MINOR PROJECT REPORT ON

“Consumer Satisfaction Towards Nestle”

Submitted in partial fulfillment of the requirements for the award of

Bachelor of Business Administration

[2021-2024]

FAIRFIELD INSTITUTE OF MANAGEMENT AND TECHNOLOGY

KAPASHERA, DELHI

AFFILIATED TO :

GURU GOBIND SING INDRAPRASTHA UNIVERSITY

(DWARKA, NEW DELHI)

Submitted to: Submitted by:

Ms. Ipsa Saxena NAME: SAGAR PATEL

Assistant Professor Enrollment no. 06490101721

(FIMT, Delhi) Semester-4th/A BBA (Gen)

 CERTIFICATE FROM GUIDE

This is to certify that project title Consumer Satisfaction towards “Nestle’’ is the original work of
Sagar Patel student of BBA 4th Semester and has been duly completed My project under my guidance
and supervision up to my satisfactory level. This work has been done in partial fulfilment of the
requirement for the award of the degree of Bachelor of Business Administration from “Fairfield
Institute Of Management & Technology”, New Delhi and has not been submitted anywhere in any
other university for the award of any degree.
Ms. Ipsa Saxena

(Asst. Professor). FIMT

 STUDENT DECLARATION

I hereby declare that the project entitled (Consumer Satisfaction towards Nestle Cooperation
Federation” under the guidance of Ms. Ipsa Saxena submitted in the partial fulfillment of degree of
Bachelor Of Business Administration from “Fairfield Institute of Management and Technology, New
Delhi”. This is my original work and this project work has not formed the basis for the award of any
degree to the best of my knowledge.
Student Name –Sagar Patel
Enrollment no - 06490101721

Signature of student

Place:
Date:
 TABLE OF CONTENTS

S.NO. TITLE PAGE NO.

1 Certificate from Guide 2

2 Student Declaration 3

3 Acknowledgement 5

4 Executive Summary 6

5 Chapter - 1: INTRODUCTION 7-34

6 Chapter - 2: LITERATURE REVIEW 35-39

7 Chapter - 3: RESEARCH METHODOLOGY 40-41

8 Chapter - 4: RESULT AND DISCUSSION 42-48

9 Chapter - 5: CONCLUSION 49-50

10 BIBLIO GRAPHY 51-51

11 ANNEXURE 52-53
 Acknowledgement

It is pleasure to acknowledge many people who knowingly and unwittingly helped, to complete
my project. First of all let me praise god for all the blessings, which carried me through all those
years. I am particularly indebted, Fairfield Institute of Management Technology, which included
in me almost respect for human values and groomed me up in the field of software technology to
take on the challenges of the competitive world. First & foremost, I would like to express my
regards to Ms.Ipsa Saxena for her constant encouragement and support. I would also like to
express my immense gratitude towards all the lecturers of our college for providing the
invaluable knowledge, guidance, encouragement extended during the completion of this project.
I extend my sincere gratitude to all my teachers and guide who made unforgettable contribution.
Due to their sincere efforts I was able to excel in the work entrusted upon me. Last but not the
least; I am grateful to my parents, my sister, my brother, my friends and all well- wishers for
their moral support and encouragement during the entire period of time.

(SIGNATURE OF STUDENT)
Sagar Patel
06490101721
 EXECUTIVE SUMMARY

The fiercely competitive Indian retail environment has forced the retail businesses to focus
extensively on customer retention of their existing customers. As a result, leading Indian
retailers launched their loyalty programs offering a range of attractive tangible and intangible
rewards to their customers, with an aim to retain them and enhance the retail performance. These
programs not only engaged increasing number of members over the years, but also generated
huge proportion of sales and profits from these members. When consumers join a loyalty
program, to accumulate rewards more quickly, they are likely to concentrate their purchases on
one firm, such as buying all the things from one store only. Furthermore, because loyalty
program members tend to overlook negative experiences with the firm and are less likely to
compare the firm with competitors, they are more likely to buy exclusively from the firm. I have
expressed my experiences in my own simple way. I hope who goes through it will find it
interesting and worth reading. All constructive feedback is cordially invited.
 CHAPTER 1
INTRODUCTION
 Topic Introduction
The main aim of studying marketing strategies of Nestle because Nestle is one the premium
brand which include various products offered to different market segments. Nestle is a global
company with deep local roots which gives a unique ability to understand local consumers and
adapt fast to their preferences. They aim to inspire people to live healthier lives to improve
society. This ensures the long-term success that comes with earning their consumers trust and
maintaining market leadership. The results show that Nestle success factor is from the provision
of good products at a reasonable price and marketing strategies that Nestle has developed to be
main driver of the growth which contribute of the organisational success. The most visible
marketing campaigns by nestle have been prize giveaways, whose impact has been the increase
in sales for selected products involved or targeted in those campaigns. Nestle can target rural and
urban consumers of age 13 or greater including males and females. They targeted as they all
consume. Nestle balances both competitive and value-based pricing strategies to stay afloat. The
company offers its core products at market prices to distribute risks while earning majorly from
its premium brands.
 Company Profile

Formerly Show List

Parent company Nestle Ltd

Category Food Products

Founded 1866; 156 years ago

Founder Henri Nestle

Headquarters Vevey, Vaud, Switzerland

Area served Worldwide

Products Baby foods, coffee, dairy product, Breakfast cereal, Bottled water ice cream, pet foods ,
etc..

Revenue 10 billion (2021)

tagline Good Food Good Life

Target market Urban Middle and upper Middle class

Registered 100/101 World Trade Centre ,Barakhamba lane, New delhi, India

office

E-mail Investor@in.nestle.com

Telephone no. 1800 103 1947

Website www.nestle.com
Nestle is one of the largest company in food processing industry in terms of revenue
& profitability. It is fortune 500 company which is serving different customer segment all over the
world and have the market capitalization of the US $250 billion (may 2015 data).The leading
health, Nutrition & wellness company is taking care of the needs & wants of their consumers and
their families all around the world so as to help them to live a healthier lifestyle.

Nestlé India is a subsidiary of Nestle S.A of Switzerland. With seven 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 start 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
Company profile
Nestlé was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and its first
product was “Farine Lactée Nestlé”, an infant cereal specially formulated by Henri Nestlé to
provide and improve infant nutrition. From its first historic merger with the Anglo-Swiss
Condensed Milk Company in 1905, Nestlé has grown to become the world’s largest and most
diversified food Company, and is about twice the size of its nearest competitor in the food and
beverages sector.
Nestlé’s trademark of birds in a nest, derived from Henri Nestlé’s personal coat of arms, evokes
the values upon which he founded his Company. Namely, the values of security, maternity and
affection, nature and nourishment, family and tradition. Today, it is not only the central element
of Nestlé’s corporate identity but serves to define the Company’s products, responsibilities,
business practices, ethics and goals.
The Company’s transparent business practices, pioneering environment policy and respect for
the fundamental values of different cultures have earned it an enviable place in the countries it
operates in. Nestlé’s activities contribute to and nurture the sustainable economic development
of people, communities and nations.
Nestlé’s relationship with India dates back to 1912, when it began trading as The Nestlé Anglo-
Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in
the Indian market.
After India’s independence in 1947, the economic policies of the Indian Government Emphazised
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. For more on Nestlé Agricultural Services.
 Henri Nestlé (1814 - 1890)

HISTORY OF NESTLE

1866 -1905

In the 1860s Henri Nestlé, a pharmacist, developed a food for babies who were unable to
breastfeed. His first success was a premature infant who could not tolerate his mother's milk or
any of the usual substitutes. People quickly recognized the value of the new product, after
Nestlé's new formula saved the child's life, and soon, Farine Lactée Henri Nestlé was being
sold in much of Europe.

1905-1918

In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s,
the company was operating factories in the United States, Britain, Germany and Spain. World
War I created new demand for dairy products in the form of government contracts. By the end
of the war, Nestlé's production had more than doubled.
1918 -1938

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 the Company's
second most important activity.

1938 -1944

Nestlé felt the effects of World War II immediately. Profits dropped from $20 million in 1938
to $6 million in 1939.Factories were established in developing countries, particularly Latin
America. Ironically, the war helped with the introduction of the Company's newest product,
Nescafe, which was a staple drink of the US military. Nestlé's production and sales rose in the
wartime economy.

1944 -1975

The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated
and companies were acquired. In 1947 came the merger with Magi seasoning sand 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.

1975 -1981

Nestlé's growth in the developing world partially offset a slowdown in the Company's
traditional markets. Nestlé made its second venture outside the food industry by acquiring
Alcon Laboratories Inc...

1981 -1996

Nestlé divested a number of businesses1980 / 1984. In 1984, Nestlé's improved bottom line
allowed the Company to launch a new round of acquisitions, the most important being
American food giant Carnation.
 1997

The sunset of the nineties saw the company continue with its product diversification strategy
with the launch of NESTLE EVERYDAY sweetened condensed blend in 1997 and MAGGI
Relish Mix and MAGGI Soups in 1998.

2001-2003

In January 2002, Nestlé South Africa acquired the remaining 50% shareholding in Dairymaid-
Nestlé (Pty) Ltd from Tiger Brands. As a result Dairymaid-Nestlé became a wholly owned
subsidiary of Nestlé SA. The company was renamed Nestlé Ice Cream in early 2003.

By January 2002, Coca-Cola and Nestlé announced that their global joint venture partnership,
Beverage Partners Worldwide (BPW), was extended to South Africa. This expansion to the
South African market signalled the introduction of Nestea Ice Tea, which has helped to grow
the ready-to-drink tea category in South Africa.

2005

Harrismith plant upgraded to the state-of-the-art high tech infant formula production factory.
 2006

Nestlé celebrated 90 years in South Africa. Nestlé’s presence in South Africa has resulted in a
multimillion rand investment annually with purchases of milk and other raw materials. This in
turn provides employment to more than 4 000 people and security for thousands of dependents.

OPERATIONS
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 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, MILO, 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 SLIM Milk, NESTLÉ Fresh 'n' Natural
Dahi and NESTLÉ Jeera Raita. Nestlé India is a responsible organization and facilitates initiatives
that help to improve the quality of life in the communities where it operates.
PRESENCE IN INDIA

Beginning with its first investment in Moga in 1961, Nestlé’s regular and substantial investments
established that it was here to stay. In 1967, Nestlé set up its next factory at Choladi (Tamil Nadu)
as a pilot plant to process the tea grown in the area into soluble tea. The Nanjangud factory
(Karnataka), became operational in 1989, the Samalkha factory (Haryana), in 1993 and in 1995
and 1997, Nestlé commissioned two factories in Goa at Ponda and Bicholim respectively. Nestlé
India has commissioned in 2006 its 7th factory at Pant Nagar in Uttarakhand.

BRANDS

. MILK PRODUCTS AND NUTRITION

· EVERYDAY DAIRY WHITENER

· EVERYDAY GHEE
· MILK
· SLIM MILK
· SILM MILK
· NEVISTA PRO-HEART MILK
· FRESH ‘n’ NATURAL DAHI
· FREAH ‘n’ NATURAL SLIM DAHI
· JEERA RAITA
· NESVITA DAHI
· MILKMAID FRUIT YOGHURT
· MILKMAID
· MILKMAID FUNSHAKES
· NIDO

BEVERAGES
· NESCAFE CLASSIC
· SUNRISE PREMIUM
· SUNRISE SPECIAL
· CAPPUCCINO
· MILO SMART PLUS READY –TO- DRINK
ICED TEA WITH GREEN TEA
· NESTEA ICED TEA
PREPARED DISHES AND COOKING AIDS
· MAGGI 2 MINUTE NOODLES
· VEG ATTA NOODLES
· RICE NOODLES MANIA
· CUPPA MANIA
· SAUCES
· PICHKOO
· PIZZA MAZZA
· MAGIC CUBES
· BHUNA MASALA

Nestle Strengths
The strengths of Nestle looks at the key aspects of its business which gives it competitive
advantage in the market. Some important factors in a brand's strengths include its financial
position, experienced workforce, product uniqueness & intangible assets like brand value. Below
are the Strengths in the SWOT Analysis of Nestle :
1. Nestle has an experience of more than 140 years in the industry
2. Nestle is one the world's biggest brand and is consistently in the Fortune 500 list
3. The company has a global reach with presence in over 86 countries
4. Employee strength of around 330,000 people worldwide
5. Nestle offers a wide product range including baby food, pet food, dairy products,
confectioneries, pharmaceuticals, beverages, etc.
6. Popular brands owned like Maggi, Haagen-Dazs, Boost, Kit Kat, Nescafe, etc.
7. Largest R&D network facilitating continuous innovation
8. Nestle has a very strong supply chain network and products are available through groceries,
supermarkets and even online worldwide
9. C.S.R. activities for rural development, environment protection, water conservation, etc.
10. Mergers and acquisitions and joint ventures have strengthened Nestle's market position
11. Strong marketing and advertising through TVCs, print media, online ads, OOH and
sponsorships

12. Brand loyalty and brand recall of Nestle is extremely high for the brand

Nestle Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase
its position further. Certain weaknesses can be defined as attributes which the company is lacking
or in which the competitors are better. Here are the weaknesses in the Nestle SWOT Analysis:

1.Being a big global brand, numerous controversies in different countries of operation cause issues
2.Strong competition by other brands means limited market share growth for Nestle

Nestle Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A
brand's opportunities can lie in geographic expansion, product improvements, better
communication etc. Following are the opportunities in Nestle SWOT Analysis:

1.Introduce more health based food products to tap the health consciousness amongst consumers
2.Expanding focus on developing economies can boost business for Nestle
3. Continue with acquisitions and joint ventures to increase its market share

4.Try to capture the rural markets

5. Tie-ups with leading hotel chains, restaurants, schools, government institutes etc can
help Nestle maintain its market dominance

Nestle Threats

The threats for any business can be factors which can negatively impact its business. Some factors
like increased competitor activity, changing government policies, alternate products or services
etc. can be threats. The threats in the SWOT Analysis of Nestle are as mentioned:
1.Failure of the complex supply chain at low levels can affect the business
2.Economic instability and recession in countries can adversely affect Nestle because it is a global
player
3.Events like Eurozone crisis, as most of its revenue comes from Europe

4.Increase in cost of raw materials can affect profit margins

5.Stiff competition in all product segments

Nestle Competitors
There are several brands in the market which are competing for the same set of customers. Below
are the top 11 competitors of Nestle:

1. Unilever
2. Kraft Foods
3. Dr Peppers Snapple
4. Danone
5. Mars Incorporated
6. Hershey’s
7. Parle Products Ltd
8. General Mills
9. Danone
10. PepsiCo
11. Coca Cola
Market Structure

The Market Structure refers to the characteristics of the market either organizational
competitive, that describes the nature of competition and the pricing policy followed in the
market.

the market structure can be defined as, the number of firms producing the identical goods and
services in the market and whose structure is determined on the basis of the competition prevailing
in that market.

The term “ market” refers to a place where sellers and buyers meet and facilitate the selling and
buying of goods and services. But in economics, it is much wider than just a place, It is a gamut of
all the buyers and sellers, who are spread out to perform the marketing activities.

Type of Market Structure

1. Perfect Competition Market Structure

2. Monopolistic Competition Market Structure

3. Oligopoly Market Structure

4. Monopoly Market Structure

The major determinants of the market structure are:

1. The number of sellers operating in the market.

2. The number of buyers in the market.

3. The nature of goods and services offered by the firms.

4. The concentration ratio of the company, which shows the largest market shares held by the
companies.

5. The entry and exit barriers in a particular market.

6. The economies of scale, how cost efficient a firm is in producing the goods and services at
a low cost. Also the sunk cost, the cost that has already been spent on the business
operations.

7. The degree of vertical integration, the combining of different stages of production and
distribution, managed by a single firm.

8. The level of product and service differentiation, how the company’s offerings differ from
the other company’s offerings.

9. The customer turnover, the number of customers willing to change their choice with
respect to the goods and services at the time of adverse market conditions.
Marketing strategy of Nestle

1 Marketing Mix of Nestle

1 Product
This Marketing Strategy element reflects the solution to the customers’ needs. Nestle should develop
unique product design, name and features to stand out in the competitive market. Following factors
should be considered to develop the product strategy- quality, variety, features, packaging, brand
name and augmented services.

2 Pricing
This Marketing Strategy element requires an evaluation of the value of products for targeted
customers. The pricing strategy of the Nestle will focus on setting the list price, credit terms,
payment period and discounts.

 If Nestle decides to choose the price penetration strategy, it will have to set the lower price than
competitors. The company will be able to win market share based on discounted pricing.
However, management should be aware of the potential retaliation from competitors in the form
of an undesired price war.
 The choice of skimming strategy will require clear communication of differentiation basis and
how such differentiation justifies the extra price.

3. Place/distribution

This Marketing Strategy element requires Nestle to make some important decisions when
developing its distribution plan. It should decide:

 Whether the company wants to make the product available to targeted customer segments
through its channels, or it needs a distribution partner to serve the customers' needs.
 Whether the distribution will be direct (involving no middlemen), or indirect. If indirect
distribution strategy is adopted, the number of middlemen must be selected (wholesalers, retailers
etc.)
 Whether it is interested in: traditional brick and mortar distribution network, online distribution
or a combination of both. Certain online retailers like Amazon are available if online distribution
strategy is chosen. The company can also develop its online website to sell the product.

Modern customers give high importance to the ‘convenience’ and ‘easy availability’.
 The selection of ‘right’ distribution channels will require Nestle to:

 Firstly, consider the product characteristics. Involving various middlemen to distribute perishable
products will not be a wise decision if the product is perishable.
 Analyze the market dynamics, customers' preferences and own resources and capabilities. If
customers place high importance to personalized services and prefer shopping from traditional
stores rather than online channels and firm also has enough resources to open their outlets, than
distribution strategy should be set accordingly.
 The competitors’ distribution strategies also need to be studied. A comprehensive cost-benefit
analysis of each channel and comparison with own resources and capabilities will help Nestle
develop an effective distribution plan.

4 Promotion

This is one of the most important elements of Nestle Marketing Strategy. Nestle can blend above
and below the line promotional strategies to achieve its marketing objectives. The above the line
promotion options for Nestle are- television, radio and print advertising. Below the line
promotion options are- catalogues, tradeshows and direct mail campaigns.

The promotional plan of Nestle Marketing Strategy requires the company to consider the
following factors:

 Start with clearly defining your unique selling propositions and understand why customers need
the product and how it is different from available alternatives.
 Craft the message content and evaluate how the crafted message will help customers in creating
a clear image of the offered product. Consider the AIDA (awareness, interest, desire, action)
when developing the message.
 The promotional strategies like direct selling or high profile advertising will suit if the company
wants to push the product. However, the pull strategy will require the development of a
prestigious brand image that could attract the customers towards the offered product.
 Collect the following target market information- who will buy the product? (Age, gender, income
and social status), what is price sensitivity level? And what are customers’ desired
communication modes? Incorporate this information into the promotional plan.
 Filter out the promotional options based on the above information and conduct a cost-benefit
analysis of selected promotional alternatives.
o For example, the selection of TV advertising as a promotional strategy will allow the company
to target the mass market, increase brand awareness and brand recall. However, it is an expensive
 promotional strategy and suits if the company has adequate resources available for the
promotional efforts.
o The popularity of social media marketing has raised significantly during the last few years. Use
of this promotional strategy will enable Nestle to reach the mass market economically. It will
also offer an opportunity to actively interact with customers, develop a personalized relationship
and manage e-WOM to get better results. However, the risk of uncontrollable negative e-WOM
remains there.

2 Customer Analysis of Nestle

The development of effective marketing mix strategies depends on Nestle’s knowledge of its
potential customer base. The strategies will be more effective if the company understands the
needs, expectations and attitude of its customers. The detailed analysis leads towards the
identification of different customer profiles or segments (as explained in detail in the next
section).

Nestle can follow three steps to conduct customer analysis:

 Firstly, Nestle should clearly define who current and potential customers are? At this step, a
whole group of customers is identified so that it could be divided into different segments based on
their motivations, traits and characteristics. Identification of potential customers can be more
challenging than current customers.
 The customer analysis should offer information about how the needs and expectations of
different groups differ from each other and what can be possible reasons.
 Lastly, Nestle should analyze how it’s offered product/service serves the needs of different
groups and which customer groups have more profit and growth potential. This information will
help Nestle develop customer profiles and personas.

Nestle can consider following factors when developing the customer profiles:

 The customer analysis must identify the total market size including current and potential
customers that could be divided into small measurable segments.
 The customer profiles must have some observable differences.
 The company should also conduct behavioural analysis to identify the psychographic profiles.
It involves identifying and weighing the relative importance of factors considered when making a
purchase decision or more commonly called buying criteria. Common buying criteria are- prestige,
convenience, quality and price.
 Nestle can then develop the customer personas. Important elements to be included in developing
customer personas are:
o Demographic information (e.g. gender, family, age, location etc.)
o Preferred communication channels.
o Possible influencers (publications or celebrities they follow)
o Challenges they face due to unserved needs and desired solutions.

3 Segmentation of Nestle
The development of Nestle Marketing Strategy requires identifying segmentation basis to
understand the specific buying behaviour of customers. The needs, expectations and buying
behaviour of customers are heterogeneous and depend on multifaceted factors- like:

 Age
 Gender
 Income
 Lifestyle
 Values etc.

By using the segmentation technique, Nestle can narrow down the large, diversified target
audience into specific and narrowly defined groups. Market segmentation surveys are common
methods of obtaining the customer-specific information that could be used to create groups sharing
common characteristics.

After understanding the unique buying behaviour of customers and getting the required
information through surveys, Nestle can divide the market into small homogeneous groups. It can
be done by exploring the geographic, demographic, behavioural and psychographic characteristics
of customers.

The company can use one or more of these segmentation strategies to choose the right market
segments and develop an effective Marketing Strategy.

 The geographic segmentation divides the market according to geographic areas, like- city,
country and region.
 The demographic segmentation will require Nestle to divide market according to demographic
characteristics, like- gender, age, income and ethnicity.
 If Nestle chooses behavioural segmentation, then customers will be divided according to their
buying pattern like usage frequency, benefits sought, usage occasions and brand loyalty.
  Use of psychographic segmentation will result in customers' grouping according to their
lifestyles, interests, attitudes, values and traits.

4 Targeting and Positioning of Nestle

After dividing the large diversified customer market into smaller groups with homogeneous
characteristics, Nestle should wisely choose the target segment/segments whose needs and
expectations match the company’s resources and capabilities.

The targeting can be done by evaluating the commercial attractiveness and growth potential of
identified segments. Nestle can choose one or more segments depending on the segments’
characteristics and the company's resources, capabilities and growth objectives.

The commercial attractiveness and growth potential of each segment can be evaluated by using
the following indicators:

 Identified segments have the appropriate size

 Have concrete differences.
 The estimated profits should exceed the additional marketing costs.
 Segments are easily accessible.

After segmenting the customer market and choosing the right target market, Nestle now
requires to set a clear positioning statement that could create a positive image of the offered
product in the customers' mind. Nestle can follow the following steps to develop an effective
positioning strategy:

 Develop the positioning statement for Nestle Marketing Strategy by answering the following
questions:
o What your brand stands for?
o What are the needs and wants of your target market?
o How your brand serves those needs?
o How different is your offering from competitors?
 Answers to these questions will yield enough information to develop a positioning statement.
 The comparison of their communication and messaging strategy with competitors will reveal
the potential areas that could be addressed with targeted positioning message.
 Identify the strengths/weaknesses of business by comparing with competitors to find that gaps
that offered product can fill.
 Analyse positioning of competitors and evaluate own position in the market.
 By using the analytical data collected from a different market, customer and competitor
surveys, develop a positioning statement and periodically test its effectiveness by collecting
qualitative and quantitative data (like focus groups, polls, interviews etc.).
 Use the test results to make necessary adjustments in the brand positioning

5 Company Competitive Advantage in the Marketing Strategy of Nestle

The survival in the increasingly competitive market requires Nestle to set the clear
differentiation basis that could provide an edge against rivals. Nestle Marketing Strategy
should focus on identifying unique selling propositions (USPs). Some examples of USPs are
the highest quality, lowest cost or uniqueness of idea. Identifying USPs is not sufficient as the
effectiveness of the Marketing Strategy of Nestle will directly depend on management's ability
to communicate the identified unique selling propositions.

The Nestle can apply Porter's generic strategies model to explore how competitive advantage
can be created. The pictorial presentation of the Porter Model is given below:

The company can set a competitive advantage based on cost or differentiation.

1 Cost based competitive advantage

 The cost leadership strategy will suit if Nestle has developed capabilities to reduce the cost
below the industry average and achieve the economies of scale. Moreover, it will require
Nestle to develop close collaboration between different functional areas.
 Developing most effective distribution channels, access to latest technological tools to assist
production processes, using lean production methods and strong bargaining position when
negotiating with suppliers are some indicators of setting competitive advantage based on cost
leadership.

2 Differentiation based competitive advantage

The differentiation strategy focuses on developing brand loyalty by offering premium
products. The company can find different ways to develop differentiation leadership, such as-
by focusing on the reliability, durability, benefits and distinctive features of products, by
developing strong brand recognition and by increasing expenditure on marketing efforts like
celebrity endorsements and sponsorships etc. Nestle can set achieve competitive advantage
by adopting product, service, quality, image, people or innovation differentiation.
 3 Competitive advantage model
Following the model shows how Nestle can develop an effective Marketing Strategy by
evaluating its resources and capabilities, identifying distinctive competencies and leveraging
those competencies by adopting either cost or differentiation orientation:

6. BCG Matrix in the Marketing Strategy of Nestle

Nestle should continuously evaluate its product line by assessing their growth potential and
share in the market. The products can be classified into the following categories:

 The products with high growth and high market share are classified as stars. Nestle should
increase the investment after identifying the stars in its product lines.
 Products with high market growth but low share are classified as question marks. Nestle
should analyse why market share is low despite the high growth rate.
 Products with low growth but high market share are cash cows that need to be milked for
continuous good performance in the market with low growth and limited opportunities.
 Lastly, products with low growth and low market share are dogs’ Nestle should divest as it is
difficult to make profits and get an adequate return by investing in dogs.
 The high number of stars and cash cows will indicate good performance, whereas, a high number of question
marks and dogs will be a cause of concern for Nestle. The product classification is necessary for evaluating
the success of the Marketing Strategy of Nestle.

7. Brand Equity of Nestle

 Brand equity reflects the overall value of the brand. The customers' experiences and perceptions determine the
brand value. Positive perceptions reflect the high brand value and positive brand equity, while negative
perceptions reflect the low brand value and negative brand equity. Nestle should continuously evaluate its
brand equity to ensure the long-term survival in an increasingly complex and competitive customer market. It
can be done by evaluating the following brand equity components
 :1. Brand equity components

1 Brand awareness
Brand awareness provides the basis for brand equity development process. High brand awareness
shows that the customers know that the Nestle brand exists and can recall the important brand-
related information. The company can measure brand awareness by conducting brand recall surveys.
The high brand awareness acts as an anchor to other associations. It increases brand visibility that
can help Nestle gain consideration in the competitive market.
2 Brand association
Brand association reflects the customers’ associations with Nestle based on their memories,
previous experiences, interaction with Nestle’s employees, price points, advertisements, WOM,
celebrity associations and publicity in different media channels. It is important for Nestle to
carefully plan each interaction with internal and external environmental actors (such as government,
employees, shareholders and media), as customers develop brand association not only due to direct
interaction with the brand, but also the indirect interaction with different environmental factors.

3 Perceived quality
Nestle should carefully evaluate the customers’ perceptions of product quality as these perceptions
influence their pricing decisions.

4 Brand loyalty
Brand loyalty is among the most important element of Nestle’s brand equity. It can be attitudinal
(customers’ feelings towards the brand) and/or behavioural brand loyalty (repeat purchase). Higher
brand loyalty can decrease the marketing expenditure, increase Nestle's ability to introduce new
products successfully, erect the barriers to new players and strengthen the company's bargaining
power against other channel members.

Nestle can increase brand loyalty by rewarding the customers' repeat purchase behaviour. Although
the loyalty programs are expensive, it will benefit Nestle be reducing the costs of acquiring new
customers.

5 Proprietary brand assets

Lastly, Nestle should evaluate its proprietary assets (like channel relationships, trademarks and
patents). These intangible assets prevent the competitive advantage erosion and develop brand
loyalty.

7.2 Brand equity development

In light of Keller brand equity model (shared above), the Nestle can take the following steps to
develop the brand equity:

 Develop the brand identity by building brand salience/awareness.

 Identify and communicate the meaning of Nestle brand. How it serves the customers’
tangible needs (performance) and emotional/psychological needs (imagery).
 Evaluate the customers’ feelings and judgments of Nestle brand to assess their response.
  Lastly, focus on building- behavioural loyalty, sense of community, attitudinal attachment
and active engagement to develop brand resonance that sits on pyramid top.

7.3 Brand equity measurement

Nestle can measure its brand equity by evaluating the:

 Difference between the price charged by Nestle due to its brand name and price charged by
similar unbranded products.
 Amount of extra sales volume generated compared to other branded and non-branded
competitors.
 The company’s share price.
 Brand’s potential to make future earnings.
 Return to shareholders.

The company can also combine the above methods and formulate a multiplier to accurately assess
the esteem and strength of the brand that reflects the brand equity.

8. Competitors Analysis in the Marketing Strategy of Nestle

The detailed competitor analysis is highly important for the development of Nestle Marketing
Strategy. The competitive analysis is done to understand the relative positioning and market share
of the company's direct and indirect competitors. Nestle should first identify the competitors,
evaluate their strategies and compare the strengths and weaknesses of their products with their
product offerings. There are five steps Nestle can follow to understand the strategic positioning of
its key competitors:

 Firstly, clearly define the target market.

 Identify the director competitors and create a list of it.
 Analyze the competitors’ product offerings, their market share, key strengths and
weaknesses.
 Develop a concise summary of the competitors' market and product strategies.
 Conduct a comparative analysis against its products and/or services.
 Continuously update the competitive analysis to make informed and strategically wise
decisions.

The company can use different strategies to get the information about competitors, such as- doing
Google research, going to trade shows, browsing public documents, asking customers, playing
secret shopper technique and tapping the vendors
A detailed competitor analysis can be categorised into the following parts:

 Identify market growth, share and financial objectives. Some examples are maximising
short-term profitability or investing in R&D for long-term growth.
 Evaluate the competitors’ strategies by collecting information from shareholder reports,
white papers, press releases, promotional campaigns, hiring practices, acquisitions and
mergers. This information will reveal the direction in which the competitors are moving.
 Use the above information to analyze competitors’ strengths, weaknesses and core
capabilities.

10. Market Analysis of Nestle

Nestle Marketing Strategy development requires a comprehensive market analysis. It can be done
by quantitatively and qualitatively assessing the customer market. The information obtained from
the market surveys will help Nestle management in identifying the emerging opportunities, exposing
the potential threats and understanding how they relate to the company’s major strengths and
weaknesses.

Nestle can follow the following steps to conduct the market analysis:

9.1 Market size analysis for developing Marketing Strategy of Nestle

Nestle should evaluate the market potential and volume to determine the size. The market potential
includes potential customers and considers upper demand limit. The market volume includes certain
indicators like realised sales and total turnover. Nestle can take information from different sources
to accurately determine the market size, such as- financial data of industry’s major players,
government data, customer surveys, published industry reports and trade association data.

9.2 Market trends analysis for developing Marketing Strategy of Nestle

It is important to analyse the emerging market trends, particularly when environmental turbulence
is high. Nestle can use different trend analysis techniques for this purpose, such as- marketing mix
modelling, risk analysis, choice modelling and customer analysis. Nestle should also monitor the
political, legal, regulatory, social and economic changes as these environmental forces play an
important role in shaping the market trends.

9.3 Market growth analysis for developing Marketing Strategy of Nestle

Nestle can extrapolate the historical data to determine the market growth rate. This information can
help a company in determining the current lifecycle stage of the industry.
9.4 Market profitability analysis for developing Marketing Strategy of Nestle
Nestle can use Porter's five force framework to determine market profitability. The high buyer
power will negatively affect market profitability, showing Nestle’s customers have different
options. Low supplier power positively influences profitability and indicates Nestle has a strong
position during the negotiation process with suppliers. High entry barriers show that there will be
lesser new entrants in the market. High substitute product threat and high competitive rivalry will
also decrease the market profitability and attractiveness for Nestle.

9.5 Cost structure analysis for developing Marketing Strategy of Nestle

Nestle can use Porter’s value chain model to determine the industry’s cost structure.

It will help Nestle in isolating the costs and identifying critical success factors. Nestle can also use
the information obtained from cost structure analysis to develop cost advantage.
 Chapter 2
Literature Review
LITERATURE REVIEW
1.Paul Rozin (1991) examined that Chocolate is the most craved meals amongst women, and is
craved by
way of nearly 1/2 of the woman pattern (in both age corporations). even though this craving is
related to a candy yearning, it can't be accounted for as a longing for sweets. about half of the
woman cravers display a very properly-defined yearning top for chocolate within the premenstrual
duration, starting from a few days earlier than the onset of menses and extending into the primary
few days of menses. There isn't always a big relation in chocolate craving or liking between
mother and father and their children.
2.Sarah Hagget (1994) examined that a debatable, authorities endorsed marketing campaign to
tackle obesity by using encouraging children to trade chocolate bar wrappers for sports activities
gadget. An employer like Cadbury is capable of handing over 12 million messages into the
marketplace and attractive younger humans in superb talk. underneath the scheme, college-kids
get “unfastened” device after they collect tokens from Cadbury chocolate bars. it's been calculated
those kids want to acquire tokens from 5440 chocolate bars for a internet and set of volleyball
posts.
3.Lipp (1998) probed that his work opinions the literature on the compositional data of vegetable
fat used or proposed as options to cocoa butter in chocolate and confectionery merchandise. Cocoa
butter is the simplest continuous phase in chocolate, for this reason responsible for the dispersion
of all different components and for the physical behavior of chocolate. unique to cocoa butter is its
brittleness at room temperature and its short and whole melting at body temperature. There had
been, and are, robust efforts to update cocoa butter in part for chocolate production for
technological and monetary motives.
4.Philip K. Wilson (1999) examined that in 1753, the mentioned oncologist, Carl Linnaeus,
named it Theobroma cacao, the food of the Gods. and a half of centuries later, Joanne Harris
emphasized this extraordinaries’ erotic sensations in her award-prevailing fiction debut,
Chocolate. For millennia, healers have touted its myriad medicinal, yet mystical, capabilities. via
the 1950s, chocolate, what had long been used as a drug, a meal and as a supply of currency,
changed into being advertised simply as a pleasure stuffed snack. Over the next 1/2 century, the
yearning to carve out chocolate’s wholesome, medicinal characteristics resurged.
5.Jan Wollgast (2000) examined that Cocoa beans are rich in polyphenols, especially catechins
and proanthocyanins. but, a pointy lower in amount happens at some stage in fermentation and
drying of cocoa beans and in addition retention has been said in the course of roasting.
Characterization and mainly quantification of polyphenols in chocolate has most effective been
evolved distinctly these days. This work opinions similarly on the literature at the to be had
methodology for analysis, quantification, isolation, purification, and shape elucidation of
polyphenols in cocoa additives and different commodities.
6. “Indian Food and Beverages Forecast” published by RNCOS (2007) A series of recent
studies has indicated that, India’s meals –processing area has passed through full-size adjustments
over the last six to seven years. the kind, range, high-quality and presentation of products have all
advanced, mainly because of monetary liberation. The file augurs that the Indian meals processing
industry would witness a CAGR growth of 15% for the length spanning from 2007 to 2011. many
countries are increasingly more eying upon India for food. currently, India has determined to
export 6000 metric tons of rice to Sri Lanka.
7. Maggi:- The Brand Maggi is strongly established as a Family Brand with crisp brand equity in
Indian market. The brand has always been known to have the first movers advantage in the
portfolios like noodles, ketchups, soups, sauce, etc. The parent brand Nestle has been the strong
symbol of family, shelter and warmth which brand Maggi has innovatively capitalised. A nation-
wide controversy flare up by the end of December regarding the safety of Nestles Maggi Instant
Noodles with Tastemaker after a presence of impermissible level of lead was detected in the
product pursuant to the sampling and testing of Maggi by the Commissioner of Food Safety, Uttar
Pradesh. In keeping with the development, the FSSAI advised the Commissioners of Food Safety
in various states to draw samples of Maggi and get the same tested from authorized laboratories
which resulted in 14 Indian States banning the sale of Maggi. The company is saying that the
product is safe for consumption and FSSAI is saying the product is dangerous for consumption.
Both have been defending one’s own side. These have created a dilemma among the consumers
whether Maggi should be consumed or not but, this row has impacted a lot in India and also will
impact in future also, till the final outcome will come. This is all about what began as a minor
labelling dispute that according to a local magistrate could have been settled with an INR 25000
fine, spiralled into Nestle’s worst public relations crisis to date in India.
“Nestle India’s result for the second quarter does not reflect the real picture, as adjustments are
based on mainly assumptions, and other expenses seem to be inflated,” said Sunita Sachdev, an
analyst with UBS Securities India Pvt. Ltd. “The Maggi issue will have a recur-ring impact, and
the next quarter is expected to give a better picture of where Nestle is heading. Also, there is no
clarity on when Nestle will be able to bring back Maggi that accounted for about 30% of its sales.”
In a 15 June statement to the BSE, Nestle India had said that the recall and destruction of Maggi
noodles will cost the company about Rs.320 crore. With the Maggi ban hitting sales of company’s
other products as well, Nestle India’s new chief Suresh Narayanan today said bringing the instant
noodles brand back to the market is his top priority as he sought to strike a conciliatory note with
authorities. The company has also identified other categories and looking at opportunities of
introducing new products to overcome the challenge that has resulted in the company recording its
first quarterly loss in over three decades.
8.Infast-moving Consumer Goods :- This thesis was developed at the Demand and Supply
Planning department (DSP) of Nestlé Portugal whose mission is to develop planning scenarios
encompassing the whole supply, production and distribution cycle to support the most appropriate
decisions at each operation all level. Stock policies are among the most important parameters that
DSP defines periodically. Such parameter includes minimum and maximum stock cover levels.
The minimum stock cover levels tell how many days the stock will last if demand goes as
predicted. From that value the maximum stock cover levels is then calculated and stock policies
are set. Currently stock cover policies are defined by Supply Planners with a home built tool
called “Optimizer Tool” that shows overestimation. This situation implies extra cost and
inefficiencies that the company wants to address by the present thesis work. After study of the
context and specificities of the situation the goals agreed were: 1) Complement“ Optimizer Tool”
operation with an innovative process to reduce the suggested minimum stock cover levels. 2)
Develop a case study based on “Optimizer Tool” routine operation for demonstration purposes.
For reasons associated namely with confidentiality issues the approach used was mostly empirical,
in the sense that no analysis of fundamentals of the “Optimizer Tool” was undertaken. On that line
of work, after considering that stock policies are indeed the result of the interaction between
“Optimizer Tool” operation with human judgement on several inputs that can be adjusted, the
research question to meet the objectives was: How to optimize the integration of “Optimizer Tool”
operation with the inherent human judgement? This question was based upon two hypothesis that
were formulated, tested and validated. The literature review showed that classification schemes
for the individual items (Stock Keeping Units or SKU’s for Nestlé) could be used with the Simple
Additive Weighting (SAW)methodology in the search of a solution to the problem under study.
Furthermore, it was clear that addressing uncertainty factors related to inventory could be based on
what was called the rolling horizon framework (basically, learn as you go). These findings lead to
the development of a tool or add-on putting together classification schemes and a learn as you go
process. The validation of the hypothesis mentioned above was then performed. That included a
sensitivity analysis that made clear that the options made by Supply Planners when using the
“Optimizer Tool” in respect to two inputs, the so called Adjusted Demand Plan Accuracy (DPA)
and Adjusted Master Schedule Attainment (MSA), were critical to the quality of results in terms
of stock policies. A specific set of classification schemes was then developed and combined with
SAW methodology in three different arrangements. The combination schemes were prepared to be
applied to the final results of an “Optimizer Tool” run. That option was dictated by the existence
of company targets for Adjusted DPA and Adjusted MSA (that in principle should be adopted).
Additionally, such option keeps present operation of the system totally unchanged, just
introducing a reference that allows a deeper analysis in respect to stock policies (as illustrated in
the case study and subsequent discussion). The case study was successful and the possibility of
taking sound decisions on keeping or reducing minimum stock cover levels was demonstrated. It
should be noted that the tool or addon is not a substitute of human experience and knowledge. It is
a support to a more informed decision. Further more it opens new possibilities in respect to
formalization, sharing, continuous learning and adaptation to new conditions, in line with the
rolling horizon framework of addressing uncertainty factors in respect to inventory.
 Chapter 3
Research Methodology
 RESEARCH METHODOLOGY
Research includes both primary and Secondary data, where primary and secondary data where
primary is collection is through sampling to make this study purposive one. Where as if we talk
about secondary data the collection of data is via websites, magazines, blogs. This research is
based on secondary data.
RESULTS AND FINDINGS:
Maggi the most important segment of Nestle:
Maggi was introduced in 1982 and since then with all the ups and down which it faced be-cause
India was not comfortable with the concept of instant food idea. With social and economical
growth year by year Maggi started to grow with a trust people had over Nestle and its products.
Maggi Noodles started to grow and resulted to most profitable food segment of Nestle. Maggi
captured 75% of the noodle market of India. Maggi is the most easily available snack in the
market targeting all type of customer segments with smallest to the largest pack of rupee 5 a pack
to rupee 125. By the end of 2014 Maggi faced a controversy which forced Nestle to call off Maggi
from the market. The whole issue was basically on food and health security. MSG (Monosodium
Glutamate) and led in its product which has brought them in the lime light of the FSSAI (Food
Safety Standard Authority of India). MSG is a naturally present in the food items such as tomatoes
and cheese. The problem is not that it contains it the problem is with labelling of it which says
“No Added MSG” it is misleading the customers according to packing and labelling regulation.
The second issue was Lead content in it which was more than the permissible limit. Since Maggi
also serves children and Lead is most harmful to them other than adults. According to Food Safely
and Standard every manufacturer has be responsible and ensure that the food that he sells is safe in
all respects and confine to the standards prescribed under the law. So due to these violations of
major food regulations, various states have banned the sale of Maggi on 5th june 2015- Uttar
Pradesh, Delhi, Gujarat, Tamil Nadu, Maharashtra, Kerala, Madhya Pradesh, Jammu & Kashmir,
Telangana, Bihar and several other states.
How Nestle got affected
Nestle faced major loss after the case was filed. Nestle Maggi BSE share prices went down, the
brand image was hampered and a huge loss of Rs.64.4 crore loss in the three months ended 30
June. Nestle has admitted that if they would have been proactive the loss incurred could have been
avoided. Nestle India had to recall the Maggi packets available in the market and destruction of
Maggi noodles will cost the company a loss of about Rs.320 crore. With the Maggi ban hitting
sales of company’s other products as well, Nestle appealed permission for some relaxation from
Bombay high court and was allowed to export Maggi.
 Chapter 4
Result And Discusion
DATA ANALYSIS AND INTERPRETATION
The data collected was analyzed using several variables. The result of analysis
are given below.
4.1 Liquidity Ratio
4.1.1 Current Ratio
Current ratio=current assets/current liabilities
Table 4.1 Showing Current Ratio
Current
Current Assets (Rs. Liabilities(Rs.in cr)
Year Ratio
in cr)

2015-2016 3278.99 1632.70 2.00

2016 -2017 3937.39 1492.71 2.63

2017-2018 4736.95 1854.95 2.55

2018-2019 3817.17 2147.51 1.77

2019-2020 4185.08 2492.55 1.67

( Sources-complied Annual report)

As conventional rule, a current ratio of 2:1 considered as satisfactory. This ideal ratio means
that the assets shall be at least twice the current liability. In the past two years the company is
not able to attain the ideal ratio.

Figure 4.1 Current Ratio

1
ratio
0

2015-2016
2016-2017 ratio
2017-2018
2018-2019
2019-2020
4.1.2 Absolute Liquidity Ratio

Absolute liquidity ratio=cash+marketable securities/current liabilities

Table 4.2 Showing Absolute Liquidity Ratio

Cash&
Marketable Current
Year Ratio
Securities (Rs.in Liabilities(Rs.in cr)
cr)

2015-2016 880 1632.70 0.53

2016-2017 1457.42 1492.71 0.97

2017-2018 1610.06 1854.95 0.86

2018-2019 1308.05 2147.51 0.60

2019-2020 1769.87 2492.55 0.71

( Sources- complied Annual report)

It is the relationship between absolute liquid asset and current liabilities. Ideal ratio of absolute
quick ratio is 0.5:1. The highest ratio obtained in the year 2016-2017.The company follows the
ideal ratio.
Figure 4.2 Absolute Liquidity Ratio

0.5

ratio
0
2015-2016 2016-2017 ratio
2017-2018

2018-2019 2019-2020
4.1.3 Liquid Ratio
Liquid ratio = liquid assets/current liabilities
Table 4.3 Showing Liquid Ratio
Current
Liquid Assets(Rs.in
Year Liabilities(Rs.in cr) Ratio
cr)

2015-2016 880.00 1632.70 0.53

2016-2017 1457.42 1492.71 0.97

2017-2018 1610.06 1854.95 0.86

2018-2019 1308.05 2147.51 0.60

2019-2020 1769.87 2492.55 0.71

(Sources-complied Annual report)
Generally, liquid ratio of 1:1 is considered as satisfactory. This means that liquid assets are just
equal to the current liabilities. For this company the past five years show a less than liquid ratio,
when compared to the satisfactory ratio. It further means that, the company is not able to pay off
its current liabilities. Figure 4.3 Liquid Ratio

2015-2016
2016-2017
2017-2018
2018-2019
2019-2020

4.3.1 Debt Equity Ratio

Debt equity ratio = long term debt/shareholders fund
Table 4.4 Showing Debt Equity Ratio

Year Long Term Debt Shareholders

Ratio
(Rs.in cr) Fund(Rs.in cr)

2015-2016 135.04 3013.70 0.04

 2016-2017 46.35 3420.59 0.01

2017-2018 40.14 3673.74 0.01

2018-2019 46.98 1932.26 0.02

2019-2020 46.55 2019.34 0.02

( Sources-complied Annual report)
The standard debt equity ratio is 1:1. Here, the company shows lower ratio. It indicates that it is
better for the creditors. But this lower ratio is not a satisfactory ratio for the shareholders as it
indicates the firm has not been able to use outside fund to manage their earning
4.4 Debt Equity Ratio

0.045
0.04
0.035
0.03
0.025
0.02 ratio
0.015
0.01
0.005
0
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020

4.3.2 Proprietary Ratio

Proprietary ratio = shareholders fund/total asset
Table 4.5 Showing Proprietary Ratio
Shareholders Total Asset(Rs.in
Year Ratio
Fund(Rs.in cr) cr)

2015-2016 3013.70 6805.97 0.44

2016-2017 3420.59 7362.59 0.46

2017-2018 3673.74 8088.08 0.45

2018-2019 1932.26 7058.20 0.27

2019-2020 2019.34 7899.73 0.25

(Sources-complied Annual report)
Ideal ratio of proprietary ratio is 0.5:1. Here, the company is not able to attain the ideal ratio. That
means the company’s financial position is not sound.
Chapter 5
Conclusion
 Conclusion
From the results it was observed that few of the respondents were neither dissatisfied nor highly
dissatisfied towards few aspects, Flavors in the product, packing of the product, Life of the
product, Advertisement for the products. Few respondents feel that the varieties of Nestle products
were loss when compared to other products in the markets. Packing of the products were a major
concern which may get exposed during the time of care of self- life is another concern where few
customers complained that the product in different colors and the company may give more
importance. They may be given based on flavor of the product, different colors in packing and
advertisements which may attract more customers towards Nestle products which may turn as a
word of mouth for the product. It is concluded that almost all the respondents have revealed that
they have overall satisfaction for the nestle product. This shall be maintained by overcoming few
problems which reveals the negative aspects that required to be reified by the product by
implementing measures to achieve greater heights in the future. Hence, nestle should
create more awareness about its products to the people, and also nestle should provide discounts
and offers to increase the sales and also sales methodology should be improved. Nestle is just not
an FMCG line but a desire and a passion to give a value for money product to consumers at large.
In this research, we have only focused on indigenous marketing mix of nestle products, in future,
other kind of nestle products can also be taken into consideration
 BIBLIOGRAPHY

 www.google.com
 www.youtube.com
 https://wikipedia.org/wiki/Nestle
 https://www.nestle.in
 ANNEXURE

Specimen Questionnaire:

Q1 Do you know Nestlé?

(a) Yes
(b) No

Q2 Do you like Nestlé?

(a) Very much

(b) Yes, somewhat
(c) No, rather not
(d) No, not at all

Q3 Which of the following reasons would you purchase Nestlé products for?

(a) Advertisement
(b) Colour
(c) Price
(d) Packaging
(e) Taste

Q4 Which brand comes to your mind when you say noodles?

(a) Maggie noodles

(b) Yippie noodles
(c) Patanjali aata noodles
(d) Other

Q5 Do you think Nestle is promoting its products through effective brand promotion strategy?

(a) Yes
(b) No

Q6 Do you think Nestle promotes its brands better than its competitors in the Indian market?

(a) Yes
(b) No
(c) Not sure

Q7 You like advertisement of Nestle?

(a) Always
(b) Mostly
(c) Sometimes
(d) Hardly
Q8 Are you satisfied with the overall product quality of Nestle

(a) Strongly agree

(b) Moderately agree
(c) Moderately
(d) disagree
(e) Strongly disagree

Q9 Do you think Nestle products are a value for Money?

(a) Strongly agree

(b) Moderately agree
(c) Moderately disagr
(d) Disagree

Q10 Kindly express your overall satisfaction about Nestle products

(a) Excellent
(b) Good
(c) Average
(d) Poor

Q11 Do you think that the Nestle products comes in most appropriate pack sizes?

(a) Strongly agree

(b) Moderately agree
(c) Moderately disagree
(d) Strongly disagree

Q12 How many NESTLE products are consumed by you or at your home in a day?

(a) 1 – 3
(b) 4 – 6
(c) 7 – 9
(d) Other