A Summer Internship Report On “MARKERTING RESEARCH FOR CUSTOMER

NEED AND SATISFACTION” at Nestle India Ltd KANPUR

Submitted in partial fulfillment of the requirement of

MASTER OF BUSINESS ADMINISTRATION

SCIENCE AND TECHNOLOGY ENTREPRENEURS’ PARK

HARCOURT BUTLER TECHNOLOGICAL INSTITUTE

NAWABGANJ, KANPUR (U.P) – 208002

Academic Session

2016-2018

Dr. APJ Abdul Kalama Technical University, Luck now, Uttar Pradesh

Under The Supervision Of : Submitted by

Mrs. Rashi Saxena Nehal Pandey

Assistant Professor MBA

1
CERTIFICATE BY COMPANY

2
 CERTIFICATE BY COLLEGE

This is to certify that Nehal Pandey student of STEP-HBTI; KANPUR has completed her

Project report on “MARKERTING RESEARCH FOR CUSTOMER NEED AND

SATISFACTION” at “Nestle India Ltd.” in the year 2016-2018 in partial fulfillment of

Master of Business Administration. He has successfully completed the project under my

constant guidance and support.

Signature of Project Guide

3
 ACKNOWLEDGEMENT

With immense pleasure, I would like to present this project report of NESTLE INDIA

LTD.. It has been an enriching experience for me to undergo my summer training at

NESTLE , which would not have possible without the goodwill and support of the

people around. As a student of STEP-HBTI Kanpur I would like to express my

sincere thanks to all those who helped me during my practical training programme.

Words are insufficient to express my gratitude towards Mr. RAKESH JAIN the Regional

Manager (Marketing) of NESTLE INDIA LTD. I would like to give my heartily thanks to

Ms. RASHI SAXENA Faculty guide, who helped me at every step whenever needed, for

having spared his valuable time with me and for all the guidance given in executing

the project as per requirements.

At last but not least my grateful thanks are also extended to all my faculty members

for the proper guidance and assistance extended by them. I am also grateful to my

parents, friends to encourage & giving me moral support.

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 TABLE OF CONTENTS
S. PARTICULARS PAGE NO.
NO

1 Company’s Certificate 2

2 Institute’s Certificate 3

3 Acknowledgment. 4

4 Declaration 6

5 Preface 7

7 Executive Summary 8-9

8 Introduction 10-13

9 Objective 14-15

10 Company Profile 16-28

11 Sales Report 29-37

12 Research Methodology 38-39

13 SWOT Analysis 40-43

14 Data Analysis & Interpretation 44-66

15 Finding 67-69

16 Conclusion 70-71

17 Suggestion 72-73

18 Limitation 74-75

19 STP 76-102

20 Bibliography 103-104

21 Questionnaire 105-108

5
 DECLARATION

I hereby declare that the project titled “MARKETING RESEARCH FOR CUSTOMER

NEED AND SATISFACTION’” is an original piece of research work carried out by me

under the guidance and supervision of Mr. RAKESH JAIN. The information has been

collected from genuine & authentic sources. The work has been submitted in partial

fulfillment of Master of Business Administration of AKTU, Lucknow.

NEHAL PANDEY

Roll No. 1618170063

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 PREFACE

As a part of the MBA curriculum & in order to practical knowledge in the field of management, we

are required to make a report on I hereby declare that the project titled “MARKETING

RESEARCH FOR CUSTOMER NEED AND SATISFACTION’ The basic objective

behind doing this project is to get k1nowledge about the customer satisfaction level.

In this project report we have included various concept, effects, and implications regarding the

organization.

Doing this project report helped me to enhance my knowledge regarding the work in to the attitude

of employees towards the organization policies & organizational climate. Through this project

report I came to know about team work & the role of devotion towards specified task.

7
EXECUTIVE SUMMARY

8
This is an internship report regarding the Products of NESTLE including beverages coffee water

cereals chocolates confectionary beverages baked goods and health care nutrition and water. It

starts with an introduction about Nestle followed by the history Nestle. It gives a briefing about

all the brands of Nestle.

This report also includes the market mix of the products. All the 4Ps of marketing mix for the

product has been discussed and explained to reveal the significance of its pricing, products,

placing and promotional activities along with the strength and weaknesses of the organization.

The report shows an internal architecture of the working of the nestle confectionary business. It

gives a detail about the supporting department that has helped the business in their daily

working.

Also it discusses the objectives, policies of the organization along with their competitors at

national level. There are also some suggestions/recommendations for the business.

In the end there is a briefing about the internship project that was assigned during the required

internship to me.

9
INTRODUCTION

10
Food is core element in our daily lives. Not only does it enable us to survive, but appropriate

amounts and quality also help to ensure a better standard of living by contributing to our health

and wellness. Consumer needs and expectations associated with a particular food product are not

fixed, but change with time and according to geographic region, culture and the various stages of

life. Ever since its foundation in 1866, Nestlé’s goal has been to keep in step with this constant

process of change. It reacts to new consumer requirements with innovative and continually

renovated products, and implements new scientific findings in tasty foods.

Nestlé’s relationship with India dates back to 1912, when it began trading as The Nestle Anglo-

Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in

the Indian market.

After India's independence in 1947, the economic policies of the Indian Government emphasized

the need for local production. Nestle responded to India's aspirations by forming a company in

India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestle

to develop the milk economy. Progress in Moga required the introduction of Nestle's

Agricultural Services to educate advice and help the farmer in a variety of aspects. From

increasing the milk yield of their cows through improved dairy farming methods, to irrigation,

scientific crop management practices and helping with the procurement of bank loans.

Nestle set up milk collection centers that would not only ensure prompt collection and pay fair

prices, but also instill amongst the community, a confidence in the dairy business. Progress

involved the creation of prosperity on an on-going and sustainable basis that has resulted in not

11
just the transformation of Moga into a prosperous and vibrant milk district today, but a thriving

hub of industrial activity, as well.

Nestle has been a partner in India's growth for over nine decades now and has built a very special

relationship of trust and commitment with the people of India. The Company's activities in India

have facilitated direct and indirect employment and provides livelihood to about one million

people including farmers, suppliers of packaging materials, services and other goods.

The Company continuously focuses its efforts to better understand the changing lifestyles of

India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness

through its product offerings. The culture of innovation and renovation within the Company and

access to the Nestle Group's proprietary technology/Brands expertise and the extensive

centralized Research and Development facilities gives it a distinct advantage in these efforts. It

helps the Company to create value that can be sustained over the long term by offering

consumers a wide variety of high quality, safe food products at affordable prices.

Nestle India manufactures products of truly international quality under internationally famous

brand names such as NESCAFE, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID

and NESTEA and in recent years the Company has also introduced products of daily

consumption and use such as NESTLE Milk, NESTLE SLIM Milk, NESTLE Dahi and NESTLE

Jeera Raita.

Nestle India is a responsible organization and facilitates initiatives that help to improve the

quality of life in the communities where it operates.

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Mission Statement

Nestlé’s business mission is to manufacture and market the Company's products in such a way as

to create value that can be sustained over the long term for shareholders, employees, consumers,

and business partners.

Motto of Nestle is “Good Food, Good Life”.

13
OBJECTIVES OF STUDY

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 Nestle does not favor short-term profit at the expense of successful long-term business

development.

 Nestle recognizes that its consumers have a sincere and legitimate interest in the

behavior, beliefs and actions of the Company behind brands in which they place their

trust, and that without its consumers the Company would not exist.

 Nestle believes that, as a general rule, legislation is the most effective safeguard of

responsible conduct, although in certain areas, additional guidance to staff in the form of

voluntary business principles is beneficial in order to ensure that the highest standards are

met throughout the organization.

 Nestle is conscious of the fact that the success of a corporation is a reflection of the

professionalism, conduct and the responsible attitude of its management and employees.

Therefore recruitment of the right people and ongoing training and development are

crucial.

 Nestle continues to maintain its commitment to follow and respect all applicable local

laws in each of its markets.

15
COMPANY PROFILE

16
Nestle India Ltd, one the biggest players in FMCG segment, has a presence in milk & nutrition,

beverages, prepared dishes & cooking aids & chocolate & confectionery segments. The

company is engaged in the food business. The food business incorporates product groups, such

as milk products and nutrition, beverages, prepared dishes and cooking aids, chocolates and

confectionery. Nestle India manufactures products under brand names, such as Nescafe, Maggi,

Milky bar, Milo, Kit Kat, Bar-One, Milkmaid and Nestea. The company has also introduced

products of daily consumption and use, such as Nestle Milk, Nestle Slim Milk, Nestle Fresh 'n'

Natural Dahi and Nestle Jeera Raita. The company's brands include milk products and

nutrition, prepared dishes and cooking aids, beverages, and chocolates and confectionery. Their

milk products and nutrition includes Nestle Everyday Dairy Whitener, Nestle Everyday Ghee,

Nestle Milk, Nestle Slim Milk and Nestle Dahi. Beverages Include Nescafe Classic, Nescafe

Sunrise Premium, Nescafe Sunrise Special and Nescafe Cappuccino. Nestle India is a

subsidiary of Nestle S.A. The company has presence across India with 7 manufacturing

facilities and four branch offices spread across the region. The four branch offices in the

country help facilitate the sales and marketing of its products. They are in Delhi, Mumbai,

Chennai and Kolkata. The company's head office is located in Gurgaon, Haryana. Nestle India

Ltd was incorporated in the year 1956. The company set up their first production facility in the

year 1961 at Moga in Punjab. In the year 1967, they set up their second plant at Choladi in

Tamil Nadu as a pilot plant to process the tea grown in the area into soluble tea. In the year

1989, they set up a factory at Nanjangud in Karnataka. In the year 1990, the company entered

into the chocolate business by introducing Nestle Premium Chocolate. In the year 1991, they

entered in joint venture floated by the parent in collaboration with BM Khaitan group to set up

facilities to manufacturing a range of Soya based products. In the year 1993, they set up a

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factory at Samalkha in Haryana. In the year 1995, the company launched the company's

worldwide legendary brand chocolate, Kitkat. The company commissioned two factories in

Goa at Ponda and Bicholim in the year 1995 and 1997 respectively. In the year 1999, the

company launched the product, Nestle Growing Up Milk nationally. In April 2000, they

forayed into the Ultra Heat Treated (UHT) liquid milk market. In the year 2001, the company

launched Nestle Pure Life bottled water. Within few months, they again launched their second

water brand-San Pellegrino - in the Indian market. The company also made their foray into the

iced tea segment. In the year 2004, a project has been initiated to upgrade the production

technology for infant nutrition products at the Samalkha factory. Nestle India Ltd recognized

for its outstanding performance in Exports by the Coffee Board of India in the Export Awards

2004-05 as the Best Exporter of Instant Coffee, Best Exporter to Russia & CIS Countries

(coffee) and Best Exporter for Far East Countries (coffee). The company bestowed the

UDYOG RATNA award by the PHD Chamber of Commerce and Industry to recognize

Nestle’s significant contribution to the economic development of Punjab for the year 2005. The

company set up a new department -the Channel & Category Sales Development (CCSD) to

develop new solutions for the various channels and customers and improve the implementation

of commercial plans in the market. In the year 2006, the company set up their seventh factory

at Pantnagar in Uttarakhand. In the year 2007, CNBC Asia presented the company with the

India Innovator of the year award. The company's four factories were awarded the

internationally recognized external certification ISO 14001 for adherence to environmental

processes and OSHAS 18001 for Health and Safety. In the year 2008, the company launched

Nestle Nesvita Pro-Heart Milk with Omega-3 in Mumbai. Nestle Nesvita Pro-Heart is part of

daily diet and has Omega-3 heart friendly nutrients scientifically known to help manage

18
cholesterol. As part of their ongoing commitment to offering best in class nutrition products to

Indian consumers, the company launched NESTLE NAN 3, a follow-up formula for older

infants. During the year, MAGGI PICHKOO Tomato Ketchup was launched in a unique easy

to handle day pack to drive affordability, taste and convenience for a larger number of

consumers. The company also launched another pioneering product, MAGGI Bhuna Masala, to

cook tasty and healthy everyday meals, more conveniently. The company also launched Nestle

Kitkat Mini and Nestle Bar One Mini, at Rs 3 price to expand the repertoire of offerings.

Similarly, they launched Nestle Kitkat Chunky at Rs15 to strengthen the range of wellness

oriented Nestle products that consumers can choose from. The company's three more factories

were awarded the internationally recognized external certification ISO 14001 for adherence to

environmental processes and OSHAS 18001 for Health and Safety. With this, all the seven

factories of the company now have ISO 14001 and ISO 18001 certifications. In the year 2009,

the company provided inputs to the group R&D for development of an innovative product

Maggi Bhuna Masala. They launched Maggi Nutri-Licious Pasta. During the year, Maggi

further leveraged their strengths to drive affordable nutrition and launched two new products,

namely, Maggi Rasile Chow and Maggi Masala-ae-Magic. They launched Nestle Kitkat in a

new unique single finger format and Nestle Much Guru pack at the higher price point. The

company acquired the Healthcare Nutrition business of Specialty Foods India Pvt Ltd with

effect from January 1, 2010. In the year 2010, the company expanded the installed capacity of

Milk Products and Nutrition by 3,983 MT to 147,546 MT. Also, they increased the installed

capacity of Prepared Dishes & Cooking aids by 14,028 MT to 205,017 MT. In the year 2011,

the company increased the installed capacity of Milk Products & Nutrition by 14,561 MT to

162,107 MT, Prepared dishes & Cooking aids by 21,430 MT to 226,447 MT and Chocolate &

19
Confectionery by 3,283 MT to 36,052 MT.

Market

Market consists of people or organizations with needs to satisfy, money to spend, and

willingness to spend it.

Markets are made up of current and prospective customers, defined as any person or group with

whom a marketer has an existing or potential relationship.

Analysis of Market

Analyzing the market means getting the information about the current market trends. The needs

and wants of the customers are identified; the availability of the products is monitored as well

as information about the competitors is gathered through this analysis. The image of the

product in the minds of the customers is also judged and then on the basis

There are different ways, which are adopted by Nestle to get the information of the market.

Sales Department

Sales department is a primary source of getting the information about the market. They actually

visit the market and find out that who are the competitors, and what strategies they are

adopting. They also collect the complaints of the customers and make sure the availability of

the product in the markets.

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Customer Service Department

For Every product there is customer service department. This is head office based department

i.e. every head office has its own department.

In this department, customer’s complaints are collected which are gathered through the sales

force or directly submitted by the customers. Then batch number is assigned to these

complaints and is transferred to the Marketing Department. If Marketing Department can’t be

able to solve the problem then these complaints moved to the Quality Assurance Department,

which is working in the Factory.

Nestle believe in maintaining regular contact with their consumers. This applies both to how it

presents its products and to how it addresses its consumers' questions and concerns. When

Henri Nestle prepared his first boxes of infant formula for sale, he put his address on the

packages so people would know where to go if they had questions. Today, Nestle’s Consumer

Relationship Panel with the words "Talk to Nestle" expresses the same commitment.

This is why Nestle have a worldwide Nestle Consumer Services network devoted to caring for

consumers. The employees have expertise in a wide range of areas such as nutrition, food

science, food safety and culinary expertise. They provide the prompt, efficient and high quality

service that consumers expect from Nestle. In addition, employees are taught to talk with

consumers and above all, to listen. Listening helps to understand what people want. Nestle uses

the insights gained from relationships with consumers to drive product development.

Nestle cares for its consumers because its success depends on meeting their needs and

21
expectations. Through listening and understanding, it can make products that they will want to

use all through their lives.

Research and Development Department

In Nestle, R&D departments are localized. Its head office is in Switzerland. Nestle has divided

the whole world into 3 zones each has its own R&D.

1. America

2. Europe

3. A.O.A. (Asia Oceania Africa)

The R&D in America Zone is in America itself, in Europe Zone, it is in France and in A.O.A.

Zone it is in Australia.

The customer complaints are forward to the R&D where research is conducted. The results of

the research and decisions are then transferred form R&D to localized offices.

Suppliers and distributors

To know about the market Nestle Pakistan limited has established the close relationship with

their suppliers who provide the raw material and the distributes who distribute the product in

the market. As these both have an up-to-date knowledge about the market as they have a close

22
interaction with the customers and also with the competitors.

Organizational Structure

23
Organizational structure is the formal framework by which jobs tasks are divided, grouped, and

coordinated. Nestle is a function-based organization. The tasks are divided into separate jobs

and then these jobs are grouped together under different departments i.e. fuctional

departmentalization is found in organization. Each major area is kept under the manager who is

specialist in that concerned field and is responsible for all activities, which that department

performs.

24
Organizational structure of Nestle is hierarchical :-

25
There is a chain of command that extends from upper organization levels to the lowest levels

and clarifies who reports to whom. The orders move from upward to downward and

26
suggestions move downward to upward direction. The continuous improvement section is

made for this purpose. It encourages employees to give their suggestions and share the new

ideas. The jobs are formalized; there are explicit job descriptions, numerous organizational

rules, and clearly defined procedures covering work procedures. But in spite of formal rules

and regulations, Nestle keeps on changing to keep a pace with the changing environment. So, it

is strict but not rigid organization. In effort to be more flexible and responsive, there has been

distinct trend in this organization toward decentralizing decision-making.

27
 Product Lines

Quality and nutritional value are the essential ingredients in all brands of Nestle. Millions of

people prefer Nestle products every day, happy with the addition to their wellness that they

bring. Nestle is giving its products in 10 different categories of food with 75 brands. These

food categories with product lines are:

Baby food (Cerelac), Beverages (Necscafe liquid, MILO, Buddy, Orange juice, Nestea),

Breakfast cereals, Chocolate and confectionery (KitKat), Dairy Products (Milkpak, NIDO,

EveryDay,), Prepared food (Maggi noodles), Bottled Water (Nestle Pure Life)

28
o

SALES REPORT

29
 Sales of CHF 78.7bn, up CHF 6.5bn (+9%)

 Above-target organic growth of 7.2%, real internal growth of 4.5%

 Food and Beverages: 6.8% organic growth

 Strong Nestlé brands allowed price increases to mitigate rising input costs

 Unchanged full-year outlook: above-target organic growth with sustainable margin

improvement

 New, globally-managed out-of-home business, Nestlé Professional, established

 Paul Polman, Nestlé's CFO, to head Zone Americas from JULY 2017

 James Singh, Nestlé's head of Acquisitions and Business Development, to

become CFO from JUNE 2017

Peter Brabeck-Letmathe, Chairman and CEO of Nestlé: "The Group's strong organic growth

continued over the third quarter, reflecting good performances across most product categories.

In spite of increasing input cost pressures, I remain confident that Nestlé will achieve above-

target organic growth and a sustainable margin improvement for 2007 as a whole, once again

demonstrating the strength of the Nestlé model.

Furthermore, I am very pleased to announce the establishment of Nestlé Professional, a new

globally-managed business unit, as an additional pillar of this company's long-term, profitable

growth strategy.

Finally, the appointment of Paul Polman as new head of Zone Americas and Jim Singh as

30
new CFO, together with the other changes to the Executive Board, creates a strong

management team under the leadership of the newly designated CEO, Paul Bulcke, which will

extend and broaden the successful developments achieved over the past years."

During the first nine months of 2007, consolidated sales of the Nestlé Group amounted

to CHF78.7 billion, an increase of +9% over the comparable period of 2006. Real internal

growth was strong at 4.5% and pricing added another 2.7%, resulting in an organic growth of

7.2%. The strength of Nestlé's brands allowed the Group to raise prices to offset rising raw

material costs. These price increases, together with the resulting slight dip in real internal

growth, reflect the Group's commitment to profitable growth regardless of market

circumstances. Foreign exchange contributed +0.9% to reported sales, while acquisitions, net of

divestitures, added another +0.9% to sales. The Group's Food and Beverages business achieved

organic growth of 6.8%, consisting of real internal growth of 4.2% and price increases of 2.6%.

31
 Sales by management responsibilities and geographic areas

Jan.-Sept.2007 Jan.-Sept. 2006 Jan.- Jan.-

Sales Sales Sept.2007 Sept.2007

in CHFmillions in CHFmillions(a) Real Organic

internal growth(%)

growth(%)

Food

- Zone Europe 20 711 19 371 + 1.7% + 2.5%

- Zone 23 799 22 540 + 3.5% + 7.5%

Americas

- Zone Asia, 12 206 11 434 + 5.1% + 8.7%

Oceania, Africa

32
Nestlé Waters 8 242 7 554 + 5.4% + 6.9%

Nestlé Nutrition 5 745 4 346 + 6.6% + 9.7%

Other Food & 2 534 1 977 + 21.3% + 23.3%

Beverages(b)

Total Food & 73 237 67 222 + 4.2% + 6.8%

Beverages

Pharma 5 474 5 004 + 9.2% + 10.3%

Group Total 78 711 72 226 + 4.5% + 7.2%

Sales by product categories

Jan.-Sept.2007 Jan.-Sept.2006 Jan.- Jan.-

Sales Sales Sept.2007 Sept.2007

in CHFmillions in CHFmillions(a) Real Organic

internal growth(%)

33
 growth(%)

Nestlé Nutrition 5 745 4 346 + 6.6% + 9.7%

Powdered and 12 849 11 715 + 7.5% + 10.0%

Liquid Beverages

Prepared Dishes 13 320 12 570 + 3.4% + 3.8%

and Cooking Aids

Milk Products 15 730 14 938 + 1.8% + 6.5%

and Ice Cream

Nestlé Waters 8 242 7 554 + 5.4% + 6.9%

Confectionery 8 376 7 734 + 2.6% + 5.4%

PetCare 8 975 8 365 + 4.1% + 7.1%

Pharmaceutical 5 474 5 004 + 9.2% + 10.3%

Products

34
 Group Total 78 711 72 226 + 4.5% + 7.2%

(a) see note at end of release

All calculations based on non-rounded figures

In the first nine months of 2007, the organic growth of Nestlé's total Food and Beverages

business (including globally-managed businesses such as Nestlé Waters, Nestlé Nutrition and

Nespresso, as well as Food and Beverages joint ventures) amounted to 3.8% in Europe, 8.3%

in the Americas and 9.5% in Asia, Oceania and Africa.

Sales by Zones: organic growth in Zone Europe (+2.5%) picked up over the third quarter as a

result of accelerating innovation in the region, while Zone Americas (+7.5%) and Zone Asia,

Oceania and Africa (+8.7%) both experienced strong organic growth, partly as a result of

price increases to compensate for higher raw material costs, especially milk.

Nestlé Nutrition: sales of CHF 5.7 billion, 6.6% real internal growth and 9.7% organic growth,

in line with the business' long-term target of 10%. Strong performances in Infant Formula and

Healthcare Nutrition continued, supported by a robust innovation and renovation

pipeline. NANpremium starter formulas, and Nestlé infant cereals enriched with probiotics to

strengthen infants' immune systems, did particularly well in their global roll-out.

Powdered and Liquid Beverages: sales of CHF 12.8 billion, 7.5% real internal growth and

10.0% organic growth. Coffee was strongly driven by innovation, notably by the continued

success of Nespresso and the successful launch of Nescafé Dolce Gusto in Europe. Nescafé

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Protect, a new soluble coffee with a higher antioxidant content sold mainly in Asian markets,

did particularly well. Milo experienced double-digit organic growth, not least thanks to the

reformulation of its Actigen E branded active benefit. Nesquik with an improved nutritional

profile was especially successful in the US.

Prepared dishes and cooking aids: sales of CHF 13.3 billion, 3.4% real internal growth and

3.8% organic growth. Maggi experienced strong organic growth in emerging markets, driven in

particular by popularly positioned products (PPPs) such as the reformulated, single

portion Maggi Noodles in India. In North America, frozen and chilled food continued to benefit

from strong innovation and consumer focus on health, with Lean Cuisine achieving double-

digit organic growth and Stouffer's growing at a high single-digit rate.

Milk Products and Ice Cream: sales of CHF 15.7 billion, 1.8% real internal growth and 6.5%

organic growth. This category saw the strongest price increases to mitigate input cost pressures,

and its performance was driven by higher value segments and innovation. NIDO, the world

leader in children's milk powder, experienced double-digit organic growth, with products

containing added probiotics and branded active benefits (BABs). Across all categories, sales of

products containing BABs grew by 18%. Ice cream grew strongly in Latin America, Asia and

Eastern Europe thanks to higher impulse sales and strong innovation, including products with

an improved nutritional profile, whereas higher prices in North America and a cool summer in

Western Europe softened sales volumes there.

Nestlé Waters: sales of CHF 8.2 billion, 5.4% real internal growth and 6.9% organic growth.

36
This somewhat lower organic growth rate compared to the first half is due to a cool summer in

several key European markets, although organic growth remains positive for the region as a

whole. Nestlé Pure Life experienced high double-digit organic growth in North America, and

there were further strong performances in the Middle East and Latin America. Super-premium

brands such as S.Pellegrino and Acqua Panna experienced double-digit growth, whereas home-

and-office delivery in Europe continued to encounter difficulties.

Confectionery: sales of CHF 8.4 billion, 2.6% real internal growth and 5.4% organic growth.

The acceleration of organic growth in this category was driven chiefly by the continued

upmarket move towards premium dark chocolate across the world, such as Nestlé Noir in

France and Perugina Nero in Italy. In geographical terms, Western Europe, especially the UK,

Latin America and Asia experienced the strongest levels of organic growth.

PetCare: sales of CHF 9 billion, 4.1% real internal growth and 7.1% organic growth. This

strong performance was driven by the continued upmarket movement of this category's brand

portfolio towards the premium and super-premium market segments. Top performing brands

included Beneful, Fancy Feast, Gourmet Gold, ONE, Pro Plan, Bakers and Dog and Cat

Chow.

Pharmaceutical Products: sales of CHF 5.5 billion, 9.2% real internal growth 10.3% organic

growth. Alcon and the joint ventures, Galderma and Innéov, continued to grow strongly.

37
RESEARCH METHODOLOGY

38
INTRODUCTION:

Research refers to search of knowledge. The pattern in which a result is carried out to arrive to a

conclusion or a final new relationship within in a particular framework is called research

methodology.

RESEARCH DESIGN:

Research design is the framework or plan for a study that guides the collection and analysis of

the data. It is a map or blue print according to which research is to be conducted. The research

design is given below:

1) NATURE OF RESEARCH:

The research design followed for this study is descriptive research for analyzing the collected

data, and in-depth research analysis was framed and various statistical tools and techniques were

also used for the purpose.

2) DESCRIPTIVE RESEARCH:

Descriptive research includes survey and facts, findings enquire of different kinds. The major

purpose of descriptive research is description of the state of affairs as it exists at present. The

methods of research utilized in descriptive research are survey method of all kinds, including

comparative and correlation methods.

39
SWOT Analysis

40
Strength :

1) Parent Support: Nestle India has got support from the parent company providing

successful details about each and every brand.

2) Brand Strength: It has many named brands like Nescafe,Cerelac and Maggi.

3) Product Innovation: Many new products are introduced continuously by expansion of

its product offerings. It became the innovative leader in the global world and nutrition

sector.

WEAKNESSES :

1) Exports : Rs 2571 m was the company export revenues by the end of 2003. Volatile

market for Nestle was present in Russia due to which there was a frequent hit in the over

all performance.

2) Supply Chain : Traceability is the main issue to be considered as the main issue has

chain management that is very complex. The hygiene,personnel and quality of edible

inputs is the requirement for food industry.

41
OPPORTUNITIES :

1) Expansions : The expansions of company to the smaller towns is possible to it. The

inherence advantage is present in the Nestle Company.

2) Product Offerings : The expansion of the product as that produced by the parent

Company is possible for it.

3) Global Hub : India could be considered as an export hub due to the manufacture of some

products is cheaper. Included the Health-based products are becoming popular in the

whole world.

THREATS :

1) Competition : Much competition is provided to the Company from sectors that are

organized as well as unorganized. To intensify the battle the food segment import duty

was reduced for better functioning of country in globalizes economy.

2) Changing Consumer Trends : Customers are spending low on the FMCG products

considering the trends increased. The situation might be handled late but the correct

decision is taken i.e., to follow the monsoon for increase in sales.

42
3) Sectored Woes : the recent markets that entered into the market are matured. By raising

the prices of fuels and raw materials, the packaging and manufacturing costs are being

increased.

43
ANALYSIS OF DATA

44
TABLE NO.1

Particulars respondents percentage

Government employee 9 7%

Private employee 58 43%

Self employee 18 13%

Students 40 30%

Others 10 7%

total 135 100

Table showing the occupation proportion of the respondents.

45
Chart no. 1

Sales
Govt. employee Pvt. Employee self employee students others

7% 7%

30%

43%

13%

Inference:

It is inferred that 43% people who responded for the questionnaire is private employee.

46
TABLE NO. 2

Particulars Respondents percentages

Male 77 57%

Female 58 43%

Total 135 100

Table showing gender proportion of the respondents.

47
CHART NO .2

Proportion of respondents
male female

43%

57%

INFERENCE:

The chart denotes 57% of respondents who answered the questionnaire are male.

48
TABLE NO. 3

PARTICULAR RESPONDENTS PERCENTAGE

Rs.10000-20000 21 21%

Rs.20000-30000 58 56%

Rs.30000 above 25 24%

Total 104 100

Table showing the income level of the respondents.

49
CHART NO.3

no.of repondents
60%

50%

40%

30%
no.of repondents

20%

10%

0%
10000-20000 20000-30000 30000-above

Inference:

It shows 56% of respondents income level falls between Rs.21000-31000

50
TABLE NO. 4

PARTICULARS RESPONDENTS PERCENTAGE

YES 122 90%

NO 13 10%

TOTAL 135 100

Table showing the number of respondents who are aware of NESTLE

51
CHART NO.4

No. of respondents
yes no

10%

90%

INFERENCE:

It shows that 90% of the respondents are aware of NESTLE.

52
TABLE NO.5

PARTICULARS RESPONDENTS PERCENTAGE

Yes 93 69%

No 42 31%

Total 135 100

Table showing the awareness of NESTLE products.

53
Chart no. 5

no.of respondents
yes no

31%

69%

INFERENCE:

It shows that NESTLE product is aware for 69% of people.

54
TABLE NO.6

PARTICULARS RESPONDENTS PERCENTAGE

Price 6 9%

Quality 60 43%

Packaging 9 6%

Fragrance 23 16%

Brand image 37 26%

Total 135 100

Table showing consumer’s buying aspect of NESTLE products.

55
Chart no.6

Customer preference
45%
40%
35%
30%
25%
20%
Customer preference
15%
10%
5%
0%

INFERENCE:

It is observed the customers prefer purchasing Nestle for its quality.

56
TABLE NO.7

Particulars Respondents Percentage

Strongly agree 12 9%

Agree 45 34%

Neutral 62 46%

Disagree 10 7%

Strongly disagree 6 4%

Total 135 100

Table showing customer’s 1st preferences towards NESTLE.

57
Chart no.7

Customer's 1st preference

50%
45%
40%
35%
30%
25%
Customer's 1st preference
20%
15%
10%
5%
0%
strongly agree neutral disagree strongly
agree disagree

INFERENCE:

It is inferred that only 12% of respondents agree NESTLE is there 1st preference.

58
TABLE NO.8

Particulars Respondents percentage

Advertisements 81 60%

Friends 24 18%

Internet 14 10%

Word of mouth influence 7 5%

Magazine 10 7%

Total 135 100

Table shows how respondents came to know about NESTLE.

59
Chart no.8

Customer influenced by ads

70%

60%

50%

40%

30%
Customer influenced by ads
20%

10%

0%
ads friends internet word of magazine
mouth
inflence

Inference:

It is found that NESTLE is influenced 60% of its customer through advertisements.

60
TABLE NO.9

Particulars Respondents Percentage

Yes 110 81%

No 25 19%

Total 135 100

Table showing whether NESTLE is costly.

61
Chart no.9

costly
yes no

19%

81%

INFERENCE:

It denotes that 81% of respondents feel that NESTLE is costly.

62
TABLE NO.10

Particulars Respondents Percentage

Excellent 25 19%

Good 73 54%

Fair 35 26%

Bad 2 1%

Worst 0 0%

Total 135 100

Table showing customer’s opion towards NESTLE advertisements.

63
Chart no.10

advertisement
excellent good fair bad worst
1%
0%
19%
26%

54%

INFERENCE:

It is inferred that 73% of respondents feel the advertisements is good.

64
TABLE NO.11

Particulars Respondents Percentage

Very often 7 5%

Regular 29 21%

Sometimes 56 42%

Occasionally 26 19%

Never buy 17 13%

Total 135 100

Table shows customer’s purchasing pattern of NESTLE.

65
Chart no.11

Purchases
45%

40%

35%

30%

25%

20% Purchases

15%

10%

5%

0%
very often regular sometimes occasionally never buy

INFERENCE:

The chart denotes 43% of the respondents purchase NESTLE only sometimes.

66
FINDINGS

67
 It is inferred that 43% people who responded for the questionnaire is private employee.

 The chart denotes 57% of respondents who answered the questionnaire are male.

 It is inferred that 56%of respondent’s income level falls between Rs. 21,000 – Rs.

30,000.

 It shows that 90% of respondents are aware of NESTLE.

 It is shown that NESTLE product is aware for 69% of people.

 It is observed that customers prefer purchasing NESTLE for its quality.

 It is inferred that only 12% of respondents strongly agree NESTLE is there first

preference.

 It is found that NESTLE influenced 60% of its customers through advertisements.

 It is denoted that 81% of respondents feel NESTLE is costly.

 It is inferred that 73% of respondents purchase NESTLE only sometimes.

 The chart denotes 43% of the respondents purchase NESTLE only sometimes.

68
 It is observed that only 54% of respondents are aware of the ambassador, 16%with wrong

answer and other 30% is nil.

 It is inferred that 54% of respondents are aware of men’s products.

 It is observed that the satisfactory level of 47% majority respondents is neutral.

 The chart denotes 52% of respondents feel the price of NESTLE is high.

 It is found that only 19% of respondent’s budget is above 500.

69
CONCLUSION

70
The various tests conducted on the data obtained from the implementation of the questionnaire

allowed me to understand the various drivers for purchasing personal care products. The author

could identify that a high level of brand awareness is an important driver with regard to

influencing purchasing behavior. A few analyses with regards to desirability in the levels of

desire according to ethnicity. This was shown that the ethnic group which had the most desire for

the brand also displayed the most positive behavior with regard o purchases. Further tests were

performed which gave a clear indication that it is possible to see the effect that a favorable

perceptions of the corporate/ product NESTLE brand has an influencing behavioral intention and

ultimately has the end behavior .In terms of identifying whether or not the current value

proposition of NESTLE is suited to the target audience the overall impression of the author is

that it would be a strategically important move if NESTLE were to try to develop a stronger

emotional bond with in which to ‘sell’ to the consumer unique self expressive benefits which can

be gained when using NESTLE brand products. They survey also releaved the weaker presence

of NESTLE amongst the black ethnic group. The action should lead to long-term strategic and

market related benefits.

71
RECOMMENDATION

72
The author suggests that Nestle concentrates on marketing and communication efforts and

adjusts its advertising accordingly , in order to reflect a more accepted brand imagery for the

ethnic group with respect to the NESTLE , through meeting the desires, social and self-

expressive needs of this gropu more accurately. By identifying what it is that this segment values

the more in personal care products, the brand can adjust its value proposition accordingly in

order to increase its market share.By providing a superior value proposition and meeting the

problems, desires and needs of thr consumer more appropriately, the brand can head towards

enhacing and improving the consumer satisfaction and loyalty metrics. The survey did give an

indication that the respondets valued functionally and emotionally benefits the most when using

NESTLE products but it is more important for the organization to keep in mind that in this

industry , functional benefits are very easily initiated. The organization has a more endurable ,

and sustainable competitive advantage when they consider there brand from a product

perspective, an organization perspective as well as a symbolic perpective. When the brand only

fixates on product at hand they are very susceptibleto imitations.

73
LIMITATIONS OF STUDY

74
 The survey was limited to Kanpur city due to time limitations.

 The study was conducted under of assumptions that the information given by the

respondents in authentic.

 The respondents were reluctant to answer due to their busy schedule.

 Many respondents were biased in their responses.

75
STP (Segment, Target and Position)

76
Market Segmentation

Market segment consists of a large identifiable group within a market with similar wants,

purchasing power, geographical location, buying attitudes, or buying habits.

In a total market, there is always some diversity among the buyers. Within same general market

there are group of customers, market segments, with different wants, buying preferences,

product use behavior. In some markets these differences are relatively minor, and a single

marketing mix can satisfy benefits sought by the consumer.

The market segment is based on need based and it’s targeted for every one who cares for his/her

life and wants to maintain good health.

Target Market

After the company has segmented a market, management must next select one or more segments

as its target markets. The company can select any one of the tree strategies i.e. Market

Aggregation, single segment concentration, or multiple segment targeting. The target market

consists of upper lower class to upper upper class due to their purchasing power and company is

following multiple targeting strategy which includes mainly two focus groups i.e. home & office

consumption especially for bulk water.

Positioning

After identifying the segments and then selecting one or more to target, the marketers must next

decide what position to pursue.

77
“A position is the way a firm’s product, brand, or organization is viewed relative to the

competition by current and prospective customers.” When positioning a product the marketer

wants to convey benefits most desired by the target market.

Q.How Nestle is positioning NPL?

Nestle is a food company and its logo is “Good Food, Good Life”. The basic concept, which it

is giving to its customers, is the quality food that if food would be good then life would also

become good i.e. a good health.

The name of mineral bottled water is Nestle Pure Life. This name itself conveys the message

of the Purity to its customers. Nestle is has ever been trying to establish an image of purity and

safety about its products. Through advertising campaign same message is being tried to

communicate to the target customers who are health conscious and want to lead a healthy and

happy life. The current slogan of NPL is JIYO! Kay Yehi Hay Zindagi. The message, which is

conveyed to the customers, is that NPL is Hope, Happiness and Trust. The purpose of all these

slogans and messages is to establish the image of pure and quality water in the minds of the

customers on which they can trust and can get the happiness and make their life hopeful.

Backed up by the best possible product quality and food safety standards, Nestle promotes

consumer health and well being while at the same time adhering to regional traditions with

regard to taste and pleasure.

78
With the objective of ensuring optimal nutrition, Nestle takes into account the consumer’s

increasing expectations with regard to food, but it also makes a contribution to good health and

illness prevention that extends above and beyond the traditional concerns of sustenance, pleasure

and convenience.

In line with Nestle’s global philosophy, Nestle Pakistan is proud of its commitment to excellence

in product safety and quality and to providing value and services to its consumers. Nestle

Pakistan operates in many ways but people, products and brands are the main flag bearers of the

Company’s image.

Nestle motivates the people to drink NPL by telling their customers about the importance of

water, which is pure and safe (clean). Like;

Hydration, Support and Performance

Until the 1970s, athletes were advised not to drink liquids during sports activities. We now know

that this can impede performance and can sometimes even be harmful to health. The Nestle

Water Institute has developed a computer program designed specifically to maintain optimal

levels of hydration during exercise and strives to raise athletes’ awareness of the essential role of

good hydration before and after exertion to maintain certain water level in body.

79
You are what you drink!

Drink a glass of water20 minutes before your meals and you will not eat as much. Or, when you

feel tired, or have a craving for sweets, a glass of water will do the trick. This is a simple, healthy

and effective way to lose those extra pounds!

Drink to Health

Pure, safe water is essential to good health. Water helps maintain your energy, vitality and

prevents fatigue. Make sure your children drink plenty of pure, safe water every day.

Best Thirst Quencher!

Make sure you drink plenty of water before, during and after physical activity. Drink before you

feel thirsty and drink cool water as it helps lower body temperature. Always carry a bottle full of

pure, safe water with you.

Cool Down!

Remember, only pure, safe water refreshes you best. Caffeinated and sweetened drinks are not

the answer to thirst. These beverages act as diuretics, causing the body to lose water and

contributes to dehydration.

Develop a Hydration Habit!

80
Soft drinks, sweetened or caffeinated beverages don’t count as your daily water intake. Always

keep a bottle full of pure, safe water with you as you go about your daily activities. Drink water

when you wake up, with every meal and bedtime.

Radiant and Clear!

Water is the ultimate beauty tool for radiant and clear complexion. It helps flush away impurities

that cause skin problems. Your skin needs water for elasticity. Drink 6-8 glasses of water to

prevent your skin for becoming dry and prone to wrinkles.

The customer comes first

Nestle wants to win and keep customers: distributors, supermarkets, hotels, and shopkeepers and

the final consumers. They have very different requirements. Trade customers expect excellent

service, correct information and timely delivery. Consumers consider taste, appearance and price

when they make their choice. Nestle task is to understand what customers want and respond to

their expectations rapidly and effectively. It serves various groups of consumers and there is

demand for NPL at different levels of perceived quality and price. All customers, however,

expect value for their money – good quality at a reasonable price.

Nestle is offering quality to customers. It also means environmental quality. Nestle shares

society’s concern for the environment and is committed to environmentally sound business

practices throughout the world. Customers are central focus of Nestle and it must always respect

their needs and preferences.

Quality is a competitive advantage

81
This is competitive world and must never forget that customers have a choice. If they are not

satisfied with a Nestle Pure Life, they will switch to another brand. Its goal, therefore, is to

provide superior value in every product category and market sector in which they compete.

Quality is a joint effort

Operating companies are fully responsible for maintaining agreed quality standards. Not only

Production units, but also Marketing, Purchasing, Distribution and Sales have a vital role to play

in providing quality to customers. This implies a thorough knowledge of the products and

services we offer. Quality policy and principles, the mandatory standards and the recommended

tools for implementation are laid down in the Nestle Quality System, which is applicable

throughout the group. Further directions are given through instructions, norms and guidelines,

often specific to a product. Our business products, such as raw material producers, packaging

suppliers, contract manufacturers and distributors are expected to share our concern for Quality.

They too must set up an adequate quality system, so as to meet requirements.

Every function and department in the company as well as Nestle business partners must share the

quality efforts. Nestle people says,

At Nestle, Quality is our first priority. Let us practice it every day.

Major Competitors

Competition typically is defined as among forms within an industry producing products that are

substitutes for one another. Therefore, the identification and evaluation of marketplace

competitors is a key element of strategic marketing and a vital element of the corporate survival.

82
Nestle is the market leader in the water industry. It is the first company which launched bottled

water for first time in Pakistan and that’s why it has maximum market share than others because

of being pioneer in this industry. It is also leading the other firms in new product introductions,

distribution coverage, and promotional intensity.

For different product categories there are different competitors of Nestle. Nestle pure life (NPL)

major competitors at this time who are also offering their water product in market are following:

 Pepsi is offering Aqua Fina

 Askari water

There are also other small competitors as well e.g. Classic, Nova etc which have very low market

segements.

According to market view, competition is defined as:

The competition between the firms, which are satisfying the same customer, needs.

So according to concept the competitors of NPL are all those companies, which are satisfying the

need of thrust of the customers. Beverages companies like unilever, Tapal danedar, Pepsi, Coca

cola etc. also come in this kind of the competition.

83
Market Share

 NPL share is 78%.

 Pepsi Aqua Fina share is 15%

 Askari Water has share of 2.9%.

 Remaining 4.1 % is for all other competitors.

Marketing Strategy

For each target market, management must design a Marketing strategy, which includes the

designing of the marketing mix. The Marketing Mix is the combination of multiple aspects of the

following four elements: a product, how it is distributed and promoted, and its price. These four

84
elements are intended to please the target market(s) and, equally important organization

marketing objectives.

The Company's strategy is guided by several fundamental principles. Nestle'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.

Nestle is committed to the following Business objectives in all countries, taking into account

local legislation, cultural and religious practices:

 Nestle's business objective is to manufacture and market the Company's products in such

a way as to create value that can be sustained over the long term for shareholders, employees,

consumers, and business partners.

 Nestle does not favor short-term profit at the expense of successful long-term business

development.

 Nestle recognizes that its consumers have a sincere and legitimate interest in the

behavior, beliefs and actions of the Company behind brands in which they place their trust, and

that without its consumers the Company would not exist.

 Nestle continues to maintain its commitment to follow and respect all applicable local

laws in each of its markets.

To achieve these objectives the product, price, place and promotion strategies for Nestle Pure

Life are as following:

85
Product Strategy

Anything offered to a market for attention, acquisition, use, or consumption that might satisfy a

need or want.

Product is set of tangible and intangible attributes, including packaging, color, price,

manufacturing, prestige, retailing, services, etc. which the buyer may accept as offering

want is satisfied.

Nestle is offering the products, which comes under the category of fast moving consumer

goods (FMCG).

Nestle is committed to offering consumers high-quality food products that are safe, tasty

and affordable. The Nestle Seal of Guarantee is a symbol of this commitment.

To be successful in marketing, producers must need carefully planned strategies for their

products. Now the question is that how Nestle has planned the product strategies for NPL.

Positioning the Product In relation to the attribute

Nestle is positioning its water as pure and safe water, which is essential to good health. They say

that Trust Nestle Pure Life and also Nestle pure life is Happiness, Hope and Trust, this is the

message which they are giving in their advertising campaign.

Nestle also claims that NPL is Pakistan’s favorite water and currently their slogan is JIYO! kay

yehi hay zindagi. On basis of these, it is said that Nestle is positioning in relation to the attribute

and quality of the product.

86
Its basic foundation is unchanged from the time of the origins of Company, and reflects the basic

ideas of fairness, honesty, and a general concern for people.

Product Line Expansion

Product line expansion is accomplished by increasing the depth (variety of sizes, colors, models)

within the product line.

Nestle is offering variety of sizes in NPL product line, which are as follows:

Retail line:

1.5 liters

0.5 liters

0.2 liters (Recently launched)

Home and Office Line:

It is also comes under Nestle Bulk category.

3 Gallon

5 Gallon

The year 2005 saw the successful completion of yet another year

of outstanding business for NESTLE PURE LIFE both in retail with 0.5 and 1.5liter bottles with

87
the introduction of a new product i.e. 0.2 liter bottle and direct home and office delivery with 19

liter bottles. The exceptional performance of the brand is the result of expanding national

distribution and an increasingly loyal customer bases. The brand has revolutionized the Pakistani

market by tapping the real consumer need for pure, safe and healthy water and has successfully

dominated a key strategic business in Pakistan.

Product Life Cycle

Product life cycle consists of the aggregate demand over an extended period of time for all

brands comprising a generic product category. Product life cycle is divided in four

stages.Introduction:

During introduction stage, sometimes called the pioneering stage, a product is launched into the

market in a full-scale marketing program.

Growth:

In the growth stage, or market-acceptance stage, sales and profits rise, frequently at a rapid rate.

Competitors enter the market, often in large numbers if the profit outlook is particularly

attractive.

Maturity:

During first part of the maturity stage, sales continue to increase, but at a decreasing rate. When

sales level off, profits of both producers and middlemen decline. The prime reason is intense

competition.

88
Decline:

In this stage sales volume decreases and losses become grater than the profits. Small competitors

normally quit from the market at this stage and only large and strong remain moderately

successful in decline stage.

NPL is at the growth stage of the product life cycle. Large and small both kinds of competitors

are entering in the market. Sales volume and market share is increasing rapidly. Last year, the

sales of water were 8000 tons and now this figure is raised up to 14000 tons.

Branding

A brand is a name and/or mark intended to identify the product of one seller or group of sellers

and differentiate the product from competing products. Branding reduces the price competition.

Nestle is using following branding strategies:

The company name combined with a product name:

A Nestle brand name on a product is a promise to the customer that it is safe to consume, that it

complies with all regulations and that it meets high standards of quality.

Branding for Market Saturation:

NPL is categorized as NPL Home and Office (HOD) in bulk (in gallons) and NPL for retailers

i.e. easily carrying bottles of small sizes. These multiple brands are necessary to penetrate

separate target markets.

89
Packaging, Design, Color

Packaging consists of all the activities of designing and producing the container or wrapper for a

product. Packaging is intended to serve vital purposes:

Packaging connotes pleasure and attraction. By adding value to the product, the shape of the

bottle contributes to building brand identity. NPL round bottle and the classic elegance of bottle

are instantly recognizable. Constant research into materials and styles generates innovative

packaging in ever more attractive shapes, textures and colors. Renovation in design, graphic

identity and labels helps set new standards and energize brands by anticipating trends in

consumer tastes. By adopting a new dynamic design, a renovated and modernized square bottle

is lunched by Nestle. Packaging practicality is a key factor for

success.

Beyond the basic requirements – strength, water tightness, etc. – ease of daily use is a subject of

regular research. Innovation in this area can focus on transportation convenience, making the

pack more comfortable to carry the bottle.

Packaging is an essential protection. It guarantees product safety and quality from manufacturing

through warehousing and distribution up until the end consumer. It is particularly crucial in

preserving water’s original purity over time. Several of Nestle Waters’ research programs aim to

optimize material performance, while a battery of tests and ever more innovative capping

techniques guarantee consumer safety on a daily basis.

90
In addition to this primary role, packaging fulfils several complementary functions, including

product identification and enhancement, practicality, consumer information, functionality to suit

changing lifestyles, and so on. Given greater diversity in packaging types and quality, along with

the emergence of new consumption patterns, packaging must also meet new ecological

challenges. In this context, Nestle Waters continue its efforts to develop more environmentally

friendly bottles.

This responsible corporate policy relies on a dual approach: reducing both packaging weight and

energy requirements during the manufacturing process while considerably increasing the

quantity of material recycled.

Labeling

A grade label is used in case of NPL. Grade label identifies the product’s judged quality with a

letter, number, or word. Nestle is using different phrases words to show the quality of the

product. Like Trust, Happiness, Pure, Pakistan’s favorite water, safe, healthy and Premium

drinking water.

Quality

There’s no agreement on a definition of product quality, even though it is universally recognized

as significant. Quality is a relative term and it varies from person to person due to the personal

interests; what one likes, another may dislike. But one thing is common that when an

organization fulfills the expectations of the customers through its products then the image that

organization is established as a quality-delivering organization. The same case is with NPL it is

satisfying the needs and expectations of the customers through its standardized products.

91
Everyday, millions of people all over the world show their confidence on Nestle by choosing

Nestle Pure Life. This confidence is based on quality image of Nestle and a reputation for high

standards that has been built up over many years.

Nestle commitment to product quality remains the corner stone of its business philosophy. In

Pakistan too the Company has all along been committed to achieving the highest quality of its

products. As a part of this effort, in 1993, the Company embarked upon the “farm to

table”quality concept – the guarantee about the quality of Nestle products up to the time of

consumption by the consumer. Nestle expect this concept to result in its product becoming

theproduct of choice for its consumers.

Quality is the cornerstone of NPL success:

Every product on the shelf, every service and every customer contact helps to shape this

image. A Nestle brand name on a product is a promise to the customer that it is safe to

consume, that it complies Quality is the cornerstone of success.

Every product on the shelf, every service and every customer contact helps to shape this image.

A Nestle brand name on a product is a promise to the customer that it is safe to consume, that it

complies with all regulations and that it meets high standards of quality. Under no circumstances

will we compromise on the safety of a product and every effort must be made to avoid hazards to

health. Likewise, compliance with all relevant laws and regulations is a must and is not

negotiable. People, equipment and instruments are made available to ensure safety and

conformity of Nestle NPL at all times.

92
Nestle people says:

Quality is our most successful product. It is the key to our success, today and tomorrow.

Natural or treated, all of Nestle Waters’ bottled waters undergo the same strict quality controls

and adhere to different local and international regulations linked to their specificities.

Based at the Product Technology Centre (PTC) in Vittel in France, the Central Laboratory

carries out over 200,000 chemical and microbiological analyses every year. Linking two regional

laboratories, the Central Laboratory is not only a quality guarantee of the resource and the final

product, but also a centre of expertise for the hundred Nestle Waters’ production sites.

Price

“Price is the amount of money and/or other items with utility needed to acquire a product. and

utility is an attribute with potential to satisfy the wants.”

A product price influences wages, rent, interests, and profits. Some prospective customers are

interested in low prices, where as another segment is more concerned with other factors, such as

service, quality, value, and brand image. Consumer’s perception of quality may be influenced

not just by price but also by such factors as store reputation and advertising. Pricing objectives

may be:

Profit- oriented:

To achieve a target return

To maximize profit

93
Sales-oriented

To stabilize prices

To maintain or increase market share

Status quo-oriented:

To stabilize the prices

To meet competition

In developing a marketing program, management has to decide whether to compete primarily on

the basis of price or the non-price elements of the marketing mix.

Nestle has adopted following for setting the pricing of NPL:

Non-price Competition

Nestle is trying to maintain stable prices of NPL and attempt to improve its market positions by

emphasizing other aspects of their marketing programs. Of course, competitors’ prices still must

be taken into considerations, and price changes will occur over time. Nevertheless, the emphasis

of Nestle is on something other than price. To maintain this non-price competition Nestle is

developing distinctive, hopefully unique, products and to create a novel, appealing promotional

program. In addition, it emphasizes the variety and quality of the NPL, which they are offering to

customers.

94
Market Entry Strategies

The price of NPL is maintained constant over the period as the base for this is qualitative

product which over the time period has reaped more market by keeping price constant.

Discounts and Allowances

Discounts and allowances result in a deduction from the base (or list) price. The deduction may

be in the form of reduced price or some other concession, such as free merchandise or

advertising allowances. Discounts and allowances are common in business dealings.

Nestle (NPL) offers the Trade Discounts to it customers. Trade discounts sometimes called

functional discounts are deductions from the list price offered to buyers in payments for

marketing functions the buyer will perform. The examples of these functions are: storing,

promoting, and selling the product.

One-Price Strategy

NPL is using this special price strategy i.e. one-price strategy in which the company charges the

same price to all similar customers who buy identical quantities of a product. But for different

quantities the company is offering different price. Even prices are set for the NPL products.

Resale Price Maintenance

Some manufacturers want to control the prices at which middlemen resell their products; this is

termed as resale price maintenance. Nestle is also following this strategy. It is doing so to protect

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the brand’s image. They say that their control of prices provide middleman with ample profit

margins.

Place

Inn marketing strategy, Place means distribution of the products. It is a very important element

of the marketing-mix. Ownership of a product has to be transferred some how from the

individual or organization that makes it to the consumer who needs it and buy it. Goods also

must be physically transported from where they are produced to where they are needed. For this

purpose, middlemen are used. Middleman is a business firm that renders services related directly

to the sale and/or purchase of a product as it flows from producer to consumer. Due to these

middlemen, activities such as creating assortments and storing products can be shifted from one

party to another in an effort to improve efficiency. They are also able to carry out distribution

activities better or more cheaply than either producers or consumers.

A distribution channel consists of the set of people and firms involved in the transfer of title to

a product as the product moves from producer to ultimate consumer or business user.

Type of Distribution channel:

Diverse distribution channels exist today. The distribution channel used for distribution of NPL

by Nestle is:

Producer Wholesaler Retailer Consumer

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This is an economically feasible choice. Nestle Pakistan Limited has a strong network of

distribution and has a separate supply chain department. This comes under the term:

Market consideration

It is necessary to know about the current marketing trends and also about the competitors.

Product consideration

It is necessary to give the good quality of NPL.

Middleman Consideration

Water is necessity of life so in time availability of NPL to the customer is very necessary.

Company consideration

Nestle also has to take care of its objectives while selecting the channel i.e. quality service and at

reasonable distribution cost to get maximum profit.

Intensity of Distribution

There are many degrees of intensity__ ranging from intensive to selective to exclusive.

The Nestle (NPL) uses Intensive Distribution. The company is trying to sell its products

through every available outlet in a market, where a consumer might reasonably look for it.

As water is a product of daily usage so its availability at right time and at right place is very

important. Ultimate consumers demand immediate satisfaction from convenience goods and will

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not defer to purchase a particular brand. That’s why Nestle is using this intensive distribution. By

using this timely distribution many benefits the Nestle (NPL) is receiving, such as:

Improve customer service, which directly affects the demand.

Effective physical distribution management opens many revenues for company.

The strong and effective distribution channels has added value to product by both time utility and

place utility.

The Nestle brands are another strategic asset for Nestle Waters. They originated in the global

need for a safe family drinking water with a pleasant taste, affordable price and tailored to local

preferences. This need gave rise to a new multi-site production process for bottled water based

on a simple idea: a single brand of water produced at a variety of sites, thus reducing costly

logistical, warehousing and transport constraints – which are particularly high in the bottled

water sector – enabling consumers to enjoy the product at a more attractive price under a strong

brand identity.

Careful Management of distribution channels has resulted in helping for Nestle to keep the stable

prices of the Nestle Pure Life.

Promotion

It consists of a diverse collection of incentive tools, mostly short term, designed to stimulate

quicker or greater purchase of particular products or services by consumers or the trade.

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From marketing point of view, Promotion informs, persuades, and reminds prospective and

current customers and other selected audiences about a company and its products. The most

useful brand is failure if no one knows it is available.

Promotional Mix

A promotional mix is an organization’s combination of personal selling, advertising, sales

promotion, and public relations. An effective promotional mix is a critical part of all marketing

strategies.

Promotion, in whatever form it takes, is an attempt to influence. Nestle is using following

methods for promotion of NPL:

Advertising

It is non-personal communication paid for by a clearly identified sponsor promoting ideas,

organizations, or products. The most familiar outlets for ads used for the advertisement of the

NPL by Nestle are the broadcast (TV and Radio) and print media (news papers and magazines).

The Nestle also uses other advertising vehicles like billboards, T-shirts and, more recently the

Internet. Nestle has its own website which is giving the information about the different brand of

the company.

Nestle is doing the selective demand advertising that is intended to stimulate demand for

individual brands. In the advertisement the message is given that,

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There is one water, which gives you, hope, happiness and trust and that water is Nestle Pure

Life. It is pure, safe, and healthy water.

And in recent advertising campaign, their slogan is,

JIYO! Kay yehi hay zindagi.

On billboards the pictures of NPL advertisement seems so attractive, especially in summer

season across the roads that it motivates the customer to purchase it immediately.

Nestle has the internal advertising department as well as hire the services of the external

Media manager assisted by it’s assistant to devise all campaigns……

Sales Promotion

It is demand-stimulating activity designed to supplement advertising. It is paid for by the sponsor

and frequently involved a temporary incentive to encourage a sale or purchase. Many sales

promotions are directed at consumer. Nestle has designed it in away to encourage the company’s

sales force or other members of the distribution channel to sell products more aggressively.

Nestle Pakistan limited arranges concerts, trade shows, event sponsorship, in-store displays, and

discounts. In Nestle, a separate sales department is working. The function of this department is to

taking the sales orders, visiting the market, collecting the customer’s complaints and transferring

to the concerned department. They also make sure the availability of the NPL to the consumer at

right time and at right place.

Public relations

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It encompasses a wide variety of communication efforts to contribute to generally favorable

attitudes and opinions toward an organization and its products. Unlike most advertising and

personal selling, it does not include specific sales message. The targets may be customers,

stockholders, a government agency, or a special-interest group. Public relations can take many

forms, including newsletters, annual reports, lobbying, and support of charitable and civic

events.

Nestle is following all above mentioned public relations forms:

The company assists through donations such hospitals and organizations that provide services to

the poor and responds to distress calls by the government and NGOs for assistance to victims of

flood, earthquake, drought and other natural calamities.

The company arrange mil program for undernourished and sick children and mothers through

several NGOs and charitable organizations.

The company has initiated a tube well and hand pump installation scheme in selected rural areas.

It donates computers to schools for disadvantaged children run by NGOs and charitable

organizations.

To support the spread of education in rural areas, it undertakes Refurbishment Program of Govt.

operated primary and middle schools.

The Company regularly sponsors sports and cultural events, such as the International Polo

Tournament and SAF Games in the recent past.

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The company gives the extra gifts, calendars and diaries to the employees and customers for

public relations.

Publicity

Publicity is also a promotional method used by the Nestle. Publicity is specific form of public

relations that involves news stories about organization or its products. Like advertising, it

consists of an impersonal message that reaches a mass audience through the media. But several

features distinguish publicity from advertising. The company does not pay for it and it has little

or no control over this and it appears as news and therefore has grater credibility than

advertising. The company seeks for good publicity and frequently provides the material for it in

the form of news releases, press conferences, and photographs. When a picture of a company’s

CEO appears on the cover of business publication and it accompanied by a flattering article in

the magazine, it is often attributable to the efforts of the firm’s public relations department.

Integrated Marketing communication

Nestle is using the integrated marketing communication system. In this, company is trying to

coordinate all promotional efforts make an effective impact on the customer mind and to deliver

a consist message. The Nestle has incorporated several different promotional campaigns.

Depending upon the objectives and available funds, it undertakes simultaneous local, regional,

national, and international programs.

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BIBLIOGRAPHY

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BOOKS:

 Research Methodology – Thakur pub.

 Research Methodology – SBPD pub.

Websites:

 www.google.com

 www.wikipidia.com

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QUESTIONNAIRE

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NAME:CONTACT: NO.__________________

ADDRESS: ___________________________________________________________

 Which product first comes to your mind when you think of purchasing?

1. Amul

2. Nestle

3. Britannia

4. Others

5. From which source did you come to know about Nestle Products.

1. T.V Advertisement

2. Hoardings

3. Bus paintings

4. News papers

6. Are you aware of promotional offers conducted by Nestle?

1. Yes 2. No

7. Please choose below the factor which attracted you most at the Nestle Products.

1. Taste

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 2. Price

3. Quality

4. Availability of products

8. Which of the following factors influence in your purchase decision?

1. Offers

2. Quality of products

3. Effective services

4. Effective advertisements

9. Do you think the promotional activity of Nestle gives you clear message?

1. Yes 2. No

10. Will you advise anybody to purchase the Nestle product in your future?

1. Yes 2. No

11. Looking at the promotions of Nestle product does your purchase pattern changes?

1. Yes 2. No

12. Would you like to make your purchase under unexpected offers?

1. Yes 2. No

13. What is the response and behaviors of employees of Nestle?

1. Excellent 2. Good 3. Average 4. Bad

14. Rate the services provided by the Nestle Company?

1. Excellent 2. Good 3. Average 4. Bad

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 15. What do you think is the most important for “Feel Good Factor”?

1. Ambience 2. Smiling staff 3. Spacious 4. Culture

Any valuable

suggestion..........................................................................................................................................

.............................................................................................................

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