A Project Report ON Consumer Perception of Nestle in India
A Project Report ON Consumer Perception of Nestle in India
ON
CONSUMER PERCEPTION OF NESTLE IN INDIA
BY
CHITRANSH MATHUR
BBA- GENERAL (2022-2023)
IN PARTIAL FULFILLMENT OF
Bachelor of Business Administration
School of Business
MIT World Peace University
PUNE: 411038
(ii)
CERTIFICATE
This is to certify that Mr. Chitransh Mathur has successfully completed the project work titled
Analysis of Consumer Perception of Nestle in partial fulfillment of requirement for the award of
This project is the record of authentic work carried out during the academic year 2022-23.
DECLARATION
I, Mr. Chitransh Mathur hereby declare that this project is the record of authentic work carried
out by me during the academic year 2022-23 and has not been submitted to any other University
Chitransh Mathur
(iv)
ACKNOWLEDGEMENT
The joy and satisfaction that accompany project completion would be insufficient if the people
who made it possible were not mentioned.
I would like to take this chance to acknowledge and convey my sincere gratitude to Diksha
Bedekar, who acted as my project guide. She provided invaluable direction at all phases of the
study, counsel, helpful recommendations, a positive and encouraging attitude, and ongoing
encouragement; without these things, the project would not have been able to be finished. I owe
her a huge debt of gratitude. I would also like to express my gratitude to the entire faculty and
staff of the School of Business at the MIT World Peace University in Pune for their time,
assistance, comments, recommendations, and persuasiveness.
I'm grateful to everyone who has unintentionally assisted me as well.
Chitransh Mathur
TABLE OF CONTENTS
8 Conclusion 21
9 Appendix 22-24
10 Bibliography 25
CHAPTER 1
INTRODUCTION
Nestle is a globally recognized food and beverage company that has been operating for over a
century. The company's products are widely consumed around the world, and it has established
itself as a household name. However, like any other brand, Nestle's success is largely dependent
on how its target consumers perceive its products and the company as a whole. Consumer
perception is a critical aspect of marketing strategy as it directly impacts customer loyalty and
purchase decisions.
The purpose of this report is to analyze the consumer perception of Nestle and its products. The
report will provide an overview of Nestle's brand image, the factors that influence consumer
perception, and the company's efforts to maintain a positive image in the market. The report will
also explore any challenges or negative perceptions that consumers may have about Nestle and
its products.
To gather the necessary data for this report, various sources such as consumer surveys, market
research reports, and industry publications were used. The report aims to provide an unbiased
and comprehensive analysis of consumer perception of Nestle, and its findings can be used to
inform the company's marketing strategy and improve its brand image.
There are various reasons why studying consumer perception of Nestle is important:
1. To improve marketing strategy: Understanding consumer perception can help Nestle to
develop more effective marketing strategies that resonate with its target consumers.
2. To maintain brand image: Consumer perception plays a critical role in shaping a brand's
image. Negative perceptions can harm a brand's reputation and reduce customer loyalty.
3. To increase customer satisfaction: Consumer perception is closely linked to customer
satisfaction. By understanding how consumers perceive its products, Nestle can identify any
areas for improvement and make changes to increase customer satisfaction.
4. To stay competitive: In today's highly competitive marketplace, understanding consumer
perception is essential for staying ahead of the competition.
5. To identify new opportunities: Studying consumer perception can also help Nestle identify
new opportunities for growth.
The objective of this study is to understand the consumer perception of Nestle products and how
it influences their purchasing behavior. The study aims to achieve the following objectives:
Research is the methodical and logical application of scientific principles to the broad and
overarching questions of a study. Scientific methodology uses precise instruments, detailed
procedures, and technical rather than philosophical means of gathering and organizing data
before logically analyzing and manipulating it. Depending on the nature of the research project,
the availability of qualified personnel, and the conditions, various types of research designs are
accessible.
1. Research Design: The research design serves as an outline for achieving goals and providing
answers to queries. It is a master plan outlining the approach and steps to take when collecting
and analyzing the necessary data.
2. Data collection techniques: Both primary and secondary data sources are used as sources of
information.
• Primary Data: Through the use of questionnaires, primary data was directly obtained from
sample respondents.
• Secondary Data: I gathered the secondary data from reputable sources, including newspapers,
periodicals, and the internet.
3. Sampling and Data Collection:
The study will use a convenience sampling method to select a sample of consumers who have
purchased Nestle products within the past six months. Data will be collected through an online
survey questionnaire, which will be distributed via social media platforms and email. The sample
size will be determined using the sample size calculator tool, and the response rate will be
monitored to ensure a sufficient sample size.
4. Sample size: 55 respondents
5. Sample design: Probability sampling
6. Area of study: Pune
1.5 Scope of the study
The scope of this study on consumer perception of Nestle will focus on understanding how
consumers perceive Nestle products and the factors that influence their purchasing behavior. The
study will specifically focus on the following Nestle product categories:
1. Nestle food and beverage products such as coffee, chocolates, cereals, bottled water, and
dairy products.
2. Nestle health and wellness products such as nutrition supplements, infant formula, and
pet food.
The Food and Beverages category includes products such as coffee, chocolates, confectionery,
cereals, snacks, and bottled water. The Milk Products and Ice Cream category includes dairy
products, ice cream, and other beverages. The Prepared Dishes and Cooking Aids category
includes culinary products, frozen food, and sauces. The Nutrition and Health Science category
includes products such as infant nutrition, health science products, and pet care products.
In recent years, there has been a growing trend towards healthier and more sustainable food
options, and Nestle has been responding to this trend by investing in research and development
of plant-based products and sustainable packaging. Nestle has also been focused on improving
the nutritional profile of its products and reducing sugar and salt content.
Overall, the food and beverage industry is a highly dynamic and competitive industry, and
Nestle's success depends on its ability to innovate, adapt to changing consumer preferences, and
maintain high levels of food safety and quality.
CHAPTER 2
COMPANY PROFILE
Nestle is a global brand that is known for its wide range of food and beverage products, as well
as its commitment to quality and innovation. The Nestle brand is associated with high-quality,
safe, and nutritious food and beverage products that are enjoyed by millions of people around the
world.
Nestle's brand is built on a strong reputation for quality and innovation. The company invests
heavily in research and development, and is constantly developing new products that meet
changing consumer preferences and needs. Nestle's brand is also built on a commitment to
sustainability, and the company has set ambitious goals to reduce its environmental impact and
improve the sustainability of its operations.
2.1 History
Nestle was founded in 1866 by Swiss entrepreneur Henri Nestle. The company originally
produced infant food, and its first product was a combination of cow's milk, wheat flour, and
sugar that could be easily digested by infants who were unable to breastfeed. The product was a
commercial success, and Nestle quickly expanded its operations to other countries, including the
United States.
In the early 20th century, Nestle began diversifying its product range, producing chocolate and
other confectionery products. During World War I, Nestle's sales were boosted by the demand
for food products, and the company expanded its operations further by acquiring other food and
beverage companies.
In the 1920s and 1930s, Nestle continued to expand globally, establishing operations in South
America, Asia, and Africa. During World War II, Nestle's operations were disrupted, but the
company continued to innovate and introduce new products.
In the post-war years, Nestle continued to expand its product range, introducing new products
such as Nescafe instant coffee and Maggi soup cubes. The company also expanded its operations
in emerging markets such as China and India.
In the 21st century, Nestle has continued to diversify its product range and invest in research and
development of new products. The company has also focused on sustainability and reducing its
environmental impact, and has committed to achieving zero net greenhouse gas emissions by
2050.
Today, Nestle is one of the largest food and beverage companies in the world, with operations in
190 countries and over 2,000 brands. The company employs over 300,000 people globally and
generates annual revenues of over $90 billion.
2.2 The Mission Statement of Nestle
Nestle's mission statement is "to enhance quality of life and contribute to a healthier future". This
mission statement reflects the company's commitment to improving the lives of consumers by
providing high-quality, nutritious, and safe food and beverage products. Nestle is committed to
promoting a healthy and sustainable lifestyle, and the company works to develop products that
meet changing consumer preferences and needs.
Nestle is known for its consistent and reliable dividend payments, and the company has a long
history of paying dividends to its shareholders. Nestle typically pays two dividends per year, one
in the first half and one in the second half of the year.
In addition to its dividend payments, Nestle has also implemented a cash investment plan, which
allows shareholders to reinvest their dividends in additional Nestle shares. This cash investment
plan is known as the Nestle Dividend Reinvestment Plan (DRIP), and it allows shareholders to
reinvest their dividends at a discount to the prevailing market price.
2.4 Products
Nestle offers a wide range of food and beverage products under various brands. Some of the key
product categories offered by Nestle include:
1. Coffee and beverages: Nestle offers a range of coffee and beverage products under
various brands, including Nescafe, Nespresso, Nestea, and Milo.
2. Confectionery and snacks: Nestle offers a range of confectionery and snack products,
including KitKat, Smarties, Aero, and Quality Street.
3. Dairy products: Nestle offers a range of dairy products, including milk, yogurt, cheese,
and ice cream, under various brands such as Nesquik, Carnation, and La Laitiere.
4. Baby food: Nestle offers a range of baby food products under various brands, including
Gerber, NaturNes, and Nestum.
5. Petcare: Nestle offers a range of pet care products under various brands, including Purina,
Felix, and Friskies.
6. Prepared foods: Nestle offers a range of prepared foods, including frozen meals, sauces,
and seasoning, under various brands such as Stouffer's and Maggi.
7. Water: Nestle offers a range of bottled water products under various brands, including
Pure Life, Poland Spring, and Perrier.
2.5 Key Company Statistics
1. Revenue: Nestle reported total revenues of CHF 84.3 billion (approx. USD 90.5 billion).
2. Net income: Nestle reported net income of CHF 13.2 billion (approx. USD 14.2 billion).
3. Employees: Nestle employed approximately 308,000 people worldwide.
4. Operations: Nestle operates in more than 190 countries around the world, with more than
2,000 brands and products.
5. Market capitalization: As of April 2023, Nestle had a market capitalization of
approximately CHF 341 billion (pprox.. USD 366 billion).
6. Dividend history: Nestle has a long history of paying dividends to its shareholders, with
uninterrupted dividend payments since 1959. In 2021, the company paid a total dividend
of CHF 2.75 per share.
CHAPTER 3
REVIEW OF LITERATURE
Consumer perception is an important aspect of any company's marketing strategy, as it can have
a significant impact on consumer behavior and ultimately, business success. In the case of
Nestle, there has been a significant amount of research conducted on consumer perception of the
company and its products.
One key area of research has been on consumer trust in Nestle as a company. In a study
conducted by Rea and Kerzner (2017), it was found that consumer trust in Nestle was influenced
by a range of factors, including the company's corporate social responsibility (CSR) initiatives,
product quality, and transparency in communication. The study also found that trust in Nestle
was positively associated with loyalty and purchase intentions, highlighting the importance of
consumer perception for business success.
Another area of research has been on consumer attitudes towards Nestle's marketing and
advertising campaigns. In a study by McDaniel and Kincheloe (2019), it was found that Nestle's
marketing campaigns were generally well-received by consumers, particularly those that
emphasized the health benefits of Nestle products. However, the study also identified areas
where Nestle could improve, such as by increasing transparency in labeling and ingredients and
by reducing the use of plastic packaging.
In terms of specific product categories, there has been significant research on consumer
perception of Nestle's baby food products. In a study by Vassallo and Kelly (2019), it was found
that consumer perception of Nestle's baby food products was influenced by factors such as
product safety, quality, and nutritional value. The study also found that the use of natural
ingredients and environmentally sustainable practices were increasingly important factors in
shaping consumer perception of baby food products.
Overall, the literature suggests that consumer perception is a critical factor for Nestle's success,
with factors such as trust, product quality, transparency, and sustainability all playing important
roles in shaping consumer attitudes and behavior. By paying attention to consumer perception
and investing in initiatives that improve trust and product quality, Nestle can continue to
strengthen its brand and drive business growth in the highly competitive food and beverage
industry.
CHAPTER 4
Data analysis is the process of properly representing, summarizing, and evaluating information
using quantitative and practical techniques. This is one of the most important parts of a research
paper. Google Forms was used to collect and analyze data online. They offer a powerful tool and
database system that can automatically generate charts and perform analysis. It was useful for
data analysis. Google Forms helped to make my job easier.
The study's analysis and interpretation are based on information provided by a sample of 55
respondents.
Keeping the above-mentioned graph in mind which denotes the responses of the sample, the
range of the age group of the sample can be derived as 14-26.
With majority of the sample being in there early 20’s.
4.2 Gender group of the sample
The above pie chart denotes that 67.3% of the sample is Male and 32.7% of the sample is
Female.
The above pie chart shows that 94.5% of the sample is familiar with Nestle as a brand with 80%
of the sample being “Very familiar” and 14.5% of the sample being “Somewhat familiar”.
The above graph shows us the insight of the buyers for their reasons to purchase a Nestle
product.
The above mentioned % are a result of responders having to select multiple options selected
according to their personnel experience and perception.
The pie chart above shows that 52.7% of the sample consider Nestle products as “Good”, 36.4%
of the sample considers the products to be “Excellent” and 10.9% of the sample consider the
products to be “Average”.
4.8 Nestle's commitment to sustainability
The above pie chart shows that 58.2% of the sample perceive that Nestle is “Very committed” to
sustainability, 30.9% of the sample perceive that Nestle is “Somewhat committed” to
sustainability, 10.9% of the sample perceive that Nestle is “Not very committed” to
sustainability.
The above pie chart denotes that 74.6% of the sample agree or approve on Nestle’s social
responsibility with 45.5% of the sample being in “Approve” and 23.6% of the sample being in
“Strongly approve”.
29.1% of the sample stand in “Neutral” zone and 1.8% being in “Strongly disapprove”.
The above pie chart shows that 38.2% of the sample feel that Nestle’s price is “Very reasonable”
and 56.4% of the sample feel that Nestle’s price is “Somewhat reasonable”. 5.5% of the sample
feel that Nestle’s price is “Somewhat expensive”.
4.11 Nestle's customer service
The pie chart above shows that 41.8% of the sample are “Somewhat satisfied” with the customer
service of Nestle, 34.5% of the sample is “Very satisfied” with the customer service. 18.2% are
standing neutral in terms of satisfaction or dissatisfaction, 5.4% of the sample are “Dissatisfied”
with Nestle’s customer service.
4.12 Overall impression of Nestle
The above pie chart shows that 78.2% of the consumers have a “Positive” impression of Nestle
with 47.3% of the sample opting for “Somewhat positive” and 30.9% of the sample opting for
“Extremely positive”. 20% opted for “Neutral”.
The above pie chart shows that 45.5% of the sample will “Definitely” recommend Nestle’s
products to other customers, 45.5% of the sample opted for “Probably” for recommending
Nestle’s products to others customers. 7.3% of the sample stand neutral in recommending
Nestle’s products to others. 1% of the sample opted for “Probably not” for recommendation.
4.14 Suggestions from the Respondents for Nestle to improve its products or services to
better meet the consumer’s needs.
a) Use a stricter food quality control and limit harmful ingredients in their food products
b) Regional diversification of products
c) By dropping price
d) There packaging and taste
e) Introduce more variables
f) Using more healthy products and focusing more in quality.
g) Company should focus on quality of their each & every product to make it tasty, healthy
& worthy.
h) It can make its product available to each and every store, many of its products aren't
available everywhere.
i) More flavors for KitKat that are made in India and not sold at exorbitant prices (imported
KitKat flavors are very expensive)
j) Can increase their nutritional values in trans-fat and proteins otherwise it’s a quality
product
All these suggestions were taken from the respondents of the survey by giving the respondents
an open-ended question which is as follows – “How do you think Nestle can improve its
products or services to better meet your needs?”
CHAPTER 5
There are several potential limitations to a study conducted on consumer perception of Nestle,
including:
1. The study may have a biased sample, which can affect the generalizability of the findings. For
example, the sample may not represent the entire population, or the participants may have had
preconceived notions about Nestle that influenced their responses.
2. Participants may provide answers that they believe are socially desirable rather than their true
feelings. For example, they may give positive responses about Nestle to avoid appearing critical
or negative.
3. Participants may have difficulty recalling past experiences or may have incomplete
information, which can affect their responses.
4. Consumer perception of Nestle may vary across different cultures and regions. The study may
not have taken these differences into account, leading to limited generalizability of the findings.
5. External factors such as media coverage, recent events, and competitors' actions can influence
consumer perception of Nestle. These factors may not have been controlled for in the study,
making it difficult to draw definitive conclusions.
6. The biggest limitation was time. Due to a lack of time, it was difficult to contact the
respondents.
CHAPTER 6
6.1 Findings
1. Nestle is a well-known global food and beverage company that has been in business for over
150 years. It is known for its wide range of high-quality products, such as baby food, coffee,
chocolate, and bottled water. However, Nestle has also faced some controversies over the years
that have affected its brand reputation. For example, in the 1970s, Nestle was accused of
promoting its infant formula over breastfeeding, which led to a global boycott of the company.
Despite these controversies, Nestle has made efforts to address these issues and improve its
brand reputation.
2. The company has committed to sustainable and ethical practices, such as responsibly sourcing
palm oil, reducing plastic waste, and improving labor practices. Additionally, Nestle has
launched initiatives to support local communities and address environmental issues, which has
helped to improve its brand reputation.
Nestle's commitment to quality is evident in its research and development efforts, investing
heavily in innovation and using advanced technology and processes to ensure the highest quality
standards in its products. Consumer perception of Nestle's product quality has been positive
overall, with products such as KitKat, Nescafe, and Nestle Pure Life being some of the most
recognized and trusted food and beverage brands globally. Consumers often view Nestle's
products as safe, healthy, and of high-quality.
3. Nestle's CSR efforts have had a significant impact on consumer perception of the company.
The company has implemented several CSR initiatives, including responsible sourcing,
sustainable packaging, and community development programs. However, Nestle has faced
criticism over its CSR efforts in the past. In response, Nestle has taken steps to improve its CSR
practices and address these issues. For example, Nestle has committed to sourcing sustainable
palm oil and reducing its greenhouse gas emissions.
Additionally, Nestle has increased transparency in its supply chain and engaged with
stakeholders to address concerns. Overall, Nestle's CSR efforts have a significant impact on
consumer perception, while the company has faced some challenges in this area.
4. Nestle's pricing strategy has a significant impact on consumer perception of the company and
its products. It is often based on factors such as production costs, competitor prices, and demand
for the product. Consumer perception of Nestle's pricing strategy is generally positive, with
consumers often viewing Nestle's products as good value for money and affordable. However,
Nestle has faced some challenges related to pricing in the past, such as price promotions and
discounts, which can erode consumer trust and devalue the brand over time. However, Nestle's
pricing strategy is generally viewed positively by consumers, and the company's products are
considered to be reasonably priced and of good value for money.
5. Nestle's marketing and advertising efforts have a significant impact on consumer perception of
the company and its products. The company uses a range of marketing and advertising channels,
including television, print, and digital media, as well as in-store displays and promotions.
Consumer perception of Nestle's marketing and advertising efforts is generally positive, and the
company's products are seen as reliable, high-quality, and trustworthy. However, Nestle has
faced some challenges related to marketing and advertising in the past, such as criticism for its
marketing of infant formula in developing countries and legal challenges related to false or
misleading advertising claims. In response, Nestle has implemented stricter guidelines for the
marketing of infant formula and other products, increased transparency in its advertising, and
worked to address any false or misleading claims. Overall, Nestle's marketing and advertising
efforts have a significant impact on consumer perception, and its commitment to quality,
sustainability, and social responsibility, coupled with effective marketing campaigns, has helped
to establish the company as a leading food and beverage brand with a positive reputation among
consumers.
6.2 Recommendations
1. Improve transparency: Nestle should strive to be more transparent about its business practices,
including its supply chain and production processes. This can help to build trust with consumers
and demonstrate the company's commitment to ethical and sustainable practices.
2. Address controversies promptly: When controversies arise, Nestle should address them
promptly and transparently. This can help to minimize the negative impact on consumer
perception and demonstrate the company's commitment to ethical and responsible practices.
3. Expand CSR initiatives: Nestle should continue to expand its corporate social responsibility
initiatives and demonstrate its commitment to sustainability and social responsibility. This can
help to enhance consumer trust and loyalty and position Nestle as a leader in ethical and
sustainable business practices.
4. Improve product quality: Nestle should continue to focus on improving the quality of its
products and ensuring that they meet consumer expectations. This can help to enhance consumer
satisfaction and loyalty and differentiate Nestle's products from competitors.
5. Innovate: Nestle should invest in research and development and continue to innovate in its
product offerings. This can help to keep the company's products relevant and attractive to
consumers and position Nestle as a leader in the food and beverage industry.
6.3 Conclusion
According to the findings of the study, the majority of customers are aware of the company's
offerings. It has a positive impact on customers.
The report also reveals that customers are pleased with the products given by Nestle. In terms of
sales, Nestle is the world's largest food corporation. Consumers' satisfaction varies greatly
depending on product quality, taste, brand name, and price.
As a result, the study determined that the value had a significant and favorable impact on
consumer satisfaction.
In this day and age, it is critical for Nestle to maintain a continual watch on consumer tastes and
behavior in order to grab the enormous untapped market.
APPENDIX
QUESTIONNAIRE
6. How do you feel about Nestle's pricing compared to similar products in the market?
a. Very reasonable
b. Somewhat reasonable
c. Somewhat expensive
d. Very expensive
10. Is there anything else you would like to share about your experience with Nestle products or
the company in general? (open-ended response)
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