A STUDY ON CUSTOMER SATISFACTION TOWARDS THE NESTLE PRODUCT KIT-KAT IN TRIHIRAPALLI TOWN A project report submitted in partial fulfillment

of the requirement of the skill-based elective course-VI for the award of the BACHELOR OF COMMERCE BY MISS.M. JANANI
Reg. No.: 08C2600 Roll. No.:19922

Under the Guidance of Ms. FRANCIS FELICIA, [Link], [Link], [Link].

HOLY CROSS COLLEGE (AUTONOMOUS) Nationally Re-accredited with A Grade by NAAC (Affiliated to Bharathidasan University) TIRUCHIRAPPALLI 620 002. APRIL 2011

Ms. FRANCIS FELICIA, [Link], [Link], [Link].

HOLY CROSS COLLEGE (AUTONOMOUS)

[Link]. DEPARTMENT OF COMMERCE

TIRUCHIRAPPALLI-620 002 Date: _______________

_____________________________________________________________________

CERTIFICATE
This is to certify that the project work done under my guidance and the project report entitled A Study on customer satisfaction towards the nestle product kit-Kat in tiruchirapalli town, submitted by [Link], in partial fulfillment of the requirements of the skill I- Based Elective Course VI for the award of the Degree of BACHELOR OF COMMERCE for the academic year 2008-2011 is the original work of the candidate with Register No. Miss. [Link], 08C2600.

[Link] BRIDGET, [Link], [Link], PGDCA

[Link] FELICIA, [Link], [Link], [Link].

EXTERNAL EXAMINER

CONTENTS

CHAPTERS 1 2 3 4 5 6
7

PARTICULARS

PAGE NO. 2 10 12 17 20 26 28

Introduction Review of literature Company profile SWOT analysis of the product Data analysis Findings, suggestions & conclusions. webliography

TABLE CONTENTS

Table no.
1 2 3 4 5

Content of the table

Page no
20 21 22 23 24

CHAPTER I

INTRODUCTION:

NESTLE company was started by Henry nestle. And he was the founder of the company.

I Nestle India is a multinational company with its worldwide operations in over 84 countries. It is the worlds largest food company with its international head quarters at VEVEY, SWITZERLAND. Nestle has almost 500 facts world wide out of which 220 are located in Europe,150 in America, 130 in Africa, Asia and Oceania. It employs almost 230000 people in India.

Founders of nestle was German born HENRY NESTLE who was living in a small town of Switzerland named VEVEY from a modest beginning he founded the company in 1866 at Switzerland manufacturing milk powder for babies. Product FARINE LACTEE made from cereals and milk to save the lives of many infant because, at the time Switzerland faced one of the highest infant mortality rate and the milk formula act as nectar that saved the lives of many infant, whose mothers were unable to breast feed successfully.

At present Nestle is the worlds largest food company, with its international head quarters at Vevey in Switzerland. Nestle is often quoted by most as Multinational of multinationals there is a good reason, as less than 2% of the turnover comes from domestic market in Switzerland. Today its product brand name is NESTLE is associated with quality products in worldwide consumer markets.

NESTLE IN INDIA:

Nestle set up its operations in India, as a trading company -[Link] began trading as nestle Anglo- Swiss condensed milk company (export) ltd. for importing & selling products in the Indian market.

After independence 1947, the economic policies of the Indian government emphasized the need for local production. Nestle responded to Indias aspirations by forming a company in India & its set up its first factory in 15th of November 1961 at Moga (Punjab) to develop Moga as milk economy. The production started with the manufacture of milkmaid at Moga factory in 1962 and other products were gradually brought into the fold. PLANT LOCATIONS: Moga (Punjab) Choladi (Tamil nadu) Samalkha (Haryana) Ponda (Goa) Bicholim (Goa) : milkmaid, culinary, cereal, 1962. : Instant tea export, 1969. : cereals, milkmaid, 1992. : chocolates & confectionaries, 1995. : noodles and cold sauces, 1997.

Nanjangud (Karnataka) : coffee & milo, 1989.

Pant nagar (uttaranchal) : noodles & coffee, 2006.

Among them Moga factory is the largest and the oldest producing the widest range of food products. The corporate office is located at Gurgaon & the registered office at M-5A, Cannaught circle, New Delhi.

Nestle has been a partner in Indias growth for over nine decades and has built a very special relationship of trust and commitment with the people of India. The companys activities provide direct & indirect employment and livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods.

PRODUCT DEVELOPMENT OF NESTLE: o o o o Product formulation Quality & safety Processing packaging

OBJECTIVES: Nowadays chocolate is not only a kids product, but it is a substitute for sweets. In todays market chocolate has a very good demand. There are many reasons for this drastic change; they are change in consumers taste, preference, etc. If a new product like chocolates is introduced, kids naturally prefer to buy that chocolate. Nowadays even adults prefer to eat more chocolate. This made me to analyses more about chocolates. Here in this project, I took a particular product of NESTLE COMPANY which is very popularly known as KIT-KAT.

SPECIFIC OBJECTIVES:

Specific objective of this project is to analyze the customer satisfaction towards the nestle product KIT-KAT.

NEED FOR THE STUDY: In olden days, only children prefer to eat chocolates but now even adults prefers more to eat chocolates. This made to analyze more about the chocolates. This study was conducted taking 80 responses as a sample size. From this analyzes it was very clear that most of the people were aware of all type of products produced by Nestle and they also very eager to buy their companys product more. I hope this project would provide better guidelines even for the company.

SCOPE OF THE STUDY: NESTLE company has many products, among those products I wished to take well known popular product called kitKat. This study may be helpful for the company to analyze more about different types of customers and their views regarding the particular product kit-Kat. This project helps the company to make changes in the product revolution according to customer preferences in future.

RESEARCH DESIGN: The objective of the study has been achieved by both primary and secondary datas. The datas obtained for the study was primarily from field investigation carried out among the consumers of NESTLES product KIT- KAT.

AREA OF STUDY: The study is conducted only in the place TRICHY. It is also called as the temple city of India.

SAMPLING: Sample design is a definite plan for obtaining a sum from a given population. It refers to the technique or the procedure. The researcher would adopt in selecting item for our sample. Samples are studied for the population who are the consumers of kit-Kat. Research design is needed because it facilitates the smooth railing of all research operations thereby making research as effective as possible yielding maximum information with the minimum expenditure of effort, time, & money.

SAMPLE SIZE: The consumers of Nestls product kit-Kat are taken into consideration. The sample size is 80 (including kids and adults).

LIMITATION OF THE STUDY:

1. The project is subject to personal bias of the employees only samples of 80 respondents were interviewed and they are only partial. 2. It is subjected to sampling error. 3. Due to lack of available time sufficient discussion was not possible. 4. It is difficult for the researcher to convince the respondents to disclose the factual data about the study.
5. The researcher may sometimes be provided with distorted information

CHAPTER SCHEME: CHAPTER-I : introduction CHAPTER-II : review of literature CHAPTER-III : company profile CHAPTER-IV : swot analysis of the product CHAPTER-V : data analysis CHAPTER-VI : finding, suggestions & conclusions.

CHAPTER II

REVIEW OF LITERATURE:
Kit-Kat bites won JUNKYARD DOG trophy for packaging. To

promote best use of company equipment HERSHEY food annually recognizes the team that saves the most money. And in the year 2000 it was given to kit-Kat bites which were most demanded product of that year. Which was published in the magazine called PACKAGING WORLD published on April 2001.

According to BBC news, it was declared that KIT-KAT is a best selling sweet around the world.

According to JANE BYNE, in his article has written that kit-Kat is the

biggest selling chocolate bar in UK and its sales has been increased up to 8.6% due to heavy demand.

Kit-Kat has celebrated its 75th birthday on October 26, 2010. This news

was published in a magazine called food and drink business in Europe.

POP CHOC sharing bag on Feb, 2011. It contains bite size pieces of kit-Kat wafer coated in milk chocolate and contains no artificial color, flavor or preservatives.

CHAPTER III

COMPANY PROFILE:

Kit-Kat is a product of a worldwide popular company called kit-Kat. Origins of The kit-Kat brand stem back to 1911, whenRowntree a confectionery company based in York in the United Kingdom, trademark the terms KIT-CAT and KIT-KAT. Although the terms were not immediately utilized the first conception of the kit-Kat appeared in the 1920s where Rowntree launched a brand of boxed chocolates entitled kit-cat.

The products official title of Rowntrees chocolate crisp was renamed to KIT-KAT chocolate crisp in 1937, the same year that KIT-KAT began to incorporate Break into their recognizable advertising strategy. The color scheme and first flavor variation to the brand came in 1942, owing to second world war, when Food shortages prompted an alteration in the recipe. The flavor of KITKAT was changed to dark, and the packaging abandoned its chocolate crisp title, and was adorned in blue. After the war, The title was altered to KIT-KAT and resumed its original milk recipe and original red packaging. Due to a widespread success in the UK, KIT-KAT picked up global supplying and recognition in the 1950s when the brand was shipped to Australia, New Zealand , South Africa and Canada. During the same decade, Donald Gilles, the executive at JWT London, created the iconic advertising line Have a break, have a kit-Kat this was still a famous slogan for KIT-KAT.

HISTORY OF KIT-KAT: 1911: Rowntree, a major confectionery business based in York in the UK register the names Kit Cat and Kit Kat. 1920s: Rowntree launched a brand of boxed chocolates named Kit Cat. 1930s: Rowntree concentrated on strong assortment brands, Black Magic and Dairy Box. Kit Cat was eventually phased out. August 29th 1935: First manufacture of the four-finger wafer in York. This is then sold in London and the South East of England as Rowntrees Chocolate Crisp. 1937: George Harris, Marketing Director for Rowntree, re-branded the product as Kit Kat Chocolate Crisp. This year also heralds the first use of the word Break in Kit Kat advertising. 1942: During the Second World War due to a shortage of ingredients including milk, Rowntree altered the recipe of Kit Kat Chocolate Crisp. The wrapper was changed to blue and the oval logo was removed along with the Chocolate Crisp. Kit Kat was written in bold. 1949: Kit Kat returned to its original milk recipe and the glory of its red wrapper. 1950s: International expansion in Australia, New Zealand, South Africa and Canada 1958: Donald Gilles, executive at advertising agency JWT London, creates the classic advertising line: Have a Break, Have a Kit Kat 1960s: Two-finger multi-pack was born. This new packaging format drives sales in the new supermarkets with increased home stocking by consumers. 1970s: Expansion of Kit Kat in Europe with manufacturing commencing in Hamburg, Germany Kit Kat brand was boosted by an agreement with Hershey Corp. to sell the brand under license in the USA. An agreement is struck to sell Kit Kat in Japan with confectionery company Fujiya

1988: Nestl acquires Rowntree 1989: Kit Kat production begins in a new Nestl facility in Kasumigaura, Japan 1990s: Manufacturing operations set up in Malaysia, India, China. 1996: Kit Kat Orange, the first flavors variant, is launched in the UK 1999: Kit Kat Chunky launched in the UK, is an instant hit and quickly rolled into other developed markets. 2000: Nestl buys Fujiyas share in Japan 2000s: Manufacturing operations set up in Bulgaria, Russia, Turkey and Venezuela. 2002: Kit Kat Chunky expanded to Central and Eastern Europe 2005: Kit Kat Pop Choc launched 2007: Kit Kat Singles launched in Canada (later rolled into Malaysia and Western Europe) 2008: Kit Kat Senses launched in Europe and Canada 2010: 75 years of Kit Kat

In 2010 a new GBP 5million manufacturing line was opened by Nestle in YORK UK. This will produce more than a billion Kit Kat bars each year.

PRODUCING COUNTRIES: Kit-Kat bars are produced in 20 countries by Nestle: UK India Egypt Canada Australia New Zealand

Algeria South Africa Germany Russia Japan China Indonesia Malaysia Turkey Venezuela Spain United Arab Emirates Mexico Bulgaria.

PRICE STRUCTURE OF KIT-KAT: Net weight 16.5g price 7 rupees. Net weight 34g price 14 rupees. Net weight 99g price 42 rupees. In a packed there are 6 fingers & each finger weight is 16.5gms. Net weight 96g price 40 rupees. In a packed there are 8 fingers & each finger weight is 12gms. Kit-Kat lite is 5 only.

CHAPTER IV

SWOT ANALYSIS OF THE PRODUCT: It is very useful technique for identifying strength, weakness, opportunity and the threat.

STRENGTH:

People believe that NESTLE company produces only healthy products. Most of them consume everyday. Kit-Kat is not only a chocolate but also a wafer, so we can Have a break, have a kit-Kat, at any time.

Kit-Kat has good promotion support. It has a catchy slogan HAVE A BREAK, HAVE A KITKAT, which promotes the sale of the product. Research & development department of nestle produces KitKat according to the taste and preferences of the consumers. Comparing to other chocolates price is not very high. The glucose content in kit-Kat makes the consumers to regain their strength after consuming.

WEAKNESS: The product requires a good brand ambassador.

 People are health conscious and they wont consume chocolates everyday. 80% of consumers feel that price is very high. More flavors must be introduced. Only chocolate flavor is introduced in India. In rural areas, demand is very low and so the sales are also very low in those areas.

OPPURTUNITY:

High demand for a product.

People trust in Nestle brand. Change in consumer behavior. Now people think that chocolate is not only a kids product.

THREAT: Rising price of raw materials. High competitive markets.

In this project, I have analyzed about the customers taste and preferences, their views regarding the product, how often they used to buy the product, etc.

CHAPTER V

DATA ANALYSIS: Table showing how often a customer buys Kit-Kat in a week OPTIONS 1-2 times a week 3-5 times a week More than 5 times a week RESPONDENTS 38 18 24 PERCENTAGE 53.33% 20% 26.66%

26.66%

24

18
38 0 20 40 60 80 3-5 times a week

20%

53.33%

1-2 times a week more than 5 times a week

Table showing the satisfaction of consumers towards Kit-Kat

OPTIONS RESPONDANTS PERCENTAGE satisfied unsatisfied 71 9 91% 9%

91%

91

9%

9 0 20 40 60 80 100 UNSATISFIED SATISFIED

Table showing more preferable nestle product of consumers

OPTIONS KIT-KAT MUNCH BAR-ONE

RESPONDANTS PERCENTAGE 48 20 12 60% 25% 15%

Bar-one

Munch

Kit-kat 0% 20% 40% 60% 80%

Table showing the change consumers need in kit-Kat

OPTIONS PACKAGING PRICE TASTE

REPONDENTS PERCENTAGE 80 80 80 9% 78.88% 11.11%

11.11%

78.88%

9%

20

40 Packaging

60 Price

80 Taste

100

Table showing the consumer satisfaction toward brand ambassador

OPTIONS RANI BIG-B SHARUK SOURAV OTHERS

RESPONDANTS PERCENTAGE 24 7 15 6 28 31 8.88 20 7.77 32.35

Other 32.35% 32%

Rani 31% 31%

Big-B Soura v 8.88% 7.77% Sharuk 9% 8% 20% 20%

FINDINGS: From the above analysis it is clear that people prefers kit- Kat chocolates the most. Nearly 80% of customers want a change in prices. Because they feels that price was quite high. Nearly 53.33% of customers are buying kit-Kat for 1-2 times a week. Not only kids even adults prefer to Consume more chocolates. People feel that new brand ambassador must be introduced. People believes that nestle is a healthy product and so they consume the product often.

SUGGESTIONS:
Kit-Kat needs a proper customers preferable brand ambassador

If the price of the chocolate is reduced nearly 80% of people buys kitKat often. If price is reduced, naturally the demand for the product increases which results in increase in sales and profit. The company can introduce new bar with low cost. For example, it can introduce one bar Chocolate for 2 rupees. New flavors can be introduced.

CONCLUSION:

Consumers are the king of the market. So unless customers get satisfied with the product, the company cannot perform the functions productively. Customers are very important to the companies. And they must produce products according to the taste and preferences of the consumers. If they produce according to the consumers wish, then the consumers will automatically get satisfied with the product.

I conducted this study for the purpose of studying the consumers awareness and satisfaction level towards the product. The study reveals that consumers are highly satisfied with the products taste, package except the price. I have included some suggestions to the company regarding the reduction of price and the ways to satisfy the customer needs.

WEBLIOGRAPHY:

[Link] [Link] [Link] [Link] [Link]