Factors affecting customer perception of Nestle in Pakistan

Factors give rise believeing node recognition of clutch in PakistanResearch ParadigmMy search is soft as well as quantitative. The major portion of the seek is qualitative as most of the data is non-numeric, employ in theory building, having sm either prototype size and the results ar not familiarized. The assessment of in line up issuing aims ar covered on a lower floor quantitative paradigm. Basic information is qualitative in nature besides I support operationalised all the variables to measure them quantitatively. I give way metrical the scores using titular and ordinal scales. E.g. for measuring the scores of client recognition i live use the Likert scale where score ranges from 1, indicating strongly disagree , to 5, very strongly agree. thitherfore in mine look into both(prenominal) approaches are moving side by side.My search is deductive as i select stated the problem statement initially and past take a leak broken down the statement into parts research questions. i selected the sample size of 18 and have made a taste frame pee-pee and questionnaire, collected the data and analyzed it using SPSS and qualitative methods and have made conclusions.It is interpretive research as i have taken samples data and then interpret it according to nations thinking, knowledge and preferences, this conjure more flexible approach to data collection.The research is non-experimental as i did not focus on the control or focus group. i have conducted the research for existing group i.e. Social Economic Classes. The discipline is conducted in natural setting the sampling technique is the non probability sampling technique , and i have used convenience and quota sampling for this mark ( see figure 1)The research is mixture of descriptive and exploratory research as it describes the movers affecting node learning and exploratory as measures the order and shipion of relations amongst variables.The Research ObjectiveThis research is im portant for Nestle as they can guess the erudition of their nodes and to judge how client respond when comp some(prenominal) launches new variant, nestle can use it for analyzing the acceptability of iron added take out. It can also analyze the product life daily round st mount ups and can make defensive strategies to maintain its position as a market place leader like nestle this study is useful for any pack aged(a) milk phoner as it can use it for adversary analysis. Furthermore, any company who want to launch iron added milk in the market can use it for checking node response and science of customers. i provide analyze the factors that make up customers comprehension companies can work on those factors to make their products several(predicate)iated from the market.Data Preparation, Reduction and transformationThe designing of this study is to analyze the factors that affect customer information leading towards bribe decision almost Nestle take outpak with Iron. We extracted some factors from literature review and used those factors in building questionnaire. The extracted factors are customer knowledge, quality, handiness, price, promotion, packaging and positioning. These factors lead to customer cognizance which at long last leads to the leveraging decision of take outpak with Iron.Each factor is used in multiple questions in order to extract result from different dimensions. For instance, customer perception is operationalised finished questions 9 and 14 of the questionnaire. (See questionnaire in Appendix)Coneceptual good exampleDetailed Frameworkclient informationCustomer SophisticationCustomer KnowledgeImportance of Iron for bodyMilkpakIron commemorate impressionQualityPackaging barter forDecisionMilkBenefits forward motionThe self-employed person variables are Promotion, Packaging, Quality, Brand, Importance of Iron for body, Customer Sophistication, Benefits, Milk, Customer Knowledge, Milkpak. These variables can affect t he take of intensity in the dependent variable lore which ultimately leads towards an opposite dependent variable i.e. Purchase Decision.The above variables are operationalized through questionnaire using different scales. The summary of operationalization is given belowFactors scruple metrical compositionOperationalization Tools ( crustal plates)FunctionalityQ14 ordinal scalePriceQ10Ordinal scalePackagingQ11Ordinal ScaleAvailabilityQ13Ordinal ScaleBenefitsQ9Ordinal ScaleBrand recallQ4, Q5,Q6Nominal ScaleMilk and Milkpak usageQ2, Q3,Q7,Q8Nominal ScalePurchaseQ1, Q13Nominal ScaleFor data collection i have approached members from three SECs (Socio-Economic Classes) who use milkpak with iron. i divided my samples in dickens age groups the young one in the midst of age of 16 to 30 and the aged group ranging from 30 to 45. The rule behind selection of these two groups is their see on Purchase decision. i approached individual(a)s using milkpak with iron. The questionnaire i prepa red contained the nominal and ordinal scales. Initial questions of questionnaire are about the usage, purchase pattern and provoker recall. The scale used for this purpose is the nominal scale. The last consists of the question which is metrical by Ordinal Scale.Analysisi have made descriptive stats for analysis in the beginning .In the initial questions i have measured the central tendency and frequencies to find how Milkpak with iron is positioned as well as to find purchase intention and retention level of its users.For the second half of our report i have used inferential statistics. i have stated our cypher and alternative shot. Then i checked the level of importee and found the correlation coefficiental statistics amid customer perception and individual factors which make up customer perception. (See our data sheet in annexure)descriptive StatisticsMy first question in survey is about the retail outlet. The rationale for including this question is that i can analyz e from which SEC (A, B or C) and age group, the customer belongs. It can help companies to give cave in arrangement from where the target market shops. Companies can apply better promotional techniques on those outlets to have a competitive edge.From the data given below i observed that my target market purchase milk from departmental and world-wide stores.PurchaseFrequency percent reasoned percent additive portion movementualDepartmental Store527.827.827.8Super Market316.716.744.4General Store527.827.872.2Retail Store15.65.677.8 apothecarys shop422.222.2100.0 get along18100.0100.0 mo and third question is about the average white plague of package milk and Milkpak consumption. These questions help the company to make distri furtherion strategies according to the demand of SKUsStatisticsconsumption manipulation Of MilkpakN validated1818Missing00Mean3.61112.6667Consumption of Packaged MilkFrequency portionValid portion additive PercentValid1 Liter422.222.222.21.5 Liter316.716 .738.92 Liters738.938.977.8Any other422.222.2100.0 extreme18100.0100.0Consumption of MilkpakFrequencyPercentValid Percent additive PercentValid1/2 Liters527.827.827.81 Liter633.333.361.12 Liters422.222.283.3Any other316.716.7100.0Total18100.0100.0From the above data i concluded that the average consumption of packaged milk is 3.6 and average consumption of Milkpak with iron is 2.66. Demand for packaged milk SKU is more for 2Liters pack and demand for 1Liter Milkpak pack is more than other SKUs.Question military issue 4, 5 and 6 are designed to test chump recall and evaluation of advertising campaigns of MilkPak with Iron compared to other markers. Question number 4 evaluates the likability of Ads of milkpak as compared to other brands, fifth question evaluates the add oftenness and question number 6 evaluates brand recall.Likability of AdsFrequencyPercentValid Percent cumulative PercentValidOlpers1161.161.161.1 ripe(p) Milk15.65.666.7Nestle Milkpak With iron527.827.894.4Any new (prenominal)15.65.6100.0Total18100.0100.0Frequency of AdsFrequencyPercentValid PercentCumulative PercentValidHala15.65.65.6Haleeb15.65.611.1Olpers1055.655.666.7Good Milk15.65.672.2Nestle Milkpak With iron422.222.294.4Any Other15.65.6100.0Total18100.0100.0Brand passFrequencyPercentValid PercentCumulative PercentValidToday15.65.65.6Within Last 7 Days950.050.055.6Within this month422.222.277.8More than a month Ago422.222.2100.0Total18100.0100.0From the above data i have analyzed that the likeability, Recall and Ad frequency of Nestle milkpak with iron is less(prenominal) than Olpers which is the direct contender of Milkpak, but is more than other brands in the market. According to the bow of brand Recall more than 50% of the respondents have seen the ad in the workweek the response is taken.Question 7 and 8 measure the usage of Milkpak compared to other brands. Question number 8 is more specific it measures the how many volume use milkpak for other uses like for devising dessert s more than other brands customs of MilkPak as compared to other brandsFrequencyPercentValid PercentCumulative PercentValidOlpers738.938.938.9Good Milk15.65.644.4Nestle Milkpak With iron844.444.488.9Any Other211.111.1100.0Total18100.0100.0Usage of Milkpak for alternative purposesFrequencyPercentValid PercentCumulative PercentValidHaleeb211.111.111.1Olpers422.222.233.3Candia15.65.638.9Gourmet15.65.644.4Nurpur15.65.650.0Nestle Milkpak With iron738.938.988.9Any Other211.111.1100.0Total18100.0100.0From the data and charts given above i have inferred that heap use Milkpak more than other brands either for dessert making or for taking milk. Frequency of Milkpak is more than other brands in both suits.Question 13 is about the purchase intention, pass and brand switching. For these questions yes is coded as 1, No as 2, dont know as 3. First mesa evaluates purchase intention. In this table 77% of the Respondents say that they leave alone repurchase the brand. Second table describes that 72% of the Respondents will refer this brand to others. Third table describes the switching trend if respondents will not find this brand. This is alarming for the company that respondents may switch. Company should strive hard to increase its brand dedication.PurchaseFrequencyPercentValid PercentCumulative PercentValid11477.877.877.82316.716.794.4315.65.6100.0Total18100.0100.0ReferFrequencyPercentValid PercentCumulative PercentValid1.001372.272.272.22.00316.716.788.93.00211.111.1100.0Total18100.0100.0SwitchingFrequencyPercentValid PercentCumulative PercentValid1.001477.877.877.82.00422.222.2100.0Total18100.0100.0Inferential StatisticsIn this part i have found the correlation amidst customer perception and the factors which make up the customer perception. There are five dollar bill factors which make up the customer perception which i have include in our research. These factors include functionality, price, promotion, availability and benefits. i have used SPSS for determinatio n correlations. For interpretation two important aspects are magnitude and direction of correlation. Coefficient of correlation is the magnitude of correlation and sign of coefficient of correlation determines the direction of correlation.Method of correlation coefficient and coefficient of correlation my data is not normally distributed so i will use Kendalls tau-b correlational statistics coefficients range in value from -1 (a perfect minus race) and +1 (a perfect compulsory relationship). A value of 0 indicates no linear relationshipTest of conditional relation If the relationship is known in advance i can use one tailed but here i dont know the relation in advance so i will use two tailed Probabilities.Flag epochal correlations correlation coefficient coefficients significant at the 0.05 level are identified with a single asterisk, and those significant at the 0.01 level are identified with two asterisks.The data sheet is given below. In this sheet i have included customer perception and factors affecting customer perception.Hypothesis avouchment 1H0 (Null Hypothesis) There is no relationship in the midst of customer perception and functionality.H1 (Alternative Hypothesis) There is a relationship between Customer Perception and Functionality.nonparametric correlativitys Functionality and perceptionFunctionalityPerceptionKendalls tau_bFunctionalityCorrelation Coefficient1.000.431(*)Sig. (2-tailed)..018N1818PerceptionCorrelation Coefficient.431(*)1.000Sig. (2-tailed).018.N1818* Correlation is significant at the 0.05 level (2-tailed). variationMagnitude The correlation coefficient between functionality and customer perception is 0.431 which is closely moderate.Direction The sign with coefficient of correlation is coercive which shows on that point is a direct relation between them which shows, as Functionality increases perception gets strongSignificance The moment level i defined was 0.05 and table shows the meaning level of 0.018 which is less than 0.05 so i will pass up our abortive hypothesis and will say that there is a positive relationship between Functionality and Perception.Hypothesis Statement 2H0 (Null Hypothesis) There is no relationship between Customer Perception and Price.H1 (Alternative Hypothesis) There is relationship between customer perception and priceNonparametric Correlations Price and perceptionPerceptionPriceKendalls tau_bPerceptionCorrelation Coefficient1.000.628(**)Sig. (2-tailed)..000N1818PriceCorrelation Coefficient.628(**)1.000Sig. (2-tailed).000.N1818** Correlation is significant at the 0.01 level (2-tailed).InterpretationMagnitude The correlation coefficient between price and customer perception is 0.628 which is nearly moderate.Direction The sign with coefficient of correlation is positive which shows there is a direct relation between them. As price increases people perceive, its quality is acquiring better.Significance The significance level i defined was 0.01 and table shows the signifi cance level of 0.00 which is less than 0.01 so i will reject my null hypothesis and will say that there is a positive correlation between Price and Perception. Price of Milkpak plays important role in its perception and positioning.Hypothesis Statement 3H0 (Null Hypothesis) There is no a relationship between Customer Perception and Promotion.H1 (Alternative Hypothesis) There is a relationship between customer perception and promotion.Nonparametric Correlations Promotion and perceptionPerceptionPromotionKendalls tau_bPerceptionCorrelation Coefficient1.000.415(*)Sig. (2-tailed)..026N1818PromotionCorrelation Coefficient.415(*)1.000Sig. (2-tailed).026.N1818* Correlation is significant at the 0.05 level (2-tailed).InterpretationMagnitude The correlation coefficient between promotion and customer perception is 0.415 which is nearly moderate.Direction The sign with coefficient of correlation is positive which shows there is a direct relation between them. As promotion increases perception of people get better.Significance The significance level i defined was 0.05 and table shows the significance level of 0.026 which is less than 0.05 so i will reject our null hypothesis and will say that there is a positive correlation between Promotion and Perception.Hypothesis Statement 4H0 (Null Hypothesis) There is no relationship between Customer Perception and availability.H1 (Alternative Hypothesis) There is a relationship between customer perception and availability.Nonparametric Correlations Availability and perceptionPerceptionAvailabilityPerceptionKendalls tau_b Correlation1.572(*).013N1818AvailibilityKendalls tau_b Correlation.572(*)1Sig. (2-tailed).013N1818* Correlation is significant at the 0.05 level (2-tailed).InterpretationMagnitude The correlation coefficient between availability and customer perception is 0.572 which is nearly moderate.Direction The sign with coefficient of correlation is positive which shows there is a direct relation between them. peck perceive it as a good brand if its available in their locality or they find it on the stores from where they shopSignificance The significance level i defined was 0.05 and table shows the significance level of 0.013 which is less than 0.05 so i will reject my null hypothesis and will say that there is a positive correlation between availability and Perception.Hypothesis Statement 5H0 (Null Hypothesis) There is no relationship between customer perception and Benefits.H1 (Alternative Hypothesis) There is a relationship between customer perception and benifits.Nonparametric Correlations Benefits and perceptionPerceptionBenefitsKendalls tau_bPerceptionCorrelation Coefficient1.000.669(**)Sig. (2-tailed)..000N1818BenefitsCorrelation Coefficient.669(**)1.000Sig. (2-tailed).000.N1818** Correlation is significant at the 0.01 level (2-tailed).InterpretationMagnitude The correlation coefficient between benefits and customer perception is 0.669 which is nearly moderate.Direction The sign with coefficien t of correlation is positive which shows there is a direct relation between them. As there are more benefits people perceive it as a better product.Significance The significance level i defined was 0.01 and table shows the significance level of 0.00 which is less than 0.01 so i will reject our null hypothesis and will say that there is a positive correlation between Benefits and Perception.FindingsThis research is significant for Nestle as they can judge the perception of their customers. Data analysis has given outputs for the factors that were extracted from literature review and then measured through questionnaires. Following results are inferred from the data analysis broadly purchases are made from the departmental and general store. closely selling SKU of Milkpak is 1 liter while the average consumption of milk per day is 2 liters for most of the respondents.Most of the people like Olpers ad while Milkpaks ad likeability is at 2nd rank.The people, who are not a regular user of Milkpak, prefer Milkpak for desserts.The most important factor among all the independent factors that effect customer perception is Milkpak Benefits.Most of the respondents say that they will repurchase the brand.Most of the respondents say that they will refer this brand further to others.Most of the people are likely to switch in case of Milkpak unavailability.Explanation and observationThe findings are based upon the following extracted factsMost of the respondents buy Milkpak from departmental and general store which reflects that Nestle must give special attention to the availability of Milkpak in such stores.The mean usage of milk is 3.6 in which the consumption of Milkpak is 2.6. The average use of milk per day is 2 liters in which 1 liter is of Milkpak.The usage behaviour of Milkpak is 44.4% with frequency 8 as compared to Olpers (38.9% and 7 respectively).Milkpaks ad likeability is 27.8% with frequency of 5 (among respondents) as compared to Olpers likeability and freque ncy i.e. 61.1 and 11 respectively. The advertisement ratio of Milkpak is 22.2% with frequency 4 as compared to Olpers i.e. 55.6% and 10 respectively. Olpers, stepped into the market by launching a massive campaign featuring some of the biggest stars in Pakistan. Billboards went up at key locations in the major cities, and soon the brand had bugger off a voice above the media clutter-a voice that differentiated Olpers brand from the others. This threatening media campaigning has led Olpers to position it strongly in the minds of customers and to grab market share within few years and is now the biggest competitors of Milkpak. Milkpak must take this position and promotion factor into account in order to hold up its customers.77% of the Respondents say that they will repurchase the brand which shows customer blessedness and trust towards Milkpak.72% respondents are willing to refer Milkpak to others which shows high recommendation rate and is beneficial for Milkpak.The only alarmi ng statistics in purchase factor is its loyalty measure and intension to switch to other brands. 77% of the respondents are of the view that they will switch to other brand in case of unavailability. This vulnerability shows the lack of customer loyalty towards Milkpak and importance of distribution vane for packaged milk brands. This problem can be coped by introducing customer loyality programs and better positioning strategies.Relationship of Factors with Customer PerceptionThe magnitude of our all independent variables i.e. functionality, price, promotion, availability and benifits is 0.431, 0.628, 0.415, 0.572 and 0.669 respectively. The correlation range of all the factors with customer perception is moderate.The maximum magnitude is of benefits (0.669) which shows that the perception is affected through benefits the most. For instance, Milkpaks taste, purity, density and nourishment are the factors which the respondents prefer when they have to make decision about Milk and th e data shows that most of the respondents are of the opinion that Milkpak provide all of these factors.The stripped magnitude is of promotion (0.415) which shows that Milkpaks advertisement is not that creative. They have to increase their promotional budget in order to position themselves more strongly as compared to the other brands. For instance, Olpers spend a lot on Below the telegraph line (BTL) promotional activities for example, activities like reaching out to the different locations in various cities and having the housewives participate in learning and showcasing milk-based recipes which intends to create and maintain loyalty amongst the brands users. Milkpak must also adopt such promotional activites instead of traditional TV campaigning in order to increase the customer perception and loyalty regarding Nestle Milkpak brand.Limitations and MistakesFollowing are the limitations of my report.Time SpanPeople are reluctant to respondAccess to dataCost (Paid Articles)Genera lizabilityLack of expertnessAs it is a pilot study and I am not expert, i did not have idea that how i will advert the proposal with the original findings, i found number of lacking in my proposal, so to make it perfect, i had to make some changes in our research questions, conceptual framework and hypothesis as well and finally with come up with this report.