SUMMER TRAINING

REPORT ON

 NESTLÉ CONFECTIONARY
 The main purpose of this project is to supplement
the theoretical knowledge with practical
knowledge. This report is an endeavor to assimilate
and put towards all the knowledge and experience
that I have got during training.
  
 We would like to record all our gratitude
to all those who helped us in accomplishment of
our project.
HISTORY
 Henri Nestle founded Nestle in 1866 in Switzerland. Nestlé means
‘little nest’ in Swiss German. Nestlé first customer was a premature
infant who could tolerate neither his mother’s milk nor any other
conventional substitute. Thus, Henri’s ultimate goal was to help
fight the problem of infant mortality due to malnutrition for which
he developed a product combining various cow’s milk, wheat flour
and sugar and name it Farine Lactee Nestlé, which was the first
product of Nestlé being marketed in Europe.
 The decision to set up industrial operation in new market needs a
lot of research, as there are various factors that effect the growth of
the organization and turns out to be a loss for the company. Such
factors are as follows
 The availability of
 raw material
Cost factor
Economic climate
Consumer purchasing power
Consumer tastes
 The decision to become multinational turned fruitful for
Nestlé and today Nestlé has its own operations and
products in America, England, India, Brazil, Australia,
Pakistan, Hungary, France, Belgium, Italy, Spain and
various other countries around the globe.
NESTLÉ INDIA HAS SIX FACTORIES IN THE COUNTRY
MOGA FACTORY

 Moga factory started production in

1962.Today; Moga contributes
almost 75% of Nestle India’s total
production volume, manufacturing
80,000 tons of food products. It
employs 1600 people. The entire
range of milks, culinary products
and cereals are manufactured in
Moga.The distribution network
comprises of six branches located in
Mumbai, Calcutta Delhi, Chennai,
Bangalore and Chandigarh.
The factory consists of production plants as under:

 1. MILK OPERATIONS
 2. POWDER FILLING & PACKING
 3. CEREALS
 4. INSTANT DRINKS (VENDING MIXES)
 5. CULINARY
 OTHER DEPARTMENTS OF MOGA FACTORY:
 Production
 Human resources
 Industrial performance
 Engineering
 Accounts and Administration
 Quality Assurance
 Agricultural Services
 Security
MISSION
 To continuously exceed customer expectation for quality
products and services.
 To offer top quality brands and innovative packaging to
meet the individual needs of consumer all over the world.
 Nestlé products bring consumers the vital ingredients of
taste and pleasure.
 Good Food is the primary source of Good Health
throughout life. It strive to bring consumers foods that
are safe, of high quality and provide optimal nutrition to
meet physiological needs
POLICIES
 Nestlé’s business objective is to manufacture and market the
company’s product in such away as to create value that can
be sustained over the long term for shareholders, employees,
consumers, and business partners
 Nestlé’s does not favor short-term profit at the expense of
successful long-term business development
 Nestlé’s is conscious of the fact that the success of a
corporation is a reflection of the professionalism, conduct
and the responsible attitude of its managements and
employees. Therefore recruitment of the right people and
ongoing training and development are crucial.
PRODUCT RANGE OF NESTLÉ
 
 Condensed Milk
 Powdered Milk
 Ice Creams
 Other Dairy Products
 Infant Foods
 Chocolates & Confectionery items
 Tea
 Coffee
 Culinary Products
 Frozen Products
 Fruit Juices
 Mineral Water
 Pet Foods
 Pharmaceuticals and Cosmetics
NESTLE CONFECTIONERY
 Chocolates and candies are one of the best-loved foods
everywhere in the world. Nestle chocolate Kit Kat is
concerned, the product developed as Wafer Crisp, was
initially launched in London, UK in September 1935 as
Rowntree's Chocolate Crisp. It became 'Kit Kat' in 1937.
 EXAMPLES OF NESTLE CONFECTIONERY
 NESTLE KITKAT
 NESTLE MUNCH
 NESTLE MILKYBAR
 NESTLE BAR-ONE
CHOCOLATE PRODUCTION
 The Harvest Of Cocoa Bean
 Fermentation
 Drying
 Cleaning
 Roasting
 Crushing and shelling
 Blending
 Grinding
 Kneading
 Rolling
 COMPETITIVE STRATEGY

 The companies all over the world get some

competitive edge based on some features which other
companies don’t have. For example, as the Dell has the
competitive edge over other computer manufacturer
companies, because they use Built-to-order Strategy
while no other company in computer industry use this
strategy. Similarly nestle has their Competitive
edge based on these Strategies.
 Product Differentiation
 Customer Oriented
MARKETING MIX
 Marketing Mix is defined as a set of controllable tactical
marketing tools that firm blends to produce the response it
wants in the target market. The marketing mix consists of
every thing the firm can do to influence the demand for its
products. The many possibilities can be collected intofour
groups of variables known as the four P's that are as follows:
 1. Product
 2. Price
 3. Place
 4. Promotion
  
SWOT ANALYSIS OF NESTLE
CONFECTIONARY
 STRENGTHS
 Company’s name Nestlé” signifies the quality image high standard and quality
product.
Loyalty from customers is also the major strength for the company.
Employees are also loyal due to the decentralized culture of company.
People trust on products due to the proper health and safety measures.
The strength of Nestlé confectionary is its imported chocolates and candies, which
strengthens its image.
  
 Being a multinational company it has the capability to attract more customer than the
local companies.
  
 Company has the ability to compete in a dynamic environment.
  
 Company always adapts the new technology
WEAKNESSES
 The weaknesses are as follows:

There is not much margins for retailers to prefer it’s sales.

They need to improve the facilities like chillers.

The distribution cost is high as compared to the competition in the local

market.
Company mostly advertises its milk products, advertisement of
confectionary products is not so better. 
OPPORTUNITIES

They have an opportunity to expand or capture the market by adding its

product line.
They have the opportunity to offer snacks.
They can also capture the market of home appliances.
 Company can open separate stores to eliminate retailers.
Recently, they have created an opportunity for themselves by
introducing chillers in the market.
 Company is trying to open stores in universities.

They can provide incentives to retailers to increase sales volume.

Company can enter in ice cream products.
 THREATS
  Existing companies are increasing their product lines that can prove to be a
threat in the coming years.
 Company like Cadbury is giving more discounts to retailers as compared to
distributors due to which retailers prefer its products for sale.
 As compared to the local competitors, our distributor cost is very high. As
Nestlé confectionary Products has to maintain and obey the Nestlé standard
QUESTIONARIES
 RESEARCH METHODOLOGY
 This describes the methodology of the study. This project is
based on information collected from primary sources. After
the detailed study, an attempt has been made to present
comprehensive analysis of consumption of nestle
chocolates consumed by the people. The data had been used
to cover various aspects like consumption, consumer’s
preference and customer’s satisfaction regarding Nestle
chocolates. In collecting requisite data and information
regarding the topic selected, I went to the residents of Moga
and collected the data.
LIKING FOR THE CHOCOLATES

LIKING YES NO 100

FOR THE
CHOCOL 90
ATE 80
RESPONS 95 5
70
ES
60 YES
50 Column
1
40
30
20
10
0
RESPONSES
DIFFERENT AGE GROUPS
AGE 0-10 10-20 20-30 ABOV 45
GROU E 30
P 40
NO. 14 42 33 11 35
OF
RES. 30
25 0-10
20 10-201
ABOVE 30
15
10
5
0
RESPONSE
NESTLE CHOCOLATES
20 SUB-BRANDS RESPONSES
18 KIT-KAT 17
16 MUNCH 19
14 MILKY BAR 18
12
kit-kat BAR-ONE 16
10
munch MILK 11
8 CHOCLATE
milkybar
6 bar-one
4 milk
2 chocolate
0
Sub-brands
INFLUENCING FACTORS DURING PURCHASE OF
NESTLE CHOCOLATES

FACTORS GRAND TOTAL AVERAGE RANK

FLAVOUR/TASTE 100 4.5 1
PRICE 60 2.72 5
QUALITY 84 3.82 2
PACKAGING 67 3.04 9
FORM 70 3.18 8
BRAND 83 3.77 3
IMAGE 82 3.73 4
COLOR 73 3.32 7
SHAPE 55 2.5 10
QUANTITY 80 3.64 6
FACTORS GIVING MOST SATISFACTION TO
CONSUMER

FACTORS GRAND TOTAL AVERAGE RANK

FLAVOUR/TASTE 93 4.2 1
PRICE 68 3.09 8
QUALITY 85 3.86 2
PACKAGING 66 3 10
FORM 68 3.09 8
BRAND 76 3.45 5
IMAGE 81 3.68 3
COLOR 73 3.32 6
SHAPE 77 3.5 4
QUANTITY 73 3.32 6
FORM PREFRENCE

FORM OF RESPONSES
CHOCOLATE RESPONSES
HARD 33
NUTTIES 25
CRUNCHY 29
CHEW 20 HARD
NUTTIES
CRUNCHY
CHEW
PACKS OF CHOCOLATES PREFERED

PACK SIZE RESPONSES

RESPONSES
SMALL 28
MEDIUM 48
FAMILY PACK 19

SMALL
MEDIUM
FAMILY
PACK
PROMOTIONAL OFFERS

PROMOTIONAL RESPONSES
OFFERS RESPONSES
FREE GIFTS 52
PRICE OFFERS 23
ANY OTHER 20
FREE
GIFTS
PRICE
OFFERS
ANY
OTHER
FACTORS AFFECTING PURCHASE

FACTORS RESPONSES
ADVERTISEMEN 65
RESPONSES
T
RELATIVES/ 16
FRIENDS ADVERTIS RELATIVE
ATTRACTICE 11 EMENT S/FRIENDS
DISPLAY ATTRACTI DOCTOR
VE ADVICE
DOCTORS 15 DISPLAY
ADVISE
BRAND INGRDIEN
BRAND 9 AMBASSA TS
AMBASSADORS DORS
INGREDIENTS 25
MEDIA OF ADVERTISEMENT

MEDIA OF RESPONSES
ADVERTISEME RESPONSES
NT
TELEVISION 82
NEWSPAPER 7 TELEVISIO
BROUCHERS 3 N
HOARDING 4 NEWSPAPE
R
BROUCHER
S
HOARDING
FREQUENCY OF CONSUMPTION

FREQUENCY RESPONSES
OF Column1
CONSUMPTION
ONCE IN 16 ONCE IN
FORTNIGHT FORTNIG
DAILY 17 HT
WEEKLY 39 DAILY
MONTHLY 18
WEEKLY
QUATERLY 5
MONTHL
Y

QUARTE
KY
REASONABLE PRICE

PRICE OF RESPONSE
CHOCOLATE REPONSE
BELOW 5 6
5-10 23
10-20 51 BELOW 5
20-30 4 BETWEEN
5-10
ABOVE 30 11
BETWEEN
10-20
20-30
ABOVE 30
REACTION OF CONSUMER IF NEW BRAND IS
INTRODUCED

SHIFT TO NEW RESPONSES

PRODUCT RESPONSES
NO, NOT AT 35
ALL
MAY CONSIDER 27 NO,NOT
AT ALL
NO, SHALL NOT 4
MAY
CANT SAY 29 CONSIDER
NO,
SHALL
NOT
CANT SAT
 REASONS FOR NOT SWITCHING OVER TO
OTHER BRANDS
 All the consumers why they continue to buy the old
brand gave various important reasons. The most
important reasons given by the consumers were:
 Taste/Flavour
Brand
Image
Quality
Packaging
CONCLUSION

 A survey of the people has been conducted to know

the liking pattern of Nestle. It is observed that
overall people like to eat chocolate with good
flavor, quality and crunchiness so they are going
towards Kit Kat and Munch of Nestle due to
itstaste and crunchiness.
 It is thus concluded from the facts collected that
mostly people refer to buy big pack of their favorite
chocolate, and sometimes some of them go
forsmall and family pack.
 SUGGESTIONS AND RECOMMENDATIONS

 Company should concentrate more on television for

advertisement, as mostly people get attracted through
television only.
 For promotional offers, company should go for free gifts
rather than going for other ways.
 Nestle company should concentrate on its packing as
people are least satisfied with it.
  People are unsatisfied with the price and quantity of
chocolate so companies should concentrate in this regard
also
