TO STUDY

THE MARKETING POSITIONING OF NESTLE PRODUCTS

(A MAJOR PROJECT REPORT)

Submitted by

KAMALDEEP KAUR (105082250103)

In partial fulfillment for the award of the degree of

MASTERS OF BUSINESS ADMINISTRATION

(MARKETING)

(2010-2012)

RIMT- SCHOOL OF MANAGEMENT STUDIES

PUNJAB TECHNICAL UNIVERSITY, JALANDER

2012

ACKNOWLEDGEMENT

I would like to express my gratitude to all those who gave me the possibility to complete this

report. I would like to take this opportunity to present my vote of thanks to my guides who

acted as lighting pillars to enlighten my way through out this project. This project would not

have been possible without the kind assistance and guidance of many people who indeed

were helpful, cooperate and kind during the entire course of my project.

The acknowledgment would not be complete without expressing my indebtedness to my

Honorable professor Mrs. KIRAN SOOD who guided me in this project.

KAMALDEEP KAUR

RIMT-INSTITUTE OF MANAGEMENT AND COMPUTER TECHNOLOGY

Gobindgarh Date:

SUPERVISOR’S CERTIFICATEThis is to certify that the Research Report entitled THE MARKETING

POSITIONING OF NESTLE PRODUCTS submitted to the Punjab Technical University in partial fulfilment of the requirement for paper of the MASTER IN BUSINESS ADMINSTRATION 4TH Semester, is an original and bonafied research work

carried out by MISS. KAMALDEEP KAUR under my supervision and guidance .No part of this study has been submitted to any university for the award of any degree or diploma

whatsoever.

_______________MS. KIRAN SOOD

INDEX

S. No CONTENTS

Page No

1.COMPANY PROFILE

INTRODUCTION

OBJECTIVES OF STUDY

2.RESEARCH METHODOLGY

Research Design

3.DATA ANALYSIS AND INTERPRETATION

4.FINDINGS AND SUGGESTION

5.BIBLIOGRAPHY

6.ANNEXURE

Introduction to Nestle India Ltd. Moga Factory

History of Moga factory

The Company started milk collection in Moga in 1961 with a collection of 511 Kgs of milk

from 180 farmers. It has substantially expanded its operations with over 85,000 farmers in its

own milk district. Nestlé uses local raw materials and develops local resources wherever

possible. Milk Collection Centre with farm cooling tanks to preserve the quality of milk were

established by the Company.

Besides this, milking machines were provided to the farmers maintaining large dairy farms.

Farmers were advised on good breeding and feeding practices, and on the health of dairy

herds. Techniques for increasing milk yields at the farm were introduced. Nestlé has invested

in Chilling Centre and Farm Cooling Tanks. In addition to this, the Company provides

assistance to farmers in the areas of cattle feed, quality fodder seeds, veterinary medicines

and mineral mixture and procurement of bankloans.

Nestlé support goes further than the work with the dairy farmers. The Company is helping

with the construction of facilities for drinking water and lavatories in village schools in the

Moga Factory Milk District. This is a joint effort with the schools, parent associations and

village administrations.

Another project involved the funding of medicines for a Tuberculosis clinic which is treating

residents from Moga town and the nearby villages.

By working very closely with the farmers of the Moga Milk District and local administrators,

Nestlé has helped to raise the quality and hygiene of the milk produced there and improve the

health and life style of the farmers and other residents. Its contribution to the creation of

prosperity on an on-going and sustainable basis has not only transformed Moga into a

prosperous and vibrant milk district today, but also a thriving hub of industrial activity.

(A) Objectives and quality policy

OBJECTIVES

Is every way the leading company in the food industry.

Ensure high quality standards in everything the company

undertake.

Provide our consumers with superior quality products.

Provide our shareholders with rapid growth and fair return.

Provide our employees a challenging and satisfying work

environment.

Be a good corporate citizen and contribute positively to the society

in which we operate

KEY FOCUS AREAS GROWTH AND POFITS

Maintain profit levels above for the food industry in India.

CONSUMERS

Work towards a situation of total consumer satisfaction.

Ensure speedy and flexibility at all times in meeting the needs of

our customers.

COMMUNITY

Ensure that all aspects of the company’s operations in line with

requirements and social issues.

EMPLOYEES

Involves all employees in issues to their work.

Instill in them a sense of orientation, and pride is there own

achievements.

Treat all employees fairly to make sure each individual knows what is expected of him,

encourage each employee to work towards continuous improvement, provide opportunities

for developments

Quality Policy

(B)Detailed operations,products and services with brands

Nestlé India Ltd. Moga factory is their oldest factory in India. With a layout spread

over nearly 57 acres & having three plants within the factory, and it is also the largest factory

among 500 Nestlé Factories worldwide.

The Company started milk collection in Moga area on 15th Nov. 1961 and on the first

day 510 kg of milk was collected as from four villages and 180 farmers. From that day

onwards company is collecting milk in the morning and night. The capacity has been raised

from 40,000 liters of milk per day in 1962 to over 1200,000 liters of milk till date.

The factory consists of production plants as under:

1. MILK OPERATIONS

2. POWDER FILLING & PACKING

3. CEREALS

4. INSTANT DRINKS (VENDING MIXES)

5. CULINARY

These plants are briefly described in the following fashion:

1. MILK OPERATIONS

This plant as the name suggests is engaged in the processing of milk and all the

related activities that take place in Moga Factory. This plant can be categorized into a number

of sub- plants, which are discussed below in brief:

i) FRESH MILK RECEPTION

The fresh milk, which is the fundamental constituent of various products, which are

manufactured in this factory, is received in this area in tankers. There are 1100 agencies

which supply fresh milk. The fresh milk is supplied by various chilling centers including

Nestle’s four own milk chilling centers. Testing of fresh milk is done in fresh milk lab and is

tested for fat and SNF only .The suppliers are paid only for fat %. In buffalo and cow milk fat

varies from 4.5%-5.5% and up to 4% respectively. While a no. of tests are performed on

tanker milk. If any one of the tests is found to be positive then the tanker is rejected .The

received milk is received in silos after passing through PHEs. The pasteurized milk is stored

in six namely A, B, C, D, E and F. The pasteurized is 15,000 polypacks per day. The fat and

SNF in it is 4.6% and 8.6%. The milk stored in silos is used in the production of various

products in Ghee Plant and Liquid Plant.

b) GHEE Plant:

The Milk stored silos D and E is used for manufacture of Ghee, which is marked under

the brand name EVERYDAY. In this plant milk is passed through two separators. A phase

inversion from 40-45% cream in the 70-80% fat in the second is obtained .The final

concentration become 97% crude fat.

c) DE- Odourisation Plant:

If impurities like DDT, HCH etc. are found to be present in the normal Ghee beyond a

certain limit (limit for pesticide ratio is 3.5 PPM), then these are removed in D.O. plant using

the rmic fluid can be headed up to 250 C and due to it normal Ghee is heated up to 210 C and

then superheated steam is passed. At this temperature, the impurities like DDT,HCH get

vaporized due to their volatile nature. The de-odorized Ghee is then sent to the liquid plant.

LIQUID PLANT this plant is engaged in the processing of milk in the liquid from, prior to

the drying operations done in the Egron , that converts it into milk power. However various

products such as, SCM & Desert Mixes are produced in the plant, besides the base liquid for

drying in Egrons

ii) LIQUID PLANT

The general process-taking place in the plant can be summarized as follows:

The fresh milk received from the silos is first standardised that is the ingredients are

added on the basis of the report send by FM lab and the product they are going to

manufacture. This is needed, as there are always variation in the conditions at each different

batch of milk. After this the milk is boiled with steam under vacuum in evaporators in order

to manufacture SCM. No other industry has been able to make this product in all over India.

A part of the milk is sent to Egrons in order to get the milk power. This milk power is then

blended with certain ingredients in order to manufacture the recently launched products

namely dessert mixes. The Ghee filling is also done in these plant HDPE drums.

iii) EGRONS

Egron is a spray drier used to dry the milk, coffee liquid into power from by using hot air,

In all there are four egrons in Moga Factory Egron 2,3,4, are used for drying milk powders.

The milk is then collected in tote bins and subsequent sent to power filling and packing.

2. POWDER FILLING PLANT:

The filling and the packing of milk like Everyday, Lactogens, Nestogen and Cerelac

Tin is done in this plant. There are five filling and packing lines for this purpose. Two of

these are used in filling of tins & the other two are used for filling poly-packs or bag-n-boxes

required by the production program and one line is for bulk packing.

3. CEREALS:

This plant is engaged in the production of cereal-based baby foods and infant formula.

The production process consists of the addition of various Enzymes, Vitamins, Minerals &

Fruit extracts to the cereal base. There are three filling and packing lines in the Cereal plant.

One is for filling of 400 gm sachets and other for filling of 400gm tins. A 5gm Every Day

creamer filling line machinery is also installed in the filling section. Though the

manufacturing of products is a continuous three shift operation, only the Flexi runs for three

shifts. It accounts for the filling of the 65% of the manufacture products. The major product

of the cereal plant is Cerelac Wheat, Apple, Orange and Vegetable.

4. INSTANT DRINKS:

This plant is engaged in the filling of vending pre - mixes.

5. CULINARY:

This plant is engaged in the production of Noodles, Tastemakers, Soups, Sauces & the

like. The plant is divided into three sections

a) NOODLES

b) SEASONING

c) COLD SAUCES

The Operation of the seasoning is inter- related with both the noodle and cold sauce

section as the spice mix base for both is manufactured in the seasoning section. However all

three have a cast column of jobs taking place & can be briefly discussed as follows:

a) Noodles

The noodle plant has production lines. The manufacturing of Noodles is a semi automatic

process. The noodle line consists of the following processes:

Tipping of wheat flour in the hoppers at the start of the line.

Mixing of dough releasing on the line.

Sheet formation with the help of rollers

Strand formation

Steaming

Frying in oil

Cooling

Wrapping cakes in sachets along with tastemaker.

Palestine of cases

However presently the noodle plant has been shifted to the Samalkha factory due to

conversion of oil-fried to air-dried noodles.

b) Seasoning

The seasoning section is engaged it the manufacture of Taste marker soups cubes

beside spice mixes for use in cold sauces. The major job in this area is the dry of various

spices & powders and then packing them in the desired shape and from.

Also the section is engaged in the manufacture of hydrolyzed plant proteins a basic

ingredient for most of the seasoning products.

The Products of this section are Maggie taste markers: Masala Chicken, Sweet &

Sour, Maggie soups (Chicken, Tomato, Mushroom & Vegetable), Maggie Cubes, Maggie

Super Seasoning, Mango Wonder-Mix, Maggie Export Mixes.

c) Cold Sauces

This section is engaged in the manufacturing of a whole range of Sauce under the

brand name of “Maggie”.

The basic manufacturing process is same for all. The line can be briefly described as:

Batch Preparation

Mixing the batch

Pasteurization

At this stage the sauce is ready to be filled in the bottles. However the filling line

starts before the actual filling takes place. There are three important processes prior to the

bottle filling. These are:

Feeding empty bottles on the line

Bottle Washing

Bottle inspection

From this the filling line actually starts. The rest of the line is:

Filling

Corking

Cooling

Capping

Labeling

Packing into cases

Shrink wrapping of cases

Palletizing of Cases

Line Speed:

135 cases/hr: 1.2kg bottle

187 cases/hr: 600gm bottle

The products of this line are Maggie Sauce (Tomato Ketchup, Hot-N-Sweet, Masala

Chilli, Chili Garlic & Tomato Sauce) & Maggie Pointed Special (Butter Chicken Karahi

Paneer & Italian Pizza Popping)

(C)Turnover

Beverages like coffee, tea and health drinks contribute to about 30% of Nestle’s

turnover.

Beverages sales registered a 15% of growth during 2005. while about 14% of Sales

come from domestic market, exports contribute to about 16% of sales.

Nestle’s Nescafe dominates the premium instant coffee segment. Nestle’s other coffee

brand Sunrise has also been re-launched under the Nescafe franchise to leverage on the

existing equity of the brand. Nestle has focused on expanding the domestic market through

price cuts and product repositioning. However it has been losing share in the domestic

market, where it has a 37% market share. Milo, a brown – malted beverage was launched in

1996. It has an estimated volume share of about 3%. In the malted food drink segment. Nestle

has launched non – carbonated cold beverages such as Nestea iced Tea and Nescafe Frappe

during 2001. Nestle is one of the largest coffee exporter in the country. Key export market in

Russia, besides Hungary, Poland and Taiwan. Nestle has received an award for highest export

of instant coffee and highest export of coffee to Russia and CIS for FY04 and FY05Turnover

contribution from exports registered a 27.5%volume growth in F12/05. Nescafe sales to

Russia accounts for 80% (Rs2.5bn) of Nestle’s Rs3bn export turnover.

INFANT FOOD / MILK PRODUCTS

Milk based products and baby food contributes to 4.3% of Nestle’s turnover. For ensuring

regular procurement of good quality milk, Nestle has developed a network around its Moga

factory for collection of fresh milk everyday from the farmers. Nestle has a

dominating10%market share in the baby weaning foods with its Cerelac and Nestum brands.

Infant milk powder is sold under the Lactogen and Nestogen brands. Brand loyalties are very

high in categories such as infant food and weaning cereals, enabling the company to

command a price premium.

Other milk products include dairy whiteners (21% market share) sold under the

EveryDay and Tea Mate brands, sweetened condensed milk and ready to cook mixes for

traditional Indian sweets sold under the Milkmaid brand. The company also markets ghee

(6% market share) under the EveryDay brand. Nestle has expanded its milk product portfolio

with the launch of new dairy products such as UHT milk, Curd and Butter. Huge investments

are being made in building a diversified dairy business and the distribution infrastructure for

the same. Milk products sales registered a 10.6% yoy growth during 2005

CHOCOLATES & CONFECTIONERY

Nestle forayed into chocolates & confectionery in 1990 and has cornered a fourth share of the

chocolate market in the country. The category contribution 14% to Nestle’s turnover. It has

expanded its products range to all segments of the market. The KitKat brand is the largest

selling chocolate brand in the world. Other brands include Milky Bar, Marbles, Crunch,

Nestle Rich Dark, Bar – One, Munch etc. The sugar confectionery portfolio consists of Polo,

Soothers, Frootos and Milkybar Eclairs. All sugar confectionery products are sold under the

umbrella brand Allen’s. nestle has also markets some of its imported brands like Quality

Street, Lions and After Eight. New launches such as Nestle Choco Stick and Milky Bar

Choco at attractive price points to won new consumers. Chocolate confectionery sales

registered a strong 21.5% yoy growth in 2005 aided by good volume growth in Munch, Kit-

Kat and Classic sales. Nestle re-launched Bar – One during the year.

CULINARY PRODUCTS

Ready to cook food / cooking aides are sold under the umbrella brand name Maggie.

Culinary product account for about 14% of Nestle’s turnover. Maggie is the market leader in

the noodles. (55% market share) and the Ketchup (48% market share) categories. Other

products, sold under the umbrella brand Maggie, are ready – to – cook gravy / sauces, soups,

seasonings, as well as traditional Indian foods such as pickles and instant snack mixes. New

taste variants are continuously launched to add variety to the product offerings. Culinary

product sales registered a 20% growth during 2005

(D) Other information (awards and certifications)

Nestlé India was recently conferred the Udyog Ratna Award. This Award recognizes

Nestlé's significant contribution to the economic development of Punjab. The Award was

presented to Mr. Martial Rolland, Chairman and Managing Director of Nestlé India at a

function 'Centenary Partnership Summit-Punjab' held on the 7th of September 2005 at

Ludhiana. This function was organized by the PHD Chamber of Commerce and Industry to

promote economic development in Punjab.

Organization chart of nestle India limited Moga factory

“Our company’s primary function is the

transformation of perishable raw

materials into finished products that meet

consumer’s expectations for safety,

quality, convenience and value”

“Our company’s primary function is the

transformation of perishable raw

materials into finished products that meet

consumer’s expectations for safety,

quality, convenience and value”

Nestlé India Limited, Moga Factory

Factory Organization

Study of functioning of all departments

Study of functioning of different departments

Production

Human resources

Industrial performance

Engineering

Accounts and administration

Quality Assurance

Agricultural Services

Security

INTRODUCTION

Human Resources Department is a most important part of an organization. It is

concerns with human side of business. The various functions are performed in this

department. Business activities, which are varied and complicated in nature, cannot be

managed without Human Resources Department. Human resources is an important for the

running of a business as a main spring is essential for the function of a watch.

FUNCTIONS

PLANNING

ORGANISING

STAFFING

DIRECTING

CORRDINATING

CONTROLLING

COMPENSATION AND WELFARE TRAINING

In NESTLE MOGA the functions of Human Resources Department as are

following: -

i. ESTABLISHMENT

- Personnel records

- Policies, salary, survey structure

- Other establishment matters.

ii. DISCIPLINE AND LEGAL

iii. TIME OFFICE AND PAYROLL

iv. GENERAL ADMINISTRATIVE AND TRANSPORT

v.v. TRAINING AND DEVELOPMENT

Marketing Positioning

Each company and offering must represent a distinctive big idea in the mind of the

target, and each company must dream up new features services and guarantees, special

rewards for loyal users and new conveniences and enjoyments.

Yet even when a company succeeds in distinguishing itself, the differences are short –

lived. Competitors are quicker than ever in copying good ideas; therefore companies

constantly need to think up new value – adding features are benefits to win the attention and

interest of choice – rich, price – prone consumers.

Companies normally reformulate their marketing strategies and offerings several

times. Economic conditions change, competitors launch new assaults, and the product passes

through new stages of buyer interest and requirements. Consequently, strategies appropriate

to each stage in the product’s life cycle must be developed. The goal is to extend the products

life and profitability, keeping in mind that the product will not last forever. This chapter

explores specific ways a company can effectively position and differentiate its offerings is

achieve competitive advantage throughout the life cycle of a product or an offering.

All marketing strategy is built on STP – Segmentation, Targeting, and positioning. A

company discovers different needs and groups in the market place, targets those needs and

groups that it can satisfy in the superior way, and then positions its offering so that the target

recognizes the company’s distinctive offering and image. If a company does a poor job of

positioning, the market will be confused as to what to expect. If a company does an excellent

job of positioning, then it can work out of the rest of its marketing planning and

differentiation from its positioning strategy.

We define positioning as follows. Positioning is the act of designing the company’s

offering and image to occupy a distinctive place in the mind of the target market. The end

result of positioning is the successful creation of customer –focused value proposition, a

cogent reason why the target market should buy the product

In general, a company must avoid four major positioning errors:

1. Underpositioning:

Some companies discover that buyers have only a vague idea of brand. The brand is

seen as just another entry in a crowded marketplace. When Pepsi introduced its dear Crystal

Pepsi in 1993. customers were distinctly unimpressed. They didn’t see “clarity” as an

important benefit in a soft drink.

2. Overpositioning:

Buyers may have too narrow an image of the brand. Thus a consumer might think that

diamond rings at $5,000 when in fact Tiffany now offers affordable diamond rings starting at

$1,000

3. Confused positioning:

Buyers might have a confused image of the blood resulting from the company’s

making too many claims or changing the brand’s positioning too frequently. This was the

case with Stephen Jobs’s sleek and powerful NeXT desktop computer, which was positioned

first for students then for engineers, and then for business people, all unsuccessfully.

4. Doubtful positioning:

Buyers may find it hard to believe the brand claims in view of the product’s features,

price, or manufacturer. When GM’s Cadillac division introduced the Cimarron, it positioned

the car as a luxury competitor with BMW, Mercedes, and Audi. Although the car featured

leather seats, a luggage rack, lots of chrome, and a Cadillac logo stamped on the chasis,

customers saw it as a dolled – up version of Chevy’s Cavalier and Oldmobbile’s Firenza. The

car was positioned as “more for more”: customers saw it as “less for more.”

Solving the positioning problem enables the company to solve the marketing-mix

problem.

COMMUNICATING THE COMPANY’S POSITIONING

To communicate a company or brand positioning, a marketing plan should include a

positioning statement. The statement should follow the form: To (target group and need) and

(Brand) is (concept) that (point – of – difference). For example: “To busy professionals who

need to stay organized, Palm Pilot is an electronic organizer that allows you to back up files

on your PC more easily and reliably than competitive products.” Sometimes the positioning

statement is more detailed:

Mountain Dew:

To young, active soft – drink consumers who have little time for sleep, Mountain Dew

is the soft drink that gives you more energy than any other brand because it has the highest

level of caffeine. With Mountain Dew, you can stay alert and keep going even when you

haven’t been able to get a good night’s sleep.

Note that the positioning first states the product’s membership in a category (e.g.,

Mountain Dew is a soft drink) and then shows its point – of – difference from members of the

group (e.g. has more caffeine). The product’s membership in the category suggests the points

– of – parity that it might have with other products in the category, but the case for the

product rests on its points – of difference. Sometimes the members will put the product in a

surprisingly different category before indicating the points of difference.

DiGiorno’s pizza DiGiorno’s is a frozen pizza whose crust rises when the pizza is

heated of putting it in the frozen pizza category, the marketers positioned it in the delivered

pizza category. Their ad shows party guests asking which pizza delivery service the host

used, but he says: “It’s not delivery, its DiGiorno!” This helped highlight DiGiorno’s fresh

quality and superior taste over the normal frozen pizza.”

Once the company has developed a clear positioning statement, it must communicate

that positioning effectively through all the elements of the marketing mix. Suppose a

company chooses the “Best quality” positioning. Quality is communicated by choosing those

physical signs and cues that people normally use to judge quality. Here are some examples:

A lawnmower manufacturer claims its lawn mower is “powerful” and has a noisy

motor because buyers think noisy lawnmowers are more powerful.

A truck manufacturer under coats the chassie not because it needs under coating but

because undercoating suggests concern for quality.

A car manufacturer makes cars with good – slamming doors because many buyers

slam the doors in the showroom to test how well the car is built.

Ritz Calton hotels signal high quality by training employees to answer calls within

three rings, to answer with a genuine “smile” in their voices, and to be extremely knowledge

about all hotel services.

Quality is also communicated through other marketing elements. A high price usually

signals a premium – quality product. The product’s quality image is also affected by

packaging, distribution, advertising, and promotion. Here are some cases where a brand’s

quality image was hurt:

A well – known frozen food brand lost its prestige image by being on sale too often.

A premium beer’s image was hurt when it switched from bottles to cans.

A highly regarded television receiver lost its quality image when mass – merchandise

outlets began to carry it.

A manufacturer’s reputation also contributes to the perception of quality. Certain

companies are sticklers for quality; consumers expect Nestle and IBM products to be well

made. Smart companies communicate their quality to buyers and guarantee “customer

satisfaction or your money back.”

As important as positioning is to a company’s success, most ads fail to communicate

the company or the brand’s positioning. Kevin Clancy, CEO of Copernicus, a marketing

strategy consulting firm, examined 340 commercials and foun6t that only 7 percent

communicated any sort of positioning; and only 50 percent mentioned product features. Not

only is this a waste of advertising money, but un-positioned brands is overcrowded categories

tend to devolve into price – driven brands.”

ADDING FURTHER DIFFERENTIATION

The task of positioning is to deliver a central ideal about a company or an offering to

the target market. Positioning simplifies what we think of the entity. Differentiation goes

beyond positioning to spin a complex web of differences characterizing that entity. We define

differentiation as the process of adding a set of meaningful and valued differences to

distinguish the company’s offering from competitors’ offerings.

All products can be differentiated to some extent, but not all brand differences are

meaningful or worthwhile. A difference will be stronger to the extent that it satisfies the

following criteria:

Important:

The difference delivers a highly valued benefit to a sufficient number of buyers.

Distinctive:

The difference is delivered in a distinctive way.

Superior:

The difference is superior to other ways of obtaining the benefit.

Preemptive:

The difference cannot be easily copied by competitors.

Affordable:

The buyer can afford to pay for the difference.

Profitable:

The company will find it profitable to introduce the difference.

DIFFERENTIATION TOOLS

The number of differentiation opportunities with the type of industry. The Boston

Consulting Group (BCG) has distinguished four types of industries based on the number of

available competitive advantages and their size.

Volume industry:

One in which companies can gain only a few, but rather large, competitive

advantages. In the construction – equipment industry, a company can strive for the low – cost

position or the highly differentiated position and win big or either basis. Profitability is

correlated with company size and market share.

Stalemated industry:

One in which there are few potential competitive advantages and each is small. In the

steel industry, it is hard to differentiate the product or decrease manufacturing costs.

Companies can try to hire better sales people, entertain more lavishly, and the like, but these

are small advantages. Profitability is unrelated to company market share.

Fragmented industry:

One in which companies face many opportunities for differentiation, but each

opportunity for competitive advantage is small. A restaurant can differentiate in many ways

but end up not gaining a large market share. Both small and large restaurants can be

profitable or unprofitable.

Specialized industry:

One in which companies face many differentiation opportunities, and each

differentiation can have a high payoff. Among companies making specialized machinery for

selected market segments, some small companies can be as possible as some large

companies.

MISTAKES

1) Overly optimistic Forecasts.

2) Faulty Assessment of consumer performances.

MARKET POSITIONING

The place the product occupies in the consumers mind relative to competing products.

POSITIONING STRATEGIES

1) On product attributes.

2) On needs / benefits

3) On Usage occasion.

4) For Classes of users.

5) Against competition

6) Away from competitors

FOUR TYPES OF OPPORTUNITIES

1) Market Penetration

2) Market development

3) Product development

4) Diversification

As far as the study is concern this study is already done by Mr PUNITPUNIT

VATSAL SHARMA student of VATSAL SHARMA student of APEEJAY INSTITUTE OF MANAGEMENTAPEEJAY INSTITUTE OF MANAGEMENT

Jalandhar. Jalandhar. His results and findings are as follows.

1. As for as awareness is concerned it is fine for all the three products.

2. Maggie is most popular brand and it is because of its masala.

3. Rates of Maggie, Munch and Milo are also appropriate.

4. Munch is not a popular chocolate according to the survey because it’s taste is just

satisfactory not excellent.

5. As for as health drink milos is concerned people’s favourite is Bourn vita because

of its taste and chocolate flavour.

6. Mostly people consume health drink in the morning.

CONCLUSIONSCONCLUSIONS

1. As for as Maggie is concerned people want improvement in masala and also introduce

the chicken flavour.

2. Demand to Munch is just OK. It needs improvement in its taste.

3. Provide more and more fridges and book shelves for Nestle chocolates mainly to the

retailers.

4. Cadbury’s chocolates are more popular especially doing mil,.

Milo’s position as for as common man is not good is concerned because mostly people want

to drink Bornvita

The topic “Market positioning of Nestle’s Munch, Milo and Maggie in Ludhiana” is related to

Marketing Research. With ever increasing complexity of marketing and business activities, the

collection, analysis and interpretation of information has become much more intricated

warranting the services of specialized skills and refined techniques. This urgent need has given

birth to market research as a unique function of modern marketing. Though we cannot claim it as

the panacea for all the business ills, it can be regarded as the radar to the navigator, the dictionary

to the writer. Its importance can be measured by the amount spent on it by a known economic

power of the world namely America. America business community spends on an average three

hundred fifty million dollars every year on research and it is increasing at an annual rate of

twenty five percent. To gain familiarity with this term i.e. Marketing Research and to gain

familiarity with the ongoing trends of Marketing, I have chosen this topic so that I can be a

complete management trainee. By choosing this topic, I have gained the practical knowledge of

Marketing Research and its tools.

Every study is conducted for some objectives and aims. Without aims and objectives, study is

like a ship without radar. So aims and objectives of this study are:

To know the market positioning of Nestle’s Munch, Milo and Maggie in Ludhiana.

To know the consumption habits and consumption frequency of the consumers in

Ludhiana..

To know the consumer’s response.

Every project requires genuine research. Success of any project and getting genuine results

from that depends upon the research method used by the researcher.

Research in common parlance refers to a search for knowledge. “According to Redman and

Moore,” Research is a systematized effort to gain knowledge,”

Research methodology is the specification of method of acquiring the information needed to

structure or solve the problem at hand. It is not concerned to decision of the fact, but also

building up to data knowledge and to discover the new fax involved through the process of

dynamic change in the society

The main objectives of Research are:

1. To gain familiarity with a phenomenon or to achieve new insights into it.

2. To portray accurately the characteristics of particular products (Milo, Munch and

Maggie).

3. To determine the frequency with which something occurs or with which it is

associated with something else.

RESEARCH METHODOLOGY FOR THE REPORT

Initially, for the project work a questionnaire has to be prepared. This method of data

collection is quite popular. Individuals, research workers, private & public organizations and

even government, are adopting it. Questionnaire is of many types but in this research,

unstructured questionnaire is used with personal interview. In unstructured personal

interview, question are not arranged but keep in mind and asked from respondent the detailed

information which is needed. Some questions are open-ended and respondent are set free to

give information.

The questionnaire for this project consists mainly open-ended but there was few close-ended

also. To facilitate representatives samples for study. The questions were asked such as

awareness pricing of different products, modifications, regular users and what people

think about different products.

I divide the questionnaire in three parts as different age groups consist of 10-18 children and

teenagers, 18-25 youngsters, 25-40 housewives and professional.

Basics of Research

NAME OF STUDY DESCRIPTION

Data used Primary & secondary

Source of primary data Consumers

Source of secondary data Annual Report, Internet etc.

Instrument used Personal interview with

unstructured questionnaire

Sample size 105

Sample procedure Convenience sampling

Type of questionnaire Close-ended & open-ended

Region Ludhiana

Research Plan: - The research calls for developing the most efficient plan for gathering

the needed information. Designing a research plan calls for decision the:-

1. Sampling Unit

2. Sample Size

3. Technique of Sampling

4. Data Collection

Sampling Unit: As for as the sampling unit is concerned, every consumer is our sampling

unit.

Sample Size: Total sample size is 105 divide in 3 parts of 35 each consist of different age

groups,

Technique of Sampling: Convenience sampling was the technique adopted for sampling.

Data Collection: Data has been collected both from primary as well as secondary sources as

described below.

Primary Source: The primary sources of data were Questionnaire filled by consumers of

Ludhiana.

Secondary Source: The secondary sources of data were the various websites

And annual report of nestle India limited. These helped in gaining knowledge about the

industry. Other source is annual reports which really help a lot.

For age group 10-18

Q1. Are you aware of maggi ?

Response No of persons percentage

Yes 31 88

No 4 12

As for as awareness is concerned most of the people are aware about maggie.

Q 2. Which is your favorite noodle?

Response No of persons percentage

Maggi 29 82

Maggi Dal atta 3 9

Top roman 3 9

Any other 0 0

Maggi is the favorite noodle as 82% people said we like Maggi

Q3. Why you consume Maggi?

Response No of persons percentage

For taste 28 80

For hunger 7 20

For health 0 0

For necessity 0 0

Most of the people said we consume maggi for taste so as far as taste is

concern maggi has a monopoly. This is a very good sign, as only

Q4. Do you Consume maggi daily?

Response No of persons percentage

yes 2 6

no 33 94

The result is very clear as very few consume Maggi daily.

Q5. Have you seen our advertisements? If yes, then where?

Mode of Adve No of Respondents percentage

T.V 33 94

Magazine 1 3

Newspaper 1 3

Any other -- --

Most advertisements are watched on T.V., followed by magazines and shops

Q6. What modifications do you want in Maggi?

Responses No of respondents Percentage

Less price 14 40

Improve quality 3 9

Improve taste 5 15

No modification 2 5

Change packing 11 31]]]

.As most of the people said to decrease the price and fewer one said for change

the packing.

Q7. What factors lead you to buy maggi?

Responses No of respondent percentage

Brand 4 12

Taste 30 85

Price 1 3

Any other 0 0

Here, taste is preferred by the people as they eat Maggi for taste, some also

think for price and brand also.

Q8. How do you rate the taste of Maggi?

Responses No of respondents Percentage

Excellent 19 54

Good 10 28

Satisfactory 6 18

Not good - -

Cant say - -

as

far as taste is concern nestle has monopoly over the taste as every- one is

satisfied with the taste.

Q 9 Are you aware of munch?

Response No of persons percentage

yes 30 85

no 5 15

As for as awareness is concerned most of the people are aware about munch

Q 10. Which is your favorite chocolate?

Responses No of respondents Percentage

Munch 4 12

Diary milk 23 65

Milky bar 3 8

5 star 5 15

Dairy milk is the rate no one by the people as munch share is very low so

company has to do something better for increment.

Q11.Have you seen our advertisements? If yes, then where?

Mode of Adve No of Respondents percentage

T.V 33 94

Magazine 1 3

Newspaper 1 3

Any other 0 0

Most advertisements are watched on T.V., followed by magazines and shops.

Q12 How do you rate the taste of Munch?

Responses No of respondents Percentage

Excellent 15 42

Good 9 27

Satisfactory 11 31

Not good - -

Cant say - -

Nestle have to increased the taste of Munch from good or satisfactory to

excellent.

Q13 Why you go for munch?

Responses No of respondent percentage

Price 4 11

Brand 4 11

Taste 26 75

Any other 1 3

Here, most of the people enjoy the unique taste of munch. No many persons go

for brand as they go for taste.

Q14 Are you aware of Milo?

Response No of persons percentage

yes 29 82

no 6 18

As for as awareness is concerned most of the people are aware about Milo.

Q15. From the following list below please tick the drink you aware

about?

Don't Know

Partitally

aware Well aware Total

Milo 7 19 10 35

Complain 1 18 16 35

Bournvita 2 5 28 35

Boost 6 14 15 35

Horlicks 0 17 18 35

Most of the people are fully aware about Bournvita and they are Partitally aware

about Milo

0%

20%

40%

60%

80%

100%

Well aware

Partitally aware

Don't Know

Q16. Have you tried milo?

Response No of persons percentage

yes 20 57

no 15 43

As more than 50% of people tried nestle milo so company has to maintain

balance and increase its sales.

Q17. Have you seen our advertisements? If yes, then where?

Mode of Adve No of Respondents percentage

T.V 32 91

Magazine 1 3

Newspaper 2 6

Any other -- --

Most advertisements are watched on T.V., followed by magazines and

newspaper

Q 18. When you take health drink generally?

Response No of persons percentage

Morning 19 54

Lunch time 0 0

Evening 8 23

Any time 7 20

Cant say 1 3

Most of the persons take health drink morning followed by some who drink

evening.

Q19. Which is the most popular from your point of view?

Responses No of respondents Percentage

Milo 0 0

Bournvita 27 78

Boost 2 6

Horlicks 4 12

complan 2 6

As

milo has no popularity so company has to take some serious steps towards the

sales of milo as bournvita enjoy the good hold over the market.

Q20. How do you rate the taste of Milo?

Responses No of respondents Percentage

Excellent 4 12

Good 9 26

Satisfactory 5 15

Not good 2 5

Cant say 15 42

Nestle have to increased the taste of Milo from good or satisfactory to excellent.

After analyzing properly the information gathered through the mentioned

methodology, we come to the following findings about Nestle’s Munch, Milo and Maggi:

1. As far as awareness is concerned it is fine for all the three products. Mostly people have

come across their advertisements in TVs, Newspapers and Magzines. But TV is more

popular medium. Thus we can say that TV is a fruitful source of publicity and we also find

that Nestle spends a lot on the publicity of its products in order to reach to the consumers.

2. Nestle’s Maggi is most popular brand among the consumers and it is because of its

masala. People like Maggi very much and they mostly consume 1-5 or 6-10 Maggis in a

week. They prefer Maggi in evening. But some are ready to consume it at anytime.

3. From the analysis, We find that people want reduction in the price of Maggi. They are

satisfied with its Packing, its taste but think that its price should be reduced so that it can

become economical for each and every person.

4. Nestle’s chocolate “Munch” is not a popular chocolate among the consumers according to

the survey because it’s taste is just satisfactory not excellent. People prefer to consume

chocolates of Cadbury like Cadbury Dairy Milk, Cadbury Five Star etc. than Nestle’s Munch.

5. As far as health drinks are concerned people’s favourite health drink is Bournvita because

of its taste and chocolate flavour. People prefer to take Health drinks in Morning or in

evening. They like Bournvita more than Nestle’s Milo. But analysis also points that the taste

of Milo is Good.

1. Sometimes people don’t give appropriate information and fill the questionnaire

just for the sake of fun.

2. Mostly retailers don’t want to give information and act rudely. Some even refuse

to give response.

3. People don’t have time to fill questionnaires in their busy life.

4. Number of questions should be more than this, so that you come to know the

accurate result.

5. Generally people don’t respond well for open ended questions like the suggestion

if any.

6. Instead of three, there should be one product, so that proper stress can be given on

the research.

7. metimes people don’t give appropriate information and fill the questionnaire just

for the sake of fun.

8. Mostly retailers don’t want to give information and act rudely. Some even refuse

to give response.

9. People don’t have time to fill questionnaires in their busy life.

10. Number of questions should be more than this, so that you come to know the

accurate result.

11. Generally people don’t respond well for open ended questions like the suggestion

if any.

Instead of three, there should be one product, so that proper stress can be given on the

research.

About Nestle’s Maggi:

From the above analysis and findings, we can conclude that Nestle enjoys a strong Market

Position in case of its product Maggi among its competitors. Its competitors like Top ramen

Noodles, Pasta do not stand in front of Nestle’s Maggi. Mostly people have come across its

advertisement in TV, Newspapers, Magzines. They find its taste very good. But survey points

out that its price should be reviewed. People want a reduction in its price. Above all, We can

conclude that Nestle’s Maggi is KING in its product area.

About Nestle’s chocolate Munch:

As far as Nestle’s Munch is concerned, it does not enjoy a good market position. Its

competitors Cadbury has a strong position over it. People rank the chocolates of Cadbury

much better than Nestle’s Munch. As far as its price is concerned, people are satisfied. But

Nestle will have to do a lot to make the taste of Munch EXCELLENT from satisfactory

(pointed in analysis and findings). Thus we conclude that Cadbury gives a strong competition

to Nestle’s Munch and makes its position in chocolate market a little weaker. Nestle should

provide fridges and shelves to the retailers for the easy storage of Munch. It will also serve as

an advertising media.

About Nestle’s Milo:

From the above study, we can conclude that Nestle’s Milo, a health drink, has a good taste

but fails to compete fully with Bournvita. People enjoy Bournvita as a health drink much

more than Nestle’s Milo. Thus Nestle’s competitor in the area of health drink is more

stronger and makes the market position of Nestle’s Milo a little poor. Nestle will have to do a

lot to shake the market position of its competitors and make a good stand over them. For this

it can provide good offers at economical and affordable price. It can adopt sales promotion

efforts.

Above all, we come to the point that market position of Nestle’s three M i.e Munch, Milo and

Maggi enjoys a different status. Maggi is very strong, weakning the position of its

competitors but in case of chocolate and health drink, Nestle’s competitors has a strong

market position. Thus Nestle has to follow the three different market strategies for its 3Ms.

1) Company has to take some important steps for increase the sale of its energy drink Milo.

2) As most of the people demand less price for maggi so company should give some

attractive scheme.

3) Company must organize some advertisement campaign for the promotion of its chocolate

and energy drink.

4) As company is the leader in noodle market so for maintain this, company has to add some

more variety in noodles.

www.nestle.in

www.google.com

www.yahoo.com

www.thehindubusiness.com

www.etstrategicmarketing.com

BOOKS:-

NAME AUTHOR

Marketing

Management

-KOTLER

Marketing

Management

-SONTAKKI

Marketing-A

Managerial

Introduction

- GANDHI

Research Methodology -KOTHARI

Questionnare

1) Are you aware of Maggie?

a) Yes b) no

2) Which is your Favorite noodle?

a) Maggie b) Maggie dal atta

c) Top roman d) any other

3) Why you consume Maggie?

a) For taste b) for hunger

c) For health d) for necessity

4) Do you consume Maggie daily?

a) Yes b) no

5) Have you see our advertisement, if yes then where?

a) T.V b) Magazine

c) News paper d) any other please specify

6) What modification do you want in Maggie?

a) Less price b) improve quality

c) Improve taste d) change packing

e) No modification

7) What factor leads you to buy Maggie?

a) Brand b) taste

c) Price d) any other

8) How do you rate the taste of maggie?

a) Excellent b) Good

c) Satisfactory d) not good

e) Can’t say

9) Are you aware of nestle Munch?

a) Yes b) no

10) Which is your favorite chocolate?

a) Munch b) dairy milk

c) Milky bar d) 5 star

11) Have you see our advertisement, if yes then where?

a) T.V b) Magazine

c) News paper d) any other please specify

12) How do you rate the taste of munch?

a) Excellent b) Good

c) Satisfactory d) not good

e) Can’t say

13) Why you go for munch?

a) Price b) Brand

c) Taste d) any other

14) Are you aware of Nestle Milo?

a) Yes b) no

15) From the following list below please tick the drink you aware about.

Brand Don’t know Partially aware Well aware

Milo

Complain

Bournvita

Boost

Horlicks

16) Have you tried Milo?

a) Yes b) no

17) Have you see our advertisement, if yes then where?

a) T.V b) Magazine

c) News paper d) any other please specify

18) When do you want to take health drink generally?

a) Morning b) Lunch time

c) Evening d) Any time

e) Can’t say

19) Which is most popular from your point of view?

a) Milo b) Bournvita

c) Boost d) Horlicks

e) Complain

20) How do you rate the taste of nestle milo?

a) Excellent b) Good

c) Satisfactory d) not good

e) Can’t say

PERSONAL INFORMATION:

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