Upload
arslan-nawaz
View
222
Download
0
Embed Size (px)
Citation preview
8/13/2019 Research On Nestl Juices
1/26
Final Research Project On Nestle Juices
8/13/2019 Research On Nestl Juices
2/26
Submitted to
Miss Amna khan
Submitted By
M.Saghir Sarwar L1F11BCMH2021
M.Ali Naqvi L1F11MCOM0164
Arslan Nawaz L1F11MCOM2165
A.D Ahsan L1F11MCOM2144
Hina Razzaq L1F11MCOM2137
Javaria Abrar L1F11MCOM2142
Sumbal Aftab L1F11MCOM2146
Madiha Saber L1F11MCOM2155
8/13/2019 Research On Nestl Juices
3/26
Acknowledgement
We have the pearl of our eyes to admire blessing of the
compassionate and omnipotent because the words are bound,
knowledge is limited and time is short To express His dignity. It is oneof the infinite blessings of almighty ALLAH that He bestowed us with
potential and ability to complete the present training and Make a
material contribution towards the deep oceans of knowledge. First we
avail this opportunity to bow our head before ALLAH almighty in
Humility who given us the wisdom and perseverance for completing
this piece of Report.
We invoke peace for Holy Prophet Mohammad (Peace Be upon Him)
who is forever torch. We feel highly privilege to ascribe the most and
ever burning flame of my Gratitude and deep scene of devotion to the
Madam Amina Khan
Who tau ht us research ro ect with heart and also ave a uideline
8/13/2019 Research On Nestl Juices
4/26
Table of Contents
Introduction ................................................................................................... 7
Background of Nestle ..................................................................................... 7
Background of Nestle International ......................................................... 7-8
Background of Nestle Pakistan ................................................................ 8-9
History of Nestl Juices ................................................................................. 9
Competitive analysis ...................................................................................... 9
Theoretical frame work ........................................................................... 10-11
Hypothesis .................................................................................................. 12
Methodology ............................................................................................... 13
Population size ............................................................................................ 13
Sampling method ........................................................................................ 13
Sample size ................................................................................................. 13
Data collection ............................................................................................ 14
Tools of data collection ................................................................................ 14
Questionnaire Paper .............................................................................. 15-16
Online Questionnaire View ..................................................................... 17-20
Questionnaire Result .............................................................................. 21-30
Conclusion ................................................................................................... 31
Recommendations ....................................................................................... 31
Limitations ................................................................................................... 31
Bibliography ................................................................................................. 32
8/13/2019 Research On Nestl Juices
5/26
Executive Summary
Nestle Pakistan Ltd is a subsidiary of Nestle S.A. a company of Swiss origin
headquartered in Vevey, Switzerland. It is a food processing company, listed
on the Karachi and Lahore stock exchanges and operating in Pakistan since
1988 started as a joint venture with Milk Pak Ltd and took over the
management in 1992. For ten years in a row, the company has won a place
among the top 25 companies of the Karachi Stock Exchange.
This report is based on a research proposal in which we compare the market
share and sales of nestle juices with other brands such as Shezan, Haleeb,
Minute mind. We collect data from different resources like website, past
research reports and questionnaire from general public.
We generate a hypothesis that the level of sales of nestle juices is greater than
shezan. For this purpose we set different variables which are Quality, Price,
and Brand name. We collected data from different locations of Lahore. We
visited super stores and universities to fill questionnaire. On bases of result we
concluded that nestle sales are higher than Shezan.
Objective
The purpose of the study was to investigate reasons of high market share of
Nestle Juices in Pakistan. The main object of our research is to find out and
analyze that why the Nestle Juices are dominated in the market while other
brands of juices providing the same flavor at low price in the market.
8/13/2019 Research On Nestl Juices
6/26
Literature review
The story of nestle begins in 1867, when Henri Nestl developed a baby formu
that saved childs life and marked the beginning of Nestl's decades-o
commitment to nutrition.Henri Nestl, a Swiss pharmacist, begins experimentin
with cow's milk, wheat flnestle and sugar to develop an alternative for infant
who cannot be breastfed. His ultimate goal is to help reduce infant mortality from
malnutrition. Eventually, he develops Farine Lacte Henri Nestl, which is so
under his own coat of arms. This remains Nestl's distinctive bran
eventoday.After the formula saves a child's life, people swiftly recognize its valu
and soon FarineLacte Nestl is available across Europe. Today, Nestl SA is th
world's largest Food and Beverages Company, and a global leader in healt
nutrition and wellness. Consumers around the world, from village squares i
Nigeria to the skyscrapers of New York and Chicago, are united by the Nest
promise of quality, taste, nutrition and convenience. Though headquartered
Vevey, Switzerland, we now have 487 factories dotted around the globe
employing over 250,000 people in 86 countries. Nestle products are available i
almostevery country, and in 2005 nestle global sales reached $73 billion. Nestoperations are spread across three global zones covering Europe, the America
Asia, Oceania and Africa. Recognizing that every region has its special needs, th
three zones operate locally, but are united by a common vision and priorities. Th
voices of even the smallest local markets are heard at nestle headquarters
Vevey, Switzerland. Nestle immense popularity comes from nestle efforts t
develop products that give quality and nutritional benefits at low prices, even i
the most remote regions. We distribute those using local means; in Madagascafor instance, backpacker salesmen sold over 12 million MAGGI tablets within s
months, an approach that was duplicated in Pakistan and Mozambique. Nest
consumers know that they can rely on us to be there when we are needed.
8/13/2019 Research On Nestl Juices
7/26
Introduction
Nestl is the largest food and nutrition company in the world. Founded and headquartered
Vevey, Switzerland. The company operates in 86 countries around the world, and employ
over 280,000 people according to 2010.
Background of Nestle
The background of nestle can divided into two parts.
Nestle International Nestle Pakistan
Nestle International
Pre-Mergers
In the mid-1860s Nestl, a trained pharmacist began experimenting with variou
combinations of cow's milk, wheat flour and sugar in an attempt to develop an alternativ
source of infant nutrition for mothers who were unable to breast feed. He called the ne
product Farine Lactee Henri Nestl. People quickly recognized the value of the new produc
after Nestl's new formula saved the child's life and within a few years, Farine Lactee Nest
was being marketed in much of Europe.
Henri Nestl also showed early understanding of the power of branding. He had adopted h
own coat of arms as a trademark; in his German dialect, Nestl means 'little nest'.
The company dates to 1867 when two separate Swiss enterprises (Farine Lactee Henri Nest
and Anglo-Swiss Condensed Milk Company) were founded that would later form the core
Nestl.
Meanwhile, the Anglo-Swiss Condensed Milk Company, founded in 1866 by two brothe
from Lee County, Illinois, USA, established the Anglo-Swiss Condensed Milk Company
Cham, Switzerland. Broadened its product line in the mid-1870s to include cheese and infa
formulas. Nestl Company, which had been purchased from Henri Nestl by Jules Monnera
in 1874, responded by launching a condensed milk product of its own. The two companie
remained fierce competitors until their merger in 1905.
8/13/2019 Research On Nestl Juices
8/26
Post Mergers
In 1904, Nestl added chocolate to its range of food products after reaching an agreement
with the Swiss General Chocolate Company.
1907-1938
In 1907, the Company began full-scale manufacturing in Australia, its second-largest expo
market. Warehouses were built in Singapore, Hong Kong, and Bombay to supply the rapid
growing Asian markets. In 1921, the Company recorded its first loss. New products appeare
steadily: malted milk, a powdered beverage called Milo, powdered buttermilk for infant
and, in 1938, Nescafe. Nescafe became an instant success and was followed in the early 1940
by Nestea.
1947-1974
In 1947, Nestle merged with Alimentana S.A., the manufacturer of Maggi seasonings an
soups, becoming Nestl Alimentana Company. The acquisition of Crosse & Blackwell, th
British manufacturer of preserves and canned foods, followed in 1960, as did the purchase o
Findus frozen foods (1963), Libby's fruit juices (1971) and Stouffer's frozen foods (1973
Diversification came with a shareholding in L'Oral in 1974.
2003
The year 2003 started well with the acquisition of Mvenpick Ice Cream, enhancing Nestl
position as one of the world market leaders in the super premium category. Nestl has som
6,000 brands, with a wide range of products across a number of markets worldwide.
Nestle Pakistan
Pre-independence
Nestl begins its long relationship with South Asia when the Nestl Angle-Swiss Condensed
Milk Company starts importing and selling finished products in the Indian market from 1912.
8/13/2019 Research On Nestl Juices
9/26
Post-independence
In 1979 MILKPAK Ltd. is founded by Syed Babar Ali. It manufactures UHT milk, cream an
butter, as well as fruit juices. Nestl SA acquires a 40 percent share in MILKPAK Ltd in 1988.
1992 Nestl takes over the running of the company and begins to develop its milk collectionetwork. A Maggi Noodles plant is installed at the Kabirwala factory. In 1996 MILKPAK Ltd.
renamed Nestl Milkpak Ltd. In 1998 NESTL PURE LIFE bottled water is premiered
Pakistan.
History of Nestle Juices
A well-known brand, FROST was introduced in 1986 and has the largest share of th
countrywide market. Positioned as a cold drink and alternate to cola drinks, its strength lies
the convenience attached to its usage.
Encouraged by the consumer response to Nestle orange juice that was launched in 1996, th
category of Nestle juices was expanded with the introduction of Mango-Orange and Mang
flavors in the year 2000.
Competitive analysis
Shezan international can compete nestle by its products. Shezan all pure, twist and regula
juices can compete nestle nectar juices because company charge low price from consumer from nestle. Haleeb food can compete nestle Juies by its Juices. Haleeb Just Fruit (5 flavors
Haleeb Tropico Nectar (Orange & Mango & Apple). Minute maid is the parent company
Coca-Cola Company. Which producing high quality product. Minute maid provides orang
Apple juices.
8/13/2019 Research On Nestl Juices
10/26
Theoretical frame work
To formulate theoretical framework first we listed and labeled the variables of the study
which are as under
Name of Variables Nature of Variable
Availability Independent variable
Packing Independent variable
Price Independent variable
Advertisement Independent variable
Quality Independent variable
Taste Independent variableFlavor Independent variable
Brand name Independent variable
Sale Dependent variable
Shown with help of diagram
SalesAvailability
Packing
Price
Advertisement Quality
Taste
Flavor
Brand name
8/13/2019 Research On Nestl Juices
11/26
Explanation
The depended variable is sale of juices to which all other variable may influence these are
Availability, Packing, Price, Advertisement, Quality, Taste, Flavor, Brand name.
Limited availability and uneasy access prevent customers to make a purchase and ultimatel
leads to declining stage. Packing is the most important factor. Good looking packing attrac
customer to buy well packed product. Increase and decrease in price of juices have direc
affect on consumer buying behavior. Advertisement gives awareness of product to custome
if customer is not aware to your product then how people buy your product? Of course it i
important factor of sale. Due to the lack of quality, taste, flavor of juices people ar
dissatisfied.
Brand name is also another important product if specific company have it brand power in
market then it can sale their more product.
Model
Sales = Bo+ B1(Availability) +B2(Packing)B3(Price) +B4(Advertisement) +B5(Quality)
+B6(Taste) +B7(Flavor)+B8(Brand name)
8/13/2019 Research On Nestl Juices
12/26
Generation of Hypothesis
Sales of nestle juices are higher than shezan juices.
Alternative Hypothesis
Sales of nestle juices are higher than shezan juices.
N is average mean of Nestle juices.
S is average mean of Shezan juices.
HA:N> S
HA:N- S>0
Null Hypothesis
Sales of nestle juices and shezan juices is same.
N is average mean of Nestle juices.
S is average mean of shezan juices.
H0:N= S
H0:N- S=0
8/13/2019 Research On Nestl Juices
13/26
Methodology
To collect data we use questionnaire to determine the popularity of nestle. Each questio
leads to other in such ways that feedback can easily obtained.
In Q1 and Q9we give two option Yes and No.
In Q2and Q6we give some name of juices producing companies.
In Q3we give option of 8 flavors of juices.
In Q4, four options are given.
In Q5we want to ask 5 questions with four available options.
Q7and Q8consist 6 and 3 option respectively.
Q10space was given to surveyor to give their comments.
Population size
Our selected population is limited only to the citizens of Lahore city. The peoples who drink
packed juices.
Sampling method
We have decided to choose convenience sampling method for our target because of the fact
that easily approach people for their responses to our questionnaire and generate result
from their contribution.
Sample size
Sample size is 148 numbers of people out which 78 are female and 62 are males.
8/13/2019 Research On Nestl Juices
14/26
Data collection
We have collected data from both sources primary and secondary. In primary sources we
conducted questionnaire. In secondary sources we review website of related companies,
past researches and financials reports.
Tools of data collection
Officials sites of related companies. Research articles Questionnaire from general public. Online Survey
8/13/2019 Research On Nestl Juices
15/26
Questionnaire results
Q1: Do you like Juices?
Yes 94%
No 5%
Skips 1%
Explanation
In this chart blue color shows yes which is 94% , red color shows nowhich is 5%, green
color represent the percentage of participant who skipthis question which is 1%.
94%
5%
1%
Yes
No
Skips
8/13/2019 Research On Nestl Juices
16/26
Q2 Which is your favorite brand?
Nestle 71%
Shezan 17%Haleeb 9%
Others 3%
Skips 0%
Explanation
In this chart blue color shows nestle which is 71%, red color shows shezan which is 17%
green color represent the percentage of haleeb which is 9%, while purple color
representing others which is 3%and 0%skipsit.
71%
17%
9%
3% 0%
Nestle
Shezan
Haleeb
Others
Skips
8/13/2019 Research On Nestl Juices
17/26
Q3 Which is your favorite flavor?
Mango 33%
Apple 14%Grapes 16%
Orange 9%
Pineapple 9%
Guava 3%
Peach 6%
Mix 7%
Skips 3%
Explanation
In this chart dark blue color shows mango which is 33% , red color shows applewhich is14%, green color represent the percentage of grapeswhich is 16%, while purple color is
representing orangewhich is 9%,turquoise color shows pineapplewhich is 9%,orange color
shows guavawhich is 3%,light blue color shows peachwhich is 6%,tea pink color shows mix
fruits which is 7%,and light green color representing the % of participants who skips this
question which is 3%skips.
33%
14%16%
9%
9%
3%6%
7%3%Mango
Apple
Grapes
Orange
Pineapple
Guava
Peach
Mix
Skips
8/13/2019 Research On Nestl Juices
18/26
Q4 To what extent it matches your taste?
Explanation
In this chart dark blue color shows to some extent which is 16% , red color shows to
reasonable extantwhich is 22%, green color represent to great extantwhich is 32%, while
purple color is representing I do not know which is 9% ,turquoise color shows the
percentage of participants who skipsthis question which is 21%.
16%
22%
32%
9%
21%
To some Extent
To reasonable
extent
To a great
extent
I do not know
Skips
To some Extent 16%
To reasonable extent 22%To a great extent 32%
I do not know 9%
Skips 21%
8/13/2019 Research On Nestl Juices
19/26
Q5 Which attributes inspires you to select your favorite brand?
Availability Packing Price Quality Advertisement
Not Important 7% 8% 11% 2% 14%
Neutral 16% 20% 28% 4% 32%
Less important 15% 24% 26% 4% 24%
Highly important 40% 47% 33% 89% 26%
Skips 22% 1% 2% 1% 3%
0
20
40
60
80
100
120
140
Not Important
Neutral
Less important
Highly important
Skips
8/13/2019 Research On Nestl Juices
20/26
Explanation
Availability
In this chart dark blue color shows not importantwhich is 7% , red color shows neutr
which is 16%, green color represent less important which is 15%, while purple color
representing highly important which is 40% ,turquoise color shows the percentage
participants who skipsthis question which is 22%.
Packing
In this chart dark blue color shows not importantwhich is 8% , red color shows neutr
which is 20%, green color represent less important which is 24%, while purple color
representing highly important which is 47% ,turquoise color shows the percentage participants who skipsthis question which is 1%.
Price
In this chart dark blue color shows not importantwhich is11% , red color shows neutr
which is 28%, green color represent less important which is 26%, while purple color
representing highly important which is 33% ,turquoise color shows the percentage
participants who skips this question which is 2%.
Quality
In this chart dark blue color shows not importantwhich is 2% , red color shows neutr
which is 4%, green color represent less important which is 4%, while purple color
representing highly important which is 89% ,turquoise color shows the percentage
participants who skipsthis question which is 1%.
Advertisement
In this chart dark blue color shows not importantwhich is 14% , red color shows neutr
which is 32%, green color represent less important which is 24%, while purple color
representing highly important which is 26% ,turquoise color shows the percentage
participants who skipsthis question which is 3%.
8/13/2019 Research On Nestl Juices
21/26
Q6 Which brand you like to drink if your preferred brand is not
available?
Nestle 23%Shezan 54%
Haleeb 10%
Others 11%
Skips 2%
Explanation
In this chart blue color shows nestle which is 23% , red color shows shezan which is 54%
green color represent the percentage of haleeb which is 10%, while purple color
representing others which is 11% and light blue color shows the percentage of no
participants who skipsthis question which is 2%.
23%
54%
10%
11%
2%
Nestle
Shezan
Haleeb
Others
Skips
8/13/2019 Research On Nestl Juices
22/26
Q7 Why you like your second selected brand?
Due to price 18%
Due to quality 35%Due to packing 8%
Due to advertisement 10%
Due to availability 20%
Due to brand name 9%
Explanation
In this chart blue color shows due to pricewhich is 18%, red color shows due to quality whic
is 35%, greencolor represent the percentage of due to packingwhich is 8%,while purple col
is representing due to advertisementwhich is 10%and light blue color shows the percentag
of dueto availability which is 20% and orange color represent due to brandname which
9%.
Due to price
18%
Due to quality
35%
Due to
packing
8%
Due to
advertisment10%
Due to
availability
20%
Due to brand
name
9%
8/13/2019 Research On Nestl Juices
23/26
Q8 Do you think customer is?
Brand conscious 15%
Quality conscious 57%Price conscious 27%
Skips 1%
Explanation
In this chart blue color shows brand conscious which is 15% , red color shows quali
consciouswhich is 57%, green color represent the price conscious which is 27%and purp
color is representing the percentage of participants who skipsthis questions which is 1%.
15%
57%
27%
1%
Brand conscious
Quality conscious
Price conscios
Skips
8/13/2019 Research On Nestl Juices
24/26
Q9 Do you agree this drink quench your thirst?
To some extent 33%
To reasonable extent 32%To a great extent 33%
I do not know 2%
Skips 0%
Explanation
In this chart dark blue color shows to some extent which is 33% , red color shows
reasonable extant which is 32%, green color represent to great extant which is 33%, an
purple color is representing I do not knowwhich is 2% .
To someExtent
33%
To
reasonable
extent
32%
To a great
extent
33%
I do not
know
2%
8/13/2019 Research On Nestl Juices
25/26
Conclusion
Using quantitative tool we find the variables which affects the sales of nest
nectar juices. These all variables have direct impact on sales. These variables ar
Price, Quality, and availability, variety of flavors, advertisements and packing
Now consumer is more aware of product, he/she can compare best availab
product in market by comparing these features. We find that people are gettin
brand and quality conscious. When we talk about quality people are ready to pa
more but do not compromise on healthy food.
Recommendations
We recommend that nestle must maintain the quality of its products. It shou
decrease its price. In this way nestle can increase its market share by competin
other brands available in market. Nestle should introduce more flavor. Accordin
to our survey people like mango flavor more than any flavor. Nestle juices shoul
be available in rural areas. Nestle should made effective market.
Limitations
Limited time period.We faced Bias behavior of people too.Research is limited only to city of Lahore.
8/13/2019 Research On Nestl Juices
26/26
Bibliography
Nestle Official website.
http://www.nestle.pk/Pages/Nestle.aspx
Annual Results 2010" (PDF). Nestl.
Annual Report 2009" (PDF). Nestl.
'Other industries', A History of the County of Wiltshire: Volume 4 (1959), pp.
220253. Accessed: 14 August 2010
Nestle Global
http://www.nestle.com/AboutUs/Pages/AboutUs.aspx
Wikipedia search
http://en.wikipedia.org/wiki/Nestl%C3%A9
http://www.nestle.pk/Pages/Nestle.aspxhttp://www.nestle.pk/Pages/Nestle.aspxhttp://en.wikipedia.org/wiki/Nestl%C3%A9http://en.wikipedia.org/wiki/Nestl%C3%A9http://en.wikipedia.org/wiki/Nestl%C3%A9http://www.nestle.pk/Pages/Nestle.aspx