st 2011

Marketing Research Project on Nestle

Organizational History: Nestl 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 Lacte Henri Nestl 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 non-returnable 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: 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 Chonsa (mango) Mango orange Mango 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. The main aim of Nestle is to reach every single Pakistani. Nestle currently launched a newflavored 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. 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 20%

This year growth in sales -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 Attitude

The main concern that the consumers 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. Marketing Mix(4Ps)
The Marketing environment at Nestle focuses on the principle of satisfying consumer needs. The overall trust of consumers in Nestls brands and products comes from a quality image that has been continuously strengthened for over 130 years. Nestl 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; considerations. selects materials and printing methods for merchandising materials such as: consumer offers, in-store promotions, Displaying materials, leaflets and printed materials in light of environmental

Product
Nestle Orange juice Flagship brand (number 1 brand in juices) 100% pure, no preservatives, no artificial flavor added

Price
1000 ml 200 ml Rs. 75 Rs. 18

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

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

Target market
The target market of Nestle juices includes: 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

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

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.

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. 3. 4. 5. How much consumers are wiling to pay for Nestle Orange Juice? How much the advertising campaign influences the purchase decision of the consumer? What is the awareness level of Nestle Orange Juice among consumers? How strong are competitors in creating loyalty among their target market?

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

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 people tend to like sweet juices in Pakistan rather than bitter pure orange taste. 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,

In-depth interviews and Literature review. Focus Group: 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. 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.
2. 3.

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. 7. 8. 9. 10. 11. 12. 13. a. b. c. 14. 15. 16.

Why do you buy your preferred brand? Which appeals you the most when you buy a juice? Which size do you prefer buying, 1000 ml or 200 ml? What is the most important attribute when you purchase a juice? What are your likes and dislikes while purchasing orange juice? What is your consumption behavior (i.e. you prefer in breakfast, lunch or dinner) What do you like the best in orange juice? What are your reasons for usage of the appropriate brand of orange juice? Emotional (Quality) Sensory (taste, smell etc.) Functional (healthy, nutritious etc.) Have you recently switched to another brand? If so, why? What differences do you find in both the brands? 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 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. 2. 3. 4. 5. 6. 7.

What is the maximum shelf life of Nestle orange juice? Is Nestle orange juice having competitive prices? Does any consumer complaint about the quantity of Nestle orange juice? Does company do in-store advertisement? Is any special shelf placement is requested by the company? How many wholesalers network are being dealt? You earn more profit on buying Nestle orange juice from wholesalers or direct from the company? 8. Goal to be Achieve 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 Noors place, where the respondents were called up. There were two moderators

1. 2.

Sarah Zahid 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 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: LOCATION: Ayesha Noors place START TIME: 7:00 pm DURATION: 45 minutes MODERATOR: Sarah Zahid AGE GENDER EDUCATION LEVEL OCCUPATION

Respondent A Hammad 20 Respondent B Ali 21 Respondent C Qadir 20 Respondent D Faheem 24 Respondent E Ayesha 21 Respondent F Humaira 23 Respondent G Aleena 20 Respondent H Sonia 23 Key Findings Of Focus Group 1:

Male Male Male Male Female Female Female Female

BBA BBA BBA BSC BSC MBA MBA MSC

Student Student Student Student Student Student Student Student

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: 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 cant resist having Orange juice. Respondent C said that its 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 Es mothers go to Al-Fatah, respondent F and H go to Macro. FOCUS GROUP 2: LOCATION: Ayesha Noors place START TIME: 5:00 pm DURATION: 45 minutes MODERATOR: Humaira Waheed AGE GENDER EDUCATION OCCUPATION LEVEL 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.

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: Chands place START TIME: 5:00 pm DURATION: 45 minutes MODERATOR: Chandzaib RESPONDENTS Respondent A Respondent B Respondent C Respondent D Respondent E Respondent F Respondent G Respondent H NAME Naleem Zubaida Shameem Aneela Sara Rabia Kausar Riffat AGE 40 43 45 32 30 39 48 34 GENDER Female Female Female Female Female Female Female Female OCCUPATION House wife House wife House wife House wife Working woman Teacher House wife House wife

1 2 3 4 5 6 7 8

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 theyll shift their choice to cold drink, and Respondent G, and H said theyll 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 theyll 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 dont 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 shes 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, 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 elses 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 respondents 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 didnt 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 packings for their family.

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. 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 12 100.0% 19 100.0% 18 90.0% 37 100.0% 89 98.9% 175 98.3% No 0 .0% 0 .0% 2 10.0% 0 .0% 1 1.1% 3 1.7%

Total 12 100.0% 19 100.0% 20 100.0% 37 100.0% 90 100.0% 178 100.0%

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 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 Total

like alot Gender Male Female Total Count % within Gender Count % within Gender Count % within Gender 46 54.8% 51 54.3% 97 54.5%

Like 33 39.3% 37 39.4% 70 39.3%

Neutral 5 6.0% 5 5.3% 10 5.6%

dislike 0 .0% 1 1.1% 1 .6% 84 100.0% 94 100.0% 178 100.0%

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.

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 0 .0% 0 .0% 0 .0% 0 Daily 1 100.0% 21 46.7% 25 39.7% 13 Weekly 0 .0% 10 22.2% 19 30.2% 7 Occasionally 0 .0% 12 26.7% 12 19.0% 13 Not Applicable 0 .0% 2 4.4% 7 11.1% 0

Total Missing 1 100.0% 45 100.0% 63 100.0% 33

Age

Less than 15

Count % within Age Count % within Age Count % within Age Count

16-20

21-25

26-30

31 and above

% within Age Count % within Age Count % within Age

.0% 1 2.8% 1 .6%

39.4% 17 47.2% 77 43.3%

21.2% 8 22.2% 44 24.7%

39.4% 8 22.2% 45 25.3%

.0% 2 5.6% 11 6.2%

100.0% 36 100.0% 178 100.0%

Total

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 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.

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 Count % within What do you think about the taste of Nestle orange juice Count % within What do you think about the taste of Nestle orange juice Count % within What do you think about the taste of Nestle orange juice Count % within What do you think about the taste of Nestle orange juice Count % within What do you think about the taste of Nestle orange juice 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 1 50.0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0% Daily 1 50.0% 40 58.8% 25 36.8% 5 35.7% 4 44.4% 2 20.0% Weekly 0 .0% 20 29.4% 21 30.9% 3 21.4% 0 .0% 0 .0% Occasionally 0 .0% 8 11.8% 21 30.9% 5 35.7% 5 55.6% 6 60.0% Not Applicable 0 .0% 0 .0% 1 1.5% 1 7.1% 0 .0% 2 20.0%

Total

Missing 2 100.0% 68 100.0% 68 100.0% 14 100.0% 9 100.0% 10 100.0%

Very good

Good

Neutral

Bad

Very Bad

Not applicable

.0% 1 .6%

.0% 77 43.3%

.0% 44 24.7%

.0% 45 25.3%

100.0% 11 6.2%

100.0% 178 100.0%

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. 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 0 .0% 0 .0% 0 .0% 0 .0% 1 Daily 0 .0% 33 62.3% 30 42.3% 7 26.9% 6 Weekly 0 .0% 16 30.2% 18 25.4% 2 7.7% 8 Occasionally 1 100.0% 3 5.7% 18 25.4% 14 53.8% 6 Not Applicable 0 .0% 1 1.9% 5 7.0% 3 11.5% 2

Total missing 1 100.0% 53 100.0% 71 100.0% 26 100.0% 23

Pr

Missing

Count % within Price Count % within Price Count % within Price Count % within Price Count

Very Important

Important

Neutral

Not Important

Not At All Important

% within Price Count % within Price Count % within Price

4.3% 0 .0% 1 .6%

26.1% 1 25.0% 77 43.3%

34.8% 0 .0% 44 24.7%

26.1% 3 75.0% 45 25.3%

8.7% 0 .0% 11 6.2%

100.0% 4 100.0% 178 100.0%

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 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 missin g AAAdvertisemen t Missing Count % within Appealing Advertisemen t Count 0 .0% 0 Daily 2 66.7% 36 Weekl y 1 33.3% 10 Occasionall y 0 .0% 12 Not Applicabl e 0 .0% 4

Total

3 100.0 % 62

Very

important % within Appealing Advertisemen t Count % within Appealing Advertisemen t Count % within Appealing Advertisemen t Count % within Appealing Advertisemen t Count % within Appealing Advertisemen t Count % within Appealing Advertisemen t .0% 0 .0% 1 2.0% 0 .0% 0 .0% 1 .6% 58.1% 19 39.6% 14 27.5% 2 28.6 % 4 57.1% 77 43.3% 16.1% 15 31.3% 16 31.4% 2 28.6% 0 .0% 44 24.7% 19.4% 14 29.2% 15 29.4% 3 42.9% 1 14.3% 45 25.3% 6.5% 0 .0% 5 9.8% 0 .0% 2 28.6% 11 6.2% 100.0 % 48 100.0 % 51 100.0 % 7 100.0 % 7 100.0 % 178 100.0 %

Important

Neutral

Unimportan t

Very unimportant

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. 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: Degree of liking Nestle juice has any impact on the degree of liking Nestle orange juice.
Degree of liking Orange like alot 49 50.5% 22 31.4% 6 60.0% 0 .0% 77 43.3% like 26 26.8% 37 52.9% 2 20.0% 0 .0% 66 37.1% neutral 14 14.4% 3 4.3% 0 .0% 0 .0% 17 9.6% dislike 5 5.2% 3 4.3% 1 10.0% 1 100% 9 5.1% dislike alot 3 3.1% 5 7.1% 1 10.0% 0 .0% 9 5.1% Total like alot 97 100.0% 70 100.0% 10 100.0% 1 100.0% 178 100.0%

Degree of liking Nestle Juice

like alot

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

Like

Neutral

Dislike

Total

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. 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 missing Taste Missing Count % within Taste Count % within Taste Count % within Taste Count % within Taste Count % within Taste Count % within Taste Count % within Taste 0 .0% 0 .0% 1 1.6% 3 6.1% 0 .0% 0 .0% 4 2.3% like alot 1 33.3% 13 38.2% 10 16.4% 1 2.0% 1 4.5% 0 .0% 26 14.7% like 0 .0% 18 52.9% 26 42.6% 16 32.7% 4 18.2% 3 37.5% 67 37.9% neutral 1 33.3% 3 8.8% 22 36.1% 20 40.8% 7 31.8% 1 12.5% 54 30.5% dislike 1 33.3% 0 .0% 2 3.3% 6 12.2% 6 27.3% 3 37.5% 18 10.2% dislike a lot 0 .0% 0 .0% 0 .0% 3 6.1% 4 18.2% 1 12.5% 8 4.5% Total missing 3 100.0% 34 100.0% 61 100.0% 49 100.0% 22 100.0% 8 100.0% 178 100.0%

Highly Satisfied Satisfied

Neutral

Dissatisfied

Highly Dissatisfied Total

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 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 % within Main Customers Of Nestle C&S Count % within Main Customers Of Nestle Total Count % within Main Customers Of Nestle 12 80.0% 12 80.0% 4 66.7% 1 33.3% 5 100.0% 2 100.0% 11 100.0% 2 100.0% 49 83.1% No 1 6.7% 3 20.0% 2 33.3% 2 66.7% 0 .0% 0 .0% 0 .0% 0 .0% 8 13.6% Missing 2 13.3% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 0 .0% 2 3.4%

Total Yes 15 100.0% 15 100.0% 6 100.0% 3 100.0% 5 100.0% 2 100.0% 11 100.0% 2 100.0% 59 100.0%

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 Juices 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. Recommendation: Through the questionnaires we came to know Peoples 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. 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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