RURAL MARKETING INTERNAL ASSESSMENT

COMPANY - NESTLE

Jyotsna Jindal - 26
Jivika Lalwani - 31
Ritvik Marwah - 35
Rishabh Sanghvi - 49
Anandita Senapati - 50
Nandini Vyas – 61

1
 DECLARATION

We, Group 3 consisting of Nandini Vyas, Anandita Senapati, Jyotsana Jindal, Rishabh
Sanghvi, Ritvik Marwah and Jivika Lalwani of Jai Hind College (Autonomous), of S.Y.B.M.S.
(Semester IV) declare that we have completed this project on the “NESTLE RURAL
MARKETING STRATEGY” in the academic year 2021-22. The information submitted is true
and original to the best of my knowledge.

___________________________

(SIGNATURE OF TEAM MEMBER)

(RISHABH SANGHVI)

CERTIFIED BY: _______________________

(SIGNATURE OF GUIDING TEACHER)

2
 CERTIFICATE

This is to certify that Group _ (Nandini Vyas, Anandita Senapati, Jyotsana Jindal, Rishabh
Sanghvi, Ritvik Marwah and Jivika Lalwani) of JAI HIND COLLEGE (AUTONOMOUS),
of S.Y.B.M.S. (Semester IV) have completed the project on the “NESTLE RURAL
MARKETING STRATEGY”, in the academic year 2021-22. The information submitted is
true and original to the best of our knowledge.

DATE OF SUBMISSION SIGNATURE OF PROJECT GUIDE

_______________________ ___________________________

PROF. ARJUN POOJARI

_______________________

COLLEGE SEAL

3
 ACKNOWLEDGEMENT

To list who all have assisted us in difficulty because there were certain challenges and the
depth was so enormous.

We would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.

We take this opportunity to thank the University Of Mumbai for giving us the chance to do this
project.

We would like to thank our Principal, Dr. Ashok Wadia for providing the necessary facilities
required for the completion of this project.

We would like to take this opportunity to thank our Project Guide, Dr. Arjun Poojari for their
moral support and guidance. We would like to express our sincere gratitude for his guidance
and care, which made this project successful.

Lastly, we would like to thank each and every person who directly or indirectly helped us in
the completion of the project, especially our Parents and Peers who supported us throughout
our project.

4
A STUDY ON THE FMCG MAJOR NESTLE’S RURAL MARKETING STRATEGY

A Project Submitted to
Jai Hind College (Autonomous) for partial completion of the degree of
Bachelor of Management Studies
Under the Faculty of Commerce

SUBMITTED BY:
Nandini Vyas
Anandita Senapati
Jyotsana Jindal
Rishabh Sanghvi
Ritvik Marwah
Jivika Lalwani

Under the Guidance of

Dr. Arun Poojari

JAI HIND COLLEGE (AUTONOMOUS)

J.T. LALVANI COLLEGE OF COMMERCE AND ECONOMICS
CHURCHGATE, MUMBAI

JANUARY 2022

5
 TABLE OF CONTENTS

Roll No. Particulars

1 Executive Summary
2 Company Introduction
3 Product Portfolio
4 Rural Product Strategies
5 Rural Pricing Strategies
6 Rural Distributional Strategies
7 Rural Promotional Strategies
8 4 A’s of Rural Marketing and Nestle
9 Nestle’s Reach
10 Rural Marketing Segmentation
11 Market Competitors
12 Challenges
13 Conclusion

6
Executive Summary:

Neslté has been an integral part of the Indian industry since a very long time, however it is a
late entrant into the Indian rural area which promise huge potentials. Over the years, the
Company's activities in India have facilitated direct and indirect employment and provided
livelihood to about one million people including farmers, suppliers of packaging materials,
services, and other goods. That is not all, Nestle has a vast number of products, under each of
its brands, with Maggi being one of the most loved ones.
The company has been on its feet with its continuous innovations, taking off of under-
performing products from the market and widening its reach within the rural parts of the
country. Nestle uses various strategies to do so. It sets different rates for different regions of
the country. People in the rural areas are always looking for good quality at cheap prices and
therefore Nestle has launched small quantity packs for mostly all its products available in the
rural areas.

Nestlé’s rural footprint has expanded on the basis of five key vectors: Wider penetration;
expansion of the portfolio; deploying suitable structure of people; ensuring visibility of
products where they matter; and consumer connect in terms of campaigns and activations.

Nestle has been able to attract the rural consumers with the right pricing and marketing
strategies. With Affordability and Awareness playing a major role in the rural market Nestle is
set to increase its rural market share in the coming years.

7
Introduction:
NESTLÉ's relationship with India dates back to 1912, when it began trading as The NESTLÉ
Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished
products in the Indian market.

NESTLÉ has been a partner in India's growth for over a century 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 provided 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 customer needs in order to provide Taste, Nutrition, Health, and Wellness
through its product offerings. The culture of innovation and renovation within the Company
and access to the NESTLÉ Group's proprietary technology/Brands expertise and the extensive
centralized Research and Development facilities give 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.

Product Portfolio:
Nestle has more than 2,000 brands, from global icons to local favourites.

Their products range from baby food to adult food, from breakfast to dinner, everywhere!

• Baby Food - Gerber, NaturalNess, Cerelac, Nido

• Boiled water - PureLife, Perrier, S.Pellegrino
• Cereals - Fitness, Nesquik, Cheerios, Lion Cereals
• Chocolate & Confectionery - KitKat, L’Atelier, Toll House, MilkyBar, Smarties,
Quality Street, Aero, Garoto, Orion, Cailler
• Coffee - Nescafe, Nespresso, Dolce Gusto, Blue Bottle Coffee, Starbucks Coffee at
home
• Packaged Food Products - Maggi, Hot Pockets, Stouffer, Thomy, Jacks, Tombstone,
Herta, Buitoni, Digiorno, Lean Cuisine
• Dairy - Carnation, Nido, CoffeeMate, La Laitière
• Drinks - Nesquik, Nestea, Milo, Nescafe
• Healthcare Nutrition - Boost, Peptamen, Resource, Nutren Junior, Optifast

8
 • Ice-Cream - Dreyers, MovenPick, Haagen Dazs, Extreme
• PetCare - Purina, One, Alpo, PurinaFelix, PropPlan, Catchow, FancyFeast, Chef
Michael's, Bakers, Friskies, DogChow, Beneful, Gourmet

Nestle India Ltd, one the biggest players in FMCG segment, has its presence in milk &
nutrition, beverages, prepared dishes & cooking aids & chocolate & confectionery segments.
The company is engaged in the food business. The food business incorporates product
groups, such as milk products and nutrition, beverages, prepared dishes and cooking aids,
chocolates and confectionery. Nestle India manufactures products under brand names, such
as Nescafe, Maggi, Milkybar, Milo, Kit Kat, Bar-One, Milkmaid and Nestea. The company
has also introduced products of daily consumption and use, such as Nestle Milk, Nestle Slim
Milk, Nestle Fresh n Natural Dahi and Nestle Jeera Raita. The companys brands include
milk products and nutrition, prepared dishes and cooking aids, beverages, and chocolates
and confectionery. Their milk products and nutrition including Nestle Everyday Dairy
Whitener, Nestle Everyday Ghee, Nestle Milk, Nestle Slim Milk and Nestle Dahi. Beverages
Include Nescafe Classic, Nescafe Sunrise Premium, Nescafe Sunrise Special and Nescafe
Cappuccino.

Some of the most famous products by Nestle in India include:

9
Rural Product Strategies:
Post the Maggi fiasco of 2015, Nestle realized the disadvantage of over-dependence on a single
product. With Maggi off the shelves, Nestle’s revenue took a huge hit. In the intervening years,
Nestle revamped its product portfolio. Not only a number of under-performing products
were taken off the market but within a span of mere six months Nestle widened its
product portfolio by launching various forms of maggi pastas, healthy noodles and other
flavored drinks.

The Maggi turmoil created a positive shift in Nestle’s product strategies. However, this was
when Nestle was majorly an urban market brand, with Tier 1 and Tier 2 cities garnering most
of the revenue for the brand.

Despite the FMCG market growing, Nestle’s growth had been mostly stagnant in the past 3-4
years, while its competitors’ market share and revenues seemed to be growing and performing
well. While major FMCG brands like Hindustan Unilever, ITC and Dabur were expanding
their reach and creating a strong consumer base in the market. Nestle most certainly lost out
on the first mover advantage in the rural areas, with its reach limited to a mere 1,000
villages during this time.

Nestle recognised the strength of the rural market later than its rivals, however, it is now
vigorously capturing the rural market share albeit the competition. The FMCG major has plans
to reach around 1.2 lakh Indian villages with each village having a population of around 5000
people.

With Maggi already being a favourite in the market, Nestle will have a set consumer base
willing to try its new products. The best performing products of Nestle in the rural market
currently are Maggi Noodles, Magic Masala and Maggi Fried Rice.

In the year 2020, India witnessed reverse-migration, with people moving back to the villages
to spend time with their families, due to the nationwide year-long lockdown, Nestle witnessed
higher sales of Maggi in the rural areas.

The product strategies of Nestle in rural areas seem to be similar to that of the urban areas, the
product portfolio isn’t likely to undergo a major reform, however, Nestle is attracting the
rural consumers with the right pricing and marketing strategies. With Affordability and
Awareness playing a major role in the rural market Nestle is set to increase its rural
market share in the coming years.

10
Rural Pricing Strategies:
Nestle's pricing approach differs significantly from that of the other brands. It is entirely
dependent on recognition, often known as the perceived quality of the product. Consumers can
touch and feel the quality of the products, which is known as perceived quality. Nestle chooses
a price plan based on the product's quality and the consumer's attitude toward it.

Nestle chose to give a more inexpensive price for several of its 2000 brands. It is entirely
dependent on the market sector in question. The target audience is now frequently included
in the market category. If Nestle's target market is the general public, for example, they must
choose a cheap pricing plan over a costly one. In the instance of Maggi, this is exactly what
happened. In comparison to Nestle's other products, it is cheaper. However, when comparing
Maggi's pricing to that of other noodle manufacturers, it appears to be a touch pricey. Nestle
sets different rates for different regions.

Nestle has learned throughout time that customers do not shop for food every day. They want
to buy in bulk. As a result, Nestle has created bundle packs. This includes a 16-pack of Maggi.
Maggi used to be sold in a single package. Sales have automatically grown since Nestle
unveiled its 16-pack deal.

However, this strategy is exclusively for semi-urban or urban areas. Rural India differs greatly
in this aspect. People in the rural areas are always looking for good quality at cheap prices
and therefore Nestle has launched small quantity packs for mostly all its products
available in the rural areas. The 5 Rs. Maggi packs, 2 Rs. Magic Masala packs and
chocolates at Rs. 5 to encourage people to buy its products. This strategy helps the brand to
get the consumers on board with their products and then once the consumer base has been set
they can alter the prices as per the demand. Offering smaller quantities at cheaper prices is
the rural pricing strategy adopted by Nestle to combat competition and increase market
share. In addition to the above, the brand also offers combo packs, offers and discounts
at lucrative prices.

Rural Distribution Strategies:

The base for rural (market) is certainly much higher when it comes to growth rate as compared
to urban. Mr. Narayanan, chairperson of Nestle added in his recent interview “The work is on,
in terms of renovating and innovating some products that we will put out in the rural and semi-
urban markets. We will look at different models and channels of distribution to access smaller
markets and finally communication thrust of the company will also go towards campaigns,
messaging and advertising that will be more rural centric.”

The company has created two kinds of distributors, namely Trade and Chocolate. The former
deals with the Maggie range, Nestle dahi, Aquafina etc. Chocolate deals with all confectionery
items.

A representative of each distributor goes to the various outlets, once or twice a week
(Depending upon the area), takes the order and then either delivers the goods there and then,
or on the same day.

The company has also taken an initiative for deeper reach and penetration into the

11
market with its operation “STING”. Whereby the sales representatives on the company
go on bicycles and try to fulfil the order of small ignored and unserved outlets. Example: the
panwallas, the kirana stores etc.

They have customized promotional strategies for rural markets using local language and talent.

Rural Promotional Strategies:

Nestlé had always relied on a few flagship products, such as Maggi and Nescafé. Once it started
catering to rural markets, it started putting out tailor-made products in different packages.
Between 2016 and 2018, Nestlé launched 39 new products. These included Masala Fusion
dairy whitener, Greek Yogurt Grekeyo, and Nestlé Everyday Chai in three varieties.

It launched Nestlé a+, Banglar Misthi Dai, and Ceregrow organic cereals, Lactgrow for
toddlers, and products in the weight management category like OPTIFAST. Under the Maggi
range, it launched new variants of sauces, soups, pasta, and poha . New flavours of Maggi —
Yummy Capsica and Chatpata Tomato — were launched along with atta spinach noodles. To
cater to growing demand from towns and tier 2 and tier 3 cities, Nestlé launched Maggi fried
rice masala, Paneer masala mix, and Nestlé Ceremeal Daliya.

At the same time, Nestlé also withdrew some products which were not garnering enough
sales. These included health drink, Milo, as it had failed to gather enough momentum in spite
of its long-lasting presence. Other products that Nestlé decided to remove from the shelves
included Nestlé Chocostik, butter, and Nestlé Choo. With the rural push, Nestlé had covered
89,000 villages by 2019.

12
4 A’s of rural marketing & Nestle:
The 4Ps of marketing are a standard for marketing strategy. But rural marketing needs
something different — these are the 4As — acceptability, affordability, availability, and
awareness. For any company to be successful in rural India, an adequate mix of the 4As is
necessary.

1. Acceptability

Products designed for urban consumers may not be suitable for rural customers. It is important
to ensure acceptability. Rural customers demand products with high utility value and
convenience to use. In smaller villages, the demand is for products that help save money and
effort.

Nestlé introduced several products specific to rural India to gain acceptability among
customers. These include Maggi Fried rice masalas, paneer masala mix, and Nestlé Ceremeal
Daliya.

2. Affordability

When the income of average Indians is considered, people in the rural areas earn less than half
their urban counterparts do. In 2019, the government’s estimates of per capita income in terms
of Net Value showed that urban per capita income was ₹98,435, whereas in the rural areas it
was ₹40,925.

It is the foremost requirement that all products and services designed for rural areas are
affordable. At the same time, the rural population needs products of high quality, so it is
necessary to design products that are value-adding for rural consumers. They prefer smaller
packs as they are more affordable.

This has led to the proliferation of sachet packaging in India. Nestlé too has been bringing in
some products like Maggi and a few types of chocolate in smaller quantities priced low, to
make them affordable.

3. Availability

India has over six lakh villages, spread out across the country. Over a quarter of these villages
are not connected through all-weather roads. It is important for FMCG companies to make their
products available in the hinterland if they want to take advantage of the demand there. The
last-mile distribution is, however, a challenge in India. FMCG major HUL addressed it through
its ‘Project Shakti’. Nestlé is available in nearly 90,000 villages, which still left a lot of villages
uncovered.

13
The company could consider replicating the highly popular até Você door-to-door micro-
distribution system that it has successfully used in Brazil. In this system, distributors and
resellers from the local community sell Nestlé products in their neighbourhoods. Though
Nestlé used this system in the urban markets of Brazil, a similar programme can be envisaged
to reach the rural population in India.

4. Awareness

While literacy levels are lower in rural areas than in urban areas, growing internet adoption has
made it easy to reach people and create awareness. At the same time, marketers may find it
difficult to cater to the rural population as most of the advertisements in the country are urban-
centric. The fact that languages and dialects change every few miles makes it important for
FMCG companies like Nestlé to come up with specific programmes for the rural population.

14
Nestle’s Reach:

From 1,000 villages covered in 2016, the number jumped over 50 times to 51,584 villages. The
world’s biggest food company is fanning across 89,288 villages to hunt for its next leg of
growth. “Rural is an important dimension of the next phase of Nestlé,” points out Narayanan.

What came next was mapping out the country into 15 clusters. While three of them were
geographic branches, three others were billed as metropolitan clusters. The clusters were the
prism through which every decision was made in terms of marketing. From consumer-led
activities to distribution and brand-led initiatives, and even innovation-powered decisions,
everything was filtered through the lens of clusters. “This made performance tracking a lot
sharper,” says Narayanan. The company was able to track what was working, and what wasn’t,
within a geography. What this meant was quick decision-making. The message that perpetrated
down the organisation was clear: Don’t waste time going after things that didn’t work. “Don’t
keep trying it out in different geographies. Take it out, improvise and do something else,” adds
Narayanan.

The innovation rate, he lets on, over the last five years is about three times the rate Nestlé had
ever done in the past. Work was also done to tackle counterfeits in rural areas. A QR (quick
response) code-enabled anti-counterfeit solution was created for Maggi’s Masala-Ae-Magic to
ensure the authenticity of the pack. “We also initiated an awareness campaign titled ‘Har peela
noodle ka packet Maggi nahi hota (every yellow pack is not Maggi),” informs Nikhil Chand,
director (foods & confectionery) at Nestlé India. From participating in local haats (markets) to
advertising in local languages, Nestlé started reaching out to rural consumers in a much more
aggressive manner.

Though Nestlé’s rural contribution to sales (around 25 percent) is the lowest among its
peers—Dabur gets 47 percent—Narayanan is not worried.

Rural India will continue to drive internet adoption and is expected to witness double-digit
growth for the next few years. Rising internet consumption, aided by tumbling data rates,

15
plunging cost of smartphones and an increase in rural penetration of smartphones, has given
wings to the aspirations of consumers in the hinterland.

Nestlé’s rural footprint, Narayanan underlines, has expanded on the basis of five key
vectors: Wider penetration; expansion of the portfolio; deploying suitable structure of
people; ensuring visibility of products where they matter; and consumer connect in terms
of campaigns and activations.

16
Rural Marketing Segmentation:
The process of segmenting a potential rural market into discrete submarkets of consumers with
similar requirements and characteristics is known as rural market segmentation. The first step
in implementing a rural marketing strategy is to segment the market.

Suresh Narayanan, Chairman and Managing Director of FMCG giant Nestlé, revealed that the
business plans to reach more than 1.2 lakh villages in rural India by 2024, each with a
population of over 5,000 people. Nestlé is modifying its product portfolio to meet the needs of
rural consumers by updating select goods.

Nestlé initially concentrated on tier 1 and tier 2 cities, where it was experiencing tremendous
demand. It subsequently turned its attention to smaller communities with populations of 10,000
to 15,000 people. To expand its reach, the corporation began studying customers' requirements
and shopping behaviors across other geographies. This allowed the corporation to develop
market-specific strategies and modify its products accordingly.

Nestlé had historically relied on a few signature brands, such as Maggi and Nescafé, to keep
the company afloat. It began offering custom-made products in various packages once it began
catering to rural areas.

Nestlé a+ Banglar Misti Dai, Ceregrow organic cereals, Lactogrow for toddlers, and
OPTIFAST weight management products were also introduced. It introduced new sauces,
soups, pasta, and poha varieties under the Maggi brand. Maggi introduced two new flavors:
Yummy Capsica and Chatpata Tomato, as well as atta spinach noodles.Nestlé introduced
Maggi fried rice masala, Paneer masala mix, and Nestlé Cereal Daliya to meet increased
demand from towns and tier 2 and tier 3 cities.

At the same time, Nestlé pulled several goods from the market that were not selling well. Milo,
a health drink, was one among them, as it had failed to gain traction despite its long-term
presence. Nestlé Chocostik, butter, and Nestlé Choo were among the products that Nestlé
decided to withdraw from the market. Nestlé had covered 89,000 communities with its rural
push by 2019.

17
Market Competitors:
Nestlé is a late entrant to the competition. In the 1940s, Hindustan Unilever Ltd (HUL) was
one of the first companies in India to build a robust rural distribution network and expand its
reach. HUL later expanded its distribution network in the 1990s with Project Shakti, which
helped women in becoming entrepreneurs by selling HUL products. HUL was able to cover
over half of India's 6,00,000+ villages as a result of the initiative.
Other FMCG firms aren't far behind - in 2021, ITC served roughly a million villages. P&G is
expanding its network in order to reach out to more rural communities. Marico has grown its
number of stockists by 30%, bringing the total to 6,200. Dabur, which has over 6.7 million
outlets in both urban and rural areas, said that rural sales accounted for 46% of total sales.
Nestlé initially concentrated on tier 1 and tier 2 cities, where it was experiencing tremendous
demand. It subsequently turned its attention to smaller communities with populations of 10,000
to 15,000 people. To expand its reach, the corporation began studying customers' requirements
and shopping behaviors across other geographies. This enabled the company to develop
market-specific strategies and modify its products accordingly.
Nestlé's rural footprint has grown due to five major vectors: increased penetration, portfolio
growth, deploying suitable structure of people, product visibility where it matters, and
consumer engagement through campaigns and activations.

Challenges faced by Nestle:

The weaknesses of a company restrict it from reaching its full potential. A poor brand, higher-
than-average turnover, excessive levels of debt, an insufficient supply chain, or a lack of cash
are all examples of areas where the company must improve in order to remain
competitive. They have lately been criticized for utilising lead in the making of Maggi.

The following are some of Nestle's challenges:

• Control span and organisational structure - Nestlé is structured in a matrix. As a
result, a huge number of brands are grouped under the same umbrella, making it
difficult to manage the enormous number of brands. Managing a big number of
different brands can lead to a lot of disagreements and conflicts of interest.
• Nestle was recently accused of unlawfully pumping millions of litres of water in six
countries where communities lack access to safe drinking water.
• Social criticisms - Nestle has been the subject of much media scrutiny. Some of the
examples that have harmed its market reputation include claims to privatise water, false
labelling, and a lawsuit for chocolate production utilising child and slave labour.
• Maggi Noodles Crisis: Nestle failed a laboratory test in India in 2017, leading to the
Maggi Noodles issue. People boycotted Nestle as a result of this, and the company lost
80% of its market share in the country. In the Noodles packets, Nestle claimed that
there was no additional MSG. After testing, however, 1000 times more lead was
discovered in the product.
• Unfair baby formula marketing;
• debt repayment demands from a famine-stricken country; misleading labelling; anti-
unionism
• Numerous problems in various places of operation cause issues as a large global brand.
• Nestle's market share growth is constrained due to fierce competition from other brands.

18
Conclusion:
NESTLÉ has been a partner in India's growth for over a century now and has built a
authentically special relationship of trust and commitment with the people of India. The
Company's conditioning in India have eased direct and circular employment and provided
livelihood to about one million people including growers, suppliers of packaging materials,
services, and other goods. The Company continuously focuses its sweats to more understand
the changing cultures of India and anticipate client requirements in order to give Taste,
Nutrition, Health, and Wellness through its product offerings.

It helps the Company to produce value that can be sustained over the long term by offering
consumers a wide variety of high- quality, safe food products at affordable prices. With
Maggi off the shelves, Nestle’s profit took a huge megahit. In the intermediating times,
Nestle revamped its product portfolio. The Maggi fermentation created a positive shift in
Nestle’s product strategies. Still, this was when Nestle was majorly an civic request brand,
with Tier 1 and Tier 2 cities garnering utmost of the profit for the brand. Despite the FMCG
market growing, Nestle’s growth had been substantially stagnant in the once 3-4 times, while
it’s contenders’ request share and profit sounded to be growing and performing well. Nestle
most clearly lost out on the first transport advantage in the pastoral areas, with its reach
limited to a bare townlets during this time.

Nestle recognised the strength of the pastoral request latterly than its rivals, still, it's now
roundly capturing the rural market share albeit the competition. The FMCG major has plans
to reach around1.2 lakh Indian townlets with each vill having a population of around 5000
people. With Maggi formerly being a favorite in the request, Nestle will have a set consumer
base willing to try its new products. The stylish performing products of Nestle in the pastoral
request presently are Maggi Noodles, Magic Masala and Maggi Fried Rice. The product
strategies of Nestle in pastoral areas feel to be analogous to that of the civic areas, the product
portfolio is n’t likely to suffer a major reform, still, Nestle is attracting the pastoral consumers
with the right pricing and marketing strategies. With Affordability and Mindfulness playing a
major part in the pastoral request Nestle is set to increase its pastoral request share in the
coming times.

Nestle's pricing approach differs significantly from that of the other brands. It's entirely
dependent on recognition, frequently known as the perceived quality of the product. Nestle
chose to give a further affordable price for several of its 2000 brands. It's entirely dependent
on the request sector in question. Nestle has learned throughout time that guests don't protect
for food every day. 5 to encourage people to buy its products. This strategy helps the brand to
get the consumers on board with their products and also formerly the consumer base has been
set they can alter the prices as per the demand. The company has created two kinds of
distributors, videlicet Trade and Chocolate. The former deals with the Maggie range, Nestle
dahi, Aquafina etc. It has been realized that a retailer has a limited fund for a day's purchase.
representative goes for an order with 50 SKU’s the retailer will only buy what his fund
allows for a one time purchase. request with its operation “ STING”. Whereby the deals
representatives on the company. go on bikes and try to fulfill the order of small ignored and
unserved outlets. illustration. They've customized promotional strategies for pastoral requests
using original language and gift. To attract further guests the company constantly releases
buy-one- progeny-one price elevations, abatements, deals deals, and comps.

19
The process of segmenting an implicit pastoral request into separate submarkets of
consumers with analogous conditions and characteristics is known as pastoral request
segmentation. The first step in enforcing a pastoral marketing strategy is to member the
request. Suresh Narayanan, Chairman and Managing Director of FMCG giant Nestlé,
revealed that the business plans to reach further than1.2 lakh townlets in pastoral India by
2024, each with a population of over people. To expand its reach, the pot began studying
guests' conditions and shopping actions across other topographies. This allowed the pot to
develop request-specific strategies and modify its products consequently. Nestlé had
historically reckoned on umbrella brands, similar as Maggi and Nescafé, to keep the company
round. Nestlé’s Banglar Misti Dai, Ceregrow organic cereals, Lactogrow for toddlers, and
OPTIFAST weight operation products were also introduced. At the same time, Nestlé pulled
several goods from the request that weren't dealing well.

Nestlé is a late entrant to the competition. However, with the adoption of right strategies in
the rural market the future for Nestle seems bright. If Nestle is able to achieve its 1.2 lakh
villages within the stipulated time period, it will have set up a strong consumer base in the
rural areas and will be in a better position to device strategies to grow further and compete
with the other FMCG players already present in the market.

20
 References

https://squeezegrowth.com/nestle-marketing-strategies/

https://www.business-standard.com/article/companies/nestle-india-digs-deeper-in-the-
rural-market-aims-to-grow-business-121032201429_1.html

https://www.business-standard.com/article/companies/nestle-india-digs-deeper-in-the-
rural-market-aims-to-grow-business-121032201429_1.html

https://bloncampus.thehindubusinessline.com/case-studies/nestl-powers-on-with-a-
rural-revamp-and-innovation/article64635111.ece

https://www.indiainfoline.com/company/nestle-india-
ltd/summary/175#:~:text=Nestle%20India%20manufactures%20products%20under,D
ahi%20and%20Nestle%20Jeera%20Raita.

https://www.nestle.in/brands

https://www.nestle.in/

https://www.zmescience.com/science/nestle-company-pollution-children/

https://www.mbaskool.com/brandguide/food-and-beverages/3227-nestle-ltd.html

https://www.slideshare.net/gourav423/channel-distribution-system-of-nestle-india-ltd-
46964605

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