Literature Search
For our project Literature search is one of the key exploratory studies that we conducted, in fact literature search was the very initial study that we began our project with. The website that turned out to be most helpful as far as gathering information of Nestle was concerned was www.nestle.com.pk
FINANCIAL PERFORMANCE (DEC03-DEC07):
FY07 was a good year for NPL as its top line reached a new landmark of PKR 28 billion following an excellent growth of 28% compared to FY06. Primary contribution came from its pillar product categories, milks, baby food and juices. Fresh milk volume grew by 29% over the same period last year; however, this was still not sufficient to meet production requirements for the year.
The increasing sales trend (CAGR of 28% during FY03-FY07) is primarily attributed to continued focus on sales and marketing efforts, innovative strategies and a sound distribution network.
This robust growth in sales translated into a solid increasing operating profit of Rs 3.53 billion, an increase of 33%. However, this primarily relates to higher fixed cost absorption from inventory that led to lower profitability in FY'06. In addition, efforts in 2007 include a favorable movement in sales mix and rigorous fixed cost control.
The literature search helped us in gathering data regarding the competitors. On the web we found out who are the competitors of nestle in its juices line and more precisely in its orange juice. Literature search revealed that a few of our major competitors are: * Shezan All pure * Haleeb Good Day * Minute Maid
Minute Maid
One of the leading competitors of Nestle juice is Minute Maid launched by Coca Cola. Sales of still beverages, such as Powerade and Minute Maid fruit juices, jumped 14 percent by volume, far outpacing a four percent rise by sparkling beverages, such as Coke and Sprite.
Haleeb Good Day
Haleeb Good Day offers 100% pure orange juices without any added sugar, flavors or preservatives. Haleeb Good Day orange juice gives the consumers the absolute delight in taste, and revitalizes them at the same time. It is packed in a 6-layered Tetra Pack Brick Aseptic packaging. Shezan All Pure
Shezan All Pure juices enrich our senses with the fresh taste of 100% pure orange juice. A sip of All Pure helps our taste buds embark on a magical journey filled with the sweetest fruit sensations.
The data that was found helpful regarding Shezan is as follows:
Food & Personal Care-Products: SHEZAN INTERNATIONAL LIMITED
OVERVIEW (July 14 2006): One is impressed by its record highest sales and profitability. The company's shareholders must have rejoiced but its attractive profit distribution profile which has driven its shares market value to unprecedented heights.
There are several milestones which the company attained. It crossed for the second consecutive year the billion rupee mark in sales value. Its launches of branded products ie Shezan Twist Fruit Punch," Shezan All pure have shaken the competition. Shezan became pioneer in the field of converting fruits into pulps, concentrate and juices based on local fruits and supported by the technology of its American partners.
The market value of the share of Shezan International is being quoted at Rs 192 per share which is more than 19 times of the par value. During the last one year market value of the share remained very high between Rs 152 and Rs 238 per share. During the year under review, the company posted more than a billion rupees sales for the second consecutive year. The company generated sales in the sum of Rs 1.368 billion as against Rs 1.097 billion in the preceding year registering 24.8% growth.
The company made substantial investment in marketing promoting its extensive portfolio of brands which yielded good result in terms of higher sales. The bottle juice continued to perform well, with its sales up 22% over the previous year. Other products in juice-related category registered a robust growth following renewed promotional and marketing campaign.
During the year the company posted export sales at Rs 35.45 million as against Rs 37.73 million in the preceding year. It is reported that exports remained under pressure due to volatile security situation in its export markets and higher operational and shipping costs.
The company posted net profit after sales at Rs 103.24 million which is highest the in the company's history. The leadership in the enterprise has formulated future strategy to improve profitability by further improving sales volume and optimizing costs. Rising volume of sales will be further spurred by continuing to provide customers with a variety of impeccable quality food products which appeal to their changing preferences.
DATA COLLECTION
For collecting data, questionnaire was made; containing general question about the juice preference and then asking questions related to Nestle Orange juice to know about the brand. Two questionnaires were made to get them filled by consumers and retailers to get information from both retailers and consumers to know about the variables affecting sales of Nestle Orange Juice. Questionnaire has been attached in the appendix.
Survey METHODOLOGY
For the research under study sample size was as follows: * 100 samples of consumers and * 20 samples of retailer
Out of 100 samples of consumers only 78 were valid responses and others were discarded due to their invalid responses. In the retailers only 16 were the valid responses which can be thought as of taking a portion of the whole and studying that portion to make estimates about the whole. Consumers selected in the sample were students of * Lahore school of economics * LUMS * Punjab university * Fast * Hailey college of banking and Finance
Households units, health conscious people of SEC A and SEC B filled in the questionnaire. Retailers sampled in the study were located in different locations in Lahore and from big mart to small commercial shop. The retailers questionnaire were administered so as to have right responses .This was due to the communication gap as most of the retailers were unable to read English so it was to be administered.
Samples of consumers helped us in measuring attitude of people. Due to limited time sample size was small but having rightly defined target market results would be representative of target market.
Retailer Questionnaire
Name: __________________
Location: ___________________
How long have you been in the canteen? a. One year b. Two years c. Three years d. Others _______ (Please Specify)
Do you keen kitkat chocolate? Yes No
Which brands of chocolate do you keep? * Cadbury * Nestle * Amul * Others
Which is the most sold brands of chocolate? Rank a. ____ Nestle b. ____ Cadbury c. ____ Amul d. ____ Others
Do you get regular supplier of Nestle juice? a. Yes b. No
Does your outlet have a Nestle chiller? a. Yes b. No
If yes, then how many? _______
Who is the main customer of Nestle orange juice? a. College Students b. Family c. Others __________ (Please Specify)
Are consumers satisfied with the packaging of kit Kat chocolate ? a. Yes b. No
What do you think about the new advertising strategy of Kit Kat chocolate?
__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Do price changes have any effect on the sales of Kit kat? a. Yes b. No
How has the change in price affected the sales of kit kat recently?
__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Consumer Questionnaire
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PERSONAL INFORMATION -------------------------------------------------------------------------------------
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Gender:
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Male Female
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Age:
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Less than 15 16-20 21-25 26-30 31-35 and above
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Residential Area:
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Gulberg Defence Model Town Others______________
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Which income bracket do you fall in?
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Less than 15000 16000-25000 26000-35000 36000 and above
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Educational Level: ______________________ ______ (Please Specify)
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Ques. Do you drink juice? Yes No
Ques. What is your preference? Fresh Packaged Both
Ques.Which brand do you prefer? Shezan Nestle Minute Maid Haleeb Others ______________ (Please specify)
Ques.Which flavor do you like the most? Apple Pineapple Orange Grapes Guava Mixed Others ____________(Please specify)
DISLIKE
DISLIKE A LOT
NEUTRAL
LIKE
LIKE A LOT
Ques.Indicate your degree of liking. -------------------------------------------------
Shezan
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Nestle
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Minute Maid
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Haleeb
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Others Please specify
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Ques.Indicate your degree of liking.DISLIKE A LOT
DISLIKE
LIKE A LOT
LIKE
Apple
Pineapple
Orange
Grapes
Guava
Mixed
Other (Specify)
Very Unimportant
Ques.How important are the following factors in influencing your purchase of packaged juice?Neutral
Unimportant
Important
Very important
Price
Packaging
Quality
Taste
Sugar Free
Fruit Content
Appealing Advertisement
Ques How important are the following factors in influencing your purchase of packaged juice?
Neutral
Very Unimportant
Unimportant
Important
Very important
HALEEB ORANGE JUICE
Price
Packaging
Quality
Taste
Sugar Free
Fruit Content
Appealing Advertisement
Neutral
Very Unimportant
Unimportant
Important
Very important
NESTLE ORANGE JUICE
Price
Packaging
Quality
Taste
Sugar Free
Fruit Content
Appealing Advertisement
Neutral
Very Unimportant
Unimportant
Important
Very important
SHEZAN ORANGE JUICE
Price
Packaging
Quality
Taste
Sugar Free
Fruit Content
Appealing Advertisement
Neutral
Very Unimportant
Unimportant
Important
Very important
MINUTE MAID
Price
Packaging
Quality
Taste
Sugar Free
Fruit Content
Appealing Advertisement
IF YOU ARE A NESTLE JUICE USER THEN SWITCH OVER TO :
Ques How often do you drink Nestle orange juice? Daily Weekly Occasionally
Ques How many times in a day do you take Nestle orange juice: _______ times (Please specify)
Ques.Where do you purchase juice from? (tick all that apply) Small town shops Departmental stores Others ___________________ (Please specify)
Ques.What packaging size do you purchase? 200ml 1000ml Both ________________ (Please specify)
Ques.If Nestle orange juice is not available which other brand do you prefer? Shezan Minute Maid Haleeb Country Others ________________ (Please specify)
Ques. What do you think about the taste of Nestle orange juice? Please Tick.
Very Bad
Bad
Neutral
Good
Very Good 