NCCN: Nestle’s Change in Organizational Structure and Strategies

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literature review of nestle company

  • S. Prakash Sethi 4  

Part of the book series: Issues in Business Ethics ((IBET,volume 6))

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Nestle’s experience in dealing with its critics, the news media, and the public-at-large, until this time, had been less than successful. This was especially the case in the United States where its critics had been singularly effective in launching a boycott against its products and in isolating the company from the U.S.-based infant formula manufacturers. Even Nestle’s endorsement of the code — the first of any major infant formula company — was viewed with skepticism. As we pointed out earlier (in Chapter 10), of the book, Nestle lacked experience in social issues management as well as in integrated corporate management. Its highly decentralized corporate structure, localized profit centers, a deference to subsidiary managers in the areas of public and political affairs, and a strong corporate culture found the company ill prepared to handle sociopolitical issues in one country that would impact its worldwide operations.

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Sethi, S.P. (1994). NCCN: Nestle’s Change in Organizational Structure and Strategies. In: Multinational Corporations and the Impact of Public Advocacy on Corporate Strategy. Issues in Business Ethics, vol 6. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-1394-6_15

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Research methodology of nestle and cadbury chocolates

nestle and cadbury chocolates research methodology with data collection, data analysis and data interpretation for mcom part -II students Read less

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  • 1. 1 UNIVRSITY OF MUMBAI PROJECT REPORT ON RESEARCH METHODOLOGY RESEARCH METHODOLOGY OF NESTLÉ BY MISS YOGITA SAVARMAL VARMA M.COM (Part II) (SEM III) (Roll No. 64) ACADEMIC YEAR 2016-2017. PROJECT GUIDE PROF. RACHNA JOSHI PARLE TILAK VIDYALAYA ASSOCIATION’S M.L.DAHANUKAR COLLEGE OF COMMERCE DIXIT ROAD, VILE PARLE (EAST) MUMBAI - 400057.
  • 2. 2 DECLARATION I, Miss Varma Yogita Savarmal of PARLE TILAK VIDYALAYA ASSOCIATION’S M.L.DAHANUKAR COLLEGE OF COMMERCE OF MCOM (PART II) (Roll no. 64) (Semester III) hereby declare that I have completed this project on RESEARCH METHODOLOGY OF NESTLE in academic year 2016-17. The information submitted is true and original in the best of my knowledge. (Signature of student)
  • 3. 3 ACKNOWLEDGEMENT To list who all helped me is difficult because they are so numerous and the depth is so enormous. I would like to acknowledge the following as being idealistic channels and fresh dimensions in the completion of this project. I would firstly thank the Universityof Mumbai for giving me chance to do this project. I would like to thank my principal, Dr. Madhavi Pethe for providing the necessary facilities required for completion of this project. I even will like to thank our coordinator, for the moral support that we received. I would like to thank our college library, for providing various books and magazines related to my project. Finally, I proudly thank my parents and friends for their support throughout the project.
  • 4. 4 TABLE OF CONTENTS SR NO. CONTENT PAGE 1 INTRODUCTION- RESEARCH METHODOLOGY 5-10 2 INDUSTRY OVERVIEW 11-16 3 OVERVIEW OF ORGANIZATION 17-20 4 RESEARCH METHODOLOGY 21-22 5 LITERATURE REVIEW 23-24 6 RESEARCH DESIGN 25-26 7 DATA COLLECTION 27-28 8 PRIMARY DATA ANALYSIS 29-30 9 QUESTIONNAIRE 31-40 10 SECONDARY DATA 41-42 11 HYPOTHESIS 43 12 FACTS & FINDINGS 44-47 13 CONCLUSION 48 14 RECOMMENDATION 49 15 BIBLIOGRAPHY 50 16 QUESTIONNAIRE 51-52
  • 5. 5 RESEARCH Research comprises "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of humans, culture and society, and the use of this stock of knowledge to devise new applications." It is used to establish or confirm facts, reaffirm the results of previous work, solve new or existing problems, support theorems, or develop new theories. A research project may also be an expansion on past work in the field. To test the validity of instruments, procedures, or experiments, research may replicate elements of prior projects, or the project as a whole. The primary purposes of basic research (as opposed to applied research) are documentation, discovery, interpretation, or the research and development (R&D) of methods and systems for the advancement of human knowledge. Approaches to research depend on epistemologies, which vary considerably both within and between humanities and sciences. There are several forms of research: scientific, humanities, artistic, economic, social, business, marketing, practitioner research, life, technological, etc. The word research is derived from the Middle French "recherche", which means "to go about seeking", the term itself being derived from the Old French term "recerchier" a compound word from "re-" + "cerchier", or "sercher", meaning 'search'. The earliest recorded use of the term was in 1577.
  • 6. 6 Objectives of Research: The objective of research is to find answers to the questions by applying scientific procedures. In other words, the main aim of research is to find out the truth which is hidden and has not yet been discovered. Although every research study has its own specific objectives, the research objectives may be broadly grouped as follows: 1. To gain familiarity with new insights into a phenomenon (i.e., formulative research studies); 2. To accurately portray the characteristics of a particular individual, group, or a situation (i.e., descriptive research studies); 3. To analyse the frequency with which something occurs (i.e., diagnostic research studies); and 4. To examine the hypothesis of a causal relationship between two variables (i.e., hypothesis- testing research studies). ResearchApproaches: There are two main approaches to research, namely quantitative approach and qualitative approach. The quantitative approach involves the collection of quantitative data, which are put to rigorous quantitative analysis in a formal and rigid manner. This approach further includes experimental, inferential, and simulation approaches to research. Meanwhile, the qualitative approach uses the method of subjective assessment of opinions, behaviour and attitudes. Research in such a situation is a function of the researcher’s impressions and insights. The results generated by this type of research are either in non-quantitative form or in the form which cannot be put to rigorous quantitative analysis. Usually, this approach uses techniques like in depth interviews, focus group interviews, and projective techniques. Types of Research: There are different types of research. The basic ones are as follows. 1. Descriptive versus Analytical: Descriptive research consists of surveys and fact-finding enquiries of different types. The main objective of descriptive research is describing the state of affairs as it prevails at the time of study. The term ‘ex post facto research’ is quite often used for
  • 7. 7 descriptive research studies in social sciences and business research. The most distinguishing feature of this method is that the researcher has no control over the variables here. He/she has to only report what is happening or what has happened. Majority of the ex post facto research projects are used for descriptive studies in which the researcher attempts to examine phenomena, such as the consumers’ preferences, frequency of purchases, shopping, etc. Despite the inability of the researchers to control the variables, ex post facto studies may also comprise attempts by them to discover the causes of the selected problem. The methods of research adopted in conducting descriptive research are survey methods of all kinds, including correlational and comparative methods. Meanwhile in the Analytical research, the researcher has to use the already available facts or information, and analyse them to make a critical evaluation of the subject. 2. Applied Versus Fundamental: Research can also be applied or fundamental in nature. An attempt to find a solution to an immediate problem encountered by a firm, an industry, a business organisation, or the society is known as applied research. Researchers engaged in such researches aim at drawing certain conclusions confronting a concrete social or business problem. On the other hand, fundamental research mainly concerns generalizations and formulation of a theory. In other words, “Gathering knowledge for knowledge’s sake is termed ‘pure’ or ‘basic’ research” (Young in Kothari, 1988). Researches relating to pure mathematics or concerning some natural phenomenon are instances of Fundamental Research. Likewise, studies focusing on human behaviour also fall under the category of fundamental research. Thus, while the principal objective of applied research is to find a solution to some pressing practical problem, the objective of basic research is to find information with a broad base of application and add to the already existing organized body of scientific knowledge. 3. Quantitative versus Qualitative: Quantitative research relates to aspects that can be quantified or can be expressed in terms of quantity. It involves the measurement of quantity or amount. Various available statistical and econometric methods are adopted for analysis in such research. Which includes correlation, regressions and time series analysis etc,. On the other hand, Qualitative research is concerned with qualitative phenomena, or more specifically, the aspects related to or involving quality or kind. For example, an important type of qualitative research is ‘Motivation Research’, which investigates into the reasons for certain human behaviour. The
  • 8. 8 main aim of this type of research is discovering the underlying motives and desires of human beings by using in-depth interviews. The other techniques employed in such research are story completion tests, sentence completion tests, word association tests, and other similar projective methods. Qualitative research is particularly significant in the context of behavioural sciences, which aim at discovering the underlying motives of human behaviour. Such research helps to analyse the various factors that motivate human beings to behave in a certain manner, besides contributing to an understanding of what makes individuals like or dislike a particular thing. However, it is worth noting that conducting qualitative research in practice is considerably a difficult task. Hence, while undertaking such research, seeking guidance from experienced expert researchers is important. 4. Conceptual versus Empirical: The research related to some abstract idea or theory is known as Conceptual Research. Generally, philosophers and thinkers use it for developing new concepts or for reinterpreting the existing ones. Empirical Research, on the other hand, exclusively relies on the observation or experience with hardly any regard for theory and system. Such research is data based, which often comes up with conclusions that can be verified through experiments or observation. Empirical research is also known as experimental type of research, in which it is important to first collect the facts and their sources, and actively take steps to stimulate the production of desired information. In this type of research, the researcher first formulates a working hypothesis, and then gathers sufficient facts to prove or disprove the stated hypothesis. He/she formulates the experimental design, which according to him/her would manipulate the variables, so as to obtain the desired information. This type of research is thus characterized by the researcher’s control over the variables under study. In simple term, empirical research is most appropriate when an attempt is made to prove that certain variables influence the other variables in some way. Therefore, the results obtained by using the experimental or empirical studies are considered to be the most powerful evidences for a given hypothesis.
  • 9. 9 Importance Of Knowing How To Conduct Research: The importance of knowing how to conduct research are listed below: i. The knowledge of research methodology provides training to new researchers and enables them to do research properly. It helps them to develop disciplined thinking or a ‘bent of mind’ to objectively observe the field; ii. The knowledge of doing research inculcates the ability to evaluate and utilize the research findings with confidence; iii. The knowledge of research methodology equips the researcher with the tools that help him/her to make the observations objectively; and iv. The knowledge of methodology helps the research consumers to evaluate research and make rational decisions. RESEARCH METHODS AND RESEARCH METHODOLOGY - Is there any difference between research methods and research methodology? Researchmethods are the various procedures, schemes and algorithms used in research. All the methods used by a researcher during a research study ar e termed as research methods. They are essentially planned, scientific and value-neutral. They include theoretical procedures, experimental studies, numerical schemes, statistical approaches, etc. Research helps us collect samples, data and find a solution to a problem. Particularly, scientific research methods call for explanations based on collected facts, measurements and observations and not on reasoning alone. They accept only those explanations which can be verified by experiments. Researchmethodology is a systematic way to solve a problem. It is a science of studying how research is to be carried out. Essentially, the procedures by which researchers go about their work of describing, explaining and predicting phenomena are called research methodology. It is also defined as the study of methods by which knowledge is gained. Its aim is to give the work plan of research.
  • 10. 10 VARIOUS STAGES OF A RESEARCH Whenever a scientific problem is to be solved there are several important steps to follow. The problem must be stated clearly, including any simplifying assumptions. Then develop a mathematical statement of the problem. This process may involve use of one or more mathematical procedures. Frequently, more advanced text books or review articles will be needed to learn about the techniques and procedures. Next, the results have to be interpreted to arrive at a decision. This will require experience and an understanding of the situation in which the problem is embedded. A general set of sequential components of research is the following: 1. Selection of a research topic 2. Definition of a research problem 3. Literature survey and reference collection 4. Assessment of current status of the topic chosen 5. Formulation of hypothesis 6. Research design 7. Actual investigation 8. Data analysis 9. Interpretation of result 10. Report
  • 11. 11 INDUSTRY OVERVIEW History of Chocolate The first recorded evidence of chocolate as a food product goes back to Pre-Columbian Mexico. The Mayans and Aztecs were known to make a drink called "Xocoatll from the beans of the cocoa tree. In 1528, the conquering Spaniards returned to Spain with chocolate still consumed as a beverage. A similar chocolate drink was brought to a royal wedding in France in 1615, and England welcomed chocolate in 1662. To this point "chocolate" as we spell it today, had been spelled variously as "chocalatall, "jocolatte", "jacolatte", and "chockelet.11 In 1847, Fry & Sons in England introduced the first "eating chocolate," but did not attract much attention due to its bitter taste. In 1874, Daniel Peter, a famed Swiss chocolateer, experimented with various mixtures in an effort to balance chocolates rough flavor, and eventually stumbled upon that abundant product -- milk. This changed everything and chocolate's acceptance after that was quick and enthusiastic. GROWING COCOA BEANS Cocoa beans are usually grown on small plantations in suitable land areas 20 degrees north or south of the Equator. One mature cocoa tree can be expected to yield about five pounds of chocolate per year. These are planted in the shade of larger trees such as bananas or mangos, about 1000 trees per hectare (2,471 acres). Cocoa trees take five to eight years to mature. After harvesting from the trees, the pods (which contain the cocoa beans) are split open, beans removed, and the beans are put on trays
  • 12. 12 covered with burlap for about a week until they brown. Then they are sun dried until the moisture content is below 7%. This normally takes another three days. After cleaning, the beans are weighed, selected and blended before roasting at 250 degrees Fahrenheit for two hours. Then shells are removed leaving the "nib." Nibs are crushed to create a chocolate "mass." This is the base raw material from which all chocolate products are made. KINDS OF CHOCOLATE - Milk Chocolate This consists of at least 10% chocolate liquor ("raw" chocolate pressed from carob nibs) and 12% milk solids combined with sugar, cocoa butter (fat from nibs), and vanilla. Sweet and Semi-Sweet Chocolate Are made from 15-35% chocolate liquor, plus sugar, cocoa butter, and vanilla. Imprecision of the two terms causes them to commonly be called "dark" or "plain" chocolate. Dark chocolate has a large following among dessert makers, and for this reason is referred to as "baking" chocolate. - Bittersweet and Bitter Chocolate Bittersweet usually contains 50% chocolate liguor and has a distinct "bite" to the taste. Bitter or unsweetened chocolate liquor also is used in baking and is also referred to as "bakers" chocolate. - Creams and Variations Bite sized and chocolate covered. They are filled with caramels, nuts, creams, jellies, and so forth. - White Chocolate Is not really chocolate as it contains no chocolate liquor, Carob This is a brown powder made from the pulverized fruit of a Mediterranean evergreen. It is used by some as a substitute for chocolate because it can be combined with vegetable fat and sugar, and made to approximately the color and consistency of chocolate.
  • 13. 13 PRODUCTION OF CHOCOLATE Chocolate is a key ingredient in many foods such as milk shakes, candy bars, cookies and cereals. It is ranked as one of the most favourite flavours in North America and Europe (Swift, 1998). Despite its popularity, most people do not know the unique origins of this popular treat. Chocolate is a product that requires complex procedures to produce. The process involves harvesting coca, refining coca to cocoa beans, and shipping the cocoa beans to the manufacturing factory for cleaning, coaching and grinding. These cocoa beans will then be imported or exported to other countries and be transformed into different type of chocolate products (Allen, 1994). Harvesting Cocoa & Cocoa processing Chocolate production starts with harvesting coca in a forest. Cocoa comes from tropical evergreen Cocoa trees, such as Theobroma Cocoa, which grow in the wet lowland tropics of Central and South America, West Africa and Southeast Asia (within 20 C of the equator) (Walter,1981) . Cocoa needs to be harvested manually in the forest. The seed pods of coca will first be collected; the beans will be selected and placed in piles. These cocoa beans will then be ready to be shipped to the manufacturer for mass production. Step #1: Plucking and opening the Pods Cocoa beans grow in pods that sprout off of the trunk and branches of cocoa trees. The pods are about the size of a football. The pods start out green and turn orange when they're ripe. When the pods are ripe, harvesters travel through the cocoa orchards with machetes and hack the pods gently off of the trees. Cocoa Pods and harvesting
  • 14. 14 Machines could damage the tree or the clusters of flowers and pods that grow from the trunk, so workers must be harvest the pods by hand, using short, hooked blades mounted on long poles to reach the highest fruit. After the cocoa pods are collected into basket, the pods are taken to a processing house. Here they are split open and the cocoa beans are removed. Pods can contain upwards of 50 cocoa beans each. Fresh cocoa beans are not brown at all, they do not taste at all like the sweet chocolate they will eventually produce. Step #2: Fermenting the cocoa seeds Now the beans undergo the fermentation processing. They are either placed in large, shallow, heated trays or covered with large banana leaves. If the climate is right, they may be simply heated by the sun. Workers come along periodically and stir them up so that all of the beans come out equally fermented. During fermentation is when the beans turn brown. This process may take five or eight days. Step #3: Drying the cocoa seeds After fermentation, the cocoa seeds must be dried before they can be scooped into sacks and shipped to chocolate manufacturers. Farmers simply spread the fermented seeds on trays and leave them in the sun to dry. The drying process usually takes about a week and results in seeds that are about half of their original weight. The dried and roasted Cocoa beans Manufacturing Chocolate Once the cocoa beans have reached the machinery of chocolate factories, they are ready to be refined into chocolate. Generally, manufacturing processes differ slightly due to the different species of cocoa trees, but most factories use similar machines to break down the cocoa beans into cocoa butter and chocolate (International Cocoa Organization, 1998). Firstly, fermented and
  • 15. 15 dried cocoa beans will be refined to a roasted nib by winnowing and roasting. Then, they will be heated and will melt into chocolate liquor. Lastly, manufacturers blend chocolate liquor with sugar and milk to add flavour. After the blending process, the liquid chocolate will be stored or delivered to the molding factory in tanks and will be poured into moulds for sale. Finally, wrapping and packaging machines will pack the chocolates and then they will be ready to transport. Step #1: Roasting and Winnowing the Cocoa The first thing that chocolate manufacturers do with cocoa beans is roast them. This develops the colour and flavour of the beans into what our modern palates expect from fine chocolate. The outer shell of the beans is removed, and the inner cocoa bean meat is broken into small pieces called "cocoa nibs." The roasting process makes the shells of the cocoa brittle, and cocoa nibs pass through a series of sieves, which strain and sort the nibs according to size in a process called "winnowing". Step #2: Grinding the Cocoa Nibs Grinding is the process by which cocoa nibs are ground into " cocoa liquor", which is also known as unsweetened chocolate or cocoa mass. The grinding process generates heat and the dry granular consistency of the cocoa nib is then turned into a liquid as the high amount of fat contained in the nib melts. The cocoa liquor is mixed with cocoa butter and sugar. In the case of milk chocolate, fresh, sweetened condensed or roller-dry low-heat powdered whole milk is added, depending on the individual manufacturer's formula and manufacturing methods.
  • 16. 16 Step #3: Blending Cocoa liquor and molding Chocolate After the mixing process, the blend is further refined to bring the particle size of the added milk and sugar down to the desired fineness. The Cocoa powder or 'mass' is blended back with the butter and liquor in varying quantities to make different types of chocolate or couverture. The basic blends with ingredients roughly in order of highest quantity first are as follows: Milk Chocolate - sugar, milk or milk powder, cocoa powder, cocoa liquor, cocoa butter, Lethicin and Vanilla. White Chocolate - sugar, milk or milk powder, cocoa liquor, cocoa butter, Lethicin and Vanilla. Plain Dark Chocolate - cocoa powder, cocoa liquor, cocoa butter, sugar, Lethicin and Vanilla. After blending is complete, molding is the final procedure for chocolate processing. This step allows cocoa liquor to cool and harden into different shapes depending on the mold. Finally the chocolate is packaged and distributed around the world. CONSUMPTION OF CHOCOLATES IN INDIA Chocolate consumption in India is extremely low. Per capita consumption is around 160gms in the urban areas, compared to 8-10kg in the developed countries. In rural areas, itis even lower. Chocolates in India are consumed as indulgence and not as a snack food. Astrong volume growth was witnessed in the early 90’s when Cadbury repositionedchocolates from children to adult consumption. The biggest opportunity is likely to stemfrom increasing the consumer base. Leading players like Cadbury and Nestle have beenattempting to do this by value for money offerings, which are affordable to the masses.
  • 17. 17 OVERVIEW OF ORGANIZATION NESTLÉ NESTLÉ INDIA Nestle’ India is a subsidiary of Nestle’ S.A. of Switzerland. The company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships.
  • 18. 18 NESTLÉ STORY Nestle was founded in 1867 in Geneva, Switzerland by Henri Nestle. Nestlé S.A. is a Swiss multinational nutritional and health-related consumer goods company headquartered in Vevey, Switzerland. It is the largest food company in the world measured by revenues. Nestlé’s products include baby food, bottled water, breakfast cereals, coffee, confectionary, dairy products, ice cream, pet foods and snacks. Nestlé employ around 330,000 people in over 150 countries and have 461 factories or operations in 86 countries. Nestlé sales for 2011 were almost CHF 83.7 billion. It is one of the main shareholders of L’Oreal, the world’s largest cosmetics company. Nestlé history begins back in 1866, when the first European condensed milk factory was opened in Cham, Switzerland, by the Anglo-Swiss Condensed Milk Company. In Vevey, Switzerland, Nestlé founder by Henri Nestlé, a German pharmacist, launched his Farinelactee, a combination of cow’s milk, wheat flour and sugar, saving the life of a neighbor’s child. Nutrition has been the cornerstone of the company ever since. In 1905, The Anglo-Swiss Condensed Milk Company, founded by Americans Charles and George Page, merged with Nestlé after a couple of decades as fierce competitors to form the Nestlé and Anglo-Swiss Milk Company. The company grew significantly during the First World War and again following the Second World War, expanding its offerings beyond its early condensed milk and infant formula products. In 2011, Nestlé was listed No.1 in the Fortune Global 500 as the world’s most profitable corporation. The Nestlé Corporate Business Principles are at the basis of the company’s culture, developed over 140 years, which reflects the ideas of fairness, honesty and long-term thinking. Nestlé believes that not only possible to create long-term value for their shareholders if their behavior strategies and operations also create value for the communities where they operate, for their business partners and of course, for their consumers. Nestlé vision is to meet the various needs of the consumer everyday by marketing and selling foods of a consistently high quality. Their objectives are to deliver the very best quality in everything they do, from primary produce, choices of suppliers and transport, to recipes and packaging materials. Their mission is they strive to bring consumers foods that are safe, of high quality and provide optimal nutrient to meet physiological needs. Nestlé helps provide selections for all individual taste and lifestyle preferences.
  • 19. 19 Nestlé purpose is to offer safe, tasty, convenient and nutritious foods to improve health and well-being of consumers of all ages all over the world. To meet the needs and desires of today’s and tomorrow’s consumers, Nestlé is strongly committed to Research and Development (R&D) to improve products and develop new foods with specific health benefits (Nestlé.com, 2012). Nestlé’s first product was "Farine Lactee Nestle", an infant cereal. In 1905, Nestle acquired the Anglo-Swiss Condensed Milk Company. Nestlé’s relationship with India started in 1912. It began trading as The Nestlé Anglo-Swiss Condensed Milk Company (After India's independence in 1947, the economic policies of the Indian Government emphasized the need for local production. Nestlé responded to India's aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab. Nestle India- Presence across India Nestlé India’s 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, Nestlé 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 8th Factory was set up at Tahliwal, Himachal Pradesh, in 2012. NESTLE BRANDS  Milk product & nutrition  Beverages  Prepared dishes & cooking aids  Chocolates & confectionary MILK PRODUCT & NUTRITION - NESTLE EVERYDAY dairy winter - NESTLE EVERYDAY slim - NESTLE EVERYDAY ghee - NESTLE’S MILK MAID - NESTLE’S FRESH AND NATURAL DAHI
  • 20. 20 - NESTLE’S MILK - NESTLE’S SLIM MILK BEVERAGES - NESCAFÉ CLASSIC - NESCAFÉ SUNRISE - NESTLÉ MILO - NESCAFÉ 3 IN 1 - NESCAFÉ KOOLREZ PREPARED DISHESANDCOOKING AIDS - MAGGI 2-MINUTE NOODELS - MAGGI VEGETABLE ATTA NOODELS - MAGGI DALATTA NOODELS - MAGGI RICE NOODELS MAIN - MAGGI SAUCES - MAGGI PIZZA MAZZA - MAGGI HEALTHY SOUPS - MAGGI -HEALTHY SOUPSSANJEEVNI - MAGGI MAGIC CUBES CHOCOLATES &CONFECTIONARY - NESTLÉ KITKAT - NESTLÉ KITKATLITE - NESTLÉ MUNCH - NESTLÉ MUNCH POP CHOC - NESTLÉ MILKY BAR - NESTLÉ BAR- ONE - NESTLÉ FUNBAR - NESTLÉ MILK CHOCOLATE - POLO POWER MINT - NESTLÉ ECLAIRS
  • 21. 21 RESEARCH METHODOLOGY Relevance of the Study This research is been conducted to survey the product performance and buying behavior of consumer in selection of chocolates. The relevance of the study is to survey the product performance and buying behavior of two famous brands of chocolates – Nestle and Cadbury, which are consumed by people of all ages. During this research I have interacted with people of JUMBO DARSHAN AREA. This research is to know which particular brand of chocolate is most preferred by people of different age groups. Research Problem Every research has their own problem and limitation but good researcher have to overcome that problem by their skill. In this research problem I would like to understand and analyze about the chocolates products available in jumbo Darshan area and collect the feedback from group of people and I wanted to know the developments made in direction of chocolates industry. Objective of the study The purpose of this report is to evaluate Nestle Company industry based on the case study and comprehend how the company develops strategic intent for their business organizations following the analysis of external and internal business environments. I will analyze the strategic management process as firm used to achieve strategic competitiveness and earn above-average returns. I will discuss the strategy formulation that includes business-level strategy and corporate-level strategy. -To study on consumer preference towards Cadbury and Nestle chocolates. -To know the consumers view towards the chocolates. -To know which category of chocolate is most preferred.
  • 22. 22 -To study on various parameters on which the consumer purchases the chocolates. - To increase customer satisfaction and recapture the market share by fulfilling the customer needs. - To study the factors affecting the consumption pattern. It also aims to identify market place opportunities and threats in the external environment and to decide how to use their resources, capabilities and core competencies in the firm’s internal environment to pursue opportunities and overcome threats. In order to strengthen this assignment about Nestle, there are several methods of gathering data has been conducted, such as PEST analysis, Porter’s 5 forces model, value chain analysis and SWOT analysis. By the end of this assignment, future strategy will be mentioned as well as my recommendations about Nestle that will fit into strategic orientation in order to perform better in their business world. And continue to develop and implement its learning approach as the chosen large company by using different strategies.
  • 23. 23 Literature Review Dr.Shendge (2012) on his study “A Comparative Study of Consumer Preference towards Cadbury and Nestle Chocolates with Special Reference to Navi Peth Area in Solapur City” viewed that Chocolate is liked and eaten by all age group of people. Attiya Kanwal (2011) on his study “Consumer preference of International brands over local brands” aimed at determining consumer preference of international brands instead if national or local brands. Consumer evaluates products based on information cues, which are intrinsic and extrinsic. If a consumer is satisfied with a product, he will buy it again, become loyal and over time develop a relationship with the brand. There are various factors which influence consumer purchase decision. The price of a brand plays a fundamental role in the consumer’s choice of brand. If a brand is priced too high then a consumer will avoid it. The price of a brand is an indication of the quality of the brand as well. The country of origin of products is another cue used as a sign of quality of a product. Products from developed countries are perceived to be of better quality. Other factors include fashion, family and friends, brand name, availability, advertising campaigns etc. The sample for this research is taken from Islamabad and Rawalpindi. Simple random sampling was the technique used and the sample size was 100. Data collected for research was through a questionnaire, which was distributed among both males and females of various age groups and income levels. Calculations were then analyzed and interpreted using percentage of respondents and frequency distribution. Consumers are seen to give preference to international brands if asked to choose between an international brand and a national brand. Consumers regard international brands to be of better quality, more durable and reliable. Furthermore, they are more price and quality conscious and not very brand loyal. Local companies need to emphasize on the quality of their products in advertisements and their advertisements need to be more targeted and up-beat to attract the younger market segment. Kaberi Bhattacharyya (2011) in his study “The Role of Media in Influencing Customers’ Brand Choice: Some Observations” told that a brand has arrived in the market, is alive and kicking or simply pulling on. Similarly, generations of customers are made known that a brand has still remained relevant in the changing context of time and space. Leveraging on the charm of audio and video, brands engulf our senses and succeed in becoming an intrinsic part of our lives. While the trust earned by them is directly proportional to their attributes and
  • 24. 24 functionalities, the buzz created around the brands by the media helps them break the clutter of competition and stay vibrant in the consumers’ minds. Creative juices give birth to myriad themes, processes, colours and themes and familiar and not-so-familiar faces take them forward. Although advertisements traditionally remain the sheet anchor, brands use other above-the-line and below-the-line techniques to gain an edge or grab eyeballs. All these definitely has fuelled consumerism and the responsibility for developing the consumerist culture that have taken a vice like grip over our lives and its catastrophic impact on the natural environment can be ascribed to a large extent on the burgeoning media. But the irony is that it is the media again which has declared these wrong-doings to the public and implicated the corporate or the brands into the muddle. This has again thrust upon these brands or their mentors to engage in clean or green activities that would resuscitate their image wholeheartedly. G. Vani, M. Ganesh Babu and N. Panchanatham (2010) in his article “Toothpaste Brands –A Study of Consumer Behavior in Bangalore City” focused that the external factors like demographic, social, cultural ,price, quality ,product attributes etc for buying toothpaste. The market share of any product is highly determined by the purchasing behavior of the consumers. Following study is conducted by the researcher to find out the behavior of the consumers, to analyze the preference of consumers, & consumer awareness. Descriptive research design was adopted and the data is collected through primary and secondary sources. The method adopted for conducting survey is questionnaire; Simple random sampling technique was adopted for selecting the consumers. Mr .K.Sivakumar (2007) on his article “Consumers Attitude towards the Products of Indian and Multi National Companies - A Comparative Study with Reference to Electrical and Electronic Products” stated that the entry of MNCs in India leads to exit of certain Indian companies of various industries. However Indian people compromise to purchase Indian products, if they had quality and special features in those products also. People are interested to buy the MNCs products not only for quality or for product features but also for cost, brand image, service, social status and host number of other factors.The impact of MNCs product in Indian industries should play a positive role by framing same rules and regulations as framed for domestic countries. The study attempts to research about the consumer attitude towards Indian and MNCs products for electrical and electronic products in Chennai city and develops various aspects.
  • 25. 25 Research Design For any researcher the research methodology is the most important criteria to decide before the actual research process starts. There are many methods for conducting the research some of them are as under; a) Descriptive vs. Analytical b) Applied vs. Fundamental c) Quantitative vs. Qualitative d) Conceptual vs. Empirical e) Field setting or laboratory testing research The design of a research is a plan or a model that helps researcher to conduct a formal investigation and survey. It is an application of methods and procedures for acquiring the information needs for getting a desire out come. It decides the sources of data and methods for gathering data. A good design insures that the information obtained is relevant to the research question and that it was collected by objectives. Since, research design is simply the frame work or plan for a study. It is a blue print that of a house devised by an architect. My approach to research is descriptive and quite specific. Out of these all research methods the research method, which was most suitable to my research, was descriptive research because it provides me all the opportunities to cover the all the aspect that I require to conduct the research and get an appropriate out come. Descriptive Research: Descriptive research includes surveys and fact – finding enquires of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. In social science and business research we often use the term Ex post facto research for descriptive research studies. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening.
  • 26. 26 Scope of the Study As learning is a human activity and is as natural, as breathing. Despite of the fact that learning is all pervasive in our lives, psychologists do not agree on how learning takes place. How individuals learn is a matter of interest to marketers. They want to teach consumers in their roles as their roles as consumers. They want consumers to learn about their products, product attributes, potential consumers benefit, how to use, maintain or even dispose of the product and new ways of behaving that will satisfy not only the consumer’s needs, but the marketer’s objectives. The scope of my study restricts itself to the analysis of consumer preferences, perception and consumption of Cadbury and Nestle Chocolates. There are many other brands of chocolates available but my study is limited to two major players of chocolates leaving behind the others. The scope of my study is also restricts itself to Jumbo Darshan Area only. There are 2 sources of data i.e. A) Primary Data The data, which are collected for the first time, directly from the respondents to the base of knowledge & belief of the research, are called primary data. The normal procedure is to interview some people individually or in a group to get a sense of how people feel about the topic. So far as this research is concerned, primary data is the main source of information provided by the respondents. B) Secondary Data When the data is collected and compiled in the in a published nature it is called Secondary data. So far as this research is concerned internet, many brochures and magazines have been referred too.
  • 27. 27 DATA COLLECTION a) SAMPLING DESIGN It is true that it is very difficult to do research with whole universe. As we know that it is not feasible to go with population survey because of the numerous Doctors and their scattered location. So for this purpose sample size has to be determined well in advanced and selection of the sample also has to be scientific so that it represents the whole universe. So far as this research is concerned, the sample size is 50. b) INSTRUMENT Taking into consideration research instrument selected by me is questionnaire because it gives more flexibility in terms of data and it has been asked to the responder personally and has an idea of getting an important unknown data that can be collected through their behavior. c) MODE OF DATA COLLECTION: Data collection mode is personal visit and filling up of the questionnaire: SAMPLE UNIVERSE JUMBO DARSHAN AREA SAMPLING TECHNIQUE STRATIFIED RANDOMSAMPLING SAMPLE SIZE 50 RESEARCH INSTRUMENT A STRUCTURED FORMATTEDQUESTIONNAIRE RESEARCH PERIOD 10 DAYS
  • 28. 28 LIMITATION OF STUDY In attempt to make this project authentic and reliable, every possible aspect of the topic was kept in mind. Nevertheless, despite of fact constraints were at play during the formulation of this project. The main limitations are as follows: - Due to limitation of time only few people were selected for the study. So the sample of consumers was not enough to generalize the findings of the study. - The main source of data for the study was primary data with the help of self-administered questionnaires. Hence, the chances of unbiased information are less. - People were hesitant to disclose the true facts. - The chance of biased response can’t be eliminated though all necessary steps were taken to avoid the same.
  • 29. 29 DATA ANALYSIS Table 1: Age wise classification Data: Analysis: Interpretation: According to the above analysis it is concluded that I have surveyed 50 respondents out of which 9, 18, 17, 6 belongs to age group of 5-10, 10-20, 20-30, above30 respectively. 18% 36% 34% 12% No. of Respondents between 5-10 between 10-20 between 20-30 above 30 SR NO. AGE NO. OF RESPONDENTS PERCENTAGE (%) 1 Between 5-10 9 18% 2 Between 10-20 18 36% 3 Between 20-30 17 34% 4 Above 30 6 12% total 50 100%
  • 30. 30 Table 2: Sex wise classification Data: SR. NO. SEX NO. OF RESPONDENTS PERCENTAGE (%) 1 male 22 44% 2 female 28 56% total 50 100% Analysis: Interpretation: According to the above analysis it is concluded that I have surveyed 50 respondents out of which 22 are male and 28 are female. 44% 56% No. of Repondents male female
  • 31. 31 QUESTIONNAIRE 1) Which is the leading brand according to you, Rank the following? Data: BRANDS 1 2 3 4 TOTAL NESTLE 24% 48% 18% 10% 100% 12 24 9 5 50 CADBURY 76% 16% 8% 0% 100% 38 8 4 0 50 Analysis: Interpretation: - 38 respondents say Cadbury is a 1st leading brand in the market. - 24 of the respondents say Nestle is a 2nd leading brand in the market. nestle cadbury 12 38 24 89 45 0 LEADING BRAND 1 2 3 4
  • 32. 32 2) Which brand of chocolate do you prefer? Data: SR. NO. OPTIONS NO. OF RESPONDENTS % 1 Cadbury 38 76% 2 nestle 12 24% total 50 100% Analysis: Interpretation: There are many brands available in the market. But the market leaders in India are Cadbury and Nestle. According to survey- - 76% of the respondents prefer Cadbury brand of chocolate. - 24% of the respondents prefer Nestle brand of chocolate. 24% 76% PREFERENCE OF BRAND NESTLE CADBURY
  • 33. 33 3) Which sub-brand of Cadbury chocolate you have preferred more? Data: SR. NO. OPTIONS NO. OF RESPONDENTS % 1 Dairy milk 15 39% 2 5 star 6 16% 3 Perk 5 13% 4 Celebration 4 21% 5 temptation 8 11% Total 38 100% Analysis: Interpretation: From the above analysis of given sample of 38 respondents who eat Cadbury chocolates it is concluded that – - 39% of the respondents have preferred Dairy Milk Chocolate more. - 21% of the respondents have preferred Celebrations Chocolate more. - 16% of the respondents have preferred 5Star Chocolate more. - 13% of the respondents have preferred Perk Chocolate more. - 11% of the respondents have preferred Temptation Chocolate more. 39% 16% 13% 11% 21% CADBURY DAIRY MILK 5 STAR PERK CELEBRATION TEMPTATION
  • 34. 34 4) Which sub-brand of Nestle chocolate you have preferred more? Data: SR. NO. OPTIONS NO. OF RESPONDENTS % 1 Kitkat 3 25% 2 Munch 3 25% 3 Milky bar 2 17% 4 Bar one 2 17% 5 Milk chocolate 2 16% total 12 100% Analysis: Interpretation: From the above analysis of given sample of 12 respondents who eat Nestle chocolates it is concluded that – - 25% of the respondents have preferred Kit Kat Chocolate more. - 25% of the respondents have preferred Munch Chocolate more. - 17% of the respondents have preferred Milky Bar Chocolate more. - 17% of the respondents have preferred Bar-One Chocolate more. - 16% of the respondents have preferred Milk Chocolate more. KITKAT 25% MUNCH 25%MILKY BAR 16% BAR ONE 17% MILK CHOCOLATE 17% NESTLE
  • 35. 35 5) When do you eat chocolate? Data: SR. NO. OPTIONS NO. OF RESPONDENTS % 1 Always 25 50% 2 When I am sad and depressed 4 8% 3 When I am happy 11 22% 4 Only on special occasions 10 20% total 50 100% Analysis: Interpretation: According to the above analysis it is concluded that – - 25 respondents eat chocolates always. - 11 of the respondents eat chocolates when they are happy. - 10 of the respondents eat chocolates only on special occasions. - 4 of the respondents eat chocolates when they are sad and depressed. ALWAYS WHEN I AM SAD AND DEPRESSED WHEN I AM HAPPY ONLY ON SPECIAL OCCASIONS 25 4 11 10 WHEN DO YOU EAT CHOCOLATE
  • 36. 36 6) Where do you normally buy chocolates from? Data: SR. NO. OPTIONS NO. OF RESPONDENTS % 1 Departmental stores 10 20% 2 Super market 7 14% 3 Retail 15 30% 4 others 18 36% total 50 100% Analysis: Interpretation: According to the above analysis it is concluded that – - 18 of the respondents buy chocolates from other sources. - 15 of the respondents buy chocolates from retail store - 10 of the respondents buy chocolates from departmental stores. - 7 of the respondents eat buy chocolates from super market. DEPARTMENTAL STORES SUPER MARKETS RETAIL OTHERS 10 7 15 18 SOURCES OF CHOCOLATE
  • 37. 37 7) Which form of a chocolate do you like? Data: SR. NO. OPTIONS NO. OF RESPONDENTS % 1 Hard 3 6% 2 Nutties 11 22% 3 Crunchy 19 38% 4 chew 17 34% total 50 100% Analysis: Interpretation: Every person has their own taste and preferences towards the eatable product in chocolates. There are four varieties available in the market among this 38% of the consumers like crunchy chocolates, 34% of the consumers like chew chocolates, 22%of the consumers like nutties chocolates & only 6% of the consumers like hard chocolates. HARD 6% NUTTIES 22% CRUNCHY 38% CHEW 34% FORM OF CHOCOLATE
  • 38. 38 8) Which pack of chocolate do you purchase? Data: SR. NO. OPTIONS NO. OF RESPONDENTS % 1 Small 13 26% 2 Big 19 38% 3 Family pack 18 36% Total 50 100% Analysis: Interpretation: The chocolate are available in the market in different packs like small, big and family pack. According to the survey, 38% of the respondents are buying big pack, 36% of the respondents are buying family pack and26% of the respondents are buying small pack of chocolate. So we came to know that the consumption of big pack is having boom in the market compare to other pack SMALL 26% BIG 38% FAMILY PACK 36% SIZE OF PACK
  • 39. 39 9) How much are you satisfied with the following factors in your preferred brand of chocolate (Cadbury)? Data: FACTORS SATISFIED NORMAL NOT SATISFIED TOTAL Flavor/taste 63% 37% 0% 100% Price 32% 39% 29% 100% Quality 82% 16% 2% 100% Packaging 32% 58% 10% 100% Shape 26% 42% 32% 100% quantity 37% 26% 37% 100% Analysis: Interpretation: According to the above analysis it is concluded that – - In flavor/taste, 63% are satisfied and 37% are normal. - In price, 32% are satisfied, 39% are normal and 39% are not satisfied. - In quality, 82% are satisfied, 16% are normal and 2% are not satisfied. - In packaging, 32% are satisfied, 58% are normal and 10% are not satisfied. - In shape, 26% are satisfied, 42% are normal and 32% are not satisfied. - In quantity, 37% are satisfied, 26% are normal and 37% are not satisfied. 63% 32% 82% 32% 26% 37%37% 39% 16% 58% 42% 26% 0% 29% 2% 10% 32% 37% SATISFIED NORMAL NOT SATISFIED
  • 40. 40 10) Howmuch are you satisfied with the following factors in your preferred brand of chocolate (Nestle)? Data: FACTORS SATISFIED NORMAL NOT SATISFIED TOTAL Flavor/taste 83% 17% 0% 100% Price 42% 25% 33% 100% Quality 50% 50% 0% 100% Packaging 0% 67% 33% 100% Shape 8% 59% 33% 100% quantity 8% 42% 50% 100% Analysis: Interpretation: According to the above analysis it is concluded that – - In flavor/taste, 83% are satisfied and 17% are normal. - In price, 42% are satisfied, 25% are normal and 33% are not satisfied. - In quality, 50% are satisfied and 50% are normal. - In packaging, 67% are normal and 33% are not satisfied. - In shape, 8% are satisfied, 59% are normal and 33% are not satisfied. - In quantity, 8% are satisfied, 42% are normal and 50% are not satisfied. 83% 42% 50% 0% 8% 8% 17% 25% 50% 67% 59% 42% 0% 33% 0% 33% 33% 50% SATISFIED NORMAL NOT SATISFIED
  • 41. 41 SECONDARY DATA: Actually, capabilities are the firm’s capacity to deploy resources that have been purposely integrated to achieve a desired end state. Capabilities are often based on developing, carrying and exchanging information and knowledge through the firm’s human capital and also often developed in specific functional areas, such as R&D, marketing, manufacturing, management and so on. In this section, I briefly evaluate of Nestlé’s capabilities (Hanson, D., Hitt, M., Ireland, R. D., &Hoskisson, R. E., 2011, p.79).  Distribution  Nestlé distribution network ensures that every day more than 100.000 tones of products are transported to customers from their factories and distribution centers.  Optimizes their distribution network such as transport and warehousing in order to minimize greenhouse gas emissions, to ensure the most efficient use of their transport to reduce the distances travelled.  Human Resources  The Company employs around 330,000 people, operates in over 150 countries.  Nestlé provides training on the Code, with staff from the 14 departments that are part of the Code’s compliance system participating in yearly or twice yearly training.  Management Information System  By using their research for Information Technology, control all aspects more efficient.  Marketing  Famous brand name and efficient strategy to meet the taste of each type of consumers.  To increase sales and build an image in the mind of consumer, Nestlé Company advertise their product in different ways, as for as Nestlé pure life is concerned company use television, radio, newspaper, bill board.  Management  Nestlé Company has a Board of Directors, led by their Chairman Peter Brabeck Letmathe, who was the former Nestlé CEO.
  • 42. 42  The day to day management of Nestlé business is taken care of by Executive Board members composed of company executives and department heads.  Manufacturing  Nestlé produced a probiotic especially for all infant formulas and created and patented a spray drying process, used in manufacturing milk powders and Nescafe was first used to make powdered paint dispersions.  R&D  Nestlé Company first acquired the milk sterilizing site to develop milk products and processes.  Nestlé’s is boosting its research and development in Switzerland by extending its Product Technology Centre (PTC) in Konolfingen.  The extension will help to enhance Nestlé’s innovative technologies for new product development and apply these to the company’s operations worldwide.
  • 43. 43 HYPOTHESIS DONE FOR NESTLE With socio-economic changes rapidly taking place, the young and not so young population is leading a new life style and chocolate eating is definitely going to be widespread and acceptable. In the industry, both population and family incomes as well as urbanization are on the increase. HYPOTHESIS - There is no significant difference in the ranking of different chocolate brands by consumers. - There is no significant relationship between the impact of media and purchase decision. - There is no significant relationship between influencers and purchase decision. - There is no significant relationship between preferences for more new varieties and Purchase decision. - There is no significant relationship between quality of chocolates and purchase decision. - There is no significant difference among the consumers of Chocolates on the factors like age, gender etc towards their attitude about the usage of chocolate. - Sales of different brand of Chocolates are uniformly distributed i.e. there is no significant difference in the sales of different Chocolates brands.
  • 44. 44 FACTS AND FINDINGS: INTERNAL ANALYSIS: Here, I discuss about the nature of Nestlé’s firm’s internal environment analysis. Evaluate the role of resources and capabilities in developing core competencies, which are the sources of the firm’s competitive advantages. In this section, I will discuss the techniques firms can use to identify and evaluate resources and capabilities and the criteria for selecting core competencies from among them. It also discusses the value chain concept and examines four criteria to evaluate core competencies that establish a competitive advantage to Nestlé Company. Nestlé’s Resources, Tangible and Intangible Product Resources are the source of the firm’s capabilities. Resources are bundled to create organizational capabilities. Some of a firm’s resources are tangible and intangible. Tangible resources are assets that can be seen and quantified. Intangible resources include assets that typically are rooted deeply in the firm’s history and have accumulated over time. Intangible resources are relatively difficult for competitors to analyze and imitate. The four types of tangible resources are financial, organizational, physical and technological. And the three types of intangible resources are human, innovation and reputational (Hanson, D., Hitt, M., Ireland, R. D., &Hoskisson, R. E., 2011, pp. 75-78). Tangible Resources of Nestle  Financial Resources  Total Revenue : CHF 83.64 billion (2011)  Operating income : CHF 12.538 billion (2011)  Profit : CHF 9.487 billion (2011)  Total Equity : CHF 62.60 billion (2010)  Total Assets : CHF 111.64 billion (2010)  Organizational Resources  Nestlé’s governing body is the Annual General Meeting of shareholders.  Leading the company is the Chairman of the Board and CEO.  The most relevant of Nestlé’s organizational measures were the creation of Product Technology Centers, Local Application Centers and Clusters.  Physical Resources  Coffee  Water  Ice Cream  Baby Food
  • 45. 45  Healthcare nutrition  Confectionary  Pharmaceuticals  Technological Resources  Nestlé moved from being a technology led company that produced convenient, tasty foods and beverages for sustenance, to being a science driven, health and Wellness Company.  Continual involvement of rapid technological change. Intangible Resources of Nestle  Human Resources  Approximately 330,000 people have been employed by Nestlé Company.  Innovation Resources  Nestlé R&D generates the innovative science and technology needed to build nutritional and health benefits into products offerings Nestlé legendary sensory excellence.  Reputational Resources  Nestlé scientists play their part in communicating the health and wellness benefits of products to consumers.  From consumer need into research priorities.  From emerging science into consumer benefits and services. SWOT ANALYSIS Strengths  Have a very long history over 140 years  Operated factories in 77 countries in all six continents, a truly global company  Considered the innovation leader in the global food and nutrition sector with 3500 scientists in company R&D network  Offering thousands of local products, research and development capabilities.  Have a great CEO, Peter Brabeck and very strong workforce. Weaknesses  Less consumer research in few areas.  Increasing instances of product recalls hampering brand equity
  • 46. 46  Entering into markets that are already mature and can give a tough competition to new entrants. Opportunities  Well-known company and strong brand name  Health based on products are becoming more popular in the world, including United States  Ranked first in nearly all the product segments in which it operated (market leader)  High credibility  Potential to expand to smaller towns  Improving trends  Industry leadership  Increase the partnership  Product diversity and offerings Threats  Some markets they are entering are already mature  Global competitors  Increasing prices of raw materials  Highly competitive market, multinational companies are very organized and financially strong  Highly competitive market  Increasing prices of raw materials  Strong rival like Kraft, Master foods, and Unilever  Threat of substitute products  Bargaining power of buyers
  • 47. 47 FINDINGS From the experience of my research project with Thakkar Distributors of nestle in Jumbo Darshan Area, I have come to know lot things and it has enhanced my knowledge to great extent I found many things which are well executed by distributors. Here are some of the key findings given by me are purely based on my research. It doesn’t have any kind of bias from my side. They are given as under: By doing the comparison of nestle and Cadbury chocolates I have found that the preference of the chocolates more preferred by the consumer is Cadbury. From the analysis I have found that in nestle some brand has covered 50% of the market in one product (munch) of the chocolates which is a very good sign for the company. Through the research I found that consumer is very conscious about the quality of the product in that matter they are not ready to compromise. And I found both company product are very qualitative. In some cases I found that if a product is not available in the market than some consumer would to switchover to another product or brand. So from these survey I have found that the consumption of the chocolates are more on children and teenage group though having any occasion or not having any occasion. The most selling product of both the companies is in small size of chocolates and there market is 72% because it’s not much costlier. And also easily available & affordable.
  • 48. 48 CONCLUSION The theory based frameworks and models might be very useful but the application in practice might be achieved very hard. It will also depend on the execution skills of the companies and the organizational culture. Nestlé Company is an international company which came to the stage it is today by gaining superior competitive advantage over its rivals. The focus product differentiation strategy has been very successful although it may not work for other firms. The company is able to create and deliver value not only by offering distinguished products but also gaining effectiveness and efficiency by reengineering its business processes. By doing all recommendations and follow all these steps of strategic management processes, Due to increasing overall cost in Chocolate Products everywhere, cost format should be made as such that it is affordable to each and everyone in the society. In this I also found that if the demanded brand is not available, so at that time the customers switch over the brand of the chocolate so, here the company should build up the healthy distribution channel by which company can attract the customers and company loose the fear from the market I am sure that Nestlé Company will do better in the future than their competitors and might be the new trendsetter in some criteria and also gain its above-average returns to their company. Every company have its own problem whether small or big company. This also including Nestle company either internal or external problems. “You can have slow and steady change, and that is nothing to be ashamed of”, - CEO Brebeck Lemathe
  • 49. 49 RECOMMENDATIONS 1. Nestle company can concentrate on its packaging of a chocolate as consumers are not satisfied with it. 2. Consumers are unsatisfied with the price and quantity of chocolate so companies can concentrate in this regard also. 3. Nestle can concentrate more on price and quantity of the product. According to survey, 54% of the consumers are wanted more quantity of chocolate is lesser price. 4. For promotional offers, company can go for free gifts rather than going for other ways. 5. Keep the taste nice 6. Increase advertising & show your competitive edge 7. Increase loyalty of customer with brand through attractive packages 8. Keep the price low, because the day when price will competitor will be very near to your price your sales will be boost up. 9. Increase its distribution network 10. Try to get more & more party orders 11. Give keen interest to CRM 12. Increase incentives & promotional activities 13. More focus on C & D Class Shops by revisiting Shop wise data. 14. Training of ASM’s by Regional Head as a Coach / Team Leader. 15. Training courses/workshops for team 16. Conduct Training Sessions of Salesmen at least once a month at Regional Level. 17. Hiring of Quality Sales people is in process in Faisalabad City. 18. Re-define roles & responsibilities of every Individual in order to bring ownership and sense of responsibility. 19. Weekly Meeting with Distributors and Sales Team in order to review weekly target closing.
  • 50. 50 BIBLIOGRAPHY: Book: - David, F. R. (2009). Strategic management: concept and cases (12th Edition). NJ: Pearson Prentice Hall. - Hanson, D., Hitt, M., Ireland, R. D., & Hoskisson, R. E. (2011).Strategic Management: Competitiveness and globalization (Asia-Pacific 4th Edition). South Melbourne: Cengage Learning Australia. Electronic Media: - Jones, S. (2012). Strategic Management at Nestle. - Retrieved September 17, 2012, fromhttp://www.articlesbase.com/management- articles/strategic-management-at-nestle-5907881.html - Nestle (2012), Nestlé’ Good Food, Good Life. - Retrieved September 18, 2012, from http://www.nestle.com - Nestle (2011). The world’s leading Nutrition, Health and Wellness Company Annual Report 2011. - Retrieved September 20, 2012, from http://www.nestle.com - Scribd Inc. (2012). Competitive Advantage of Nestle. Retrieved September 19, 2012, from http://www.scribd.com/ - http://kninn.blogspot.in/2010/06/recommendations-for-nestle.html
  • 51. 51 QUESTIONNAIRE Name: Address: Age: Between 5-10 Between 10-20 Between 20-30 Above 30 Gender: Male Female Phone/mob.: Questions: 1. Which is the leading brand according to you, Rank the following? Nestle Cadbury 2. Which brand of chocolate do you prefer? Nestle Cadbury 3. Which sub-brand of Cadbury chocolate you have preferred more? Dairy milk Perk 5 star Celebrations Temptation 4. Which sub-brand of Nestle chocolate you have preferred more? Kitkat Milky bar Munch Bar one Milk chocolate 5. When do you eat chocolate? Always When I am sad and depressed When I am happy Only on special occasions
  • 52. 52 6. Where do you normally buy chocolates from? Departmental stores Retail Super market Others 7. Which form of a chocolate do you like? Hard Crunchy Nutties Chew 8. Which pack of chocolate do you purchase? Small Big Family pack 9. How much are you satisfied with the following factors in your preferred brand of chocolate (Cadbury)? FACTORS SATISFIED NORMAL NOT SATISFIED Flavor/taste Price Quality Packaging Shape quantity 10. How much are you satisfied with the following factors in your preferred brand of chocolate (Nestle)? FACTORS SATISFIED NORMAL NOT SATISFIED Flavor/taste Price Quality Packaging Shape quantity

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A COMPARATIVE STATEMENT ANALYSIS ON NESTLE INDIA LIMITED AND BRITANNIA INDUSTRIES LIMITED

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2019, Transstellar

Comparative financial statements can be used by managers and analysts. This allows clear and exhaustive analysis of the company's performance. Comparative financial statements review the potent in its development. This allows determining trends and forecasting changes. Our Indian economy has a major basis on food industry. The objective of this study is to find the current financial position of Britannia Industries Limited and Nestle India Limited uses the tool comparative statement analysis. The data used in the article is secondary data and it covers a study period of two years. The article states the financial position of the companies.

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ADALYA JOURNAL

GOKUL PRIYE PALANIAPPAN , P. Gokulpriye , Kavin P

Financial performance analysis is essential part of business management to know their accounting performance of past, present and future. This paper studies the impact of financial performance of selected food industries in Tamilnadu. The study period of papers is of 5 years i.e. 2013-2018. Both dependent and independent variables are used in this study. Variables used in this study include Return on Assets (ROA) to measure the profitability; Average Collection Period (ACP), Inventory Conversion Period (ICP), Average Payment Period (ACP) and Cash Conversion Cycle (CCC) are used as proxy for working capital management. Debt Ratio, Current Ratio, Sales Growth and are used as control variable. The data analysis is carried out for selected five food industries in Tamilnadu. This study is based on secondary data and data are taken for a period of five years i.e. 2013-2018 in order to calculate all these variables. The research methodology used in this study was descriptive statistics and regression analysis in order to know the impact of these variables on profitability. The result of Regression analysis shows the ROA has negative relationship with ICP, ACP, CCC and Current ratio while ROA has positive relationship with APP. Food sector is one of the major sectors for Tamilnadu. So, the aim of this paper is to provide some useful recommendation for the people responsible for the management of this sector. This study also establishes the basis for future research in this area of business.

The Asian Journal of Professional & Business Studies

Hadli Yunus

This study aims to analyse the financial health and business processes of selected organisations. It entails figuring out how stable, marketable, profitable, and liquid the business is. This study closely examines three companies operating in the Malaysian F&B industry. By investigating Bursa Malaysia issued the company's annual report for the financial condition in 2019 before the COVID outbreak. The five financial ratios calculated for each organisation in this study are the liquidity, efficiency, debt, profitability, and marketability ratios. Comparing these ratios is to establish which company is more competitive and effective. The results of this study of company performance based on financial ratios not only evaluate the debt ratio but also measure the efficiency with which a company employs its assets and resources, evaluate the company's ability to generate revenue to sales, and finally evaluate the stock price.

Research Journal of Finance and Accounting

Mohammed Arshad Khan

The study has made an attempt to analyses the solvency and profitability position of select Dairy companies in India. The select companies are CDPL, Hatsun, Heritage, Parag and Prabhat. The solvency has been explained by debt-to-equity ratio, interest coverage ratio, and proprietary ratio; profitability has been explained by ratios such as return on total assets, return on equity. It can be concluded that there is a significant difference in terms of current ratio, debt to equity ratio, proprietary ratio, debtors turnover ratio, creditors turnover ratio and total assets turnover ratio of select dairy firms in India. It means that at least one of the means of the sample is different. The test results also indicated that there is no significant difference in terms of inventory turnover ratio, fixed assets turnover ratio and interest coverage ratio.

Mohd Salman

Asian Journal of Agricultural Extension, Economics & Sociology

This paper discusses introduction, classification and detailed financial statement analysis and financial ratio analysis and their interpretation of food Industry company. Britannia Industries Limited is purposively selected for the study. The study is purely quantitative. Secondary data is used for the study. The liquidity, activity ratios showed a decreasing trend, whereas solvency, profitability ratios showed increasing trend for the selected period of 2017-18 to 2021-22. At last, the paper has concluded that the company’s overall financial performance and position has been improved over the past five years.

Nhung Nguyen

In the food industry Nestlé is the leading multinational company and the most trusted name with high quality products. It offers healthier and tastier choices throughout all stages of a consumer's life and at any time of the day. Based on science and Research and Development, the Company permanently innovate its portfolio of food and beverages. The aim of the Company is to build strong foundations of compliance and sustainable business practices globally. This paper discusses the marketing strategy, competition structure and other strategies of Nestlé S.A. Creating Shared Value is a philanthropic act of Nestlé in Bangladesh. An attempt has been taken here to represent present situation and future attempts of Nestlé Bangladesh Limited with the help of SWOT analysis and BCG growth sharing matrix. Due to the substantial growth and the other business perspective, the Company has developed its own functional areas in Bangladesh.

DENNY SAPUTERA SE MM

This study aims to measure the intended success and assist management in decisions, pluses and minuses and financial considerations. The company certainly expects profit progress in each period, but the difference is that in fact the profit does not match, it actually gets a loss. The achievement of targets is a measure of the success of the company in its operation, as well as the scale or description for future management. Profits are not always profits, but the fulfillment of future targets. With financial reports the best way to get information is through or through ratio analysis in finance. Evaluating financial conditions or performance can use liquidity ratios: Current Ratio (CR), solvency or leverage ratios: Debt To Asset Rati (DAR), activity ratios: Total Asset Turnover (TAT), profitability ratios: Net Profit Margin, Data processing i.e. moving in the food and beverage industry (food and beverages companies. With a period of 5 years (2012-2016), the total is 16 companies, w...

International Journal for Research in Applied Science & Engineering Technology (IJRASET)

IJRASET Publication

The project assigned to me was to study the financial health of any organization in the country. I decided to choose one of India's largest companies in a sector that has rapidly grown over the last few years and a company where leaders like Mr. Dhirubhai Ambani, or rather, a company that has been made Mr. Dhirubhai Ambani. Through this report, I try and analyze the financial environment in which Reliance Industry Limited is operating. Through a thorough financial analysis, my aim to understand the financial factors is influencing the company and its decision making. Later, I try and evaluate the various ratios to appreciate their impact on company's performance over the last four years. The financial statements of last four years are identified, studied and interpreted in light of company's performance. Critical decisions of distributing dividends, Issue of bonus Debentures and other current news are analyzed and their impact on the bottom line of the company is assessed.

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  1. LITERATURE REVIEW Nestle

    LITERATURE REVIEW Nestle - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. This document summarizes information about Nestle, including its history of success through product innovations and acquisitions. It discusses Nestle's strategy of guiding principles like balancing geographic activities and product lines.

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    NESTLÉ: A LEADER IN SPECIALISED NUTRITION AND ALLERGY. Over the past decades, the rising prevalence of allergies stimulated Nestlé Research to develop novel clinical solutions. Nestlé's first ...

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  8. Customer Satisfaction Act upon the Brand's Fame: A Case Study of Nestle

    Nestle, as the world's largest and most profitable firm, faces several dangers and problems around the world, necessitating robust actions and respecting consumers' demand for healthier solutions. LITERATURE REVIEW Customer Satisfaction Customer satisfaction has a significant impact on a company's future success.

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    Keywords Food Company, competitor, multinational companies ABSTRACT Nestle is a multinational company. Today the world's leading Food Company, with a 140 years history and ... per, journals, websites and published data of nestle. REVIEW OF LITERATURE Krishnakumari points out in her study "employed mothers spend more on commercial body food ...

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    Anshuman Singh1, Farah Khalifa Alazmi2. [email protected] Summary Nestle was founded i. 1866 by Henri Nestle. It started off with one man's initiative to produce infant formula (for infants who are intolerant to their mothers' milk) and grew into a multinational. corporation worldwide. Nestle has more than 250,000 employees ...

  13. PDF A Study on The Financial Performance of Nestle India Ltd

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  15. A commentary on Nestlé's Corporate Social Responsibility

    A short review on Nes tl. ... After reviewing the broad literature about CSR, this thesis considers CSR use in China through a case study of Nestle. ... Company Man. (2018). Nestle Waters -Big and ...

  16. A Study on Consumers Satisfaction Towards Nestle Chocolate With Special

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  17. PDF AN ANALYSIS OF THE ENVIRONMENTAL FACTORS OF NESTLE

    rk were three of the founding Nestlé enterprises. Anglo-Swiss Condensed Milk Company and Nestlé amalgamated in 1905, resulting in Nestlé's succe. s in infant formula, chocolates, and canned milks. Nestlé introduced Nescafé to the. United Kingdom in 1939, and it was an instant hit. When Nestlé bought Rowntree's of York back in 1988, they ...

  18. Research methodology of nestle and cadbury chocolates

    The literature review covers common characteristics of the industry and factors influencing consumer behavior. Nestle final project. ... It began operations in Pakistan in 1988 by acquiring a dairy company. Nestle manufactures and sells dairy products, beverages, baby food, breakfast cereals and other foods in Pakistan. ...

  19. PDF A Case Study on Financial Stability of Nestle India Ltd.

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  20. Analysis of Marketing Strategy and Quality Policy of Nestlé

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  21. PDF A Study on Customer's Inclination towards Nestle Products in ...

    The present study is based on the inclination of NESTLE between the customer. A model review of 200 respondents was assumed to locate out the inclination of NESTLE Products in Chennai city. The study mostly determined on universal price stage, superiority & customer anticipation overall fulfillment about NESTLE Product, universal attentiveness ...

  22. (Pdf) a Comparative Statement Analysis on Nestle India Limited and

    REVIEW OF LITERATURE • Dr. Dante Ravinder & Muskula Anitha (2013)1 inspected the financial stability and soundness of the Bambino Agro Industries Limited and it is expressed that the overall financial performance of the company was not satisfactory and recommended their opinion to increase the financial performances.

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    A STUDY ON CONSUMER BEHAVIOUR TOWARDS NESTLE PRODUCTSâ€"WITH SPECIAL REFERENCE TO COIMBATORE CITY - IJAR - Indian Journal of Applied Research(IJAR) IJAR is a double reviewed monthly print journal that accepts research works ...