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Shifa Black Book
Shifa Black Book
STUDENTS DECLARATION
I hereby declare that this report submitted in partial fulfillment of the requirement of
Master of Management Studies degree awarded by University of Mumbai from H.K.
Institute of Management Studies and Research, is my original work and not submitted
for award of any other degree or diploma fellowship or for similar titles or prizes.
I further certify that I have no objection and grant rights to H.K. Institute of
Management Studies and Research to publish any chapter/project if they deem fit to
publish in Journal/Magazines and newspapers etc. without my permission.
Class MMS/A
Roll No. 37
Place MUMBAI
Date
Specialization MARKETING
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CERTIFICATE
This is to certify that the dissertation submitted in partial fulfillment for the award of
Master of Management Studies under University of Mumbai from
H.K. Institute of Management Studies and Research is a result of the bonafide
research work carried out by Mr. SOHEL SHAIKH under my supervision and
guidance. No part of this report has been submitted for award of any other degree,
diploma, fellowship or other similar titles or prizes. The work has also not been
published in any Journals/Magazines.
Project Guide:
DIRECTOR INCHARGE
PROF NEHA SHARMA
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ACKNOWLEDGEMENT
I take this opportunity to thank all those who have been of help to me in the
completion of this project.
I am also grateful to, Director …………and all the faculty members who have
directly or indirectly helped me in preparing this project report.
SOHEL SHAIKH
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EXECUTIVE SUMMARY
Nestle is the world's best Nutrition, Health and Wellness company. Our
work of "good food, good life" is to offer customers with the top tasting,
most nutritious choices in a wide variety of food and drink categories and
eating occasion, beginning morning to night. The members working in
the Organisation are concerned about developing the high standards in the
market. They basically focus on making sure that their products are best
to use. Nestlé has the one of the largest R&D networks of any food
company.Headquartered in Vevey, Switzerland, Nestlé is one of the
world’s largest food and nutrition Company. Nestlé now operates 115
countries and has around 280,000 employees worldwide. Nestlé produces
a different range of product categories from baby foods, bottled water,
chocolate, coffee, dairy to healthcare and sports nutrition. Well‐known
product brands owned by Nestlé include NesCafé, Kit Kat, Milk products
and ice cream represent around one‐fifth of the company's total turnover
in 2009. According to the company's 2009 report, the operations, offices
and manufacturing sites of Nestlé are present in 115 countries around the
world and Nestlé has 449 factories in 83 countries of which Nestle
Headoffice is situated at Gurgaon, Haryana in India.
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CHAPTER 2 INTRODUCTION TO NESTLE
2.1 INTRODUCTION
NESTLÉ's relationship with India was since 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 stressed the need for local production. NESTLÉ responded
to India's hop and ambition of achieving local production 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
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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 nine decades
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 pamaterials,
services and other goods.
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2.2 HISTORY
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2.3 ADVANTAGE & DISADVANTAGE
One of the factors includes ‘People, Culture, Values & Attitudes’ which
describes employees’ work perspective, drive and attitude towards their
job responsibilities. The other strategy- Operational Pillars are four inter-
related core competencies of the company. One of the factors includes
‘Operational Efficiency’ which relates to employees’ work progress,
efficiency, and output of their job performance. As mentioned above, we
can tell that the relationship between The Organisation and Human
Resource (HR) Strategy are closely related in terms of their goals and
where they hope to see themselves. This is known as a Holistic.
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2.4 LOGO
The Nestlé logo is undoubtedly one of the most memorable and well-
recognized food logos ever created. Despite being changed several times,
the logo still retains a sense of authority and modernity with an up-to-date
feel.
The earliest Nestlé logo was introduced by Henri Nestlé in 1868, based
on the meaning of his name in German, i.e. little nest, as an artistic
conceptualization of his family emblem. Henri secured a 15-year French
patent for this design the same year. Following his retirement, the logo
was registered in Vevey in 1875 by the new owners of the Nestlé S.A.
Company.
Later in 1938, the “Nestlé” name was introduced to the traditional nest
design, giving rise to the “combined mark”. However, in 1966, the design
was simplified once again, with a few minor graphic tweaks to the nest as
well as the typeface.
In 1988, the worm in the beak of the mother bird was taken out while an
extra fledgling was also added. Such changes were intended to put an
emphasis on the activities of the company, which was
broadening its horizons to include diversified products, while
reflecting the modern family with two children.
The current Nestlé logo has been recently simplified, and the tree is
supposed to symbolize an oak and the birds’ thrushes.
The blue colour in the Nestlé logo represents prosperity, purity, care and goodness.
Font of the Nestlé Logo:
The custom typeface used in the Nestlé logo has been derived from Helvetica.
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CHAPTER 3 COMPANY PROFILE
VISION
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Whether it is in terms of convenience, health or pleasure, they are able
and committed to create trustworthy products, systems and services that
contribute to improving the quality of consumers’ lives.
MISSION
“Nestlé is the world's leading nutrition, health and wellness company.
Our mission of "Good Food, Good Life" is to provide consumers with the
best tasting, most nutritious choices in a wide range of food and beverage
categories and eating occasions, from morning to night.”
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3.2PRODUCT MIX
Nestlé has 64 brands, with a wide range of products across a number of
markets, including coffee, bottled water, milkshakes and other
beverages, breakfast cereals, infant foods, performance and health care
nutrition, seasonings, soups & sauces, frozen & refrigerated foods, & pet
foods.
PRODUCT CLASSIFICATION
MILK PRODUCTS
NESTLE ACTIPLUS DAHI is a deliciously thick ‘n’ tasty low fat DAHI
enriched with the goodness of more than 100 CRORE special
PROBIOTICS in every serving (100g), which work hard everyday to
ensure your digestive system is strong and healthy.
NESTLÉ MILKMAID:
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NESTLÉ EVERYDAY Ghee:
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3.3 MARKETING MIX
1. Product
2. Price
3. Place
4. Promotions
The service marketing mix has three further variables included which are
people, physical evidence and process. They are discussed in detail in the
article on service marketing mix.
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PRODUCT MARKETING MIX OF NESTLE
PRODUCTS
There are 4 different strategic business units within Nestle which are
used to manage various food products.
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.
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PRICING STRATEGY
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PLACE/DISTRIBUTION STRATEGY
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.
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PROMOTIONAL STRATEGY
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, Nestlé’s brand was pushed by the excellent product
quality of Maggi and the witty and innovative campaigns of Maggi.
Where Nescafe focuses on value and the good things in life, Maggi
focuses on moments you had with your Maggi. The recent campaign was
completely focused on your Maggi story, where people had to come out
with various innovative ways that they had their Maggi.
Promotions for other products too is done smartly. Kitkat focuses on
“Take a break” and has done some good marketing for the same. Kitkats
website too is very innovative and shows nothing but asks the visitor to
take a break and have a Kitkat. The major push expected of a FMCG
company is in sales promotions at the ground level. This is where Nestle
really rocks. Nestle focuses on its strength which is Maggi, Nescafe and
Kitkat which are the most promoted brands in the market on ground level.
Besides this, Nestle regularly uses TVC’s and ATL marketing. It is also
present online through some smart creative. Overall, Nestle is a brand
which has strong products as well as strong marketing, and hence the
brand has a very high brand recall value. We hope that Nestle keeps
bringing in good products and keeps maintaining the quality of the
products it already has.
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BEVERAGES:
MARKETING MIX OF NESCAFE
PRODUCTS OF NESCAFE
The history of Nescafe can be traced as far back as 1930 when its coffee
specialist Max Mergenthaler and his team were asked to produce high
quality coffee that could be prepared by simply adding hot water, yet
retain its natural aroma. It then took nearly 8 years of research in their
Swiss laboratories until they finally managed to get the solution in 1938.
The final product was called Nescafe, a portmanteau of the names Nestle
and Café. However, the instant coffee did not become an instant success
in Europe due to World War II. It was immediately exported to other
countries like Great Britain, France and the U.S.A. It later on became a
huge success in the United States and its fame spread further to Europe.
By 1950’s people was flocking coffee shops for the product.
Later in 1965, Nescafe introduced its Gold Blend version which was a
huge improvement on the original Nescafe which used carbon-dioxide as
a preservative. The Gold Blend brand was made of freeze-dried soluble
coffee granules. And in the 1960, another brand called Taster’s choice
was unveiled. Over the years, the company has produced a number of
brands under the umbrella name, Nescafe.
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The following is the full list of the brands
Nescafé Original
Nescafé Classic
Nescafé Gold Blend Half Caff
Nescafé Gold Blend Decaf
Nescafé Alta Rica Decaff
Nescafe Blend 43
Nescafé Blend 37
Nescafé Black Gold
Nescafé Classico
Nescafé Decaff
Nescafé Half Caff
Café Parisien
Nescafé Gold Blend
Nescafé Suraya
Nescafé Alta Rica
Nescafé Espresso
Nescafé Fine Blend
Nescafé Partners Blend
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PROMOTIONAL STRATEGIES OF NESCAFE
Nestle has used a number of advertising strategies throughout the years
to make the product Nescafe appealing. In particular, it has used
persuasive advertising, with an emotional aspect, to make it an instant
success. Nestle runs a number of advertisements and TV commercials
focused towards making it a household premium brand. Another
powerful tool is the widely known ‘Nescafe tune’ which is one of the
best advertising campaigns which was launched about 20 years ago.
The continuous advertising with smart promotions has given Nescafe a
strong position in the instant coffee industry. Nescafe also focuses on
producing high quality products and experiments with a lot of variants. It
recently introduced the Nestea which was instant tea, looking at the
potential consumption of tea loving customers. Moreover, Nestle also
uses its other powerful products like Maggi and KitKat to strongly push
for a higher market share. In India, Nescafe has signed on Deepika
Padukone as the brand ambassador and has introduced many ads
including Purab Kohli and Karan Johar to push the Nescafe coffee brand.
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PRICING STRATEGIES OF NESCAFE
Nestle has adopted the strategy of non-price competition. It ensures that
traders don’t take advantage and hike prices by maintaining uniform
pricing for all its products, including Nescafé. It offers generous
discounts to its distributors. Different Nescafé brands come with different
prices depending on how they are made. Nescafe has estimated other cost
factors such as labor and considered mass production in order to reduce
the price and make it more affordable in India. However, being one of the
premium brands it enjoys a high stature and acceptability at a relatively
high cost than its nearest competitors.
PLACE/DISTRIBUTION STRATEGIES OF
NESCAFE
Maggi Vegetable Atta Noodles is made from wheat flour that has fibre
content and added vegetables.
Maggi Cuppa Mania is available in an easy cup format with two variants
Chilly Chow Yo and Masala Yo.
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Maggi Sauces
Maggi Pichkoo
Maggi Pazzta
Maggi Healthy Soups
Maggi Magic Cubes
Maggi Coconut Milk Powder
Maggi Masala -ae- Magic
Maggi Bhuna Masala
Maggi Pasta and Pizza Sauce
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PLACE/DISTRIBUTION STRATEGIES OF MAGGI
Maggi has followed the distribution channel of Nestle to Distributor to
Retailer to Consumer, as a chain system is helpful in proper distribution
of the product.
The key ingredient in the Marketing mix of Maggi has been its
distribution. It is one thing to have a successful product in your hand, it is
a completely different ball game to ensure time and time again that this
top of the line product reaches the nooks and corners of the world. Even
if you go in the Himalayas, you will find Maggi selling there at select
places. Isn’t that something!! This single factor – distribution, has been
the backbone for the success of the product.
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PRICING STRATEGIES OF MAGGI
Maggi has a penetration pricing strategy because it knows it has to
penetrate the market the world over. There are many indirect competitors
to Maggi as well. Maggi has a very clear-cut policy regarding its prices.
From its initial years it has kept low pricing policy because, its
consumers mostly belong to the average middle class group.
To make the product affordable they had to tone down their prices
but the volumes the product generates has helped the company in
maintaining a healthy profit. Therefore, the prices have always
been kept normal without any dramatic changes.
Along with this, to cater to the middle and low income class
customers, Maggi offers different sizes of packets at various prices
so that the customer can buy as per budget.
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PROMOTIONAL STRATEGIES OF MAGGI
When the parent company Nestle decided to launch Maggi in India, its
promotional activities included creating awareness amongst the females
and kids.
Till date, no one has been able to cook a Maggi in 2 minutes J but
still, people love the product for the quick way they can get an
excellent snack.
Maggi has also announced many offers and schemes over the years
to attract its consumers like Fun books, free Maggi products,
scratch and win coupons, discounts and money back offer.
For example, the Maggi masala for ready made food is advertised
time to time to keep the product in the minds of the consumer.
On the other
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.
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MILK AND MILK PRODUCTS
MARKETING MIX OF MILKMAID
PRODUCTS OF MILKMAID
Nestle Milkmaid is the market leader in the Rs 150 Crore condensed milk
market in India. Milkmaid is a heritage brand which was imported to
India from the time Nestle started its operations 90 years ago. It was in
the year 1969 that Nestle started manufacturing this brand in India.
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3.4 PRODUCT LIFE CYCLE
The product life cycle has 4 very clearly defined stages, each with its own
characteristics that mean different things for business that are trying to
manage the life cycle of their particular products.
INTRODUCTION STAGE
This stage of the cycle could be the most expensive for a company
launching a new product. The size of the market for the product is small,
which means sales are low, although they will be increasing. On the other
hand, the cost of things like research and development, consumer testing,
and the marketing needed to launch the product can be very high,
especially if it’s a competitive sector.
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GROWTH STAGE
MATURITY STAGE
During the maturity stage, the product is established and the aim for the
manufacturer is now to maintain the market share they have built up. This
is probably the most competitive time for most products and businesses
need to invest wisely in any marketing they undertake. They also need to
consider any product modifications or improvements to the production
process which might give them a competitive advantage.
DECLINE STAGE
Eventually, the market for a product will start to shrink, and this is what’s
known as the decline stage. This shrinkage could be due to the market
becoming saturated (i.e. all the customers who will buy the product have
already purchased it), or because the consumers are switching to a
different type of product. While this decline may be inevitable, it may
still be possible for companies to make some profit by switching to less-
expensive production methods and cheaper markets.
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PRODUCT LIFE CYCLE OF MAGGI
Nestle launched Maggi in India in the year 1982 with its 2 minutes instant
noodles. When Nestle launched this product there were a lot of ups and
downs, with high failure rates. Maggi, then had no competition and
incurred high production cost. A lot of research was also done in this
stage which caused frequent modifications.
GROWTH STAGE OF MAGGI
During its maturity stage, Maggi’s sales were at peak, production costs
were low and profits were high.
As we all know that Maggi is now banned in India due to its high lead
content. Thus it is going through its decline stage now. Nestle is
conducting a lot of research and if they come up with something new and
better, then Maggi might be selling its products in future, or else after
the declining stage, this brand would become history in India.
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STRENGHTS
Nestle has a global reach, with presence in more than 100 countries. They
gained this advantage through decentralization, as every branch in their
respective countries are responsible in running the business efficiently.
The extent of their decentralization includes autonomy in the hiring of
staff and varied product ranges to suit different cultural tastes.
Additionally, they also have a medium-length supply chain, with 3-4
intermediaries to ensure that their products cover different regions
efficiently. To ensure maximum effectiveness, Nestle also implements
standardization in criteria for selection, terms of operations and incentives
in their distribution (Nadar, 2013)
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WEAKNESS:
Implementation of CSR
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OPPORTUNITIES
THREATS
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3.5 PROMOTIONAL STRATEGIES OF NESTLE
PROMOTIONAL STRATEGIES FOR MAGGI NOODLES
Maggie has faced lot of hurdles in its journey in India…. The basic
problem the brand faced was the Indian psyche. i.e. Indians used to be
conservative about the food habits so noodles faced a lot of problem in
promoting sales.
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2.Giving gifts on return of empty
Maggi packets
Communication.
Through its ads, NIL positioned Maggi as a 'fun' food for kids which
mothers could prepare easily. Taglines like 'Mummy, bhookh lagi hai'
(Mom, I'm hungry), 'Bas 2-
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Minute,' and 'Fast to Cook Good to Eat' effectively communicated the
product's benefits to target consumers.
These ads had become so popular that the tagline 'Bas 2-Minute'
immediately reminded Indian consumers of Maggi noodles even several
years after the ads were taken off the TV. Maggi's first product extension
was Maggi instant soups launched in 1988. With the launch of Maggi
soups, NIL had become a pioneer in the organized packaged soup market
in India. Since then Maggi has been successful in India and launched
ketch ups sauces and soups in India, which was very successful in
grasping market. Though NIL tried to extend to other
ready to eat products like pickles, cooking aids and paste, It was unsuccessful so
soups.
India
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PROMOTIONAL STRATEGIES FOR MILKMAID
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" Bana De Everything Tempting " ( Makes everything tempting). The
brand is positioned as the inevitable ingredient in all home-made
delicacies.
Milkmaid although was a market leader, the brand faced issue of product
usage. There were certain factors that inhibited the product usage : price
and convenience . Milkmaid was a premium brand and the shelf life of
the product was limited , hence the affordability of this brand was limited.
Another factor was that many households were unaware of the use of
Milkmaid other than as an ingredient in sweets and desserts.
The brand tried lot of promotional activities to increase the usage of the
brand. The brand was promoted heavily through visual media and
through cookery shows, the brand tried to educate the customers on the
various recipes with Milkmaid.
The brand also came out with a package innovation. The brand created a
variant Milkmaid Squeeze which was the tube form of Milkmaid. The
purpose was to use Milkmaid as a topping for biscuits and breads.
This year saw a unique move by this brand. Milkmaid has come out with
a brand extension. Milkmaid has recently launched Milkmaid Fun shake :
a fruit flavoured milk targeting kids. The marketers predict a huge growth
in the ' Alternate Milk Category " in the coming years. Nestle had earlier
tried out a Milkshake version of Nescafe but with little success. It was
little surprising to find a brand like Milkmaid extending itself to a milk
shake category. The ads are already on air. Fun shake is available in
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Mango , banana and Chocolate flavour and comes in a tetra pack. The
message is similar to Nido. The ad shows kids crying when their mothers
try to give them ordinary milk and then seen enjoying taking Fun shake.
Old message and nothing new in execution .
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Milkmaid is facing two challenges now. One arising from the price war
from Amul and host of other competing brands and second is to make the
category popular in households.
Nestlé has used a wide range of promotional tactics with Kit Kat.
Promotion offers have included free bars in the multi-bar family packs
and an instant win deal with Burger King in 1996. This promotion, where
over 75 million free burgers were on offer, increased sales of Kit Kat by
an estimated 30 In 1998, an on-pack promotion featuring 'The Simpsons,'
with the chance to win £20,000 cash and hundreds of other prizes,
increased sales of Kit Kat by a staggering 41
posters - where the powerful colours of the pack and product are used to
dramatize the message.
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Promotion tool refer to using different tools to support
Television
Direct selling
Nescafe has its own coffee corner where they sell coffee along with other
nestle product. So this can be called as a good promotion tool to attract
consumer and here they can have a first-hand experience.
If the strategy is successful, consumers will ask their retailers for the
product, the retailers will ask the wholesalers, and the wholesalers will ask
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the producers. Nescafe is into Pull strategy as it advertises itself pretty
good. If we see the television advertisement they are youthful and try to
strike an emotional chord with the audience. This may attract lots of
consumer toward the product and they do like to give it a try. As coffee
and cold drinks are the substitute for coffee they always have to keep
themselves alive in the memory of consumer because product category
competition is very high.
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Coffee is the largest beverage that is consumed worldwide. Nescafé is
very popular brand all over the world. Nescafé basically try to target:
The Nescafé targets common man who is just looking for a cup of coffee
to get them through the day. Coffee is a beverage that can revitalize them
To promote the product and to reach the market NESCAFE has used
the following strategies
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Positioning Strategy
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Product Differentiation
the doctors says these products for child’s to their parents for great & maximum
nutrition’s.
Channel Differentiation
Image differentiation
People differentiation
The company has a large number of manpower’s that are highly educated and trained.
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In Singapore, 400 employees are
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Service differentiation
Another advantage for this company is better service for its respective
users from its competitors. They provide24x7 hot line service. High
quality checking is providing for its customers. Its marketing dept. and
public relation dept. are working for
finding out customer’s new needs and response toward their nestle products.
Milk powders were rapidly replacing condensed milk as a tea & coffee
whitener. The value-for-money equation and convenience factors had
skewed the balance. It seemed Milkmaid was destined to bite the dust and
become a ‘has-been’.
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POSITIONING STRATEGIES OF NESCAFE
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and positioning since customers perceive a difference based on brand
image differentiation when competing offers look the same.
2. Value Proposition
Nescafe is selling its products at the same prices with market average like
its competitors but at the same time presents its customers high level of
satisfaction with respect to quality of coffee.
3. Positioning Statement
“To people who are inspired and outgoing, cool and trendy,
unsleepy.”
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Target Market
Kit Kat’s target market is men and women of all ages. The brand is
youthful in nature, and focuses on the consumer segment who love
chocolate, and are willing to indulge themselves with chocolaty snacks.
What draws consumers to this brand is its
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association with “breaks” due to its tag line “Have a Break, Have a Kit
Kat”. It’s low prices, constant over the past 100 years, allows it to target
the mass consumer market.
1. Affordability
Kit Kat’s use of milk, dark and white chocolate variances in its products
is a POP for the brand as it is one of the features which helps Kit Kat
target a range of different consumers.
Kit Kat’s two-stick and four-stick versions come in varying package sizes
and types. For the last couple of years, Nestle has been producing
numerous limited editions for Kit Kat, such as Kit Kat Chunky Peanut
Butter and Kit Kat Green Tea Chocolate.
1. Wafer stick
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Kit Kat team feels that the fact that wafer stick is one of the key PODs for
the brand among it’s chief competitors. Though M&M and fererro-rocher
have versions that incorporate wafer, they feel that being a chocolate
wafer stick is a unique attribute for Kit Kat.
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2. Associated with snacks
Kit Kat is often associated with the word “snack”, as opposed to others
which are primarily associated with being chocolates. Kit Kat was able to
achieve the “snack” status as a result of its highly recognized tagline
“Have a Break, Have a Kit Kat”.
3. Uniqueness of taste
The main difference between Kit Kat and other competitors lies in the
taste it holds, the reason why Kit Kat is successfully holding a wide
portion of the market worldwide for ages.
4.Ice-cream production
Unlike any other chocolate brands, Kit Kat produces Ice-creams keeping
up with the same great taste and satisfying ice-cream lovers as well.
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Consumer preferences are becoming increasingly known through online
sources, according to Maritz. Younger people expect companies to
communicate online
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through forums and social media. Companies also attempt to listen to
consumers' needs through online sources as well. Young consumers
between 18 and 24 prefer generic online messages rather than private
communications through email.
Cultural factors
Sub-cultures
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A society is composed of several sub-cultures in which people can
identify. Subcultures are groups of people who share the same values
based on a common experience or a similar lifestyle in general.
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The subcultures are often considered by the brands for the segmentation
of a market in order to adapt a product or a communication strategy to the
values or the specific needs of this segment.
Social classes
People from different social classes tend to have different desires and
consumption patterns. Disparities resulting from the difference in their
purchasing power, but not only. According to some researchers, behavior
and buying habits would also be a way of identification and belonging to
its social class.
Cultural trends
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Social factors
The influence level may vary depending on individuals and groups. But is
generally observed common consumption trends among the members of a
same group.
More generally, reference groups are defined as those that provide to the
individual some points of comparison more or less direct about his
behavior, lifestyle, desires or consumer habits. They influence the image
that the individual has of himself as well as his behavior. Whether it is a
membership group or a non-membership group.
Family
But also on his consumer habits, his perception of brands and the products he buys.
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We all kept, for many of us and for some products and brands, the same
buying habits and consumption patterns that the ones we had known in
our family.
The position of an individual within his family, his work, his country
club, his group of friends, etc.. – All this can be defined in terms of role
and social status.
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A social role is a set of attitudes and activities that an individual is
supposed to have and do according to his profession and his position at
work, his position in the family, his gender, etc.. – and expectations of the
people around him.
Social status meanwhile reflects the rank and the importance of this role
in society or in social groups. Some are more valued than others.
The social role and status profoundly influences the consumer behavior
and his purchasing decisions. Especially for all the “visible” products
from other people.
Personal factors
This obviously affects what he can afford, his perspective on money and
the level of importance of price in his purchasing decisions. But it also
plays a role in the kind of retailers where he goes or the kind of brands he
buys.
As for social status, some consumers may also look for the “social value”
of products they buy in order to show “external indications” of their
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incomes and their level of purchasing power..
Lifestyle
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Personality and self-concept
While the self-concept is the image that the individual has – or would like
to have – of him and he conveys to his entourage. These two concepts
greatly influence the individual in his choices and his way of being in
everyday life. And therefore also his shopping behavior and purchasing
habits as consumer.
Psychological factors
Motivation
They must also, according to research, the type of product they sell and
the consumers they target, pick out the motivation and the need to which
their product respond in order to make them appear as the solution to the
consumers’ need.
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Perception
Each person faces every day tens of thousands of sensory stimuli (visual,
auditory, kinesthetic, olfactory and gustatory). It would be impossible
for the brain to process all consciously. That is why it focuses only on
some of them.
Learning
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After more than a century-old association with the country, today,
NESTLÉ India has presence across India with 8 manufacturing facilities
and 4 branch offices.
80
CHAPTER 4 RESEARCH METHODOLGY
MEANING OF RESEARCH
82
It is the systematic, theoretical analysis of methods applied to a field of
study. It comprises the theoretical analysis of the body of methods and
principles associated with a branch of knowledge.
TYPES OF RESEARCH
Qualitative Research:
Quantitative Research:
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SOURCES OF DATA
PRIMARY DATA:
Primary data are those which are collected at the first hand either by the
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Questionnaire is to be filled up by an informal means. Tool or instrument
for primary data is questionnaire.
SECONDARY DATA:
Any data, which have been gathered earlier for some other purpose, are
COLLECTION OF DATA
It is fast, inexpensive and the subjects are readily available. The relative
cost and time required to carry out a convenient sampling are small in
comparison to probability sampling techniques.
Dichotomous questions
Multiple choice questions
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Interview Method:
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obtaining research-relevant information and focused by him on the
content specified by the research objectives of description and
explanation”
Types of interviews:
87
Kamgar Nagar) on 23rd October 2015. He guided me with the answers to
the following questions-
Secondary Data:
88
It includes information collected from internet ,books
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CHAPTER NO. 5
ANALYSIS AND INTERPRETATION
Q Gender
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TABLE NO. 13 GENDER
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TABLE NO. 4.1: Respondents who are aware of Nestle products.
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Q2 Respondents who have tried Nestle products.
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FINDINGS AND INTERPRETATION
From the above table (Table no. 4.2), it is observed that when
respondents were asked whether the respondents have tried Nestle
products or no, it was found that all the respondents have tried at least
one of the product of Nestle Brand.
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Q3 Respondents who recalled products from four Nestle products.
96
97
Q4 How frequently the respondents used Nestle products.
TABLE NO. 4.4 How frequently the respondents used Nestle products.
10
0
Q6. Media through which respondents were aware of Nestle products.
10
2
Q7. Respondents who find Nestle advertisement attractive.
From the above table (table no. 4.10), it is observed that when the
respondents were asked about whether the advertisements they see
were attractive,
80% of the respondents found the advertisements they
see were attractive.
20% of the respondents found the advertisements they
see were not attractive.
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3
Q8 Influence of advertisement in the buying process of the respondents.
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4
Q9 Reasons for respondent’s favourite product.
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5
TOTAL 100% 76
10
7
TABLE NO. 4.7 Satisfaction level of the respondents.
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8
CHAPTER NO 6
CONCLUSIONS
10
9
It is found that Nescafe is leading in the market. Bru would be the competitor
11
0
CHAPTER NO. 7
SUGGESTIONS
11
1
BIBLIOGRAPH
Y
WEBLIOGRAP
HY
http://www.iuf.org/sites/cms.iuf.org/files/NESTLE%20.pdf
http://www.marketing91.com/marketing-mix-nescafe/
https://www.nestle.in/aboutus/allaboutnestl%C3%A9
http://www.gtu.ac.in/ABP/GCSR%20PDF%202012/816%20-
%20Switzerland.pdf
http://www.academia.edu/7613238/Marketing_Report_on_Nestle_Pakistan
http://ideasmakemarket.com/2012/02/ideasclash-2-0-entry6-
branding- strategy-of-maggi-noodles.html
https://www.scribd.com/doc/107494610/7/COMPANY-PROFILE
www.managementparadise.com/forums/marketing-
management/205529- product-profile-maggi
http://in.reuters.com/finance/stocks/companyProfile?symbol=NEST.BO
https://en.wikipedia.org/wiki/Nestlé
http://www.reuters.com/finance/stocks/companyProfile?symbol=NESN.VX
http://companies-profiles.blogspot.in/2009/08/nestle-india.html
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2
http://www.nestle.com/asset-
library/Documents/Library/Documents/Annual_Reports/201
1-Annual- Report-EN.pdf
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3
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4