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Transcript of Javed Project
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NESTL CONFECTIONARY INTERNSHIP REPORT
ORGANISATIONAL STUDY
PROJECT REPORT
ON
(MALLESHWARAM,BANGALORE)
SUBMITTED
BY
AnkushKumarKRUPANIDHI DEGREE COLLEGE
GUIDED BYMR. DIXITH.M.A(HR)
. BIG BAZAAR, MALLESHWARAM
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DECLEARATION
I Javed khan bearing reg. no 10B6CMA019 do hereby declare
That the information presented here is true to the best of my
knowledge. Also, the report has not been published anywhere else.
Place : Bangalore JAVED KHAN
(1OB6CMA019)Date : BANGALORE UNIVERSITY
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ACKNOWLEDGEMENT
The project of this magnitude would not have been completed singly. Firstly I
want to give my hearty thanks to all mighty who made the world and me also.
There are many other people without whom the completion of the project
would not have been possible. Some have contributed towards this directly
while other have provided indirectly. It gives me immense pleasure to thank
Mr. Satyendra Tiwary (sr. executive HR) Cadbury, forproviding me
training in this reputed organization and giving me a chance to have the
experience of actual retail operations. I am indebted to
Prof.Sarita (KRUPANIDHI DEGREE COLLEGE), for her guidance and
cooperation in completing this project. Last but not the least I would like to
convey my heartiest gratitude to all Members of CADBURY who helped a lot
during my training.
JAVED KHAN
(10B6CMA019)
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BACKGROUND OF HOST ORGANIZATION
EXECUTIVE SUMMARY
This is an internship report regarding the Confectionary Products of
Nestl including Kit Kat, Polo and fox Candies. It starts with an introduction
about Nestl followed by the history of Nestl. It gives a briefing about all the
brands of Nestl.
This report also includes the market mix of the product. All the 4Ps of
marketing mix for the product has been discussed and explained to reveal the
significance of its pricing, product, placing and promotional activities along with
the strength and weaknesses of the organization.
The report shows an internal architecture of the working of the Nestl
confectionary business. It gives a detail about the supporting department that
has helped the business in their daily working.
Also it discusses the objectives, policies of the organization along with
their, competitors at national level. There are also some
suggestions/recommendations for the business.
BCG matrix has also been included in this report to know about the
current standing of brand in Pakistani culture.
In the end, there is a briefing about the internship project that was
assigned during the required internship to me.
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INTRODUCTION
Chocolates and candies are one of the best-loved foods everywhere in
the world. These are one of life's little pleasures. The attractive tastes andtextures of chocolate and candies delight the senses of all ages.
As far as Nestle chocolate Kit Kat is concerned, the product developed
as Wafer Crisp, was initially launched in London, UK in September 1935 as
Rowntree's Chocolate Crisp. It became 'Kit Kat' in 1937, two years before the
Second World War.
Within two years of launch Kit Kat was established as Rowntree's
leading product, a position that it has maintained ever since. During the
Second World War Rowntree Kit Kat was seen as a valuable wartime food
and advertising described the brand as 'What active people need'.
For most of its life Rowntree Kit Kat has appeared in the well-known red
and white wrapper. It did, however, change to a blue wrapper in 1945, when it
was produced with a plain chocolate covering due to a shortage of milk
following the war. This blue packaging was withdrawn in 1947 when the
standard milk chocolate Kit Kat was reintroduced.
Polo and Fox candies are also well known and favorite products for
refreshment. In Pakistan, Polo is now being imported from china after one year
gap. Nestle Pakistan is producing Polo in china with lighter weight than before.
Fox candies are available in six different flavors, from which Nestle fruit Fox is
the most saleable and demanding candy.
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HISTORY
Henri Nestl founded Nestl in 1866 in Switzerland. Nestl means little
nest in Swiss German. Nestl first customer was a premature infant who
could tolerate neither his mothers milk nor any other conventional substitute.
Thus, Henris ultimate goal was to help fight the problem of infant mortality due
to malnutrition for which he developed a product combining various cows milk,
wheat flour and sugar and name it Farine Lactee Nestl, which was the first
product of Nestl being marketed in Europe.
In 1974, Jules Monnerat purchased Nestl and collectively theylaunched a condensed milk product of its own. In 1905, Nestl got merged
with Anglo-Swiss condensed milk.
After some time, when Nestl got fully established and all its operation
were properly functioning in Europe and was gaining fame around Europe,
then Nestl decided to set up production plants around the globe to ensure the
growth of the organization and to become multinational.
The decision to set up industrial operation in new market needs a lot of
research, as there are various factors that effect the growth of the organization
and turns out to be a loss for the company. Such factors are as follows
The availability of raw material
Cost factor
Economic climate
Consumer purchasing power
Consumer tastes
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The decision to become multinational turned fruitful for Nestl and today
Nestl has its own operations and products in America, England, India, Brazil,Australia, Pakistan, Hungary, France, Belgium, Italy, Spain and various other
countries around the globe.
DYNAMIC EXPANSION
The history of Nestle includes the development of many different
products as well as acquisitions, mergers and the purchasing of shares in
companies, mainly abroad. Over the course of the years, this enabled it to
broaden its range of products and diversify its operations, while at the same
time strengthening the economic foundations of the company. Amongst the
most important acquisitions were Carnation in Los Angeles (milk, culinary
products and pet foods) and more recently Rowntree Mackintosh in York(chocolate and confectionery), Buitoni in Perugia (pasta) as well as Perrier in
France(mineral water). Nestle, which does 98% of its business outside
Switzerland, also has interests in non-food sectors, in cosmetics (a large share
holding in L'Oreal) and ophthalmic products (acquisition of Alcon Laboratories
Inc.) while continuing to give priority to food products.
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NESTLE TODAY
Nestle is now the world's largest food company. It is present on all five
continents, has an annual turnover of 74.7 billion Swiss francs, runs 509
factories in 83 countries and employs about 231,000 people the world over.
The Company owes its current status to the pioneering spirit inherited
from its founders which continues to inspire it, to its concern with quality and to
its constant search for new ways of satisfying man's nutritional needs.
Wherever possible, it sets up factories locally, employs personnel from
the country concerned and relies on indigenous raw materials. Its agricultural
services provide assistance to improve the quality and yield of the raw
materials it uses. Much attention is devoted to professional training and to the
integration of the Company in its economic and social environment.
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RESEARCH & DEVELOPMENT
Nestle, the world's biggest food Group, is also the global leader in the
industry with regard to Research and Development (R&D), No other food
company matches the R&D presence of Nestle, with a worldwide network of
centers in 17 locations on four continents. No other food company dedicates
so many human and financial resources to R&D: an international staff of 3500
engaged in the search for innovative new products and the renovation of
existing ones. Year after year, Nestle invests some 800 million Swiss francs
into R&D as a major driving force of its double strategy: to strengthen the
Company's brands worldwide and to continue to support future long- term
growth and competitiveness through innovation and renovation.
At the threshold of this new millennium, Nestls objective is to
consolidate and strengthen its leading position at the cutting edge of
innovation in the food area, in order to meet the needs and desires of
consumers around the world, for pleasure, convenience, health and well
being.
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BUSINESS REVIEW
MILK COLLECTION
The core raw material of Nestle Milkpak is milk. Over the last twelve
years, the Company's prime concern has been to improve the quality and
volume of milk for UHT processing and for other milk based products. Driven
by its commitment to quality and having realized that only self collection could
eliminate its dependence on poor quality milk available from outside sources,the Company successfully established its own collection system and
expanded its operations over a very large milk shed area in Punjab. Owing to
this tremendous growth in the volume of an extremely high quality raw milk,
Nestle Milkpak now produces a superior quality and better tasting UHT milk,
with longer shelf life.
Today, Nestle Milkpak can boast of the largest milk collection network in
the country, unmatched in size, productivity and efficiency. Milk is collected
through a vast network of village milk centers (VMCs), sub-centers and
centers. At these centers, chillers have been installed to lower milk
temperature to 4C for preventing bacteria development during long hauls to
the factories, which are undertaken by a large fleet of specially insulated
tankers.
In terms of quality, the milk collected by Nestle Milkpak is low in sodium,
high in fat and solid-non fats (SNF) and very low in Total Plate Count (TPC)
which, stated simply, means the bacteria count. This was achieved through a
comprehensive strategy and sustained efforts to overhaul the milk collection
process, intensive education program for the farmers and the milk collection
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staff, up gradation of milk loading and transportation system, increase in the
chilling capacity and above all, adherence to the highest acceptancestandards at all milk collection points, including the factories.
As a service to farmers, Nestle Milkpak has established an Extension
Service, staffed by qualified veterinary doctors, who assist them in vaccination
and treatment of livestock, improved breeding, good animal husbandry
practices, provision of high yield fodder seed etc. By taking professional help
and guidance to their doorsteps, which they otherwise find difficult to access,
coupled with incentives and a good and prompt return for their milk, Nestle
Milkpak has created a mutually beneficial relationship with the farmers, which
translates into opportunities of economic uplift for the rural population.
To promote milk production, Nestle Milkpak is successfully promoting the
use of molasses to enrich the fodder and has arranged its distribution to
farmers at cost.
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PRODUCTION
As a consequence of joint venture arrangement between Nestle S.A. of
Switzerland and Milkpak Ltd. in 1988, the existing production facility of Milkpak
in Sheikhupura became a part of Nestle Milkpak.
The Milkpak Sheikhupura factory commenced operations in 1981 as a
producer of UHT milk. By 1988, it had expanded its operation and was also
producing butter, cream, desi ghee - all under the brand name of MILKPAKand juice drinks under the brand name FROST.
To meet the demands of the large food market that Pakistan offered,
Nestle Milkpak reorganized and reinforced the production of existing brands
and gave shape to new production lines. The first to come was a milk powder
plant, which not only began producing NIDO in 1990 but was also critical to
the production of several milk-based products in the future. With the
installation of the roller dryer in 1990, the first such product to come was
CERELAC - an internationally recognized brand of infant cereal. This was
followed by LACTOGEN 1 & 2 in 1991.
The year 1992 saw the introduction of tea whitener EVERYDAY and milk
powder in bulk packing named GLORIA. MILO and NESLAC came under
production in 1994 and MILO RTD in 1995. Local packing of imported coffee
under the name of NESCAFE 3 in 1 commenced the same year. In 1996,
Nestle Milkpak's first confectionery plant of POLO Mint was installed and the
production of NESTLE PURE ORANGE JUICE commenced. Packaging of
coffee under the brand name of NESCAFE CLASSIC was undertaken the
same year.
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In 1997 NESTLE WHEAT and two variants of POLO viz. Strawberry
and Orange were introduced. In 1998 a substantial capital investment wasmade to launch several products and install two new state-of-the-art
technologies. SWEET TREETS were launched in early 1998. The addition of
two flavors of POLO: Blackcurrant and Strong Mint, increased the number of
POLO variants to five. A new variant Lemony was added to the range of
popular FROST fruit drink flavors and a new 1-liter packing of FROST was
introduced. Flavored milks under the brand FRESH & FRUITY came under
production on the new Tetra Filling Machine equipped with the modern "slim"
format. MILO RTD and UHT Cream were also shifted over to this new format.
A new flexible confectionery line enabled the manufacture of a wide
range of high and low boiled sweets and toffees, including TOFFO and two
variants of SOOTH- ERS' Menthol Eucalyptus and Honey Lemon. Nestle
Milkpak also contracted to supply dairy mixes to McDonald's, for its popular
soft serves and milk shakes. And to top it all, the most prestigious project,
NESTLE PURE LIFE was also commissioned in December. Based on the
latest water treatment and bottling technology, this marked the entry of Nestle
Milkpak in the Pakistan water market and that of Nestle in the world water
market.
The expansion of high boiled sweet line continued in 1999 with the
introduction of Fruit Drops and BUTTERSCOTCH.
The year 2000 saw the production of some exciting products. First came
NESCAFE Frothed Original, followed by its two other flavors: Mocha and
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French Vanilla. NESCAFE Frappe RTD was to come next. The fruit juice
range was expanded by the production of Mango and Orange- Mango Mix. Onthe confectionery side, Tutti Fruiti was added under the umbrella of POLO and
Wild Cherry was added to the SOOTHERS range. The success of NESTLE
PURE LIFE in PET bottles encouraged the commissioning of 5-gallon bottles
production line for home and office in June. And the last product line of the
year to be commissioned in November was that of NESTLE Plain Yogurt, a
high quality product with special Stay-Fresh Seal.
To meet the needs of safe and quality storage for the ever expanding
product range and their volumes, a National Distribution Center (NDC) was
completed and became functional in June, 2000. Spread over 6614 square
meters, it has the capacity to store up to 8300 pallets (approximately 8000
tons).
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HISTORICAL DEVELOPMENT
1866 Companys foundation.
1905 Merger between Nestl & Anglo-Swiss Condensed Milk.
1929 Merger with Peter-Cailler-Kohler Chocolates Suisse S.A.
1947 Merger with Alimentana S.A. (Maggi).
1971 Merger with Ursine-Franck (Switzerland).
1985 Acquisition of Carnation (USA).
1988 Acquisition of Buitoni-Perugina (Italy).1988 Acquisition of Rowntree (GB).
1992 Acquisition of Perrier (France).
1995 Nestl acquires Victor Schmidt & Sohne, Austrias oldestconfectionary, including the famous Mozartkugeln.
1997 Nestl, through the Perrier Vittel Group, expands its minactivities with the outright acquisition of San Pellegrino.
1998
1998
Nestl acquires Spillers Petfoods of the UK and strengthen in
the petfood business which began in 1985 with the CarnationFriskies brand & introduced Nestl Pure Life.
Nestl Pure Life 1.5 - liter bottle was introduced in Pakistan.
1999
2000
Divestiture of Findus brand (except in Switzerland and itsparts of Nestls frozen food business in Europe.
Divestiture of Hills Bros., MJB and Chase & Sanborn roastground coffee brands (USA).
Nesle Pure Life Jumbo Service (5 Gallon) was introduced.
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CURRENT STATUS
Today, Nestl produces in over 81 countries and achieves 98% of its
turnover outside Europe.
Nestl is the worlds largest food company, which does 98% of its
business. It has an annual turnover of 70 billion Swiss francs, 522 new
factories in 81 countries, 200 operating companies, 1 basic research outer and
20 technological development groups, has more than 231,000 employees and
more than 8000 products around the globe.
There are three companies co-ordinate the activities of some 200
operating companies around the globe. Their functions and details are as
follows:
The first, Nestl, holds the financial shares in the allied companies. It
also check the profitability of these companies and to ensure the profitability of
the group as whole.
The second, Nestl, has two areas of activities that are as follows:
Research and technological development
Technical assistance
Beside this, it provides know-how in engineering, marketing, production,
organization, management and personnel training on a continuous basis.
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The third company is Nestl World Trade Corporation that oversees the
import and export of merchandise worldwide.
NESTLE BRANDS
Quality is an essential ingredient in all the Nestl brands and also Nestl
brands maintain nutritional balance in a fast pace world, that is why people
around the globe choose. The detail of the Nestl brand is as follows:
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Baby foods (Nestl Cerelac, NAN)
Breakfast cereals (Nestl Cereals)
Dairy products (Milkpak, NIDO, Nespray, Nestl Yogurts, Everyday)
Ice-creams (Movenpick, Dreyers)
Chocolate confectionary (Kit Kat, Smarties)
Beverages (Nescafe, Milo, Nestl juices)
Food service (Nestl Jumbo Bottle)
Prepared foods (Maggi, Powered Soups)
Bottled water ( Nestl Pure Life, Nestl Aquarral)
Pet care (Pro Plan, Purine, ONE, Fancy feast, Dog Chow, Cat Chow,
Felix, Alpo)
Pharmaceuticals (Ophthalmic drugs, lens-care solutions & optical
surgical Instruments)
OUR MISSION
To continuously exceed our customer expectation for quality products
and services
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Our goal is to offer top quality brands and innovative packaging to meet
the individual needs of consumer all over the world, whenever, wherever and
however.
At Nestl, our research makes it possible for everyone to enjoy better
food for a better life.
Good Food is the primary source of Good Health throughout life. We
strive to bring consumers foods that are safe, of high quality and provide
optimal nutrition to meet physiological needs. In addition to nutrition, health
and wellness, Nestl products bring consumers the vital ingredients of taste
and pleasure.
As consumers continue to make choices regarding foods and beverages
they consume, Nestl helps provide selections for all individual taste and
lifestyle preferences.
Research is a key part of our heritage at Nestl and an essential
element our future. We know there is still much to discover about health,
wellness and the role of food in our lives, and we continue to search for
answers to bring consumers Good Food for Good Life.
OBJECTIVE
Making our customers winners by constantly exceeding their
expectations.
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OUR POLICIES
Business policies will continue to evolve and adapt to a changing world,
our basic foundation is unchanged. The time of origin of our company, andreflects the basic ideas of fairness, honesty and a general concern for people.
Nestl is committed to the following business policies in all countries,
taking into account local legislation, cultural and religious practices.
Nestls business objective is to manufacture and market the companys
product in such a way as to create value that can be sustained over the longterm for shareholders, employees, consumers, and business partners.
Nestls does not favor short-term profit at the expense of successful
long-term business development.
Nestls recognize that its consumers have a sincere and legitimate
interest in the behavior, beliefs and actions of the company behind brands inwhich they place their trust, and that without its consumers of the company
would not exist.
Nestls believes that, as a general rule, legislation is the most effective
safeguard of responsible conduct, although in certain areas, additional
guidance to staff in the form of voluntary business policies is beneficial in order
to ensure that the highest standards are met throughout the organization.
Nestls is conscious of the fact that the success of a corporation is a
reflection of the professionalism, conduct and the responsible attitude of its
managements and employees. Therefore recruitment of the right people and
ongoing training and development are crucial.
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Nestls continues to maintain its commitment to follow and respect all
applicable local laws in each of its markets.
The policies formed by the Nestl are for every employee of Nestlaround the world. The Nestl brands follow these above mentioned policies
and does not make there own policies. Members of Nestl are strongly
committed to the company, its development, its culture and its policies.
Apart from professional skills and insight, the capacity and willingness to
apply these policies are the main criteria for progressing in the organization,
regardless of origin, nationality, religion, race, gender or age.
SCIENTIFIC DEPARTMENTS
Research at the Nestl Research Center encompasses the sensory and
nutritional value of products along with consumer behavior, nutrition needs
and social desires for foods and beverages. At the forefront of all research
activities is Nestls commitment to the utmost safety and quality. A diverse
selection of scientific disciplines is necessary for this global approach to
nutrition research. The scientific departments currently at NRC include:
Bio Analytical Science
Food Science
Food/Consumer Interaction
Plant Science
Nutrition and Health
Consumer Trust
Pet Basic Research
Scientific and Nutrition Support
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http://www.research.nestle.com/structure_network/scientific_departments/Bioanalytical_Science.htmhttp://www.research.nestle.com/structure_network/scientific_departments/Food_Science.htmhttp://www.research.nestle.com/structure_network/scientific_departments/Food_Consumer_Interaction.htmhttp://www.research.nestle.com/structure_network/scientific_departments/plant_science.htmhttp://www.research.nestle.com/structure_network/scientific_departments/Nutrition_and_Health.htmhttp://www.research.nestle.com/structure_network/scientific_departments/Quality_and_Safety.htmhttp://www.research.nestle.com/structure_network/scientific_departments/Quality_and_Safety.htmhttp://www.research.nestle.com/structure_network/scientific_departments/Pet_Basic_Research.htmhttp://www.research.nestle.com/structure_network/scientific_departments/Nutrition_and_Scientific_Support.htmhttp://www.research.nestle.com/structure_network/scientific_departments/Nutrition_and_Scientific_Support.htmhttp://www.research.nestle.com/structure_network/scientific_departments/Food_Science.htmhttp://www.research.nestle.com/structure_network/scientific_departments/Food_Consumer_Interaction.htmhttp://www.research.nestle.com/structure_network/scientific_departments/plant_science.htmhttp://www.research.nestle.com/structure_network/scientific_departments/Nutrition_and_Health.htmhttp://www.research.nestle.com/structure_network/scientific_departments/Quality_and_Safety.htmhttp://www.research.nestle.com/structure_network/scientific_departments/Pet_Basic_Research.htmhttp://www.research.nestle.com/structure_network/scientific_departments/Nutrition_and_Scientific_Support.htmhttp://www.research.nestle.com/structure_network/scientific_departments/Bioanalytical_Science.htm -
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CONSUMER CONFIDENCE
The Consumer Confidence department is the scientific heart of the
Nestl Quality System. Consumer confidence and trust has been fundamentalto Nestl's success for over 135 years.
Our wide range of expertise is made available to R&D scientists,
operational and technical units and businesses. We cover five main areas:
Consumer safety that guarantees the delivery of safe products.
Product compliance that combines all aspects related to the legalcompliance of Nestl products.
Consistent quality that involves all measures for the delivery of Nestl
products with a consistent level of quality.
Consumer preference that ensures our products demonstrate superior
organoleptic and nutritional quality.
Occupational and environmental safety that combines all aspects
related to the safety of workers and the environment.
Safety evaluation requires extensive scientific skills in the two areas of
food safety: analytical method development and science-based risk
assessment. Ingredients also need to be analyzed for authenticity and
allergens. Leading edge packaging expertise also has a role to play in
ensuring both quality and safety of Nestl food products.
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Anticipation of food safety issues is guaranteed through a systematic
screening of scientific and technical literature and evaluation by our network of
experts for case-adapted responses.
FOOD SCIENCE
The Food Science Department focuses on the physical, chemical and
biotechnological aspects of food raw materials, ingredients and food products.
Our scientists in collaboration wit nutritionists provide the scientific basis for
innovative food concepts which deliver consumer benefits in the areas of
pleasure, health and Wellness, and food quality and safety.
For an innovative approach in the way we make food products, we work
on three main aspects of modern foods.
food processes: e.g., molecular basis of unit operations including
extraction and refining of ingredients, or biotransformation of raw
materials and ingredients. functionalities of macronutrients: e.g., structure forming properties of
biopolymers, or ingredient interactions.
delivery of functionalities in food products: e.g., control of
bioavailability of functional molecules through specific carrier systems.
The Food Science Department assembles state-of-the-art knowledge in
food ingredients, food materials, food colloids and processes. Our research
activities are targeted towards innovative and inventive new ways to combine
the classical food ingredients like proteins, carbohydrates and fats to create
new food structure concepts (e.g. foams and mousses) with specific
textures and functionalities.
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Our projects are multidisciplinary and are organized in close
collaboration with the other departments of NRC including PTCs and R&D
Centers as well as the external scientific world such as universities.
BIOANALYTICAL SCIENCE
The Bioanalytical Science Department at NRC is where scientists from a
range of disciplines provide knowledge required for post genomic work. We
want to understand how food molecules affect the complex life processes...
and how this knowledge can benefit mankind.
Core disciplines span from analytical chemistry and biochemistry to
(bio)mathematics, bioinformatics and clinical studies. We focus on developing
advanced analytical tools and methodologies to support Nestl research and,
in particular, the Nutrition and Health program.
Food is a complex mixture of molecules that play different roles in the
body, from maintenance to defense and protection. Understanding thefundamental biological process is key to deciphering the contribution of
genetic variation among individuals to health and wellness compared to the
effects of the environment and lifestyle.
The biological process is a complex interplay of relationships between
protein sequences, structure dynamics and molecular recognition. This
process can be studied at several levels of bimolecular organization, which
include genetic, and gene expression (genomics and transcriptomics), protein
function and signaling (proteomics) and metabolite control and regulation
(metabonomics). Bioinformatics and mathematic modeling are
additionally needed to unify all of the omics science areas.
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We aim to be at the forefront of Bioanalytical developments and
implement them to further the science of nutrition and health.
INNOVATIONS AND PUBLICATIONS
Achieving health and wellness through foods is a challenging adventure.
It extends the boundaries of consumer expectations and satisfaction beyond
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the classical sensory experience. Todays discoveries provide the knowledge
for tomorrows innovations.
Much groundbreaking scientific work has emerged from the NestlResearch Center in the form of significant product innovations and recognized
scientific publications.
FOOD/CONSUMER INTERACTION
In the context of health and wellness, we not only need to understand
the physiology of health but also to know and understand the consumer'srelationship with food. What is it about a food that makes the consumer like
and chooses it?
We study in detail aspects of pleasure derived from food before, during
and after consuming it. These include the pleasure of anticipation, as well as
sight, texture, taste and aroma. We also investigate the feeling of satisfaction.
In one sense, satiety is the reward derived from consuming a particular food.
But it is also strongly linked to signals that tell you to stop eating and feel
happy.
Physicists and chemists help us to understand how to deliver aroma,
taste, and texture. But beyond biology, psychology or sensory behavior, ethnic
culture is also a key to understanding why a given consumer prefers certain
foods over others.
The Department is truly multidisciplinary. With expertise ranging from
chemistry and biology to sensory and social sciences, we are a natural bridge
between Food Science and Nutrition and Health.
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http://www.research.nestle.com/innovations_publications/key_innovations/http://www.research.nestle.com/NR/exeres/73D8ADCA-98FC-4C6E-B5CC-886926EBE408.htm?wbc_purpose=Basic&NRMODE=Unpublished&WBCMODE=PresentationUnpublishedhttp://www.research.nestle.com/innovations_publications/key_innovations/http://www.research.nestle.com/NR/exeres/73D8ADCA-98FC-4C6E-B5CC-886926EBE408.htm?wbc_purpose=Basic&NRMODE=Unpublished&WBCMODE=PresentationUnpublished -
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SCIENTIFIC AND NUTRITION SUPPORT
The Nutrition and Scientific Support Department (SNS) ensures that
research findings and the latest news on food, nutrition, health and wellness
is disseminated across the entire Nestl R&D community and businesses. In
addition, we support R&D innovation by providing the tools, training and
knowledge to assess and communicate the nutritional benefits of Nestl
products.
The department is composed of three interlinked groups: the first group
provides Competitive and Scientific Information and Intelligence to ourscientist, technologists, and to the management. The second
group, Nutritional Assessment and Training, provides support, tools and
training to improve the nutritional profile of our products and to increase the
nutrition knowledge of Nestl employees. The group collaborates with a wide
network of nutritionists from around the world in our PTCs, R&D centers and
business markets. The third group, Functional Ingredients, focuses ontraditional and functional ingredients. This group documents the strength of
scientific efficacy evidence, supports the compilation of dossiers for regulatory
approval, and proposes new nutrition concepts.
The core of nutrition, health and wellness knowledge within the Nestl
R&D community, we supply information to our colleagues to allow efficient and
timely responses to consumer health and wellness demands.
Nestle Pakistan Limited - Company Profile Snapshot
Company
Profile:
Nestle Pakistan Limited
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Ticker: NESTLE
Exchanges: KAR
2007 Sales: 32,031,000,000
Major
Industry:
Food & Beverages
Sub
Industry:
Diversified Food
Country: PAKISTAN
Employees: 2174
BRANDS IN PAKISTAN
DAIRY PRODUCTS
NESTLE MILKPAK UHT MILK
Launched in 1981, it has become synonymous with quality milk. Backed
by a very strong brand name, aggressive marketing and distribution plans,
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consistent quality and availability through out the year, MILKPAK UHT has
been extremely successful. In September 1999, MILKPAK UHT milk was
launched as NESTLE MILKPAK UHT MILK. NESTLE MILKPAK UHT MILK is
available in three pack sizes of 1000, 500 and 250 ml.
MILKPAK BUTTER
A continuous butter-making machine was commissioned at Kabirwala
factory in the year 2000 to produce high quality cultured butter. This new
butter was an improvement upon the earlier product and carries Nestle
branding that endorses its superior quality. It has an excellent taste and aroma
and is easy to spread.
The new NESTLE BUTTER is available in two pack sizes of 200g and
100g in new attractive packaging.
NESTLE PLAIN YOGURT
Launched in November 2000 in Lahore, NESTLE Plain Yogurt is the
latest addition to Nestle Milkpak's dairy family. Its unique 'Stay Fresh seal and
a 21-day shelf life gives the brand a formidable competitive advantage. The
brand provides valuable access to future product launches in the chilled
product category through a dedicated chilled distribution.
In a very short time the brand has gained a substantial market share.
Through future expansion into markets other than Lahore and a strong
marketing and sales support, NESTLE Plain Yogurt will undoubtedly grow into
a strong brand and, in time, will achieve the status of market leader.
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MILKPAK UHT CREAM
MILKPAK UHT CREAM was introduced under the MILKPAK brand in
1986. It is available in 200-ml pack size in an attractive slim pack. Theconsumer trust in the brand name and the product has ensured its dominant
share in the cream category.
MILKPAK CREAM was also introduced in an economical 1000ml pack
size in the year 2000. This SKU has been developed for Food Services to
cover institutions using large quantities of fresh cream.
MILKPAK DESl GHEE
MILKPAK DESI GHEE was introduced in 1986 in tin packaging. The
packaging was later changed to Tetra Pak. However, in line with the current
market trend, MILKPAK DESI GHEE was relaunched in 1Kg tin packaging in
the year2000. The product was also introduced in 16kg tin packing to tap the
huge potential of loose desi ghee.
NESTLE EVERYDAY
To target the massive potential offered by the tea-whitening segment,
NESTLE EVERYDAY tea whitener was launched in 1992. Supported by
aggressive marketing using multi-media activities, focused distribution with
sampling drives and excellent consumer acceptance, the brand has shown
strong growth and holds good promise for the future.
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NESTLE NIDO
NESTLE NIDO has been present in the Pakistan market since early 70's
and on account of the consumer confidence in its quality it has become a pillarof Nestle's success. Local production commenced in1990 and within a short
time the brand achieved market leader status in the full cream milk powder
category. Made from very superior quality milk and with the addition of
vitamins A and D, NESTLE NIDO is the best quality milk for growing children.
The brand has now launched a low unit priced SKU that offers half a liter
of quality milk at a very affordable price. NESTLE NIDO is well on its way to
becoming a mega brand.
CHOCOLATE DRINKS
MILO POWDER
To provide convenience to consumers, NESTLE MILO was launched in
its new 130gm. SKU in an attractive airtight jar in February2000. This was
done with a view to bring our packaging in line with the industry practice of
making milk fortifiers and modifiers available in jars and tins and to reverse the
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trend of consumer preference for imported MILO or similar products over local
MILO. Consumer response to the new initiative has been very positive.
MILO RTD
To cater for consumer convenience, MILO RTD (ready to drink) was
launched in 1995 and is now available in an attractive 180ml slim pack.
Popular with all age groups, specially among the growing segment of nutrition
conscious consumers, it is an excellent substitute for cold drinks.
COFFEE
NESCAFE CLASSIC
NESCAFE, Nestls international flagship brand, is locally repacked and
marketed in 2gm. and25gm. Sachet, 75gm. bottles and 500gm. Soft packs.
The brand enjoys a special position in the country's coffee consuming
segment.
NESCAFE FROTHE
NESCAFE Frothe (Original), a premix in 18gm. single serve sachet, was
launched in January 2000. The product profile was developed through
consumer research and was accordingly offered as a sweet, creamy and
foamy coffee. Encouraged by extremely good consumer response to this
cappuccino style coffee, French Vanilla and Mocha flavors were introduced in
November to offer a wider choice and to enhance the young and fashionable
image of this mixes category.
NESCAFE FRAPPE
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To promote summer consumption of coffee and to change consumer
perception that coffee is only a winter beverage, NESCAFE Frappe was
launched in June 3000. This iced, creamy, ready-to-drink coffee in180ml slim
pack was positioned to appeal to the youth and gain a strong share from other
summer beverages. The launch was extensively supported by promotional
programs in major towns and the product is fast gaining in popularity.
FRUIT DRINKS
FROST
A well-known brand, FROST was introduced in 1986 and has the largest
share of the countrywide market. Positioned as a cold drink and alternate to
cola drinks, its strength lies in the convenience attached to its usage.
NESTLE JUICES
Encouraged by the consumer response to NESTLE ORANGE JUICE
that was launched in 1996, the category of NESTLE juices was expanded with
the introduction of Mango-Orange and Mango flavors in the year 2000. This
has further strengthened the position of Nestle as leader in the value
added/premium drinks market. Consumer to gain further.
DIETETIC & INFANT PRODUCTS
LACTOGEN
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LACTOGEN 1 and LACTOGEN 2 are infant and follow-up formulae
launched in 1991 and are available in two sizes. The brands provide both
affordability and quality.
CERELAC
Launched in 1989, CERELAC is the dominant player in the growing
infant cereal market. Available in 5 flavors, the brand provides balanced
nutrition to infants from 4 months onwards.
NESTLE RICE
An affordable starter weaning cereal, NESTLE RICE offers the flexibility
of preparation with a variety of meals. Gluten free, the brand is available in
125 gm. packs and is specially suited to the needs of infants from 4 months
onwards. It was launched in 1994.
NESTLE WHEAT
NESTLE WHEAT is a wheat-based infant cereal without milk, for infants
of 4 months and above. It was launched in 1997 and is available in packs of
125 and 250 gm.
NESLAC
NESLAC is a growing-up milk, formulated specially for 1 to 4 year olds. It
contains just the right balance of proteins, calcium, iron, vitamins and essential
minerals in order to cater to the nutritional needs of a growing child
during this special age. The product was launched in 1994.
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CULINARY PRODUCTS
MAGGI 2-MINUTE NOODLES
Fast to cook, good to eat - MAGGI 2-MINUTE NOODLES were launched
with local production in 1992 and in doing so Nestle pioneered the category of
instant noodles in Pakistan. MAGGI 2-MINUTE NOODLES have special
appeal for children, are fun to eat and offer a range of interesting flavors,
namely: Chicken, Masala, Chilli and Chatkhara. Affordably priced and backed
by focused marketing activities, MAGGI NOODLES have shown good
progress in 2000.
MAGGI COLD SAUCES
Nestle entered the Cold Sauces' category in 1999 with the launch of
MAGGI Ketchup, MAGGI Mirch Maza and MAGGI Khatti Meethi - the first Imli
sauce in Pakistan. The innovative taste of Khatti Meethi together with the more
traditional tastes of Ketchup and Mirch Maza, were received well by the
consumers.
BRANCHES IN PAKISTAN
Nestl Pakistan has its branches in the following major cities of Pakistan:
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Lahore
Islamabad
Faisalabad Sheikhupura (factory)
Karachi
Nestl is a customer and profit oriented organization rather than system
and strategy oriented. The mechanics of generating profit are low-cost
production and high-price sales.
Nestl has different division. There are four departments in the Nestl
confectionary that are as follows:
CCST Department
Marketing Department
Sales Department
Distributor
Now, let us discuss each of the departments separately.
CCST DEPARTMENT
The CCST department is a supporting department for both Sales and
Marketing departments. It provides a linkage to both departments by
connecting them in case of any demand from other department.
MARKETING DEPARTMENT
The Marketing Department is responsible for all sort of activities
including the promotion, advertising and tools used for generating demand.
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The Marketing department is also responsible for arranging stalls and
functions for the promotional and official reasons respectively. These stalls are
conducted in different public places so
that more of the people become aware of the importance of products that
ensure quality. These stall activities remain active for around 4-5 days. Thus,
in a month 4-5 such stalls are managed.
After a stall activity finishes, the person who conducted the stall activity
has to report to their seniors about the response they received from the public
and the number of new customers they have been able to attract during their
stall activity.
SALES DEPARTMENT
The Sales Department is responsible for carrying out the sales of Nestl
confectionary covering the whole of Lahore. To conduct the sales efficiently
and effectively, there are some territories that have been assigned some area
of Lahore. The area managers administer these territories.
Monthly, the Area Sales Managers are assigned with the targets by the
upper management. This helps in creating competition among the territories
Like some territories covers these areas respectively.
Interior Lahore, upper Mall
Gulberg, Cantt, Cavalary
Defense
Model Town, Township, Garden Town, Johar Town, Rehmanpura
and Thokar Niaz baig
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These four territories are further covered with a total of 20 routes, each
covering a specified area of Lahore on daily basis.
Everyday, the Nestl delivery van drop confectionary products. Thereare three people who go for sales. They are:
Driver
DSR
Loader
For carrying out the transaction easily, the DSR are provided with ahandbook. The handbook keeps records of the data of the retailers. All this
data is stored in the system thus, keeping the system updated.
At the start of the month, the target for the sale of the confectionary is
set and all the distributions have to achieve that target by the end of the month
that helps in increasing the productivity. The sales target varies with the
season. For example, in winters, the sales of Confectionary products are more
as it is in summers. Also, the monsoon season affects the sales of the candies
and chocolates.
When it is the end of the month, all the distributions submit in their report
to the Sales and Distribution Manager that contains the percentage of the
target achieved including the quantity sold by each route.
DISTRIBUTOR
For carrying out the daily working, some internally hired or external
sources are acting as a distributor for Nestl in Lahore. The distributor has
various responsibilities/duties that are as follows:
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FLEET MANAGEMENT
Procurement of Vehicle. Installation of Hood on Distribution vehicles. Paint of Hood & its maintenance. Maintenance of vehicles in good condition.
DELIVERY TEAM
Short listing of DSRs for hiring.
Supervise DSR orientation & Training.
Daily supervision of DSR performance.
Ensure DSRs working as per company direction.
CUSTOMER SERVICES
Delivery at customer premises on schedule day & routing time.
Ensuring delivery on special request forwarded by customer
services.
Attending all delivery related complaints in time.
WAREHOUSING
Procure a warehouse as per Nestl Standard.
Ensure all Nestl Quality Standard (FIFO, NQS, and QSM etc).
Maintain a clean environment.
Minimize store losses.
ACCOUNTING
Maintain audited accounts of the business.
Provide in time reports to Nestl Management.
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Make claims as per company guidelines & verify data.
Ensure efficient operation.
GENERAL
Adhere & act on all policies/decisions by Nestl Management.
Close liaison with Sales Management for Target Achievement.
STYLE OF WORKING
Nestl is profit and customer oriented organization rather than systemand strategy oriented. The products are manufactured at low-cost and salesare made at high price.
All the departments of Nestl are related to each other along with their
independent working. In order, to improve their working and their level of
service they provide to their customer, weekly and monthly meetings are held.
These meetings discuss the following things:
Performance level of employees
Progress at territory level and as a whole
Sales of the organization
Where an improvement is required
The working/activities of division include the following features:
Selling through proper transportation
Area storming for creating awareness
Stall activities
Rewards offering scheme
Taking feedback from the customers
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Providing service for chiller maintenance and technical problems
This activities/working of the organization involve the basic principles ofmarketing, client service, public relation, planning, organizing, leadership andcommunication whose brief description are as follows:
The basic principle of Nestl in marketing is to provide its customers withquality product at reasonable price.
For communication at national and international level there are variousways to communicate that are as follows: Universal and direct telephone lines
Fax Email
Letters
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ORGANIZATION STRUCTURE
National Sales Manager
Zonal Sales Manager
Regional Sales Manager
Customer Area Managers System Support Event
Service Manager Executive Management
Customer Territory System
Service Officers managers Support Officers
Sales Associates Event Chiller
Management Technician
DSR Officers
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Loaders
MAIN STRATEGY OF NESTLE CONFECTIONARY
Every organization has forms some strategy to follow. Therefore,
strategies adopted by Nestl that have proved fruitful are as follows:
Consumer communication
Product availability and development
CONSUMER COMMUNICATION
With the help of electronic media, advertisements boards, banners,
advertising on newspapers, pamphlets, brochures, handouts and by the stall
activity of marketing department; taste of the customer is developed and
awareness is brought among people about the healthy living that can beachieved by healthy and delightful eating.
PRODUCT AVAILABILITY
From time to time activities such as area storming, discovering new
places or areas are being done. Thus, making the distribution equally available
everywhere.
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COMPETITORS OF NESTLE CONFECTIONARY
Every organization or we can say that every business run by any
company faces competition in a competitive market. Nestl is a multinational
company. It has competitors in a global market and in a local market. Now lets
see the competitors of one of the brands of Nestl that is Nestl confectionary
in a local market. The competitors that Nestl confectionary in Pakistan are as
follows:
Cadbury
IBL
Mitchells
Candy land
Even though there are competitors in the market but still Nestl
confectionary does not face a very tough competition. There has been great
competition faced by Nestl confectionary as local companies try to compete
with the multinational brand.
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SWOT ANALYSIS OF NESTLE CONFECTIONARY
STRENGHTS
The strengths of Nestl confectionary products including Kit Kat, Polo & Foxare as follows:
Companys name Nestl signifies the quality image high standard and
quality product.
Loyalty from customers is also the major strength for the company.
Employees are also loyal due to the decentralized culture of company.
People trust on products due to the proper health and safety measures.
The strength of Nestl confectionary is its imported chocolates and
candies, which strengthens its image.
Being a multinational company it has the capability to attract more
customer than the local companies.
Company has the ability to compete in a dynamic environment.
Company always adapts the new technology.
WEAKNESSES
The weaknesses are as follows:
There is not much margins for retailers to prefer its sales.
They need to improve the facilities like chillers.
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The distribution cost is high as compared to the competition in the local
market.
Company mostly advertises its milk products, advertisement of
confectionary products is not so better.
OPPORTUNITIES
They have an opportunity to expand or capture the market by adding its
product line.
They have the opportunity to offer snacks.
They can also capture the market of home appliances.
Company can open separate stores to eliminate retailers.
Recently, they have created an opportunity for themselves by
introducing chillers in the market.
Company is trying to open stores in universities.
They can provide incentives to retailers to increase sales volume.
Company can enter in ice cream products.
THREATS
Existing companies are increasing their product lines that can prove to
be a threat in the coming years.
Company like Cadbury is giving more discounts to retailers as compared
to distributors due to which retailers prefer its products for sale.
As compared to the local competitors, our distributor cost is very high.
As Nestl confectionary Products has to maintain and obey the Nestl
standards.
Some companies are competing on the basis of cost.
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BCG MATRIX
STARS
The stars are the high relative market share and
high market growth. Nestle beverages i.e. are somewhat the
stars in their business, because with the high quality and
new designs which comes every now and then makes them
more popular among the customers, because customer with
upper class wants the quality and nestle offers the best quality food items.
CASH COWS
The cash cows are theirbaby food items i.e. nestle cerelace and
other baby food products. Company has to take measures to make these
products as stars.
Star
Question Marks
Cash Cows Dogs
R
elativeMarketGrowth
Low
High
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DOGS
The pharmaceutical products are nestleDog, because it has low-
share business with low growth market especially when we talk about
Pakistani market. The company has to think on what it can do by improving
the low share and growth market.
QUESTION MARKS
The question marks are the breakfast cereals.They have high
market growth but low market share. The company has to decide about which
question mark they should try to build into the stars and which one of these
should be phased out.
COMPETITIVE STRATEGYWHAT MAKES COMPETITIVE
The hallmark of the nestle is the quality of the products which the company
offers.
COMPETITIVE EDGE OF NESTLE
The companies all over the world get some competitive edge based on
some features which other companies dont have. For example, as the Dell
has the competitive edge over other computer manufacturer companies,
because they use Built-to-order Strategy while no other company in computer
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industry use this strategy. Similarly in Pakistan nestle has their Competitive
edge based on these Strategies:
Product Differentiation
Customer Oriented
PRODUCT DIFFERENTIATION STRATEGY
Nestle is using the product differentiation strategy by providing the
superior quality products. Their main focus is to keep the customers loyal.
They bought shelve space in different departmental stores to attract the
customers. They tried to reach each group of people in which they have
succeeded.
CUSTOMER ORIENTED
Customer satisfaction is the focal point for the company. They provide
hygienic products to their customers. Products are also verified by health and
safety measures and international quality standards.
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MARKETING MIX
Marketing Mix is defined as a set of controllable tactical marketing tools
that firm blends to produce the response it wants in the target market. The
marketing mix consists of every thing the firm can do to influence the demand
for its products. The many possibilities can be collected into four groups of
variables known as the four P's that are as follows:
1. Product
2. Price
3. Place
4. Promotion
1-PRODUCT
Product stands for goods and services that the company offers to target
market.
Nestl kit Kat is in four sizes including K.K Chunky, while Polo is in three
sizes. The shape and the color of the Kit Kat and Polo are quite attractive for
the customers. The labeling, packaging of the Kit Kat and Polo includes the
Nestl brand and logo. The packaging includes an expiry date and time along
with a manufacture date. Second part of labeling includes the quantity of
product in grams along with ingredients and contents of chocolates and
candies.
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2- PRICE
The amount of money charged for a product or service, or sums of the
values that consumers exchange for the benefits of having or using the
product or services.
The price of Nestl Kit Kat and Polo varies increases with the increase in its
size.
3- PLACING
Placing stands for company's activities that make the product availableto the target consumer.
Nestl' distribution is using the direct distribution channel to supply
confectionary products weekly to the retailers.
4- PROMOTION
Producing a quality product, pricing it attractively and making it available
for the target consumer is not the only problem companies need to solve.
Modern era is the era of communication with customer, assuring customer
satisfaction, demands for personal and non-personal communication with the
target customer to build a relationship with them. In an area-storming activity,
giving out products free, gift hampers, attracts new customers; kites
depending on the season (for existing and potential customers) are given. The
basic purpose is to explore the area that is being unexposed and to bring
awareness in the people.
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TRAINING PROGRAM
The training programs are conducted time to time according to the need
of the organization. Thus, there are different training programs held for the
employees. The training programs are conducted every month whereas the
training programs for the employees are conducted from time to time
according to the standard of the company. They are also providing technical
training to their employees. They made cross functional teams for training and
the development of their employees.
TRAINING PROGRAM FOR DSR
An organization conducts a training program to provide better service to
its customer. Thus, for this reason Nestl conducts training program every
month to train its DSR in various areas because DSR are the delivery person
and it is they who through their behavior and appearance develop the image of
their company.
The training program for the DSR emphasize on the following features:
How to behave when they are dealing with the customers
What is expected from them
What are there duties
How to handle the situation if any problem arises.
How to dress themselves
How to handle the retailer
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Their personal attire
TRAINING PROGRAMS FOR THE EMPLOYEES
The training program for the employees involves different programs,
which gives them chances to improve themselves where they lack and to
handle the situation more confidently, and efficiently.
According to the need, the employees are given a chance to visit the
Institute of Sales & Marketing in Lahore for one day training. These training
programs are offered to the employees once in a year to keep up the new
building standards of the organization and to make them competitive.
CAREER DEVELOPMENT
Nestl does give their employees a chance to discuss their career
development for future accomplishments. They send their efficient workers
and employees abroad for the improvement in their career. They also conduct
workshops and seminars for this purpose.
When employees are given specific training program, they tend to learn
new things and therefore show improvement in their performance. This
betterment in their performance enable them attain promotion for themselves
which gives them more experience and motivates them to do well in future and
develops their career as they go along.
COMPENSATION SYSTEM
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Nestle has established a separate compensation department for its
employees. They offer incentive pay and special bonuses to employees. They
have developed the performance appraisal system. They also provide
disability benefits to their employees. Company has hired human resource
professionals to develop a competitive compensation system.
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WHAT I HAVE LEARNED AT INTERNSHIP
PERSONAL LEARNING
Personal learning is a moral and ethical obligation set by a person to move in
a mellow way to excel in present and future.
During the internship I realized following duties.
Cohesiveness
Ever Ready For Challenges
Broad vision
Learning From Cradle To Grave
Always Create Opportunities
Open Communication With The Boss
Appearance
COHESIVENESS
A team player can achieve more than an individual. Good coordination
and cooperation with peers and other staff members can impulse a person to
perform better in difficult situations. During my internship I noticed that the
degree of cohesiveness among the nestle employees is high, that is why
nestle is achieving its target quite efficiently.
EVER READY FOR CHALLENGES
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If a person can handle problems and challenge adequately, he can grow
especially in marketing field where every thing is presently dynamic
.
BROAD VISION
THINK BIG
Think positively to avoid any kind of discrepancy and hurdle in your task.
Positive thinking and broad vision helps you to achieve some thing different
and new.
LEARNING FORM CRADLE TO GRAVE
Latest researches and journals can be very helpful in order to generate
new ideas.
At nestle, Sales department offers many new courses to the employees toupgrade their knowledge.
ALWAYS CREATE OPPORTUNITIES
Dont wait for opportunities always create opportunities
Time & Tide Waite for None
If you are able to create opportunities, success is yours. Now the
question is how?
The answer is very simple, by generating new and useful ideas for the
organization.
OPEN COMMUNICATION WITH YOUR BOSS
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To avoid any kind of misunderstanding with your boss, communicate
freely with him.
During my internship I analyzed that;
People dont leave the organizations they leave their bosses
So be friendly with your staff and boss and communicate freely to avoid
organizational switching.
APPEARANCE
Treat your self as a product
Attractive appearance can be very useful to impress others. A
professional should be dressed up properly to influence others.
RECOMMENDATION
There are few recommendations that are recommended if the project is to beconducted again in future.
Employees should be trained according to the changing standards of the
organization.
Company should conduct survey from time to time to according to which
changes can be introduced in the organization to stay updated in the
market.
They should introduce creativity into the work, so that the employees
can do their work active mindedly.
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Employees should be given compensation in order to keep them loyal.
Employees should be more involved in decision making to become more
differentiated.
Company should provide incentives to shop keepers.
THANK
YOU
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REFERENCES
I have collected all the data from the following sources,
www.nestle.com
By communicating with the employees
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