Submitted ByNeha Katyal- 2009132 Karan Vyas- 2009159 Nishant Sharma- 2009170 Prachir Gupta- 2009185

Section-

!ar"etin# Pro$ect - 2 -

Contents
Executive Summary Acknowledgements History of estle "ilk #roducts and utrition %ntro&uction 'nalysis o( )P*s o( this +i,ision Beverages %ntro&uction 'nalysis o( )P*s o( this +i,ision #re'ared (is)es and Cooking Aids %ntro&uction 'nalysis o( )P*s o( this +i,ision C)ocolates , Confectionery %ntro&uction 'nalysis o( )P*s o( this se#ment Conclusions , S-./ Analysis 0eferences 3 4 ! $ 7 10 %& 19 21 *+ 30 31 3$ 37 )2 4+ !%

!ar"etin# Pro$ect - 3 -

Executive Summary
-ur pro$ect .as aime& at stu&yin# the mar"etin# mi/ o( pro&ucts mar"ete& 0y Nestl1 %n&ia there 0y un&erstan&in# the concept o( )P*s 0etter2 %t &etails ho. Nestle has mar"ete& its pro&uct in %n&ia2 Nestl1 %n&ia has &i,i&e& its pro&uct port(olio into (our &i((erent se#ments3 namely!il" Pro&ucts an& Nutrition3 hocolates an& on(ectionery3 4e,era#es3 an& !a##i 5noo&les3 soups an& "etchups62 Separate mar"etin# mi/es ha,e 0een &e,elope& (or these (our &i((erent se#ments2 7he pricin#3 promotion techni8ues use& an& place o( mar"etin# an& o( course the pro&uct o( one se#ment are ,ery &i((erent (rom pro&ucts o( another se#ment2 7here(ore3 .e also &eci&e& to &i,i&e our pro$ect co,era#e into (our &i((erent sections to co,er the se#ments separately2 4esi&es this 'part (rom the secon&ary research (rom ne.spapers3 $ournals an& the inter-net3 .e ha,e interacte& .ith some o((icials concerne& .ith these thin#s3 present at Nestl1 %n&ia3 Gur#aon2 'll this has helpe& us in our e/tensi,e stu&y o( the mar"etin# mi/ o( ,arious Nestl1 %n&ia pro&ucts2

!ar"etin# Pro$ect - ) -

Acknowledgements
9e .oul& li"e to put our than"(ulness across to all those .ho ha,e put in &irect or in&irect har& .or" to.ar&s the success(ul completion o( this pro$ect2 :irst ; (oremost3 .e .oul& li"e to than" our teacher an& mentor Pro(2 <2 Kam0le (or his a0le &irection an& mar"etin# pro(iciency &e,oi& o( .hich this pro$ect .oul& ha,e ne,er concretise&2 9e are also immensely #rate(ul to the o((icials an& pro&uct mana#ers at Nestl1 %n&ia3 Gur#aon2 +r2 S2N2 4hat <yan :ernan&es <ohit +o#ra <ashmi Gupta =imanshu !an#li" :oo& <e#ulatory !ana#er 4ran& :ranchise !ana#er !ana#er3 !il" 'n& Nutrition !ana#er3 !a##i ommunications !ana#er

' special than"s to Su&ip 4an&yopa&hyay 5 reati,e onsultant63 .ho is han&lin# the a&,ertisin# (or !il" Pro&ucts an& Nutrition &i,ision o( Nestle %n&ia3 on 0ehal( o( -#il,y ; !ather2 's a (inal point3 .e .oul& li"e to than"3 >%nstitute o( !ana#ement 7echnolo#y3 Na#pur? (or pro,i&in# us the pe&estal to &o this pro$ect2 Neha Katyal Karan Vyas Nishant Sharma Prachir Gupta 2009132 2009159 2009170 2009185

!ar"etin# Pro$ect - 5 -

History of estl1
Nestl1 S2'2 is a multinational pac"a#e& (oo& company (oun&e& an& hea&8uartere& in Ve,ey3 S.it@erlan&3 an& liste& on the S9A S.iss B/chan#e .ith a turno,er o( o,er 87 0illion S.iss (rancs2 %t ori#inate& in a 1905 mer#er o( the 'n#lo-S.iss !il" ompany (or mil" pro&ucts esta0lishe& in 18CC 0y the Pa#e 4rothers in ham3 S.it@erlan&3 an& the :arine Dact1e =enri Nestl1 ompany set up in 18CC 0y =enri Nestl1 to pro,i&e an in(ant (oo& pro&uct2 7he t.o .orl& .ars 0oth a((ecte& #ro.thE &urin# the (irst3 &rie& mil" .as .i&ely use& 0ut the secon& .ar cause& pro(its to &rop 0y aroun& 70F2 =o.e,er3 sales o( the instant co((ee Nesca(1 .ere 0ooste& 0y the GS military2 '(ter the .ars3 #ro.th .as stimulate& 0y ac8uisitions e/pan&in# its ran#e an& ta"in# control o( se,eral .ell "no.n 0ran&s3 so they no. inclu&e !a##i3 7homy an& Nesca(1 that are "no.n #lo0ally2 %t is the .orl&Hs lar#est (oo& company3 .ith Kra(t :oo&s 0ein# secon&2

Nestl1 %n&ia is a su0si&iary o( Nestl1 S2'2 Nestl1 %n&ia manu(actures pro&ucts o( truly international 8uality un&er internationally (amous 0ran& names such as Nesca(13 !a##i3 <ice !ania3 !il"y0ar3 !ilo3 Kit Kat3 !unch3 4ar--ne3 !il"mai& an& Nestea2

!ar"etin# Pro$ect - C -

!ar"etin# Pro$ect - 7 -

"ilk #roducts and utrition

Nestl1 %n&ia has a .i&e port(olio (or !il" Pro&ucts an& Nutrition2 %t inclu&es-

Nestle Ceramel Daily Whitener Nestle Everyday Ghee Probiotic Dahi Nestle Milkmaid Nestle Fr it N Dahi

Nestle Everyday Nestle B-Activ Nestle Set Dahi Nestle !eera "aita

Nestl1 has a ,ery clear harter o( ethics an& responsi0le 0eha,iour in sellin# in(ant nutrition pro&ucts2 Nestl1 %n&ia (ollo.s this harter an& also complies .ith 7he %n(ant !il" Su0stitutes3 :ee&in# 4ottles an& %n(ant :oo&s 5<e#ulation o( Pro&uction3 Supply an& +istri0ution6 'ct3 1992 that #ui&es the sale o( in(ant nutrition pro&ucts in %n&ia2 Nestl India does not advertise its Infant Nutrition products.

ES/23 CE0E"EA2
%t is (or chil&ren o,er 2 years o( a#e3 to pro,i&e them .ith NG7<%S='K7% - a nutrient &ense (ormula that has the ri#ht 8uality an& 8uantity o( "ey nutrients that meet at least 20F o( your chil&Hs &aily nutrient nee&s in e,ery ser,e2 %t is easy to prepare an& ta"es only 3 minutes to coo"2 NBS7DI B<B!B'D .ith JNutrisha"tiH 0ene(its (rom the e/tensi,e <esearch an& +e,elopment e((orts an& e/pertise o( the Nestl1 Group2 NBS7DI B<B!B'D 9heat +aliya contains the #oo&ness o( .heat .ith the a&&e& 0ene(its o( Vitamins an& !inerals (rom JNutrisha"tiH2

!ar"etin# Pro$ect - 8 -

NBS7DI B<B!B'D !ulti #rain +aliya contains rice an& ra#i apart (rom .heat .ith the a&&e& 0ene(its o( Vitamins an& !inerals (rom JNutrisha"tiH2 NBS7DI B<B!B'D is a,aila0le in select outlets in the mar"ets in Bast an& South %n&ia2

ES/23 E4E05(A5 (A605 -H6/E E0

%t is a creamy +airy 9hitener3 .hich is specially ma&e to a&& a rich3 smooth taste to your tea2 NBS7DI BVB<K+'K +airy 9hitener .as launche& in %n&ia in 198C an& this inno,ati,e pro&uct create& a separate cate#ory o( +airy 9hiteners in %n&ia

ES/2E E4E05(A5 #70E 8HEE

%t is 100F Shu&h LpureM Ghee .hich is untouche& 0y han& an& hy#ienically pac"e&2

ES/23 C70(S
%t is 100F (resh an& natural3 $ust li"e homema&e2 %t is ma&e (rom hi#h 8uality pasteurise& tone& mil"2 7he ultures in NBS7DI ur&s are #oo& (or &i#estion an& (or a healthy3 acti,e li(e2 NBS7DI ur&s is a,aila0le in hennai an& 4an#lore2

ES/23 "629"A6(
%t is Partly S"imme& S.eetene& on&ense& !il"2 NBS7DI !%DK!'%+ is a ,ersatile pro&uct an& e/cellent as a &essert in#re&ient2 Dip-smac"in# &esserts can 0e .hippe& up in the shortest possi0le time2 NBS7DI !%DK!'%+ is a #lo0ally reco#ni@e& an& popular 0ran& o( Nestl12 %t has 0een a,aila0le in %n&ia e,er since the ompany (irst starte& importin# an& sellin# its pro&ucts o,er 90 years a#o2

ES/23 SE/ (AH6

%t is 100F :resh an& Natural an& is ma&e (rom (resh3 hi#h 8uality pasteurise& tone& mil"2 %t has all the #oo&ness o( natural alcium an& the ultures use& in Nestl1 Set +ahi help impro,e &i#estion2 NBS7DI Set +ahi is a,aila0le in all the metros2

ES/23 :076/ ; (AH6

%t is a &elicious inno,ation that com0ines the #oo&ness o( +ahi an& the nutrition an& taste o( real (ruits2

!ar"etin# Pro$ect - 9 -

NBS7DI :ruit HN +ahi is a,aila0le in all metros in !an#o an& Stra.0erry ,ariants2

ES/23 <EE0A 0A6/A

%t is &elicious an& has all the #oo&ness o( +ahi an& Neera2 %t is ma&e (rom &ou0le tone& mil" an& has a lo. (at content2 NBS7DI Neera <aita is also e/tremely ,ersatile2 Kou can use it as the 0ase to prepare your o.n (a,orite <aita3 simply 0y a&&in# ,e#eta0les3 (ruits or spices o( your choice2NBS7DI Neera <aita is a,aila0le in +elhi2

ES/23 "629
Nestl1 has o,er 135 years o( &airy e/pertise an& NBS7DI !il" ensures hi#h 8uality an& sa(ety2 NBS7DI !il" #oes throu#h Gltra =eat 7reatment to pro,i&e 0acteria-(ree mil" to its consumers2 7he pro&uct also #oes throu#h strin#ent 8uality chec"s an& can 0e consume& strai#ht (rom the pac" as no 0oilin# is re8uire&2 7he seale& pac" o( NBS7DI !il" has a shel( li(e o( 120 &ays .ithout re(ri#eration2 =o.e,er3 once opene&3 it must 0e re(ri#erate&2 7he pac"a#in# is tamper-proo(2 NBS7DI !il" is a,aila0le in all metros2

ES/23 S26" "629

Nestl1 has o,er 135 years o( &airy e/pertise an& NBS7DI Slim !il" ensures hi#h 8uality an& sa(ety2 NBS7DI Slim !il" has a (at content o( less than 025F2 NBS7DI Slim !il" #oes throu#h Gltra =eat 7reatment to pro,i&e 0acteria-(ree mil" to its consumers2 7he pro&uct also #oes throu#h strin#ent 8uality chec"s an& can 0e consume& strai#ht (rom the pac" as no 0oilin# is re8uire&2 7he seale& pac" o( NBS7DI Slim !il" has a shel( li(e o( 120 &ays .ithout re(ri#eration2 =o.e,er3 once opene&3 it must 0e re(ri#erate&2 7he pac"a#in# is tamper-e,i&ent2 NBS7DI Slim !il" is a,aila0le in all metros2

!ar"etin# Pro$ect - 10 -

Analysis of t)e 4#s for t)is (ivision

Product Mix
>The essence of all nestle milk products, particularly those targeted towards infants remain same, irrespective of all the cultural nuances. So, our strategy remains more or less consistent in India as compared to rest of the world?3 remar"s <ohit +o#ra3 4ran& !ana#er3 !il" an& Nutrients3 Nestle2 Nestle is the .orl&*s lar#est &airy3 .ith an annual turno,er o( more than G2S2 80illionO2 So they un&erstan& the &airy 0usiness 0etter than anyone else2 9hen they operate in %n&ia3 the (ocus is to put to use their ,ast e/pertise an& "no.le&#e in the &i,ersi(ie& &omestic mar"et2 =o.e,er3 the tas" is not uphill 0ecause their pro&ucts a&&ress all 0asic nee&s o( human 0ein#s2 >There is a lot of science that goes while we make our products ?3 e/plains !r2 +o#ra2 7his is particularly 0ecause o( the sensiti,ity o( the matter in,ol,e& in manu(acturin# an& &eli,erin# perisha0le consumption pro&ucts2 'ny mar#in o( error coul& spell &oom (or the company*s (ortunes2 So there comes a lot o( responsi0ility .hile &ealin# in such pro&ucts2 'nother sensitive area of concern is t)at a ma=or c)unk of its 'roducts cater to infants and due to 'erceived risks involved 5li"e un.arrante& o0$ections 0y certain se#ments o( the pu0lic3 ris" o( &epreciation in 8uality &ue to stora#e pro0lems or transportation pro0lems3 etc263 the challen#e is enormous (or the company2 estle reali>es t)e need to constantly add new 'roducts to its 'ortfolios to cater to different market segments? /)is is in tune wit) a natural tendency to constantly innovate? -,er a perio& o( time3 .e ha,e seen ne. pro&ucts 0ein# a&&e& to its list2 9hile pro&ucts li"e ceramel an& mil"mai& &oin# .ell3 in recent times nestle has come up .ith pro&ucts li"e Dassi3 (ruit n &ahi3 etc to cater unex'lored segments of 6ndian market? 7he e/ample o( nestle slim mil" is a classic3 on ho. it .as positione& an& .hich set 0enchmar"s (or others to (ollo.2 7he pac" o( Nestle Slim !il" is 0ein# positione& as &rin" (or (itness an& it is mentione& that it is 9925 per cent (at (ree2 'part (rom con,eyin# that calories are "ept in chec"3 the conclu&in# messa#e rein(orces the pac"a#e& mil" health

!ar"etin# Pro$ect - 11 -

proposition 0y sayin#E PSo3 &onHt thin" t.ice 0e(ore ma"in# the s.itch to a healthier alternati,e2P 4rea"in# the myth o( pac"a#e& mil" 5or (or that matter mil" on the .hole6 0ein# only meant (or 0ein# Hstron#H or to put on .ei#ht3 the a#ency speci(ically con,eys the messa#e o( 0ein# slim an& trim throu#h mil"2 -;! creati,e consultant3 Su&ip 4an&yopa&hyay sai&3 P7he 0rie( .as to creati,e a.areness a0out the 0ran&2 7here seems to 0e a ten&ency o( i#norin# mil" (or puttin# on .ei#ht an& also mil" in tetra-pac"s or pac"ets is 0ein# consi&ere& as an arti(icial one2 7here is also emer#ence o( lo.-calorie s.eeteners an& other pro&ucts2 So the .hole i&ea is to rein(orce mil" as an option (or pro,i&in# a re(reshin# nourishin# 0oost2P 'nother interestin# e/ample is o( ,ariants li"e nestle :ruit n !il" /)e com'any worked on t)e ;/asty b)i )ealt)y b)i; 'ro'osition to gain acce'tance among bot) kids and mot)ers? ' relati,ely ne. a&&ition has 0een lassi3 a classical case o( a&aptin# to the local %n&ian (la,or2 7he company 0e#an the test mar"etin# o( s.eet lassi in +elhi3 =aryana an& Pun$a02 P-it) c)anging lifestyles@ t)ere is a growing need for 'roducts t)at are convenient@ tasty and of )ig) Auality2 %n or&er to cater to such emer#in# nee&s3 Nestl1 s.eet lassi has 0een &e,elope& as a rea&y-to-&rin" pro&uct that pro,i&es re(reshment3 nutrition an& .ellness3P the hairman an& !ana#in# +irector3 !r arlo !2 +onati3 sai& in a statement here2 =e sai& the pro&uct has 0een &e,elope& a(ter e/tensi,e testin# (or consumer pre(erences an& tra&itional styles o( preparation2 %t is a,aila0le in 200-ml pac"s (or <s 122 9ith 0i# players li"e 'mul an& !other +iary still rulin# the roosts3 > tetra pack milk is a good way to have a major slice of market share and go for penetration ?3 su##ests !r2 +o#ra2 Decto#en is price& h liye i#her 0ut it has more ,alue a&&itions3 the pro&uct has 0een 8uite a hit .ith those .ho reali@e that steep prices can $usti(y 8uality an& #oo& health ? /)is reflects a 'ricing strategy in w)ic) com'any is c)arging )ig)er 'rices in return for claiming su'erior value-additions?

!ar"etin# Pro$ect - 12 -

B((orts are un&er.ay to penetrate pro&ucts li"e "ilkmaid an& -)itener 0ut people*s stereotype perceptions a0out them are still ma$or o0stacles2 %n the Q!il" Pro&ucts an& NutritionH cate#ory3 the ompany continues to (ocus on intro&ucin# pro&ucts that le,era#e the Nestle GroupHs Kno.-ho. an& <esearch an& +e,elopment competence2 +urin# 20033 the ompany ha& launche& the NBS7DB +BVBD-P!BN7'D NG7<%7%-N PD'N an& B<BD' 123 .heat 0ase& .eanin# (oo&3 .hich is 0ac"e& 0y continuous an& on#oin# research at the .orl&.i&e <esearch an& +e,elopment (acilities o( the Nestle Group2 7his .as a ma$or 0rea"throu#h in in(ant (ee&in#2 +urin# the thir& 8uarter o( 200)3 the ompany has also launche& NBS7G!1233 .hich is a rice 0ase& .eanin# (oo&3 to ensure the ri#ht eatin# e/perience at the ri#ht sta#e o( &e,elopment (or the in(ant2 NBS7G! 123 also incorporates Nestle GroupHs uni8ue R-line technolo#y that ma"es the pro&uct easy (or the in(ant to &i#est2 Gsin# its "no.le&#e o( in(ant nutrition an& local nee&s3 the ompany intro&uce& NBS7G! <a#i in the Southern mar"et an& D' 7-GBN 3 in select #eo#raphies3 to pro,i&e proper nutrition at the appropriate sta#e2 'lso3 since %n&ia has a hi#h inci&ence o( lo. 0irth .ei#ht in(antsH3 .ho re8uire speciali@e& nutrition3 the ompany utili@e& its access to the technolo#y (rom the Nestle Group to intro&uce P<B-D' 7-GBN2 /o sum u'3 Nestl1*s Pro&uct !i/ in milk and nutrients category3 the company has 0een continuin# to a&& ne. pro&ucts to its port(olio3 .hich are in tune .ith the local (la,our3 an& is li"ely to &o so2 'n& .ith its ,alue a&&itions an& pro,en e/pertise3 it continues in its en&ea,our to 0ecome the mar"et lea&er in other cate#ories2 >About five years back@ 6ndia was 'redominantly a sellerBs market but now t)ere )as been a marked difference in t)e consumers3 'syc)ologically and be)aviourally? /)is awakening of 6ndian consumers brings great c)allenges to us?3 !r2 +o#ra o0ser,es2

!ar"etin# Pro$ect - 13 -

#rice "ix
7he hi#h costs o( ra. materials an& processin# are a cause (or concern2 =o.e,er3 7he ompany (eels that ra. material cost in(lation coul& soon 0e 0rou#ht un&er control2 7he mana#ement is implementin# pro#rams to control "ey ra. materials costs2 7he company recor&e& ,ery lo. sales #ro.th o( 327 per cent last 8uarter as sales .ere 0y a non-recurrin# (actor o( insu((icient a,aila0ility o( mil" soli&s3 .hich restricte& pro&uction2 +ue to hi#h prices o( soli& mil"3 the use o( the mil" .as allocate& to the most pro(ita0le 0usiness in its pro&uct2 'lso sales to canteen store &epartments 5army sales6 an& #hee sales .ere stoppe& &urin# the perio&3 impactin# sales #ro.th2 7his shorta#e has no. 0een resol,e& an& is unli"ely to recur in 2=3 the company sai&2 :or the e/port mar"et3 there has 0een a &ecline in sales ,alue as there is a mo,ement (rom retail pac"s to 0ul" pac"s2 -,erall3 in mil"s3 cur& an& po.&ers3 the pro&ucts are price& hi#her2 4ut t)e to' brass of t)e com'any =ustify )ig) 'rices on account of Csu'erior AualityD? 6n milk segment@ nestle is relatively dearer t)an brands like Amul and "ot)er (iary but "r? (ogra ex'lains t)at t)e coo'eratives generally o'erate on a no'rofit margins so t)ey can afford to lower t)e 'rices2 =e (eels that )ig) 'rices are more t)an com'ensated by greater value additions? =e cites the e/ample o( 2actogen3 .hich althou#h e/pensi,e3 is still a hit .ith rural mar"et 0ecause o( #reater 0ene(its attache&2 >Someho.3 consumers ha,e to ma"e a tra&e-o(( 0et.een prices an& 8uality2? -,erall ne.comers li"e :ruit +ahi an& Slim !il" are (airly char#e&3 consumers (eel2 /)us@ estl1Bs 'ricing strategy is little influenced by com'etitive moves but more by 'romising customers more value additions2

!ar"etin# Pro$ect - 1) -

#lace "ix
/)e com'any )as been very t)oug)tful about its geogra')ic segmentation2 7here are many instances o( ho. some pro&ucts are mar"ete& only in speci(ic areas2 NBS7DI B<B!B'D is a,aila0le in select outlets in the mar"ets in Bast an& South %n&ia 0ecause in other parts o( the country3 there are still stereotype con,entions a0out the pro&uct2 NBS7DI ur&s is a,aila0le in hennai an& 4an#alore 0ecause o( relati,ely hi#hanticipate& pro(ita0ility in these re#ions2 NBS7DI Set +ahi3 NBS7DB !%DK an& SD%! !%DK is a,aila0le in all the metros an& NBS7DI Neera <aita is a,aila0le in +elhi (or similar reasons2 Supply hain 9ith increasin# mar"et penetration an& lar#er co,era#e o( #eo#raphies3 the ompany has initiate& e((orts to ensure that the supply chain an& &istri0ution structure remains e((icient2 %n or&er to stren#then these e((orts to impro,e the &istri0ution o( Stoc" Keepin# Gnits 5SKGHs6 across retail outlets an& to impro,e the 8uality o( sales an& consumer satis(action3 the ompany has implemente& .e0 relate& processes to increase e((iciencies in supply chain an& or&er plannin#2 +urin# the year3 the ompany also initiate& the rationali@ation o( stoc"s in or&er to increase the (reshness o( stoc"s a,aila0le to the consumer2 7hese initiati,es are necessary to maintain the hi#h 8uality that Nestle Guarantees the consumer2 %n a&&ition to these3 there are e((orts on to create more a.areness amon# .holesalers an& retailers to create stora#e ,alue an& minimi@e loss o( 8uality or time2

!ar"etin# Pro$ect - 15 -

#romotion "ix
-,erall3 there has 0een a lot o( emphasis on pac"a#in#3 not only to sa(e#uar& pro&ucts3 0ut also to create a &istinct 0ran& entity2 estle 6ndia bagged t)e Best #ackage (esign Award and #ortfolio 0egistering Hig)est Sales 8rowt) Award at t)e second Annual 6ndian (airy Awards 'resented at t)e ational "ilk Seminar *EE3 )eld at 8oa on %F and %& <anuary? =oste& 0y 7etra Pa" %n&ia3 the (ourth National !il" Seminar on Strate#ic !ar"etin#3 or#ani@e& 0y the !inistry o( :oo& Processin# an& !inistry o( '#riculture .as (ocuse& aroun& Time to Act !ere " Now2 Presentations an& panel &iscussions .ere hel& to spotli#ht on 0usiness opportunities3 perspecti,es o( international an& national spea"ers (rom .ithin the &airy in&ustry an& outsi&e hi#hli#hte& the areas o( success(ul #o,ernment-in&ustry cooperation3 0usiness strate#y3 inno,atin# (or cate#ory con,ersion an& up#ra&ation3 premium 0ran&in#3 ne. channel &e,elopment3 an& ,alue 0ran&in#2 Gsin# the health plat(orm as a proposition (or a mil" 0ran& is not an alien concept2 4ut .gilvy , "at)er (el)i has use& the same GSP &i((erently in its new ad cam'aign for estl1Bs :ruit n "ilk2 7he a#ency recently release& t.o tele,ision commercials (or the ne. 0ran&2 !others catchin# an& correctin# their chil&ren .hen they are up to mischie( is 8uite common2 -( course "i&s 0ein# "i&s lo,e ha,in# (un e,en i( it 0or&ers on .hat their mothers ha,e (or0i&&en them to &o2 !oms "no. this an& ha,e a ha0it o( "eepin# ta0s on their little ones2 Gsin# this mother-chil& peculiarity as a "ey3 the a#ency .or"e& on the H7asty 0hi healthy 0hiH proposition to #ain acceptance amon# 0oth "i&s an& mothers2 Says -;! associate creati,e &irector Su&ip 4an&yopa&hyay3 >7here are these &o*s san& &on*ts (or "i&s2 !others ha,e their eyes on "i&s2 9e ha,e ta"en situations3 .here "i&s normally #et cau#ht2 4ut .hen mothers (in& chil&ren sheepishly ha,in# Nestle :ruit n !il"3 they &on*t (in& it to 0e a pro0lem2 %nstea&3 they ha,e an e/pression o( acceptance (or this2? 7he (irst commercial has t.o mothers loo"in# (or their chil&ren2 7hey anticipate them to 0e on the terrace an& up to - as you #uesse& ri#ht - some mischie(2 's their "i&s see them approachin#3 they hi&e somethin#2 '(ter a (air &eal o( ur#in#3 they re,eal to their mothers .hat they are concealin#E a pac" o( Nestl1*s ne. rea&y to &rin" mil" 0ran&2

!ar"etin# Pro$ect - 1C -

'n& their mothers3 .ith a si#h o( relie(3 say this is allo.e&2 7he (rame then cuts to Nestl1*s ne. pro&uct an& positionin# statement2 7he secon& commercial sho.s an in-char#e o( a 0oar&in# school catchin# stu&ents in a similar situation .ith a torch2 'n& the "i&s (ace a similar outcome .ith their hea&master con&onin# their sippin# on their :ruit n !il"2 >7he campai#n is (or the 8-15 a#e-#roup2 9e ha,e trie& not only a (resh an#le (rom the taste an& health proposition 0ut also (rom the ne. pro&uct launch perspecti,e2 9e came up .ith this3 .hen mothers says Hyeh to allo.e& hai2H 7his has 0een con,eye& throu#h the surprise element2 Not only to catch "i&s 0ut also to empathise .ith mothers3? says 4an&yopa&hyay2 7he commercials ha,e 0een &irecte& 0y <e& %ce*s Koushi" Sar"ar2 7he campai#n has 0een e/ten&e& to out&oor campai#n has rolle& out nationally2 .ne ma=or issue is t)at estl1 6ndia does not advertise itBs 6nfant 'roducts due to legal obligations2 So, quality considerations drive sales volumes in these segments. Nestle %n&ia launche& a ne. print campai#n (or its pac"a#e& mil" 0ran& estle Slim "ilk2 reate& 0y .gilvy , "at)er3 the campai#n (ocuse& on propa#atin# mil" as a proposition (or stayin# healthy an& trim .ith a stylish presentation o( the pac" ami&st a yello. 0ac"#roun&2 7he campai#n3 release& mainly in ma#a@ines3 primarily tar#ete& the socio-economic class '2 4rea"in# the myth o( pac"a#e& mil" 5or (or that matter mil" on the .hole6 0ein# only meant (or 0ein# Hstron#H or to put on .ei#ht3 the a#ency speci(ically con,eys the messa#e o( 0ein# slim an& trim throu#h mil"2 -;! creati,e consultant3 Su&ip 4an&yopa&hyay sai&3 P7he 0rie( .as to creati,e a.areness a0out the 0ran&2 7here seems to 0e a ten&ency o( i#norin# mil" (or puttin# on .ei#ht an& also mil" in tetra-pac"s or pac"ets is 0ein# consi&ere& as an arti(icial one2 7here is also emer#ence o( lo.-calorie s.eeteners an& other pro&ucts2 So the .hole i&ea is to rein(orce mil" as an option (or pro,i&in# a re(reshin# nourishin# 0oost2P /)e 'ack of estle Slim "ilk is being 'ositioned as drink for fitness and it is mentioned t)at it is ++?! 'er cent fat free2 'part (rom con,eyin# that calories are "ept in chec"3 the conclu&in# messa#e rein(orces the pac"a#e& mil" health proposition 0y sayin#E PSo3 &onHt thin" t.ice 0e(ore ma"in# the s.itch to a healthier alternati,e2P P/)e w)ole 'resentation revolves around first glance@ w)ic) s)ould immediately strike t)e slim 'ro'osition? /)at;s w)y t)e 'ack is s)own to be curved G'ortraying a body wit) slim waistH in t)e centre? 6nstead of using blue colour@ we )ave deliberately c)osen yellow colour in t)e background@I a&&s 4an&yopa&hyay2 utrition

!ar"etin# Pro$ect - 17 -

'part (rom the print campai#n3 the a#ency also .or"e& on outdoor advertising?2 Nestle3 .hich ha& launche& rea&y-to-&rin" mil" mar"et .ith its :ruit n !il" 0ran& in man#o an& stra.0erry (la,ours earlier3 is sourcin# its Slim !il" an& :ruit n !il" (rom +ynami/ +airy %n&ustries2 >%n a&&ition3 other promotional tools li"e consumer contact pro#rams3 e/chan#es .ith me&ical personnel an& a lot o( #roun& .or" is in,ol,e&?3 in(orms !r2 +o#ra2 Earlier@ estle only talked to kids but t)ere is an ;inclusive audience; t)at is also being s'oken to@ t)ese days and t)at is t)e mot)ers@ as at t)e end of t)e day it is t)e mot)ers t)at are t)e buyers of t)e 'roducts? So t)e brand t)oug) s'ecifically targeted at kids ;)as; to s'eak to t)e mot)er too@I says one industry analyst?

Against Com'etition
Perhaps the #reatest challen#e to Nestle comes (rom cooperati,es li"e 'mul an& !other +iary2 Gn(ortunately (or Nestle3 it has 0een una0le to 0e at the top o( the la&&er3 .ith these &omestic players still rulin# the roost2 !r2 +o#ra ac"no.le&#e& this an& a&mitte& that 0oth these cooperati,es ha,e e/tremely e((icient operations an& a ,ery #oo& mar"etin# set-up2 =o.e,er he points out to the (act that since t)ese coo'eratives generally o'erate on lowJno 'rofit margins@ t)ey en=oy )ig)er sales volumes due to 'rice slas)es? 'nother interestin# point he raise& .as that t)ese coo'eratives )ave been clever enoug) to mani'ulate food laws in t)e country@ w)ic) 'uts t)em in an advantageous 'osition? %n this port(olio3 Nestle (aces stiff com'etition in "ilk #owders &ue to availability of com'etitive and economical substitutes as illustrate& 0elo.

MILK POWDER
Sr? 012 022 052 0C2 072 082 092 estleBs #roduct !il" !ai& Nespre Dacto@ B,ery&ay erelac Neslam D2P2: 6ndian Substitute 'mul !il"care 'mulya Sapana %n&ana 222222 222222

Perhaps3 a ma$or (actor3 .hich is a roa&0loc" to the company*s success3 has 0een the foreigner tag. 'mon# certain #roups3 nestle is still some >foreign cor'oration w)ic) is )ere to take away 6ndian wealt)D?

!ar"etin# Pro$ect - 18 -

!ar"etin# Pro$ect - 19 -

estl1 Beverages
7he port(olio o( 0e,era#es se#ment o( Nestl1 is not so 0roa&3 still so stron# as to ma"e its presence important (or Nestl1*s o,erall success2 %t inclu&es some popular 0ran&s 0y Nestl1%t*s not the num0er o( 0ran&s in 0e,era#es se#ment o( Nestl1 that

Nesca#$ Classic Nescaf Sunrise Nestl Milo

ma"es it attracti,e3 0ut the mar"et share that they possess2 4e,era#es account (or 38F o( the companyHs turno,er an& Nestl1 is a mar"et lea&er in instant co((ee .ith its Nesca(1 an& Sunrise 0ran&s2 Nestl1 !ilo also has a stron# presence in the mar"et2

!ar"etin# Pro$ect - 20 -

ESCA:3 C2ASS6C
%t is a 100F Pure %nstant o((ee2 %t has the unmista"a0le taste o( 100F pure co((ee an& is ma&e (rom care(ully selecte& co((ee 0eans pic"e& (rom the (inest plantations3 0len&e& an& roaste& to per(ection2 100F co((eeS100F pleasureS2 7he 0e#innin#s o( Nesca(1 can 0e trace& all the .ay 0ac" to 19303 .hen the 4ra@ilian #o,ernment (irst approache& Nestl12 %n 19373 a(ter ei#ht years o( .or"3 scientists at Nestl1Hs research la0oratory in Ve,ey per(ecte& a po.&ere& co((ee pro&uct that .as commercially intro&uce& in S.it@erlan&3 on 'pril 1st3 1938 un&er the 0ran& name Nesca(12 Nesca(1 - a com0ination o( Nestl1 an& ca(12 %t 0ecame so popular &urin# 9orl& 9ar %% that (or one (ull year the entire output o( the Nesca(1 plant in the Gnite& States 5more than 1 million cases6 .as reser,e& (or military use only2 4y the 1950s3 co((ee ha& 0ecome the 0e,era#e o( choice (or teena#ers3 .ho .ere (loc"in# to co((ee houses to hear the ne. roc" HnH roll music2 Since then3 Nesca(1 has 0ecome one o( the .orl&Hs 0est-"no.n 0ran&s2 9ith more than 33000 cups consume& e,ery secon&3 Nesca(1 is 0y (ar the .orl&Hs lea&in# co((ee 0ran&2 %n %n&ia3 Nesca(1 .as intro&uce& in 19C)2

ESCA:3 S7 06SE
%t is an %nstant o((ee- hicory mi/ture ma&e (rom 0len&s o( o((ee 70F an& hicory 30F2 o((ee an& hicory2

7he secret o( #reat taste lies in the 0len&2 NBS ':I SGN<%SB P<B!%G! is a 0len& containin# plantation 0eans to #i,e you an incompara0le e/perience2 7his uni8ue 0len& o( o((ee ; hicory .as intro&uce& in %n&ian mar"et in 1980s .ith ,arious ,ariations- Nesca(1 Sunrise Premium3 Sunrise B/tra3 etc2 sunrise B/tra has more hicory in it 5)0F62 7hus it tastes e,en stron#er2

ES/23 "62.
%t is a contemporary3 0ro.n health 0e,era#e .ith a &elicious chocolaty taste2 1 in C cups o( chocolate 0e,era#e consume& in the .orl& to&ay is NBS7DI !%D-2 %n %n&ia Nestl1 !ilo .as intro&uce& in 199C2 %t*s a com0ination o( health an& taste2 %t has essentials ,itamins also an& it #i,es you e/tra .innin# ener#y2 No. it is a,aila0le in &i((erent tastes also2 Datest in the series is the 4a&am Sha"ti (la,our2

!ar"etin# Pro$ect - 21 -

Analysis of t)e 4#s of t)is (ivision

Pro&uct !i/
>To #e successful in this consumer era, a company needs to do anything and everything as per the wants of the consumers2? 7his much e,i&ent (act pro,i&es the 0asis (or the success mantra o( nestl12 9hat sets Nestl1 apart (rom its competitors is its a0ility to rein,ent an& inno,ate2 7he 0e,era#es se#ment o( nestl1 has al.ays (ollo.e& the same strate#y3 i2e23 innovation and renovation2 %t has con&ucte& time-to-time sur,eys to (in& out .hat the potential consumers &esire an& e/pect (rom them an& then3 (rom a&&in# those (eatures to repositionin# an& reintro&ucin#3 it has le(t no stone unturne& to satis(y its consumers2 7he B/ample o( Nesca(1 Science )as always been a constant in'ut for nestl1? 0ig)t from t)e invention of escaf1 to t)e regular im'rovements@ researc) , develo'ment )as been t)e basis of success? 4e(ore the in,ention o( Nesca(1 in 19383 the nee& (or a solu0le co((ee .as (elt amon# the consumers2 7his nee& .as reali@e& 0y nestl1 ; a(ter ei#ht years o( research Nesca(1 .as (inally in,ente&2 7his .as not the en&2 -,ertime3 there ha,e 0een so many inno,ations an& impro,ements2 :rom ma"in# Nesca(1 0y usin# 100F pure roast co((ee 0eans to the 0irth o( the #ranule in19C7 to capture more aroma an& (la,ours (rom e,ery sin#le co((ee 0ean3 to the *(ull aroma* process .hich .as in,ente& to ma"e the uni8ue 8uality an& character o( Nesca(1 e,en 0etter in 199)2 /alking 'articularly about 6ndia@ from time-to-time@ surveys )ave been done to =udge t)e consumer wants? %ntro&uction o( ne. pro&ucts3 reno,ation3 an& repositionin#- e,erythin# has 0een &one accor&in#ly2 '(ter intro&uction o( Nesca(1 lassic in %n&ia in 19C)3 as the nee& .as (elt3 company came out .ith a mi/ture o( co((ee ; chicory3 Nesca(1 Sunrise2 Nestl1 has come out .ith ne. ,ariations o( its pro&ucts3 Nesca(1 Sunrise B/tra3 Nesca(1 3-in-1 rea&imi/3 to name a (e.2 7he ne. Nesca(1 3-in-1 co((ee rea&imi/ is actually a relaunch2 %ts pre,ious attempt to instant co((ee mi/ (i,e years a#o ha& come a cropper2 7o&ay Nesca(1 co((ees are a,aila0le to suit all tastes2 6n s)ort@ all its success is because of its strategy to make t)e 'roduct@ as t)e consumers want it to be? 6t is easily one of estl1Bs star 'erformers?

!ar"etin# Pro$ect - 22 -

7he B/ample o( Nestl1 !ilo %n %n&ia Nestl1 !ilo .as intro&uce& in 199C2 -it) its launc)@ nestl1 was faced wit) t)e c)allenge of 'resenting estl1 "ilo as a wort)y com'etitor in t)e 6ndian energy drink market t)at was dominated by Cadbury;s Bournvita and Smit)9line Beec)am;s Boost? So it .as important to 0rin# !ilo as somethin# &i((erent (rom others2 ' research campai#n .as launche& to analy@e consumer nee&s2 7he research (ollo.in# the campai#n re,eale& the nee& (or !ilo to 0e percei,e& as a &rin" .ith 2 stron# &eli,era0les- Bner#y an& 7aste2 7his .as $ust the 0e#innin#2 estl1 "ilo was so many times re'ositioned@ reintroduced in t)e market@ w)ic) clearly reveals t)e estl1Bs strategy for "ilo@ i?e?@ aggressive and alive? !ilo .as also relaunche& in +ec 20012 -n the other han&3 the company has 0een o((loa&in# pro&ucts too2 Nestl1 %n&ia .as in the process o( .ith&ra.in# its chocolate health &rin" 0ran& !ilo (rom southern mar"ets2 7he 0ran& &i& not stan& up to the companyHs e/pectations &urin# the last se,eral yearsT there .ere in&ications that it mi#ht 0e phase& out2 %n (act3 Nestl1 %n&ia ha& also 0e#un rationali@in# its pro&uct port(olio2 -nce a#ain in the near (uture3 "ilo is being relaunc)ed by re-energi>ing it wit) ;Badam S)akti;? 4oth e/amples clearly su##est the Nestl1*s pro&uct mi/ an& the secret 0ehin& its success2 7he pro&uct mi/ starte& 0e(ore the in,ention o( the pro&uct an& continue& .ithout any en&2 B,en to&ay the reno,ations are on2

!ar"etin# Pro$ect - 23 -

#rice "ix
7he secret 0ehin& the price mi/ o( Nestl1 is the scale o( pro&uction2 %n the 0e#innin#3 it may ha,e 0een thou#ht that the pro&ucts are 0ein# price& hi#her3 0ut as the mar"et se#ments increase& an& economies o( scale .ere reache&3 no one coul& complain a0out Nestl1*s prices at least in 0e,era#es2 Nestl1 has ta"en the %n&ian con&itions in min& .hile &eci&in# its price mi/2 %nitially .hen Nesca(1 .as launche&3 it .as consi&ere& 8uite e/pensi,e2 =o.e,er3 estl1 )as focused on ex'anding t)e domestic market s)are t)roug) 'rice cuts and 'roduct re'ositioning? %t is there(ore no surprise that to&ay Nestl1*s Nesca(1 &ominates the premium instant co((ee se#ment2 Nestl1 !ilo also $usti(ies its price2 %ts pac" o( 500-#ms price& at <s29C3 .hich can in no .ay 0e &issatis(yin# an& is compara0le .ith other 0ran&s2 'nother e/ample is o( Nestl1 3-in-1 rea&imi/3 .hich is price& at <s25 per sachet3 .hich is &e(initely $usti(ie& "eepin# the 0ene(its it #i,es in min&2 Nestl1 has so many outlets in %n&ia no. to compete .ith 4arista an& a(1 o((ee +ay2 7here is a clear &i((erence 0et.een the prices o( these co((ee shops an& Nestl12 Nestl1 is a .inner 0y a #reat mar#in2 9here3 these co((ee shops are a((or&a0le to a ,ery small section o( mar"et3 Nestl1 tar#ets at a (ar #reater mar"et se#ment in term o( its prices2 /o conclude@ one cannot )old grudges about 'rices of estl1 beverages? )as surely taken t)e s'ending ca'ability of t)e domestic market in view? estl1

#lace "ix
's re#ar&s the place3 they are a,aila0le on almost all the outlets that are sellin# such pro&ucts2 Nesca(1Hs GSP is its easy a,aila0ility2 -ne coul& (in& it in any &epartmental store 0i# or small2 %t is also a,aila0le at all small shops in an area2 Nestl1 has 0een usin# its ,ast &istri0ution net.or" to push into the mar"et its chocolate-an& co((ee (ormulation hoc a(1 an& :rappe 50oth un&er the Nesca(1 um0rella62 Easy availability is one of t)e factors for estl1 )aving a 44K s)are in t)e coffee market? '0out Sunrise3 !ilo3 or3 Nesca(1 3-in-13 all are easily a,aila0le at the shops near you2 9ith the openin# o( its o.n outlets to compete .ith co((ee shops3 the &istri0ution o( the 0e,era#e se#ment o( Nestl1 has 0ecome e,en stron#er2 7he location o( these outlets ma"e then e,en more important2 +istri0ution is &e(initely a stron# point (or Nestl1 0e,era#es2

!ar"etin# Pro$ect - 2) -

#romotion "ix
7he rise in competition has ma&e the promotion mi/ e,en more important2 ' company nee&s to sho. ho. its pro&ucts are &i((erent (rom .hat is 0ein# pro,i&e& 0y its competitors2 Nestl1 0e,era#es ha,e &one .ell in this re#ar& also2 :rom /4 advertisements to s'onsoring /4 'rogrammes@ events like "/4 5out) 6con of t)e 5ear *EE!and even movies like L9oi "il 8ayaB@ it )as done everyt)ing to woo t)e customers? 7he ase o( NBS ':I 7ill a (e. years a#o3 li(e .ith Nesca(1 .as e/otic2 Kou coul& en$oy the aroma o( the &ar" co((ee 0eans3 (eel the nip in the air3 o,ercome hur&les3 .in acclaim3 0on& .ith (rien&s an& peers .ith laptops3 as the catchy 9estern $in#le playe& in your min&2 <emem0er3 C/)e taste t)at gets you started u'???DM 7his .as ho. the Nesca(1 .as promote& in the 0e#innin#2 9hile tal"in# a0out the a&s3 lets loo" at an interestin# (actE DetHs .atch out the 7op 5 8uarters o( 20082 o((ee 0ran&s a&,ertise& on 7V &urin# the last three

7his ta0le is a proo( o( the a##ressi,e a&,ertisin# a&opte& 0y Nestl12

!ar"etin# Pro$ect - 25 -

.ne of t)e most memorable and 'o'ular cam'aigns of all times is t)e L.'en 7'B advertisement of estl1? -ne thin#3 the .orl& o,er3 .hich helps people to ta"e time out3 to listen to each other an& to open up is a cup o( co((ee2 P-pen GpP is the #lo0al campai#n (or Nesca(1 to cele0rate the part that co((ee plays in people*s li,es2 7o capture the enormous &i,ersity o( e/periences an& emotions associate& .ith co((ee &rin"in# the commercials .ere shot3 o,er se,eral months3 all o,er the .orl&2 'n& they .ill also 0e seen .orl&.i&e2 7he noticea0le &i((erence 0et.een Nesca(1Hs ol& campai#ns an& the latest arran#e& marria#e a&,ert 5an& also the earlier train ad@ featuring 4< 8aurav6 is the latterHs 0i& to (amiliarise itsel( to the %n&ian mi&&le class2 7his is e,i&ent (rom the su0$ect o( the story3 .hich is spun aroun& the most common o( all cultural aspects o( the %n&ian society U an arran#e& marria#e2 %tHs also apparent that Nestl1 an& !c ann-Bric"sonHs choice o( prota#onists U actors Kashish 5'amna Shari((6 an& Su$al 5<a$ee, Khan&el.al6 (rom S7'< PlusH popular serial HKahin 7o =o#aH U .as &ri,en 0y the sin#le o0$ecti,e o( ma"in# the 0ran& popular .ith the masses2 7he serial is amon# the top (our serials on S7'< an& e,en a(ter a run o( one year3 still en$oys a 7V< a0o,e 102 Clearly@ wit) t)is 'articular ad@ bond wit) t)e masses? escaf1 is making a very conscious effort to

!ar"etin# Pro$ect - 2C -

Dets loo" at the a&2 7he 30-secon& a& 0y !c ann-Bric"son opens .ith the prospecti,e #room an& his parents comin# to see the #irl2 9ith an o0$ecti,e to #et (amiliar .ith each other3 the 0oy an& the #irl step out into to #ar&en2 Noticin# that neither o( the t.o is a0le to initiate a con,ersation3 the concerne& parents .on&er ho. to sha"e them up2 >Arrey in)e =agao3? 59a"e them up6 says the (ather o( the #irl2 'n&3 Nesca(1 is ser,e& to the couple2 9ith $ust a (e. sips3 the initial a.".ar&ness3 8uite surprisin#ly3 &isappears2 9hat (ollo.s is a chat .ith an allusion to mo,ie titles2 So .hen the 0oy as"s3 >7oh =um saath saath hainV? 5So3 are .e to#etherV63 the #irl replies3 >Wayamat se 8ayamat ta"2? 5:rom one apocalypse to another26 7he a& en&s .ith the super ><agao@ escaf1 'ilao2? 5'rouse them 0y ser,in# Nesca(126 7he creati,e an& the one 0e(ore that .ere &eci&e& a(ter Nestl1 tol& !c annBric"son that the :! G ma$or .as to e/pan& the mar"et2 So3 it .as time (or a ma"eo,er2 'n&3 &rin"in# Nesca(1 ha& to 0ecome a relata0le e/perience (or the masses2 %( that literally meant repositionin# Nesca(13 so 0e it2 9ith this a&,ert an& the one 0e(ore 5the train a&63 the once-elitist Nesca(1 has 0e#un tal"in# the lan#ua#e o( the masses2 %n the train a&3 (or e/ample3 the ta# line3 ,oice-o,er3 the train atten&ant3 an& the mo&el all loo"e& an& soun&e& %n&ian2 B/cept (or the train an& the location3 .hich &e(initely loo"e& HphorenH2 Perhaps3 the only traces o( aspiration2 4ut then3 estl1;s attem't to include escaf1 in t)e 6ndian every-day life seems =ustified since t)e 'romise of good times is firmly in t)e territory of urban@ )i' coffee )ubs N Barista and Coffee Cafe (ay t)ese days? 6n words of "r? #rasoon <os)i@ regional C(@ Sout) , Sout) East Asia@ "cCann-Erickson3 >$hile we are trying to make Nescaf a regular feature in the lives of many, we are also giving a very specific reason for that. Nescaf stimulates the mind, relieves mental fatigue% it is a very invigorating e&perience. And that's what precisely differentiates coffee drinking from tea2?

!ar"etin# Pro$ect - 27 -

4esi&es this Nestl1 re#ularly comes up .ith ,arious promotional o((ers li"e (ree $ars3 e/tra 8uantity (or the same price etc2 7al"in# a0out the pac"a#in#3 Nesca(1*s come a lon# .ay since 19382 =o.e,er their lo#o an& pac"a#in# has chan#e& little o,er the years2 7hey continue to use the co((ee 0eans an& a re& co((ee mu# on their pac"a#in#2 7he use o( colours an& the simple ele#ance o( the pac"a#e appeal to all2 Nesca(1 is also a,aila0le in a ,ariety o( si@es .ith the option o( easy to store sachets an& pouches to the airti#ht an& reusa0le $ars2 7he ase o( NBS7DI !%D-it) t)e launc) of "ilo@ estl1 was faced wit) t)e c)allenge of 'resenting "ilo as a wort)y com'etitor in t)e 6ndian energy drink market t)at was dominated by Cadbury;s Bournvita and Smit)9line Beec)am;s Boost2 7his .or" .as han&e& o,er to "udra2 7he a#ency ha& to 0e#in (rom @ilch3 ri#ht (rom #ainin# customer con(i&ence to 0uil&in# its 0ran& ima#e2 7his is ho. "udra an& Nestl1 han&le& all this to#ether2 H!iloH the ener#y &rin" Nestl1& into the %n&ian mar"et in 199C2 7he responsi0ility o( launchin# the &rin" in a mar"et &ominate& 0y time teste& 4ourn,ita an& 4oost .as no easy tas" (or !u&ra2 4ein# the (i(th player in the 0ro.n 0e,era#e mar"et3 the &rin" .as up a#ainst 4ourn,ita3 .hich ha& an en,ia0le mar"et share o( )0F3 an& SmithKline 4eecham3 a stron# conten&er3 especially in the south2 Gsin# the consumer insi#ht that mothers are &ri,en 0y a nee& to support their sonsH har& .or" an& help them succee& .hen un&er pressure3 the a#ency launche& an impressi,e a& campai#n2 7he research (ollo.in# the campai#n re,eale& the nee& (or !ilo to 0e percei,e& as a &rin" .ith 2 stron# &eli,era0les- Bner#y an& 7aste2 7hus a strategy was ado'ted w)erein t)e agency targeted c)ildren belonging to t)e age grou' of F-%* years and t)roug) t)em t)eir mot)ers2 7he strate#y .or"e& an& le& to a )0F ,olume #ro.th3 .ith the mar"et share #ro.in# to 828F2 '(ter esta0lishin# !ilo as the .orl&Hs num0er one ener#y &rin" an& its taste 0ene(its3 the attention shi(te& to presentin# its emotional 0ene(its too2 7he (ocus .as no. on re,ampin# the 0ran& ima#e (rom 0ein# a tasty ener#y &rin" to one that pro,i&e& e/tra ener#y to H.inH2 7he a#ency once a#ain came up .ith commercials a&&resse& to chil&ren as the tar#et au&ience an& mothers as the secon&ary au&ience2 7he campai#n pro,e& to 0e success(ul .ith the &rin" emer#in# as the No2 2 0ran& in 3 out o( ) @ones3 an& its mar"et share #ro.in# to an impressi,e 112)F2

!ar"etin# Pro$ect - 28 -

Not satis(ie&3 the a#ency un&ertoo" another research3 .hich re,eale& t.o issues that nee&e& to 0e a&&resse& imme&iately2 :irstly the pester po.er3 .hich in this cate#ory .as not ,ery hi#h an& secon&ly3 the (act that !iloH s 0ran& promise o( .innin# .as un(ortunately 0ein# percei,e& as an a&,ertisin#X mar"etin# claim2 =ence they em0ar"e& into yet another campai#n3 this time .ith the intention o( impro,in# the 0ran& ima#e 0y o,ercomin# a motherHs apprehensions an& #ettin# her to su0scri0e to the 0ran& promise2 7he 0ran& .as thus re-launche& .ith the same promise 0ut .ith a stron# support in the (orm o( He/tra 4-,itaminsH in the pro&uct2 7his re-launch .hich too" place in +ec 2001 pro,e& 0ene(icial as it 0oost the &rin"Hs mar"et share to 13F ma"in# it the lea&in# 0ran& in the Bast3 No2 2 0ran& in the north an& .est an& No2 3 0ran& in the south22 Again in *EE4@ estl1 6ndia re'ositioned "ilo? 6n "iloBs new avataar@ estl1 'lanned to define and claim owners)i' of t)e Lsc)ool going kidsB category@ more 'recisely t)e class F to class %% segment@ rat)er t)an t)e broad based LkidsB segment? /)is@ sources add@ will be done by s)ar'ening "iloBs 'ositioning as a drink for a sc)ool going kid w)oBs a c)am'ion in mind and body? 7hat time3 Nestl1 %n&ia ha& 0een aimin# to increase penetration 0y (ollo.in# a multi-pron#e& strate#y o( e/pan&in# the pro&uct 0as"et3 increasin# sales turno,er 0y re&ucin# the shel( li(e o( pro&ucts an& lo.erin# price points 0y ma"in# smaller pac"s2 7his .as &eci&e& .hen mar"et lea&er Gla/o SmithKline 4eecham onsumer =ealthcare 5GSK63 repositione& the =orlic"s 0ran& (rom health &rin" to a (un &rin" (or youn# people2 A'art from seeking a new 'ositioning@ and t)ereby a new target audience@ "iloBs relaunc) included a new 'ackaging@ new stock kee'ing units GS97sH at lower 'rice 'oints and@ for t)e first time new flavours as well? 7he pro&uct .as launche& in a (lat-0ottome& Sta0ilo pouch pac" instea& o( its current car&0oar& pac"2 7he relaunch o( !ilo3 .hich has other.ise "ept a lo.-"ey pro(ile3 .as also supporte& 0y an a##ressi,e me&ia campai#n2 7hese .ere $ust some o( the promotion techni8ues a&opte& 0y Nestl1 !ilo2 !ilo has al.ays inclu&e& #i(ts .ith it to attract its youn# customers2 'n& (inally3 here is the latest a&,ancement in this ro.E

!ar"etin# Pro$ect - 29 -

estl1Bs "ilo wit) ;Badam S)akti; Nestl1 is relaunchin# its chocolate health (oo& &rin" !ilo 0y re-ener#isin# it .ith H4a&am Sha"tiH2 'ccor&in# to company sources3 !ilo is all set to #et a ne. lease o( li(e .ith a ne. pac"a#in#3 (ormulation an& a &istinct positionin#2 urrently3 !ilo is a,aila0le in a SKG o( 500#m price& at <s 9C2 By giving "ilo a new distinct local 'ositioning and introducing t)e brand in convenient sac)ets at lower 'rice 'oint@ it is clearly moving away from being a very urban-focused 'layer and targeting newer markets and driving rural demand?

!ar"etin# Pro$ect - 30 -

!ar"etin# Pro$ect - 31 -

#re'ared (is)es , Cooking Aids G"aggiH

($hat )ero& is to photocopier and *olgate to toothpaste, +aggi is to noodles in India,

Ma%%i Noodles & "ice Mania Ma%%i 'e%etable Atta noodles Ma%%i so (s Ma%%i sa ces and ketch (s Ma%%i ma%ic c bes
's clearly ,isi0le (rom the pre,ious pa#e !a##i*s culinary port(olio is 8uite &i,ersi(ie&3 o((erin# &i((erent ,arieties o( prepare& (oo& an& &ishes ran#in# (rom soups to sauces (rom noo&les to taste enhancers2 4ut the prime thin# .hich accounts (or a lar#e part o( !a##i*s re,enue is !a##i noo&les2

!ar"etin# Pro$ect - 32 -

Analysis of t)e 4#s of t)is (ivision

#roduct "ix
Nestle has a lot o( pro&ucts un&er its 0ran& !'GG%2 Some o( them are E !a##i noo&les !a##i ,e#eta0le 'tta noo&les !a##i soups !a##i sauces an& "etchups !a##i ma#ic cu0es

"A886 *-"6 7/E ..(2ES

!a##i noo&les .ere launche& in 1983 in %n&ia2 'n& to&ay is one o( the lar#est snac" (oo& 0ran&s in the country an& &e(ine the %nstant Noo&les cate#ory in the country2 :ast (oo& an& ma##i are synonymous in %n&ia2 %t*s a t.o minute preparation &ish2 7he noo&les are .heat (lour 0ase&2 -ther than that the 0asic in#re&ients o( !a##ie noo&les are .heat #luten an& #uar #um2 7he ,e#eta0le oil (rie& (orm o( the noo&les is a,aila0le e/tensi,ely here in %n&ia as the air &rie& (orm a,aila0le across the .orl& &i& not &o .ell here in %n&ia2 ' tastema"er pouch is present in all the pac"s to a&& spices etc2 thus a&&in# to the taste o( the noo&les2 7he 0asic contents o( a tastema"er are su#ar3 mi/e& spices3 onion po.&er3 an& e&i0le starch2 6n terms of its #2C cycle@ t)is 'roduct is 'er)a's in maturity stage@ wit) stable prices@ peak profits and soaring revenues? Nestle re,ise& the nutrition content o( ma##i noo&les in 200) "eepin# in min& the <2+2'5<B -!!BN+B+ +%B7<K 'DD-9'N B6 o( an normal %n&ian chil& 579 KB'<S62 'nother (actor (or this re,ise& content .as the #ui&elines (or nutriti,e ,alue o( %n&ian (oo& 0y % !< 5%n&ian ouncil :or !e&ical <esearch62 /)is is an excellent exam'le of a res'onsible com'any ada'ting to c)anging legal environment and com'lying wit) c)anged norms? !'GG% noo&les are a,aila0le in 5 types3 namelyE-Ve#eta0le 'tta -7omato - urry - !asala - hic"en

!ar"etin# Pro$ect - 33 -

"A886 4E8E/AB2E A//A ..(2ES , 06CE "A 6A

onsi&erin# the chan#es 0ein# (ace& an& the mar#in tren&s in the #lo0al mar"et nestle %n&ia launche& another ,ariation in its noo&les cate#ory "no.n 0y vegeta#le atta noodle2 7he main constituent as su##este& 0y the name is atta in the ma"in# o( these noo&les2 This variation was introduced #ecause in India many people #elieve +aida as a hinder to good health and all the noodles made #y +aggi #efore this was of +aida2 Nestl1 %n&ia use& the GroupHs e/tensi,e <esearch an& +e,elopment e/pertise to &e,elop !'GG% Ve#eta0le 'tta Noo&les .hich contain .hole .heat an& real ,e#eta0les2 ' 100 #m pac" o( !'GG% Ve#eta0le 'tta Noo&les pro,i&es the #oo&ness o( 3 rotis 5ener#y3 car0ohy&rates3 &ietary (i0er3 protein an& calcium62 >' lot o( research has 0een un&er#one 0e(ore the launch o( 'tta noo&les3 an& it is 0elie,e& to 0e a success(ul pro$ect?3 sai& <ashmi Gupta 54ran& !ana#er3 !a##i62 /)is brings )ome t)e 'oint as )ow a successful com'any needs to constantly monitor t)e c)anging consumer demands and come out wit) new variants re'eatedly? 'ccor&in# to the company3 the ne. !a##i ,ariant is tar#ete& at consumers .ho .ant to inclu&e health an& .ellness in their (oo& in a con,enient manner2 7he company says the pro&uct has 0een &e,elope& to a&&ress the concern that chil&ren as .ell as a&ults lac" su((icient (i0er in their &iet2 /)e success of "aggi atta noodle )as also illustrated t)at )ow all new additions to a com'anyBs 'ortfolio can rea' t)e benefits of a good brand name?

"A886 HEA2/H5 S.7#S

'nother pro&uct o( !a##i is its soups2 Nestl1 pioneere& the &ehy&rate& soups mar"et in %n&ia an& .as the (irst to intro&uce tasty an& con,enient pac"a#e& soups2 !a##i launche& soups in %n&ia in 19892 7he ne. !'GG% =ealthy Soups ha,e 0een care(ully prepare& throu#h the <esearch an& +e,elopment e((orts o( Nestl1 Group an& are e,en more &elicious3 8uic" to prepare3 con,enient an& healthy2 's the ta# line >taste #hi, health #hi? su##ests the main (ocus o( !a##i is on t.o thin#s taste n health o( people2 7o&ay there are a0o,e ten &i((erent ,ariants a,aila0le in the mar"et3 o( these soups such as 7omato3 !i/e& Ve#eta0le3 !ushroom3 hic"en3 S.eet orn hic"en3 =ot ; Sour
Ve#eta0le an& the San$ee,ni ran#e2

"aggi sou's are exam'les of 'roduct diversification being s'ecifically targeted at different consumer 'rofiles?

!ar"etin# Pro$ect - 3) -

SA7CES A ( 9E/CH7#S
Sauces an& Ketchups are relishe& (or their hi#h 8uality an& taste an& are consi&ere& J#oo& ,alue (or moneyH 0y consumers2 !'GG% o((ers a .i&e ran#e o( pro&ucts that appeal to ,arious se#ments inclu&in# tra&itional "etchups3 %n&iani@e& sauces an& specialty sauces2 7here are 8 ,ariants in the !'GG% Sauces ran#eE

"A886 "A86C C7BES

!a##i ma#ic cu0es are taste enhancers2 's the ta# line PC)utki b)ar <adooOP Su##ests these cu0es $ust nee&e& to 0e sprin"le& o,er the (oo& items to #et the taste2 !'GG% !'G% u0es are a,aila0le in t.o (la,ors - Ve#etarian !asala an& hic"en2 *urrently these cu#es availa#le in the southern part of India which reflects the fact that the company is aware of differences in tastes, preferences #rought a#out #y geographical differentiation.

#rice "ix
oodles
' 50 #ram pac" is a,aila0le (or <s2 527he 100 #m price& at <s2102 7he 0i##er pac"s- the )00 #m3 800 #m ; the 722 "# pac"3 are a,aila0le at a proportionately lesser price at <s2 3C3 C5 ; <s2 550 respecti,ely2 %( .e ta"e an insi#ht into noo&les mar"et .e .ill (in& that almost all the pro&ucts are price& more or less the same2 Gi,en 0elo. are the list o( pro&ucts an& their prices2 6t is testimony to t)e fact t)at t)e industry 'roduct life cycle is in maturity stage and com'anies can no longer c)arge )ig)er 'rices in t)e name of differentiation? -!a##i atta noo&les an& <ice !ania- <s 15 -7op <amen mu# noo&les - <s 10 - !a##i !asala - <s 10 - 9ai 9ai noo&les - <s 12

Sou's and 9etc)u's

Sauces an& "etchups are price& on the 0asis o( their (la,ours an& 8uantity2 9hile all the stan&ar& si@e o( the soups are price& at a same price2 7he 5C #ram pac" o( soup .hich ser,es ) 5each ser,in# Y150 ml appro/26 is price& at <s2 20 5inclusi,e o( ta/es6 no. to #ain a&,anta#e o( point pricin#2 %t .as pre,iously price& at <s2 222 !a##i*s main competitor in the soup cate#ory is %272 *s 0ran& annapurna "norr soups .hich ha,e 0een price& at <s225

!ar"etin# Pro$ect - 35 -

Again@ 'rices are ke't kee'ing in mind com'etitorBs moves?

!ar"etin# Pro$ect - 3C -

#romotion "ix
oodles
B/tensi,e promotion throu#h a&,ertisements on 7V2 7he a&s ha,e al.ays (eature& "i&s an& ne,er a cele0rity since the people at Nestle 0elie,e that as lon# as the cele0rity a& is on 7V "i&s .ant the pro&uct ; therea(ter it is #one2 %n a&s the "i&s are sho.n come 0ac" (rom play or school as"in# (or !a##iE > Badi ga>ab ki b)ook) lagi@ "aggi c)a)iye mu=)e ab)i?? %n another a&,ertisement3 a "i& $umps out o( 0e& an& #ets rea&y (or school as soon he "no.s there is !a##i in 7i((in E Aa= 9)ane mein kya )ai M Dar#e scale promotions are also un&erta"en at school le,elE 98- ursery Smiley ContestsE =ere3 "i&s are $u&#e& on the 0asis o( cleanliness3 punctuality etc2 7he "i& .ith ma/imum smileys at the en& o( the stipulate& perio& #ets a !a##i Gi(t =amper2 "aggi Pui> contestsE %nterschool Wui@ contests are hel& an& the .inners #et !a##i 0a#s (ull o( noo&les2 7he au&ience #ets pri@es o( 1 or 2 100 #ram pac"s o( !a##i noo&les2 'lso &o .et samplin# in small mar"ets una.are o( (ast (oo& culture such as GP or remote North-Bast2 Garlic (la,or o( !a##i .as also launche& in 1998 0ut &i& not (air .ell in the mar"et an& .as .ith&ra.n an& the ol& (la,or .as reintro&uce& .ith the phrase >Sab kuc)) 'e)le <aisa?or >%t*s 0ac"2 Nestle choose P<%B7K R%N7' as its 0ran& am0assa&or (or !a##i noo&les3 "eepin# her 0u00ly an& chil&ish attitu&e in min&2 She appeare& in the 72V2 commercial .ith some o( "i&s promotin# !a##i noo&le*s small pac"2 /)us estle c)ooses its brand ambassadors carefully kee'ing in mind t)e intended 'ositioning and target market for t)e 'roduct? 9ith the intro&uction o( !a##i ,e#eta0le atta noo&les3 nestle has &one e,ery thin# possi0le to promote this 0ran&3 as the company 0elie,es a lot in this pro&uct2 7his is clearly ,isi0le (rom the (ollo.in# analysis2 7he ta0le 0elo. sho.s the 7op 5 4ran&s in Noo&lesXPasta cate#ory on 7ele,ision3 alon# their '&,ertiser3 in the 1st hal( o( 20052

!ar"etin# Pro$ect - 37 -

'lmost the entire a&,ertisin# share 5100F6 is contri0ute& 0y 7op 5 0ran&s H!a##i Ve#eta0le 'tta Noo&lesH #ra0s 50F o( the a&,ertisin# share in the 1st hal( o( 2005

Sou's
7he soups ha,e 0een promote& e/tensi,ely throu#h 7V a&,ertisements2

#lace "ix
7he main pillar on .hich the palace o( Nestle*s re,enue stan&s is easy an& ,ast a,aila0ility o( its pro&ucts. 's re#ar&s the #2ACE- #erfect 2ocation for A Customer Exc)ange3 they are a,aila0le on almost all the outlets that are sellin# such pro&ucts2 %( you ,isit any &epartmental store3 0i# or small one thin# you can al.ays 0e sure o( #ettin# is !a##i noo&les2 %t is also a,aila0le at all small shops in an area2 7he ,ast &istri0ution channels o( Nestle !a##i noo&les e,en acts as one o( its success(ul mar"etin# strate#ies2 /)e vast availability of t)is 'roduct to t)e consumers is one of t)e factors for w)ic) nestle en=oys an undis'uted market s)are in t)is category?

!ar"etin# Pro$ect - 38 -

!ar"etin# Pro$ect - 39 -

C)ocolates , Confectionery
Nestl1 (oraye& into chocolates ; con(ectionery in 19902't the time o( intro&uction3 Nestl1 mar"ete& !il"y 0ar an& Kit-Kat chocolates in %n&ia2 %n the con(ectionery ran#e3 it ha& pro&ucts li"e Soothers an& Polo2 7o&ay3 it has cornere& a thir& share o( the chocolate mar"et in the country2 7he cate#ory contri0utes 1)F to Nestle Js turno,er2 %t has e/pan&e& its pro&ucts ran#e to all se#ments o( the mar"et2

Nestle Milk Chocolate Nestle *it *at Nestle Milkibar Choo Eclairs Nestle Acti-' Polo

Bar )ne Nestle M nch Nestle

!ar"etin# Pro$ect - )0 -

Sales of #roduct #ortfolios

1)F hocolates an& on(ectionery -ther Pro&ucts 8CF

"A09E/ SHA0E

3F

3)F

Nestl1 a&0ury*s -thers

C3F

!ar"etin# Pro$ect - )1 -

C+)C),A-ES

TABLE T

COUNTLINE

WAF ER

KID/PL AY
=- S7% K

!%DK =- -D'7B

4'<--NB

K%7-K'7

!GN =

!ar"etin# Pro$ect - )2 -

:rom the inter,ie.s3 .e learnt that the people at Nestl1 ac"no.le&#e the (act that chocolates are an impulse 0uy2 'ccor&in#ly3 Nestl1 %n&ia mar"ets chocolates at a((or&a0le prices (or ,arious a#e #roups2 Nestl1 chocolates are less heat-sensiti,e compare& to the others in the mar"et2 Nestl1 has a ,ery clear harter o( ethics an& responsi0le 0eha,ior in sellin# chocolates an& con(ectionery2 %t has rein(orce& the #ui&elines (or mar"et hy#iene (or its chocolate 0ran&s2 7he e/ercise is aime& at ensurin# that stora#e o( its chocolate 0ran&s at retail outlets meet .ith a&e8uate hy#iene stan&ar&s2

/AB2E/S CA/E8.05
7his is the in&ul#in# chocolates cate#ory2 7hese are 0loc" type chocolates2

"629 CH.C.2A/E
7his is the ne. name .hich ahs 0een #i,en to the lea&in# mil" chocolate o( the country-!il"y 0ar2 7his chocolate is tar#ete& at chil&ren 0elo. 12 years2 !il"y 0ar .as the chocolate .ith .hich Nestl1 entere& %n&ian mar"ets2 %t has 0een in the runnin# e,er since the 0e#innin#2 !il"y 0ar has a ,ery 0i# mar"et in south %n&ia2 7his chocolate has seen the &ecline o( a&0ury*s !il"-7reat3 .hich .as launche& at a lo.er price 0ut coul& not match the satis(action3 the taste .hich eatin# a !il"y 0ar #a,e2

C.7 /-26 E CA/E8.05

%n simple .or&s3 these are the caramel chocolates2

BA0-. E
%t is a luscious nou#at an& caramel .ith &elicious choc layer2 hocolate (or the youn# people .hich 0e#an its a&,ertisin# .ith '(ta0 Shi,&asani in his teens2 7he chocolate ha& a national presence till 200) 0ut o,er time3 has 0een .ith&ra.n an& is no. a##ressi,ely mar"ete& in south %n&ia an& east %n&ia2 7he chocolate .as relaunche& in 200) 0ut still coul& not match up to meet its competitor in this se#ment3 a&0ury*s 5-Star2 7his chocolate constantly remin&in# us that it is the *Time for Action* lost out to *mera - star*.

-A:E0S CA/E8.05
7he cate#ory .ith (ro@en chocolates o,er crispy-crunchy .a(ers2

96/-9A/
%t is one o( the most success(ul 0ran&s o( the .orl&2 %n %n&ia3 it .as the secon& lar#est chocolate 0e(ore the launch o( Nestl1 !unch2 %t is the thin .a(er chocolate comin# .ith t.o (in#ers an& (our (in#ers an& a uni8ue J0rea"in#H ritual attache& to it2 %t is tar#ete& at youn# a&ults a#ein# (rom 18-2) years2 7his #oo&-(la,oure& chocolate al.ays #i,es us the messa#e *!appy ho ja*2 %n 19983 Nestl1 %n&ia ha& launche& a ,ariant o( this chocolate-Kit-Kat -ran#e2 Gn(ortunately3 this ,ariant &i& not &o ,ery .ell in the mar"et an& .as soon .ith&ra.n2 No.3 the company is plannin# to launch the chocolate .ith ne. (la,ours- cumin an& HmasalaH - 0oth staple spices use& in %n&ian curry &ishes2

"7 CH
Nestl1 !unch is a .a(er layer co,ere& .ith &elicious choc layer2 7his chocolate .as launche& in %n&ia in the last 8uarter o( 1999 an& has 0ecome the mar"et lea&er in its cate#ory2 %t is secon& only to a&0ury*s +airy !il" in the %n&ian chocolates mar"et2 7he chocolate is meant (or people a#e& a0o,e 13 years2 7his chocolate alone accounts (or O1million o( Nestl1 %n&ia*s total re,enues2 7his chocolate #i,es lar#er ,alue (or lesser money as *+unch +aha hota jaaye* an& the pro&uct*s taste assures that *a# to +.N*!ing ruk na paaye*2 7his is the chocolate ha,in# the hi#hest penetration in the %n&ian mar"et2 7he popularity o( the !unch 0ran& cuts across a#e3 to.n3 culture an& socio-economic classes as it says >!era !GN = mahaan?2

96(J#2A5 CA/E8.05
7hese are the chocolates tar#ete& e/clusi,ely at "i&s2

CH.C.-S/6C9
%t is a relati,ely ne. chocolate 0ran& at an a((or&a0le price point o( only <s22 !eant (or the chil&ren 0elo. 12 yearsT it has a small pac"a#in# so that the parents are also not 0othere& 0y their "i&s* consumption o( chocolate2 onse8uently3 this chocolate is ,ery (amous amon# the chil&ren especially in south %n&ia2

Marketing Pro ect ! "" !

'part (rom the a0o,e3 Nestl1 no. also mar"ets some o( its importe& 0ran&s li"e Wuality Street3 Dions an& '(ter Bi#ht2

S78A0 C. :EC/6. E05

'll su#ar con(ectionery pro&ucts are sol& un&er the um0rella 0ran& Allen;s2 7he su#ar con(ectionery port(olio consists o(-

#.2.
%t .as launche& in the %n&ian mar"et in 199)2 %t is popularly &escri0e& as a J<e(resh mintH2 %t is uni8ue in the cate#ory U J7he !int .ith the holeH2 ' ,ariant o( this pro&uct3 calle& Polo Saun( .as launche& in 1997 0ut it &i& not &o .ell in north %n&ia2 7his ,ariant is still sol& in other parts o( the country 0ut Polo continues to ha,e a nation.i&e presence2

EC2A60S
7hese are the to((ees mar"ete& 0y Nestl1 in competition to the a&0ury*s +airy !il" Iclairs2 7hese .ere intro&uce& in %n&ia in 19982 7hey come in chocolate3 mil"y 0ar an& coconut (la,ours2

AC/6-4
%t is a her0al throat soother .ith a uni8ue li8ui& center .ith 'nticol that pro,i&es e((ecti,e relie(2 %t is a,aila0le in =oney Demon an& !enthol Bucalyptus

S../HE0S
Soothers help to soothe a &ry or a sore throat2 7hese pro,i&e soothin# relie( (rom e,ery&ay irritations 5e2#2 cause& 0y e/cessi,e tal"in#3 shoutin# or air con&itionin#6 Bucalyptus ; !enthol2 7hese are a,aila0le in the (ollo.in# *interestin#* (la,ours

4lac"currant =oney ; Demon Demon ; Dime Di8ui& enters -ran#e ; !an#o Di8ui& enters !i/e& 4erry 7ropical !an&arin

Marketing Pro ect ! "# !

Analysis of t)e 4#s of t)is (ivision

#roduct "ix
's "r? 0yan :ernandes@ Brand :ranc)ise "anager@ C)ocolates and Confectionery@ estl1 6ndia put it3 /It is the result of an e&perience of 01- years that Nestl gives us 23ood 4ood, 3ood 5ife2./ estl1 'rimarily focuses on t)e areas w)ere it can be t)e market leader2 6t believes t)at one cannot take a com'etitor )ead-on w)ere t)e latter already )as considerable com'etitive advantage2 So the (ocus is to e/plore other areas2 %t &e,elops ne. pro&ucts li"e !unch3 .hich are some.hat ne. in concept an& ta"e Nestl1 to the lea&in# position2 Nestl1 %n&ia has its o.n local application la0oratories to 0e a0le to access mo&ern technolo#y an& to chec" that the chocolates meet certain 8uality stan&ar&s2 Nestl1 chocolates are more heat-resistant than the other chocolates in the mar"et2 '(ter the .orms contro,ersy in,ol,in# a&0ury %n&iaHs chocolate 0ran&s ha& impacte& Nestl1*s sales as .ell3 "r? Carlos (onati@ C)airman and "anaging (irector@ estl1 6ndia says3 /Any controversy that shakes the consumer's confidence is not good for the category./ 7he company ha,in# such 0elie(s ou#ht to ha,e the secon& hi#hest mar"et share in the %n&ian as .ell as the .orl& chocolates an& con(ectionery mar"et2 %t is consistently 0ri&#in# the #ap 0et.een its position an& the lea&er*s position3 .ith the help o( its (la#ship 0ran&s Nestl1 Kit-Kat3 Nestl1 !unch an& Nestl1 !il" hocolate 5Nestl1 !il"y 0ar62 %n %n&ia3 .here e,en the Nestl1 o((icials a#ree that chocolates is synonymous to a&0ury*s3 they are (ocusin# more on 0ran&s li"e Nestl1 !unch 5in the 9a(ers ate#ory62 9ith their ama@in# (ocus on the &e,elopment an& pro&uction o( !unch3 .hich has more crispy an& crunchy .a(ers than the competitor*s 0ran&3 they ha,e 0een a0le to ma"e it the secon& lar#est sellin# chocolate in %n&ia2 7o stay sa(e on a 0icycle3 you nee& to "eep pa&&lin#2 Similarly3 to stay in 0usiness an& meet the competition3 the company nee&s continuous pro&uct inno,ation2 %n 200)3 Nestl1 %n&ia launche& t.o ,ariants-!il"y 0ar hoo3 Stra.0erry hoo an& !il"y 0ar Star@2 Nestl1 !il"y 0ar hoo is a so(t che.y (u&#e .ith .hite choc layer that "i&s lo,e to J hooH2 Nestl1 ha& actually launche& these chocolates as a limite& e&itions chocolate 0ut seein# the commen&a0le response to the launch o( these chocolates3 it .as &eci&e& that Nestl1 %n&ia shoul& continue mar"etin# these chocolates2

Marketing Pro ect ! "$ !

ow@ estl1 6ndia is 'lanning to launc) t)e 9it-9at c)ocolate wit) new flavours- cumin and ;masala; - bot) sta'le s'ices used in 6ndian curry dis)es2 7he ,ariants 0ein# teste& are sa,oury ,arieties2 -ther ne. (la,ours may inclu&e sa((ron an& passion (ruit2 7hese may 0e launche& soon in the %n&ian mar"ets2 /)us like some of t)e ot)er 'roducts@ t)ere is a conscious effort to ada't to local flavour?

Marketing Pro ect ! "% !

#rice "ix
Nestl1 %n&ia mar"ets chocolates an& con(ectionery at lo. prices .ith compromisin# on neither the 8uality nor the 8uantity2 'ccor&in# to "r? Carlos (onati@ :ormer C)airman and "anaging (irector@ estl1 6ndia@ /$e give more value for lesser price./ =ere the consumers &o not nee& to ma"e a tra&e-o(( 0et.een prices an& 8uality2 Nestl1 !unch #ettin# more an& more Maha &ay 0y &ay .ith the same price o( only <s25 is a #larin# e/ample o( this2 Nestl1 is increasin# the 8uantity o( this chocolate .ithout increasin# the price2 <ecently3 Nestl1 has 0rou#ht to the mar"et3 a &ada Nestl1 !unch .ith the 8uantity o( (our !unches an& the price 0ein# <s2193 .hich is an economy pac" (or the consumers as they #et more in lesser price than 0uyin# (our in&i,i&ual units o( the chocolate2 .ver t)e years it )as also been analy>ed t)at pricing the chocolates at rounded figures is the best strategy? Nestl1 chocolate Kit-Kat .as price& at <s212 (or (our (in#ers an& at <s2C (or t.o (in#ers2 %n 200)3 Nestl1 &eci&e& to lo.er the prices o( these to <s210 an& <s25 respecti,ely? /)e res'onse was so tremendous t)at t)e increase in sales volume after t)is 'rice fall com'ensated for t)e fall? 9hen Polo .as launche& in 199)3 it .as price& at <s23 an& o,er the years3 there has not 0een much hi"e in prices as no. a sli#htly 0i##er pac" is sol& (or <s25 an& a smaller pac" o( <s22 is a,aila0le2 B,en to&ay3 the (ocus is on roun&e& prices such that the customer is $ust ta"in# out a coin out o( his poc"et an& #ets the chocolaty 0ene(its 0ein# hoco-Stic" sol& (or only <s222 7his can 0e mana#e& out o( the poc"et money o( the chil& 0elo. 12 years o( a#e also2 7he (ocus is also to price the chocolate only a 0it lesser than the competitor 0ecause there cannot 0e a ,ery a##ressi,e price .ars in case o( chocolates an& con(ectionery2 4ar-one .as price& at <s25 .hereas its competitor a&0ury*s 5-Star .as price& at <s2C (or the same 8uantity2 %n contrast3 althou#h a&0ury*s !il"-7reat3 .hich .as price& at <s210 .hereas Nestl1 !il"y 0ar .as mar"ete& (or <s212 (or the same 8uantity3 coul& not match the latter*s 8uality an& ultimately &ie& out2 7he pro&uct Nestl1 Iclairs #i,es the consumer the taste o( a chocolate at the price o( a to((ee 0ar2 %n the .or&s o( "r? 0yan :ernandes@ Brand :ranc)ise "anager@ C)ocolates and Confectionery@ estl1 6ndia@ /These surely offer a chocolate eating e&perience at a candy price point./ -n the other han&3 the mana#ement is implementin# pro#rams to control "ey ra. materials costs2 7he hi#h costs o( ra. materials an& processin# are increasin#ly

Marketing Pro ect ! "' !

0ecomin# a cause o( concern2 =o.e,er3 7he in(lation coul& soon 0e 0rou#ht un&er control2

ompany (eels that ra. material cost

#lace "ix
Nestl1 has its o.n &istri0ution channels an& &oes not use many interme&iaries2 '(ter 0ein# pro&uce& in the (actory in Mogha (Pun ab), the chocolates are ta"en to the Nestl1 2N2S2 9or"house2 '(ter this3 the chocolates #o to the &istri0utors3 .ho ta"e them to the shops2 't some places in %n&ia3 Nestl1 .or"(orce &irectly &eli,ers the chocolates an& con(ectionery pro&ucts to the shops2 %n a&&ition to these3 there are e((orts on to create more a.areness amon# .holesalers an& retailers to create stora#e ,alue an& minimi@e loss o( 8uality or time2 'lthou#h Nestl13 at some places3 &eli,ers the stoc" itsel(3 still Nestl1 !unch is the hi#hest penetrate& 0ran& in the %n&ian chocolates an& con(ectionery mar"et2 7his chocolate alone3 primarily 0ecause o( its &eep penetration accounts (or O1million o( Nestl1 %n&ia*s total re,enues2 7his 0ran& has a nation .i&e presence2 'nother one o( the con(ectionery items3 Nestl1 Polo has a nation .i&e presence an& may 0e (oun& ha,in# e8ual sales in the mountains as in the plains2 %( some chocolate is not &oin# .ell in one #eo#raphical 0oun&ary3 it is .ith&ra.n (rom that mar"et an& then a##ressi,ely sol& in the other mar"ets to maintain the sales2 'ccor&in#ly3 Nestl1 4ar--ne3 .hich .as .ith&ra.n (rom north %n&ia an& .est %n&ia3 is 0ein# a##ressi,ely sol& in other parts o( the country2 9hen as"e& (rom !<2 <K'N .hether there are any plans to shorten &istri0ution chains3 he replie& in the ne#ati,e2 6n a market like 6ndia@ com'anies )ave to forsake some amount of 'rofit margins but t)ere are less 'ossibilities of s)ortening t)e distribution c)annels?

Marketing Pro ect ! "* !

#romotion "ix
's 8uote& 0y "r? 0yan :ernandes@ Brand :ranc)ise "anager@ C)ocolates and Confectionery@ estl1 6ndia@ /*hocolates are an impulse #uy. Therefore, we need to make sure that the customer coming to a confectionery has the impulse to #uy them./ 7here(ore3 Nestl1 has &eci&e& to (ocus on the promotion o( hocolates an& on(ectionery at the 'oint of 'urc)ase2 hocolates an& on(ectionery items3 i( 0eauti(ully pac"a#e&3 attract the customers* eyes at the point o( purchase in a con(ectionery shop or a #eneral store2 7here(ore3 o((icials at Nestl1 train t)e distributors o( these items3 so that they (urther train the shop"eepers so as to .in&o. &isplay the pro&ucts an& arran#e them in arrays2 /)is is a classical exam'le of relations)i' marketing and systemBs a''roac) of management w)ic) focuses attention on a )olistic view'oint? B,en i( the customer &i& not initially ha,e any plan o( 0uy the chocolate3 he may see the attracti,e pac"a#in# an& #et attracte& an& has the ur#e to 0uy the chocolate2 7he small chil&ren #oin# to a #rocery shop or a #eneral store mo,e aroun& the shop an& (in& the chocolates an& the Nestl1 Iclairs an& come 0ac" an& tell their mothers .ho are 0usy 0uyin# the ration3 to 0uy them the chocolates an& the other con(ectionery items2 7his is surely tar#ete& more at the chil&ren than the a&ults2 7his "in& o( a &isplay increases the sales o( chocolates an& other con(ectionery items mani(ol&2 Doo"in# at the con,entional promotion techni8ues such as a&,ertisin#3 amon# all the chocolates sellers in the mar"et3 Nestl1 .as the topper in terms o( a&,ertisement e/pen&iture2 7o this3 it .as sai& that Nestl1*s #ain is a&0ury*s loss as 0y increasin# the e/pen&iture on (la#ship 0ran&s li"e !unch3 Nestl1 has 0een a0le to ta"e it to the num0er 2 position2 4ut3 in 20053 the a&,ertisin# e/pen&iture (or tele,ision a&,ertisements3 &one 0y Nestl1 %n&ia .as surpasse& 0y a&0urys %n&ia Dimite&2 'lthou#h3 Nestl1*s a&,ertisin# e/pen&iture is less than hal( o( that o( a&0urys %n&ia Dimite&3 it still is the num0er 2 chocolates manu(acturer in %n&ia2

Marketing Pro ect ! #+ !

Nestl1 has 0een a0le to use its 0ran& am0assa&ors success(ully althou#h it &oes not a&,ertise all o( its pro&ucts2 :amous 4olly.oo& actress <ani !u"her$ee is the 0ran& am0assa&or o( Nestl1 %n&ia*s (la#ship chocolate 0ran& !unch2 %n a&,ertisements ma&e 0y N 9alter 7hompson3 <ani is spotte& &onnin# &i((erent characters $ust to eat more an& more o( the irresisti0le !unch3 sayin# ,-b to Munching .uk /a Paaye0, <ani !u"her$ee (or rope& in (or 0rin#in# the 0ran& recall2 7he a& (ilm airs across tele,ision channels all o,er2 7he same a&,ertisement sho.in# <ani !u"her$ee &ri,in# an auto an& tellin# e,ery0o&y in the ,illa#e that the chocolate is #ettin# 0i##er an& 0i##er3 can 0e seen in &i((erent lan#ua#es on &i((erent tele,ision channels2 /I am happy that the #rand am#assador 6ani +ukherjee complements the popularity of the +unch #rand. 5ike the #rand, her star appeal cuts across age, town, class and S7*,/ t)e :ormer C)airman and "anaging (irector@ "r? Carlos (onati@ once sai& in a statement2

:amous 4olly.oo& actress <ani !u"her$ee is the 0ran& am0assa&or o( Nestl1 %n&ia*s (la#ship chocolate 0ran& !unch2 %n a&,ertisements ma&e 0y N 9alter 7hompson3 <ani is spotte& &onnin# &i((erent characters $ust to eat more an& more o( the irresisti0le !unch3 sayin# ,-b to Munching .uk /a Paaye0, <ani !u"her$ee (or rope& in (or 0rin#in# the 0ran& recall2 7he a& (ilm airs across tele,ision channels all o,er2 7he same a&,ertisement sho.in# <ani !u"her$ee &ri,in# an auto an& tellin# e,ery0o&y in the ,illa#e that the chocolate is #ettin# 0i##er an& 0i##er3 can 0e seen in &i((erent lan#ua#es on &i((erent tele,ision channels2 /I am happy that the #rand am#assador 6ani +ukherjee complements the popularity of the +unch #rand. 5ike the #rand, her star appeal cuts across age, town, class and S7*,/ t)e C)airman and "anaging (irector@ "r? Carlos (onati@ once sai& in a statement2 :or Nestl1 Kit-Kat3 there is no particular 0ran& am0assa&or2 -,er the years3 the a&,ertisements ha,e sho.n one person teachin# the other ho. to 0rea" the (in#ers o( the chocolate an& &eri,e the ultimate pleasure an& tellin# e,ery0o&y to ,1ave a

Marketing Pro ect ! #2 !

&reak and 1ave a 3it!3at0, this punch line 4as associated 4ith the brand for "% years. No., Nestl1 has &eci&e& to &o a.ay .ith it an& the ne. punch line says ,3it! 3at kha, 1appy ho a0, %nternationally the punch line (or this chocolate is ,Make the most out of your break. , 's seen a0o,e3 Nestl1 &oes not release tele,ision a&s or print a&s (or all its chocolates an& con(ectionery items2 7his is ho. the total a&,ertisement e/pen&iture on chocolates an& con(ectionery items3 ma&e 0y Nestl1 %n&ia is share& amon# &i((erent pro&ucts2

9hen as"e& a0out the customi@ations nee&e& in pac"a#in# the chocolates (or %n&ian mar"ets3 "r? 0yan :ernandes@ Brand :ranc)ise "anager@ C)ocolates and Confectionery@ estl1 6ndia@ that the %n&ian mar"et re8uires that chocolates ha,e a smaller pac"a#in# o( a0out 3C #rams an& e,en 20#rams .hereas the same chocolate may 0e sol& a0roa& in a pac"in# o( 5#rams an& e,en 100 #rams2 estl1 c)ocolates )ave a more strengt)ened 'ackaging as compare& to the chocolates o( other 0ran&s2 7his ensures that the chocolates reach the consumer intact an& &o not 0rea" or are spoile& 0y air3 insects3 ro&ents or any other such (actors2 /)us@ 'ackaging 'lays t)e dual role of 'romotion and safeguarding 'roducts against damage@ leakage@ etc?

Marketing Pro ect ! #5 !

Conclusions
Nestl1 %n&ia has a ,ery .i&e port(olio o( pro&ucts ran#in# (rom !a##i =ot n S.eet 7omato Sauce to Nestle :ruit n +ahi2 'lthou#h3 Nestl1 &oes not a&,ertise much a0out its pro&ucts in %n&ia3 still it is the .orl& mar"et lea&er in the mil" mar"et an& !a##i noo&les is the pro&uct .e ha,e all #ro.n up eatin#2 -n the .hole3 Nestl1 %n&ia (ocuses mainly on the areas .here it is a potential lea&er2 7hey may not try to replace the lea&er 0ut surely their pro&uct 0ecomes the secon& 0est pro&uct in the mar"et2 :or e/ample3 they &o a#ree that a&0urys is synonymous to chocolates in %n&ia an& there(ore they &i& not necessarily try to replace their (la#ship 0ran& a&0urys +airy !il" 0ut ha,e &e,elope& a pro&uct in the other chocolates se#ment an& there(ore Nestl1 !unch is the secon& 0est chocolate in %n&ia to&ay as sho.e& 0y the sales (i#ures2 7hey ha,e trie& to price their pro&ucts at lesser than the price o( the competitors3 (or e/ample3 Nestl1 4ar--ne .as sol& at <s25 .hereas the same 8uantity o( its competitor chocolate a&0urys 5-Star .as sol& at <s2C2 %n some areas3 Nestl1 has 0een a0le to outper(orm its competitors an& rather3 (or pro&ucts li"e !a##i noo&les3 it has no su0stantial competitors2 9hen ma#i noo&les came into the mar"et3 there .ere other players li"e 7op <amen3 .hose presence counte& 0ut no. it ma"es no &i((erence to the lea&er-!a##i2 'ny0o&y loo"in# (or a #oo&3 re(reshin# co((ee .oul& li"e to &rin" a Nestl1 Nesca(e co((ee an& may not e,en at times #i,e a secon& thou#ht to the competitor 4ru co((ee2

7o conclu&e the pro$ect3 (ollo.in# is the S-./ Analysis o( NestleE

Strengt)sE
Z 'ccess to the Nestle GroupHs proprietary technolo#yX0ran&s3 e/pertise an& the e/tensi,e centralise& <esearch an& +e,elopment (acilities un&er the General Dicence '#reement2 Z =i#h 8uality3 sa(e (oo& pro&ucts at a((or&a0le prices3 en&orse& 0y the Nestle Seal o( Guarantee2 Z Stron# an& .ell &i((erentiate& 0ran&s .ith lea&in# mar"et shares2 Z -n#oin# pro&uct inno,ation an& reno,ation3 to con,ert consumer insi#hts2

Marketing Pro ect ! #6 !

Z 9ell-&i,ersi(ie& pro&uct port(olio2 Z B((icient supply chain2 Z +istri0ution structure that allo.s .i&e reach an& co,era#e in the tar#et mar"ets2 Z apa0le an& committe& human resources2

-eaknessQ
Z B/ports o( co((ee to <ussia constitute su0stantial part o( o,erall e/ports2 Z omple/ supply chain con(i#uration2

/)reatQ
Z %n&ications o( shi(t in consumer spen&in# to.ar&s asset 0uil&in# an& non-(oo& relate& li(e style chan#es3 &i,ertin# consumer &eman& (or :! G pro&ucts2 Z <isin# prices o( ra. materials an& (uels2 Z han#e in (iscal 0ene(its2

.''ortunitiesQ
Z Potential (or e/pansion in the smaller to.ns an& other #eo#raphies2 Z Potential (or #ro.th throu#h increase& penetration2 Z Gro.in# tren& (or Qout o( homeH consumption2 Z De,era#e Nestle 7echnolo#y to &e,elop more pro&ucts that pro,i&e Nutrition3 =ealth an& 9ellness2

Marketing Pro ect ! #" !

0eferences
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Marketing Pro ect ! ## !