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Summer Traning Project Report: "Dominance of Nestle Products in Out of Home Business"

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SUMMER TRANING PROJECT REPORT

ON

Dominance of Nestle products in out of home business

UNDER THE GUIDANCE OF


COMPANYS GUIDE NAME MR. SIDDARTH GUPTA DISTRIBUTION MANAGER NESTLE. DELHI FACULTY NAME MR. JAI BEER PRATAP SINGH LECTURER OF M.B.A DEPTT. KIPM COLLEGE OF MANAGEMENT GORAKHPUR

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF MASTERS DEGREE IN BUSINESS ADMINISTRATION FROM UTTAR PRADESH UNIVERSITY BY MOHD. ASAD III SEM. M.B.A

KIPM COLLEGE OF MANAGEMENT GORAKHPUR

ACKNOWLEDGMENT
I express my sincere gratitude to my industry guide Mr. Siddharth Gupta (sales Manager ) for his able guidance , continuous support and cooperation through out of my project , without which the present work would not have been possible . Without his proper guidance it would not have been successful. He has been very kind and helpful during my whole project.

DECLARATION
I hereby declare that the project entitled DOMINANCE OF NESTLE PRODUCTS IN OUT OF HOME BUSINESS is being submitted by me for the purpose of partial fulfillment for the award of degree of MASTER OF BUSINESS ADMINISTRATION.

Mohd Asad

CONTENTS
CHAPTER NO. Title page Certificate from organisation Ch.# 1.0 Executive Summary

Ch.# 2.0

Overview of FMCG INDUSTRY

Ch.# 3.0

Company Profile

Ch.# 4.0

Company Products

Ch.# 5.0

Introduction to topic

Ch.# 6.0

Objective

Ch.# 7.0

Findings

Ch.# 8.0

Suggestions

Ch.# 9.0

Bibliography

EXECUTIVE SUMMARY

This study is about the sales and distribution of NESTLE INDIA LTD. In this study I have found out about the demand of the NESTLE products, I have studied there distribution procedure, I have found out about the wants or the expectations of the consumers from a nestle product and also about there dealers expectations.

Nestle India Limited is the Indian arm of Nestle SA, which holds a 51% stake in the company. It is one of the leading branded processed food companies in the country with a large market share in products like instant coffee, weaning foods, instant foods, milk products, etc. It also has a significant share in the chocolates and other semi-processed foods market.

Nestle has been serving this world for over one hundred and thirty years. It has differentiated itself through its high quality product mix and positioned itself as health and Nutrition Company while targeting the health conscious people through out the world.

In my training I learnt how to work in real time situation where I was supposed to Analyze target market, device ways to maximize

OVERVIEW OF FMCGINDUSTRY

The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the economy. A well-established distribution network, intense competition between the organized and unorganized segments characterize the sector. FMCG Sector is expected to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments, says an HSBC report. Though the sector witnessed a slower growth in 2002-2004, it has been able to make a fine recovery since then. The performance of the industry was inconsistent in terms of sales and growth for over 4 years. The investors in the sector were not gainers at par with other booming sectors. After two years of sinking performance of FMCG sector, the year 2005 has witnessed the FMCGs demand growing. Strong growth was seen across various segments in FY06. With the rise in disposable income and the economy in good health, the urban consumers continued with their shopping spree.

Sector Outlook
FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs. 60,000 crores. FMCG sector generates 5% of total factory employment in the country and is creating employment for three million people, especially in small towns and rural India.

Analysis of FMCG Sector Strengths


1. Low operational costs 2. Presence of established distribution networks in both urban and rural areas 3. Presence of well-known brands in FMCG sector

Weaknesses
1. Lower scope of investing in technology and achieving economies of scale, especially in small sectors 2. Low exports levels 3. "Me-too" products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market.

Opportunities
1. Untapped rural market 2. Rising income levels, i.e. increase in purchasing power of consumers 3. Large domestic market- a population of over one billion. 4. Export potential 5. High consumer goods spending

Threats
1. Removal of import restrictions resulting in replacing of domestic brands 2. Slowdown in rural demand Tax and regulatory structure

Growth Prospects
With the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the rural income will rise in 2007, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the availability of new categories, would help the urban areas maintain their position in terms of consumption. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home

and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates.

Availability of raw materials


Because of the diverse agro-climatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits &vegetables. India also produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage.

Labor cost comparison

Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest in the world, after China & Indonesia. Low labor costs give

the advantage of low cost of production. Many MNC's have established their plants in India to outsource for domestic and export markets.

FMCG SECTOR

The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion.It has a strong MNC presence and is characterised by a wellestablished distribution network, intense competition between the organised and unorganised segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry. Automatic investment approval (including foreign technology agreements within specified norms), up to 100 per cent foreign equity or 100 per cent for NRI and Overseas Corporate Bodies (OCBs) investment, is allowed for most of the food processing sector.

Indian Consumer Class

India has a population of over 1 billion and 4 climatic zones . Several religious and personal beliefs, 15 official languages, different social customs and food habits characterize Indian consumer class. Besides , India is also different in culture if compared with other Asian countries. Therefore, India has high distinctiveness in demand and the companies in India can get lot of market opportunities for various classes of consumers. Consumer goods marketers experience that dealing with India is like dealing with many small markets at the same time.

Indian consumer goods market is expected to reach $400 billion by 2010. India has the youngest population amongst the major countries. There are a lot of young people in India in different income categories.

In India they do not have to face this dilemma largely because rapid urbanization, increase in demand, presence of large number of young population, any number of opportunities are available . The bottom line is that Indian market is changing rapidly and is showing unprecedented consumer business opportunity .

Top 10 FMCG Companies

S. NO. 1. 2. 3. 4. 5. 6. 7. 8 9. 10.

Companies Hindustan Unilever Ltd. ITC (Indian Tobacco Company) Nestl India GCMMF (AMUL) Dabur India Asian Paints (India) Cadbury India Britannia Industries Procter & Gamble Hygiene and Health Care Marico Industries

OVERVIEW OF TOP FMCG COMPANIES

1. Hindustan Unilever Limited


Hindustan Unilever Limited (abbreviated to HUL), formerly Hindustan Lever Limited , is India's largest consumer products company and was formed in 1933 as Lever Brothers India Limited Hindustan Unilever Limited (abbreviated to HUL), formerly Hindustan Lever Limited , is India's largest consumer products company and was formed in 1933 as Lever Brothers India Limited.

It is currently headquartered in Mumbai, India and its 41,000 employees are headed by Harish Manwani, the non-executive chairman of the board.

The company was renamed in late June 2007 to "Hindustan Unilever Limited" to provide the optimum balance between maintaining the heritage of the Company and the future benefits and synergies of global alignment with the corporate name of "Unilever". This decision will be put to the Shareholdrs for approval in next "Annual General Meeting".

2. ITC Ltd.
ITC is one of India's foremost private sector companies with a market capitalisation of nearly US $ 15 billion and a turnover of over US $ 4.75 billion ITC is one of India's foremost private sector companies with a market capitalisation of nearly US $ 15 billion and a turnover of over US $ 4.75 billion.

ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by BusinessWorld and among India's Most Valuable Companies by Business Today.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Greeting Cards, Safety Matches and other FMCG products.

While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and AgriExports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards.

3. Nestle India
Nestl India is a subsidiary of Nestl of Switzerland, one of the worlds most renowned food and diary products companies. With brands like Kit Kat, Nescafe and Maggi, Nestl has created leading edge technology in food processing and the resultant quality of these products makes them world favorites today. Nestl India has successfully transferred its international brand image to the Indian market. The company has given India it most modern and sophisticated food processing plants, and a range of brands that holds a large share of the premium foods market. Nestl India is a premier employer in the Indian market and is currently in a major growth phase which has seen the introduction of Kit Kat, Polo and Bonus, among their international brands and several products based on Indian tastes, under the Milkmaid and Maggi brands. The company employs some of the most high profile professionals in all functional areas and has a top order compensation structure to match.

4. BRITANNIA INDUSTRIES Ltd.

Britannia manufactures diary products from its plants located in Kolkata, Delhi, Chennai, Mumbai, and Rudrapur. The company has a total installed capacity of 163,500 MT of biscuits and protein foodstuffs. Key brands include Tiger, Good Day, Milk Bikis, Treat, and Marie. In FY07 the company launched new brands; 50:50 Chutkule, Treat Fruit, Rollz, NutriChoice Digestive, and renovated Milk Bikis, Chota

Tiger,

and

Chocolate

Cream

in

the

Tiger

range.

Today, more than a century after those tentative first steps, Britannia's fairy tale is not only going strong but blazing new standards, and that miniscule initial investment has grown by leaps and bounds to crores of rupees in wealth for Britannia's shareholders.

5. EMAMI LIMITED

Emami Ltd, the flagship company of the Rs 2000 crore Emami Group, is a leading player in the personal and healthcare consumer products industry in India. Some of its major brands include Boroplus, Navratna, Sona Chandi, Himani and Beauty Secrets by Madhuri. The companys manufacturing facilities are located in Kolkata, Guwahati and Pondicherry. Companies under Emami Group are:> Emami Paper Mills Limited > Emami Chisel Art > South City Projects (Kolkata) Ltd > Advanced Medicare & Research Institute Ltd (AMRI) > Frank Ross Limited > Emami Realty Limited

> Emami Retail Pvt Limited (Starmark) > Emami Biotech Limited

6. Colgate-Palmolive (India) Limited


Colgate-Palmolive (India) Ltd (Colgate-Palmolive), was incorporated in 1937. Colgate-Palmolive Company, USA is its holding company. It is engaged in manufacturing and marketing FMCG products. Main products include toothpastes, toothbrushes, toothpowders, teethwhitening products, shower gels, thermal spa products, liquid handwashes, shave preps, and skin care. Colgate-Palmolive (Nepal) Pvt Ltd is a wholly-owned subsidiary of the company.

7. Dabur India Limited


Dabur India Limited is the fourth largest FMCG Company in India with interests in Health care, Personal care and Food products. Building on a legacy of quality and experience for over 100 years, today Dabur has a turnover of Rs.2396 crore with powerful brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola, Babool, Odomos & Real.

8. Procter & Gamble Hygiene and Health Care Limited

Procter & Gamble Hygiene and Health Care Ltd (P&G Hygiene and Health Care) was initially known as RHL.

In Oct 1985, after RHL became an affiliate of The Procter & Gamble Company, USA, it set up a manufacturing facility at Hyderabad, AP for Vicks range of products.

P&G Hygiene and Health Care is involved in manufacturing of health care and hygiene products.

Some of the popular brands in the companys health care segment include Vicks VapoRub, Vicks Inhaler, Vicks Formula 44, Vicks Cough Drops and Vicks Action 500+. Whisper is its prominent brand in the feminine hygiene segment and its brand portfolio includes Whisper Maxi Regular, Whisper Maxi XL Wings and Whisper Ultra with Wings among others.

9. Nirma Limited
Nirma is one of the few names - which is instantly recognized as a true Indian brand, which took on mighty multinationals and rewrote the marketing rules to win the heart of princess, i.e. the consumer. Nirma Ltd (Nirma) commenced operations in 1969 as a detergent company under the aegis of Karsanbhai Patel. In 2005, Nirma acquired the fluid business of Core Healthcare Ltd from ARCIL. Nirma Consumer Products: Soaps, Detergents, Edible Salt, Scouring

Products Nirma Industrial Products: LAB ( Linear Alkyl Benzene ), AOS ( Alfa Olefin Sulfonate ), Sulfuric Acid, Glycerin, Soda Ash, Pure salt, Vacuum Evaporated Iodized Salt, SSP ( Single Super Phosphate), Sodium Silicate.

10. Radico Khaitan Limited

Radico Khaitans product range comprises whiskey, rum, vodka, gin, and brandy. Brands include 8PM Whiskey, Contessa Rum, Old Admiral Brandy, and Magic Moments Vodka, amongst others.

COMPANY PROFILE
COMPANY PROFILE HISTORY

The history of Nestl began in Switzerland in 1867 when Henri Nestl, the pharmacist, launched his product Farine Lacte Nestl, a nutritious gruel for children. Henri used his surname, which means little nest, in both the company name and the logo type.

The nest, which symbolizes security, family and nourishment, still plays a central role in Nestls profile. Since it began over 130 years ago, Nestls success with product innovations and business acquisitions has turned it into the largest Food Company in the world. As the years have passed, the Nestl family has grown to include chocolates, soups, coffee, cereals, frozen products, yoghurts, mineral water and other food products. Beginning in the 70s, Nestl has continued to expand its product portfolio to include pet foods, pharmaceutical products and cosmetics too. Today, Nestl markets a great number of products, all with one thing in common: the high quality for which Nestl has become renowned throughout the world.

1866-1905 In the 1860s Henri Nestl, a pharmacist, developed a food for babies who were unable to breastfeed. His first success was a premature infant who could not tolerate his mother's milk or any of the usual substitutes. People quickly recognized the value of the new product, after Nestl's new formula saved the child's life, and soon, Farine Lacte Henri Nestl was being sold in much of Europe.

1905-1918 In 1905 Nestl merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s, the company was operating factories in the United States, Britain, Germany and

Spain. World War I created new demand for dairy products in the form of government contracts. By the end of the war, Nestl's production had more than doubled.

1918-1938 After the war Government contracts dried up and consumers switched back to fresh milk. However, Nestl's management responded quickly, streamlining operations and reducing

debt. The 1920s saw Nestl's first expansion into new products, with chocolate the Company's second most important activity

1938-1944 Nestl felt the effects of World War II immediately. Profits dropped from $20 million in 1938 to $6 million in 1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped with the introduction of the Company's newest product, Nescaf, which was a staple drink of the US military. Nestl's production and sales rose in the wartime economy.

1944-1975 The end of World War II was the beginning of a dynamic phase for Nestl. Growth accelerated and companies were acquired. In 1947 came the merger with Maggi

seasonings and soups. Crosse & Blackwell followed in 1960, as did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in L'Oral in 1974.

1975-1981 Nestl's growth in the developing world partially offset a slowdown in the Company's traditional markets. Nestl made its second venture outside the food industry by acquiring Alcon Laboratories Inc..

1981-1995 Nestl divested a number of businesses1980 / 1984. In 1984, Nestl's improved bottom line allowed the Company to launch a new round of acquisitions, the most important being American food giant Carnation.

1996-2002 The first half of the 1990s proved to be favorable for Nestl: trade barriers crumbled and world markets developed into more or less integrated trading areas. Since 1996 there have been acquisitions including San Pellegrino (1997), Spillers

Petfoods (1998) and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002: in July, Nestl merged its U.S. ice cream business

into Dreyer's, and in August, a USD 2.6bn acquisition was announced of Chef America, Inc.

2003 + The year 2003 started well with the acquisition of Move n pick Ice Cream, enhancing Nestl's position as one of the world market leaders in this product category. In 2006, Jenny Craig and Uncle Toby's were added to the Nestl portfolio and 2007 saw Novartis Medical Nutrition, Gerber and Henniez join the Company.

Nestl India Ltd. Nestl India is a subsidiary of Nestl of Switzerland, one of the worlds most renowned food and diary products companies. With brands like Kit Kat, Nescafe and Maggi, Nestl has created leading edge technology in food processing and the resultant quality of these products makes them world favorites today. Nestl India has successfully transferred its international brand image to the Indian market. The company has given

India it most modern and sophisticated food processing plants, and a range of brands that holds a large share of the premium foods market. Nestl India is a premier employer in the Indian market and is currently in a major growth phase which has seen the introduction of Kit Kat, Polo and Bonus, among their international brands and several products based on Indian tastes, under the Milkmaid and Maggi brands. The company employs some of the most high profile professionals in all functional areas and has a top order compensation structure to match.

INTRODUCTION OF THE COMPANY

Nestle India

Nestl India is a subsidiary of Nestl S.A. of Switzerland. With seven factories and a large number of co-packers, Nestl India is a vibrant Company that provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction.

The Company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships. This has earned it the trust and respect of every strata of society that it comes in contact with and is acknowledged amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'.

Nestle India: An Overview


Nestls relationship with India dates back to 1912, when it began trading as The Nestl Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market.

After Indias independence in 1947, the economic policies of the Indian Government emphasized the need for local production. Nestl responded to Indias aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestl to develop the milk economy. Progress in Moga required the introduction of Nestls Agricultural Services to educate advice and help

the farmer in a variety of aspects. From increasing the milk yield of their cows through improved dairy farming methods, to irrigation, scientific crop management practices and helping with the procurement of bank loans. Nestl set up milk collection centres that would not only ensure prompt collection and pay fair prices, but also instill amongst the community, a confidence in the dairy business. Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today, but a thriving hub of industrial activity, as well. For more on Nestl Agricultural Services,

Nestl has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods.

The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product offerings. The culture of innovation and renovation within the Company and access to the Nestl Group's proprietary technology/Brands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts.

It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality, safe food products at affordable prices.

Nestl India manufactures products of truly international quality under internationally famous brand names such as NESCAF, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTL Milk, NESTL SLIM Milk, NESTL Fresh 'n' Natural Dahi and NESTL Jeera Raita.

Nestl India is a responsible organization and facilitates initiatives that help to improve the quality of life in the communities where it operates.

Nestls relationship with India dates back to 1912, when it began trading as The Nestl Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market.

After Indias independence in 1947, the economic policies of the Indian Government emphazised the need for local production. Nestl responded to Indias aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestl to develop the milk economy. Progress in Moga required the introduction of Nestls Agricultural Services to educate, advise and help the farmer in a variety of aspects. From increasing the milk yield of their cows through improved dairy

farming methods, to irrigation, scientific crop management practices and helping with the procurement of bank loans. Nestl set up milk collection centres that would not only ensure prompt collection and pay fair prices, but also instil amongst the community, a confidence in the dairy business. Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today, but a thriving hub of industrial activity, as well. For more on Nestl Agricultural Services,

Nestl has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods.

The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product offerings. The culture of innovation and renovation within the Company and access to the Nestl Group's proprietary technology/Brands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts. It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality, safe food products at affordable prices.

Nestl India manufactures products of truly international quality under internationally famous brand names such as NESCAF, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTL Milk, NESTL SLIM Milk, NESTL Fresh 'n' Natural Dahi and NESTL Jeera Raita.

Nestl India is a responsible organization and facilitates initiatives that help to improve the quality of life in the communities where it operates

Presence Across India


After nearly a century-old association with the country, today, Nestl India has presence across India with 7 manufacturing facilities and 4 branch offices spread across the region

Nestl Indias first production facility, set up in 1961 at Moga (Punjab), was followed soon after by its second plant, set up at Choladi (Tamil Nadu), in 1967. Consequently, Nestl India set up factories in Nanjangud (Karnataka), in 1989, and Samalkha (Haryana), in 1993. This was succeeded by the commissioning of two more factories - at Ponda and Bicholim, Goa, in 1995 and 1997 respectively. The seventh factory was set up at Pantnagar, Uttarakhand, in 2006.

The 4 branch offices in the country help facilitate the sales and marketing of its products. They are in Delhi, Mumbai, Chennai and Kolkata. The Nestl India head office is located in Gurgaon, Hary

PRODUCTS OF

NESTLE

MILK PRODUCTS

NESTL

EVERYDAY

Ghee

is

100%

pure

Clarified

Butter

hygienically packed to preserve its rich aroma and granular texture. As a cooking medium, NESTL EVERYDAY Ghee helps you add that authentic ethnic aroma and flavor to Indian preparations every time, everyday

A Partly Skimmed Sweetened Condensed Milk, NESTL MILKMAID is a versatile product and excellent as a dessert ingredient. With

MILKMAID, you can whip up lip-smacking desserts for your family in the shortest possible time.NESTL EVERYDAY Dairy Whitener is a creamy Dairy Whitener specially made to add a rich, smooth taste to your tea.

Every time, every day.

PREPARED DISHES & COOKING AIDS

MAGGI 2-MINUTE Noodles is one of the most popular brand of instant noodles in India. Available for export in 5 authentic Indian flavours (spicy Masala, tangy Chatpata, Chicken, Tomato and Curry), it is a delicious anytime snack thats ready in just 2 minutes.

MAGGI Chinese Noodles makes it so simple to prepare delicious Indian Style Chinese Noodles at home in a jiffy! Offered in two exciting flavours, Veg Chowmein and Lemon Chicken. These packs are for export

MAGGI Vegetable Atta Noodles is a unique innovative product with the goodness of whole wheat and real vegetables. Available in the popular Masala flavour.

MAGGI Vegetable Atta Noodles is a unique innovative product with the goodness of whole wheat and real vegetables. Available in the popular Masala flavour.

In addition to the nutrition from whole wheat, MAGGI Dal Atta Noodles offers the goodness of Dal (lentils) in the deliciously ethnic Sambar Tastemaker.

MAGGI offers a wide range of specialty Indian Sauces which are relished for their unique taste. Available in the following delightful

variants: Tomato Ketchup, Tomato Sauce, Tomato Chilli, Masala Chilli, Chilli Garlic, Tamarina, Tomato Chatpat, Tomato Pudina and the all-time-favourite MAGGI Hot & Sweet Sauce

MAGGI Taste of India Pastes are a delicate blend of traditional spices and freshly ground pastes, offering the convenience of preparing authentic Indian recipes at home, in no time at all! The range includes Biryani Paste, Curry Paste, Korma Paste, Tandoori Paste and Tikka Masala Paste.

New MAGGI Healthy Soups are even more delicious, quick to prepare, convenient and healthy. They contain real

vegetables, are low fat and cholesterol free. They also do not have added MSG, preservatives or artificial colour

BEVERAGES

NESCAF CLASSIC is a 100% pure coffee and is made from carefully selected coffee beans picked from the finest plantations, blended and roasted to perfection to created the unique rich and smooth NESCAF taste.

NESCAF SUNRISE is an Instant Coffee-Chicory blend, popular for its robust body and a flavor akin to fresh roast-and-ground coffee. The secret lies in the right blend of flavourful coffee and roasted chicory to give you an incomparable experience.

NESTEA Tea Bags are made from the finest blend of Assam Teas, which give a refreshing cup of bright, coloury tea of fair strength and superior taste. They are available both in individually enveloped and non-enveloped formats.

We manufacture high quality Hot & Cold Water Soluble Black and Green Tea Powders at our state-of-the-art factory in Choladi, located in the midst of tea plantations which ensure availability of fresh green leaves. With their high polyphenol content resulting in enhanced anti-oxidant properties, our teas can be used to produce premium products. Available in bulk quantities onl

We improved new NESTL MILO gives children the energy they need to enjoy their active lifestyle. Packed with Actigen -

E, a unique mix of B-vitamins and other key micro nutrients which help optimise energy release effectively. In addition its extra cocoa and rich malt makes it so chocolaty and irresistible that they will always be asking for more.

A wide range of premixes for the vending machines. The basket of products include NESCAF Classic, NESCAF Frappe, Tea Premix (Plain, Cardamom), Hot Chocolate, Iced Tea (Lemon, Peach, Apple), and Badam (Almond) Milk vending mixes.

CHOCOLATES & CONFECTIONERY

NESTL KITKAT are delicious crisp wafer fingers covered with chocolayer. Our special tropicalized recipe ensures that NESTL KITKAT is preserved even in warmer climates.

NESTL MILKYBAR is a delicious milky treat which kids love. With its Calcium Rich recipe, NESTL MILKYBAR is a favourite with parents to treat their kids with.

Extremely popular in India, NESTL MUNCH is wafer layer covered with delicious chocolayer. A crispy light irresistible snack!

NESTL Milk Chocolate is a milk chocolate with a delicious taste for you to savour.

NESTL BAR-ONE is a luscious nougat and caramel core covered with a delicious chocolayer.

NESTL offers a bouquet of three exciting clair variants: NESTL Eclairs are rich milky caramel Eclairs with a soft center. NESTL Chocolate Eclairs are a delicious delight with luscious creamy chocolate inside. NESTL MILKYBAR Eclairs are delightful Eclairs with a creamy milky chocolate center.

POLO is a mint roll popularly described as The Mint with the hole. Now also in the new extra strong singles format as POLO Powermint.

VENDING

NESTLE PLANT LOCATIONS


1. Moga (Punjab) 1961

2. Choladi (Tamil Nadu) 1967

3. Nanjangud (Karnataka) 1989

4. Samalkha (Haryana) 1993

5. Ponda and Bicholim Goa 1995 and 1997

6. Pantnagar, Uttarakhand 2006

DISTRIBUTION CHANNEL
Distribution are the set of activities that are being practiced in order to move our products from the company mother godown to the end customers. Providing fresh stock to the customers. Distribution procedure :-

1.Company manufacturing plant.

2.C & S.

3.Distributors.

4.Retailers.

5.Customers. Company manufacturing plant

C&F

Distributors.

Retailers.

Customers.

HIERARCHY IN NESTLE
EXECUTIVE VICE PRESIDENT SALES

COUNTRY HEAD

BRANCH MANAGER

REGIONAL SALES MANAGER

AREA SALES MANAGER

DEPARTMENTS IN

NESTLE

TRADE MODERN TRADE CHILLED DAIRY NUTRITION ACTIVATION RTM ( route to market ) NESTLE PROFESSIONAL CSD ATC ( alternative trade channel )

ATC EXAMPLE

PRODUCT WISE

COMPETITORS

SAUCES 1. CROSE & BLACKWELL ( C&B )

COMPETITOR

CREMICA , DELMONTE, FUN F&

2. BROWN & WHITE SAUCE

COMPETITOR

KNORR

CREAMER

COMPETITOR

AMUL

MAGGI

COMPETITOR

LOCAL NOODLES

MILKMAID

COMPETITOR

AMUL MITHAI

SOUP

COMPETITOR

KNORR

COFFEE

COMPETITOR

BRU, TATA COFFEE

CUPPA MANIA

COMPETITOR

NISSAN

SWOT ANALYSIS

STRENGTH Brand awareness is very high..

Company possess very efficient distribution system which is important.

The company is very innovative.


Company holds a large share of the market.

Company offers a wide range of products to choose fro

WEAKNESSES
Communication problems

OPPORTUNITIES

The Indian market is a growing market

Large consumer base.

Increasing standard of living of consumer

Huge potential in FMCG sector.

THREATS Competition is increasing day by day

Low cost based offerings by competitors

INTRODUCTION

TO

TOPIC

The topic called DOMINANCE OF NESTLE PRODUCTS IN OUT OF HOME BUSSINESS deals with the consumers who consume the product of nestle out of their home like : In office Roadside outlet Institutional buying

That is, it is the study about product being consumed in any place other than hom

OBJECTIVE

To get to know the practical workings of FMCG company

To gain practical experience

To understand the distribution pattern

To help in maximizing sales

To help in establishing street channel

FINDINGS
Neslte has a wild portfolio of products to offer with efficient product reach to its consumers

Clear dominance in some products like Maggie and Lactogen

Products like white sauce and brown sauce need push

Street channel needs to be established in more organized way

SUGGESTIONS

Products like tea 12g should also be available in different packages for institutional sales

Products like aatta noodles should be available in bulk for institutional sales as its available in trade

Schemes for the retailers as well as customers.

Games along with the confectionary purchases.

Bibliography BOOKS
Aswathappa, k, Performance Appraisal- An Introduction, Human Resource and Personnel Management, Third Edition, New Delhi, Tata McGraw-Hill Publishing Company limited, 2002,

Kothari, C.R., Research Methodology- An Introduction, Research Methodology-An Introduction, Research Methodology, second Edition, New Delhi, New Age International Limited, 2004

Kothari, C.R., Defining the Research Problem, Research Methodology, Second Edition, New Delhi, New Age International (P) Limited, 2004. Kothari, C.R, Interpretation and repot writing, Research Methodology, Second Edition, New Delhi, New Age International (P) Limited, 20

SITES

www.nestle .in www.google.co.in

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