Parag Project on Nestle
Transcript of Parag Project on Nestle
A PROJECT REPORT
On
FINANCIAL ANALYSIS OF NESTLE
Submitted by
Parag Sharma(05421001711)
In partial fulfillment of the requirementsFor the reward of the degree
OF
BACHELOR OF BUSINESS ADMINISTRATION
Under the supervision ofMr. Mayank Gupta
Ideal institute of management and technology(Affiliated to Guru Gobind Singh Indraprastha university)
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CERTIFICATE
Certificate that this project report titled “FINANCIAL ANALYSIS OF NESTLE” is the
bonfide work of Mr. Parag Sharma who carried out the research under my supervision.
Certified further that to the best of my knowledge the work report here in does not form
part of any other project report or dissertation on the basis of which degree or award was
confirmed on an earlier occasion on this or any other candidate.
Mr. Mayank Gupta
( Assistant Professor )
.
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ACKNOWLIDGEMENT
I would like to take this opportunity to sincerely thank Mr Mayank gupta for his valuable
support, guidance and suggestion. Under his able to accomplish my project with
confidence. I would also like to thanks my friends and my siblings who directly or
indirectly helped me in my project. I would also like to sincerely thank our ideal Institute
Of management and technology Where, I spared my time to have access to wide
information on internet.
DATE:
PLACE :
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OBJECTIVE
The study of pricing of Nestle different products and which techniques they use to
maximize the profit. We study the how Nestle increase their profit by introducing new
product. We have done a comparison of Nestle by its competitors. The place Nestle has
in market. . We have studied the ongoing battle in the financial market. So these are the
objectives of the project.
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TABLE OF CONTENTSCONTENTS PAGE NO.
CERTIFICATE…………….…………………………………………………………..(ii)ANCKNOWLEDGEMENT………………………………………....….…………….(iii) OBJECTIVE OF STUDY…………….………………….……….…………………..(iv) Chapter- 1: Conceptual discussion (1-13)
Chapter- 2: Introduction
2.1 Industry review 22.2 Company profile 42.3 Swot analysis 82.4 Competetor analysis 12
Chapter- 3:Research methodology (23- 29)
3.1 Research design 243.2 Methodology 253.3 Research framework 253.4 Data source 263.5 Objectives of study 29
Chapter- 4 Finding and analysis (30- 37)
4.1 Data analysis and findings 37
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Chapter- 5 Conclusion and suggestion (38- 40)
5.1 Conclusion 395.2 Suggestions 40
Bibliography 41
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CHAPTER 1
CONCEPTUAL DISCUSSION
Financial analysis (also referred to as financial statement analysis or accounting analysisor Analysis of finance) refers to an
assessment of the viability, stability and profitability of abusiness, sub-
business or project.
It is performed by professionals who prepare reports using ratios that make
use of information taken from financial statements and other reports. These
reports are usually presented to top management as one of their bases in
making business decisions.
Continue or discontinue its main operation or part of its business; Make or purchase certain materials in the manufacture of its product; Acquire or rent/lease certain machineries and equipment in the
production of its goods; Issue stocks or negotiate for a bank loan to increase its working capital; Make decisions regarding investing or lending capital; Other decisions that allow management to make an informed selection
on various alternatives in the conduct of its business.
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Chapter 2
INTRODUCTION
2.1 INDUSTRY REVIEW
Chocolate consumption in India is extremely low. Nestle dominates the chocolate market
with about 60% market share. Cadbury has emerged as a significant competitor with
about 20% market share. Key competition in the chocolate segment is from co-operative
owned Amul and Campco, besides a host of unorganized sector players. There exists a
large unorganized market in the confectionery segment too. Leading national players are
Parry's, Ravalgaon, Candico and Nutrine. MNC's like Cadbury, Perfetti, are recent
entrants in the sugar confectionery market. Other competing brands such as GCMMF's
Badam bar . Chocolate consumption in India is extremely low. Per capita consumption is
around 180gms in the International areas, compared to 6-8kg in the developed countries.
In rural areas, it is even lower. Chocolates in India are consumed as indulgence and not as
a snack food. Indian chocolate market grew at the rate of 10% pa in 70's and 80's, driven
mainly by the children segment. In the late 80's, when the market started stagnating,
Nestle repositioned its Dairy Product to any time rather than an occasional luxury. Its
advertisement focused on adults rather than children. Nestle’s Kit Kat, the first count
chocolate, was launched in 1900. Due to its resistance to temperature, the chocolate has
become one of the most widely distributed chocolate in the country. In the early 90's,
high cocoa prices compelled manufacturers to raise product prices significantly. The
launch of wafer ,chocolates and Perk spurred volume growth in the mid 90's. These
chocolates positioned as snack food rather than on the indulgence platform compete with
other Company. A strong volume growth was witnessed in the early 90's when Nestle
repositioned chocolates from children to adult consumption. The mid 90's saw the entry
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of new players like Cadbury, which created categories like wafer chocolate and spurred
growth.
Confectionery
Confectionery, processed food based on a sweetener, which may be sugar or honey, to
which are added other ingredients such as flavorings and spices, nuts, fruits, fats and oils,
gelatin, emulsifiers, colorings, eggs, milk products, and chocolate or cocoa.
Confectionery, usually called Vevey in the Switzerland, kinds according to their
preparation and based on the fact that sugar, when boiled, goes through different stages
from soft to hard in the crystallization process. Typical of soft, or crystalline, candy—
smooth, creamy, and easily chewed— are fondants (the basis of chocolate creams) and
fudge; typical hard, non crystalline candies are toffees and caramels. Other favorite
confections include nougats, marshmallows, the various forms of chocolate (bars or
molded pieces, sometimes filled), pastes and marzipan, cotton candy (spun sugar),
popcorn, licorice. Records show that confectionery was used as an offering to the gods of
ancient Switzerland. Honey was used as the sweetener until the introduction of sugar in
medieval Switzerland. Among the oldest types of candies are licorice and ginger from the
Far East and marzipan from Switzerland. when with the development of special candy-
making machinery it became a British specialty. In the Switzerland the candy industry
began to grow rapidly during the mid-18th century with the invention of improved
machinery and a cheaper process for powdering sugar. In 1900 the first candy bars were
sold in Kit Kat; by 1960 candy bars made up almost half of Switzerland confectionery
production. By the 1980s annual world production of confectionery totaled many millions
of kilograms.
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2.2 COMPANY PROFILE
2.2.1 VISION OF NESTLE
a) Governing objective: To deliver superior shareowner returns.
b) Priorities: Growth, efficiency capability
Growth: Their growth priority is represented by the mantra – Fewer, Faster, Bigger,
Better. They focus on number of advantaged global and regional brands, invest in getting
their new product developments into more markets faster, use joined up commercial and
marketing programmes to have a bigger impact and underpin the whole plan by executing
their initiatives better.
Efficiency: Their efficiency priority recognizes that it is not enough to grow;they
must also be more profitable. They maintain a relentless focus on cost and efficiency by
reducing central functions and costs; consolidating their businesses and reconfiguring
their manufacturing and distribution. Their vision in to action will help increase their
margins to mid-teens by 2011 with the aim of delivering mid-term margins by 2011.
Capability: Their capability priority ensures they continue to invest in the right
organization and skills to win. They have simplified and strengthened their organization
to a pure-play confectionery business. They manage their commercial strategies on a
global basis through their categories of Wonka Chocolate, Maggi strong functional
leadership.
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2.2.2 Values of Nestle
Their values are:
Performance: They are passionate about winning. They compete in a tough but
fairway. They are ambitious, hardworking and make the most of their abilities. They are
prepared to take risks and act with speed
.Quality: They put quality and safety at the heart of all of their activities – their
products, their people, their partnerships and their performance.
Respect: They genuinely care for their business and their colleagues. They listen,
understand and respond. They are open, friendly and they coming. They embrace new
ideas and diverse customs and cultures.
Integrity: They always strive to do the right thing. Honesty, openness and being
straight forward characterize the way they do business. They have clear principles and do
what they say they will do.
Responsibility: They take accountability for their social, economic and
environmental impact. In this way they aim to make their business, their partners and
their communities better for the future. Their Business Principles are their code of
conduct and also take account of global and local cultural and legal standards. They
confirm their commitment to the highest standards of ethics and business conduct
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2.2.3 Company Overview JAPAN HEADQUATERS VEVEY SWIZERLAND
The company dates to 1867, when two separate Swiss enterprises were founded that would later form the core of Nestlé. In the succeeding decades, the two competing enterprises aggressively expanded their businesses throughout Europe and the United States.
In August 1867, Charles and George Page, two brothers from Lee County, Illinois, USA, established the Anglo-Swiss Condensed Milk Company in Cham. Their first British operation was opened at Chippenham, Wiltshire, in 1873.
In September 1867, in Vevey, Henri Nestlé developed a milk-based baby food, and soon began marketing it. The following year, 1868, saw Daniel Peter begin seven years of work perfecting his invention, the milk chocolate manufacturing process; Nestlé's was the crucial cooperation that Peter needed to solve the problem of removing all the water from the milk added to his chocolate, and thus
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preventing the product from developing mildew. Henri Nestlé retired in 1875, but the company, under new ownership, retained his name as Farine Lactée Henri Nestlé.
In 1877, Anglo-Swiss added milk-based baby foods to its products, and in the following year the Nestlé Company added condensed milk, so that the firms became direct and fierce rivals.
In 1905, the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk Company, retaining that name until 1947, when the name Nestlé Alimentana SA was taken as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding company, Alimentana SA of Kempttal, Switzerland. Maggi was a major manufacturer of soup mixes and related foodstuffs. The company’s current name was adopted in 1977. By the early 1900s, the company was operating factories in the United States, United Kingdom, Germany and Spain. The First World War created new demand for dairy products in the form of government contracts, and by the end of the war, Nestlé's production had more than doubled.
After the war, government contracts dried up, and consumers switched back to fresh
milk. However, Nestlé's management responded quickly, streamlining operations and
reducing debt. The 1920s saw Nestlé's first expansion into new products, with chocolate-
manufacture becoming the company's second most important activity.
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2.3 SWOT ANALYSIS
Nestle Schweppes was founded in the year 1867 by Henri Nestle. Nestle India Limited arm of Nestle SA, which holds a 51% stake in the company .It is one of the leadings branded processed food companies in the country with a large market share in product like instant coffee, weaning foods, instant foods, milk products, etc. It also has a significant share in the chocolates and other semi-processed foods market.
Nestle’s leading brands include Cerelac, Nestum, Nescafe, Maggie, Kit Kat, Munch, Milkmaid. To strengthen its presence, it has been the company’s endeavor to launch new products at a brisk pace and has been quite successful in its launches.
Aim: Apply SWOT analysis to Cadbury’s current situation and its position to enter a
foreign market It is important to investigate on the internal and external environmental
forces for the Dairy Milk in France. Relevant organizational and industrial information is
required for the development of a SWOT analysis. The analysis of the environment and
the consideration of the situational factors when designing marketing planning, is critical
as it would allow Dairy Milk to capitalize on organizational strengths, minimize any
weaknesses, exploit market opportunities and avoid any threats
Strengths In India, Nestle has some very strong brands like Nescafe, Maggie and Cerelac. These
brands are almost generic to their product categories
.Global food producer, located in over 100 countries. Consistently one of the
world, largest producers of food products, with sales in the USA in 2008 of $10
billion; sales and earnings in 2008 were better than expected, even in a
downturned economy, Global sales in 2008 topped $101 billion.
Repeatedly ranked as the world’s largest bottled water company and have set up
facilities to operate water resources in a responsible manner.
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In 2008 Nestle was named one of “America’s Most Admired Food Companies” in
Fortune magazine for the twelfth consecutive year.
Successful due in part of their unquestionable ability to keep majopr brands
consistency in the forefront of consumer’s minds by renovating existing product
lines, keeping major brands from slipping into saturation/decline and having
superior access to distribution channels.
.
WeaknessesGenerally, as Nestle has a weak position in the US market, thus, need to change its target
to a different location. Besides its lack of distribution network, it also has a small total of
market share altogether. Therefore in order to market the product in France successfully,
Nestle would have to find out on how it can improve in order to have great performance.
It is also good to find out what are the situations that they could avoid in order to be
successful. In order to market products the following issues should be considered:
Growth in their organic food sales division was flat in 2008 ,even though
the industry grew 8.9%.
General Millis is an experienced ,established brands and are the market
leader in the USA ,however ,they have been lacking in innovation , have
not cashed in on the booming health food craze and have been behind in
creating new .niche products ,especially in their yogurt division ,where
Yoplait is the only brand making a profit.
In 2008 ,although their products did not carry the recalled pistachios,
several of their ice cream brands, Dryer’s, Eddy’s and haagen-Dazs,were
still plagued with bad PR and loss of sales.
OpportunitiesThrough its confectionary product line, least to mention is to build viable positions in
Prioritized markets through organic growth and acquisition. Besides what is mention
above, Nestle has other opportunities to have market development in Russia and China.
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The Timeout Candy Bar market is growing worldwide. This company is also at the same
time distributing its products via the internet – Develop Gourmet Line. Besides
developing the “Low Calorie” line of chocolates and sweets, they also offer the “Sugar
Free” sweets line. This has thus opened a completely Nestle world in US. Therefore in
order to get the product into a new foreign market, France, Nestle would have good
opportunities in store for them. Opportunities are as follows:
In today’s health conscious societies ,they can introduce more health based
products ,and because they are a market leader, they would likely be more
successful.
Provide allergen free food items, such as gluten free and peanut free.
Opened Nestle Cafe’s in major cities to feature Nestle product.
ThreatsDue to its confectionary products, it is very important for Nestle to be aware of any
present or upcoming threats. The company should take note of the changes in the
consumer’s buying trend. It is perceived that consumers might shift from chocolates to
“Healthy” snacks. If this were to happen, there might be a poor product development
which would tarnish the Nestle’s name. Needless to say price wars would occur between
its competitors like Mars, Hershey and Cadbury. Due to the abovementioned, there would
be seasonal sales slumps all year round which will reflect to an increase in cost of the raw
materials needed. Nestle would then have to be prepared for growth of small local
gourmet chocolates and regional candy manufacturers. However if Nestle were to market
its products in France, the company has to be aware of the risks it could encounter. It
might:
Any contamination of food supply, especially e-coil. Nestle has yet to find out
how this happened, and is still investigating.
They were affected by the pet food recall in 2007, in which 95 different brands of
dog and cat food were recalled due to contamination with rat poison. Also in
2007, FDA learned that certain pet foods were sickening and killing cats and
dogs. FDA found contamination in vegetable proteins imported into the united
states from chine and used as ingredients in pet food.
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They have major competitors, like Hershey’s, Cadbury –Schweppes, lindt and
Ghirardelli, Kelloggs, post, starbucks, beech-nut,
Quaker, Heinz, frito-lay.
2.4 COMPETITOR ANALYSIS
2.4.1 CADBURY INDIACadbury dominates the chocolate market with about 70% market share. Nestle has
emerged as a significant competitor with about 20% market share. In the early 90's, high
cocoa prices compelled manufacturers to raise product prices significantly. The launch of
wafer, chocolates Kit Kat and Perk spurred volume growth in the mid 90's. These
chocolates positioned as snack food rather than on the indulgence platform compete with
biscuits and wafers. A strong volume growth was witnessed in the early 90's when
Cadbury repositioned chocolates from children to adult consumption. The mid 90's saw
the entry of new players like Nestle, which created categories like wafer chocolate and
spurred growth.
2.4.2 Amul (GCMMF) The Rs 2,748-crore GCMMF is in chocolate segment
since quite some time. However, its market share is just
5% and the company did not look aggressive till
recently. Amul chocolates used to come in not so attractive packages and very little
marketing effort was seen. But things have changed and for good. Amul is now an
important player in this growing chocolate industry. It has firmed up its measures with
marketing and new product launches and revamping its packaging. Amul just recently
launched new chocolate brands in the market - Rejoice, Kite Bite and Nuts `bout You.
Amul targeted various segments with its new product, including housewives from SEC A
and B households, caterers, bakeries, restaurants, biscuit manufacturers, ice-cream
parlours, and confectioners.
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2.4.3 CAMPCO (Central Arecanut and Cocoa
Manufactures and Processors Co-operative)
CAMPCO willingly took up the responsibility to enter the
cocoa market As a strategy for survival in the International
scene the CAMPCO played a major role in establishing a name for Indian Cocoa, which
hitherto had not been achieved. It procured cocoa pods from growers and adopting
scientific processing methods to market standards, released dry cocoa beans matching in
quality in the world market equal to that of Ghana, Brazil and other cocoa cultivation
nations. After entering into the Cocoa market, the Co-operative was able to export Cocoa
Beans worth Rs 40 million to European countries in the initial phase of operations. India
was not known as a Cocoa producer in the international Trading Community, since yearly
production was hardly 5 to 6 thousand tones which is not even 0.3% of the total world
consumption. Through sustained efforts CAMPCO has been able to ensure reasonable
prices to Cocoa growers. The Co-operative had to face the problem of a limited internal
market and un remunerative export market. With the setting up of the chocolate
manufacturing factory at Putters, 50KM from Mangalore, the Co-operative has been able
to increase local consumption of cocoa based products and to export value added semi-
finished products. With a view to creating a permanent demand and a steady market for
the beans
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CHAPTER 3
RESEARCH METHODOLOGY
It refers to the method adopted to collect the relevant data and other information, which
forms the basis of the thesis writing. So for the effective writing of the thesis report, the
data must be quality oriented. My research is divided into two stages:
3.1 RESEARCH DESIGN
In order to produce empirical evidence, data collection is necessary in a particular
location. The process of discovery requires primary as well as secondary data, which
have to be collected using appropriate methods and techniques, including household
surveys and rapid appraisal methods. The study included both "exploratory" and
"evaluation" analysis. An analysis was done using "with" and "without" project situations
in order to see the comparative advantages and disadvantages of alternative and
traditional energy technologies. “With” and “without” project situations refer to the areas
with and without project intervention by the Rural Energy Development Program
(REDP) Additional primary data was gathered from key people such as women's group
leaders, community leaders, the village elders, energy development group,
promoters/facilitators, project staffs and professionals through using participatory
research methods. Efforts were made to avoid some data collecting errors such as
coverage error (not allowing every household in the study area to have an equal chance of
being sampled), sampling error (only some members being asked to provide
information), and measurement error (obtaining inaccurate answers to survey questions
due to unclear questions or instructions, tendency to provide socially acceptable answers,
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and deliberately lying). Having an up-to-date household population list, random
sampling, indirect questioning and trust building with the respondents minimized these
errors. Before the field data collection took place at various levels, a considerable time
period was given to the literature review to build up the strong theoretical background of
the study. An in depth review of the literature helped to understand the issues of rural
energy, gender and energy issues, and interventions and sustainability in depth to identify
the position of other scholars in the field.
3.2 METHODOLOGYMethodology is a way of thinking about and studying social reality and is a way to
systematically underneath the reasons behind the phenomenon. The methodology
followed for conducting the study includes the specification of research design, sample
design, questionnaire design, data collection and statistical tools used for analyzing the
collected data.
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3.3 RESEARCH FRAMEWORK
.
In
contrast the qualitative approach uses various participatory research methods, and small
case studies with an emphasis on a gender analysis framework. Information collected
through quantitative approaches was analyzed and interpreted using appropriate statistical
tools and techniques. Qualitative information was categorized according to groups of
parameters and interpreted in a descriptive way. I used the triangulation of methods in
order to avoid any biases in data sources such as household survey and participatory
research methods and they were used in conjunction with the evidences supported
through the review of literature.
3.4 DATA SOURCE
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3.4.1 Primary Data - The relevant information has been generated from the medium of
interviews. Interview had been very helpful in analyzing the information collected from
secondary data. The data that are still needed after that search is completed will have to
be developed specifically for the research project and are known as primary data. An important source of primary data is survey research. The various types of
surveys (personal, mail, computer, and telephone), are described ahead. Experiments are
another important source of data for marketing research projects. Experiments are
conducted in either a laboratory setting (most advertising copy pretests) or in a field
setting (test marketing). Electronic and computer technologies have revolutionized both
these environments,
3.4.2 Secondary Data- Secondary data represents information that already exists
somewhere, having been collected for another purpose. The secondary data that are
available are relatively quick and inexpensive to obtain, especially now that computerized
bibliographic search services and databases are available. The various sources of the
secondary data and how they can be obtained and used are described ahead. Most
secondary data are generated by specialized firms and are sold to marketers to help them
deal with a category of problems. Nielsen’s television ratings, which marketers use in
making advertising decisions,is the best-known example. Many of these services, broadly
categorized as audits, commercial surveys, and panels, allow some degree of
customization and thus fall between secondary and primary data. These sources are
treated in detail ahead. The secondary data sources that came to be utilized by me in
these were as follows-
I Internal Sources- Internal sources can be classified into four broad categories:
(a) Accounting records: The basis for accounting records concerned with sales is the
sales invoice. The usual sales invoice has a sizable amount of information on it, which
generally includes name of customer, location of customer, items ordered, quantities
ordered, quantities shipped, dollar extensions, back orders, discounts allowed, date.
(b) Sales force reports: Sales force reports represent a rich and largely untapped
potential source of marketing information. The word potential is used because evidence
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indicates that sales personnel do generally not report valuable marketing information.
Sales personnel often lack the motivation and/or the means to communicate key
information to marketing managers.
(c) Miscellaneous records: Miscellaneous reports represent the third internal data
source. Previous marketing research studies, special audits, and reports purchased from
outside for prior problems may have relevance for current problems.
(d) Internal experts: One of' the most overlooked sources of internal secondary data is
internal experts. An internal expert is anyone employed by the firm who has special
knowledge.
II. External Sources- External sources can be classified in to seven categories
(a) Computerized database: A computerized database is a collection of numeric data
and/or information that is made computer-readable form for electronic distribution.
(b) Associations: Associations frequently publish or maintain detailed information on
industry sales, operating characteristics, growth patterns, and the like. Furthermore, they
may conduct special studies of factors relevant to their industry. These materials may be
published in the form of annual reports, as part of a regular trade journal, or as special
reports.
(c) Government agencies: Federal, state, and local government agencies produce a
massive amount of data that are of relevance to marketers. In this section, the nature of
the data produced by the federal government is briefly described.
(d) Syndicated services: A wide array of data on both consumer and industrial markets is
collected and sold by commercial organizations.
(e) Directories: Any sound marketing strategy requires an understanding of existing and
potential competitors and customers. Suppose you were asked to prepare a report on the
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forest products industry, to aid your organization in developing a sales and marketing
approach to lumber manufacturers. A number of services and directories would prove
useful. A general industry directory such as Thomas Register of American Manufacturers
is a good starting place
(f) Other published sources: There is a virtually endless array of periodicals, books,
dissertations, special reports, newspapers, and the like that contain information relevant
to marketing decisions.
(g) External expects: External experts are individuals outside your organization whose
job provides them with expertise on your industry or activity. State and government
officials associated with the industry, trade association officials, editors and writers for
trade and publications, financial analysts focusing on the industry, government and
university researchers, and distributors often have expert knowledge relevant to
marketing problems.
3.5 OBJECTIVES OF STUDY
1. The study of pricing of Nestle different products and which techniques they use to
maximize the profit.
2. We study the how Nestle increase their profit by introducing new product.
3. We have done a comparison of Nestle by its competitors.
4. The place Nestle has in market.
5. We have studied the ongoing battle in the confectionery market.
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6. What are the difficulties, which Nestle faces, in past years.
CHAPTER 4
DATA INTERPRETATION
Type Société Anonyme
Traded as SIX: NESN
Euronext: NESTS
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OTC Pink: NSRGY
Industry Food processing
Founded Anglo-Swiss Condensed Milk Company
(1866)
Farine Lactée Henri Nestlé
(1867)
Nestlé and Anglo-Swiss Condensed Milk
Company
(1905)
Founder(s) Henri Nestlé, Charles Page, George Page
Headquarters Vevey, Switzerland
Area served Worldwide
Key people Peter Brabeck-Letmathe (Chairman)
Paul Bulcke (CEO)
Products Baby food, coffee, dairy products,breakfast
cereals, confectionery,bottled water, ice
cream, pet foods(list...)
Revenue CHF 83.64 billion (2011)[1]
Operating
income
CHF 12.53 billion (2011)[1]
Profit CHF 9.487 billion (2011)[1]
Total assets CHF 114.09 billion (2011)[1]
Total equity CHF 58.27 billion (2011)[1]
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Employees 328,000 (2012)[1][2]
Website www.nestle.com
Balance Sheet of Nestle India ------------------- in Rs. Cr. -------------------
Dec '11 Dec '10 Dec '09 Dec '08
12 mths 12 mths 12 mths 12 mths
Sources Of FundsTotal Share Capital 96.42 96.42 96.42 96.42
Equity Share Capital 96.42 96.42 96.42 96.42
Share Application Money 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00
Reserves 1,177.54 759.00 484.85 376.93
Revaluation Reserves 0.00 0.00 0.00 0.00
Networth 1,273.96 855.42 581.27 473.35Secured Loans 0.84 0.00 0.00 0.82
Unsecured Loans 970.03 0.00 0.00 0.00
Total Debt 970.87 0.00 0.00 0.82Total Liabilities 2,244.83 855.42 581.27 474.17
Dec '11 Dec '10 Dec '09 Dec '08
12 mths 12 mths 12 mths 12 mths
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Application Of FundsGross Block 2,552.21 1,854.70 1,640.79 1,404.85
Less: Accum. Depreciation 976.46 841.96 744.59 651.85
Net Block 1,575.75 1,012.74 896.20 753.00Capital Work in Progress 1,418.64 348.91 79.63 109.17
Investments 134.37 150.68 203.26 34.90Inventories 734.04 575.95 498.74 434.91
Sundry Debtors 115.42 63.29 64.19 45.59
Cash and Bank Balance 25.55 19.45 26.73 12.66
Total Current Assets 875.01 658.69 589.66 493.16
Loans and Advances 256.36 200.17 184.85 162.67
Fixed Deposits 201.66 235.84 128.86 181.03
Total CA, Loans & Advances 1,333.03 1,094.70 903.37 836.86
Deffered Credit 0.00 0.00 0.00 0.00
Current Liabilities 1,113.13 843.68 666.39 582.44
Provisions 1,103.83 907.94 834.79 677.32
Total CL & Provisions 2,216.96 1,751.62 1,501.18 1,259.76
Net Current Assets -883.93 -656.92 -597.81 -422.90Miscellaneous Expenses 0.00 0.00 0.00 0.00
Total Assets 2,244.83 855.41 581.28 474.17
Contingent Liabilities 0.00 0.00 63.07 84.90
Book Value (Rs) 132.13 88.72 60.29 49.09
Source : Dion Global Solutions Limited
BALANCE SHEET OF NESTLE INDIA FOR 2011 CHAPTER 5
FINDINGS AND ANALYSIS
Percentage of people eating chocolate
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This pie chart shows that 60 % of the people eat chocolate which is actually very
exciting results for the companies especially for the Nestle because it dominates almost
60% of the total confectionary market .only 40% of people do not eat chocolate.it is a
very good results which can really motivate the company to increase its production and
maximize its profit by selling more chocolates in the market.
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Different brands of chocolate that people usually eat
This diagram shows the interest of the people towards different brand. It reveals that
Nestle is the most popular brand in the market. Most number of people prefer Nestle. It
also indicates the nestle is the closest rival of Nestle which has the second highest sale
after Nestle. It is very good result for the Nestle as it motivates the company to increase
its production . so that its maximize its profit. And continue to dominate in both domestic
and international market.
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Number of the people which aware of the campaign of the brands
This is a pie chart which clearly reveals that how many consumers in the market are
aware of the different campaign which is currently going on in the market. It is quite sad
that only 54% percent people in the market are aware of the campaign and the remaining
people are not aware of such campaign. If company want to maximize its sale then it
really have to make the people aware of the following campaign. And make the people
knows about it product.
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Different product of Nestle in the market that people like
Nestle has many product in the market which they offers to the people. Some of them are,
Crunch, Kit Kat, Smarties and laffy taffy .
Crunch Aero brand was introduced in the North of England in 1935 as the 'new chocolate' and proved so popular that sales were extended throughout the UK by the end of the same year. By 1936, the popularity of Aero chocolate extended to New York. The brand’s success comes from its unique bubbly texture. The way the bubbles collapse and then melt on your tongue creates a deliciously smooth chocolate sensation. Over the years the popularity of the brand has spread and today the Aero brand is enjoyed in many countries including Canada, Australia, South Africa and Japan.
Some things you just don't outgrow. Nestlé Crunch chocolate bar – with a unique combination of rich milk chocolate and crisped rice - is one of them. Since 1938 the Nestlé Crunch brand has been bringing out the kid in people all over the world.
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Kit Kat
Have a break, have a Kit Kat.
Delighting consumers all over the world, Kit Kat brand is a favourite chocolate treat thanks to its light wafer texture and delicious chocolate taste, freshness and variety of formats. A perfect snack to enjoy as part of a balanced diet.
Smarties
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The delicious nibble everyone loves! Colorful coated chocolate confectionery in a variety of individual, multi-pack or special occasion formats. A long-time favorite in many countries including the UK, Germany, Australia, South Africa and Canada. Initially named 'Chocolate Beans', the Smarties brand has held a special place in people's hearts since 1937. Continuous product improvements, including a shift to no artificial colours or flavours, ensure that Smarties brand remains a popular choice for kids and adults alike.
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Laffy Taffy
Nestlé UK reduced the packaging on Smarties and other Nestlé brand chocolate Easter
Wonka brand opened its doors in 1983. Since that time, the Wonka brand has been dedicated to the art of producing fun, innovative, high-quality confections for candy lovers of all ages.
Wonka candies include: Wonka Chocolate, Nerds, Nerds Rope, Sweetarts, Shockers, Spree, Laffy Taffy, Runts, Everlasting Gobstopper, Lik-M-Aid Fun Dip, Pixy Stix, Bottle Caps, Kazoozles and Gummies.
The Willy Wonka Candy Factory is owned by Nestlé USA In
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Availibility of NESTLE in the market
This diagram clearly reveals of the availability of the Nestle chocolate in the market. It indicates that n is easily available in the market and people has no difficulty in buying these chocolate. If any company wants to capture a major share in the market then it has to make its product easily available in the market. So that people can familiarize with them and should try the. That’s why Nestle dominates the whole market by capturing 60% share of the market because its product is ea
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Total confectionary segment share
This figure clearly reveals about the total confectionary segment share in the market.the highest share in confectionary market is choco bars with 37.5%. The second highest share is sugar confectionary share with 33.6%.Gum share is 11.6%, Child novelty is 3.2%, Assort choco is 2.2%, Block choco is 10.9% and strips share is 1.1%. So this is the total confectionary segment share.
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4.1 DATA ANALYSIS AND FINDING
After analyzing the data we came to conclusion that Nestle is the most popular brand in
the market. It nearly dominates about 60% of the total confectionary market. . Nestle has
emerged as a significant competitor with about 20% market share. Key competition in the
chocolate segment is from co-operative owned Amul and Campco, besides a host of
unorganized sector players. There exists a large unorganized market in the confectionery
segment too. Even though nestle has 20% share in the market but still it is very far away
from Nestle. Nestle completely dominates the whole confectionary market. Whatever
product Nestle made it is completely able to sell in the market. Because Cadbury
manufactures quality products.In the Chocolate Confectionery business, Nestle has
maintained its undisputed leadership over the years. Some of the key brands are Nestle is
Crunch, Kit Kat, Smarties and Laffy Taffy.
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CHAPTER 6
CONCLUSION AND SUGGESTION
5.1 Conclusion
Nestle Schweppes prepares financial statements because: · As a listed company, it is
legally required to do so. Nestle Schweppes wants to communicate a true and fair picture
of the financial state of the company to its shareowners and external analysts. The
company values transparency and honesty and aims to reflect this is all its
communications, both internally and externally. Nestle won the Communication of
Corporate Strategy Award at the Price water house Coopers 'Building Public Trust'
awards in 2006. This publicly recognized the high standards of the company's reporting:
'a highly accessible overview of its short-term strategy, major markets and measurable
Price plays an important role in the purchase of a product like dairy milk they have
introduced dairy milk the most popular chocolate in Rs.5 also which is within the reach
of every customer. Consumer prefers quality goods at lower price like Nestle people just
introduced bytes, which is a snack, which is sweet. Consumer is loyal to brand so it’s
necessary to pay attention to the brand image. In today’s world most of the people see the
image of the product and then purchase it. So it’s necessary to make an image in market.
Consumer prefers those goods whose advertisements are shown on television. Price
should be according to the competitor’s price .i.e the price of Nestle should be less or
same as the competitors price.
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5.2 SUGGESTION
There should be difference in pricing strategy of Nestle i.e. in term of rural and urban
areas. It should show more and more ad of the chocolates that it is offering. For Example,
Nestle only emphasis on Kit Kat chocolate the most and not the other products. It
should introduce different schemes like giving mask to the children with their product to
attract children the most. The packaging of the Nestle product should be made more
attractive so that more and more people attractive towards it. Every customer likes
changes if not they get used to it but they should take risk.
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BIBLIOGRAPHY
www.nestleindia.co.in
www.findarticles.com
www.nestle.co.uk
www.economictimes .com
www.wikipedia.org
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QUESTIONNAIRE
Q1.
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