PROJECT REPORT ON (TITLE OF YOUR REPORT)

SUBMITTED TO

DR. BHIM RAO AMBEDKAR UNIVERSITY, AGRA

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

Batch 2009-12 Session 2011-12

Submitted by: (Your Name) BBA VI Semester Roll No.: Enrollment No.

Supervised by: (Name of the Faculty) Asst. Professor -Dept. of Mgmt. GLA University, Mathura Formerly-GLA Inst. of Prof.Studies

CERTIFICATE

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, submitted by Mr./Ms., student of BBA VI Semester of this institute, is an original and independent work done by him under my supervision for the partial fulfillment for the award of the degree of Bachelor of Business Administration, Session 2011-12, Batch 2009-12.

Place: Mathura Date:

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entitled , is the outcome of genuine efforts done by me under an able guidance of Mr./Ms. and being submitted to Dr. B. R. Ambedkar University, Agra as dissertation in partial fulfillment for the award of the degree of Bachelor of Business Administration (BBA). Place: Mathura

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AKNOWLEDGEMENT

PREFACE

TABLE OF CONTENT

CHAPTER 1

INTRODUCTION

1.EXECUTIVE SUMMARY
Nestl 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, Nestl is the worlds 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 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, 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.

Lifestyle changes:
They consider quality life changes and take advantages of accordingly so that customer can convinced as well as it plays a vital role to attain & retain the customer. Consumer adopts the trend of changing environment because of modern facility as well as globalization they are aware about each and every thing happening all around them.

New Products
Nestle juices focusing concentric and conglomerate diversification because in present era it is not possible for any organization to exist in market for long run by providing just one product. So Nestle juices are diversifying according to changing demand of customers and trends.

Product innovation
Product innovation is becoming more necessary for the organization because of globalization people are becoming aware about the changes being taken place around them so in order tactical the situation nestle juices is focusing on product innovation by introducing new flavor of juices with the passage of time NESTLE JUICES use new tetra packing like easy open cork of pack.

Total spending on R&D

Spending on R&D is long term investment for any organization. Nestle has R&D department and head of R&D department is Mr Arshad Bhati. Nestle total spending on R&D 70 millions.

New communication technology

All the modern as well as traditional ways of communication are being adopted by Nestle juices including own emails, letters, faxes and monthly visit in different offices of Nestle juices for better communication among supplier, distributor and customers.

2.DISTRIBUTION NETWORK OF NESTLE INDIA LTD

2.1. DESCRIPTION OF DISTRIBUTION CHANNEL

Nestle India Limited is the primary company in India involved in the production of food products. It is very prestigious company its food products are regarded as quality food. Nestle India Limited has a wide distribution network operating on a national basis. The various channels of physical distribution for nestle are Mother Godown. Clearing and Sales Agents, Cash Distributors and Retailers(outlets) .

2.2.MOTHER GOWDOWNS
This is the first line agent in the distribution network for channels.Stocks are moved on consignment basis from the main factory to the different regions. These Mother godowns are the transshipment points. Nestle enters into a contract with the mother godownns. These agents in the form of mother godowns are given at flat fees by the principal company i.e. Nestle. 2.3. Clearing and Sales agents ( C & S ) These are the second line agents in the distribution channel. Clearing & Sales agents generate invoice on the basis of the requirement of the cash distributors. Once the invoice is generated by C&S agents and communicated to Mother Godown then stocks are released by mother godown to C&S.

2.4. Distributors

These are the third line agents in the distribution network. They are regarded as business partners by the company. The distributors send orders to C&S agents on weekly basis. The C&S Agents generate invoice, get the stock from mother

godown & supply them to the distributors. Nestle never provides goods to cash distributors on credit.

2.5.RETAILERS
This are the fourth final line agents in the distribution network. Categories of the retailers are the following:1. Wholesellers 2. grocery shop also called (Kirana shop) 3. Medical shop 4. Non-conventional outlets like panwalas

The distributors are responsible for the collection of money from the retailers. The retailers are not at the direct linkage with the principle company, i.e. Nestle retailers are link up with distributors.

SCOPE

OBJECTIVES

1. PRODUCTION: To optimize production costs while enhancing product quality so as to make nestle products even more competitive In the market place.

2. SALES AND MARKETING: to reach the turnover of sales to 3000 Carores over the year 2003 To double the turnover over the three yrs. 3. PEOPLE: to help employees to retain a long term prospective and Integrate them fully with the compnys business goal To retain a braod prospective while addressing individual needs To view growth as a continuous process To concentrate on attitudinal changes by developing leadership skills, an appreciation of interdependence between units And the enhancement of a sense of belonging to nestle.

4. FINANCE: To maintain the profit level above the average for the food industry in INDIA. The business excellence and common application (BECA) Initiative essentially translates the sprit of the journey towards excellence into an organised, systamatic approach.

CHAPTER 2

1. ABOUT NESTLE

1.1 PROFILE OF THE COMPANY:

Nestl with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestl 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. Nestl'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.

1.2 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 Indias 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. Nestles leading brands include Cerelac, Nestum, Nescafe, Maggie, Kitkat, Munch and Pure Life.

1.3 Company Mission:

At Nestle, we believe that research can help us to make better food, so that people live a better life. Good food is the primary source of good health, so we are trying to make good food. To provide fresh and pure products to the customers, we introduced (SHE) Safety, Health and environment policy to protect health of our employs and keep clean our surrounding environment

1.4 company vision:

Vision of Nestle Milkpak Company is to expand business according to the increasing demand of market. As per our company vision in 2020 production capacity of all plants working in Pakistan is being increased. So extension of Kabirwala Plant is the example of our company vision.

1.5 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

1.6 Business of the Nestle:

Nestle is the largest food company in the world. It is present in all five continents, has an annual turnover of 74.7 billion Swiss Frances. There are 509 factories are running in 83 countries, having 231,000 employees.

2. HISTORY OF NESTLE
Nestl was the result of a series of mergers of many small companies. In the mid1860s, Henri Nestle, merchant, chemist and innovator, experimented with various combinations of cows milk, wheat flour and sugar. The resulting product was meant to be a source of nutrition for infants, who could not be breast-fed by their mothers. In 1867, his formula saved the life of a prematurely born infant. Later that year, production of the formula, named Farine Lactee Nestl, began in Vevey and the Nestle Company was formed. Henri Nestle wanted to develop his own brands and decided to avoid the easier route of becoming a private label. Henri also wanted to make his company global. Within a few months of the launch, Henri began to sell his products in many European countries. In the companys initial years, Henri took various steps to facilitate research, improve product quality and develop new products. Meanwhile in 1866, two Americans, Charles and George Page had founded the Anglo-Swiss Condensed Milk Company. The company launched a milk based infant food, which competed with Nestls products. In 1875, Daniel Peter, a friend and neighbor of Henri developed milk chocolate. Peter became the worlds leading chocolate maker, and later merged his company with Nestl. The rivalry between Nestl and the Anglo-Swiss Condensed Milk Company intensified but ended in 1905, when the two companies merged under the Nestl banner. World War I created a new demand for dairy products. Nestle grew mainly by executing government contracts. The end of the war created a crisis for the company as people started using fresh milk again, instead of condensed and

powdered milk. In 1921, Nestl recorded its first loss, which was partly due to the worldwide postwar economic slowdown. Louis Dapples, a Swiss banking expert restructured the company, streamling its operations and reducing the debt burden. In 1930, the Brazilian Coffee Institute approached Dapples, seeking new products. After eight years of research Nestl developed a soluble powder that revolutionized coffee drinking around the world. The product was launched under the brand name Nescafe and became an instant success. The onset of World War II speeded up the introduction of Nescafe. The beverage also became a popular drink among American servicemen in Europe and Asia. The end of World War II triggered off a new phase of growth for Nestl. Many new products were added as the company grew through acquisitions. After 1974, Nestls financial position deteriorated. Oil prices rose and growth in industrialized nations slowed down. The Swiss franc appreciated and the price of coffee beans and cocoa shot up. This situation was partially offset by Nestls rapid growth in emerging markets. In 1981, Helmut Maucher took over as CEO. His policies had a significant impact on Nestls style of functioning. Maucher pursued a two-pronged strategy to improve the companys financial situation: First he embarked on internal restructuring and divestments; second he decided to continue with strategic acquisitions. Between 1980 and 1984, he divested a number of non-strategic or unprofitable businesses, amounting to nearly SFr8 bn. The divestments included certain food products that were not consistent with Nestls emphasis on high value added segments. To improve the companys financial situation, he embarked

on a cost-cutting exercise. While the employee strength was reduced significantly, the inventory and outstanding debt were brought down. In 1990, Nestl formed a joint venture with General Mills called Cereal Partners Worldwide to promote Nestl breakfast cereals. It covered 70 countries accounting for about 75 per cent of the breakfast cereal consumption outside the US and Canada. Nestl also formed a joint venture with Coca-Cola, called the Coca-Cola Nestl Refreshment Company, to market tea and coffee-based ready-to-drink beverages under the Nestea and Nescafe brands. In 1996, Nestl decided to end its 50-50 Clinic Nutrition joint venture with Baxter Healthcare and established Nestl Clinical Nutrition to provide orally consumed nutrition products to hospitals and nursing homes. Nestl opened the 20th century by merging with the Anglo-Swiss Condensed Milk Company to broaden its product range and widen its geographical scope. In the new millennium, Nestl is the undisputed leader in the food industry, with more than 470 factories around the world. Nestl launched a Group-wide initiative called GLOBE (Global Business Excellence), aimed at harmonizing and simplifying business process architecture; enabling Nestl to realize the advantages of a global leader while minimizing the drawbacks of size. The Companys strategy will continue to be guided by several fundamental principles. Nestls existing products will grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential will never be sacrificed for short-term performance. The Companys priority will be to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives.

3. BUSINESS PRINCIPLES

Since Henri Nestl developed the first milk food for infants in 1867, and saved the life of a neighbors child, the Nestl Company has aimed to build a business based on sound human values and principles.

While our Nestl 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 Nestl 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
Nestl 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 Nestl strives to maintain a satisfactory level of profits every year.

Decentralization
Switzerland is home to Nestl's Swiss subsidiary, its international headquarters and the registered office of Nestl's holding company, but Nestl does not regard its Swiss headquarters as the center of the universe. Decentralization is a basic principle of Nestl. 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 Nestl's executives and employees and a

greater sense of identification with Nestl's business. It is not Nestl's policy to generate most of its sales in Switzerland, supplemented by a few satellite subsidiaries abroad. Nestl strives to be an "insider" in every country in which it operates, not an "outsider."

Uniformity
A very important concern at Nestl has to do with uniformity: how consistent Nestl'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, Nestl 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
Nestl does not want to become either a conglomerate or a portfolio manager. Nestl wants to operate only those businesses about which it has some special knowledge and expertise. Nestl 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. Nestl is committed to the following Business Principles in all countries, taking into account local legislation, cultural and religious practices:

Nestl'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.

Nestl does not favour short-term profit at the expense of successful long-term business development.

Nestl 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.

Nestl 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.

Nestl 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.

Nestl continues to maintain its commitment to follow and respect all applicable local laws in each of its

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 Nestl, 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 Nestl has a natural advantage: Although it is a big company, it is spread out over many countries and each of Nestl's factories has its own management and responsibility. Handling of raw materials
The Nestl 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 Nestl 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.

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 Nestl. 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

Nestl'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 Nestl'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 Nestl 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.

4. NESTLE QUALITY POLICY