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A PROJECT REPORT ON THE STUDY OF DISTRIBUTION CHANNEL OF NESTLE

SUBMITTED BY RAVI KANT TY B.B.A UNDER THE GUIDANCE OF PROF. ABHIJEET CHAVAN SUBMITTED TO UNIVERSITY OF PUNE IN THE PARTIAL FULFILLMENT OF BACHELOR OF BUSINESS ADMINISTRATION

Student declaration

I hereby declare that, the project titled THE STUDY OF DISTRIBUTION CHANNEL OF NESTLE. is an original piece of research work under the guidance of Mr. ABHIJEET CHAVAN. The information has been collected from genuine and authentic sources. The project work has been submitted to the college in partial fulfillment of the Bachelor of Business Administration degree course of Pune University.

PLACE: DATE: RAVI KANT TY BBA

ACKNOWLEDGEMENT

It is a great pleasure to me in acknowledging my deep sense of gratitude to all those who have helped me in completing this project successfully. First of all, I record my greatest apology to Mr. Prashant kalshetti for providing mean

opportunity to undertake a project as a partial fulfillment of Bachelor of Business Administration degree. I express my deep sense of gratitude to my guide Mr.Abhijeet chavan, whose valuable

guidance and encouragement at every phase of the project has help to prepare this project successfully. Finally, I would like to express my sincere thanks to my family, all the faculties, office staff, and library staff of ICCS, pune and friends who helped in some or other way in making this project.

RAVI KANT

INDEX
Chapter no. TOPIC Page no.

Introduction

Industry profile

Company profile

Product profile

Objective of the study

Research methodology

Data analysis and interpretation

Findings

suggestions

conclusion

Bibliography

Annexure

LIST OF TABLE
TABLE NO.

TITLE Preferred product

PAGE NO.

Factor responsible for selecting a company Awareness of the product and services Product satisfaction Service rating Satisfaction of distribution of product and services Preferred product for good product Preferred company for good and fast services Product of low range

LIST OF GRAPH
GRAPH NO.

TITLE Preferred product

PAGE NO.

Factor responsible for selecting a company Awareness of the product and services Product satisfaction Service rating Satisfaction of distribution of product and services Preferred product for good product Preferred company for good and fast services Product of low range

CHAPTER-1 INTRODUCTION

INTRODUCTION
Nestl India is a subsidiary of Nestl S.A. of Switzerland. With seven factories and a large number of co-packers, Nestl 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 acknowledged amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'. Nestl's relationship with India dates back to 1912, when it began trading as The Nestl AngloSwiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market.

After India's independence in 1947, the economic policies of the Indian Government emphasised the need for local production. Nestl responded to India's aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestl to develop the milk economy. Progress in Moga required the introduction of Nestl's Agricultural Services to educate, advise and help the farmer in a variety of aspects. From increasing the milk yield of their cows through improved dairy farming methods, to irrigation, scientific crop management practices and helping with the procurement of bank loans. Nestl set up milk collection centres that would not only ensure prompt collection and pay fair prices, but also instil amongst the community, a confidence in the dairy business. Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today, but a thriving hub of industrial activity, as well. For more on Nestl Agricultural Services. Nestl has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods. The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product offerings. The culture of innovation and renovation within the Company and access to the Nestl Group's proprietary technology/Brands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts. It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality, safe food products at affordable prices. Nestl India manufactures products of truly international quality under internationally famous brand names such as NESCAF, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTL Milk, NESTL SLIM Milk, NESTL Dahi and NESTL Jeera Raita. Nestl India is a responsible organisation and facilitates initiatives that help to improve the quality of life in the communities where it operates.

Presence Across India

Nestl processing units in India


After nearly a century-old association with the country, today, Nestl India has presence across India with 7 manufacturing facilities and 4 branch offices spread across the region. Nestl Indias first production facility, set up in 1961 at Moga (Punjab), was followed soon after by its second plant, set up at Choladi (Tamil Nadu), in 1967. Consequently, Nestl India set up factories in Nanjangud (Karnataka), in 1989, and Samalkha (Haryana), in 1993. This was succeeded by the commissioning of two more factories - at Ponda and Bicholim, Goa, in 1995 and 1997 respectively. The seventh factory was set up at Pantnagar,Uttarakhand,in2006. The 8th Factory was set up at Tahliwal, Himachal Pradesh, in 2012. The 4 branch offices in the country help facilitate the sales and marketing of its products. They are in Delhi, Mumbai, Chennai and Kolkata. The Nestl India head office is located in Gurgaon, Haryana.

Nestl S.A. announced the establishment of the first R&D Centre in India in 2010, a part of the global R&D network. The foundation stone for the new Centre was unveiled on 22nd of September, 2010, in Manesar, Haryana. Mr. Subodh Kant Sahai, Honourable Minister of Food Processing Industries, Government of India, was the Chief Guest for the ceremony. Also present at the ceremony were His Excellency Mr. Philippe Welti, Ambassador of Switzerland, Mr. Ashok Sinha, Secretary for Ministry of Food Processing Industries, Mr. Klaus E. Zimmermann, Global Head of R&D Centres, Nestl S.A., and Mr. A. Helio Waszyk, Chairman and Managing Director, Nestl India Limited. Mr. Zimmermann commented that the event not only marked Nestls continuing long-term commitment to R&D, but also celebrated the building of Nestls first R&D Centre in India. He mentioned that the R&D Centre would allow Nestl to offer consumers in India and beyond, the choice of tasty, healthy, and nutritious products. Mr. Waszyk emphasized that the Nestl Boards decision to establish an R&D Centre in India at the request of Nestl India, would be an additional competitive advantage. It would help accelerate the Companys growth and at the same time contribute towards reducing nutritional deficiencies in the country.

Architects impression of the facility, expected to be fully functional in 2012 Better nutrition for India is a perpetual challenge. It's meaning changes with the countrys stage of development, the degree of social awareness, and scientific consensus. The new Nestl R&D facility in India will help develop great tasting food solutions that are relevant for consumers in India, creating products that take the promise of taste and health to a broader economic and social section than ever before. It will also strengthen Nestls leadership in emerging markets and fortify Nestl Indias position as the leader in Nutrition, Health and Wellness. Ms. Shivani Hegde, Chairperson of R&D India and also Head of the Foods Business, reiterates that Nestl India has always had Research and Development support from the Nestl R&D network across the world, and now, with the foundation being laid for the new R&D Centre in Manesar, the Company for part of its research, will benefit from a greater Indian-consumer focus. Having an R&D Centre close to the Nestl India Head Office will bring Research and Development closer to Businesses, and reflects the Nestl spirit of R&D-Business partnership towards developing Winning concepts, suited to the local consumer. It will help Nestl R&D to bring out strong localised concepts that are in accordance with the Nestl Group thrust on affordable Nutrition, Health and Wellness. Ultimately, these concepts will not just be relevant for emerging markets like India, but could be transferred to Nestl worldwide. Mr. Simon Robertson, Head of R&D India, sees that the target to complete the building in 2012 is a challenging one, but one that the team is set to deliver. Work on the building is moving forward and day by day we see the progress on site as we start to create the latest R&D Centre. At the same time, we are also building bridges with local institutions and government bodies that will give us a deeper understanding of the products needed in India and to support our future development programmes." * This pictorial representation does not purport to be the political map of India.

Head Office Nestl India Limited Nestl House Jacaranda Marg, 'M' Block, DLF City, Phase II, Gurgaon - 122002 (Haryana) Tel.: +91-124-2389400

Registered Office Nestl India Limited M-5A, Connaught Circus, New Delhi - 110001 Tel.: +91-11-41514444

CHAPTER-2 INDUSTRY PROFILE

INDUSTRY PROFILE
Nestle India is a subsidiary of Nestle S.A. of Switzerland. Nestle India manufactures a variety of food products such as infant food, milk products, beverages, prepared dishes & cooking aids, and chocolates & confectionary. Some of the famous brands of Nestle are NESCAFE, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID, NESTEA, NESTLE Milk, NESTLE SLIM Milk, NESTLE Fresh 'n' Natural Dahi and NESTLE Jeera Raita. Nestle was founded in 1867 in Geneva, Switzerland by Henri Nestle. Nestle's first product was "Farine Lactee Nestle", an infant cereal. In 1905, Nestle acquired the Anglo-Swiss Condensed Milk Company. Nestle's relationship with India started 1912, when it began trading as The Nestle Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market. After independence, in response to the then economic policies, which emphasized local production, Nestle formed a company in India, namely Nestle India Ltd, and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestle to develop the milk economy. In Moga, Nestle educated and advised farmers regarding basic farming and animal husbandry practices such as increasing the milk yield of the cows through improved dairy farming methods, irrigation, scientific crop management practices etc. Nestle set up milk collection centres that ensured prompt collection and paid fair prices. Thus, Nestle transformed Moga into a prosperous and vibrant milk district. In 1967, Nestle set up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the tea

grown in the area into soluble tea. Nestle opened its third factor in Nanjangud (Karnataka) in 1989. Thereafter, Nestle India opened factories in Samalkha (Haryana), in 1993 and two in Goa at Ponda, and Bicholim in 1995 and 1997 respectively. Nestle India is now putting up the 7th factory at Pant Nagar in Uttarakhand. Today, Nestle is the world's largest and most diversified food company. It has around 2,50,000 employees worldwide, operated 500 factories in approximately 100 countries and offers over 8,000 products to millions of consumers universally.

History of Nestl

Nestl began in Switzerland in the mid 1860s when founder Henri Nestl created one of the first baby formulas. Henri realized the need for a healthy and economical product to serve as an

alternative for mothers who could not breastfeed their babies. Mothers who were unable to breastfeed often lost their infants to malnutrition. Henris product was a carefully formulated mixture of cows milk, flour and sugar. Nestls first product was called Farine Lacte (cornflour gruel in French) Henri Nestl. The product was first used on a premature baby who could not tolerate his mothers milk or other alternative products of that time. Doctors gave up on treating the infant. Miraculously the baby tolerated Henris new formula and it provided the nourishment that saved his life. Within a few years the first Nestl product was marketed in Europe. In 1874 the Nestl Company was purchased by Jules Monnerat. Nestl developed its own condensed milk to contend with its competitor, the Anglo-Swiss Condensed Milk Company. The Anglo-Swiss Condensed Milk Company made products like cheese and instant formulas. The two companies merged in 1905, the year after Nestl added chocolate to its line of foods. The newly formed Nestl and Anglo-Swiss Milk Company had factories in the United States, Britain, Spain and Germany. Soon the company was full-scale manufacturing in Australia with warehouses in Singapore, Hong Kong and Bombay. Most production still took place in Europe. The start of World War I made it difficult for Nestl to buy raw ingredients and distribute products. Fresh milk was scarce in Europe, and factories had to sell milk for the public need instead of using it as an ingredient in foods. Nestl purchased several factories in the U.S. to keep up with the increasing demand for condensed milk and dairy products via government contracts. The companys production doubled by the end of the war. When fresh milk became available again after the war, Nestl suffered and slipped into debt. The price of ingredients was increasing, the economy has slowed and exchange rates deteriorated because of the war. An expert banker helped Nestl find ways to reduce its debt. By the 1920s Nestl was creating new chocolate and powdered beverage products. Adding to the product line once again, Nestl developed Nescaf in the 1930s and Nestea followed. Nescaf, a soluble powder, revolutionized coffee drinking and became an instant hit. With the onset of the Second World War, profits plummeted. Switzerland was neutral in the war and became increasingly isolated in Europe. Many of Nestls executive officers were transferred to offices in the U.S. Because of distribution problems in Europe and Asia, Nestl opened factories in developing countries in Latin America. Production increased dramatically after America entered the war. Nescaf became a main beverage for the American servicemen in Europe and Asia. Total sales increased by $125 million from 1938 to 1945. Nestl continued to prosper, merging with Alimentana S.A., a company that manufactured soups and seasonings, in 1947. In the coming years, Nestl acquired Crosse & Blackwell, Findus frozen foods, Libbys fruit juices, and Stouffers frozen foods. Nescaf instant coffee sales quadrupled from 1960 to 1974, and the new technology of freeze-drying allowed the company to create a new kind of instant coffee, which they named Tasters Choice. Expanding its product line outside of the food market, Nestl became a major stockholder in LOral cosmetics in 1974. Soon after the company suffered with increasing oil prices and the slowing growth in industrialized countries. Foreign exchange rates decreased, in turn reducing the value of sterling, the pound, dollar and franc. Prices of coffee beans and cocoa rose radically, presenting further problems for Nestl. The company decided to venture into the pharmaceutical industry by acquiring Alcon Laboratories, Inc. While trying to deal with unstable economic conditions and exploring its new ventures, Nestl faced the crisis of an international boycott.

Many organized groups began boycotting all of Nestls products because they disapproved of Nestl marketing its baby formula in developing countries. Problems like illiteracy and poverty caused some mothers to use less formula than recommended. In a watered down formula, vital nutrients are lessoned. Contaminated water presented another problem, since the formulas had to be mixed with water. The organizations argued that the misuse of formula resulted in the malnutrition or death of many infants in developing countries. According to Nestl the World Health Organization never made statements tying infant death or malnutrition with baby formulas. The company didnt deny the superiority of breastfeeding and agreed that substituting breast milk for other substances could be very dangerous. Nestl explained that breastfeeding and non-breastfeeding mothers in developing countries often gave their babies whole cows milk, tea, cornstarch, rice water or a mix of flour and water. These alternatives were very unhealthy and a nutritional baby formula was a better choice. Nestl says that it has never discouraged breastfeeding when it was possible. Nestl agreed to follow the International Code in developing countries in 1984, and the boycott was suspended. It resumed several years later when the organizations believed Nestl was sending free or low cost baby formulas to developing countries. Nestl said it only sent formula to countries that allow donations for orphans, multiple births, and babies with no access to breast milk. The company has stopped all public advertising for formula in developing countries for almost 20 years. The boycott continues to some extent to this day without satisfactory resolution. By the 1980s Nestl had a new Chief Executive Officer. The company focused on improving its financial situation and continuing to expand. In the one of the largest takeovers at that time, Nestl bought Carnation for $3 billion and parted with any unprofitable businesses. International trade barriers diminished in the 1990s, opening trade with parts of Europe and China. In the 1990s Nestl acquired San Pellegrino, and Spillers Petfoods of the UK. With the acquisition of Ralston Purina in 2002, the Nestl-owned pet care businesses joined to form the industry leader Nestl Purina PetCare. The leading in the food industry, Nestl brings in $81 billion in overall sales and has 470 factories around the world. Nestl will continue to grow, introduce new products and renovate existing ones. The companys mission is to focus on long-term potential over short-term performance. Nestls Main Brands

Nestl expands across many different markets including beverages, ice cream, baby foods/formulas, soups, frozen foods, snacks, pet care and of course candy. Some of Nestls main brands include: Kit Kat, Butterfinger, Smarties, Crunch, Quality Street, Milkybar/Galak, Tollhouse Nestea, Nescaf, Tasters Choice, Nesquick, Carnation, Libbys

Stouffers, Lean Cuisine, Hot Pockets, Buitoni, Powerbar Purina, Friskies, Fancy Feast, Dog & Cat Chow

CHAPTER-3 COMPANY PROFILE

COMPANY PROFILE OF NESTLE

COMPANY PROFILE
Nestl India is a subsidiary of Nestle S.A. of Switzerland. With seven factories and a large number of co-packers, Nestl 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 acknowledged amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'.

HISTORY

Nestl was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and its first product was Farine Lacte Nestl, an infant cereal specially formulated by Henri Nestl to provide and improve infant nutrition. From its first historic merger with the Anglo-Swiss Condensed Milk Company in 1905, Nestl has grown to become the worlds largest and most diversified food Company, and is about twice the size of its nearest competitor in the food and beverages sector. Nestls trademark of birds in a nest, derived from Henri Nestls personal coat of arms, evokes the values upon which he founded his Company. Namely, the values of security, maternity and affection, nature and nourishment, family and tradition. Today, it is not only the central element of Nestls corporate identity but serves to define the Companys products, responsibilities, business practices, ethics and goals. In 2004, Nestl had around 247,000 employees worldwide, operated 500 factories in approx. 100 countries and offered over 8,000 products to millions of consumers universally. The Companys transparent business practices, pioneering environment policy and respect for the fundamental values of different cultures have earned it an enviable place in the countries it operates in. Nestls activities contribute to and nurture the sustainable economic development of people, communities and nations.

Nestls relationship with India dates back to 1912, when it began trading as The Nestl Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market. After Indias independence in 1947, the economic policies of the Indian Government emphazised the need for local production. Nestl responded to Indias aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestl to develop the milk economy. Progress in Moga required the introduction of Nestls Agricultural Services to educate, advise and help the farmer in a variety of aspects. From increasing the milk yield of their cows through improved dairy farming methods, to irrigation, scientific crop management practices and helping with the procurement of bank loans. Nestl set up milk collection centres that would not only ensure prompt collection and pay fair prices, but also instil amongst the community, a confidence in the dairy business. Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today, but a thriving hub of industrial activity, as well. For more on Nestl Agricultural Services.

OPERATIONS
Nestl has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods. The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product offerings. The culture of innovation and renovation within the Company and access to the Nestl Group's proprietary technology/Brands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts. It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality, safe food products at affordable prices. Nestl India manufactures products of truly international quality under internationally famous brand names such as NESCAF, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTL Milk, NESTL SLIM Milk, NESTL Fresh 'n' Natural Dahi and NESTL Jeera Raita. Nestl

India is a responsible organization and facilitates initiatives that help to improve the quality of life in the communities where it operates.

PRESENCE IN INDIA
Beginning with its first investment in Moga in 1961, Nestls regular and substantial investments established that it was here to stay. In 1967, Nestl set up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area into soluble tea. The Nanjangud factory (Karnataka), became operational in 1989, the Samalkha factory (Haryana), in 1993 and in 1995 and 1997, Nestl commissioned two factories in Goa at Ponda and Bicholim respectively. Nestl India has commissioned in 2006 its 7th factory at Pant Nagar in Uttarakhand.

BRANDS . MILK PRODUCTS AND NUTRITION


EVERYDAY DAIRY WHITENER EVERYDAY GHEE MILK SLIM MILK SILM MILK NEVISTA PRO-HEART MILK FRESH n NATURAL DAHI FREAH n NATURAL SLIM DAHI JEERA RAITA NESVITA DAHI MILKMAID FRUIT YOGHURT MILKMAID MILKMAID FUNSHAKES NIDO BEVERAGES NESCAFE CLASSIC SUNRISE PREMIUM SUNRISE SPECIAL CAPPUCCINO MILO SMART PLUS READY TO- DRINK

ICED

TEA WITH GREEN TEA

NESTEA ICED TEA PREPARED DISHES AND COOKING AIDS MAGGI 2 MINUTE NOODLES VEG ATTA NOODLES RICE NOODLES MANIA CUPPA MANIA SAUCES PICHKOO PIZZA MAZZA MAGIC CUBES BHUNA MASALA COCONUT MILK POWDER HEALTHY SOUPS HEALTHY SOUP-SANJEEVNI CHOCOLATES AND CONFECTIONERY KIT-KAT KIT-KAT CHUNKY MUNCH MUNCH POP CHOC MILKYBAR MILKYBAR CHOO BAR-ONE MILK CHOCOLATE POLO ECLAIRS MILKYBAR ECLAIRS

NESTLE & COMMUNITY


Nestl India has always focused on long term, sustainable and profitable growth and helped communities around its factories to improve their quality of life in a similar manner. Nestl Agricultural Services has used the experience gained by Nestl across the world to set up a system of direct and efficient contact with the farmers. Company veterinarians and agronomists supervise the milk routes and advise farmers on various issues including proper feed for the herds. Milk storage facilities have been set up close to the farmers. Veterinary services are provided free, and medicines provided at wholesale cost. The company assists farmers in artificial insemination programs for

their cattle, provides subsidy and helps them in procuring loans.For more on Nestl Agricultural Service

COMPANY PROFILE OF HINDUSTAN UNILIVER

Hindustan Unilever Ltd is India's largest fast-moving consumer goods. The company operates in seven business segments. Soaps and detergents includes soaps, detergent bars, detergent powders and scourers. Personal products include products in the categories of oral care, skin care (excluding soaps), hair care, talcum powder and color cosmetics. Beverages include tea and coffee. Foods include staples (atta, salt and bread) and culinary products (tomato-based products, fruit-based products and soups). Ice creams include ice creams and frozen desserts. Others include chemicals and water business. Hindustan Unilever Ltd was incorporated in the year 1933 as Lever Brothers India Ltd. In 1956, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd merged with the company and the name was changed from Lever Brothers Ltd to Hindustan Lever Ltd. The company acquired Lipton in 1972, and in 1977 Lipton Tea (India) Ltd was incorporated. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. Pond's (India) Ltd joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. The liberalization of the Indian economy, started in 1991, clearly marked an inflexion in the company's and the Group's growth curve. The removal of the regulatory framework allowed the company to explore every single product and opportunity segment, without any constraints on production capacity. Simultaneously, deregulation permitted alliances, acquisitions and mergers. The erstwhile Tata Oil Mills Company (TOMCO) merged with the company with effect from April 1, 1993. In the year 1996, the company and Lakme Ltd formed a 50:50 joint venture company namely, Lakme Unilever Ltd, to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Subsequently in 1998, Lakme Ltd sold its brands to the company and divested its 50% stake in the joint venture to the company. In the year 1994, the company and USbased Kimberly Clark Corporation formed a 50:50 joint venture company namely, Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. The company also set up a subsidiary in Nepal, Unilever Nepal Limited (UNL), and its factory represents the largest manufacturing investment in the Himalayan kingdom. In the year 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee. In the year 1993, it acquired the Kissan business from the UB Group and the Dollops Icecream business from Cadbury India. As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies of Unilever, were merged with Brooke Bond. Then in the year 1994, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Ltd (BBLIL), enabling greater focus and ensuring synergy in the traditional Beverages business. Finally, BBLIL merged with the company with effect from January 1, 1996. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two companies had significant overlaps in Personal Products, Speciality Chemicals and Exports businesses, besides a common distribution system since 1993 for Personal Products. The two also had a common management pool and a technology base. In January 2000, the government

decided to award 74 per cent equity in Modern Foods to the company, thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. The company's entry into bread is a strategic extension of the company's wheat business. In 2002, the company acquired the government's remaining stake in Modern Foods.. In the year 2002, the company made its foray into Ayurvedic health & beauty centre category with the Ayush product range and Ayush Therapy Centres. In the year 2003, the company acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products exports. Also, the company launched Hindustan Unilever Network, Direct to home business. In the year 2004, the company launched 'Pureit' water purifier. In the year 2005, Lever India Exports Ltd, Lipton India Exports Ltd, Merry weather Food Products Ltd, Toc Disinfectants Ltd and International Fisheries Ltd were amalgamated with the company. In February 2006, Vasishti Detergents Ltd (VDL) merged with the company. In September 2006, Modern Foods Industries (India) Ltd and Modern Foods & Nutrition Industries Ltd was merged with itself. In October 2006, the company divested its 51% controlling stake in Unilever India Shared Services Ltd, now known as Capgemini Business Services (India) Limited (CGSL) to Cap Gemini SA. In March 2007, Sangam Direct, a non-store home delivery retail business, operated by Unilever India Exports Ltd (UIEL), a fully owned subsidiary was transferred to Wadhavan Foods Retail Pvt Ltd (WFRPL) on a slump sale business. Also, the company carried out demerger of its operational facilities in Shamnagar, Jamnagar and Janmam and formed three independent companies, namely Shamnagar Estates Pvt. Ltd, Jamnagar Properties Pvt Ltd and Hindustan Kwality Walls Foods Pvt Ltd. In June 2007, the company changed its name from Hindustan Lever Ltd to Hindustan Unilever Ltd. In the year 2008, the company announced its collaboration with the Indian Dental Association (IDA) in conjunction with World Dental Federation (FDI) through its Pepsodent, leading oral care brand to help improve the oral health and hygiene standards in India. In April 2008, the company demergered and transferred certain immoveable properties to Brooke Bond Real Estates Pvt Ltd. In January 2010, the company inaugurated the new corporate office of the company. In April 2010, the company approved the scheme of amalgamation of Bon Ltd, a wholly owned subsidiary of Hindustan Unilever Ltd., with the company. The appointed date for the abovementioned scheme was April 01, 2009 and the scheme shall be effective from April 28, 2010. Consequent to the amalgamation, Bon Ltd ceased to be a subsidiary of the company. During the year 2010-11, Kissan forayed into new market segment in three big categories. It launched Kissan Fruit & Soya, a delicious blend fruit juice and soya milk, which enjoys a differentiated proposition in this market. The brand also entered into the Indian (non-sweet) spreads market with the launch of Kissan Creamy Spread across key towns. In Bakery division, the company launched two new products, namely Chapi and Cream Rolls. During the year, the company divested 43.31% stake in Hindustan Field Services Pvt Ltd in favor of Smollan Group (the jv partner). Thus, Hindustan Field Services Pvt. Ltd. ceased to be a subsidiary company. Lakme Lever Pvt Ltd, a wholly owned subsidiary of HUL, expanded the network of Lakme Beauty Salons during the year with the opening of 11 company owned and managed salons, along with 18 franchisee salons. As of March 31, 2011, the company had over 35 brands spanning 20 distinct categories. Its portfolio includes household brands, such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Vaseline, Lakme, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan,

Kwality Wall's and Pureit. In December 2011, the company demerged the FMCG exports business including specific exports related manufacturing units of the company into its wholly owned subsidiary Unilever India Exports Ltd (UIEL). The scheme became effective from January 1, 2012.

CHAPTER-4 PRODUCT PROFILE

PRODUCT OF NESTLE

Presenting - Maggi Magic CUBES : it is highly versatile and adds a deep, rich taste to your dishes. Just crumble a cube, add it to your dish, stir well, and then taste the magic! Use them for making curries, rice dishes and even Biryani! Maggi Magic CUBES are available in two exciting variants - Vegetarian Masala and Chicken.

Presenting another first from MAGGI ! The first ever fortified taste enhancer that can be used across different cuisines in India. It is not a simple masala, but is unique in that it efficiently enhances the taste inherent in the food ingredients already present.

3.

MAGGI brings to you NUTRI-LICIOUS PAZZTA- an offering to delight your every sense and make you fall in Love! It comes in saucy, lip-smacking flavours and shapes - Masala Penne, Cheese Macaroni & Tomato Twist. This NUTRI-LICIOUS product is made from 100% SUJI and is also a source of protein & fibre. Whats more, this quick cook pasta can be conveniently prepared in just 5 minutes!

4.

Now you do not need to order from outside and wait for 30 minutes. With MAGGI Pizza Mazza one can prepare delicious pizzas within minutes. You can also have the mazza of the pizza on other items like naans, footlongs and of course the most easily available of them all bread slices. Available in a 300 gm jar, each bottle is good for 5 pizza bases. So go ahead and treat your family to the taste of authentic pizzas tonight!

5.

Maggi Sauces have been an integral part of the Indian consumers households for decades now. Launched in the mid-1980s, MAGGI Sauces has been associated with category re-defining innovations from the very beginning, starting with the launch of the unique MAGGI Hot & Sweet and Its different commercials featuring Jaaved Jaaferi and Pankaj Kapoor. Over the years, MAGGI has continuously re-invented itself in terms of new products, packaging, promotion & distribution to emerge and sustain itself as the largest sauces brand in India. To cater to the diverse Indian palate, MAGGI has a host of variants, including: The quintessential Rich Tomato Ketchup and Rich Tomato Sauce (No Onion No Garlic) The unique Hot & Sweet Tomato Chilli Sauce The tangy and chatkaaredar Imli Pichkoo

MAGGI has also launched the Rich Tomato Ketchup in the convenient doy pack format called Pichkoo that has made the unique flavors of MAGGI affordable to a whole new set of consumers.

6.Chocolates

What began as a bitter drink in pre-historic tropics of South America 3000 years ago has become one of the worlds most popular treats. In the beginning, dark chocolate was the only form of chocolate available. Today, Dark Chocolate is considered as a premium chocolate treat and commonly available around the globe. The Indian consumer has a preference for sweet treats and the sweet touch in the bitterness of our NESTL DARK CHOCOLATE has been especially designed to delight those palates.

7.

NESTL KIT KAT is crisp wafer fingers covered with chocolayer. NESTL KIT KAT has a unique finger format with a breaking' ritual attached to it. NESTL KIT KAT is one of the most successful brands in the world and every year over 12 billion NESTL KIT KAT fingers are consumed around the globe.

8.

NESTL BAR ONE is a delightful combination of luscious nougat and caramel centre covered in delicious chocolayer. Its enjoyable taste and exciting packaging will treat you with an indulgent snacking experience. NESTL BAR ONE is available at convenient price options of Rs. 5/- & Rs. 10/-, for 14g and 28g respectively. Also try out our new 140g share bag, which is available at Rs. 50/- and has 10 delightful units of 14g each ! *MRP Rs 5(inclusive of all taxes) for 14g *MRP Rs 10(inclusive of all taxes) for 28g

9.

10.

Enjoy the goodness of milk in every bite of MILKYBAR! A tasty sweet and creamy treat for your outdoor champions! DUM HAI TOH BAHAR NIKAL!

11.

MILKYBAR Choo - a tasty chewy MILKYBAR also available in yummy Strawberry and Choko flavors!! Outdoor champions, grab one now!

12.

Discover the delicious combination of a crispy wafer with all the milk goodness of MILKYBAR!

13.
NESTL Eclairs with an irresistible outer layer of caramel and a yummy milky filling, you will not find a better temptation.

14.

15.
NESTL Milkybar Eclairs made up of delicious caramel on the outside with the goodness and rich taste of Milkybar filling in the inside. An all time favorite.

16.
NESTL Chocolate Eclairs made up of delicious caramel on the outside with a real Chocolate filling in the inside. A favorite amongst all, it Lasts REALLLLLY Long.

17.

Give a maverick designer a delicious new muse and hell create magic. Magic is exactly what we got on POLO - as fashion designer Wendell Rodricks unveiled his latest - POLO FASHION Flavours. New York inspired POLO Cinnamon flavor Paris inspired POLO Watermelon flavor London inspired POLO Peppermint flavor

18.

MILKMAID Creations is an exciting new range of powdered dessert mixes from the MILKMAID brand. Developed by expert chefs using ingredients of the highest quality & leveraging MILKMAIDs 100 year heritage and knowledge of desserts & Indian consumers, Nestl MILKMAID CREATIONS brings some of Indias favorite desserts to the kitchens of homemakers who can now prepare these treats for their families anytime and create happy moments thanks to the guarantee of delicious taste, simple 3-step recipes and only 10-15 mins. of cooking time. The range is available in five variants, viz. Eggless plain Cake, Pista Kulfi, Besan Laddoo, Eggless Chocolate Cake & Rice Kheer. The MILKMAID brand in India is synonymous with mouth-watering desserts and delicious taste amongst the consumers. Every day, thousands of housewives across the country make delicious desserts quickly and conveniently using MILKMAID much to the delight of their families and friends. MILKMAID Creations is a contemporary extension of the brand in a direction that caters to the needs of the convenienceseeking consumers of today. MILKMAID Creations is currently available at select outlets in 54 cities across the country.

19.

NESTL Milkmaid leads the sweetened condensed milk category in India with a dominant market share. It was the first Nestle brand to be available in the country and celebrated its 100 years in India in 2012.

20.

NESTL NESLAC Nutritious Milk for growing kids. It leverages Nestls great know-how and equity in the infant nutrition space, to develop products for kids above 2 years of age. NESTL NESLAC is the only MILK drink which has been specially formulated to support the nutritional needs of a growing child in terms of both growth and immunity. It contains 4 key IMMUNONUTRIENTS: Vitamin C, Vitamin A, Zinc & Selenium and is a source of other essential nutrients like Protein, Calcium & Vitamin D. It is also a good source of prebiotic fibre which supports a healthy digestive system.

21.

NESTL EVERYDAY Dairy Whitener is made using milk of the highest quality standards and benefits from 140 years of expertise that NESTL has developed in manufacturing dairy products around the world. This passion for quality, and our continuous effort to deliver the very best, is reflected in NESTL EVERYDAY. So every time you serve a great tasting cup of tea made with NESTL EVERYDAY, you know its the perfect cup of tea.

CHAPTER-5 OBJECTIVE OF THE STUDY

OBJECTIVE
Evaluating companys performance relating to distribution channel. To identify the strengths and weakness of the company.

To find out selection criteria of channel of company. To find out how company manage their product and distribution. From the analysis of distribution channel management, knowing how to manage distribution for day to day requirement.

To identify how they satisfying their customer.

CHAPTER-6 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
Research is a systematic and objective analysis and record of controlled observation thet may lead to development of knowledge, principle and theory. Research is the method of studying, analyzing and conceptualizing social life in order to verifying, modifying, and correcting knowledge, weather that knowledge is for practices or theory. Research is systematic and objective way of finding answer to question or solution of the problem. The marketing research is a process involve number of interrelated activities, which overlap and do rigidly follow particular sequence. It consist of the following step:-

Formulating the objective of the study. Designing the method of data collection. Selecting the sample plan. Collection of data. Data analyzing.

RESEARCH DESIGN
Research design is the method and process of analyzing information needed. It is frame work of the project that analyze what information is to be collected from what source and what procedure. Research design is the plan structure and strategy of investigating conceived so as to obtain answer to research question and to control variance. The research design constitutes the blue print for the collection, measurement and analysis of data.

I have chosen the descriptive research design.

DESCRIPTIVE RESEARCH DESIGN:Descriptive research also known as statistical research, describes data and characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, what, where, when and how... In descriptive research, researcher must able to define clearly, what he want to measure and must find adequate method for measuring it along with a clear cut definition of population he want to study. The descriptive study may be concerned with the attitude or views of a people toward any thongs e.g. attitude toward presidential form of government, right to strike, capital punishment, collage autonomy e.t.c.

COLLECTION OF DATA

Collection of data is preliminary step in enquiry. There are two type of data through which we collect the information and execute the result afterward. Primary data, Secondary data.

PRIMARY DATA
It is the information which has never been discovered or found out or available in written format. This data or information is totally new and help very efficiently to solve the unanswered question. such data are original in character and are generated in large number of surveys conducted mostly by government or by individuals, institution and research bodies. Following are the method of collecting primary data: Interview Questionnaire Observation Group discussion

SECONDARY DATA Secondary data is the information which has been already found out by someone or available in written format. As the data is already published and known in general is called secondary data. We use secondary data for collection of information in project. We get secondary data from: Internet Books Magazines Newspaper And many more.

Here we done analysis on the basis of secondary data, which includes:-

Industry profile Company profile Information about Product and services Distribution channel of the company e.t.c.

CHAPTER-7 DATA ANALYSIS AND DATA INTERPRETATION

Which company does you prefer for purchasing products?

Company name NESTLE HINDUSTAN UNILIVER

Number of customer 22 18

Analysis:- From the above graph we can analyze that 22 out of 40 prefer NESTLE, 18 out 0f 40 prefer HINDUSTAN UNILIVER. Interpretation:-so we can interpret that 55% of customer prefer NESTLE and 45% of customer prefer HINDUSTAN UNILIVER.

Which factor do you think should be given more importance while transacting with a company?

Factors Products Services Others

Numbers 15 14 11

Percentages 37.50% 35% 27.50%

Analysis:-we can analyze the 15 out of 40 gives more important to products, 14 out of 40 gives to services, and 11 out of 40 gives to other factors. Interpretation:- consumer give more important to products of the company. The second more important things according to customer is services and last importance things is other(price, design e.t.c.)

Are you aware of all products and services offered by your company?

company NESTLE HINDUSTAN UNILIVER

Number of yes 18 13

Number of no 04 05

Analysis:- we analyze that 18 out of 26 NESTLE customer are aware of all products offered by company and 08 are not aware. In HINDUSTAN UNILIVER 9 out of 14 aware of all products offered by company and 05 are not aware of products. Interpretation:- The awareness level of NESTLE is more than HINDUSTAN UNILIVER . 69.23% of NESTLE customer are aware of all products offered by company. While in HINDUSTAN UNILIVER it is 64.28%.

Are you satisfied by the products and services offered by your company?

Company NESTLE HINDUSTAN UNILIVER

Number of yes 22 10

Number of no 04 04

Analysis:-we analyze that 22 out of 26 NESTLE customer are satisfied of all products and services offered by company and 04 are not satisfied. In HINDUSTAN UNILIVER 10 out of 14 satisfied of all products and services offered by company and 04 are not satisfied of products and services offered by company. Interpretation:- 84.61% of NESTLE customer are satisfied of all products and services offered by company. While in HINDUSTAN UNILIVER it is 71.42%. The satisfaction level of customer of NESTLE is more than HINDUSTAN UNILIVER. .

Rate the service given by your company?

Company NESTLE HINDUSTAN UNILIVER

Very good 14 4

good 6 4

Average 4 3

Bad 2 3

Analysis:- we analyze that 14 out of 24 NESTLE customer are think that service is very good, 6 think that service is good, 4 think that service is average and 2 think service is bad. While in HINDUSTAN UNILIVER4 out of 16 think that service is very good, 4 think that service is good, 3 think that service is average and 3 think service is bad. Interpretation:- 53.84% 0f NESTLECUSTOMER think that service is very good, while in HINDUSTAN UNILIVER it is only 28.57% and 7.69% 0f NESTLE customer think that service is Bad, while in HINDUSTAN UNILIVER it is 21.42%. Are you satisfied with the distribution of product and services of your company?

Company NESTLE HINDUSTAN UNILIVER

Number of yes 16 10

Number of no 6 8

Analysis:- 16 out of 22 of NESTLE customer are satisfied with distribution of product and services and 6 are not satisfied. While in HINDUSTAN UNILIVER 10 out of 18 customer are satisfied with distribution of product and services and 6 customer are not satisfied.

Interpretation:- 72.72% of NESTLE customer are satisfied with distribution of product and services. While in HINDUSTAN UNILIVER 55.55% customer are satisfied with distribution of product and services. So we can interpret that NESTLE customer are more satisfied with distribution of product and services of the company. Which company product gives good product?

Company NESTLE HINDUSTAN UNILIVER

Numbers 26 14

Analysis:- we analyze that 26 out of 40 NESTLE customer are think that their product gives good clean water. While in HINDUSTAN UNILIVER 14 customer out of 40 think that their product gives good clean water. Interpretation:- 65% of NESTLE customer and 35% of HINDUSTAN UNILIVER customer are satisfied with the quality of water. so we can interpret that NESTLE customer are more satisfied with water as compare to HINDUSTAN UNILIVER. While complaining about your product, which company give good and fast services?

Company NESTLE

Number 20

HINDUSTAN UNILIVER Others

10 10

Analyze:- we can analyse that 20 out of 40 customer think NESTLE company give good and faster services. While in HINDUSTAN UNILIVER it is 10 and in others it is 10. Interpretation:- 50% customer think NESTLE company give good and faster services. 25% customer think HINDUSTAN UNILIVER company give good and faster services and 25% customer think other company give good and faster services. so we can interpret that NESTLE give good and faster services as compare to all.

According to you which company have products of low range?

Company NESTLE HINDUSTAN UNILIVER Other

Number 12 08 20

Analyze:- from the above graph we analyze that 12 customer think that NESTLE give product of low range, 8 customer think that HINDUSTAN UNILIVER give product of low range and 20 think that other company give product of low range. Interpretation:- so we can interpret that others company gives product of low range as compare to NESTLE and HINDUSTAN UNILIVER.

CHAPTER-8 FINDINGS

FINDINGS From the research, it is found that service plays an important role in selecting a company. Good service by company is preferred by the people. This is the place where HINDUSTAN UNILIVER lack behind NESTLE.

Still all the customers are not aware of many product and services provided by the company. This gap has to be filled.

The company needs to improve its customer satisfaction and people always prefer the company near to them.

The NESTLE are more user friendly HINDUSTAN UNILIVER.

Still distribution of product of the company are not good to fulfill need of customer.

From the research it is found that NESTLE provide more QUALITY PRODUCTS as compare to HINDUSTAN UNILIVER.

Mainly people prefer product of low range.

CHAPTER-9 SUGGESTIONS

Suggestions
NESTLE should improve its customer service. As it plays an important role in attracting customers. Employees should be trained to handle customers.

The company should come forward with meaningful advertisements and awareness campaigns to create awareness among customers regarding services and to make the popular amount the entire age and income groups.

Proper communication channel should be there between customer and the company, especially in NESTLE. Product information has to be communicated to the customer. There are many product of HINDUSTAN UNILIVER which are normal customer is unaware off.

Company like HINDUSTAN UNILIVER should improve there network of branches. They should enter the rural area which is a major part of Indian market.

The company as to improve the distribution channel of product and services so as to satisfying customer.

Company has to launch the new product of low range so that low income people can also buy.

System should be simple to used, fast and user friendly. Service should we standardized so that wherever it is used the customer is familiar with the procedure followed. Customer should have ready sources of advise, weather this is to call centers, through publicity or through physical presence.

CHAPTER-10 CONCLUSION

Conclusion

Most of the people are aware of the services given by the company either NESTLEor HINDUSTAN UNILIVER. New generation people mostly prefer NESTLE services. Here, advertisement plays advertisement plays a major role in making people aware of the services offered by the different company. New company and foreign company have entered the market, which has made the competition intense. Innovative ways of marketing has to be use. The service plays a very important role in attracting customers. Special care has to be taken in customer service. As we know that NESTLE is a private company so its brand image is much higher than other company, and under this analysis also the NESTLE has very strong marketing strategy in comparison to HINDUSTAN UNILIVER. So from the above information I analyzed that nestle have more chance of success then HINDUSTAN UNILIVER. The satisfaction level is also more in NESTLE, from the research we conclude that normal person that have low income not able to invest in NESTLE products. By Studying the recent developments we can see that both company are contracting on a rural and urban area for business. So we can conclude that both company are taking special marketing initiative to capture the Rural market of India. From this research we can conclude that NESTLE also has to take care of

the weaker section of the society, so there marketing strategies are restricted. From the research we also see that distribution channel of the company are still not good so as to fulfill need of customer.

CHAPTER-11 BIBLIOGRAPHY

BIBLIOGRAPHY X

Websites:-

www.nestle.com.
WWW.hindustanuniliver.com

www.distributionchannelofnestle.com www.distributionchannelofhindustanuniliver.com

CHAPTER-12 ANNEXURE

ANNEXURE QUESTIONNAIRE
Personal detailsName Mr./Mrs./Miss _____________________________________________________

Address ____________________________________________________________________

Email ____________________________________________________

Which company does you prefer for purchasing product? NESTLE HINDUSTAN UNILIVER

Which factor do you think should be given more importance while transacting with a company? Products Services others

Are you aware of all products and services offered by your company? Yes No

Are you satisfied by the products and services offered by your company? Yes No

Rate the service given by your company? Very good Good Average Bad

Are you satisfied with the distribution of product and services of your company? Yes No

Which company product gives good clean water? NESTLE HINDUSTAN UNILIVER

While complaining about your product, which company give good and fast NESTLE HINDUSTAN UNILIVER OTHER

services?

According to you which company have products of low range? NESTLE HINDUSTAN UNILIVER OTHER

Any

suggestion

for

the

company

______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________

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