TO STUDY

THE MARKETING POSITIONING OF NESTLE PRODUCTS

(A MAJOR PROJECT REPORT)
Submitted by
KAMALDEEP KAUR (105082250103)
In partial fulfillment for the award of the degree of
MASTERS OF BUSINESS ADMINISTRATION
(MARKETING)
(2010-2012)

RIMT- SCHOOL OF MANAGEMENT STUDIES

PUNJAB TECHNICAL UNIVERSITY, JALANDER

2012

ACKNOWLEDGEMENT
I would like to express my gratitude to all those who gave me the possibility to complete this
report. I would like to take this opportunity to present my vote of thanks to my guides who
acted as lighting pillars to enlighten my way through out this project. This project would not
have been possible without the kind assistance and guidance of many people who indeed
were helpful, cooperate and kind during the entire course of my project.
The acknowledgment would not be complete without expressing my indebtedness to my
Honorable professor Mrs. KIRAN SOOD who guided me in this project.

KAMALDEEP KAUR

RIMT-INSTITUTE OF MANAGEMENT AND COMPUTER TECHNOLOGY

Gobindgarh
Date:

SUPERVISORS CERTIFICATE
This is to certify that the Research Report entitled THE MARKETING
POSITIONING OF NESTLE PRODUCTS
submitted to the Punjab
Technical University in partial fulfilment of the requirement for paper of the MASTER IN
BUSINESS ADMINSTRATION 4TH Semester, is an original and bonafied research work
carried out by MISS. KAMALDEEP KAUR under my supervision and guidance .No part of
this study has been submitted to any university for the award of any degree or diploma
whatsoever.
_______________
MS. KIRAN SOOD

INDEX
S. No

CONTENTS

1.
COMPANY PROFILE
INTRODUCTION
OBJECTIVES OF STUDY

2.
RESEARCH METHODOLGY
Research Design
3.
DATA ANALYSIS AND INTERPRETATION

4.
FINDINGS AND SUGGESTION

5.
BIBLIOGRAPHY

6.
ANNEXURE

Page No

Introduction to Nestle India Ltd. Moga Factory

History of Moga factory

The Company started milk collection in Moga in 1961 with a collection of 511 Kgs of milk
from 180 farmers. It has substantially expanded its operations with over 85,000 farmers in its
own milk district. Nestl uses local raw materials and develops local resources wherever
possible. Milk Collection Centre with farm cooling tanks to preserve the quality of milk were
established by the Company.
Besides this, milking machines were provided to the farmers maintaining large dairy farms.
Farmers were advised on good breeding and feeding practices, and on the health of dairy
herds. Techniques for increasing milk yields at the farm were introduced. Nestl has invested
in Chilling Centre and Farm Cooling Tanks. In addition to this, the Company provides

assistance to farmers in the areas of cattle feed, quality fodder seeds, veterinary medicines
and

mineral

mixture

and

procurement

of

bankloans.

Nestl support goes further than the work with the dairy farmers. The Company is helping
with the construction of facilities for drinking water and lavatories in village schools in the
Moga Factory Milk District. This is a joint effort with the schools, parent associations and
village administrations.
Another project involved the funding of medicines for a Tuberculosis clinic which is treating
residents from Moga town and the nearby villages.
By working very closely with the farmers of the Moga Milk District and local administrators,
Nestl has helped to raise the quality and hygiene of the milk produced there and improve the
health and life style of the farmers and other residents. Its contribution to the creation of
prosperity on an on-going and sustainable basis has not only transformed Moga into a
prosperous and vibrant milk district today, but also a thriving hub of industrial activity.

(A) Objectives and quality policy

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

Maintain profit levels above for the food industry in India.

CONSUMERS

Work towards a situation of total consumer satisfaction.

Ensure speedy and flexibility at all times in meeting the needs of
our customers.
COMMUNITY

Ensure that all aspects of the companys 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

Quality Policy

(B)Detailed operations,products and services with brands

Nestl 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 Nestl Factories worldwide.
The Company started milk collection in Moga area on 15th Nov. 1961 and on the first
day 510 kg 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 liters of milk per day in 1962 to over 1200,000 liters 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:

1. MILK OPERATIONS
This plant as the name suggests is engaged in the processing of milk and all the
related activities that take place in Moga Factory. This plant can be categorized into a number
of sub- plants, which are discussed below in brief:

i) FRESH MILK RECEPTION

The fresh milk, which is the fundamental constituent of various products, which are
manufactured in this factory, is received in this area in tankers. There are 1100 agencies
which supply fresh milk. The fresh milk is supplied by various chilling centers including
Nestles 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 up to 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, 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
the rmic fluid can be headed up to 250 C and due to it normal Ghee is heated up to 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.

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.

2. 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 poly-packs or bag-n-boxes
required by the production program and one line is for bulk packing.

3. 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.

4. INSTANT DRINKS:
This plant is engaged in the filling of vending pre - mixes.

5. CULINARY:
This plant is engaged in the production of Noodles, Tastemakers, Soups, Sauces & the
like. The plant is divided into three sections
a) NOODLES
b) SEASONING

c) COLD SAUCES
The Operation of the seasoning is inter- related with both the noodle and cold sauce
section as the spice mix base for both is manufactured in the seasoning section. However all
three have a cast column of jobs taking place & can be briefly discussed as follows:

a) Noodles
The noodle plant has production lines. The manufacturing of Noodles is a semi automatic
process. The noodle line consists of the following processes:

Tipping of wheat flour in the hoppers at the start of the line.

Mixing of dough releasing on the line.
Sheet formation with the help of rollers
Strand formation
Steaming
Frying in oil
Cooling
Wrapping cakes in sachets along with tastemaker.
Palestine of cases
However presently the noodle plant has been shifted to the Samalkha factory due to
conversion of oil-fried to air-dried noodles.

b)

Seasoning
The seasoning section is engaged it the manufacture of Taste marker soups cubes

beside spice mixes for use in cold sauces. The major job in this area is the dry of various
spices & powders and then packing them in the desired shape and from.
Also the section is engaged in the manufacture of hydrolyzed plant proteins a basic
ingredient for most of the seasoning products.
The Products of this section are Maggie taste markers: Masala Chicken, Sweet &
Sour, Maggie soups (Chicken, Tomato, Mushroom & Vegetable), Maggie Cubes, Maggie
Super Seasoning, Mango Wonder-Mix, Maggie Export Mixes.

c) Cold Sauces
This section is engaged in the manufacturing of a whole range of Sauce under the
brand name of Maggie.
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 Maggie Sauce (Tomato Ketchup, Hot-N-Sweet, Masala
Chilli, Chili Garlic & Tomato Sauce) & Maggie Pointed Special (Butter Chicken Karahi
Paneer & Italian Pizza Popping)

(C)Turnover
Beverages like coffee, tea and health drinks contribute to about 30% of Nestles
turnover.
Beverages sales registered a 15% of growth during 2005. while about 14% of Sales
come from domestic market, exports contribute to about 16% of sales.
Nestles Nescafe dominates the premium instant coffee segment. Nestles other coffee
brand Sunrise has also been re-launched under the Nescafe franchise to leverage on the
existing equity of the brand. Nestle has focused on expanding the domestic market through
price cuts and product repositioning. However it has been losing share in the domestic
market, where it has a 37% market share. Milo, a brown malted beverage was launched in
1996. It has an estimated volume share of about 3%. In the malted food drink segment. Nestle
has launched non carbonated cold beverages such as Nestea iced Tea and Nescafe Frappe
during 2001. Nestle is one of the largest coffee exporter in the country. Key export market in
Russia, besides Hungary, Poland and Taiwan. Nestle has received an award for highest export
of instant coffee and highest export of coffee to Russia and CIS for FY04 and FY05Turnover

contribution from exports registered a 27.5%volume growth in F12/05. Nescafe sales to

Russia accounts for 80% (Rs2.5bn) of Nestles Rs3bn export turnover.

INFANT FOOD / MILK PRODUCTS

Milk based products and baby food contributes to 4.3% of Nestles turnover. For ensuring
regular procurement of good quality milk, Nestle has developed a network around its Moga
factory for collection of fresh milk everyday from the farmers. Nestle has a
dominating10%market share in the baby weaning foods with its Cerelac and Nestum brands.
Infant milk powder is sold under the Lactogen and Nestogen brands. Brand loyalties are very
high in categories such as infant food and weaning cereals, enabling the company to
command a price premium.
Other milk products include dairy whiteners (21% market share) sold under the
EveryDay and Tea Mate brands, sweetened condensed milk and ready to cook mixes for
traditional Indian sweets sold under the Milkmaid brand. The company also markets ghee
(6% market share) under the EveryDay brand. Nestle has expanded its milk product portfolio
with the launch of new dairy products such as UHT milk, Curd and Butter. Huge investments
are being made in building a diversified dairy business and the distribution infrastructure for
the same. Milk products sales registered a 10.6% yoy growth during 2005

CHOCOLATES & CONFECTIONERY

Nestle forayed into chocolates & confectionery in 1990 and has cornered a fourth share of the
chocolate market in the country. The category contribution 14% to Nestles turnover. It has
expanded its products range to all segments of the market. The KitKat brand is the largest
selling chocolate brand in the world. Other brands include Milky Bar, Marbles, Crunch,
Nestle Rich Dark, Bar One, Munch etc. The sugar confectionery portfolio consists of Polo,
Soothers, Frootos and Milkybar Eclairs. All sugar confectionery products are sold under the
umbrella brand Allens. nestle has also markets some of its imported brands like Quality
Street, Lions and After Eight. New launches such as Nestle Choco Stick and Milky Bar
Choco at attractive price points to won new consumers. Chocolate confectionery sales
registered a strong 21.5% yoy growth in 2005 aided by good volume growth in Munch, KitKat and Classic sales. Nestle re-launched Bar One during the year.

CULINARY PRODUCTS
Ready to cook food / cooking aides are sold under the umbrella brand name Maggie.
Culinary product account for about 14% of Nestles turnover. Maggie is the market leader in
the noodles. (55% market share) and the Ketchup (48% market share) categories. Other
products, sold under the umbrella brand Maggie, are ready to cook gravy / sauces, soups,
seasonings, as well as traditional Indian foods such as pickles and instant snack mixes. New
taste variants are continuously launched to add variety to the product offerings. Culinary
product sales registered a 20% growth during 2005

(D) Other information (awards and certifications)

MERI FACTORY, MERI SHAAN...

ONE OF THE
LARGEST
NESTL
FACTORY
AMONGST 500
WORLDWIDE

FACTORY
OPERATIONS
ARE IN LINE
WITH
QUALITY, AIR
& WATER
POLLUTION
STANDARDS
Nestl India Limited, Moga Factory

Nestl India was recently conferred the Udyog Ratna Award. This Award recognizes
Nestl's significant contribution to the economic development of Punjab. The Award was

presented to Mr. Martial Rolland, Chairman and Managing Director of Nestl India at a
function 'Centenary Partnership Summit-Punjab' held on the 7th of September 2005 at
Ludhiana. This function was organized by the PHD Chamber of Commerce and Industry to
promote economic development in Punjab.

Organization chart of nestle India limited Moga factory

Factory Organization

Study of functioning of all departments

DEPARTMENT WISE ALLOCATION

ENGG.
16%

PRODUCTION
61%

AGRI.
SEVICES
1%

SERVICES
15%
Q.A.
6%

Nestl India Limited, Moga Factory

Study of functioning of different departments

Production
Human resources
Industrial performance
Engineering
Accounts and administration
Quality Assurance
Agricultural Services
Security

INTRODUCTION

Human Resources Department is a most important part of an organization. It is

concerns with human side of business.

The various functions are performed in this

department. Business activities, which are varied and complicated in nature, cannot be
managed without Human Resources Department. Human resources is an important for the
running of a business as a main spring is essential for the function of a watch.

FUNCTIONS
PLANNING
ORGANISING
STAFFING
DIRECTING
CORRDINATING
CONTROLLING
COMPENSATION AND WELFARE TRAINING

In NESTLE MOGA the functions of Human Resources Department as are

following: i.

ESTABLISHMENT
- Personnel records
- Policies, salary, survey structure
- Other establishment matters.

ii.

DISCIPLINE AND LEGAL

iii.

TIME OFFICE AND PAYROLL

iv.

GENERAL ADMINISTRATIVE AND TRANSPORT

v.

TRAINING AND DEVELOPMENT

Marketing Positioning
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
lived. Competitors are quicker than ever in copying good ideas; therefore companies
constantly need to think up new value adding features are benefits to win the attention and
interest of choice rich, price prone consumers.
Companies normally reformulate their marketing strategies and offerings several
times. Economic conditions change, competitors launch new assaults, and the product passes
through new stages of buyer interest and requirements. Consequently, strategies appropriate
to each stage in the products 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 companys distinctive offering and image. If a company does a poor job of
positioning, the market will be confused as to what to expect. If a company does an excellent
job of positioning, then it can work out of the rest of its marketing planning and
differentiation from its positioning strategy.
We define positioning as follows. Positioning is the act of designing the companys
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
In general, a company must avoid four major positioning errors:

1. 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 didnt see clarity as an
important benefit in a soft drink.

2. 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

3. Confused positioning:
Buyers might have a confused image of the blood resulting from the companys
making too many claims or changing the brands positioning too frequently. This was the case
with Stephen Jobss sleek and powerful NeXT desktop computer, which was positioned first
for students then for engineers, and then for business people, all unsuccessfully.

4. Doubtful positioning:
Buyers may find it hard to believe the brand claims in view of the products features,
price, or manufacturer. When GMs 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 Chevys Cavalier and Oldmobbiles 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 COMPANYS POSITIONING

To communicate a company or brand positioning, a marketing plan should include a
positioning statement. The statement should follow the form: To (target group and need) and
(Brand) is (concept) that (point of difference). For example: To busy professionals who
need to stay organized, Palm Pilot is an electronic organizer that 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
havent been able to get a good nights sleep.
Note that the positioning first states the products membership in a category (e.g.,
Mountain Dew is a soft drink) and then shows its point of difference from members of the
group (e.g. has more caffeine). The products 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.
DiGiornos pizza DiGiornos 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: Its not delivery, its DiGiorno! This helped highlight DiGiornos 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 under coats the chassie not because it needs under coating but
because undercoating suggests concern for quality.
A car manufacturer makes cars with good slamming doors because many buyers
slam the doors in the showroom to test how well the car is built.
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 products quality image is also affected by
packaging, distribution, advertising, and promotion. Here are some cases where a brands
quality image was hurt:
A well known frozen food brand lost its prestige image by being on sale too often.

A premium beers image was hurt when it switched from bottles to cans.
A highly regarded television receiver lost its quality image when mass merchandise
outlets began to carry it.
A manufacturers reputation also contributes to the perception of quality. Certain
companies are sticklers for quality; consumers expect Nestle and IBM products to be well
made. Smart companies communicate their quality to buyers and guarantee customer
satisfaction or your money back.
As important as positioning is to a companys success, most ads fail to communicate
the company or the brands 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 un-positioned 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 companys offering from competitors offerings.
All products can be differentiated to some extent, but not all brand differences are
meaningful or worthwhile. A difference will be stronger to the extent that it satisfies the
following criteria:

Important:
The difference delivers a highly valued benefit to a sufficient number of buyers.

Distinctive:
The difference is delivered in a distinctive way.

Superior:
The difference is superior to other ways of obtaining the benefit.
Preemptive:
The difference cannot be easily copied by competitors.

Affordable:
The buyer can afford to pay for the difference.
Profitable:
The company will find it profitable to introduce the difference.

DIFFERENTIATION TOOLS
The number of differentiation opportunities with the type of industry. The Boston
Consulting Group (BCG) has distinguished four types of industries based on the number of
available competitive advantages and their size.

Volume industry:
One in which companies can gain only a few, but rather large, competitive
advantages. In the construction equipment industry, a company can strive for the low cost
position or the highly differentiated position and win big or either basis. Profitability is
correlated with company size and market share.

Stalemated industry:
One in which there are few potential competitive advantages and each is small. In the
steel industry, it is hard to differentiate the product or decrease manufacturing costs.
Companies can try to hire better sales people, entertain more lavishly, and the like, but these
are small advantages. Profitability is unrelated to company market share.

Fragmented industry:
One in which companies face many opportunities for differentiation, but each
opportunity for competitive advantage is small. A restaurant can differentiate in many ways
but end up not gaining a large market share. Both small and large restaurants can be
profitable or unprofitable.

Specialized industry:
One in which companies face many differentiation opportunities, and each
differentiation can have a high payoff. Among companies making specialized machinery for
selected market segments, some small companies can be as possible as some large
companies.

MISTAKES
1) Overly optimistic Forecasts.
2) Faulty Assessment of consumer performances.

MARKET POSITIONING
The place the product occupies in the consumers mind relative to competing products.

POSITIONING STRATEGIES
1) On product attributes.
2) On needs / benefits
3) On Usage occasion.
4) For Classes of users.
5) Against competition
6) Away from competitors

FOUR TYPES OF OPPORTUNITIES

1) Market Penetration
2) Market development
3) Product development
4) Diversification

As far as the study is concern this study is already done by

Mr PUNIT

VATSAL SHARMA student of APEEJAY INSTITUTE OF MANAGEMENT Jalandhar.

His results and findings are as follows.

1.

As for as awareness is concerned it is fine for all the three products.

2.

Maggie is most popular brand and it is because of its masala.

3.

Rates of Maggie, Munch and Milo are also appropriate.

4.

Munch is not a popular chocolate according to the survey because its taste is just
satisfactory not excellent.

5.

As for as health drink milos is concerned peoples favourite is Bourn vita because
of its taste and chocolate flavour.

6.

Mostly people consume health drink in the morning.

CONCLUSIONS
1.

As for as Maggie is concerned people want improvement in masala and also

introduce the chicken flavour.

2.

Demand to Munch is just OK. It needs improvement in its taste.

3.

Provide more and more fridges and book shelves for Nestle chocolates mainly to
the retailers.

4.

Cadburys chocolates are more popular especially doing mil,.

Milos position as for as common man is not good is concerned because mostly people want
to drink Bornvita

The topic Market positioning of Nestles Munch, Milo and Maggie in Ludhiana is related to
Marketing Research. With ever increasing complexity of marketing and business activities, the
collection, analysis and interpretation of information has become much more intricated
warranting the services of specialized skills and refined techniques. This urgent need has given
birth to market research as a unique function of modern marketing. Though we cannot claim it as
the panacea for all the business ills, it can be regarded as the radar to the navigator, the dictionary
to the writer. Its importance 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 ongoing 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.

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

To know the market positioning of Nestles Munch, Milo and Maggie in Ludhiana.

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

Ludhiana..

To know the consumers response.

Every project requires genuine research. Success of any project and getting genuine results
from that depends upon the research method 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,
Research methodology is the specification of method of acquiring the information needed to
structure or solve the problem at hand. It is not concerned to decision of the fact, but also
building up to data knowledge and to discover the new fax involved through the process of
dynamic change in the society
The main objectives of Research are:
1.

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

2.

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

Maggie).

3.

To determine the frequency with which something occurs or with which it is

associated with something else.

RESEARCH METHODOLOGY FOR THE REPORT

Initially, for the project work a questionnaire has to be prepared. This method of data
collection is quite popular. Individuals, research workers, private & public organizations and
even government, are adopting it. Questionnaire is of many types but in this research,
unstructured questionnaire is used with personal interview. In unstructured personal
interview, question are not arranged but keep in mind and asked from respondent the detailed
information which is needed. Some questions are open-ended and respondent are set free to
give information.
The questionnaire for this project consists mainly open-ended but there was few close-ended
also. To facilitate representatives samples for study. The questions were asked such as
awareness pricing of different products, modifications, regular users

and what people

think about different products.

I divide the questionnaire in three parts as different age groups consist of 10-18 children and
teenagers, 18-25 youngsters, 25-40 housewives and professional.

Basics of Research
NAME OF STUDY
Data used
Source of primary data
Source of secondary data

DESCRIPTION
Primary & secondary
Consumers
Annual Report, Internet etc.

Instrument used

Personal

Sample size
Sample procedure
Type of questionnaire
Region

unstructured questionnaire
105
Convenience sampling
Close-ended & open-ended
Ludhiana

interview

with

Research Plan: - The research calls for developing the most efficient plan for gathering
the needed information. Designing a research plan calls for decision the:-

1. Sampling Unit
2. Sample Size
3. Technique of Sampling
4. Data Collection

Sampling Unit: As for as the sampling unit is concerned, every consumer is our sampling
unit.
Sample Size: Total sample size is 105 divide in 3 parts of 35 each consist of different age
groups,
Technique of Sampling: Convenience sampling was the technique adopted for sampling.
Data Collection: Data has been collected both from primary as well as secondary sources as
described below.
Primary Source: The primary sources of data were Questionnaire filled by consumers of
Ludhiana.
Secondary Source: The secondary sources of data were the various websites
And annual report of nestle India limited. These helped in gaining knowledge about the
industry. Other source is annual reports which really help a lot.

For age group 10-18

Q1.

Are you aware of maggi ?

Response
Yes
No

No of persons
31
4

percentage
88
12

As for as awareness is concerned most of the people are aware about maggie.

Q 2. Which is your favorite noodle?

Response
Maggi
Maggi Dal atta
Top roman
Any other

No of persons
29
3
3
0

percentage
82
9
9
0

Maggi is the favorite noodle as 82% people said we like Maggi

Q3.

Why you consume Maggi?

Response
For taste
For hunger

No of persons
28
7

percentage
80
20

For health
For necessity

0
0

0
0

Most of the people said we consume maggi for taste so as far as taste is
concern maggi has a monopoly. This is a very good sign, as only

Q4.

Do you Consume maggi daily?

Response
yes

No of persons
2

percentage
6

no

33

94

The result is very clear as very few consume Maggi daily.

Q5.

Have you seen our advertisements? If yes, then where?

Mode of Adve
T.V
Magazine
Newspaper
Any other

No of Respondents
33
1
1
--

percentage
94
3
3
--

Most advertisements are watched on T.V., followed by magazines and shops

Q6.

What modifications do you want in Maggi?

Responses
Less price
Improve quality
Improve taste
No modification
Change packing
]]]

No of respondents
14
3
5
2
11

Percentage
40
9
15
5
31

.As most of the people said to decrease the price and fewer one said for change
the packing.

Q7.

What factors lead you to buy maggi?

Responses
Brand
Taste
Price
Any other

No of respondent
4
30
1
0

percentage
12
85
3
0

He
re, taste is preferred by the people as they eat Maggi for taste, some also think
for price and brand also.

Q8.

How do you rate the taste of Maggi?

Responses

No of respondents

Percentage

Excellent
Good
Satisfactory
Not good
Cant say

19
10
6
-

54
28
18
-

as
far as taste is concern nestle has monopoly over the taste as every- one is
satisfied with the taste.

Q 9 Are you aware of munch?

Response
yes
no

No of persons
30
5

percentage
85
15

As for as awareness is concerned most of the people are aware about munch

Q 10. Which is your favorite chocolate?

Responses
Munch
Diary milk
Milky bar
5 star

No of respondents
4
23
3
5

Percentage
12
65
8
15

Dairy milk is the rate no one by the people as munch share is very low so
company has to do something better for increment.

Q11.Have you seen our advertisements? If yes, then where?

Mode of Adve
T.V
Magazine
Newspaper
Any other

No of Respondents
33
1
1
0

percentage
94
3
3
0

Most advertisements are watched on T.V., followed by magazines and shops.

Q12 How do you rate the taste of Munch?

Responses

No of respondents

Percentage

Excellent

15

42

Good
Satisfactory
Not good
Cant say

9
11
-

27
31
-

Nestle have to increased the taste of Munch from good or satisfactory to

excellent.

Q13 Why you go for munch?

Responses
Price
Brand
Taste
Any other

No of respondent
4
4
26
1

percentage
11
11
75
3

Here, most of the people enjoy the unique taste of munch. No many persons go
for brand as they go for taste.

Q14 Are you aware of Milo?

Response

No of persons

percentage

yes
no

29
6

82
18

As for as awareness is concerned most of the people are aware about Milo.

Q15. From the following list below please tick the drink you aware

about?
Partitally
Don't Know

aware

Well aware

Total

Milo

19

10

35

Complain

18

16

35

Bournvita

28

35

Boost

14

15

35

Horlicks

17

18

35

Most of the people are fully aware about Bournvita and they are Partitally aware
about Milo
Q16. Have you tried milo?

Response
yes

No of persons
20

percentage
57

no

15

43

As more than 50% of people tried nestle milo so company has to maintain
balance and increase its sales.

Q17. Have you seen our advertisements? If yes, then where?

Mode of Adve
T.V
Magazine
Newspaper
Any other

No of Respondents
32
1
2
--

percentage
91
3
6
--

M
ost advertisements are watched on T.V., followed by magazines and newspaper

Q 18. When you take health drink generally?

Response
Morning
Lunch time
Evening
Any time
Cant say

No of persons
19
0
8
7
1

percentage
54
0
23
20
3

Most of the persons take health drink morning followed by some who drink
evening.

Q19. Which is the most popular from your point of view?

Responses
Milo
Bournvita
Boost
Horlicks
complan

No of respondents
0
27
2
4
2

Percentage
0
78
6
12
6

As
milo has no popularity so company has to take some serious steps towards the
sales of milo as bournvita enjoy the good hold over the market.

Q20. How do you rate the taste of Milo?

Responses

No of respondents

Percentage

Excellent
Good
Satisfactory
Not good
Cant say

4
9
5
2
15

12
26
15
5
42

Nest
le have to increased the taste of Milo from good or satisfactory to excellent.

After analyzing properly the information gathered through the mentioned methodology,
we come to the following findings about Nestles Munch, Milo and Maggi:
1. As far as awareness is concerned it is fine for all the three products. Mostly people have
come across their advertisements in TVs, Newspapers and Magzines. But TV is more
popular medium. Thus we can say that TV is a fruitful source of publicity and we also find
that Nestle spends a lot on the publicity of its products in order to reach to the consumers.
2. Nestles Maggi is most popular brand among the consumers and it is because of its
masala. People like Maggi very much and they mostly consume 1-5 or

6-10 Maggis in a

week. They prefer Maggi in evening. But some are ready to consume it at anytime.
3. From the analysis, We find that people want reduction in the price of Maggi. They are
satisfied with its Packing, its taste but think that its price should be reduced so that it can
become economical for each and every person.
4. Nestles chocolate Munch is not a popular chocolate among the consumers according to
the survey because its taste is just satisfactory not excellent. People prefer to consume
chocolates of Cadbury like Cadbury Dairy Milk, Cadbury Five Star etc. than Nestles Munch.
5. As far as health drinks are concerned peoples favourite health drink is Bournvita because
of its taste and chocolate flavour. People prefer to take Health drinks in

Morning or in

evening. They like Bournvita more than Nestles Milo. But analysis also points that the taste
of Milo is Good.

1.

Sometimes people dont give appropriate information and fill the questionnaire
just for the sake of fun.

2.

Mostly retailers dont want to give information and act rudely. Some even refuse
to give response.

3.

People dont have time to fill questionnaires in their busy life.

4.

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

5.

Generally people dont respond well for open ended questions like the suggestion
if any.

6.

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

7.

metimes people dont give appropriate information and fill the questionnaire just
for the sake of fun.

8.

Mostly retailers dont want to give information and act rudely. Some even refuse
to give response.

9.

People dont have time to fill questionnaires in their busy life.

10.

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

11.

Generally people dont respond well for open ended questions like the suggestion
if any.

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

 About Nestles 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
Noodles, Pasta do not stand in front of Nestles Maggi. Mostly people have come 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 Nestles Maggi is KING in its product area.

About Nestles chocolate Munch:

As far as Nestles 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 Nestles 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 Nestles 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 Nestles Milo:

From the above study, we can conclude that Nestles 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 Nestles Milo. Thus Nestles competitor in the area of health drink is more stronger and
makes the market position of Nestles 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 Nestles 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, Nestles competitors has a strong
market position. Thus Nestle has to follow the three different market strategies for its 3Ms.

1) Company has to take some important steps for increase the sale of its energy drink Milo.

2) As most of the people demand less price for maggi so company should give some
attractive scheme.
3) Company must organize some advertisement campaign for the promotion of its chocolate
and energy drink.
4) As company is the leader in noodle market so for maintain this, company has to add some
more variety in noodles.

www.nestle.in

www.google.com
www.yahoo.com
www.thehindubusiness.com

www.etstrategicmarketing.com

BOOKS:NAME

Marketing

AUTHOR
-KOTLER

Management
Marketing

-SONTAKKI

Management
Marketing-A

- GANDHI

Managerial
Introduction
Research Methodology

-KOTHARI

Questionnare
1) Are you aware of Maggie?
a) Yes

b) no

2) Which is your Favorite noodle?

a) Maggie
c) Top roman

b) Maggie dal atta

d) any other

3) Why you consume Maggie?

a) For taste

b) for hunger

c) For health

d) for necessity

4) Do you consume Maggie daily?

a) Yes

b) no

5) Have you see our advertisement, if yes then where?

a) T.V
c) News paper

b) Magazine
d) any other please specify

6) What modification do you want in Maggie?

a) Less price

b) improve quality

c) Improve taste d) change packing

e) No modification
7) What factor leads you to buy Maggie?
a) Brand

b) taste

c) Price

d) any other

8) How do you rate the taste of maggie?

a) Excellent
c) Satisfactory

b) Good
d) not good

e) Cant say
9) Are you aware of nestle Munch?
a) Yes

b) no

10) Which is your favorite chocolate?

a) Munch

b) dairy milk

c) Milky bar

d) 5 star

11) Have you see our advertisement, if yes then where?

a) T.V

b) Magazine

c) News paper

d) any other please specify

12) How do you rate the taste of munch?

a) Excellent

b) Good

c) Satisfactory

d) not good

e) Cant say
13) Why you go for munch?
a) Price

b) Brand

c) Taste

d) any other

14) Are you aware of Nestle Milo?

a) Yes

b) no

15) From the following list below please tick the drink you aware about.
Brand
Milo
Complain
Bournvita
Boost
Horlicks

Dont know

Partially aware

16) Have you tried Milo?

a) Yes

b) no

17) Have you see our advertisement, if yes then where?

a) T.V
c) News paper

b) Magazine
d) any other please specify

18) When do you want to take health drink generally?

a) Morning

b) Lunch time

c) Evening

d) Any time

e) Cant say
19) Which is most popular from your point of view?
a) Milo

b) Bournvita

Well aware

c) Boost

d) Horlicks

e) Complain
20) How do you rate the taste of nestle milo?
a) Excellent

b) Good

c) Satisfactory

d) not good

e) Cant say
PERSONAL INFORMATION:
-------------------------------------Name

---------------------------

Age

---------------------------

Gender

---------------------------

Occupation --------------------------Address

--------------------------

Contact no: - --------------------------