Nestle Marketing Research Project

Marketing Research- Nestle Juices

TABLE OF CONTENTS TABLE OF CONTENTS..........................................................................................1 ORGANIZATIONAL HISTORY................................................................................5 PRODUCTS.........................................................................................................5 Milk, Dairy And Chilled Dairy...........................................................................................5 Beverages.......................................................................................................................5 Bottled Water..................................................................................................................5 Nestle Juices....................................................................................................................5 Baby Food.......................................................................................................................6 Prepared Meals................................................................................................................6 Break Fast Cereals...........................................................................................................6 Chocolates & Confectionary............................................................................................6 CURRENT SITUATION..........................................................................................6 PROBLEM STATEMENT........................................................................................6 SALES GROWTH..........................................................................................................................7 CUSTOMER ATTITUDES..................................................................................................................7 NESTLÉ’S CONCERN............................................................................................8 MARKETING MIX.................................................................................................8 PRODUCT.................................................................................................................................9 PRICE.....................................................................................................................................9 PLACE.....................................................................................................................................9 PROMOTION...............................................................................................................................9 TARGET MARKET................................................................................................9 COMPETITORS..................................................................................................10 COMPETITOR ANALYSIS................................................................................................................11 Shezan All Pure..............................................................................................................11 Minute Maid...................................................................................................................11 Haleeb Good Day...........................................................................................................11 11.0. INFORMATION NEEDS...............................................................................11 SYNOPSIS........................................................................................................11 RESEARCH QUESTION.......................................................................................12 6.0. HYPOTHESIS..............................................................................................13 7.0. RESEARCH OBJECTIVE................................................................................13 EXPLORATORY RESEARCH.................................................................................14 FOCUS GROUPS........................................................................................................................15 Details Of First Focus Group..........................................................................................16 Details Of Second Focus Group......................................................................................16 Details Of Third Focus Group.........................................................................................16 Questions to Be Asked During Focus Group Discussion.................................................16 IN-DEPTH INTERVIEWS.................................................................................................................17 Proposed Interviewee 1 ................................................................................................17 Proposed Interviewee 2.................................................................................................17 Proposed Interviewee 3 ................................................................................................18

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Marketing Research- Nestle Juices Questions To Be Asked From Management...................................................................18 Questions To Be Asked from Retailers and Wholesalers................................................18 LITERATURE SEARCH...................................................................................................................19 Haleeb Good Day...........................................................................................................19 Shezan All Pure..............................................................................................................20 FOCUS GROUPS DETAILS..................................................................................20 GOALS TO BE ACHIEVED THROUGH FOCUS GROUP..................................................................................20 PROCEDURE USED TO PLAN FOCUS GROUP ..........................................................................................20 REASON FOR CONDUCTING THREE FOCUS GROUPS...............................................................................20 FOCUS GROUP 1...............................................................................................21 KEY FINDINGS OF FOCUS GROUP 1................................................................................................22 FOCUS GROUP 2...............................................................................................23 KEY FINDINGS OF FOCUS GROUP 2................................................................................................24 FOCUS GROUP 3...............................................................................................25 KEY FINDINGS OF FOCUS GROUP 3................................................................................................27 SUMMARY OF FOCUS GROUP FINDINGS.............................................................................................28 LIMITATIONS OF FINDINGS............................................................................................................29 IN-DEPTH INTERVIEWS.....................................................................................29 INTERVIEW # 1........................................................................................................................29 Results of Interview Conducted At NESTLE....................................................................29 INTERVIEW # 2........................................................................................................................31 Findings Of Interview Conducted At AL FATAH..............................................................31 INTERVIEW # 3........................................................................................................................32 Findings Of Interview Conducted At HKB.......................................................................32 INTERVIEW # 4........................................................................................................................32 Findings Of Interview Conducted At Metro.....................................................................33 INTERVIEW # 5........................................................................................................................33 Findings Of Interview Conducted At Small Retailers......................................................33 SUMMARY...............................................................................................................................33 INTERVIEW # 6........................................................................................................................33 Findings of Interview Conducted At NESTLE..................................................................34 LITERATURE SEARCH........................................................................................34 Minute Maid...................................................................................................................35 Haleeb Good Day..........................................................................................................35 Shezan All Pure.............................................................................................................35 DATA COLLECTION............................................................................................36 SURVEY METHODOLOGY...................................................................................36 CONSUMER ANALYSIS.......................................................................................39 ANALYSIS OF RESPONSES TO GENERAL QUESTIONS ..............................................................................39 Gender..........................................................................................................................39 Age................................................................................................................................40 Residential Area............................................................................................................42 Income Bracket.............................................................................................................43 Degree of Liking Nestle Juice.........................................................................................44 What Flavor do you Like The Most.................................................................................45 Price..............................................................................................................................46 Packaging......................................................................................................................47

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Marketing Research- Nestle Juices Quality...........................................................................................................................48 Taste.............................................................................................................................49 Sugar Content...............................................................................................................50 Advertisment.................................................................................................................51 Appealing Advertisement..............................................................................................52 Frequency of Consuming Nestle Orange Juice...............................................................53 Purchase of Juices..........................................................................................................54 Frequescy Of Consuming on Daily Basis........................................................................55 Choice of Barand If Nestle Orange Juice Is Not Available...............................................56 Latest Add of Nestle Orange Juice.................................................................................57 CONCLUSION ...........................................................................................................................58 CROSS TABS...........................................................................................................................59 EFFECT OF INCOME ON CONSUMPTION OF JUICE ..........................................................59 Analysis....................................................................................................................................59 Results.....................................................................................................................................60

Effect Of Gender On Degree Of Liking Nestle Orange Juice...........................................60

Analysis....................................................................................................................................60 Results.....................................................................................................................................61

Effect Of Age On Consumption Of Nestle Orange Juice..................................................61

Analysis....................................................................................................................................61 Results.....................................................................................................................................63

Effect Of Taste On Consumption Of Nestle Orange Juice...............................................63

Analysis....................................................................................................................................64 Results.....................................................................................................................................65

Effect Of Price On Consumption Of Nestle Orange Juice................................................65

Analysis....................................................................................................................................66 Results.....................................................................................................................................66

Effect Of Advertisement On Consumption Of Nestle Orange Juice.................................66

Analysis....................................................................................................................................67 Results.....................................................................................................................................68

Effect Of Liking Nestle Juice On Liking Nestle Orange Juice...........................................68

Analysis....................................................................................................................................69 Results.....................................................................................................................................70

Effect Of Taste on Degree of Liking Shezan...................................................................70

Analysis....................................................................................................................................71 Results.....................................................................................................................................72

Satisfaction of Consumers with the Packaging of Nestle Orange Juice..........................72

Analysis....................................................................................................................................73 Results.....................................................................................................................................73

RETAILER ANALYSIS.........................................................................................74 ANALYSIS OF RESPONSES TO GENERAL QUESTIONS ..............................................................................74 Location Of Retailers.....................................................................................................74 Degree Of Satisfaction with Packaging Of Nestle Orange Juice......................................75 Major Competitors of Nestle Orange Juice.....................................................................76 Duration in Retail Business ...........................................................................................77 Regular Supply Of Nestle Orange Juice..........................................................................78 Affect of Price Change On Sales....................................................................................79 NESTLE CHILLERS..........................................................................................................80 Packaging of Nestle Juices which sells the most............................................................81 CONCLUSION.....................................................................................................................82 CROSS TABS...........................................................................................................................83 Preference of Retailers To Stock Nestle Orange Juice....................................................83 Preference By Retailers to Stock Shezan Orange Juice..................................................84 Results.....................................................................................................................................85

Preference By Retailers to Stock Minute Maid Juice.......................................................86

Analysis....................................................................................................................................86

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Marketing Research- Nestle Juices Results.....................................................................................................................................87

RELATION OF ADVERTISEMENT WITH SALE OF NESTLE ORANGE JUICE.........................................................87 Analysis....................................................................................................................................88 Result:......................................................................................................................................88

Effect of Sales of Nestle Orange Juice On Profit Margin.................................................88

Analysis....................................................................................................................................89 Results.....................................................................................................................................89

Effect of Sales of Shezan Orange Juice On Profit Margin................................................90

Analysis....................................................................................................................................90

Effect Of Price Change On Profit Margin of Nestle Orange Juice.....................................91

Analysis....................................................................................................................................92 Results.....................................................................................................................................92

LIMITATION......................................................................................................93 RECOMMENDATION..........................................................................................93 ......................................................................................................................94 CONCLUSION ...................................................................................................95 CONSUMER QUESTIONNAIRE.............................................................................97 RETAILER QUESTIONNAIRE..............................................................................102 REFERENCES..................................................................................................113

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Marketing Research- Nestle Juices

ORGANIZATIONAL HISTORY Nestlé is a multinational packaged food company founded and headquartered in Switzerland. It resulted from a merger in 1905 between the Anglo-Swiss Milk Company for milk products established in 1866 and the Farine Lactée Henri Nestlé Company set up in 1867. The Company is engaged in manufacturing, processing and sale of food products in Pakistan. The company offers milk, dairy, and chilled dairy products, including UHT milk, yogurt, raita, ghee, and cream; beverages, such as coffee, juices, and instant drinks; and bottled water in nonreturnable and bulk bottles for home and office delivery. It also offers infant cereals; prepared meals, such as noodles; breakfast cereals; and mints, chocolates, and confectionery and culinary products. The company, formerly known as Nestle Milkpak, Ltd., was founded in 1979 and is based in Lahore, Pakistan. Nestle Pakistan Limited is a subsidiary of Nestle S.A. It operates in Sheikhupura, Kabariwala, Islamabad and Karachi.

PRODUCTS MILK, DAIRY AND CHILLED DAIRY  Nestle Nesvita  Nido  Neslac  Everyday  Yogurt  Fruit Yogurt  Raita  Milk Pak Cream  Milk Pak Desi Ghee

BEVERAGES BOTTLED WATER  Nestle pure life

NESTLE JUICES  Fruita vital  Guava 5

Marketing Research- Nestle Juices  Chonsa (mango)  Mango orange  Mango  Apple  Orange  Red Grape  Pineapple

BABY FOOD  Cerelac

PREPARED MEALS  Maggie 2Minutes Noodles

BREAK FAST CEREALS  Nestle Cornflakes  Nestle Kokocrunch  Nestle Honey Stars2

CHOCOLATES & CONFECTIONARY  Nestle Kitakat and Kitakat Chunky

CURRENT SITUATION The main aim of Nestle is to reach every single Pakistani. Nestle currently launched a new flavored juice in Pakistan that is Nestle Guvava in 2008.The profit and net profit margins remained stable. Overall profit margin showed a slight increase but a slight decline in gross profit margin was witnessed.

PROBLEM STATEMENT “To know the reason of decline in sales of Nestle orange juice”

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Marketing Research- Nestle Juices

SALES GROWTH Nestle orange juice has been a flagship brand of Nestle juices since years. However, their sales declined to -1 % as compared to last year.

Last year growth in sales

This year growth in sales

20%

-1%

•

As per the meeting with the Brand manager juices, we got an insight about customer attitude, competitors, product development etc.

•

Total contribution of orange juice is 20% to revenue in the juices category; however the overall market share of juices is 60%.

CUSTOMER ATTITUDES The main concern that the consumer’s of Nestle Orange juices have regarding the juice is related to the purity of the juice. The factor and the feature that they are most concerned with is that is the juice 100% pure and healthy? The responses of prior studies reveal: 

People actually think that fruit juices are not that great for them because of the fructose (fruit sugar). They think that when this frustose is processed its pure sugar gets TERRIBLE for their health. So the solution to them is that if they want to have a taste of orange they should try having an actual orange because the fiber in the pulp skin and roughage will slow the absorbtion of the fructose.



Another group of poeple suggests that instead of having packed juices one should go for natural ones with pulp and fibre etc. They think that, that is much better for their health. Only when one is in hurry one should go for processed juices.



Yet another really inflexible lot thinks that juices are made from concentrated stuff which as per them is not healthy at all.So they should always go for fresh jucies regarless of the fact that they are in a hurry or not. And if they cannot get hold of fresh juices, they should skip juices altogether.



As per the staff of Nestle, poeple are getting diverted towards imported drink which includes orange juices as well. As people are getting more health conscious, they are willing to spend more on their health and thus are willing to purchase imported juices regardless of the cost factor. People receive Nestle juices to be better than imported juices.

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Marketing Research- Nestle Juices

NESTLÉ’S CONCERN For Nestle, in their juices category, Nestle Orange has been their flagship brand since its introduction in the market. As mentioned earlier, the total contribution of orange juice for Nestle has been 20% until last year. However, due to changes in consumer’s attitudes, for some reason or the other, the sales drastically decreased from 20% to negative 1% from last year to current year. This has been a major area of concern for the organization, its top management and all subsequent lower level staff. People at Nestle are really looking towards finding ways to bring their flagship brand back to the position it was holding for years. We discussed several issues with them to get started with our research and to know what actually could be the reason behind declining sales, the results of the discussion were: 

Nestle orange juice has always been the leading juice among all available nestle flavors, it showed leading sales. However, this year the leading sales were taken by apple juice.



There were no quality issues with Nestle Orange juice, so it was surprising for the juices team to see negative sales. The availability of Orange Juice was perfect and there was not any such juice launched which could take away the share from orange juice, nor there were any new competitors.



According to the manager, being the pure orange juice with no artificial flavor, and further added vitamin C should have improved the sales. However this was not what actually happened.

MARKETING MIX The Marketing environment at Nestle focuses on the principle of satisfying consumer needs. The overall trust of consumers in Nestlé’s brands and products comes from a quality image that has been continuously strengthened for over 130 years. Nestlé strives to increase this trust through its commitment to environmentally sound business practices. For this purpose Nestle: 

Bases environmental claims in advertising, promotional material, labeling and corporate communications on solid scientific evidence;



selects materials and printing methods for merchandising materials such as: o

consumer offers,

o in-store promotions,

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Marketing Research- Nestle Juices o Displaying materials, leaflets and printed materials in light of environmental considerations.

PRODUCT •

Nestle Orange juice

•

Flagship brand (number 1 brand in juices)

•

100% pure, no preservatives, no artificial flavor added

PRICE •

1000 ml

Rs. 75

•

200 ml

Rs. 18

PLACE Available at all major cities such as o Lahore o Islamabad o Multan o Faisalabad o Gujranwala o Karachi

PROMOTION •

In order to promote their products Nestle Juices uses the following medium. o Bill boards o Above The Line o Below The Line

TARGET MARKET The target market of Nestle juices includes:

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Marketing Research- Nestle Juices •

Both male and female between the age group of 19-31

•

Health conscious people

•

Socio eco class SEC A and B

•

Urban areas

•

Career oriented and life starters

COMPETITORS •

Shezan All Pure

•

Haleeb Good Day

•

Minute Maid (Coco Cola)

•

Other imported brands

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Marketing Research- Nestle Juices

COMPETITOR ANALYSIS SHEZAN ALL PURE Price (250ml) = Rs. 10 Price (1000 ml) = Rs. 60

MINUTE MAID Small Bottle = Rs. 35 Large Bottle = Rs. 90

HALEEB GOOD DAY Price = Rs. 12

11.0. INFORMATION NEEDS We visited Nestle and interviewed Miss Beenish Pervaiz (Brand Manager, Nestle Juices), to get the information regarding the product in which company is currently facing problem. She told us about the declining sales of Nestle Orange Juice and asked us to provide the company the following information: •

Study of specific areas which are the root cause of decline in sales

•

To find the exact information regarding consumer ‘s taste and preferences

•

Awareness of the brand in various socio economic classes and geographical areas

•

To identify the correct target market

•

What strategies competitors are using and how that can be tackled

•

To find if there is problem with advertisement and promotion.

•

Product quality

SYNOPSIS Nestlé is one of the world’s largest nutrition Company in Pakistan. It is catering milk products, beverages, food items, bottled water, juices, and breakfast and confectionary items. Keeping the market taste in view Nestle has recently launched a new flavored juice product in Pakistan called Guava.

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Marketing Research- Nestle Juices Nestle orange juice is the finest and 100% pure orange juice among all other brands and it’s a flagship brand among other Nestle juices. The price of Nestle Orange juice is competitive and they are using all sorts of advertisement material and concepts to target their markrt. Their msjor competitors are Shezan All pure, Haleeb Good Day and other imported brands. The market share of Nestle orange juice is 60%. The research problem that we were told by the Company was to know the reason of decline in sales of Nestle orange juice in Pakistan. Nestle orange juice being the flagship brand showed declining sales this year which was the 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.

RESEARCH QUESTION Our research objectives will also include some questions through which we will try to solve our research problem. 1. How important is the taste of Nestle Orange Juice important for the customer? 2. How much consumers are wiling to pay for Nestle Orange Juice? 3. How much the advertising campaign influences the purchase decision of the consumer? 4. What is the awareness level of Nestle Orange Juice among consumers? 5. How strong are competitors in creating loyalty among their target market?

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Marketing Research- Nestle Juices

6.0. HYPOTHESIS The hypothesis that was formulated based on our research question are as follows: •

Household income has significant impact on the consumption of Juices.

•

A significant relationship exists between gender and degree of liking of Nestle Orange Juice

•

A significant relationship exists between age and consumption of Nestle Orange Juice

•

Significant relationship exists between the Taste of Nestle Orange Juice and consumption of Nestle Orange Juice.

•

Significant relationship exists between the Price of Nestle Orange Juice and consumption of Nestle Orange Juice.

•

Significant relationship exists between the Appealing Advertisement of Nestle Orange Juice and consumption of Nestle Orange Juice.

•

Degree of liking Nestle juice has any impact on the degree of liking Nestle orange juice.

•

A significant relationship exists between Taste and Degree of liking Shezan juice.

•

A significant relationship exists between the degree of satisfaction of consumers with the packaging of the Nestle Orange juice.

•

A significant relationship exists between Nestle brand juices and preference to stock then by the Retailers.

•

There is a significant relationship between sales and appealing advertisement of Nestle Orange Juice.

•

A significant relationship exists between the sales and the profit margin of Nestle Orange Juice

•

A significant relationship exists between the price of the juice and the profit margin of Nestle Orange Juice

7.0. RESEARCH OBJECTIVE The research objectives of our project are as follows:  To know the buying preferences and purchasing habits of consumers buying Nestle Orange juice.  To understand consumers taste preferences; as tend to like sweet juices in Pakistan rather than pure orange taste.

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people bitter

Marketing Research- Nestle Juices  To analyze new competitors in the market to see whether they affect the sales of Nestle Orange Juices.  To analyze the effectiveness of promotion campaign of Nestle Orange Juice on consumers.  To determine consumer awareness about the product  To analyze the process of distribution of Nestle juices and its availability in the market.  To determine quality of Nestle Orange Juice.  To collect specified product performance data for identifying retailers’ strengths and weakness which could serve as indicator for evaluating the performance of the Supply Chain of Nestle Orange juice.

EXPLORATORY RESEARCH Nestle juices has provided us the basis of their research concern to identify reasons behind the decline in the sales of Nestle orange juice in particular. Exploratory research will help us identify the research hypotheses. Hence, it is of our benefit to start off the research process by conducting exploratory research. Currently we have three general hypotheses from which we have to establish priorities by exploring and developing relationships between different variables. Under the exploratory research we will have to conduct 1. Focus groups, 2. In-depth interviews and 3. Literature review.

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Marketing Research- Nestle Juices EXPLORATORY RESEARCH

LITERATURE SEARCH

EXPERIENCE SURVEYS

Company’s Internal Records

Beenish Pervaiz Brand Manger (Beverages )

Trade Literature

Nestle Website Brochures

FOCUS GROUPS

Age Group

(20 – 25)

Age Group

(26 – 31 )

Rooha Hameed Training Manger

&

OK Store Defence

Housewives

HKB Store Defence

FOCUS GROUPS The purpose of conducting focus groups for our research project is to get an in depth insight of the problems associated with the decline in sales of Nestle orange juice. Their views and opinions about the taste preferences of the consumers will be exposed to us during the whole focus group sessions. Information regarding emerging competitors, changes in the marketing strategy, changes in buying preferences and other possible reasons which resulted in the decline in sales of nestle orange juice will be extracted out. A total of three focus groups have been planned in order to exchange ideas regarding reasons of decline in sales of nestle orange juice. The members of one focus group will be composed of 1. Age group 20 - 25. 2. Age Group 26 - 31. 3. Housewives/working women We have selected two different focus groups with age brackets of 20-25 and 26-31 so as two know that whether the decline in sales is due to changes in taste preference with age. There may be a difference of attitude with maturity between someone who is 20 and someone who is of 30 years of age. The third focus group we will conduct is with women so as to know the household consumption.

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Marketing Research- Nestle Juices

DETAILS OF FIRST FOCUS GROUP There will be 7-10 participants in first group, both male and female. The reason behind the selection of participants in the first focus group between the age group of 20-25 is because this group consumer includes young professionals, students and young home makers. The participants in their early twenties have a different approach towards life, as compared to participants in late twenties. We have decided to carry out the focus groups so as to have a deep insight of the problem in different areas and in different age groups of people.

DETAILS OF SECOND FOCUS GROUP There will be 7-10 participants in second group. The individuals in this focus group have entered into their professional life and are married. They have different taste preferences as compared to individuals in their early twenties.

DETAILS OF THIRD FOCUS GROUP The third focus group would be conducted with women only, preferably include housewives or working. This will help us understand the household consumption of Nestle Orange Juice.

QUESTIONS TO BE ASKED DURING FOCUS GROUP DISCUSSION Details of questions to be asked in focus group: 1. Do you drink packaged juice? 2. Which Flavor do you buy? 3. What is your second choice of flavor? 4. Which brand do you buy? 5. What is your second choice of brand? 6. Why do you buy your preferred brand? 7. Which appeals you the most when you buy a juice? 8. Which size do you prefer buying, 1000 ml or 200 ml? 9. What is the most important attribute when you purchase a juice? 10. What are your likes and dislikes while purchasing orange juice?

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Marketing Research- Nestle Juices 11. What is your consumption behavior (i.e. you prefer in breakfast, lunch or dinner) 12. What do you like the best in orange juice? 13. What are your reasons for usage of the appropriate brand of orange juice? a. Emotional (Quality) b. Sensory (taste, smell etc.) c. Functional (healthy, nutritious etc.) 14. Have you recently switched to another brand? If so, why? 15. What differences do you find in both the brands? 16. Where do you purchase juice from?

IN-DEPTH INTERVIEWS In-depth interviews were conducted to get the insight of retailers and consumers who are directly or indirectly influencing the level of sales of nestle orange juice. Interviews were taken collectively by all of the group members. Group leader introduced the objective of the interviews and started off with the discussion question. Questions were directed towards extracting as much information as possible regarding our proposed hypotheses. Informal and unstructured interviews were conducted with the management of the company i.e., sales manager, product manager and sales representatives, wholesalers, retailers etc.

PROPOSED INTERVIEWEE 1 Beenish Pervaiz Brand Manger (Beverages) Nestle Pakistan Purpose: Being the Brand Manger Beenish can give us an insight of the past and present situation of Nestle juices.

PROPOSED INTERVIEWEE 2 OK Store 2-U, Commercial Area

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Marketing Research- Nestle Juices DHA, Lahore. Purpose: Retailers have direct interactions with the consumers of Nestle orange juice so they can take direct customer feedback.

PROPOSED INTERVIEWEE 3 HKB Y-Block, Commercial Area DHA, Lahore Purpose: Interview of retailers was conducted to understand the sales side of Nestle Orange Juice directly from the retailer as the retailer is the one who is directly involve in the sale of the product with the customer.

QUESTIONS TO BE ASKED FROM MANAGEMENT 1. What is the current market share of Nestle orange juice? 2. Is sale of orange juice stagnant or declining? 3. Are you improving, re-launching a new strategy to cope with the situation? 4. According to you when did the phase of decline started? 5. Is the value delivery network properly observed? 6. Is performance of sales representatives evaluated? 7. What is the sales growth rate of Nestle orange juice as compared to last year? 8. Does environmental condition (summers, winters etc.) affect your sales? 9. Is Nestle orange juice production affected by the new launch by a competitor? 10. Do health conscious people consume more Nestle orange juice? If yes, than why? 11. Is orange juice recommended by the doctors or health consultants? 12. Are health conscious people concerned about the high price of Nestle orange juice?

QUESTIONS TO BE ASKED FROM RETAILERS AND WHOLESALERS 1. What is the maximum shelf life of Nestle orange juice? 2. Is Nestle orange juice having competitive prices?

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Marketing Research- Nestle Juices 3. Does any consumer complaint about the quantity of Nestle orange juice? 4. Does company do in-store advertisement? 5. Is any special shelf placement is requested by the company? 6. How many wholesalers network are being dealt? 7. You earn more profit on buying Nestle orange juice from wholesalers or direct from the company?

LITERATURE SEARCH For our project Literature search is one of the key exploratory studies that we conducted, in fact literature search was the very initial study that we began our project with. Initially right after we discovered our underlying problem, for which we are conducting this marketing research, we started up with gathering data and statistics about the company i.e., Nestle itself. We used mostly the web for this purpose. The website that turned out to be most helpful as far as gathering information of nestle was concerned was www.nestle.com.pk After we got familiar with the company and its product line we moved on to gathering information about our concerned product that is Nestle orange juice. We will gather statistical data, study balance sheets and income statements and other financial reports that we will find out on the web. The most helpful document that we discovered was the annual report of Nestle for the year 2007. As It had sales records of paste years which gave us an insight of trends of revenue. We will also collect a few brochures that Nestle Pakistan has printed and these brochures and pamphlets we will collect from Nestle office located in Lahore. The material and details printed on these brochures etc shall also be of a great help and shall prove to be an important source for us for understanding the company, as it may help us analyze whether they are having an attractive marketing mix or not, which may help us in analyzing our problem. Another major area that literature search helped us with is gathering data regarding the competitors. On the web we found out who are the competitors of nestle in its juices line and more precisely in its orange juice. Literature search revealed that a few of our major competitors are: •

Shezan All pure

•

Haleeb Good Day

HALEEB GOOD DAY Haleeb Good Day offers 100% pure orange juices without any added sugar, flavors or preservatives. Haleeb Good Day orange juice gives the consumers the absolute delight in taste, 19

Marketing Research- Nestle Juices and revitalizes them at the same time. It is packed in a 6-layered Tetra Pack Brick Aseptic packaging.

SHEZAN ALL PURE Shezan All Pure juices enrich our senses with the fresh taste of 100% pure orange juice. A sip of All Pure helps our taste buds embark on a magical journey filled with the sweetest fruit sensations.

FOCUS GROUPS DETAILS GOALS TO BE ACHIEVED THROUGH FOCUS GROUP Goals to be achieved through focus group discussion are the following, which will help us in analyzing the different factors that have attributed to decline in sales of Nestle Orange Juice. •

To understand consumers taste preferences.

•

To analyze the effectiveness of promotion campaign on consumers.

•

To determine consumer awareness about the product

•

To determine quality of Nestle Orange Juice.

•

To know why consumer are switching to competitors brand

Two focus groups were conducted with different consumers, who gave us an insight of their likes and dislike about the orange juice.

PROCEDURE USED TO PLAN FOCUS GROUP Both The focus groups were conducted at Ayesha Noor’s place, where the respondents were called up. There were two moderators 1. Sarah Zahid 2. Humaira Waheed.

REASON FOR CONDUCTING THREE FOCUS GROUPS Three focus groups were conducted. After the first focus group was conducted we analyzed the results of the responses that we got from the focus group participants. After thorough analysis of the results we came to a conclusion that although the information gathered from the focus group was really useful and helpful but the information was not much diversified. The responses of the participants were not much detailed and were not elaborated much. Thus, in order to cater to this problem we planned for the second focus group whose results together with the first focus group 20

Marketing Research- Nestle Juices gave us a clear picture. We used different age groups for the purpose having an insight of the target markets changing opinions with age. The third focus group was conducted with women i.e. the household heads who manage the house, to know about the household consumption of Nestle Orange Juice. The following question guide was prepared: •

Do you drink/buy juices?

•

Which Flavor do you buy?

•

What is your second choice of flavor?

•

Do you like orange juice?

•

Which brand do you buy?

•

What is your second choice of brand?

•

Why do you buy your preferred brand?

•

Which appeals you the most when you buy a juice?

•

Which packaging do you prefer buying, 1000 ml or 200 ml?

•

What is the consumption behavior?

•

What is the most important attribute when you purchase orange juice?

•

Your Likes/dislikes for orange juice?

•

What do you like the best in orange juice?

•

Have you recently switched to another brand? If so, why?

•

Where do you purchase juice from?

FOCUS GROUP 1 LOCATION:

Ayesha Noor’s place

START TIME:

7:00 pm

DURATION:

45 minutes

MODERATOR:

Sarah Zahid AGE

GENDER

EDUCATION LEVEL

OCCUPATION

Respondent A

Hammad

20

Male

BBA

Student

Respondent B

Ali

21

Male

BBA

Student

Respondent C

Qadir

20

Male

BBA

Student

21

Marketing Research- Nestle Juices Respondent D

Faheem

24

Male

BSC

Student

Respondent E

Ayesha

21

Female

BSC

Student

Respondent F

Humaira

23

Female

MBA

Student

Respondent G

Aleena

20

Female

MBA

Student

Respondent H

Sonia

23

Female

MSC

Student

KEY FINDINGS OF FOCUS GROUP 1 Which Flavor do you buy? Respondent A, B and C love to have orange juice, respondent D liked mango juice, where Respondents E, F, G and H liked apple juice. What is your second choice of flavor In case of unavailability? Respondent A, B and C were not willing to have any other juice of orange juice was not available, they would rather take water. Respondent D would purchase apple if mango is unavailable. However if apple juice is not available respondents E and F would buy grapes, respondent G would buy Mango, and respondent H would buy Pineapple. Do you like orange juice? Which brand do you buy? What is your second choice of brand? All of the respondents at once named Nestle, in case of unavailability of Nestle Respondents A, B and C said that they would go for minute maid. Respondents D, E, F, G, and H would go for Shezan. Likes and dislikes regarding orange juice Respondent A said he loves Nestle orange juice, respondent B had the same view, and respondent C was so excited that he started licking his lips that he just simple loves Nestle orange juice. In contrast, rest of the respondents had high disliking for the Nestle Orange Juice, they said they hate it. Why do you buy your preferred brand? Which appeals you the most when you buy a juice? What is the most important attribute when you purchase orange juice? Following results were seen:

22

Marketing Research- Nestle Juices Respondents A,B and C buy Nestle orange juice because it is a big company and they perceive it to be good quality. The three respondents loved the taste of Nestle Orange Juice. Respondent A said he loves the bitter taste of the orange juice and the brand name as Nestle is the top brand. Respondent B loves oranges simply, so he can’t resist having Orange juice. Respondent C said that it’s the packaging and quality which appeals him the most. Respondents A and B look for taste and quality. Where respondents E, F, G and H liked Nestle apple juice because they think it is more pure and also good in taste. Which packaging do you prefer buying, 1000 ml or 200 ml? In response to this question all respondents said that they buy 200 ml on daily basis. Also 1000 ml is purchased by all respondents except respondent G. Consumption behavior pattern All the respondents have juice on a regular basis. Respondent A, B, C and D buy the juices 3 to 4 times a day when they are out. However, respondent E, F, G and H at least take juice once in the entire day. Have you recently switched to another brand? If so, then why? Respondents A, B and C responded that they have not switched permanently to Minute Maid, but they do buy Minute Maid for a difference. Respondent A said that taste wise Minute Maid is good but quality and purity wise nestle Orange Juice is the best. Respondent B said that he likes the pulp in Minute Maid, and it is more in quantity, where as Nestle Orange juice has less quantity and finishes soon. Respondent C said that Minute Maid is more affordable and comes in more quantity; also it is not as bitter as Nestle orange juice. Respondent D, E and F were indifferent, whereas, respondent G and H said if nestle is not available they would go for Shezan. Where do you purchase juice from? For this question, the respondents said that they buy it from any small shop or retail store near to their place. However all respondents except respondent G said that their mothers buy the 1000 ml package when they buy their monthly grocery. Respondent A and B buy it from HKB. Respondent C, D and E’s mothers go to Al-Fatah, respondent F and H go to Macro.

FOCUS GROUP 2 LOCATION:

Ayesha Noor’s place

START TIME:

5:00 pm

DURATION:

45 minutes

23

Marketing Research- Nestle Juices MODERATOR:

Humaira Waheed AGE

GENDER

EDUCATION LEVEL

OCCUPATION

Respondent A

Abid

28

Male

Masters

Senior Software Engineer

Respondent B

Zakir

28

Male

Masters

CSR

Respondent C

Hussain

30

Male

Masters

Management Trainee Officer

Respondent D

Asim

25

Male

Masters

Senior Associate

Respondent E

Maria

26

Female

Masters

Army Nurse

Respondent F

Mehar

28

Female

MBA

Executive assistant

Respondent G

Beenish

25

Female

Masters

Business Development Manager

KEY FINDINGS OF FOCUS GROUP 2 Which Flavor do you buy? Respondent A likes Faalsa flavor, respondent B and C purchase pineapple, D, E, F and G buy orange juice. Do you like orange juice? Which brand do you buy? Respondent A, B and C said that they do not like orange juice, if they buy it for some reason they buy Shezan Orange Juice. Respondents D, E, F and G liked orange juice. Respondents D and F buy Nestle orange Juice whereas respondents E and G bought country high orange flavor. What would be your second choice of brand? None of them was willing to switch. Why do you buy your preferred brand? Which appeals you the most when you buy a juice? Respondents A, B and C said that they like the taste of their brand and taste is what appeals to them the most. Respondents D and F said that brand name is what matters to them. Respondents E and G like their brand because its Pakistani brand. These responses were a real patriotic sort.

24

Marketing Research- Nestle Juices What is the most important attribute when you purchase orange juice? What are your likes/dislikes for juice? What do you like the best in orange juice? Following results were seen: Respondents A, B and C said that if they will buy orange juice they would prefer buying the one with good taste. Respondent A said that he will never go for nestle as it has the worse taste and it tastes like medicine. He also said that they claim it a health drink but he always has an upset stomach and acidity after having Nestle Orange Juice. Respondents D and F said that they like orange juice especially nestle orange. Nestle Orange is actually a true orange juice. And they like the bitter taste of the juice. Respondents E and G said that the important attribute for them is that it should be a Pakistani brand. The most important attribute identified by respondents D and E is that they wanted it to be really chilled to quench their thirst especially in the extreme weather prevalent in our country; respondent F said the price should be not more than Rs. 15. Respondent G said that purity is what matters to her. Which packaging do you prefer buying, 1000 ml or 200 ml? In response to this question all respondents said that they buy 200 ml packaging more frequently. Whenever they feel like having a drink. 1000ml is purchased by all respondents but on monthly basis. Respondent F and G said that they buy 4-5 1000ml package in a month. Consumption behavior pattern Respondents D and E said that they take orange juice 3-4 times a day, respondent F and G said that they take juice whenever they feel thirsty. Respondents A, B and C said that they take juice daily, around 1 to times. Have you recently switched to another brand? If so, then why? Respondents D and E said that they have started switching to Minute Maid as it has a better taste and they like the pulp content in it. Respondent F and G said that they love the taste of Nestle orange Juice, the bitter taste is what they really love. Respondents A, B and C said that they have not switched to any brand. Where do you purchase juice from? All the respondents said that they purchase it from their nearest stores.

FOCUS GROUP 3 LOCATION:

Chand’s place

25

Marketing Research- Nestle Juices START TIME:

5:00 pm

DURATION:

45 minutes

MODERATOR:

Chandzaib

RESPONDENTS

NAME

AGE

GENDER

OCCUPATION

1

Respondent A

Naleem

40

Female

House wife

2

Respondent B

Zubaida

43

Female

House wife

3

Respondent C

Shameem

45

Female

House wife

4

Respondent D

Aneela

32

Female

House wife

5

Respondent E

Sara

30

Female

Working woman

6

Respondent F

Rabia

39

Female

Teacher

7

Respondent G

Kausar

48

Female

House wife

8

Respondent H

Riffat

34

Female

House wife

26

Marketing Research- Nestle Juices

KEY FINDINGS OF FOCUS GROUP 3 Which Flavor do you buy? Respondents E, G and H were highly likely in favor of orange juice, but Respondent E has some other preferences as well in the absence of orange juice she says “whatever is available on time”. Respondent B, D and F likes red grapes, respondent A liked pineapple and Respondent C was in love with chounsa. What is your second choice of flavor in case of unavailability? As told before Respondent E had some other preferences, she said her 2nd most choice will be mango, where as C, D and F were said they would like mango instead, Respondent A and B said they’ll shift their choice to cold drink, and Respondent G, and H said they’ll prefer water. Do you like orange juice? Which brand do you buy? What is your second choice of brand? All the respondents were in favor of nestle but Respondent B and G said they are a bit expensive, but we still buy. In case of unavailability they all gave different responses like A, C, F and H said they’ll opt for shezan, and D and E said minute maid. Liking towards Nestle Orange Juice Respondent E, G and H said they truly love Nestle orange juice, respondent A and B said some what they like, respondent C, D and F were not favor that much either, they said they themselves love but to buy for home they prohibit, because their children think it tastes bitter. Why do you buy your preferred brand? Which appeals you the most when you buy a juice? What is the most important attribute when you purchase orange juice? Following results were seen: Respondents E, G and H buy Nestle orange juice because of their tag line of “100% pure orange juice”, what they say they provide it. Respondent C, D and F were somewhat in favor of buying, they said they don’t buy 1000ml for their family. In contrast respondent A and B said they love to buy orange juice. Respondent E and H love the price in the mean while respondent G added its packaging attribute, that tetra shaped packing looks good, but it give the image of being less in quantity. Which packaging do you prefer buying, 1000 ml or 200 ml? Respondent E said she’s a sales women so she drink it on daily basis (200ml pack), respondent G and H said they highly likely to drink it twice a day during their lecture breaks(200ml pack). C,

27

Marketing Research- Nestle Juices D and F said their intake of Nestle orange juice if rare. Respondent A and B said they buy big pack of 1000ml on monthly basis. Consumption behavior pattern Respondent E, G and H take it on daily basis, Respondent A and B whenever they like, and rest said when they go out, or whenever its served at someone else’s place. Have you recently switched to another brand? If so, then why? None of the participant in the focus group had shifted to any other brand. The respondent G and H said whatever they find instead of Nestle. Respondent C, D and F said they buy minute maid and Shezan for their house hold purposes but for themselves they prefer buying Nestle Orange juice (200ml pack). Where do you purchase juice from? Respondent E said she get served in her office. Respondent G and H said that they buy it from the nearby shops. Rest said from the place they do there grocery shopping.

SUMMARY OF FOCUS GROUP FINDINGS The Focus group revealed some of the very useful and interesting findings which can help us in identifying the solution to the problem. The respondent’s top of mind brand has always been Nestle. Those who are moving away from Nestle orange juice are doing so because of its bitter taste, and also because as per the participants competitors’ are offering pure juice with a good taste and fair price. Consumers think that the price is also high. Also they doubt that although Nestle claims the juice to be 100% pure it is not the case in reality. Consumers believe that the juice has artificial flavor and preservatives added to it as a few very prominent ingredients. Also, they say Orange Juice tastes good when it is chilled, whereas most of the times Nestle juices that are available are not fully chilled. We also found out that those who do not take Nestle Orange Juice or those who have switched to another brand is because of increasing price of Nestle Orange Juice and its bitter taste. Also some of the respondents proved to be more patriotic and didn’t like taking juice of any Multinational firm. We also found out that those who take orange just simply love its bitter taste. The focus group conducted with the decision making units for the households that is the Housewives, we found out that they prefer buying Cartons of Nestle Orange Juice on monthly basis in large packing’s for their family.

28

Marketing Research- Nestle Juices

LIMITATIONS OF FINDINGS The focus group discussion tends to get biased as many respondents try to emphasize their opinion. Some of the respondents take clue from ideas of others and agree to what others say, without thinking over it.

IN-DEPTH INTERVIEWS INTERVIEW # 1 NAME: BEENISH PERVAIZ DESIGNATION: ASSISTANT BRAND MANAGER JUICES, Nestle DATE: 28 -08-08 LOCATION: NESTLE

RESULTS OF INTERVIEW CONDUCTED AT NESTLE Orange was our flagship brand last year. The sales growth of Nestle orange juice increased at the decreasing rate last year. As you go higher up to attain your goals your base gets smaller. When you have lots of consumer in the substantial market, it could be more difficult to gain larger share within the portfolio. Q What were the reasons for the decline in sales of Nestle juices? The reasons that might have caused the decline in sales of Nestle juice •

The differentials between our Nestle orange juice and imported brand have decreased.

•

Aggressive price increase because of that people would want to buy imported brand

•

Flavor fatigue in orange, the larger the base the more difficult to bring in the additional group.

Q How have you adapted to the change in sales growth of Nestle orange juice? Nestle adapted with the change in sales growth by fortifying our orange juice with vitamin C. In pure orange juice we are not adding any sugar or preservatives. A juice has a six months shelf life. After six months we claim that the content of vitamin C in the product decreases by approximately 10% as mentioned on the package. In order to cater this issue Nestle fortified the juice and this resulted in the taste of Nestle orange juice to become bitter.

29

Marketing Research- Nestle Juices Q: Why didn’t you go for marketing research after adding Vitamin C in it? The feedback that we gained was from sales. We are currently in the process of reformulating the product so in this process we’ll take old orange juice and will conduct 50-40 test. Before the launce we have 50/40 win from consumer, over competitive product like Shezan, Haleeb Good Day and our brand. 60% of consumer preferred our brand in blind test. After consumer research and reformulating we are re-launching Nestle orange juice in next year, and bringing down it to the initial taste, but the price will not be decreased. All juices like Nestle, Haleeb and Shezan have maintained its prices, because juices and nectars are profitable in case of value and drive of the company. Q: Have you ever conducted any survey to get feedback? In case of Nestle orange juice we haven’t conducted any survey, but for other flavors we did conduct a survey. We did segmentation according to •

Consumer attitude,

•

Behaviors,

•

Consumer preferences and

•

Chosen market segment for marketing effort.

Q: Do consumers perceive Nestle orange juice as 100% pure? A lot of people do, thinking 100% as pure as 100% will be unethical. In the new brand architecture launch we will eliminate the tag on Nestle orange juice that it is 100% pure. Q: We conducted focus groups and results showed that minute maid is taking because of additional pulp. What have you done in order to cater this issue? Minute maid has pulp but has 0% fruit content (zero %). Q: Why do you conduct research after launch, why not before launch? Nestle does conduct marketing research before launch. None of our product is launched before 60/40 percent win. We did conduct marketing research before launching chouynsa nectar and red grapes. We had 71/29 percent win meaning that Shezan grapes had 29% and nestle red grapes had 71% win. Q: Define SEC A and B The segmentation of class of consumers is done on social standing which includes •

Educational level

•

Economic Status 30

Marketing Research- Nestle Juices The definition of SEC varies from one research house to the other. The individuals in SEC A must have an income level > 25,000 and their education level should be at least BA. Q: What is the scope of Nestle juices world wide Nestle juices caters 4 markets •

America

•

Pakistan

•

Thailand

•

Malaysia

Nestle has no international expertise on all the products that it caters. There is no global research being conducted on brand essence and brand positioning. Most of the researches have been conducted in Pakistan. Q: Have you looked into the issue of increasing the size of 200ml pack to 250ml? We ordered the machinery to increase the content of 200ml pack to 250 ml but it did not work out because the price per juice increased from Rs. 18 to Rs. 25. This would have an impact on the sales of juices. Another reason for not increasing the packaging was that the small packaging is for trial generation.

INTERVIEW # 2 NAME: MUHAMMAD SHAFIQUE DESIGNATION: PURCHASE MANAGER DATE: 28 -08-08 LOCATION: AL FATAH Mr. Shafique Ahmed is the purchase manager at Al Fatah .He is responsible for all the purchases for Al Fatah. The main reason for interviewing Mr. Shafique was to have an idea about Customer feedback, its shelf placement, price, Quality, its supply and demand etc.

FINDINGS OF INTERVIEW CONDUCTED AT AL FATAH Nestle was the most preferred brands among the customers and according to them their highest sales are from nestle products weather its juices, water or yogurt. Most preferred Nestle juice is orange by the customers .They have placed Nestle Orange Juice in the front shelf, and company pays them for placing them on the front shelf. They have a positive feedback from customers on

31

Marketing Research- Nestle Juices the price, its quality, and taste. But they had a major problem with the supply in the past as supply was not sufficient to meet demand. Demand has always exceeded for nestle orange juice but Al Fateh has not faced any situation when they have no supply to meet the demand of Nestle juices. Also, some regular customers have also started complaining that the Nestle Orange Juice is getting bitterer than it previously was. According to the interviewers the company was not in a position to meet its rising demand in past and they always had issues with their distributors such as DEANS BROTHERS. Customers have complaint regarding the non availability of Nestle Orange Juice, and in case when there is shortage of Nestle orange juice consumers go for others brands. 1000 ml nestle orange juice is mostly demanded by customers. Presently they stock 70 cartons for 1 week but in past they used to have 60 cartons. Overall in the last year the company did not focus on the sales of Nestle orange juice.

INTERVIEW # 3 NAME: TARIQ WASEEM DESIGNATION: FLOOR MANAGER DATE: 28 -08-08 LOCATION: HAJI KARIM BAKSH (HKB) DHA Mr. Tariq Waseem manages the entire grocery section of HKB. He briefed us on the shelf placement, customer feedback and sales at HKB last year as compared to now. He also gave us an insight of the consumption patterns of buyers of Nestle Orange juice.

FINDINGS OF INTERVIEW CONDUCTED AT HKB Results were almost identical for HKB and they also confirmed that supply was not sufficient to meet demand .Overall the demand of Nestle orange juice was the highest .Currently the problems related to supply have decreased. The customer feedback on quality, taste and price of Nestle Orange juice was positive. However, they said customers often talk about Nestle Orange Juice being bitterer.

INTERVIEW # 4 NAME: AZFAR ALI DESIGNATION: MANAGER SUPPLY CHAIN DATE: 28 -08-08 LOCATION: METRO

32

Marketing Research- Nestle Juices Mr. Azfar Ali is responsible for entire supply chain at METRO He gave us an idea on the current and past situation of supply chain of orange juices at Metro.

FINDINGS OF INTERVIEW CONDUCTED AT METRO Metro is primarily a wholesale market. They also articulated supply shortages as the main problem in past and this problem has decreased now.

INTERVIEW # 5 Interview was done with many small retailers in different locations of Lahore to have an idea of their experience of Nestle orange juice.

FINDINGS OF INTERVIEW CONDUCTED AT SMALL RETAILERS According to the small retailers Nestle is the most preferred brand and they have no issues regarding price and quality of Nestle orange juice. The demand of 200 ml Nestle orange juice is the highest. Supply remained a problem in past but now they said it’s almost ok. One of the most interesting facts that we have found was that Nestle juices were placed mostly in the back shelf’s in small stores. The retailers didn’t understand the fact that highest demanded should be placed in front.

SUMMARY The results of the interview conducted helped us build a relationship between the research objectives previously mentioned which includes: •

To collect behavioral data regarding, consumer shopping preferences about Nestle juices. o To determine consumer awareness about the product o To analyze the process of distribution of Nestle juices and its availability in the market.

•

To analyze whether the Nestle orange juice has been given appropriate shelves space to attract the consumers and create thrush in them.

•

To judge whether Nestle Orange Juice delivers the right value of money.

INTERVIEW # 6 NAME: RAFIA KHAN DESIGNATION: FINANCIAL ANALYST

33

Marketing Research- Nestle Juices EXPERIENCE: 2 1/2 DATE: 28 -08-08 LOCATION: NESTLE

FINDINGS OF INTERVIEW CONDUCTED AT NESTLE The information that we gathered showed that the sales growth in each country was calculated distributor wise. In Lahore there are 5 distributors of Nestle juices. The distribution to the distributors is based on the type of flavors that they want to keep in their stores. In Lahore the largest sales are made in Defense. A sales report is prepared by the sales department on retailing and invoicing that is used to calculate the total sales growth over the last year. This showed us that how the distribution channel is working. Defence is the major sales generating area and they should focus on improving it.

LITERATURE SEARCH For our project Literature search is one of the key exploratory studies that we conducted, in fact literature search was the very initial study that we began our project with. The website that turned out to be most helpful as far as gathering information of Nestle was concerned was www.nestle.com.pk FINANCIAL PERFORMANCE (DEC03-DEC07): FY07 was a good year for NPL as its top line reached a new landmark of PKR 28 billion following an excellent growth of 28% compared to FY06. Primary contribution came from its pillar product categories, milks, baby food and juices. Fresh milk volume grew by 29% over the same period last year; however, this was still not sufficient to meet production requirements for the year. The increasing sales trend (CAGR of 28% during FY03-FY07) is primarily attributed to continued focus on sales and marketing efforts, innovative strategies and a sound distribution network. This robust growth in sales translated into a solid increasing operating profit of Rs 3.53 billion, an increase of 33%. However, this primarily relates to higher fixed cost absorption from inventory that led to lower profitability in FY'06. In addition, efforts in 2007 include a favorable movement in sales mix and rigorous fixed cost control. The literature search helped us in gathering data regarding the competitors. On the web we found out who are the competitors of nestle in its juices line and more precisely in its orange juice. Literature search revealed that a few of our major competitors are: •

Shezan All pure

•

Haleeb Good Day

34

Marketing Research- Nestle Juices •

Minute Maid

MINUTE MAID One of the leading competitors of Nestle juice is Minute Maid launched by Coca Cola. Sales of still beverages, such as Powerade and Minute Maid fruit juices, jumped 14 percent by volume, far outpacing a four percent rise by sparkling beverages, such as Coke and Sprite.

HALEEB GOOD DAY Haleeb Good Day offers 100% pure orange juices without any added sugar, flavors or preservatives. Haleeb Good Day orange juice gives the consumers the absolute delight in taste, and revitalizes them at the same time. It is packed in a 6-layered Tetra Pack Brick Aseptic packaging.

SHEZAN ALL PURE Shezan All Pure juices enrich our senses with the fresh taste of 100% pure orange juice. A sip of All Pure helps our taste buds embark on a magical journey filled with the sweetest fruit sensations. The data that was found helpful regarding Shezan is as follows: Food & Personal Care-Products: SHEZAN INTERNATIONAL LIMITED OVERVIEW (July 14 2006): One is impressed by its record highest sales and profitability. The company's shareholders must have rejoiced but its attractive profit distribution profile which has driven its shares market value to unprecedented heights. There are several milestones which the company attained. It crossed for the second consecutive year the billion rupee mark in sales value. Its launches of branded products ie Shezan Twist Fruit Punch," Shezan All pure have shaken the competition. Shezan became pioneer in the field of converting fruits into pulps, concentrate and juices based on local fruits and supported by the technology of its American partners. The market value of the share of Shezan International is being quoted at Rs 192 per share which is more than 19 times of the par value. During the last one year market value of the share remained very high between Rs 152 and Rs 238 per share. During the year under review, the company posted more than a billion rupees sales for the second consecutive year. The company generated sales in the sum of Rs 1.368 billion as against Rs 1.097 billion in the preceding year registering 24.8% growth. The company made substantial investment in marketing promoting its extensive portfolio of brands which yielded good result in terms of higher sales. The bottle juice continued to perform well, with its sales up 22% over the previous year. Other products in juice-related category 35

Marketing Research- Nestle Juices registered a robust growth following renewed promotional and marketing campaign. During the year the company posted export sales at Rs 35.45 million as against Rs 37.73 million in the preceding year. It is reported that exports remained under pressure due to volatile security situation in its export markets and higher operational and shipping costs. The company posted net profit after sales at Rs 103.24 million which is highest the in the company's history. The leadership in the enterprise has formulated future strategy to improve profitability by further improving sales volume and optimizing costs. Rising volume of sales will be further spurred by continuing to provide customers with a variety of impeccable quality food products which appeal to their changing preferences.

DATA COLLECTION For collecting data, questionnaire was made; containing general question about the juice preference and then asking questions related to Nestle Orange juice to know about the brand. Two questionnaires were made to get them filled by consumers and retailers to get information from both retailers and consumers to know about the variables affecting sales of Nestle Orange Juice. Questionnaire has been attached in the appendix.

SURVEY METHODOLOGY For the research under study sample size was as follows: •

200 samples of consumers and

•

70 samples of retailer

Out of 200 samples of consumers only 178 were valid responses and others were discarded due to their invalid responses. In the retailers only 59 were the valid responses which can be thought as of taking a portion of the whole and studying that portion to make estimates about the whole. Consumers selected in the sample were students of • • • • •

Lahore school of economics LUMS Punjab university Fast Hailey college of banking and Finance

Households units, health conscious people of SEC A and SEC B filled in the questionnaire. Retailers sampled in the study were located in different locations in Lahore and from big mart to small commercial shop. The retailers questionnaire were administered so as to have right responses .This was due to the communication gap as most of the retailers were unable to read English so it was to be administered.

36

Marketing Research- Nestle Juices Samples of consumers helped us in measuring attitude of people. Due to limited time sample size was small but having rightly defined target market results would be representative of target market.

37

Marketing Research- Nestle Juices

38

Marketing Research- Nestle Juices

CONSUMER ANALYSIS ANALYSIS OF RESPONSES TO GENERAL QUESTIONS Few questions were asked in the questionnaire in both consumer and retailers’ questionnaire in order to check the buying and consuming behavior of buyers and consumers. The analysis of responses given to such questions is given in this section.

GENDER Gender:

Valid

Male Female Total

Frequency 84 94 178

Percent 47.2 52.8 100.0

Valid Percent 47.2 52.8 100.0

Cumulative Percent 47.2 100.0

We took equal male and female respondents for our analysis. However, we had to discard some of the questionnaires which were incomplete and were not meeting our standards. So our final analysis consisted of 53% female and 47% male respondents.

39

Marketing Research- Nestle Juices

Gender: Male Female

AGE Age

Valid

Frequency Less than 15 1 16-20 45 21-25 63 26-30 33 31-35 and above 36 Total 178

Percent .6 25.3 35.4 18.5 20.2 100.0

Valid Percent .6 25.3 35.4 18.5 20.2 100.0

Cumulative Percent .6 25.8 61.2 79.8 100.0

Our respondents were from different age groups including from 16 years to 35 years of age. However according to our analysis we had 35% of respondents within age group of 21-25, 25% from age group of 16-20.

40

Marketing Research- Nestle Juices

Age Less than 15 16-20 21-25 26-30 31-35 and above

41

Marketing Research- Nestle Juices

RESIDENTIAL AREA Residential Area

Valid

Frequency Gulberg 22 Defence 66 Model town 18 Cantt 15 Valencia 2 Johar Town 2 Wapda town 3 others 22 canal view society 5 punjab society 2 cavalry ground 2 Allama Iqbal Town 7 hostel 1 askari housing society 4 mason road 1 GOR 3 Gulshan-e-ravi 2 muslim town 1 Total 178

Percent 12.4 37.1 10.1 8.4 1.1 1.1 1.7 12.4 2.8 1.1 1.1 3.9 .6 2.2 .6 1.7 1.1 .6 100.0

Valid Percent 12.4 37.1 10.1 8.4 1.1 1.1 1.7 12.4 2.8 1.1 1.1 3.9 .6 2.2 .6 1.7 1.1 .6 100.0

Cumulative Percent 12.4 49.4 59.6 68.0 69.1 70.2 71.9 84.3 87.1 88.2 89.3 93.3 93.8 96.1 96.6 98.3 99.4 100.0

According to the above graph we had respondents from major areas of Lahore. Our major chunk of the respondents was from Defense which was around 37%. The second highest percentage was from Gulberg and other town. The least respondents included in the sample were from Valencia town, Johar Town, Punjab society, Cavalry ground and Gulshan-e-Ravi

42

Marketing Research- Nestle Juices

Residential Area Gulberg Defence Model town Cantt Valencia Johar Town Wapda town others canal view society punjab society cavalry ground Allama Iqbal Town hostel askari housing society mason road GOR Gulshan-e-ravi muslim town

INCOME BRACKET Which income bracket you fall in

Valid

Frequency missing 12 Less than 15000 19 16000-25000 20 26000-35000 37 36000 and above 90 Total 178

Percent 6.7 10.7 11.2 20.8 50.6 100.0

Valid Percent 6.7 10.7 11.2 20.8 50.6 100.0

Cumulative Percent 6.7 17.4 28.7 49.4 100.0

Our target market included respondents from SEC A and SEC B. So our sample also included around 50% of the respondents are from SEC A i.e. with income bracket of above Rs. 36ooo and 50 % from SEC B including respondents having income level below Rs. 36000.

43

Marketing Research- Nestle Juices

Which income bracket you fall in missing Less than 15000 16000-25000 26000-35000 36000 and above

DEGREE OF LIKING NESTLE JUICE Degree of liking Nestle

Valid

like alot like neutral dislike Total

Frequency 97 70 10 1 178

Percent 54.5 39.3 5.6 .6 100.0

Valid Percent 54.5 39.3 5.6 .6 100.0

Cumulative Percent 54.5 93.8 99.4 100.0

According to our analysis top of mind has always been Nestle Orange Juice. Around 54% of respondents showed a favorable response and said that they ‘like a lot’. 39 % respondents said that they like Nestle Orange Juice. 44

Marketing Research- Nestle Juices According to this graph we conclude that our target market Does have a favorable response towards Nestle Orange Juice. There was only a small percentage of respondents i.e. 0.6% of respondents who said that they dislike orange juice.

WHAT FLAVOR DO YOU LIKE THE MOST What flavor do you like the most

Valid

Frequency missing 2 Apple 35 Pineapple 17 Orange 56 Grapes 15 Guava 6 Mixed 10 mango 25 mango & orange 1 Chaounsa 2 Mango & chounsa 2 Pineapple & orange 7 Total 178

45

Percent 1.1 19.7 9.6 31.5 8.4 3.4 5.6 14.0 .6 1.1 1.1 3.9 100.0

Valid Percent 1.1 19.7 9.6 31.5 8.4 3.4 5.6 14.0 .6 1.1 1.1 3.9 100.0

Cumulative Percent 1.1 20.8 30.3 61.8 70.2 73.6 79.2 93.3 93.8 94.9 96.1 100.0

Marketing Research- Nestle Juices Not just that our respondents liked Nestle Juices’ they also had great preferences towards Nestle Orange Juice. Around 31% of our respondents were in favor of Nestle orange juice. And we got $to know the reasons as well in our focus groups.

What flavor do you like the most missing Apple Pineapple Orange Grapes Guava Mixed mango mango & orange Chaounsa Mango & chounsa Pineapple & orange

PRICE Price

Valid

missing Highly Satisfied Satisfied Neutral Dissatisfied Highly Disatisfied Total

Frequency 1 53 71 26 23 4 178

Percent .6 29.8 39.9 14.6 12.9 2.2 100.0

Valid Percent .6 29.8 39.9 14.6 12.9 2.2 100.0

Cumulative Percent .6 30.3 70.2 84.8 97.8 100.0

After knowing that high percentage of our respondents liked Nestle Orange Juice, we tried to analyze their perceptions regarding different attributes of the different brands. Besides being the highest priced brand 40% of the respondents were satisfied with its price. There was only a small percentage i.e. 2.2% respondents which was highly dissatisfied with the price.

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Marketing Research- Nestle Juices

Price

80

Frequency

60

40

20

0 missing

Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly Disatisfied

Price

PACKAGING Packaging

Valid

missing Highly Satisfied Satisfied Neutral Dissatisfied Highly Disatisfied Total

Frequency 1 64 86 16 8 3 178

Percent .6 36.0 48.3 9.0 4.5 1.7 100.0

Valid Percent .6 36.0 48.3 9.0 4.5 1.7 100.0

Cumulative Percent .6 36.5 84.8 93.8 98.3 100.0

After analyzing the attributes regarding packaging we found pout 48% of the respondents are satisfied with the packaging. Out of our approximately 200 respondents more than half of them were towards being satisfied with the packaging.

47

Marketing Research- Nestle Juices

Packaging

100

Frequency

80

60

40

20

0 missing

Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly Disatisfied

Packaging

QUALITY Quality

Valid

missing Highly Satisfied Satisfied Neutral Dissatisfied Highly Disatisfied 21.00 Total

Frequency 2 93 67 11 2 2 1 178

Percent 1.1 52.2 37.6 6.2 1.1 1.1 .6 100.0

Valid Percent 1.1 52.2 37.6 6.2 1.1 1.1 .6 100.0

Cumulative Percent 1.1 53.4 91.0 97.2 98.3 99.4 100.0

As per this attribute, 52% of respondents were highly satisfied with the quality of Orange Juice. As with other attributes, this attribute also had high percentage of respondents being more satisfied with the quality of Nestle Orange juice.

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Marketing Research- Nestle Juices

Quality

100

Frequency

80

60

40

20

0 missing

Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly Disatisfied

21.00

Quality

TASTE Taste

Valid

missing Highly Satisfied Satisfied Neutral Dissatisfied Highly Disatisfied Total

Frequency 1 92 62 14 5 4 178

Percent .6 51.7 34.8 7.9 2.8 2.2 100.0

Valid Percent .6 51.7 34.8 7.9 2.8 2.2 100.0

Cumulative Percent .6 52.2 87.1 94.9 97.8 100.0

According to this graph also, there was a huge percentage that is 51% which is more than a half who were highly satisfied with the taste of Nestle Orange Juice. In this case also there were more responses towards being satisfied.

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Marketing Research- Nestle Juices

Taste

100

Frequency

80

60

40

20

0 missing

Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly Disatisfied

Taste

SUGAR CONTENT Sugar free

Valid

missing Highly Satisfied Satisfied Neutral Dissatisfied Highly Disatisfied Total

Frequency 1 51 58 50 16 2 178

Percent .6 28.7 32.6 28.1 9.0 1.1 100.0

Valid Percent .6 28.7 32.6 28.1 9.0 1.1 100.0

Cumulative Percent .6 29.2 61.8 89.9 98.9 100.0

When we talked to the respondents that whether they are satisfied with Nestle Orange Juice being sugar free,32% of respondents were satisfied with Nestle Orange Juice being Sugar free.

50

Marketing Research- Nestle Juices

Sugar free

60

50

Frequency

40

30

20

10

0 missing

Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly Disatisfied

Sugar free

ADVERTISMENT Fruit content

Valid

missing Highly Satisfied Satisfied Neutral Dissatisfied Highly Disatisfied Total

Frequency 2 54 84 30 6 2 178

Percent 1.1 30.3 47.2 16.9 3.4 1.1 100.0

Valid Percent 1.1 30.3 47.2 16.9 3.4 1.1 100.0

Cumulative Percent 1.1 31.5 78.7 95.5 98.9 100.0

Talking to the respondents about Nestle Orange Juice regarding its Fruit Contents Attribute, again we received a favorable response that and found out that 47% of the respondents were satisfied with the fruit contents additions in Nestle Orange Juice.

51

Marketing Research- Nestle Juices

Fruit content

100

Frequency

80

60

40

20

0 missing

Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly Disatisfied

Fruit content

APPEALING ADVERTISEMENT Appealing Advertisment

Valid

missing Highly Satisfied Satisfied Neutral Dissatisfied Highly Disatisfied Total

Frequency 7 51 57 52 8 3 178

Percent 3.9 28.7 32.0 29.2 4.5 1.7 100.0

Valid Percent 3.9 28.7 32.0 29.2 4.5 1.7 100.0

Cumulative Percent 3.9 32.6 64.6 93.8 98.3 100.0

To know the fact that how much does appealing advertisements affect the intensions of respondents to purchase Nestle Orange Juice, and to know their degree of satisfaction level regarding advertisements of Nestle Orange Juice we found out that 32% of the respondents were satisfied with the advertisements of Nestle Orange Juice.

52

Marketing Research- Nestle Juices

Appealing Advertisment

60

50

Frequency

40

30

20

10

0 missing

Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly Disatisfied

Appealing Advertisment

FREQUENCY OF CONSUMING NESTLE ORANGE JUICE How often do you drink Nestle orange juice

Valid

Frequency missing 1 Daily 77 Weekly 44 Occasionally 45 Not Applicable 11 Total 178

Percent .6 43.3 24.7 25.3 6.2 100.0

Valid Percent .6 43.3 24.7 25.3 6.2 100.0

Cumulative Percent .6 43.8 68.5 93.8 100.0

According to our analysis, to know the consumption behavior pattern of the respondents we asked them how often do they drink nestle Orange Juice. We found out that a high percentage of respondents i.e. 43% drink Nestle orange Juice on daily basis. Students normally purchase Nestle Orange Juice from their cafeterias. And others normally used to purchased it from small town shops or where ever accessible. 53

Marketing Research- Nestle Juices

How often do you drink Nestle orange juice

80

Frequency

60

40

20

0 missing

Daily

Weekly

Occasionally

Not Applicable

How often do you drink Nestle orange juice

PURCHASE OF JUICES Where do you purchase juice from

Valid

missing Small Twon Shops Departmental Stores other both University Not Applicable School Total

Frequency 1 29 78 12 32 15 9 2 178

Percent .6 16.3 43.8 6.7 18.0 8.4 5.1 1.1 100.0

54

Valid Percent .6 16.3 43.8 6.7 18.0 8.4 5.1 1.1 100.0

Cumulative Percent .6 16.9 60.7 67.4 85.4 93.8 98.9 100.0

Marketing Research- Nestle Juices To know the purchasing behavior we asked the respondents where they do their Nestle Orange Juice purchases and we found out that major Nestle Orange juice purchases are done from departmental stores. Where do you purchase juice from

80

Frequency

60

40

20

0 missing

Small Twon Shops

Departmental Stores

other

both

University

Not Applicable

School

Where do you purchase juice from

FREQUESCY OF CONSUMING ON DAILY BASIS How many times in a day do you take Nestle orange juice

Valid

Frequency missing 29 Not Applicable 35 one time 62 two times 36 three time 10 oftenly 6 Total 178

Percent 16.3 19.7 34.8 20.2 5.6 3.4 100.0

55

Valid Percent 16.3 19.7 34.8 20.2 5.6 3.4 100.0

Cumulative Percent 16.3 36.0 70.8 91.0 96.6 100.0

Marketing Research- Nestle Juices Upon asking the respondents that how many times a day do they take Nestle Orange juice. We extracted surprising results and came to know that 34% of respondents take Nestle Orange Juice at least once a day. How many times in a day do you take Nestle orange juice

Frequency

60

40

20

0 missing

Not Applicable

one time

two times

three time

oftenly

How many times in a day do you take Nestle orange juice

CHOICE OF BARAND IF NESTLE ORANGE JUICE IS NOT AVAILABLE If Nestle orange juice is not available which other brand do you prefer

Valid

Frequency missing 4 Shezan 60 minute main 79 haleeb 4 Country 12 Others 6 Not Applicable 11 mali 1 Lacnor, mali 1 Total 178

Percent 2.2 33.7 44.4 2.2 6.7 3.4 6.2 .6 .6 100.0

56

Valid Percent 2.2 33.7 44.4 2.2 6.7 3.4 6.2 .6 .6 100.0

Cumulative Percent 2.2 36.0 80.3 82.6 89.3 92.7 98.9 99.4 100.0

Marketing Research- Nestle Juices To know the brand loyalty of nestle Orange juice, we asked our respondents that if the Nestle Orange Juice is not available which brand they prefer. We came to know that 44 % of the respondents would go for minute maid if Nestle Orange Juice is not available. 33% of the respondents said they would prefer Shezan. If Nestle orange juice is not available which other brand do you prefer

80

Frequency

60

40

20

0 missing

Shezan

minute main

haleeb

Country

Others

Not Applicable

mali

Lacnor, mali

If Nestle orange juice is not available which other brand do you prefer

LATEST ADD OF NESTLE ORANGE JUICE Have you seen the latest ad of Nestle Orange Juice

Valid

Missing Yes No Not applicable Total

Frequency 2 7 64 105 178

Percent 1.1 3.9 36.0 59.0 100.0

Valid Percent 1.1 3.9 36.0 59.0 100.0

Cumulative Percent 1.1 5.1 41.0 100.0

To check the awareness level, we asked our respondents if they had seen the latest advertisement of the Nestle Orange Juice. Besides Nestle Orange Juice being the most preferred brand and on top of mind list, our analysis revealed surprising results. We came to know that 36% that is almost a major chunk of our respondents have not seen the latest advertisement.

57

Marketing Research- Nestle Juices

Have you seen the latest ad of Nestle Orange Juice

120

100

Frequency

80

60

40

20

0 Missing

Yes

No

Not applicable

Have you seen the latest ad of Nestle Orange Juice

CONCLUSION As per our analysis we found out that when talking if juices consumers want Orange juice, not just any juice Nestlé orange Juice. However the top of mind choice of any consumer is Nestle Orange Juice, still more than 50% of the consumers are unaware of the latest advertisements, we conclude that that we need to keep on reminding the consumer of anything that is in the market otherwise consumers forget. Lack of appropriate promotion is also one of the factor that may be attributing to declining sales of Nestle Orange Juice.

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Marketing Research- Nestle Juices

CROSS TABS EFFECT OF INCOME ON CONSUMPTION OF JUICE To check whether income has any affect on the consumption of juice. By using the data obtained from questionnaire a cross tab was made to see the relationship between consumption and income. From the results of this question we can conclude of the hypothesis, stated as: Hypothesis 1: Household income has significant impact on the consumption of Juices. Do you drink juice Yes Which income bracket you fall in

Missing

Count % within Which income bracket you fall in

Less than 15000

Count % within Which income bracket you fall in

16000-25000

Count % within Which income bracket you fall in

26000-35000

Count % within Which income bracket you fall in

36000 and above

Count % within Which income bracket you fall in

Total

Count % within Which income bracket you fall in

Total

No 12

0

12

100.0%

.0%

100.0%

19

0

19

100.0%

.0%

100.0%

18

2

20

90.0%

10.0%

100.0%

37

0

37

100.0%

.0%

100.0%

89

1

90

98.9%

1.1%

100.0%

175

3

178

98.3%

1.7%

100.0%

Analysis From the above cross tab we can see that out of 178 respondents, there were only 12 questionnaires in which the respondent did not attempt this question. The rest of 166 respondents did express their opinion. 98.9% of the people who lie in the income bracket of 36000 and above do drink juice. 19 respondents out of 178 who lie in the income bracket of less than 15000 consume juice. 18 out of 178 who lie in the in the income bracket of 16000 to 25000 consume juice and 37 out of 178 who lie in the income bracket of 26000 to 35000 consume juices. The table shows that there are only 3 respondents who do not consume juice, the rest of 75 respondents consume juices 59

Marketing Research- Nestle Juices Therefore from this table we can conclude that the consumption of juice depends upon the income bracket in which the individual lies. Results This finding supports our Hypothesis and we accept that income has significant impact on the consumption of juices.

EFFECT OF GENDER ON DEGREE OF LIKING NESTLE ORANGE JUICE To check whether gender has any impact on the degree of liking of Nestle orange juice. In the questionnaire the questions were asked regarding the degree of liking of Nestle orange juice. By using the data obtained from questionnaire a cross tab was made to see the relationship between gender and degree of liking of Nestle Orange juice. From the results of this questionnaire the following hypothesis was concluded: Hypothesis 2: A significant relationship exists between gender and degree of liking of Nestle Orange Juice Degree of liking Nestle Orange Juice like alot Gender

Male

Count % within Gender

Female

Count % within Gender

Total

Count % within Gender

Like

Neutral

Total

dislike

46

33

5

0

84

54.8%

39.3%

6.0%

.0%

100.0%

51

37

5

1

94

54.3%

39.4%

5.3%

1.1%

100.0%

97

70

10

1

178

54.5%

39.3%

5.6%

.6%

100.0%

Analysis From the above cross tab between gender and degree of liking of Nestle orange juice we can see that out of 178 there were 84 male respondents and 94 female respondents who were included in the sampling frame. Out of 84 male respondents 54.8% like Nestle Orange juice a lot and 33.9% only like Nestle orange juice. The table shows that there were no male respondents who dislike Nestle Orange juice. Out of 94 female respondents 54.3% of the respondents like Nestle Orange juice a lot, 39.4% of the female respondents like the taste of Nestle Orange juice and only 1.1% that is there was only one female respondent who said that she did not like Nestle Orange juice. Therefore from this table we cannot fully conclude that gender has significant affect on the degree of liking of Nestle orange juice.

60

Marketing Research- Nestle Juices Results The findings from the cross tab does not fully support the hypothesis that gender has significant impact on the degree of liking of Nestle Orange juice

EFFECT OF AGE ON CONSUMPTION OF NESTLE ORANGE JUICE To check whether age has any impact on the consumption of Nestle orange juice. In the questionnaire the questions were asked regarding the age bracket in which the respondent falls and does the respondent consume Nestle orange juice. By using the data obtained from questionnaire a cross tab was made to see the relationship between age and consumption of Nestle Orange juice. From the results of this questionnaire the following hypothesis was concluded: Hypothesis 3: A significant relationship exists between age and consumption of Nestle Orange Juice How often do you drink Nestle orange juice missing Age

Less than 15

Count % within Age

16-20

Count % within Age

21-25

Count % within Age

26-30

Count % within Age

31 and above

Count % within Age

Total

Count % within Age

Daily

Weekly

Occasionally

Total

Not Applicable

Missing

0

1

0

0

0

1

.0%

100.0%

.0%

.0%

.0%

100.0%

0

21

10

12

2

45

.0%

46.7%

22.2%

26.7%

4.4%

100.0%

0

25

19

12

7

63

.0%

39.7%

30.2%

19.0%

11.1%

100.0%

0

13

7

13

0

33

.0%

39.4%

21.2%

39.4%

.0%

100.0%

1

17

8

8

2

36

2.8%

47.2%

22.2%

22.2%

5.6%

100.0%

1

77

44

45

11

178

.6%

43.3%

24.7%

25.3%

6.2%

100.0%

Analysis From the above cross tab between age and consumption of Nestle orange juice we can see that out of 178 there was only one respondent who did not respond to this question. Out of a total of 61

Marketing Research- Nestle Juices 36 respondents who fall in the age bracket of 31 and above 47.2% of the respondents said that they consume Nestle Orange juice on a daily basis, 22.2% stated that consume Nestle Orange juice on a weekly basis and 22.2% stated that consume Nestle Orange juice occasionally. Out of 33 respondents who fall in the age bracket of 26-30, 39.4% stated that they consume Nestle orange juice on a daily basis, 21.2% said that they consume Nestle orange juice on weekly basis and 39.4% said that they consume Nestle orange juice on occasional basis. Out of 63 respondents who fall in the age bracket of 21-25, 39.7% stated that they consume Nestle orange juice on a daily basis, 30.2% said that they consume Nestle orange juice on weekly basis and 19% said that they consume Nestle orange juice on occasional basis. Out of 45 respondents who fall in the age bracket of 16-20, 46.7% stated that they consume Nestle orange juice on a daily basis, 22.2% said that they consume Nestle orange juice on weekly basis and 26.7% said that they consume Nestle orange juice on occasional basis. There was only one respondent in the age bracket of less than 15 who consumed Nestle Orange juice but that too on occasional basis.

Therefore from this table we cannot fully conclude that Age has significant affect on the consumption of Nestle orange juice because the target market for Nestle orange juice is between 19 and 31. Our findings also confirm that most of the respondents consuming Nestle Orange juice lie in this age bracket.

62

Marketing Research- Nestle Juices Results The findings from the cross tab fully supports our hypothesis that age has significant impact on the consumption of Nestle Orange juice.

EFFECT OF TASTE ON CONSUMPTION OF NESTLE ORANGE JUICE To check whether taste has any affect on the consumption of Nestle orange juice. In the questionnaire the question was asked, if the consumers like the taste of Nestle orange juice or not. By using the data obtained from questionnaire a cross tab was made to see the relationship between consumption and taste. From the results of this question we can conclude of the hypothesis, stated as: Hypothesis 4: Significant relationship exists between the Taste of Nestle Orange Juice and consumption of Nestle Orange Juice. How often do you drink Nestle orange juice TASTE OF NESTLE ORANGE JUICE Missing Missing

Count % within What do you think about the taste of Nestle orange juice

Very good

Count % within What do you think about the taste of Nestle orange juice

Good

Count % within What do you think about the taste of Nestle orange juice

Neutral

Count % within What do you think about the taste of Nestle orange juice

Bad

Count % within What do you think about the taste of Nestle orange juice

Very Bad

Count % within What do you think about the taste of Nestle orange juice

Daily

Weekly

Occasionally

Total Not Applicable

Missing

1

1

0

0

0

2

50.0%

50.0%

.0%

.0%

.0%

100.0%

0

40

20

8

0

68

.0%

58.8%

29.4%

11.8%

.0%

100.0%

0

25

21

21

1

68

.0%

36.8%

30.9%

30.9%

1.5%

100.0%

0

5

3

5

1

14

.0%

35.7%

21.4%

35.7%

7.1%

100.0%

0

4

0

5

0

9

.0%

44.4%

.0%

55.6%

.0%

100.0%

0

2

0

6

2

10

.0%

20.0%

.0%

60.0%

20.0%

100.0%

63

Marketing Research- Nestle Juices Not applicable

Count % within What do you think about the taste of Nestle orange juice Total Count % within What do you think about the taste of Nestle orange juice

0

0

0

0

7

7

.0%

.0%

.0%

.0%

100.0%

100.0%

1

77

44

45

11

178

.6%

43.3%

24.7%

25.3%

6.2%

100.0%

Analysis From the above cross tab we can see that out of 178 respondents, there were only two questionnaires in which the respondent did not attempt. In the rest of 177 questionnaires the respondents did express their opinion. Out of 68 respondents who believe that the taste of Nestle orange juice is very good 58.8% respondents consumed Nestle orange juice on a daily basis, 24.4% on a weekly basis and 11.8 % consumed Nestle orange juice on occasional basis. Out of 68 respondents who believe that the taste of Nestle orange juice is good 36.8% respondents consumed Nestle orange juice on a daily basis, 30.9% on a weekly basis and 30.9 % consumed Nestle orange juice on occasional basis. Out of 9 respondents who believe that the taste of Nestle orange juice is bad 44.4% (4 respondents) respondents consumed Nestle orange juice on a daily basis and 55.6 % (5 respondents) consumed Nestle orange juice on occasional basis. Out of 10 respondents who believe that the taste of Nestle orange juice is very bad 20% respondents consumed Nestle orange juice on a daily basis, 24.4% on a weekly basis and 60 % consumed Nestle orange juice on occasional basis. There were a total of 7 respondents for whom this question was not applicable.

64

Marketing Research- Nestle Juices Therefore from this table we can conclude that the consumption of Nestle Orange juice depends upon taste of Nestle orange juice as most of the people do like the taste of Nestle orange juice

Results This finding supports our Hypothesis and we accept that taste has significant impact on the consumption of Nestle Orange juice.

EFFECT OF PRICE ON CONSUMPTION OF NESTLE ORANGE JUICE To check whether price has any affect on the consumption of Nestle orange juice. In the questionnaire the question was asked, if the consumers were satisfied with the price Nestle orange juice or not. By using the data obtained from questionnaire a cross tab was made to see the relationship between price if Nestle Orange juice and consumption of Nestle Orange juice. From the results of this question we can conclude of the hypothesis, stated as: Hypothesis 5: Significant relationship exists between the Price of Nestle Orange Juice and consumption of Nestle Orange Juice. Consumption of Nestle orange juice Missing Price

Missing

Count % within Price

Very Important

Count % within Price

Important

Count % within Price

Neutral

Count % within Price

Not Important

Count % within Price

Not At Important

All

Count % within Price

Total

Count % within Price

Daily

Weekly

Total

Occasionally

Not Applicable

missing

0

0

0

1

0

1

.0%

.0%

.0%

100.0%

.0%

100.0%

0

33

16

3

1

53

.0%

62.3%

30.2%

5.7%

1.9%

100.0%

0

30

18

18

5

71

.0%

42.3%

25.4%

25.4%

7.0%

100.0%

0

7

2

14

3

26

.0%

26.9%

7.7%

53.8%

11.5%

100.0%

1

6

8

6

2

23

4.3%

26.1%

34.8%

26.1%

8.7%

100.0%

0

1

0

3

0

4

.0%

25.0%

.0%

75.0%

.0%

100.0%

1

77

44

45

11

178

.6%

43.3%

24.7%

25.3%

6.2%

100.0%

65

Marketing Research- Nestle Juices Analysis From the above cross tab we can see that out of 178 respondents, there were 12 questionnaires in which the respondent did not attempt this question. Out of 53 respondents 62.3% who consume Nestle orange juice on a daily basis considered price as very important factor while purchasing Nestle Orange juice. Out of 71 respondents 42.3% who consume Nestle orange juice on a daily basis considered price as an important factor while purchasing Nestle Orange juice. Out of 27 respondents who consume Nestle orange juice 26.1% respondents considered price not an important factor while purchasing Nestle orange juice.

Therefore from this table we can conclude that price was an important factor that was considered while consuming Nestle Orange juice. Results This finding supports our Hypothesis and we accept that price has significant impact on the consumption of Nestle Orange juice.

EFFECT OF ADVERTISEMENT ON CONSUMPTION OF NESTLE ORANGE JUICE To check whether advertisements have any affect on the consumption of Nestle orange juice. In the questionnaire the question was asked, if the consumers were satisfied with the advertising of Nestle orange juice or not. By using the data obtained from questionnaire a cross tab was made

66

Marketing Research- Nestle Juices to see the relationship between advertising and consumption of Nestle Orange juice. From the results of this question we can conclude of the hypothesis, stated as: Hypothesis 6: Significant relationship exists between the Appealing Advertisement of Nestle Orange Juice and consumption of Nestle Orange Juice.

Consumption of Nestle orange juice missing Appealing Advertisement

Missing

Count % within Appealing Advertisement

Very important

Important

Neutral

Unimportant

0

3

.0%

66.7%

33.3%

.0%

.0%

100.0%

0

36

10

12

4

62

.0%

58.1%

16.1%

19.4%

6.5%

100.0%

0

19

15

14

0

48

.0%

39.6%

31.3%

29.2%

.0%

100.0%

1

14

16

15

5

51

2.0%

27.5%

31.4%

29.4%

9.8%

100.0%

0

2

2

3

0

7

.0%

28.6%

28.6%

42.9%

.0%

100.0%

0

4

0

1

2

7

.0%

57.1%

.0%

14.3%

28.6%

100.0%

1

77

44

45

11

178

.6%

43.3%

24.7%

25.3%

6.2%

100.0%

Count % within Appealing Advertisement

Total

0

Count % within Appealing Advertisement

Very unimportant

1

Count % within Appealing Advertisement

Count % within Appealing Advertisement

Occasionally

2

Count % within Appealing Advertisement

Weekly

0

Count % within Appealing Advertisement

Daily

Total

Not Applicable

Analysis From the above cross tab we can see that out of 178 respondents, there were 12 questionnaires in which the respondent did not attempt this question. The table shows that 58.1% of respondents who consume Nestle Orange Juice on a daily basis feel that appealing advertisement is very important, 39.6% feel that appealing advertisement is important, 28.6% feel that appealing advertisement is not at all important. Those consumers who consume Nestle Orange juice on a weekly basis 16.1% feel that appealing advertisement is very important, 31.3 percent feel that appealing advertisement is important and 28.6% feel that appealing advertisement is not important for consumption of Nestle orange juice.

67

Marketing Research- Nestle Juices

Therefore from this table we can conclude that Appealing advertisement was an important factor considered while consuming Nestle Orange juice.

Results This finding supports our Hypothesis and we accept that appealing advertisement has significant impact on the consumption of Nestle Orange juice.

EFFECT OF LIKING NESTLE JUICE ON LIKING NESTLE ORANGE JUICE To check whether the degree of liking Nestle Juice have any impact on the degree of liking Nestle Orange Juice. In the questionnaire the question was asked, to the consumers Nestle juices and the degree to which they liked orange flavor. By using the data obtained from questionnaire a cross tab was made to see the relationship between degree of liking nestle juice to degree of liking Nestle orange juice. From the results of this question we can conclude of the hypothesis, stated as:

Hypothesis 7: 68

Marketing Research- Nestle Juices Degree of liking Nestle juice has any impact on the degree of liking Nestle orange juice. Degree of liking Orange Degree of liking Nestle Juice

like alot

Like

Count % within Degree of liking Nestle Juice Count % within Degree of liking Nestle Juice

Neutral

Count % within Degree of liking Nestle Juice

Dislike

Count % within Degree of liking Nestle Juice

Total

Count % within Degree of liking Nestle Juice

like alot 49

like 26

neutral 14

50.5%

26.8%

22

Total

dislike 5

dislike alot 3

like alot 97

14.4%

5.2%

3.1%

100.0%

37

3

3

5

70

31.4%

52.9%

4.3%

4.3%

7.1%

100.0%

6

2

0

1

1

10

60.0%

20.0%

.0%

10.0%

10.0%

100.0%

0

0

0

1

0

1

.0%

.0%

.0%

100%

.0%

100.0%

77

66

17

9

9

178

43.3%

37.1%

9.6%

5.1%

5.1%

100.0%

Analysis From the above cross tab we can see that out of 178 respondents attempted this question. The table shows that 50.5% of respondents who like Nestle Juice to a large extent also like a lot the orange flavor of Nestle juice. 26.8% of respondents who like Nestle Juice to a large extent also like the orange flavor of Nestle juice. Only 3.1% of respondents who like Nestle Juice to a large extent also dislike the orange flavor of Nestle juice. 31.4% of respondents who like Nestle Juice also like a lot the orange flavor of Nestle juice. 52.9% of respondents who like Nestle Juice also like the orange flavor of Nestle juice. 4.3% of respondents who like Nestle Juice also dislike like the orange flavor of Nestle juice. There was only one respondent who disliked Nestle Juices and also disliked the orange flavor of Nestle juices.

69

Marketing Research- Nestle Juices

Therefore from this table we can conclude that those people who like Nestle juices also like Nestle Orange juices as well. Results This finding supports our Hypothesis and we accept that degree of liking Nestle juices has significant impact on the degree of liking Nestle Orange juice.

EFFECT OF TASTE ON DEGREE OF LIKING SHEZAN To check whether the taste any impact on the degree of liking Shezan Orange Juice. In the questionnaire the question was asked, regarding the taste of Shezan and degree of likeness for Shezan. By using the data obtained from questionnaire a cross tab was made to see the relationship between taste and degree of liking Shezan. From the results of this question we can conclude of the hypothesis, stated as: Hypothesis 8: A significant relationship exists between Taste and Degree of liking Shezan juice.

degree of liking Shezan

70

Total

Marketing Research- Nestle Juices missing Taste

Missing

Count % within Taste

Highly Satisfied

Count % within Taste

Satisfied

Count % within Taste

Neutral

Count % within Taste

Dissatisfied

Count % within Taste

Highly Dissatisfied

Count % within Taste

Total

Count % within Taste

like alot

like

neutral

dislike

0 .0%

1 33.3%

0 .0%

1 33.3%

1 33.3%

dislike a lot 0 .0%

missing

0

13

18

3

0

0

34

.0%

38.2%

52.9%

8.8%

.0%

.0%

100.0%

1

10

26

22

2

0

61

1.6%

16.4%

42.6%

36.1%

3.3%

.0%

100.0%

3

1

16

20

6

3

49

6.1%

2.0%

32.7%

40.8%

12.2%

6.1%

100.0%

3 100.0%

0

1

4

7

6

4

22

.0%

4.5%

18.2%

31.8%

27.3%

18.2%

100.0%

0

0

3

1

3

1

8

.0%

.0%

37.5%

12.5%

37.5%

12.5%

100.0%

4

26

67

54

18

8

178

2.3%

14.7%

37.9%

30.5%

10.2%

4.5%

100.0%

Analysis From the above cross tab we can see that out of 178 respondents attempted this question. The table shows that 38.2% of respondents who like Shezan Juice to a large extent were also highly satisfied with the taste of Shezan Orange juice. 16.4% of respondents who like Shezan Juice to a large extent were also satisfied with the taste of Shezan Orange juice. There were only 4.5% of respondents who like Shezan Juice to a large extent but were dissatisfied with the taste of Shezan Orange juice. There were only 27.3% of the respondents who did not like Shezan juice and were also dissatisfied with the taste of Shezan juice

71

Marketing Research- Nestle Juices Therefore from this table we can conclude that those people who like Shezan juices were also satisfied with the Taste of Shezan juices as well. Results This finding supports our Hypothesis and we accept that taste significant impact on the degree of liking Shezan Orange juice.

SATISFACTION OF CONSUMERS WITH THE PACKAGING OF NESTLE ORANGE JUICE To check whether different types of Nestle orange juice consumers are satisfied with the packaging of nestle juice or not? By using the data obtained from questionnaire a cross tab was made to see the relationship between the types of consumers of the juice and their level of satisfaction with the packaging of the juice. From the results of this question we can conclude of the hypothesis, stated as: Hypothesis 9: A significant relationship exists between the degree of satisfaction of consumers with the packaging of the Nestle Orange juice. Satisfaction with Packaging of Nestle Juice Yes Main Customers Of Nestle

College Students

Count % within Main Customers Of Nestle

House Wife's

Count % within Main Customers Of Nestle

Servants

Count % within Main Customers Of Nestle

OTHERS

Count % within Main Customers Of Nestle

C&H

Count % within Main Customers Of Nestle

H&S

Count % within Main Customers Of Nestle

All

Count

72

No

Missing

Total Yes

12

1

2

15

80.0%

6.7%

13.3%

100.0%

12

3

0

15

80.0%

20.0%

.0%

100.0%

4

2

0

6

66.7%

33.3%

.0%

100.0%

1

2

0

3

33.3%

66.7%

.0%

100.0%

5

0

0

5

100.0%

.0%

.0%

100.0%

2

0

0

2

100.0%

.0%

.0%

100.0%

11

0

0

11

Marketing Research- Nestle Juices % within Main Customers Of Nestle C&S

Count % within Main Customers Of Nestle

Total

Count % within Main Customers Of Nestle

100.0%

.0%

.0%

100.0%

2

0

0

2

100.0%

.0%

.0%

100.0%

49

8

2

59

83.1%

13.6%

3.4%

100.0%

Analysis From the above cross tab we can see that as per the distributors 80% of the college students, that is the majority, are satisfied with the packaging of the juice, also as per the distributors 80% of the house wives are also satisfied with Nestle orange Juice’s packaging, 66.7% of the servants are satisfied while relatively lower percentage of 33.3% of the servants are unsatisfied with the packaging. The remaining types of consumers have been lumped under the category of ‘Others’. So the table shows that the majority of these remaining types of consumers are dissatisfied with the packaging of Nestle Orange juice. However if we look at the students, housewives and the servants in pairs then we can see clearly that they are all satisfied with the packaging. Therefore from this table we can clearly conclude over all the various sorts of consumers of Nestle are satisfied with the packaging of the juice.

Results The findings from the cross tab supports the hypothesis and we can say that majority of the various sorts of Nestle Orange consumers are satisfied with it’s packaging.

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Marketing Research- Nestle Juices

RETAILER ANALYSIS ANALYSIS OF RESPONSES TO GENERAL QUESTIONS We collected responses from 60 retailers, to know what they say about the declining sales of Nestle Orange Juice. As retailers are supposed to have direct contact with customers, they receive daily complaints directly from the customers. So their input was of great importance.

LOCATION OF RETAILERS Location

Valid

No Response Defense Gulberg Cantt Link Road Bhatta Chock badian ANARKALI SHADMAN CAVELRY Total

Frequency 1 12 10 7 8 7 1 3 5 5 59

Percent 1.7 20.3 16.9 11.9 13.6 11.9 1.7 5.1 8.5 8.5 100.0

Valid Percent 1.7 20.3 16.9 11.9 13.6 11.9 1.7 5.1 8.5 8.5 100.0

Cumulative Percent 1.7 22.0 39.0 50.8 64.4 76.3 78.0 83.1 91.5 100.0

We selected retailers from major areas of Lahore for our analysis. Out of the 60 retailers, 20% were from defence because as per our literature search we found out that defence is major sales generating area of Lahore in case of Nestle Orange Juices. So our major retailers were from 3 areas that is defence, Gulberg and Cantt. We had 20% of the retailers from defence, 16.9% from Gulberg and 11.9% from Cantt area.

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Marketing Research- Nestle Juices

Location No Response Defense Gulberg Cantt Link Road Bhatta Chock badian ANARKALI SHADMAN CAVELRY

DEGREE OF SATISFACTION WITH PACKAGING OF NESTLE ORANGE JUICE Satisfaction with Packaging of Nestle Juice

Valid

Yes No 3 Total

Frequency 49 8 2 59

Percent 83.1 13.6 3.4 100.0

Valid Percent 83.1 13.6 3.4 100.0

Cumulative Percent 83.1 96.6 100.0

According to the question posed to retailers regarding packaging of Nestle Orange Juice, we found a favorable response towards packaging by 83% of the retailers being satisfied by the packaging of Nestle Orange Juice.

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Marketing Research- Nestle Juices

Satisfaction with Packaging of Nestle Juice Yes No 3

MAJOR COMPETITORS OF NESTLE ORANGE JUICE Major Competitor of Nestle Orange Juice

Valid

Minute Maid Shezan Haleeb Others All M&S S&H M&H Total

Frequency 16 17 3 1 6 5 9 2 59

Percent 27.1 28.8 5.1 1.7 10.2 8.5 15.3 3.4 100.0

Valid Percent 27.1 28.8 5.1 1.7 10.2 8.5 15.3 3.4 100.0

Cumulative Percent 27.1 55.9 61.0 62.7 72.9 81.4 96.6 100.0

We asked the retailers to tell us about the major competitors of Nestle Orange Juice so as to know what May be the reason attributed by the retailers to the declining sales of Nestle Orange Juice. Retailers marked Shezan and Minute Maid as being the major competitors where the consumer is most likely to witch to. 28.8% of the retailers ranked Shezan as top competitors;

76

Marketing Research- Nestle Juices Minute Maid being a newly launched Orange Juice has also been marked as second major competitors by 27.1% of the retailers. Major Competitor of Nestle Orange Juice Minute Maid Shezan Haleeb Others All M&S S&H M&H

DURATION IN RETAIL BUSINESS Duration in Retail Busines

Valid

Frequency One Year 17 Two Years 27 Three Years 6 Others 9 Total 59

Percent 28.8 45.8 10.2 15.3 100.0

77

Valid Percent 28.8 45.8 10.2 15.3 100.0

Cumulative Percent 28.8 74.6 84.7 100.0

Marketing Research- Nestle Juices The number of years spent in a particular business is one of the important attribute, as old is a retail store, more it is known by the community. We selected those retailers who were at least in the retailing business for more than a year. As per our analysis 45.8 % of the retailers were in their current business since two years. 28.8 % of retailers were in the said business for around a year and 10.2% for three years. Duration in Retail Busines

50

Percent

40

30

20

10

0 One Year

Two Years

Three Years

Others

Duration in Retail Busines

REGULAR SUPPLY OF NESTLE ORANGE JUICE Supplies of Nestle Orange Juice

Valid

Yes No Total

Frequency 26 33 59

Percent 44.1 55.9 100.0

78

Valid Percent 44.1 55.9 100.0

Cumulative Percent 44.1 100.0

Marketing Research- Nestle Juices We asked the retailers about whether they get timely and sufficient supply of Nestle Orange Juice, and surprising results were revealed. 55.9% of the retailers replied that they do not receive timely and sufficient supply from Nestle. This comprises of more than a half of the retailers who are not getting supply of nestle Orange juices as desired by them. Supplies of Nestle Orange Juice

60

50

Percent

40

30

20

10

0 Yes

No

Supplies of Nestle Orange Juice

AFFECT OF PRICE CHANGE ON SALES Affect of Price changes on sales

Valid

Yes No Total

Frequency 28 31 59

Percent 47.5 52.5 100.0

79

Valid Percent 47.5 52.5 100.0

Cumulative Percent 47.5 100.0

Marketing Research- Nestle Juices In 2008, the price of nestle Orange Juice has also been raised. We asked the retailers about their Responses regarding this aspect. We asked the retailers whether increase In price effects the sales or not. 47.5% of the retailers responded that the change has affected the sales. This is almost half of the retailers saying so. However rest of there retailers said that it did not effected their sales. Affect of Price changes on sales

60

50

Percent

40

30

20

10

0 Yes

No

Affect of Price changes on sales

NESTLE CHILLERS

Frequency Valid

Percent

Valid Percent

Cumulative Percent

Yes

26

44.1

44.1

44.1

No

33

55.9

55.9

100.0

Total

59

100.0

100.0

While we surveyed the distributors we found out that 44.1% of the distributors had proper Nestle chillers available with them where they had placed Orange Juice to cool down and from these 80

Marketing Research- Nestle Juices chillers consumers were being provided cool and chilled packs of Nestle orange juice. Also as it is evident from the table and the graph as well that 55.9% of the distributors did not have Nestlé’s supplied chillers.

PACKAGING OF NESTLE JUICES WHICH SELLS THE MOST Frequency Valid

Percent

Valid Percent

Cumulative Percent

200 ml

18

30.5

30.5

30.5

1000 ml

21

35.6

35.6

66.1

Both

20

33.9

33.9

100.0

Total

59

100.0

100.0

Also during our study we tried to figure out that as per the distributors, what package size of Nestle orange juice is being sold the most. From the survey results we found out that the sales of both 200ml and 1000 ml packs were almost the same. 200ml had 30.5% sales rate while 1000ml had a 35.6% sales rate. The difference is very small and thus we can see and conclude that both 200ml and 1000ml packs of Nestle Orange Juice are equally popular with the people and people are in need of and buy both sizes. The demand of 1000ml is slightly more that 200ml but this difference is very small and is almost negligible.

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Marketing Research- Nestle Juices

CONCLUSION As all the questionnaires were administered by us, we came across certain findings other than our questionnaires. We recorded those findings as: Retailers had biggest supply problem. They said that the only thing that is hindering the sales is lack of timely supply as well as insufficient supply. They say that demand is very much higher than the supply received. Also, they said that there is a low availability of chillers from Nestle. Juices are preferred when they are properly chilled, especially in case of Nestle Orange Juice; its taste is bitter so it gives the best taste when chilled. It has a ridiculous taste if hot. According to the retailers this also is the problem adding to declining sales.

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Marketing Research- Nestle Juices

CROSS TABS PREFERENCE OF RETAILERS TO STOCK NESTLE ORANGE JUICE To check whether the retailers like to stock Nestle Juices at their outlets or not? In the questionnaire, pertaining to the retailers, questions were asked regarding whether the retailers keep stock of Nestle Orange Juice with them or not? By using the data obtained from questionnaire a cross tab was made to see the relationship between the brands Nestle and in particular it’s orange juice and between the counts of stocks the retailers hold with them. From the results of this questionnaire the following hypothesis was concluded: Hypothesis 1: A significant relationship exists between Nestle brand juices and preference to stock then by the Retailers. Stock Juices Yes Juices Brand (Nestle)

Yes

Count % within Juices Brand (Nestle)

No

Count % within Juices Brand (Nestle)

Missing

Count % within Juices Brand (Nestle)

Total

Count % within Juices Brand (Nestle)

Total

No

Yes

39

12

51

76.5%

23.5%

100.0%

4

3

7

57.1%

42.9%

100.0%

0

1

1

.0%

100.0%

100.0%

43

16

59

72.9%

27.1%

100.0%

Analysis: From the above cross tab between Nestle Orange juice and count of stock we can see that out of a total of 100% supplies of Nestle, 76.5% retailers stock Nestle Juices and only 23.5% retailers do not stock Nestle Juice. Therefore from this table we can see clearly that retailers like to place Nestle Juice and like to stock it with them.

83

Marketing Research- Nestle Juices

Results: The findings from the cross tab does fully support the hypothesis and we can say safely that retailers like to stock a significant amount of Nestle Orange Juice with them.

PREFERENCE BY RETAILERS TO STOCK SHEZAN ORANGE JUICE To check whether the retailers like to stock Shezan Juices at their outlets or not? In the questionnaire, pertaining to the retailers, questions were asked regarding whether the retailers keep stock of Shezan Orange Juice with them or not? By using the data obtained from questionnaire a cross tab was made to see the relationship between the brand Shezan ’s orange juice and between the count of stocks the retailers hold with them. From the results of this questionnaire the following hypothesis was concluded: Hypothesis 2: A significant relationship exists between Shezan brand juices and preference to stock then by the Retailers. Stock Juices Yes Juices Brand (Shezan)

Yes

Count % within Juices Brand (Shezan)

No

Count

84

Total

No

Yes

34

9

43

79.1%

20.9%

100.0%

9

7

16

Marketing Research- Nestle Juices % within Juices Brand (Shezan) Total

Count % within Juices Brand (Shezan)

56.3%

43.8%

100.0%

43

16

59

72.9%

27.1%

100.0%

Analysis From the above cross tab between Shezan Orange juice and count of stock we can see that out of a total of 100% supplies of Shezan Orange juice, 79.1% retailers Shezan Juices while 20.9% do not stock Shezan juices. Therefore from this table we can see clearly that retailers also like to place Shezan orange Juice with them.

Results The findings from the cross tab supports the hypothesis and we can say that retailers like to stock a Shezan Orange Juice with them.

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Marketing Research- Nestle Juices

PREFERENCE BY RETAILERS TO STOCK MINUTE MAID JUICE To check whether the retailers like to stock Minute Maid at their outlets or not? In the questionnaire, pertaining to the retailers, questions were asked regarding whether the retailers keep stock of Minute Maid with them or not? By using the data obtained from questionnaire a cross tab was made to see the relationship between the brand Minute Maid and between the count of stocks the retailers hold with them. From the results of this questionnaire the following hypothesis was concluded: Hypothesis 3: A significant relationship exists between Minute Maid juices and preference to stock then by the Retailers. Stock Juices Yes Juices Brand (Minute Maid)

Yes

Count % within Juices Brand (Minute Maid)

No

Count % within Juices Brand (Minute Maid)

Total

Count % within Juices Brand (Minute Maid)

Total

No

Yes

16

7

23

69.6%

30.4%

100.0%

27

9

36

75.0%

25.0%

100.0%

43

16

59

72.9%

27.1%

100.0%

Analysis From the above cross tab between Minute Maid and count of stock we can see that out of a total of 100% supplies of Minuet Maid, 69.6% of retailers stock Minute Maid while 30.4% of retailers do not stock Minute Maid. Therefore from this table we can see clearly that retailers also like to place Minute maid with them.

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Marketing Research- Nestle Juices

Results The findings from the cross tab supports the hypothesis and we can say that retailers also like to stock Minute Maid with them.

RELATION OF ADVERTISEMENT WITH SALE OF NESTLE ORANGE JUICE To check whether this hypothesis is true or not, we tried to see the relationship between the appealing advertisement and the sale of Nestle Orange Juice. Hypothesis 4: There is a significant relationship between sales and appealing advertisement of Nestle Orange Juice.

Sale Of Nestle Orange Juice Appealing

YES

Count

87

YES

NO

9

14

Total 23

Marketing Research- Nestle Juices Advertisement

% within Appealing Advertisement

39.1%

60.9%

100.0%

Count

29

17

46

% within Appealing Advertisement

63.0%

37.0%

100.0%

Count

38

31

69

% within Appealing Advertisement

55.0%

45.0%

100.0%

NO

Total

Analysis The table shows that 69 retailers were questioned regarding the appealing advertisement of Nestle Orange Juice. The table shows that 60.9% of retailers believe that appealing advertisement will not have an effect on sales of Nestle Orange Juice. Only 39.1% said that appealing advertisement will have an effect on the sales of Nestle Orange juice Result: In short our hypothesis is not supported

EFFECT OF SALES OF NESTLE ORANGE JUICE ON PROFIT MARGIN To check whether sales has any impact on the profit margin of Nestle orange juice. In the questionnaire the questions were asked regarding the sales pattern of Nestle orange juice that is whether the sales are high or low. By using the data obtained from questionnaire a cross tab was made to see the relationship between the sales of Nestle orange juice and the Profit margin of Nestle Orange juice. From the results of this questionnaire the following hypothesis was concluded: Hypothesis 5: A significant relationship exists between the sales and the profit margin of Nestle Orange Juice Profit Margin Per Pack Most Sold Brand of Orange Juice (Nestle)

Highest Sales

Count % within Most Sold Brand of Orange Juice (Nestle)

Lowest Sales

Count % within Most Sold Brand of Orange Juice (Nestle)

88

Per Carton

Total Both

Per Pack

5

31

8

44

11.4%

70.5%

18.2%

100.0%

2

2

11

15

13.3%

13.3%

73.3%

100.0%

Marketing Research- Nestle Juices Total

Count % within Most Sold Brand of Orange Juice (Nestle)

7

33

19

59

11.9%

55.9%

32.2%

100.0%

Analysis From the above cross tab between sales and the profit margin of Nestle orange juice we can see that amongst the group of retailers who are experiencing highest sales of nestle orange juice, 11.4% say that the resultant profit margin of this high sale is due to pack sales while 70.5% say that the profit margin is due to carton sales while 18.2% of them attribute the high profit margin sales to the sales of both pack and carton sales. The table also shows that those retailers who are experiencing low sales of Nestle Orange juice amongst those retailers 13.3% of the retailers say that their low profit margin is due to pack juices, the same percent that is 13.3% say that it is due to carton sales while 73.3% of the retailers attribute this low sales to both pack and carton sales. Therefore from this table we can conclude that when there are sales in bulk, that is, in cartons it results in high profit margin.

Results The findings from the cross tab supports the hypothesis and we can say that as the sales of Nestle Orange juice rises up, the resultant profit margin also goes up so we accept the hypothesis.

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Marketing Research- Nestle Juices

EFFECT OF SALES OF SHEZAN ORANGE JUICE ON PROFIT MARGIN To check whether sales has any impact on the profit margin of Shezan orange juice. In the questionnaire the questions were asked regarding the sales pattern of Shezan orange juice that is whether the sales are high or low. By using the data obtained from questionnaire a cross tab was made to see the relationship between the sales of Shezan orange juice and the Profit margin of Shezan Orange juice. From the results of this questionnaire the following hypothesis was concluded: Hypothesis 6: A significant relationship exists between the sales and the profit margin of Shezan Orange Juice Profit Margin Per Pack Most Sold Brand of Orange Juice (Shezan)

Highest Sales

Count % within Most Sold Brand of Orange Juice (Shezan)

Lowest Sales

Count % within Most Sold Brand of Orange Juice (Shezan)

Total

Count % within Most Sold Brand of Orange Juice (Shezan)

Per Carton

Total Both

Per Pack

3

12

10

25

12.0%

48.0%

40.0%

100.0%

4

21

9

34

11.8%

61.8%

26.5%

100.0%

7

33

19

59

11.9%

55.9%

32.2%

100.0%

Analysis From the above cross tab between sales and the profit margin of Shezan orange juice we can see that amongst the group of retailers who are experiencing highest sales of Shezan orange juice, 12% say that the resultant profit margin of this high sale is due to pack sales while 48% say that the profit margin is due to carton sales while 40% of them attribute the high profit margin sales to the sales of both pack and carton sales. The table also shows that those retailers who are experiencing low sales of Shezan Orange juice amongst those retailers 11.8% of the retailers say that their low profit margin is due to pack juices, 61.8% say that it is due to carton sales while 26.5% of the retailers attribute this low sales to both pack and carton sales. Therefore from this table we can conclude that when there are sales in bulk, that is, in cartons it results in high profit margin.

90

Marketing Research- Nestle Juices

Results: The findings from the cross tab supports the hypothesis and we can say that as the sales of Shezan Orange juice rises up, the resultant profit margin also goes up so we accept the hypothesis.

EFFECT OF PRICE CHANGE ON PROFIT MARGIN OF NESTLE ORANGE JUICE To check whether changes in price of Nestle orange juice has any impact on the profit margin due to sales of Nestle orange pack, carton or both. In the questionnaire the questions were asked regarding the effect of change of price of Nestle orange juice. By using the data obtained from questionnaire a cross tab was made to see the relationship between price change and resultant profit margin of Nestle Orange juice. From the results of this questionnaire the following hypothesis was concluded: Hypothesis 7: A significant relationship exists between the price of the juice and the profit margin of Nestle Orange Juice Profit Margin Per Pack Affect of Price changes on sales

Yes

Count % within Affect of Price changes on sales

91

Per Carton

Total Both

Per Pack

1

19

8

28

3.6%

67.9%

28.6%

100.0%

Marketing Research- Nestle Juices No

Count % within Affect of Price changes on sales

Total

Count % within Affect of Price changes on sales

6

14

11

31

19.4%

45.2%

35.5%

100.0%

7

33

19

59

11.9%

55.9%

32.2%

100.0%

Analysis From the above cross tab we can see that out of 28 distributors who were reached 3.6% said that the change in the price of Nestle orange effected profit margin per pack, whereas a large chunk of 67.9% say that the effect of price has an impact on profit margin per carton and 28.6% said that the price change has an impact on the profit margin of both pack and carton. Therefore from this table we can clearly conclude that the more the price changes the more the profit margin varies at the level of carton sales.

Results The findings from the cross tab supports the hypothesis and we can say that as the price changes of Nestle Orange juice the resultant profit margin also starts changing and so we accept the hypothesis.

92

Marketing Research- Nestle Juices

LIMITATION Some of the limitations that we faced during our project are as follows: •

Time constraint.

•

Limited resources ( financial, manpower) o The research could only be conducted in the city of Lahore due to limited resources and manpower. o Research is conducted only in educational institutes of Lahore i.e. Lahore School of Economics and Kinnaird College.

•

The sample size for retailers was very small.

RECOMMENDATION Through the questionnaires we came to know People’s recommendations and suggestions regarding Nestle orange juice. The Company is diversifying its product range. In the first quarter of 2008 Nestle Juices added a new flavor to their product range. This diversification in product range has somewhat affected the sales of Nestle Orange juice. •

A very important area for improvement is advertisement and promotional activities of Nestle Orange Juice. During our analysis we found out that most of the respondents were unaware about the new campaign of Nestle Orange juice named “Sunrise Campaign”. There should be vigorous advertisement of the brand with telecasting quality TV commercials that should cater the target audience

•

Company should do celebrity endorsement, to promote the brand to increase consumption and hence sales.

•

During our survey we found that most of the sales of 200 ml packaging of Nestle Orange juice are in schools and colleges. People complained that Nestle should increase the content of juice from 200ml to 250 ml because most of the other brands such as Shezan and county are available in 250 ml packing therefore Nestle should take into consideration about increasing the juice content from 200ml to 250ml.

•

Most of the people consuming Nestle Orange juice suggested that Nestle should think about adding add pulp content in their Nestle Orange juice.

•

Nestle should consider about decreasing the price of Nestle Orange juice in order to increase sales.

93

Marketing Research- Nestle Juices

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Marketing Research- Nestle Juices

CONCLUSION After going through all the stages of marketing research process in order to know the reasons for declining sales of Nestle Orange juice we found that most of the people were quite satisfied with the taste of Nestle orange juice. They were still consuming Nestle Orange juice despite the bitter taste. To some extent the consumers were satisfied with the price of Nestle orange juice because according to them they perceive Nestle Juices to be quality and healthy juices. The analysis showed that people also have liking towards Nestle Orange juice. From the results of the survey we can conclude that the problem of decline in sales was not mostly due to change in consumer perceptions towards taste or other competing brands. It might be due to o change in internal Company polices or strategies.

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Marketing Research- Nestle Juices

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Marketing Research- Nestle Juices

CONSUMER QUESTIONNAIRE We are students of Lahore School of Economics and are conducting a survey on Nestle Orange juice. The results of the survey will be entirely used academic purposes. Your corporation will be appreciated. PERSONAL INFORMATION ------------------------------------------------------------------------------------Gender: Male

Female

Age: Less than 15

16-20

21-25

26-30

31-35 and above

Residential Area: Gulberg Others______________

Defence

Model Town

Which income bracket do you fall in? Less than 15000 and above

16000-25000

26000-35000

36000

Educational Level: ______________________ ______ (Please Specify)

Do you drink juice? Yes

No

What is your preference? Fresh

Packaged

Both

Which brand do you prefer? Shezan

Nestle

Minute Maid

Haleeb

Orange

Grapes

Others ______________ (Please specify) Which flavor do you like the most? Apple Guava (Please specify)

Pineapple Mixed

Others

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___________________

Marketing Research- Nestle Juices Indicate your degree of liking.

LIKE A LOT

DISLIKE A LOT

LIKE

NEUTRAL

DISLIKE

LIKE

DISLIKE

DISLIKE A LOT

Shezan Nestle Minute Maid Haleeb Others Please specify

Indicate your degree of liking. LIKE A LOT

Apple Pineapple Orange Grapes Guava Mixed Other (Specify)

How important are the following factors in influencing your purchase of packaged juice? Very Very important

Important

Price Packaging Quality Taste Sugar Free Fruit Content Appealing Advertisement

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Neutral

Unimportant Unimportant

Marketing Research- Nestle Juices How important are the following factors in influencing your purchase of packaged juice? HALEEB ORANGE JUICE Very important

Important

Neutral

Very Unimportant Unimportant

Neutral

Very Unimportant Unimportant

Neutral

Very Unimportant Unimportant

Price Packaging Quality Taste Sugar Free Fruit Content Appealing Advertisement

NESTLE ORANGE JUICE Very important

Important

Price Packaging Quality Taste Sugar Free Fruit Content Appealing Advertisement

SHEZAN ORANGE JUICE Very important

Important

Price Packaging Quality Taste Sugar Free Fruit Content Appealing Advertisement

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Marketing Research- Nestle Juices

MINUTE MAID Very important

Important

Neutral

Very Unimportant Unimportant

Price Packaging Quality Taste Sugar Free Fruit Content Appealing Advertisement

SECTION A (For nestle users; if not you are not nestle user, please flip over and move to section B) How often do you drink Nestle orange juice? Daily

Weekly

Occasionally

How many times in a day do you take Nestle orange juice: _______ times (Please specify) Where do you purchase juice from? (tick all that apply) Small town shops Departmental stores ___________________ (Please specify)

Others

What packaging size do you purchase? 200ml

1000ml

Both ________________ (Please specify)

If Nestle orange juice is not available which other brand do you prefer? Shezan Others ________________

Minute Maid (Please specify)

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Haleeb

Country

Marketing Research- Nestle Juices Q. What do you think about the taste of Nestle orange juice? Please Tick.

Very Good

Good

Neutral

Bad

Very Bad

SECTION B (For other brands) Q. Please select your reason(s) for not drinking Nestle Orange juice (Tick all that apply) Bitter taste

High price

Others ________________

Missing pulp content

(Please specify)

Q. Have you seen the latest ad of Nestle Orange Juice? Yes

No

If yes; which One? _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________

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Marketing Research- Nestle Juices

RETAILER QUESTIONNAIRE We are students of Lahore School of Economics and are conducting a survey on Nestle Orange juice. The results of the survey will be entirely used academic purposes. Your corporation will be appreciated. Name: __________________ Location: ___________________ How long have you been in the retail business? a. One year b. Two years c. Three years d. Others _______ (Please Specify) Do you stock juice? Yes

No

Which brands of juices? Tick all that apply ◊ Country ◊ Nestle ◊ Haleeb ◊ Shezan ◊ Minute Maid ◊ Others Which flavors of juices? Tick all that apply ◊ Apple ◊ Orange ◊ Pineapple ◊ Grapes ◊ Mango ◊ Others ______________ (Please Specify) Which is the most sold brands of orange juice? Rank a. ____ Country b. ____ Nestle c. ____ Haleeb d. ____ Shezan e. ____ Minute Maid f. ____ Others Is the profit margin on sales of Nestle orange juice made a. Per pack (200 ml or 1000 ml) b. Per juice carton

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Marketing Research- Nestle Juices

Do you get regular supplier of Nestle orange juice? a. Yes b. No Does your outlet have a Nestle chiller? a. Yes b. No If yes, then how many? _______ Who are the main customers of Nestle orange juice? a. College Students b. House wife’s c. Servants d. Others __________ (Please Specify) Are consumers satisfied with the packaging of Nestle orange juice? a. Yes b. No Which packaging of Nestle orange juice sells the most? c. 200 ml a. 1000 ml b. Both __________ (Please Specify) According to you currently, which brand is the major competitor of Nestle Orange juice? (tick all that apply) c. Minute Maid a. Shezan b. Haleeb c. Others __________ (Please Specify) What do you think about the new advertising strategy of Nestle orange juice? _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ ___ Do price changes have any effect on the sales of Nestle orange juice? a. Yes b. No How has the change in price affected the sales of Nestle orange juice recently? _____________________________________________________________________________ _____________________________________________________________________________ 103

Marketing Research- Nestle Juices _____________________________________________________________________________ ___

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CODE

CODE

CODE

CODE

QUESTIONS

VARIABLES

CODE

CONSUMER QUESTIONNAIRE

Q1

V1

Gender

1

Male

2

Female

Q2

V2

Age

1

16-20

2

21-25

3

26-30

4

31-35

Q3

V3

Residential area

1

Gulberg

2

Defence

3

Modeltown

4

Others

Q4

V4

Income bracket

1

Less than 1500

2

16000-25000

3

2600035000

4

36000 above

Q5

V5

Educational level

1

MBA

2

Bachelors

3

Others

4

Q6

V6

Juice intake

1

Yes

2

No

Q7

V7

Preferences

1

Fresh

2

Packaged

3

Both

V8

Brand preferences

1

Shezan

2

Nestle

3

Minute Maid

4

Haleeb

5

Others

V9

Degree of liking Shezan

1

Like a lot

2

Like

3

Neutral

4

Dislike

5

Dislike a lot

V10

Degree of liking Nestle

1

Like a lot

2

Like

3

Neutral

4

Dislike

5

Dislike a lot

V11

Degree of liking Minute Maid

1

Like a lot

2

Like

3

Neutral

4

Dislike

5

Dislike a lot

V12

Degree of liking Haleeb

1

Like a lot

2

Like

3

Neutral

4

Dislike

5

Dislike a lot

V13

Degree of liking Other brand

1

Like a lot

2

Like

3

Neutral

4

Dislike

5

Dislike a lot

V14

Flavor

1

Apple

2

Pineapple

3

Orange

4

Grapes

5

Guava

6

Mixed

7

Others

Q9

Q10 Q11

and

V15

Degree of liking Apple

1

Like a lot

2

Like

3

Neutral

4

Dislike

5

Dislike a lot

V16

Degree

1

Like a lot

2

Like

3

Neutral

4

Dislike

5

Dislike a lot

of

liking

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Marketing Research- Nestle Juices Pineapple

Q12

Q13

V17

Degree of liking Orange

1

Like a lot

2

Like

3

Neutral

4

Dislike

5

Dislike a lot

V18

Degree of liking Grapes

1

Like a lot

2

Like

3

Neutral

4

Dislike

5

Dislike a lot

V19

Degree of liking Guava

1

Like a lot

2

Like

3

Neutral

4

Dislike

5

Dislike a lot

V20

Degree of liking Mixed

1

Like a lot

2

Like

3

Neutral

4

Dislike

5

Dislike a lot

V21

Degree of liking Other brand

1

Like a lot

2

Like

3

Neutral

4

Dislike

5

Dislike a lot

Factors influencing purchase V22

Price

Very 1 important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V23

Packaging

Very 1 important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V24

Quality

Very 1 important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V25

Taste

Very 1 important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V26

Sugar free

Very 1 important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V27

Fruit Content

Very 1 important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V28

Appealing Advertisement

Very 1 important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

Factors influencing packaged juice Haleeb V29

Price

Very 1 important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V30

Packaging

1 Very

2

Important

3

Neutral

4

Unimportant

5

Very

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Marketing Research- Nestle Juices important

unimportant

Quality

Very 1 important

5

Very unimportant

Taste

Very 1 important

5

Very unimportant

Sugar free

Very 1 important

5

Very unimportant

V34

Fruit Content

Very 1 important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V35

Appealing Advertisement

Very 1 important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

Very 1 important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V31 V32 V33

2 2 2

Important Important Important

3 3 3

Neutral Neutral Neutral

4 4 4

Unimportant Unimportant Unimportant

Nestle Orange Juice V36

Price

V37

Packaging

1

Very important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V38

Quality

1

Very important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V39

Taste

1

Very important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V40

Sugar free

1

Very important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V41

Fruit Content

1

Very important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V42

Appealing Advertisement

1

Very important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

Price

1

Very

2

Important

3

Neutral

4

Unimportant

5

Very

Shezan V43

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Marketing Research- Nestle Juices

V44 V45 V46

Packaging Quality Taste

important

unimportant

1

Very important

5

Very unimportant

1

Very important

5

Very unimportant

1

Very important

5

Very unimportant

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

2 2 2

Important Important Important

3 3 3

Neutral Neutral Neutral

4 4 4

Unimportant Unimportant Unimportant

V47

Sugar free

1

Very important

V48

Fruit Content

1

Very important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V49

Appealing Advertisement

1

Very important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V50

Price

1

Very important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V51

Packaging

1

Very important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V52

Quality

1

Very important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V53

Taste

1

Very important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V54

Sugar free

1

Very important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V55

Fruit Content

1

Very important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

V56

Appealing Advertisement

1

Very important

2

Important

3

Neutral

4

Unimportant

5

Very unimportant

Minute Maid

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Marketing Research- Nestle Juices

SECTION A Q14

V57

Intake of juice

1

Daily

2

Weekly

3

Occasionally

Q15

V58

Intake of juice in a day

1

One time

2

Two times

3

Three times

Q16

V59

Juice purchasing

1

Small town

2

Departmental store

3

Others

Q17

V60

Size of purchased juice

1

200ml

2

1000ml

3

Both 1&2

Q18

V61

Preferred purchase in replace of Nestle Orange Juice

1

Shezan

2

Minute Maid

3

Q19

V62

Price & taste comparison

1

Very good

2

Good

4

Four times

Haleeb

4

Country

5

Others

3

Neutral

4

Bad

5

Very bad

3

Missing Pulp Content

4

Other

SECTION B Q20

V63

Reason for not taking Nestle Orange

Q21

V64

Latest Nestle Ad

1

Yes

Q22

V65

Which one

1

Sun Rise Campaign

1

Bitter taste

2

High Price

2

No

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Marketing Research- Nestle Juices

Q1

V1

Name

Q2

V2

Location

Q3

V3

Business tenure

1

One year

2

Two years

Q4

V4

Juice Stocking

1

Yes

2

No

Q5

V5

Brands of juices

1

Country

2

6

Others

1

Apple

6

Others

1

Country

6

Others

Q6

Q7

V6

V7

Flavors of Juices

Most sold brands Netlse

CODE

CODE

QUESTION

CODE

CODE

VARIABLE

C ODE

RETAILER QUESTIONNAIRE

3

Three Years

4

Others

Nestle

3

Haleeb

4

Shezan

5

Minute Maid

2

Orange

3

Pineapple

4

Grapes

5

Mango

2

Nestle

3

Haleeb

4

Shezan

5

Minute Maid

(200ml & 1000ml)

2

Per Juice carton

Q8

V8

Profit margin on Orange Juice sale

Q9

V9

Regular supply of Nestle Orange

1

Yes

2

No

Q10

V10

Nestle Chiller availability

1

Yes

2

No

Q11

V11

quantity if you have Nestle Chiller

1

One

2

Two

3

Three

4

Others

Q12

V12

Main customers

1

College students

2

House wives

3

Servants

4

Others

1

Per

pack

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Marketing Research- Nestle Juices Q13

V13

Customer satisfaction?

1

Yes

2

No

Q14

V14

More Nestlke package sale

1

200ml

2

1000ml

3

Others

Q15

V15

Major competitor of Nestle Orange Juice

1

Minute Maid

2

Shezan

3

Haleeb

4

Others

Q16

V16

New advertising Strategy

1

Like a Lot

2

Like

3

Dislike

4

Dislike a Lot

Q17

V17

Price affect on Orange juice sale

1

Yes

2

No

V18

Affect on sale due to change in price of Nestle Orange juice

1

Increase

2

Decrease

3

Remained Same

Q18

Nestle

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Marketing Research- Nestle Juices

REFERENCES  Beenish Pervaiz o Assistant Brand Manger (Nestle Juices)  Anis Iqbal Sheikh o Director (Al-Fatah)  Rein Vervoort o Director Operations (Metro)  Tariq Waseem o Floor Manager (HKB)  Rafia Khan o Financial Analyst (Nestle)  www.nestle.com.pk

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