Factors affecting customer perception of Nestle in Pakistan

Factors affecting client science of nuzzle in PakistanResearch ParadigmMy look is qualitative as well as quantitative. The major portion of the research is qualitative as most of the entropy is non-numeric, dropd in theory building, having pocket-sized sample size and the results argon not generalized. The assessment of income trains atomic number 18 covered under quantitative paradigm. Basic information is qualitative in nature still I suck operationalised all the variables to measure them quantitatively. I flip measured the scores using nominal and ordinal scales. E.g. for measuring the scores of customer intelligence i have used the Likert scale where score ranges from 1, indicating powerfully disagree , to 5, very strongly agree. Therefore in mine research both approaches are moving side by side.My research is deductive as i have stated the problem statement signly and then have distressed down the statement into parts research questions. i selected the sample size of 18 and have made a have framework and questionnaire, collected the entropy 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 harmonise to peoples thinking, knowledge and preferences, this suggest more flexible approach to data collection.The research is non-experimental as i did not reduce on the control or focus group. i have conducted the research for existing group i.e. Social Economic Classes. The survey is conducted in natural setting the sampling technique is the non probability sampling technique , and i have used convenience and quota sampling for this use ( see figure 1)The research is mixture of descriptive and exploratory research as it describes the factors affecting customer detection and exploratory as measures the magnitude and direction of proportions amid variables.The Research ObjectiveThis research is signifi discharget for Nestle as they can judge the perception of their customers and to judge how customer respond when company launches new variant, snuggle can use it for analyzing the acceptability of compress added milk. It can to a fault analyze the product life cycle st shape ups and can behave defensive strategies to maintain its position as a market leader like nestle this study is useful for any encase milk company as it can use it for competitor analysis. Furthermore, any company who want to launch iron added milk in the market can use it for checking customer response and perception of customers. i ordain analyze the factors that make up customers perception companies can work on those factors to make their products differentiated from the market.Data Preparation, Reduction and transformationThe purpose of this study is to analyze the factors that affect customer perception leading towards buy decision closely Nestle Milkpak with cast-iron. We extracted some factors from cubic decimetreature review and used th ose factors in building questionnaire. The extracted factors are customer knowledge, quality, availableness, impairment, promotion, packaging and positioning. These factors lead to customer perception which ultimately leads to the purchase decision of Milkpak with put right.Each factor is used in multiple questions in order to extract result from different dimensions. For instance, customer perception is operationalised through and through questions 9 and 14 of the questionnaire. (See questionnaire in Appendix)Coneceptual FrameworkDetailed Framework node perceptionCustomer SophisticationCustomer KnowledgeImportance of Iron for bodyMilkpakIronBrandImageQuality promotion procureDecisionMilkBenefits promotionThe independent variables are Promotion, Packaging, Quality, Brand, Importance of Iron for body, Customer Sophistication, Benefits, Milk, Customer Knowledge, Milkpak. These variables can affect the level of intensity in the dependent variable Perception which ultimately leads to wards another dependent variable i.e. Purchase Decision.The supra variables are operationalized through questionnaire using different scales. The summary of operationalization is given belowFactorsQuestion NumbersOperationalization Tools ( exceeds)FunctionalityQ14Ordinal 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 two age groups the unripe one between age of 16 to 30 and the aged group ranging from 30 to 45. The rationale behind selection of these two groups is their influence on Purchase decision. i approached individuals using milkpak with iron. The questionnaire i prepared contained the nominal and ordinal scales. Initial questions of questionnaire are about the usage, purchase p attern and brand recall. The scale used for this purpose is the nominal scale. The last consists of the question which is measured by Ordinal Scale.Analysisi have made descriptive stats for analysis in the beginning .In the initial questions i have calculated the central tendency and frequencies to stupefy 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 null and alternative supposition. Then i go over the level of consequence and found the correlational statisticsal statistics between 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 analyze from which SEC (A, B or C) and age group, the customer belongs. It can sustain companies to give bet ter understanding 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 general stores.Purchase oftenness percentage binding pct cumulative percent validatedDepartmental Store527.827.827.8Super Market316.716.744.4General Store527.827.872.2retail Store15.65.677.8Pharmacy422.222.2100.0Total18100.0100.0Second and third question is about the ordinary consumption of packaged milk and Milkpak consumption. These questions help the company to make distribution strategies according to the beg of SKUsStatisticsconsumptionConsumption Of MilkpakN sensible1818Missing00 entail3.61112.6667Consumption of Packaged MilkFrequencyPercentValid PercentCumulative PercentValid1 Liter422.222.222.21.5 Liter316.716.738.92 Liters738.938.977.8Any other422.222.2100.0Total18100.0100.0Consumption of MilkpakFrequencyPercentValid PercentCumulati ve 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 number 4, 5 and 6 are designed to test brand recall and evaluation of advertising campaigns of MilkPak with Iron compared to other brands. Question number 4 evaluates the likability of Ads of milkpak as compared to other brands, fifth question evaluates the add frequence and question number 6 evaluates brand recall.Likability of AdsFrequencyPercentValid PercentCumulative PercentValidOlpers1161.161.161.1 sincere Milk15.65.666.7Nestle Milkpak With iron527.827.894.4Any otherwise15.65.6100.0Total18100.0100.0Frequency of AdsFrequencyPercentValid PercentCumulative PercentValidHala15.65.65.6Haleeb15.65.611.1Olpers1 055.655.666.7Good Milk15.65.672.2Nestle Milkpak With iron422.222.294.4Any Other15.65.6100.0Total18100.0100.0Brand RecallFrequencyPercentValid PercentCumulative PercentValidToday15.65.65.6Within Last 7 Days950.050.055.6Within this Month422.222.277.8 more than 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 slight than Olpers which is the direct competitor of Milkpak, but is more than other brands in the market. According to the table of brand Recall more than 50% of the respondents have seen the ad in the week the response is taken.Question 7 and 8 measure the usage of Milkpak compared to other brands. Question number 8 is more special(prenominal) it measures the how many people use milkpak for other uses like for making desserts more than other brandsUsage of MilkPak as compared to other brandsFrequencyPercentValid PercentCumulative PercentValidOlpers738.938.938.9Good Mi lk15.65.644.4Nestle 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 people use Milkpak more than other brands either for dessert making or for taking milk. Frequency of Milkpak is more than other brands in both cases.Question 13 is about the purchase intention, recommendation and brand switching. For these questions yes is coded as 1, No as 2, dont know as 3. First table evaluates purchase intention. In this table 77% of the Respondents vocalise that they will 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. Th is is alarming for the company that respondents may switch. Company should strive hard to increase its brand committedness.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 between customer perception and the factors which make up the customer perception. There are five factors which make up the customer perception which i have included in our research. These factors include functionality, price, promotion, approachability and benefits. i have used SPSS for finding correlations. For interpretation two important aspects are magnitude and direction of correlation. Coefficient of correlation is the magnitude of corre lation and sign of coefficient of correlation determines the direction of correlation.Method of Correlation and coefficient of correlation my data is not normally distributed so i will use Kendalls tau-b Correlation coefficients range in foster from -1 (a perfect negative race) and +1 (a perfect absolute relationship). A value of 0 indicates no linear relationshipTest of Significance If the relationship is know in advance i can use one tailed but here i dont know the relation in advance so i will use two tailed Probabilities.Flag significant correlations Correlation coefficients significant at the 0.05 level are identified with a hotshot 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. guess Statement 1H0 (Null Hypothesis) There is no relationship between customer perception and functionality.H1 (Alternative Hypothesis) Th ere is a relationship between Customer Perception and Functionality.nonparametric Correlations 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). interlingual rendition order The correlation coefficient between functionality and customer perception is 0.431 which is nearly moderate.Direction The sign with coefficient of correlation is positive which shows there is a direct relation between them which shows, as Functionality increases perception gets strongSignificance The implication level i defined was 0.05 and table shows the significance level of 0.018 which is less than 0.05 so i will reject our null hypothesis and will say that there is a positive relationship between Functionality and Perception.Hypothesis Statement 2H0 (Null Hypothesis) There is no relationship b etween 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 getting better.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 my null hypothesis and will say that there is a positive correlation between Price and Perception. Price of Milkpak plays important role in its percepti on 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 availableness.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. People 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 whi ch 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 coefficient 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 tab le 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 analysisMostly purchases are made from the departmental and general store.Mostly 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. bill and ReflectionThe 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 frequency 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 become a voice above the media clutter-a voice that differentiated Olpers brand from the others. This heavy 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 retain its customers.77% of the Respondents say that they will repurchase the brand which shows customer satisfaction and trust towards Milkpak.72% respondents are willing to refer Milkpak to others which shows soaring recommendation rate and is beneficial for Milkpak.The only alarming statistics in purchase factor is its consignment 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 network 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 nutrition are the factors which the respondents prefer when they have to make decision about Milk and the data shows that most of the respondents are of the opinion that Milkpak provide all of these factors.The minimum magnitude is of promotion (0.415) which shows that Milkpaks advertisement is not that creative. They have to incr ease 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 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)GeneralizabilityLack of ExpertiseAs it is a pilot study and I am not expert, i did not have idea that how i will relate the proposal with the veritable findings, i found number of lacking in my proposal, so to make it perfect, i had to make some c hanges in our research questions, conceptual framework and hypothesis as well and finally with come up with this report.