Cerelac Project

PROJECT REPORT
2010-2011
CONTENTS
CHAPTER-1 INTRODUCTION CHAPTER-2 COMPANY PROFILE CHAPTER-3 INTRODUCTION OF CONSUMERS CHAPTER-4 CONSUMER AWARENESS STUDY CHAPTER-5 MERCHANDISING AT NESTLE CHAPTER-6 DATA ANALYSIS & INTERPRETATION CHAPTER-7 OVERALL FINDINGS & SUGGESTIONS CHAPTER-8 ANNEXURE
Dept. of Commerce and Management
Kurnool Degree College, Kurnool
PROJECT REPORT
2010-2011
CHAPTER-1
INTRODUCTION
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ABOUT CERELAC
A baby as he is very small needs a balanced diet for his good health. For a balanced diet Mothers milk is the best but after some time a child needs additional nutrients and for this mothers milk may not be sufficient. There was a requirement of some food which could provide a balanced diet for the child.
NESTLE, keeping this requirement in mind went for CERELAC which provides all the essential Vitamins and Nutrients essential for a childs complete diet.
CERELAC is an instant baby food which contains the balanced diet for a child.
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DIFFERENT FLAVOURS OF CERELAC
Cerelac has different flavours to suit different requirement of the child. There are different flavors for different age groups children. Cerelac Wheat and Rice are for the children with age group of above 4 months and Cerelac Rice, Dal, Apple, Honey, Vegetable, Orange are children above 6 months of age. This Cerelac provides balanced diet to children of different age group.
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THE CERELAC ADVANTAGES FOR THE BABY
Nutritionally balanced weaning food. Unique amylase enzyme treatment to break down Carbohydrate. Enriched with essential fatty acid linoleic acid. Contains five essential minerals and twelve essential vitamins. Easy to prepare. Delicious taste.
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ADVANTAGES OF CERELAC
Starter Weaning Food:

Cerelac combines precooked wheat and milk to provide a nutritionally balanced weaning food for babies in the weaning age.
Mono Cereal :
Cerelac contains a single cereal allowing easier identification of food intolerances crucial during the weaning and period.
AAP (American Academy of Pediatrics):

Recommends introduction of single cereal at a time.
Superior Protein Quality :

Cerelac provides the right quality protein in line with Codex recommendation 15.5% protein with a protein efficiency ratio of 105%.
Balanced Fat Profile :

Cerelac has a unique blend of milk fat and corn oil to provide an adequate quality of Linoleate 1.5% ensuring that the baby continuous to get essential fatty acid.
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Essential vitamins and minerals :

Contains 12 essential vitamins and 5 essential minerals required for the healthy growth and development of the growing infant. Right calcium / phosphorus rano of 1.5 to facilitate optimum absorption of calcium. Vitamin C / Iron ratio of 1.5 for increase iron absorption.
Superior manufacturing process :

Cerelac is manufactured by the revolutionary Z-line manufacturing process (Amylase Enzyme Treatment) of Nestle resulting in : o Easy digestibility o More nutrition per feed o Smoother consistency of pap
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CHAPTER-2
COMPANY PROFILE
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HISTORY OF NESTLE
The key factor which drone the early history. The Nastle Company was Henri Nestles search for a healthy economical alternative to breast feeding for mothers who could not feed their infacts as the breast.
In the mid 1860s a train pharmacist began experiencing with various combinations of cows milk, wheat flour and sugar in an attempt to mothers who were unable to breast feed. His ultimate gaol was to help comabat the problem of the instant mortality due to malnutrition. He called the new product parine Lactee Hennri Nestles.
Nestles first customer was a premature infact who could tolerate neither his mothers milk nor any of the conventional substitutes and had been given up for last by local physicians. People quickely recognized the value of the new product, after Nestles new formula saved the childs life and within few years, Farine Lactee Nestle was being marketed in much of Europe.
Henri Nestle also showed early understanding of power of branding. He had adopted his own coat of arms as the trade mark. In Swiss German, Nestles means Little nest.
Mean while the Anglo Swiss condensed milk company, founded in 1866 by Americans Charles and George Page, branded its product line in the mid 1870s to include cheese and input formulas. The Nestle company, while had been purchased from Henri Nestle by launching a
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condensed milk product of its own. The two companies remains. Hence competitors merge in 1905.
In 1875 Every resident Daniel Peter figures out how to combine milk and coco a power to create milk chocolate. Peter, a friend neighbor of Henri Nestle started a company that quickly became the worlds leading markers of chocolate and later marged with Nestle. In 1882 Swiss Miller Julius Maggi created a food product utilizing legumes that was quick to prepare and easy to digest. His pea and bear soups helped in launching Maggi & Company was producing not only powdered soups, but also bouillon cubes and sources and flavorings.
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BUSINESS PRINCIPLES
Nestles business objective and that of management and employees at all levels, is to manufacture and market the companys products in such a way as to create value that can be sustained over the long term for consumers, share holders, employees, business partners and the large number of national economics in which Nestle operates.
Nestle does not favour short term profit and the expense of successful long term development, but recognizes the need to generate profit each year in order to maintain the support of the financial markers and to finance investment.
Nestle believes that, as a general rule, legislation is the most effective safeguard of ethical conduct, although in certain areas, additional guidance to management business principles, is beneficial in order to ensure that the biggest standards are net throughout the organization.
Nestle is conscious of the fact that the success of a competition is a reflection of the professionalism conduct and ethical values of the management and employees. Therefore recruitment of the right people, and on-going training and development are crucial.
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HISTORICAL DEVELOPMENT
1866 Companys foundation. 1905 Merger between Nestle and Anglo-Swiss condensed milk company. 1929 Merger with Peter Callier Kohler Chocolates Suisses S.A. 1947 Merger with Alimentana S.A. (Maggi). 1971 Merger with Ursina Franck (Switzerland). 1988 Nestle acquires victor Schmidt & Sohne, Australias oldest producer of confectionery, including the famous Mozartkugein. 2000 Nestle, through the Perrier Vine! Group, expands its mineral water activities with the outright acquisition of San Pellegrino. 2002 Nestle acquires Spillers pet foods of the UK and strengthens position in the Carnation Friskies brand. 2006 Divestiture of Findus brand (except in Switzerland and Italy) and parts of Nestles frozen business in Europe. Divestiture of Hill bros, MB and Chase & Sanborn Roast and Ground Coffee brand (USA).
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ORGANIZATIONAL SETUP
The factories of Nestle are located at six different places in India. Nestle produces, here a good quality products that says for longer period and from these factors the stock, in other words which are called as finished goods, are distributed to various branches that are located at various part of the country.
Following are the different factories and those different products of Nestle produced in each different factory.
1862
MOGA, PUNJAB Milk products, instant milk formula, wearing Cereals,
Culinary products, Bevarages. 1967 1989 1992 : : : CHOLADI. TAMILANADU 100% E.O.U. for Nestea. NANJANGUD, KARNATAKA Instant coffee, Health Beverages. SAMLIKA, Milk Products. 1995 : BICHOLIN, GOA Wafers & Waffles, Chocolates. 1997 : BICOLIN, GOA Culinary products HARYANA Wearing Cereals, Culinary Products,
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MAIN BRANDS
BEVERAGES :
Nescafe, Sunrise Premium, Sunrise Special, Sunrise Extra, Nestea, Teamate, Milo.
MILK PRODUCTS :
Lactogen, Nestogen, Nan, Nestle Milk, Dhai, Everyday Ghee, Butter, Everyday.
WEANING CEREALS :
Cerelac, Nestum, Growing Up Milk.
CULINARY PRODUCTS :
Magi Soup, Maggi noodles, Maggi cubes, Maggi Pickles.
CHOCOLATES :
Kitkat, Milky Bar, Munch, Bar One, Classic, Chaco Stick, Milky Bar Choo.
CONFECTIONERY:
Polo, Eclairs, Milky bar Eclairs, Toffo, Fruitps, Splash, Twins, Chews, Soothers.
DESERT MIX:
Milk Maid, Gulab Jamun, Kesar Kulfi.
MINERAL WATER:
Pure life.
SPECIALITY IMPORTS :
Foxs, Sasso, After Eight, Nesquick, Pellignins, Perrier, Nescafe Gold.
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RECENT YEARS SALES REPORT
Nestle has a wide market around the world. As usual, in India, it enjoys a good market and keeps creeping up all the way.
The following reports give the sales analysis of Nestle.
SALES AT NESTLE INDIA
Years 2003 2004 2005 2006 2007 2008
Rupees in Billion 11 13 16 18 17 19
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SALES AT NESTLE INDIA
20 18 16 14 12 10 8 6 4 2 0 2003 2004 2005 11 13 16
18 17
19
2006
2007
2008
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CHAPTER-3
INTRODUCTION OF CONSUMERS
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CONSUMER BEHAVIOUR
Consumer orientation stems from the companys adoption and implementation of the marketing concept a philosophy of every business unit which has triple implications namely : 1) The victory of any business unit rests on consumers who are willing to accept and pay for the product or services. 2) The firm must be aware of what the market want well in advance of production and 3) Consumer wants must be monitored continuously for assured success over competitors.
The consumers are the arbiters of fortune in business in highly competitive economic system, the success, survival and growth of firm warrants accurate knowledge about the consumer is the crucial task of every marketing manager.
DEFINITION :
Professor Walter C.G and Professor Paul G.W it is the process where by individual decide whether, what, when where, how and from whom to purchase goods and services.
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STEP IN CONSUMER BUYING PROCESS:

The following are the five steps generally followed by the consumer while buying a product.
1) Need Recognition:
Need recognition is the awareness of the want or a desire or a consumption problem with out whose satisfaction the consumer feels restless and tension charged.
2) Information Search:
Consumer interested is indicated in the consumers willingness to seek further information about the product or service. Since there are varieties of product and he seeks to have maximum satisfaction, he searches relevant information.
3) Evaluation and intention:

The evaluation stage is the stage of mental trial of the produce or a service.
4) Purchase Decision:
Decision to purchase implies consumer commitment for a produce or a service. Practically, it is the last stage in the buying process because, it completes the exchange process.
5) Post Purchasing Reaction:

The post-purchase experience may be a set of positive or negative feeling. Positive feeling or satisfaction will result ir repeat sales or at least recommending the product or service to others : on the other hand, dissatisfaction or negative feeling creating anxiety and doubts.
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STEPS IN BUYING PROCESS:
NEED RECOGNITION
INFORMATION SEARCH
EVALUATION & INTENTION
PURCHASE DECISION
POST PURCHASE DECISION
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CHAPTER-4
CONSUMERS AWARENESS
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OBJECTIVES
1) To find out the share of Cerelac in the market. 2) To know the consumers perception regarding the price of Cerelac. 3) To know about the consumers view regarding the packing, availability, advertisement and promotional activity of Cerelac. 4) To find out the level of satisfaction of the consumer after using Cerelac. 5) To know the best media of advertisement according to the consumer. 6) To find out the point of purchase of the consumer. 7) To know the consumers opinion regarding the quality of Cerelac.
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METHODOLOGY
After Defining the Aims and Objectives, the Next Stage of an efficient planned for gathering the needed information.
To collect the information, marketing research is taken into consideration. Marketing research has been defined as The systematic gathering and services from producer to the consumer. American Marketing Association
DATA SOURCES :
There are two sources of collection data : 1) Primary Source 2) Secondary Source
In the survey being conducted both primary and secondary source of data has been used in the collection of relevant information.
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PRIMARY SOURCE:
Primary data collection is more costly but the data is usually more relevant to the issue at the hand. The normal procedure is to interview some people individually.
SECONDARY SOURCE:
Secondary data is the data that is collected from the already existing source like the companys website and companys catalogues.
The company profile give a detailed report of the history and the various products being manufactured by it.
APPROACH SURVEY:
Survey is best suited for the descriptive research. They are undertaken to learn about peoples knowledge, beliefs, preference and satisfaction.
INSTRUMENT:
Questionnaire: This consists of a set of questions presented to respondents for their answers. Questionnaires need to be carefully developed and tested before using it for data collection.
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FORM OF INSTRUMENT
Closed ended questions:
The form used here is closed ended question with all the possible answer to make the respondents feel comfortable. Open ended question are useful in knowing the ideas of the respondents in their own words.
Types of questions asked:

A question offering two answer choices Multiple choices: A question offering three or more choices.
Rating scale:
A scale rates some attributes from excellent to poor. Sample: The sample size selected is 100.
Sampling procedure:
The procedure is simple random sampling. Ever member of the population has an equal chance of selection.
CONTACT METHOD:
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Personal interview: The contact method used is personal interview. The respondents were asked the question in the question in the questionnaire and were explained in full detail.
LIMITATIONS
1) The research is restricted to Kurnool City only. 2) Some consumers were not willing to give accurate information. 3) Some consumers showed their disinterest in taking up the questionnaire.
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CHAPTER-5
MERCHANDISING AT NESTLE
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DISTRIBUTION NETWORK OF NESTLE:

Stock distribution is marketing activity that concerns the handling and the movement of goods. It is a major component of marketing mix and cost area of business. It includes all these activities connected with the efficient movement and this storage of materials and finished inventory form supplier, between enterprise facilities and to customers.
It is defined, as Stock distribution is the management of physical flow of product and established and operation of flow system.
The stock of Nestle is moved, from the factories to the mother Godown. In the world of Nestle the warehouses are popularly know as Mother Godowns. Then the stock is collected by C & S (clearing and Selling Agents). C & S Agents are those who have the stock is moved to the distributors. Who distribute the stock to their specific region. The dealers and retailers are those who take the risk to hand sell to the consumers through shops, outlets etc.
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STRUCTURE OF DISTRIBUTION
FACTORY
MOTHER GODOWN
CLEAR IN AND SELLING AGENT
DISTRIBUTORS
DEALERS / RETAILERS
CONSUMERS
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CHAPTER-6
DATA ANALYSIS AND INTERPRETATION
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CONSUMER PREFERENCE TOWARDS DIFFERENT PRODUCTS
PRODUCT Cerelac Farex Neustum Others
NO. OF RESPONDENTS 98 2 -
Source: Questionnaire INFERENCE : From the survey made it is clear that 98% of the market is occupied by Cerelac, 2% is occupied by Farex.
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CONSUMER PREFERENCE TOWARDS DIFFERENT PRODUCTS
20 0
98
Cerelac
Farex
Neustum
Others
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RESPONDENTS USING DIFFERENT CERELAC FLAVOURS
DIFFERENT FLAVOUR C.Wheat Wheat Apple Honey Vegetables Rice Dalrice Orange Source: Questionnaire INFERENCE :
NO. OF RESPONDENTS 30 24 12 6 22 2 4
PERCENTAGE 30% 24% 12% 6% 22% 2% 4%
From the survey done it is found that our of 100 respondents. 30% use C.Whaet 24% use Apple 12% use Honey 6% use Vegetable 22% use Rice 2% use Dalrice 4% use Orange Majority of respondent use C.Wheat and Apple.
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RESPONDENTS USING DIFFERENT CERELAC FLAVOURS
30 30 24 25 20 15 10 5 0
C.Wheat Wehat Apple Honey Vegetables Rice Dalrice Orange
22
12
6 2
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FREQUENCY OF PURCHASE
TIME PERIOD Fort Night Monthly Weekly Two Months
NO. OF RESPONDENTS (%) 20 50 12 18
Source: Questionnaire INFERENCE : From the survey made it is clear that, 20% of respondents purchase fortnightly, 50% of respondents purchase monthly, 12% of respondents purchase weekly and only 18% of respondents purchase once in two months.
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FREQUENCY OF PURCHASE
50 50 40 30 20 10 0 20 12
18
Fort Night
Monthly
Weekly
Two Months
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MODE OF USAGE
MODE Main Food General Food
NO. OF RESPONDENTS (%) 60 40
Source : Questionnaire INFERENCE : From the survey it is clear that majority of the respondents use Cerelac as main food with 60% and just 40% use it as General food.
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MODE OF USAGE
40
60
Main Food
General Food
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CONSUMERS VIEW REGARDING PRICE
Rating of price Reasonable High Low
NO. OF RESPONDENTS (%) 66 34 00
Source: Questionnaire INFERENCE : From the survey it is clear that 66% of the respondents feel the price of Cerelac to be and 34% of the respondents feel it to reasonable. So this means that the price of Cerelac is reasonable
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CONSUMERS VIEW REGARDING PRICE
34
66
Reasonable
High
Low
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POINT OF PURCHASE
POINTS Medical Store Whole Seller Retailer Super Market
Source : Questionnaire INFERENCE : From the survey it is clear that 46% of the respondents purchase from medical store, 12% of the respondent purchase from whole Seller, 18% from Retailer, 24% fro Super Market.
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POINT OF PURCHASE
46 50 45 40 35 30 25 20 15 10 5 0 18 12
24
Medical Store
Wholer Seller
Retailer
Super Market
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TYPE OF PACKING PREFERRED
TYPE OF PACK Refill Tin
NO. OF RESPONDENTS (%) 74 26
Source : Questionnaire INFERENCE : From the survey made it is clear that 74% of the respondents prefer refill pack, 26% of respondents prefer Tin packing.
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TYPE OF PACKING PREFERRED
26
74
Refill
Tin
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CONSUMER RATING FOR ADVERTISEMENT
RATING Very Impressive Good Reasonable
NO. OF RESPONDENTS (%) 34 44 22
Source: Questionnaire INFERENCE: From the survey it is clear that from the rating of the respondent it can said that the advertisements of cerelac are very impressive which consists of 34% and 44% feel that they are good while 22% feel they are reasonable.
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CONSUMER RATING FOR ADVERTISEMENT
50 40 30 20 10 0 Very Impressive Good 34
44
22
Reasonable
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CONSUMER LEVEL OF SATISFACTION
LEVEL 100% 75% 50% <50%
Source: Questionnaire INFERENCE : From the survey made, 30% of respondents level of satisfaction with Cerelac is 100%, 46% of respondents level of satisfaction is 75%, 20% of respondents level of satisfaction is 50% and 4% of respondents level of satisfaction is less than 50%.
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CONSUMER LEVEL OF SATISFACTION
4 20 30
46
100%
75%
50%
<50%
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CHAPTER-7
OVERALL FINDINGS
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CONCLUSION
1) From the survey it is very clear that Cerelac holds a major share in the baby cereal foods. 2) The quality of the produce which the mothers feel is excellent is the prime factor that attracted the customers to buy Cerelac. 3) The advertisement of Cerelac which are very impressive attracted many consumers. 4) The availability of Cerelac is satisfactory. 5) Most of the consumers are satisfied with the packing. 6) Most of the consumers feel that television is the best media of advertisement. 7) Most of the consumers purchase Cerelac at medical stores.
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SUGGESTIONS
1) Some of the consumers say that the price should be reduced, so that every one can purchase it. 2) Some consumers feel that there should be some offers relating to babies like toys. 3) Some consumers say that too much Cerelac variety creates confusion.
4) Some consumers suggest that quality of the other flavors of Cerelac must be
equalized to Cerelac wheat and apple.
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CHAPTER-8
ANNEXURE
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QUESTIONNAIRE
Dear Sir/Madam I am K.Triveni pursuing Final Year B.B.M in KURNOOL DEGREE COLLEGE, KURNOOL. As per the partial fulfillment of my course, I have to compel the project work entitled Name Sex Occupation Address Below 5000 10000-15000 : : : : [ [ ] ] 5000-10000 Above 15000 [ [ ] ] Age:A STUDY ON CONSUMER SATISFATION TOWARDS CERELAC so please co operates in filling the Questionnaire.
Monthly-Income :
1. Does your baby consume any baby food? [ Y / N]
2. If yes, which product do you use?
(a) Cerelac
(b) Farex
(c) Nestum (d) Other specify
3. If yes, which of the following flavours do you use:

(1) Cerelac Wheat [
] (2) Cerelac Wheat Apple [ ] (4) Cerelac Vegetables [ ] (6) Cerelac Dal Rice
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] ]
(3)Cerelac Honey [ (5)Cerelac Rice [
PROJECT REPORT
2010-2011
(7) Cerelac Orange [
] [ ]
4. Who makes the purchasing decision of Cerelac in your house?
(a) Relatives & Friends (b) Doctors (c) Advertisement (d) Other Specify 5. What is the frequency of yours purchase? (a) Weekly (b) Fortnightly (c) Monthly (d) two monthly 6. How do you use Cerelac for your baby? (a) Main food [ ] (b) General Food [ [ ] ] [ ]
7. What factors do you consider while purchasing Cerelac ? (a) Quality (b) Price (c) brand (d) other Specify. [
8. What do you perceive the price of Cerelac ? (a) High (b) Reasonable (c) Low
(d) Other Specify.. [ ]
9. What do you feel about the Quality of Cerelac ? (a) 100%
(b) 75% - 100% (c) 50% - 75% (d) Below 50% [ ]
10. Where do you purchase the product mostly?

Dept. of Commerce and Management 54
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(a) Wholesaler
(b) Retailer
(c) Supermarket
(d) Medical Stores
11. Which type of pack do you purchase? Refill Pack [ ] Tin Pack [ ]
12. What do you feel regarding the advertisement of Cerelac? [ (a) Very impressive (b) Good (c) Reasonable
(d) Not effective [ ]
13. How do you feel Cerelacs availability?
(a)Very comfortable (b) Satisfactory (c) poor (d) Other specify .. 14. To what extent are you satisfied after using Cerelac? (a) 100% (b) 75%- 100% (c) 50% - 75% [ ]
(d) below 50%
15. Please give your Suggestion, if any.. ..
Signature.
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BIBLIOGRAPHY
Marketing Management Company Website
Philip Kotler www.nestle.com
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PROJECT REPORT

Dept. of Commerce and Management

Kurnool Degree College, Kurnool

Dept. of Commerce and Management

Kurnool Degree College, Kurnool

Dept. of Commerce and Management

Kurnool Degree College, Kurnool

DIFFERENT FLAVOURS OF CERELAC

Dept. of Commerce and Management

Kurnool Degree College, Kurnool

THE CERELAC ADVANTAGES FOR THE BABY

Dept. of Commerce and Management

Kurnool Degree College, Kurnool

Starter Weaning Food:

AAP (American Academy of Pediatrics):

Superior Protein Quality :

Balanced Fat Profile :

Dept. of Commerce and Management

Kurnool Degree College, Kurnool

Essential vitamins and minerals :

Superior manufacturing process :

Dept. of Commerce and Management

Kurnool Degree College, Kurnool

Dept. of Commerce and Management

Kurnool Degree College, Kurnool

Dept. of Commerce and Management

Kurnool Degree College, Kurnool

Dept. of Commerce and Management

Kurnool Degree College, Kurnool

Dept. of Commerce and Management

Kurnool Degree College, Kurnool

Dept. of Commerce and Management

Kurnool Degree College, Kurnool

MOGA, PUNJAB Milk products, instant milk formula, wearing Cereals,

Dept. of Commerce and Management

Kurnool Degree College, Kurnool

Dept. of Commerce and Management

Kurnool Degree College, Kurnool

RECENT YEARS SALES REPORT

The following reports give the sales analysis of Nestle.

SALES AT NESTLE INDIA

Years 2003 2004 2005 2006 2007 2008

Dept. of Commerce and Management

Kurnool Degree College, Kurnool

SALES AT NESTLE INDIA

20 18 16 14 12 10 8 6 4 2 0 2003 2004 2005 11 13 16

Dept. of Commerce and Management

Kurnool Degree College, Kurnool

Dept. of Commerce and Management

Kurnool Degree College, Kurnool

Dept. of Commerce and Management

Kurnool Degree College, Kurnool

STEP IN CONSUMER BUYING PROCESS:

3) Evaluation and intention:

5) Post Purchasing Reaction:

Dept. of Commerce and Management

Kurnool Degree College, Kurnool

STEPS IN BUYING PROCESS:

EVALUATION & INTENTION

POST PURCHASE DECISION

Dept. of Commerce and Management

Kurnool Degree College, Kurnool

Dept. of Commerce and Management