Sales by Product Group in

2008

•Milk Products
•Nutrit ion
•Ice Cream

25.8%
•Chocolate
•Confectionery
•Biscuits- 11.6%

Cooking Aids
Prepared
Dishes-17.9%

PetCare 11.6%
Beverages 26.3%
Pharmaceuticals 6.8%

Price
ethnocentric pricing policy
(per unit price of an item to be the same, no matter where in
the world the buyer is situated)
geocentric pricing policy approach in the
pharmaceutical product
NESTLÉ CONFECTIONARY — INTERNSHIP REPORT
NESTLE BRANDS

Quality is an essential ingredient in all the Nestlé brands and also Nestlé brands maintain
nutritional balance in a fast pace world, that is why people around the globe choose. The detail of
the Nestlé brand is as follows:

Baby foods (Nestlé Cerelac, NAN)

Breakfast cereals (Nestlé Cereals)

Ice-creams (Movenpick, Dreyer’s)

Chocolate confectionary (Kit Kat, Smarties, Toffo)

Beverages (Nescafe, Milo, Nestlé juices)

Food service (Nestlé Jumbo Bottle)

Prepared foods (Maggi, Powered Soups)

Bottled water ( Nestlé Pure Life, Nestlé Aquarral)

Pet care (Pro Plan, Purine, ONE, Fancy feast, Dog Chow, Cat Chow, Felix, Alpo)

Pharmaceuticals (Ophthalmic drugs, lens-care solutions & optical surgical Instruments)

Price
Pricing Strategy
A Nestlé launch Easy Whip, it charge one price from all of its customers
in the consumer market. Nestlé charge a single price of Rs. 25 by
adopting the single pricing strategy.
Nestlé did relatively low pricing as compare to foreign brands available in
the local market. Nestlé focused on A-class and did low pricing, because
Nestlé want to attract the existing customers of imported brand and
potential customers with the help of their low pricing.

Pricing Objective
The objective of this pricing was to increase the sales and maintain the
market share. So Nestlé set low price to increase its sales, as the sales
increase the market share should be improve
Promotion M ix
Overall, there has been a lot of emphasis on packaging, not only to safeguard
products, but also to create a distinct brand entity.

Nestle India bagged the Best Package Design Award and Portfolio Registering Highest Sales
Growth Award at the second Annual Indian Dairy Awards presented at the National Milk
Seminar 2003 held at Goa on 17 and 18 January.

Hosted by Tetra Pak India, the fourth National Milk Seminar on Strategic Marketing, organized
by the Ministry of Food Processing and Ministry of Agriculture was focused around Time to Act
- Here & Now. Presentations and panel discussions were held to spotlight on business
opportunities, perspectives of international and national speakers from within the dairy industry
and outside highlighted the areas of successful government-industry cooperation, business
strategy, innovating for category conversion and upgradation, premium branding, new channel
development, and value branding.

Using the health platform as a proposition for a milk brand is not an alien concept.
But Ogilvy & Mather Delhi has used the same USP differently in its new ad
campaign for Nestlé’s Fruit n Milk. The agency recently released two television

commercials for the new brand. Mothers catching and correcting their children when they are up
to mischief is quite common. Of course kids being kids love having fun even if it borders on
what their mothers have forbidden them to do. Moms know this and have a habit of keeping tabs
on their little ones.

Using this mother-child peculiarity as a key, the agency worked on the 'Tasty bhi
healthy bhi' proposition to gain acceptance among both kids and mothers.

Says O&M associate creative director Sudip Bandyopadhyay, “There are these do’s sand don’ts
for kids. Mothers have their eyes on kids. We have taken situations, where kids normally get
caught. But when mothers find children sheepishly having Nestle Fruit n Milk, they don’t find it
to be a problem. Instead, they have an expression of acceptance for this.”

The first commercial has two mothers looking for their

they are concealing: a pack of Nestlé’s new ready to drink milk brand

Price Mix
The high costs of raw materials and processing are a cause for concern. However, The Company
feels that raw material cost inflation could soon be brought under control.

The management is implementing programs to control key raw materials costs. The company
recorded very low sales growth of 3.7 per cent last quarter as sales were by a non-recurring
factor of insufficient availability of milk solids, which restricted production. Due to high prices
of solid milk, the use of the milk was allocated to the most profitable business in its product.
Also sales to canteen store departments (army sales) and ghee sales were stopped during the
period, impacting sales growth. This shortage has now been resolved and is unlikely to recur in
2H, the company said.

For the export market, there has been a decline in sales value as there is a movement from retail
packs to bulk packs. Overall, in milks, curd and powders, the products are priced higher. But the
top brass of the company justify high prices

on account of “superior quality”.

In milk segment, nestle is relatively dearer than brands like Amul and Mother Diary but Mr.
Dogra explains that the cooperatives generally operate on a no- profit margins so they can afford
to lower the prices.

He feels that high prices are more than compensated by greater value
additions. He cites the example of Lactogen, which although expensive, is still a
hit with rural market because of greater benefits attached.

“Somehow, consumers have to make a trade-off between prices and quality.” Overall newcomers
like Fruit Dahi and Slim Milk are fairly charged, consumers feel. Thus, Nestlé’s pricing strategy
is little influenced by competitive moves but more by promising customers more value additions