TERM PAPER REPORT SUBMITTED TOWARDS THE PARTIAL FULFILMENT OF

UNDER GRADUATE DEGREE IN BUSINESS

ADMINISTRATION

MARKETING STRATEGIES OF NESTLE

SUBMITTED BY- MANSI CHOPRA

BATCH- 2016-19

FACULTY GUIDE - MR. JITENDRA TOMAR

ENROLLMENT NO- A3906416173

COURSE - BBA (GENERAL)

Certificate of origin

This is to certify that I Mansi Chopra a student of Under Graduate Degree in

BBA(General) (2016-2019), Amity School Of Business,Noida has worked under the able
guidance and supervision of Mr. Jitendra Tomar.

This term paper report has the requisite standard for the partial fulfilment the Under
Graduate Degree in Business Administration. To the best of our knowledge no part of this
report has been reproduced from any other report and the contents are based on original
research.

I am aware that in case of non- compliance ,Amity School Of Business is entitled to

cancel the report

Student
(Signature)
Faculty guide
(signature)

Acknowledgement
I express my sincere gratitude to my faculty guide
Mr. Jitendra Tomar for his able guidelines , continuous support and cooperation
throughout my project, without which the present work would not have been possible..

Student
(Signature)

DECLARATION

I, MANSI CHOPRA student of BBA from Amity Business School, Amity University Uttar Pradesh
hereby declare that I have completed Dissertation on “ MARKETING STRATEGY OF NESTLE”
as part of the course requirement .

I further declare that the information presented in this project is true and original to the best of my
knowledge.

Enroll. No: A3906416173

Program: BBA (GENERA)
 TABLE OF CONTENT

CHAPTER NO. SUBJECT PAGE NO

1.0 EXECUTIVE SUMMARY

2.0 COMPANY PROFILE

a. INTRODUCTION
b. MISSION STATEMNENT

3.0 RESEARCH OBJECTIVES

4.0 RESEARCH METHODOLOGY

A. Organisational structure.
B. Nestle products.
C. Marketing strategies
D. Marketing mix

5.0 SWOT ANALYSIS

6.0 RESEARCH FINDINGS

7.0 CONCULSION

8.0 REFERNCES ANNEXURES

Marketing Strategies of Nestle

 Executive Summary :

Nestle is one of the most ranked FMCG company , its ranked no.1 in the world in food and
beverage sectors. Nestle is formed after the merger of the Fraine Lactée Henri Nestle,
founded by Henri Nestle in1866 and Anglo-Swiss Milk Company.

The reports tells about the business portfolio and growth strategies of the company. When
the company was being ranked in market as the top most leading company , there might
be various things the founder had to look at while bringing the company to the top most
leading company in food and beverage sector. Nestle used various strategy such has
positioning strategy and market segmentation . This report gives us the industry profile and
its SWOT analysis to tell its strengths, weaknesses, opportunities and threats . Nestle has
produced its various products to attract large number of customers and that to from
different age groups , they did so to get an idea what people prefer most from them .

They use take recommendations and suggestions from their regular customer cause they
wanted to make sure that their customer should feel special and that strategy lead them to
be the most reputed company in terms of providing good services and making necessary
changes as the time and taste and preferences of its customer changes.

Introduction :
Nestle is a Swiss based transnational food and
beverage company , which has its headquarter
in Vevey, Vaud , Switzerland. Its one of the
most largest food processing company which is
measured in terms of its revenues and other
metrics , since 2014. It is ranked No. 64 on the
fortune global 500 in 2017 and No.33 in 2016.

Nestle products are served worldwide. The

products include baby food, medical food, bottle water, breakfast cereals, coffee and tea,
confectionary , dairy products, ice cream , frozen food, pet food and snacks. 29 of the nestle
brand products has an annual sales of over 1.1 billion US $ that includes Nespresso ,
Nescafé, Kit Kat , Smarties, Nesquik and Maggi. In total nestle has 447 factories that
operates in 194 countries and it has a total of 3,39,000 people as employees . Nestle is
the main shareholder in L’Oreal which is the worlds largest cosmetics company.

Nestle was formed in 1905 by the merger of the Anglo- Swiss Milk Company that was established
in 1866 by the brothers George and Charles Page and Farine Lactee Henri Nestle . The came in
action during first and second world war , expanding its offerings such as condensed milk and
infant formula products . The company had made a number of acquisitions which includes Crosse
and Blackwell in 1950, Findus in 1963, and Gerber in 2007. Nestle has a primary list of 6 Swiss
exchange and constituent of the Swiss Market Index.
 Mission Statement of Nestle:

“ Nestle is dedicated to provide the best food to the people throughout their day ,
throughout their lives and throughout the world. With their unique experience of
anticipating consumers needs and creating solutions , nestle contributes to your well-
being and enhances the quality of life “

RESEARCH OBJECTIVES :

• To see how a brand is seen through characteristic based perceptual maps utilizing
discriminant examination.

• To plan which mark is more grounded concerning which measurement (Taste ,

Quality , Price , Packaging , Availability)

• To build up conditions for promote forecast of Brand Preference if contributions on

properties are known.

• To test huge affiliations show among factors at critical levels and to test their
relationships and diminishment in blunder.

• To plot property vectors close by remarkable brand positions and derive comes
about in like manner.

RESEARCH METHODOLOGY
In order to study and analyse the above mentioned research objectives ,
A comprehensive study by was conducted to analyse brand preference with respect to
attributes by consumers.

SOURCES OF DATA
Sources of data was secondary information extracted.

RESEARCH DESIGN

The research designs implemented in this study are DESCRIPTIVE as well as CAUSAL.
The
descriptive study aims to understand the consumer behavioural pattern with respect to
consuming the products whereas Causal research aims to understand the association
between
certain key variables and their interdependence on each other.

Nestle products :

1. BEVERAGES :-

• Nescafe
• Nespresso
• Nesquik
• Milo
• Nestle pure life
• Deer park
• Vittel
• Nestle aquarel

2. MILK PRODUCTS, NUTRITION

• Nido
• Nespray
• La Lechera
• Carnation

3. PREPARED DISHES , COOKING AIDS AND PET CARE :-

• Maggi
• Stouffers
• Buitoni
• Herta
• Thomy
• Crosse and blackball
• Winiary
• Friskies

4. CHOCOLATES AND BISCUITS :-

• Kit kat
• Smarties
• Lion
• Crunch
• Butter finger
• Orion
• Sao Luiz

Customer Orientation:
Nestle is a customer oriented company from the time its was founded till date. In 1866 it
had came up with the foods for babies which were unable to breastfeed and due to this
product many lives of babies were saved.

Cause of that customer started relying on the products and because of that nestle
production sales rose quickly , the quality of the product enhances and they keep on
introducing new products as per the period of times

Nestle is one of the companies to have an information system that commits the responses
of their customers towards theirs problems . They also try to look at their things which they
require from us .

Nestle marketing environment :

2. MICRO ENVIRONMENT :-
• Suppliers- provides raw materials , resources , unfinished goods and labours to
company in order to produce quality products and provide good services .
• Marketing intermediaries- they help to advertise , sell and distribute its products to its
end customers .
• Customer- nestle immediate customers are retailers and the grocery stores.
• Competitors- nestle major competitors are Petra foods limited , Yeo heap sang limited
and Mail dairy industry co.ltd.

2. MACRO ENVIRONMENT :-

• Political environment - nestle supports various programs that initiates towards the
protection of the environment.
• Cultural environment - nestle uses an eco friendly device to put labels on the
products so that they are easily removable , for advertising and sales promotions nestle
tries to use pop advertising materials.
• Technological environment - currently nestle uses high technology and machinery
which one of its key success factor . It uses this to provide customer with health
products and keep environment clean.
• Economical environment- major economic factor which effects the sales of nestle
production is inflation and that too in Pakistan.

Marketing strategy :
Nestle uses the societal marketing concept . Nestle designs and launches the products
according to the needs of the society . It meets the responsibilities of the society.

For instance, in Muslim countries the company makes sure to write ‘Hilal’ at the packaging
of the products.

In African countries nestle has built water purification to provide the clean and purify water
at the poor nations and that too free of cost.

Market Segmentation:

• Geographical segmentation- the company had launched two of its most selling
products for two different seasons , that is Nescafe Ice for summer and Nescafe classic
for winter . These two different brand of coffee are special made foe those people who
love to drink coffee in summer and as well as winter.
• Demographic segmentation- the company did it segmentation according to age ,
occupation and income. As per age factor , nestle launched lectogen, cereal and nido
 for children below the age of 3 . Whereas Nescafe classic is made for the people who
loves to work very hard and whereas the income factor is concerned nestle segmented
their market based upon the customers earnings.
• Psychographic segmentation - nestle provide Kit Kat to those people who really
loves to eat chocolate and Nescafe 3 in 1 for those customers who are really busy and
don’t have enough time to make coffee with proper method.

Target market:
The target market will be upto 60 years of age and core target will be between 10-30 years
of age. A specific demographic target market will not be chosen for nestle jam ;instead of
that the goal would be to develop a product that could be used by customers of all age
group from babies to seniors. It will be a family product and especially for the families who
work and don’t have much time to cook meals.

Positioning Strategy :
• Product differentiation - nestle has variety of different products to target different
customers , as it provides 25 different types of Nido for children.
• Channel differentiation - nestle reaches its products to its customer through
salesman or transportation in respective market. So that there products are available
for there respective customers
• Image differentiation- Nestle logo is completely different from its competitors that is
accepted by its customers.
• People differentiation- Nestle employed people that are highly educated and well
trained.
• Service differentiation - it provides 24 hours of hot line service to its customer
which is much better that its respective competitors.

Advertising:
Nestle is doing the selective demand advertising that is intended to stimulate demand for
individual brands.
In the advertisement of NPL the message is given that, “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. “Solgan of NPL- JIYO! Kay yehi hay zindagi. “
Marketing Mix of nestle :

• PRODUCT-

Nestle products has been broadly

classified into 4 major types , namely:
3. Beverages - e.g.. nescafe
classic
4. Milk and milk products- e.g..
nestle everyday
5. Prepared dishes and cooking
aides - e.g.. maggi noodles
6. Chocolates - e.g.. kit Kat and
eclairs
Its products portfolio includes 8 of the 30 top selling confectionary brands e.g.. smarties,
polo, aero, milky etc.

• PRICE-

The sum of all the values consumer give up in

order to gain the benefits of having or using a
particular product or service . The prices of the
products are set according to customers earnings
.
The prices of the products are also kept on such
basis that there shouldn’t be any competition with
its competitors .

• PLACE-

Its one of the 4 elements of marketing mix . Distribution is the

process of making the product available for the use and
consumption by the consumer . They uses either direct means or
indirect means with intermediaries. Nestle has its excellent means
to distribute its products within Pakistan.
• Promotion -

Promotion refers to raising customer awareness of a

particular product or brand , generating sales and
creating brand loyalty .

Swot Analysis of nestle

products :

• STRENGHTS-

I. Its maintaining its quality and taste that has the same impact on customers
II. There is diversity in products and is economical
III. Has a strong brand name

• WEAKNESS-

I. The communication between the consumer and employe or the consumer and
company may be weak.
II. There is lack of awareness for the new product.

• OPPORTUNITIES-

I. Concentrating on distribution areas will increase the sales.

II. Increase in the product line by offering variety of products.
III. Building partnership and broading sales channel.

• THREATS-

I. Sharing of segments by the competitors.

II. Changing trend
III. Raising the prices of their raw materials.

CONCULSION :
The primary thought behind leading this entire investigation was to figure which mark is
more grounded concerning which measurement in the brain of shopper. In the wake of
leading quality based perceptual mapping , it might be effectively reasoned that
Cadbury's
has a solid remaining in the brain of purchaser with regards to estimating the chocolate
and
additionally its bundling. Taste savvy , buyers bolster Nestle. Amul as a brand does not
score
well on any of the ascribes and subsequently needs to survey its procedures. It confronts
extreme rivalry from Nestle and Cadbury's.
• We watch noteworthy relationship between respondent inclination for value choices
and customer buy areas , respondent inclination for value choices accessible and
chocolate
8

buy recurrence , respondent brand inclination and respondent inclination for value
alternatives. This infers shopper's choice to buy chocolates from a specific area is
controlled
by his desire to pay a specific cost and his recurrence of procurement. Picking a specific
brand by a buyer is affected by the amount he is prepared to pay for it.
• Taste , Price and Quality are characteristics that ought to be first on brain of makers as
they influence the purchaser's buy choice.
• It is watched that most respondants change over to another brand if their decision is not
accessible and greatest buyers buy chocolates from nearby kirana tores. Thus ,
organizations
need to fortify their disseminations at the ground level with a specific end goal to keep
clients fulfilled and mark steadfast.
• 55% of variety in Brand Preference is caused by characteristics like Taste , Price ,
Quality
, Packaging , Form , Brand. Organizations need to recognize independently , which of the
above variables they have to work upon , keeping in mind the end goal to pick up piece of
the overall industry and brand unwaveringness from shoppers.