research on nestlé juices

8/13/2019 Research On Nestl Juices

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Final Research Project On Nestle Juices


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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


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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


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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


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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.


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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.


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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.


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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.


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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.


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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


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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)


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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


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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.


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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


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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


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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


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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


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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%


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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


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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



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



participants who skips this question which is 2%.

Quality





Advertisement






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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


23%

54%

10%

11%

2%

Nestle

Shezan

Haleeb

Others

Skips


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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%


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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


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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%


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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.


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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

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