Consumer Satisfaction Study: Nestle Raipur
Consumer Satisfaction Study: Nestle Raipur
Report On
“STUDY ON CONSUMER SATISFACTION TOWARDS
NESTLE” SPECIAL REFERENCE TO RAIPUR CITY"
SUBMITTED TO
Of
2024-2025
1
DECLARATION
I Anshika Singh hereby declare that the project report entitled “STUDY ON
CONSUMER SATISFACTION TOWARDS NESTLE” SPECIAL REFERENCE TO
RAIPUR CITY" done under the guidance of MS. PRACHI CHOUBEY at KD RUNGTA
COLLEGE OF SCIENCE AND TECHNOLOGY is submitted in partial fullfilment of the
requirement for the award of Bachelor's of Business Administration degree.
DATE: SIGNATURE
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K.D. RUNGTA COLLEGE OF SCIENCE & TECHNOLOGYAffiliated
to Pt. Ravishankar Shukla
University Raipur (C.G.)INDIARUNGTA EDUCATION CAMPUS, NEAR
NANDANVAN, VEER SAWARKAR NAGAR, RAIPUR (C.G.) Pin Code
492099 INDIA Phone: 0771-6666666, website: [Link]
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ACKNOWLEDGMENTS
A truly independence project is a contradiction in terms. Every project involves contribution of many
people. This project also ears the imprints of many people and it is a pleasure to acknowledge all of
them. My sincere thanks to "Mr. Apurv Jadeja" HOD of the department of management and
commerce, KDRCST, for giving me the opportunity to this project. I would
like to put on record my deep sense of gratitude towards her as she has been my supervisor for this
project and I am also thankful to Ms. Prachi Choubey for being my guide and helping me out in the
completing of this project report.
Praise of one does not mean neglect for other, so I thank all the staff members of the organisation who
has given me cooperation and guidance in completing of my project.
Anshika Singh
INDEX
Annexures:
Questionnaire 74-76
Bibliography 77
CHAPTER 1
INTRODUCTION
CUSTOMER SATISFACTION
Customer satisfaction measures how well a company's products or services meet or exceed
customer expectations. These expectations often reflect many aspects of the company's
business activities including the actual product, service, company, and how the company
operates in the global environment. Customer satisfaction measures are an overall
psychological evaluation that is based on the customer's lifetime of product and service
experience.
Customer Loyalty
"It takes a lot less money to increase your retention of current customers than to find new
ones-but I know I don't give it as much effort as I should because it does take a lot of energy
and effort!"
These four factors will greatly affect your ability to build a loyal customer base:
1. Products that are highly differentiated from those of the competition.
2. Higher-end products where price is not the primary buying factor.
3. Products with a high service component.
4. Multiple products for the same customer.
COMPANY PROFILE
ABOUT NESTLE
Our Purpose
Unlocking the power of food to enhance quality of life for everyone, today and for
generations to come. That is our purpose.
We are the Good food, Good life company. We believe in the power of food to enhance lives.
Good food nourishes and delights the senses. It helps children grow healthy, pets thrive,
parents age gracefully and everyone live life to the fullest. Good food brings us together.
Good food also respects our planet and protects resources for future generations. At Nestlé,
we constantly explore and push the boundaries of what is possible with foods, beverages, and
nutritional health solutions to enhance quality of life and contribute to a healthier future.
Our Values
Guided by our values rooted in respect, we want to shape a better and healthier world. We're
continuing the legacy of our founder Henri Nestlé who created a life-saving infant cereal
more than 150 years ago.
History
1866
US brothers Charles and George Page help establish Anglo-Swiss Condensed Milk Company.
Using abundant supplies of fresh milk in Switzerland, they apply knowledge gained in their
homeland to establish Europe‘s first production facility for condensed milk in Cham. They
start supplying Europe‘s industrial towns with the product under the Milkmaid brand,
marketing it as a safe, long-life alternative to fresh milk.
1867
Nestlé‘s founder, German-born pharmacist Henri Nestlé, launches his ‗farine lactée‘ (‗flour
with milk‘) in Vevey, Switzerland. It combines cow‘s milk, wheat flour and sugar, and Nestlé
develops it for consumption by infants who cannot be breastfed, to tackle high mortality
rates. Around this time, he starts using the now iconic ‗Nest‘ logo.
1875
Henri Nestlé sells his company and factory in Vevey to three local businessmen. They
employ chemists and skilled workers to help expand production and sales.
1878
Fierce competition develops between Nestlé and Anglo-Swiss, when both companies start
sell ing rival ve rsions of the other‘s ori ginal produ cts: condensed mi lk and i nfant ce
real. Both
firms expand sales and production abroad.
1882-1902
In 1882 Anglo-Swiss expands into the US, but the death of George Page frustrates its plans.
In 1902 it sells its US-based operations, which paves the way for an eventual merger with
Nestlé.
1904
Nestlé begins selling chocolate for the first time when it takes over export sales for Peter &
Kohler. The Nestlé company also plays a role in the development of milk chocolate from
1875, when it supplies his Vevey neighbor Daniel Peter with condensed milk, which Peter
uses to develop the first such commercial product in the 1880s.
1905
Anglo-Swiss and Nestlé merge to form the Nestlé & Anglo-Swiss Milk Company. The
company has two head offices, in Vevey and Cham, and opens a third office in London to
drive dairy export sales. Over several years the company expands its range to include
unsweetened condensed milk and sterilized milk.
1914
War breaks out across Europe and disrupts production for the company, but hostilities also
drive demand for Nestlé dairy products, in the form of large government contracts.
1915
Condensed milk is long-lasting and easy to transport, which makes it popular with armed
forces. For example, in 1915 the British Army starts issuing Nestlé canned milk to soldiers in
their emergency rations. Strong demand for the product means that the company‘s milk
refineries are working flat out.
1916
Nestlé & Anglo-Swiss acquires Norwegian dairy company Egron, which has patented a
spray-drying process for producing milk powder – a product its new owner starts selling.
1917-1918
Milk shortages in Switzerland mean that Nestlé & Anglo-Swiss has to surrender fresh milk
supplies to help people in towns and cities. To meet demand for condensed milk from the
warring nations, the company buys US refineries and signs supply agreements with
Australian companies, which it later acquires.
1921-1922
Falling prices and high stock levels lead to the first, and only ever, financial loss for Nestlé &
Anglo-Swiss in 1921. Banker Louis Dapples joins as Crisis Manager, and encourages the
company to appoint professional managers for the first time. Administration is centralized,
and research is consolidated at one laboratory in Vevey, Switzerland.
1929
The company buys Switzerland‘s largest chocolate company Peter-Cailler-Kohler, the origins
of which date back to 1819 when François Louis Cailler creates one of the country‘s first
chocolate brands Cailler. Chocolate now becomes an integral part of the Nestlé & Anglo-
Swiss business.
1934
Melted chocolate drink Milo is launched in Australia, and its success means it is later
exported for sale in other markets. The company continues to develop baby and infant foods
in this inter-war period, and launches Pelargon in 1934, a full-milk powder for babies
enriched with lactic acid bacteria, to improve its digestibility. Read more: Meet the Milo
supermen who inspired our super brand
1936
1938
1939
Fearing that the Axis powers could occupy Switzerland, Nestlé & Anglo-Swiss relocates
some managers to a new office in Stamford in the US, which operates as the company‘s
second headquarters during the war. The fighting in Europe makes it impossible for Nestlé to
export milk from there, so the company supplies Africa and Asia from the US and Australia,
and expands production in Latin America. Read more: What did we do when the bank called?
Invented Nescafé
1942-1945
World War Two initially slows sales of Nescafé, but they pick up as hostilities continue.
After the US enters the war, Nestlé brands rapidly gain popularity among American service
personnel. At the end of the war, Nescafé is also included in CARE aid supplies in Japan and
Europe. Nestea is launched in the late 1940s.
1947
Nestlé & Anglo Swiss merges with Swiss company Alimentana, which produces Maggi
soups, bouillons and seasonings, and is renamed Nestlé Alimentana. Alimentana‘s history
dates back to 1884, when Julius Maggi developed a protein-rich dried soup to tackle
malnutrition. Read more: Juliu1948Nestea poster
In the US Nestlé Alimentana launches a soluble tea, Nestea, which is manufactured using the
same method as Nescafé, and can be served both hot or cold. Nesquik, which dissolves easily
in cold milk, is also launched in the US and becomes a top seller. Read more: "Fancy a
steaming hot cup of ...Nestea?"
1954
Nestlé infant cereal has been available since 1948 as a powdered product, but it is now
rebranded as Cerelac. Originally only sold as a bouillon cube, Maggi seasoning brand Fondor
is launched as a powder. Packaged in a convenient shaker, it can now be used as a condiment
in the dining room, as well as in the kitchen.
1957
Canned ravioli is launched under the Maggi brand. Its huge success prompts Nestlé to launch
more canned, prepared foods, which become a new growth segment. Read more: Julius
Maggi had his finger on the pulses Maggi had his finger on the pulse
1960
With increasing numbers of households buying freezers, demand for ice cream is rising.
Nestlé buys German producer Jopa and French manufacture Heudebert-Gervais to capitalise
on this growth, and adds Swiss brand Frisco in 1962. The company also buys UK canned
foods company Crosse & Blackwell.
1962
Nestlé buys the Findus frozen food brand from Swedish Manufacturer Marabou, and extends
the brand to international markets. Findus is one of the first companies to sell frozen foods in
Europe, from 1945.
1968
Chilled dairy products are increasingly popular, Nestlé buys French yogurt producer
Chambourcy. In the early 1970s the latter launches the Sveltesse range of yoghurts, aimed at
health- and weight-conscious consumers.
1969
Nestlé enters mineral waters by buying a stake in French waters brand Vittel.
1973
Keen to bolster its canned foods and frozen portfolio in Anglo-Saxon markets, Nestlé takes
over the US frozen foods company Stouffer Corporation, and buys canned foods producer
Libby, McNeill & Libby in 1976.
1974
For the first time, Nestlé diversifies beyond food and drink, becoming a minority shareholder
in global cosmeti cs comp an y L‘ Or éal.
1977
Renamed Nestlé S.A, the company continues its diversification strategy, buying US
pharmaceutical and ophthalmic products manufacturer Alcon Laboratories. Declining breast-
feeding rates lead some activists to question the baby food marketing strategies of companies
including Nestlé. In 1977 they call on people to boycott Nestlé products.
1981
Stouffer‘s Lean Cuisine frozen meals are launched on a low-fat, low-calorie platform, and the
brand posts impressive sales. Nestl é and L‘ Or eal establi sh Galderma as a j oint
venture acti ve in dermatology. The World Health Assembly adopts the WHO code on
breast-milk substitutes, and Nestlé is one of the first companies to develop policies based on
it and apply them across its business.
1985
By acquiring US-based Carnation Company for USD 3 billion, Nestlé adds brands such as
Carnation and Coffee-Mate to its portfolio. It also enters the pet food business when it buys
the Friskies brand. Read more: How did Carnation flower as a brand?
1986
The Nespresso story begins with a simple idea: enable anyone to create a perfect cup of
coffee, just like a skilled barista. Read more: Calling coffee pilgrims everywhere! Nespresso
1988
1991
Nestlé establishes a joint venture with General Mills, Cereal Partners Worldwide, to produce
and market breakfast cereals globally. The company also creates a joint venture with The
Coca-Cola Company to form Beverage Partners Worldwide, to manufacture and market
brands including Nestea.
1992
1998
Nestlé buys Italian mineral waters business Sanpellegrino Group. Nestlé Pure Life is
launched in developing countries, to guarantee clean and healthy drinking water, and Aquarel
is launched in Europe two years later.
2000
2001
Nestlé buys US pet food business Ralston Purina, and merges it with Nestlé Friskies Petcare
to establish the new market leader in pet care, Nestlé Purina Petcare.
2002
After expanding its ice-cream business in the 1990s, Nestlé acquires the licensing rights to
premium producer Häagen-Dazs in the US and Canada, and buys Mövenpick and Dreyer‘s
Grand Ice Cream in 2003. It also acquires frozen foods business Chef America for USD 2.6
billion.
2006
Nestlé articulates its Creating Shared Value approach to doing business, whereby any action
for shareholders must also create value for the communities where it operates and wider
society. Nestlé acquires weight management business Jenny Craig and Australian breakfast
cereals company Uncle Toby‘s.
2007
A growing focus on medical nutrition leads Nestlé to the acquire Novartis Medical Nutrition.
It also buys baby food company Gerber and Swiss mineral waters concern Sources Minérales
Henniez. Read more: The Gerbers can‘t get out of the house!
2009
The first Creating Shared Value Forum in New York brings together experts to discuss global
challenges in the areas of nutrition, water and rural development, and the role of business in
helping to solve them. The Forum becomes an annual event. Nestlé creates a foodservice
business division, named Nestlé Professional from 2009.
2010
Nestl é acquir es Kr aft Fo ods‘ froz en piz z a busi ness. The Nestl é C ocoa P lan
and Nesc afé P lan are both launched to develop the company‘s susta inable suppl y ch
ains i n c ocoa and coff ee, improve social conditions in farming communities, and
ensure their profitability.
2011
Nestlé Health Science and the Nestlé Institute of Health Sciences are established, to research
science-based nutritional products aimed at preventing and treating chronic medical
conditions. Nestlé becomes the first food company to work with the Fair Labor Association
(FLA), to help tackle child labour in the cocoa supply chain.
2012
Nestlé acquires Wyeth Nutrition, formerly Pfizer Nutrition, for USD 11.9 billion, to
strengthen its position in infant nutrition.
2013
Nestlé Health Science buys US-based medical foods company Pamlab, which specializes in
medical nutrition for patients with conditions including mild cognitive impairment and
depression. Weight management business Jenny Craig is sold in America and Oceania.
2014
With the creation of Nestlé Skin Health, Nestlé takes full control of the Galderma
dermatology joint venture which it created with L‘Oréal in 1981. The companies also end
their joint venture Innéov, a cosmetic nutritional supplements business launched in 2002.
Galderma subsequently acquires some of its assets.
2015
Nestlé launches Cailler, the oldest surviving Swiss chocolate brand, as its first super-premium
global chocolate. French frozen foods business Davigel is sold.
2016
Nestlé celebrates its 150 year as a company. A portion of the ice cream, frozen food and
chilled dairy business is incorporated into a joint venture – Froneri – with UK ice
cream
manufacturer R+R.
2017
Nestlé announces that it will explore strategic options for its US confectionery business and
extends its consumer healthcare portfolio with the acquisition of Atrium Innovations. The
move supports Nestl é‘s p ursuit of gro wth opportu nit ies in consum er healt h care,
compl ements
the compan y‘s fo cus on high -growth food and beverage categories such as coffee,
petcare, infant nutrition and bottled water. US investments are also made in Chameleon
Cold–Brew
coffee, Blue Bottle Coffee, Sweet Earth and Freshly.
2018
Nestlé and The Coca-Cola Company end their Beverage Partners Worldwide joint venture.
2019
Nestlé inaugurates the Nestlé Institute of Packaging Sciences. The company closes the sale of
Nestlé Skin Health. Nestlé sells its U.S. ice cream business to Froneri in a strategic move to
create global leader in ice cream. The company sells 60% of its stake of Herta and creates a
joint venture with Casa Tarradellas.
2020
Nestlé Health Science expands its portfolio through the acquisition of Zenpep, Vital Proteins
and Aimmune. Yinlu peanut milk and canned rice porridge businesses are sold. The company
launches its Net Zero Roadmap.
2021
The business sells Nestlé Waters North America brands and acquires functional hydration
brands Essentia and Nuun. In the same year, Nestlé reduces its stake in L'Oréal, while Nestlé
Health Science boosts its portfolio through the part acquisition of The Bountiful Company.
'Generation Regeneration is launched and Nestlé publishes its climate roadmap.
2022
Nestlé kicks off the year by announcing further plans to tackle child labor risk. Shortly
followed by the creation of the Nestlé Institute of Agricultural Sciences, which aims to
strengthen the business's agricultural science expertise. The company also achieves its carbon
peak. Meanwhile, Nestlé Health Science acquires a majority stake in Orgain, a leader in
plant-based nutrition.
NESTLE INDIA
NESTLÉ's relationship with India dates back to 1912, when it began trading as The NESTLÉ
Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished
products in the Indian market.
After India's independence in 1947, the economic policies of the Indian Government
emphasized the need for local production. NESTLÉ responded to India's aspirations by
forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the
Government wanted NESTLÉ to develop the milk economy. Progress in Moga required the
introduction of NESTLÉ's Agricultural Services to educate, advise and help the farmer in a
variety of aspects. From increasing the milk yield of their cows through improved dairy
farming methods, to irrigation, scientific crop management practices and helping with the
procurement of bank loans.
NESTLÉ set up milk collection centers that would not only ensure prompt collection and pay
fair prices, but also instill amongst the community, a confidence in the dairy business.
Progress involved the creation of prosperity on an on-going and sustainable basis that has
resulted in not just the transformation of Moga into a prosperous and vibrant milk district
today, but a thriving hub of industrial activity, as well.
NESTLÉ has been a partner in India's growth for over a century now and has built a very
special relationship of trust and commitment with the people of India. The Company's
activities in India have facilitated direct and indirect employment and provides livelihood to
about one million people including farmers, suppliers of packaging materials, services and
other goods.
The Company continuously focuses its efforts to better understand the changing lifestyles of
India and anticipate consumer needs in order to provide Taste, Nutrition, Health and
Wellness through its product offerings. The culture of innovation and renovation within the
Company and access to the NESTLÉ Group's proprietary technology/Brands expertise and
the extensive centralized Research and Development facilities gives it a distinct advantage in
these efforts. It helps the Company to create value that can be sustained over the long term by
offering consumers a wide variety of high quality, safe food products at affordable prices.
NESTLÉ India is a responsible organization and facilitates initiatives that help to improve the
quality of life in the communities where it operates.
SWOT ANALYSIS
Nestlé's Strengths
Strengths describe what a company specializes in and what distinguishes itself apart from
competitors, such as a great reputation, a loyal customer population, a solid financial
position, or unique technology.
Nestlé's unmatched success, per Harvard University, is due to its multi-cultural mentality.
This multi-cultural mindset contributes to the product's and value chain's added value.
This organization, which has been around for over 160 years, offers a wide variety of food
and beverage alternatives to its clients. Nestlé is a multinational corporation with operations
in 190 nations, 500 facilities, and 400,000 employees.
Nestlé invests 1.6 billion dollars in research and development each year and boasts the food
industry's most comprehensive scientific and innovation network. Nestlé has a staff of 4000
scientists and professionals guiding them via scientific research to achievement.
Nestlé boasts the world's greatest assortment of food and beverage goods. Nestlé goods are
consumed by people of all ages, from infants to the elderly. Nestlé goods have a strong track
record of generating high levels of consumer loyalty.
5. Decentralization
Nestlé is a firm believer in sourcing local raw resources for their goods. It not only benefits
the town's local farmers but also promotes the economy, leading to the area's general growth.
The Nestlé group fosters local creativity, integrates technology, and is working to improve
the transparency of the raw materials used in its products. As a result, the company can
generate significant operating savings.
7. Digital Transformation
Nestlé's Weaknesses
The shortcomings of a firm prevent it from reaching its full potential. A poor brand, elevated
turnover, excessive debt levels, an insufficient supply chain, or a lack of cash are all areas
where the firm must develop to remain competitive.
Has been chastised for selling tainted food, wasting a lot of water, and other unethical
methods.
Nestlé has recently received a lot of unfavourable press. They have lately been chastised for
utilizing lead in the making of Maggi. The following are some of the claims levelled against
Nestlé:
Nestlé has had cases of tainted food being sold despite taking stringent precautions to
maintain the highest quality of food. This does not assist the corporation's public image, and
the company has already faced public outrage.
2. Organizational Structure
Nestlé's current organizational structure is split by product portfolio rather than regional
activities. When it comes to decision-making, this generates a huge power gap and limits
operational agility. This is usually a huge stumbling block when it comes to growing its
activities.
Nestlé relies heavily on advertising to promote its products, which raises marketing expenses
and, as a result, raises the risk affiliated with returns. With upcoming upheavals, this strategy
will not be able to keep Nestlé afloat in the long run.
Nestlé's Opportunities
Opportunities are the path of opportunity or chances for something wonderful to occur, but
they must be seized by the firm!
Almost 62 percent of customers prefer to choose items that are devoid of dangerous
ingredients. Today's customers are health-conscious, and Nestlé can capitalize on this trend
by positioning itself as the healthiest alternative on the market.
Customers increasingly base their purchasing decisions on whether an item is ethical and
whether it has negative environmental consequences. Nestlé's brand image may be improved
by being upfront about material sourcing.
There are no RTD tea or coffee products available from Nestlé. Small businesses dominate
this industry. Nestlé can take advantage of its assets to enter this underserved sector.
It will aid the organization in lowering expenses, increasing efficiency, and effectively using
workers. Local integration and production will streamline processes, lowering long-term
costs.
Nestlé sees a great potential to develop its operations in Asia, Oceania, and Sub-Saharan
Africa as the average family income rises. New or current items can be introduced to expand
the company's product line, resulting in improved visibility and profitability.
Nestlé's Threats
A threat is something that might hurt your company from the outside, such as supply chain
concerns, market upheavals, or a recruiting deficit. Before becoming a victim and slowing
your progress, it's vital to anticipate risks and take action.
Coffee output has suffered as a result of climate changes and global warming, and Nestlé
must find a way out. In addition to those considerations, price competitiveness has
exacerbated the situation even further.
In the old days, Nestlé's image and customer confidence suffered greatly as a result of non-
compliance with food safety regulations. The finest example is Maggi in India, which failed
one of the lab tests and lost a significant amount of market share.
4. Rivals
We strive to create products that are right for consumers and that contribute to public health
and a sound environment. It's good business.
This guides the choices we make today and shapes our portfolio for tomorrow - whether
through product evolution, innovation, acquisition, or partnership.
We focus our energy and resources where unlocking the power of food can make the greatest
difference to the lives of people and pets, protect, and enhance the environment and generate
significant value for our shareholders and other stakeholders alike. This is why we:
- Apply our expertise in nutrition, health and wellness - developed over more than 150
years - to help people, families and pets live happier, healthier lives.
- Meet the needs of the modern consumer with healthy, delicious, convenient products
for conscious, time-constrained lifestyles.
- Advance our sustainability agenda to enhance the health of the planet, drive societal
progress and support a sustainable food system, particularly in terms of:
- Packaging and delivering our products in ways that are safe and protect the
environment.
Our long-term value creation model is based on the balanced pursuit of resource efficient top-
and bottom-line growth as well as improved capital efficiency. We create value by:
- Allocating our resources and capital with discipline and clear priorities, including
through acquisitions and divestitures.
4 P’s o f Marketi ng
Nestle Product Strategy:
The product strategy and mix in Nestle marketing strategy can be explained as follows:
Nestle is the world‘s largest food company. It has around 8,000 brands with wide range of
products across the market, which form the backbone of its marketing mix product strategy.
But primarily it focuses on below products: -
• Dairy products: - There are many milk products that have been brought up such as Nestle
milk, nestle slim and Nestle every day.
• Chocolates: - One of the most dominant segments for Nestle is chocolates. It has popular
products such as KitKat, Munch, Éclairs, Polo and Milky Bar. It has also come up with
Alpino chocolate to target the gifting segment
• Beverages: - You all know about Nescafe. It is biggest coffee brand in the world. It is
owned by Nestle. It has worldwide distribution channel.
• Ready to Cook foods: - Nestle has come up with many ready to cook foods along with
products that help in cooking such Maggi Instant Noodles. Ready to cook noodle- Maggi one
of the biggest hit for Nestle has become a brand in its own with different products like Maggi
Pasta, Maggi sauce and many more.
Price of the products is based on the perceived quality of the product. You could find in the
market that the competitor products are less expensive as compared to Nestle products
belonging to same category. Take the example of Maggi. It is priced some bit higher as
compared to other instant noodles brands. It is because the perceived value of the product is
much better and customer can easily pay some extra money to get a better quality. Very often
you can see products with varied sizes along with variation in cost. You can find Maggi
packet of 16 pieces and single packet Maggie costing very low. Mainly the pricing strategy
for Nestle includes launching different SKU (Stock Keeping Units) at various price points
(line filling) to cater different customers. With this, you can cater large customer base. We
can also see they provide bulk discounts in various stores like Walmart, Tesco etc. In the
segment of chocolate, they follow competitive pricing strategy. Prices are almost like
Cadbury‘s products. Thus, the pricing strategy in the marketing mix of Nestle is dependent
upon the competitor, product quality, geography being served etc.
Most of the sales and revenues for Nestle come from European countries. It is almost 90
percent of the total sales. Typically, they follow a FMCG/CPG channel of distribution. It also
involves breaking the bulb. Bulk products come out of the factory and are sent to C&F. It is a
kind of warehouse where these products are kept. From there, it sent to distributors and then
to retailers. Now, consumers can buy the products through retailers. They do come up with
discounts and tactics to keep busy this distribution channels. Maggi and Nescafe are the two
products that are in great demand. With the help of these two products, they can easily move
their other products. Thus, distributor can easily get discounts on stronger products, if they
buy some weaker products.
The promotional and advertising strategy in the Nestle marketing strategy is as follows:
Nestle has always come up with some unique marketing ideas when they need to brand their
products. The overall marketing mixes promotional strategy for Nestle focuses on extensive
advertising and marketing for its individual brands and products. When Nescafe came up in
the market, they brought Nescafe tunes which are still talked about it. They have always tried
to push their brands to the consumers. Let‘s take the example of Maggi which they associated
with 2-minute snacks which can easily be prepared by the mothers. This made it famous
among the kids and mothers. They have always focused on the quality and nutritional values
of the products.
Strong presence of Maggi and Nescafe at the ground levels has made them to push in the
sales and promotions. It has always followed above the line marketing strategy. It is the
strong product portfolio that makes it different from its competitors. In case of KitKat, a very
famous nestle brand, nestle has a clear marketing message of Have a Break, have a KitKat
which has become associated with the brand. Nestle uses all media like TV, hoardings, print,
online ads etc. for its promotional strategy. Thus, marketing mix of Nestle is covered in the
above points.
NESTLE MANAGEMENT
It all started back in march 2014 in Uttar Pradesh, where the authorities informed nestle
that MSG was detected in a sample of MAGGI Noodles that carried a ―No added MSG‖
claim on the pack. In the first half of 2015, Nestle India decides to temporarily stop selling
MAGGI Noodles in India until the situation with the authorities is resolved. The Food Safety
and Standards Authority of India (FSSAI) issues an order to Nestle India which includes,
among others, the:
Recall of all nine variants of MAGGI Noodles from the marketHalt of commercial activities
related to the product, including sale and production. Removal of the ―No Added MSG‖
claim from product packs.
Withdrawal / recall of MAGGI oats Noodles as it did not have ‗Product Approval‘.
In June 2015, Nestle India files a legal petition with the Bombay High Court, seeking a
judicial review of this order. While legal proceedings arc ongoing, Nestle continues to
comply with the FSSAI order and destroys over 35,000 tons of the product, though the
Bombay High Court allows Nestle India to continue exporting MAGGI Noodles. As the year
passed, in the second half of the year in August 2015, The Bombay High Court overturns the
gove rnment‘s ban on M AGG3 Noodles, a r guing that the move was ― arbitr ar y‖ and
―that
principles of natur al j usti ce we re not foll owed. ‖ T he court rules that Nestle India
can bring the product back to the market if fresh tests – conducted in three accredited
laboratories on
the existing samples and subsequently on the freshly manufactured product – find the product
safe.
In October 2015, Test results from all three laboratories mandated by the Bombay High
Court show MAGGI Noodles to be safe, with lead content well within the permissible limits.
In compliance with the orders of the Bombay High Court, Nestle India commences
manufacturing MAGGI Noodles and submits the new batches for fresh tests to reconfirm
they are safe for consumption. In November 2015, All three NABL (National Accreditation
Board for Testing and Calibration Laboratories) accredited laboratories – mandated by the
Bombay High Court – find samples of the newly manufactured MAGGI Noodles to be safe
for consumption, with lead content well within permissible limits. Now that the orders of the
Bombay High Court have been complied with, Nestle India has made MAGGI Noodles
available for sale once again.
Affected by a countrywide recall and destruction of its instant noodle brand, Maggi,
India ‘s lar gest food com pan y b y reven ue, N estl e India, post ed it s first qua rterl
y loss in 17 years. The Indian subsidiary of the world‘s largest food company reported a
Rs 64.4-crore net loss in what was its most challenging quarter to date. Thanks to the recall
and ban of Maggi
on June 5 (trouble for it began towards the end of May when sales began falling after
detection of contaminants in some of the product‘s samples), the company took a one-time
charge of Rs 452 crore which hit its bottom line.
Nestle Indi a‘s nine variants of Maggi noodles accounts for nearly 70% of the instant noodles
market, which took a massive hit when a blanket ban was imposed on the product. After the
ban was imposed on June 5, the company‘s share price tanked. On June 8, three days after the
Pan-India ban was imposed, Nestl e India ‘s shar e p rice was do wn to R s 5,539.8, t h
e lowest level it had seen all year. Since then, the company‘s scrip has seen major volatility,
regaining the highest level since the ban at Rs 20,496.85 per share on April 21,2023. On the
date, Goa deputy chief minister Francis D‘Souica had said that he favored the re-think on the
Maggi
ban after the latest tests conducted by a central government laboratory in Karnataka found the
instant noodles safe for consumption.
Profits / Sales:
Nestle added while releasing its results that the June quarter of this year was not comparable
with the corresponding period last year. ―Results for the quarter have been affected by the
Maggi noodle issue,‖ it. said in its statutory statement. ―Recent developments and growing
concerns about the product had led to an environment of confusion, leading to the product
being temporarily taken off shelves,‖ the company said. ―Without question, trust has been hit
and for Nestle to win that back will not be easy,‖ a senior industry executive from a rival
company said. ―While Maggi contributed some 22 per cent to the company‘s revenue in
2008, it is now at 30 per cent,‖ this executive said. ―In the same period, revenue contributions
of Nestle‘s ‗chocolate & confectionery‘ and ‗beverages‘ businesses have together come down
to some 25 per cent from 32 per cent,‖ he added. As things stand today, Nestle India derives
46 per cent of its revenues from milk products and nutrition, 29 per cent from prepared dishes
and cooking aids, 13 per cent from beverages and 12 per cent from chocolates.
Fine:
The Corporate Affairs Ministry imposed a nearly-Rs 640 crore fine on Nestle India, in lieu of
finding MSG and lead beyond the permissible limit in Maggi noodles. The government filed
a Rs 640-crore class action suit before the consumer forum National Consumer Disputes
Redressal Commission (NCDRC). Out of this Rs 284.45 crore was sought in basic damages,
and another Rs 355.5 crore in punitive damages. However, the government had said that the
penalty could go higher as it was still calculating further damages to be sought.
Board of directors:
Mr. Suresh Narayanan Chairman and Managing Director
Ms. Svetlana Boldina Executive Director – Finance & Control and CFO
Mr. Matthias Christoph Lohner Executive Director - Technical
Ms. Anjali Bansal Independent Non-Executive Director
Mr. R. V. Kanoria Independent Non-Executive Director
Ms. Alpana Parida Independent Non-Executive Director
Dr. Swati A. Piramal Independent Non-Executive Director
Mr. P. R. Ramesh Independent Non-Executive Director
Operations:
Nestle India shut down Maggi production at all of its eight production units in India.
However, since the ban was set aside, Nestle India has started production at three of the eight
factories. and wants to start production at all the factories soon. ―We have resumed
manufacturing of Maggi Noodles at three of our plants, at Nanjangud (Karnataka), Moga
(Punjab) and Bicholim (Goa),‖ said a Nestle India Spokesperson.
Advertising:
With the ban now kept aside and Maggi cleared for production, Nestle India is gearing to
relaunch the instant noodles. For this, the company has said that it. Will be advertising
aggressively, increased its spending on TV commercials. During the ban, Nestle India had
come up with a series of advertisements to the theme #WeMissYoutoo.
Nestle India is active on all three major social media platforms Instagram, Facebook, and
Twitter. Here is an overview of the same.
About 11 Million people like It enjoys about 27.8K followers on Nestle has about 412 K followers
Nestle’s Facebook Page Instagram on Insta
Marketing Strategy by Nestle Post Ban:
In today‘s world of citizen journalism, news goes viral in a flash. And if it is bad news, it
acquires a spin and speed that is virtually impossible to stop. Brands, therefore, are more
susceptible to a tarnished image today, than in any other day and age. The cocktail of the
online and offline world, consumer and shareholder activism, random decisions by
government bodies, volatile social groups, and hatchet jobs by competing firms make it all
too easy to fall from grace. And the loss of goodwill can play out in the form of decreased
revenue, loss of clients or suppliers and loss of market share. Maggi re-launched with a
digital media campaign ―WeMissYouToo‖ and they have been promoting it forcefully on all
brand‘s social media channels. This as well as the brand has turned to a great degree brief in
answering to their fan‘s post. Be it loving their presents or answering on them, Maggi is
trying to include an individual touch in their correspondence. In an interview, Narayanan said
the organization is taking a look at setting up 24×7 sans toll customer services too keeping in
mind the end goal to ―get the connect, and network with the product consumer. Suresh
Narayanan, chairman and managing director, Nestle India, said, ―Our promotional strategy
will be across three platforms. We will use traditional media to reassure our consumers
regarding the safety of our product. We will connect digitally with our target group. Besides,
there will be a lot of events tor brand activation.‖ The Swiss food major has also partnered
with online marketplace Snap deal for selling Maggi.
Ma r k e t i n g C a mp a i g n s of Ne s t l e
Nestle has rolled out several campaigns all these years but here are the few marketing
campaigns that have left a lasting impression on the Indian audience.
Nescafe, in the above advertisement, encouraged the youth of the country to dream, act, and
achieve their life goals.
And in the process, Nestle also highlighted to millennials that “It all starts with a Nescafe”.
Thus, promoting Nescafe and once again establishing that Nescafe plays a vital role in
keeping the youth alive and fresh.
Poora Poshan Poori Tasalli: This campaign was initiated by Nestle Ceregrow in 2019
targeting urban couples who had children between the age of 2-5 years.
In a country like India where parents pay a lot of attention to their child‘s health and proper
nourishment right away from the child‘s birth.
Nestle very smartly portrayed how Indian mothers are worried about their child‘s proper
nourishment. The brand showcased its product and communicated that Ceregrow not only
fulfils the child‘s hunger but also provides the right kind of nutrients for the child‘s immunity
and overall development and nourishment.
You can watch this short 45-second video by Nestle Ceregrow which delivers the message
beautifully and convinces urban parents why Ceregrow is a must-have for their growing
toddler.
3. A Campaign for Maggi lovers: Meri Maggi
Meri Maggi has been one of the most successful mass campaigns led by any brand in India.
The Meri Maggi campaign started with the motive to promote Maggi as a snack.
In this campaign, Nestle also encouraged its consumers to personalize Maggi as per their
wants and taste and share it on social media pages to get featured on Maggi‘s official
Facebook page.
Nestle started posting pictures of Maggi with different captions to make it relatable for
different sets of audiences. Be it a Pyjama Party or a Break after Long Lectures in the
college, Maggi made sure it relates to everyone and at the same time creates a strong brand
engagement.
It did not stop there! Maggi then asked its followers to write back to them about their ―Meri
Maggi‖ and people started sharing their versions of Maggi and when they would have it.
What‘s your version of ―Meri Maggi‖?
Watch the Meri Maggi Ad campaign here,
This is how Nestle India strategically uses its social media as a tool for its marketing
and campaign-related activities. Let us now examine how it is doing on its website in
the next section.
Findings:
Net sales
In 2013, Net sales grew up by 7.1% contributed by net realizations and volume growth in
certain products as compared to year ended 2012.
In 2014, the net sales grew up by 8.2% as compared to the previous year.
In 2015, net sales decreased by 17.2% largely due to the impact of MAGGI noodles issue.
Net domestic sales decreased by 18.3%. Export sales also decreased by 1.3% because of the
MAGGI issue and lower coffee exports.
The other current liabilities have increased, in comparison to the year 2014, mainly due to the
MAGGI noodles issue liability.
The Bollywood superstars who endorsed the brand are now facing the danger of FIR to be
lodged against them under various Indian Penal (―ode sections which include section 420
charge for cheating consumers, section 270 charge for involving in the malignant act
responsible for likely to spread diseases dangerous for human health and section 273 charge
for getting involved in the promotion of sale of noxious food.
Some websites and discussion forums reveal that it not the problem with the product rather
the way it is cooked even the company agrees to this but then question arises why such
warning was not given on the packet.
RECOMMENDATIONS:
MAGGI, being an icon of nestle; should not be the target of controversies that questioned its
reputation. Nestle should attach more value and significance to its product.
Each brand has a soul and distinct characteristic. That‘s what distinguishes a cult brand from
an average brand. Nestle should come up with representations at local vendors and media
with its best product quality assurance and safety.
Bearing the competition created by products of Knorr, patanjali, top ramen is an important
task for nestle now, after the comeback.
Nestle needs to re-formulate MAGG1 as per Indian standards and regulations, and replace
them in stores.
CONCLUSION:
Nestle motto ‗Good Food, Good Life‘ will have to prove its credibility and put a lot of efforts
again as it has ended up in scratch. Nestle should concentrate on product portfolio
diversification with focus on diary, beverages and coffee and also chocolates as well as
confectioner}‘ in order to avoid over-dependence on single product. It is rightly said one can
do anything but only if God and Time permits. Those who fail to analyses the happenings in
the surroundings become losers and those who accommodate and adjust according to time
rule the world. The controversy started igniting last year but no officials of Nestle India paid
heed to do the necessary rectification resulting now a bad name and shame for the company.
Health is of prime concern for everyone though taste also matters. It is very difficult to
restore the faith lost because even the school going kids now say -Maggi is bad. This
controversy will surely lead to increased awareness among consumers for understanding the
impact of any product before consumption rather than blindly believing on false claims in the
advertisements. It will also pressurize the other food product giants to move cautiously by
abiding the norms of Food and Safety regulatory norms.
Product line
1. Maggi Pasta
2. Maggi Sauces
3. Barone
4. Maggi Cuppa
5. Masala-A-Magic
6. Nangrow
7. Munch
8. Milky bar
9. KitKat
10. Milkmaid
11. Nestea
12. Maggi
14. Sunrise
15. Polo
Stock Market
Nestlé India Limited is the Indian subsidiary of Nestlé which is a Swiss multinational
company. The company is headquartered in Gurgaon, Haryana. The company's products
include food, beverages, chocolate, and confectioneries. The company was incorporated on
28 March 1959 and was promoted by Nestle Alimentana S.A. via a subsidiary, Nestle
Holdings Ltd. As of 2023, the parent company Nestlé owns 62.76% of Nestlé India. The
company has 9 production facilities in various locations across India.
NESTLE INDIA LIMITED
20000
18000
16000
14000
12000
10000
8000
6000
4000
2000
NESTLE SHARE
PRICE
NESTLE showed a continuous growth in its share prices with great strategies and hard work.
Nestle – largest food company in terms of revenue is based out of Vaud, Switzerland. It has a
wide range of product line such baby foods, coffee, tea, dairy products, Maggi and many
more. It has presence in 194 countries having approximate 450 factories with a head count of
339,000 people. It was founded in the year 1866 by Henry Nestle and Nestle came into
existence when it collaborated with Anglo- Swiss Milk Company in the year 1905. Till now
company has made many mergers and acquisitions that have expanded its customer base and
visibility in the market. Nestle was ranked as No. 11 in the FT Global 500 2014 with the
market capitalization of US$ 240 billion.
CHAPTER 3
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
IMPORTANCE OF RESEARCH
Whether you need to do research for a class or for another sort of assignment, there are many
advantages to using as many research tools as you can.
●More fact corroboration: When you find a fact in one reference source that is supported in
another reference source, you can be assured that the fact you are using in your business
paper or assignment is accurate.
●More viewpoints: The more resources you use; the more viewpoints you will consider
during your topic exploration. This allows you to consider more ideas than the original one
you may have been assigned.
●More facts: When you use more research skills and sources, you will be able to gain more
facts for your final project.
●Larger frame of understanding: Because different research sources offer different kinds of
information, you can find different ways to understand your topic, depending on the way you
need to present your findings.
●Gain knowledge quickly: If you need to prepare for a presentation or a test, you want to be
able to find the facts about your topic quickly. With basic research skills, you will find what
you need promptly.
When you are collecting information, you need to do more than to just look for the answers
you need. You also need to ensure that the information you have gathered is truthful.
Problem Oriented Research: Research is done by industry apex body for sorting
out problems faced by all the companies. E.g.: - WTO does problem-oriented research
for developing countries, in India agriculture and processed food export development
authority (APEDA) conduct regular research for the benefit of agri-industry.
• As the name indicates, Problem identifying researches are undertaken to know the
exact nature of problem that is required to be solved.
• Here, one clarification is needed when we use the term ‗Problem‘, it is not a
problem in true sense. It is usually a decision-making dilemma or it is a need to tackle
a particular business situation.
For e.g.: -Revenue of Mobile company has decreased by 25% in the last year. The
cause of the problem can be any one of the following:
• In the same case, suppose the prime cause of problem is poor advertising campaign
& secondary cause is higher pricing. To tackle the problem of poor advertising, we
have to answer questions like, what can be the new advertising campaign, who can be
the brand ambassador, which media, which channel, at what time & during which
programmer advertisements will be broadcast.
Problem Solving: This type of research is done by an individual company for the
problem faced by it. Marketing research and market research are the applied research.
For e.g.: - Videocon international conducts research to study customer satisfaction
level, it will be problem solving research. In short, the main aim of problem-solving
research is to discover some solution for some pressing practical problem.
- Historical Research: it allows one to discuss past and present events in the context
of the present condition, and allows one to reflect and provide possible answers to
current issues and problems. E.g.: -the lending pattern of business in the 19th
century.
CHAPTER 4
DATA ANALYSIS
YES 98%
NO 0%
MAYBE 2%
KNOW
YES ON MAYBE
DATA INTERPRETATION
Most of the people know about the product so the company should focus on getting loyal
customers base by giving them what they need at best possible way and at lowest cost
keeping in mind environmental responsibilities.
Q2. HOW DO YOU THINK NESTLE COMPANY AS?
DATA ANALYSIS
CEREALS COMPANY 0%
COMPANY
COMPANY
90
80
81.4
70
60
50
40
30
20
10
2.4 0 11.6 4.6
0
BABY FOOD CEREALS COFFEE CHOCOLATE ALL
DATA INTERPRETATION
DATA ANALYSIS
CADBURY 16.3%
KITKAT 41.9%
MUNCH 18.6%
SHARE
16%
23%
19%
42%
DATA INTERPRETATION
NESTLE SHOULD ALSO TRY TO MAKE CHOCOLATES LIKE DAIRY MILK WITH
DOSEN‘T HAVE WAFERS INDISDE, WHICH IS PRESENT IN KITKAT AS WELL AS
MUNCH.
Q4. WHAT DO YOU LIKE?
DATA ANALYSIS
MAGGI 97.7%
TOP-RAMEN 2.3%
NOODLE
2%
98%
MAGGI TOP-RAMEN
DATA INTERPRETATION
NESTLE DID A VERY GREAT WORK WITH MAGGI BECAUSE IT COVER ALMOST
THE WHOLE MARKET SHARE BUT IT SHOULD NOT STOP INNOVATION WITH
MAGGI AS IT CAN GIVE COMPETITOR A CHANCE TO COME INTO THE MARKET.
AND IT SHOULD KEEP CHECK ON IT‘S QUALITY TO SAFEGUARD ITSELF FOR A
CASE LIKE BEFORE WHICH LEAD TO GREAT LOSS AND CUSTOMER DISTRUST
CAUSE AGAIN A CASE LIKE THAT AND MAGGI HAS TO PAY A GREAT COST
AND WILL LOSS CUSTOMERS TRUST AND MARKET SHARE.
Q5. WHICH MODE OF ADVERTISEMENT INFLUENCES YOU MOST
TO BUY A PARTICULAR PRODUCT?
DATA ANALYSIS
TELEVISION 72.1%
RADIO 2.3%
MAGZINE 0%
OTHERS 25.6%
MODE
MODE
80
70
60
50
40
30
20
10
0
TELEVISION RADIO MAGZINE OTHERS
DATA INTERPRETATION
DATA ANALYSIS
6 MONTHS TO 1 YEAR 7%
NEVER USED 0%
DURATION
DURATION
1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
LESS THAN A MONTH 6 MONTH TO 1 YEAR OVER 3 YEARS NEVER USED
DATA INTERPRETATION
DATA ANALYISIS
0 0%
1 0%
2 2.3%
3 14%
4 37.2%
5 46.5%
RATINGS
5
4
0 10 20 30 40 50
RATINGS
DATA INTERPRETAION
3. More than one-third of respondents like KITKAT as a chocolate over Cadbury, silk,
Munch etc.
6. Most of the respondents are using Nestle products for more than 3 years.
7. Majority of people has rated Nestle between 4 or 5 stars according to their satisfaction
level from the company‘s product.
CHAPTER 6
Followed are a couple of recommendations in which might enhance their performance which
are:
• Avoid actions that are bound to fail Even though there is no way that someone can know
the future, but a good management team should be able to extrapolate if a plan they have
might back fire such as the scandalous event resulting from their oil practices, for cosmetics,
activities mentioned earlier. They should have expected that dealing with such activities
might result in leakage and that they should have taken precautions before head.
• Invest on R&D Nestle should concentrate on that in order to come up with new products.
Since the company started out to serve infants in need for nutrition, Nestle should enhance
and find way to enrich their product with substances and vitamins that will provide children
their daily needs of calcium and even mothers. Because they should start from mothers‘
health in order to provide infants‘ health. Especially now when children suffer diabetes
amongst other things, they need more care than before.
• Joint ventures
Nestle should carry on with their partnership activities that will increase their competitive
advantage more. However, they should not venture their business with companies that can‘t
sustain the pressure of the market and in which waver under the scrutiny of competitors. They
should choose qualified companies and companies that show promising performance.
LIMITATIONS OF THE RESEARCH
Following are some of the limitations of the study
I considered Raipur city only because of limited time.
As the quantitative research was conducted using online surveys, there was minimal
control over the composition of the respondents in total sample.
Another limitation of the study is that, Findings of the study assume that the
respondents have given correct information.
Respondent Bias was one of the major limitations of research, and there might not be
perfect positive response from all the respondents.
CHAPTER 7
CONCLUSION
CONCLUSION
QUESTIONNAIRE
- Yes
- No
- Maybe
- Cereals company
- Coffee company
- Chocolate company
- Cadbury
- KitKat
- Munch
- Cadbury silk
Q4. What do you like?
- Maggie
- Top-ramen
Q5. Which mode of advertisement influence you most to buy a particular product?
- Television
- Radio
- Magazine
- Others
- 6 months - 1 year
- Over 3 years
- Never used
- 0
- 1
- 2
- 3
- 4
- 5
BIBILOGRAPHY
C.S. Kothari: - Research Methodology and Techniques Vishwa Publication, New Delhi,
Mumbai
Websites: -
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