A

PROJECT REPORT

ON
COMPETITIVE ANALYSES OF NESTLE S NESCAFE SUNRISE COFFEE IN GOA
FOR
NESTLE INDIA LTD

SUBMITTED TO UNIVERSITY OF PUNE

IN PARTIAL FULFILLMENT OF 2 YEARS FULLTIME COURSE
MASTERS IN MARKETING MANAGEMENT

SUBMITTED BY
KALPESH L. CHODANKAR

(BATCH 2005-2007)

SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION AND COMPUTER

APPLICATION

LONAVALA, Dist. PUNE

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 COMPANY CERTIFICATE

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 CERTIFICATE

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr.KALPESH L. CHODANKAR, a student of our institute

SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION AND COMPUTER
APPLICATION has successfully completed the project on COMPETITIVE ANALYSES
OF NESTLE S NESCAFE SUNRISE COFFEE IN GOA undertaken in NESTLE INDIA
LTD from 5th June 2006 to 05th AUGUST 2005. This is the original study of Mr.
KALPESH L. CHODANKAR the sources used by him have been acknowledged in his
report. The report is submitted in the partial fulfillment of two-year full time course in
MASTERS IN MARKETING MANAGEMENT (2005-2007) as per the rules of the
PUNE UNIVERSITY.

Date :

Place :

Prof. P.K. Sinha

( PROJECT GUIDE ) ( DIRECTOR )

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 ACKNOWLEGEMENT

It takes a great pleasure to express my heartfelt gratitude to those who have directly or
indirectly helped me in the project.

I would like to thanks first of all to the god , my family members, my friends who have
been to me of great support throughout the project.

I acknowledge and express my sincere thanks to our Director Prof. P.K.Sinha (

Sinhgad Institute of Business Administration and Computer Application, Lonavala) for
providing the opportunity for successful completion of this project.

I want to give special acknowledgement to Mr. Sankalp Thali ( Sales officer North
Goa- Nestle India Ltd), for giving me a chance to work for the company. He initiated my
thought process and added many ideas to improve this project.

I am deeply indebted to my Company Guide Mr. Rajeev Karkada, ( Area sales

Manager- Nestle India Ltd) for his endless support during the project. He taught me a great
deal, helped me and gave me support as and when required..

I also want to acknowledge Mr. my Faculty Guide, for his

invaluable guidance and support that helped me carry out this project successfully. His
expert guidance and keen interest in my study kept me motivated at all times.

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 I would also like to thank company s sales team, Company s distributors my
respondents who spend their valuable time for providing information and filling up the
questionnaire and for making this project a successful one.

TITLE INDEX

SR.NO. TOPIC PAGE NO.

1 EXECUTIVE SUMMARY 1-3

2 OBJECTIVE AND SCOPE OF PROJECT 4-5

3 COMPANY PROFILE 6 - 27

4 RESEARCH METHODOLOGY 28 - 30

5 DATA ANALYSES AND INTERPRETATION 31 - 38

6 FINDINGS 39

7 LIMITATIONS 40

8 CONCLUSION 41

9 RECOMMENDATION 42

10 BIBLIOGRAPHY 43

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 11 ANNEXTURE 44 - 45

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CHAPTER 1

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CHAPTER 2

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CHAPTER 3

INTRODUCTION TO THE COMPANY

CORPORATE INFORMATION
COMPANY S PRODUCT PROFILE
PRODUCTS PHOTOGRAPH
HISTORYCAL DEVELOPMENT OF THE COMPANY
FACTORY PHOTOGRAPH
SWOT ANALYSES OF THE COMPANY
LIST OF COMPETITORS
DISTRIBUTION NETWORK OF COMPANY
ABOUT NESCAFE SUNRISE AND HLL- BRU COFFEE

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CHAPTER 4

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CHAPTER 5

CHAPTER 6

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CHAPTER 7

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CHAPTER 8

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CHAPTER 10

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CHAPTER 11

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CHAPTER 11

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 EXECUTIVE SUMMARY

Every business organization big or small has its own sets of problems. Sometimes they enjoy
advantages over others. Sometimes they also have to bear the heat of the competition. They
are not above the ups and downs of the business.

Nestle India Ltd is India s biggest FMCG company having variety of products in Beverages,
Infant food/ Milk food, Chocolates and Confectionery Culinary Products. But the company
is facing a stiff competition in the market especially in beverages it has a competition for
Nescafe Sunrise coffee from HLL Bru coffee in Goa Region. To some extent HLL_ Bru
coffee is boosting its sales capturing the market share of the Nestlé s Nescafe Sunrise.

Title :

Competitive analyses Of Nestle s Nescafe Sunrise Coffee In Goa

Duration: 2 months

The Main objective of this study is as follow :

To find the market share of Nestle s Nescafe Sunrise Coffee and HLL- Bru.

To know the customer demand for nestle s Nescafe sunrise coffee as against HLL-
Bru coffee from retailers.

To understand if any shortcomings from the retailers for Nescafe sunrise coffee
with reference to the sale in their shop.

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This study required a detailed study of Goa region. A detail retailer survey was conducted to
find out all the aspects of coffee market in Goa. Potential retailers who

keeps Nestlé s Nescafe Sunrise & HLL-Bru Coffee were only surveyed to know the effect of
both the Brands sale in their outlet

To conduct the detail study a printed Questionnaire was prepared for the retailers &
direct Interviews were held tom get the first hand information. The data collected from the
survey was analyzed & conclusion is drawn. Based on the interpretation & analysis made the
recommendation or Suggestions were put across to the Company to improve or increase the
sale of Nescafe Sunrise Coffee.

FINDINGS

Nestle s Nescafe sunrise is having more market share as compare to HLL- Bru in
Goa
Promotional offer plays a very important role in selling more of HLL- Bru coffee by
the retailers
Nescafe Sunrise coffee is having more customer demand as regard HLL- Bru in the
market.
There is less focus given on advertisement for Nescafe sunrise coffee.
HLL is having more Product line in coffee segment so the retailers are having a wide
choice to keep the product according to the customer demand.
Some contest should be run so as to influence the retailers to sell more and run the
contest.

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 CONCLUSION
Nestle India Limited is one of the fastest growing FMCG Company with its strengths
for ongoing product innovation & renovation. It performs very well. It still have a stiff
competition in the market for its various products especially from HLL Bru Coffee for
Nestle s Nescafe Sunrise Premium Coffee.
The analysis & Interpretation made in this study by me comes to the conclusion that
there is an increasing demand for coffee in Goa. Promotional offer plays a very important
role incase of retailers to sell more & Consumers to purchase more. HLL strength in coffee
segment is that it offers better promotional offer to the retailers, so the retailers are influence
to sell more even though the demand is more to Nestle s Sunrise Coffee in Goa.
Finally I would like to conclude that Nestle s Nescafe Sunrise coffee can capture the
HLL Bru market share if there is more attractive promotional offer & consumer awareness
to have more reach to the consumer in the market.

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 OBJECTIVES OF THE PROJECT

To find the market share of Nestlé s Nescafe Sunrise coffee as against the HLL
Bru coffee.

To study the level of effectiveness of promotional offer.

To know the customer demand for Nestlé s Nescafe sunrise coffee as against the
Hindustan Lever s Bru coffee from retailers.

To understand the shortcomings from the retailers for Nescafe sunrise coffee with
reference to the sale in their shop.

To determine what are the reasons for the retailers on selling more and to purchase it
more.

To give suggestion or recommendation to the company on how to improve or

increase the sale of Nescafe sunrise coffee in Goa

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 SCOPE OF THE PROJECT

The study and analyses made through survey in this project is within the boundary of

Goa region.

The respondents are the potential retailers who only keep Nescafe sunrise and its

competing product.

The Product scope is only to Nestlé s Nescafe sunrise coffee.

The sample size are the high profile retailers

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 WELCOME

TO

NESTLE INDIA LTD

Narendra Singh - Chairman emerttus

BOARD OF DIRECTORS
Martial G. Rolland - Chairman and Managing Director
Shobinder Duggal - Director Finance and Control
Michael W.O. Garrett - Non Executive Director
Ravinder Noralr - Non Executive Director
Tajendra Khanna - Non Executive Director
Rajendra Pawar - Non Executive Director
Richard Syleon - Alternate Director to Michael W.O. Garrett

Secretary
D. Murly Sr. Vice President Legal and company Secretary

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 Name Of the company

NESTLE INDIA LIMITED

CORPORATE INFORMATION

MANAGEMENT COMMITTEE

Martial G. Rolland - Chairman & Managing Director

Shobinder Duggal - Finance & Control
Stewart Dryburgh - Chocolates & Confectionery
Muhammed Hamza - Coffee & Beverages
Shivani Hegde - Food
Christian Van Houtteghem - Infant Nutrition
Vineet Khanna - Supply Chain
Virat Mehta - Communications
B. Murli - Legal & Company Secretary
Suresh Narayanan - Sales
Hari Nariani - Globe
G.G. Pillai - Additional Channels
Beda Rust - Technical
Rajkamal Sharma- Exports
H. K. Singh - Human Resources
R. Singh - Corporate Affairs & Strategic Planning
Mayank Trivedi - Shelf Stable & Chilled Dairy

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HEAD OFFICE
Nestlé House
Jacaranda Marg, M Block,
DLF City, Phase II,
Gurgaon 122 002 (Haryana)

BRANCH OFFICES
Spencer Plaza, 6th Floor 769, Anna Salai, Chennai - 600 002 (Tamil Nadu)

7, Hare Street, Kolkata - 700 001 (West Bengal)

Hiranandani Gardens, Main Street, 4th Floor,

Colgate Research Centre Building, Powai, Mumbai - 400 076 (Maharashtra)

M-5A, Connaught Circus, New Delhi 110 001

FACTORIES
Village Maulinguem (North), Bicholim Taluka - 403 504 (Goa)

Ludhiana - Ferozepur Road, Near Kingwah Canal, Moga - 142 001 (Punjab)

Industrial Area, Nanjangud - 571 301 Mysore District (Karnataka)

P.O. Cherambadi - 643 205 District Nilgiris (Tamil Nadu)

Patti Kalyana, Kiwana Road, Samalkha - 132 101 District Panipat (Haryana)

Plot No. 294-297, Usgao Industrial Area, Ponda - 403 406 (Goa)

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 COMPANY S PRODUCT PROFILE

Nestlé India is a subsidiary of Nestlé SA of Switzerland. With six factories and a large
number of co-packers, Nestlé India is a vibrant company that provides consumers in India
with products of global standards and is committed to long term sustainable growth and
shareholder satisfaction. The Company insists on honesty, integrity and fairness in all
aspects of its business and expects the same in its relationships. This has earned it the trust
and respect of every strata of society that it comes in contact with and is today acknowledged
amongst India s Most respected Companies and amongst the Top Wealth Creators Of
India .

Nestle India Ltd, 51% subsidiary of Nestle SA , is among the leading branded food player in
the country. It has a broad based presence in the foods sector with leading market shares in
instant coffee, infant foods, milk products and noodles. It has also strengthened its presence
in chocolates, confectioneries and other semi processed food products during the last few
years. The company has launched Dairy Products like UHT Milk, Butter and Curd and also
ventured into the mineral water segment in 2001. Nestle s leading brands include Cerelac,
Nestum, Nescafe, Maggie, Kitkat, Munch and Pure Li fe

Nestlé has maintained its thrust on improving availability of its products and on initiatives
to increase the freshness of stocks available to consumers. New products are continuously
launched in all product segments. In the current year the company has launched mineral
water, UHT milk, butter, curd, new tomato and curry flavors in Maggi noodles, a new
confectionery - Nestle Choco Stick at an affordable price point of Rs2, a soft chewy fudge
Milkybar Choo and Nestea iced tea. The company is also setting up Café Nescafe and
Coffee Corners across metros and mini-metros.

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Beverages like coffee, tea and health drinks contribute to about 30% of Nestle s turnover.
Beverage sales registered a 15% yoy growth . While about 14% of sales come from
Beverages 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 relaunched 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 is 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 FY00 and FY01. Turnover
contribution from exports registered a 17.5% volume growth in F12/01. 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 43% 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 dominating 87%
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 .

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Chocolates & Confectionery

Nestle forayed into chocolates & confectionery in 1990 and has cornered a fourth share of
the chocolate market in the country. The category contributes 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 Choo
at attractive price points to woo new consumers. Chocolate confectionery sales registered a
strong 21.5% yoy growth in 2001 aided by good volume growth in Munch, Kitkat and
Classic sales. Nestle relaunched 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 (45% market share) and the ketchup (43% 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% yoy growth .

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 PRODUCTS OF NESTLE INDIA LTD

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 HISTORICAL DEVELOPMENTS
OF
NESTLE INDIA LTD

1959
- On 28th March, the Company was incorporated at New Delhi. The company was promoted
by Nestle Alimentana S.A. through a wholly owned subsidiary, Nestle Holdings Ltd.,
Nassau, Bahama Islands.

1970
- 34,251 shares issued against machinery to collaborators.

1980
- 22,50,000 bonus shares issued in proportion 1:1 on 30.7.1980.

1987
- During the year installation of a new factory at Nanjangud (Karnataka), for the
manufacture of instant coffee was in progress.

1989
- The name of the company was changed from `Food Specialities Ltd.' to `Nestle
India Ltd.' on 24th March.

1990
- During the year company entered into chocolate business by introducing Nestle
premium chocolates.

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1993
- Samalkha factory was commissioned during the year and underwent expansion for
cereal based products

1994
- During the year company launched a number of new products viz., Cerelac Soya, Milk
maid, Dessert Mixes, Maggo Tonit's Special Cooking Bases, Maggi 1-2-3 noodles,
Contodina snack dressing and the chocolate items, milky base marbles and barone peanut
.And also launche dBonus and Polo.

1995
- During the year company commenced construction of a new factory at Bicholim, Goa. At
the same year, instant noodles factory was installed and commissioned at Samalkha factory.
- During the year company launched Kit Kat manufactures at the new factory at Ponda, Goa.

- During the same year the Nanjangud factory was commissioned and the unit was to
manufacture MILO - the World's Largest Selling Chocolate energy food drink.

- The Chennai-based Indian Food Fermentations tied up with Nestle India Ltd., to market its
dosa and vada batter in consumer pack, in the country. The company has signed an
agreement to this effect recently. Nestle would sell the ready-to-use dosa, vada, sambhar and
unique masala dosa batter in consumer packs, under its own brand name in the country. 1996

- During the year company launched MILO-Chocolate energy food drink in South India and
a range of culinary products like, Dosa and Sampar mixes, pickles and new varieties of
soups under the brand "Maggi".

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1997
- NIL is one of the top players in the processed food & beverages industry and the largest
producer of instant coffee with a 49 per cent marketshare.
After the success of KitKat and Polo, Nestle India has launched its first product in the hard
boiled sugar confectionery market, Allen's Splash.

- Nestle's wafer chocolate brand, Kit Kat, which created a major dent in the market
with its launch, its international milk drink brand Milo has garnered a mere three per cent
share (value terms) in the Rs 500 crore market, a year after its launch in India.
- Nestle India Ltd. (NIL) leads the list of the country's top 15 coffee exporters for the
ongoing calendar year in terms of both quantum and value for the period January 1 -
October23.

1998
- Swiss multinational Nestle SA has ordered an international auditing of its Indian
subsidiary, which has been mired in a controversy of alleged financial irregularities and
insider trading.
- Nestle SA and the BM Khaitan group set up a joint venture, Nutritional Food Products
India Ltd, in 1990 which was amalgamated with NIL in 1993.- Nestle has set up a parallel
distribution network across the country.

1999
- The company has also set up a special cold chain for product distribution in select retail
outlets.
- Nestle India has entered into a 10-year agreement with Campco in February, 1990 for
manufacture and supply of bulk quantity of chocolates and cocoa products.

2000
- Nestle is set to enter the domestic bottled water business and will launch the product under
the brand name `Pure Life'.

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- The Company has launched its ultra heat treated liquid milk, `Nestle Pure Milk', in
Bangalore, Chennai, Hyderabad and Kochi.
- The Company has launched Perrier and will celebrate "Perrier Invitation Golf-2000".
- Nestle India Ltd. to launch Nescafe Gold and Nescafe Gold Decaffeinated.
- Nestle India has launched a range of gift packs under the Fox confectionery brand name for
the festival seasons.
- The Company launched its second premium mineral water brand San Pellegrino in India.

2001
- Nestle India Ltd. has launched `Pure Life', its mass-market bottled water, adding one more
premium brand to the already saturated Rs 600-crore bottledwater segment.
- The board of directors of Nestle India on July 27, nominated the Chairman and Managing
Director of NIIT Ltd, Mr Rajendra S. Pawar, on the company board with effect from October
this year.
- The board of directors of Nestle India on July 27, nominated the Chairman and Managing
Director of NIIT Ltd, Mr Rajendra S. Pawar, on the company board with effect from October
this year.

2002
-Nestle Group increases holding in Nestle India to 53.27%
-Ties up with Nilgiris to co-brand various dairy products like dahi, paneer, ghee and possibly
milk
-Launches a throat lozenge branded Acti-V to compete against Proecter & Gamble's Vicks
cough drops
-Regains top coffee exporter position in India
-Parson Nutritional Pvt. Ltd. buys the assets of Excelsia Foods, including its manufacturing
unit at Ghaziabad, from Nestle S.A

2003
-Rolls out Nestle Development Nutrition Plan for infant weaning and launches its

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infant food CERELAC 123 as a range of products graded to the needs of infants in each
stage of the plan
-Nestle India's executive director Ranjit Raj re-elected to be the Coffee Board member
representing instant-coffee manufacturers
-Nestle SA, Switzerland, buys 1.01 million shares in its Indian arm 'Nestle India'. With this
purchase, the parent holding in its Indian arm goes up to 59.8 per cent from 58.7 per cent
-Consumer Body files case against Nestle India in National Consumer Dispute Redressal
Commission (NCDRC) regarding the non-compliance in weight in its 50-gm Nescafe packs
-Signs a 100 per cent buyback pact with Bengal Nestor's India Ltd (BNIL) for its ultra heat
treated milk and other dairy products
-Ed Marra, the head of Nestle's Canadian business, will succeed Frank Cella as head of
strategic business units and marketing at the turn of the year, the Swiss group said in a
statement.

2004
-Nestle India bags Tetra Pak's annual dairy and beverage industry award
-Nestle India has signed on Bollywood actress Preity Zinta to feature in its latest commercial
brand maggi
-Nestle introduces 'Sweet Lassi' in Delhi, Punjab and Haryana
-Nestle India said on June 24, 2004, it has signed Rani Mukherjee as brand ambassador for
its chocolate brand Nestle Munch and the advertising campaign will be released on June 25

2005
-Neslte India launches new variant of Maggi

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 NESTLE INDIA LIMITED

MOGA FACTORY IN PUNJAB

Nestlé set up its operations in India, as a trading company, in 1912 and began
manufacturing at the Moga factory on 15th of November 1961. The production
started with the manufacture of Milkmaid and other products were gradually brought
onto the fold. Nestlé India Limited was formally incorporated in 1978, prior to which
the manufacturing license was issued in the name Food Specialities Limited. Moga
factory is the largest and oldest producing the widest range of food products.

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 SWOT ANALYSES OF NESTLE INDIA LTD

STENGTHS
Access to the Nestle group s proprietary technology/ brands, expertise and the
extensive centralized research and development facilities under the general license
agreement.
High quality and safe food products at affordable prices endorsed by the Nestle seal
of guarantee.
Strong equity with consumers as a company with High quality brands.
On going product innovation and renovation , to convert consumer insights.
Well diversified product portfolio.
Efficient supply chain.
Distribution structure that allows wide reach and coverage in the target markets .
Capable and committed human resources.

WEAKNESES
Exports of coffee to Russia, constitutes substantial part of overall exports.
Complex supply chain configuration.

OPPORTUNITIES
Potential for expansion in the small towns and other geographies.
Potential for growth through increased penetration .
Growing trend for Out of home consumption .
Leverage Nestle te

chnology to develop more products that provide nutrition health and wellness.

THREATS
Competitive environment with diverse players.
Rising prices of raw materials and fuels.
Change in fiscal benefits/ laws.

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 LIST OF COMPETITORS

There are number of competitors for nestle India ltd in the field of fmcg There is stiff
competition that makes this company very competitive with its innovation and renovation.
The competitors list is as given below:

Hindustan lever limited

Amul India limited

Cadbury India ltd parle India ltd

Britannia India limited

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 COMPETITIVE ANALYSES
Competitive analysis, as the name implies, is an exploration of the companies in a given
industry sector or market niche that are competing with your company s products or services
for market share. The analysis may be an in-depth exploration of the top five competitors, or
a larger number of competitors could be examined (typically with less depth in the analysis).
In most cases, the client will have identified the target competitors for you.

While this project focuses on competitive analysis in the for-profit arena, it is worth noting
that non-profit organizations can benefit equally from this analysis (which they might term a
comparative analysis, if they viewed the other organizations as working toward a common
goal with them).

Understand the competition

The primary benefits of any competitive analysis are a better understanding of what your
competitors are doing, what they are offering to customers, and how to maintain your
competitive advantage. The findings from this analysis are likely to factor strongly into your
own company s strategic planning. However, this is definitely not the only take-away from
the process of analyzing competitors.
The analysis offers information about content and functionality that they have probably not
considered. This is especially true for newcomers to your industry and should be fairly
common; not everyone will be a subject matter expert. Looking longer-term, this educational
process benefits not only the current project, but also any future project in that same
industry.

Doing this project has really enhanced my performance for the next project ever will be held
in my career. It has given me the practical exposure while working in such competitive
market

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 Distribution Network Of Nestle India Ltd

Factory

Mother Godowns

Warehouse / C & S

Distributors

Retailers

Customers Customers Customers

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Description Of Distribution channel
Nestle India Limited is the primary company in India involved in the production of food
products. It is very prestigious company its food products are regarded as quality food.
Nestle India Limited has a wide distribution network operating on a national basis.
The various channels of physical distribution for nestle are Mother Godown . Clearing
and Sales Agents, Cash Distributors and Retailers(outlets) .

Mother Godowns
This is the first line agent in the distribution network for channels.Stocks are
moved on consignment basis from the main factory to the different regions. These Mother
godowns are the transshipment points. Nestle enters into a contract with the mother
godownns . These agents in the form of mother godowns are given at flat fees by the
principal company i.e. Nestle.

Clearing and Sales agents ( C & S )

These are the second line agents in the distribution channel .
Clearing & Sales agents generate invoice on the basis of the requirement of the cash
distributors. Once the invoice is generated by C&S agents and communicated to Mother
Godown then stocks are released by mother godown to C&S.

Distributors
These are the third line agents in the distribution network. They are regarded as
business partners by the company. The distributors send orders to C&S agents on weekly
basis. The C&S Agents generate invoice, get the stock from mother godown & supply them
to the distributors. Nestle never provides goods to cash distributors on credit. Distributors
have to pay directly to the company by demand draft or cheque. Distributors has to work
within the overall guidelines provided by the Company.

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Retailers (outlets)
This are the fourth final line agents in the distribution network. Categories of the
retailers are the following:-
1. Wholesellers
2. grocery shop also called (Kirana shop)
3. Medical shop
4. Non-conventional outlets like panwalas

The distributors are responsible for the collection of money from the retailers. The retailers
are not at the direct linkage with the principle company, i.e. Nestle retailers are link up with
distributors.

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 About Nescafe Sunrise coffee

In the Beverages category, the

Company has performed satisfactorily. NESCAFE is
number one brand in the world for coffee and coffee
mixes and has leveraged its understanding of the
changing lifestyles of consumers to continuously add
value. NESCAFÉ continues to be the largest brand of
Instant Coffee in the Indian market. During the later
part of the year

the Company re-launched NESCAFÉ SUNRISE

coffee chicory blend after it was renovated with superior grade of plantation beans to provide
better coffee taste and aroma and competitive advantage. During the year, the Company
continued to innovate and renovate and in early 2006, toddlers over 2 years of age, packed
with essential nutrients to help them grow strong. Nescafe sunrise is run under the the brand
name of Nescafe which is absolutely pure coffee. Sunrise premium is a chicory mix coffee
blend which means there is a mix of chicory substance and pure coffee. In Sunrise premium
there is 70: 30 coffee blend.

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 About HLL- Bru coffee
On the coffee front, HLL has had success only in the southern states. Bru coffee has
been popular only in the south. Its popularity is linked to the strong association it has with
the filter coffee, which forms the morning cuppa of most south Indian homes. Surely, the
company s campaign launched in the sixties to attract the south Indian consumers has
achieved its objective.

Now, the company is all set to relaunch Bru in a big way in the entire country. Instant
coffee that filters well with your taste bud, is the catchline of the company s nationwide
campaign to popularise the brew.

The company also plans to install coffee-vending machines on strategic locations like
airports, railway stations, restaurants, cinema halls, theatres and shopping malls throughout
India. It has already installed machines in several locations in Mumbai and Delhi.

Coffee has been doing badly in the international market for the last two years. Despite a
fall in prices of raw coffee, retail sales in the Indian market, instead of improving, have gone
down by about 9 per cent. Bru has a 36-per cent share in the instant coffee market.

With HLL s new advertising campaign - Happiness begins with Bru - the FMGC
major plans to storm the entire country and hopes to increase its market share.
Already, the company s coffee sales have gone up by 10 per cent in the first half of this year.
Coffee business had another exciting year. The instant coffee category registered strong
growth aided by the relaunch of Bru with a new high impact identity backed by
communication and modern pack formats. The brand franchise was further strengthened
with the filter coffee brand, Deluxe
Green label being relaunched as Bru Roast & Ground. The change has been we! I received
by consumers and is expected to drive growth and enhanced imagery for the brand.

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 Price and Package Comparison

Nestle s Nescafe
Sunrise Coffee HLL- Bru Coffee

Package MRP Package MRP

Sunrise
1.6grm Rs. 1 Bru1.5grm Rs.1
Sunrise
13grm Rs.10 Cappuccino Rs.6

Mocha Rs.6

Cinnamon Rs.6
Sunrise
50grm Rs.37 Bru Rs.10
Sunrise
200grm Rs.140 Bru 50grm Rs.37
Sunrise
650grm Rs.328 Bru200grm Rs.140

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 RESEARCH METHODOLOGY

Methodology

It is a systematic approach of identifying the problem, collecting the information, analyzing

the information and providing alternate suggestions.Three type of project research can be
distinguished. Some research is exploratory, i.e, to gather preliminary data to shed light on
the real nature of the problem and suggest possible hypothesis on new ideas. Some are
descriptive., to ascertain certain magnitudes.

1. Defining the problem and research objective:

The research objective state that what information is needed to solve the problem.
Here the objective of the research is doing competitive analyses of Nestlé s Nescafe
sunrise coffee and finding the shortcomings it .

2. Developing research plan

Once the problem is defined, the next step is to prepare a plan for getting the
information needed for the research. The present study will adopt exploratory
approach where in there is a need to gather a large amount of information before
making a conclusion if required. The descriptive and casual approaches may also be
used.

3. Collection and Sources of Data:

To collect the data, relevant information is necessary as regards to the project; as a

result data was collected by using two ways:

Primary Data
Secondary Data

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 Primary Data

In this the information is being possessed with first hand information, which is new
and fresh.

The tools used by me for the primary data are as follow :

Questionnaire
Face-to-Face Interview
Observation

Secondary data

The information that is received with the help of Journals, Magazines, Financial
reports or which is already present with the company.

References used from management books

Gathered information through World Wide Web (www).
Support and knowledge provided by Faculty and Company guide.
Financial reports of the company

4. Sampling Plan

Sampling unit:: The respondents were mainly the retailers who were
stratified in according to the monthly turnover
Sampling size: A survey was conducted for 100 hundred respondents
across North Goa.

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 5. Analyze the collected information:

This involves converting raw material in to useful information. It involves tabulation of

data and using statically measures on them for developing frequency distribution and
calculating the averages and dispersions.

6. Report research finding:

This phase will mark the culmination of the marketing research efforts. The report with
the research finding is a formal written document.

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1. Do you keep Coffee for sale ?

No. of respondents % of Respondents

Yes 100 100%

No - -

No.of respondents

yes
No

Interpretation

The respondents were only those who keep coffee for sale in their shop. Therefore the no. of
respondents are 100 who keep coffee for sale.

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2. How is the sale of coffee in your outlet ?

No. of respondents % of respondents

Increasing 48 48%

Decreasing 36 36%

Same 16 16%

SALE OF COFFEE

36% Increasing
48%
Decreasing
Same
16%

out of 100 respondents 48% of respondent say the sale of coffee is increasing in their outlet.

16% of them say the sale is the same neither increased nor decreased

The rest 36 % say coffee sale decreases in their outlet

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3. Which are the different coffee brands you keep for sale ?

No. of respondents % of respondents

HLL BRU COFFEE 100 100%

NESCAFE SUNRISE 100 100%

Others ( local brand) 28 28%

DIFFERENT COFFEE BRANDS FOR SALE

120
100
80
O UTLE TS

HLL- BRU
60 NESTLE-SUNRISE
40 OTHERS
20
0
HLL- BRU NESTLE- OTHERS
SUNRISE
BRANDS

Interpretation

Out of 100 respondents there are 100 % of retailers who keep HLL Bru as well as Nestlé s
Nescafe sunrise for sale

Among this 100 retailers 28% are those retailers who also keep local coffee for sale in along
with HLL Bru and Nestlé s Nescafe sunrise

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- 50 -
4. Which coffee brand is more selling ?

No. of respondents % of respondents

HLL- Bru 30 30%
Nestle Sunrise 50 50%
Others 20 20%

Coffee Brand Selling More

100
90
80
70
OUTLETS

HLL- Bru
60
Nescafe Sunrise
50
others
40
30
20
10
0
BRAND

Interpretation

Out of 100 retailers 30% retailers are selling more of HLL- Bru coffee as compare to
Nescafe sunrise and other local brands.

50% retailers out of 100 retailers sell more Nescafe sunrise then other brands.

20% of retailers sell also more of other brands

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5. What are the reasons for more selling of coffee brand ?

Reasons For More S elling Of Coffee Brand

100
80
60 Nescaf e
Outlets

Sunrise
40 HLL- BRU
20
0
ge

es

d
r

y
t

n
ffe

en

an

l it
gi
ic
an

em

m
ar

bi
lO

Pr
tR

De

il a
M
ti s

of
na
uc

va
er

er
io

e
od

ng

A
dv

m
ot
Pr

Ra

sto
om

Cu
Pr

Reas ons

Interpretation

Out of 100 retailers

70 retailers sell more of Nescafe sunrise because of Product
range. and 30 retailers sell more of HLL- Bru
60 retailers sell more of HLL- Bru coffee because of Promotional Offer as compare
to Nescafe sunrise.
58 retailers sell more of HLL- Bru coffee because of advertisement as compare to 42
retailers selling Nescafe sunrise.
55 retailers sell more of HLL- Bru coffee because of range of prices as compare to 45
retailers selling Nescafe sunrise.
Margins are equally important for retailers selling Nescafe sunrise and HLL- Bru.
60 Retailers sell more of Nescafe Sunrise Because customer demand as compare to
HLL- Bru
53 Retailers sell more of Nescafe sunrise because of availability of product as
compare to HLL-Bru

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6. How you find the Promotional offer of the coffee brand?

Impressive Satisfactory Unsatisfactory

Bru 45 42 13
Sunrise 40 36 24

Promotional offer

100
90
80
70
60
Sunrise
50
Bru
40
30
20
10
0
Impressive Satisf actory Unsatisf actory

Out of 100 retailers 45% of retailers find HLL- Bru s promotional offer impressive as
compare to only 40% are impressive for Nescafe sunrise.

HLL- Bru s satisfactory level is 42% as compare to 36% of Nescafe sunrise coffee.

Nescafe Sunrise coffee unsatisfactory level is 24% as compare to HLL Bru is lower to
13%

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7. Which size of packs are sold more ?

Small Medium Large

Bru 30 55 15
Sunrise 40 45 15

Size wise sale of coffee brand

100
80
Outlets

60 Bru
40 Sunrise
20
0
Small Medium Large
Different Size Pack

Note : There are many retailers who sell mix number of size of packs

Interpretation
Out of 100 retailers 40 retailers sell more of medium size pack of Bru coffee whereas
only 45 retailers sell medium size of medium packs
In small size packs Nescafe sunrise is sold more by 40 retailers and Bru is sold only by 30
retailers
There are equal number of retailers selling large size of packs i.e. 15

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 Market Share of Nestle s Nescafe sunrise coffee and HLL- Bru

Market Share

35% nestle sunrise

Bru

65%

Nestle s Nescafe sunrise coffee is having 65% market share where as HLL
Bru is having 35% market share in Goa.

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 FINDINGS

From the analyses made in my study following below are the findings from the study
:
Nestle s Nescafe sunrise is having more market share as compare to HLL- Bru in
Goa
Promotional offer plays a very important role in selling more of HLL- Bru coffee by
the retailers
Nescafe Sunrise coffee is having more customer demand as regard HLL- Bru in the
market.
There is less focus given on advertisement for Nescafe sunrise coffee.
HLL is having more Product line in coffee segment so the retailers are having a wide
choice to keep the product according to the customer demand.
Some contest should be run so as to influence the retailers to sell more and run the
contest.\
There are no continuous display to the retailers for Nescafe Sunrise as it is for the
HLL - Bru

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 LIMITATION

1. To collect the primary data time limit is an important constraint. Since it will take
more time to collect the data.

2. Respondents may reluctant to tell about their business information.

3. The project is limited to a certain areas of Goa region

4. Various respondents may give different feed back so it might be difficult to find
the proper conclusion.

5. The data collected represents the whole population .

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 CONCLUSION

Nestle India Limited is one of the fastest growing FMCG Company with its strengths
for ongoing product innovation & renovation. It performs very well. It still have a stiff
competition in the market for its various products especially from HLL Bru Coffee for
Nestle s Nescafe Sunrise Premium Coffee.
The analysis & Interpretation made in this study by me comes to the conclusion that
there is an increasing demand for coffee in Goa. Promotional offer plays a very important
role incase of retailers to sell more & Consumers to purchase more. HLL strength in coffee
segment is that it offers better promotional offer to the retailers, so the retailers are influence
to sell more even though the demand is more to Nestle s Sunrise Coffee in Goa.
Finally I would like to conclude that Nestle s Nescafe Sunrise coffee can capture the
HLL Bru market share if there is more attractive promotional offer & consumer awareness
to have more reach to the consumer in the market.

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 RECOMMENDATION

With the analyses made and findings done in this study the following
recommendations are put forward:

Provide attractive promotional offers to the retailers as well as to the

consumers where retailers will purchase more and sell more.
Try to increase the margin for the retailers.
To add new customers give free sample of small packs free with the
existing product of the Nestle India Ltd.
Customer feedback Should be constantly made so as to know the
innovation incase required in the product.
As customer awareness is more important to increase the market share of
any product more advertisement should be done in the form of hoardings
and commercial advertisement.

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 BILIOGRAPHY

To obtain more information regarding the present study and to substantiate it with theoretical
proof, the following references were made:

List of Books and other supplementary material referred:

Marketing Management - By - Philip Kotler

Research Methodology - By - C. B. Kothari
Financial Reports - Nestle India Ltd

List of Websites

www.google.in
www.Nestle.co.in
www. Nestle .com

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- 60 -
 ANNEXTURE

Questionnaire
Retailer: Location:

Tel. No: Contact Person:

1) Do you keep coffee for sale ?

o Yes
o No

2) How is the sale of coffee in your outlet ?

o Increasing
o Decreasing
o Same

2.1What are the reasons for increase or decrease of sale of coffee ?

3) Which are the different coffee brands you keep for sale ?

o HLL - BRU
o NESTLE SUNRISE
o OTHERS

4) Which coffee brand is more selling ?

o BRU
o SUNRISE
o OTHERS

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5) What are the reasons for more selling of the coffee brand ?

Yes No
Product Range

Promotional Offer
Advertisement
Range of prices
Margin
customer demand

6) How you find the promotional offer of the coffee brand ?

Impressive Satisfactory Unsatisfactory

Bru
Sunrise
Other
7) Which coffee brand and size of packs are more sold ?

Small Medium Large

Bru
Sunrise
Other
8) How much do you sell in terms of quantity of each coffee brand ?
BRU SUNRISE OTHERS
Week
Month
Other

9) What are your suggestions to increase the sale of coffee brand

For Bru
__________________________________________
__________________________________________

For Sunrise
________________________________________
________________________________________

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