Marketing Research Report: Nestle Orange Juice Sales Decline Analysis
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This comprehensive marketing research report examines the declining sales of Nestle Orange Juice in Pakistan. The research delves into the organizational history of Nestle, its product portfolio, and the current market situation, highlighting the problem statement of declining sales of Nestle orange juice. The report explores the marketing mix, including product, price, place, and promotion strategies, and identifies the target market and key competitors. The research methodology includes exploratory research through focus groups and in-depth interviews with Nestle management, retailers, and consumers, as well as a literature search. The findings from focus groups and interviews reveal consumer attitudes, preferences, and concerns regarding the juice's purity and health aspects. A survey methodology was also employed to analyze consumer behavior, examining factors such as demographics, flavor preferences, price sensitivity, and the impact of advertising. The analysis includes cross-tabs to identify relationships between various factors and the consumption of Nestle Orange Juice, as well as retailer analysis to assess their perspectives on the product. The report concludes with limitations, recommendations, and a consumer and retailer questionnaire, providing valuable insights for Nestle to address the sales decline and improve its marketing strategies.
Marketing Research- Nestle Juices
TABLE OF CONTENTS
TABLE OF CONTENTS..........................................................................................1
ORGANIZATIONAL HISTORY................................................................................5
PRODUCTS.........................................................................................................5
Milk, Dairy And Chilled Dairy...........................................................................................5
Beverages.......................................................................................................................5
Bottled Water..................................................................................................................5
Nestle Juices....................................................................................................................5
Baby Food.......................................................................................................................6
Prepared Meals................................................................................................................6
Break Fast Cereals...........................................................................................................6
Chocolates & Confectionary............................................................................................6
CURRENT SITUATION..........................................................................................6
PROBLEM STATEMENT........................................................................................6
SALES GROWTH..........................................................................................................................7
CUSTOMER ATTITUDES..................................................................................................................7 NESTLÉ’S
CONCERN............................................................................................8
MARKETING MIX.................................................................................................8
PRODUCT.................................................................................................................................9
PRICE.....................................................................................................................................9
PLACE.....................................................................................................................................9
PROMOTION...............................................................................................................................9 TARGET
MARKET................................................................................................9
COMPETITORS..................................................................................................10
COMPETITOR ANALYSIS................................................................................................................11 Shezan All
Pure..............................................................................................................11
Minute Maid...................................................................................................................11
Haleeb Good Day...........................................................................................................11
11.0. INFORMATION NEEDS...............................................................................11
SYNOPSIS........................................................................................................11 RESEARCH
QUESTION.......................................................................................12
6.0. HYPOTHESIS..............................................................................................13
7.0. RESEARCH OBJECTIVE................................................................................13
EXPLORATORY RESEARCH.................................................................................14
FOCUS GROUPS........................................................................................................................15 Details Of First Focus
Group..........................................................................................16
Details Of Second Focus Group......................................................................................16
Details Of Third Focus Group.........................................................................................16
Questions to Be Asked During Focus Group Discussion.................................................16
1
TABLE OF CONTENTS
TABLE OF CONTENTS..........................................................................................1
ORGANIZATIONAL HISTORY................................................................................5
PRODUCTS.........................................................................................................5
Milk, Dairy And Chilled Dairy...........................................................................................5
Beverages.......................................................................................................................5
Bottled Water..................................................................................................................5
Nestle Juices....................................................................................................................5
Baby Food.......................................................................................................................6
Prepared Meals................................................................................................................6
Break Fast Cereals...........................................................................................................6
Chocolates & Confectionary............................................................................................6
CURRENT SITUATION..........................................................................................6
PROBLEM STATEMENT........................................................................................6
SALES GROWTH..........................................................................................................................7
CUSTOMER ATTITUDES..................................................................................................................7 NESTLÉ’S
CONCERN............................................................................................8
MARKETING MIX.................................................................................................8
PRODUCT.................................................................................................................................9
PRICE.....................................................................................................................................9
PLACE.....................................................................................................................................9
PROMOTION...............................................................................................................................9 TARGET
MARKET................................................................................................9
COMPETITORS..................................................................................................10
COMPETITOR ANALYSIS................................................................................................................11 Shezan All
Pure..............................................................................................................11
Minute Maid...................................................................................................................11
Haleeb Good Day...........................................................................................................11
11.0. INFORMATION NEEDS...............................................................................11
SYNOPSIS........................................................................................................11 RESEARCH
QUESTION.......................................................................................12
6.0. HYPOTHESIS..............................................................................................13
7.0. RESEARCH OBJECTIVE................................................................................13
EXPLORATORY RESEARCH.................................................................................14
FOCUS GROUPS........................................................................................................................15 Details Of First Focus
Group..........................................................................................16
Details Of Second Focus Group......................................................................................16
Details Of Third Focus Group.........................................................................................16
Questions to Be Asked During Focus Group Discussion.................................................16
1
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Marketing Research- Nestle Juices
IN-DEPTH INTERVIEWS.................................................................................................................17 Proposed Interviewee
1 ................................................................................................17
Proposed Interviewee 2.................................................................................................17
Proposed Interviewee 3 ................................................................................................18 Questions To Be Asked
From Management...................................................................18
Questions To Be Asked from Retailers and Wholesalers................................................18
LITERATURE SEARCH...................................................................................................................19 Haleeb Good
Day...........................................................................................................19
Shezan All Pure..............................................................................................................20
FOCUS GROUPS DETAILS..................................................................................20
GOALS TO BE ACHIEVED THROUGH FOCUS GROUP..................................................................................20
PROCEDURE USED TO PLAN FOCUS GROUP ..........................................................................................20
REASON FOR CONDUCTING THREE FOCUS GROUPS...............................................................................20
FOCUS GROUP 1...............................................................................................21
KEY FINDINGS OF FOCUS GROUP 1................................................................................................22
FOCUS GROUP 2...............................................................................................23
KEY FINDINGS OF FOCUS GROUP 2................................................................................................24
FOCUS GROUP 3...............................................................................................25
KEY FINDINGS OF FOCUS GROUP 3................................................................................................27
SUMMARY OF FOCUS GROUP FINDINGS.............................................................................................28
LIMITATIONS OF FINDINGS............................................................................................................29
IN-DEPTH INTERVIEWS.....................................................................................29
INTERVIEW # 1........................................................................................................................29
Results of Interview Conducted At NESTLE....................................................................29
INTERVIEW # 2........................................................................................................................31
Findings Of Interview Conducted At AL FATAH..............................................................31
INTERVIEW # 3........................................................................................................................32
Findings Of Interview Conducted At HKB.......................................................................32
INTERVIEW # 4........................................................................................................................32
Findings Of Interview Conducted At Metro.....................................................................33
INTERVIEW # 5........................................................................................................................33
Findings Of Interview Conducted At Small Retailers......................................................33
SUMMARY...............................................................................................................................33
INTERVIEW # 6........................................................................................................................33
Findings of Interview Conducted At NESTLE..................................................................34
LITERATURE SEARCH........................................................................................34
Minute Maid...................................................................................................................35
Haleeb Good Day..........................................................................................................35
Shezan All Pure.............................................................................................................35
DATA COLLECTION............................................................................................36
SURVEY METHODOLOGY...................................................................................36
CONSUMER ANALYSIS.......................................................................................39
2
IN-DEPTH INTERVIEWS.................................................................................................................17 Proposed Interviewee
1 ................................................................................................17
Proposed Interviewee 2.................................................................................................17
Proposed Interviewee 3 ................................................................................................18 Questions To Be Asked
From Management...................................................................18
Questions To Be Asked from Retailers and Wholesalers................................................18
LITERATURE SEARCH...................................................................................................................19 Haleeb Good
Day...........................................................................................................19
Shezan All Pure..............................................................................................................20
FOCUS GROUPS DETAILS..................................................................................20
GOALS TO BE ACHIEVED THROUGH FOCUS GROUP..................................................................................20
PROCEDURE USED TO PLAN FOCUS GROUP ..........................................................................................20
REASON FOR CONDUCTING THREE FOCUS GROUPS...............................................................................20
FOCUS GROUP 1...............................................................................................21
KEY FINDINGS OF FOCUS GROUP 1................................................................................................22
FOCUS GROUP 2...............................................................................................23
KEY FINDINGS OF FOCUS GROUP 2................................................................................................24
FOCUS GROUP 3...............................................................................................25
KEY FINDINGS OF FOCUS GROUP 3................................................................................................27
SUMMARY OF FOCUS GROUP FINDINGS.............................................................................................28
LIMITATIONS OF FINDINGS............................................................................................................29
IN-DEPTH INTERVIEWS.....................................................................................29
INTERVIEW # 1........................................................................................................................29
Results of Interview Conducted At NESTLE....................................................................29
INTERVIEW # 2........................................................................................................................31
Findings Of Interview Conducted At AL FATAH..............................................................31
INTERVIEW # 3........................................................................................................................32
Findings Of Interview Conducted At HKB.......................................................................32
INTERVIEW # 4........................................................................................................................32
Findings Of Interview Conducted At Metro.....................................................................33
INTERVIEW # 5........................................................................................................................33
Findings Of Interview Conducted At Small Retailers......................................................33
SUMMARY...............................................................................................................................33
INTERVIEW # 6........................................................................................................................33
Findings of Interview Conducted At NESTLE..................................................................34
LITERATURE SEARCH........................................................................................34
Minute Maid...................................................................................................................35
Haleeb Good Day..........................................................................................................35
Shezan All Pure.............................................................................................................35
DATA COLLECTION............................................................................................36
SURVEY METHODOLOGY...................................................................................36
CONSUMER ANALYSIS.......................................................................................39
2
Marketing Research- Nestle Juices
ANALYSIS OF RESPONSES TO GENERAL QUESTIONS ..............................................................................39
Gender..........................................................................................................................39
Age................................................................................................................................40
Residential Area............................................................................................................42
Income Bracket.............................................................................................................43
Degree of Liking Nestle Juice.........................................................................................44
What Flavor do you Like The Most.................................................................................45
Price..............................................................................................................................46
Packaging......................................................................................................................47
Quality...........................................................................................................................48
Taste.............................................................................................................................49
Sugar Content...............................................................................................................50
Advertisment.................................................................................................................51
Appealing Advertisement..............................................................................................52
Frequency of Consuming Nestle Orange Juice...............................................................53
Purchase of Juices..........................................................................................................54
Frequescy Of Consuming on Daily Basis........................................................................55
Choice of Barand If Nestle Orange Juice Is Not Available...............................................56
Latest Add of Nestle Orange Juice.................................................................................57
CONCLUSION ...........................................................................................................................58
CROSS TABS...........................................................................................................................59
EFFECT OF INCOME ON CONSUMPTION OF JUICE ..........................................................59
Analysis....................................................................................................................................59
Results.....................................................................................................................................60
Effect Of Gender On Degree Of Liking Nestle Orange Juice...........................................60
Analysis....................................................................................................................................60
Results.....................................................................................................................................61
Effect Of Age On Consumption Of Nestle Orange Juice..................................................61
Analysis....................................................................................................................................61
Results.....................................................................................................................................63
Effect Of Taste On Consumption Of Nestle Orange Juice...............................................63
Analysis....................................................................................................................................64
Results.....................................................................................................................................65
Effect Of Price On Consumption Of Nestle Orange Juice................................................65
Analysis....................................................................................................................................66
Results.....................................................................................................................................66
Effect Of Advertisement On Consumption Of Nestle Orange Juice.................................66
Analysis....................................................................................................................................67
Results.....................................................................................................................................68
Effect Of Liking Nestle Juice On Liking Nestle Orange Juice...........................................68
Analysis....................................................................................................................................69
Results.....................................................................................................................................70
Effect Of Taste on Degree of Liking Shezan...................................................................70
Analysis....................................................................................................................................71
Results.....................................................................................................................................72
Satisfaction of Consumers with the Packaging of Nestle Orange Juice..........................72
Analysis....................................................................................................................................73
Results.....................................................................................................................................73
RETAILER ANALYSIS.........................................................................................74
3
ANALYSIS OF RESPONSES TO GENERAL QUESTIONS ..............................................................................39
Gender..........................................................................................................................39
Age................................................................................................................................40
Residential Area............................................................................................................42
Income Bracket.............................................................................................................43
Degree of Liking Nestle Juice.........................................................................................44
What Flavor do you Like The Most.................................................................................45
Price..............................................................................................................................46
Packaging......................................................................................................................47
Quality...........................................................................................................................48
Taste.............................................................................................................................49
Sugar Content...............................................................................................................50
Advertisment.................................................................................................................51
Appealing Advertisement..............................................................................................52
Frequency of Consuming Nestle Orange Juice...............................................................53
Purchase of Juices..........................................................................................................54
Frequescy Of Consuming on Daily Basis........................................................................55
Choice of Barand If Nestle Orange Juice Is Not Available...............................................56
Latest Add of Nestle Orange Juice.................................................................................57
CONCLUSION ...........................................................................................................................58
CROSS TABS...........................................................................................................................59
EFFECT OF INCOME ON CONSUMPTION OF JUICE ..........................................................59
Analysis....................................................................................................................................59
Results.....................................................................................................................................60
Effect Of Gender On Degree Of Liking Nestle Orange Juice...........................................60
Analysis....................................................................................................................................60
Results.....................................................................................................................................61
Effect Of Age On Consumption Of Nestle Orange Juice..................................................61
Analysis....................................................................................................................................61
Results.....................................................................................................................................63
Effect Of Taste On Consumption Of Nestle Orange Juice...............................................63
Analysis....................................................................................................................................64
Results.....................................................................................................................................65
Effect Of Price On Consumption Of Nestle Orange Juice................................................65
Analysis....................................................................................................................................66
Results.....................................................................................................................................66
Effect Of Advertisement On Consumption Of Nestle Orange Juice.................................66
Analysis....................................................................................................................................67
Results.....................................................................................................................................68
Effect Of Liking Nestle Juice On Liking Nestle Orange Juice...........................................68
Analysis....................................................................................................................................69
Results.....................................................................................................................................70
Effect Of Taste on Degree of Liking Shezan...................................................................70
Analysis....................................................................................................................................71
Results.....................................................................................................................................72
Satisfaction of Consumers with the Packaging of Nestle Orange Juice..........................72
Analysis....................................................................................................................................73
Results.....................................................................................................................................73
RETAILER ANALYSIS.........................................................................................74
3
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Marketing Research- Nestle Juices
ANALYSIS OF RESPONSES TO GENERAL QUESTIONS ..............................................................................74 Location Of
Retailers.....................................................................................................74
Degree Of Satisfaction with Packaging Of Nestle Orange Juice......................................75
Major Competitors of Nestle Orange Juice.....................................................................76
Duration in Retail Business ...........................................................................................77
Regular Supply Of Nestle Orange Juice..........................................................................78
Affect of Price Change On Sales....................................................................................79
NESTLE CHILLERS..........................................................................................................80
Packaging of Nestle Juices which sells the most............................................................81
CONCLUSION.....................................................................................................................82
CROSS TABS...........................................................................................................................83 Preference of Retailers
To Stock Nestle Orange Juice....................................................83
Preference By Retailers to Stock Shezan Orange Juice..................................................84
Results.....................................................................................................................................85
Preference By Retailers to Stock Minute Maid Juice.......................................................86
Analysis....................................................................................................................................86
Results.....................................................................................................................................87
RELATION OF ADVERTISEMENT WITH SALE OF NESTLE ORANGE JUICE.........................................................87
Analysis....................................................................................................................................88
Result:......................................................................................................................................88
Effect of Sales of Nestle Orange Juice On Profit Margin.................................................88
Analysis....................................................................................................................................89
Results.....................................................................................................................................89
Effect of Sales of Shezan Orange Juice On Profit Margin................................................90
Analysis....................................................................................................................................90
Effect Of Price Change On Profit Margin of Nestle Orange Juice.....................................91
Analysis....................................................................................................................................92
Results.....................................................................................................................................92
LIMITATION......................................................................................................93
RECOMMENDATION..........................................................................................93
......................................................................................................................94
CONCLUSION ...................................................................................................95
CONSUMER QUESTIONNAIRE.............................................................................97
RETAILER QUESTIONNAIRE..............................................................................102
REFERENCES..................................................................................................113
4
ANALYSIS OF RESPONSES TO GENERAL QUESTIONS ..............................................................................74 Location Of
Retailers.....................................................................................................74
Degree Of Satisfaction with Packaging Of Nestle Orange Juice......................................75
Major Competitors of Nestle Orange Juice.....................................................................76
Duration in Retail Business ...........................................................................................77
Regular Supply Of Nestle Orange Juice..........................................................................78
Affect of Price Change On Sales....................................................................................79
NESTLE CHILLERS..........................................................................................................80
Packaging of Nestle Juices which sells the most............................................................81
CONCLUSION.....................................................................................................................82
CROSS TABS...........................................................................................................................83 Preference of Retailers
To Stock Nestle Orange Juice....................................................83
Preference By Retailers to Stock Shezan Orange Juice..................................................84
Results.....................................................................................................................................85
Preference By Retailers to Stock Minute Maid Juice.......................................................86
Analysis....................................................................................................................................86
Results.....................................................................................................................................87
RELATION OF ADVERTISEMENT WITH SALE OF NESTLE ORANGE JUICE.........................................................87
Analysis....................................................................................................................................88
Result:......................................................................................................................................88
Effect of Sales of Nestle Orange Juice On Profit Margin.................................................88
Analysis....................................................................................................................................89
Results.....................................................................................................................................89
Effect of Sales of Shezan Orange Juice On Profit Margin................................................90
Analysis....................................................................................................................................90
Effect Of Price Change On Profit Margin of Nestle Orange Juice.....................................91
Analysis....................................................................................................................................92
Results.....................................................................................................................................92
LIMITATION......................................................................................................93
RECOMMENDATION..........................................................................................93
......................................................................................................................94
CONCLUSION ...................................................................................................95
CONSUMER QUESTIONNAIRE.............................................................................97
RETAILER QUESTIONNAIRE..............................................................................102
REFERENCES..................................................................................................113
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Marketing Research- Nestle Juices
ORGANIZATIONAL HISTORY
Nestlé is a multinational packaged food company founded and headquartered in Switzerland. It
resulted from a merger in 1905 between the Anglo-Swiss Milk Company for milk products
established in 1866 and the Farine Lactée Henri Nestlé Company set up in 1867.
The Company is engaged in manufacturing, processing and sale of food products in Pakistan.
The company offers milk, dairy, and chilled dairy products, including UHT milk, yogurt, raita,
ghee, and cream; beverages, such as coffee, juices, and instant drinks; and bottled water in
nonreturnable and bulk bottles for home and office delivery. It also offers infant cereals;
prepared meals, such as noodles; breakfast cereals; and mints, chocolates, and confectionery and
culinary products.
The company, formerly known as Nestle Milkpak, Ltd., was founded in 1979 and is based in
Lahore, Pakistan. Nestle Pakistan Limited is a subsidiary of Nestle S.A. It operates in
Sheikhupura, Kabariwala, Islamabad and Karachi.
PRODUCTS
MILK, DAIRY AND CHILLED DAIRY
Nestle Nesvita
Nido
Neslac
Everyday
Yogurt
Fruit Yogurt
Raita
Milk Pak Cream
Milk Pak Desi Ghee
BEVERAGES
BOTTLED WATER
Nestle pure life
5
ORGANIZATIONAL HISTORY
Nestlé is a multinational packaged food company founded and headquartered in Switzerland. It
resulted from a merger in 1905 between the Anglo-Swiss Milk Company for milk products
established in 1866 and the Farine Lactée Henri Nestlé Company set up in 1867.
The Company is engaged in manufacturing, processing and sale of food products in Pakistan.
The company offers milk, dairy, and chilled dairy products, including UHT milk, yogurt, raita,
ghee, and cream; beverages, such as coffee, juices, and instant drinks; and bottled water in
nonreturnable and bulk bottles for home and office delivery. It also offers infant cereals;
prepared meals, such as noodles; breakfast cereals; and mints, chocolates, and confectionery and
culinary products.
The company, formerly known as Nestle Milkpak, Ltd., was founded in 1979 and is based in
Lahore, Pakistan. Nestle Pakistan Limited is a subsidiary of Nestle S.A. It operates in
Sheikhupura, Kabariwala, Islamabad and Karachi.
PRODUCTS
MILK, DAIRY AND CHILLED DAIRY
Nestle Nesvita
Nido
Neslac
Everyday
Yogurt
Fruit Yogurt
Raita
Milk Pak Cream
Milk Pak Desi Ghee
BEVERAGES
BOTTLED WATER
Nestle pure life
5
Marketing Research- Nestle Juices
NESTLE JUICES
Fruita vital
Guava
Chonsa (mango)
Mango orange
Mango
Apple
Orange
Red Grape
Pineapple
BABY FOOD
Cerelac
PREPARED MEALS
Maggie 2Minutes Noodles
BREAK FAST CEREALS
Nestle Cornflakes
Nestle Kokocrunch
Nestle Honey Stars2
CHOCOLATES & CONFECTIONARY
Nestle Kitakat and Kitakat Chunky
CURRENT SITUATION
The main aim of Nestle is to reach every single Pakistani. Nestle currently launched a new
flavored juice in Pakistan that is Nestle Guvava in 2008.The profit and net profit margins
remained stable. Overall profit margin showed a slight increase but a slight decline in gross
profit margin was witnessed.
6
NESTLE JUICES
Fruita vital
Guava
Chonsa (mango)
Mango orange
Mango
Apple
Orange
Red Grape
Pineapple
BABY FOOD
Cerelac
PREPARED MEALS
Maggie 2Minutes Noodles
BREAK FAST CEREALS
Nestle Cornflakes
Nestle Kokocrunch
Nestle Honey Stars2
CHOCOLATES & CONFECTIONARY
Nestle Kitakat and Kitakat Chunky
CURRENT SITUATION
The main aim of Nestle is to reach every single Pakistani. Nestle currently launched a new
flavored juice in Pakistan that is Nestle Guvava in 2008.The profit and net profit margins
remained stable. Overall profit margin showed a slight increase but a slight decline in gross
profit margin was witnessed.
6
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PROBLEM STATEMENT
“To know the reason of decline in sales of Nestle orange juice”
SALES GROWTH
Nestle orange juice has been a flagship brand of Nestle juices since years. However, their sales
declined to -1 % as compared to last year.
Last year growth in sales This year growth in sales
20% -1%
• As per the meeting with the Brand manager juices, we got an insight about customer
attitude, competitors, product development etc.
• Total contribution of orange juice is 20% to revenue in the juices category; however the
overall market share of juices is 60%.
CUSTOMER ATTITUDES
The main concern that the consumer’s of Nestle Orange juices have regarding the juice is related
to the purity of the juice. The factor and the feature that they are most concerned with is that is
the juice 100% pure and healthy?
The responses of prior studies reveal:
People actually think that fruit juices are not that great for them because of the fructose
(fruit sugar). They think that when this frustose is processed its pure sugar gets
TERRIBLE for their health. So the solution to them is that if they want to have a taste of
orange they should try having an actual orange because the fiber in the pulp skin and
roughage will slow the absorbtion of the fructose.
Another group of poeple suggests that instead of having packed juices one should go for
natural ones with pulp and fibre etc. They think that, that is much better for their health.
Only when one is in hurry one should go for processed juices.
Yet another really inflexible lot thinks that juices are made from concentrated stuff which
as per them is not healthy at all.So they should always go for fresh jucies regarless of the
fact that they are in a hurry or not. And if they cannot get hold of fresh juices, they should
skip juices altogether.
7
PROBLEM STATEMENT
“To know the reason of decline in sales of Nestle orange juice”
SALES GROWTH
Nestle orange juice has been a flagship brand of Nestle juices since years. However, their sales
declined to -1 % as compared to last year.
Last year growth in sales This year growth in sales
20% -1%
• As per the meeting with the Brand manager juices, we got an insight about customer
attitude, competitors, product development etc.
• Total contribution of orange juice is 20% to revenue in the juices category; however the
overall market share of juices is 60%.
CUSTOMER ATTITUDES
The main concern that the consumer’s of Nestle Orange juices have regarding the juice is related
to the purity of the juice. The factor and the feature that they are most concerned with is that is
the juice 100% pure and healthy?
The responses of prior studies reveal:
People actually think that fruit juices are not that great for them because of the fructose
(fruit sugar). They think that when this frustose is processed its pure sugar gets
TERRIBLE for their health. So the solution to them is that if they want to have a taste of
orange they should try having an actual orange because the fiber in the pulp skin and
roughage will slow the absorbtion of the fructose.
Another group of poeple suggests that instead of having packed juices one should go for
natural ones with pulp and fibre etc. They think that, that is much better for their health.
Only when one is in hurry one should go for processed juices.
Yet another really inflexible lot thinks that juices are made from concentrated stuff which
as per them is not healthy at all.So they should always go for fresh jucies regarless of the
fact that they are in a hurry or not. And if they cannot get hold of fresh juices, they should
skip juices altogether.
7
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Marketing Research- Nestle Juices
As per the staff of Nestle, poeple are getting diverted towards imported drink which
includes orange juices as well. As people are getting more health conscious, they are
willing to spend more on their health and thus are willing to purchase imported juices
regardless of the cost factor. People receive Nestle juices to be better than imported
juices.
NESTLÉ’S CONCERN
For Nestle, in their juices category, Nestle Orange has been their flagship brand since its
introduction in the market. As mentioned earlier, the total contribution of orange juice for Nestle
has been 20% until last year. However, due to changes in consumer’s attitudes, for some reason
or the other, the sales drastically decreased from 20% to negative 1% from last year to current
year. This has been a major area of concern for the organization, its top management and all
subsequent lower level staff. People at Nestle are really looking towards finding ways to bring
their flagship brand back to the position it was holding for years.
We discussed several issues with them to get started
with our research and to know what actually could
be the reason behind declining sales, the results of
the discussion were:
Nestle orange juice has always been the
leading juice among all available nestle
flavors, it showed leading sales. However,
this year the leading sales were taken by
apple juice.
There were no quality issues with Nestle
Orange juice, so it was surprising for the juices team to see negative sales. The
availability of Orange Juice was perfect and there was not any such juice launched which
could take away the share from orange juice, nor there were any new competitors.
According to the manager, being the pure orange juice with no artificial flavor, and
further added vitamin C should have improved the sales. However this was not what
actually happened.
MARKETING MIX
The Marketing environment at Nestle focuses on the principle of satisfying consumer needs. The
overall trust of consumers in Nestlé’s brands and products comes from a quality image that has
been continuously strengthened for over 130 years.
Nestlé strives to increase this trust through its commitment to environmentally sound business
practices. For this purpose Nestle:
8
As per the staff of Nestle, poeple are getting diverted towards imported drink which
includes orange juices as well. As people are getting more health conscious, they are
willing to spend more on their health and thus are willing to purchase imported juices
regardless of the cost factor. People receive Nestle juices to be better than imported
juices.
NESTLÉ’S CONCERN
For Nestle, in their juices category, Nestle Orange has been their flagship brand since its
introduction in the market. As mentioned earlier, the total contribution of orange juice for Nestle
has been 20% until last year. However, due to changes in consumer’s attitudes, for some reason
or the other, the sales drastically decreased from 20% to negative 1% from last year to current
year. This has been a major area of concern for the organization, its top management and all
subsequent lower level staff. People at Nestle are really looking towards finding ways to bring
their flagship brand back to the position it was holding for years.
We discussed several issues with them to get started
with our research and to know what actually could
be the reason behind declining sales, the results of
the discussion were:
Nestle orange juice has always been the
leading juice among all available nestle
flavors, it showed leading sales. However,
this year the leading sales were taken by
apple juice.
There were no quality issues with Nestle
Orange juice, so it was surprising for the juices team to see negative sales. The
availability of Orange Juice was perfect and there was not any such juice launched which
could take away the share from orange juice, nor there were any new competitors.
According to the manager, being the pure orange juice with no artificial flavor, and
further added vitamin C should have improved the sales. However this was not what
actually happened.
MARKETING MIX
The Marketing environment at Nestle focuses on the principle of satisfying consumer needs. The
overall trust of consumers in Nestlé’s brands and products comes from a quality image that has
been continuously strengthened for over 130 years.
Nestlé strives to increase this trust through its commitment to environmentally sound business
practices. For this purpose Nestle:
8
Marketing Research- Nestle Juices
Bases environmental claims in advertising, promotional material, labeling and corporate
communications on solid scientific evidence;
selects materials and printing methods for merchandising materials such as:
o consumer offers, o
in-store promotions, o
Displaying materials,
leaflets and printed
materials in light of
environmental
considerations.
PRODUCT
• Nestle Orange juice
• Flagship brand (number 1 brand in juices)
• 100% pure, no preservatives, no artificial flavor added
PRICE
• 1000 ml Rs. 75
• 200 ml Rs. 18
PLACE
Available at all major cities such as
o Lahore o
Islamabad o
Multan o
Faisalabad o
Gujranwala o
Karachi
9
Bases environmental claims in advertising, promotional material, labeling and corporate
communications on solid scientific evidence;
selects materials and printing methods for merchandising materials such as:
o consumer offers, o
in-store promotions, o
Displaying materials,
leaflets and printed
materials in light of
environmental
considerations.
PRODUCT
• Nestle Orange juice
• Flagship brand (number 1 brand in juices)
• 100% pure, no preservatives, no artificial flavor added
PRICE
• 1000 ml Rs. 75
• 200 ml Rs. 18
PLACE
Available at all major cities such as
o Lahore o
Islamabad o
Multan o
Faisalabad o
Gujranwala o
Karachi
9
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Marketing Research- Nestle Juices
PROMOTION
• In order to promote their products Nestle Juices uses the following medium.
o Bill boards o
Above The Line
o Below The
Line
TARGET MARKET
The target market of Nestle juices includes:
• Both male and female between the age group of 19-31
• Health conscious people
• Socio eco class SEC A and B
• Urban areas
• Career oriented and life starters
COMPETITORS
• Shezan All Pure
• Haleeb Good Day
• Minute Maid (Coco Cola)
• Other imported brands
COMPETITOR ANALYSIS
SHEZAN ALL PURE
Price (250ml) = Rs. 10
Price (1000 ml) = Rs. 60
10
PROMOTION
• In order to promote their products Nestle Juices uses the following medium.
o Bill boards o
Above The Line
o Below The
Line
TARGET MARKET
The target market of Nestle juices includes:
• Both male and female between the age group of 19-31
• Health conscious people
• Socio eco class SEC A and B
• Urban areas
• Career oriented and life starters
COMPETITORS
• Shezan All Pure
• Haleeb Good Day
• Minute Maid (Coco Cola)
• Other imported brands
COMPETITOR ANALYSIS
SHEZAN ALL PURE
Price (250ml) = Rs. 10
Price (1000 ml) = Rs. 60
10
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Marketing Research- Nestle Juices
MINUTE MAID
Small Bottle = Rs. 35
Large Bottle = Rs. 90
HALEEB GOOD DAY
Price = Rs. 12
11.0. INFORMATION NEEDS
We visited Nestle and interviewed Miss Beenish Pervaiz (Brand Manager, Nestle Juices), to get
the information regarding the product in which company is currently facing problem. She told us
about the declining sales of Nestle Orange Juice and asked us to provide the company the
following information:
• Study of specific areas which are the root cause of decline in sales
• To find the exact information regarding consumer ‘s taste and preferences
• Awareness of the brand in various socio economic classes and geographical areas
• To identify the correct target market
• What strategies competitors are using and how that can be tackled
• To find if there is problem with advertisement and promotion.
• Product quality
SYNOPSIS
Nestlé is one of the world’s largest nutrition Company in Pakistan. It is catering milk products,
beverages, food items, bottled water, juices, and breakfast and confectionary items. Keeping the
market taste in view Nestle has recently launched a new flavored juice product in Pakistan called
Guava.
Nestle orange juice is the finest and 100% pure orange juice among all other brands and it’s a
flagship brand among other Nestle juices. The price of Nestle Orange juice is competitive and
they are using all sorts of advertisement material and concepts to target their markrt. Their msjor
competitors are Shezan All pure, Haleeb Good Day and other imported brands.
The market share of Nestle orange juice is 60%. The research problem that we were told by the
Company was to know the reason of decline in sales of Nestle orange juice in Pakistan. Nestle
11
MINUTE MAID
Small Bottle = Rs. 35
Large Bottle = Rs. 90
HALEEB GOOD DAY
Price = Rs. 12
11.0. INFORMATION NEEDS
We visited Nestle and interviewed Miss Beenish Pervaiz (Brand Manager, Nestle Juices), to get
the information regarding the product in which company is currently facing problem. She told us
about the declining sales of Nestle Orange Juice and asked us to provide the company the
following information:
• Study of specific areas which are the root cause of decline in sales
• To find the exact information regarding consumer ‘s taste and preferences
• Awareness of the brand in various socio economic classes and geographical areas
• To identify the correct target market
• What strategies competitors are using and how that can be tackled
• To find if there is problem with advertisement and promotion.
• Product quality
SYNOPSIS
Nestlé is one of the world’s largest nutrition Company in Pakistan. It is catering milk products,
beverages, food items, bottled water, juices, and breakfast and confectionary items. Keeping the
market taste in view Nestle has recently launched a new flavored juice product in Pakistan called
Guava.
Nestle orange juice is the finest and 100% pure orange juice among all other brands and it’s a
flagship brand among other Nestle juices. The price of Nestle Orange juice is competitive and
they are using all sorts of advertisement material and concepts to target their markrt. Their msjor
competitors are Shezan All pure, Haleeb Good Day and other imported brands.
The market share of Nestle orange juice is 60%. The research problem that we were told by the
Company was to know the reason of decline in sales of Nestle orange juice in Pakistan. Nestle
11
Marketing Research- Nestle Juices
orange juice being the flagship brand showed declining sales this year which was the main area
of concern for the Company. The sales growth declined from 20% to -1% within this year.
The information needed to solve the research problem included information regarding marketing
mix, competitors, customer taste preferences and lifestyles etc.
RESEARCH QUESTION
Our research objectives will also include some questions through which we will try to solve our
research problem.
1. How important is the taste of Nestle Orange Juice important for the customer?
2. How much consumers are wiling to pay for Nestle Orange Juice?
3. How much the advertising campaign influences the purchase decision of the consumer?
4. What is the awareness level of Nestle Orange Juice among consumers?
5. How strong are competitors in creating loyalty among their target market?
6.0. HYPOTHESIS
The hypothesis that was formulated based on our research question are as follows:
• Household income has significant impact on the consumption of Juices.
• A significant relationship exists between gender and degree of liking of Nestle Orange
Juice
• A significant relationship exists between age and consumption of Nestle Orange Juice
12
orange juice being the flagship brand showed declining sales this year which was the main area
of concern for the Company. The sales growth declined from 20% to -1% within this year.
The information needed to solve the research problem included information regarding marketing
mix, competitors, customer taste preferences and lifestyles etc.
RESEARCH QUESTION
Our research objectives will also include some questions through which we will try to solve our
research problem.
1. How important is the taste of Nestle Orange Juice important for the customer?
2. How much consumers are wiling to pay for Nestle Orange Juice?
3. How much the advertising campaign influences the purchase decision of the consumer?
4. What is the awareness level of Nestle Orange Juice among consumers?
5. How strong are competitors in creating loyalty among their target market?
6.0. HYPOTHESIS
The hypothesis that was formulated based on our research question are as follows:
• Household income has significant impact on the consumption of Juices.
• A significant relationship exists between gender and degree of liking of Nestle Orange
Juice
• A significant relationship exists between age and consumption of Nestle Orange Juice
12
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