non-adulterated food (Kline, 2005).
27
The milk product from the Nestle has been feeded to the infants has been practiced
with the contaminated water although the milk also become contaminated further
been consumed by the infants where they have been severely affected with many
incurable diseases and often leading to death etc. The INDIAN criticized nestle for
distributing the free samples of milk powder to hospitals and maternity wards in many
countries like India and other developing countries. The Nestle has done these
promotional practices of infant products.
The children who has consumed it has been leaded towards the serious diseases. This
marketing strategy of nestle indeed faced many criticisms and ethical concerns as a
serious concern and the regular addressing of these issues in India and other regions
the Nestle has been prolonged with a Ban on the infant products and other major
goods supply. The failure in instructing the people with the sanitation methods for
preparing the bottles was also being a major reason in death of many infants and
leading to the criticism. The many mothers are also un-aware with the exact method
of the steps in preparing the milk using the Milk product from nestle as the failure in
providing the preparation procedures were not given in the regional languages (Kline,
2005).
The campaigns were conducted against nestle for preventing the further promotion
and to stop delivering the marketing practices of Nestle in the market. The Breast
feeding is often being known to be the safest way in order to build the strength and
aid the infants with the essential nutrients, it is the best way for proving the nutrition
where it aids the protection them from bacteria and other infection. This has been an
often crucial stage emphasizing their development. The well replacement known
method for the replacement with the bottle feeding more over they tend to carry in
engaging the greater risks over the contaminated water practiced for the infants
28
towards feeding and risk of avoiding the sterilizing equipment. The breast milk often
known as the substitutes and same kind of products which includes fruit juices. The
infant cereals being a major promotion with advertisements in order to attract the
infants (Carroll and Buchholtz, 2008).
29
COMPANY
PROFILE
30
COMPANY PROFILE
Nestle India
Nestle’ India is a subsidiary of Nestle’ S.A. of Switzerland. The company insists on
honesty, integrity and fairness in all aspects of its business and expects the same in its
relationships.
Nestle India- Presence Across India
Beginning with its first investment in Moga in 1961, Nestlé’s regular and substantial
investments established that it was here to stay. In 1967, Nestlé set up its next factory
at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area into
soluble tea. The Nanjangud factory (Karnataka), became operational in 1989, the
Samalkha factory (Haryana), in 1993 and in 1995 and 1997, Nestlé commissioned two
factories in Goa at Ponda and Bicholim respectively. Nestlé India is now putting up
the 7th factory at Pant Nagar in Uttaranchal.
31
Good Food, Good Life Since The Turn of The Century
NESTLÉ's relationship with India dates back to 1912, when it began trading as The
NESTLÉ Anglo-Swiss Condensed Milk Company (Export) Limited, importing and
selling finished products in the Indian market.
After India's independence in 1947, the economic policies of the Indian Government
emphasised the need for local production. NESTLÉ responded to India's aspirations
by forming a company in India and set up its first factory in 1961 at Moga, Punjab,
where the Government wanted NESTLÉ to develop the milk economy. Progress in
Moga required the introduction of NESTLÉ's Agricultural Services to educate, advise
and help the farmer in a variety of aspects. From increasing the milk yield of their
cows through improved dairy farming methods, to irrigation, scientific crop
management practices and helping with the procurement of bank loans.
NESTLÉ set up milk collection centres that would not only ensure prompt collection
and pay fair prices, but also instil amongst the community, a confidence in the dairy
business. Progress involved the creation of prosperity on an on-going and sustainable
basis that has resulted in not just the transformation of Moga into a prosperous and
vibrant milk district today, but a thriving hub of industrial activity, as well.
NESTLÉ has been a partner in India's growth for over a century now and has built a
very special relationship of trust and commitment with the people of India. The
Company's activities in India have facilitated direct and indirect employment and
provides livelihood to about one million people including farmers, suppliers of
packaging materials, services and other goods.
32
The Company continuously focuses its efforts to better understand the changing
lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition,
Health and Wellness through its product offerings. The culture of innovation and
renovation within the Company and access to the NESTLÉ Group's proprietary
technology/Brands expertise and the extensive centralized Research and Development
facilities gives it a distinct advantage in these efforts. It helps the Company to create
value that can be sustained over the long term by offering consumers a wide variety of
high quality, safe food products at affordable prices.
NESTLÉ India manufactures products of truly international quality under
internationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR, KIT
KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has
also introduced products of daily consumption and use such as NESTLÉ Milk,
NESTLÉ SLIM Milk, NESTLÉ Dahi and NESTLÉ Jeera Raita.
NESTLÉ India is a responsible organisation and facilitates initiatives that help to
improve the quality of life in the communities where it operates.
33
Marketing Strategy of Nestle
Nestle is one of the largest company in food processing industry in terms of revenue
& profitability. It is fortune 500 company which is serving different customer
segment all over the world and have the market capitalization of the US $250 billion
(may 2015 data).The leading health, Nutrition & wellness company is taking care of
the needs & wants of their consumers and their families all around the world so as to
help them to live a healthier lifestyle.
Segmentation, targeting, positioning in the Marketing strategy of
Nestle –
The world’s leading FMCG Company is using different strategies in
different markets.
It uses demographic, geographic & behavioural segmentation strategies to cater to the
changing needs of the most competitive industry.
Differentiated targeting strategy is what helping the company in targeting the
homogeneous set of customers (i.e. customers with similar needs) with their bundle
of products.
It uses a mix of value-based & product based positioning strategies depending upon
the kind of product they are branding & the market in which it is selling the products.
Mission – “To provide consumers with the best testing, most nutritious choices in the
wide range of food & beverage categories and eating occasions, from morning to
night.”
Vision – “Not Available”
Tagline – “Good food, Good life”
34
Competitive advantage in the Marketing strategy of Nestle –
Being present in 190+ countries is helping the company in cross-cultural exposure and
in understanding the needs.
With such a broad brand portfolio company is leading in most of the markets
worldwide. The broad product portfolio is helping the company in maintaining a high
share of wallet of customers.
Nestle have strong research & development network in FMCG and wellness industry
with 5000+ Scientists and researchers across the world.
BCG Matrix in the Marketing strategy of Nestle –
Nestle have 7 business verticals offering health, nutrition and wellness products.
Its dairy products, powdered & liquid beverages, bakeries& cookies and
confectionary business verticals are stars due to nestle having a strong hold in these
businesses with large product length.
It’s pet care, Water business vertical is a question mark in the BCG matrix due to the
presence of a large number of local & national players in the segment.
Distribution strategy in the Marketing strategy of Nestle –
With it’s diversified and broad product portfolio, Nestle has been able to make its
product available to the end consumer through its extensive network of distribution.
Developing nations have been the biggest opportunity for a company like Nestle as
there is challenges & opportunity in penetrating the market. Nestle uses multi-
channelstrategy to distribute its products.
Brand equity in the Marketing strategy of Nestle –
Nestle is Fortune 500 company and it does individual branding of their brands which
help it in creating high visibility & awareness.
35
Negative branding also worked in favour of the company when some of the countries
banned Maggi Noodles due to the presence of lead content which later on resolved
and the banned was uplifted.
Competitive analysis in the Marketing strategy of Nestle –
The health, Nutrition & wellness market is highly competitive and is overcrowded
with local & international players. Also, nestle is facing competition from
pharmaceuticals companies.
Market analysis in the Marketing strategy of Nestle –
With a large number of players fighting in the same market, penetration to the
untapped market is what driving the industry to further growth. Nestle have few
product categories which are not that popular and are facing tough competition from
the rivals.
Customer analysis in the Marketing strategy of Nestle –
With such a wide range of products in different categories, Nestle serves different
pocket size too. Being a global company it caters to the changing needs of the
population of a particular nation aptly & competitively.
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, placement
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 products.
36
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 cash
cow. Nestle has a worldwide distribution and has many different variants. Looking at
India, Nestle has also launched Nestea.
Milk and Milk products – Nestle everyday, 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 Sunfeast Yippie against maggi.
37
The appreciable factor in Nestle is that quality maintenance of products is upto mark
and there are hardly any complaints about Nestles products in the market. This is a
major achievement for a company which relies majorly on food products.
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.
38
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.
The challenge for Nestle is in the chocolate segment where it faces stiff competition
from Cadbury and hence selling the chocolates becomes difficult. Kitkat might have
its own brand positioning, but it is not better than Dairy milk. Thus, converting
retailers to sell Nestle instead of Cadbury is the toughest task for Nestle. This is
converted mainly through promotions.
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
39
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 are done smartly. Kitkat focuses on “Take a break”
and has done some good marketing for the same. Kitkats website too is very innoative
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.
SWOT analysis of Nestle
Nestle is one of the strongest companies in the world when it comes to the FMCG
market. Nestle coffee is almost a cash cow for Nestle and so is Maggi!! There are
many brands in Nestle which are super hit.
Strengths in the SWOT analysis of Nestle
1. World Renowned brand: It is fortune 500 Company and is world’s largest
food company measured by revenues (2014). Nestle does individual branding of
their different food brands which help them in creating awareness about their
various food brands. This also helps them because if a brand like Maggi is
affected, it does not affect the sale of Coffee.
40
2.Extensivedistributio system: With its diversified product portfolio Nestle
has been successful in penetrating Urban as well as rural markets. Locally adapted
distribution methods & decentralization in supply chain, including street markets,
mobile street vendors, door-to-door distributors & Medical outlets has helped the
company in making its products visible in the market. If you just look at the
3.Broad Product portfolio: Nestle has more than 8000 brands / products
under its name which ranges from beverages like Coffee & Mineral water,
Breakfast cereals, Soups & sauces etc. Under each product categories Nestle have
deep assortments to satisfy different needs & wants of the consumers.
4.Large workforce: Nestle have engaged 340000 odd global workforce who
are continuously working to make its products available in every nook & corner
of the world.
5.R & D centers: Nestle have the world’s largest food & nutrition research
organization, with about 5000 people involved in R & D, as well as corporate
venture funds and research partnerships with business partners and universities. It
has 21 research centers globally.
6.Brand equity – As of 2016, it is the 37th highest rank brand in the world
which says a lot about its brand equity.
Weaknesses in the SWOT analysis of Nestle
1. Maggi Controversy – In India, Maggi was recently banned because it was
found to contain additives which were harmful. This affected the brand
name of Nestle as well as Maggi big time. However, it has been relaunched
recently and Nestle is trying to convince people about the quality of Maggi.
41
2. Brand structure: It has many brands under the same umbrella group so
managing such large number of individual brands can create conflict of
interest.
3. Legal & consumer issues: Although Nestle is global food giant but it got
into controversies over the years like Nestle baby formula boycott. Child labor
by suppliers, Chocolate price fixing etc. which resulted in negative word of
mouth.
Opportunities in the SWOT analysis of Nestle
1. Healthy breakfast – Maggi oats or other such healthy breakfast
alternatives have a big time future as most breakfast alternatives are heavy and
people are becoming more health conscious. Nestle needs to do more market
penetration with regards to its Cereals.
2. Expanding market: By entering into other markets & penetrating more &
more in the rural markets through its robust supply chain and transition of
spots of unorganized business to organized one will lead to further expansion
of the company’s business.
3. Increasing Income levels: Due to stable political scenario, improved
literacy rate & controlled inflation, disposable income of the people is
increasing there by resulting into upsurge in demand & changing
their lifestyle.
4. Strategic Alliances: Nestle is already engaged in partnerships with a
number of major companies, such as Coca-Cola, and several others, opening
doors of opportunities for the company. It is one of the main shareholders
42
ofL’Oreal, the world’s largest cosmetics So partnering with other food giants
will help the company in further growth.
5. Focusing more on R & D to handle ethical issues: Recent outcry of
Maggi Noodles in India for lead presence like issue will create hindrances in
the future growth of the company. So in order to handle these health issues
Nestle must invest in R & D further to come up with more hygienic food
products.
Threats in the Marketing strategy of Nestle
1. Competition in the market: With increasing number of local & national
players it’s becoming very hard for the companies to differentiate themselves
from others. There is also threat from counterfeit products destroying its brand
image in the market.
2. Price of commodities: Increasing price of commodities will result in
further increase in the price. Further increase in price will result in decrease in
sales, margins & brand switching.
3. Buyers power: With highly diversified consumer goods market where
there are lots of brands claiming different sorts of benefits, it’s very difficult
for consumers to stick to a particular brand & hence results into brand
switching where consumer got power to select a brand based on several
factors like availability, reference group recommendation, preference & price.
43
OBJECTIVES
OF
THE STUDY
44
OBJECTIVES OF THE STUDY
 Comparative study of the various brands, packs and flavors available in the
market of Nestle.
 To study the advertising and sales promotions strategies of Nestle Product in
Lucknow.
 Assess the promotional measures in the context to the sales of Nestle and
focusing our study on the customer of company.
45
RESEARCH
METHODOLOGY
46
RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. The
Research Methodology includes the various methods and techniques for conducting a
Research. “Marketing Research is the systematic design, collection, analysis and
reporting of data and finding relevant solution to a specific marketing situation or
problem”. D. Slesinger and M. Stephenson in the encyclopedia of Social Sciences
define Research as “the manipulation of things, concepts or symbols for the purpose
of generalizing to extend, correct or verify knowledge, whether that knowledge aids in
construction of theory or in the practice of an art”.
Research is, thus, an original contribution to the existing stock of knowledge making
for its advancement. The purpose of Research is to discover answers to the Questions
through the application of scientific procedures. Our project has a specified
framework for collecting data in an effective manner. Such framework is called
“Research Design”. The research process followed by us consists of following steps:
Descriptive Research: - The research was a descriptive research as it was
concerned with specific predictions, with narration of facts and characteristics
concerning individuals specially entrepreneurs. In other words descriptive research is
a research where in researcher has no control over variable. He just presents the
picture which has already studied.
Methods of Data Collection: - Research work is descriptive in nature.
Information has been collected from both Primary and Secondary data.
Primary sources: - Primary data are those, which are collected afresh and for the
first time, and thus happen to be original in character. Primary data has been collected
47
by conducting surveys through questionnaire, which include both open- ended and
close-ended questions.
Universe of the Study: - The universe of the study included respondents in
Lucknow.
Sample Size: - Sample size is the number of elements to be included in a study.
Keeping in mind all the constraints 100 respondents was selected
Sampling Techniques: - The sampling techniques used are convenience sampling
technique and simple random sampling technique.
Secondary Sources: - Secondary data are those which have already been collected
by someone else which already had been passed through the statistical process. In this
research project secondary source used were books, online journals and websites.
Tools of Presentation and Analysis: -
To analyze the data obtained with the help of questionnaire, following tools were
used.
Tools of Presentation: It means what tools were used to present the data in a
meaningful way so that it becomes easily understandable. In this research tools used
were tables and graphs.
Tools of Analysis: In this research the tools of analysis used were Percentage
method.
48
LIMITATIONS
49
LIMITATIONS OF THE STUDY
The limitations of the study are:
 Time factor: The research was carried out in a short period. Therefore the
sample size and the parameters were selected accordingly so as to finish the
work within the given time frame.
 Inadequate data: The data provided was not sufficient due to which the
generalizations cannot be made.
 Bias : The information given by the respondents might be biased some of
them might not be interested to give correct information.
 Lack of knowledge: Some of the respondents could not answer the
questions due to lack of knowledge.
 Lack of scientific method: The lack of scientific training in research
methodology was great impediment in the research program.
50
DATA
ANALYSIS
&
INTERPRETATION
51
DATA ANALYSIS & INTERPRETATION
1. Gender of the respondent - The state of being male or female (typically used with
reference to social and cultural differences rather than biological ones).
Table -1
Gender of the respondents
Gender Frequency Percentage
Male 66 66
Female 34 34
Total 100 100
Source: Primary Data
Figure 1
Yes No
34%
66%
Interpretation
From the above table and chart we can see that out of whole 100 respondents 66%
respondents are male gender. 34% respondents belong to female gender. Thus the
majority of respondents are male.
52
2. Consumption of nestle product –Consumption is a major concept in economics
and is also studied by many other social sciences. Consumption in economics is use of
goods and services by households. Consumption is distinct from consumption
expenditure.
Table – 2
Consumption of nestle product
Consumption Frequency Percentage
Yes 59 59
No 41 31
Total 100 100
Source- Primary data
Figure 2
Frequency
Yes No
41%
59%
Interpretation
From the table and chart it is clearly understood that out of 100 respondents 59%
respondents consume nestle products. 41% respondents doesn’t consume nestle
products. Hence by this we can conclude that majority of people prefer nestle
products.
53
3. Buying of nestle product –The activity of acquiring goods or services to
accomplish the satisfaction of the consumer.
Table –3
How many time do you buy nestle product
No. of times Frequency Percentage
Frequently 40 40
Rare 52 52
Very Rare 8 8
Total 100 100
Source – Primary data
Figure 3
Frequently Rare Very Rare
8%
40%
52%
Interpretation
From the above graph and table out of 40% respondents of the respondents consume
nestle products frequently.52% of the respondents consume nestle products rarely. 8%
of the respondents consume nestle products very rarely. So, by the above thing we can
conclude that majority of people consume nestle products rarely.
54
4. Preference of nestle products–A preference is a technical term in psychology,
economics and philosophy usually used in choosing between alternatives.
Table –4
Which product of nestle you prefer more
Preference Frequency Percentage
Milk Products 18 18
Chocolates 60 60
Maggie 19 19
Beverages 3 3
Total 100 100.0
Figure 4
Milk Products Chocolates Maggie Beverages
3%
18%
19%
60%
Interpretation
From the above chart and table out of 100 respondents 18% of the respondents prefer
dairy products of nestle. 60% respondents prefer nestle chocolates.19% respondents
prefer Maggie which is a nestle product .3% of the respondents prefer beverages of
nestle. By the above analysis we can conclude that majority of people prefer nestle
chocolates and minority of people prefer nestle beverages.
55
5. Loyalty towards nestle products –Giving or showing firm and constant support or
allegiance to anything.
Table –5
Are you loyal to nestle brand
Loyalty Frequency Percentage

Yes 60 60
No 40 40
Total 100 100

Figure – 5
Yes No
40%
60%
Interpretation
From the above analysis out of 100 respondents 60% of respondents are loyal to the
brand nestle.40% of the respondents are not loyal to the brand nestle. Thus majority of
the respondents are loyal to nestle brand.
56
6. How far you think Flavor is important –A substance or extract that provides a
particular taste, especially the distinct taste of something ass it is experienced in the
mouth.
Table –6
How far you think flavor is important
Flavor Frequency Percentage
Very important 55 55
Important 42 42
Not important 3 3
Total 100 100
Figure 6
Very important Important Not important
3%
42%
55%
Interpretation
From the above analysis it’s clear that out of 55% respondents of the respondents
prefer that flavor of the product is very important. 42% of the respondents feel that
flavor is just important.3% of the respondent feel that flavor of the product is not
much important .thus from the above case we can conclude that majority of the people
feel that is much more important.
57
7. How far you think price is important -Price is the value that is put to a product
and is the result of a complex set of calculations, research and understanding and risk
ability.
Table -7
How far you think price is important
Price Frequency Percentage
Important 45 45
Not Important 20 20
Total 100 100

Figure – 7
Very important Important Not Important
20%
35%
45%
Interpretation
From above table and chart we can observe that out of 100 respondents 35% of the
respondents feel that price of the product is very important .45% of the respondents
feel that price not much more important. 20% of the respondents feel that price is not
at all important thus we can conclude that majority of the people doesn’t give much
importance to price of nestle products .
58
8. Quality - Quality is something describes as meeting the requirements of the
customers. The term quality assurance describes any systematic process for ensuring
quality during the successive steps in developing a product.
Table – 8
How far you think quality is important
Quality Frequency Percentage
Important 14 14
Not important 2 2
Total 100 100

Figure – 8
2%
14%
84%
Interpretation
Inferred to the above table and chart out of 100 respondents 84% of the respondents
feel that quality of nestle products is very important. 14% of the respondents feel
quality is not much more important. 2% of the respondent feels that quality is not at
all important. From the analysis it is understood that majority of the people feel that
quality is much more important as expected.
59
9. How far you think packaging is important – The wrapping material around a
consumer item that serves to contain, identify, describe, protect , display, promote and
otherwise make the product marketable and keep it clean.
Table –9
How far you think packaging is important
Packaging Frequency Percentage
Important 31 31
Not important 11 11
Total 100 100

Figure – 9
11%
31%
58%
Interpretation
Inferred to the above table and chart it can be understood that out of 100 respondents
58% of the respondents give much more importance for packaging. 31% of the
respondents give little importance to packaging. 11% of the respondents doesn’t give
importance to packaging. Concluding this analysis we can understand that majority of
respondents give high importance even for packaging.
10. How far you think brand is important- A brand is a product, service , or
concept that is publicly disstinguished from other products, services or concepts so
that it can be easily communicated and usually marketed.
60
Table – 10
How far you think brand is important
Brand Frequency Percentage
Important 46 46
Not important 5 5
Total 100 100

Figure 10
5%
49%
46%
Interpretation
From the table and chart analysis its clearly seen that out of 100 respondents 49 of
them give high importance to brand. 46 of the respondents give little importance to
brand. 5 of the respondents don’t give importance to brand. Hence it is concluded that
majority of the respondents give high importance to brand.
61
11. Influential factors - the power to change or affect something which causes
change changes without directly forcing them to happen.
Table – 11
Influential factors to purchase nestle
Influential factors Frequency Percentage
Advertising 42 42
Attractive packaging 17 17
Brand name 19 19
Sales Offers 22 22
Total 100 100

Source –Primary data
Figure – 11
Advertising Attractive packaging Brand name Sales Offers
22%
42%
19%
17%
Interpretation
Inferred to the table and chart out of 100 respondents for 42% of the respondents
advertising has been the influential factor to prefer nestle products. For 17 of the
respondents attractive packaging has been the influential factor for preferring nestle
products. For 19 of the respondents brand name has been the influential factor for
preferring nestle products. For the remaining 22 respondents the offer provided nestle
has been the influential factors for preferring nestle products. Hence it is concluded
that majority of the people get influenced to nestle products because of its advertising.
62
12. Favorite -A thing that is mostly liked than another.
Table – 12
Favorite product of nestle
Favorite
product Frequency Percentage
Chocolates 47 47
Maggie 30 30
Dairy Products 18 18
Beverages 5 5
Total 100 100

Figure -12
Chocolates Maggie Dairy Products Beverages
5%
18%
47%
30%
Interpretation
Inferred to above analysis out of 100 respondents 47% of the respondents like nestle
chocolates. 30% respondents like nestle Maggie. 18% of the respondents like dairy
products of nestle. 5% of respondents like beverages of nestle products. Hence it is
concluded that majority of the respondents like nestle chocolates and prefer them.
63
13. Substitute - Different goods that at least partly satisfy the same needs of the
consumers and therefore can be used to replace one another.
Table –13
Other company product instead of nestle
Substitute Frequency Percentage
Cadbury 53 53
Britannia 20 20
Hat sun 15 15
PepsiCo 12 12
Total 100 100
Figure – 13
Cadbury Britannia Hat sun PepsiCo
12%
15%
53%
20%
Interpretation
From the above table and chart it’s clear that out of 100 respondents 53% of the
respondents would choose Cadbury if not nestle. 20% of the respondents would
choose Britannia if not nestle. 15% of the respondents would choose hatsun products
if not nestle. 12% of the respondents would choose PepsiCo products if not nestle. So,
concluding this majority of the respondents choose Cadbury if not nestle.
64
14. Dissatisfaction – The state or attitude of not being satisfied and a feeling of
displeasure or disappointment.
Table –14
Dissatisfaction with nestle
Dissatisfaction Frequency Percentage
Yes 61 61
No 39 39
Total 100 100
Figure – 14
Yes No
39%
61%
Interpretation
Inferred to the above analysis it’s clear that out of 100 respondents 61% of the
respondents are dissatisfied with nestle products. 39% of the respondents are not
dissatisfied with nestle products. Which shows that majority of the respondents are
satisfies with nestle products.
65
FINDINGS
66
FINDINGS
 59% respondents consume nestle products. 41% respondents doesn’t consume
nestle products. Hence by this we can conclude that majority of people prefer
nestle products.
 40% respondents of the respondents consume nestle products frequently.52% of
the respondents consume nestle products rarely. 8% of the respondents consume
nestle products very rarely. So, by the above thing we can conclude that majority
of people consume nestle products rarely.
 18% of the respondents prefer dairy products of nestle. 60% respondents prefer
nestle chocolates.19% respondents prefer Maggie which is a nestle product .3%
of the respondents prefer beverages of nestle. By the above analysis we can
conclude that majority of people prefer nestle chocolates and minority of people
prefer nestle beverages.
 60% of respondents are loyal to the brand nestle.40% of the respondents are not
loyal to the brand nestle. Thus majority of the respondents are loyal to nestle
brand.
 55% respondents of the respondents prefer that flavor of the product is very
important. 42% of the respondents feel that flavor is just important.3% of the
respondent feel that flavor of the product is not much important .thus from the
above case we can conclude that majority of the people feel that is much more
important.
 35% of the respondents feel that price of the product is very important .45% of the
respondents feel that price not much more important. 20% of the respondents feel
that price is not at all important thus we can conclude that majority of the people
doesn’t give much importance to price of nestle products.

67
 84% of the respondents feel that quality of nestle products is very important. 14%
of the respondents feel quality is not much more important. 2% of the respondent
feels that quality is not at all important. From the analysis it is understood that
majority of the people feel that quality is much more important as expected.
 58% of the respondents give much more importance for packaging. 31% of the
respondents give little importance to packaging. 11% of the respondents doesn’t
give importance to packaging. Concluding this analysis we can understand that
majority of respondents give high importance even for packaging.
 49 of them give high importance to brand. 46 of the respondents give little
importance to brand. 5 of the respondents don’t give importance to brand. Hence
it is concluded that majority of the respondents give high importance to brand.
 42% of the respondents advertising has been the influential factor to prefer nestle
products. For 17 of the respondents attractive packaging has been the influential
factor for preferring nestle products. For 19 of the respondents brand name has
been the influential factor for preferring nestle products. For the remaining 22
respondents the offer provided nestle has been the influential factors for preferring
nestle products. Hence it is concluded that majority of the people get influenced to
nestle products because of its advertising.
 47% of the respondents like nestle chocolates. 30% respondents like nestle
Maggie. 18% of the respondents like dairy products of nestle. 5% of respondents
like beverages of nestle products. Hence it is concluded that majority of the
respondents like nestle chocolates and prefer them.
 53% of the respondents would choose Cadbury if not nestle. 20% of the
respondents would choose Britannia if not nestle. 12% of the respondents would
68
choose PepsiCo products if not nestle. So, concluding this majority of the
respondents choose Cadbury if not nestle.
 61% of the respondents are dissatisfied with nestle products. 39% of the
respondents are not dissatisfied with nestle products. Which shows that majority
of the respondents are satisfies with nestle products.
69
RECOMMENDATION
70
RECOMMENDATION
 Promotional activities should be concentrated as awareness on nestle.
 Modification in television advertisement has to be done to make the
advertisement more effective.
 Attractive offers along with the products can be increased in order to
overcome the competition in the consumer goods market.
71
CONCLUSION
72
CONCLUSION
Nestle has received a pivotal position in the market for their products. Quality is the
main motivating factor for the consumers to buy the products of Nestle. The
introduction of new products in the market, to satisfy all types of consumers is also
one of the important reasons for Nestle to rank top in the consumers market. It is clear
from the study that, to capture a major share in the consumer goods market the
manufacturer has to provide quality goods at reasonable price.
Every person plays multiple roles in their daily life, professional role or social role.
Each of these roles has a certain effect on consumers buying behavior. Each role has a
particular status in society and consumer behavior is considerably depended on the
status factor .If the marketers easily understand the factors that mainly influence in
buying decision the sales can be increased a lot. The study offers an assessment of the
symbolic devices that is being shown in an advertisement adopt to persuade the
audience. The visual expression model is supported in that the study suggests why
advertisers use celebrities of different gender and age groups and expertise areas in
commercials for certain products and cultural values. Certain groups of people are
loyal to a particular brand of product.
73
BIBLIOGRAPHY
74
BIBLIOGRAPHY
 Blackwell, R., Miniard, P. and Engel, J. (2006) “Consumer behavior”, Mason:
Thompson
 Egan, J. (2007) “Marketing Communications”, London: Cengage Learning
 Enis, B.M. (1974) “Marketing Principles: The Management Process”
 Gabbott, M. and Hogg, G. (1998). “Consumers and services”, Chichester: John
Wiley & Sons.
 Kotler, P. and Keller, K. (2011) “Marketing Management”(14th edition), London:
Pearson Education
 Kumar, P. (2010) “Marketing of Hospitality & Tourism Services” Tata McGraw-
Hill Education
 Schiffman, L., Hansen H. and Kanuk L. (2007) “Consumer Behaviour: A
European Outlook”, London: Pearson Education
 Solomon, M. (1995) “Consumer Behaviour” (3rd edition), New Jersey: Prentice
Hall
 Stallworth, P. (2008) “Consumer behavior and marketing strategic”, online, pp.9.
75
ANNEXURE
76
QUESTIONNAIRE
Name of Customer..........................................................................
Contact no………………………………………………………………………
1. What’s your Gender:
 Male
 Female
2. Do you consume Nestlé Products?
 Yes
 No
3. How many times do you buy Nestlé products?
 Frequently
 Rare
 Very Rare
4. Which product of Nestlé do you prefer the most?
 Milk Products
 Chocolates
 Maggie
 Beverages
5. Are you loyal to nestle brand?
 Yes
 No
77
6. How far you think flavor is important?
 Very important
 Important
 Not important
7. How far you think price is important?
 Very important
 Important
 Not important
8. How far you think quality is important?
 Very important
 Important
 Not important
9. How far you think packaging is important?
 Very important
 Important
 Not important
10. How far you think brand is important?
 Very important
 Important
 Not important
11. Which of these factors influences your purchase?
 Advertising
 Attractive packaging
 Brand name
 Sales Offers
78
12. Choose the following products of Nestlé as your favorite product?
 Chocolates
 Maggie
 Dairy Products
 Beverages
13. Choose the following other companies product instead of nestle?
 Cadbury
 Britannia
 Hat sun
 PepsiCo
14. Have you ever been dissatisfied with Nestle products?
 Yes
 No
79

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RESEARCH PROJECT REPORT

“Marketing Strategies of Nestle With Special Reference

Towards partial fulfilment of

Submitted to: Submitted by:

the project entitled “Marketing Strategies of Nestle with Special Reference to

other University or Institute for the award of any degree.

Roll No. 1190671439

BBA VIth Semester

Gratitude is not a thing of expression; it is more a matter of feeling. There is always a

training project report.

motivation for me through her depth knowledge and experiences.

my project in efficient & effective manner.

Roll No. 1190671439

BBA VIth Semester

Sl. No. Contents Page No.

3 Objectives of the study 44

6 Data Analysis & Interpretations 51

Nestle Market Analysis and Marketing Strategy

revenues and profitability.

revenues in consideration. The FMCG sector is currently dominated by companies in

include Nestle, Tyson Foods, Coca-Cola and Kraft Heinz.

categories, BCG analysis is essential in order to better understand the company’s

marketing strategy and plan (Pruschkowski, 2018). To gain a better understanding of

verticals and products.

prospects for growth and attaining dominant market share.

better insight in the business’ environment in a cost effective manner (Campbell,

regional political stability in its market.

enough disposable income to buy branded products. Additionally, economic factors

important in determining emerging markets, detecting the change in customer

preferences, cultural differences in various markets as well as current and future

consumer behavior and psychology. This knowledge is essential in determining how a

returns while minimizing their risk.

Technological factors play an important role in changing business environment,

changing the sweetness of products), logistics (determining more optimal ways of

jurisdiction. Such factors include licensing, obtaining various required permits,

auditing and compliance with various standards. Additionally, business in food

role in determining how favorable or unfavorable the operating conditions directly

the industry in general and a business in particular are.

Environmental factors can also be favorable on detrimental to a business’ operations.

of business operations e.g. by making inputs or transportation costs more expensive,

environmental regulations affecting business operations for example in packaging or

affecting sales as customer preferences change with the weather. Additionally,

demographics of any society.

Nestle liquid and powdered beverages vertical analysis

contributor to Nestle in terms of revenue generation, the liquid and powdered

brand in the powder cocoa/ chocolate segment.

the marketing of your product / firm or organization.

with manufacturing, operations, procurement etc; Marketing strategy will look

in the system so that an optimum marketing strategy be designed?

a reference for the management or in any future endeavours of the organization.

1) Long term objectives of the firm

2) Actions which need to be taken

defines exactly what actions need to be taken by the firm.

resources which will be needed to implement the plan.

customer to buy the product.

road map to organizations success.

1. Right marketing technique increases the visibility of the product.

5. Effective marketing positions a brand as an expert in the market.

6. Motivates customers to move through the purchase decision making.

consumers. These types of businesses can work online or in store. A business-to-

business if treated right.

services to another business.

business space. It requires a different approach than business-to-consumer marketing