Marketing strategy of Nestle Chocolate

1. MARKETING STRATEGY OF NESTLE
SUBMMITTED BY:
VINU ARPITHA KS [ 16DM020 ]
JYOTI BARIK [ 16DM041 ]
MANISHA PATTNAIK[16DM031]
MAHTAB ALAM [ 16DM013 ]
AMBIKA PANDA [ 16DM004 ]
NIDA KHANAM [ 16DM027 ]
RIZWAN ALI [ 16DM032 ]

2. CONTENTS
• Introduction
• Competitors
• 4Ps
• STP
• SWOT analysis
• Issues and findings
• Recommendations

3. INTRODUCTION
• NESTLÉ India is a subsidiary of NESTLÉ S.A. of Switzerland.
• After more than a century-old association with the country, today, NESTLÉ India
has presence across India with 8 manufacturing facilities and 4 branch offices.
• NESTLÉ India set up its first manufacturing facility at Moga (Punjab) in 1961
followed by its manufacturing facilities at Choladi (Tamil Nadu), in 1967;
Nanjangud (Karnataka), in 1989; Samalkha(Haryana), in 1992; Ponda and
Bicholim (Goa), in 1995 and 1997, respectively; and Pantnagar (Uttarakhand), in
2006.In 2012, Nestlé India set up its 8th manufacturing facility at Tahliwal
(Himachal Pradesh).

4. • The 4 Branch Offices located at Delhi, Mumbai, Chennai and Kolkata help facilitate
the sales and marketing activities
• The NESTLÉ India’s Head Office is located in Gurgaon, Haryana.
Mr. Suresh Narayanan Chairman and Managing Director
Net Sales Turnover (2016) ----- Rs. 9223.80crore
Profit ---- Rs. 1202.75 crore
Nestle present market share is 25%

5. COMPETITORS
• Cadbury
• Amul
• Ferrero Rocher

6. 4Ps OF MARKETING MIX
PRODUCT-

8. PRICE-
Pricing is one of the most important elements of the marketing mix, as it is the only
element of the marketing mix, which generates a turnover for the organization.
Promotional Pricing Strategy-It is pricing to promote a product is a very common
application. There are many examples of promotional pricing including
approaches such as BOGOF (Buy One Get One Free), money off vouchers and
discounts.
• Nestle follows promotional pricing strategy for Kit Kat offers Rs.25 voucher for
shopping in Amazon.
Competitive Pricing-Competitive pricing is setting the price of a product or
service based on what the competition is charging.
• This pricing strategy is followed by Nestle for Nestle Bar1 to compete Cadbury’s 5
star.

9. PRODUCT WEIGHT PRICE(Rs.) PRODUCT WEIGHT PRICE(Rs.)
CHOTU MUNCH 6gm 2
MUNCH 10.1gm 5 CADBURY'S PERK 15gm 5
MUNCH 23gm 10 CADBURY'S PERK 28gm 10
MUNCH TRIO 25gm 10
MUNCH 202gm 100 CADBURY'S PERK 200gm 100
KITKAT 6gm 5
KITKAT 2 FINGER 12.8gm 10
KITKAT 27.5gm 20
KITKAT 128gm 100
NESTLE BAR ONE 12gm 5 CADBURY'S 5 STAR 12gm 5
NESTLE BAR ONE 22gm 10 CADBURY'S 5 STAR 21.5gm 10
NESTLE BAR ONE 44gm 20 CADBURY'S 5 STAR 44gm 20
NESTLE'S CLASSIC CHOCOLATE 6.5gm 5 CADBURY'S DAIRY MILK 6gm 5
NESTLE'S CLASSIC CHOCOLATE 18gm 10 CADBURY'S DAIRY MILK 13gm 10
NESTLE'S CLASSIC CHOCOLATE 36gm 20 CADBURY'S DAIRY MILK 25gm 20
PRICE COMPARISION OF SOME OF THE CHOCOLATES OF NESTLE WITH THE COMPETITOR

10. PLACE
Nestle is based on the principle of Decentralization, which means each zone is
responsible for the efficient running of its business- including the recruitment of its
staff.
CARRIAGE & FORWARD AGENCY
DISTRIBUTOR
RETAILER WHOLE SALER
CUSTOMER
GODOWNS
RETURN POLICY

11. DISTRIBUTION POINT IN BHUBANESWAR
DISTRIBUTOR COVERAGE AREA
(covered by us)
SKU’S
AJAY KUMAR
RAHUL KUMAR
RAVI TALKIES,
KALPANA SQUARE,
BAPUJINAGAR
CUTTACK
HINDUSTAN
AGENCY
SAHID NAGAR Not known

12. PROMOTION- Nestle promotions are being done through medias such as TVC’s and
ATL marketing. It is also present online in different ecommerce websites. Overall,
Nestle is a brand which has strong products as well as strong marketing, and hence the
brand has a very high brand recall value.
• KITKAT-The brand used the world famous campaign "Have A Break, Have A Kit Kat”.
• MUNCH-
o Munch uses the tagline “Can’t Stop Munching" to promote its taste as the USP.
o In 2004, the brand roped in the Bollywood actress Rani Mukharjee as the brand
ambassador
o ‘Mera Crunch Mahaan’ campaign
o Nestlé Munch's new campaign MUNCHIfication with actor Sushant Singh Rajput

13. • ALPINO- The core idea is ‘To love is to share’. what makes Alpino different are the
love messages written inside the Alpino wrapper
• MILKYBAR-
o "Milky bar Gives Me Power” was the brand's positioning platform.
o Currently the brand is running a campaign with a new tagline " Dum Hai To Bahar
Nikal " ( if you have guts, get out and play ) . The brand asks the youngsters to just
get out and play.
• BARONE –
oThe old Bar One jingle- § Nestle Bar One Ba Ba Bar One
oLater the brand had the tagline "Get More Out of Life”
oThe brand now has the tagline "Kaafi Hai "

14. Strength
 Good product distribution and availability
 Affordable price
 Market leader for wafers chocolates (kit
Kat)
 Kit Kat and munch within the list of India’s
best-selling chocolates
 Strong R&D teams
Weakness
 Very sweet, not good for diabetic(milky
bar)
 Lack of innovative and designer chocolates
for festive season
 Bar one overshadowed by 5 Star
Opportunities
 Untapped rural markets
 Increasing consumption of chocolates in
India
 Preference of people for premium
chocolates
Threats
 high competition from Cadbury
 increasing health concerns
 price of raw materials is increasing due to
growth of economy which may affect its
competitive pricing
SWOTANALYSIS

15. SEGMENTATION,
TARGETING
AND
POSITIONING

16. Segmentation Targeting Positioning
• Geographic
Segmentation: both
urban and rural areas
• Demographic
segmentation:
segmented for 5-
40 age groups
• Psychographic
segmentation: it is a
premium brand.
•
•
The young crowd
especially corporate
people & different flavors
of Kit Kat target for
different age groups and
relations (Kit Kat duo-
young couple, Kit Kat
coffee- coffee lovers, Kit
Kat dark chocolate )
Target young customers
with in age group of 15-30
years.
• Its positioned itself as
anytime snack “have a
break have a kit Kat”
• A good refreshing
chocolate snack.
• Positioned themselves as
“crispy light irresistible
snack”.
• Repositioned as
alternative to traditional
gifts and sweets.
KIT-KAT

17. MUNCH
Segmentation Targeting Positioning
• Geographic
Segmentation: both
urban and rural areas
• Demographic
segmentation:
segmented for 5-
40 age groups
• Psychographic
segmentation:
consumer’s desire for a
good value for money,
anyone can afford.
• Light – low dietary
value.
• Impulse segmentation.
• Target customers
below the age group of
40 years
• Nutties is targeted as a
snack which remove
immediate hunger.
• It is positioned as a tasty
brand as a price warrior.
At Rs.5 the brand
became a block buster
success cannibalizing kit
kat and forcing perk to
launch a low priced
variant.
• Uses tagline can’t stop
munching to promote its
taste as the USP.

18. Segmentation Targeting Positioning
• Geographic Segmentation:
both urban and rural
areas
• Demographic
segmentation: segmented
for 15-
30 age groups
• People looking to have a
chocolate which is high in
quality and moderately
priced.
• Confident young Indian,
Comprising young college
going boys and girls.
• Target age group below 30
years
• All age groups lower, middle
& upper class people.
• Positioned as an energy/
snack bar- something for
those in between times.
• High energy funky chocolate
which is essentially a small
snack
• Uses tagline “Kaafi Hai”,
dual aspect is enough to
satisfy your hunger and it
encourages youngsters to
be themselves, as that
would be enough to impress
opposite gender.
• It’s enough for one to
succeed.
BAR ONE

19. Segmentation Targeting Positioning
• Geographic
Segmentation: both
urban and rural areas
• Demographic
segmentation:
segmented for age
groups below 30 years
• Impulse segmentation.
It address higher age
group previously it
targeted audience were
kids of age 510 years.
But the current ad is
targeting pre-teens 8-12
years.
• Positioned as chocolate
bar for energy and
strength, and goodness
of milk factor.
• Nestle re-launched the
brand on the platform of
healthy chocolate
• It is available at
affordable price variant at
Rs.5 with a tag line “Dum
Hai to bahar nikal”. The
brand asks kids to just get
out and play.
MILKY BAR

20. ALPINO
Segmentation Targeting Positioning
• Psychographic segmentation: it is a
premium brand.
• Geographic
Segmentation: available across 100
towns in India.
• New segment: “affordable premium”
thereby maintaining its core identity
of being affordable.
Targeted to everybody in a relationship
whether they are 16 or 80. Everyone
who wishes to communicate his/her
feelings/emotions i.e. Nonverbal to
other person but is hesitant to do.
•
•
Positioned as a chocolate that should
be shared. Alpino is different because
of love messages written inside the
wrapper which makes brand a cute
affordable gift of love.
Indian customers are opting for
premium chocolate rather than
traditional mithai favors product like
Alpino.
It is available at Rs.25 a pack
perception of being an expensive
product and thus prevented many
from buying it frequently.
Its tagline is “To Love is to Share”. It is
best shared and offers a delightful
experience that brings one back in
the mood of love.
ALPINO

21. SURVEY RESULTS…

27. FINDINGS
• Cadbury is more preferred over nestle – Retailers told us that they experienced
more sale of the Cadbury chocolates compared to Nestle in the areas of
Bhubaneswar
• Bar one was the least opted chocolate among the Nestle chocolates and the sales
of Bar one is slower and turnover to the retailers is low if chosen Bar one
• Alpino was not found in most retail stores and Nestle lost its market share of
Alpino as it was not able to compete with Ferrero Rocher
• Munch is the most preferred chocolate of nestle and has created a huge
differentiation compared to perk of Cadbury , Availability of much is more than
Kit Kat in all stores the availability shows the Strength of the product and its
customer loyalty.

28. RECOMMENDATIONS
• Innovation: (terms of taste, packaging, promotion) According to the Euro monitor report India is
forecast to deliver CAGR of 8% over 2016-2021, to reach INR162 billion. Increasing availability in
rural India and an expanded offer will contribute to chocolate confectionery growth during the
forecast period. Hence this is a good time for the renovation its products which are at the low
end of sales e.g. Nestle classic, Barone & Alpino.
• Repositioning strategy should be applied to get a wider target market to improve the sales. As
chocolates and fast food have become substitutes for Indian authentic mitais and also
substitutes for offerings in temples.
• Improve the packaging of few chocolates such as Nestle classic and Alpino. Advertisements
should be made aggressive especially for products whose sales are declining.
• Lessen the sugar content to target the health conscious consumers as they sought to improve
their lifestyle, health and overall wellness, Food such as olive oils, dairy products and sugar
substitutes were among the fastest growing categories.

29. THANK YOU