Nestle Project

PROJECT REPORT
ON
“Comparative Sales Study of Nestle

Confectionery Products viz-a-viz its
Competitors”
At
East Delhi
IN
Nestle India ltd.
IN PARTIAL FULFILMENT OF
PGDM(09-11)
SUBMITTED BY-
MOHIT WAHI
ITS GHAZIABAD 1 2009-2011

REPORT ON
“Comparative Sales Study of Nestle Confectionery

Products viz-a-viz its Competitors”
POST GRADUATE DIPLOMA IN

MANAGEMENT
(2009-2011)
Under Supervision of: By:

Mr. Harinder (S.O.) Mohit Wahi
Nestle India ltd. PGDM- 3rd sem
Mr. Dushyant Tyagi
(Lecturer)
.........................
ITS Ghaziabad

DECLARATION
I undersign hereby declare that the project report entitled “Training and Development”
written and submitted by me to ITS, Ghaziabad in partial fulfillment of the requirement for
the award of PGDM under the guidance of my mentor Prof. Dushayant Tyagi, my guide
Mr. Harinder, Mr. Moti Lal Parekh is my original work and the conclusion drawn there in
are based on the material collected by myself. I hereby declare also this study has not been
permitted by me to publish anywhere.
.....................
Mohit Wahi

PREFACE
The Research report program is designed to give the impact to a candidate who would be
manager in future. It gives experience of current happenings and market position. The real
life situation are entirely different from stimulated exercise enacted in an artificial
classroom ,it is because of this reason the research program is designed so that the managers
of tomorrow do not feel odd when the time comes to hold the responsibility.
The experience that I have gathered during my project work in the market has certainly
provided me a great experience, which I believe that will help me to shoulder any
responsibility which comes my way in future.
By going through this report one can find my work is more informative and interesting by
knowing the various view point of respondent. The finding and result gives clear information
of sales. Of course, every study has limitation so a in this study there are some which is listed
on the last.

ACKNOWLEDGEMENT
I wish to extend my thanks to Mr. Harinder, Mr. Moti Lal Parekh my Project guide
without whom I would have been unable to make this project possible. Their tremendous
knowledge and practical suggestions helped me to understand the various aspects and
complexities of topic and at the same time enhanced my practical knowledge to accomplish
the task that was assigned to me.
I would also like to thank my college mentor Prof. Dushayant Tyagi and all the respondents
who have supported me during entire project.

ABSTRACT
Nestlé has been a leading food manufacturer and major purchaser of agricultural raw
materials for over 130 years. Food and agriculture are an integral part of the social cultural,
economic and political context of every community. Today, Nestlé is the world’s largest and
most diversified food company, with nearly 500 factories in 77 countries, producing healthy,
enjoyable food products for every stage of life. The present study has been carried out with
the objective of studying the profile of Nestle, their brand exercises, the use of celebrity
endorsement as a tool of brand building by firms and the consumers perception about the
brand image of Nestle The research was carried out with the help of primary as well as
secondary sources of data Primary Data has been collected through consumer survey in
Delhi, among the existing and potential consumers of Nestle Products. However secondary
dats has been collected through Books, Periodicals and Journals in the field of marketing,
branding and Newspapers and the Internet. The only limitation in this survey was that I could
not conduct a survey on a big scale, due to the time constraint. After all the literature and
market research, and analysis I wish to conclude that the philosophy behind the branding
strategy of Nestle has been to develop the brand so as to attract and retain the consumers. The
branding strategies adopted have resulted in building a sustainable and differential advantage
over its competitors.

TABLE OF CONTENTS
1. INTRODUCTION 8
• About the company
2. COMPANY PROFILE 19
• Market Presence 19
• Brand exercise in Nestle 21
• Range of products and services 23
• SWOT Analysis 39
3. RESEARCH METHODOLOGY 41
• Data sources
• Research objective 43
4. DATA ANALYSIS 47
5. RESULTS AND FINDINGS 65
6. CONCLUSION 66
7. RECOMMENDATIONS 67
8. ANNEXURE 68
9. BIBLIOGRAPHY 71

INTRODUCTION
PROFILE OF THE COMPANY
Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlé and is
today the world's biggest food and beverage company. Sales at the end of 2004 were CHF 87
bn, with a net profit of CHF 6.7 bn. We employ around 247,000 people and have factories or
operations in almost every country in the world.

The Company's strategy is guided by several fundamental principles. Nestlé's existing
products grow through innovation and renovation while maintaining a balance in geographic
activities and product lines. Long-term potential is never sacrificed for short-term
performance. The Company's priority is to bring the best and most relevant products to
people, wherever they are, whatever their needs, throughout their lives.
BACKGROUND
Nestle was promoted by Nestle Alimentana, Switzerland, a wholly owned subsidiary of

Nestle Holdings Ltd., Nassau, Bahama Islands. Nestle is one of the oldest food MNC
operating in India, with a presence of over a century. For a long time, Nestle India’s
operations were restricted to importing and trading of condensed milk and infant food. Over
the years, the Company expanded its product range with new products in instant coffee,
noodles, sauces, pickles, culinary aids, chocolates and confectionery, dairy products and
mineral water.
Nestle was incorporated as a limited company in 1959. In 1978, the Company issued shares
to the Indian public to reduce its foreign holdings to 40%. Its name was changed from Foods
Specialties Ltd. to the current name in 1981.The parent held 51% stake in the company as at
2000 end. It has FIPB approval to hike stake by 10% and has been gradually acquiring shares
from the open market. Parent stake in the company as at 2001 end stood at 53.8%. The parent
plans to continue hiking stake through open market purchases.
Nestle India Ltd, 51% subsidiary of Nestle SA, is among the leading branded food player in
the country. It has a broad based presence in the foods sector with leading market shares in
instant coffee, infant foods, milk products and noodles. It has also strengthened its presence
in chocolates, confectioneries and other semi processed food products during the last few
years.

The company has launched Dairy Products like UHT Milk, Butter and Curd and also
ventured into the mineral water segment in 2001. Nestle’s leading brands include Cerelac,
Nestum, Nescafe, Maggie, Kitkat, Munch and Pure Life.
PLANT LOCATIONS
Nestle started its manufacturing operations with Milkmaid in 1962 at Moga factory.
Manufacturing of Nescafe started in 1964 at the same factory. The company set up another
factory at Cherambadi in Tamil Nadu, for manufacture of infant foods, coffee etc. For almost
two decades there were no new additions of manufacturing facilities due to restrictive policy
environment. The company set up its Nanjangad (Karnataka) factory in 1989 and the
Samlakha (Haryana) factory in 1992. The Ponda (Goa) factory started operations in 1995.
The Company set up its sixth manufacturing unit in 1997 at Bicholim in Goa
BUSINESS PRINCIPLES
Since Henri Nestlé developed the first milk food for infants in 1867, and saved the life of a
neighbor’s child, the Nestlé Company has aimed to build a business based on sound human
values and principles.

While our Nestlé Corporate Business Principles will continue to evolve and adapt to a
changing world, our basic foundation is unchanged from the time of the origins of the
Company, and reflects the basic ideas of fairness, honesty, and a general concern for people.
People first
Employees, people and products are more important at Nestlé than systems. Systems and
methods, while necessary and valuable in running a complex organization, should remain
managerial and operational aids but should not become ends in themselves. It is a question of
priorities. A strong orientation toward human beings, employees and executives is a decisive,
if not the decisive, component of long-term success.
Quality products
Our focus is on products. The ultimate justification for a company is its ability to offer
products that are appealing because of their quality, convenience, variety and price --
products that can stand their ground even in the face of fierce competition.
Long-term view
Nestlé makes clear a distinction between strategy and tactics. It gives priority to the long-
range view. Long-term thinking defuses many of the conflicts and contentions among groups
this applies to employment conditions and relations with employees as well as to the conflicts
and opposing interests of the trade and the industry. Of course, our ability to focus on long-
term considerations is only possible if the company is successful in the struggle for short-
term survival. This is why Nestlé strives to maintain a satisfactory level of profits every year.

Decentralization
Switzerland is home to Nestlé's Swiss subsidiary, its international headquarters and the
registered office of Nestlé's holding company, but Nestlé does not regard its Swiss
headquarters as the center of the universe. Decentralization is a basic principle of Nestlé. Our
policy is to adapt as much as possible to regional circumstances, mentalities and situations.
By decentralizing operational responsibility, we create strength and flexibility and are able to
make decisions that are better attuned to specific situations in a given country. Policies and
decisions concerning personnel, marketing and products are largely determined locally. This
policy creates stronger motivation for Nestlé's executives and employees and a greater sense
of identification with Nestlé's business. It is not Nestlé's policy to generate most of its sales in
Switzerland, supplemented by a few satellite subsidiaries abroad. Nestlé strives to be an
"insider" in every country in which it operates, not an "outsider."
Uniformity
A very important concern at Nestlé has to do with uniformity: how consistent Nestlé's
principles, policies, rules of conduct and strategies should be, and to what extent they should
differ depending on the country, subsidiary, region, branch or group of products. In general,
Nestlé tries to limit the uniformity of its policy to a requisite minimum. This minimum is then
systematically enforced, unless there are compelling reasons in a given market that justify
deviation from policy.
Diversification
Nestlé does not want to become either a conglomerate or a portfolio manager. Nestlé wants to
operate only those businesses about which it has some special knowledge and expertise.
Nestlé is a global company, not a conglomerate hodgepodge. We regard acquisitions and
efforts at diversification as logical ways to supplement our business, but only in the context
of a carefully considered corporate marketing policy. Nestlé is committed to the following
Business Principles in all countries, taking into account local legislation, cultural and
religious practices:

 Nestlé'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.
 Nestlé does not favour short-term profit at the expense of successful long-term
business development.
 Nestlé recognizes that its consumers have a sincere and legitimate interest in the
behaviour, beliefs and actions of the Company behind brands in which they place
their trust and that without its consumers the Company would not exist.
 Nestlé 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.
 Nestlé 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.
 Nestlé continues to maintain its commitment to follow and respect all applicable local
laws in each of its
Research and development
The Nestlé research and development centers have two main tasks: to create new products
and manufacturing processes and to improve those that already exist. These centers play a
key role in product safety and quality and also have their role in conserving resources and
protecting the environment. Environmental concerns are an integral part of any development
process to ensure that our future commercial operations meet the desired criteria.
The Nestlé Research Center provides the scientific support needed to prevent and solve
environmental problems arising in the development groups as well as manufacturing. In
addition, studies are carried out to find new ways of using industrial residues to create value
added byproducts. This will reduce total emissions and effluents.

The Nestlé development centers prepare environmental impact studies for new products and
manufacturing processes. These cover all aspects, from raw materials, through processing, to
the final packed product. These analyses provide additional elements for use in deciding
whether to commercialize a new product, or to introduce a new or modified process.
Foresight
At present, the world faces daunting questions about its ability to provide enough wholesome
food for everyone. Malnutrition and poor eating habits are still serious problems in many
developing countries. By 2100, the world's population will double. Will it be possible to feed
a world with so many inhabitants? At Nestlé, the big picture is all about feeding the world
and providing food and nutrition for an ever-growing population. Our response to this
situation is to intensify research, strive for innovations and improve quality.
Flexibility and simplicity
The public's sense of the power and size of a corporation is often inaccurate, for a company's
power is limited by a host of factors including legislation, competition, regulatory bodies and
publicity. From a business point of view, it is desirable for a firm to achieve the size best
suited to a specific industry or mode of production. To be competitive internationally and
make significant investments in research and technology, a larger company has an advantage.
From a strictly organizational point of view, flexible, simple structures work best and
excessively large units should be avoided whenever possible. In both respects Nestlé has a
natural advantage: Although it is a big company, it is spread out over many countries and
each of Nestlé's factories has its own management and responsibility.
Handling of raw materials
The Nestlé Group is in principle not directly involved in primary production of raw materials
and other food ingredients. In general we use locally available raw materials and purchase
them either directly from producers or through existing trade channels.

Raw materials have to meet clearly established quality criteria and are checked for possible
contaminants including environmental contaminants. Our purchasing specifications comply
not only with legal requirements but go further to ensure highest safety and wholesomeness
of our products.
Whenever possible we give preference to those goods for which environmental aspects have
been taken into consideration. In those cases where the required agricultural raw materials are
not available locally, but the natural production conditions exist, we encourage local
production and provide assistance for cultivation and dairy farm management. We support
plant growing and livestock husbandry methods which:
 preserve and improve natural soil productivity and economize and protect water
resources
 allow the lowest, most appropriate and safe use of agro-chemicals
 use the least energy.
Packaging
Manufacturing comprises all unit operations necessary to transform perishable raw materials
into finished products, with the aim to make them safe and convenient for the consumers. The
manufacturing activities of the Nestlé Group:
 respect natural resources by efficient use of raw materials and energy

 minimize waste generation and emissions
 ensure environmentally safe disposal of all waste which cannot be recycled.
Regular assessments of processing practices are carried out. These assessments include:
 evaluation of individual plant performance with regard to operations which have an

impact on the environment
 definition of targets for improvement

 review of plant compliance with local government regulations, company
environmental standards, as well as results achieved in comparison with targets for
improvement
 full investigation of incidents which may affect the environment.
Information on developments in environmental protection technology and practices is

disseminated as required to ensure that all plants are using the most effective environmental
practices for their type of processing. This applies also for co packers.
Marketing and distribution
Marketing is based on the principle of satisfying consumer needs. This is the foundation also
for the environmental marketing approach of Nestlé.
Environmental product claims in advertising, promotional material and on packaging are in

accordance with legal requirements, based on solid scientific evidence and used in a serious
and reasonable manner.
Our aim is to minimize wastage in communication, publicity and promotional material, in

particular through more precise targeting of marketing activities.
Consumer promotions and merchandising material such as consumer offers, in store

promotions, display material, leaflets, printed matter, etc. take environmental aspects into
account.
This means due consideration of environmental impact in selecting both materials and
printing methods.
In distribution, energy efficient and pollution controlled methods are encouraged wherever
possible.

Information, communication and education
Nestlé's policy is designed to provide correct and coherent information on the activities of the
Group.
Activities related to the environment benefit from the same treatment and their
communication is secured through all currently available means inside and outside the Group.
It is furthermore Nestlé's duty to create awareness, to train and motivate employees on their
personal responsibility with regard to the protection of the environment.
Legislation and Regulations
It is the policy of the Nestlé Group to strictly comply with all laws and regulations relevant to
our activities. We participate in discussions on food legislation and regulations between
international organizations, government representatives, industry, the scientific world and
consumer associations. We also apply this policy to environment related matters.
In doing so, we cooperate with legislators through local industry associations in order to
promote laws and regulations in the field of environment which are reasonable, rational,
realistic, applicable and enforceable. We oppose unjustified bans and any other
discriminatory measures.
We favor the harmonization of food regulations in order to remove existing trade barriers and
to avoid the creation of new ones. This applies also to environmental issues. We favor the
exchange of information, of experience and of knowledge between the various interested
parties.
Thanks to all these synergies, we can contribute to valuable discussions and be recognized as
an active partner in helping authorities to formulate comprehensive strategies in the field of
the environment.

THE NESTLÉ POLICY ON THE ENVIRONMENT
Nestlé respects the environment and is committed to environmentally sound business

practices throughout the world, thus taking into account the need to preserve natural
resources and save energy.
This commitment is put into practice by considering local legal requirements as a minimum
standard. If these do not exist, our internal rules, adjusted to local conditions, apply. Research
and Development and new investments include an evaluation to ensure environmentally
appropriate products, packaging and processes.
Management and personnel within the Nestlé organization worldwide are encouraged to help
resolve environmental problems within their own sphere of influence.

COMPANY PROFILE
Branding strategies:
The formulation of branding strategies starts from the building a sustainable brand for the
company. This is so as the consumers buy the brand not only for the intrinsic values
associated with it but also because of the promise that branding makes to the consumer….the
promise of delivering values beyond expectation. A framework is suggested below for the
formulation of a brand strategy:
Figure: framework for formulation of a brand strategy
1. Experiential marketing: the first component of branding strategy is the experiential

marketing. It is a well known fact that the customers demand experiences instead of products
or services. This creates a challenge to the organizations to find new ways to involve the
customers in the value chain so that they themselves can decide the product features and
uniqueness that they expect from the brand. They want to know more about the details of the
brand. They remove the shells and get into the core of the processes to understand the real
value of the brand. Hence such a strategy should be framed that makes the consumers
involvement higher.
2. Effective Branding: It is found that effective branding involves working on four important
dimensions, namely:
Figure: dimensions of effective branding
• The Functional Dimension- The functional dimension concerns the perception of benefit
of the product or service associated with the brand.
• The Social Dimension- The Social Dimension concern the ability to create identification
with the group.
• The Spiritual Dimension- The Spiritual Dimension is the perception of global or local
responsibility
• The Mental Dimension- The Mental Dimension is the ability to support the individual
mentally.
3. Novel Brand Strategies
• Customers Own the Brand- It should always be kept in mind that it is the consumers who
own the brand.
Product Service
• A sale should never be considered the ending of a transaction but the beginning of a
beautiful relationship. Customer service basically creates a positive effect on the minds of the
customer and this positive influence on the mind of the consumer makes them more open to
new ideas and reduces their skeptism towards the brand.

• Buzz Marketing: The development in the technology used in the country has lead to the
increased importance paid to the concept of buzz marketing. Branding increasingly nowadays
is moving into Internet-based applications.
• Religious Branding since it is considered that religion has the power to bind people and
unify them under one common ideal an effective brand strategy must take into account this
powerful force which plays on the minds of the Indian consumers. This is so as in a country
like India, A brand that reveals authenticity, values and humanity's drive toward
conscientiousness, offers a powerful strategic advantage.
4. Feedback and Improvements

It is very crucial to have the consumer participation. In order to succeed in the long run, it is
crucial to allow the consumer participation at an intermediary stage of developing the
product. This will lead to creation of a better relationship between the company and its
consumer.
PRODUCT BUNDLING: An Important Branding Strategy
Product Bundling is a marketing strategy that involves offering several products for sale as
one combined product. Product bundling is most suitable for high volume and high margin
products. It is most successful under the following situations:
• There are economies of scale in production,

• There are economies of scope in distribution,
• Consumers appreciate the resulting simplification of the purchase decision and benefit from
the joint performance of the combined product,
• When the marginal costs of bundling are low.
• When production set-up costs are high,
• When customer acquisition costs are high

BRAND EXERCICES IN NESTLE:
Consumer Services
At Nestlé, the company is committed to offering consumers high-quality food products that
are safe, tasty and affordable. The Nestlé Seal of Guarantee is a symbol of this commitment.
It also believes in maintaining regular contact with our consumers. When Henri Nestlé
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, the Consumer Relationship
Panel with the words "Talk to Nestlé" expresses the same commitment.
Nestle has a worldwide Nestlé Consumer Services network devoted to caring for consumers.
The people 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 Nestlé.
BRANDS
Milk Products & Nutrition: From shelf-stable solution to chilled dairy.
Beverages: Drink to an active life with Nestlé Beverages.
Prepared Dishes & Cooking Aids: Preparing well balanced meals is a snap with Nestlé.
Chocolates & Confectionery: Delighting the senses with a range of tastes and textures.
PREPARED FOODS
Convenience foods — packaged soups, frozen meals, prepared sauces and flavorings —date
back more than a century. With the Industrial Revolution came factory jobs for women and
less time to prepare meals.
The problem was so widespread that it became the object of intense study in 1882 by the
Swiss Public Welfare Society, which offered a series of recommendations, including an
increase in the consumption of vegetables.
The Society commissioned Julius Maggi, a miller with a reputation as an inventive and
capable businessman, to create a vegetable food product that would be quick to prepare and
easy to digest. The results — two instant pea soups and an instant bean soup — helped launch
one of the best known brands in the history of the food industry. By the turn of the century,
Maggi & Company was producing not only powdered soups, but bouillon cubes, sauces and
flavorings.

MARKET SHARE
THE stock of Nestle India Ltd has been under pressure for some time now, on the back of a
growing perception that the stock trades at the higher end of the FMCG valuation spectrum.
The stock, which was trading at around Rs 655 levels on the bourses as on April 4, has lost
ground by 19.3 per cent to its current levels of Rs 549. The counter has been range-bound
over the last month since when it has been trading in the range of Rs 549 to Rs 550. The
exception being June 10, when the stock hit Rs 573 on the BSE. An illiquid counter, the stock
is also being dogged by talko fit being a potential delisting candidate. A recent Merrill Lynch
report on the company says that the stock is no longer a safe haven. The report attributes
structural and competitive issues impacting growth prospects. About 40 per cent of the
company's business is said have either fallen or slowed down vis-a-vis last year. The key
among them being brand Maggie Noodles and Cerelac. While the former contributes to 12
per cent of the turnover, the latter contributes 11 per cent. While Maggie has 80 per cent
market share in the noodle category and no noteworthy competitor there is a perception that
the slowdown is probably due to brand fatigue. On the other hand, Cerelac with 80 per cent
market share and one of Nestle's most profitable brands is expected to see a decline in sales
primarily due to the Government ban on print advertising and doctor sampling. Hence, there
is expectation that EPS would grow merely 4.5 per cent in the current year vis-à-vis an
average 23 per cent growth over the last two years. This is led by slower sales growth — 5
per cent versus average 9 per cent in the last two years and higher cost pressures. However,
according to analyst Mr Harrish Zaveri of Edelweiss Capital, the long-term growth story is
still on track, with the company policy being growth via low penetration and not share gains.
"The key problem is milk prices and not the brand per se. The company has stopped
supplying tender parts to Canteen Stores Department (CSD) as of this quarter largely on
account of the fact that they are not able to pass on cost to CSD. Had CSD sales continued
like last year, milk and milk products sales would have increased by 11 per cent to 15 per
cent," he said.
WHAT IS BRAND IDENTITY
Aaker’s Framework Brand identity as defined by Aaker is the sum of the brand expressed as
a product, organization, person, and symbol. For instance, brand as product deals with the
acceptance of the brand as a product itself. For its price, Nirma is seen as a good product.
BMW or Benz are basically seen as good products besides being good brands. Brand as
organization emphasizes that a brand is successful among other things because of the
organizational values it upholds. 3M abroad and Marico in India have brought in a series of
successful products because of their commitment to innovation. Marico has innovative and
often successful offerings in a wide variety of products as hair oil (parachute), edible oil
(Saffola, Sweekar), starch (Revive), jam (Sil). Brand as person deals with the question “what
happens to this brand when it becomes a person?” by implication, Denim talc would be seen
as ‘masculine,’ Sunsilk shampoo as ‘feminine’, and Pepsi as young and vibrant. Brand as
symbol deals with heritage and what the brands stand for. For instance, Coke symbolizes the
American dream. Aaker contends that brand identity is a function of these four dimensions.
The framework is reproduced on the next page.

NESTLE’S BRANDS
Quality and nutritional value are the essential ingredients in all of the nestle’s brands.
Millions of people prefer Nestlé products every day, happy with the addition to their wellness
that they bring. If you are looking for a specific brand our product, just use the alphabetical
index below to jump straight to a listing. Or you can explore by category.

Baby Foods
The production of infant food goes right back to the origins of the Nestlé Company. Henri
Nestlé's 'Farine Lactée' was the first product to bear the Nestlé name.
In 1867 a physician persuaded Henri Nestlé to give his product to an infant who was very
ill — he had been born prematurely and was refusing his mother's milk and all other types of
nourishment. Nestlé's new food worked, and the boy survived. From the very beginning,
Nestlé's product was never intended as a competitor for mother's milk. In 1869, he wrote:
"During the first months, the mother's milk will always be the most natural nutrient, and
every mother able to do so should herself suckle her children."
The factors that made baby foods success in the early days of the Nestlé company — quality
and superior nutritional value — are still as valid today for the wide range of infant formula,
cereals and baby food made by Nestlé. The World Health Organization (WHO) recognizes
that there is a legitimate market for infant formula, when a mother cannot or chooses not to
breast feed her child. Nestlé markets infant formula according to the principles and aims of
the WHO International Code of Marketing Breast Milk Substitutes, and seeks dialogue and
cooperation with the international health community and in particular with the WHO and
UNICEF, to identify problems and their solution. Nestlé's expertise as the world's leading
infant food manufacturer, gained over more than 125 years, is put at the disposal of health
authorities, the medical profession and mothers and children everywhere.

Chocolate & Confectionery
The story of chocolate began in the New World with the Mayans, who drank a dark brew
called cacahuaquchtl. Later, the Aztecs consumed chacahoua and used the cocoa bean for
currency. In 1523, they offered cocoa beans to Cortez, who introduced chocolate to the Old
World, where it swiftly became a favorite food among the rich and noble of Europe. Nestle
forayed into chocolates & confectionery in 1990 and has cornered a fourth share of the
chocolate market in the country.. It has expanded its products range to all segments of the
market The Kitkat brand is the largest selling chocolate brand in the world. Other brands
include Milky Bar, Marbles, Crunch, Nestle Rich Dark, Bar-One, Munch etc. The sugar
confectionery portfolio consists of Polo, Soothers, Frootos and Milkybar Eclairs. All sugar
confectionery products are sold under the umbrella brand Allen's. Nestle has also markets
some of its imported brands like Quality Street, Lions and After Eight. New launches such as
Nestle Choco Stick and Milky Bar Choo at attractive price points to woo new consumers.
Chocolate confectionery sales registered a strong 21.5% yoy growth in 2001 aided by good
volume growth in Munch, Kitkat and Classic sales. Nestle relaunched Bar-One during the
year.
From the beginning, turning raw, bitter cocoa beans into what one 17th century writer called
"the only true food of the gods" has been a fine art, a delicate mixture of alchemy and
science.

Ice Cream
There are many myths and stories as to the invention of ice cream: was it Marco Polo who
brought it back from China (along with pasta)? Probably not, considering the most likely
never visited China.
The story of its popularity is however connected with the invention of technology to make it
on an industrial scale, and to keep it cold once made. Before refrigeration techniques, food
was frozen with the aid of ice, mixed with salt, which was either stored in ice houses or
shipped from cold countries. But then at the end of the 19th century, both making and
freezing it became easier, and together with the invention of the ice cream cone, made the
product boom.
Today, the United States is the absolute leader in terms of volume consumed, but the highest
per head consumers are in New Zealand. Flavours you'd never have thought of and yet they're
commercially available:
 Sorbets - Smoked Salmon, Tomato, Cucumber

 Ice Creams - Garlic, Avocado, Sweet corn.

The ice cream cone is the most environmentally friendly form of packaging. A Syrian from
Damascus, Ernest E Hamwi is credited with its invention. Apparently, during the 1904 St
Louis World's Fair, his waffle booth was next to an ice cream vendor who ran short of dishes.
Hamwi rolled a waffle to contain ice cream and the cone was born.
Prepared Foods
Convenience foods — packaged soups, frozen meals, prepared sauces and flavorings —date
back more than a century. With the Industrial Revolution came factory jobs for women and
less time to prepare meals.
The problem was so widespread that it became the object of intense study in 1882 by the
Swiss Public Welfare Society, which offered a series of recommendations, including an
increase in the consumption of vegetables.
The Society commissioned Julius Maggi, a miller with a reputation as an inventive and
capable businessman, to create a vegetable food product that would be quick to prepare and
easy to digest. The results — two instant pea soups and an instant bean soup — helped launch
one of the best known brands in the history of the food industry. By the turn of the century,
Maggi & Company was producing not only powdered soups, but bouillon cubes, sauces and
flavorings.
.Maggi merged with Nestlé in 1947. Buitoni, the authentic Italian brand, which has been
producing pasta and sauces in Italy since 1827, became part of the Nestlé Group in 1988.

Beverages
Beverages like coffee, tea and health drinks contribute to about 30% of Nestlé’s turnover.
Beverage sales registered a 15% growth during 2001. While about 14% of sales come from
domestic market, exports contribute to about 16% of sales.
Nestlé’s Nescafe dominates the premium instant coffee segment. Nestle’s other coffee brand
Sunrise has also been relaunched under the Nescafe franchise to leverage on the existing
equity of the brand. Nestle has focused on expanding the domestic market through price cuts
and product repositioning. However it has been losing share in the domestic market, where it
has a 37% market share. Milo, a brown-malted beverage was launched in 1996. It has an
estimated volume share of about 3% in the malted food drink segment. Nestle has launched
non-carbonated cold beverages such as Nestea Iced Tea and Nescafe Frappe during 2001.
Nestle is one of the largest coffee exporter in the country. Key export market is Russia,
besides Hungary, Poland and Taiwan. Nestle has received an award for highest export of
instant coffee and highest export of coffee to Russia and CIS for FY00 and FY01. Turnover
contribution from exports registered a 17.5% volume growth in F12/01. Nescafe sales to
Russia accounts for 80% (Rs2.5bn) of Nestlé’s Rs3bn export turnover.

QUALITY
Everyday, millions of people all over the world show their confidence in us by choosing
Nestlé products. This confidence is based on our quality image and a reputation for high
standards that has been built up over many years.
Quality is the cornerstone of our success
Every product on the shelf, every service and every customer contact helps to shape this
image. A Nestlé 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.
Customers expect us to keep this promise every time. 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 Nestlé products at all times. The effort is worth it. Companies with huge
quality standards make fewer mistakes, waste less time and money and are more productive.
They also make higher profits. Quality is their most successful product. It is the key to their
success, today and tomorrow.
The customer comes first
Nestle want to win and keep customers: distributors, supermarkets, hotels, 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. Its task is to understand what customers want and respond
to their expectations rapidly and effectively. We serve various groups of consumers and there
is demand for products at different levels of perceived quality and price. All customers,
however, expect value for their money – good quality at a reasonable price.

When offering quality to customers we also mean environmental quality. Nestlé shares
society’s concern for the environment and is committed to environmentally sound business
practices throughout the world. Customers are central to their business and they always
respect their needs and preferences.
Competition
Baby food and Instant coffee are categories where brand loyalties are very strong and Nestle
is the market leader. HLL is a significant competitor to Nestle in instant coffee; while Heinz
is the main competitor in the baby foods market. The market for culinary products, semi-
processed foods such as noodles, ready mixes for Indian ethnic breakfast and sweets, is
largely an urban market. HLL and Indo Nissin Foods are the main competitors in these
product segments. Nestle has also achieved a significant 25% share in the
chocolate/confectionery market. The company has recently expanded its dairy products
portfolio to include, milk, curd and butter. The company also forayed into the bottled water
segment with the launch of its Perrier brand in the premium mineral segment and Pure Life
in the purified water segment.

Quality is a competitive advantage
We live in a competitive world and must never forget that their customers have a choice. If
they are not satisfied with a Nestlé product, they will switch to another brand. Their goal,
therefore, is to provide superior value in every product category and market sector in which
we compete. The pursuit of highest quality at any price is no guarantee for success, nor is a
single-minded cost-cutting approach. Lasting competitive advantage is gained from a
balanced search for optimal value to customers, by simultaneous improvement of quality and
reduction cost. Success can never be taken for granted. We must watch and learn from our
competitors. If they do something better, we must improve our own performance. We can
achieve competitive advantage through Quality.
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 units at different levels of the organization provide specific
support, promote quality awareness, assume guardianship and audit the system. Quality
departments monitor operations against agreed standards and must intervene in case of non-
conformity. Quality policy and principles, the mandatory standards and the recommended
tools for implementation are laid down in the Nestlé 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 our requirements
consistently. The quality efforts must be shared by every function and department in the
company as well as our business partners.

Quality is made by people
Adequate equipment, procedures and systems are needed to make Quality; so are involved
and dedicated people. Each and every Nestlé employee must do his best to provide quality
products and services. Training and teamwork are crucial to the successful implementation of
high quality standards. Continuous training ensures that everyone understands his tasks and
has the necessary skills to carry them out. Teamwork allows us to achieve results that are
greater than the sum of individual efforts. We motivate employees by demonstrating
management commitment to Quality, by setting challenging goals and by giving them
responsibility and recognition. It is through employee involvement that goals and targets can
be achieved in the shortest time. Quality must be a way of life for everyone in the company.
Quality is action
Quality is the result of deliberate action. It is the responsibility of senior managers to

communicate the quality objectives and to provide the resources necessary for their
implementation. It is then up to all employees to make Quality happen throughout the
company. Progress is followed by listening to our customers and by measuring our
performance. Shortcomings and mistakes must be analyzed and corrected. Problems must be
anticipated and prevented before they occur. We also must identify and take advantage of
opportunities. To stand still is to fall behind. So we must strive for continuous improvement
in every area. It is through many small improvements as well as through major breakthroughs
that we will achieve excellence. At Nestlé, Quality is our first priority. Let us practice it every
day.
Consumer Services
At Nestlé, we are committed to offering consumers high-quality food products that are safe,
tasty and affordable. The Nestlé Seal of Guarantee is a symbol of this commitment.
We also believe in maintaining regular contact with our consumers. This applies both to how
we present our products and to how we address our consumers' questions and concerns.

When Henri Nestlé 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, our Consumer
Relationship Panel with the words "Talk to Nestlé" expresses the same commitment.
This is why we have a worldwide Nestlé Consumer Services network devoted to caring for
our consumers. Our people 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 Nestlé.
In addition, we teach them talk with consumers and above all, to listen. Listening helps us to
understand what people want. Nestlé uses the insights gained from relationships with
consumers to drive product development.
At Nestlé, we care for our consumers because our success depends on meeting their needs
and expectations. Through listening and understanding, we can make products that they will
want to use all through their lives.
FUTURE PROSPECTS
Nestle is focused on product expansion and improvement of distribution efficiency. The

Dairy business is being expanded and is expected to drive growth in the long run, although
short-term profitability may be impacted in the investment stage. The company’s entry into
the mineral water segment is a concern, as the segment is already overcrowded and the
company faces stiff competition especially from the Cola manufacturers. Acquisition of an
established brand could catapult Nestlé’s position in the segment. In categories like
beverages, culinary products and chocolate confectionery, the company is looking at driving
growth through launch of smaller SKU’s, thus enabling affordability to a wide section of the
population.

NESTLÉ CONFECTIONARY BACKGROUND OF HOST ORGANIZATION
EXECUTIVE SUMMARY
This is an internship report regarding the Confectionary Products of Nestlé including Éclairs
and Polo. It starts with an introduction about Nestlé followed by the history of Nestlé. It gives
a briefing about all the brands of Nestlé. This report also includes the market mix of the
product. All the 4P’s of marketing mix for the product has been discussed and explained to
reveal the significance of its pricing, product, placing and promotional activities along with
the strength and weaknesses of the organization.
The report shows an internal architecture of the working of the Nestlé 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. BCG matrix has also been included in this report to know about the current standing
of brand in Indian culture.
In the end, there is a briefing about the internship project that was assigned during the
required internship to me.
 Nestle Eclairs with an irresistible outer layer of caramel and a yummy milky filling
you will not find a better temptation
 NESTLE Chocolate Eclairs made up of delicious caramel on the outside with a
chocolate filling in the inside. A favourate amongst all, it has the entire nation rolling,
chewing and phisloing over it. Whereas polo is one of the best selling product of the
nestle.

Polos have, of course, one of the most famous and long-running of all advertising slogans,
"The Mint with the Hole", and this appears to this day on the outside of the tube, though the
lettering has been jazzed up slightly in recent years. The packet itself looks much as it always
has: mainly green, with a couple of splashes of blue and the parts of the letter Os in the word
POLO played by two of the mints themselves. (I do hope they get Equity rates for that.)
Interestingly, though, the hole was only introduced in 1955, after Polos had already been on
sale for seven years!

NESTLÉ KITKAT are delicious crisp wafer fingers
covered with choc layer. Our special tropicalized
recipe ensures that NESTLÉ KITKAT is preserved
even in warmer climates.
NESTLÉ MILKYBAR is a delicious milky treat

which kids love. With its Calcium Rich recipe,
NESTLÉ MILKYBAR is a favourite with parents to
treat their kids with.
Extremely popular in India, NESTLÉ MUNCH is

wafer layer covered with delicious chocolayer. A
crispy light irresistible snack!
NESTLÉ Milk Chocolate is a milk chocolate with a

delicious taste for you to savour.
NESTLÉ BAR-ONE is a luscious nougat and

caramel core covered with a delicious chocolayer.

NESTLÉ offers a bouquet of three exciting éclair
variants: NESTLÉ Eclairs are rich milky caramel Eclairs
with a soft center. NESTLÉ Chocolate Eclairs are a
delicious delight with luscious creamy chocolate inside.
NESTLÉ MILKYBAR Eclairs are delightful Eclairs
with a creamy milky chocolate center.
POLO is a mint roll popularly described as ‘The Mint

with the hole’. Now also in the new extra strong
singles format as POLO Powermint.

LAUNCHING OF THE PRODUCTS
1866 Foundation of Anglo-Swiss Condensed Milk Co.

1867 Henry Nestlé's Infant cereal developed
1905 Nestlé and Anglo Swiss Condensed Milk Co. (new name after merger)
1929 Merger with Peter, Cailler, Kohler Chocolates Suisses S.A.
1934 Launch of Milo
1938 Launch of Nescafé
1947 Nestlé Alimentana S.A. (new name after merger with Maggi)
1948 Launch of Nestea and Nesquik
1969 Vittel (initially equity interest only)
1971 Merger with Ursina-Franck
1973 Stouffer (with Lean Cuisine)
1974 L'Oréal (associate)
1977 Nestlé S.A. (new company name)
Alcon (2002: partial IPO; 2008: partial sale)
1981 Galderma (joint venture with L'Oréal)
1985 Carnation (with Coffee-mate and Friskies)
1986 Creation of Nestlé Nespresso S.A.
1988 Buitoni-Perugina, Rowntree (with KitKat)
1990 Cereal Partners Worldwide (joint venture with General Mills)
1991 Beverage Partners Worldwide (joint venture with Coca-Cola)
1992 Perrier (with Poland Spring)
1993 Creation of Nestlé Sources Internationals (2002: Nestlé Waters)
1997 Creation of Nutrition Strategic Business Division (2006: Nestlé Nutrition)
1998 San Pellegrino and Spillers Petfoods
Launch of Nestlé Pure Life
2000 PowerBar
2001 Ralston Purina
2002 Schöller and Chef America
Dairy Partners Americas (joint venture with Fonterra)
Laboratoires innéov (joint venture with L'Oréal)
2003 Mövenpick and Dreyer's
2005 Wagner, Protéika and Musashi
2006 Creation of FoodServices Strategic Business Division (2009: Nestlé Professional)
Lactalis Nestlé Produits Frais (associate)
Jenny Craig, Uncle Tobys and Delta Ice Cream
2007 Novartis Medical Nutrition, Gerber and Henniez
2009 Vitality Beverage business
2010 Kraft Pizza

SWOT ANALYSIS
Nestle India Limited is the Indian arm of Nestle SA, which holds a 51% stake in the
company. It is one of the leading branded processed food companies in the country with a
large market share in products like instant coffee, weaning foods, instant foods, milk
products, etc. It also has a significant share in the chocolates and other semi-processed foods
market.
Nestlé's leading brands include Cerelac, Nestum, Nescafe, Maggie, Kitkat, Munch and
Milkmaid, confectionery. To strengthen its presence, it has been the company's endeavour to
launch new products at a brisk pace and has been quite successful in its launches.
STRENGTHS:
Parent support - Nestle India has a strong support from its parent company, which is the
world’s largest processed food and beverage company, with a presence in almost every
country. The company has access to the parent’s hugely successful global folio of products
and brands.
Brand strength - In India, Nestle has some very strong brands like Nescafe, Maggi and
Cerelac. These brands are almost generic to their product categories.
Product innovation - The Company has been continuously introducing new products for its
Indian patrons on a frequent basis, thus expanding its product offerings.
WEAKNESS:
Exports – The company’s exports stood at Rs 2,571 m at the end of 2003 (11% of revenues)
and continue to grow at a decent pace. But a major portion of this comprises of Coffee
(around 67% of the exports were that of Nescafe instant to Russia). This constitutes a big
chunk of the total exports to a single location. Historically, Russia has been a very volatile
market for Nestle, and its overall performance takes a hit often due to this factor.
Supply chain - The Company has a complex supply chain management and the main issue
for Nestle India is traceability. The food industry requires high standards of hygiene, quality
of edible inputs and personnel. The fragmented nature of the Indian market place complicates
things more.

OPPURTUNITIES:
Expansion - The Company has the potential to expand to smaller towns and other
geographies. Existing markets are not fully tapped and the company can increase presence by
penetrating further. With India's demographic profile changing in favour of the consuming
class, the per capita consumption of most FMCG products is likely to grow. Nestle will have
the inherent advantage of this trend.
Product offerings - The Company has the option to expand its product folio by introducing
more brands which its parents are famed for like breakfast cereals, Smarties Chocolates,
Carnation, etc.
Global hub - Since manufacturing of some products is cheaper in India than in other South
East Asian countries, Nestle India could become an export hub for the parent in certain
product categories.
THREAT:
Competition - The Company faces immense competition from the organised as well as the
unorganised sectors. Off late, to liberalise its trade and investment policies to enable the
country to better function in the globalised economy, the Indian Government has reduced the
import duty of food segments thus intensifying the battle.
Changing consumer trends - Trend of increased consumer spends on consumer durables

resulting in lower spending on FMCG products. In the past 2-3 years, the performance of the
FMCG sector has been lacklustre, despite the economy growing at a decent pace. Although,
off late the situation has been improving, the dependence on monsoon is very high.
Sectoral woes - Rising prices of raw materials and fuels, and inturn, increasing packaging
and manufacturing costs. But the companies’ may not be able to pass on the full burden of
these onto the customers.

RESEARCH METHODOLOGY
I have carried out a research which is both qualitative and quantitative in its support. The
qualitative approach applies to both, descriptive and inductive forms of research. While as in
case of quantitative approach, an extensive use has been made of the literature available to
carry out a detail research on the nature of the problem. I have chosen Nestle as the target
company for my research study.
METHOD OF DATA COLLECTION & ANALYSIS

The data, after collection, has to be processed and analyzed in accordance with the outline
laid down for the purpose at the time of developing the research plan. This is essential for a
scientific study and for ensuring that we have all relevant data for making contemplated
comparisons and analysis.
I have conducted a graphical analysis based on the responses received from the persons
questioned and interviewed. Once the interview was over, the responses received were be
grouped together, and a graphical presentation and analysis has been made for every set of
questions.
NATURE OF DATA:
I have made use of both, the primary sources and the secondary sources of data in eliciting
information.
PRIMARY DATA:
The primary source of data involves oral interviews and questionnaires. These sources are
inadvertently expected to yield more qualitative data and results.
SAMPLE SIZE: 100
SURVEY AREA: East Delhi
PRIMARY DATA COLLECTION METHODS

INTERVIEWS:
I have conducted oral interviews with retailers of Nestle. In considering an oral interview of
such a nature, a follow up and step by step approach was adopted in getting through the
interviewees. The oral interview involved a set of well thought out questions that were asked
and the responses there on noted as a basis for analysis. Subsequently a graphical analysis has
been made based on the responses received from the persons questioned and interviewed.

SECONDARY DATA COLLECTION METHOD
The secondary source of data includes relevant literature including periodicals and journal
articles in the areas of Marketing, customer satisfaction.
LIMITATIONS
The only limitation in this survey was that I could not conduct a survey on a big scale, due to
the time constraint.

OBJECTIVE OF THE STUDY
Primary Objective:
 To find out sales volume of Nestle Confectionary vis-à-vis competitor
 To find out the major Nestle competitors
 Suggestion for the company from retailers
Secondary Objective:
 To increase their market share by approaching to retailers who prescribe competitor’s

product.
 To have a good image in the eyes of retailers.

DATA:-
List of Visiting Retail Store:
S No. STORE ADDRESS

1 B.K. Bekary Seelampur
2 Ess Crown Medicos Seelampur
3 Chinar Medical Store Seelampur
4 Asif Store Seelampur
5 Lee Crown Seelampur
6 Alshifa Medicos Seelampur
7 Morning corner Seelampur
8 Peris Medicos Seelampur
9 Indra Medicos Seelampur
10 Shahid Bakery Seelampur
11 Dee Crown Medicos Seelampur
12 The Navera Medicos Seelampur
13 Madina Medical Seelampur
14 Naaz Bakers Seelampur
15 Fresh Corner Seelampur
16 Morning Center Zafrabad
17 Abbasi General Store Zafrabad
18 Aarif General Store Zafrabad
19 Shahid Bakers Zafrabad
20 Naz Bakery Zafrabad
21 Sai Medical Store Gokalpuri
22 Radhey Lal Store Gokalpuri
23 Mahesh Store Gokalpuri
24 Raj Confectionery Gokalpuri
25 Life Care Medical Gokalpuri
26 Ghoswami Confectionery Gokalpuri
27 Ganesh Medical Gokalpuri
28 Vishnu Medical Gokalpuri
29 Aggrawal General Store Gokalpuri
30 Ankit Store Gokalpuri
31 Aggrawal Provision Store Gokalpuri
32 Aggrawal Keshav Gokalpuri
33 Gupta Store Gokalpuri
34 Swastik Store Dilshad Garden
35 Nanak Sweets Dilshad Garden
36 SK Chemist Dilshad Garden
37 Pradeep Store Dilshad Garden
38 Kamal Medical Dilshad Garden
39 AV Store Dilshad Garden
40 Sharma Store Dilshad Garden

41 Chandan Pharma Dilshad Garden
42 Krishna Store Bhajanpura
43 Deepak Store Bhajanpura
44 Goyal Store Bhajanpura
45 Mansi Store Bhajanpura
46 Shivani Store Bhajanpura
47 Prateek Store Bhajanpura
48 Pratap Store Bhajanpura
49 SN Confectionery Bhram Puri
50 Rohit Medical Bhram Puri
51 Yadav confectionery Bhajanpura
52 Gupta Store 3 Bhajanpura
53 Jay Bhawani Store Bhajanpura
54 Manoj Kumar General Store Bhajanpura
55 A-One Medical Store Seelampur
56 Malik Medical Seelampur
57 Akash Store Seelampur
58 Aalam Bakery Seelampur
59 Do Bhai Store Seelampur
60 Haseen Store Seelampur
61 Aggrawal Store Seelampur
62 New Fine Bakery Seelampur
63 Habib Store Seelampur
64 Star Bakery Seelampur
65 Best Bakery Seelampur
66 Super Store Gokalpuri
67 Himanshu Store Gokalpuri
68 Goyal Trader Gokalpuri
69 Neeraj Store Gokalpuri
70 Kapoor Store Gokalpuri
71 Shubh Lakshmi Gokalpuri
72 Raj General Store Gokalpuri
73 BL Medical Store Gokalpuri
74 Khan Store Gokalpuri
75 Sunil Store Gokalpuri
76 Gulshan Sweets Gokalpuri
77 Nice Dairy Gokalpuri
78 Noori Sweets Gokalpuri
79 Milan Medical Gokalpuri
80 Crown Medical Gokalpuri
81 Mehta Medical Dilshad Garden
82 GTB Medical Dilshad Garden
83 Jain Confectionery Dilshad Garden
84 Dower Confectionery Dilshad Garden
85 Gupta Store Dilshad Garden
86 Gupta Medicos Dilshad Garden

87 Royal Medicos Dilshad Garden
88 Bagga Store Dilshad Garden
89 Nutan Store Dilshad Garden
90 Aggrawal & Sons Dilshad Garden
91 Astha General Store Dilshad Garden
92 Arun Store Dilshad Garden
93 S. Ram Medical Dilshad Garden
94 Dipak Automobile Dilshad Garden
95 SK Medicos Dilshad Garden
96 Famli Medicos Dilshad Garden
97 Kamna Confectionery Dilshad Garden
98 Bhaul Chemist Dilshad Garden
99 Trilok Chemist Dilshad Garden
100 Malik Confectionery Dilshad Garden

DATA ANALYSIS
NOTE: Some of the Data are taken on the basis of Individual Product with
Individual Percentage.

Q.1 Name the confectionery brands you stock at your outlet?
Nestle Cadbury Parle Dabur Perfetti Others

60 55 40 20 70 15
80
70
70
60
60 55
50
40
40
30
20
20 15
10
0
Brand Availability in Retailers out of 100
 Retailers have number of brands in their store.

 Perfetti is on the top most preferred brand among the Retailers.
 Nestle is also on the handsome position but Perfetti is more famous among the
Retailers.
 The Main competitors over the market are Perfetti & Cadbury.
Q.2 Name and rank the top five brands you stock at your outlet?

55 50 30 15 65 10
70 65
60 55
50
50
40
30
30
20 15
10
10
0
These brands are taken on the basis of top five brands stock at the outlets.
 Supported by this chart Perfetti is on the top most position by 65 out of 100
Retail stores.
 Other players are also on the strong position as Nestle is on the 2 nd position
covered area by 55 out of 100.
 To cater this market Nestle have to provide some value added service to his
retailers.
Q.3 Please tick the Nestle Brands you stock at your outlet? (Tick Please)

Éclairs 50p V.A. Éclairs POLO
75 85 60
90
80
70
60
50
40
30
20
10
0
Éclairs 50p V.A. Éclairs POLO
Availability of Nestle confectionery Item in the retail stores
 According to this chart V.A éclairs is on top most position 85 out of 100 retail
stores.
 Éclairs 50p is also having a good market but due to the same taste of V.A éclairs
the most retailers prefer that.
 Polo has also good market share but due to the limited preference by customer
retailers prefer less in competition of others.
Q.4 Please rank the Nestle Brands according to their sales?
Éclairs .50 V.A. Éclairs POLO

40 65 55

70
65
60
55
50
40
40
30
20
10
0
Eclairs .50 V.A. Eclairs POLO
Rank of the Nestle Brands according to their sales
 As written on the previous chart V.A.Eclairs is the top most preferred brand
among the retailers.
 65 retailers out of 100 are shown their preferences to the V.A.Eclairs .
 Polo is also 2nd position among the retailers with 55 out of 100.
 Eclairs.50 has also the beautiful market in this confectionary segment with 40
out of 100 retailers.
Q.5 What percent of stock at your outlet is Nestle?
Nestle Others

20% 80%
80%
80%
70%
60%
50%
40%
30% 20%
20%
10%
0%
Nestle
Others
Percentage of Nestle and other competitor brand
 The availability of Nestle in confectionary item is only 20% but number of

players is very high so that we have the result that in this confectionary segment
Nestle has very powerful market.
 Others players are Cadbury, Dabur, Perfetti, Parle, ITC. They together covered
other 75% market.
 There are also some small players which covered other 5% of market.
 To cater more market company have to provide some value added service as well
as have to give some schemes among the retailers.
Q.6 What percent of total sales is Nestle at your counter?
Nestle Cadbury Parle Perfetti

Percentage 31% 21% 14% 34%

sales of
confectionery
Percentage sales of confectionery

34%
35% 31%
30%
25% 21%
Percentage sales of
20% confectionery
14%
15%
10%
5%
0%
Nestle Cadbury Parle perfetti
Percent of total sales at counters
 Perfetti is on the top most preferred brand among the Retailers by holding 34%
of overall market.
 Nestle is also on the handsome position with holding 31% of overall market.
 The Main competitors of Nestle over the market are Perfetti & Cadbury.
Q.7 From where do you procure Nestle Confectionery?

Distributor Wholesalers
96% 4%
96%
100%
90%
80%
70%
60%
50%
40%
30%
20% 4%
10%
0%
Distributor Wholesalers
 96% retailers are procuring Nestle Confectionery from Distributor and only 4%
procure Nestle Confectionery from Wholesalers. That’s show the effective
Supply chain management of Nestle.
 Due to effective supply chain management Nestle cater very huge market of
retailers.
Q.8 Which are the seasons for maximum sales?

Summer Winter
45% 55%
55%
60%
45%
50%
40%
30%
20%
10%
0%
Summer Winter
Sales of Nestle Product season wise
 Supported by this graph a very interesting finding is occur that 55% retailers
are shown his interest to make us understand that winter is more prefer time to
sail nestle Product. But 45% are also exist there who said that summer is very
special to sail nestle product .But there is no specific reason fine out.

Q.9 (a) Do Customers (Retailers) prefer Nestle Confectionery to other brands? (Yes/No)
Yes No
70% 30%
80%
70%
70%
60%
50%
40%
30%
30%
20%
10%
0%
Yes No
Preference of Nestle Brand compression to others
 As we stated previously that Nestle have good market. Most of retailers stated
that they prefer Nestle Confectionery sail in comparison to other brands. The
percentage of preferred retailers is approximately 70%.and other who don’t
prefer Nestle brand is only 30%.
Q.10 (b) Do Customers (Retailers) prefer Nestle Confectionery to other brands?

(Yes/No) Why?

Price Quality Of Product Schemes Variety
55 20 60 45
60
55
60
45
50
40
30
20
20
10
0
Price Quality Of Product Schemes Variety
Reason to prefer Nestle Brand
 Main reason to have Nestle Confectionery brand among the retailers is Schemes.
Most of the retailers have this brand due to schemes and price & quality of the
products.
 Very effective price and quality are affected to absorb that Nestle Confectionery
product among the retailers.
Q.11 (a) Do you prefer to sell Nestle Confectionery over other Brands? (If Yes/No
Why)?

Yes No
85% 15%
90% 85%
80%
70%
60%
50%
40%
30%
20% 15%
10%
0%
Yes No
 Main reason to have Nestle Confectionery brand among the retailers is Schemes.
Most of the retailers have this brand due to schemes and price & quality of the
products and approximately 85% are prefer to sail nestle product.
 Very few, approximately 15% are not preferred to sail Nestle product.
 Very effective price and quality are affected to absorb that Nestle Confectionery
product among the retailers.

Q11. (b) Do you prefer to sell Nestle Confectionery over other Brands? (If Yes/No
Why)?
Promotional
Margin Schemes Demand Variety
60 45 55 20
60
55
60
45
50
40
30
20
20
10
0
Margin Promotional Schemes Demand Variety
Reason to sell Nestle Confectionery
 Main reason to sell Nestle confectionery over other brands is the schemes
provided by the company over other brands.
 Sometimes the company provides the schemes which are very preferable to the
Retailers.

Q.12 Do you face any problem while selling Nestle Confectionery to customers?
Yes No
15% 85%
85%
90%
80%
70%
60%
50%
40%
30%
15%
20%
10%
0%
Yes No
Facing any problem while selling confectionery
 85% of Retailers are said that they never face any kind of problem while sailing
Nestle product to the consumer, but 20% are also said that they had faced some
problem while sailing Nestle product. That shown the image of Nestle among the
retailers is very effective.

Q.13 Do you face any problem with Nestle India Limited?
Yes No
20% 80%
80%
80%
70%
60%
50%
40%
20%
30%
20%
10%
0%
Yes No
Facing any problem with Nestle India ltd.
 80% of Retailers are said that they never face any kind of problem to having
Nestle product in their store, but 20% are also said that they had faced some
problem while sailing Nestle product. That shown the image of Nestle among the
retailers is very effective.
Q.14 Will you recommend Nestle Confectionery to customers?

Yes No
85% 15%
85%
90%
80%
70%
60%
50%
40%
30%
15%
20%
10%
0%
Yes No
%age of Retailers who want to recommend Nestle Confectionery among the customers
 Supported by chart 85% retailers are very much satisfied with the process of
Nestle. they also want to recommend nestle product among the consumer.25% of
also there who don’t want to recommend Nestle product.
Q.16 Please rate the performance of Nestle Confectionery on the basis of following
features? Numbers from 1 to 6 is Very Low to Extremely High.

Promotional Understands
Price Product Quality Scheme Variety Customers
3 5 4 4 5
Credibility of Promptness in
Nestle Margins Demand Delivery Advertisement
6 3 4 3 3
7
6
5
4
3
2
1
0
ty e s s y t
ice ali em
ty er stl
e
gin an
d
er en
Pr u h arie m Ne ar m le iv m
Q Sc V to of De se
uc
t l us M D eti
d na s C i ty in v
o o
nd bi
l ss A d
Pr oti ta di n e
om s e pt
Pr de
r Cr o m
Un Pr
 These performances are calculated on the basis of ranking from very low to
extremely high.
 In which credibility of Nestle is given the extremely high ranking by 55 retailers
out of hundred.

Q.17 Please rank the following according to your preference what you think is most
important for customers while buying confectionery? Numbers from 1 to 6 is Most
Important to Least Important.
Quality Of Promotional
Price Product Brand Name Scheme Margins
3 1 2 4 3
3.5
2.5
1.5
0.5
0
Price Quality Of Product Brand Name Promotional Scheme Margins
 In this case Quality of the Product has given the Rank 1 i.e. Most
Important. Whereas least important is given to no other thing.

RESULTS AND FINDINGS
Analysis is done on the basis of:-

 Price of the Product
 Quality of the Product
 Brand Name
 Taste
 Schemes and Margins provided by the company.
 Perfetti is the market leader in comparison to its competitors and the major competitors
are Cadbury, Nestle, Parle and Dabur in East Delhi.
 These products are mostly sold on the Promotional Schemes provided by the company.
Such as Nestle Éclairs Dino Pack worth Rs.25
 These Promotional Schemes attract many customers which increases the sales of the
product offered by the company.
 Only one part where the company is lacking is the schemes provided to the retailers. The
retailers are not satisfied with the schemes provided by the company as compared to the
competitors.
 Somewhere and somehow in some of the jars the schemes provided by the company is
satisfactory for the retailers.
 On the other hand retailers are happy to sell these products to the customers because of
the demand whereas the taste and different varieties of product offered by the company.
 Nestle confectionery is provided at different prices such as 50p Éclairs, V.A. Éclairs, Rs.2
POLO and Rs.5 POLO. So customers can buy any range products.
 The company manufactures the product by understanding the customer needs and
demands.
 Whereas the Credibility of Nestle is extremely high in the eyes of the customers.
 Demand of the product is also high because of the Brand Name, Promotional Schemes,
Variety and taste of the product.
 The quality of the product provided by the company is shown by the high sales of the
goods which we have already done and mentioned.

CONCLUSION
First of all, I would like to say that it was a real interesting experience because it was the first
time in my schooling that I work on a project which seems to be professional. However, I met
many technical difficulties. Indeed, it was really difficult to be creative at each time and to
find more and more information about the candies.
During the summer training I worked with sales man of Nestle who deal various markets of
Delhi. I got an enriching experience about selling and how to convince the customer to buy
the product or to win an order. Salesmen of Nestle had much work experience (All had work
experience of 5 to 6 years). Working with World’s one of the top FMCG company like Nestle
gave me practical experiences about nature of consumers, market and how to deal customers
in the practical life in a market. It was for the first time when I was in the market to deal with
the customers and company like Nestle gave me great exposure about the markets, nature of
markets, nature of customers and how to deal with the customers. I also worked with the
distributors of Nestle in Delhi and got knowledge and experience of distributor’s work. The
experience I got during my summer training was different from the class room experience.

RECOMENDATIONS
Points where company should pay attention and are reason where should
they overcome: -
1) Whole sell market: - Prices of products in the whole sell market is less then company so
kirana stores, medical stores and panwalas buy products from whole sell according to their
need and demand. For ex. MRP of Éclairs is Rs.60 then its Cost Price is Rs.47 in whole sell
and Rs.50 in company. To overcome this problem it is necessary the company provides
schemes and replacement offer to the shopkeepers.
2) Melting Problem: - Chocolates get melt in summers due to high temperature so
shopkeepers who do not have cooling system are not ready to buy chocolates. So it is
necessary to sell more of the confectionery items in summer because it never melts during
summer.
3) Jo dikhata hai wahi bikta hai: - Company should provide posters banners etc. by which
shopkeepers make costumers aware that he sell chocolates and confectionery of Nestle. This
problem comes mainly in potentially low markets like Gokalpuri and Bhajanpura etc.
4) Some of the markets need more focus are: - Gokalpuri, Bhajanpura, Zafrabad etc. These
markets are potentially low markets where sell of Branded Confectionery are very low. And
they buy from whole sell if required. It is necessary to provide incentives to the Sales Man by
providing at least 2 jars of confectionery in each shop.
5) Salesmen concentrate mainly on confectionary to be sold on kirana, bakeries, and medical
stores and shows no attention on small shops.
6) Sales men’s visit problem: - SM were dealing only those counters which are potentially
efficient, normally regular in payments. They used to open only those new counters which are
potentially efficient and ready to deal 3 to 4 initial dealings in cash.
7) Some of the shops which are small and near to big bakeries and confectionaries do not sell
products due to low sale.
8) Shops which are near to schools and colleges usually keep less of the chocolates and
confectionery when schools and colleges are closed.

ANNEXURE
Questionnaire – Retailers
Name of the Retail Outlet :
Location of the Outlet :
Please read the following questions carefully and answer appropriately.
1. Name the Confectionery Brands you stock at your outlet.

_______________________________________________________________
2. Name and rank the top 5 brands at your outlet.(according to Sales)

_______________
_______________
_______________
_______________
_______________
3. Please tick the Nestle brands you stock at your outlet. (Tick please)
 Éclair 50p
 V.A. Éclairs
 POLO
4. Please rank the Nestle brands according to their sales.
 Éclair 50p
 V.A. Éclairs
 POLO
5. What % of stock at your outlet is Nestle (no of cases)?

______________
6. What % of Total Sales is Nestle in your counter –

7. From where do you procure Nestle Confectionery? (Tick please)
 Distributor
 Wholesalers
8. Which are the seasons for maximum sale (Tick please).
 Summers
 Winters
Others: ________________________________________________________
9. What is the expected traffic at your outlet? (No. Of customers per day)
______________
10. Do customers prefer Nestle Confectionery to other brands (If Yes / No, Why)? (Tick
please)
 Price
 Quality of product
 Schemes
 Variety
11. Do you prefer to sell Nestle Confectionery over other brands (If Yes / No, Why)?
(Tick please)
 Margins
 Promotional Schemes
 Demand
 Variety
12. Do you face any problem while selling Nestle confectionery to customers?
_______________________________________________________________
13. Do you face any problem with Nestle India Limited?

_______________________________________________________________
_______________________________________________________________
14. Will you recommend Nestle Confectionery to customers? (Tick please).

Yes  No 
Why ___________________________________________________________

15. Any Recommendations.
_______________________________________________________________
_______________________________________________________________
16. Please rate the performance of Nestle Confectionery on the basis of following
features. (Please circle the response number that best describes how NESTLE has
performed on that feature.) For any feature(s) that you feel is (are) not relevant to your
evaluation, please circle (NA)
(6 – Extremely High, 5 – Very High, 4 – High, 3 – Adequate, 2 - Low, 1 – Very Low)
a) Price (NA) Extremely High 6 5 4 3 2 1 Very low

b) Product Quality (NA) Extremely High 6 5 4 3 2 1 Very low
c) Promotional schemes (NA) Truly Satisfied 6 5 4 3 2 1 Totally Dissatisfied
d) Variety (NA) Extremely High 6 5 4 3 2 1 Very low
e) Understands Customer (NA) R. Understands 6 5 4 3 2 1 No Clue
f) Credibility of Nestle (NA) Extremely High 6 5 4 3 2 1 Very low
g) Margins (NA) Extremely High 6 5 4 3 2 1 Very low
h) Demand (NA) Extremely High 6 5 4 3 2 1 Very low
i) Promptness in Delivery (NA) Extremely Quick 6 5 4 3 2 1 Very Slow
j) Advertisements (NA) Extremely High 6 5 4 3 2 1 Very low
17. Please rank the following according to your preference what you think is most
important for customer while buying confectionery from 1 to 6. (1 – Most important & 6
– Least important)
a. Price 
b. Quality of Product 
c. Company / Brand Name 
d. Promotional Schemes 
e. Margins 

BIBLIOGRAPHY
Web Sites:
www.iloveindia.com
www.google.com
Books:
C.R.Kothari Research Methodology
Philip Kotler Marketing
News paper:
The Economic Times

Nestle Project

Uploaded by

Copyright:

Available Formats

Nestle Project

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Nestle Project

Uploaded by

Copyright:

Available Formats

What is the objective of the study?

What is the objective of the study?

What brands of confectionery does Nestle produce?

What brands of confectionery does Nestle produce?

PROJECT REPORT

“Comparative Sales Study of Nestle

ITS GHAZIABAD 1 2009-2011

“Comparative Sales Study of Nestle Confectionery

POST GRADUATE DIPLOMA IN

Under Supervision of: By:

ITS GHAZIABAD 2 2009-2011

ITS GHAZIABAD 3 2009-2011

ITS GHAZIABAD 4 2009-2011

ITS GHAZIABAD 5 2009-2011

ITS GHAZIABAD 6 2009-2011

ITS GHAZIABAD 7 2009-2011

PROFILE OF THE COMPANY

ITS GHAZIABAD 8 2009-2011

Nestle was promoted by Nestle Alimentana, Switzerland, a wholly owned subsidiary of

ITS GHAZIABAD 9 2009-2011

ITS GHAZIABAD 10 2009-2011

ITS GHAZIABAD 11 2009-2011

ITS GHAZIABAD 12 2009-2011

Research and development

ITS GHAZIABAD 13 2009-2011

Flexibility and simplicity

Handling of raw materials

ITS GHAZIABAD 14 2009-2011

 respect natural resources by efficient use of raw materials and energy

 evaluation of individual plant performance with regard to operations which have an

ITS GHAZIABAD 15 2009-2011

Information on developments in environmental protection technology and practices is

Marketing and distribution

Environmental product claims in advertising, promotional material and on packaging are in

Our aim is to minimize wastage in communication, publicity and promotional material, in

Consumer promotions and merchandising material such as consumer offers, in store

ITS GHAZIABAD 16 2009-2011

Legislation and Regulations

ITS GHAZIABAD 17 2009-2011

Nestlé respects the environment and is committed to environmentally sound business

ITS GHAZIABAD 18 2009-2011

Figure: framework for formulation of a brand strategy

1. Experiential marketing: the first component of branding strategy is the experiential

Figure: dimensions of effective branding

3. Novel Brand Strategies

ITS GHAZIABAD 19 2009-2011

4. Feedback and Improvements

PRODUCT BUNDLING: An Important Branding Strategy

• There are economies of scale in production,

ITS GHAZIABAD 20 2009-2011

Milk Products & Nutrition: From shelf-stable solution to chilled dairy.

Beverages: Drink to an active life with Nestlé Beverages.

ITS GHAZIABAD 21 2009-2011

WHAT IS BRAND IDENTITY

ITS GHAZIABAD 22 2009-2011

ITS GHAZIABAD 23 2009-2011

ITS GHAZIABAD 24 2009-2011

ITS GHAZIABAD 25 2009-2011

 Sorbets - Smoked Salmon, Tomato, Cucumber

ITS GHAZIABAD 26 2009-2011