Marketing Positioning Nestle (2) 1y2gc

A PROJECT REPORT ON MARKET POSTIONING OF NESTLE,S MUNCH MAGGI & MILO

NESTLE MOGA FACTORY SUBMITTED AS PARTIAL FULFILMENT OF POST GRADUATE PROGRAMME IN EXECUTIVE LEADERSHIP SUBMITTED TO

SUBMITTED BY

Ms. RAMITA VERMA

SUKHJINDERPAL SINGH 80916317041

SHRI RAGHUNATH RAI MEMORIAL SCHOOL OF MANAGEMENT BANNUR(PATIALA)

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Certificate of completion This is to certify that Mr. Sukhjinder Pal singh, Roll no. 80916317041 was assigned the project entitled “Market Postioning of Nestle’s 3 M’s

Moga Factory”.He has

submitted the project in accordance with the guidelines issued by the University. To the best of my knowledge and belief this is his original work and has not been submitted elsewhere for award of any other degree\diploma.

Ms. RAMITA VERMA Date: __________

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PREFACE For the completion of the MBA, it has been mandatory to obtain an industrial in Marketing. This training session really help me in gathering practical knowledge of market. I have prepared this project on the topic, “Study of Market Postioning

of

Nestle’s 3 M’s Moga Factory” in which I have written about overview of Mareketing condition of Nestle Moga Factory. This report is prepared during summer training is life’s greatest treasure as it is full of experience observation and knowledge. The training held was very gainful as it took us close to real life. This period also provide a chance to observe theoretical knowledge and practical shape and learn from results. This report is a result of six weeks training that I have been taken at Nestle Moga. It has been very educative and fruitful experience for me, for it has give me an insight into some practical experience without which classroom knowledge can be regarded incomplete. I wish this great organization success so it may flourish and serve the nation and have to achieve many goals.

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ACKNOWLEDGEMENT

Before I get into the details of my project, I would like to show my sincere gratitude by adding few heart full words for the people who were part of this project report in numerous ways. People who gave unending right from the stage the project were conceived. I would like to give a special thanks to Mr. ABHISHEK SHARMA

(Marketing

Manager) for granting me the project. I am indebted to him for the active involvement in the extensive discussions, which have taken place over the past month despite his busy schedule. He has been an invaluable source of thoughtful comments and conceptual insights and I would like to thank him for the intellectual input and help in conceptualizing the project. I would also like to express my thanks to Mr. Lalit Sehgal (Sales Officer) for providing me the opportunity to do my summers at Nestle Moga Factory. I

would

also

like

to

thank

Mr.

Subhash

Aggarwal

(s

Officer

), Mr. Ashok Pandit (RM/PM Warehouse Incharge) and Mr. Jaswinder Singh (s) for the cooperation and intellectual counsel they gave me throughout the work on this project. They were the people whose guidance helped me in the successful completion of the project. I would also like to thank all the contractors people in Plant and block who have directly or indirectly have contributed to the completion of the project.

Sincerely, Sukhjinderpal Singh

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DECLARATION I, SUKHJINDERPAL SINGH, hereby certify that the work embodied in the research project “Market Postioning of Nestle’s Munch, Milo & Maggi” for the partial fulfillment of Degree of Master of Business istration program of Punjab Technical University, Jalandhar from Shri Raghunath Rai Memorial School Of Management Bannur(Patiala) is an original work of mine and data provided in the study is authentic to the best of my knowledge. I have not submitted this report to any other institute or University for award of any other degree.

SUKHJINDERPAL SINGH

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TABLE OF CONTENTS INTRODUCTION - A WORD ABOUT NESTLE.............................................9 NESTLÉ PHILOSPHY..................................................................................................10 PRODUCT RANGE OF NESTLÉ................................................................................10 OPERATIONS IN INDIA ............................................................................................11 NESTLÉ INDIA HAS SIX FACTORIES IN THE COUNTRY...................................12 INDIA HAS THE CO-PACKING ARRANGEMENT ALSO:....................................13 SALIENT FEATURE OF MOGA FACTORY.............................................................14 NESTLE – THE ORGANIZATION.............................................................................19 CONTRIBUTION OF NESTLÉ TOWARDS ECONOMIC & SOCIAL DEVELOPMENT AREA..............................................................................................19 NESTLÉ TODAY .........................................................................................................20 CORPORATE OBJECTIVES.......................................................................................21 PRESENT FINANCIAL POSITION OF THE COMPANY........................................21 LATEST DEVELOPMENTS........................................................................................22 “ ORGANISATION STRUCTURE OF NESTLE INDIA, MOGA FACTORY.”.......23 INTRODUCTION ........................................................................................................24 FUNCTIONS.................................................................................................................24 ............................................................................................................26 .......................................................................................................26 POSITIONING ACCORDING TO RIES AND TROUT.............................................28 POSITIONING ACCORDING TO TREACY AND WIERSEMA .............................30 POSITIONING: HOW MANY IDEAS TO PROMOTE?............................................31 COMMUNICATING THE COMPANY’S POSITIONING ........................................32 ADDING FURTHER DIFFERENTIATION ...............................................................34 DIFFERENTIATION TOOLS......................................................................................35 MISTAKES....................................................................................................................36 MARKET POSITIONING............................................................................................36 POSITIONING STRATEGIES ....................................................................................36 FOUR TYPES OF OPPORTUNITIES .........................................................................36 RESEARCH METHODOLOGY FOR THE REPORT.................................................40 Q1: Are you aware of Nestle’s Munch, Milo and Maggi?.......................43 Munch: Yes No............................................................43 Milo Yes No............................................................43 Maggi: Yes No.............................................................43 Q2: Have you come across the ments? If yes, then where?. .43 Newspapers Magzines TV................................43 Q3: When do you like to consume Maggi generally?............................43 ...........................................................................................................43 Morning Lunchtime Evening Anytime............43 Q4: How many Maggis you consume in a week?..................................43 6

Never consume 1-5 6-10 11-15 16-20 . . .43 More than 20.......................................................................................43 Q5: What do you say about the taste of Maggi?..................................43 Very good Good Satisfactory Not good.............43 Q6: What modifications do you want in Maggi?...................................43 Improve taste Less price Packing .........43 No modification .........................................................................43 Q7: Which is favourite chocolate?........................................................43 Cadbury dairy milk Nestle’s Munch Others..............43 Q8: How do you rate the taste of Nestle’s Munch?..............................43 Excellent Good Satisfactory Not good...........44 Can’t say..............................................................................................44 Q9: Which health drink is more popular from your point of view?.......44 Bournvita Nestle’s Milo Others.......................44 Q10: When do you want to take the health drinks generally?.............44 Morning Lunchtime Evening Anytime..................44 Q11: How do you rate the taste of Nestle’s health drink Milo?............44 Excellent Good Satisfactory Not good .44 Can’t say..............................................................................................44 ...................................................................................................44 ........................................................................................................44 ..................................................................................................44 MARKET SURVEY..................................................................................45 ANALYSIS AND GRAPHS........................................................................45 Q9. Which is the common health drink?...............................................54 People generally prefer Bournvita than Milo as a health drink.............54 Q10. When do you take health drinks generally?.................................55 People generally take health drinks in Morning but some even prefer in evening................................................................................................55 Q11. What do you say about the taste of Milo?....................................56 Taste of Nestle’s Milo is Good..............................................................56 ..........................................................................................................56 LIMITATIONS ........................................................................................57 AND .....................................................................................................57 PROBLEMS............................................................................................57 .............................................................................................59 .................................................................................................59 After analyzing properly the information gathered through the mentioned methodology, we come to the following findings about Nestle’s Munch, Milo and Maggi:..........................................................60 ............................................................................................................60 About Nestle’s Maggi:..........................................................................62 From the above analysis and findings, we can conclude that Nestle enjoys a strong Market Position in case of its product Maggi among its competitors. Its competitors like Top ramen smoodles, Pasta do not stand in front of Nestle’s Maggi. Mostly people have come 7

across its ment in TV, Newspapers, Magzines. They find its taste very good. But survey points out that its price should be reviewed. People want a reduction in its price. Above all, We can conclude that Nestle’s Maggi is KING in its product area. ...................62 About Nestle’s chocolate Munch:.........................................................62 As far as Nestle’s Munch is concerned, it does not enjoy a good market position. Its competitors Cadbury has a strong position over it. People rank the chocolates of Cadbury much better than Nestle’s Munch. As far as its price is concerned, people are satisfied. But Nestle will have to do a lot to make the taste of Munch EXCELLENT from satisfactory (pointed in analysis and findings). Thus we conclude that Cadbury gives a strong competition to Nestle’s Munch and makes its position in chocolate market a little weaker. Nestle should provide fridges and shelves to the retailers for the easy storage of Munch. It will also serve as an advertising media................................................62 About Nestle’s Milo:..............................................................................62 From the above study, we can conclude that Nestle’s Milo, a health drink, has a good taste but fails to compete fully with Bournvita. People enjoy Bournvita as a health drink much more than Nestle’s Milo. Thus Nestle’s competitor in the area of health drink is more stronger and makes the market position of Nestle’s Milo a little poor. Nestle will have to do a lot to shake the market position of its competitors and make a good stand over them. For this it can provide good offers at economical and affordable price. It can adopt sales promotion efforts. .............................................................................................................62 Above all, we come to the point that market position of Nestle’s three M i.e Munch, Milo and Maggi enjoys a different status. Maggi is very strong, weakning the position of its competitors but in case of chocolate and health drink, Nestle’s competitors has a strong market position. Thus Nestle has to follow the three different market strategies for its 3Ms.............................................................................................62

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INTRODUCTION - A WORD ABOUT NESTLE

HENRY NESTLÉ (1814 – 1890)

Nestlé India is a multinational company with its worldwide operations in over 70 countries. The founder of Nestlé S. A. was Henry Nestle who from a modest beginning founded the company in 1866 at Switzerland for manufacturing milk powders for babies. At that time Switzerland faced one of the highest infant mortality rate and the milk formula saved the lives of many infants whose mothers were unable to breast feed successfully. At present Nestlé is the world’s largest food company with its international headquarters at Vevey, Switzerland. With almost 500 factories worldwide it employs more than 2 Lac people. Nestlé is often quoted by most as “multinational of multinationals.” There is a good reason, as less than 2% of the turnover comes from the domestic market in Switzerland. Nestlé is very decentralized in its operations and most of the markets are given considerable autonomy in its operation. It is more of a people and products oriented company rather than systems oriented company There are “ unwritten guidelines” which are to be followed, based on common senses and a strong set of moral principals emphasizing a lot of respect for fellow beings. Nestlé has always adapted to the local conditions and at the same time integrates its Swiss heritage. It has always taken a long-term view in the countries in which it operates.

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Therefore, one can see a lot of investment R&D and risk taken in new product areas. There is a great emphasis placed on training by the company. It believes in rewarding and promoting people from within. Today its product brand name ‘Nestlé’ is associated with ‘quality products’ in worldwide consumer markets. NESTLÉ PHILOSPHY When Henri Nestle introduced the first commercial infant formula in 1867, he also created a symbol of the Bird’s nest, graphic translation of his name, which personifies the company’s business. The symbol, which is universally understood, evokes security, motherhood and affection, nature and nourishment, family and tradition. Today it is the central element of Nestlé’s corporate identity and closely parallels the company’s corporate values and culture.

PRODUCT RANGE OF NESTLÉ Its activities include manufacturing and marketing of:  Condensed milk  Powdered milk  Ice creams  Other dairy products  Infant foods  Chocolates & Confectionery items  Tea  Coffee  Culinary products  Frozen products  Fruit juices  Mineral water  Pet foods 10

 Pharmaceuticals and Cosmetics

OPERATIONS IN INDIA Nestlé set up its operations in India, as a trading company in 1912 and began manufacturing at the Moga factory in 1962. The production started with the manufacture of Milkmaid and other product were gradually brought into the fold. Nestlé India Limited was formally incorporated in 1978 prior to which the manufacturing license was issued in the name of the Food Specialties Limited. The corporate office is located at Gurgaon and the ed office at M-5A, Cannaught Circus, and New Delhi. At present Nestlé has 6 manufacturing units countrywide which are successfully engaged in meeting the domestic as well as the exports demand. In addition there are several co packing units. The Moga factory is the largest and the oldest producing the widest range of food products. The other factories are located at: 

Choladi (Tamilnadu)

-- Instant Tea Export 1969



Nanjangud (Karnatka) -- Coffee & Milo 1989



Samalkha (Haryana)



Ponda (Goa)



Bicholim (Goa)

-- Cereals, Milkmaid Deserts 1992 -- Chocolates & Confectionery 1995 -- Noodles and Cold Sauces 1997

Today, the company is manufacturing and Marketing the brands in the following product categories:  Milk and Dietetics  Culinary  Cereals  Instant Drinks  Chocolates and Confectionery

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The distribution comprises of six branches located in Calcutta, Delhi, Mumbai, Chennai, Bangalore and Chandigarh. The distribution network functions efficiently with the transfer of goods from the factories to the Mother Godowns, which in turn are transferred to the clearing and the sales agents. The C&S agents sell it to the cash distribution who make the secondary sale in the market. Presently Nestlé India employs over 3000 employees. In addition, thousands of people are associated with Nestlé, having indirect employment as Milk suppliers, Vendors, Contractors and Distributions etc. The Production group first incepted under the name Food Specialties Ltd. started production at the Moga Factory in early 1962.At the time, with the help of Nestle International; the Company shot into prominence as the countries foremost producer of milk products, particularly baby foods. With time, the nature & extent of the company expanded. The product range, since then, has now diversified so much and to such an extent that it is really a tough task to enumerate all the products of the company on a single sheet of paper After 28 Years of working under the name of Food Specialties Ltd. The company realized that in order to survive in the international competition and to keep up with the changing time a better and closer relationship was required between Nestlé International and its Indian counterpart. So in 1990,a unified production and marketing front, under the name of Nestlé India was conceived. NESTLÉ INDIA HAS SIX FACTORIES IN THE COUNTRY. MOGA FACTORY Moga factory started production in 1962.Today; Moga contributes almost 75% of Nestle India’s total production volume, manufacturing 80,000 tons of food products. It employs 1500 people. The entire range of milks culinary products, cereals and vending mixes is manufactured in Moga. Moga is located in the state of Punjab about 400Kms. north of New Delhi. CHOLADI FACTORY The factory in Choladi started production in 1967. Situated in south India, about 275 kms from Bangalore the factory today has 80 employees. It processes about 500 tons of soluble instant tea, which is all exported. 12

NANJANGUD FACTORY Started production in Nanjangud factory in 1989 which the manufacture of Nescafe Sunrise. Milo manufacture at Nanjangud began in 1996. Situated 160 kms south of Banglore, the factory has 245 employees. Coffee capacity currently is 15,000 tons and Milo 3000 tons per annum. SAMALKHA FACTORY Samalkha factory started production in 1993, it is situated 70 kms from Delhi and it has 203 employees and manufactures about 11,000 tons of food products comprising Cerelac, Nestum and ethnic deserts. Pure Life, treated water and Nestlé Dahi are also being produced here. PONDA FACTORY Ponda Factory began production of Kit Kat in 1995. It is located 40kms from Panjim the capital city of Goa. It has been expanded into other confectionery products viz, Jellies Pastilles, Kools and Chocolate based confectionery. Ponda currently employees 140 people. BICHOLIM FACTORY A satellite factory of Ponda at Bicholim for manufacture of Noodles and Cold Sauces, Operational in 1997. Besides these Nestlé India has co-manufacturing arrangements also. INDIA HAS THE CO-PACKING ARRANGEMENT ALSO: 1.

Nestlé Polo- Bakeman’s (Nagpur)

2.

Chocolates-Campco (Puttur)

3.

Tasters Choice-Williamson Major company (Silliguri)

4.

Toffee-Nutrine (Surinder Nagar)

5.

Pickles-Choride foods Ltd.(Puna)

6.

Cold Sauce 200 gm – Nijjer Agro Pvt.Ltd. Amritsar 7.

Dosa & Samber mix–Indian foods & fermentation Ltd. Nagpur

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SALIENT FEATURE OF MOGA FACTORY Nestlé India Ltd. Moga factory is their oldest factory in India. With a layout spread over nearly 57 acres & having three plants within the factory, and it is also the largest factory among 500 Nestlé Factories worldwide. The Company started milk collection in Moga area on 15th Nov. 1961 and on the first day 510 kgs of milk was collected as from four villages and 180 farmers. From that day onwards company is collecting milk in the morning and night. The capacity has been raised from 40,000 ltrs. of milk per day in 1962 to over 1200,000 ltrs. of milk till date. The factory consists of production plants as under: 1. MILK OPERATIONS 2. POWDER FILLING & PACKING 3. CEREALS 4. INSTANT DRINKS (VENDING MIXES) 5. CULINARY These plants are briefly described in the following fashion: MILK OPERATIONS This plant as the name suggests is engaged in the processing of milk and all the related activities that take place in Moga Factory. This plant can be categorized into a number of sub- plants, which are discussed below in brief: i) FRESH MILK RECEPTION The fresh milk, which is the fundamental constituent of various products, which are manufactured in this factory, is received in this area in tankers. There are 1100 agencies which supply fresh milk. The fresh milk is supplied by various chilling centers including Nestle’s four own milk chilling centers. Testing of fresh milk is done in fresh milk lab and is tested for fat and SNF only .The suppliers are paid only for fat %. In buffalo and cow milk fat varies from 4.5%-5.5% and upto 4% respectively. While a no. of tests are performed on tanker milk. If any one of the tests is found to be positive then the tanker is rejected .The received milk is received in silos after ing through PHEs. The pasteurized milk is stored in six namely A, B, 14

C, D, E and F. The pasteurized is 15,000 polypacks per day. The fat and SNF in it is 4.6% and 8.6%. The milk stored in silos is used in the production of various products in Ghee Plant and Liquid Plant. b) GHEE Plant: The Milk stored silos D and E is used for manufacture of Ghee, which is marked under the brand name EVERYDAY. In this plant milk is ed through two separators. A phase inversion from 40-45% cream in the 70-80% fat in the second is obtained .The final concentration become 97% crude fat. c) DE- Odourisation Plant: If impurities like DDT, HCH etc. are found to be present in the normal Ghee beyond a certain limit (limit for pesticide ratio is 3.5 PPM), then these are removed in D.O. plant using thermic fluid can be headed upto 250 C and due to it normal Ghee is heated upto 210 C and then superheated steam is ed. At this temperature, the impurities like DDT.HCH.get vaporized due to their volatile nature. The de-odorized Ghee is then sent to the liquid plant. LIQUID PLANT this plant is engaged in the processing of milk in the liquid from, prior to the drying operations done in the Egron, that converts it into milk power. However various products such as, SCM & Desert Mixes are produced in the plant, besides the base liquid for drying in Egrons ii) LIQUID PLANT The general process-taking place in the plant can be summarized as follows: The fresh milk received from the silos is first standardised that is the ingredients are added on the basis of the report send by FM lab and the product they are going to manufacture. This is needed, as there are always variation in the conditions at each different batch of milk. After this the milk is boiled with steam under vacuum in evaporators in order to manufacture SCM. No other industry has been able to make this product in all over India. A part of the milk is sent to Egrons in order to get the milk power. This milk power is then blended with certain ingredients in order to manufacture the recently launched products namely dessert mixes. The Ghee filling is also done in these plant HDPE drums.

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iii) EGRONS Egron is a spray drier used to dry the milk, coffee liquid into power from by using hot air, In all there are four egrons in Moga Factory Egron 2,3,4, are used for drying milk powders. The milk is then collected in tote bins and subsequent sent to power filling and packing. POWDER FILLING PLANT: The filling and the packing of milk like Everyday, Lactogens, Nestogen and Cerelac Tin is done in this plant. There are five filling and packing lines for this purpose. Two of these are used in filling of tins & the other two are used for filling polypacks or bag-n-boxes required by the production program and one line is for bulk packing. CEREALS: This plant is engaged in the production of cereal-based baby foods and infant formula. The production process consists of the addition of various Enzymes, Vitamins, Minerals & Fruit extracts to the cereal base. There are three filling and packing lines in the Cereal plant. One is for filling of 400 gm sachets and other for filling of 400gm tins. A 5gm Every Day creamer filling line machinery is also installed in the filling section. Though the manufacturing of products is a continuous three shift operation, only the Flexi runs for three shifts. It s for the filling of the 65% of the manufacture products. The major product of the cereal plant is Cerelac Wheat, Apple, Orange and Vegetable. INSTANT DRINKS: This plant is engaged in the filling of vending pre - mixes. CULINARY: This plant is engaged in the production of Noodles, Tastemakers, Soups, Sauces & the like. The plant is divided into three sections a) NOODLES b) SEASONING c) COLD SAUCES The Operation of the seasoning is inter- related with both the noodle and cold sauce section as the spice mix base for both is manufactured in the seasoning section. 16

However all three have a cast column of jobs taking place & can be briefly discussed as follows: a) Noodles The noodle plant has production lines. The manufacturing of Noodles is a semi automatic process. The noodle line consists of the following processes:  Tipping of wheat flour in the hoppers at the start of the line.  Mixing of dough releasing on the line.  Sheet formation with the help of rollers  Strand formation  Steaming  Frying in oil  Cooling  Wrapping cakes in sachets along with tastemaker.  Palestine of cases However presently the noodle plant has been shifted to the Samalkha factory due to conversion of oil-fried to air-dried noodles. b) Seasoning The seasoning section is engaged it the manufacture of Taste marker soups cubes beside spice mixes for use in cold sauces. The major job in this area is the dry of various spices & powders and then packing them in the desired shape and from. Also the section is engaged in the manufacture of hydrolyzed plant proteins a basic ingredient for most of the seasoning products. The Products of this section are Maggi taste markers: Masala Chicken, Sweet & Sour, Maggi soups (Chicken, Tomato, Mushroom & Vegetable), Maggi Cubes, Maggi Super Seasoning, Mango Wonder-Mix, Maggi Export Mixes. c) Cold Sauces This section is engaged in the manufacturing of a whole range of Sauce under the brand name of “Maggi”.

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The basic manufacturing process is same for all. The line can be briefly described as:  Batch Preparation  Mixing the batch  Pasteurization At this stage the sauce is ready to be filled in the bottles. However the filling line starts before the actual filling takes place. There are three important processes prior to the bottle filling. These are:  Feeding empty bottles on the line  Bottle Washing  Bottle inspection From this the filling line actually starts. The rest of the line is:  Filling  Corking  Cooling  Capping  Labeling  Packing into cases  Shrink wrapping of cases  Palletizing of Cases Line Speed:  135 cases/hr: 1.2kg bottle  187 cases/hr: 600gm bottle The products of this line are Maggi Sauce (Tomato Ketchup, Hot-N-Sweet, Masala Chilli, Chili Garlic & Tomato Sauce) & Maggi Pointed Special (Butter Chicken Karahi Paneer & Italian Pizza Popping) Besides the production plants the major department in this factory are 18

NESTLE – THE ORGANIZATION Some names seem to belong to legend and Nestlé now synonymous with a prestigious trademark and worlds foremost food group originally consisted of two companies Henri Nestle of Vevey Switzerland & Anglo Swiss Condensed Milk Company in Cham. Both companies competed vigorously from 1866- 1905. These groups merged in 1905 and become the starting point of the recent food group. The history of Nestle includes the development of many different products as well as acquisitions mergers and purchasing of interests in other companies. Nestlé is now the No. 1 food company. It is present on all five continents has an annual turnover of nearly 80 Billion Swiss Francs. At present there are around 500 factories in around 77 countries with 200 operating companies One basic research center and 17 technological development groups and has in excess of 200,000 employees. Currently Mr. Peter Brabeck heads the Nestlé group. Nestlé operations worldwide are divides into 3 zones: ZONE EUR

: Europe

ZONE AOA

: Asia and Oceania

ZONE AMS

: Americas

India comes under zone AOA which includes South- East Asian trading giants of the likes of Thailand, Indonesia, Malaysia, Singapore, China etc. besides Australia. Mr. M.W. Garret currently heads ZONE AOA. CONTRIBUTION OF NESTLÉ TOWARDS ECONOMIC & SOCIAL DEVELOPMENT AREA “In the Malwa region of Punjab State, there is a small town, which is popularly known among the famous grain markets of the world.” In 1959 Nestlé took a decision to establish a milk processing factory, very little could the people of Moga town and the farmers in the surrounding villages realized that the company now, Nestlé INDIA LTD., would play such an important role in economic & social development of the area.

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The credit of bringing this town on the industrial map of the world goes to Nestlé – The World Food Company engaged in the largest food processing operations in the world.

NESTLÉ TODAY Today with operation in all of five continents around 81 countries Nestlé employs some 231,881 people and has annual turnover around of newly about 80 billion Swiss Franks. It relies on 523 factories where perishable raw material such as milk, coffee, vegetables, cereals, meat are processed & transferred in form of suitable quality food products. Encouragement for increasing milk production & improving livestock quality. This encouraged the diary farmers to rear good quality milk & to participate with full zeal in future cattle shows. Company has also programmed to highly qualified scientist for providing specialized services to farmers not only in dairy husbandry & fodder production but also in other crops grown in the area.The aim is to work for all-round properity of rural population to improve the economic & social environment of the area. Growth Profile Nestle has been associated with the country since the beginning of the countryimporting & trading in condensed milk & infant foods,manufactured in India in 1962 with the setting up its first factory at Moga, Punjab, since then, five additional factories have been set up in Choladi, Nanjangud, Samalkha, Ponda & Bicholim three of them in the past five years. In its quest to be in every way the leading company in the Indian Food Industry, Nestle has been improving turnover every year. Rapid new product launches is a key propeller for growth & Nestle India has significantly expand it is products portfolio in the recent years launching new products in the last five years than in the previous thirsty years. Year wise turnover in crores: 1996 1997 1998 1999

2000 20

200 1

200 2

200 3

200 4

2005

495

716

1001

1204

1435

161 3

155 2

168 8

193 7

2047.7

CORPORATE OBJECTIVES  Is every way the leading company in the food industry.  Ensure high quality standards in everything the company undertake.  Provide our consumers with superior quality products.  Provide our shareholders with rapid growth and fair return.  Provide our employees a challenging and satisfying work environment.  Be a good corporate citizen and contribute positively to the society in which we operate KEY FOCUS AREAS GROWTH AND POFITS  Maintain profit levels above for the food industry in India.

CONSUMERS  Work towards a situation of total consumer satisfaction.  Ensure speedy and flexibility at all times in meeting the needs of our customers. COMMUNITY  Ensure that all aspects of the company’s operations in line with requirements and social issues. EMPLOYEES  Involves all employees in issues to their work.  Instill in them a sense of orientation, and pride is there own achievements.  Treat all employees fairly to make sure each individual knows what is expected of him, encourage each employee to work towards continuous improvement, provide opportunities for developments. PRESENT FINANCIAL POSITION OF THE COMPANY During the first quarter in the year 2001 the company posted a profit of Rs.4,516 million a growth of 30% over the previous year for the corresponding period. 21

Domestic sales showed an increase of 27% whereas grew by 47% in volume and 52% I value. In the year ending 2000 the company had sales of 16,775 million as compared to the sales in 1999,which stood around 15,439 million. During the year sales grew by 8.7% and profits increased by 20.4%.The company declared a dividend of Rs.6 which made the total dividend payable for the year Rs.14 During 2002 turnover was increased by 110.7Crores as compared to year 2001 The financial position in2003 was favorable mainly due to new product launches and competitive pricing. Overall performance of the company was satisfactory in spite of the slowdown in the industry the company posted considered amount of profits. LATEST DEVELOPMENTS Nestlé SA announced a friendly merger with RALTSEN PURINA SA as the company feels that the pet care industry is a growing industry COCA-COLA and Nestlé strengthen their relationship Nestlé launches new products namely,tamato puree,milky kit kat , maggi pickles Nestlé also launched the GLOBE PROJECT The main objective of this project is to unlock Nestlé potential as a group worldwide India has a fair bit of representation in this project as an Indian heads it and also five more are there in this project This shows the importance of Nestlé India’s in the overall operations of the company

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“ ORGANISATION STRUCTURE OF NESTLE INDIA, MOGA FACTORY.”

FACTORY MANAGER

CONFIDENTIAL SECRETARY

PROD. MANAGER INSTANT DRINKS

PROD. MANAGER CULINARY

ACCTS.NN & W/H MANAGER

AGRI. SERVICES

MANAG

PROD. MANAGER MILK OPERATIONS

ENGG. SERVICES MANAGER

PERSONNEL MANAGER

INDUSTRIAL ENGINEER

SECURITY MANAGER

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PROD. MANAGER CEREALS

QLTY. ASSURANCE MANAGER

CORPORATE AFFAIRS EXEC.

PRODUCTION PLANNING & CONTROL

INTRODUCTION Human Resources Department is a most important part of an organization. It is concerns with human side of business. The various functions are performed in this department. Business activities, which are varied and complicated in nature, cannot be managed without Human Resources Department. Human resources is an important for the running of a business as a main spring is essential for the function of a watch. FUNCTIONS  PLANNING  ORGANISING  STAFFING  DIRECTING  CORRDINATING  CONTROLLING  COMPENSATION AND WELFARE TRAINING PLANNING Planning is the conscious determination of future of action to achieve the desire result.

It leads to economy of operations.

It is a continuous function of office

management and is performed at every level. ORGANISING The plans and polices are executed through the media of organization. Organization is a group of person or employees necessary to perform office.

STAFFING The main function of human resource includes procurement, development, compensation and maintain of persons necessary to do the job. Right person is to be employed at the right time and right place. Care for fair wages, health, safety, persons effectively and efficiently.

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DIRECTING After planning, organizing and staffing the human resources manager has to guide and supervise his subordinates.

In directing the functions includes leadership,

communication, motivation & supervision etc. COORDINATING Coordination means performing tasks in harmony. It is a group effort for united action. A manager directs the organization into action for the achievement of the plan. CONTROLLING Controlling is ing whether everything occurs in conformity with the plan and policies. Planning is necessary for control process. COMPENSATION & WELFARE TRAINING In personnel has now developed into human resource functions. Humans are very important part of personnel. The importance of human resource functions is being realized recently. Human resources function plays an important to achieve the goal of the organization. In NESTLE MOGA the functions of Human Resources Department as are following: ESTABLISHMENT - Personnel records - Policies, salary, survey structure - Other establishment matters. DISCIPLINE AND LEGAL TIME OFFICE AND PAYROLL GENERAL ISTRATIVE AND TRANSPORT TRAINING AND DEVELOPMENT

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Each company and offering must represent a distinctive big idea in the mind of the target, and each company must dream up new features services and guarantees, special rewards for loyal s and new conveniences and enjoyments. Yet even when a company succeeds in distinguishing itself, the differences are short – lived. Competitors are quicker than ever in copying good ideas; therefore companies constantly need to think up new value – adding features are benefits to win the attention and interest of choice – rich, price – prone consumers. Companies normally reformulate their marketing strategies and offerings several times. Economic conditions change, competitors launch new assaults, and the product es through new stages of buyer interest and requirements. Consequently, strategies appropriate to each stage in the product’s life cycle must be developed. The goal is to extend the products life and profitability, keeping in mind that the product will not last forever. This chapter explores specific ways a company can effectively position and differentiate its offerings is achieve competitive advantage throughout the life cycle of a product or an offering. All marketing strategy is built on STP – Segmentation, Targeting, and positioning. A company discovers different needs and groups in the market place, targets those needs and groups that it can satisfy in the superior way, and then positions its offering so that the target recognizes the company’s distinctive offering and image. If a company does a poor job of positioning, the market will be confused as to what to expect. If a company does an excellent job of positioning, then it can work out of the rest of its marketing planning and differentiation from its positioning strategy. We define positioning as follows. Positioning is the act of deg the company’s offering and image to occupy a distinctive place in the mind of the target market. The end result of positioning is the successful creation of customer –focused value proposition, a cogent reason why the target market should buy the product.

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POSITIONING ACCORDING TO RIES AND TROUT The word positioning was popularized by two advertising executives. At Ries and Jack Trout. They see positioning as a creative exercise done with an existing product. Positioning starts with a product. A piece of merchandise, a service, a company an institution, or even a person…….But positioning is not what you do to a product. Positioning is what you do to the mind of the prospect. Ries and Trout argue that well – known products generally hold a distincitive position a consumers’ minds. Hertz is thought of as the world’s largest auto rental agency, Coca – Cola as the world’s largest soft – drink company, and Porsche as oen of the world’s best sports cars. These brands own these positions, and it would be hard for a competitor to claim them. A competitor has three strategic alternatives. The first is to strengthen its own current position in the consumer’s mind. Avis acknowledged its second position in the rental car business and claimed. “We’re number two. We try harder.” 7 Up capitalized on not being a cola drink by advertising itself as “the Uncola.” The second strategy is to grab an unoccupied position. Three Musketeers Chocolate has d itself as having 45 percent less than fat than other chocolate bars. United Jersey Bank, noting that giant banks were usually slower in arranging loans, positioned itself as “the last – moving bank.” The third strategy is to de – position or re – position the competition in the customer’s mind. Most U S buyers of dinnerware thought that Lenox and Royal Doulton China both come from England. Royal Doulton de – positioned Lenox china by showing that it is made in New Jersy. BMW attempts to de – position Mercedes Benz with the comparison: “The ultimate sitting machine versus the ultimate driving machine.” Popeye Cajun style fried chicken aims to “save America from bland chicken” (implying an attach on KFC). Wendy’s famous commercial, in which a 70 – year – old woman named Clara 28

looked at a competitor’s hamburger and said. “Where’s the bed?” showed how an attack could destabilize consumer confidence in the leader. Ries and Troup argue that, in an over d society, the mind often knows brands in the form of product ladders, such as Coke – Pepsi – RC Cola or Hertz–Avis– National. The up firm is ed best. For example, when asked “Who was the first person to fly alone across the Atlantic Ocean successfully?” we answer “Charles Lindbergh. “When asked, “Who was the second person to do it?” we draw a blank. This is why companies fight for the number – one position. The “largest firm” position can be held by only one brand. The second brand should invent and lead in a new category. Thus 7 up is the number one Uncola. Porsche is the number one small sports car, and Dial is the number one deodorant soap. A fourth strategy is the exclusive is the exclusive – club strategy. For example a company can promote the idea that it is one of the Big There. The Big Three idea was invented by the third – largest U.S. auto firm, Chrysler. (The market leader never invents this concept.) The implication is that those in the club are the “best.” Ries and Trout essentially deal with communication strategies for positioning or repositioning a brand in the consumer’s mind. Yet they acknowledge that positioning requires every tangible aspect of product, price, place, and promotion to the chosen to poisoning strategy.

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POSITIONING ACCORDING TO TREACY AND WIERSEMA Two consultants, Treacy and Fred Wiersema, proposed a positioning framework called value disciplines. Within its industry, a firm could aspire to be the product leader, the operationally excellent firm, or the customer intimate firm. This is based on the notion that in every market there is a mix of three types of customers. Some customers favor the firm that is advancing on the technological frontier (product leadership), other customers want highly reliable performance (operational excellence), and still others want high responsiveness in meeting their individual needs (customer intimacy). Tracy and Wiersema observed that a firm cannot normally be best in all three ways, or even in two ways. It lacks sufficient funds, and each value discipline requires different managerial mind – sets and investments that often conflict. Thus McDonald’s excels at operational excellence, but could not afford to slow down its service to prepare hamburgers differently for each customer. Nor could McDonald’s lead in new products because each addition would disrupt the smooth functioning of its normal operations. Even within a large company; such as GE, each division might follow a different value discipline: GE’s major appliance division pursues operational excellence, its engineered plastics division pursues customer intimacy, and its jet engine division pursues product leadership. Treacy and Wiersema purpose that a business should follow four rules for success:  Become best at one of the three value disciplines.  Achieve an adequate performance level in the other two disciplines.  Keep improving one’s superior position in the chosen discipline so as not to lose out to a competitor.  Keep becoming more adequate in the other two disciplines, because competitors keep raising customers’ expectations.

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POSITIONING: HOW MANY IDEAS TO PROMOTE? A company must decide how many ideas (e.g., benefits, features) to convey in its positioning to its target customers. Many marketers advocate promoting only one central benefit. Rosser Reeves believes a company should develop a unique selling proposition (USP) for each brand and stick to it. Crest toothpaste consistently promotes its anticavity protection, and Mercedes promotes its great engineering. Ries and Trout favor one consistent positioning message. This makes for easier communication to the target market; it results in employees being clearer about what counts; and it makes it easier to align the whole organization with the central positioning. The brand should tout itself as “number one” on the benefit it selects. Number one positionings include “best quality,” “best performance”, “best service,” “best styling,” “best value,” “lowest price,” “safest,” “fastest,” “most customized,” “most convenient,” “most technological,” “most reliable,” or “most prestigious”. If a company consistently hammers away at one positioning and delivers on it, it will probably be best known and recalled for this benefit. Not everyone agrees that single-benefit positioning is always best. What if the market tries of the benefit or believes that most competitors now deliver it? Today people believe that most cars are safe and that most cars have pretty good quality. Doublebenefit positioning may be more distinctive. Volvo double-positions its automobiles as “safest” and “most durable”. There are even cases of even triple-benefit positioning. Smith Kline Beecham promotes its Aquafresh toothpaste as offering three benefits: anticavity protection, better breath, and whiter teeth. The challenge is to convince consumers that the brand delivers all three. Smith Kline’s solution was to create a toothpaste that squeezes out of the tube in three colors, thus visually conforming the three benefits. In doing this, Smith Kline “countersegmented”; that is, it attracted three segments instead of one. As companies increase the number of claimed benefits for their brand, they risk disbelief and a loss of clear positioning. In general, a company must avoid four major positioning errors:

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Underpositioning: Some companies discover that buyers have only a vague idea of brand. The brand is seen as just another entry in a crowded marketplace. When Pepsi introduced its dear Crystal Pepsi in 1993. customers were distinctly unimpressed. They didn’t see “clarity” as an important benefit in a soft drink. Overpositioning: Buyers may have too narrow an image of the brand. Thus a consumer might think that diamond rings at $5,000 when in fact Tiffany now offers affordable diamond rings starting at $1,000 Confused positioning: Buyers might have a confused image of the blood resulting from the company’s making too many claims or changing the brand’s positioning too frequently. This was the case with Stephen Jobs’s sleek and powerful NeXT desktop computer, which was positioned first for students then for engineers, and then for business people, all unsuccessfully. Doubtful positioning: Buyers may find it hard to believe the brand claims in view of the product’s features, price, or manufacturer. When GM’s Cadillac division introduced the Cimarron, it positioned the car as a luxury competitor with BMW, Mercedes, and Audi. Although the car featured leather seats, a luggage rack, lots of chrome, and a Cadillac logo stamped on the chasis, customers saw it as a dolled – up version of Chevy’s Cavalier and Oldmobbile’s Firenza. The car was positioned as “more for more”: customers saw it as “less for more.” Solving the positioning problem enables the company to solve the marketing-mix problem. COMMUNICATING THE COMPANY’S POSITIONING To communicate a company or brand positioning, a marketing plan should include a positioning statement. The statement should follow the form: To (target group and need) and (Brand) is (concept) that (point – of – difference). For example: “To busy professionals who need to stay organized, Palm Pilot is an electronic organizer that 32

allows you to back up files on your PC more easily and reliably than competitive products.” Sometimes the positioning statement is more detailed: Mountain Dew: To young, active soft – drink consumers who have little time for sleep, Mountain Dew is the soft drink that gives you more energy than any other brand because it has the highest level of caffeine. With Mountain Dew, you can stay alert and keep going even when you haven’t been able to get a good night’s sleep. Note that the positioning first states the product’s hip in a category (e.g., Mountain Dew is a soft drink) and then shows its point – of – difference from of the group (e.g. has more caffeine). The product’s hip in the category suggests the points – of – parity that it might have with other products in the category, but the case for the product rests on its points – of difference. Sometimes the will put the product in a surprisingly different category before indicating the points of difference. DiGiorno’s pizza DiGiorno’s is a frozen pizza whose crust rises when the pizza is heated of putting it in the frozen pizza category, the marketers positioned it in the delivered pizza category. Their ad shows party guests asking which pizza delivery service the host used, but he says: “It’s not delivery, its DiGiorno!” This helped highlight DiGiorno’s fresh quality and superior taste over the normal frozen pizza.” Once the company has developed a clear positioning statement, it must communicate that positioning effectively through all the elements of the marketing mix. Suppose a company chooses the “Best quality” positioning. Quality is communicated by choosing those physical signs and cues that people normally use to judge quality. Here are some examples: A lawnmower manufacturer claims its lawn mower is “powerful” and has a noisy motor because buyers think noisy lawnmowers are more powerful. A truck manufacturer undercoats the chassie not because it needs under coating but because undercoating suggests concern for quality. A car manufacturer makes cars with good – slamming doors because many buyers slam the doors in the showroom to test how well the car is built. 33

Ritz Calton hotels signal high quality by training employees to answer calls within three rings, to answer with a genuine “smile” in their voices, and to be extremely knowledge about all hotel services. Quality is also communicated through other marketing elements. A high price usually signals a – quality product. The product’s quality image is also affected by packaging, distribution, advertising, and promotion. Here are some cases where a brand’s quality image was hurt: A well – known frozen food brand lost its prestige image by being on sale too often. A beer’s image was hurt when it switched from bottles to cans. A highly regarded television receiver lost its quality image when mass – merchandise outlets began to carry it. A manufacturer’s reputation also contributes to the perception of quality. Certain companies are sticklers for quality; consumers expect Nestle and IBM products to be well made. Smart companies communicate their quality to buyers and guarantee “customer satisfaction or your money back.” As important as positioning is to a company’s success, most ads fail to communicate the company or the brand’s positioning. Kevin Clancy, CEO of Copernicus, a marketing strategy consulting firm, examined 340 commercials and foun6t that only 7 percent communicated any sort of positioning; and only 50 percent mentioned product features. Not only is this a waste of advertising money, but unpositioned brands is overcrowded categories tend to devolve into price – driven brands.” ADDING FURTHER DIFFERENTIATION The task of positioning is to deliver a central ideal about a company or an offering to the target market. Positioning simplifies what we think of the entity. Differentiation goes beyond positioning to spin a complex web of differences characterizing that entity. We define differentiation as the process of adding a set of meaningful and valued differences to distinguish the company’s offering from competitors’ offerings.

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All products can be differentiated to some extent, but not all brand differences are meaningful or worthwhile. A difference will be stronger to the extent that it satisfies the following criteria: Important: The difference delivers a highly valued benefit to a sufficient number of buyers. Distinctive: The difference is delivered in a distinctive way. Superior: The difference is superior to other ways of obtaining the benefit. Preemptive: The difference cannot be easily copied by competitors. Affordable: The buyer can afford to pay for the difference. Profitable: The company will find it profitable to introduce the difference. DIFFERENTIATION TOOLS The number of differentiation opportunities with the type of industry. The Boston Consulting Group (BCG) has distinguished four types of industries based on the number of available competitive advantages and their size. Volume industry: One in which companies can gain only a few, but rather large, competitive advantages. In the construction – equipment industry, a company can strive for the low – cost position or the highly differentiated position and win big or either basis. Profitability is correlated with company size and market share. Stalemated industry: One in which there are few potential competitive advantages and each is small. In the steel industry, it is hard to differentiate the product or decrease manufacturing costs. Companies can try to hire better sales people, entertain more lavishly, and the like, but these are small advantages. Profitability is unrelated to company market share. 35

Fragmented industry: One in which companies face many opportunities for differentiation, but each opportunity for competitive advantage is small. A restaurant can differentiate in many ways but end up not gaining a large market share. Both small and large restaurants can be profitable or unprofitable. Specialized industry: One in which companies face many differentiation opportunities, and each differentiation can have a high payoff. Among companies making specialized machinery for selected market segments, some small companies can be as possible as some large companies. MISTAKES 1) Overly optimistic Forecasts. 2) Faulty Assessment of consumer performances. MARKET POSITIONING The place the product occupies in the consumers mind relative to competing products. POSITIONING STRATEGIES 1) On product attributes. 2) On needs / benefits 3) On Usage occasion. 4) For Classes of s. 5) Against competition 6) Away from competitors FOUR TYPES OF OPPORTUNITIES 1) Market Penetration 2) Market development 3) Product development 4) Diversification.

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Why I have chosen this topic and how it can help me in management studies: The topic “Market positioning of Nestle’s Munch, Milo and Maggi in Delhi” is related to Marketing Research. With ever increasing complexity of marketing and business activities, the collection, analysis and interpretation of information has become much more intricated warranting the services of specialized skills and refined techniques. This urgent need has given birth to market research as a unique function of modern marketing. Though we can not claim it as the panacea for all the business ills, it can be regarded as the radar to the navigator, the dictionary to the writer. Its importace can be measured by the amount spent on it by a known economic power of the world namely America. America business community spends on an average three hundred fifty million dollars every year on research and it is increasing at an annual rate of twenty five percent. To gain familiarity with this term i.e. Marketing Research and to gain familiarity with the on going trends of Marketing, I have chosen this topic so that I can be a complete management trainee. By choosing this topic, I have gained the practical knowledge of Marketing Research and its tools.

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Aims and objectives of study Every study is conducted for some objectives and aims. Without aims and objectives, study is like a ship without radar. So aims and objectives of this study are: -

To know the market positioning of Nestle’s Munch, Milo and Maggi in Delhi.

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To know the consumption habits and consumption frequency of the consumers in Delhi.

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To know the effect of promotional efforts.

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To know the consumer’s response.

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To know the consumer’s preferences for the products of FMCG (Fast Moving Consumer Goods) sector.

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To know the external forces and their importance.

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To know the market competitors and their position in comparison to Nestle.

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To study in detail the likes and dislikes of consumers.

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To know the brand image of Nestle.

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To provide proper basis for planning.

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To find out what people want from Nestle.

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Every project requires genuine research. Success of any project and getting genuine results from that depends upon the research methods used by the researcher. Research in common parlance refers to a search for knowledge. “According to Redman and Moore,” Research is a systematized effort to gain knowledge,” What all were the methods adopted in order to conduct the study so that we can have proper findings and analysis which may assist in the accomplishment of goals and objectives of the project, are known as Methodology. It is very important to follow methodology otherwise it is very difficult to reach on conclusion. Obviously if there will be no conclusion, on what basis will be suggestions recommended. This all makes it mandatory to follow proper methodology. Methodology which were felt best for this project about “Market positioning of Nestle’s Munch, Milo and Maggi in Delhi” are as follows: The main objectives of Research are: 1.

To gain familiarity with a phenomenon or to achieve new insights into it.

2.

To portray accurately the characteristics of particular products (Milo, Munch and Maggi).

3.

To determine the frequency with which something occurs or with which it is associated with something else.

RESEARCH METHODOLOGY FOR THE REPORT Data Source:

Primary Data

For this project report, I have collected Primary data because of its reliability. It is a fresh data collected specially for this purpose. Research Approach:

Survey Research

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I have opted for survey research approach. Surveys are best suited for descriptive research. Companies undertake surveys to learn about people’s knowledge, beliefs, preferences and satisfaction and to measure these magnitudes in general population. Research Instruments: 1.

Questionnaires: For the collection of primary data through survey

research approach for this project, I have used questionnaires as a research instrument because of its flexibility. This questionnaire contains 11 closeended questions because close-ended questionnaire specify all possible answers that are easier to interpret and tabulate. 2. Interview of sales force and Retailers: Finally it was felt very important to conduct the interview of retailers and sales force to know the exact market position of Nestle’s 3Ms i.e Munch, Milo and Maggi.

Sampling Plan: After deciding on the research approach and instruments, the next step for the research is sampling plan. This calls for two decisions: -Sampling Unit -Sampling Size Sampling unit: Sampling unit i.e. who is to be surveyed? For this project or research, sampling unit is consumers, retailers and sales force. Sampl ing Size: I have got filled 100 questionnaires from the consumers living in the various parts of MOGA. I have visited important places in MOGA like offices: Dashmesh Nagar, Baag Gali, 9 Streat, Sidhu Nagar, Mahita chonk, Shanti Nagar BPL Ltd.: Nehru place, and many more. I have covered the consumers of different age goup, sex and income group. Method:

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Personal filling of questionnaires is best way to reach people, to understand their behavior, their expectations and enquire much more about study. Therefore I have got these questionnaires filled by personal Research Methodology At A Glance:

DESCRIPTION NAME OF STUDY Data used Source of primary data Source of secondary data

Primary & Secondary Retailers, Consumers Newspaper, Magazines, Annual Report,

Time duration Instrument used

Internet etc. Eight weeks. Personal interview with close-ended

Sample size Region

questionnaire having 11 questions. 100 MOGA

Attached: A copy of questionnaire

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Questionnaire Q1: Are you aware of Nestle’s Munch, Milo and Maggi? Munch: Milo Maggi:

Yes Yes Yes

No No No

Q2: Have you come across the ments? If yes, then where? Newspapers

Magzines

TV

Q3: When do you like to consume Maggi generally? Morning

Lunchtime

Evening

Anytime

Q4: How many Maggis you consume in a week? Never consume

1-5

6-10

11-15

16-20

More than 20 Q5: What do you say about the taste of Maggi? Very good

Good

Satisfactory

Not good

Q6: What modifications do you want in Maggi? Improve taste

Less price

Packing

No modification Q7: Which is favourite chocolate? Cadbury dairy milk

Nestle’s Munch

Q8: How do you rate the taste of Nestle’s Munch? 43

Others

Excellent

Good

Satisfactory

Not good

Can’t say Q9: Which health drink is more popular from your point of view? Bournvita

Nestle’s Milo

Others

Q10: When do you want to take the health drinks generally? Morning

Lunchtime

Evening

Anytime

Q11: How do you rate the taste of Nestle’s health drink Milo? Excellent

Good

Satisfactory

Can’t say

44

Not good

MARKET SURVEY ANALYSIS AND GRAPHS

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Q1.

Are you aware of Nestle’s Munch, Milo and Maggi?

Yes 100

No

88.3

100

84.04

80 60 40 20 0

15.96

11.7 0 Maggi

Munch

Milo

As far as awareness is concerned it is fine with each product.

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Q2.

Have you come across ment? If yes, then where?

M ENT 100 80

63.83

60 40

20.21

15.96

20 0

TV

Newspapers

Magzines

Mostly people have come across the ment in TVs followed by Newspapers and Magzines.

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Q3.

When do you consume Maggi?

Consumption time 100 80 46.17

60 40 10.64

20 0

Morning

27.66

15.53

Lunch time

Evening

Anytime

Generally people consume Maggi in Evening but some are also interested in Maggi at anytime.

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Q4.

How many Maggis you consume in a week?

CONSUM PTION 100 80

60.6

60 32.04

40 20 0

2.04 Never tasted

3.2 1 to 5

6 to 10

11 to 15

1.06

1.06

16 to 20 More than 20

Generally people consume 1-5 Maggis in a week. But consumption ratio of 6-10 is also not ignorable.

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Q5.

How do you rate the taste of Maggi?

1.06 20.21

30.85

Very good Good Satisfactory Not good

47.88

From the above fig., It can be said that the taste of Maggi is Good.

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Q6.

What modifications do you want in Maggi?

25.11

15.8 Excellent 10.21

Improve taste Less price

7.45

Packing No modifications

57.23

Nestle is suggested to reduce the price of its Maggi.

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Q7.

Which is yours most favourite chocolate?

4.26

Cadbury

28.72

M unch

Others 67.02

People are more interested in cadbury’s dairy milk than Nestle’s Munch.

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Q8. How do you rate the taste of Nestle’s Munch?

7.45

10.76

7.45

Excellent Good 28.49

Satisfactory Not good Can't Say

45.85

According to Nestle’s Munch consumers, Munch has a Satisfactory taste.

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Q9. Which is the common health drink? People generally prefer Bournvita than Milo as a health drink.

80 70

71.28

60 50 40

Health drink

30 19.15

20

9.57

10 0

Bournvita

Milo

Others

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Q10. When do you take health drinks generally?

45

41.49

40 35 30.85 30 25 20 15.96 15

11.7

10 5 0 Morning

Lunchtime

Evening

Anytime

People generally take health drinks in Morning but some even prefer in evening.

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Morning Lunchtime Evening Anytime

Q11. What do you say about the taste of Milo?

40 36.17

35 30 25

22.34 20.21

20

15.96

15 10 5

5.32

0 Excellent

Good

Satisfactory

Taste of Nestle’s Milo is Good.

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Not good

Can't say

Excellent Good Satisfactory Not good Can't say

LIMITATIONS AND PROBLEMS

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1.

Sometimes people don’t give appropriate information and fill the questionnaire just for the sake of fun.

2.

Mostly retailers don’t want to give information and act rudely. Some even refuse to give response.

3.

People don’t have time to fill questionnaires in their busy life.

4.

Number of questions should be more than this, so that you come to know the accurate result.

5.

Generally people don’t respond well for open ended questions like the suggestion if any.

6.

Instead of three, there should be one product, so that proper stress can be given on the research.

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After analyzing properly the information gathered through the mentioned methodology, we come to the following findings about Nestle’s Munch, Milo and Maggi:

1.

As far as awareness is concerned it is fine for all the three products. Mostly people have come across their ments in TVs, Newspapers and Magzines. But TV is more popular medium. Thus we can say that TV is a fruitful source of publicity and we also find that Nestle spends a lot on the publicity of its products in order to reach to the consumers.

2.

Nestle’s Maggi is most popular brand among the consumers and it is because of its masala. People like Maggi very much and they mostly consume 1-5 or 6-10 Maggis in a week. They prefer Maggi in evening. But some are ready to consume it at anytime.

3.

From the analysis, We find that people want reduction in the price of Maggi. They are satisfied with its Packing, its taste but think that its price should be reduced so that it can become economical for each and every person.

4.

Nestle’s chocolate “Munch” is not a popular chocolate among the consumers according to the survey because it’s taste is just satisfactory not excellent. People prefer to consume chocolates of Cadbury like Cadbury Dairy Milk, Cadbury Five Star etc. than Nestle’s Munch.

5.

As far as health drinks are concerned people’s favourite health drink is Bournvita because of its taste and chocolate flavour. People prefer to take Health drinks in Morning or in evening. They like Bournvita more than Nestle’s Milo. But analysis also points that the taste of Milo is Good.

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About Nestle’s Maggi: From the above analysis and findings, we can conclude that Nestle enjoys a strong Market Position in case of its product Maggi among its competitors. Its competitors like Top ramen smoodles, Pasta do not stand in front of Nestle’s Maggi. Mostly people have come across its ment in TV, Newspapers, Magzines. They find its taste very good. But survey points out that its price should be reviewed. People want a reduction in its price. Above all, We can conclude that Nestle’s Maggi is KING in its product area. About Nestle’s chocolate Munch: As far as Nestle’s Munch is concerned, it does not enjoy a good market position. Its competitors Cadbury has a strong position over it. People rank the chocolates of Cadbury much better than Nestle’s Munch. As far as its price is concerned, people are satisfied. But Nestle will have to do a lot to make the taste of Munch EXCELLENT from satisfactory (pointed in analysis and findings). Thus we conclude that Cadbury gives a strong competition to Nestle’s Munch and makes its position in chocolate market a little weaker. Nestle should provide fridges and shelves to the retailers for the easy storage of Munch. It will also serve as an advertising media. About Nestle’s Milo: From the above study, we can conclude that Nestle’s Milo, a health drink, has a good taste but fails to compete fully with Bournvita. People enjoy Bournvita as a health drink much more than Nestle’s Milo. Thus Nestle’s competitor in the area of health drink is more stronger and makes the market position of Nestle’s Milo a little poor. Nestle will have to do a lot to shake the market position of its competitors and make a good stand over them. For this it can provide good offers at economical and affordable price. It can adopt sales promotion efforts.

Above all, we come to the point that market position of Nestle’s three M i.e Munch, Milo and Maggi enjoys a different status. Maggi is very strong, weakning the position of its competitors but in case of chocolate and health drink, Nestle’s competitors has a strong market position. Thus Nestle has to follow the three different market strategies for its 3Ms.

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BIBLOGRAPHY:

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WEBSITES:

www.nestle.com



www.thehindubusiness.com



www.etstrategicmarketing.com



www.forum.nestle.pl

MAGAZINES: Sampark Magazine, Nestle India Limited, Moga.  Globe Magazine, Nestle India Limited, Moga.  Nestle employee information handbook, Nestle India Limited, Moga. BOOKS:NAME  Marketing Management  Marketing Management Research Methodology

AUTHOR -KOTLER -SONTAKKI -KOTHARI

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