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Deogiri Institute of Management Studies, Aurangabad A Mini Project Report On To Study of Marketing Mix on Nestle” Submitted by Mr. Ajay Singh Shekhawat Roll no:-22 6
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Page 1: nestle summer training project

Deogiri Institute of Management Studies,

Aurangabad

A

Mini Project Report

On

“To Study of Marketing Mix on Nestle”

Submitted by

Mr. Ajay Singh Shekhawat

Roll no:-22

MBA I semester

Batch C

2011-2012

6

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Deogiri Institute of Management Studies,

Aurangabad

A

Mini Project Report

On

“To Study of Marketing Mix on Nestle”

Submitted by

Mr. Ajay Singh Shekhwat

Roll no:-22

MBA I semester

Batch C

Prof. Anchal Tyagi Prof. Jeevan Salunke Dr. Ulhas Shiurkar

Project guide HOD Director2011-2012

In partial fulfillment of the completion of the course of

Dr. Babasaheb Ambedkar Marathwada University, Aurangabad

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CertificateThis is to certify that, Mr. Ajay Singh Shekhawat is the

students of Deogiri Institute of Engineering And Management

Studies, Batch 2011-12. They have successfully completed the

Mini project report (CP109) on “To Study of Marketing Mix

on Nestle” and had submitted the report to Dr. Babasaheb

Ambedkar Marathwada University, Aurangabad.

In practical fulfillment of the course Master of Business

Administration (F.Y.1st semester) 2011-2012.

Prof. Anchal Tyagi Prof. Jeevan Salunke Dr. Ulhas Shiurkar

Project guide HOD Director

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Declaration

I, Mr. Ajay Singh Shekhawat here by declare that, the

Mini project report submitted by me in partial fulfillment

of MBA Degree course is genuine work.

It has not been submitted either fully or partially to

their or any other institute prior in any other connection I

have done the project as per the guidelines of our

respected guide.

Mr. Ajay Singh Shekhawat

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Acknowledgement

I, Ajay Singh Shekhwat here by thank my project guide,

Prof. Anchal Tyagi for guiding and encouraging me to

complete the Mini Project.

I also thank Prof. Jeevan Salunke (HOD) and Dr. Ulhas

Shiurkar (Director), Deogiri Institute of Engineering and

Management Studies, Aurangabad for encouraging and guiding

me through the Mini Project study.

Mr. Ajay Singh Shekhawat

Roll no:-22MBA I semester

Batch C2011-2012

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INDEX

Sr. No. Name Page No.

1 Introduction 12

2 VISION 14

3 MISSION 15

4 RESEARCH METHODOLOGY 16

5

MARKETING MIX PRODUCT PRICE PROMATION PLACE

1819222426

6 SWOT ANALYSIES 30

7 FINDING 32

8 SUGGESTIONS AND RECOMENDATIONS 33

9 CONCLUSION 36

10 BIBLOGRAPHY 37

11 ANNEXURE 38

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INTRODUCATION

Nestlé was founded in 1866 by Henri Nestlé and is today the

world's biggest food and beverage company. Sales at the end of

2005 were CHF 91 bn, with a net profit of CHF 8 bn. Nestlé employ

around 250,000 people from more than 70 countries and have

factories or operations in almost every country in the world. The

history of Nestlé began in Switzerland in 1867 when Henri Nestlé,

the pharmacist, launched his product Farine Lactée Nestlé, a

nutritious gruel for children. Henri used his surname, which means

’little nest’, in both the company name and the logotype. The nest,

which symbolizes security, family and nourishment, still plays a

central role in Nestlé’s profile. Since it began over 130 years ago,

Nestlé’s success with product innovations and business acquisitions

has turned it into the largest Food Company in the world. As the

years have passed, the Nestlé family has grown to include

chocolates, soups, coffee, cereals, frozen products, yoghurts, mineral

water and other food products. Beginning in the 70s, Nestlé has

continued to expand its product portfolio to include pet foods,

pharmaceutical products and cosmetics too. Today, Nestlé markets a

great number of products, all with one thing in common: the high

quality for which Nestlé has become renowned throughout the

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world The Company's strategy is guided by several fundamental

principles. Nestlé's existing products grow through innovation and

renovation while maintaining a balance in geographic activities and

product lines. Long-term potential is never sacrificed for short-term

performance. The Company's priority is to bring the best and most

relevant products to people, wherever they are, whatever their

needs, throughout their lives. Taste of Nestlé in each of the countries

where Nestlé sell products. Nestlé is based on the principle of

decentralization, which means each country is responsible for the

efficient running of its business - including the recruitment of its

staff.

That's not to say that every operating company can do as it

wishes. Headquarters involve sets the overall strategy and ensures

that it is carried out. It's an approach that is best summed up as:

'centralize what you must, decentralize what you can'. Nestlé is a

company which is present in all over the world but it has difference

and unique motto to deal in all over the world. Nestlé believes that

they should think about their organizations globally but they deal

with people by interacting with them locally.

“Thinking globally - acting locally”

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VISION

Nestlé's vision of making good food central to enjoying a good

healthy life for consumers everywhere. This implies gaining a

deeper understanding in many areas of nutrition and food research

and transforming the scientific advances into applications for the

company. Having a broad vision the company is doing its best for

their consumers to show the great sense of responsibility.

Nestlé’s aim is to meet the various needs of the consumer every day

by marketing and selling food of a consistently high quality.

The confidences that consumers have in our brands is a result of

our company’s many years of knowledge in marketing, research and

development, as well as continuity -consumers relate to this and feel

they can trust our product.

MISSION

“AT NESTLE, WE BELIEVE THAT RESEARCH CAN HELP US

MAKE BETTER FOOD SO THAT PEOPLE LIVE A BETTER

LIFE.

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MARKETING MIX

PRODUCT PLANNING

PRICE PLANNING

PROMATION PLANNING

PLACE(DISTRIBUTION) PLANNING

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PRODUCT PLANNING

• Nestle first launched its powder milk in the market in 2003

and then came the liquid powder.

• Nestle has introduced the milk powder which outshined others

because of its great taste, refrigeration, ready to drink, less

volume, more stable shelf life.

• At Nestle the Research and Development department is called

as the “APPLICATION GROUP”. No other company matches the

R&D presence of Nestle. No other company dedicates so many

human and financial resources to R&D as Nestle.

• The technology is imported and is latest.

• The factory mil powders spray drying capacity was doubled in

1999 with commissioning of new evaporator.

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• The actual target is a company’s secret that will not be

disclosed. But we received an overwhelming acceptance and

liking of the product.

• Over many years company’s primary concern has been to

improve the quality and volume of milk for UHT processing

and other milk based products.

• The target market of the product is definitely he tea drinkers

who have a choice and capacity for the best taste.

• There was a problem of segmentation but it was quickly taken

into notice and the problem was readily removed.

• It is designed to be used in general but it is popular mostly in

offices and cafés for tea purposes.

• Now the error rate has been reduced to zero.

2004 --------------------------- 3 complaints

2005 --------------------------- 6 complaints

2006 --------------------------- 4 complaints

2007 ---------------------------- 2 complaints

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• Well the product is matchless in quality and has no match. It

has a sufficient name and place in the market.

• On the basis of profit margin Nestle seldom make donations o

non- profit organizations and charitable institutions.

• Nestle has its own dairy farms from which we collect milk and

we have a special team of veterans who regularly inject animals

against epidemic diseases.

• The Nestle logo is a must, other than that the product is made

available in convenient sizes and attractive colors. The WHITE color

is the chief color to depict the color f milk.

• Competitors are:

PIA, MC-DONALDS and PEARL CONTINENTAL in India.

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PRICE PLANNING

Global pricing policies:

Apart from global coordination of prices on specific products and

firms usually adopt one of the three alternative pricing policies that

cut across their product lines. These are

1. Polycentric pricing

2. Geocentric pricing

3. Ethnocentric pricing

Nestle use geocentric pricing policy.

Nestle Products price planning

Nestle dairy products are priced keeping in view the buying

power of middle-income and high-income social classes.

The cost includes the cost of manufacturing, labor, raw

materials etc. The industry sales growth is largely driven by

population growth as well as the amount of advertising and

product innovation taking place in the industry. The company

has resorted to pricing discrimination strategies to maximize

the value of consumer demand

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Being a multinational brand, the pricing objective of Nestle is

mainly to increase sales as it has already penetrated the

market. Their prices are not affected by price changes by

competitors, and they don’t engage in price wars. Competition

is met through innovation. The prices of Nestle milk change as

the product size is changed of the Product Life Cycle. And

Because of the contract between the seller companies, they

offer same price. So there is no skim based or penetration

based pricing by company.

The retail prices are different according to their size and brand.

However prices have been standardized throughout Pakistan

and there is no differentiation based on geographical areas.

There is no change in prices according to season. It remains the

same.

They adopt same strategy in international marketing as in local

marketing. But the prices are according to the international

currency.

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PROMOTION PLANNING

The promotion of Nestle Dairy product are no doubt the best of

all. Its intense advertising has really captured the minds of all

categories of people besides media advertising; the company has

signed several agreements with different sports in order to

promote. For the Advertising, the company has a policy that the

commercial should best communicate its message toward its target

markets. The promotional planning of Nestle milk has taken the

emotions of youngsters quite successfully. Promotion is handled by

the marketing department but campaigns are launched through an

agency. Promotion is done through the electronic media, billboards

and print media (press).

Promotion Objectives

To project sales of Nestle Dairy Products

To create awareness among the masses about any new product

of Nestle

To achieve brand loyalty

Selection of Promotion Media

Selection of promotion media is done on the basis of whether the

company wants:

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Immediate sales uplift

- Achieved through television and other forms of electronic

media

Or

Gradual sales uplift

Promotion planning depends on marketing push or marketing

pull strategy. Nestle milk is not considered a seasonal product in

Pakistan, so they do not need to promote very much.

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PLACE (DISTRIBUTION) PLANNING

They distribute their products nationally and internationally

throughout the world. Nestle are distributed using an indirect

channel, that is, dealers. Nestle milk is sent to warehouses after

manufacture

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NESTLE

DEALER

RETAILER

FINAL CONSUMERS

They use intensive distribution for marketing coverage.

Because its goals are to have wide market coverage, channel

acceptance and high total sales and profits. Distribution is made

nationally and internationally through Motor. Carriers Waterways

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Airways Railroads Throughout the country in every city and village.

It includes suppliers and retailers

Supply chain:

There are various departments

Raw material department

Finished goods department

From the finished goods department the product goes to the

warehouses.

Export Expansion Strategy:

There are two types of export expansion strategies

1. Water fall

2. Sprinkler

Nestle use waterfall strategy. It moves gradually to different

countries.

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RESEARCH METHODOLOGY

Research refers to search for knowledge. One can also

define research as a scientific and systematic search for pertinent

information on a specific topic. It is an art of scientific investigation.

Research Methodology:-

It is the way to systematically solve a problem. The

methodology adopted in this study is explained below:-

Research Design

Literature Survey :

I have used books, prospectus & websites.

Type of research:

The research is descriptive in nature. Descriptive research

is one that describes things as exists in present.

Data collection:

Sources of data

1. Primary Sources – I have used questionnaire as primary source

for collecting data for my study.

2. Secondary sources – I had collected my secondary data from

websites & Prospectus.

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ANNEXURE

Q: which Chocolate do you like most?

Ans KITKAT 80% ECLAIRS 20%

Q: which flavors do you like most?

Ans Chocó 65% strawberry 35%

Q: if you like chocolate colour ya other ?

Ans chocolate 73% other 27%

Q: why are you select nestle products?

Ans reasonable 20% quality 35% both 45%

Q: which size do you prefer in ECLAIRS ?

Ans regular 80% large 20 %

Q: which NESTLE products do you like most?

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Ans chocolate 30% maggi 70%

SWOT ANALYSIS OF NESTLE

STRENGHTS

Nestle is a multinational company which establish his bench

mark across in INDIA and all over world.

Nestle is trust by consumer due to its quality and brand

name.

Nestle products price is affordable.

Nestle promotes their products by attractive

advertisement and free sampling.

WEAKNESESS

In all over world many food company enter in

competition of Nestle.

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Nestle products promotion policy is not more attractive

OPPOTUNITIES

Nestle in Pakistan has a great opportunity for expanding its

market.

It also has opportunities largely in China and India as well.

Through proper marketing research Nestle can cash on to

these opportunities.

THREATS

Nestle is facing the threats by worldwide community due to its

violation of international marketing standards.

Many campaigns have been held against Nestle in this regard

which can damage the name and trust of its customers.

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FINDINGS OF THE STUDY

Nestle Corporation has is satisfactory to customer needs. As it

can be clear that Nestle as a company has expanded its

products and services from Food, Qualitative like need of

everyday food.

In providing a wide range of products and services with high

quality, Nestle has by far influenced most of the customer’s

perception favorably towards its products.

Nestle is fair with consideration of the quality of the products

and services offered , The only problem is that, Nestle has

priced its products for a middle or lower class customer to

afford to buy those products.

Apart from that Nestle has targeted its market mainly to urban

customers as are the only customers who can afford such

products.

Nestle has to create also some of low end products with low

prices which can be affordable to low income users.

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SUGGESTIONS AND RECOMENDATIONS

As Nestle is the best company all over the world but there is

some recommendations and suggestions.

NESTLE products would be try to available not only for urban as well as

ruler.

It attracted the customers by good advertisement and distributed free sample

in schools colleges and ruler areas.

It tried to maintain quality and change in taste according the consumer.

For online promotion of products its use FS4I ( free staff for INDIA)

To come ahead the competition NESTLE make price reasonable for all.

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CONCLUSIONS

Nestle Brand enjoys market leadership position and it is also

prefer by the majority of the consumer for Product among

different brands OF Everyday product available in the market.

In different types of Coffee, Chocolate is preferred by most of

consumer’s and they have ranked Everyday product as No 1

among different Types of Product.

Nescafe is preferred by the consumer among different type of

coffee.

Majority of the Consumer prefer KITKAT, ECLAIRS they like

Crispy, Creamy and Sweet Chocolate.

Most of the consumers Buying Decision is not only influenced by

any specific single characteristics but it is influenced by either the

combination of more than

1. Thus majority buying decision is influenced by Performance of

Everyday Product in Total, Of course in different consumer

segments there are different characteristic impacting buying

Decision.

Occupation Wise Classification

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o For Senior Person: The most influencing characteristic

impacting buying decision is Price.

o For Young generation and Child: Price & Performance

have impact influence on buying decision. It signifies that

Service Person purchase Product not only considering price

but along with it some different features such as Quality,

Brand, Taste etc. are also impacting the Decision. But still

Price & Performance are dominating features for this

Consumer Segments.

BIBLIOGRAPHY

A Complete Guide to Programming in Microsoft Office

2007

Advanced Programming Using Microsoft Word 2007

Marketing Management ---- Philip Kotler 12th Edition

Advanced MS Power Point

Company's Draft Prospectus.

Company’s 13th Annual Report

Business Research --- By Cooper

Www. nestlemilk.com

Www. economictimes.com

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http://en.wikipedia.org/nestle milk

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