A PROJECT REPORT

ON
MARKET POSTIONING OF
NESTLE,S MUNCH MAGGI & MILO

NESTLE MOGA FACTORY

SUBMITTED AS PARTIAL FULFILMENT OF

POST GRADUATE PROGRAMME IN EXECUTIVE LEADERSHIP

SUBMITTED TO SUBMITTED BY
Ms. RAMITA VERMA SUKHJINDERPAL SINGH
80916317041

SHRI RAGHUNATH RAI MEMORIAL SCHOOL

OF MANAGEMENT
BANNUR(PATIALA)

1
 Certificate of completion
This is to certify that Mr. Sukhjinder Pal singh, Roll no. 80916317041 was assigned the

project entitled “Market Postioning of Nestle’s 3 M’s Moga Factory”.He has

submitted the project in accordance with the guidelines issued by the University. To the

best of my knowledge and belief this is his original work and has not been submitted

elsewhere for award of any other degree\diploma.

Ms. RAMITA VERMA

Date: __________

2
 PREFACE

For the completion of the MBA, it has been mandatory to obtain an industrial in
Marketing. This training session really help me in gathering practical knowledge of
market.
I have prepared this project on the topic, “Study of Market Postioning of
Nestle’s 3 M’s Moga Factory” in which I have written about overview of Mareketing
condition of Nestle Moga Factory.
This report is prepared during summer training is life’s greatest treasure as it is
full of experience observation and knowledge.
The training held was very gainful as it took us close to real life. This period also
provide a chance to observe theoretical knowledge and practical shape and learn from
results.
This report is a result of six weeks training that I have been taken at Nestle Moga.
It has been very educative and fruitful experience for me, for it has give me an insight
into some practical experience without which classroom knowledge can be regarded
incomplete.
I wish this great organization success so it may flourish and serve the nation and
have to achieve many goals.

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 ACKNOWLEDGEMENT

Before I get into the details of my project, I would like to show my sincere gratitude by
adding few heart full words for the people who were part of this project report in
numerous ways. People who gave unending support right from the stage the project were
conceived.

I would like to give a special thanks to Mr. ABHISHEK SHARMA (Marketing

Manager) for granting me the project. I am indebted to him for the active involvement in
the extensive discussions, which have taken place over the past month despite his busy
schedule. He has been an invaluable source of thoughtful comments and conceptual
insights and I would like to thank him for the intellectual input and help in
conceptualizing the project.

I would also like to express my thanks to Mr. Lalit Sehgal (Sales Officer) for providing
me the opportunity to do my summers at Nestle Moga Factory.

I would also like to thank Mr. Subhash Aggarwal (Accounts Officer

), Mr. Ashok Pandit (RM/PM Warehouse Incharge) and Mr. Jaswinder Singh (Accounts)
for the cooperation and intellectual counsel they gave me throughout the work on this
project. They were the people whose guidance helped me in the successful completion of
the project.

I would also like to thank all the contractors people in Plant and Admin block who have
directly or indirectly have contributed to the completion of the project.

Sincerely,
Sukhjinderpal Singh

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 DECLARATION
I, SUKHJINDERPAL SINGH, hereby certify that the work embodied in the
research project “Market Postioning of Nestle’s Munch, Milo & Maggi” for the
partial fulfillment of Degree of Master of Business Administration program of
Punjab Technical University, Jalandhar from Shri Raghunath Rai Memorial
School Of Management Bannur(Patiala) is an original work of mine and data
provided in the study is authentic to the best of my knowledge.
I have not submitted this report to any other institute or University for award of any
other degree.

SUKHJINDERPAL SINGH

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 TABLE OF CONTENTS

INTRODUCTION - A WORD ABOUT NESTLE.............................................9

NESTLÉ PHILOSPHY..................................................................................................10
PRODUCT RANGE OF NESTLÉ................................................................................10
OPERATIONS IN INDIA ............................................................................................11
NESTLÉ INDIA HAS SIX FACTORIES IN THE COUNTRY...................................12
INDIA HAS THE CO-PACKING ARRANGEMENT ALSO:....................................13
SALIENT FEATURE OF MOGA FACTORY.............................................................14
NESTLE – THE ORGANIZATION.............................................................................19
CONTRIBUTION OF NESTLÉ TOWARDS ECONOMIC & SOCIAL
DEVELOPMENT AREA..............................................................................................19
NESTLÉ TODAY .........................................................................................................20
CORPORATE OBJECTIVES.......................................................................................21
PRESENT FINANCIAL POSITION OF THE COMPANY........................................21
LATEST DEVELOPMENTS........................................................................................22
“ ORGANISATION STRUCTURE OF NESTLE INDIA, MOGA FACTORY.”.......23
INTRODUCTION ........................................................................................................24
FUNCTIONS.................................................................................................................24
............................................................................................................26
.......................................................................................................26
POSITIONING ACCORDING TO RIES AND TROUT.............................................28
POSITIONING ACCORDING TO TREACY AND WIERSEMA .............................30
POSITIONING: HOW MANY IDEAS TO PROMOTE?............................................31
COMMUNICATING THE COMPANY’S POSITIONING ........................................32
ADDING FURTHER DIFFERENTIATION ...............................................................34
DIFFERENTIATION TOOLS......................................................................................35
MISTAKES....................................................................................................................36
MARKET POSITIONING............................................................................................36
POSITIONING STRATEGIES ....................................................................................36
FOUR TYPES OF OPPORTUNITIES .........................................................................36
RESEARCH METHODOLOGY FOR THE REPORT.................................................40
Q1: Are you aware of Nestle’s Munch, Milo and Maggi?.......................43
Munch: Yes No............................................................43
Milo Yes No............................................................43
Maggi: Yes No.............................................................43
Q2: Have you come across the advertisements? If yes, then where?. .43
Newspapers Magzines TV................................43
Q3: When do you like to consume Maggi generally?............................43
...........................................................................................................43
Morning Lunchtime Evening Anytime............43
Q4: How many Maggis you consume in a week?..................................43

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 Never consume 1-5 6-10 11-15 16-20 . . .43
More than 20.......................................................................................43
Q5: What do you say about the taste of Maggi?..................................43
Very good Good Satisfactory Not good.............43
Q6: What modifications do you want in Maggi?...................................43
Improve taste Less price Packing .........43
No modification .........................................................................43
Q7: Which is favourite chocolate?........................................................43
Cadbury dairy milk Nestle’s Munch Others..............43
Q8: How do you rate the taste of Nestle’s Munch?..............................43
Excellent Good Satisfactory Not good...........44
Can’t say..............................................................................................44
Q9: Which health drink is more popular from your point of view?.......44
Bournvita Nestle’s Milo Others.......................44
Q10: When do you want to take the health drinks generally?.............44
Morning Lunchtime Evening Anytime..................44
Q11: How do you rate the taste of Nestle’s health drink Milo?............44
Excellent Good Satisfactory Not good .44
Can’t say..............................................................................................44
...................................................................................................44
........................................................................................................44
..................................................................................................44
MARKET SURVEY..................................................................................45
ANALYSIS AND GRAPHS........................................................................45
Q9. Which is the common health drink?...............................................54
People generally prefer Bournvita than Milo as a health drink.............54
Q10. When do you take health drinks generally?.................................55
People generally take health drinks in Morning but some even prefer in
evening................................................................................................55
Q11. What do you say about the taste of Milo?....................................56
Taste of Nestle’s Milo is Good..............................................................56
..........................................................................................................56
LIMITATIONS ........................................................................................57
AND .....................................................................................................57
PROBLEMS............................................................................................57
.............................................................................................59
.................................................................................................59
After analyzing properly the information gathered through the
mentioned methodology, we come to the following findings about
Nestle’s Munch, Milo and Maggi:..........................................................60
............................................................................................................60
About Nestle’s Maggi:..........................................................................62
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 smoodles, Pasta
do not stand in front of Nestle’s Maggi. Mostly people have come
7
 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. ...................62
About Nestle’s chocolate Munch:.........................................................62
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................................................62
About Nestle’s Milo:..............................................................................62
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.
.............................................................................................................62
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.............................................................................................62

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 INTRODUCTION - A WORD ABOUT NESTLE

HENRY NESTLÉ
(1814 – 1890)

Nestlé India is a multinational company with its worldwide operations in over 70

countries. The founder of Nestlé S. A. was Henry Nestle who from a modest beginning
founded the company in 1866 at Switzerland for manufacturing milk powders for babies.
At that time Switzerland faced one of the highest infant mortality rate and the milk
formula saved the lives of many infants whose mothers were unable to breast feed
successfully.

At present Nestlé is the world’s largest food company with its international
headquarters at Vevey, Switzerland. With almost 500 factories worldwide it employs
more than 2 Lac people.

Nestlé is often quoted by most as “multinational of multinationals.” There is a

good reason, as less than 2% of the turnover comes from the domestic market in
Switzerland.

Nestlé is very decentralized in its operations and most of the markets are given
considerable autonomy in its operation. It is more of a people and products oriented
company rather than systems oriented company There are “ unwritten guidelines” which
are to be followed, based on common senses and a strong set of moral principals
emphasizing a lot of respect for fellow beings.

Nestlé has always adapted to the local conditions and at the same time integrates
its Swiss heritage. It has always taken a long-term view in the countries in which it
operates.

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 Therefore, one can see a lot of investment R&D and risk taken in new product
areas. There is a great emphasis placed on training by the company. It believes in
rewarding and promoting people from within.

Today its product brand name ‘Nestlé’ is associated with ‘quality products’ in
worldwide consumer markets.

NESTLÉ PHILOSPHY

When Henri Nestle introduced the first commercial infant formula in 1867, he
also created a symbol of the Bird’s nest, graphic translation of his name, which
personifies the company’s business. The symbol, which is universally understood, evokes
security, motherhood and affection, nature and nourishment, family and tradition. Today
it is the central element of Nestlé’s corporate identity and closely parallels the company’s
corporate values and culture.

PRODUCT RANGE OF NESTLÉ

Its activities include manufacturing and marketing of: -

 Condensed milk
 Powdered milk
 Ice creams
 Other dairy products
 Infant foods
 Chocolates & Confectionery items
 Tea
 Coffee
 Culinary products
 Frozen products
 Fruit juices
 Mineral water
 Pet foods

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 Pharmaceuticals and Cosmetics

OPERATIONS IN INDIA
Nestlé set up its operations in India, as a trading company in 1912 and began
manufacturing at the Moga factory in 1962. The production started with the manufacture
of Milkmaid and other product were gradually brought into the fold. Nestlé India
Limited was formally incorporated in 1978 prior to which the manufacturing license was
issued in the name of the Food Specialties Limited. The corporate office is located at
Gurgaon and the registered office at M-5A, Cannaught Circus, and New Delhi.

At present Nestlé has 6 manufacturing units countrywide which are successfully

engaged in meeting the domestic as well as the exports demand. In addition there are
several co packing units.

The Moga factory is the largest and the oldest producing the widest range of food
products.

The other factories are located at: -

 Choladi (Tamilnadu) -- Instant Tea Export 1969
 Nanjangud (Karnatka) -- Coffee & Milo 1989
 Samalkha (Haryana) -- Cereals, Milkmaid Deserts 1992
 Ponda (Goa) -- Chocolates & Confectionery 1995
 Bicholim (Goa) -- Noodles and Cold Sauces 1997

Today, the company is manufacturing and Marketing the brands in the following
product categories: -

 Milk and Dietetics

 Culinary
 Cereals
 Instant Drinks
 Chocolates and Confectionery

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 The distribution comprises of six branches located in Calcutta, Delhi, Mumbai,
Chennai, Bangalore and Chandigarh. The distribution network functions efficiently with
the transfer of goods from the factories to the Mother Godowns, which in turn are
transferred to the clearing and the sales agents. The C&S agents sell it to the cash
distribution who make the secondary sale in the market.

Presently Nestlé India employs over 3000 employees. In addition, thousands of

people are associated with Nestlé, having indirect employment as Milk suppliers,
Vendors, Contractors and Distributions etc.

The Production group first incepted under the name Food Specialties Ltd. started
production at the Moga Factory in early 1962.At the time, with the help of Nestle
International; the Company shot into prominence as the countries foremost producer of
milk products, particularly baby foods. With time, the nature & extent of the company
expanded. The product range, since then, has now diversified so much and to such an
extent that it is really a tough task to enumerate all the products of the company on a
single sheet of paper After 28 Years of working under the name of Food Specialties Ltd.
The company realized that in order to survive in the international competition and to keep
up with the changing time a better and closer relationship was required between Nestlé
International and its Indian counterpart. So in 1990,a unified production and marketing
front, under the name of Nestlé India was conceived.

NESTLÉ INDIA HAS SIX FACTORIES IN THE COUNTRY.

MOGA FACTORY
Moga factory started production in 1962.Today; Moga contributes almost 75% of
Nestle India’s total production volume, manufacturing 80,000 tons of food products. It
employs 1500 people. The entire range of milks culinary products, cereals and vending
mixes is manufactured in Moga. Moga is located in the state of Punjab about 400Kms.
north of New Delhi.

CHOLADI FACTORY
The factory in Choladi started production in 1967. Situated in south India, about
275 kms from Bangalore the factory today has 80 employees. It processes about 500 tons
of soluble instant tea, which is all exported.

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NANJANGUD FACTORY
Started production in Nanjangud factory in 1989 which the manufacture of
Nescafe Sunrise. Milo manufacture at Nanjangud began in 1996. Situated 160 kms south
of Banglore, the factory has 245 employees. Coffee capacity currently is 15,000 tons and
Milo 3000 tons per annum.

SAMALKHA FACTORY
Samalkha factory started production in 1993, it is situated 70 kms from Delhi and
it has 203 employees and manufactures about 11,000 tons of food products comprising
Cerelac, Nestum and ethnic deserts. Pure Life, treated water and Nestlé Dahi are also
being produced here.

PONDA FACTORY
Ponda Factory began production of Kit Kat in 1995. It is located 40kms from
Panjim the capital city of Goa. It has been expanded into other confectionery products
viz, Jellies Pastilles, Kools and Chocolate based confectionery. Ponda currently
employees 140 people.

BICHOLIM FACTORY
A satellite factory of Ponda at Bicholim for manufacture of Noodles and Cold
Sauces, Operational in 1997.

Besides these Nestlé India has co-manufacturing arrangements also.

INDIA HAS THE CO-PACKING ARRANGEMENT ALSO:

1. Nestlé Polo- Bakeman’s (Nagpur)

2. Chocolates-Campco (Puttur)
3. Tasters Choice-Williamson Major company (Silliguri)
4. Toffee-Nutrine (Surinder Nagar)
5. Pickles-Choride foods Ltd.(Puna)
6. Cold Sauce 200 gm – Nijjer Agro Pvt.Ltd. Amritsar
7. Dosa & Samber mix–Indian foods & fermentation Ltd. Nagpur

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SALIENT FEATURE OF MOGA FACTORY

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 kgs 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 ltrs. of milk per day in 1962 to over 1200,000 ltrs. 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:

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 upto 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,

14
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 thermic fluid can be headed upto 250 C and due to it normal Ghee is
heated upto 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.

15
 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.

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 polypacks or
bag-n-boxes required by the production program and one line is for bulk packing.

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.

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

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.
16
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 Maggi taste markers: Masala Chicken, Sweet &
Sour, Maggi soups (Chicken, Tomato, Mushroom & Vegetable), Maggi Cubes, Maggi
Super Seasoning, Mango Wonder-Mix, Maggi Export Mixes.

c) Cold Sauces
This section is engaged in the manufacturing of a whole range of Sauce under the
brand name of “Maggi”.

17
 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 Maggi Sauce (Tomato Ketchup, Hot-N-Sweet,
Masala Chilli, Chili Garlic & Tomato Sauce) & Maggi Pointed Special (Butter Chicken
Karahi Paneer & Italian Pizza Popping)

Besides the production plants the major department in this factory are

18
NESTLE – THE ORGANIZATION
Some names seem to belong to legend and Nestlé now synonymous with a
prestigious trademark and worlds foremost food group originally consisted of two
companies Henri Nestle of Vevey Switzerland & Anglo Swiss Condensed Milk Company
in Cham. Both companies competed vigorously from 1866- 1905.

These groups merged in 1905 and become the starting point of the recent food
group. The history of Nestle includes the development of many different products as well
as acquisitions mergers and purchasing of interests in other companies.

Nestlé is now the No. 1 food company. It is present on all five continents has an
annual turnover of nearly 80 Billion Swiss Francs. At present there are around 500
factories in around 77 countries with 200 operating companies One basic research center
and 17 technological development groups and has in excess of 200,000 employees.

Currently Mr. Peter Brabeck heads the Nestlé group. Nestlé operations worldwide
are divides into 3 zones:

ZONE EUR : Europe

ZONE AOA : Asia and Oceania
ZONE AMS : Americas

India comes under zone AOA which includes South- East Asian trading giants of
the likes of Thailand, Indonesia, Malaysia, Singapore, China etc. besides Australia. Mr.
M.W. Garret currently heads ZONE AOA.

CONTRIBUTION OF NESTLÉ TOWARDS ECONOMIC & SOCIAL

DEVELOPMENT AREA

“In the Malwa region of Punjab State, there is a small town, which is popularly
known among the famous grain markets of the world.” In 1959 Nestlé took a decision to
establish a milk processing factory, very little could the people of Moga town and the
farmers in the surrounding villages realized that the company now, Nestlé INDIA LTD.,
would play such an important role in economic & social development of the area.

19
 The credit of bringing this town on the industrial map of the world goes to Nestlé
– The World Food Company engaged in the largest food processing operations in the
world.

NESTLÉ TODAY

Today with operation in all of five continents around 81 countries Nestlé employs
some 231,881 people and has annual turnover around of newly about 80 billion Swiss
Franks. It relies on 523 factories where perishable raw material such as milk, coffee,
vegetables, cereals, meat are processed & transferred in form of suitable quality food
products.

Encouragement for increasing milk production & improving livestock quality.

This encouraged the diary farmers to rear good quality milk & to participate with full zeal
in future cattle shows.

Company has also programmed to highly qualified scientist for providing

specialized services to farmers not only in dairy husbandry & fodder production but also
in other crops grown in the area.The aim is to work for all-round properity of rural
population to improve the economic & social environment of the area.

Growth Profile
Nestle has been associated with the country since the beginning of the country-
importing & trading in condensed milk & infant foods,manufactured in India in 1962
with the setting up its first factory at Moga, Punjab, since then, five additional factories
have been set up in Choladi, Nanjangud, Samalkha, Ponda & Bicholim three of them
in the past five years. In its quest to be in every way the leading company in the Indian
Food Industry, Nestle has been improving turnover every year. Rapid new product
launches is a key propeller for growth & Nestle India has significantly expand it is
products portfolio in the recent years launching new products in the last five years than in
the previous thirsty years.

Year wise turnover in crores:

1996 1997 1998 1999 2000 200 200 200 200 2005
1 2 3 4

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495 716 1001 1204 1435 161 155 168 193 2047.7
3 2 8 7

CORPORATE 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.

PRESENT FINANCIAL POSITION OF THE COMPANY

During the first quarter in the year 2001 the company posted a profit of Rs.4,516
million a growth of 30% over the previous year for the corresponding period.

21
 Domestic sales showed an increase of 27% whereas grew by 47% in volume and
52% I value.

In the year ending 2000 the company had sales of 16,775 million as compared to
the sales in 1999,which stood around 15,439 million.

During the year sales grew by 8.7% and profits increased by 20.4%.The company
declared a dividend of Rs.6 which made the total dividend payable for the year Rs.14

During 2002 turnover was increased by 110.7Crores as compared to year 2001

The financial position in2003 was favorable mainly due to new product launches
and competitive pricing.

Overall performance of the company was satisfactory in spite of the slowdown in

the industry the company posted considered amount of profits.

LATEST DEVELOPMENTS
Nestlé SA announced a friendly merger with RALTSEN PURINA SA as the
company feels that the pet care industry is a growing industry

COCA-COLA and Nestlé strengthen their relationship

Nestlé launches new products namely,tamato puree,milky kit kat , maggi pickles

Nestlé also launched the GLOBE PROJECT

The main objective of this project is to unlock Nestlé potential as a group

worldwide

India has a fair bit of representation in this project as an Indian heads it and also
five more are there in this project

This shows the importance of Nestlé India’s in the overall operations of the
company

22
“ ORGANISATION STRUCTURE OF NESTLE
INDIA, MOGA FACTORY.”

FACTORY MANAGER

CONFIDENTIAL
SECRETARY

PROD. MANAGER PROD. MANAGER PROD. MANAGER PROD. MANAGER

INSTANT DRINKS CULINARY MILK OPERATIONS CEREALS

ACCTS.ADMNN & AGRI. ENGG. QLTY.

W/H MANAGER SERVICES SERVICES ASSURANCE
MANAG MANAGER MANAGER

PERSONNEL SECURITY CORPORATE

MANAGER MANAGER AFFAIRS
EXEC.

INDUSTRIAL PRODUCTION
ENGINEER PLANNING & CONTROL
23
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

PLANNING
Planning is the conscious determination of future of action to achieve the desire
result. It leads to economy of operations. It is a continuous function of office
management and is performed at every level.

ORGANISING
The plans and polices are executed through the media of organization.
Organization is a group of person or employees necessary to perform office.

STAFFING
The main function of human resource includes procurement, development,
compensation and maintain of persons necessary to do the job. Right person is to be
employed at the right time and right place. Care for fair wages, health, safety, persons
effectively and efficiently.

24
DIRECTING
After planning, organizing and staffing the human resources manager has to guide
and supervise his subordinates. In directing the functions includes leadership,
communication, motivation & supervision etc.

COORDINATING
Coordination means performing tasks in harmony. It is a group effort for united
action. A manager directs the organization into action for the achievement of the plan.

CONTROLLING
Controlling is verifying whether everything occurs in conformity with the plan
and policies. Planning is necessary for control process.

COMPENSATION & WELFARE TRAINING

In personnel has now developed into human resource functions. Humans are very
important part of personnel. The importance of human resource functions is being
realized recently. Human resources function plays an important to achieve the goal of the
organization.

In NESTLE MOGA the functions of Human Resources Department as are

following: -

ESTABLISHMENT
- Personnel records
- Policies, salary, survey structure
- Other establishment matters.
DISCIPLINE AND LEGAL
TIME OFFICE AND PAYROLL
GENERAL ADMINISTRATIVE AND TRANSPORT
TRAINING AND DEVELOPMENT

25
26
 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.

27
POSITIONING ACCORDING TO RIES AND TROUT

The word positioning was popularized by two advertising executives. At Ries and
Jack Trout. They see positioning as a creative exercise done with an existing product.

Positioning starts with a product. A piece of merchandise, a service, a company an

institution, or even a person…….But positioning is not what you do to a product.
Positioning is what you do to the mind of the prospect.

Ries and Trout argue that well – known products generally hold a distincitive
position a consumers’ minds. Hertz is thought of as the world’s largest auto rental
agency, Coca – Cola as the world’s largest soft – drink company, and Porsche as oen of
the world’s best sports cars. These brands own these positions, and it would be hard for a
competitor to claim them.

A competitor has three strategic alternatives.

The first is to strengthen its own current position in the consumer’s mind. Avis
acknowledged its second position in the rental car business and claimed. “We’re number
two. We try harder.” 7 Up capitalized on not being a cola drink by advertising itself as
“the Uncola.”

The second strategy is to grab an unoccupied position. Three Musketeers

Chocolate has advertised itself as having 45 percent less than fat than other chocolate
bars. United Jersey Bank, noting that giant banks were usually slower in arranging loans,
positioned itself as “the last – moving bank.”

The third strategy is to de – position or re – position the competition in the

customer’s mind. Most U S buyers of dinnerware thought that Lenox and Royal Doulton
China both come from England. Royal Doulton de – positioned Lenox china by showing
that it is made in New Jersy. BMW attempts to de – position Mercedes Benz with the
comparison: “The ultimate sitting machine versus the ultimate driving machine.” Popeye
Cajun style fried chicken aims to “save America from bland chicken” (implying an attach
on KFC). Wendy’s famous commercial, in which a 70 – year – old woman named Clara

28
looked at a competitor’s hamburger and said. “Where’s the bed?” showed how an attack
could destabilize consumer confidence in the leader.

Ries and Troup argue that, in an over advertised society, the mind often knows
brands in the form of product ladders, such as Coke – Pepsi – RC Cola or Hertz–Avis–
National. The up firm is remembered best. For example, when asked “Who was the first
person to fly alone across the Atlantic Ocean successfully?” we answer “Charles
Lindbergh. “When asked, “Who was the second person to do it?” we draw a blank. This
is why companies fight for the number – one position. The “largest firm” position can be
held by only one brand. The second brand should invent and lead in a new category. Thus
7 up is the number one Uncola. Porsche is the number one small sports car, and Dial is
the number one deodorant soap. A fourth strategy is the exclusive is the exclusive – club
strategy. For example a company can promote the idea that it is one of the Big There. The
Big Three idea was invented by the third – largest U.S. auto firm, Chrysler. (The market
leader never invents this concept.) The implication is that those in the club are the “best.”

Ries and Trout essentially deal with communication strategies for positioning or
repositioning a brand in the consumer’s mind. Yet they acknowledge that positioning
requires every tangible aspect of product, price, place, and promotion to support the
chosen to poisoning strategy.

29
POSITIONING ACCORDING TO TREACY AND WIERSEMA

Two consultants, Treacy and Fred Wiersema, proposed a positioning framework

called value disciplines. Within its industry, a firm could aspire to be the product leader,
the operationally excellent firm, or the customer intimate firm. This is based on the
notion that in every market there is a mix of three types of customers. Some customers
favor the firm that is advancing on the technological frontier (product leadership), other
customers want highly reliable performance (operational excellence), and still others
want high responsiveness in meeting their individual needs (customer intimacy).

Tracy and Wiersema observed that a firm cannot normally be best in all three
ways, or even in two ways. It lacks sufficient funds, and each value discipline requires
different managerial mind – sets and investments that often conflict. Thus McDonald’s
excels at operational excellence, but could not afford to slow down its service to prepare
hamburgers differently for each customer. Nor could McDonald’s lead in new products
because each addition would disrupt the smooth functioning of its normal operations.
Even within a large company; such as GE, each division might follow a different value
discipline: GE’s major appliance division pursues operational excellence, its engineered
plastics division pursues customer intimacy, and its jet engine division pursues product
leadership.

Treacy and Wiersema purpose that a business should follow four rules for
success:

 Become best at one of the three value disciplines.

 Achieve an adequate performance level in the other two disciplines.
 Keep improving one’s superior position in the chosen discipline so as not to lose out
to a competitor.
 Keep becoming more adequate in the other two disciplines, because competitors keep
raising customers’ expectations.

30
POSITIONING: HOW MANY IDEAS TO PROMOTE?

A company must decide how many ideas (e.g., benefits, features) to convey in its
positioning to its target customers. Many marketers advocate promoting only one central
benefit. Rosser Reeves believes a company should develop a unique selling proposition
(USP) for each brand and stick to it. Crest toothpaste consistently promotes its anticavity
protection, and Mercedes promotes its great engineering. Ries and Trout favor one
consistent positioning message. This makes for easier communication to the target
market; it results in employees being clearer about what counts; and it makes it easier to
align the whole organization with the central positioning.

The brand should tout itself as “number one” on the benefit it selects. Number one
positionings include “best quality,” “best performance”, “best service,” “best styling,”
“best value,” “lowest price,” “safest,” “fastest,” “most customized,” “most convenient,”
“most technological,” “most reliable,” or “most prestigious”. If a company consistently
hammers away at one positioning and delivers on it, it will probably be best known and
recalled for this benefit.

Not everyone agrees that single-benefit positioning is always best. What if the
market tries of the benefit or believes that most competitors now deliver it? Today people
believe that most cars are safe and that most cars have pretty good quality. Double-
benefit positioning may be more distinctive. Volvo double-positions its automobiles as
“safest” and “most durable”. There are even cases of even triple-benefit positioning.
Smith Kline Beecham promotes its Aquafresh toothpaste as offering three benefits:
anticavity protection, better breath, and whiter teeth. The challenge is to convince
consumers that the brand delivers all three. Smith Kline’s solution was to create a
toothpaste that squeezes out of the tube in three colors, thus visually conforming the three
benefits. In doing this, Smith Kline “countersegmented”; that is, it attracted three
segments instead of one. As companies increase the number of claimed benefits for their
brand, they risk disbelief and a loss of clear positioning. In general, a company must
avoid four major positioning errors:

31
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.

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

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.

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
32
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 undercoats 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.

33
 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 unpositioned 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.

34
 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.

35
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.

36
Why I have chosen this topic and how it can help
me in management studies:
The topic “Market positioning of Nestle’s Munch, Milo and Maggi in Delhi” 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 can not 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 importace 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 on
going 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.

37
 Aims and objectives
of
study

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 Maggi in Delhi.
- To know the consumption habits and consumption frequency of the consumers in Delhi.
- To know the effect of promotional efforts.
- To know the consumer’s response.
- To know the consumer’s preferences for the products of FMCG (Fast Moving Consumer
Goods) sector.
- To know the external forces and their importance.
- To know the market competitors and their position in comparison to Nestle.
- To study in detail the likes and dislikes of consumers.
- To know the brand image of Nestle.
- To provide proper basis for planning.
- To find out what people want from Nestle.

38
39
 Every project requires genuine research. Success of any project and getting
genuine results from that depends upon the research methods 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,”

What all were the methods adopted in order to conduct the study so that we can
have proper findings and analysis which may assist in the accomplishment of goals and
objectives of the project, are known as Methodology.

It is very important to follow methodology otherwise it is very difficult to reach

on conclusion. Obviously if there will be no conclusion, on what basis will be
suggestions recommended. This all makes it mandatory to follow proper methodology.

Methodology which were felt best for this project about “Market positioning of
Nestle’s Munch, Milo and Maggi in Delhi” are as follows:

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 Maggi).
3. To determine the frequency with which something occurs or with which it is
associated with something else.

RESEARCH METHODOLOGY FOR THE REPORT

Data Source: Primary Data

For this project report, I have collected Primary data because of its
reliability. It is a fresh data collected specially for this purpose.

Research Approach: Survey Research

40
 I have opted for survey research approach. Surveys are best suited for descriptive
research. Companies undertake surveys to learn about people’s knowledge, beliefs,
preferences and satisfaction and to measure these magnitudes in general population.

Research Instruments:

1. Questionnaires: For the collection of primary data through survey

research approach for this project, I have used questionnaires as a research
instrument because of its flexibility. This questionnaire contains 11 close-
ended questions because close-ended questionnaire specify all possible
answers that are easier to interpret and tabulate.

2. Interview of sales force and Retailers: Finally it was felt very important to
conduct the interview of retailers and sales force to know the exact market
position of Nestle’s 3Ms i.e Munch, Milo and Maggi.

Sampling Plan:

After deciding on the research approach and instruments, the next step for the
research is sampling plan. This calls for two decisions:

-Sampling Unit

-Sampling Size

Sampling unit: Sampling unit i.e. who is to be surveyed? For this project or research,
sampling unit is consumers, retailers and sales force.

Sampl ing Size: I have got filled 100 questionnaires from the consumers living in the
various parts of MOGA. I have visited important places in MOGA like offices:
Dashmesh Nagar, Baag Gali, 9 Streat, Sidhu Nagar, Mahita chonk, Shanti Nagar BPL
Ltd.: Nehru place, and many more. I have covered the consumers of different age goup,
sex and income group.

Contact Method:

41
 Personal filling of questionnaires is best way to reach people, to understand their
behavior, their expectations and enquire much more about study. Therefore I have got
these questionnaires filled by personal contact

Research Methodology At A Glance:

DESCRIPTION
NAME OF STUDY
Data used Primary & Secondary
Source of primary data Retailers, Consumers
Source of secondary data Newspaper, Magazines, Annual Report,
Internet etc.
Time duration Eight weeks.
Instrument used Personal interview with close-ended
questionnaire having 11 questions.
Sample size 100
Region MOGA

Attached: A copy of questionnaire

42
 Questionnaire
Q1: Are you aware of Nestle’s Munch, Milo and Maggi?

Munch: Yes No
Milo Yes No
Maggi: Yes No

Q2: Have you come across the advertisements? If yes, then where?

Newspapers Magzines TV

Q3: When do you like to consume Maggi generally?

Morning Lunchtime Evening Anytime

Q4: How many Maggis you consume in a week?

Never consume 1-5 6-10 11-15 16-20

More than 20

Q5: What do you say about the taste of Maggi?

Very good Good Satisfactory Not good

Q6: What modifications do you want in Maggi?

Improve taste Less price Packing

No modification

Q7: Which is favourite chocolate?

Cadbury dairy milk Nestle’s Munch Others

Q8: How do you rate the taste of Nestle’s Munch?

43
Excellent Good Satisfactory Not good

Can’t say

Q9: Which health drink is more popular from your point of view?

Bournvita Nestle’s Milo Others

Q10: When do you want to take the health drinks generally?

Morning Lunchtime Evening Anytime

Q11: How do you rate the taste of Nestle’s health drink Milo?

Excellent Good Satisfactory Not good

Can’t say

44
 MARKET SURVEY
ANALYSIS AND GRAPHS

45
 Q1. Are you aware of Nestle’s Munch, Milo and Maggi?

Yes No
100
100 88.3
84.04

80

60

40

20 11.7 15.96
0
0
Maggi Munch Milo

As far as awareness is concerned it is fine with each product.

46
Q2. Have you come across advertisement? If yes, then where?

ADVERTISEM ENT

100

80 63.83
60

40 20.21
15.96
20

0
TV Newspapers Magzines

Mostly people have come across the advertisement in TVs followed by

Newspapers and Magzines.

47
Q3. When do you consume Maggi?

Consumption time

100

80

60 46.17

40 27.66
15.53
20 10.64

0
Morning Lunch time Evening Anytime

Generally people consume Maggi in Evening but some are also interested in
Maggi at anytime.

48
Q4. How many Maggis you consume in a week?

CONSUM PTION

100
80
60.6
60
40 32.04

20
2.04 3.2
1.06 1.06
0
Never 1 to 5 6 to 10 11 to 15 16 to 20 More than
tasted 20

Generally people consume 1-5 Maggis in a week. But consumption ratio of 6-10
is also not ignorable.

49
Q5. How do you rate the taste of Maggi?

1.06
20.21
30.85 Very good

Good

Satisfactory

Not good

47.88

From the above fig., It can be said that the taste of Maggi is Good.

50
Q6. What modifications do you want in Maggi?

25.11 15.8

Excellent
10.21
Improve taste

Less price
7.45 Packing

No modifications

57.23

Nestle is suggested to reduce the price of its Maggi.

51
Q7. Which is yours most favourite chocolate?

4.26

28.72 Cadbury M unch

Others
67.02

People are more interested in cadbury’s dairy milk than Nestle’s Munch.

52
Q8. How do you rate the taste of Nestle’s Munch?

7.45
10.76

7.45
Excellent
Good
28.49 Satisfactory
Not good

Can't Say
45.85

According to Nestle’s Munch consumers, Munch has a Satisfactory taste.

53
Q9. Which is the common health drink?
People generally prefer Bournvita than Milo as a health drink.

80
70 71.28

60
50
40
Health drink
30
20 19.15
10 9.57
0
Bournvita Milo Others

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 Q10. When do you take health drinks generally?

45
41.49
40

35
30.85
30

25 Morning
Lunchtime
20 Evening
15.96 Anytime
15
11.7
10

0
Morning Lunchtime Evening Anytime

People generally take health drinks in Morning but some even prefer in evening.

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Q11. What do you say about the taste of Milo?

40

36.17
35

30

25
Excellent
22.34
20.21 Good
20
Satisfactory
15.96 Not good
15
Can't say

10

5.32
5

0
Excellent Good Satisfactory Not good Can't say

Taste of Nestle’s Milo is Good.

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LIMITATIONS
AND
PROBLEMS

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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.

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59
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.

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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 smoodles, 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.

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BIBLOGRAPHY:

63
WEBSITES:-
 www.nestle.com
 www.thehindubusiness.com
 www.etstrategicmarketing.com
 www.forum.nestle.pl

MAGAZINES:-
 Sampark Magazine, Nestle India Limited, Moga.
 Globe Magazine, Nestle India Limited, Moga.
 Nestle employee information handbook, Nestle India Limited, Moga.

BOOKS:-
NAME AUTHOR
 Marketing Management -KOTLER
 Marketing Management -SONTAKKI
Research Methodology -KOTHARI

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