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 Ms. RAMITA VERMA
SUBMITTED BY 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 project entitled entitled “Marke “Markett Postioni Postioning ng of Nestle’s Nestle’s 3 M’s Moga Moga Factory”. Factory”.He 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 prepared this project project on the top topic, ic, “Study “Study of Market Market Postioni Postioning ng 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 support right from the stage the project were conceived. I would would like to give give a spec specia iall thank thankss to Mr. ABHI ABHISH SHEK EK SHARMA SHARMA (Mar (Marke keti ting ng 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 (Accounts Officer ), Mr. Ashok Pandit (RM/PM Warehouse Incharge) and Mr. Jaswinder Singh (Accounts) 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 Admin 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 “Market Postioning of Nestle’s Munch, Milo & Maggi” for the partial fulfillment of Degree of Master of Business Administration program of Punjab Pun jab Techni Technical cal Univer Universit sity, y, Jaland Jalandhar har from from Shri Shri Raghunat Raghunathh Rai Memori Memorial al School Of Managemen Managementt Bannur(Pati Bannur(Patiala) ala) is an original 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.................................................................................................. PHILOSPHY..................................................................................................10 10 PRODUCT RANGE OF NESTLÉ................................................................................ NESTLÉ................................................................................ 10 OPERATIONS IN INDIA ............................................................................................11 ............................................................................................11 NESTLÉ INDIA HAS SIX FACTORIES IN THE COUNTRY. COUNTRY................................... ..................................12 12 INDIA HAS THE CO-PACKING ARRANGEMENT ALSO:.................................... ALSO:....................................13 13 SALIENT FEATURE OF MOGA FACTORY............................................................. FACTORY.............................................................14 14 NESTLE – THE ORGANIZATION............................................................................. ORGANIZATION............................................................................. 19 CONTRIBUTION OF NESTLÉ TOWARDS ECONOMIC & SOCIAL DEVELOPMENT AREA.............................................................................................. AREA.............................................................................................. 19 NESTLÉ TODAY .........................................................................................................20 .........................................................................................................20 CORPORATE OBJECTIVES....................................................................................... OBJECTIVES....................................................................................... 21 PRESENT FINANCIAL POSITION OF THE COMPANY........................................ COMPANY........................................21 21 LATEST DEVELOPMENTS........................................................................................ DEVELOPMENTS........................................................................................22 22 “ ORGANISATION STRUCTURE OF NESTLE INDIA, MOGA FACTORY.” FACTORY.”....... .......23 23 INTRODUCTION ........................................................................................................24 ........................................................................................................24 FUNCTIONS................................................................................................................. FUNCTIONS ................................................................................................................. 24 ............................................................................................................26 .......................................................................................................26
POSITIONING ACCORDING TO RIES AND TROUT...... TROUT............. ....................... ................................ ................28 28 POSITIONING ACCORDING TO TREACY AND WIERSEMA .............................30 .............................30 POSITIONING: HOW MANY IDEAS TO PROMOTE?............................................ PROMOTE?............................................ 31 COMMUNICATING THE COMPANY’S POSITIONING ........................................32 ........................................32 ADDING FURTHER DIFFERENTIATION ...............................................................34 ...............................................................34 DIFFERENTIATION TOOLS...................................................................................... TOOLS...................................................................................... 35 MISTAKES.................................................................................................................... MISTAKES ....................................................................................................................36 36 MARKET POSITIONING............................................................................................ POSITIONING............................................................................................ 36 POSITIONING STRATEGIES ....................................................................................36 ....................................................................................36 FOUR TYPES OF OPPORTUNITIES .........................................................................36 .........................................................................36 RESEARCH METHODOLOGY FOR THE REPORT................................................. REPORT.................................................40 40 Q1: Are you aware of Nestle’s Munch, Milo and Maggi?.......................43 Maggi?.................. .....43 Munch: Yes No............................................................43 Milo Yes No............................................................43 Maggi: Yes No.............................................................43 Q2: Have you come across the advertisements? 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
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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......... good..... ....... ....43 .43 Q6: What modifications do you want in Maggi?...................................43 Improve taste Less price Packing .........43 No modification ............................................................... ....................................................... ................. ..........43 .43 Q7: Which is favourite chocolate?........................................................43 Cadbury dairy milk Nestle’s Munch Others........... Others...... ........43 ...43 Q8: How do you rate the taste of Nestle’s Munch?..............................43 Excellent Good Satisfactory Not good...........44 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 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 Bournvita than Milo as a health drink.............54 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
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across its advertisement 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 hea lth 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. 9
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 also crea create tedd a symb symbol ol of the the Bird Bird’s ’s nest nest,, grap graphi hicc tran transl slat atio ionn of his his name, name, whic whichh 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 Nestlé India 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 registered 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 11
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 people are associ associate atedd wit withh Nestlé Nestlé,, having having ind indire irect ct employ employmen mentt as Milk Milk suppli suppliers ers,, 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 Choladi started started production in 1967. Situated 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. exp orted. 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.
Nest Nestlé lé Polo Polo-- Bakem Bakeman an’s ’s (Nagp (Nagpur) ur)
2.
Choco Ch ocola late tess-Ca Camp mpco co (Put (Puttu tur) r)
3.
Taster Tasterss ChoiceChoice-Wi Willi lliams amson on Major Major company company (Silli (Silliguri guri))
4.
Toff Toffee ee-N -Nut utri rine ne (Suri (Surinde nderr Naga Nagar) r)
5.
Pick Pickle less-Ch Chor orid idee food foodss Ltd. Ltd.(P (Pun una) a)
6.
Cold Sauce 200 gm – Nijjer Agro Pvt.Ltd. Amritsar 7. Dosa & Samber Samber mix–India mix–Indian n foods foods & fermentati fermentation on Ltd. Ltd. Nagpur 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 fundamental constituen constituentt 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 passing 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 passed 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 passed. 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 accounts 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 p lant 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 h oppers 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) Seasoni Seasoning ng 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 dep artment in this factory are 18
NESTLE – THE ORGANIZATION Some names seem to belong to legend and Nestlé now synonymous with a presti prestigio gious us tradem trademark ark and worlds worlds foremo foremost st food food group group origin originall allyy consis consisted ted 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 ZONE EUR EUR
: Euro Europe pe
ZONE AOA
: Asia and Oceania Oceania
ZONE ZONE AMS : Americ Americas as India comes under zone AOA which includes South- East Asian trading giants of the likes of Thailand, Thailand, Indonesia, Indonesia, Malaysia, Malaysia, Singapore, Singapore, China etc. besides Australia. 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 go od quality milk & to participate with full zeal in future cattle shows. Compan Companyy has also also progra programme mmedd to hig highly hly qualifi qualified ed scient scientis istt for provid providing ing 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. 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: 199 6 1997 1998 199 9
2000 20
200 1
200 2
200 3
200 4
2005
495
71 6
1001
120 4
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 ne eds 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.ADMNN & 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
PRODUCTION PLANNING & CONTROL
INTRODUCTION Human Resources Resources Department Department is a most important important part of an organization. organization. It is concern concernss wit withh human human side of business business.. The various various function functionss are perform performed ed in this this department. department. Business Business activities, activities, which which are varied and complicated complicated in nature, cannot be managed without without Human Resources Resources Department. Department. Human resources resources is an important 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 resu result lt..
It leads leads to econom economyy of oper operat atio ions ns..
It is a cont contin inuou uouss functi function on of offi office ce
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 main functi function on of human human resour resource ce includ includes es procur procureme ement, nt, develo developme pment, nt, compensation compensation and maintain maintain of persons persons necessary necessary to do the job. Right person person is to be employed employed at the right time time and right place. place. Care for fair wages, wages, health, safety, safety, persons effectively and efficiently.
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DIRECTING After planning, organizing and staffing the human resources manager has to guide and supervise supervise his subordinates.
In directing the functions includes leadership,
communication, motivation & supervision etc. COORDINATING Coordination means performing tasks tasks in harmony. It is a group effort for united united action. A manager directs the organization organization into action for the achievement of the the plan. CONTROLLING Controlling is verifying whether everything occurs in conformity with the plan and policies. Planning is necessary for control control process. COMPENSATION & WELFARE TRAINING In personnel has now developed into human resource functions. Humans are very import imp ortant ant part of person personnel nel.. The importan importance ce of human resource resource function functionss 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 ADMINISTRATIVE 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 users and new conveniences and enjoyments. Yet even when a company succeeds in distinguishing itself, the differences are short short – lived. lived. Compet Competito itors rs are qui quicker cker than ever ever in copying copying good ideas; therefor thereforee 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 passes 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 defi define ne posi positi tioni oning ng as foll follow ows. s. Posi Positi tion onin ingg is the the act act of desi designi gning ng the 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, agency, Coca – Cola as the world’s world’s largest largest soft – drink company, company, and Porsche 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 The seco second nd stra strate tegy gy is to grab grab an unocc unoccup upie iedd posi positi tion on.. Thre Threee Musk Musket etee eers rs Chocolate has advertised 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 advertised 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 remembered best. For example, when asked “Who was the first person person to fly alone alone across across the Atl Atlant antic ic Ocean Ocean succes successfu sfull lly?” y?” we answer answer “Charl “Charles es 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 strategy is the 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 support 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 hamburgers differently differently for each customer. Nor could McDonald’s 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 plastics division division pursues pursues customer customer intim intimacy, acy, and its jet engine division division pursues product 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. benefit. Rosser Reeves believes believes a company company should should develop develop a unique selling selling propositi proposition on (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 consist consistent ent positi positioni oning ng messag message. e. This This makes makes for easier easier commun communica icatio tionn to the target 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, technological,”” “most “most reliable,” reliable,” or “most prestigious” prestigious”.. If a company consistently 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 benefit benefits. s. In doi doing ng this, this, Smi Smith th Kli Kline ne “count “counters ersegm egmente ented”; d”; that that is, it attrac attracted ted three 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 positio positioned ned first first for studen students ts then then for engine engineers ers,, and then then for busine business ss people, 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 commun communica icate te a compan companyy or brand brand positi positioni oning, ng, a market marketing ing plan plan should 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 membership in a category (e.g., Mountain Mountain Dew is a soft drink) and then shows its point – of – difference difference from members of the group (e.g. has more caffeine). The product’s membership 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 members 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 manufacturer undercoats undercoats the chassie 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 premium – 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: h urt: A well – known frozen food brand lost its prestige image by being on sale too often. A premium beer’s image was hurt when it switched from bottles to cans. A high highly ly regar regarded ded tele televi visi sion on recei receive verr lost lost its its quali quality ty imag imagee when when mass 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 imp import ortant ant as posit position ioning ing is to a company company’s ’s succes success, s, most most ads fail 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. 34
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 d istinctive 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 which compani companies es face face many many differ different entiat iation ion opport opportuni unitie ties, s, and each 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. p erformances. 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 users. 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 Marketing Research. With ever increasing increasing complexity complexity of marketing marketing and business 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, 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 market positi positioning oning of Nestle’s Nestle’s Munch, Munch, Milo Milo and and Maggi Maggi in Delhi.
-
To know the the consumptio consumptionn habits habits and consumpti consumption on frequency frequency of the consumers consumers in Delhi. Delhi.
-
To know the effect effect of promotional promotional efforts. efforts.
-
To know the consumer’s consumer’s response. response.
-
To know know the consumer’s consumer’s preferences preferences for the products products of FMCG FMCG (Fast Moving Consumer Consumer Goods) sector.
-
To know know the external external forces and their importance. importance.
-
To know the market market competi competitors tors and and their their position position in in comparison comparison to Nestle Nestle..
-
To study study in detail detail the likes and dislikes dislikes of consume consumers. rs.
-
To know the brand image of Nestle. Nestle.
-
To provide provide proper basis for planning. planning.
-
To find out what people want from Nestle. Nestle.
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39
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 kn own as Methodology. It is very important to follow methodology otherwise it is very difficult to reach on concl conclus usio ion. n. Obvi Obviou ousl slyy if ther theree will will be no concl conclus usio ion, n, on what what basi basiss will 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 familiarit familiarityy with a phenomenon phenomenon or to achieve achieve new insights insights into it.
2.
To port portray ray accurat accurately ely the charact characteri eristi stics cs of parti particul cular ar prod product uctss (Mil (Milo, o, Munch Munch and Maggi).
3.
To dete determi rmine ne the the freq frequen uency cy wit withh whic whichh some somethi thing ng occur occurss or or wit withh which 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 40
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.
Quest Questio ionna nnair ires es:: For For the the coll collec ecti tion on of prim primar aryy data data thro through ugh surv survey ey
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 Interview of sales force and Retailers: Retailers: Finally Finally it was felt very important 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 vario various us part partss of MOGA MOGA.. I have have visi visite tedd impo import rtan antt plac places es in MOGA MOGA like like offi office ces: s: 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. Contact Method:
41
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 contact Research Methodology At A Glance:
DESCRIPTION NAME OF STUDY Data used Source of primary data Source of second ondary data
Primary & Secondary Retailers, Consumers New Newspaper, Magaz gazines, es, Annua nual Report ort,
Time duration Instrument used
Internet etc. Eight weeks. Personal interview with close-ended
Sample size Region
questionnaire having 11 questions. 1 00 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 ac ross the advertisements? 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 pop ular 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
45
Q1.
Are you aware of Nestle’s Nestle’s Munch, Milo and Maggi? Maggi?
Ye s
No
100 88.3
100
84.04
80 60 40 20
15.96
11.7 0
0 Ma ggi
Munch
Mi l o
As far as awareness is concerned it is fine with w ith each product.
46
Q2.
Have you come across advertiseme advertisement? nt? If yes, then where?
ADVERTISEMENT ADVERTISEMENT 100 80
63.83
60 40
20.21
15.96
20 0 TV
Ne w spa pe rs
M a g z i ne s
Mostly people have come across the advertisement in TVs followed by Newspapers and Magzines.
47
Q3.
When When do you consum consumee Maggi? Maggi?
Consumption time 100 80 46.17
60 40 10.64
20
27.66
15.53
0 Morning
Lunch ti me
Eve ning
Anytime
Generally people consume Maggi in Evening but some are also interested in Maggi at anytime.
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Q4.
How man manyy Maggis Maggis you consume consume in a week? week?
CONSUMPTION 100 80
60.6
60 32.04
40 20
2.04
3.2
0 Never tasted
1 to 5
6 to 10
11 to 15
1.06
1.06
16 to 20 Mor More e than 20
Generally Generally people consume 1-5 Maggis in a week. But consumption consumption ratio of 6-10 is also not ignorable.
49
Q5.
How do you rate rate the taste taste of Maggi? 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.
50
Q6.
What modificati modifications ons do you want in Maggi? 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 favourite chocolate? chocolate?
4.26
Cadbur dbury y
28.72
Munch Munch
Others 67.02
People are more interested in cadbury’s dairy milk than Nestle’s Munch.
52
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.
53
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
Mi lo
Others
54
Q10. When do you take health drinks generally?
45 41.49 40 35 30.85 30 Morning
25
Lunchtime 20
Evening 15.96
15
11.7
10 5 0 M orning
Lunchtime
Eve ning
Anytime
People generally take health drinks in Morning but some even prefer in evening. even ing.
55
Anytime
Q11. What do you say about the taste of Milo?
40 36.17 35 30 25 22.34
Good
20.21
20
Satisfactory 15.96
15
Not good Can't say
10 5
Excellent
5.32
0 Excell ellent ent
Good
Satisfa sfactory
Taste of Nestle’s Milo is Good.
56
Not Not good
Can't say say
LIMITATIONS AND PROBLEMS
57
1.
Sometimes Sometimes people don’t give appropriate appropriate informatio informationn and fill the questionnaire just for the sake of fun.
2.
Mostly Mostly retailers retailers don’t want to give informati information on and act rudely. rudely. Some even refuse to give response.
3.
People don’t have time to fill questionnair questionnaires es in their busy life. life.
4.
Number of questions questions should should be more than this, this, so that you come to know the accurate result.
5.
Generally Generally people don’t respond respond well for open ended questions questions like the suggestion if any.
6.
Instead Instead of three, three, there should be one product, product, so that proper stress 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 awareness is concerned concerned it is fine for all the three products. products. Mostly Mostly people have come across their advertisements in TVs, Newspapers and Magzines. But TV is more popular popu lar medium. Thus we can say that TV is a fruitful source of publicity and we also find that Nestle N estle spends a lot on the publicity of its products in order to reach to the consumers.
2.
Nestle’s Nestle’s Maggi is most popular popular brand among the consumers consumers and it is because 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, analysis, We find that people want reduction 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 Nestle’s chocolate chocolate “Munch” “Munch” is not a popular chocolate chocolate among the consumers 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 health drinks are concerned concerned people’s people’s favourite favourite health 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 advertisement adv ertisement 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 Ab ove 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 do es 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 w eakning 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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