A study on consumer buying behaviour

towards nestle
Project Report Submitted
By
SHALINI.R
Reg. No: 311619631026
 SUMMER PROJECT

“CONSUMER BUYING BEHAVIOUR TOWARDS NESTLE PRODUCT’’

BY: SHALINI.R
II MBA

REG NO: 311679631026

INTRODUCTION:

Today consumer have become more conscious of their responsibilities and

are trying to garner as much as information as possible for decision making
regarding purchasing of goods and services.

Today’s market has been turned from the seller’s market to buyer’s market.
Success or failure of the modern business now depends on how effectively.
The marketers and advisor are able to attract the buyer. Marketing starts and
ends with the consumer.

The consumer is the engine of economics activity and his prerogatives are no
less than those of the monarch he is the fulcrum of the pivot upon which the
business moves.

The study of consumer behavior assumes that the consumers are actors in the
market place. The perspective of role theory assumes that the consumers play
various roles in the market places.
COMPANY PROFILE:

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 shown rapid progress and has increased its product
range to 80 products as of October 1997. Nestle india ltd. Now ranks 22nd
amongst india’s most valuable companies.

NESTLE MISSION:

“To be in every way the leading company in theindian food industry and a
good corporate citizen by providing our consumers with superior quality
products, our shareholders with rapid growth $ fair returns and our
employees with a challenging and satisfying work environment”

FACTORIES IN INDIA:

 Moga Punjab
 Choladi Tamil Nadu
 Nanjagud Karnataka
 Samalakha Haryana
 Ponda Goa
 Bicholim Goa

REVIEW OF LITERATURE:
KIRSHNAKUMARI Points out in her study “employed mothers spend
more on commercial body food which are, readily available and nutritious for
the cost they bear”.

DASS Say that” the improper timing, quality and quantity of weaning food
are the cause of a high rate of malnutrition in the society.

PHILIP KOTLER And KELVIN LANE KILLER –in the book of

“management “emphasized that customers are more educated and informed
than ever and they have the tool to verify companies ,clients and seek out
superior alternatives.

PONDA this Kit-Kat factory was set up 1993. Located 70km from delhi. It is
manufactures wearing cereals, culinary products, health beverages and milk
products. Recently the expansion of manufacturing capacity for milkmaid
deserts mixes was undertaken at this factory as this and unique product
category is viewed to have great potential in future.

CHOLADI The factory in choladi started production in [Link] has about,

the factory today has 81 employees and producers 1.5% of the total turnover
of Nestle India. It has 100% export oriented unit with processes freshly
packed tea leaves into soluble instant tea.

RESEARCH METHODOLOGY
SCOPE OF THE STUDY:

The scope of the study restricts itself to the analysis of consumer preference,
perception and consumption of chocolates. The study is limited to only nestle
products. The scope is also restricts itself to delhi region only.

THE TWO TYPES OF RESERCH:

 Exploratory Research
 Descriptive Research

RESEARCH DESIGN:

Descriptive research is the study designed to depict the participants in an

accurate way. More simply put, descriptive research is all about describing
people who take part in the study. There are three ways are searcher can go
about doing a descriptive research project, and they are:

 Observational, defined as a method of viewing and recording the

participants

 Case Study, defined as an in-depth study of an individual or group of

individuals

 Survey, defined as a brief interview or discussion with an individual about

a specific topic. Survey research is of ten used to access thoughts, opinion
sand feelings of target group.

SAMPLING:
Sampling is a process in which the fixed numbers of observations are taken
randomly formal arger population. Two advantages of sampling are that the
cost is lower and data collection is faster than measuring the entire
population.

SAMPLE SIZE:

The study is a cross sectional study because the data were collected at a
single point of time. For the purpose of present study a related sample of
population was selected on the basis of convience.

SAMPLING TECHNIQUES:

Simple random sampling has been used, we have taken 100 samples here.

SELECTION OF DATA COLLECTION METHOD:

Secondary data: Internet and other researches – books, journals, research

papers, articles.

PRIMARY CONSIDERATION:

Sample plan: Sample was collected using simple random sampling.

Sample size: 111.

PURPOSE OF THE STUDY:

The main purpose of this study was to gather the information about the

[i] Consumer satisfaction level associated with the product and the customer
preference level.
[ii] Factors affecting the consumption patterns.
[iii] How to increase customer satisfaction and recapture the market share by
fulfilling the customer needs.
OBJECTIVE OF THE STUDY:
Primary Objective:

This project is based on the comparative study consumer behavior towards

Nestle Products.

Secondary Objective:

1. To study the consumer behavior and their satisfaction towards

Nestle Products
2. To analyze the factors influencing the buyer decision of the
consumers.
3. To determine the level of effectiveness of the advertisements.

LIMITATIONS:

 Some of the people were not responsive.

 Possibility of error in data collection because many of the
respondents may have not given an answer to the
questionnaire.
 Sample size is less to represent the whole populations.
 The time period of research was short.
 Respondents behavior may be casual.
 Financial resources are not available.
 CHAPTER–4

DATA ANALYSIS AND INTERPRETATION

 DATA ANALYSIS AND INTERPRETATION:

4.1 DATAANALYSIS

TABLE4.1.1: Showing the gender (in years) group of the respondents

PARTICULARS RESPONDANCE PERCENTAGE

Male 42 38
Female 69 62
Others 0.00 0.00

INFERENCE:

It is observed that from the above table 42% of respondents are male and
69% of 62 respondents are female. It indicates that the majority of
respondents i.e.69% of respondents are female.
 TABLE4.1.2: Showing the education of the respondents

PARTICULARS RESPONDENTS PERCENTAGE

Under graduate 62 56
Postgraduate 49 44
Others 0.00 0

INFERENCE:

It is observed that from the above table 49% of respondents belong to Post
Graduation,28% of respondents are belong to Under Graduation 62% of
respondents i.e.49% of respondents belong to Post Graduation.
 TABLE4.1.3: Showing the salary of the respondents

PARTICULARS RESPONDANCE PERCENTAGE

One lakh 29 26
Below one lakh 43 39
Above one lakh 25 23
Others 14 12

INFERENCE:

It is observed that from the above table 29% of respondents belong to 100000
salary group, 43% of respondents are belong to below 100000 salary group,
25% of 22 respondents are belong to 100000 and above salary group and it is
followed by 14% of respondents are belong to others salary group. It
indicates that the majority of respondents i.e.43%of respondents belong to
below 100000 salary group.
 TABLE4.1.4: Showing the marital status of the respondents

PARTICULARS RESPONDANCE PERCENTAGE

Single 76 68
Married 33 30
Prefer to not say 2 2
Others 0 0

INFERENCE:

It is observed from the above table 68% of people was belongs to single, and
30% of people was belongs to married, Also 2% of people was belongs to
prefer not to say. i.e the majority 68% of people was belongs to single.
 TABLE4.1.5: Showing the occupation of the respondents

PARTICULARS RESPONDANCE PERCENTAGE

Government 9 8
Private 86 77
Others 16 15

INFERENCE:

It is observed from the above table 68% of people was belongs to single, and
30% of people was belongs to married, Also 2% of people was belongs to
prefer not to say. i.e the majority 68% of people was belongs to single.
 TABLE4.1.6: Showing the Awareness of the Nestle brand respondents

PARTICULARS RESPONDANCE PERCENTAGE

Yes 93 84
No 18 16
Others 0 0

INFERENCE:

It is observed from the above table 83.8% of people was know the brand, and
16% of people was don’t know the brand. i.e the majority 83.8% of people
was belongs to aware of the brand.
 TABLE4.1.7: Showing the Are you a regular customer to nestle product
respondents.

PARTICULARS RESPONDANCE PERCENTAGE

Yes 23 21
No 22 20
Sometimes 66 59
Never 0 0

INFERENCE:

It is observed from the above table 21% of people was using the brand, and
20% of people was not using the brand and 59% of people was sometimes
using the brand. i.e the majority 59% of people was sometimes using the.
 TABLE4.1.8: Showing the customer buying regularly the nestle product
respondents.

PARTICULARS RESPONDANCE PERCENTAGE

Chocolate 59 53
Maggie 32 29
Coffee 20 18
Others 0 0

INFERENCE:

It is observed from the above table 53% of people was using nestle chocolate,
and 29% of people was nestle Maggie and 18% of people was using the
brand nestle coffee. i.e the majority 53% of people was using nestle
chocolate.
 TABLE4.1.9: Showing the customer how often consuming nestle product
respondents.

PARTICULARS RESPONDANCE PERCENTAGE

Everyday 10 9
About once a week 49 44
Once a month 32 29
Less than once a month 18 20

INFERENCE:

It is observed from the above table 9% of people was using nestle products
every day, And 44% of people was using once a week and 29% of people was
using once a month, and 18% of people was using less than a month. i.e the
majority 44% of people was using once a week.
 TABLE4.1.10: Showing the how consumer rating the quality of nestle
product respondents.

PARTICULARS RESPONDANCE PERCENTAGE

Agree 64 57
Somewhat agree 43 39
Some what disagree 0 0
Disagree 4 4

INFERENCE:

It is observed from the above table 58% of people was agree the nestle
products quality, and 39% of people was somewhat agree and 3.6% of people
was disagree. i.e the majority 58% of people was agree the quality of the
brand.
 TABLE4.1.11: Showing the how consumer know about nestle product
respondents.

PARTICULARS RESPONDANCE PERCENTAGE

Friends 21 19
Family 8 7
Relatives 3 3
Advertisement 79 71

INFERENCE:

It is observed from the above table 71% of people was know the product
through advertisement, and 7% of people was through family and 3% of
people was through relatives, and 19% of people through friends. i.e the
majority 71% of people was know about the product through advertisement
of nestle brand.
 TABLE4.1.12: Showing the Comparison of Other brand to nestle brand

PARTICULARS RESPONDANCE PERCENTAGE

Agree 28 25
Somewhat agree 54 49
Somewhat disagree 13 12
Disagree 15 14
Others 1 1

INFERENCE:

It is observed from the above table 25% of people was agree the nestle
products good, and 49% of people was somewhat agree and 12% of people
was somewhat disagree and 14% of people was disagree. i.e the majority
49% of people was somewhat agree the nestle is good brand.
 TABLE4.1.13: Showing the customer given overall performance of nestle
brand.

PARTICULARS RESPONDANCE PERCENTAGE

Very satisfied 20 18
Satisfied 87 78
Not satisfied 4 4
Very dissatisfied 0 0
Others 0 0

INFERENCE:

It is observed from the above table 18% of people was very satisfied the
nestle products, and 78% of people satisfied and 4% of people was not
satisfied. i.e the majority 78% of people was satisfied with the nestle brand.
 TABLE4.1.14: Showing the customer spending how much cost for buying
nestle products.

PARTICULARS RESPONDANCE PERCENTAGE

100-500 81 73
Below 100 21 19
Above 100 8 7
Others 1 1

INFERENCE:

It is observed from the above table 73% of people was spending 100-500
rupees for buying nestle product, and 19% of people spending below 100
rupees and 7% of people was spending above 500 rupees. i.e the majority
73% of people was spending 100-500 rupees for buying the nestle brand.
 TABLE4.1.15: Showing the customer given overall taste of nestle products.

PARTICULARS RESPONDANCE PERCENTAGE

Very satisfied 23 21
Satisfied 86 77
Not satisfied 2 2
Very dissatisfied 0 0
Others 0 0

INFERENCE:

It is observed from the above table 21% of people was very satisfied the
nestle products, and 77% of people satisfied and 2% of people was not
satisfied. i.e the majority 77% of people was satisfied with the nestle
products.
TABLE4.1.16: Showing the Comparison to the other brands nestle was good.

PARTICULARS RESPONDANCE PERCENTAGE

Always 42 37
Most of the time 63 56
Never 8 7
Other 0 0

INFERENCE:

It is observed from the above table 37% of people was always think that
nestle was good products, and 56% of people was think most of the time and
7% of people was never think. i.e the majority 56% of people was most of the
time to think nestle was good products.
 TABLE4.1.17: Showing the customers idea to use continuously nestle
products.

PARTICULARS RESPONDANCE PERCENTAGE

Yes 50 44
No 16 14
Sometimes 46 40
Never 2 2

INFERENCE:

It is observed from the above table 44% of people was have an idea to use
continuously nestle products, And 14% of people was no idea and 40% of
people was have an idea to use sometimes, and 2% of people was never have
an idea. i.e the majority 44% of people was have an idea to use continuously
nestle products.
 TABLE4.1.18: Showing the customers will eat Kit-Kat.

PARTICULARS RESPONDANCE PERCENTAGE

Yes 96 86
No 3 3
Sometimes 10 9
Never 2 2

INFERENCE:

It is observed from the above table 86% of people was eat kit-Kat, and 2% of
people was no and 2% of people was never. i.e the majority 86% of people
was eat nestle Kit-Kat.
TABLE4.1.19: Showing the nestle product will give good quantity than other.

PARTICULARS RESPONDANCE PERCENTAGE

Strongly Agree 19 17
Agree 81 73
Disagree 9 8
Strongly Disagree 2 2
Others 0 0

INFERENCE:

It is observed from the above table 17% of people was strongly agree the
nestle products quantity is good, and 73% of people was agree and 8% of
people was disagree and 1% of people was strongly disagree. i.e the majority
73% of people was agree the nestle product quantity is good.
4.2 STATISTICALTOOLS TWO–WAY ANNOVA

The two-way ANNOVA compares the mean differences between groups that
have been split on two independent variable/factors. The interaction term
two-way ANNOVA informs whether the effect of one dependent variable is
the same for all values of other independent variable.

NULLHYPOTHESIS(H0):

There is no significant difference between age of the respondents and

satisfaction factors.

ALTERNATIVEHYPOTHESIS(H1):

There is a significant difference between age of the respondents and

satisfaction factors.

TABLE: showing the gender and the awareness of the advertisement.

Gender/Awareness Friends Family Advertisement Relatives Total

Male 42 8 79
Female 21 69 3
Total 42 111

NULLHYPOTHESIS(H0):
There is no significant difference between Gender and Achievement of the respondents.

ALTERNATIVEHYPOTHESIS(H1):
There is a significant difference in the Gender of the respondents.

DEGREE OF FREEDOM =(r-1) * (s-1) = (2-1) * (4-1) = 1*3=3.

 SUGGESTIONS

Promotional activities should be concentrated as awareness on nestle.

Modification in television advertisement has to be done make the

advertisement more effective.

Attractive offers along with the products can be increased in order to

overcome the competition in the consumer goods market.
 CONCLUSION

 The researcher after conducting a study on the consumer buying

behavior towards the products of nestle has come to the conclusion the
nestle has received a pivotal position in the market for their products.

 Quality is the main motivating factor for the consumers to buy the
products of nestle.

 Introduction of new products in the market, to satisfied all types of

consumers is also one of the important reasons for nestle to rank top in
the consumers market.

 It is clear from the study that to capture a major shares in the consumer
goods market the manufacturer has to provide quality goods at
reasonable price.
 BIBLIOGRAPHY

Blackwell, R., Miniard, p. and Engel. j, [2006] ‘consumer behavior’, mason:

Thompson Egan, j.[2007] ‘Marketing communication’, London: Cengage
learning Enis, B.M.[1974] ‘marketing principles’. The management process’’
Gobbott, M. and hogg, G. [1998]. ‘consumers and services’, Chichester. Jhon
Wiley $ sons Kotler, P. and Keller, K. [2011]
‘marketing management’ [14th edition], London person education.
 ANNEXURE

QUESTIONNARIES

1. Age Group

a) Under25
b) 25-40
c) 40-50
d) over 50

2. Gender

a) Male
b) Female

3. What is your qualification ?

a) 10th
b) 12th
c) UG
d) PG
e) Uneducated

4. What is your occupational status ?

a) House wife
b) Employed
c) Student
d) Others (Please specify) _____________
5. What is your annual income ?

a) 1LK
b) Less than 1LK
c) Above 1LK

6. Do you eat chocolates ?

a) Yes
 b) No

7. Marital status ?

a) Single
b) Married

8. Which product of nestle you prefer more ?

a) Milk Products
b) Chocolates
c) Maggie
d) Beverages
e) Others (Please specify) _____________

9. Are you loyal towards nestle products ?

a) Yes
b) No

10. How for you think flavor is important ?

a) Highly Satisfied
b) Satisfied
c) Neither Satisfied no dissatisfied
d) Highly dissatisfied

11. How for you think price is important ?

a) Highly Satisfied
b) Satisfied
c) Neither Satisfied no dissatisfied
d) Highly dissatisfied

12. How for you think quality is important ?

a) Highly Satisfied
b) Satisfied
c) Neither Satisfied no dissatisfied
d) Highly dissatisfied

13. How for you think package is important ?

a) Highly Satisfied
b) Satisfied
c) Neither Satisfied no dissatisfied
d) Highly dissatisfied

14. How for you think brand is important ?

 a) Highly Satisfied
b) Satisfied
c) Neither Satisfied no dissatisfied
d) Highly dissatisfied

15. Influencing factor's to purchase Nestle product ?

a) Advertising
b) Attractive Packing
c) Brand Name
d) Sales Offers
e) Others (Please specify) _____________

16. Mention your level of satisfaction towards Nestle products

a) Highly Satisfied
b) Satisfied
c) Neither Satisfied no dissatisfied
d) Highly dissatisfied

17. Your favorite product of nestle ?

a) Chocolates
b) Maggies
c) Dairy Products
d) Beverages
e) Others (Please specify) _____________

18. What pack size do you purchase ?

a) Small
b) Big
c) Family pack

19. Which promotional offers attracts you most ?

a) Free gift
b) Price discount
c) Others (Please specify) _____________

20. What are customer's preferences in buying nestle product ?

a) Taste
b) Sweetness
c) Price
d) Packaging
e) Others (Please specify) _____________
 21. Do you like nestle coffee ?

a) Yes
b) No

22. How often do you eat kitkat ?

a) Every day
b) 2-3 times a week
c) Once a week
d) Occasionally
e) Never

23. How much cost you can spend to buy nestle products ?

a) 100
b) Less than 100
c) More than 100

24. How frequently do you purchase nestle products ?

a) Daily
b) Weekly
c) Monthly
d) Quarterly

25. If any other brand of the same product appears in

the market, will you prefer to stop buying this brand
and buy the new brand ?

a) No, not at all

b) I may consider
c) Can't say

26. Do you eat chocolates ?

a) Yes
b) No

27. Factors considered in purchasing nestle products from organized sector ?

a) Better quality
b) Preferred taste
c) Easy availability
d) Influence of others

28. Factors considered in purchasing nestle products from un-organized sector ?

 a) Low prices
b) Regular supply
c) Local availability
d) Others (Please specify) _____________

29. Influencing factor's for buying other companies products ?

a) Quality
b) Low price
c) Advertisement
d) Brand image

30. If any suggestion to improve nestle products

please____________