brm nestle

Business Research Methodology

HistoryNestlé is a Multinational Group, which was born in Switzerland. It is mainly active in the Food Industry and makes its Products in some Countries. Its capital is made up of Registered Shares, Bearer Shares and Participation Certificates. All are available to Investors of any Nationality. For historical reasons the company has two registered offices in Switzerland, one in Vevey (Vaud) and the other in Cham (Zug).

Milk Came FirstIn 1867 Henri Nestlé, a Chemist from Frankfurt who had settled in Vevey, became interested in Infant Feeding. To satisfy a clear need, he developed and produced Milk based Food for Babies whose mothers could not nurse them. Nestlé perfected a Revolutionary product, which immediately saved the life of a two-week-old baby that had rejected its mother’s milk. The new product soon became well known worldwide under the name “Farine Lactee Nestlé” (Nestlé’s Milk Food).

One year before, the Anglo-Swiss Condensed Milk Company was setup at Cham in the canton of Zug by two American brothers, Charles and George Page. They decided to use the abundant supply of good quality milk available in Switzerland to manufacture sweetened condensed milk and export it to other European countries, particularly Britain which dominated the European competition when the Page brothers launched their own milk food. Nestlé countered by manufacturing condensed milk.

The struggle became fierce. The rivals expanded steadily by building and buying factories abroad as well as by extending their product ranges. Finally, the two companies merged in 1905 under the name of Nestlé & Anglo-Swiss Condensed Milk Company. The new company maintained two registered offices, one in Vevey and the other in Cham. That is still the case although today only the Nestlé name and its distinctive trademark, a bird feeding its young in a nest, remain.

Stages in DiversificationFrom then on Nestlé diversified; it spread production into many countries, always in accordance with two parallel policies: “Internal” growth, on the one hand, which meant the creation and launching of new products, winning new market shares, setting up in new regions and building factories. “External” growth, on the other, in other worlds, a policy of mergers and acquisitions.

New product groups were steadily added to the initial range of condensed milks and infant formulas: chocolate and confectionery, instant and roasted coffee, culinary products, frozen foods, refrigerated products, instant drinks and pet foods. From 1974 onwards, the company diversified into the ophthalmic products sector and also acquired a major participation in the cosmetics sector.

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Historical Development

1866 Company’s foundation.

1905 Merger between Nestlé & Anglo-Swiss Condensed Milk.

1929 Merger with Peter-Cailler-Kohler Chocolates Suissee S.A.

1947 Merger with Alimentana S.A. (Maggi).

1971 Merger with Ursina-Franck (Switzerland).

1985 Acquisition of Carnation (USA).

1988 Acquisition of Buitoni-Perugina (Italy).

1988 Acquisition of Rowntree (GB).

1992 Acquisition of Perrier (France).

1995 Nestlé acquires Victor Schmidt & Sohne, Austria’s oldest confectionery, including the famous “Mozartkugeln”.

1997 Nestlé, through the Perrier Vittel Group, expands its min activities with the outright acquisition of San Pellegrino.

1998 Nestlé acquires Spillers Pet foods of the UK and strengthen in the pet food business which began in 1985 with the Carnation Friskies brand & introduced Nestlé Pure Life.

1999 Divestiture of Findus brand (except in Switzerland and its parts of Nestlé’s frozen food business in Europe.

Divestiture of Hills Bros., MJB and Chase & Sanborn roast ground coffee brands (USA).

Nestlé, an International EnterpriseThe companies that formed Nestlé decided a century ago to ensure the growth of the organization by setting up production plants abroad. The Anglo-Swiss Condensed Milk Company’s first factory outside Switzerland was opened at Chippenham in England in 1872. Several years later, the Henri Nestlé Company began production abroad at Fulton in the United States in 1900. In 1908 the Group setup operations in Australia. This was followed by Brazil in 1921, where for the first time it produced sweetened condensed milk, thus marking the beginning of its industrial activity in the developing countries.

The decision to setup industrial operations in new markets depends on several criteria. The availability of raw materials plays an important role in the manufacture of many products. Certain cost factors have to be taken into consideration as well as the economic climate generally and the consumers’ purchasing power and tastes. The company is guided in this respect by long-term goals and not by short-term objectives. It is essential for Nestlé that an industrial operation be in the reciprocal and lasting interests of both the company and the host country.

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Nestlé TodayToday, Nestlé produces in over 81 countries and achieves 98% of its turnover outside its country of origin, which sets it apart from most other large companies and also makes it the most multinational of the multinationals.

Nestlé is now the world’s largest food company which does 98% of its business outside Switzerland. It is present on all five continents, has an annual turnover of 70 billion Swiss Francs, new 522 factories in 81 countries, 200 operating companies, 1 basic research outer and 20 technological development groups, has more than 231,000 employees and more than 8000 products the world over.

The company owes it current status to the pioneering spirit inherited from its founders which continues to inspire it, to its concern Nestlé also as interests in non-food sectors, in cosmetics (a large share holding in L ‘Oreal) and ophthalmic products (acquisition of Alcon Laboratories Inc.) while continuing to give priority to food products with quality. Wherever possible, it sets up factories locally, employs personnel from the country concerned.

Structure of the GroupThe structure of the group has changed as it has grown. Now there are three companies in Vevey to coordinate the activities of some 2000 operating companies around the world.

The first, Nestlé S.A., is the holding company; it holds the financial shares in the allied companies. It job is to check the profitability of these companies and to ensure the profitability of the group as a whole. The holding company is responsible for allocating the financial resources in the best possible way. The second Vevey Company, Nestec S.A., has two areas of activity: research and technological development, and technical assistance. On a continuous basis it provides know-how in engineering, marketing, production, organization, management and personnel training available to the companies which manufacture and sell Nestlé products worldwide. Third company is Nestlé World Trade Corporation; it oversees the import and export of merchandise worldwide.

The 200 operating companies exercise a large degree of autonomy due to the decentralized organization of the group. On the basis of a global strategy decided by the group, each subsidiary puts forward its plan of action. It manages and develops its business with the main objective of offering the consumer a vast range of quality products suited to his needs.

Nestlé Milkpak LimitedIn Pakistan, Nestlé works under the name of Nestlé Milkpak Limited. But Nestlé entry to Pakistan was well before the formation of Nestlé Milkpak Limited its product Lactogen was already being imported in Pakistan by Burque Corporation (one of the major distributor of Nestlé). Altogether 175 cases of Lactogen were imported in year 1971 Burque Corporation acted as an agent for Nestlé and were the pointers in door to door selling.

In 1979, Milkpak Limited was founded by Syed Babar Ali afterward in 1981 Sheikhupura Factory starts the production of UHT Milk and other related fat surplus products. In 1984, Milkpak Limited starts selling Frost Juice Drink packaged by Packages Limited. In 1986

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Juice Drink plant starts commercial production. In 1988, Nestlé & Milkpak Limited sign an agreement to farm a joint venture company. Nestlé invests Rs.114 million and acquires 40.4% equity in 1988 and grain cereal plants start production in Milkpak Limited. Nestlé takes over 100% ownership of Kabirwala Dairy Ltd. (2 nd Factory) in 1990. In 1992 noodles plant starts production. Nestlé takes over in parts of Nestlé products which is previously handled by an agent.

In 1993 Nestlé invests Rs.160 million in working capital and increases equity share to 49.5%. In 1994 Milo plant and new UHT plant starts production. Company’s name changed to Nestlé Milkpak Limited in 1995 and invests Rs.300 million and increases equity share to 56.2%. In 1996 second engrain at Kabirwala and Polo plant at Sheikhupura start production. In 1997 Kabirwala dairy limited was merged into Nestlé Milkpak Limited. In 1998 Nestlé Milkpak starts aggressing new product introduction and set another factory named Indus Fruit Products Limited.

Markets & Offices Network of Nestlé MilkpakNestlé is really fortune for having the offices in that locality which are really play an important role in the business scenario. As so far the factories are concerned, one is at Sheikhupura, and other is at Kabirwala. The both factories are well located in the respective areas. One is in the Southern Punjab and other one covering the areas of Lahore, Faisalabad, Gujrat, and other related areas. And, the regional sales office are located in the following areas; Karachi, Hyderabad, Lahore, Multan, Faisalabad, Gujranwala, Peshawar, Quetta and Islamabad. So, all these are the locations which are playing important role in the networking of Nestlé.

As the available facilities are concerned, Sheikhupura factory is located at that location, from which access to other areas is easy. The motorway is very near to the factory as well as the two-way road passes before that goes to Lahore.

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WATERWater is the most precious blessing of Almighty Allah. It is the basic necessity of human being without which he/she cannot even imagine to survive. It would not be wrong if I say that water is the symbol of life. Water makes up 60% of an adults body weight. The human being needs two to three liters of water a day to function normally. But water is a rare resource indeed: 1% of world's water is drinkable, 97% is salt water and 2% is in the form of iceberg and glaciers. According to World Health Organization (WHO) the lack of drinking water is the leading cause of mortality in world today.

Pure and healthy drinking water is everyone's basic right. But I feel sorry to say that drinking water supplied by the public sector organizations is full of bacterial and chemical impurities. This is due to lack or improper usage of water treatment facilities. This is not the situation in rural areas, but in the major cities of Pakistan.

Piped water is supplied by a government organization and is periodically tested for quality. As such piped water is considered safe for drinking. However, sponsors advocacy programs through mass media for treating water by boiling it before use, as a precautionary measure. The rest of the drinking water is not supposed to be safe due to lack of quality tests and treatment of water before drinking. Piped water is more common in urban and hand pumped water in rural areas of Pakistan. As we all know that pipes are usually laid in sewerage lines, there is a greater possibility of its getting contaminated before reaching the users. Nowadays, everyone is busy in saying that we need development of the country. They are talking about literacy rates, over population etc. but no one or very few of us are taking into account the total quality management in the water supply. It seems to be a very fearful situation that we are least interested in the most important aspect of our lives as life is a function of water. L = F (water). Let's first talk about what is Total Quality Management in Water Supply. Total Quality Management (TQM) is the integration of all functions and processes within an organization in order to achieve continuous improvement of the quality of goods and services. The goal is customer's satisfaction. TQM in water supply means that all the processes involved must have an ultimate goal in their mind and that is quality. Quality in water supply includes the purification processes, cleanliness of the medium through which water is being supplied etc. In urban areas people now have searched an alternative. People now prefer to use bottled mineral water. Bottled mineral water is being used by more and more people because they are aware of the health risks from unsafe water. But here is a problem. According to PAKISTAN COUNCIL OF RESEARCH IN WATER RESOURCE, 52% of the branded and bottled mineral water available in the market is unsafe for human consumption. Only 10 out of 21 brands were found safe for human consumption and the remaining 11 brands were found unsafe for drinking. The PCRWR prepared the report after random samples of the bottled mineral water marketed by 21 renowned brands in Rawalpindi and Islamabad though these companies have a distribution network throughout the country. In Pakistan, water marketed by a multinational is supposed to be a pure drinking mineral water. The company produced pure drinking bottled water in 1998 with a specific goal in mind: to provide consumers in emerging countries with clean, high quality water. The water is produced with an industrial process that ensures purity and balanced mineral contents.

According to the CEO of the organization the confidence of the customers is based on their quality image and a reputation for high standards that has been built up over many years. They have a separate R&D department. One of the R&D’s primary goals is to be

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innovative, e.g. the companies will have to developed new caps such as a tamper-proof caps for it water bottles.Nestlé is always busy in anticipating customer’s desires. Nestlé waters observe changes in consumer behavior from country to country, to plan for future innovations. The market for bottled water is in a period of change. Over the next ten years sales is expected to be 6-8% annually. Nestlé waters pay attention to the change in consumers taste. It also adopts the distribution channels according to the local markets. There are few other quality brands in the local market but they are constrained by lack of proper distribution network.

Anyway organizations should realize the worst situation of drinking water in the country and more and more companies must enter in the market. They should take the responsibility of providing pure and qualitative drinking water to the innocent citizens of the country. It is an appeal from all the citizens of Pakistan to the organizations that are a part of this sector or want to be a part, it is a very sensitive sector as it directly affects ones life, so be honest and create quality in the bottled water to save the health of innocent people.

NESTLÉ PURE LIFEThe launch of Nestlé Pure Life in December 1998 was a truly historic event. This marks Nestlé Milkpak’s entry into the country’s fast growing water market. At the same time Pakistan became the first country where Nestlé launched this new, worldwide brand. Nestlé Pure Life is a premium drinking water produced to the highest standard of safety and purity, it is ideally balanced with essential minerals. It is available in two convenient sizes of 1.5 liters and 0.5 liters.

There are currently 21 Companies Manufacturing Mineral Water from which according to one study by the Pakistan Council of Research in Water Resources (PCRWR), Pakistan Standard & Quality Control Authority (PSQCA) and Consumer Rights Commission of Pakistan (CRCP) only 11 are fit to drink.

1. Niagra Fit2. Nestlé Fit3. Ava Fit4. Sparklets Unfit5. Masafi Unfit6. Aqua Safe Fit7. Cool Unfit8. Ab-e-Hayat Fit9. Rainbow Unfit10. Pearl Unfit11. Safa Unfit12. Zam Zam Unfit13. Fresh Unfit14. Musaffa Unfit15. Wellgreen Unfit16. Aqua Flow Fit17. Max Wellpu Fit18. Himalaya Unfit19. Brecon Carreg Fit20. Evian Fit21. Perrier Fit

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Research ObjectiveThe Purpose of this study is to Investigate & Find out what Benefits and Attributes do the Consumers want from a Bottled Mineral Water and that why Nestlé’s Pure Life is Preferred over other Mineral Waters.

IntroductionOur Research will be revolving around Nestlé’s Pure Life. We will be researching its Attributes, Market Share and the fact that it is the Market Leader or not. If not then what factors are stopping it from becoming one.

Research ProcessOur Research process will be including the following Processes

Samples School Students Family Members College Students Professionals

Interviews Questionnaire’s Data Analysis Findings Recommendations

Assumptions Research will be conducted in different Schools & Colleges of Lahore. The Questionnaire will be distributed to both Genders. The data will be collected from Primary Source. The Sample Size would be of 50. The Researchers assume that all respondents were unbiased. Time and Cost Limitations were faced during the Research Period.

Tests Used To Compile the Results we will be applying Statistical Tests like Chi-Square Test to test the

Dependency of different Attributes on the other ones.

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Gender

25 50.0 50.0 50.025 50.0 50.0 100.050 100.0 100.0

MaleFemaleTotal

ValidFrequency Percent Valid Percent

CumulativePercent


Questionnaire

Our Research Questionnaire consisted of 24 questions that were filled face to face by people from different walks of Life. The detail of the questionnaire is as under. The first section Q1-14 of the Questionnaire contains the questions from which we were to formulate and achieve our goals. The next section Q15-24 is for the General Information about the correspondents

Frequency Tables

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Age

10 20.0 20.0 20.010 20.0 20.0 40.010 20.0 20.0 60.010 20.0 20.0 80.010 20.0 20.0 100.050 100.0 100.0

13-1920-2526-3535-50Above 50Total


CumulativePercent

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Educational Level

14 28.0 28.0 28.01 2.0 2.0 30.0

16 32.0 32.0 62.011 22.0 22.0 84.08 16.0 16.0 100.0

50 100.0 100.0

Under Matric / O-LevelIntermediate / A-LevelsGraduationMasters / M-Phil / Ph. DACCA / CATTotal


CumulativePercent

Educational Level

ACCA / CAT

Masters / M-Phil / P

Graduation

Intermediate / A-Lev

Under Matric / O-Lev

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Usage of Mineral Water

28 56.0 56.0 56.017 34.0 34.0 90.05 10.0 10.0 100.0

50 100.0 100.0

RegularlySometimesDo Not UseTotal


CumulativePercent

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Which Brand of Mineral Water do you Prefer?

34 68.0 75.6 75.64 8.0 8.9 84.43 6.0 6.7 91.14 8.0 8.9 100.0

45 90.0 100.05 10.0

50 100.0

NestleCoolAvaMix BrandsTotal

Valid

SystemMissingTotal

Frequency Percent Valid PercentCumulative

Percent

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Why do you use Mineral Water

6 12.0 17.6 17.626 52.0 76.5 94.12 4.0 5.9 100.0

34 68.0 100.016 32.050 100.0

ConvenienceHygieneShow OffTotal

Valid

SystemMissingTotal


Percent

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You Buy Nestle Pure Life due to its

8 16.0 23.5 23.520 40.0 58.8 82.44 8.0 11.8 94.12 4.0 5.9 100.0

34 68.0 100.016 32.050 100.0

Brand NameQualityPackaging SizesAvailabilityTotal

Valid

SystemMissingTotal


Percent

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Rate the Factor effecting your Purchasing Decision the most

2 4.0 5.9 5.96 12.0 17.6 23.5

23 46.0 67.6 91.23 6.0 8.8 100.0

34 68.0 100.016 32.050 100.0

PriceAvailabilityQualityPackaging SizesTotal

Valid

SystemMissingTotal


Percent

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Are you Satisfied with the Quality Level of Nestle Pure Life

34 68.0 100.0 100.016 32.050 100.0

YesValidSystemMissing

Total


Percent

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Are you Satisfied with the Prices of Nestle Pure Life

29 58.0 85.3 85.35 10.0 14.7 100.0

34 68.0 100.016 32.050 100.0

YesNoTotal

Valid

SystemMissingTotal


Percent

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What do you think about the Prices of Nestle Pure Life? Are they

3 6.0 8.8 8.829 58.0 85.3 94.12 4.0 5.9 100.0

34 68.0 100.016 32.050 100.0

HighNormalLowTotal

Valid

SystemMissingTotal


Percent

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Do you think that the Prices of Nestle Pure Life justify the value for Money

29 58.0 85.3 85.35 10.0 14.7 100.0

34 68.0 100.016 32.050 100.0

YesNoTotal

Valid

SystemMissingTotal


Percent

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What are your Comments on the availability of Nestle Pure Life

7 14.0 20.6 20.621 42.0 61.8 82.46 12.0 17.6 100.0

34 68.0 100.016 32.050 100.0

Very GoodGoodNormalTotal

Valid

SystemMissingTotal


Percent

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If your Favourite Brand is not Available do you go to another outlet lookingfor it

29 58.0 85.3 85.35 10.0 14.7 100.0

34 68.0 100.016 32.050 100.0

YesNoTotal

Valid

SystemMissingTotal


Percent

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In Your Opinion what is their best Source of Advertising

16 32.0 47.1 47.111 22.0 32.4 79.46 12.0 17.6 97.11 2.0 2.9 100.0

34 68.0 100.016 32.050 100.0

Electronic MediaPrint MediaSignBoardsOthersTotal

Valid

SystemMissingTotal


Percent

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Are you Satisfied with the current Packaging Sizes of Nestle Pure Life

30 60.0 88.2 88.24 8.0 11.8 100.0

34 68.0 100.016 32.050 100.0

YesNoTotal

Valid

SystemMissingTotal


Percent

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Is the Packaging of Nestle Pure Life Attractive

27 54.0 79.4 79.47 14.0 20.6 100.0

34 68.0 100.016 32.050 100.0

YesNoTotal

Valid

SystemMissingTotal


Percent

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which factor influence u most while purchasing Mineral Water

12 24.0 35.3 35.34 8.0 11.8 47.1

12 24.0 35.3 82.46 12.0 17.6 100.0

34 68.0 100.016 32.050 100.0

Family MembersFriends PersuasionAdvertismentWord of MouthTotal

Valid

SystemMissingTotal


Percent

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Cross Tab’s / Chi-Square TestsGender & Age Vs Usage Of Mineral Water

Gender * Usage of Mineral Water

Crosstab

Count

20 3 2 258 14 3 25

28 17 5 50

MaleFemale

Gender

Total

Regularly Sometimes Do Not UseUsage of Mineral Water

Total

Chi-Square Tests

12.461a 2 .00213.238 2 .001

7.387 1 .007

50

Pearson Chi-SquareLikelihood RatioLinear-by-LinearAssociationN of Valid Cases

Value dfAsymp. Sig.

(2-sided)

2 cells (33.3%) have expected count less than 5. Theminimum expected count is 2.50.

a.

Age * Usage of Mineral Water

Crosstab

Count

5 2 3 105 4 1 104 6 0 109 1 0 105 4 1 10

28 17 5 50

13-1920-2526-3535-50Above 50

Age

Total

Regularly Sometimes Do Not UseUsage of Mineral Water

Total

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Chi-Square Tests

13.185a 8 .10613.886 8 .085

1.770 1 .183

50


Value dfAsymp. Sig.

(2-sided)


a.

Gender & Age Vs Brand of Mineral Water Preferred

Gender * Which Brand of Mineral Water do you Prefer?

Crosstab

Count

18 2 2 1 2316 2 1 3 2234 4 3 4 45

MaleFemale

Gender

Total

Nestle Cool Ava Mix BrandsWhich Brand of Mineral Water do you Prefer?

Total

Chi-Square Tests

1.429a 3 .6991.482 3 .686

.651 1 .420

45


Value dfAsymp. Sig.

(2-sided)


a.

Age * Which Brand of Mineral Water do you Prefer?

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Crosstab

Count

5 0 0 2 79 0 0 0 95 2 2 1 107 1 1 1 108 1 0 0 9

34 4 3 4 45

13-1920-2526-3535-50Above 50

Age

Total

Nestle Cool Ava Mix BrandsWhich Brand of Mineral Water do you Prefer?

Total

Chi-Square Tests

13.898a 12 .30716.159 12 .184

.803 1 .370

45


Value dfAsymp. Sig.

(2-sided)

15 cells (75.0%) have expected count less than 5. Theminimum expected count is .47.

a.

Gender & Age Vs Why Do You Use Mineral Water

Gender * Why do you use Mineral Water

Crosstab

Count

3 13 2 183 13 0 166 26 2 34

MaleFemale

Gender

Total

Convenience Hygiene Show OffWhy do you use Mineral Water

Total

Chi-Square Tests

1.889a 2 .3892.655 2 .265

.646 1 .421

34


Value dfAsymp. Sig.

(2-sided)


a.

Age * Why do you use Mineral Water

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Crosstab

Count

1 3 1 53 6 0 92 3 0 50 6 1 70 8 0 86 26 2 34

13-1920-2526-3535-50Above 50

Age

Total

Convenience Hygiene Show OffWhy do you use Mineral Water

Total

Chi-Square Tests

10.287a 8 .24512.666 8 .124

1.297 1 .255

34


Value dfAsymp. Sig.

(2-sided)


a.

Gender & Age Vs Preference of Nestlé due to its

Gender * You Buy Nestle Pure Life due to its

Crosstab

Count

3 12 2 1 185 8 2 1 168 20 4 2 34

MaleFemale

Gender

Total

Brand Name QualityPackaging

Sizes Availability


Total

Chi-Square Tests

1.186a 3 .7561.193 3 .755

.195 1 .659

34


Value dfAsymp. Sig.

(2-sided)


a.

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Age * You Buy Nestle Pure Life due to its

Crosstab

Count

1 3 1 0 52 4 2 1 91 2 1 1 52 5 0 0 72 6 0 0 88 20 4 2 34

13-1920-2526-3535-50Above 50

Age

Total

Brand Name QualityPackaging

Sizes Availability


Total

Chi-Square Tests

7.773a 12 .8039.717 12 .641

1.564 1 .211

34


Value dfAsymp. Sig.

(2-sided)


a.

Gender & Age Vs Factors Effecting the Purchasing Decision

Gender * Rate the Factor effecting your Purchasing Decision

Crosstab

Count

0 5 11 2 182 1 12 1 162 6 23 3 34

MaleFemale

Gender

Total

Price Availability QualityPackaging

Sizes

Rate the Factor effecting your Purchasing Decision

Total

Chi-Square Tests

4.943a 3 .1765.949 3 .114

.125 1 .724

34


Value dfAsymp. Sig.

(2-sided)


a.

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Age * Rate the Factor effecting your Purchasing Decision

Crosstab

Count

0 0 4 1 51 0 7 1 91 0 3 1 50 4 3 0 70 2 6 0 82 6 23 3 34

13-1920-2526-3535-50Above 50

Age

Total

Price Availability QualityPackaging

Sizes

Rate the Factor effecting your Purchasing Decision

Total

Chi-Square Tests

16.860a 12 .15519.322 12 .081

2.100 1 .147

34


Value dfAsymp. Sig.

(2-sided)


a.

Gender & Age Vs Availability of Nestlé Pure Life

Gender * Availability of Nestle Pure Life

Crosstab

Count

7 5 6 180 16 0 167 21 6 34

MaleFemale

Gender

Total

Very Good Good NormalAvailability of Nestle Pure Life

Total

Chi-Square Tests

18.709a 2 .00023.964 2 .000

.067 1 .796

34


Value dfAsymp. Sig.

(2-sided)


a.

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Age * Availability of Nestle Pure Life

Crosstab

Count

2 3 0 55 4 0 90 5 0 50 3 4 70 6 2 87 21 6 34

13-1920-2526-3535-50Above 50

Age

Total

Very Good Good NormalAvailability of Nestle Pure Life

Total

Chi-Square Tests

22.419a 8 .00425.525 8 .001

11.040 1 .001

34


Value dfAsymp. Sig.

(2-sided)


a.

Gender & Age Vs Factors Influencing the Purchase

Gender * Factors Influencing Purchasing Decision

Crosstab

Count

9 2 5 2 183 2 7 4 16

12 4 12 6 34

MaleFemale

Gender

Total

FamilyMembers

FriendsPersuasion Advertisment Word of Mouth

Factors Influencing Purchasing Decision

Total

Chi-Square Tests

3.896a 3 .2734.036 3 .258

3.593 1 .058

34


Value dfAsymp. Sig.

(2-sided)


a.

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Age * Factors Influencing Purchasing Decision

Crosstab

Count

4 0 1 0 54 1 4 0 91 3 1 0 50 0 4 3 73 0 2 3 8

12 4 12 6 34

13-1920-2526-3535-50Above 50

Age

Total

FamilyMembers

FriendsPersuasion Advertisment Word of Mouth

Factors Influencing Purchasing Decision

Total

Chi-Square Tests

27.826a 12 .00629.174 12 .004

6.751 1 .009

34


Value dfAsymp. Sig.

(2-sided)


a.

Gender Vs Usage of Nestlé Pure Life

Ho: There is no significant relationship between Gender and Usage of Nestlé

H1: There is significant relationship between Gender and Usage of Nestlé

Findings:As our P value is greater than 0.05 that is 0.769, so we reject Ho & accept H1 that means there is significant relationship.

Age Vs Usage Of Nestlé Pure Life

Ho: There is no significant relationship between Age and Usage of Nestlé Pure Life

H1: There is significant relationship between Age and Usage of Nestlé Pure Life

Findings:As our P value is more than 0.05that is 0.449 so we reject Ho & accept H1 that means there is a significant relationship.

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Gender Vs Brand of Mineral Water Preferred

Ho: There is no significant relationship between Gender and Brand of Mineral Water Preferred

H1: There is significant relationship between Gender and Brand of Mineral Water Preferred


Age Vs Brand of Mineral Water Preferred

Ho: There is no significant relationship between Age and Brand of Mineral Water PreferredH1: There is significant relationship between Age and Brand of Mineral Water Preferred


Gender Vs Why Do You Use Mineral Water

Ho: There is no significant relationship between Gender and Why Do You Use Mineral Water

H1: There is significant relationship between Gender and Why Do You Use Mineral Water


Age Vs Why Do You Use Mineral Water

Ho: There is no significant relationship between Age and Why Do You Use Mineral WaterH1: There is significant relationship between Age and Why Do You Use Mineral Water


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Gender Vs Preference of Nestlé due to its

Ho: There is no significant relationship between Gender and Preference of Nestlé due to its

H1: There is significant relationship between Gender and Preference of Nestlé due to its


Age Vs Preference of Nestlé due to its

Ho: There is no significant relationship between Age and Preference of Nestlé due to itsH1: There is significant relationship between Age and Preference of Nestlé due to its


Gender Vs Factors Effecting the Purchasing Decision

Ho: There is no significant relationship between Gender and Factors Effecting the Purchasing Decision

H1: There is significant relationship between Gender and Factors Effecting the Purchasing Decision


Age Vs Factors Effecting the Purchasing Decision

Ho: There is no significant relationship between Age and Factors Effecting the Purchasing Decision

H1: There is significant relationship between Age and Factors Effecting the Purchasing Decision


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Gender Vs Availability of Nestlé Pure Life

Ho: There is no significant relationship between Gender and Availability of Nestlé Pure Life

H1: There is significant relationship between Gender and Availability of Nestlé Pure Life

Findings:As our P value is less than 0.05 that is 0.000, so we accept Ho & reject H1 that means there is no significant relationship.

Age Vs Availability of Nestlé Pure Life

Ho: There is no significant relationship between Age and Availability of Nestlé Pure LifeH1: There is significant relationship between Age and Availability of Nestlé Pure Life

Findings:As our P value is less than 0.05 that is 0.004, so we accept Ho & reject H1 that means there is no significant relationship.

Gender Vs Factors Influencing the Purchase

Ho: There is no significant relationship between Gender and Factors Influencing the Purchase

H1: There is significant relationship between Gender and Factors Influencing the Purchase


Age Vs Factors Influencing the Purchase

Ho: There is no significant relationship between Age and Factors Influencing the Purchase

H1: There is significant relationship between Age and Factors Influencing the Purchase


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Discussion Groups/ InterviewsApart from the questionnaires we also had a small chitchat with all of our Sampling Groups. All of our Conversations has been summarized below

College Going Students GroupThe objective of conducting this sampling group was to know students perception about bottled water.

Finding People usually like to drink soft drinks when they go out to eat. Mostly students do not prefer water to soft drinks In the view of students, hygiene and purity does not matter as far as water is

concerned. Some students prefer Abe-Nuqra because it is manufactured from Herbal Extracts.

But most people are not aware of it. Generally Students usually go for taste not quality or price but once awareness sets

in their choice might change. The general perception is that water should be tasteless and light People drink water for two purposes

i) Thirstii) With food

They do not drink it for health, skin or nutritious reasons except for those with some sort of health disorders.

No body wants to spend money on water. They would like to have it free no matter what the source is. This is the reason why the bottled water is their last choice.

Students do not prefer chilled water; they go for moderately cold water. One reason why some students don’t like coke or Pepsi is that team, 7-up and sprite

is clear and transparent.

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Students prefer 0.5 liters bottle for water, as they are easy to carry around and easily accessible.

Since Nestlé has lounged its bottle water students have become more brand conscious.

These results indicate that Nestlé is considered to the best-bottled water available in the market, whereas Ava is considered to be the second best and Cool was preferred least of all.

Family GroupThe objective of conducting this Sampling Group was to know a household family’s perception about bottled drinking water.

Issue Explored Perception of bottle water among household Buying pattern Marketing and advertising

FindingsFindings regarding this Sampling Group are as following:

In houses people usually use tap water for drinking purposes

When they go out of station then they usually prefer bottled water in different cities in different, e.g., in Karachi and Muree its quality is not that good.

People prefer cold drinks instead of water when they go out to eat in restaurants. Reason being that they want to spend money for something that has a taste whereas water is considered to be tasteless.

They would like to use water filters to purify water because they think that it can be trusted.

They would not go for boiled water because firstly it is a very long process and secondly they believe that boiling water at a certain temperature destroys some of its essential ingredients.

When people eat out they will not prefer to drink water provided by the restaurant because it might create some stomach problems. They would either ask for bottle water or a better option is to go for soft drinks.

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When buying bottled water, usually most important consideration is the quality and reputation or image of the company. People would never buy bottled water from a newly established company.

Most of the people here are price conscious. They would buy a product with a lesser price even if its quality is no that good.

People are not aware of bottled water because they are not that educated.

People do read contents stated on the label of bottled water. But they do not usually understand the composition. Whereas some people prefer bottled water which has lesser amount of salt in it.

People mostly prefer Pepsi over water. Because Pepsi has a taste, whereas health conscious people or those who avoid calories would definitely go for water.

Water is an effective source of quenching thirst instead of any other soft drink.

Company with a good and reputed name cannot afford to give bad quality products. This is the main reason why people prefer Nestlé’s pure life, because they know that their bottled water would be 100% pure.

If Nestlé would increase pure life’s price then people would shift to Ava because it would have relatively lesser price.

i) Quench thirst

ii) Hygienic

iii) Provides good quality water

Carrying a bottle has become a fashion in today’s world and has become a status symbol nowadays.

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School Going Students GroupThe objective of conducting this Sampling Group was to know school going students, perception about bottled water

Findings

These students prefer to drink Pepsi in summers. So, according to them consumption of Pepsi increase in hot weather because general perception among them is that Pepsi is an effective source of quenching thirst instead of water.

Students of this age group are least concerned about the quality and hygiene. They would eat or drink anything that taste good , no matter how unhygienic it is.

When they go to school they usually take water in their flasks with them. Some of the student do drink water from the water coolers available in the school whereas most them drink coke or Pepsi in the break time.

They would prefer chilled bottled water

In houses usually boiled water or filters are used

In school students bring bottles just to show off carrying bottled water has became fashion in educational institutions.

According to these students taste of Nestlé’s pure life is somewhat bitter.

They think the Pepsi is not an effective source of quenching thirst.

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Doctors GroupThe objective of conducting this Sampling Group was to know doctors opinion about bottled drinking water.

Findings

Doctors would prefer lesser level of salts in bottled water.

They think that bottled water or boiled water should be used in highly polluted areas.

In government hospitals people cannot afford to buy bottled water because of its high price.

When they go out to eat in restaurants they would drink water that is provided by the restaurants staff. It does not matter that whether is hygienic or not.

In their opinion price factors matters a lot. They will not prefer to spend Rs. 12 for a 0.5 liter bottled water.

They think that unless and until a person does not have some problem with his stomach, he would never go for bottled water.

Water is used more than Pepsi because water is a physical need whereas Pepsi is a psychological need.

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InterviewsWe also conducted a Survey of the nearest Bakeries to our houses to see and judge what their perception is about Nestlé Pure Life

Gourmet Bakery Younger people prefer chilled juices (can), beverages, and few prefer water.

Elderly people prefer water.

Chilled bottles are preferred.

Nestlé sells the most.

AVA sells moderately.

10-15 big carton of Nestlé daily sales.

5-8 small cartons

Nestlé supplies fresh stock after every 2 days.

Nestlé’s scheme for every carton 2 bottles free.

Profit on big bottle Rs.3 / bottle from Nestlé.

Profit on small bottle Rs.2.50 / bottle from Nestlé.

We give more space to those bottles which sell more.

Insists quality and promotion for new brands.

No space for stands for bottled water.

Do not favour stands.

Distribution, availability and brand image are important for success of bottled water.

Nestlé take back damaged goods.

Cool also has 0.5 liter bottles.

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Shezan Bakery People drink more mineral water than Coke or Pepsi. Before AVA used to sell more. New Nestlé is popular because of brand image. We have our own warehouse and our daily demand is brought from there. 10 cartons (small) of Nestlé sells daily. 20-25 bottles 1.5 liter sell daily (Nestlé). People like Nestlé’s water taste. Consider customer preferences before placing products on shelfs.

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CONCLUSION

After working on this project thoroughly we conclude that Nestlé has largest market share in mineral water’s market. Almost 68% of customer prefer Pure Life to any other. No doubt Nestlé is most famous name in food market, it has generated brand loyalty almost 68% of its customers prefer it because of its brand.

In negative aspect of Pure Life we may say that Nestlé is not successful in capturing the whole market. To say that Nestlé is doing target marketing would not be wrong. In a survey, about 34% customers are unsatisfied with availability of Nestlé. Another negative aspect of Pure Life is comparatively less profit margin for shopkeepers. Therefore, substandard shopkeepers prefer to sell other mineral water.

On the basis of surveys, interviews and collected data it could be suggested that if Nestlé want to capture whole market shares, it should lower its prices, give more customer values and should increase customer satisfaction in the quality. Nestlé should give special discount on special occasions.

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QUESTIONNAIRE

Note:i. This Questionnaire is for Educational Purpose only.

ii. All Information provided by you will be kept Confidential.iii. Please take your Time in going through & filling this Questionnaire.iv. In case you don’t understand a Particular Questionnaire, Please don’t feel

hesitant in asking the Group Members for help.

THANKING YOU IN ANTICIPATION FOR THE TIME YOU SPARED FOR US.

Part I

1. How often do you use Mineral Water

Regularly Sometimes I don’t use

(If your answer to Ques. # 1 is “ I don’t Use Mineral Water ”, move to the Question # 14, otherwise proceed with Ques. # 2)

2. Which Brand of Mineral Water do you prefer buying?

Nestlé Cool Ava Mix Brands

(If your answer to Ques. # 2 is “ Nestlé ”, move ahead, if not, then move to the next Part)

3. Why do you use Nestlé Pure Life?

Convenience Hygiene Show Off Others _______________

4. You buy Nestlé Pure Life due to its

Brand Name Quality Packaging Size Availability

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Others _______________

5. Please rate the following Factors in accordance to their Effectiveness in your Purchasing Decision

1 2 3 4 5

(Least influence) (Most influence)

Price __________ Availability __________ Quality __________ Packaging Sizes _________

6. Are you satisfied with the Quality Level of Nestlé Pure Life

Yes No

7. What do you think about the Prices of Nestlé Pure Life? Are they

Normal High Low

8. Do you think that the Prices of Nestlé Pure Life justify value for Money?

Yes No

9. What are your comments on the Availability of Nestlé Pure Life, is it

Very Good Good Normal Satisfactory No Comments

10. Do you go to alternative selling point if your favorite brand is not available at your regular buying place?

Yes No

11. In your opinion what is their best Source of Advertising?

Electronic Media Print Media

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Signboards Others _______________

12. Are you satisfied with the current Packaging Sizes of Nestlé Pure Life?

Yes No

If “YES” What other Packaging Sizes should be made Available _________

13. In your opinion, is the Packaging of Nestlé Pure Life Attractive?

Yes No

14. In your opinion, what are the ATTRIBUTES & BENEFITS that a Good Mineral Water should have, in order to CONVINCE people to buy it?

_____________________________________________________________________________________________________________________________________________________________________________________________________________________

Part II Demographic Information

A. Group Name ___________________ (For the Researcher to Fill)

B. Name ___________________ (Optional)

C. GenderMale Female

D. Age Group

13-19 20-25 26-35 35-50 Above 50

E. Marital Status

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Single Married Others _______________

F. Educational Level

Under Matric Matric / O-Levels Intermediate / A-Levels Graduation Masters ACCA / CAT

G. Significant Interests____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

H. Household Income (per month) in Rs.

10000-19999 20000-29999 30000-39999 40000-49999 50000-99999 100000 & Above

I. Location / Area of Residence ____________________

J. Personal Comments (If Any)____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Thanking You Once Again(Project Team Leader)

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.

PROJECT ONBUSINESS RESEARCH

INNESTLE

PROJECT SUBMITTED BY

ANAND NARAYAN-3510910050AISHWARYA GANESH-3510910025AMITH SASIDHARAN-3510910046

AMRITHA DAS-3510910049AMREEN RASUL MAZUMDAR-3510910047

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brm nestle

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