Professional Documents
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Chapter 1
Introduction
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INTRODUCTION
Nestlé was founded in 1866 by Henri Nestlé and is today the world's biggest food and beverage
company. Sales at the end of 2005 were CHF 91 bn, with a net profit of CHF 8 bn. Nestlé
employ around 250,000 people from more than 70 countries andhave factories or operations in
almost every country in the world. The history of Nestlé began in Switzerland in 1867 when
Henri Nestlé, the pharmacist, launched his product Farine Lactée Nestlé, a nutritious gruel for
children. Henri used his surname, which means ’little nest’, in both the company name and the
logotype. The nest,which symbolizes security, family and nourishment, still plays a central role
in Nestlé’s profile. Since it began over 130 years ago, Nestlé’s success with product innovations
and business acquisitions has turned it into the largest Food Company in the world. As the years
have passed, the Nestlé family has grown to include chocolates, soups, coffee, cereals, frozen
products, yoghurts, mineral water and other food products. Beginning in the 70s, Nestlé has
continued to expand its product portfolio to include pet foods, pharmaceutical products and
cosmetics too. Today, Nestlé markets a great number of products, all with one thing in common:
the high quality for which Nestlé has become renowned throughout the world. The Company's
strategy is guided by several fundamental principles. Nestlé's existing products grow through
innovation and renovation while maintaining a balance in geographic activities and product lines.
Long-term potential is never sacrificed for short-term performance. The Company's priority is to
bring the best and most relevant products to people, wherever they are, whatever their needs,
throughout their lives.Taste of Nestlé in each of the countries where Nestlé sell products. Nestlé
is based on the principle of decentralization, which means each country is responsible for the
efficient running of its business - including the recruitment of its staff.
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That's not to say that every operating company can do as it wishes. Headquarters inVevey sets
the overall strategy and ensures that it is carried out. It's an approach that is best summed up as:
'centralize what you must, decentralize what you can'. Nestlé is a company which is present in all
over the world but It has difference and unique motto to deal in all over the world. Nestlé
believes that they should think abouttheir organizations globally but they deal with people by
interacting with them locally.
Vision of Nestlé
Nestlé's vision of making good food central to enjoying a good healthy life for consumers
everywhere. This implies gaining a deeper understanding in many areas of nutrition and food
research and transforming the scientific advances into applications for the company. Having a
broad vision the company is doing its best for their consumers to show the great sense of
responsibility.
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Our objectives are to deliver the very best quality in everything we do, from
primary produce, choice of suppliers and transport, to recipes and packaging materials. Our oper
ations and collaboration in the Nordic countries gives us greater opportunities to be efficient and
strategic and to function well as an organization, both when it comes to the distribution chain and
to concentrating on joint product launches and campaigns.
Increased investments in the sphere of e-business give us swifter business and direct contact with
trade. Our website is a forum for consumers, students, future employees and the media. We hope
that through a sincere approach and by conducting dialogues, we will be able to improve, change
and satisfy the demands and wishes of the people of today.
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HISTORY
•In 1866, Charles Page (US to Switzerland) and George Page, brothers from Lee County,Illino
is, USA, established the Anglo-Swiss Condensed Milk Company in Cham, Switzerland. Their
First British operation was opened at Chippenham, Wiltshire, in 1873.
•The company grew significantly during the First World War and again following the Second
World War, expanding its offerings beyond its early condensed milk and in fant formula
products.
•The company has made a number of corporate acquisitions, including Crosse & Blackwell in
1950; Find us in 1963, Libby's in 1971, Rown tree Mack in tosh in 1988, and Gerber in 2007.
•The first half of the 1990s proved to be favorable for Nestlé. Trade barriers crumbled, and
World markets developed in tomoreor less in targeted trading areas.
•Since 1996, there have been various acquisitions. In April 2007, returning to its roots, Nestlé
bought US baby-food Manufacturer Gerber for US $5.5 billion.
•In December 2007, Nestlé entered in to a strategic partnership with a Belgian chocolate.
•In July 2011, Nestlé SA agreed to buy 60 percent of HsuFuChi International Ltd for about US
$1.7 billion.
•In January 2018, Nestlé USA announced it is selling its U.S. confectionary business to Ferrero,
an Italian chocolate and candy maker. The company was sold for a total of an estimated
$2.8billion.
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Company Profile
•Industry
Food processing
•Founded
1866; 152 years ago (as Anglo-Swiss Condensed Milk Company)
1867; 151 years ago (as FarineLactée Henri Nestlé)
1905; 113 years ago (as Nestlé and Anglo-Swiss Condensed Milk Company)
•Founder
Henri Nestlé, Charles Page, George Page
•Headquarters
Vevey, Vaud, Switzerland
•Area served
Worldwide
•Key people
Paul Bulcke (Chairman)
Ulf Mark Schneider (CEO)
Products
Baby food, coffee, dairy products, breakfast cereals, confectionery, bottled water, ice cream, Pet
foods
•Number of employees
335,000
•Website
https://www.nestle.in/nestle
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SWOT
Analysis
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Strengths Weaknesses
Threats Opportunities
2. There is pressure from large nations such as China and India create
retailers such as Wal-Mart cut prices. larger and broader markets for Nestlé’s
products.
3. The growing use of new retail
channels such as Amazon Prime and 3. Increased disposable income in
dollars to may not favor traditional retail countries like China could increase the
products. demand for luxury items like bottled
water, ice cream and pet food.
4. They have experienced disruption
of the traditional grocery industry in 4. Changes in life style, such as
countries like the United States by new longer work hours, more women in the
players such as Whole Foods Market work force, and more single-person
and online retailers. households, increase the demand for pre
packaged foods.
5. There is a growing in
effectiveness of traditional advertising 5. Increased mobility and car
as new technologies such as Streaming ownership increase the demand for
video supplant traditional broad cast and candy, bottled water and snack foods in
print media. nations like China..
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PRODUCT PROFILES
Cereals
Breakfast cereals
Honey Cheerios
Oat Cheerios
Cookie Crisp
Honey Oats & More
a) Chilled meats
Herta Frankfurters
Herta Chicken Frankfurters
Herta Jumbo Frankfurters
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Drinks
a) Coffee
Nescafé Original
Nescafé Alta Rica
Nescafé Black Gold
Coffee-Mate
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b) Hot chocolate
Carnation Caramel
Carnation Condensed Milk
Carnation Evaporated Milk
Carnation Extra Thick Cream
d) Milkshake
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e)Water
Aqua Panna
Buxton
Perrier
Confectionary
a)Biscuits
Kit Kat
Kit Kat Caramel
Kit Kat Dark
Ptit Biscuit
Kit Kat Mini
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b)Boxed chocolates
Black Magic
Dairy Box
Quality Street
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d) Cake mixes
e) Chocolate bars
Aero Bubbles
Animal Bar
Crunch Milk Chocolate
Heaven Milk Chocolate
Milky Bar
Munchies
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f)Sugar Confectionary
Fruit Gums
Juicy Jellies
Polo Sugar Free
Baby Food
Cerlac
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Nutritional supplements
Build-up Milkshake
Build-up Nutrition Soup
Resource Dessert Fruit
Pet Food
Bakers Complete
Go-Cat
Gourmet
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Introduction
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Consumer Behavior –
It is defined as all psychological, social and physical behavior of potential customers as they
become aware, evaluate, purchase, consume, and tell to other about product and services.
Buying behavior involves both individual (psychological) and group process.
Buyer behavior is reflected from awareness right through post purchase
evaluation indicating satisfaction, from purchaser.
Buyer behavior includes communication, purchasing and consumption
behavior
Consumer behavior is basically social in nature hence the social factors
play important roles in shaping buying behavior.
Customer and consumer words are referred as synonyms but the difference exists
Customer - the purchaser of product or service, may or may not be the end user
Consumer –the end user, may or may not be the purchaser
New age of business demands differentiation of customer by individual difference in
consumer expectations, preference and influences.
Firms need to go into deep of consumer behavior to analyze and act to achieve objectives.
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Consumer behavior can be said to be the study of how individual make decision on how to spend
their available resources (time, money, effort) on various consumption related items. This simple
definition of consumer behavior tells the markets to resolve every activity around the ultimate
consumers & gauge their behavior by specially focusing on:
These questions will help in understanding better what factors influences better what factors
influences the decision making process of the customer.
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Individual factors
Cognitive thinking process – perception, attitude, needs/motives
Personal characteristics – demography, lifestyles, personal traits
Environment factors
Culture- values, beliefs, sub culture / cross cultural factors
Social class- social class, society
Influence groups- family, opinion leaders, reference group
Situational variables – purchase occasion, market communication, shopping
behavior, price, sales influence, product position.
Consumer Research:-
Consumer research is the methodology used to study consumer behavior research offer set
diverse to identify consumer needs it is used to identify both felt & stores. What their attitudes
are before and after promotional campaigns & how & why they makes their consumption
decision.
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Consumer Satisfaction:-
All business firms have realized that marketing is a core element of management philosophy &
the key to its success lies in focusing more & more on the consumer satisfaction. That is, it will
be the customer is to ensure that they should satisfy every customer. Satisfaction is an important
element in the evaluating stages, satisfaction refer to the buyers state of being adequately
rewarded in a buying situation for the sacrifices he has made one the customer purchase & use
the product they may then become either satisfy or dissatisfied. Satisfied customer are people
who are happy with the product & services & are willing to come back & pay for it again.
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Broadly one can classify buyer behavior models into four broad categories namely economic,
learning, psychoanalytical and sociological.
I. The Economic Model: According to this economic model of buyer behavior, the buyer
is a rational animal and his buying decisions are totally governed by the concept of
utility. It leads us to the four important predictions about the buyer behavior. 1Lowerthe
‘price effect’. 2 Higher the purchasing power, the higher will be the quantity that will be
bought which is known as ‘income effect’. 3 Lower the price of a substitute product; the
lower quantity will be bought of the original product which is known as ‘substitute
effect’. 4 Higher the provisional expenditure, the higher the sales which is most
commonly known as ‘communication effect’.
II. Learning Model: Learning process involves three steps namely, Drive-a strong internal
stimulus which impels action. A drive-need-thus motivates a person for action to satisfy
the need. Cues are weak stimuli. Cues determine when the buyer will respond. Say, we
have cues such as a product advertisement relevant to the situation and existing in our
environment. Response is the final stage which is need to fulfill the drive or a need
which was action as a strong stimulus. Thus, the thirst, can be quenched by a soft-drink
supported by an add.
III. The Psychoanalytical Model: The psychoanalytical model draws from Freudian
psychology. According to this model, the individual consumer has a complex set of deep
seated motives which drive him towards certain buying decisions. The buyer has a private
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world with all his hidden fears, suppressed desires and totally subjective longing. His
buying action can be influenced by appealing to these desire and longings.
IV. Sociological Model: According to the sociological model, the individual buyer behavior
is influenced by society, by intimate groups as well as social classes.
Here “Input” covers purchasing power, marketing unit, intrapersonal influences and
other environmental factors. Inter-personal influences are motivation, perception,
learning, attitude and the buyer’s personality.
The “Output” covers the buyer’s attitudes, opinions, feelings, and the preferences as
influenced by buying process and buyer’s action such as patronage, brand and store
loyalty, positive or negative influence up on other potential buyer.
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Competitors
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Keurig
Nigeria Breweries
Starbucks
Magi products
Unilever
Amul
Baker Hostetler
Engro Foods
Walmart
Heinz
IBFAN
Euro Africa
Glencore
Groupe DANONE
Mars
Yinlu Foods
Mother Dairy
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As a result, many companies enter into the market every year in an attempt to gain a
portion of the profitable market. Luckily for Nestle, the company has been around in
china for decades and boasts a long history of quality products and consumer satisfaction,
which has allowed the company to obtain a considerable share of the market.
As a result, new entrants into the industry must attempt to seize a portion of Nestlé’s
market share in order to survive.
Essentially, Nestle is constantly a target, and so the threat of new entrants is relatively
low.
Competition if healthy would bring huge success but if negative would destroy the whole
industry is it should be critically analyzed for better future of the company.
Nestle has a very strong position in the food processing industry but few major rivals do
exist in the industry like Kraft Foods and Group Danone.
About mentioned companies are fighting continuously to get on to each other and avoid
any sort of competition but I is still there.
If we about marketing and advertising these companies have spent hell of their
expenditures for the purpose of effective marketing and advertising and in competition
they have always but performed each other.
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Nestle has been done a lot of things to full fill the customer satisfaction needs like food quality,
safety and reliability, health, wellness & nutrition, perception of foods, customer future
expectation and promotion. 3 Justification The writer’s undergraduate course will be ‘marketing
and management. The course is about monitoring the marketplace, organizing and analyzing the
results of data collection, and developing strategies for future marketing activities. As a global
food business, the top priority to Nestle is quality-One of the examples is coffee farming and
production. Nestle has been trained the farmer for new technology to minimize water usage in
the coffee production process because many of the coffee farmer are smallholders bad they did
not have enough resources of clean water. This technology had been improved the coffee quality,
water saving and also increase profit for coffee farmer 7 4. Safety and reliability To guarantee its
food safety, Nestle uses five systems quality management system, from farm to fork to Hazard
Analysis to minimize food hazards.
However, maintaining high standards of food safety and reliability is of utmost importance
because customers, in general, are unforgiving with companies with stained records. In this
aspect, Nestle has done very well by having only 3 major food incidents (Wisped – Nestle) since
the company’s founding in 1866. 5. 0 Health, wellness and nutrition More than 220 million
people around the globe suffer from diabetes and approximately 18 million people have
Alchemies due to poor dietary consumption and lifestyles. In 2005, Nestle recognized that the
food consumption habits of the world’s population were changing. The founder then began to
move away from selling processed food and confectionery, and started to move towards
becoming a producer of food with health and nutrition benefits and ultimately, a provider of a
wide range of products and services in the nutrition, health and wellness business-Nestle planned
to invest $500 million in the next 10 years to improve its health and wellness products to ensure
customers could eat their food without worrying about getting fat or diabetes. As part of Nestles
health policy since 1999, Nestle has been committed to not exceeding the level of TFAA in their
products by 3% of the total fat in their foods and 1% for daily total energy intake.
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CHAPTER – 2
RESEARCH
METHODOLOGY
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Research Methodology
The process used to collect information and data for the purpose of making business
decisions. The methodology may include publication research, interview, survey and
other technique, and could include both present and historical information.
Scope of Study
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Research Design
Concussive research design is more formal and structured than the exploratory design. It is use to
test the hypotheses and examine the relationship. Descriptive research design is the part of the
conclusive design and it describes the market characteristics or functions. It describes the
characteristics of relevant groups such as consumers, organizations etc. The collection of the
information from the sample population is drawn only once so it is cross sectional design.
I. Type of Research:
Descriptive Research:- The description studies is used in the project due to fact that the
descriptive studies attempt to obtain a complete and accurate description of a situation
that is it covers, the all phase required and provide the ways to collect the data from
various sources of information (sample design), ensure minimum bias in the collection of
data, hold costs to a minimum and reduce the errors in interpreting the data collected.
Field Survey
Personal Interview
Questionnaire
Telephone interview
Secondary data:- Secondary data has been collected from products magazines, books related to
consumer behavior, from Internet sites like (www.nestle.com, www.nestlewikipedia.com)
Internet
Advertisements
Social media
Newspapers
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Area Covered:- In Mandi gobindgarh, specific areas surveyed are sham nagar, subash
nagar, Gandhi nagar, shastri nagar, New model colony.
Bar Charts
Percentage
Questioner
Limitation of survey
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CHAPTER-3
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DATA ANALYSIS
Data:
Analysis:
AGE
10%
20%
36%
34%
Interpretation
According to the above analysis it is conclude that I have100 respondents out of which 20%,
34%, 36%, 10% belong to age group of 5-10, 10-20, 20-30, above 30 respectively.
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Data:
Count of
Brand Brand
Maggi 127
Top
Ramen 55
Others 18
Analysis:
Count of Brand
140
120
100
80
60 Count of Brand
40
20
0
Maggi Top Ramen Others
Interpretation:
Nestle Maggi is more preferable brand into the market other than top ramen. More than 63.5%
customer likes to purchase Maggi. The market share covered by Top- Ramen is 27.5%. the
market share covered by other companies is 9%.
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Data:
Analysis:
NO. OF RESPONDENTS
26%
74%
CADBURY NESTLE
Interpretation:
There are many brands available in the market. But the market leader in India is Cadbury and
Nestle. According to survey-
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DATA:
Analysis:
NO. OF RESPONDENTS
8%
20%
30%
42%
Interpretation
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Data:
NO. OF
SR NO OPTIONS RESPONDENTS Percentage
1 Munch 26 26%
2 Kit Kat 32 32%
3 Milkybar 29 29%
4 Toffee Crisp 13 13%
Total 100 100%
Analysis:
NO. OF RESPONDENT
13%
26%
29%
32%
Interpretation:
From above data analysis of sample of 100 respondents who eat Nestle chocolate it is concluded
that-
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Data:
Analysis:
Number of Respondents
22%
Yes
No
10%
Average
68%
INTERPETATION:
From above data analysis of sample of 100 respondents who satisfied with nestle product it is
concluded that-
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Data:
Analysis:
FORM OF CHOCOLATE
10%
30% 1 Hard
20%
2 Nutties
3 Crunchy
4 chew
40%
Interpretation:
From above data analysis of sample of 100 respondents for which chocolate do you like it is
concluded that-
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Question-8) Which brand according to you is giving the most competition to Nestle in India?
Data:-
Analysis:-
Number of Respondents
15%
Cadbury
48%
Amul
Mother Diary
37%
Interpretation:-
From above data analysis of sample of 100 respondents for the competitors of Nestle in India is
concluded that-
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Data:-
Analysis:-
60
50
40
30
Number of Respondents
48
20
37
10
15
0
High Quality Average Quality Low Quality
Interpretation:-
From above data analysis of sample of 100 respondents for the Quality of Nestle Products is
concluded that-
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Data:-
Analysis:-
Number of Respondents
13%
Nestle
47% Tata coffee
Bru
32%
Narasu's Coffee
8%
Interpretation:-
From above data analysis of sample of 100 respondents for the Quality of Nestle Products is
concluded that-
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Data:-
Analysis:-
Number of Respondents
15%
Nestle
48%
Farex
Grainylac
37%
Interpretation:-
From above data analysis of sample of 100 respondents for the Quality of Nestle Products is
concluded that-
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Data:-
Number of
Brand Respondents Percentage
Nestle 22 22%
Ovaltine 19 19%
Hershey’s Special Dark 40 40%
Swiss Miss 19 19%
Analysis:-
Number of Respondents
19% 22%
0 Nestle
Ovaltine
Hershey’s Special Dark
19%
Swiss Miss
40%
Interpretation:-
From above data analysis of sample of 100 respondents for the Quality of Nestle Products is
concluded that-
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Chapter-4
Findings
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Findings
Based on the data gathered by administrating schedules to customers the following observations
are made
i. Nestle Products has excellent percentage of customer satisfaction according to the data
shown in table 6 of the data analysis and Interpretation topic.
ii. Its Quality and Taste satisfy most of the people.
iii. Based on Chocolate, Noodles, Baby Food, Pet Food, Coffee or much more most of the
people are satisfied with it.
iv. It can be seen that more percentage of respondents has purchase nestle products from
super market.
v. It can be observed that most of the respondents are satisfied by the packaging of chocolate
and milk products of nestle.
vi. It can be observed that most percentage of respondents are satisfied by the Nestle Coffee
as compare the BRU coffee.
vii. It can be observed that Teen Agers and Adults are consume more nestle product as
compare to other products.
viii. Most of the respondents believe that Nestle has been more successful.
ix. Most of the respondents satisfied with the prices of the Nestle Products.
x. It can be seen that more percentage of respondents has satisfied with nestle Yogurt,
Breakfast Cereal, powdered Milk or baby food as compare to other brands of this
products.
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Chapter-6
Conclusion
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Conclusion
The company is offering good quality of products, which is reflected on the satisfaction of the
customer.
Majority of the customer are satisfied with the packaging design of the products.
Nestle brand also work on the market schemes to increase our market share in the India.
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Chapter-5
Recommendations
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Most of the respondents are of the opinion that Nestle should improve its brand image,
launch new products schemes and improve quality to increase its market share.
A significant amount of respondents also give importance to concentration on distribution
and having advertising appeal and message for the same.
The overall effectiveness of the Cadbury products has been rated higher than that of
Nestle products. So Nestle launch chocolate products to compete the products of
Cadbury.
Nestle also increase out Supply to complete the demand of the consumers. That step
helps the company to stop their customers from shifting from their brand to another
brand.
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