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 1 Kurnool Degree College, Kurnool


CHAPTER-1

INTRODUCTION



ABOUT CERELAC

A baby as he is very small needs a balanced diet for his good health. For a balanced diet

Mother’s milk is the best but after some time a child needs additional nutrients and for this

mother’s 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 child’s complete diet.

CERELAC is an instant baby food which contains the balanced diet for a child.



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.



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.



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.



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



CHAPTER-2

COMPANY PROFILE



HISTORY OF NESTLE

The key factor which drone the early history. The Nastle Company was Henri Nestle’s

search for a healthy economical alternative to breast feeding for mothers who could not feed

their infacts as the breast.

In the mid – 1860’s a train pharmacist began experiencing with various combinations of

cow’s 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 Nestle’s.

Nestle’s 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 Nestle’s new formula saved the

child’s 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, Nestle’s means “Little nest”.

Mean while the Anglo – Swiss condensed milk company, founded in 1866 by American’s

Charles and George Page, branded its product line in the mid – 1870’s to include cheese and



input formulas. The Nestle company, while had been purchased from Henri Nestle by launching

a 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.



BUSINESS PRINCIPLES

Nestle’s business objective and that of management and employees at all levels, is to

manufacture and market the company’s 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.



HISTORICAL DEVELOPMENT

1866 Company’s 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, Australia’s 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 Nestle’s

frozen business in Europe. Divestiture of Hill bros, MB and Chase & Sanborn Roast and

Ground Coffee brand (USA).



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 : CHOLADI. TAMILANADU 100% E.O.U. for Nestea.

1989 : NANJANGUD, KARNATAKA Instant coffee, Health Beverages.

1992 : SAMLIKA, HARYANA Wearing Cereals, Culinary Products,

Milk Products.

1995 : BICHOLIN, GOA

Wafers & Waffles, Chocolates.

1997 : BICOLIN, GOA

Culinary products



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 :

Fox’s, Sasso, After Eight, Nesquick, Pellignins, Perrier, Nescafe Gold.



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 Rupees in Billion

2003 11

2004 13

2005 16

2006 18

2007 17

2008 19



SALES AT NESTLE INDIA



CHAPTER-3

INTRODUCTION OF CONSUMERS



CONSUMER BEHAVIOUR

Consumer orientation stems from the company’s 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”.



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 consumer’s 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.



STEPS IN BUYING PROCESS:


NEED RECOGNITION

INFORMATION SEARCH

EVALUATION & INTENTION

PURCHASE DECISION

POST – PURCHASE DECISION


CHAPTER-4

CONSUMERS AWARENESS



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.



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.



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

company’s website and company’s 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

people’s 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.



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:



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.



CHAPTER-5

MERCHANDISING AT NESTLE



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.



STRUCTURE OF DISTRIBUTION


FACTORY

MOTHER GODOWN

CLEAR IN AND SELLING AGENT

DISTRIBUTORS

DEALERS / RETAILERS

CONSUMERS


CHAPTER-6

DATA ANALYSIS

AND

INTERPRETATION



CONSUMER PREFERENCE TOWARDS DIFFERENT

PRODUCTS

PRODUCT NO. OF RESPONDENTS

Cerelac 98

Farex 2

Neustum -

Others -

Source: Questionnaire

INFERENCE :

From the survey made it is clear that 98% of the market is occupied by Cerelac, 2% is

occupied by Farex.



CONSUMER PREFERENCE TOWARDS DIFFERENT

PRODUCTS



RESPONDENTS USING DIFFERENT CERELAC

FLAVOURS

DIFFERENT FLAVOUR NO. OF

RESPONDENTSPERCENTAGE

C.Wheat 30 30%

Wheat Apple 24 24%

Honey 12 12%

Vegetables 6 6%

Rice 22 22%

Dalrice 2 2%

Orange 4 4%


INFERENCE :

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 Dept. of Commerce and Management 33 Kurnool Degree College, Kurnool


Majority of respondent use C.Wheat and Apple.

RESPONDENTS USING DIFFERENT CERELAC

FLAVOURS



FREQUENCY OF PURCHASE

TIME PERIOD NO. OF RESPONDENTS (%)

Fort Night 20

Monthly 50

Weekly 12

Two Months 18


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.



FREQUENCY OF PURCHASE



MODE OF USAGE

MODE NO. OF RESPONDENTS (%)

Main Food 60

General Food 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.



MODE OF USAGE



CONSUMERS VIEW REGARDING PRICE

Rating of price NO. OF RESPONDENTS (%)

Reasonable 66

High 34

Low 00


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



CONSUMERS VIEW REGARDING PRICE



POINT OF PURCHASE

POINTS NO. OF RESPONDENTS (%)

Medical Store 46

Whole Seller 12

Retailer 18

Super Market 24


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.



POINT OF PURCHASE



TYPE OF PACKING PREFERRED

TYPE OF PACK NO. OF RESPONDENTS (%)

Refill 74

Tin 26


INFERENCE :

From the survey made it is clear that 74% of the respondents prefer refill pack, 26% of

respondents prefer Tin packing.



TYPE OF PACKING PREFERRED



CONSUMER RATING FOR ADVERTISEMENT

RATING NO. OF RESPONDENTS (%)

Very Impressive 34

Good 44

Reasonable 22


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.



CONSUMER RATING FOR ADVERTISEMENT



CONSUMER LEVEL OF SATISFACTION

LEVEL NO. OF RESPONDENTS (%)

100% 30

75% 46

50% 20

<50% 4


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%.



CONSUMER LEVEL OF SATISFACTION



CHAPTER-7

OVERALL FINDINGS



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.



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.



CHAPTER-8

ANNEXURE



QUESTIONNAIRE

Dear Sir/MadamI 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 “A STUDY ON CONSUMER SATISFATION

TOWARDS CERELAC” so please co operates in filling the Questionnaire.

Name :

Sex : Age:-

Occupation :

Address :

Monthly-Income :

Below 5000 [ ] 5000-10000 [ ]

10000-15000 [ ] Above 15000 [ ]

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 [ ]

(3)Cerelac Honey [ ] (4) Cerelac Vegetables [ ]

(5)Cerelac Rice [ ] (6) Cerelac Dal Rice [ ]



(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 Kurnool Degree College, Kurnool


(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 Cere lac? [ ]

(a) Very impressive (b) Good (c) Reasonable (d) Not effective

13. How do you feel Cerelac’s 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.



BIBLIOGRAPHY

Marketing Management - Philip Kotler

Company Website - www.nestle.com


cerelac project

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