Final Research Project On Nestle Juices

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

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 one of 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 taught us research project with heart and also gave a guideline to this report.

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

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.

Literature review The story of nestle begins in 1867, when Henri Nestl developed a baby formula that saved childs life and marked the beginning of Nestl's decades-old commitment to nutrition.Henri Nestl, a Swiss pharmacist, begins experimenting with cow's milk, wheat flnestle and sugar to develop an alternative for infants who cannot be breastfed. His ultimate goal is to help reduce infant mortality from malnutrition. Eventually, he develops Farine Lacte Henri Nestl, which is sold under his own coat of arms. This remains Nestl's distinctive brand eventoday.After the formula saves a child's life, people swiftly recognize its value, and soon FarineLacte Nestl is available across Europe. Today, Nestl SA is the world's largest Food and Beverages Company, and a global leader in health, nutrition and wellness. Consumers around the world, from village squares in Nigeria to the skyscrapers of New York and Chicago, are united by the Nestl promise of quality, taste, nutrition and convenience. Though headquartered in Vevey, Switzerland, we now have 487 factories dotted around the globe, employing over 250,000 people in 86 countries. Nestle products are available in almostevery country, and in 2005 nestle global sales reached $73 billion. Nestle operations are spread across three global zones covering Europe, the Americas, Asia, Oceania and Africa. Recognizing that every region has its special needs, the three zones operate locally, but are united by a common vision and priorities. The voices of even the smallest local markets are heard at nestle headquarters in Vevey, Switzerland. Nestle immense popularity comes from nestle efforts to develop products that give quality and nutritional benefits at low prices, even in the most remote regions. We distribute those using local means; in Madagascar, for instance, backpacker salesmen sold over 12 million MAGGI tablets within six months, an approach that was duplicated in Pakistan and Mozambique. Nestle consumers know that they can rely on us to be there when we are needed.

Introduction
Nestl is the largest food and nutrition company in the world. Founded and headquartered in Vevey, Switzerland. The company operates in 86 countries around the world, and employs 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 various combinations of cow's milk, wheat flour and sugar in an attempt to develop an alternative source of infant nutrition for mothers who were unable to breast feed. He called the new product Farine Lactee Henri Nestl. People quickly recognized the value of the new product, after Nestl's new formula saved the child's life and within a few years, Farine Lactee Nestl was being marketed in much of Europe. Henri Nestl also showed early understanding of the power of branding. He had adopted his 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 Nestl and Anglo-Swiss Condensed Milk Company) were founded that would later form the core of Nestl. Meanwhile, the Anglo-Swiss Condensed Milk Company, founded in 1866 by two brothers from Lee County, Illinois, USA, established the Anglo-Swiss Condensed Milk Company in Cham, Switzerland. Broadened its product line in the mid-1870s to include cheese and infant formulas. Nestl Company, which had been purchased from Henri Nestl by Jules Monnerat in 1874, responded by launching a condensed milk product of its own. The two companies remained fierce competitors until their merger in 1905.

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 export market. Warehouses were built in Singapore, Hong Kong, and Bombay to supply the rapidly growing Asian markets. In 1921, the Company recorded its first loss. New products appeared steadily: malted milk, a powdered beverage called Milo, powdered buttermilk for infants, and, in 1938, Nescafe. Nescafe became an instant success and was followed in the early 1940s by Nestea. 1947-1974 In 1947, Nestle merged with Alimentana S.A., the manufacturer of Maggi seasonings and soups, becoming Nestl Alimentana Company. The acquisition of Crosse & Blackwell, the British manufacturer of preserves and canned foods, followed in 1960, as did the purchase of 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's position as one of the world market leaders in the super premium category. Nestl has some 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.

Post-independence In 1979 MILKPAK Ltd. is founded by Syed Babar Ali. It manufactures UHT milk, cream and butter, as well as fruit juices. Nestl SA acquires a 40 percent share in MILKPAK Ltd in 1988. In 1992 Nestl takes over the running of the company and begins to develop its milk collection network. A Maggi Noodles plant is installed at the Kabirwala factory. In 1996 MILKPAK Ltd. is renamed Nestl Milkpak Ltd. In 1998 NESTL PURE LIFE bottled water is premiered in Pakistan.

History of Nestle Juices

A well-known brand, FROST was introduced in 1986 and has the largest share of the countrywide market. Positioned as a cold drink and alternate to cola drinks, its strength lies in the convenience attached to its usage. Encouraged by the consumer response to Nestle orange juice that was launched in 1996, the category of Nestle juices was expanded with the introduction of Mango-Orange and Mango flavors in the year 2000.

Competitive analysis
Shezan international can compete nestle by its products. Shezan all pure, twist and regular juices can compete nestle nectar juices because company charge low price from consumer as 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 of Coca-Cola Company. Which producing high quality product. Minute maid provides orange, Apple juices.

Theoretical frame work

To formulate theoretical framework first we listed and labeled the variables of the study which are as under

Name of Variables Availability Packing Price Advertisement Quality Taste Flavor Brand name Sale

Nature of Variable Independent variable Independent variable Independent variable Independent variable Independent variable Independent variable Independent variable Independent variable Dependent variable

Shown with help of diagram

Advertisement Quality

Price

Taste

Packing

Flavor

Availability

Sales

Brand name

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 ultimately leads to declining stage. Packing is the most important factor. Good looking packing attract customer to buy well packed product. Increase and decrease in price of juices have direct affect on consumer buying behavior. Advertisement gives awareness of product to customer if customer is not aware to your product then how people buy your product? Of course it is important factor of sale. Due to the lack of quality, taste, flavor of juices people are 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)

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 S is

average mean of Nestle juices. average mean of Shezan juices. HA: HA:
N N

>

S S>0

Null Hypothesis Sales of nestle juices and shezan juices is same.

N is S is

average mean of Nestle juices. average mean of shezan juices. H0: H0:
N N

S S=0

Methodology
To collect data we use questionnaire to determine the popularity of nestle. Each question leads to other in such ways that feedback can easily obtained. In Q1 and Q9 we give two option Yes and No. In Q2 and Q6 we give some name of juices producing companies. In Q3 we give option of 8 flavors of juices. In Q4, four options are given. In Q5 we want to ask 5 questions with four available options. Q7 and Q8 consist 6 and 3 option respectively. Q10 space 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.

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

Questionnaire results

Q1: Do you like Juices?

Yes No Skips 94% 5% 1%

1% 5%

Yes No Skips

94%

Explanation In this chart blue color shows yes which is 94% , red color shows no which is 5%, green color represent the percentage of participant who skip this question which is 1%.

Q2 Which is your favorite brand?

Nestle Shezan Haleeb Others Skips 71% 17% 9% 3% 0%

3% 9%

0%
Nestle

17%

Shezan Haleeb Others

71%

Skips

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 is representing others which is 3% and 0% skips it.

Q3 Which is your favorite flavor?

Mango Apple Grapes Orange Pineapple Guava Peach Mix Skips 33% 14% 16% 9% 9% 3% 6% 7% 3%

6% 3% 9% 9%

7% 3% 33%

16%

14%

Mango Apple Grapes Orange Pineapple Guava Peach Mix Skips

Explanation In this chart dark blue color shows mango which is 33% , red color shows apple which is 14%, green color represent the percentage of grapes which is 16%, while purple color is representing orange which is 9% ,turquoise color shows pineapple which is 9%,orange color shows guava which is 3%,light blue color shows peach which 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.

Q4 To what extent it matches your taste?

To some Extent To reasonable extent To a great extent I do not know Skips

16% 22% 32% 9% 21%

To some Extent 21% 16%

9%

22%

To reasonable extent To a great extent I do not know

Skips

32%

Explanation In this chart dark blue color shows to some extent which is 16% , red color shows to reasonable extant which is 22%, green color represent to great extant which is 32%, while purple color is representing I do not know which is 9% ,turquoise color shows the percentage of participants who skips this question which is 21%.

Q5 Which attributes inspires you to select your favorite brand?

Availability 7% 16% 15% 40% 22% Packing 8% 20% 24% 47% 1% Price 11% 28% 26% 33% 2% Quality 2% 4% 4% 89% 1% Advertisement 14% 32% 24% 26% 3%

Not Important Neutral Less important Highly important Skips

140 120 100 80 60 40 20 Not Important Neutral

Less important Highly important

Skips

Explanation
Availability In this chart dark blue color shows not important which is 7% , red color shows neutral which is 16%, green color represent less important which is 15%, while purple color is representing highly important which is 40% ,turquoise color shows the percentage of participants who skips this question which is 22%. Packing In this chart dark blue color shows not important which is 8% , red color shows neutral which is 20%, green color represent less important which is 24%, while purple color is representing highly important which is 47% ,turquoise color shows the percentage of participants who skips this question which is 1%. Price In this chart dark blue color shows not important which is11% , red color shows neutral which is 28%, green color represent less important which is 26%, while purple color is representing highly important which is 33% ,turquoise color shows the percentage of participants who skips this question which is 2%. Quality In this chart dark blue color shows not important which is 2% , red color shows neutral which is 4%, green color represent less important which is 4%, while purple color is representing highly important which is 89% ,turquoise color shows the percentage of participants who skips this question which is 1%. Advertisement In this chart dark blue color shows not important which is 14% , red color shows neutral which is 32%, green color represent less important which is 24%, while purple color is representing highly important which is 26% ,turquoise color shows the percentage of participants who skips this question which is 3%.

Q6 Which brand you like to drink if your preferred brand is not available?
Nestle Shezan Haleeb Others Skips 23% 54% 10% 11% 2%

2% 11% 23% 10%

Nestle Shezan Haleeb Others

54%

Skips

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 is representing others which is 11% and light blue color shows the percentage of no of participants who skips this question which is 2%.

Q7 Why you like your second selected brand?

Due to price Due to quality Due to packing Due to advertisement Due to availability Due to brand name 18% 35% 8% 10% 20% 9%

Due to brand name 9% Due to availability 20% Due to price 18%

Due to quality 35% Due to advertisment 10% Due to packing 8%

Explanation In this chart blue color shows due to price which is 18%, red color shows due to quality which is 35%, green color represent the percentage of due to packing which is 8%, while purple color is representing due to advertisement which is 10% and light blue color shows the percentage of due to availability which is 20% and orange color represent due to brand name which is 9%.

Q8 Do you think customer is?

Brand conscious Quality conscious Price conscious Skips 15% 57% 27% 1%

1% 27%

15% Brand conscious Quality conscious

Price conscios
Skips 57%

Explanation In this chart blue color shows brand conscious which is 15% , red color shows quality conscious which is 57%, green color represent the price conscious which is 27% and purple color is representing the percentage of participants who skips this questions which is 1%.

Q9 Do you agree this drink quench your thirst?

To some extent To reasonable extent To a great extent I do not know Skips 33% 32% 33% 2% 0%

I do not know 2% To a great extent 33%

To some Extent 33%

To reasonable extent 32%

Explanation In this chart dark blue color shows to some extent which is 33% , red color shows to reasonable extant which is 32%, green color represent to great extant which is 33%, and purple color is representing I do not know which is 2% .

Conclusion Using quantitative tool we find the variables which affects the sales of nestle nectar juices. These all variables have direct impact on sales. These variables are Price, Quality, and availability, variety of flavors, advertisements and packing. Now consumer is more aware of product, he/she can compare best available product in market by comparing these features. We find that people are getting brand and quality conscious. When we talk about quality people are ready to pay more but do not compromise on healthy food. Recommendations We recommend that nestle must maintain the quality of its products. It should decrease its price. In this way nestle can increase its market share by competing other brands available in market. Nestle should introduce more flavor. According to our survey people like mango flavor more than any flavor. Nestle juices should 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.

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