nestle summer training project
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nestle summer training projectTRANSCRIPT
Deogiri Institute of Management Studies,
Aurangabad
A
Mini Project Report
On
“To Study of Marketing Mix on Nestle”
Submitted by
Mr. Ajay Singh Shekhawat
Roll no:-22
MBA I semester
Batch C
2011-2012
6
Deogiri Institute of Management Studies,
Aurangabad
A
Mini Project Report
On
“To Study of Marketing Mix on Nestle”
Submitted by
Mr. Ajay Singh Shekhwat
Roll no:-22
MBA I semester
Batch C
Prof. Anchal Tyagi Prof. Jeevan Salunke Dr. Ulhas Shiurkar
Project guide HOD Director2011-2012
In partial fulfillment of the completion of the course of
Dr. Babasaheb Ambedkar Marathwada University, Aurangabad
7
CertificateThis is to certify that, Mr. Ajay Singh Shekhawat is the
students of Deogiri Institute of Engineering And Management
Studies, Batch 2011-12. They have successfully completed the
Mini project report (CP109) on “To Study of Marketing Mix
on Nestle” and had submitted the report to Dr. Babasaheb
Ambedkar Marathwada University, Aurangabad.
In practical fulfillment of the course Master of Business
Administration (F.Y.1st semester) 2011-2012.
Prof. Anchal Tyagi Prof. Jeevan Salunke Dr. Ulhas Shiurkar
Project guide HOD Director
8
Declaration
I, Mr. Ajay Singh Shekhawat here by declare that, the
Mini project report submitted by me in partial fulfillment
of MBA Degree course is genuine work.
It has not been submitted either fully or partially to
their or any other institute prior in any other connection I
have done the project as per the guidelines of our
respected guide.
Mr. Ajay Singh Shekhawat
9
Acknowledgement
I, Ajay Singh Shekhwat here by thank my project guide,
Prof. Anchal Tyagi for guiding and encouraging me to
complete the Mini Project.
I also thank Prof. Jeevan Salunke (HOD) and Dr. Ulhas
Shiurkar (Director), Deogiri Institute of Engineering and
Management Studies, Aurangabad for encouraging and guiding
me through the Mini Project study.
Mr. Ajay Singh Shekhawat
Roll no:-22MBA I semester
Batch C2011-2012
10
INDEX
Sr. No. Name Page No.
1 Introduction 12
2 VISION 14
3 MISSION 15
4 RESEARCH METHODOLOGY 16
5
MARKETING MIX PRODUCT PRICE PROMATION PLACE
1819222426
6 SWOT ANALYSIES 30
7 FINDING 32
8 SUGGESTIONS AND RECOMENDATIONS 33
9 CONCLUSION 36
10 BIBLOGRAPHY 37
11 ANNEXURE 38
11
INTRODUCATION
Nestlé was founded in 1866 by Henri Nestlé and is today the
world's biggest food and beverage company. Sales at the end of
2005 were CHF 91 bn, with a net profit of CHF 8 bn. Nestlé employ
around 250,000 people from more than 70 countries and have
factories or operations in almost every country in the world. The
history of Nestlé began in Switzerland in 1867 when Henri Nestlé,
the pharmacist, launched his product Farine Lactée Nestlé, a
nutritious gruel for children. Henri used his surname, which means
’little nest’, in both the company name and the logotype. The nest,
which symbolizes security, family and nourishment, still plays a
central role in Nestlé’s profile. Since it began over 130 years ago,
Nestlé’s success with product innovations and business acquisitions
has turned it into the largest Food Company in the world. As the
years have passed, the Nestlé family has grown to include
chocolates, soups, coffee, cereals, frozen products, yoghurts, mineral
water and other food products. Beginning in the 70s, Nestlé has
continued to expand its product portfolio to include pet foods,
pharmaceutical products and cosmetics too. Today, Nestlé markets a
great number of products, all with one thing in common: the high
quality for which Nestlé has become renowned throughout the
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world The Company's strategy is guided by several fundamental
principles. Nestlé's existing products grow through innovation and
renovation while maintaining a balance in geographic activities and
product lines. Long-term potential is never sacrificed for short-term
performance. The Company's priority is to bring the best and most
relevant products to people, wherever they are, whatever their
needs, throughout their lives. Taste of Nestlé in each of the countries
where Nestlé sell products. Nestlé is based on the principle of
decentralization, which means each country is responsible for the
efficient running of its business - including the recruitment of its
staff.
That's not to say that every operating company can do as it
wishes. Headquarters involve sets the overall strategy and ensures
that it is carried out. It's an approach that is best summed up as:
'centralize what you must, decentralize what you can'. Nestlé is a
company which is present in all over the world but it has difference
and unique motto to deal in all over the world. Nestlé believes that
they should think about their organizations globally but they deal
with people by interacting with them locally.
“Thinking globally - acting locally”
13
VISION
Nestlé's vision of making good food central to enjoying a good
healthy life for consumers everywhere. This implies gaining a
deeper understanding in many areas of nutrition and food research
and transforming the scientific advances into applications for the
company. Having a broad vision the company is doing its best for
their consumers to show the great sense of responsibility.
Nestlé’s aim is to meet the various needs of the consumer every day
by marketing and selling food of a consistently high quality.
The confidences that consumers have in our brands is a result of
our company’s many years of knowledge in marketing, research and
development, as well as continuity -consumers relate to this and feel
they can trust our product.
MISSION
“AT NESTLE, WE BELIEVE THAT RESEARCH CAN HELP US
MAKE BETTER FOOD SO THAT PEOPLE LIVE A BETTER
LIFE.
14
MARKETING MIX
PRODUCT PLANNING
PRICE PLANNING
PROMATION PLANNING
PLACE(DISTRIBUTION) PLANNING
15
PRODUCT PLANNING
• Nestle first launched its powder milk in the market in 2003
and then came the liquid powder.
• Nestle has introduced the milk powder which outshined others
because of its great taste, refrigeration, ready to drink, less
volume, more stable shelf life.
• At Nestle the Research and Development department is called
as the “APPLICATION GROUP”. No other company matches the
R&D presence of Nestle. No other company dedicates so many
human and financial resources to R&D as Nestle.
• The technology is imported and is latest.
• The factory mil powders spray drying capacity was doubled in
1999 with commissioning of new evaporator.
16
• The actual target is a company’s secret that will not be
disclosed. But we received an overwhelming acceptance and
liking of the product.
• Over many years company’s primary concern has been to
improve the quality and volume of milk for UHT processing
and other milk based products.
• The target market of the product is definitely he tea drinkers
who have a choice and capacity for the best taste.
• There was a problem of segmentation but it was quickly taken
into notice and the problem was readily removed.
• It is designed to be used in general but it is popular mostly in
offices and cafés for tea purposes.
• Now the error rate has been reduced to zero.
2004 --------------------------- 3 complaints
2005 --------------------------- 6 complaints
2006 --------------------------- 4 complaints
2007 ---------------------------- 2 complaints
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• Well the product is matchless in quality and has no match. It
has a sufficient name and place in the market.
• On the basis of profit margin Nestle seldom make donations o
non- profit organizations and charitable institutions.
• Nestle has its own dairy farms from which we collect milk and
we have a special team of veterans who regularly inject animals
against epidemic diseases.
• The Nestle logo is a must, other than that the product is made
available in convenient sizes and attractive colors. The WHITE color
is the chief color to depict the color f milk.
• Competitors are:
PIA, MC-DONALDS and PEARL CONTINENTAL in India.
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PRICE PLANNING
Global pricing policies:
Apart from global coordination of prices on specific products and
firms usually adopt one of the three alternative pricing policies that
cut across their product lines. These are
1. Polycentric pricing
2. Geocentric pricing
3. Ethnocentric pricing
Nestle use geocentric pricing policy.
Nestle Products price planning
Nestle dairy products are priced keeping in view the buying
power of middle-income and high-income social classes.
The cost includes the cost of manufacturing, labor, raw
materials etc. The industry sales growth is largely driven by
population growth as well as the amount of advertising and
product innovation taking place in the industry. The company
has resorted to pricing discrimination strategies to maximize
the value of consumer demand
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Being a multinational brand, the pricing objective of Nestle is
mainly to increase sales as it has already penetrated the
market. Their prices are not affected by price changes by
competitors, and they don’t engage in price wars. Competition
is met through innovation. The prices of Nestle milk change as
the product size is changed of the Product Life Cycle. And
Because of the contract between the seller companies, they
offer same price. So there is no skim based or penetration
based pricing by company.
The retail prices are different according to their size and brand.
However prices have been standardized throughout Pakistan
and there is no differentiation based on geographical areas.
There is no change in prices according to season. It remains the
same.
They adopt same strategy in international marketing as in local
marketing. But the prices are according to the international
currency.
20
PROMOTION PLANNING
The promotion of Nestle Dairy product are no doubt the best of
all. Its intense advertising has really captured the minds of all
categories of people besides media advertising; the company has
signed several agreements with different sports in order to
promote. For the Advertising, the company has a policy that the
commercial should best communicate its message toward its target
markets. The promotional planning of Nestle milk has taken the
emotions of youngsters quite successfully. Promotion is handled by
the marketing department but campaigns are launched through an
agency. Promotion is done through the electronic media, billboards
and print media (press).
Promotion Objectives
To project sales of Nestle Dairy Products
To create awareness among the masses about any new product
of Nestle
To achieve brand loyalty
Selection of Promotion Media
Selection of promotion media is done on the basis of whether the
company wants:
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Immediate sales uplift
- Achieved through television and other forms of electronic
media
Or
Gradual sales uplift
Promotion planning depends on marketing push or marketing
pull strategy. Nestle milk is not considered a seasonal product in
Pakistan, so they do not need to promote very much.
22
PLACE (DISTRIBUTION) PLANNING
They distribute their products nationally and internationally
throughout the world. Nestle are distributed using an indirect
channel, that is, dealers. Nestle milk is sent to warehouses after
manufacture
23
NESTLE
DEALER
RETAILER
FINAL CONSUMERS
They use intensive distribution for marketing coverage.
Because its goals are to have wide market coverage, channel
acceptance and high total sales and profits. Distribution is made
nationally and internationally through Motor. Carriers Waterways
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Airways Railroads Throughout the country in every city and village.
It includes suppliers and retailers
Supply chain:
There are various departments
Raw material department
Finished goods department
From the finished goods department the product goes to the
warehouses.
Export Expansion Strategy:
There are two types of export expansion strategies
1. Water fall
2. Sprinkler
Nestle use waterfall strategy. It moves gradually to different
countries.
25
RESEARCH METHODOLOGY
Research refers to search for knowledge. One can also
define research as a scientific and systematic search for pertinent
information on a specific topic. It is an art of scientific investigation.
Research Methodology:-
It is the way to systematically solve a problem. The
methodology adopted in this study is explained below:-
Research Design
Literature Survey :
I have used books, prospectus & websites.
Type of research:
The research is descriptive in nature. Descriptive research
is one that describes things as exists in present.
Data collection:
Sources of data
1. Primary Sources – I have used questionnaire as primary source
for collecting data for my study.
2. Secondary sources – I had collected my secondary data from
websites & Prospectus.
26
ANNEXURE
Q: which Chocolate do you like most?
Ans KITKAT 80% ECLAIRS 20%
Q: which flavors do you like most?
Ans Chocó 65% strawberry 35%
Q: if you like chocolate colour ya other ?
Ans chocolate 73% other 27%
Q: why are you select nestle products?
Ans reasonable 20% quality 35% both 45%
Q: which size do you prefer in ECLAIRS ?
Ans regular 80% large 20 %
Q: which NESTLE products do you like most?
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Ans chocolate 30% maggi 70%
SWOT ANALYSIS OF NESTLE
STRENGHTS
Nestle is a multinational company which establish his bench
mark across in INDIA and all over world.
Nestle is trust by consumer due to its quality and brand
name.
Nestle products price is affordable.
Nestle promotes their products by attractive
advertisement and free sampling.
WEAKNESESS
In all over world many food company enter in
competition of Nestle.
28
Nestle products promotion policy is not more attractive
OPPOTUNITIES
Nestle in Pakistan has a great opportunity for expanding its
market.
It also has opportunities largely in China and India as well.
Through proper marketing research Nestle can cash on to
these opportunities.
THREATS
Nestle is facing the threats by worldwide community due to its
violation of international marketing standards.
Many campaigns have been held against Nestle in this regard
which can damage the name and trust of its customers.
29
FINDINGS OF THE STUDY
Nestle Corporation has is satisfactory to customer needs. As it
can be clear that Nestle as a company has expanded its
products and services from Food, Qualitative like need of
everyday food.
In providing a wide range of products and services with high
quality, Nestle has by far influenced most of the customer’s
perception favorably towards its products.
Nestle is fair with consideration of the quality of the products
and services offered , The only problem is that, Nestle has
priced its products for a middle or lower class customer to
afford to buy those products.
Apart from that Nestle has targeted its market mainly to urban
customers as are the only customers who can afford such
products.
Nestle has to create also some of low end products with low
prices which can be affordable to low income users.
30
SUGGESTIONS AND RECOMENDATIONS
As Nestle is the best company all over the world but there is
some recommendations and suggestions.
NESTLE products would be try to available not only for urban as well as
ruler.
It attracted the customers by good advertisement and distributed free sample
in schools colleges and ruler areas.
It tried to maintain quality and change in taste according the consumer.
For online promotion of products its use FS4I ( free staff for INDIA)
To come ahead the competition NESTLE make price reasonable for all.
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CONCLUSIONS
Nestle Brand enjoys market leadership position and it is also
prefer by the majority of the consumer for Product among
different brands OF Everyday product available in the market.
In different types of Coffee, Chocolate is preferred by most of
consumer’s and they have ranked Everyday product as No 1
among different Types of Product.
Nescafe is preferred by the consumer among different type of
coffee.
Majority of the Consumer prefer KITKAT, ECLAIRS they like
Crispy, Creamy and Sweet Chocolate.
Most of the consumers Buying Decision is not only influenced by
any specific single characteristics but it is influenced by either the
combination of more than
1. Thus majority buying decision is influenced by Performance of
Everyday Product in Total, Of course in different consumer
segments there are different characteristic impacting buying
Decision.
Occupation Wise Classification
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o For Senior Person: The most influencing characteristic
impacting buying decision is Price.
o For Young generation and Child: Price & Performance
have impact influence on buying decision. It signifies that
Service Person purchase Product not only considering price
but along with it some different features such as Quality,
Brand, Taste etc. are also impacting the Decision. But still
Price & Performance are dominating features for this
Consumer Segments.
BIBLIOGRAPHY
A Complete Guide to Programming in Microsoft Office
2007
Advanced Programming Using Microsoft Word 2007
Marketing Management ---- Philip Kotler 12th Edition
Advanced MS Power Point
Company's Draft Prospectus.
Company’s 13th Annual Report
Business Research --- By Cooper
Www. nestlemilk.com
Www. economictimes.com
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