BRM Nestle

Business Research Methodology
History
Nestl 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 First

In 1867 Henri Nestl , 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. Nestl perfected a Revolutionary product, which immediately saved the life of a two-week-old baby that had rejected its mothers milk. The new product soon became well known worldwide under the name Farine Lactee Nestl (Nestls 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. Nestl 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 Nestl & 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 Nestl name and its distinctive trademark, a bird feeding its young in a nest, remain.
Stages in Diversification
From then on Nestl 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 1905 1929 1947 1971 1985 1988 1988 1992 1995 1997 1998 Companys foundation. Merger between Nestl & Anglo-Swiss Condensed Milk. Merger with Peter-Cailler-Kohler Chocolates Suissee S.A. Merger with Alimentana S.A. (Maggi). Merger with Ursina-Franck (Switzerland). Acquisition of Carnation (USA). Acquisition of Buitoni-Perugina (Italy). Acquisition of Rowntree (GB). Acquisition of Perrier (France).
Nestl acquires Victor Schmidt & Sohne, Austrias oldest

confectionery, including the famous Mozartkugeln.
Nestl, through the Perrier Vittel Group, expands its min activities
with the outright acquisition of San Pellegrino.
Nestl acquires Spillers Pet foods of the UK and strengthen in the

pet food business which began in 1985 with the Carnation Friskies brand & introduced Nestl Pure Life.
1999
Divestiture of Findus brand (except in Switzerland and its parts of Nestls frozen food business in Europe. Divestiture of Hills Bros., MJB and Chase & Sanborn roast ground coffee brands (USA).
Nestl, an International Enterprise

The companies that formed Nestl decided a century ago to ensure the growth of the organization by setting up production plants abroad. The Anglo-Swiss Condensed Milk Companys first factory outside Switzerland was opened at Chippenham in England in 1872. Several years later, the Henri Nestl 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 Nestl that an industrial operation be in the reciprocal and lasting interests of both the company and the host country.
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Nestl Today
Today, Nestl 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.
Nestl is now the worlds 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 Nestl 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 Group

The 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, Nestl 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 Nestl products worldwide. Third company is Nestl 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.
Nestl Milkpak Limited

In Pakistan, Nestl works under the name of Nestl Milkpak Limited. But Nestl entry to Pakistan was well before the formation of Nestl Milkpak Limited its product Lactogen was already being imported in Pakistan by Burque Corporation (one of the major distributor of Nestl). Altogether 175 cases of Lactogen were imported in year 1971 Burque Corporation acted as an agent for Nestl 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 Juice Drink plant starts commercial production. In 1988, Nestl & Milkpak Limited sign an agreement to farm a joint venture company. Nestl invests Rs.114 million and acquires
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40.4% equity in 1988 and grain cereal plants start production in Milkpak Limited. Nestl takes over 100% ownership of Kabirwala Dairy Ltd. (2 nd Factory) in 1990. In 1992 noodles plant starts production. Nestl takes over in parts of Nestl products which is previously handled by an agent. In 1993 Nestl invests Rs.160 million in working capital and increases equity share to 49.5%. In 1994 Milo plant and new UHT plant starts production. Companys name changed to Nestl 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 Nestl Milkpak Limited. In 1998 Nestl Milkpak starts aggressing new product introduction and set another factory named Indus Fruit Products Limited.
Markets & Offices Network of Nestl Milkpak

Nestl 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 Nestl . 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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WATER
Water 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&Ds 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. Nestl is always busy in anticipating customers desires. Nestl 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 68% annually. Nestl 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.
NESTL PURE LIFE

The launch of Nestl Pure Life in December 1998 was a truly historic event. This marks Nestl Milkpaks entry into the countrys fast growing water market. At the same time Pakistan became the first country where Nestl launched this new, worldwide brand. Nestl 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.
2.
Niagra
Nestl
Ava Sparklets Masafi Aqua Safe Cool Ab-e-Hayat Rainbow Pearl Safa Zam Zam Fresh Musaffa Wellgreen Aqua Flow Max Wellpu Himalaya Brecon Carreg Evian Perrier
3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.

19.
20. 21.
Fit Fit Fit Unfit Unfit Fit Unfit Fit Unfit Unfit Unfit Unfit Unfit Unfit Unfit Fit Fit Unfit Fit Fit Fit
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Research Objective
The 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 Nestls Pure Life is Preferred over other Mineral Waters.
Introduction
Our Research will be revolving around Nestls 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 Process
Our Research process will be including the following Processes Samples School Students Family Members College Students Professionals
Interviews Questionnaires 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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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
Gender Frequency 25 25 50 Percent 50.0 50.0 100.0 Valid Percent 50.0 50.0 100.0 Cumulative Percent 50.0 100.0
Valid
Male Female Total
Gender
Male Female
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Age Frequency 13-19 10 20-25 10 26-35 10 35-50 10 Above 50 10 Total 50 Percent 20.0 20.0 20.0 20.0 20.0 100.0 Valid Percent 20.0 20.0 20.0 20.0 20.0 100.0 Cumulative Percent 20.0 40.0 60.0 80.0 100.0
Valid
Age
A b ov e 5 0 1 3 -1 9
3 5 -5 0
2 0 -2 5
2 6 -3 5
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Educational Level Frequency Under Matric / O-Level 14 Intermediate / A-Levels 1 Graduation 16 Masters / M-Phil / Ph. D 11 ACCA / CAT 8 Total 50 Percent 28.0 2.0 32.0 22.0 16.0 100.0 Valid Percent 28.0 2.0 32.0 22.0 16.0 100.0 Cumulative Percent 28.0 30.0 62.0 84.0 100.0
Valid
Educational Level
ACCA / CAT Under Matric / O-Lev
Masters / M-Phil / P Intermediate / A-Lev
Graduation
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Usage of Mineral Water Frequency 28 17 5 50 Percent 56.0 34.0 10.0 100.0 Valid Percent 56.0 34.0 10.0 100.0 Cumulative Percent 56.0 90.0 100.0
Valid
Regularly Sometimes Do Not Use Total
Usage of M ineral W ater
Do Not Use
Sometimes
Regularly
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Which Brand of Mineral Water do you Prefer? Frequency Nestle 34 Cool 4 Ava 3 Mix Brands 4 Total 45 System 5 50 Percent 68.0 8.0 6.0 8.0 90.0 10.0 100.0 Valid Percent 75.6 8.9 6.7 8.9 100.0 Cumulative Percent 75.6 84.4 91.1 100.0
Valid
Missing Total
W hich Brand of M ineral W ater do you Prefer?
Missing Mix Brands
Ava
Cool
Nestle
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Why do you use Mineral Water Frequency 6 26 2 34 16 50 Percent 12.0 52.0 4.0 68.0 32.0 100.0 Valid Percent 17.6 76.5 5.9 100.0 Cumulative Percent 17.6 94.1 100.0
Valid
Missing Total
Convenience Hygiene Show Off Total System
W hy do you use M ineral W ater
Convenience
Missing
Show Off Hygiene
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You Buy Nestle Pure Life due to its Frequency Brand Name 8 Quality 20 Packaging Sizes 4 Availability 2 Total 34 System 16 50 Percent 16.0 40.0 8.0 4.0 68.0 32.0 100.0 Valid Percent 23.5 58.8 11.8 5.9 100.0 Cumulative Percent 23.5 82.4 94.1 100.0
Valid
Missing Total
You Buy Nestle Pure Life due to its
Brand Name
Missing
Availability Q uality Packaging Sizes
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Rate the Factor effecting your Purchasing Decision the most Frequency Price 2 Availability 6 Quality 23 Packaging Sizes 3 Total 34 System 16 50 Percent 4.0 12.0 46.0 6.0 68.0 32.0 100.0 Valid Percent 5.9 17.6 67.6 8.8 100.0 Cumulative Percent 5.9 23.5 91.2 100.0
Valid
Missing Total
Rate theFactor effecting your Purchasing Decision

Price Availability Missing
Packaging Sizes Q uality
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Are you Satisfied with the Quality Level of Nestle Pure Life Frequency 34 16 50 Percent 68.0 32.0 100.0 Valid Percent 100.0 Cumulative Percent 100.0
Valid Missing Total
Yes System
Satisfied with the Quality Level of Nestle Pure Life

Missing
Yes
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Are you Satisfied with the Prices of Nestle Pure Life Frequency 29 5 34 16 50 Percent 58.0 10.0 68.0 32.0 100.0 Valid Percent 85.3 14.7 100.0 Cumulative Percent 85.3 100.0
Valid
Missing Total
Yes No Total System
Satisfied with the Prices of Nestle Pure Life
Missing
Yes
No
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What do you think about the Prices of Nestle Pure Life? Are they Frequency 3 29 2 34 16 50 Percent 6.0 58.0 4.0 68.0 32.0 100.0 Valid Percent 8.8 85.3 5.9 100.0 Cumulative Percent 8.8 94.1 100.0
Valid
Missing Total
High Normal Low Total System
Think about the Prices of Nestle Pure Life?

High
Missing
Low
Normal
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Do you think that the Prices of Nestle Pure Life justify the value for Money Frequency 29 5 34 16 50 Percent 58.0 10.0 68.0 32.0 100.0 Valid Percent 85.3 14.7 100.0 Cumulative Percent 85.3 100.0
Valid
Missing Total
Yes No Total System
Prices of Nestle Pure Life justify the value for Money
Missing
Yes
No
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What are your Comments on the availability of Nestle Pure Life Frequency Very Good 7 Good 21 Normal 6 Total 34 System 16 50 Percent 14.0 42.0 12.0 68.0 32.0 100.0 Valid Percent 20.6 61.8 17.6 100.0 Cumulative Percent 20.6 82.4 100.0
Valid
Missing Total
Availability of Nestle Pure Life
Very Good
Missing
Good Normal
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If your Favourite Brand is not Available do you go to another outlet looking for it Frequency 29 5 34 16 50 Percent 58.0 10.0 68.0 32.0 100.0 Valid Percent 85.3 14.7 100.0 Cumulative Percent 85.3 100.0
Valid
Missing Total
Yes No Total System
Visit to the Alternate Buying Place in case of Non Availability
Missing
Yes
No
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In Your Opinion what is their best Source of Advertising Frequency Electronic Media 16 Print Media 11 SignBoards 6 Others 1 Total 34 System 16 50 Percent 32.0 22.0 12.0 2.0 68.0 32.0 100.0 Valid Percent 47.1 32.4 17.6 2.9 100.0 Cumulative Percent 47.1 79.4 97.1 100.0
Valid
Missing Total
Opinion on the Best Source of Advertising
Missing
Electronic Media
Others
SignBoards Print Media
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Are you Satisfied with the current Packaging Sizes of Nestle Pure Life Frequency 30 4 34 16 50 Percent 60.0 8.0 68.0 32.0 100.0 Valid Percent 88.2 11.8 100.0 Cumulative Percent 88.2 100.0
Valid
Missing Total
Yes No Total System
Satisfied with the Packaging Sizes of Nestle Pure Life
Missing
Yes
No
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Is the Packaging of Nestle Pure Life Attractive Frequency 27 7 34 16 50 Percent 54.0 14.0 68.0 32.0 100.0 Valid Percent 79.4 20.6 100.0 Cumulative Percent 79.4 100.0
Valid
Missing Total
Yes No Total System
Is the Packaging of Nestle Pure Life Attractive
Missing
Yes
No
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which factor influence u most while purchasing Mineral Water Frequency 12 4 12 6 34 16 50 Percent 24.0 8.0 24.0 12.0 68.0 32.0 100.0 Valid Percent 35.3 11.8 35.3 17.6 100.0 Cumulative Percent 35.3 47.1 82.4 100.0
Valid
Missing Total
Family Members Friends Persuasion Advertisment Word of Mouth Total System
Factors Influencing Purchasing Decision

Family Members Missing
Friends Persuasion
Word of Mouth Advertisment
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Cross Tabs / Chi-Square Tests

Gender & Age Vs Usage Of Mineral Water
Gender * Usage of Mineral Water
Crosstab Count Usage of Mineral Water Regularly Sometimes Do Not Use 20 3 2 8 14 3 28 17 5 Chi-Square Tests Value 12.461a 13.238 7.387 50 df 2 2 1 Asymp. Sig. (2-sided) .002 .001 .007 Total 25 25 50
Gender Total
Male Female
Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases
a. 2 cells (33.3%) have expected count less than 5. The minimum expected count is 2.50.
Age * Usage of Mineral Water

Crosstab Count Usage of Mineral Water Regularly Sometimes Do Not Use 5 2 3 5 4 1 4 6 0 9 1 0 50 5 4 1 28 17 5 Total 10 10 10 10 10 50
Age
13-19 20-25 26-35 35-50 Above
Total
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Chi-Square Tests Value 13.185a 13.886 1.770 50 df 8 8 1 Asymp. Sig. (2-sided) .106 .085 .183
Gender & Age Vs Brand of Mineral Water Preferred

Gender * Which Brand of Mineral Water do you Prefer?
Crosstab Count Which Brand of Mineral Water do you Prefer? Nestle Cool Ava Mix Brands 18 2 2 1 16 2 1 3 34 4 3 4 Chi-Square Tests Value 1.429a 1.482 .651 45 df 3 3 1 Asymp. Sig. (2-sided) .699 .686 .420 Total 23 22 45
Gender Total
Male Female
Age * Which Brand of Mineral Water do you Prefer?
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Crosstab Count Which Brand of Mineral Water do you Prefer? Nestle Cool Ava Mix Brands 5 0 0 2 9 0 0 0 5 2 2 1 7 1 1 1 8 1 0 0 34 4 3 4 Chi-Square Tests Value 13.898a 16.159 .803 45 df 12 12 1 Asymp. Sig. (2-sided) .307 .184 .370 Total 7 9 10 10 9 45
Age
13-19 20-25 26-35 35-50 Above 50
Total
a. 15 cells (75.0%) have expected count less than 5. The minimum expected count is .47.
Gender & Age Vs Why Do You Use Mineral Water

Gender * Why do you use Mineral Water
Crosstab Count Why do you use Mineral Water Convenience Hygiene Show Off 3 13 2 3 13 0 6 26 2 Chi-Square Tests Value 1.889a 2.655 .646 34 df 2 2 1 Asymp. Sig. (2-sided) .389 .265 .421 Total 18 16 34
Gender Total
Male Female
Age * Why do you use Mineral Water
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Crosstab Count Why do you use Mineral Water Convenience Hygiene Show Off 1 3 1 3 6 0 2 3 0 0 6 1 50 0 8 0 6 26 2 Chi-Square Tests Value 10.287a 12.666 1.297 34 df 8 8 1 Asymp. Sig. (2-sided) .245 .124 .255 Total 5 9 5 7 8 34
Age
13-19 20-25 26-35 35-50 Above
Total
Gender & Age Vs Preference of Nestl due to its

Gender * You Buy Nestle Pure Life due to its
Crosstab Count You Buy Nestle Pure Life due to its Packaging Brand Name Quality Sizes Availability 3 12 2 1 5 8 2 1 8 20 4 2 Chi-Square Tests Value 1.186a 1.193 .195 34 df 3 3 1 Asymp. Sig. (2-sided) .756 .755 .659
Gender Total
Male Female
Total 18 16 34
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Age * You Buy Nestle Pure Life due to its
Crosstab Count You Buy Nestle Pure Life due to its Packaging Brand Name Quality Sizes Availability 1 3 1 0 2 4 2 1 1 2 1 1 2 5 0 0 50 2 6 0 0 8 20 4 2 Chi-Square Tests Value 7.773a 9.717 1.564 34 df 12 12 1 Asymp. Sig. (2-sided) .803 .641 .211
Total 5 9 5 7 8 34
Age
13-19 20-25 26-35 35-50 Above
Total
Gender & Age Vs Factors Effecting the Purchasing Decision
Gender * Rate the Factor effecting your Purchasing Decision

Crosstab Count Rate the Factor effecting your Purchasing Decision Packaging Price Availability Quality Sizes Male 0 5 11 2 Female 2 1 12 1 2 6 23 3 Chi-Square Tests Value 4.943a 5.949 .125 34 df 3 3 1 Asymp. Sig. (2-sided) .176 .114 .724
Gender Total
Total 18 16 34
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Age * Rate the Factor effecting your Purchasing Decision
Crosstab Count Rate the Factor effecting your Purchasing Decision Packaging Price Availability Quality Sizes 0 0 4 1 1 0 7 1 1 0 3 1 0 4 3 0 50 0 2 6 0 2 6 23 3 Chi-Square Tests Value 16.860a 19.322 2.100 34 df 12 12 1 Asymp. Sig. (2-sided) .155 .081 .147
Total 5 9 5 7 8 34
Age
13-19 20-25 26-35 35-50 Above
Total
Gender & Age Vs Availability of Nestl Pure Life
Gender * Availability of Nestle Pure Life

Crosstab Count Availability of Nestle Pure Life Very Good Good Normal 7 5 6 0 16 0 7 21 6 Chi-Square Tests Value 18.709a 23.964 .067 34 df 2 2 1 Asymp. Sig. (2-sided) .000 .000 .796 Total 18 16 34
Gender Total
Male Female
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Age * Availability of Nestle Pure Life
Crosstab Count Availability of Nestle Pure Life Very Good Good Normal 2 3 0 5 4 0 0 5 0 0 3 4 50 0 6 2 7 21 6 Chi-Square Tests Value 22.419a 25.525 11.040 34 df 8 8 1 Asymp. Sig. (2-sided) .004 .001 .001 Total 5 9 5 7 8 34
Age
13-19 20-25 26-35 35-50 Above
Total
Gender & Age Vs Factors Influencing the Purchase

Gender * Factors Influencing Purchasing Decision
Crosstab Count Factors Influencing Purchasing Decision Family Friends Members Persuasion Advertisment Word of Mouth 9 2 5 2 3 2 7 4 12 4 12 6 Chi-Square Tests Value 3.896a 4.036 3.593 34 df 3 3 1 Asymp. Sig. (2-sided) .273 .258 .058
Gender Total
Male Female
Total 18 16 34
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Age * Factors Influencing Purchasing Decision
Crosstab Count Factors Influencing Purchasing Decision Family Friends Members Persuasion Advertisment Word of Mouth 4 0 1 0 4 1 4 0 1 3 1 0 0 0 4 3 3 0 2 3 12 4 12 6 Chi-Square Tests Value 27.826a 29.174 6.751 34 df 12 12 1 Asymp. Sig. (2-sided) .006 .004 .009
Total 5 9 5 7 8 34
Age
13-19 20-25 26-35 35-50 Above 50
Total
Gender Vs Usage of Nestl Pure Life

Ho: H1: There is no significant relationship between Gender and Usage of Nestl There is significant relationship between Gender and Usage of Nestl
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 Nestl Pure Life

Ho: H1: There is no significant relationship between Age and Usage of Nestl Pure Life There is significant relationship between Age and Usage of Nestl 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: H1: There is no significant relationship between Gender and Brand of Mineral Water Preferred There is significant relationship between Gender and Brand of Mineral Water Preferred
Age Vs Brand of Mineral Water Preferred

Ho: H1: There is no significant relationship between Age and Brand of Mineral Water Preferred There is significant relationship between Age and Brand of Mineral Water Preferred
Gender Vs Why Do You Use Mineral Water

Ho: H1: There is no significant relationship between Gender and Why Do You Use Mineral Water There is significant relationship between Gender and Why Do You Use Mineral Water
Age Vs Why Do You Use Mineral Water

Ho: H1: There is no significant relationship between Age and Why Do You Use Mineral Water There is significant relationship between Age and Why Do You Use Mineral Water
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Gender Vs Preference of Nestl due to its
Ho: H1: There is no significant relationship between Gender and Preference of Nestl due to its There is significant relationship between Gender and Preference of Nestl due to its
Age Vs Preference of Nestl due to its

Ho: H1: There is no significant relationship between Age and Preference of Nestl due to its There is significant relationship between Age and Preference of Nestl due to its
Gender Vs Factors Effecting the Purchasing Decision

Ho: H1: There is no significant relationship between Gender and Factors Effecting the Purchasing Decision There is significant relationship between Gender and Factors Effecting the Purchasing Decision
Age Vs Factors Effecting the Purchasing Decision

Ho: H1: There is no significant relationship between Age and Factors Effecting the Purchasing Decision There is significant relationship between Age and Factors Effecting the Purchasing Decision
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Gender Vs Availability of Nestl Pure Life
Ho: H1: There is no significant relationship between Gender and Availability of Nestl Pure Life There is significant relationship between Gender and Availability of Nestl 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 Nestl Pure Life

Ho: H1: There is no significant relationship between Age and Availability of Nestl Pure Life There is significant relationship between Age and Availability of Nestl 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: H1: There is no significant relationship between Gender and Factors Influencing the Purchase There is significant relationship between Gender and Factors Influencing the Purchase
Age Vs Factors Influencing the Purchase

Ho: H1: There is no significant relationship between Age and Factors Influencing the Purchase There is significant relationship between Age and Factors Influencing the Purchase
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Discussion Groups/ Interviews

Apart 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 Group

The 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) Thirst ii) 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 dont like coke or Pepsi is that team, 7-up and sprite is clear and transparent. Students prefer 0.5 liters bottle for water, as they are easy to carry around and easily accessible.
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Since Nestl has lounged its bottle water students have become more brand conscious.
These results indicate that Nestl 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 Group
The objective of conducting this Sampling Group was to know a household familys perception about bottled drinking water.
Issue
Explored
Perception of bottle water among household Buying pattern Marketing and advertising
Findings
Findings 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 Nestl s pure life, because they know that their bottled water would be 100% pure. If Nestl would increase pure lifes price then people would shift to Ava because it would have relatively lesser price. i) ii) iii) Quench thirst Hygienic Provides good quality water
Carrying a bottle has become a fashion in todays world and has become a status symbol nowadays.
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School Going Students Group

The 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 Nestls pure life is somewhat bitter. They think the Pepsi is not an effective source of quenching thirst.
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Doctors Group
The 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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Interviews
We also conducted a Survey of the nearest Bakeries to our houses to see and judge what their perception is about Nestl Pure Life
Gourmet Bakery

Younger people prefer chilled juices (can), beverages, and few prefer water. Elderly people prefer water. Chilled bottles are preferred.
Nestl sells the most.

AVA sells moderately. 10-15 big carton of Nestl daily sales. 5-8 small cartons
Nestl supplies fresh stock after every 2 days. Nestls scheme for every carton 2 bottles free.
Profit on big bottle Rs.3 / bottle from Nestl. Profit on small bottle Rs.2.50 / bottle from Nestl . 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.
Nestl 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 Nestl is popular because of brand image. We have our own warehouse and our daily demand is brought from there. 10 cartons (small) of Nestl sells daily. 20-25 bottles 1.5 liter sell daily (Nestl). People like Nestls water taste. Consider customer preferences before placing products on shelfs.
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CONCLUSION
After working on this project thoroughly we conclude that Nestl has largest market share in mineral waters market. Almost 68% of customer prefer Pure Life to any other. No doubt Nestl 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 Nestl is not successful in capturing the whole market. To say that Nestl is doing target marketing would not be wrong. In a survey, about 34% customers are unsatisfied with availability of Nestl . 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 Nestl want to capture whole market shares, it should lower its prices, give more customer values and should increase customer satisfaction in the quality. Nestl should give special discount on special occasions.
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QUESTIONNAIRE
Note:
i. ii. iii. iv. This Questionnaire is for Educational Purpose only. All Information provided by you will be kept Confidential. Please take your Time in going through & filling this Questionnaire. In case you dont understand a Particular Questionnaire, Please dont 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 dont use
(If your answer to Ques. # 1 is I dont Use Mineral Water , move to the Question # 14, otherwise proceed with Ques. # 2) 2. Which Brand of Mineral Water do you prefer buying?
Nestl
Cool Ava Mix Brands
(If your answer to Ques. # 2 is Nestl , move ahead, if not, then move to the next Part) Why do you use Nestl Pure Life? Convenience Hygiene Show Off Others ______________ _
3.
4.
You buy Nestl Pure Life due to its Brand Name Quality Packaging Size
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Availability Others ______________ _
5. Please rate the following Factors in accordance to their Effectiveness in your Purchasing Decision 1 (Least influence)
Price __________ Availability __________ Quality __________ Packaging Sizes _________
5 (Most influence)
6.
Are you satisfied with the Quality Level of Nestl Pure Life Yes No
7.
What do you think about the Prices of Nestl Pure Life? Are they Normal High Low
8.
Do you think that the Prices of Nestl Pure Life justify value for Money? Yes No
9.
What are your comments on the Availability of Nestl 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?
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Electronic Media Print Media Signboards Others ______________ _
12.
Are you satisfied with the current Packaging Sizes of Nestl Pure Life? Yes No
If YES What other Packaging Sizes should be made Available _________

13.
In your opinion, is the Packaging of Nestl Pure Life Attractive? Yes No
In your opinion, what are the ATTRIBUTES & BENEFITS that a Good Mineral Water should have, in order to CONVINCE people to buy it?
14.
_____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ _
Part II
Demographic Information
(For the Researcher to Fill) (Optional)
A. Group Name ___________________ B. Name C. Gender Male Female D. Age Group 13-19 20-25 26-35 ___________________
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35-50 Above 50 E. Marital Status 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) _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ ___________________
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Thanking You Once Again (Project Team Leader)
PROJECT ON BUSINESS RESEARCH IN NESTLE
PROJECT SUBMITTED BY
ANAND NARAYAN-3510910050 AISHWARYA GANESH-3510910025 AMITH SASIDHARAN-3510910046 AMRITHA DAS-3510910049 AMREEN RASUL MAZUMDAR-3510910047
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Business Research Methodology

Milk Came First

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Nestl acquires Victor Schmidt & Sohne, Austrias oldest

Nestl acquires Spillers Pet foods of the UK and strengthen in the

Nestl, an International Enterprise

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Structure of the Group

Nestl Milkpak Limited

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Markets & Offices Network of Nestl Milkpak

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NESTL PURE LIFE

3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.

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Interviews Questionnaires Data Analysis Findings Recommendations

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Male Female Total

Business Research Methodology

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ACCA / CAT Under Matric / O-Lev

Masters / M-Phil / P Intermediate / A-Lev

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Regularly Sometimes Do Not Use Total

Usage of M ineral W ater

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W hich Brand of M ineral W ater do you Prefer?

Missing Mix Brands

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Convenience Hygiene Show Off Total System

W hy do you use M ineral W ater

Show Off Hygiene

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You Buy Nestle Pure Life due to its

Availability Q uality Packaging Sizes

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Rate theFactor effecting your Purchasing Decision

Packaging Sizes Q uality

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Valid Missing Total

Satisfied with the Quality Level of Nestle Pure Life

Business Research Methodology

Yes No Total System

Satisfied with the Prices of Nestle Pure Life

Business Research Methodology

High Normal Low Total System

Think about the Prices of Nestle Pure Life?

Business Research Methodology

Yes No Total System

Prices of Nestle Pure Life justify the value for Money

Business Research Methodology

Availability of Nestle Pure Life

Business Research Methodology

Yes No Total System

Visit to the Alternate Buying Place in case of Non Availability

Business Research Methodology

Opinion on the Best Source of Advertising

SignBoards Print Media

Business Research Methodology

Yes No Total System

Satisfied with the Packaging Sizes of Nestle Pure Life

Business Research Methodology