A

PROJECT REPORT ON
A STUDY REPORT ON MARKETING STRATEGIES USED BY
NESTLE
SUBMITTED
IN FULFILMENT OF REQUIREMENT FOR THE AWARD OF
DEGREE OF MASTERS OF COMMERCE IN BANKING AND
FINANCE
SUBMITTED BY
MS. SAILEE TUSHAR BHOLE
ROLL NO. 03
MCOM (BANKING & FINANCE)
PART 2
PROJECT GUIDE
PROF. DR.Mrs.SMITA BHIDE
SUBMITTED TO
UNIVERSITY OF MUMBAI
(2015-16)
VPMS
K. G.JOSHI COLLEGE OF ARTS &N.G. BEDEKAR COLLEGE
OF COMMERCE

DECLARATION

I, Sailee Tushar Bhole a student of K.G. Joshi College of

Arts & N.G. Bedekar College of M.Com in Banking and
FINANCE

(PART 2) hereby declare that

completed this project on

I have

A STUDY

REPORT ON MARKETING STRATEGIES USED BY

NESTLE COMPANY in the academic year 2015-16.The
information submitted in this project by me is true &
original to my best knowledge.

SIGNATURE
PLACE:
DATE:

ACKNOWLEDGEMET

M/S. Sailee Tushar Bhole

(M.Com Banking and Finance)

It is a matter of prestige to be able to submit the

project on
MARKETING

A STUDY REPORT ON
STRATEGIES

USED

BY

NESTLE

COMPANYIn the academic year 2015-16.The project

is required to be done for the partial fulfillment of the
course of studies. I would take this opportunity to
thank my guide at Joshi-Bedekar College of Arts and
Commerce, Prof. DR.MRS SMITA BHIDE for offering
me with the necessary guidance required for the
project.
I am grateful to the Principal Dr. Mrs. Shakuntala A
Singh & the co-ordinator Prof D. M. Murdeshwar for
their support. I would also like to thank the library staff
of the college for providing me with the necessary
books & references for the completion of the project.

TABLE OF CONTENT
SR NO.

PARTICULARS

PAGE NO.

INTRODUCTION TO NESTLE.

5
6-8

1.1

HISTORY
9-10

1.2

COMPANY PROFILE.

1.3

MISSION AND VISION.

12

1.4

KEY OBJECTIVE

13-14

1.5

CORPORATE CULTURE

15

1.6

BUSINESS LINE

16-17

MARKETING STRATEGY

18

2.1

DEFINATION AND
MEANING.

19

2.2

TYPE OF MARKETING
STRATEGIES

20-25

2.3

IMPORTANCE OF
MARKETING STRATEGY.

26-28

MARKETING STRATEGY
USED BY NESTLE

29

3.1

MARKETING MIX

30-33

3.2

MARKETING STRATEGY

34-39

CONCLUSION

40

BIBLIOGRAPHY.

41

Chapter One.

Introduction
To

1.1 HISTORYNestl S.A. is a Swiss transnational food and drink company headquartered
in Vevey, Vaud, Switzerland. It is the largest food
company in the world measured by revenues, and
ranked #72 on the Fortune Global 500 in 2014.
Nestls products include baby food, medical
food, bottled water, breakfast
cereals, coffee, tea, confectionery, dairy products, icecream, frozen-food, pet foods & snacks. Twenty-nine of
Nestls brands have annual sales of over CHF1 billion
(aboutUS$1.1 billion), including Nespresso, Nescaf, Kit
Kat, Smarties, Nesquik, Stouffers, Vittel, and Maggi.
Nestl has 447 factories, operates in 194 countries and
employs around 339,000 people. It is one of the main
share holders of LOreal, the worlds largest
cosmetics company.
Nestl was formed in 1905 by the merger of the AngloSwiss Milk Company, established in 1866 by brothers
George Page and Charles Page, and Farine Lacte Henri
Nestl, founded in 1866 by Henri Nestl (born Heinrich
Nestle). The company grew significantly during the First
World War and again following the Second World War,
expanding its offerings beyond its early condensed milk
and infant formula products. The company has made a
number of corporate acquisitions, including Crosse &
Blackwell in 1950, Findus in 1963, Libby's in 1971,
Rowntree Mackintosh in 1988, and Gerber in 2007.

Nestls origins date back to 1866, when two separate

Swiss enterprises were founded that would later form
the core of Nestl. In the succeeding decades, the two
competing enterprises aggressively expanded their
businesses throughout Europe and the United States.
In August 1867 Charles (US consul in
Switzerland) and
George Page, two
brothers from Lee County, Illinois, USA,
established the Anglo-Swiss Condensed Milk Company
in Cham, Switzerland. Their first British operation was
opened at Chippenham, Wiltshire, in 1873
In September 1866 in Vevey, Henri Nestl developed
milk-based baby food, and soon began marketing it.
The following year saw Daniel Peter begin seven years
of work perfecting his invention, the milk chocolate
manufacturing process. Nestl was the crucial cooperation that Peter needed to solve the problem of
removing all the water from the milk added to his
chocolate and thus preventing the product from
developing mildew. Henri Nestl retired in 1875 but the
company, under new ownership, retained his name
as Socit Farine Lacte Henri Nestl

In 1905 the companies merged to become the Nestl

and Anglo-Swiss Condensed Milk Company, retaining
that name until 1947, when the name Nestl
Alimentana SA was taken as a result of the acquisition
of Fabrique de In recent years, Nestl Health Science
has made several acquisitions. It acquired Vitaflo, which
makes clinical nutritional products for people with
genetic disorders; CM&D Pharma Ltd., a company that
specialises in the development of products for patients
with chronic conditions like kidney disease; and
Prometheus Laboratories, a firm specialising in
treatments for gastrointestinal diseases and cancer. It
also holds a minority stake in Vital Foods, a New
Zealand-based company that develops kiwifruit-based
solutions for
gastro-intestinal conditions.

In December 2014, Nestl announced that it was

opening 10 skin care research centers worldwide,
deepening its investment in a faster-growing market for
healthcare products. That year, Nestl spend about
$350 million on dermatology research and
development. The first of the research hubs, Nestl
Skin Health Investigation, Education and Longevity
Development (SHIELD) centers, will open mid 2015 in
New York, followed by Hong Kong and So Paulo, and
later others in North America, Asia and Europe. The
initiative is being launched in partnership with the
Global Coalition on Aging (GCOA), a consortium that
includes companies such as Intel and Bank of America.
Produits Maggi SA (founded 1884) and its holding
company, Alimentana SA, of Kempttal, Switzerland.
Maggi was a major manufacturer of soup mixes and
related foodstuffs. The companys current name was
adopted in 1977. By the early 1900s, the company was
operating factories in the United States, the United
Kingdom, Germany, and Spain. The First World War
created demand for dairy products in the form of
government contracts, and, by the end of the war,
Nestls production had more than doubled.

1.2 COMPANY PROFILE

Nestl has over 8,000 brands with a wide range of
products across a number of markets,
including coffee, bottled water, milkshakes and
other beverages, breakfast cereals, infant
foods, performance and healthcare
nutrition, seasonings, soups and sauces, frozen and
refrigerated foods, and pet food.
Although Nestle has been associated with India since
the beginning of the century through the importing and
trading of infant food and condensed milk,
manufacturing in India only began with the setting up
of the factory in Moga in 1962. The first product to be
manufactured was Milkmaid.
In the last 35 years the company has
hown rapid progress and has increased its product rang
e to 80products as of October 1997. Nestle India Ltd. no
w ranks 22ndamongst Indias most valuable companies
(Annexure B). Its gross revenue has increased from Rs
1001.1 cr. to Rs. 1213.8 cr. in 1996.
This
remarkable growth has been achieved through

Rapidly creating greater manufacturing capacity, both

at factories as well as with co-packers.
Taking measures to ensure availability and improved
quality of key raw materials - fresh milk in particular.
Strengthening of the sales and distribution network
(particularly in smaller towns).
Ambitious and cohesive manpower training and devel
opment programs for the personnel of the company
across all disciplines.
The companys exports also resulted in a very
successful year in this area as exports grew by 27% to
Rs. 250.8 crores in 2003. The main contributors to this
increase were the export of tea and coffee to USA,
Japan, Russia, Hungary and Taiwan. Nestle India Ltd.
wants to further increase its operations in India and has
started construction of its sixth Factory at Bicholim, Goa
for the manufacture of culinary products (a key thrust a
rea) for this purpose.

1.3 THE SPIRIT OF NESTLE.

Organisational excellence is never achieved through a

one time
effort; Its always a process of continuous
improvement across a number of areas of
operation
A key factor for Nestles success hasbeen its quest for c
ontinuousimprovement through ushering in greater
productivity and more efficiency in everyday
operations. Despite the infrastructure impediments in
India, Nestle has set itself high standards of business
performance. This is reflected through the essence of
the company its mission statement.

Nestles mission To b e i n e v e r y w a y t h e l e a d i n g
c o m p a n y i n t h e I n d i a n f o o d industry and
a good corporate citizen by providing our
consumers with s u p e r i o r q u a l i t y p r o d u c t s ,
o u r sh are h ol d e rs w i th r a p i d g r o w t h &
f a i r re t u r n s a n d o u r e m p l o ye e s w i th a c h a
l l e n g i n g a n d s a ti sf yi n g w o r k
environment.To translate this spirit into a
planned and measurable process, Nestle has
set up key objectives across all divisions.

1.4 KEY OBJECTIVES OF THE COMPANY.

Production
To optimize production costs while enhancing product
quality so as
to make Nestle products even more competitive in the
marketplace.

 Sales and marketing

To reach a sales turnover of 3000crores by the year
2003.
To double the turnover every three years
People
To help employees to retain a long term
perspective and integrate them fully with the
companys business goals.
To retain a broad perspective while addressing
individual needs.
To view growth as a continuous process
To concentrate on attitudinal changes by developin
g leadershipskills, an appreciation of
interdependence between units and the
enhancement of a sense of belonging to Nestle.

 Finance
To maintain profi t levels above the average for the
food industry in India. The Business Excellence and
Common Application (BECA) initiative essentially
translates the spirit of the Journey towards
excellence into an organised, systematic and
measurable approach. The aim is to aid the
achievements of the companys key objectives of
rapid growth by
ensuring that all operations incorporate the spirit of me
aningfulplanning, effective cost control and efficient
implementation. BECA is about planned improvement
in everything we do .

1.5 NESTLES CORPORATE CULTURENestle is one of the mostmultinational of multinational

s and is spread over 75 countriesworldwide. This
implies that it has employees from diverse cultural
backgrounds. Nestle respects the distinctive culture, m
entality andtraditions of every employee in every
country.
What Nestle aims at is to
incorporate its own culture into its employees without
stifling the individual employees culture and identity.
When we went to Nestle we could feel the existence of
a distinctive work culture amongst the management
- the staff seemed highly motivated & cheerful and
everybody had pin up boards in front of their tables
with reminders ,motivational messages and even time
logs
(The Nestle people seemed as if they availed of the
benefits of time management) .

1.6 BUSINESS LINE OF NESTLE.

COFFEE
Nescaf, Tasters Choice, Ricor, Ricoff y,
Nespresso, Bonka, Zogas,Loumidis.

WATER
Nestl Pure Life, Nestl Aquarel, Perrier, Vittel, Contrex, S.Pellegrino,Acqua
Panna, Levissima, Arrowhead, Poland Spring, Deer Park,
Ozarka,Hpar, Ice Mountain, Zephyrhills.

OTHER BEVERAGES
Nestea, Nesquik, Nescau, Milo, Carnation, Libbys, Caro,
Nestomalt,Nestl.

SHELF STABLE
Nestl Nido, Nespray, Ninho, Carnation, Milkmaid, La Lechera,
Moa,Klim, Gloria, Svelty, Molico, Nestl Omega Plus, Bear Brand,
Coffee-Mate.

CHILLED.
Nestl Sveltesse, La Laitire, La Lechera, Ski, Yoco,
Svelty, Molico, LC1,Chiquitin.

FOOD SERVICES.

Food service items basically deal with the out of

homesegments, which would include vending machin

es.Nestle's food service business is poised for rapidex

pansion to meet the growing need for such a
reliable,time saving and
cost effective service in this modernage.Nestle wants
to sell 500 million cups of tea and
coffeethrough its vending machines in the year 2000.
Itcurrently has 3500 vending machines at assortedloc
ations (both public and private). In 1995 Nestle
foodservice did well to vend 40 million cups of
Nescafe andTasters Choice tea. Its 1996 sales were
placed at 59million cups of Nescafe and 36 million
cups of tea; thisfigure was however way below the
expected sales for theyear.
In 2001 and 2002 nestle has come with a number of
new products like it has come with many of thediary
products like milk. The milk is avaliable inthe market
in the full cream , toned and doubletoned milk. The
nestle has also come with thedahi, butter which is
available in the market but at very few shops
.NESTLE has also come with the products which will
target the children like
FRUITIPS,MILKYBARCHOO,NESTLE CHINESE MAGGI
NOODLES.

To put all the product launches into perspective,

Nestlenow has 80 products including various flavors andva
riants this awesome list of 80 products for mostcompanies
is an overfull palate. Nestle India Ltd. Still
has a variety of new products in the pipelines. Itbelieves in
slowly colonizing as much territory as fast asit can,
adapting to native conditions and then work at'Holding off
the advancing herds'.

CHAPTER 2.
MARKETING
STRATEGIES.

2.1 DEFINATION AND

MEANING.
Marketing strategy has the fundamental goal of
increasing sales and achieving a
sustainable competitive advantage. Marketing
strategy includes all basic, short-term, and longterm activities in the field of marketing that deal
with the analysis of the strategic initial situation
of a company and the formulation, evaluation
and selection of market-oriented strategies and
therefore contribute to the goals of the company
and its marketing objectives.
DEVELOPING A MARKETING STRATEGY.

The process usually begins with a scan of the business

environment, both internal and external, which includes
understanding strategic constraints. It is generally
necessary to try to grasp many aspects of the external
environment, including technological, economic,
cultural, political and legal aspects. Goals are chosen.
Then, a marketing strategy ormarketing plan is an
explanation of what specific actions will be taken over

time to achieve the objectives. Plans can be extended

to cover many years, with sub-plans for each year,
although as the speed of change in the merchandising
environment quickens, time horizons are becoming
shorter. Ideally, strategies are both dynamic and
interactive, partially planned and partially unplanned,
to enable a firm to react to unforeseen developments
while trying to keep focused on a specific pathway;
generally, a longer time frame is preferred. There are
simulations such as customer lifetime value models
which can help marketers conduct "what-if" analyses to
forecast what might happen based on possible actions,
and gauge how specific actions might affect such
variables as the revenue-per-customer and the churn
rate. Strategies often specify how to adjust
the marketing mix; firms can use tools such
as Marketing Mix Modeling to help them decide how to
allocate scarce resources for different media, as well as
how to allocate funds across a portfolio of brands. In
addition, firms can conduct analyses of performance,
customer analysis, competitor analysis, and target
market analysis. A key aspect of marketing strategy is
often to keep marketing consistent with a company's
overarching mission statement.

2.2 TYPES OF MARKETING

STRATEGIES.

B2B Marketing
Business-to-business marketing is a marketing practice of individuals or
organizations (including commercial businesses, governments, and other
institutions). It allows businesses to sell products or services to other
companies or organizations that in turn resell the same products or services,
use them to augment their own products or services, or use them to support
their internal operations. International Business Machines is a well known B2B
marketer. IBMs business has grown because taking a very intelligent
approach at marketing their products to other business and governments
around the world.

B2C Marketing
The ultimate goal of B2C marketing (business-to-consumer marketing) is to
convert shoppers into buyers as aggressively and consistently as possible.
B2C marketers employ merchandising activities like coupons, displays, store
fronts (both real and online) and special offers to entice the target market to
buy. B2C marketing campaigns are focused on a transaction, are shorter in
duration, and need to capture the customers interest immediately. These
campaigns often offer special deals, discounts, or vouchers that can be used
both online and in the store.

Mobile Marketing
Marketing on or with a mobile device, such as a smart phone. Mobile
marketing can provide customers with time and location sensitive,
personalized information that promotes goods, services, and ideas.Here is a

recent example of mobile marketing in action.

Telemarketing
I know what you are thinking, you hate telemarketers. You are not alone in
your feelings. However, telemarketing can play an important part of selling
your products to consumers and it must not be overlooked as many
companies rely on it to connect with customers. Telemarketing (sometimes
known as inside sales, or telesales in the UK and Ireland) is a method of direct
marketing in which a salesperson solicits prospective customers to buy
products or services, either over the phone or through a subsequent face to
face or Web conferencing appointment scheduled during the call.
Telemarketing can also include recorded sales pitches programmed to be
played over the phone via automatic dialing. Telemarketing has come under
fire in recent years, being viewed as an annoyance by many.

Promotional Marketing
Promotional marketing is a business marketing strategy designed to stimulate
a customer to take action towards a buying decision. Promotional marketing is
a technique that includes various incentives to buy, such as:

Contests: We all enjoy winning something for free. Contests offer an

attractive marketing vehicle for small business to acquire new clients and
create awareness.

Coupons: According to CMS, a leading coupon processing agent,

marketers issued 302 billion coupons in 2007, a 6% increase over the

previous year. Over 76% of the population use coupons, according to the
Promotion Marketing Association (PMA) Coupon Council. Coupons still work
and provide an affordable marketing strategy for small business.

Sampling: Try before you buy. Giving away product might appear profitlimiting, but consider how giving your customers a small taste can lead to a
big purchase. Retail genius Publix supermarkets share samples of their
award-winning key lime pie not because people question the goodness of the
pie but to get their customers to buy more.

Cause Marketing
Finding a causes both your customers and your company cares about can
create magic for your business. This requires internal knowledge about what
your organisation cares about and who they want to help in the world. A good
example of this is Toms Shoes. Instead of doing the traditional buy one get
one free promotion, Toms built a strong customer following and reputation for
giving back by giving away a free pair of shoes to someone in need for every
shoe purchase made by their customers

Close Range Marketing (CRM)

Use Wifi or bluetooth to send promotional messages of their products and
services to their customers smartphones and tablets at close proximity. Close
Range Marketing is also known as Proximity Marketing.

Relationship Marketing
Many companies focus on building relationships with their customers instead
of always exclusive trying to sell them something (transactional marketing).
Customers who love your brand more will also spend more money with your
brand. Many traditional retailers have found this to be true. Walgreens has
seen that customers who buy from all of their purchasing channels (store,
web, mobile, etc) buy up to six times more than the average customer that
only buys in their store.

Transactional Marketing
Driving sales can be challenging, especially for retailers that have to
consistently sell products in high volume to consumers. In order to stay with
the demands of investors, retailers have to encourage consumers to buy using
coupons, discounts, liquidations, and sales events. High volume big-box
retailers like Target are constantly running promotional events in order to get
interested consumers into their stores.

Scarcity Marketing
In some markets its important to control how much product is available at one
time. In many cases this is done because of the difficulty of acquiring raw
materials or higher quality of the product. A company may choose to make
their products accessible to only a few customers. Rolls-Royces release of
theirChinese edition car called Phantom sold quickly. While the cost of the car
was higher than most cars the scarcity drove the desire and the price.

Word of Mouth Marketing

Word-of-mouth Marketing is the passing of information from person to person
by oral communication. Customers are very excited to share with the world the
brands they love. Many consumers find meaning in sharing stories of their
favorite products and services. Word of Mouth is one of the ancient ways
people learned about what to purchase. Modern marketers have learned how
to create authentic word of mouth for their companies and the products they
represent.

Viral Marketing
Cult Brand marketers are constantly creating new business ideas that keep
their products in the heart and minds of the global consumer. Each time a new
product is created, customers have to be given a reason to dream about their
future purchase. Sometimes marketers of Cult Brands hit on something so
great that people cant help but share with others. Getting your customers
talking about your products and services is very important to growing
awareness for your business.

Online Marketing
As commerce has propagated to the Internet, a new form of marketing has
emerged. From online banners to those annoying pop ups, online marketers
have attempted to get their customers attention any way they can. Most online
strategic marketing efforts today are a mix of growth hacking strategies ( A/B
testing taken to the max) and a variety of awareness tactics that drive

attention. A very effective online marketer is the insurance company Geico

who simply asks their users to enter their zip code for an instant quote on a
better savings.

Offline Marketing
With mass adoption of the Internet, many companies are finding new ways of
integrating offline marketing with new technologies to create more engaging
customer experiences. The Coca-Cola company has create vending
machines that invite customers to hug them. This continues to tie the CocaCola brand to the core emotion of happiness, but also invite customers to
experience the real product offline.

Niche Marketing
Finding a niche and filling it could be described as the secret recipe for growth
in over-crowded marketplaces. Take the shoe business, for example. There is
a great demand for shoes in the world and so many top companies have
evolved to satisfy most of the immediate shoe needs in the marketplace. The
shoe space might seem crowded, but shoe manufacturing
company Vans noticed an underserved customer: the skater. By focusing on
this niche market Vans has developed a thriving business.

2.3 IMPORTANCE AND NEED OF

MARKETING STRATEGIES IN AN
ORGANISATION.
Because one aspect of a marketing plan affects all of
the others, coordinating your activities is critical to
eliminating interference and maximizing your profits. A
marketing strategy looks at all of the areas of your
selling activities and helps each one support the next,
making sure all of your departments are aware of what
each is doing. Understanding how to create an
integrated marketing strategy will help you make better
individual decisions regarding specific marketing
tactics.
Streamlines Product Development.

A marketing strategy helps you create products and

services with the best chances for making a profit. This
is because marketing strategy starts with marketplace
research, taking into consideration your optimal target
customer, what your competition is doing and what
trends might be on the horizon. Using this information,
you determine the benefit customers and clients want,
what theyre willing to pay and how you can
differentiate your product or service from the
competition.

Helps Determine Optimal Prices.

Part of a marketing strategy is setting the right price for

your product or service based on what you learned in
your market research. If you learned that customers
want a high-end product in your category, your pricing
strategy might require you to sell at prices that create a
high-end perceived value. If your target customer is
bargain conscious and is willing to accept fewer bells
and whistles on your product in exchange for paying
less, your pricing strategy will require you to sell at or
below the competitions price.

Establishes Effective Distribution.

Once you know what product features youll offer, who

your target customer is and what your price points will
be, you can select where you want to sell to maximize
your marketing effectiveness. Younger customers will
be more likely to shop using a smartphone or on a
website, paying with PayPal or a credit card. Older
customers might prefer to shop at retail outlets. If your
market research shows you need to be in retail stores
but you dont have a sales force, you can use a
wholesaler or distributor.

Assists with Marketing Communications.

Your market research will help you create your brand,

or image you want to establish about your business.
Without marketplace research and a strategic

marketing plan, you might respond to solicitations from

advertising salespeople on an individual, reactionary
basis, sending messages that dont fit in with the brand
identity youve created based on your product
development efforts. A marketing strategy lets you
determine if a particular magazine, radio station or
website fits into your selling plans.

Organizational Impact.

When you have a marketing strategy, your

departments can better work with each other, because
they are all working from the same plan. For example,
your advertising people will talk with your product
development people to determine what message you
should send about your benefit. Your sales people will
talk with the people responsible for managing your
image to determine if they can offer discounts, coupons
or rebates without damaging your brand.

Tracks Costs / Measures Value:

A marketing plan provides a step-by-step guide to what
you are spending money on and when. It enables you
to budget marketing expenses--helping you keep
control of your expenditures, manage your cash flow,
track sales to marketing expense ratio, and measure
success of your marketing efforts. It also ensures that
product development dollars are not wasted.

 Helps with Focus:

Your marketing plan gives the company something to

rally behind. It helps staff understand goals and
become customer-focused. It also empowers them to
make decisions on their own that are consistent with
the company's objectives.

Reflects the Big Picture: In the daily routine of

putting out fires, it's hard to turn your attention to
the big picture, especially those parts that aren't
directly related to the daily operations. Writing your
marketing plan helps in determining your current
business status and provides a roadmap for business
goals.

Becomes a Document to Build On:

Creating your very first marketing plan is a time and

resource consuming endeavor, but well worth the
effort. Once the plan is complete, you just need to
make minor adjustments and tweaks to it; you won't
have to re-create it from scratch. It will serve as a
template and benchmark for you to work from as you
define your objectives and strategies for next year. It
becomes a living document for measuring sales
success, customer retention, product development, and

sales initiatives.

Chapter 3
Marketing
strategy used
by Nestle.

3.1 Marketing mix of nestle.

Products.
There are 4 different strategic business units within
Nestle which are used to manage various food
products.
Beverages One of the most known coffee brands
Nescafe, belongs to the house of Nestle and is one of
the cash cows for Nestle.
Prepared dishes and cooking aides Nestle has a
third category of products which comes into prepared
dishes and cooking aides. The major cash cow of Nestle
lies in this segment, which is Maggi Noodles.
Chocolates Nestle has some popular chocolate
products, most popular being Nestle Kitkat, Munch,
Milky bar, Eclairs and Polo.

two major brands of Nestle are a very high contributor

to its Brand equity Nescafe and Maggi. These are two
brands sold across India in small as well as big shops
and super markets. There have been many competitors
for these products, like Bru for Nescafe and Top ramen
and Sunfeast Yippie against maggi.
The appreciable factor in Nestle is that quality
maintenance of products is upto mark and there are
hardly any complaints about Nestles products in the
market. This is a major achievement for a company
which relies majorly on food products.

Price
The price is dependent on the market of each individual
products. For example, Nescafe and Maggi being the
clear leaders are priced with higher margins for the
company as compared to competition. This is because
the product quality is good enough and a bit of
skimming price will not cause the customer to switch

brands.
The strength of pricing for Nestle comes from its
packaging or consumption based pricing. For Nescafe
as well as Maggi, Nestle offers a lot of sizes and
package options. In supermarkets, you can even find a
16 packet maggi whereas in small retail shops, you can
find 5 rs maggi.
Thus, with the variety available, customer can make his
own choice based on his consumption. In other
products like Kitkat and Munch, due to tough
competition from other companies, Nestle offers
competitive pricing. You will find that nestle will be
similar priced to many of Cadburys Products in the
chocolate segment.

Promotion.
One of the most widely known tunes is the Nescafe
tune. It was one of the best advertising campaigns
and was launched at least 2 decades back. However,
that campaign brought Nescafe strongly in the
market.
On the other hand, Nestles brand was pushed by the
excellent product quality of Maggi and the witty and
innovative campaigns of Maggi. Where Nescafe
focuses on value and the good things in life, Maggi
focuses on moments you had with your Maggi. The

recent campaign was completely focused on your

maggi story, where people had to come out with
various innovative ways that they had their maggi.
Promotions for other products too is done smartly.
Kitkat focuses on Take a break and has done some
good marketing for the same. Kitkats website too is
very innoative and shows nothing but asks the visitor
to take a break and have a Kitkat. The major push
expected of a FMCG company is in sales promotions
at the ground level. This is where Nestle really rocks.
Nestle focuses on its strength which is Maggi,
Nescafe
and
Kitkat
which
are
the
most
promoted brands in the market on ground level.
Besides
this,
Nestle
regularly
uses
TVCs
and ATL marketing. It is also present online through
some smart creative. Overall, Nestle is a brand which
has strong products as well as strong marketing, and
hence the brand has a very high brand recall value.
We hope that Nestle keeps bringing in good products
and keeps maintaining the quality of the products it
already has.

Place.
Manufacturing >> C & F agent >> Distributors

>> Retailers >>Consumer.

Manufacturing >> Bulk buyers >> Consumer.

These are the two different forms of distribution which

Nestle has. It is typical of any FMCG company. However,
the Nestle channel is known to be strong with a good
marketing and sales network for channel distribution.
On top of it, Nestle regularly introduces trade discounts
and various tactics to keep the channel motivated. The
major challenge is in the distribution of Maggi which is
the most in-demand product along with Nescafe. Due to
these two products, Nestle is able to drive
other products in the market as well. Thus, on purchase
of one weak product, the distributor might get a
discount on the stronger product or vice versa.
The challenge for Nestle is in the chocolate segment
where it faces stiff competition from Cadbury and
hence selling the chocolates becomes difficult. Kitkat
might have its own brand positioning, but it is not
better than Dairy milk. Thus, converting retailers to sell
Nestle instead of Cadbury is the toughest task for
Nestle. This is converted mainly through promotions.

3.2 STRATEGIES USED BY NESTLE TO FACE

COMPETITION.
MARKET SEGMENTATION.

1. GEOGRAPHICAL SEGMENTATION.
Nestle is the worlds largest food company that did
marketing segmentation very well. They also base on

the geographic segmentation. Here they consider the

world region, country region and rural area.
World or country region:Nestle understands the geographical different in
needs and wants. For example: in Viet Nam, Nestle
has the Maggi brand with many kinds of Asia sauce,
but Maggi do not exist in England because of the
different in the geographical taste. While, Nestle sell
pet food in England and some other countries but
they do not sell in Viet Nam. So we can easily
understand that this company considers geographical
segmentation. Maggi Sauce in Vietnam.

Ruralareasegmentation.
Nestle also considers the rural area segmentation.
For example, in the city supper shopsof Asia keeps
Maggi /Nido milk and in rural areas nestle supplies a
much less product like Maggi or Nido milk.

2. DEMOGRAPHIC SEGMENTATION.

1)Age.
Nestle never offers the same product for the people
whose is 30 and whose age is 13. For example, nestle
offers Nescafe coffee for adult people and offering Milo
for children. Coffee for adult Milo for children

2)Family size life cycle.

Nestle offers their same product in different size of

containers to fulfill the different type of needs
according to the size of the family. For example, Nestle
chocolate offers different size of containers. The family
with many members can buy the large container to

satisfy everyone in the family, where a small family can

take the small one to do the same.

3)Income:
The people with small income can buy nestle product.
They produce that product which will save money. Like,
Nescafe coffee has a mini pack for instant coffee which
saves the money of limited income people.

3. Psychographic Segmentation

Nestle offers their product considering customers

psychographic segment, like, social class, lifestyle

and personality.

Social class:Many products of nestle company are highly affordable by

different the people of different social class.

Lifestyle and personality:Nestle Breakfast Cereals is the best choice for busy people
and Nescafe also help them more alert in working. Besides,
there are some people who love to eat can eat every time
and everywhere. Confectionery such as Smartest, Aero,
Butterfinger, and Orion can be called their best friends.

4 Behavioural segmentation.
Behavioral segmentation base on the different in knowledge,

attitudes or responses to a product.

Benefits:-

Nestle offers us the best quality, taste and price for baby food,
coffee and chocolate. Customers may buy other companies baby
food/coffee/chocolate, but no other company can provide the
quality and flavor that Nestle provides.
Readiness stage:-

Nestle is one of the most well known company in the world. A

very few people can found who dont know about this
companies product. Nestle figure out the stage of their customer
and make them more aware about their foods and nutrition.
Attitude Toward product:Nestle is always concern about the attitude of people toward
their product. The considers the feedback of their customers and
the other people and make their product more better to get the
positive opinion of their customers.

 User Status:A market has all types of customers. Nestle tries to measure user
status to take more customers into their segment, so that all
types of customer get opportunity to buy the product of Nestle.
All the following criteria are followed by the Nestle Company
for their segmentation.

5. Market targeting.
Market segmentation reveals the firms market segment

now must evaluate the various segments and

decide how many and which segment it can serve best. We now look
at how the company evaluate and target segments.
opportunities. It

.Right size and growth:Nestle company collets information about different type of
customer from market segmentation. Then analyze to select a
target market. They complete this task considering the size and
growth of the target market. Nestle mostly focus on the
geographic and demographic segmentation because, their
product is made based on this two segments.
Structural Attractiveness:Most of the companies have their similar competitors. Nestle
also considers its competitors so that, they can attract their target
market. They try to make a better product in a good price then
their competitors. But now a days there no close competitor of
nestle company. Nestle is also concern about the buyers power
and the suppliers power. To achieve the target market Nestle
need to satisfy the buyers as well as the suppliers. To avoid the
bargaining problem that is created by the buyers, Nestle
companies all products are at a fixed price. There is another
problem of substitute product. But because of the high quality
and affordability Nestle dont need to be worried about that
problem.

 Selecting target market;-After evaluating different segments,

Nestle Company decides which and how many segment it will
target. Buyers have unique need and want. So, nestle divided their
products according to the different segments of market. Nestle
company wants to use differentiated marketing strategy and the
company decides to target several market segments and designs
different offers for each segment. It decides to produce different
types of products based on age, family life cycle, social class and
lifestyle. Nestle tries to know what type of products are needed for
which type of people. At first, nestle company produces a product
for testing and experimenting for a specific segment and if it is
wanted by the target market, it changes the product types.

CONCLUSION.
Nestl
Indias
objective
is
to
manufacture and market the companys
products in such a way so as to create
value that can be sustained over the
long term for consumers, shareholders,
employees Nestle aims to create value
for consumers that can be sustained
over the long term by offering a wide
variety of high quality, safe food
products at affordable prices.
The company continuously focuses its
efforts to better understand the
changing lifestyles of modern India and
anticipate consumer needs in order to
provide convenience, taste, nutrition
and wellness through its product
offerings.

BIBLIOGRAPHY
NESTLE INDIA .
WIKIPEDIA
ECONOMICS TIME