A STUDY ON CUSTOMER SATISFACTION TOWARDS NESTLE PRODUCTS
INTRODUCTION
Nestlé is one of the world’s largest nutrition Company in India. It is catering milk
products, beverages, bev erages, food items, bottled bottle d water, juices, ju ices, and breakfast and confectionary con fectionary items. it ems. Keeping the market taste in view Nestle has recently launched a new products. Popular Nestle brands entered ent ered this part of o f the sub continent contin ent during Indian rule and the trend continued conti nued during pre-independence days of India. After independence Nestle World Trade Corporation, the trading wing of Nestle, sent regular dispatches of Nestle brands to India. By that time some of the brands such as Nespray, Cerelac, Lactogen, Blue Cross etc. became household names. Nestle products is the finest and 100% pure products among all other brands and it’s a flagship brand among other Nestle products. The price of Nestle products is competitive and they are using all sorts of advertisement material and concepts to target their market. Their major competitors are Shezan All pure, Haleeb Good Day and other imported brands. The market share of Nestle products is 60%. The research problem that we were told by the Company was to know the reason of decline in sales of Nestle products in India. Nestle products being bein g the flagship brand bran d showed declining sales s ales this year which was the t he main area of concern for the Company. The sales growth declined from 20% to -1% within this year. The information needed to solve the research problem included information regarding marketing mix, competitors, customer taste preferences and lifestyles etc. 1.1 CUSTOMER SATISFACTION
Customer satisfaction of nestle products is an emerging phenomenon that is considered a vital issue for which the business firms are very sensitive. The main objective behind its improvement is to see the consumer purchasing behaviour which is very important in
company’s performance and maintain sustainable growth in a highly competitive
environment. The concept of customer satisfaction is very crucial due to its importance in business performance and benefits for an organization. This study aims at:
To examine the various factors influencing nestle products?
To study the impact of customer satisfaction on nestle products.
To investigate the role of brand performance in customer satisfaction .
To investigate the role of brand efficiency to improves customer satisfaction .
Empirically investigates the role of customer satisfaction for enhancing of nestle products.
Customer satisfaction can be defined with the use of two basic concepts: transaction based satisfaction and cumulative satisfaction. Transaction based satisfaction is based on the evaluation of a specific purchase once the selection has been made and the product has been purchased. On the other hand, cumulative satisfaction is based on the overall experience after the purchase and use of the product/service over a certain period of time. With respect to the definitions above, the former is more suitable for the authors of this article, since their research is focussed on customer satisfaction with nestle product. Furthermore, satisfaction can be defined and measured as consumer ratings of specific attributes and can be defined as a comparison of previously held expectations with perceived product or service performance. With respect to the focus of nestle product quality, we have defined customer satisfaction as a subjective reflection of this quality. In researching satisfaction, firm generally ask customers whether their product or service has met or exceeded expectations. when customers have high expectations and the reality falls short, they will be disappointed and they may discard or stop using the nestle product. Thus
every marketer should give importance to customer satisfaction. In other words consumer satisfaction is one of the major goals of marketing. 1.2 STATEMENT OF PROBLEM
The study is conducted to find out the level of consumer satisfaction of nestle products with reference to nestle product. The study helps to make sound decision both in preventing and solving customer problem. customer satisfaction survey is a procedure by which consumer report their feelings and interest towards the product they use or prefer. Individual responses are combined and analyzed that how the quality and price of nestle baby food products can influence the satisfaction level of consumer. 1.3 SCOPE OF THE STUDY
As learning is a human activity and is as natural, as breathing. Despite of the fact that learning is all pervasive in our lives, psychologists do not agree on how learning takes place. How individuals learn is a matter of interest to marketers. They want to teach consumers in their roles as their roles as consumers. They want consumers to learn about their products, product attributes, potential consumers benefit, how to use, maintain or even dispose of the product and new ways of behaving that will satisfy not only the consumer’s needs, but the marketer’s objectives. The scope of my study restricts itself to the analysis of consumer
preferences, perception and consumption of Nestle Chocolates. There are many other brands of chocolates available but my study is limited to two major players of chocolates leaving behind the others. The scope of my study is also restricts itself to Coimbatore region only. 1.5 RESEARCH METHODOLOGY
This chapter describes the methodology of the study. This project is based on information collected from primary sources. After the detailed study, an attempt has been made to present comprehensive analysis of consumption of nestle products consumed by the people. The data
had been used to cover various aspects like consumption, consumer’s preference and customer’s satisfaction regarding Nestle chocolates products. In collecting requisite data and
information regarding the topic selected, I went to the residents of Ludhiana and collected the data. DATA COLLECTION:
The data, which is collected for the purpose of study, is divided into 2 bases: Primary Source:
The primary data comprises information survey of study of consumer satisfaction towards Nestle products”. The data has been collected directly from respondent with the help of structured questionnaires. Secondary Source:
The secondary data was collected from internet, References from Library. Survey design:
The study is a cross sectional study because the data were collected at a single point of time. For the purpose of present study a related sample of population was selected on the basis of convenience. Sample Size and Design:
A sample of 100 people was taken on the basis of convenience. The actual consumers were contacted on the basis of random sampling. TOOLS USED : Percentage analysis
A percentage is a part of a whole. It can take on values between 0 (none of the whole) and 100 (all of the whole). The whole is called the base. The base must ALWAYS be reported whenever a percentage is determined. FORMULA: % = f/N*100
%= Percentage f=frequency N=number of cases
1.6 LIMITATIONS OF THE STUDY
In attempt to make this project authentic and reliable, every possible aspect of the topic was kept in mind. Nevertheless, despite of fact constraints were at play during the formulation of this project. The main limitations are as follows:
Due to limitation of time only few people were selected for the study. So the sample of consumers was not enough to generalize the findings of the study. The main source of data for the study was primary data with the help of selfadministered questionnaires. Hence, the chances of unbiased information are less. People were hesitant to disclose the true facts. The chance of biased response can’t be eliminated though all necessary steps were taken to avoid the same.
CHAPTER SCHEME
Chapter 1 deals with introduction customer satisfaction and design of the study
Chapter 2 deals with Review of literature
Chapter 3 deals with company profile.
Chapter 3 deals with Analysis and interpretation of data
Chapter4 deals with summary of findings,suggestion and conclusion.
1.4 OBJECTIVE OF THE STUDY
This project is based on the study consumer satisfaction Nestle products. Objectives of the study are:
The other objective is to know about the customer satisfaction level associated with the product and the customer preference level.
To increase customer satisfaction and recapture the market share by fulfilling the customer needs.
To study the factors affecting the consumption pattern
To analyze the effectiveness of promotion campaign of Nestle products on consumers.
To determine consumer awareness about the product
To determine quality of Nestle Products.
2.REVIEW OF LITERATURE Parasuraman, Zeithaml, Berry, 2008 A number of research studies have been
conducted recently to highlight the relationship of customer's satisfaction and quality of
service
Parasuraman, Zeithaml, Berry, 2008. Perceived service value is one of the
competitive advantage factor and fundamental predicator of customer satisfaction.
Bolton, Drew 2011 The use of latest technology in delivering the service quality is
imperative for the organization. The organizations should be conscious about the impact of service quality on profits and what level of service quality must be delivered to retain customers. Employees responsiveness, motivation, selling skills, attitude, training, clearer role and perception and knowledge of the after sales service are the elements which can be judged and have a tangible impact in the after sales service and plays very important role on the goodwill of the company and increase the credibility of the organization and enhance the trust and confidence of the customer. Bitner,2000; Merchant Account Glossary points out that "Customer satisfaction is an
ambiguous and abstract concept and the actual main station of the state of satisfaction will vary from person and product or service to product or service.
According to Norman and Ramirez (2004), companies can relieve customer’s work
load by tackling certain issues, but at best, companies canenable a better capability to complete certain tasks better. Product or services that enable to perform their tasks require a deeper understanding of the customer’s business.
(Koller, 2007). Marketing activities strive to produce customer satisfaction with the
four product, promotion, price and place Many companies perform the "place" function of physical distribution separately from marketing. However, it is likely that physical distribution through the provision of customer service contribution to success of a company and can enhance customer satisfaction.
Paul Rozin (2009) in his article states that Chocolate is the most craved food among
females, and is craved by almost half of the female sample (in both age groups). Although
this craving is related to a sweet craving, it cannot be accounted for as a craving for sweets. About half of the female cravers show a very well defined craving peak for chocolate in the premenstrual period, beginning from a few days before the onset of menses and extending into the first few days of menses. There is not a significant relation in chocolate craving or liking between parents and their children.
Sarah Hagget (2000) says that a controversial, government endorsed campaign to
tackle obesity by encouraging children to exchange chocolate bar wrappers for sports equipment. A company like Cadbury is capable of delivering 12 million messages into the market place and engaging young people in positive dialogue. Under the scheme, schoolchildren get “free” equipment when they collect tokens from Cadbury chocolate bars. It has
been calculated that children need to collect tokens from 5440 chocolate bars for a net and set of volleyball posts.
Lipp (2005) in his view states that his work reviews the literature on the
compositional data of vegetable fats used or proposed as alternatives to cocoa butter in chocolate and confectionery products. Cocoa butter is the only continuous phase in chocolate, thus responsible for the dispersion of all other constituents and for the physical behavior of chocolate. Unique to cocoa butter is its brittleness at room temperature and its quick and complete melting at body temperature. There were, and are, strong efforts to replace cocoa butter in part forchocolate production for technological and economic reasons.
Philip K. Wilson (2012) from his view says that in 1753, the noted nosologist, Carl
Linnaeus, named it The obroma cacao, food of the Gods. Two and a half centuries later, Joanne Harris emphasized this exotic’s erotic sensations in her award winning fiction debut,
Chocolat. For millennia, healers have touted its myriad medicinal, yet mystical, abilities. By the 1950s, chocolate, what had long been used as a drug, a food and as a source of currency,
was being marketed merely as a pleasure-filled snack. Over the next half century, the craving to carve out chocolate’s healthy, medicinal qualities resurged.
Jan Wollgast (2000) feels that Cocoa beans are rich in polyphenols in particular
catechins and proanthocyanidins. However, a sharp decrease in quantity occurs during fermentation and drying of cocoa beans and further retention has been reported during roasting. Characterisation and in particular quantification of polyphenols in chocolate has only been developed relatively recently. This work reviews further on the literature on the available methodology for analysis, quantification, isolation, purification, and structure elucidation of polyphenols in cocoa components and other commodities. The characterization and quantification of the polyphenol composition is amongst the first steps to be done to evaluate a putative contribution of chocolate to human health.
3. COMPANY PROFILE
Although Nestle has been associated with India since the beginning of the century through the importing and trading of infant food and condensed milk, manufacturing in India only began with the setting up of the factory in Moga in 1962. The first product to be
manufactured was Milkmaid. In the last 35 years the company has shown rapid progress and has increased its product range to 80 products as of October 1997. Nestle India Ltd. now ranks 22nd amongst India’s most valuable companies (Annexure B) . Its gross revenue has
increased from Rs 1001.1 crores to Rs. 1213.8 crores in 1996. This remarkable growth has been achieved through -
Rapidly creating greater manufacturing capacity, both at factories as well as with co packers.
Taking measures to ensure availability and improved quality of key raw materials - fresh milk in particular.
Strengthening of the sales and distribution network (particularly in smaller towns) Ambitious and cohesive manpower training and development programs for the personnel of the company across all disciplines. The company’s exports also resulted in a very successful year in this area as exports
grew by 27% to Rs. 250.8 crores in 2003. The main contributors to this increase were the export of tea and coffee to USA, Japan, Russia, Hungary and Taiwan. HISTORY
Nestle India Ltd. is a part of the Nestle SA group which is one of the largest manufacturing companies in the world. Henri Nestle founded the company in 1867. Nestle has two major divisions -Le Society des Products which looks after the production and marketing and Nestle Ltd. which provides the technical assistance to the group companies. Since its inception in 1867, the company has diversified it product range from the infant weaning formula (which was its first product) to beverages, confectionery, ice creams and pet foods among others. In a span of 130 years the company has ranked 26th among the world’s largest corporations and boasts of a turnover of $48932.5 million and employee strength of
221,144 people spread over 75 countries worldwide Nestle has long been viewed as one of the most multinational of the multinationals. This is because today only 2% of its turnover comes from Switzerland. Out of the remaining 98%,Europe contributes 43.5%, North and South America contribute 36.5% and Africa and the Asia Pacific Regions contribute 18%.
The Spirit of Nestle
“Organisational excellence is never achieved through a one time effort; It is always a
process of continuous improvement across a number of areas of operation.” A key factor for Nestle’s success has been its quest for continuous improvement
through ushering in greater productivity and more efficiency in everyday operations. Despite the infrastructure impediments in India, Nestle has set itself high standards of business performance. This is reflected through the essence of the company - its mission statement. Nestle’s mission
“To be in every way the leading company in the Indian food industry and a good
corporate citizen by providing our consumers with superior quality products, our shareholders with rapid growth & fair returns and our employees with a challenging and satisfying work environment.”
To translate this spirit into a planned and measurable process, Nestle has set up key objectives across all divisions.
Key Objectives Production
To optimise production costs while enhancing product quality so as to make Nestle products even more competitive in the market place.
Sales and marketing
To reach a sales turnover of 3000 crores by the year. To double the turnover every three years
People
To help employees to retain a long term perspective and integrate them fully with the company’s business goals
To retain a broad perspective while addressing individual needs To view growth as a continuous process To concentrate on attitudinal changes by developing leadership skills, an appreciation of interdependence between units and the enhancement of a sense of belonging to Nestle.
Finance
To maintain profit levels above the average for the food industry in India.
The Business Excellence and Common Application (BECA) initiative essentially translates the spirit of the Journey towards excellence into an organised, systematic and measurable approach. The aim is to aid the achievements of the company’ s key objectives of rapid
growth by ensuring that all operations incorporate the spirit of meaningful planning, effective cost control and efficient implementation. BECA is about “ planned improvement in everything we do ”
