EXECUTIVE SUMMARY

The present study is about the Nestle Brand and the consumer preference. The aim of the

study is to know the consumer preference about the various products of nestle brand in

Lucknow and also the branding behavior of Nestle. Consumers have higher expectations than

ever before. They want products to match these expectations. They also want accurate, up-to-

date and useful information about what they buy. In short, consumers want the facts. This

growth of consumer power is known as consumerism.

In the area of fast moving consumer goods (FMCG), marketing has become a specialized

and complex process. When developing products, organizations try to meet the needs of their

consumers as fully as possible. This is vital if they want to do better than their competitors.

This process of development around the needs of its consumers is called marketing

orientation.

In this the study is conducted, to find out how nestle establish their various products in

the market that affect the buying behavior of customers, how much they use nestle products

in their daily lives, what products they normally buy and what factors influence them to buy

these products , from where they most prefer these products and also to know which product

of nestle brand is mostly liked by the consumer. The study try to find the satisfaction level of

consumers by using the different nestle products.

1

NESTLÉ

Good Food, Good Life

Aerial view of Nestlé's corporate headquarters building in Vevey, Switzerland.

Type Société Anonyme

Traded as SIX: NESN

Euronext: NESTS

OTC Pink: NSRGY

BSE: 500790

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NSE: NESTLEIND

Industry Food processing

Founded

Anglo-Swiss Condensed Milk Company (1866)

Farine Lactée Henri Nestlé (1867)

Nestlé and Anglo-Swiss Condensed Milk Company (1905)

Founder Henri Nestlé, Charles Page, George Page

Headquarters Vevey, Vaud, Switzerland

Area served Worldwide

Key people

Peter Brabeck-Letmathe (Chairman)

Paul Bulcke (CEO)

Wan Ling Martello (CFO)

ProductsBaby food, coffee, dairy products, breakfast cereals,

confectionery, bottled water, ice cream, pet foods (list...)

Revenue CHF 91.6 billion (2014)[1]

Operating income CHF 13.07 billion (2013)[1]

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Profit CHF 10.02 billion (2013)[1]

Total assets CHF 120.44 billion (2013)[1]

Total equity CHF 64.14 billion (2013)[1]

Number of

employees339,000 (2014)[1][2]

Website www.nestle.com

Nestlé S.A. (French pronunciation: [nɛsle]; English / ̍ n ɛ s l eɪ / , / ̍ n ɛ s ə l / , / ̍ n ɛ s l i / ) is a Swiss

multinational food and beverage company headquartered in Vevey, Switzerland. It is the

largest food company in the world measured by revenues.[3][4]

4

Nestlé’s products include baby food, bottled water, breakfast cereals, coffee and tea,

confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. Twenty-nine of

Nestlé’s brands have annual sales of over CHF1 billion (about US$1.1 billion),[3][5] including

Nespresso, Nescafé, Kit Kat, Smarties, Nesquik, Stouffer’s, Vittel, and Maggi. Nestlé has 447

factories, operates in 194 countries, and employs around 333,000 people. It is one of the main

shareholders of L’Oreal, the world’s largest cosmetics company.[6]

Nestlé was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established in

1866 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded

in 1866 by Henri Nestlé. The company grew significantly during the First World War and

again following the Second World War, expanding its offerings beyond its early condensed

milk and infant formula products. The company has made a number of corporate acquisitions,

including Crosse & Blackwell in 1950, Findus in 1963, Libby’s in 1971, Rowntree

Mackintosh in 1988, and Gerber in 2007.

Nestlé has a primary listing on the SIX Swiss Exchange and is a constituent of the Swiss

Market Index. It has a secondary listing on Euronext. In 2011, Nestlé was listed No. 1 in the

Fortune Global 500 as the world’s most profitable corporation.[7] With a market capitalization

of US$233 billion, Nestlé ranked No. 9 in the FT Global 500 2013.[8]

5

Nestle is multinational manufacturer of food products. It is headquartered

in Vevey, Switzerland, and operates factories in more than 80 countries.

Nestlé's chief products are condensed and powdered milk, baby foods,

chocolate products, candies, instant coffees and teas, soups, seasonings and

condiments, frozen foods, ice cream, and bottled water.

6

Nestle in India

Nestlé India is a subsidiary of Nestlé S.A. of Switzerland. With eight factories and a large

number of co-packers, Nestlé India is a vibrant Company that provides consumers in India

with products of global standards and is committed to long-term sustainable growth and

shareholder satisfaction.

The Company insists on honesty, integrity and fairness

in all aspects of its business and expects the same in its

relationships. This has earned it the trust and respect of

every strata of society that it comes in contact with and

is acknowledged amongst India's 'Most Respected

Companies' and amongst the 'Top Wealth Creators of

India'

7

After India's independence in 1947, the economic policies of the Indian Government

emphasised 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 centres that would not only ensure prompt collection and pay

fair prices, but also instil 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 nine decades 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

8

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 manufactures products of truly international quality under

internationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR, KIT

KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also

introduced products of daily consumption and use such as NESTLÉ Milk,, NESTLÉ

Fresh 'n' Natural Dahi and NESTLÉ Jeera Raita.

The world’s largest marketer of chocolates (became world number one when it acquired

Rowntree Macintosh of the UK) - Nestle, made its foray in the Indian chocolate Industry in

November 1990.

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

It launched three products - the milk chocolate, the bitter chocolate and Crackle

(a crunchy chocolate) - in the slabs category and Bar One in count lines.

9

Nestle India Limited; a subsidiary of Nestle; was founded by Henri Nestle in Switzerland in

the year 1867. The company was established in India in 1961, in an effort to upgrade the

existing standards of the Indian milk industry at that period. The first production unit was

launched in Punjab.

Facts about Nestle India:

Nestle India Limited has grown over the years into the most desired brand in the food and

beverage sector in India. The company has succeeded in meeting the expectations of the

Indian government in bringing a marked change in the milk industry through its suggestion

on latest dairy farming techniques and upkeep of cows to improve the milk yield. Nestle India

Limited gave directions to the farmers in incorporating the advanced technological methods

with regard to crop maintenance and irrigation. The company proposed the set up of centers

that not only catered to the storing and selling of milk, but also maintained contacts with the

farmers.

Manufacturing Units of Nestle India:

Nestle India Limited initiated its workings in India with the Moga unit in Punjab in 1961;

succeeded by the Choladi unit located in the state of Tamil Nadu. The Moga unit dealt

entirely with the proper management of dairy products whereas the Choladi unit diverted its

interests to the tea industry. The main purpose behind the set up of Choladi unit was to treat

the tea crop to produce soluble tea. Nestle India Limited is also the proud of owner of

Nanjangud unit in Karnataka; Samalkha unit in Haryana; Ponda and Bicholim units in Goa;

and Pant Nagar unit in Uttarakhand.

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Products of Nestle India:

Nestle India Limited has spread its wings to significant areas within the food and beverage

industry. It has various products like chocolates, infant food, confectionery, prepared dishes

and so on. The company produces delicious chocolates of varied tastes, quality, make, and

ingredients to allure the taste buds to the level of indulgence with such widely known

chocolates as Milky Bar and Kit Kat, which differ in their hues. The beverage section offers

refreshing Nescafe, and health drinks such as Milo, Nestle Milk and the mouth-watering

condensed milk, known as Milkmaid. Maggi noodles, Nestle Jeera Raita fall under the

category of prepared dishes, whereas the latest additions of Nestle India like Nestle Fresh "n"

Natural Dahi and Nestle Slim Milk have won million hearts with their exquisite flavors.

Performance of Nestle India:

Nestle India's popularity is visible in its financial figures published for the second quarter

starting from April and ending in June 2007. The net profit for this quarter records a growth

of 18.1%, amounting to Rs. 95.7crores, and the net sales figure marks a rise of 23.2%;

whereas the exports delineate improvement by 15.6 %, which is calculated as Rs. 82crores.

The net domestic sales have also grown at a very fast pace to Rs. 756.9 crores, showing a

jump of approximately 24 %, when compared with the financial figures of the same period,

that is, from April to June in the previous year.

Consumers have higher expectations than ever before. They want products to match these

expectations. They also want accurate, up-to-date and useful information about what they

buy. In short, consumers want the facts. This growth of consumer power is known as

consumerism.

11

In the area of fast moving consumer goods (FMCG), marketing has become a specialized and

complex process. When developing products, organizations’ try to meet the needs of their

consumers as fully as possible. This is vital if they want to do better than their competitors.

This process of development around the needs of its consumers is called marketing

orientation.

12

Nestlé's business principles

Nestlé is the world's biggest food and beverage company. It wants to be known as a

'Respected, Trustworthy, Food, Nutrition, Health and Wellness Company'. Its actions are

guided by a series of business principles.

Market research by Nestlé showed that its customers have a genuine and growing interest in

information about its brands. In particular, consumers want more information about what they

eat and drink. They felt this information should be supplied as part of the product.

This case study shows how market research has helped Nestlé to exercise corporate

responsibility. It has done this by promoting healthy eating. The company played an

important role in the development of 'Guideline Daily Amounts' (GDAs). These were

developed by the Institute of Grocery Distribution (IGD), a trade association. Leading

manufacturers and retailers, including Nestlé, took part.

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Corporate responsibility through food labeling

Nutritionists and scientists provided the details of the nutrients that the average person needs

to consume each day. The GDAs were produced in line with published government

recommendations.

Having developed the guidelines, the next step was the most difficult. Consumers wanted the

information in a form they could easily understand. So the GDAs were added in a visual form

to the front of packs. This meant that consumers could easily understand and use the

information.

Nestlé and other major manufacturers chose to use symbols to help consumers make more

informed choices.

The symbols were designed to show the amount of calories, sugars, fat, saturates and salt in

products. The consistent use of these symbols helps consumers to understand the GDAs. This

means they can make choices quickly and easily about their daily diets.Placing the GDA

symbols on the front of packaging is a powerful tool. It gives consumers the information they

need immediately. This also supported the market research data which showed that

consumers' buying habits were influenced by a desire to eat healthily.

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History of Nestle

Henri Nestlé

Nestlé’s origins date back to 1866, when two separate Swiss enterprises were founded that

would later form the core of Nestlé. In the succeeding decades, the two competing enterprises

aggressively expanded their businesses throughout Europe and the United States.

In August 1867, Charles (US consul in Switzerland) and George Page, two brothers from Lee

County, Illinois, USA, established the Anglo-Swiss Condensed Milk Company in Cham,

Switzerland. Their first British operation was opened at Chippenham, Wiltshire, in 1873.[9]

A 1915 advertisement for “Nestlés Food”, an early infant formula.

In September 1866, in Vevey, Henri Nestlé developed a milk-based baby food, and soon

began marketing it. The following year saw Daniel Peter begin seven years of work

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perfecting his invention, the milk chocolate manufacturing process. Nestlé’s was the crucial

cooperation that Peter needed to solve the problem of removing all the water from the milk

added to his chocolate and thus preventing the product from developing mildew. Henri Nestlé

retired in 1875 but the company, under new ownership, retained his name as Société Farine

Lactée Henri Nestlé.

In 1877, Anglo-Swiss added milk-based baby foods to their products; in the following year,

the Nestlé Company added condensed milk, such that the firms became direct and fierce

rivals.

In 1905, the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk

Company, retaining that name until 1947, when the name ‘Nestlé Alimentana SA’ was taken

as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its

holding company, Alimentana SA, of Kempttal, Switzerland. Maggi was a major

manufacturer of soup mixes and related foodstuffs. The company’s current name was adopted

in 1977. By the early 1900s, the company was operating factories in the United States, the

United Kingdom, Germany, and Spain. The First World War created demand for dairy

products in the form of government contracts, and, by the end of the war, Nestlé’s production

had more than doubled.

Nestlé felt the effects of the Second World War immediately. Profits dropped from

US$20 million in 1938, to US$6 million in 1939. Factories were established in developing

countries, particularly in Latin America. Ironically, the war helped with the introduction of

the company’s newest product, Nescafé (“Nestlé’s Coffee”), which became a staple drink of

the US military. Nestlé’s production and sales rose in the wartime economy.

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The logo that Nestlé used until 1966.

After the war, government contracts dried up, and consumers switched back to fresh milk.

However, Nestlé’s management responded quickly, streamlining operations and reducing

debt. The 1920s saw Nestlé’s first expansion into new products, with chocolate-manufacture

becoming the company’s second most important activity. Louis Dapples was CEO till 1937,

when succeeded by Édouard Muller till his death in 1948.

The end of World War II was the beginning of a dynamic phase for Nestlé. Growth

accelerated and numerous companies were acquired. In 1947 Nestlé merged with Maggi, a

manufacturer of seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus

(1963), Libby’s (1971) and Stouffer’s (1973). Diversification came with a shareholding in

L’Oreal in 1974. In 1977, Nestlé made its second venture outside the food industry, by

acquiring Alcon Laboratories Inc.

In the 1980s, Nestlé’s improved bottom line allowed the company to launch a new round of

acquisitions. Carnation was acquired for $3 billion in 1984 and brought the evaporated milk

brand, as well as Coffee-Mate and Friskies to Nestlé. The confectionery company Rowntree

Mackintosh was acquired in 1988 for $4.5 billion, which brought brands such as Kit Kat,

Smarties and Aero.

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The Brazilian president, Lula da Silva, inaugurates a factory in Feira de Santana (Bahia), in

February 2007.

The first half of the 1990s proved to be favourable for Nestlé. Trade barriers crumbled, and

world markets developed into more or less integrated trading areas. Since 1996, there have

been various acquisitions, including San Pellegrino (1997), Spillers Petfoods (1998), and

Ralston Purina (2002). There were two major acquisitions in North America, both in 2002 –

in June, Nestlé merged its U.S. ice cream business into Dreyer’s, and in August a

US$2.6 billion acquisition was announced of Chef America, the creator of Hot Pockets. In

the same time-frame, Nestlé came close to purchasing the iconic American company

Hershey’s, one of its fiercest confectionery competitors, although the deal eventually fell

through.[10][better source needed] Another recent purchase included the Jenny Craig weight-loss

program, for US$600 million.

In December 2005, Nestlé bought the Greek company Delta Ice Cream for €240 million. In

January 2006, it took full ownership of Dreyer’s, thus becoming the world’s largest ice cream

maker, with a 17.5% market share.[11]

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In November 2006, Nestlé purchased the Medical Nutrition division of Novartis

Pharmaceutical for US$2.5 billion, also acquiring, in 2007, the milk-flavouring product

known as Ovaltine.

In April 2007, returning to its roots, Nestlé bought US baby-food manufacturer Gerber for

$5.5 billion.[12][13][14]

In December 2007, Nestlé entered into a strategic partnership with a Belgian chocolate

maker, Pierre Marcolini.[15]

Nestlé agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The sale

was to form part of a broader US$39.3 billion offer, by Novartis, for full acquisition of the

world’s largest eye-care company.[16]

On 1 March 2010, Nestlé concluded the purchase of Kraft Foods's North American frozen

pizza business for $3.7 billion.

In July 2011, Nestlé SA agreed to buy 60 percent of Hsu Fu Chi International Ltd. for about

$1.7 billion.[17] On 23 April 2012, Nestlé agreed to acquire Pfizer Inc.'s infant-nutrition unit

for $11.9 billion.[18] Before the acquisition, there was a 'bidding war' between the three

shareholders Nestlé, Mead Johnson Nutrition and Danone. Each of the companies held a

share, with Nestlé holding the biggest share (17%) (Johnson held 15%, Danone 13%).[19]

As of 28 May 2013, Nestlé has announced that it will expand R&D in its research center in

Singapore. With a primary focus on health and nutrition, Nestlé is investing $4.3 million in

its Singapore center, creating 20 jobs for experts in related R&D fields.[20] In 2013 Nestlé

Nigeria successfully pioneered and implemented the use of compressed natural gas as a fuel

source to power their Flowergate factory.[21]

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Products

Main article: List of Nestlé brands

Nestlé has 8,000 brands,[22] with a wide range of products across a number of markets,

including coffee, bottled water, milkshakes and other beverages, breakfast cereals, infant

foods, performance and healthcare nutrition, seasonings, soups and sauces, frozen and

refrigerated foods, and pet food.[23]

As of year end 2010, Nestlé held 29.7% of the shares of L'Oréal, the world's largest company

in cosmetics and beauty. Its brands including Garnier, Maybelline, and Lancôme as well as

The Body Shop stores. L’Oréal holds 10.41% of the shares of Sanofi-Aventis, the world's

number 3 and Europe's number 1 pharmaceutical company.[24]

Organization profile

Nestlé India is a subsidiary of Nestlé SA of Switzerland. With six factories and a large

number of co-packers, Nestlé India is a vibrant company that provides consumers in India

with products of global standards and is committed to long term sustainable growth and

shareholder satisfaction. The Company insists on honesty, integrity and fairness in all aspects

of its business and expects the same in its relationships. This has earned it the trust and

respect of every strata of society that it comes in contact with and is today acknowledged

amongst India’s ‘Most respected Companies’ and amongst the ‘Top Wealth Creators Of

India’.

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Products manufactured/ Services offered

Nestle India manufactures products in categories that include : “ Milk Products and

Nutrition”, “Beverages”, “ Prepared Dishes and Cooking Aids”, and “ Chocolate and

Confectionery”.

Nestlé India manufactures products of truly International quality under brand names such as

MILKMAID, EVERYDAY, MAGGI, NESCAFE, NESCAFE SUNRISE, NESTEA,

KITKAT, MILKY BAR, MUNCH, POLO, NESTLE MILK, NESTLE DAHI and NESTLE

FRUIT ‘N DAHI

Quality is our Best Product

Nestlé is conscious of the trust that consumers repose in its products .90 years, Nestlé India

has worked to understand and anticipate the needs of the consumers and create products that

add warmth, joy and nourishment to Consumers are our top priority and satisfying them is

our hallmark of success. For over life.The Nestlé brand on a product is the Seal of Guarantee

and promise to the consumer that it meets high quality standards.  Every time we see our

efforts translate into a smile of satisfaction on the consumers face, we feel honored to be part

of their life

.Nestle’s Philosophy on Code of Governance Nestlé India Ltd. is a subsidiary of Nestlé

S.A. of Switzerland and over the years it has followed best practice of Corporate

Governance and adhered to practices laid down by the Nestlé Group. 

Nestlé India’s business objective and that if its management and employees 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 consumers, shareholders, employees, business partners and

21

the national economy. Nestlé India is conscious of the fact that the success of a corporation is

a reflection of the professionalism, conduct and ethical values of its management and

employees. In addition to compliance with regulatory requirements, Nestlé India endeavors to

ensure that highest standards of ethical and responsible conduct are met throughout the

organization.

M a r k e t P o t e n t i a l22

‘ M a r k e t p o t e n t i a l i s t h e l i m i t a p p r o a c h e d b y m a r k e t d e m a n d a s

i n d u s t r y m a r k e t i n g e x p e n d i t u r e s a p p r o a c h i n f i n i t y f o r a g i v e n

m a r k e t i n g e n v i r o n m e n t .

T h e m a j o r c o n c e p t s i n m e a s u r i n g m a r k e t p o t e n t i a l a r e m a r k e t

d e m a n d , s a l e s f o r e c a s t , c o m p a n y d e m a n d , m a r k e t f o r e c a s t , a n d

c o m p a n y s a l e s p o t e n t i a l .

A v o c a b u l a r y f o r d e m a n d m e a s u r e m e n t

T h e m a j o r c o n c e p t s i n d e m a n d m e a s u r e m e n t a r e m a r k e t d e m a n d

a n d c o m p a n y d e m a n d . A m o n g w h i c h w e a r e g o i n g t o d i s c u s s a b o u t

s a l e s f o r e c a s t , a n d t h e p o t e n t i a l .

M a r k e t D e m a n d

T h e m a r k e t e r ’ s f i r s t s t e p i n e v a l u a t i n g m a r k e t i n g o p p o r t u n i t i e s i s

t o e s t i m a t e t o t a l m a r k e t d e m a n d . M a r k e t d e m a n d f o r a p r o d u c t i s

t h e t o t a l v o l u m e t h a t w o u l d b e b o u g h t b y a d e f i n e d c u s t o m e r g r o u p

i n a d e f i n e d g e o g r a p h i c a l a r e a i n a d e f i n e d t i m e p e r i o d i n a

d e f i n e d m a r k e t i n g e n v i r o n m e n t u n d e r a d e f i n e d m a r k e t i n g

p r o g r a m .

M a r k e t d e m a n d i s n o t a f i x e d n u m b e r , b u t r a t h e r a

f u n c t i o n o f t h e s t a t e d c o n d i t i o n s . F o r t h i s r e a s o n , i t c a n b e c a l l e d

t h e m a r k e t d e m a n d f u n c t i o n .

T h e d e p e n d e n c e o f t o t a l m a r k e t d e m a n d o n u n d e r l i n e

c o n d i t i o n i s i l l u s t r a t e d i n t h e f i g u r e g i v e n . T h e h o r i z o n t a l a x i s

23

s h o w s t h e r e s u l t i n g d e m a n d l e v e l . T h e c u r v e r e p r e s e n t s e s t i m a t e d

m a r k e t d e m a n d a s s o c i a t e d w i t h v a r y i n g l e v e l s o f i n d u s t r y

m a r k e t i n g e x p e n d i t u r e . S o m e b a s e s a l e s c a l l e d t h e m a r k e t

m i n i m u m , l a b e l e d q 1 i n t h e f i g u r e

w o u l d t a k e p l a c e w i t h o u t a n y d e m a n d s t i m u l a t i n g e x p e n d i t u r e s .

H i g h e r l e v e l s o f i n d u s t r y m a r k e t i n g e x p e n d i t u r e s w o u l d y i e l d

h i g h e r l e v e l s o f d e m a n d , f i r s t a t a n i n c r e a s i n g r a t e , t h e n a t a

d e c r e a s i n g r a t e . M a r k e t i n g e x p e n d i t u r e s b e y o n d a c e r t a i n l e v e l

w o u l d n o t s t i m u l a t e m u c h f u r t h e r d e m a n d t h u s s u g g e s t i n g a n u p p e r

l i m i t t o t h e m a r k e t d e m a n d c a l l e d m a r k e t p o t e n t i a l , a s l a b e l e d q 2 .

T h e d i s t a n c e b e t w e e n t h e m a r k e t m i n i m u m a n d t h e m a r k e t

p o t e n t i a l s h o w s t h e o v e r a l l m a r k e t i n g s e n s i t i v i t y o f d e m a n d . W e

c a n t h i n k o f t w o e x t r e m e t y p e s o f m a r k e t s , t h e e x p a n s i b l e a n d

n o n - e x p a n s i b l e . T h e e x p a n s i b l e m a r k e t , s u c h a s t h e m a r k e t f o r

r a c q u e t b a l l p l a y i n g , i s v e r y m u c h a f f e c t e d i n i t s t o t a l s i z e b y t h e

l e v e l o f i n d u s t r y m a r k e t i n g e x p e n d i t u r e s . I n f i g u r e , t h e d i s t a n c e

b e t w e e n q 1 a n d q 2 i s r e l a t i v e l y l a r g e . T h e n o n - e x p a n s i b l e m a r k e t

f o r e x a m p l e , t h e m a r k e t f o r o p e r a i s n o t m u c h a f f e c t e d b y t h e

24

l e v e l o f m a r k e t i n g e x p e n d i t u r e s . T h e d i s t a n c e b e t w e e n q 1 a n d q 2

i s r e l a t i v e l y s m a l l . T h e o r g a n i z a t i o n s s e l l i n g i n a n o n - e x p a n s i b l e

m a r k e t m u s t a c c e p t t h e m a r k e t ’ s s i z e t h e l e v e l o f p r i m a r y d e m a n d

f o r t h e p r o d u c t c l a s s a n d d i r e c t t h e i r e f f o r t s t o w i n n i n g a l a r g e r

m a r k e t s h a r e f o r t h e i r p r o d u c t , t h a t i s , t h e l e v e l o f s e l e c t i v e

d e m a n d f o r t h e c o m p a n y ’ s p r o d u c t .

I t p a y s t o c o m p a r e t h e c u r r e n t l e v e l o f m a r k e t d e m a n d t o t h e

p o t e n t i a l d e m a n d l e v e l . T h e r e s u l t i s c a l l e d t h e m a r k e t

p e n e t r a t i o n s i n d e x . A l o w m a r k e t p e n e t r a t i o n i n d e x i n d i c a t e s

s u b s t a n t i a l g r o w t h p o t e n t i a l f o r a l l t h e f i r m s . A h i g h m a r k e t

p o t e n t i a l p e n e t r a t i o n s i n d e x s u g g e s t s t h a t t h e r e w i l l b e i n c r e a s e d

c o s t s i n a t t r a c t i n g t h e f e w r e m a i n i n g p r o s p e c t s . G e n e r a l l y , p r i c e

c o m p e t i t i o n i n c r e a s e s a n d m a r g i n s f a l l w h e n t h e m a r k e t

p e n e t r a t i o n i n d e x i s a l r e a d y h i g h .

T h e c o m p a n y s h o u l d a l s o c o m p a r e i t s c u r r e n t m a r k e t s h a r e t o i t s

p o t e n t i a l m a r k e t s h a r e . T h e r e s u l t i s c a l l e d t h e c o m p a n y ’ s s h a r e

p e n e t r a t i o n i n d e x . A l o w s h a r e p e n e t r a t i o n i n d e x i n d i c a t e s t h a t t h e

c o m p a n y c a n g r e a t l y e x p a n d i t s s h a r e . T h e f a c t o r s l i k e l o w b r a n d

a w a r e n e s s , l o w b r a n d a v a i l a b i l i t y b e n e f i t d e f i c i e n c i e s , t o o h i g h a

p r i c e , h o l d i n g i t b a c k .

A f i r m s h o u l d c a l c u l a t e t h e s h a r e p e n e t r a t i o n i n c r e a s e s t h a t w o u l d

o c c u r w i t h t h e i n v e s t m e n t s t o r e m o v e e a c h d e f i c i e n c y , t o s e e

25

w h i c h i n v e s t m e n t s w o u l d p r o d u c e t h e g r e a t e s t i m p r o v e m e n t i n

s h a r e p e n e t r a t i o n .

I t i s v e r y i m p o r t a n t t o s e e t h a t t h e m a r k e t d e m a n d f u n c t i o n i s n o t

a p i c t u r e o f m a r k e t d e m a n d o v e r t i m e . R a t h e r , t h e c u r v e s h o w s

a l t e r n a t i v e c u r r e n t f o r e c a s t o f m a r k e t d e m a n d a s s o c i a t e d w i t h

a l t e r n a t i v e p o s s i b l e l e v e l s o f i n d u s t r y m a r k e t i n g e f f o r t i n t h e

c u r r e n t p e r i o d .

PRODUCT RANGE RESEARCHED

Nestlé has a wide range of products across a number of markets including coffee (Nescafé),

bottled water, other beverages, chocolate, ice cream, infant foods, performance and

healthcare nutrition, seasonings, frozen and refrigerated foods, confectionery and pet food.26

Drink

K Part of the Meals series

Common meals

Breakfast • Brunch • LunchTea • Dinner • Supper

Components & courses

Appetizer • Entrée • Main courseSide dish • Drink • Dessert

Related concepts

Food • Eating • CuisineEtiquette • Buffet • Banquet

A drink, or beverage, is a liquid specifically prepared for human consumption. In addition to

basic needs, beverages form part of the culture of human society.

Types of beverage

27

A carbonated beverage.

Water

Despite the fact that most beverages, including juice, soft drinks, and carbonated drinks, have

some form of water in them; water itself is often not classified as a beverage, and the word

beverage has been recurrently defined as not referring to water.

Essential to the survival of all organisms,[1] water has historically been an important and life-

sustaining drink to humans. Excluding fat, water composes approximately 70% of the human

body by mass. It is a crucial component of metabolic processes and serves as a solvent for

many bodily solutes. Health authorities have historically suggested at least eight glasses,

eight fluid ounces each, of water per day (64 fluid ounces, or 1.89 litres),[2][3] and the British

Dietetic Association recommends 1.8 litres.[1] The United States Environmental Protection

Agency has determined that the average adult actually ingests 2.0 litres per day.[3]

28

Distilled (pure) water is rarely found in nature.[4] Spring water, a natural resource from which

much bottled water comes, is generally imbued with minerals. Tap water, delivered by

domestic water systems in developed nations, refers to water piped to homes through a tap.

All of these forms of water are commonly drunk, often purified through filtration.[5]

Alcoholic beverages

An alcoholic beverage is a drink that contains ethanol, commonly known as alcohol (although

in chemistry the definition of “alcohol” includes many other compounds).

Beer has been a part of human culture for 8000 years.

29

Non-alcoholic beverages

Orange juice is usually served cold.

Main article: Non-alcoholic beverage

Non-alcoholic beverages are drinks that would normally contain alcohol, such as beer and

wine but are made with less than .5 percent alcohol by volume. The category includes drinks

that have undergone an alcohol removal process such as non-alcoholic beers and de-

alcoholized wines.

Non-alcoholic variants:

o Low alcohol beer

o Non-alcoholic wine

o Sparkling cider

30

Soft drinks

The name "soft drink" specifies a lack of alcohol by way of contrast to the term "hard drink"

and the term "drink", the latter of which is nominally neutral but often carries connotations of

alcoholic content. Beverages like colas, sparkling water, iced tea, lemonade, squash, and fruit

punch are among the most common types of soft drinks, while hot chocolate, hot tea, coffee,

milk, tap water, alcohol, and milkshakes do not fall into this classification. Many carbonated

soft drinks are optionally available in versions sweetened with sugars or with non-caloric

sweeteners.

Hot beverages

A cup of coffee.

Hot beverages

o Coffee -based beverages

Cappuccino

Coffee

31

Espresso

Café au lait

Frappé

Flavored coffees (mocha etc.)

Latte

o Hot chocolate

o Hot cider

Mulled cider

o Glühwein

o Tea -based beverages

Flavored teas (chai etc.)

Green tea

Pearl milk tea

Tea

o Herbal teas

Yerba Mate

o Roasted grain beverages

32

Others

Masala buttermilk.

Some substances may be called either food or drink, and accordingly may be eaten with a

spoon or drunk, depending upon their thickness and solid ingredients.

33

CHOCOLATE

.

Chocolate most commonly comes in dark, milk, and white varieties, with cocoa solids

contributing to the brown coloration.

Chocolate comprises a number of raw and processed foods that are produced from the seed

of the tropical cacao tree.

Chocolate has become one of the most popular flavors in the world. It is a common

ingredient in many snacks and desserts, including cookies, cake, ice cream, pudding, pie and

candy. Gifts of chocolate molded into different shapes have become traditional on certain

holidays: chocolate bunnies and eggs are popular at Easter, chocolate coins on Hanukkah,

Santa Claus and other holiday symbols at Christmas, and hearts on Valentine's Day.

Chocolate is also used in cold and hot beverages, including chocolate milk and hot chocolate.

34

Etymology

The word "chocolate" comes from the Aztecs of Mexico, and is derived from the Nahuatl

word xocolatl which is a combination of the words, xocolli, meaning "bitter", and atl, which

is "water". The Aztecs associated chocolate with Xochiquetzal, the goddess of fertility.

Chocolate is also associated with the Maya god of fertility. Mexican philologist Ignacio

Davila Garibi proposed that "Spaniards had coined the word by taking the Maya word chocol

and then replacing the Mayan term for water, haa, with the Aztec term, atl." However, it is

more likely that the Aztecs themselves coined the term, having long adopted into Nahuatl the

Mayan word for the "cacao" bean; the Spanish had little contact with the Maya before Cortés'

early reports to the Spanish King of the beverage known as xocolatl. William Bright noted

that the word xocoatl does not occur in early Spanish or Nahuatl colonial sources.

HISTORY

A mug of hot chocolate. Chocolate was first drunk rather than eaten. Native to lowland,

tropical South America, cacao has been cultivated for at least three millennia in Central

35

America and Mexico, with its earliest documented use around 1100 BC. The majority of the

Mesoamerican peoples made chocolate beverages, including the Maya and Aztecs.

Chocolate has been used as a drink for nearly all of its history. The earliest record of using

chocolate dates back before the Olmec. In November 2007, archaeologists reported finding

evidence of the oldest known cultivation and use of cacao at a site in Puerto Escondido,

Honduras, dating from about 1100 to 1400 BC. The residues found and the kind of vessel

they were found in indicate that the initial use of cacao was not simply as a beverage, but the

white pulp around the cacao beans was likely used as a source of fermentable sugars for an

alcoholic drink. The Maya civilization grew cacao trees in their backyard, and used the cacao

seeds it produced to make a frothy, bitter drink. Documents in Maya hieroglyphs stated that

chocolate was used for ceremonial purposes, in addition to everyday life. [9] The chocolate

residue found in an early ancient Maya pot in Río Azul, Guatemala, suggests that Maya were

drinking chocolate around 400 AD. In the New World, chocolate was consumed in a bitter,

spicy drink called xocoatl, and was often flavored with vanilla, chile pepper, and achiote

(known today as annatto).[10] Xocoatl was believed to fight fatigue, a belief that is probably

attributable to the theobromine content. Chocolate was also an important luxury good

throughout pre-Columbian Mesoamerica, and cacao beans were often used as currency. For

example, the Aztecs used a system in which one turkey cost one hundred cacao beans and

one fresh avocado was worth three beans. South American and European cultures have used

cocoa to treat diarrhea for hundreds of years. All of the areas that were conquered by the

Aztecs that grew cacao beans were ordered to pay them as a tax, or as the Aztecs called it, a

"tribute".[14]

Until the 16th century, no European had ever heard of the popular drink from the Central and

South American peoples.[15] It was not until the Spanish conquest of the Aztecs that chocolate

36

could be imported to Europe, where it quickly became a court favorite. To keep up with the

high demand for this new drink, Spanish armies began enslaving Mesoamericans to produce

cacao. Even with cacao harvesting becoming a regular business, only royalty and the well-

connected could afford to drink this expensive import.[17] Before long, the Spanish began

growing cacao beans on plantations, and using an African workforce to help manage them.[18]

The situation was different in England. Put simply, anyone with money could buy it. [19] The

first chocolate house opened in London in 1657.[19] In 1689, noted physician and collector

Hans Sloane developed a milk chocolate drink in Jamaica which was initially used by

apothecaries, but later sold to the Cadbury brothers.[20]

For hundreds of years, the chocolate making process remained unchanged. When the people

saw the Industrial Revolution arrive, many changes occurred that brought about the food

today in its modern form. A Dutch family's (van Houten) inventions made mass production of

shiny, tasty chocolate bars and related products possible. In the 1700s, mechanical mills were

created that squeezed out cocoa butter, which in turn helped to create hard, durable chocolate.

[21] But, it was not until the arrival of the Industrial Revolution that these mills were put to

bigger use. Not long after the revolution cooled down, companies began advertising this new

invention to sell many of the chocolate treats we see today. [22] When new machines were

produced, people began experiencing and consuming chocolate worldwide.[23]

37

A half beat of milk chocolate with salmiak filling by Fazer

Several types of chocolate can be distinguished. Pure, unsweetened chocolate contains

primarily cocoa solids and cocoa butter in varying proportions. Much of the chocolate

consumed today is in the form of sweet chocolate, combining chocolate with sugar. Milk

chocolate is sweet chocolate that additionally contains milk powder or condensed milk.

"White chocolate" contains cocoa butter, sugar, and milk but no cocoa solids. Chocolate

contains alkaloids such as theobromine and phenethylamine, which have some physiological

effects in humans, but the presence of theobromine renders it toxic to some animals, such as

dogs and cats.[24]. It has been linked to serotonin levels in the brain. Dark chocolate has

recently been promoted for its health benefits, as it seems to possess substantial amount of

antioxidants that reduce the formation of free radicals.

White chocolate is formed from a mixture of sugar, cocoa butter, and milk solids. Although

its texture is similar to milk and dark chocolate, it does not contain any cocoa solids. Because

of this, many countries do not consider white chocolate as chocolate at all.[25] Although first

introduced by Hebert Candies in 1955, Mars, Incorporated was the first to produce white

38

chocolate within the United States. Because it does not contain any cocoa solids, white

chocolate does not contain any theobromine, meaning it can be consumed by animals.

Dark chocolate is produced by adding fat and sugar to the cacao mixture. The U.S.

Government calls this "sweet chocolate", and requires a 15% concentration of chocolate

liquor. European rules specify a minimum of 35% cocoa solids.[26] Dark chocolate, with its

high cocoa content, is a rich source of the flavonoids epicatechin and gallic acid, which are

thought to possess cardioprotective properties. Dark chocolate has also been said to reduce

the possibility of a heart attack when consumed regularly in small amounts.[27] Semisweet

chocolate is a dark chocolate with a low sugar content. Bittersweet chocolate is chocolate

liquor to which some sugar (typically a third), more cocoa butter, vanilla and sometimes

lecithin have been added. It has less sugar and more liquor than semisweet chocolate, but the

two are interchangeable in baking.

Unsweetened chocolate is pure chocolate liquor, also known as bitter or baking chocolate. It

is unadulterated chocolate: the pure, ground, roasted chocolate beans impart a strong, deep

chocolate flavor.

39

ICE CREAM

Strawberry ice cream

Caramel ice cream

Ice cream or ice-cream (originally iced cream) is a frozen dessert usually made from dairy

products, such as milk and cream, combined with fruits or other ingredients. Most varieties

contain sugar, although some are made with other sweeteners. In some cases, artificial

flavorings and colorings are used in addition to (or in replacement of) the natural ingredients.

This mixture is stirred slowly while cooling to prevent large ice crystals from forming; the

result is a smoothly textured ice cream.40

The meaning of the term ice cream varies from one country to another. Terms like frozen

custard, frozen yogurt, sorbet, gelato and others are used to distinguish different varieties and

styles. In some countries, like the USA, the term ice cream applies only to a specific variety,

and their governments regulate the commercial use of all these terms based on quantities of

ingredients.[1] In others, like Italy and Argentina, one word is used for all the variants.

Alternatives made from soy milk, rice milk, and goat milk are available to those who are

unable to enjoy traditional ice cream due to lactose intolerance or allergy to dairy protein.

41

BABY FOOD

Baby with a bib on eating pureed green beans.

Baby food is any food, other than breastmilk or infant formula, that is given specifically to

infants, roughly between the ages of four months to two years. The food comes in multiple

varieties and tastes, can be produced by many manufacturers, or may be table food that the

rest of the family is eating, mashed up. A common trait of the many different baby foods is

that they are designed for ease of eating; either a soft, liquidy paste or an easily chewed food.

This is because infants lack teeth and experience in eating.

Nutrition

Babies typically move to consuming baby food once nursing or formula is not sufficient for

the child's appetite. Babies do not need to have teeth to transition to eating solid foods. Teeth,

however, normally do begin to show up at this age. Care should be taken with certain foods

that pose a choking hazard such as undercooked vegetables, or food that may contain bones.

No salt should be added to baby food as it may damage the babies' kidneys and babies can

42

not taste salt. Babies should begin eating liquid style baby food, sometimes mixed with rice

cereal and formula, or breast milk. Pureed vegetables and fruits are an example of liquid style

baby food. Then as baby is better able to chew, small, soft pieces or lumps may be included.

Care should be taken, as babies with teeth have the ability to break off pieces of food but they

do not possess the back molars to grind, so concerned parents should carefully mash or break

baby food into manageable pieces for baby. Around 6 months of age, babies may begin to

feed themselves (picking up food pieces with hands, using the whole fist, or later the pincer

grasp- thumb and forefinger) with help from parents.

It is often recommended to give baby solid food at around 6 months of age, but babies differ

greatly. The only good way to know when to introduce baby food is to watch for signs of

readiness in the child. Signs of readiness include the ability to sit without help, loss of tongue

thrust and the display of active interest in food that others are eating. Baby may be started

directly on normal family food if attention is given to choking hazards, this is referred to as

baby-led weaning. Because breast milk takes on the flavor of foods eaten by the mother,

these foods are especially good choices.

If there is a family history of allergies, one may wish to introduce only one new food at a

time, leaving a few days in between to notice any reactions that would indicate a food allergy

or sensitivity. This way if baby is unable to tolerate a certain food then it can be determined

which food is causing the reaction.

In the 20th century, it was common to start infants on solid food from 4+ months onwards –

however current research and WHO/UNICEF "Baby Friendly" guidelines recommend only

breast milk until at least 6 months of age.

43

Health

As a global public health recommendation, the World Health Organization recommends that

infants should be exclusively breastfed for the first six months of life to achieve optimal

growth, development and health. Six month old infants are physiologically and

developmentally ready for new foods, textures and modes of feeding. [1] Experts advising the

World Health Assembly have provided evidence that introducing solids earlier than six

months increases babies' chances of illness, without improving growth.[2]

One of the health concerns associated with the introduction of solid foods before six months

is iron defficiency. The early introduction of complementary foods may satisfy the hunger of

the infant, resulting in less frequent breastfeeding and ultimately less milk production in the

mother. Because iron absorption from human milk is depressed when the milk is in contact

with other foods in the proximal small bowel, early use of complementary foods may

increase the risk of iron depletion and anemia.

44

EVER-GROWING RANGE OF 'TASTEFUL' NESTLE BRAND

Milk Products & Nutrition From shelf-stable solution to chilled dairy

Beverages Drink to an active life with Nestlé Beverages.

Prepared Dishes & Cooking Aids Preparing well balanced meals is a snap with

Nestlé.

Chocolates & Confectionery Delighting the senses with a range of tastes and

textures.

45

Milk Products & Nutrition from shelf-stable solution to chilled dairy

NESTLÉ EVERYDAY Dairy Whitener is a creamy Dairy Whitener

specially made to add a rich, smooth taste to your tea. Every time, every

day.

A Partly Skimmed Sweetened Condensed Milk, NESTLÉ MILKMAID is

a versatile product and excellent as a dessert ingredient. With

MILKMAID, you can whip up lip-smacking desserts for your family in

the shortest possible time.

46

Beverages Drink to an active life with Nestlé Beverages

NESCAFÈ CLASSIC is a 100% pure coffee and is made from carefully selected

coffee beans picked from the finest plantations, blended and roasted to

perfection to created the unique rich and smooth NESCAFÈ taste .

47

NESCAFÈ SUNRISE is an Instant Coffee-Chicory blend, popular for its robust

body and a flavor akin to fresh roast-and-ground coffee. The secret lies in the

right blend of flavourful coffee and roasted chicory to give you an

incomparable experience.

NESTEA Tea Bags are made from the finest blend of Assam Teas, which give a

refreshing cup of bright, coloury tea of fair strength and superior taste. They

are available both in individually enveloped and non-enveloped formats .

A wide range of premixes for the vending machines. The basket of products include

NESCAFÈ Classic, NESCAFÈ Frappe, Tea Premix (Plain, Cardamom), Hot

Chocolate, Iced Tea (Lemon, Peach, Apple), and Badam (Almond) Milk vending

mixes.

48

Chocolates & Confectionery Delighting the senses with a

range of tastes and textures

NESTLÉ KITKAT are delicious crisp wafer fingers covered with chocolayer. Our

special tropicalized recipe ensures that NESTLÉ KITKAT is preserved even in

warmer climates.

Extremely popular in India, NESTLÉ MUNCH is wafer layer covered with

delicious chocolayer. A crispy light irresistible snack!

49

NESTLÉ BAR-ONE is a luscious nougat and caramel core covered with a delicious

chocolayer.

POLO is a mint roll popularly described as ‘The Mint with the hole’. Now also in

the new extra strong singles format as POLO Powermint.

50

MAGGI NOODLES

A packet of masala (spices) flavoured Maggi noodles from India.

Maggi noodles is a brand of instant noodles manufactured by Nestle. The brand is popular in

India, South Africa, Brazil, Nepal, New Zealand, Australia, Malaysia, Singapore, Pakistan

and the Philippines; in several countries it is also known as "maggi mee". Maggi noodles are

part of the Maggi family, a Nestlé brand of instant soups, stocks and noodles. In Malaysia,

there are fried noodles made from maggi noodles known as Maggi goreng. Maggi noodles

recently introduced a new variety of its noodles, to cater for the health conscious like 'No

MSG', 'Less Salt' and 'No Trans fat'. A wholewheat flour based noodle variation marketed by

the name "Vegetable Atta Noodles" has been introduced in India (Atta flour is used in

preparing most forms of wheat based breads in India) and caters to health conscious buyers

wary of the refined flour used in the regular Maggi noodles. This move helps the brand in

India as suburban mothers, who feed the noodles to children as an afterschool snack, are the

primary customers of the brand. Recently a line of Rice noodles and Whole wheat with

51

pulses, carrots, beans and onions has also been introduced in India. In fact, "Maggi" has

become a genericized name for instant noodles in India and Malaysia.

In mid 2008, New Zealand supermarkets introduced replacement formulations for its Beef,

Oriental and Curry flavours. A new feature is an extra sachet containing dehydrated

vegetables. Maggi claims the new range contains 88% less total fat and 86% less saturated fat

than the average of top-three (unnamed) 2-minute-noodle competitors. The new Maggi range

also has considerably lower fat than its own previous formulation. However, the salt content

has been increased by 31 percent. Consumers have not reacted well to the new formulations,

complaining they are tasteless.

Preparation

Maggi noodles take around 2 minutes to cook, hence the name "2 minute noodles". The

Maggi noodle cake and seasoning is added into boiling water for two minutes and it is ready

for consumption. Egg, seaweed or lemon can also be added to the noodles for a better

flavour.

Flavours and Variety

Maggi Noodles are available in a large assortment of different flavours.

They are:

Original Flavour

Chicken

52

Curry (a healthier alternative is also sold in supermarkets)

Kari Letup (Extremely Spicy Curry) in Malaysia

Laksa Lemak (discontinued)

Tom yam

Chicken & Corn

Beef

Oriental

Masala

Prawn

Dal Sambar ( whole wheat noodles )

Asam Laksa

Cheese

Pizza (only in Saudi Arabia, was available for a period of time in Australia.)

Sup Tulang (bone soup) (in Malaysia)

Chatpata

Tomato

Stronger Chicken

Vegetable Atta Noodles ( whole wheat noodles )mostly in India 53

Shahi Pulao ( rice noodles )

Chilly Chow ( rice noodles )

Lemon Masala ( rice noodles)

Mi Goreng Char Mee

Mi Goreng Kicap Bawang

Mi Goreng Pluz Asli

Mi Goreng Asli Pedas

OBJECTIVES OF THE STUDY

54

To understand the branding behavior of Nestle India Ltd. in Lucknow

To know how Nestle establish their various products in market.

To study about buying behavior of customers for Nestle products.

To study the customer satisfaction for Nestle products.

LIMITATIONS OF STUDY

55

The problem or limitations faced were associated to the data collection

process and respondents are discussed here. The problems associated with the

respondents are the non-sampling errors.

There were some limitations in process of research: -

The population of Lucknow city is near about 2-5 lacs but data collected only

from 50 consumers. This sample size is small to ensure highly accurate results.

The time taken for the project work, only eight weeks, is very less and, so

Small number of samples was considered. .

All consumers are not alike. Thus the results may not hold true for every individual.

As per the project involved the marketing research using questionnaires, views expressed

by the respondents are confined to elements of questionnaire. But I tried to get more

information through general question so that I could reach at the clear picture of the

situation..

In other limitation I would like to identity time and cost limitation which I faced. Cost is

also an important factor and the investment that I made on this project is not sufficient.

The sample size is, of course, is not enough for any research.

RESEARCH METHODOLOGY56

(1). Method of Data Collection- Survey through Questionnaire

(2). Data Source-

Primary source - Questionnaire

Secondary source - Website, newspaper, books, magazines

(3). Universe - Lucknow

(4). Sample Size - 100

(5) Sample Unit - Customer.

(6). Sample Type / Technique – Convenience Sampling

(7). Research Type – Exploratory Research

Research:

57

Viewing a particular phenomenon that already exists is called as Research. In other words,

searching and doing study on any existing substance from the universe is called as Research.

A universe is the total population on which the research study is to be done or is being

conducted.

Methodology:

The Methodology contains the steps involved in the research, which are used to solve

problems research.

Components of research problem

There must be an individual or a group of individuals, which has some difficulty or

some problems.

There must be some objectives to be attained.

There must be some alternative means to obtain the objectives.

There must be some environment.

Why we study research methodology?

58

To get an inside about every knowledge.

To determine the association of one activity with another activity.

To determine the characteristics of an individual or a group of individuals or various

activities or their frequency of occurrence.

Importance of research methodology in management:

Helps the managers to take good decisions.

Provide the managers, more knowledge and better information.

Helps the management for new product development.

Availability of improved techniques and tools to meet this need .

Helps in customer satisfaction

Types of research:

Two types of research are there..

1) Exploratory research

2) Conclusive research.

Conclusive research is further divided into Descriptive research and Experimentation

research.

Sources of data collection:

59

Primary sources:

The data are collected directly from the universe by using questioner on the basis of general

and specific. these are the original sources from which the researcher directly gathers data

which are not previously referred.

Secondary sources:

The data are collected from the secondary sources such as magazines, journals, etc. These

sources consist of already variable data in the form of statements, and reports, which may

include sensory reports, financial statements of the company, reports of governments

departments, etc.

Method of data collection:

Questionnaire is the method of data collection, which is very much popular, particularly in

big cities. Different modes of questions are put up on the paper and the particular universe, on

which the research is conducted, are asked to fill their responses.

Process of research methodology:

There are different steps involved in the process of research methodology. They are as

follows:

Formulation of the problem

Research design

Sources of data collection

60

Determining sample design and sample size

Organizing and conducting field survey

Analysis of data

Research report

This is the most important stage as poorly defined problems caused confusion and do not

allow the researcher to rebel the good research development.

The problem that I have formulated in my research project is, to find the consumer preference

about various products of nestle by analyzing the buying behaviors, their expectations about

the products, total market including market demand, customer satisfaction, sales forecast,

company demand, company share , etc.

Research design/ research type

It is the arrangement of conditions, perfection and analysis of data that aims to combine

relevance to research purpose with the economy procedure.

The type of research design that I have selected is Exploratory Research design. I have done

the research on various characteristics segmented according to the Income Level.

Sources of data collection:

Researcher has to decide whether to use primary data or secondary data or to use the both.

The data should be matching with the objectives spread out by the researcher.

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In my research project both primary sources and secondary sources are selected for data

collection. I have prepared a series of questions in the questionnaire for the survey and have

taken the help of websites and news papers to know about the company.

. The primary data of the survey is collected by personally contracting

to the nestle consumers, whereas the secondary data is collected mainly through

Internet and the reports available in the area office of Nestle.

The collected data is then, edited, tabulated and analyzed and then it is

presented here in the form of pie charts, which are easy to understand so that any reader can

have minimum problems and can easy go through the report.

Sample design and Sample size:

The sample size of the universe in my project has been taken according to the income level

and age.

DATA ANALYSIS

1 Do you consume Nestle products?

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93%

7%

Yes

No

INTERPRETATION: 93% of consumers consume nestle product were only 7% not

consume .

2 If yes, what all product do you normally buy?

32%

25%

31%

12%Nescafe

Maggi

Chochlate

Milk product

INTERPRETATION: 32% of consumers mostly buy Nescafe , 31% chocolates, 25%

Maggi and 12% milk products.

3. How often do you buy nestle product?

63

30%

44%

26%Per day

Week

Month

INTERPERTATION: 44% of consumers buy nestle products weekly, 30% Perday and

26% monthly.

4. Please rank the following attributes in a nestle product on a scale

of 1-7 according to their importance to you?

68%

52%25%30%

43%

35%

41%

Taste

Quality

Packaging

Brand image

Flavour

Price

Add-ons

INTERPERETATION: 68% consumers give most importance to taste, 52% to quality,

43% to flavor, 41% to add-ons, 35% to price, 30% to brand image and were only 25% least

importance to packaging.

5. What influenced you to buy the above stated brand(s)?

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50%

20%2%4%

7%17%

Adversrtiment

Word of mouth

Attractivepackging

Dealer

Shop Display

Family/Friends/Relatives

INTERPRETATION: 50% of consumers say that advertising is the most common factor,

20% word of mouth, 17% by family, friends & relatives, 7% by shop display, 4% dealer and

only 2% by attractive packaging that influence them to buy the selected brand .

6. How do you rate the idea of nestle brand(s) being made available at the

following outlets?

INTERPERTATION: 32% consumers prefer kirana stores, 16% stationary shop, 10%

ice-cream shop and gift shop, 5% fast-food joints, 4% sweet shop, 2% milk booths, road side

kiosk and least to panshops .

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7. If a particular brand is not available with the retailer, you

will?

7%

53%

40%

Drop the idea ofbuying a Nestleproduct

Go to anotherretail outlet

Try another(competitors)brandl

INTERPERTATION: 53% of consumers say that they will go to another retail outlet,

40% say’s that they will try another brand and 7% say’s thst they will drop the idea of buying

a nestle products .

8. Your purchase (of a nestle product) is:

20%

56%

13%11% As a gift

Casual Puraches

Energy Snacks

Occasion- led

INTERPERTATION: 56% consumers purchase it as a casual purchase, 20% as a gift,

13% as a energy snacks and 11% occasion- led

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9. The price of nestle brand is:

10%16%

70%

4%

Very Expensive

Resonablle

ModerateExpensive

Value of moneypricing

INTERPERTATION: 70% consumers say that price is moderate expensive, 16% say’s

reasonable, 10% very expensive and 4% value of money pricing .

10. If your favorite brands is few Rs expensive would you go for it?

67%

33%

Yes

No

INTERPERTATION: 67% consumers say that if their favorite brand is few Rs expensive

they will go for it and only 33% will not go for it.

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11. Do you often pick up a nestle product while you make other purchases?

70%

30%

Yes

No

INTERPERTATION: 70% often pick nestle products, while only 30% make other

purchases.

12. Are you satisfied with the kind of brand available in India.?

72%

8%

20%Much

Less

Moderate

INTERPERTATION: 72% of consumers say that they are Much satisfied, 20% Moderate,

8% Less satisfied with the kind of brand available in India .

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FINDINGS

From the above data analysis the findings which were observed are mentioned below:

1. Majority of people preferred Nestle products.

2. Ratio of purchasing several products of the Nestle brand was good.

3. Purchase is done more often done weekly than daily.

4. Rating Nestle on its attributes, taste got highest number of votes.

5. 50% of people were influenced by the advertisements of the brand.

6. It was found that Nestle is available in almost every outlet.

7. It was also found that in case of non availability of the product in one outlet, customer will

switch to other one rather than changing the product demand.

8. Majority of people purchased the product casually.

9. It was found that people believe that price of Nestle products is moderate and in case if it

gets a bit expensive also their preference would not change.

10. 70% of customer pick nestle product while making other purchases.

11. The level of satisfaction was very high with the brand.

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RECOMMENDATIONS

1 ) S u p p l y o f N e s t l e p r o d u c t i s n o t g o o d i n I n t e r i o r a r e a . E v e n

t h e r e e x i s t s d i s s a t i s f a c t i o n i n s o m e u r b a n a r e a ’ s a l s o , S o I

s u g g e s t t o t h e c o m p a n y t o c h e c k t h e s u p p l y o f p r o d u c t

r e g u l a r l y a n d t i m e l y t o a l l t h e r e t a i l e r s .

2 ) T h e r e i s n e e d f o r h o r d i n g , b a n n e r s , p o s t e r s , a n d g l o w

s i g n b o a r d s i n t h a t l o c a l i t y a n d c i t y i n o r d e r t o h a v e b r a n d

r e o r g a n i z a t i o n a n d r e c a l l v a l u e . .

3 ) T h e r e s h o u l d b e p r o p e r d i s t r i b u t i o n c h a n n e l $ a v a i l a b i l i t y o f

t h e p r o d u c t r e g u l a r l y a n d t i m e l y t o e a c h r e t a i l e r , e i t h e r s h o p

i s s m a l l o r b i g .

4 ) S a l e s m a n a g e r g o t o t h e r e t a i l e r s h o p a n d t a l k t h e m a b o u t

t h e i r c o n s u m e r p r o b l e m .

5 ) R e t a i l e r ’ s b e h a v i o r i s a l s o d i r e c t l y a f f e c t p r o m o t i o n o f t h e

p r o d u c t s o t h e r e t a i l e r ’ s b e h a v i o r s h o u l d b e b e t t e r w i t h

c o n s u m e r .

I n s o m e a r e a ’ s N e s t l e p r o d u c t l i k e C u r d , w a s n o t a v a i l a b l e d u e t o

t h i s c o n s u m e r w e r e a n n o y e d a n d t h e y w e r e c o m p l a i n i n g s o i t i s

s u g g e s t e d t o t h e s e l l s m a n a n d r e l a t e d o f f i c e r t o p a y a g o o d

a t t e n t i o n o t h e r w i s e i t w i l l a f f e c t i n l o n g .

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CONCLUSION

Consumer preference about various products of Nestle Brand is that the most of the

consumers consume nestle products daily, weekly, monthly they buy Nescafe, Maggie,

chocolate, Milk products and many other things . The best things they like in the products is

taste and after that the quality, flavor, price, brand-image and other things, least they prefer

packaging. Advertising is the main factors that influence them to buy and other factors as

word of mouth, family, friends & relatives, shop display, dealers, also. Most of the consumers

prefer to buy the products from kirana stores, stationary shop, Ice- cream parlors, sweet shop

and fast-food joints. They purchase it as a casual purchase, as a gift, energy snacks, occasion-

led and others because the price of nestle brand is moderate expensive, reasonable, very

expensive and a value of money pricing. Most consumers say that if their favorite brand is

few Rs expensive they will go for it. Most of them say that they often pick up a nestle product

while they make other purchases and the consumers are happy with the kind of brand

available in India.

So therefore it seems that the consumers are satisfied with nestle.

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BIBLIOGRAPHY

BOOKS

Kotler, Philip and Armstrong, Graw - Principles of Marketing, Pearson Education,

New Delhi 2004.

Kotler, Philip - Marketing Management: Analysis, Planning, Implementations and

Control, Pearson Education, New Delhi. 2003, 11th ed.McGraw-Hill, 2002

DAILYS & JOURNALS

Business World

Business Today

The Economic Times

The times of India, Hindustan times, Hindustan, I next

INTERNET

www.nestle.in

www.nestle.com

www.indiainfoline.com

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QUESTIONNAIRE

1. Name: ...................................... 2.

Age.......................................

3. Sex: Male / Female 4. Marital Status: Married /

Unmarried

5. Occupation:

6. Monthly Family Income:

7. Do you consume nestle product?

8. If yes, what all product do you normally buy?

NO YES

Above Rs. 15,000

Rs. 10,000 - Rs. 15,000

Rs. 5,000 - Rs. 10,000

Below Rs. 5,000

Professional

Business

Student

9. How often do you buy nestle product?

(No.) nestle product per day / week / month

10. Please rank the following attributes in a nestle product on a scale of 1-7

according to their importance to you? (1-most important, 7-least important)

11. What influenced you to buy the above stated brand(s)?

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Attractive Packaging

Word of mouth Advertising

Add-ons (Wafers, nuts, etc.)

Price

Flavour Brand Image

Packaging

Quality Taste

Add-ons (Wafers, nuts, etc.)

Price

Milk product Chocolates

Maggi Nescafe(coffee)

12. How do you rate the idea of nestle brand(s) being made available at the

following outlets? (Please rate on a scale of 1-5, where 1 is most preferred and 5

is least preferred).

13. If a particular brand is not available with the retailer, you will:

14. You like the advertisements because of:

75

Good theme, models, music

Trendy set-up

Try another (competitor’s) brand

Go to another retail outlet

Drop the idea of buying a Nestle product.

Exclusive Chocolate Parlours

Road-side Kiosks

Kirana store Milk Booths

Fast Food Joints

Ice-cream Parlours Stationary Shops

Gift Shops

Sweet Shops Pan Shops

Family/Friend/Relatives

Shop Display Dealer

……………

15. Your purchase (of a nestle product) is:

16. The price of nestle brand is:

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Occasion-led (say on a Birthday, etc.)

Energy snack

Casual purchase

As a gift

Others (Please specify)

Seems nearer to life & mood elevator

17. If your favorites brand is a few Rupees expensive than it is, you would still go

for it:

18. Do you often pick up a nestle product while you make other purchases:

19. Are you satisfied with the kind of nestle brands available in India, today?

Much Less Moderate

66

NO YES

NO YES

Value of money pricing

Moderate expensive

Reasonable

Very Expensive