Marketing Management Project

1. A
PROJECT REPORT ON
MARKETING MANAGEMENT
OF PRODUCT MIX AND STP
ANALYSIS OF
NESTLE(MAGGI)

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(AICTE APPORVED & AFFILITED BY GUJARAT TECHNOLOGICAL UNIVERSITY)
Submitted To:-
Neha Hamilton (Professor)
In Partial fulfillment of the requirement
For the award of the degree of
Masters of Business Administration (Semister-2)
Prepared By:-
N i r a j G B h a d u w a l a
Subject: - Marketing Management.
Enrollment No: - 138220592022
Academic year: - 2013-2014

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DECLARATION
I hereby declare that the study entitled ‘A PROJECT REPORT ON
MARKETING MANAGEMENT OF PRODUCT MIX AND STP
ANALYSIS’ is being submitted by me in the partial fulfillment of the
requirement for the award of MASTERS OF BUSINESS
ADMINISTRATION.
The matter embodied in this project report has neither been
submitted to any other University nor to any Institution for the award of
degree. This project is my original work and it has not been presented
earlier in this manner. This information is purely of academic interest.
Name: Niraj G Bhaduwala Signature
Date: 1 December 2013
Place: VADODARA

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CONTENTS OF TABLE
Sr. No Contents Page
No.
1 PREFACE 3-4
2 ACKNOWLEDGEMENT 4-5
3 COMPANY PROFILE 5-6
4 HISTORY 6-8
5 INTRODUCTION 8-10
6 STP ANALYSIS 10-12
7 PRODUCT MIX 12-16
8 CONCLUSION 16-17
9 BIBLOGRAPHY 17-18

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PREFACE
The M.B.A curriculum has been designed to provide the further manager
ample practical exposure to business world. The project program is
necessary and essential part of the M.B.A degree cource. It helps the
student to gain the knowledge about various aspects of market, consumer
and industry.
Basically when we are playing with computer in every part of life, I used it
in my project not for the ease of my but for the ease of result explanation
to those who will read this project. The project presents the “MARKETING
MANAGEMENT OF PRODUCT MIX AND STP ANALYSIS”
I had toiled to achieve the goals desired. Being a neophyte in this highly
competitive world of business, I had come across several difficulties to
make the objectives a reality. If anywhere something is found not in
tandem to the theme then you are welcome with your valuable
suggestions. My project “MARKETING MANAGEMENT OF PRODUCT
MIX AND STP ANALYSIS” is based on study conducted by me under the
guidance of Neha Hamilton. It gives me pleasure to prepare the report on
this company.
I believe that my project report will have been very helpful to the practical
knowledge in the field of management of any organization.
I could Ancash this opportunity to the best of my encompetence, zeal,
perfection and academic knowledge and I am keen to make it on going
journey throughout my life as I strongly believe that learning is a journey
not a destination.

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ACKNOWLEDGEMENT
“It is not possible to prepare a project report without the assistance &
encouragement of other people. This one is certainly no exception.” I
would like to extend my sincere & heartfelt obligation towards all the
personages who have helped me in this endeavor. Without their active
guidance, help, cooperation & encouragement, I would not have made
headway in the project.
I feel great pleasure to prepare and present report of principles of
management and information being gathered and so much knowledge
and experience, feeling of gratitude arises. Firstly I would like to thank my
college “Institute of Technology And Management” and my dean
Academics Dr. Sanjay Kumar Vij for giving me an opportunity to learn
from this project. I would like to take this opportunity to express my
sincere thanks and gratitude to my subject teacher Miss Neha Hamilton
for providing their guidance of my report without which I would not
complete this project.
At last but not least I am thankful to all who have helped me directly or
indirectly for completion of my project report
Lastly any omission in this brief acknowledgement does not mean lack of
gratitude.
NIRAJ BHADUWALA
(INSTITUTE OF TEHNOLOGY AND MANAGEMENT)

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COMPANY PROFILE
Name of the Company: Registered Office:
“Nestle India Ltd”       M-5A, Connaught Circus,
New Delhi
Delhi
110001
     
 Board of Director:
Chairman (Non-Executive) Antonio Helio Waszyk
Director (Finance & Control) Shobinder Duggal
Director (Technical) Christian Schmid
Director
Michael W O Garrent
Ashok Kumar Mahindra
Ravinder Narain
Swati A Piramal
Alternate Director Richard Sykes
Company Secretary B Murli
Managing Director Etienne Benet
 Statutory Auditors: 
A F Ferguson & Co

 Registrar of Transfer Agents: 
  
Alankit Assignment Ltd. No.2E/21, Alankit House,
Jhandewalan Extension
New Delhi - 110055
Delhi
 Establishment
The original company came into existence in 1872 in Switzerland, when Julius Maggi took over his father's
mill.
 Market Capital
Nestlé is the biggest food company in the world, with a market capitalization of roughly 191 billion Swiss
francs, which is more than 200 billion U.S. dollars.

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HISTORY
Nestlé's origins date back to 1866, 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 (US consul in Switzerland) and George Page, two brothers from Lee County,
Illinois, USA, established the Anglo-Swiss Condensed Milk Company in Cham, Switzerland. Their first
British operation was opened at Chippenham, Wiltshire, in 1873.
A 1915 advertisement for "Nestlés Food", an early infant formula.
In September 1866, in Vevey, Henri Nestlé developed a milk-based baby food, and soon began marketing it.
The following year 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 preventing the product from
developing mildew. Henri Nestlé retired in 1875 but the company under new ownership retained his name as
Société Farine Lactée Henri Nestlé.
In 1877, Anglo-Swiss added milk-based baby foods to their 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 demand for dairy products in the form
of government contracts, and, by the end of the war, Nestlé's production had more than doubled.
Nestlé felt the effects of the Second World War immediately. Profits dropped from US$20 million in 1938,
to US$6 million in 1939. Factories were established in developing countries, particularly in Latin America.
Ironically, the war helped with the introduction of the company's newest product, Nescafé ("Nestlé's
Coffee"), which became a staple drink of the US military. Nestlé's production and sales rose in the wartime
economy.
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. Louis Dapples was CEO till 1937, when succeeded by Édouard Muller till his death in 1948.
The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated and
numerous companies were acquired. In 1947 Nestlé merged with Maggi, a manufacturer of seasonings and
soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libby's (1971) and Stouffer's (1973).
Diversification came with a shareholding in L'Oréal in 1974. In 1977, Nestlé made its second venture
outside the food industry, by acquiring Alcon Laboratories Inc.

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In 1984, Nestlé's improved bottom line allowed the company to launch a new round of acquisitions, notably
American food giant Carnation and the British confectionery company Rowntree Mackintosh in 1988, which
brought the Willy Wonka brand – among others – to Nestlé.
The Brazilian president, Lula da Silva, inaugurates a factory in Feira de Santana (Bahia), in February 2007.
The first half of the 1990s proved to be favourable for Nestlé. Trade barriers crumbled, and world markets
developed into more or less integrated trading areas. Since 1996, there have been various acquisitions,
including San Pellegrino (1997), Spillers Petfoods (1998), and Ralston Purina (2002). There were two major
acquisitions in North America, both in 2002 – in June, Nestlé merged its U.S. ice cream business into
Dreyer's, and in August a US$2.6 billion acquisition was announced of Chef America, the creator of Hot
Pockets. In the same time-frame, Nestlé came close to purchasing the iconic American company Hershey's,
one of its fiercest confectionery competitors, although the deal eventually fell through.[10][better source needed]
Another recent purchase included the Jenny Craig weight-loss program, for US$600 million.
In December 2005, Nestlé bought the Greek company Delta Ice Cream for €240 million. In January 2006, it
took full ownership of Dreyer's, thus becoming the world's largest ice cream maker, with a 17.5% market
share.[11]
In November 2006, Nestlé purchased the Medical Nutrition division of Novartis Pharmaceutical for $2.5B,
also acquiring, in 2007, the milk-flavouring product known as Ovaltine.
In April 2007, returning to its roots, Nestlé bought US baby-food manufacturer Gerber for $5.5 billion.
In December 2007, Nestlé entered into a strategic partnership with a Belgian chocolate maker, Pierre
Marcolini.
Nestlé agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The sale was to form part
of a broader US$39.3 billion offer, by Novartis, for full acquisition of the world’s largest eye-care company.
On 1 March 2010, Nestlé concluded the purchase of Kraft Foods's North American frozen pizza business for
$3.7 billion.
In July 2011, Nestlé SA agreed to buy 60 percent of Hsu Fu Chi International Ltd. for about $1.7 billion.On
23 April 2012, Nestlé agreed to acquire Pfizer Inc.'s infant-nutrition unit for $11.9 billion.Before the
acquisition, there was a 'bidding war' between the three shareholders Nestlé, Mead Johnson Nutrition and
Danone. Each of the companies held a share, with Nestlé holding the biggest share (17%) (Johnson held
15%, Danone 13%).
As of 28 May 2013, Nestlé has announced that it will expand R&D in its research center in Singapore. With
a primary focus on health and nutrition, Nestlé is investing $4.3 million in its Singapore center, creating 20
jobs for experts in related R&D fields.In 2013 Nestle Nigeria successfully pioneered and implemented the
use of compressed natural gas as a fuel source to power their Flowergate factory.

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INTRODUCTION
Nestle India Ltd, one the biggest players in FMCG segment, has a presence in milk & nutrition, beverages,
prepared dishes & cooking aids & chocolate & confectionery segments. The company is engaged in the
food business. The food business incorporates product groups, such as milk products and nutrition,
beverages, prepared dishes and cooking aids, chocolates and confectionery. Nestle India manufactures
products under brand names, such as Nescafe, Maggi, Milkybar, Milo, Kit Kat, Bar-One, Milkmaid and
Nestea. The company has also introduced products of daily consumption and use, such as Nestle Milk,
Nestle Slim Milk, Nestle Fresh 'n' Natural Dahi and Nestle Jeera Raita. The company's brands include milk
products and nutrition, prepared dishes and cooking aids, beverages, and chocolates and confectionery.
Their milk products and nutrition includes Nestle Everyday Dairy Whitener, Nestle Everyday Ghee, Nestle
Milk, Nestle Slim Milk and Nestle Dahi. Beverages Include Nescafe Classic, Nescafe Sunrise Premium,
Nescafe Sunrise Special and Nescafe Cappuccino. Nestle India is a subsidiary of Nestle S.A.
The company has presence across India with 7 manufacturing facilities and four branch offices spread
across the region. The four branch offices in the country help facilitate the sales and marketing of its
products. They are in Delhi, Mumbai, Chennai and Kolkata. The company's head office is located in
Gurgaon, Haryana. Nestle India Ltd was incorporated in the year 1956. The company set up their first
production facility in the year 1961 at Moga in Punjab. In the year 1967, they set up their second plant at
Choladi in Tamil Nadu as a pilot plant to process the tea grown in the area into soluble tea. In the year
1989, they set up a factory at Nanjangud in Karnataka. In the year 1990, the company entered into the
chocolate business by introducing Nestle Premium Chocolate. In the year 1991, they entered in joint
venture floated by the parent in collaboration with BM Khaitan group to set up facilities to manufacturing a
range of Soya based products. In the year 1993, they set up a factory at Samalkha in Haryana. In the year
1995, the company launched the company's worldwide legendary brand chocolate, Kitkat. The company
commissioned two factories in Goa at Ponda and Bicholim in the year 1995 and 1997 respectively. In the
year 1999, the company launched the product, Nestle Growing Up Milk nationally. In April 2000, they
forayed into the Ultra Heat Treated (UHT) liquid milk market. In the year 2001, the company launched
Nestle Pure Life bottled water. Within few months, they again launched their second water brand-San
Pellegrino - in the Indian market. The company also made their foray into the iced tea segment. In the year
2004, a project has been initiated to upgrade the production technology for infant nutrition products at
the Samalkha factory. Nestle India Ltd recognised for its outstanding performance in Exports by the Coffee
Board of India in the Export Awards 2004-05 as the Best Exporter of Instant Coffee, Best Exporter to Russia
& CIS Countries (coffee) and Best Exporter for Far East Countries (coffee). The company bestowed the
UDYOG RATNA award by the PHD Chamber of Commerce and Industry to recognise Nestle's significant
contribution to the economic development of Punjab for the year 2005. The company set up a new
department -the Channel & Category Sales Development (CCSD) to develop new solutions for the various
channels and customers and improve the implementation of commercial plans in the market. In the year
2006, the company set up their seventh factory at Pantnagar in Uttarakhand. In the year 2007, CNBC Asia
presented the company with the India Innovator of the year award. The company's four factories were
awarded the internationally recognised external certification ISO 14001 for adherence to environmental
processes and OSHAS 18001 for Health and Safety. In the year 2008, the company launched Nestle Nesvita
Pro-Heart Milk with Omega-3 in Mumbai. Nestle Nesvita Pro-Heart is part of daily diet and has Omega-3
heart friendly nutrients scientifically known to help manage cholestrol. As part of their ongoing

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commitment to offering best in class nutrition products to Indian consumers, the company launched
NESTLE NAN 3, a follow-up formula for older infants. During the year, MAGGI PICHKOO Tomato Ketchup
was launched in a unique easy to handle day pack to drive affordability, taste and convenience for a larger
number of consumers. The company also launched another pioneering product, MAGGI Bhuna Masala, to
cook tasty and healthy everyday meals, more conveniently. The company also launched Nestle Kitkat Mini
and Nestle Bar One Mini, at Rs 3 price to expand the repertoire of offerings. Similarly, they launched Nestle
Kitkat Chunky at Rs15 to strengthen the range of wellness oriented Nestle products that consumers can
choose from. The company's three more factories were awarded the internationally recognized external
certification ISO 14001 for adherence to environmental processes and OSHAS 18001 for Health and Safety.
With this, all the seven factories of the company now have ISO 14001 and ISO 18001 certifications. In the
year 2009, the company provided inputs to the group R&D for development of an innovative product
Maggi Bhuna Masala. They launched Maggi Nutri-Licious Pazzta. During the year, Maggi further leveraged
their strengths to drive affordable nutrition and launched two new products, namely, Maggi Rasile Chow
and Maggi Masala-ae-Magic. They launched Nestle Kitkat in a new unique single finger format and Nestle
Much Guru pack at the higher price point. The company acquired the Healthcare Nutrition business of
Speciality Foods India Pvt Ltd with effect from January 1, 2010. In the year 2010, the company expanded
the installed capacity of Milk Products and Nutrition by 3,983 MT to 147,546 MT. Also, they increased the
installed capacity of Prepared Dishes & Cooking aids by 14,028 MT to 205,017 MT. In the year 2011, the
company increased the installed capacity of Milk Products & Nutrition by 14,561 MT to 162,107 MT,
Prepared dishes & Cooking aids by 21,430 MT to 226,447 MT and Chocolate & Confectionery by 3,283 MT
to 36,052 MT.

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STP ANALYSIS
STP marketing, also called strategic marketing, involves finding a correct segment in which to market your product,
identifying the proper target market and positioning the product to create maximum profits. The most important
part of STP marketing is determining exactly what benefits your product offers and who will benefit most from using
it.
Segmentation
 Markets can be broken down into separate segments, each made up of customers with similar wants,
needs and buying habits. It's important for marketing managers to identify which segment their
products will fit best in. Segments can also be broken down into geographic locations. Once the
segment is identified, a marketing plan should be created to meet its needs.
Following are the basis of segmentation.
I. Geographic
Dividing the market into different geographical units such as nations, state regions,
counties, cities or neighborhoods. Maggi operates globally.
II. Demographic
Dividing the market into groups based on age, gender, family size, family life cycles,
income, occupation, education, religion, and race.
a. Age
They focus on both groups: males and females, however they are aware that children and
teenagers drink more than elders do so are a bit more inclined to the children and teenagers.
b. Income
Maggi caters to all income groups. Since the launch of their sachets they have made Maggi
possible in the hands of everyone.
c. Occupation
Youngsters such as children, teenagers and sport mans are the main group of people who
comprise drinking Maggi heavily.

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III. Psychographic
Dividing a market into different groups based on social class, life style or personality
characteristics.
Targeting
 Once a segment is identified, the next step in the STP process is to target the market. You need to
identify the consumers you want to market your product to and determine the growth potential of the
product in the market you choose to target. Once this is determined you need to use your marketing
plan to grab a major part of the market share.
 At nestle we believe that the lower class can’t afford the products of nestle because of their low
income and the comparatively high prices. So the products of nestle are not offered to the lower class
but it is offered to the middle and upper class.
 The upper and middle class can afford the products of nestle because the prices of nestle
products are within the rage of their approach.
Positioning
 When positioning a product, it's important to understand and identify the four p's of the marketing
mix: product, price, place and promotion. You need to make sure you're putting the right product in
the correct place, pricing it competitively, and promoting it to the right segment. Remember that
place can involve both geographic locations and finding the right placement on store shelves.

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PRODUCT MIX
Product
Maggi is a milk beverage with chocolate and malt, produced by Nestlé and originating from
Australia. It was developed by Thomas Mayne in 1934.
Maggi is also manufactured in other countries, including Malaysia (accounting for 90% of
worldwide consumption of Maggi , Singapore, China, Thailand, Indonesia, Philippines,. The name
derives from the famous Greek athlete Maggi of Crotona, after his legendary strength.
Maggi is a tangible product of nestle
Characteristics of product (Maggi)
 Quality:
The quality of nestle Maggi is better as compared to competitors products in market
 Name:
This product carry’s an attractive name. Its name is a sign of great strength as it is derived
from the name of a Greek athlete Maggin, Who was a symbol of great strength
 Design:
The design varies from country to country for Maggi. But indeed it is an attractive design
that is applied to Maggi.
 Variety:
Maggi is available in 2 types. Firstly it is available in ready to drink form. Secondly it is
available in powder form
Nestle produces consumer goods that a consumer can easily purchase from any
retailer. Nestle Maggi is a good example for this. Other examples for consumer good by nestle are
nestle milk pack, nestle dahi, nestle mineral water etc.

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Pricing
The pricing objective of nestle is ‘status que’.The company set the prices of its products according
to its status in the market.
Pricing method
The method used for pricing the products of nestle is ‘market based method’.
Where the prices are set according to demand and supply of the products. This method is also
applied while charging the price to Maggi.
Market entry strategy
The market entry pricing strategy that was used to introduce the nestle Maggi in Pakistan was the
‘market skimming pricing strategy’. Because there was no competitor in the market at the time it
was introduced in the market.
Discount and allowances
Quantity discount:
It is given to the customers who purchase the products at nestle in quantity. it is normally given at
2% of the deal
Trade discount:
It is given to the trade channel members of nestle. It is given at 2% of the deal deducted from the
total. As like given to quantity buyers.

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Place
The products of nestle are widely available in Pakistan. so we cant say that nestle is trying to
expand its sales area. Its products are available nearly at every retailer outlet. Therefore the
channel of distribution is given as follows:
Channel of distribution
Producer
To
Wholesaler
To
Retailer
To
Consumer
Firstly the product is sold to the wholesaler who further transfers it to the retailer charging a profit on it. The
profit margin for nestle products differ form product to product. The retailer is the last one in the channel
who directly deals with the consumer.
Outlet location:
The products of nestle are available at every retailer outlet in Pakistan.
So there are no any specific outlets for its products. Its products are convenience goods so these are sold
at the points where a consumer can easily buy them.

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Promotion
Promotion is to promote the product through advertisement. Advertisement can be in many ways. Nestle
uses different advertising ways to promote the Maggi.
Advertisement
o TV ads:
Nestlé Maggi is being advertised on TV. 2 types of TV adds are on air. Both have a theme which
focuses on children’s energy consumption.
o Billboards:
Billboards advertisement for nestle Maggi is very rare. But indeed it is an effective way to
advertise a product.
o Radio ads:
Advertisement on radio is also a good way to promote the product. Nestle is also using this type
of advertisement.
o Banners & pamphlet:
Banners are not used to promote Maggi but pamphlets are used to make the consumers be
award about it.
Customer relation
Nestle is a company that is not directly links to consumer. There are wholesaler and retailer
between it and consumer.
But the company has a customer care department. The complaints that are treated at the centre
were pretty few.
Nestle as its name stands for a sign of quality, does care about its customers and it has started
some projects that relates to customer’s health. Like it has started an awareness program that was
about the children.

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CONCLUSION
I am really very happy on concluding this report because it was great
opportunity for me to prepare the report on “STP ANALYSIS AND PRODUCT
MIX OF NESTLE”
I am very glad to say that it has been great opportunity to prepare this report
on marketing functions of organization. I have made my full efforts to include
all the aspects of management and have clearly presented the functions
systematically.
I feel very happy and glad to present this report as it is very important part in
the study of our MBA program to gain all the theoretical knowledge of
marketing management. I conclude that
In this conclusion I would like to say that the Nestle India Ltd. grows in the
future.
At the end lasts but not the least I wish that the “SUBWAY” keeps on growing
and progress in the future.

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BIBLOGRAPHY
 www.wikipedia.com
 www.scribd.com
 www.slideshare.com
 www.nestle.com