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A REPORT ON MARKET RESEARCH IN SALES OF DEL MONTE

BY AVI SHAH 11BSP1867

A REPORT ON

MARKET RESEARCH IN SALES OF DEL MONTE

By AVI SHAH 11BSP1867

A report submitted in partial fulfillment of the requirement of PGPM PROGRAM OF IBS MUMBAI Submitted to:Prof. Prakash Pandit (Faculty Guide)

Date of Submission:15th Feburary 2013

ACKNOWLEDGMENT

The sense of contentment and elation that accompanies the successful working of this project would be incomplete without mentioning the names of the people who are helping me to accomplish this project, people whose constant guidance, support and encouragement is resulting in its realization.

I am highly indebted to IBS MUMBAI for providing me with the opportunity to be able to do my Market Research Project. My earnest thanks to Mr. Ratan the local store manager for his valuable guidance and support in ensuring me a free hand during the course of the work. Heartfelt thanks to everyone who took part in the research and who patiently helped me throughout the questionnaire, even though it stole much time of their busy schedule. My sincere gratitude to the members of Big Bazaar, Hyper City, and Food Bazaar for helping me finish my analysis in a much better way. I owe much to my faculty guide Mr. Prakash Pandit, IBS MUMBAI for the inspiration and guidance which enabled me to take up work which made me learn new things and concepts.

Table of Contents
TABLE OF CONTENTS..........................................................................................4 COMPETITOR ANALYSIS......................................................................................................15 DETAILS OF FIRST FOCUS GROUP.......................................................................................23 DETAILS OF SECOND FOCUS GROUP..................................................................................23 DETAILS OF THIRD FOCUS GROUP......................................................................................23 GOALS TO BE ACHIEVED THROUGH FOCUS GROUP...........................................................26 REASON FOR CONDUCTING THREE FOCUS GROUPS..........................................................26 FOCUS GROUP 1.................................................................................................................29 KEY FINDINGS OF FOCUS GROUP 1.................................................................................30 FOCUS GROUP 2.................................................................................................................34 KEY FINDINGS OF FOCUS GROUP 2.................................................................................35 FOCUS GROUP 3.................................................................................................................38 KEY FINDINGS OF FOCUS GROUP 3.................................................................................39 SUMMARY OF FOCUS GROUP FINDINGS.............................................................................42 LIMITATIONS OF FINDINGS.................................................................................................43 GENDER.............................................................................................................................47 AGE....................................................................................................................................48 INCOME BRACKET..............................................................................................................49 DEGREE OF LIKING DEL MONTE JUICE................................................................................51 PRICE.................................................................................................................................52 PACKAGING........................................................................................................................53 QUALITY.............................................................................................................................55 TASTE.................................................................................................................................57 SUGAR CONTENT...............................................................................................................58 ADVERTISMENT..................................................................................................................59 FREQUENCY OF CONSUMING DEL MONTE ORANGE JUICE..................................................61 FREQUENCY OF CONSUMING ON DAILY BASIS....................................................................63 CONCLUSION......................................................................................................................64 EFFECT OF INCOME ON CONSUMPTION OF JUICE...............................................................65 Hypothesis 1:.................................................................................................................66 EFFECT OF GENDER ON DEGREE OF LIKING DEL MONTE ORANGE JUICE...........................69 Hypothesis 2:.................................................................................................................69 EFFECT OF AGE ON CONSUMPTION OF DEL MONTE ORANGE JUICE...................................71 Hypothesis 3:.................................................................................................................72 EFFECT OF TASTE ON CONSUMPTION OF DEL MONTE ORANGE JUICE...............................74 Hypothesis 4:.................................................................................................................75 EFFECT OF PRICE ON CONSUMPTION OF DEL MONTE ORANGE JUICE.................................77 Hypothesis 5:.................................................................................................................78 EFFECT OF ADVERTISEMENT ON CONSUMPTION OF DEL MONTE ORANGE JUICE...............80 Hypothesis 6:.................................................................................................................80 DEGREE OF SATISFACTION WITH PACKAGING OF DEL MONTE ORANGE JUICE...................83 DURATION IN RETAIL BUSINESS.........................................................................................85 REGULAR SUPPLY OF DEL MONTE ORANGE JUICE..............................................................86 AFFECT OF PRICE CHANGE ON SALES................................................................................87 DEL MONTE CHILLERS........................................................................................................89 CONCLUSION......................................................................................................................91

EFFECT OF SALES OF DEL MONTE ORANGE JUICE ON PROFIT MARGIN...............................92 Hypothesis 1:.................................................................................................................93 EFFECT OF PRICE CHANGE ON PROFIT MARGIN OF DEL MONTE ORANGE JUICE.................95 Hypothesis 2:.................................................................................................................95

BHARTI & DEL MONTE TIE-UP


An Indian business giant and a Philippine conglomerate have come together to create FieldFresh Foods Pvt. Ltd. FieldFresh Foods is a joint venture between Bharti Enterprises and Del Monte Pacific Limited to offer Del Monte branded processed food and beverage products in India and fieldfresh branded fresh fruits and vegetables in India and other countries. With a range of superior tasting products and the synergy between Bhartis dynamism and Del Monte Pacifics food business experience, FieldFresh Foods looks forward to becoming the leading and most trusted food company in India.

Bharti Enterprises
Indias leading business group, Bharti Enterprises has interests in telecom, agri-business, insurance & retail. With over 100 million customers, Bhartis flagship unit, Airtel Ltd., is the countrys leading private sector provider of telecommunication

services.

Del Monte Pacific Limited


Del Monte Pacific Limited is listed in the Singapore Stock Exchange and holds a group of companies that caters to todays consumer needs for premium quality, healthy food and beverage products. The Del Monte Pacific Group has exclusive rights to the Del Monte brand for processed food and beverage products in the Indian subcontinent and in the Philippines where it enjoys leading market shares for canned pineapple juice and juice drinks, canned pineapple and tropical mixed fruits, tomato sauce, spaghetti sauce and tomato ketchup.

PRODUCTS
PACKAGED FRUITS Pineapple slices Pineapple tidbits Fruit cocktail Peach halves Prunes

FRUIT DRINKS Pineapple Pineapple orange Four seasons Juice dispensers

KETCHUP AND SAUCES Twango sauce Zingo sauce Tomato ketchup Tomato chilli sauce

ITALIAN RANGE Olives Pasta Extra virgin olive oil

OTHER PRODUCTS Corn

CURRENT SITUATION

The main aim of Del Monte is to reach every single Indian. Del Monte currently launched a new flavored juice in India that is Del Monte Orange. The profit and net profit margins remained stable. Overall profit margin showed a slight increase but a slight decline in gross profit margin was witnessed.

PROBLEM STATEMENT
To know the reason of decline in sales of Del Monte orange juice

SALES GROWTH
Del Monte orange juice has been a flagship brand of Del Monte juices since years. However, their sales declined to -1 % as compared to last year.

Last year growth in sales 20%

This year growth in sales -1%

As per the meeting with the Store manager, I got an insight about customer attitude, competitors, product development etc.

Total contribution of orange juice is 20% to revenue in the juices category; however the overall market share of juices is 60%.

DEL MONTES CONCERN

For Del Monte, in their juices category, Del Monte Orange has been their flagship brand since its introduction in the market. As mentioned earlier, the total contribution of orange juice for Del Monte has been 20% until last year. However, due to changes in consumers attitudes, for some reason or the other, the sales drastically decreased from 20% to negative 1% from last year to current year. This has been a major area of concern for the organization, its top management and all subsequent lower level staff. People at Del Monte are really looking towards finding ways to bring their flagship brand back to the position it was holding for years. The reasons behind declining sales were: Del Monte orange juice has always been the leading juice among all available Del Monte flavors, it showed leading sales. However, this year the leading sales were taken by apple juice.

There were no quality issues with Del Monte Orange juice, so it was surprising for the juices team to see negative sales. The availability of Orange Juice was perfect and there was not any such juice launched which could take away the share from orange juice, nor there were any new competitors. Being the pure orange juice with no artificial flavor, and further added vitamin C should have improved the sales. However this was not what actually happened.

MARKETING MIX

Del Monte strives to increase this trust through its commitment to environmentally sound business practices. For this purpose Del Monte:

Bases environmental claims in advertising, promotional material, labeling and corporate communications on solid scientific evidence. Selects materials and printing methods for merchandising materials such as: o consumer offers, o in-store promotions,

Displaying materials, leaflets and printed materials in light of environmental considerations.

PRICE 200 ml = Rs. 35 PLACE Available at all major cities such as Mumbai Delhi Bangalore Hyderabad Ahmadabad Kolkata

TARGET MARKET

The target market of Del Monte juices includes: Both male and female between the age group of 19-31 Health conscious people Urban areas Career oriented and life starters

COMPETITORS

Real Juice Tropicana

Appy Juice

Other imported brands

COMPETITOR ANALYSIS

Real Juice
Price (200ml) = Rs. 18 Price (1 l) = Rs. 80

Tropicana
Price (200ml) = Rs. 18 Price (1 l) = Rs. 80

Appy Juice
Price = Rs. 12

INFORMATION NEEDS

To get the information regarding the product in which company is currently facing problem. Following research must be provided to the company about the declining sales of Del Monte Orange Juice. Study of specific areas which are the root cause of decline in sales To find the exact information regarding consumers taste and preferences Awareness of the brand in various socio economic classes and geographical areas To identify the correct target market What strategies competitors are using and how that can be tackled To find if there is problem with advertisement and promotion. Product quality

RESEARCH QUESTION
Our research objectives will also include some questions through which we will try to solve our research problem. 1. How important is the taste of Del Monte Orange Juice important for the customer? 2. How much consumers are willing to pay for Del Monte Orange Juice? 3. How much the advertising campaign influences the purchase decision of the consumer? 4. What is the awareness level of Del Monte Orange Juice among consumers? 5. How strong are competitors in creating loyalty among their target market?

HYPOTHESIS

The hypothesis that was formulated based on our research question are as follows: Household income has significant impact on the consumption of Juices. A significant relationship exists between gender and degree of liking of Del Monte Orange Juice A significant relationship exists between age and consumption of Del Monte Orange Juice

Significant relationship exists between the Taste of Del Monte Orange Juice and consumption of Del Monte Orange Juice. Significant relationship exists between the Price of Del Monte Orange Juice and consumption of Del Monte Orange Juice. Significant relationship exists between the Appealing

Advertisement of Del Monte Orange Juice and consumption of Del Monte Orange Juice.

Degree of liking Del Monte juice has any impact on the degree of liking Del Monte orange juice. A significant relationship exists between Taste and Degree of liking Real juice.

A significant relationship exists between the degrees of satisfaction of consumers with the packaging of the Del Monte Orange juice. A significant relationship exists between Del Monte brand juices and preference to stock then by the Retailers. There is a significant relationship between sales and appealing advertisement of Del Monte Orange Juice. A significant relationship exists between the sales and the profit margin of Del Monte Orange Juice. A significant relationship exists between the price of the juice and the profit margin of Del Monte Orange Juice.

RESEARCH OBJECTIVE

The research objectives of our project are as follows: To know the buying preferences and purchasing habits of consumers buying Del Monte Orange juice. To understand consumers taste preferences; as people tend to like sweet juices in India rather than bitter pure orange taste. To analyze new competitors in the market to see whether they affect the sales of Del Monte Orange Juices. To analyze the effectiveness of promotion campaign of Del Monte Orange Juice on consumers. To determine consumer awareness about the product To analyze the process of distribution of Del Monte juices and its availability in the market. To determine quality of Del Monte Orange Juice. To collect specified product performance data for identifying retailers strengths and weakness which could serve as indicator for evaluating the performance of the Supply Chain of Del Monte Orange juice.

EXPLORATORY RESEARCH

Exploratory research will help us identify the research hypotheses. Hence, it is of our benefit to start off the research process by conducting exploratory research. Currently we have two general hypotheses from which we have to establish priorities by exploring and developing relationships between different variables. Under the exploratory research we will have to conduct 1. Focus groups, 2. Literature review.

FOCUS GROUPS

The purpose of conducting focus groups for our research project is to get an in depth insight of the problems associated with the decline in sales of Del Monte orange juice. Their views and opinions about the taste preferences of the consumers will be exposed to us during the whole focus group sessions. Information regarding emerging competitors, changes in the marketing strategy, changes in buying preferences and other possible reasons which resulted in the decline in sales of Del Monte orange juice will be extracted out. A total of three focus groups have been planned in order to exchange ideas regarding reasons of decline in sales of Del Monte orange juice. The members of one focus group will be composed of 1. Age group 20 - 25. 2. Age Group 26 - 31. 3. Housewives/working women We have selected two different focus groups with age brackets of 20-25 and 26-31 so as two know that whether the decline in sales is due to changes in taste preference with age. There may be a difference of attitude with maturity between someone who is 20 and someone who is of 30 years of age. The third focus group we will conduct is with women so as to know the household consumption.
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DETAILS OF FIRST FOCUS GROUP

There will be 7-10 participants in first group, both male and female. The reason behind the selection of participants in the first focus group between the age group of 20-25 is because this group consumer includes young professionals, students and young home makers. The participants in their early twenties have a different approach towards life, as compared to participants in late twenties. I have decided to carry out the focus groups so as to have a deep insight of the problem in different areas and in different age groups of people.

DETAILS OF SECOND FOCUS GROUP

There will be 7-10 participants in second group. The individuals in this focus group have entered into their professional life and are married. They have different taste preferences as compared to individuals in their early twenties.

DETAILS OF THIRD FOCUS GROUP

The third focus group would be conducted with women only, preferably include housewives or working. This will help us understand the household consumption of Del Monte Orange Juice.

LITERATURE SEARCH
For our project Literature search is one of the key exploratory studies that we conducted, in fact literature search was the very initial study that we began our project with. Initially right after we discovered our underlying problem, for which we are conducting this marketing research, we started up with gathering data and statistics about the company i.e., Del Monte itself. We used mostly the web for this purpose. The website that turned out to be most helpful as far as gathering information of Del Monte was concerned. Literature search helped us with is gathering data regarding the competitors. On the web we found out who are the competitors of Del Monte in its juices line and more precisely in its orange juice. Literature search revealed that a few of our major competitors are: Tropicana Real juice Tropicana Tropicana offers 100% pure orange juices without any added sugar, flavors or preservatives. Tropicana orange juice gives the consumers the absolute delight in taste, and revitalizes them at the same time.

Real juice Real juice enriches our senses with the fresh taste of 100% pure orange juice. A sip of Real juice helps our taste buds embark on a magical journey filled with the sweetest fruit sensations.

FOCUS GROUPS DETAILS

GOALS TO BE ACHIEVED THROUGH FOCUS GROUP

Goals to be achieved through focus group discussion are the following, which will help us in analyzing the different factors that have attributed to decline in sales of Del Monte Orange Juice. To understand consumers taste preferences. To analyze the effectiveness of promotion campaign on consumers. To determine consumer awareness about the product

To determine quality of Del Monte Orange Juice.

To know why consumer are switching to competitors brand Two focus groups were conducted with different consumers, who gave us an insight of their likes and dislike about the orange juice.
REASON FOR CONDUCTING THREE FOCUS GROUPS

Three focus groups were conducted. After the first focus group was conducted we analyzed the results of the responses that we got from the focus group participants. After thorough analysis of the results we came to a conclusion that although the information gathered from the focus group was really useful and helpful but the information was not much diversified. The responses of the participants were not much detailed and were not elaborated much. Thus, in order to cater to this problem we
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planned for the second focus group whose results together with the first focus group gave us a clear picture. We used different age groups for the purpose having an insight of the target markets changing opinions with age. The third focus group was conducted with women i.e. the household heads who manage the house, to know about the household consumption of Del Monte Orange Juice.

FOCUS GROUP 1

RESPONDENT S
Respondent A Respondent B Respondent C Respondent D Respondent E Respondent F Respondent G Respondent H

NAME AGE GENDER EDUCATIO N LEVEL


Rohan Bhavin Vinay Rushabh Ruchita Shrishti 20 21 20 24 21 23 Male Male Male Male Female Female Female Female BBA BBA BBA BSC BSC MBA MBA MSC

OCCUPATION
Student Student Student Student Student Student Student Student

Sudeshna 20 Aditi 23

KEY FINDINGS OF FOCUS GROUP 1

Which Flavor do you buy? Respondent A, B and C love to have orange juice, respondent D liked mango juice, where Respondents E, F, G and H liked apple juice. What is your second choice of flavor In case of unavailability? Respondent A, B and C were not willing to have any other juice of orange juice was not available, they would rather take water. Respondent D would purchase apple if mango is unavailable. However if apple juice is not available respondents E and F would buy grapes, respondent G would buy Mango, and respondent H would buy Pineapple. Do you like orange juice? Which brand do you buy? What is your second choice of brand? All of the respondents at once named Del Monte, in case of unavailability of Del Monte Respondents A, B and C said that they would go for Real. Respondents D, E, F, G, and H would go for Tropicana. Likes and dislikes regarding orange juice Respondent A said he loves Del Monte orange juice, respondent B had the same view, and respondent C was so excited that he started licking

his lips that he just simply loves Del Monte orange juice. In contrast, rest of the respondents had high disliking for the Del Monte Orange Juice, they said they hate it. Why do you buy your preferred brand? Which appeals you the most when you buy a juice? What is the most important attribute when you purchase orange juice? Following results were seen: Respondents A, B and C buy Del Monte orange juice because it is a big company and they perceive it to be good quality. The three respondents loved the taste of Del Monte Orange Juice. Respondent A said he loves the bitter taste of the orange juice and the brand name as Del Monte is the top brand. Respondent B loves oranges simply, so he cant resist having Orange juice. Respondent C said that its the packaging and quality which appeals him the most. Respondents A and B look for taste and quality. Where respondents E, F, G and H liked Del Monte apple juice because they think it is more pure and also good in taste.

Which packaging do you prefer buying, 1000 ml or 200 ml? In response to this question all respondents said that they buy 200 ml on daily basis. Also 1000 ml is purchased by all respondents except respondent G. Consumption behavior pattern All the respondents have juice on a regular basis. Respondent A, B, C and D buy the juices 3 to 4 times a day when they are out. However, respondent E, F, G and H at least take juice once in the entire day. Have you recently switched to another brand? If so, then why? Respondents A, B and C responded that they have not switched permanently to Real Juice, but they do buy Real Juice for a difference. Respondent A said that taste wise Real Juice is good but quality and purity wise Del Monte Orange Juice is the best. Respondent B said that he likes the pulp in Real Juice, and it is more in quantity, where as Del Monte Orange juice has less quantity and finishes soon. Respondent C said that Real Juice is more affordable and comes in more quantity; also it is not as bitter as Del Monte orange juice. Respondent D, E and F were Indifferent, whereas, respondent G and H said if Del Monte is not available they would go for Tropicana.

Where do you purchase juice from? For this question, the respondents said that they buy it from any small shop or retail store near to their place. However all respondents except respondent G said that their mothers buy the 1000 ml package when they buy their monthly grocery. Respondent A and B buy it from Big Bazaar. Respondent C, D and Es mothers go to Food Bazaar, respondent F and H go to Hyper City.

FOCUS GROUP 2

RESPONDANTS NAME Respondent A Respondent B Respondent C Respondent D Respondent E Respondent F Respondent G

AGE GENDER EDUCATION OCCUPATION LEVEL Male Male Male Male Female Female Female Masters Masters Masters Masters Masters MBA Masters Senior Software Engineer CSR Management Trainee Officer Senior Associate Army Nurse Executive assistant Business Development Manager

Mithilesh 28 Parth Manan Ayush Mansi Priyal Khushi 28 30 25 26 28 25

KEY FINDINGS OF FOCUS GROUP 2

Which Flavor do you buy?

Respondent A likes Pineapple flavor, respondent B and C purchase pineapple, D, E, F and G buy orange juice. Do you like orange juice? Which brand do you buy? Respondent A, B and C said that they do not like orange juice, if they buy it for some reason they buy Tropicana Orange Juice. Respondents D, E, F and G liked orange juice. Respondents D and F buy Del Monte orange Juice whereas respondents E and G bought country high orange flavor. What would be your second choice of brand? None of them was willing to switch. Why do you buy your preferred brand? Which appeals you the most when you buy a juice? Respondents A, B and C said that they like the taste of their brand and taste is what appeals to them the most. Respondents D and F said that brand name is what matters to them. Respondents E and G like their brand because its Indian brand. These responses were a real patriotic sort. What is the most important attribute when you purchase orange juice? What are your likes/dislikes for juice? What do you like the best in orange juice?

Following results were seen: Respondents A, B and C said that if they will buy orange juice they would prefer buying the one with good taste. Respondent A said that he will never go for Del Monte as it has the worse taste and it tastes like medicine. He also said that they claim it a health drink but he always has an upset stomach and acidity after having Del Monte Orange Juice. Respondents D and F said that they like orange juice especially Del Monte orange. Del Monte Orange is actually a true orange juice. And they like the bitter taste of the juice. Respondents E and G said that the important attribute for them is that it should be an Indian brand. The most important attribute identified by respondents D and E is that they wanted it to be really chilled to quench their thirst especially in the extreme weather prevalent in our country; respondent F said the price should be not more than Rs. 15. Respondent G said that purity is what matters to her. Which packaging do you prefer buying, 1000 ml or 200 ml? In response to this question all respondents said that they buy 200 ml packaging more frequently. Whenever they feel like having a drink. 1000ml is purchased by all respondents but on monthly basis. Respondent F and G said that they buy 4-5 1000ml package in a month. Consumption behavior pattern

Respondents D and E said that they take orange juice 3-4 times a day, respondent F and G said that they take juice whenever they feel thirsty. Respondents A, B and C said that they take juice daily, around 1 to times. Have you recently switched to another brand? If so, then why? Respondents D and E said that they have started switching to Real Juice as it has a better taste and they like the pulp content in it. Respondent F and G said that they love the taste of Del Monte orange Juice, the bitter taste is what they really love. Respondents A, B and C said that they have not switched to any brand. Where do you purchase juice from? All the respondents said that they purchase it from their nearest stores.

FOCUS GROUP 3

RESPONDANTS NAME Respondent A Monica

AGE GENDER OCCUPATION 40 Female Housewife


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Respondent B Respondent C Respondent D Respondent E Respondent F Respondent G Respondent G

Rashmi Varsha Mona Nipa Dolly Shradha Sonal

43 45 32 30 39 48 34

Female Female Female Female Female Female Female

Housewife Housewife Housewife Working Woman Teacher Housewife Housewife

KEY FINDINGS OF FOCUS GROUP 3

Which Flavor do you buy? Respondents E, G and H were highly likely in favor of orange juice, but Respondent E has some other preferences as well in the absence of orange juice she says whatever is available on time. Respondent B, D and F likes red grapes, respondent A liked pineapple and Respondent C was in love with guava. What is your second choice of flavor in case of unavailability? As told before Respondent E had some other preferences, she said her 2nd most choice will be mango, where as C, D and F were said they would like mango instead, Respondent A and B said theyll shift their choice to cold drink, and Respondent G, and H said theyll prefer water.

Do you like orange juice? Which brand do you buy? What is your second choice of brand? All the respondents were in favor of Del Monte but Respondent B and G said they are a bit expensive, but we still buy. In case of unavailability they all gave different responses like A, C, F and H said theyll opt for Real juice, and D and E said Tropicana. Liking towards Del Monte Orange Juice Respondent E, G and H said they truly love Del Monte orange juice, respondent A and B said some what they like, respondent C, D and F were not favor that much either, they said they themselves love but to buy for home they prohibit, because their children think it tastes bitter. Why do you buy your preferred brand? Which appeals you the most when you buy a juice? What is the most important attribute when you purchase orange juice? Following results were seen: Respondents E, G and H buy Del Monte orange juice because of their tag line of 100% pure orange juice, what they say they provide it. Respondent C, D and F were somewhat in favor of buying, they said they dont buy 1000ml for their family. In contrast respondent A and B said they love to buy orange juice.

Respondent E and H love the price in the mean while respondent G added its packaging attribute, that tetra shaped packing looks good, but it give the image of being less in quantity. Which packaging do you prefer buying, 1000 ml or 200 ml? Respondent E said shes a sales women so she drink it on daily basis (200ml pack), respondent G and H said they highly likely to drink it twice a day during their lecture breaks(200ml pack). C, D and F said their intake of Del Monte orange juice if rare. Respondent A and B said they buy big pack of 1000ml on monthly basis. Consumption behavior pattern Respondent E, G and H take it on daily basis, Respondent A and B whenever they like, and rest said when they go out, or whenever its served at someone elses place. Have you recently switched to another brand? If so, then why? None of the participant in the focus group had shifted to any other brand. The respondent G and H said whatever they find instead of Del Monte. Respondent C, D and F said they buy Real Juice and Tropicana for their household purposes but for themselves they prefer buying Del Monte Orange juice (200ml pack).

Where do you purchase juice from? Respondent E said she get served in her office. Respondent G and H said that they buy it from the nearby shops. Rest said from the place they do there grocery shopping.

SUMMARY OF FOCUS GROUP FINDINGS

The Focus group revealed some of the very useful and interesting findings which can help us in identifying the solution to the problem. The respondents top of mind brand has always been Del Monte. Those who are moving away from Del Monte orange juice are doing so
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because of its bitter taste, and also because as per the participants competitors are offering pure juice with a good taste and fair price. Consumers think that the price is also high. Also they doubt that although Del Monte claims the juice to be 100% pure it is not the case in reality. Consumers believe that the juice has artificial flavor and preservatives added to it as a few very prominent ingredients. Also, they say Orange Juice tastes good when it is chilled, whereas most of the times Del Monte juices that are available are not fully chilled. We also found out that those who do not take Del Monte Orange Juice or those who have switched to another brand is because of increasing price of Del Monte Orange Juice and its bitter taste. Also some of the respondents proved to be more patriotic and didnt like taking juice of any Multinational firm. We also found out that those who take orange just simply love its bitter taste. The focus group conducted with the decision making units for the households that is the Housewives, we found out that they prefer buying Cartons of Del Monte Orange Juice on monthly basis in large packings for their family.
LIMITATIONS OF FINDINGS

The focus group discussion tends to get biased as many respondents try to emphasize their opinion. Some of the respondents take clue from ideas of others and agree to what others say, without thinking over it.

DATA COLLECTION
For collecting data, questionnaire was made; containing general question about the juice preference and then asking questions related to Del Monte Orange juice to know about the brand.

Questionnaires were made to get them filled by consumers and retailers to get information from both retailers and consumers to know about the variables affecting sales of Del Monte Orange Juice. Questionnaire has been attached in the appendix.

SURVEY METHODOLOGY
For the research under study sample size was as follows: 200 samples of consumers and 70 samples of retailer Out of 200 samples of consumers only 178 were valid responses and others were discarded due to their invalid responses. In the retailers only 59 were the valid responses which can be thought as of taking a portion of the whole and studying that portion to make estimates about the whole. Retailers sampled in the study were located in different locations in Lahore and from big mart to small commercial shop. The retailers questionnaire were administered so as to have right responses .This was due to the communication gap as most of the retailers were unable to read English so it was to be administered.

CONSUMER ANALYSIS

ANALYSIS OF RESPONSES TO GENERAL QUESTIONS Few questions were asked in the questionnaire in both consumer and retailers questionnaire in order to check the buying and consuming

behavior of buyers and consumers. The analysis of responses given to such questions is given in this section.
GENDER

Gender:
Frequency Valid Male 84 Female 94 Total 178 Percent 47.2 52.8 100.0 Valid Percent 47.2 52.8 100.0 Cumulative Percent 47.2 100.0

We took equal male and female respondents for our analysis. However, we had to discard some of the questionnaires which were incomplete and were not meeting our standards. So our final analysis consisted of 53% female and 47% male respondents.

AGE

Age
Frequency Valid 15 16-20 21-25 26-30 31-35 and above Total 45 63 33 36 178 25.3 35.4 18.5 20.2 100.0 25.3 35.4 18.5 20.2 100.0 25.8 61.2 79.8 100.0 Less than 1 Percent 0.6 Valid Percent 0.6 Cumulative Percent 0.6

Our respondents were from different age groups including from 16 years to 35 years of age. However according to our analysis we had 35% of respondents within age group of 21-25, 25% from age group of 16-20.

INCOME BRACKET

Which income bracket you fall in Frequency Percent Valid missing 12 Less 19 than 15000 16000- 20 25000 26000- 37 35000 36000 90 50.6 50.6 100.0 20.8 20.8 49.4 6.7 10.7 11.2 Valid Percent 6.7 10.7 11.2 Cumulative Percent 6.7 17.4 28.7

and above Total

178

100.0

100.0

Our sample also included around 50% of the respondents are with income bracket of above Rs. 36ooo and 50 % respondents having income level below Rs. 36000.

DEGREE OF LIKING DEL MONTE JUICE

Degree of liking Del Monte


Frequency Valid Like a Lot Like Neutral Dislike Total 97 70 10 1 178 Percent 54.5 39.3 5.6 0.6 100.0 Valid Percent 54.5 39.3 5.6 0.6 100.0 Cumulative Percent 54.5 93.8 99.4 100.0

According to our analysis top of mind has always been Del Monte Orange Juice. Around 54% of respondents showed a favorable response and said that they like a lot. 39 % respondents said that they like Del Monte Orange Juice. According to this graph we conclude that our target market does have a favorable response towards Del Monte Orange Juice. There was only a small percentage of respondents i.e. 0.6% of respondents who said that they dislike orange juice.

PRICE

Price
Frequency Valid missing 1 Highly 53 Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total 71 26 23 4 178 Percent 0.6 29.8 39.9 14.6 12.9 2.2 100.0 Valid Percent 0.6 29.8 39.9 14.6 12.9 2.2 100.0 Cumulative Percent 0.6 30.3 70.2 84.8 97.8 100.0

After knowing that high percentage of our respondents liked Del Monte Orange Juice, we tried to analyze their perceptions regarding different attributes of the different brands. Besides being the highest priced brand 40% of the respondents were satisfied with its price. There was only a small percentage i.e. 2.2% respondents which was highly dissatisfied with the price.

PACKAGING

Packaging

Frequency Valid missing 1 Highly 64 Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total 86 16 8 3 178

Percent 0.6 36.0 48.3 9.0 4.5 1.7 100.0

Valid Percent 0.6 36.0 48.3 9.0 4.5 1.7 100.0

Cumulative Percent 0.6 36.5 84.8 93.8 98.3 100.0

After analyzing the attributes regarding packaging we found that 48% of the respondents are satisfied with the packaging. Out of our approximately 200 respondents more than half of them were towards being satisfied with the packaging.

QUALITY

Quality
Frequency Valid missing 3 Highly 93 Satisfied Satisfied 67 Neutral 11 Dissatisfied 2 Percent 1.7 52.2 37.6 6.2 1.1 Valid Percent 1.7 52.2 37.6 6.2 1.1 Cumulative Percent 1.7 53.9 91.5 97.7 98.8

Highly Dissatisfied Total

2 178

1.1 100.0

1.1 100.0

100.0

As per this attribute, 52% of respondents were highly satisfied with the quality of Orange Juice. As with other attributes, this attribute also had high percentage of respondents being more satisfied with the quality of Del Monte Orange juice.

TASTE

Taste
Frequency Valid missing 1 Highly 92 Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total 62 14 5 4 178 Percent 0.6 51.7 34.8 7.9 2.8 2.2 100.0 Valid Percent 0.6 51.7 34.8 7.9 2.8 2.2 100.0 Cumulative Percent 0.6 52.2 87.1 94.9 97.8 100.0

According to this graph also, there was a huge percentage that is 51% which is more than a half who were highly satisfied with the taste of Del Monte Orange Juice. In this case also there were more responses towards being satisfied.

SUGAR CONTENT

Sugar free
Frequency Valid missing 1 Highly 51 Percent 0.6 28.7 Valid Percent 0.6 28.7 Cumulative Percent 0.6 29.2

Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total

58 50 16 2 178

32.6 28.1 9.0 1.1 100.0

32.6 28.1 9.0 1.1 100.0

61.8 89.9 98.9 100.0

When we talked to the respondents that whether they are satisfied with Del Monte Orange Juice being sugar free,32% of respondents were satisfied with Del Monte Orange Juice being Sugar free.

ADVERTISMENT

Fruit content
Frequency Valid missing 7 Highly 51 Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total 57 52 8 3 178 Percent 3.9 28.7 32.0 29.2 4.5 1.7 100.0 Valid Percent 3.9 28.7 32.0 29.2 4.5 1.7 100.0 Cumulative Percent 3.9 32.6 64.6 93.8 98.3 100.0

Talking to the respondents about Del Monte Orange Juice regarding its Fruit Contents Attribute, again we received a favorable response that and found out that 47% of the respondents were satisfied with the fruit contents additions in Del Monte Orange Juice.

FREQUENCY OF CONSUMING DEL MONTE ORANGE JUICE

How often do you drink Del Monte orange juice


Frequency Valid missing Daily Weekly Occasional ly Not 11 6.2 6.2 100.0 1 77 44 45 Percent .6 43.3 24.7 25.3 Valid Percent .6 43.3 24.7 25.3 Cumulative Percent 0.6 43.8 68.5 93.8

Applicable Total

178

100.0

100.0

According to our analysis, to know the consumption behavior pattern of the respondents we asked them how often they drink Del Monte Orange Juice. We found out that a high percentage of respondents i.e. 43% drink Del Monte orange Juice on daily basis. Students normally purchase Del Monte Orange Juice from their cafeterias. And others normally used to purchased it from small town shops or where ever accessible.

FREQUENCY OF CONSUMING ON DAILY BASIS

How many times in a day do you take Del Monte orange juice
Frequency Valid Missing 29 Not 35 Applicable One Time Two Times Three Times Oftenly Total 62 36 10 6 178 Percent 16.3 19.7 34.8 20.2 5.6 3.4 100.0 Valid Percent 16.3 19.7 34.8 20.2 5.6 3.4 100.0 Cumulative Percent 16.3 36.0 70.8 91.0 96.6 100.0

Upon asking the respondents that how many times a day do they take Del Monte Orange juice. We extracted surprising results and came to know that 34% of respondents take Del Monte Orange Juice at least once a day.

CONCLUSION

As per our analysis we found out that when talking if juices consumers want Orange juice, not just any juice Del Monte orange Juice. However the top of mind choice of any consumer is Del Monte Orange Juice, still more than 50% of the consumers are unaware of the latest advertisements, we conclude that, that we need to keep on reminding the consumer of anything that is in the market otherwise consumers forget.

Lack of appropriate promotion is also one of the factors that may be attributing to declining sales of Del Monte Orange Juice.

CROSS TABS

EFFECT OF INCOME ON CONSUMPTION OF JUICE

To check whether income has any affect on the consumption of juice. By using the data obtained from questionnaire a cross tab was made to see the relationship between consumption and income. From the results of this question we can conclude of the hypothesis, stated as:

Hypothesis 1:

Household income has significant impact on the consumption of Juices.

Do you drink juice Total Yes Which income bracket you fall in Missing Count 12 0 No

%within which income bracket you fall in Less than 15000 income bracket you fall in 16000-25000 income bracket you fall in 26000-35000 income bracket you fall in 36000 and above income bracket you fall in Total income bracket you fall in Count %within which Count %within which Count %within which Count %within which Count %within which

12 100.0% 100.0% 19 19 100.0% 100.0% 18 20 90.0% 100.0% 37 37 100.0% 100.0%

0.0%

0 0.0%

2 10.0%

0 0.0%

89 90 98.9% 100.0% 175 178 98.3% 100.0%

1 1.1%

3 1.7%

Analysis

From the above cross tab we can see that out of 178 respondents, there were only 12 questionnaires in which the respondent did not attempt this question. The rest of 166 respondents did express their opinion. 98.9% of the people who lie in the income bracket of 36000 and above do drink juice. 19 respondents out of 178 who lie in the income bracket of less than 15000 consume juice. 18 out of 178 who lie in the in the income bracket of 16000 to 25000 consume juice and 37 out of 178 who lie in the income bracket of 26000 to 35000 consume juices. The table shows that there are only 3 respondents who do not consume juice, the rest of 75 respondents consume juices. Therefore from this table we can conclude that the consumption of juice depends upon the income bracket in which the individual lies. Results This finding supports our Hypothesis and we accept that income has significant impact on the consumption of juices.

EFFECT OF GENDER ON DEGREE OF LIKING DEL MONTE ORANGE JUICE

To check whether gender has any impact on the degree of liking of Del Monte orange juice. In the questionnaire the questions were asked regarding the degree of liking of Del Monte orange juice. By using the data obtained from questionnaire a cross tab was made to see the relationship between gender and degree of liking of Del Monte Orange juice. From the results of this questionnaire the following hypothesis was concluded:

Hypothesis 2:

A significant relationship exists between gender and degree of liking of Del Monte Orange Juice
Degree of liking Del Monte Orange juice Total Like a lot Gender gender Female gender Count %within Male Count %within 46 84 54.8% 100.0% 51 94 54.3% 1.1% Like 33 39.3% Neutral 5 6.0% Dislike 0 0.0%

37 39.4% 100.0%

5 5.3%

Total gender

Count %within 97 178 54.5% 0.6% 70 39.3% 100.0% 10 5.6% 1

Analysis From the above cross tab between gender and degree of liking of Del Monte orange juice we can see that out of 178 there were 84 male respondents and 94 female respondents who were included in the sampling frame. Out of 84 male respondents 54.8% like Del Monte Orange juice a lot and 33.9% only like Del Monte orange juice. The table shows that there were no male respondents who dislike Del Monte Orange juice. Out of 94 female respondents 54.3% of the respondents like Del Monte Orange juice a lot, 39.4% of the female respondents like the taste of Del Monte Orange juice and only 1.1% that is there was only one female respondent who said that she did not like Del Monte Orange juice. Therefore from this table we cannot fully conclude that gender has significant affect on the degree of liking of Del Monte orange juice.

Results The findings from the cross tab does not fully support the hypothesis that gender has significant impact on the degree of liking of Del Monte Orange juice

EFFECT OF AGE ON CONSUMPTION OF DEL MONTE ORANGE JUICE

To check whether age has any impact on the consumption of Del Monte orange juice. In the questionnaire the questions were asked regarding the age bracket in which the respondent falls and does the respondent consume Del Monte orange juice. By using the data obtained from questionnaire a cross tab was made to see the relationship between age and consumption of Del Monte Orange juice. From the results of this questionnaire the following hypothesis was concluded:

Hypothesis 3:

A significant relationship exists between age and consumption of Del Monte Orange Juice
How often do drink Del Monte Orange juice Total Missing Daily Missing cable Age age 16-20 age 21-25 age 26-30 age 31 and above age 1 36 2.8% 5.6% Total age 1 11 0.6% 77 44 178 43.3% 24.7% 45 25.3% Count %within 17 8 8 22.2% 2 Count %within 0 33 0.0% 0.0% 13 7 13 39.4% 0 39.4% 21.2% 100.0% Count %within Count %within 0 7 19.0% 25 19 12 63 0.0% 39.7% 30.2% 11.1% 100.0% Count %within less than 15 Count %within 0 0 0.0% 0.0% 0 45 0.0% 4.4% 0 1 100.0% 0.0% 100.0% 21 10 1 0 0.0% Weekly Occasionally Not Appli

12 26.7%

46.7% 22.2% 100.0%

47.2% 22.2% 100.0%

6.2%

100.0%

Analysis From the above cross tab between age and consumption of Del Monte orange juice we can see that out of 178 there was only one respondent who did not respond to this question. Out of a total of 36 respondents who fall in the age bracket of 31 and above 47.2% of the respondents said that they consume Del Monte Orange juice on a daily basis, 22.2% stated that consume Del Monte Orange juice on a weekly basis and 22.2% stated that consume Del Monte Orange juice occasionally. Out of 33 respondents who fall in the age bracket of 26-30, 39.4% stated that they consume Del Monte orange juice on a daily basis, 21.2% said that they consume Del Monte orange juice on weekly basis and 39.4% said that they consume Del Monte orange juice on occasional basis. Out of 63 respondents who fall in the age bracket of 21-25, 39.7% stated that they consume Del Monte orange juice on a daily basis, 30.2% said that they consume Del Monte orange juice on weekly basis and 19% said that they consume Del Monte orange juice on occasional basis. Out of 45 respondents who fall in the age bracket of 16-20, 46.7% stated that they consume Del Monte orange juice on a daily basis, 22.2% said that they

consume Del Monte orange juice on weekly basis and 26.7% said that they consume Del Monte orange juice on occasional basis. There was only one respondent in the age bracket of less than 15 who consumed Del Monte Orange juice but that too on occasional basis. Therefore from this table we cannot fully conclude that Age has significant affect on the consumption of Del Monte orange juice because the target market for Del Monte orange juice is between 19 and 31. Our findings also confirm that most of the respondents consuming Del Monte Orange juice lie in this age bracket. Results The findings from the cross tab fully supports our hypothesis that age has significant impact on the consumption of Del Monte Orange juice.

EFFECT OF TASTE ON CONSUMPTION OF DEL MONTE ORANGE JUICE

To check whether taste has any affect on the consumption of Del Monte orange juice. In the questionnaire the question was asked, if the consumers like the taste of Del Monte orange juice or not. By using the data obtained from questionnaire a cross tab was made to see the relationship between consumption and taste. From the results of this question we can conclude of the hypothesis, stated as:
1

Hypothesis 4:

Significant relationship exists between the Taste of Del Monte Orange Juice and consumption of Del Monte Orange Juice.
How often do you drink Del Monte Orange juice Total Missing Daily Missing icable Taste Missing taste Very Good taste 0.0% 0.0% Good taste Neutral taste Bad taste 0 Very Bad Count 9 4 0 5 0 Count %within 0 1 0.0% 7.1% 3 14 35.7% 21.4% 100.0% 5 5 35.7% Count %within Count %within 0 1 0.0% 1.5% 25 21 68 36.8% 30.9% 100.0% 21 30.9% Count %within Count %within 1 0 50.0% 0.0% 0 68 58.8% 29.4% 100.0% 11.8% 0 2 50.0% 0.0% 100.0% 40 20 1 0 0.0% Weekly Occasionally Not Appl

%within taste Not Applicable taste Count %within

0.0% 0.0% 0 2 0.0% 20.0% 0 7 0.0% 100.0%

44.4% 100.0%

0.0%

55.6%

2 0 10 20.2% 0.0% 100.0% 0 0

6 60.0%

Total taste

Count %within

0 0.0%

0.0% 0.0% 100.0%

77 44 178 0.6% 43.3% 24.7% 6.2% 100.0%

45 25.3%

11

Analysis From the above cross tab we can see that out of 178 respondents, there were only two questionnaires in which the respondent did not attempt. In the rest of 177 questionnaires the respondents did express their opinion. Out of 68 respondents who believe that the taste of Del Monte orange juice is very good 58.8% respondents consumed Del Monte orange juice on a daily basis, 24.4% on a weekly basis and 11.8 % consumed Del Monte orange juice on occasional basis. Out of 68 respondents who believe that the taste of Del Monte orange juice is good 36.8% respondents consumed Del Monte orange juice on a daily basis, 30.9% on a weekly basis and 30.9 % consumed Del Monte orange juice on occasional basis. Out of 9 respondents who believe that the taste of Del Monte orange juice is bad 44.4% (4 respondents) respondents consumed
1

Del Monte orange juice on a daily basis and 55.6 % (5 respondents) consumed Del Monte orange juice on occasional basis. Out of 10 respondents who believe that the taste of Del Monte orange juice is very bad 20% respondents consumed Del Monte orange juice on a daily basis, 24.4% on a weekly basis and 60 % consumed Del Monte orange juice on occasional basis. There were a total of 7 respondents for whom this question was not applicable. Therefore from this table we can conclude that the consumption of Del Monte Orange juice depends upon taste of Del Monte orange juice as most of the people do like the taste of Del Monte orange juice Results This finding supports our Hypothesis and we accept that taste has significant impact on the consumption of Del Monte Orange juice.

EFFECT OF PRICE ON CONSUMPTION OF DEL MONTE ORANGE JUICE

To check whether price has any affect on the consumption of Del Monte orange juice. In the questionnaire the question was asked, if the consumers were satisfied with the price Del Monte orange juice or not. By using the data obtained from questionnaire a cross tab was made to see the relationship between price of Del Monte Orange juice and
1

consumption of Del Monte Orange juice. From the results of this question we can conclude of the hypothesis, stated as:

Hypothesis 5:

Significant relationship exists between the Price of Del Monte Orange Juice and consumption of Del Monte Orange Juice.
Consumption of Del Monte orange juice Total Missing Daily icable Price Missing Count % within price Very Important Count %w ithin price Important Count % within price Neutral Count 0 0 0.0% 0.0% 0 1 0.0% 1.9% 0 5 0.0% 7.0% 0 3 0 1 0.0% 0.0% 100.0% 33 16 53 62.% 30.2% 100.0% 30 18 71 42.3% 25.4% 100.0% 7 26 2 0 1 100.0% 3 5.7% 18 25.4% 14 Weekly Occasionally Not Appl

%wi thin price Not important thin price Not at all Important thin price Total hin price Count %wit Count %wi Count %wi

0.0% 11.5% 1 2 4.3% 8.7% 0 0 0.0% 0.0% 1 11

26.9% 7.7% 100.0% 6 8 23 26.1% 34.8% 100.0% 0 4 25.0% 0.0% 100.0% 77 178 44 1

53.8% 6 26.1% 3 75.0% 45

Analysis From the above cross tab we can see that out of 178 respondents, there were 12 questionnaires in which the respondent did not attempt this question. Out of 53 respondents 62.3% who consume Del Monte orange juice on a daily basis considered price as very important factor while purchasing Del Monte Orange juice. Out of 71 respondents 42.3% who consume Del Monte orange juice on a daily basis considered price as an important factor while purchasing Del Monte Orange juice. Out of 27 respondents who consume Del Monte orange juice 26.1% respondents considered price not an important factor while purchasing Del Monte orange juice.

Therefore from this table we can conclude that price was an important factor that was considered while consuming Del Monte Orange juice. Results This finding supports our Hypothesis and we accept that price has significant impact on the consumption of Del Monte Orange juice.

EFFECT OF ADVERTISEMENT ON CONSUMPTION OF DEL MONTE ORANGE JUICE

To check whether advertisements have any effect on the consumption of Del Monte orange juice. In the questionnaire the question was asked, if the consumers were satisfied with the advertising of Del Monte orange juice or not. By using the data obtained from questionnaire a cross tab was made to see the relationship between advertising and consumption of Del Monte Orange juice. From the results of this question we can conclude of the hypothesis, stated as:
Hypothesis 6:

Significant relationship exists between the Appealing Advertisement of Del Monte Orange Juice and consumption of Del Monte Orange Juice.
Consumption of Del Monte orange juice Total Missing Daily Missing Weekly Occasionally Not Appl

icable Appealing Advertisement Missing hin Appealing Adver tisement Very Important hin Appealing Advert isement Important hin Appealing Adver tisement Neutral n Appealing Advert isement Not important n Appealing Advert isement Not at all Important Count %withi n Appealing Advert isement Total n Appealing Adverti sement Count %withi 0 7 0.0% 28.6% 1 11 0.6% 6.2% 4 0 1 14.3% 2 Count %withi 0 2 0.0% 0.0% 0 7 28.6% 28.6% 100.0% 4 1 42.9% Count %withi 1 5 2.0% 0.0% 16 51 27.5% 28.6% 100.0% 14 15 42.9% Count %wit 0 0 0.0% 0.0% 19 15 48 39.5% 31.3% 100.0% 14 29.2% Count %wit 0 4 0.0% 6.5% 10 62 58.1% 16.1% 100.0% 36 12 19.4%

Count %wit

0 3 0.0% 0.0%

0 0.0%

66.7% 33.3% 100.0%

57.1% 0.0% 100.0% 77 44 178 43.3% 24.7% 100.0%

45 25.3%

Analysis From the above cross tab we can see that out of 178 respondents, there were 12 questionnaires in which the respondent did not attempt this question. The table shows that 58.1% of respondents who consume Del Monte Orange Juice on a daily basis feel that appealing advertisement is very important, 39.6% feel that appealing advertisement is important, 28.6% feel that appealing advertisement is not at all important. Those consumers who consume Del Monte Orange juice on a weekly basis 16.1% feel that appealing advertisement is very important, 31.3 percent feel that appealing advertisement is important and 28.6% feel that appealing advertisement is not important for consumption of Del Monte orange juice. Therefore from this table we can conclude that Appealing advertisement was an important factor considered while consuming Del Monte Orange juice. Results This finding supports our Hypothesis and we accept that appealing advertisement has significant impact on the consumption of Del Monte Orange juice.

RETAILER ANALYSIS

ANALYSIS OF RESPONSES TO GENERAL QUESTIONS We collected responses from 60 retailers, to know what they say about the declining sales of Del Monte Orange Juice. As retailers are supposed to have direct contact with customers, they receive daily complaints directly from the customers. So their input was of great importance.

DEGREE OF SATISFACTION WITH PACKAGING OF DEL MONTE ORANGE JUICE

Satisfaction with Packaging of Del Monte Juice


Frequency Valid Yes 49 No 8 Missin 2 Total 59 Percent 83.1 13.6 3.4 100.0 Valid Percent 83.1 13.6 3.4 100.0 Cumulative Percent 83.1 96.6 100.0

According to the question posed to retailers regarding packaging of Del Monte Orange Juice, we found a favorable response towards packaging

by 83% of the retailers being satisfied by the packaging of Del Monte Orange Juice.

DURATION IN RETAIL BUSINESS

Duration in Retail Business


Frequency Valid One year Two years Three years Others Total 17 27 6 9 29 Percent 28.8 45.8 10.2 15.3 100.0 Valid Percent 28.8 45.8 10.2 15.3 100.0 Cumulative Percent 28.8 74.6 84.7 100.0

The number of years spent in a particular business is one of the important attribute, as old is a retail store, more it is known by the community. We selected those retailers who were at least in the retailing business for more than a year. As per our analysis 45.8 % of the retailers were in their current business since two years. 28.8 % of retailers were in the said business for around a year and 10.2% for three years.

REGULAR SUPPLY OF DEL MONTE ORANGE JUICE

Supplies of Del Monte Orange Juice


Frequency Valid Total Yes No 26 33 59 Percent 44.1 55.9 100.0 Valid Percent 44.1 55.9 100.0 Cumulative Percent 44.1 100.0

We asked the retailers about whether they get timely and sufficient supply of Del Monte Orange Juice, and surprising results were revealed. 55.9% of the retailers replied that they do not receive timely and

sufficient supply from Del Monte. This comprises of more than a half of the retailers who are not getting supply of Del Monte Orange juices as desired by them.

AFFECT OF PRICE CHANGE ON SALES

Affect of Price changes on sales Frequency Valid Total Yes No 28 31 59 Percent 47.5 52.5 100.0 Valid Percent 47.5 52.5 100.0 Cumulative Percent 47.5 100.0

The price of Del Monte Orange Juice has also been raised. We asked the retailers about their Responses regarding this aspect. We asked the retailers whether increase in price effects the sales or not. 47.5% of the retailers responded that the change has affected the sales. This is almost half of the retailers saying so. However rest of the retailers said that it did not affect their sales.

DEL MONTE CHILLERS Frequency Valid Total Yes No 26 33 59 Percent 44.1 55.9 100.0 Valid Percent 44.1 55.9 100.0 Cumulative Percent 44.1 100.0

While we surveyed the distributors we found out that 44.1% of the distributors had proper Del Monte chillers available with them where they had placed Orange Juice to cool down and from these chillers consumers were being provided cool and chilled packs of Del Monte orange juice. Also as it is evident from the table and the graph as well that 55.9% of the distributors did not have Del Montes supplied chillers.

CONCLUSION

As all the questionnaires were administered by us, we came across certain findings other than our questionnaires. We recorded those findings as: Retailers had biggest supply problem. They said that the only thing that is hindering the sales is lack of timely supply as well as insufficient supply. They say that demand is very much higher than the supply received. Also, they said that there is a low availability of chillers from Del Monte. Juices are preferred when they are properly chilled, especially in case of Del Monte Orange Juice; its taste is bitter so it gives the best taste when chilled. It has a ridiculous taste if hot. According to the retailers this also is the problem adding to declining sales.

CROSS TABS
EFFECT OF SALES OF DEL MONTE ORANGE JUICE ON PROFIT MARGIN

To check whether sales has any impact on the profit margin of Del Monte orange juice. In the questionnaire the questions were asked regarding the sales pattern of Del Monte orange juice that is whether the sales are high or low. By using the data obtained from questionnaire a cross tab was made to see the relationship between the sales of Del Monte orange juice and the Profit margin of Del Monte Orange juice. From the results of this questionnaire the following hypothesis was concluded:

Hypothesis 1:

A significant relationship exists between the sales and the profit margin of Del Monte Orange Juice
Profit Margin Total Per Pack Most sold brand of orange juice (Del Monte) Highest Sales sold brand of Orange juice (Del Monte) Lowest Sales sold brand of Orange juice (Del Monte) Total sold brand of Orange juice (Del Monte) Count %within most 7 59 11.9% 100.0% 55.9% 32.2% 33 19 Count %within most 2 15 13.3% 100.0% 13.3% 73.3% 2 11 Count %within most 5 44 11.4% 100.0% 31 70.5% 8 18.2% Per Carton Both

Analysis From the above cross tab between sales and the profit margin of Del Monte orange juice we can see that amongst the group of retailers who are experiencing highest sales of Del Monte orange juice, 11.4% say that the resultant profit margin of this high sale is due to pack sales while 70.5% say that the profit margin is due to carton sales while 18.2% of

them attribute the high profit margin sales to the sales of both pack and carton sales. The table also shows that those retailers who are experiencing low sales of Del Monte Orange juice amongst those retailers 13.3% of the retailers say that their low profit margin is due to pack juices, the same percent that is 13.3% say that it is due to carton sales while 73.3% of the retailers attribute this low sales to both pack and carton sales. Therefore from this table we can conclude that when there are sales in bulk, that is, in cartons it results in high profit margin.

Results The findings from the cross tab supports the hypothesis and we can say that as the sales of Del Monte Orange juice rises up, the resultant profit margin also goes up so we accept the hypothesis.

EFFECT OF PRICE CHANGE ON PROFIT MARGIN OF DEL MONTE ORANGE JUICE

To check whether changes in price of Del Monte orange juice has any impact on the profit margin due to sales of Del Monte orange pack, carton or both. In the questionnaire the questions were asked regarding the effect of change of price of Del Monte orange juice. By using the data obtained from questionnaire a cross tab was made to see the relationship between price change and resultant profit margin of Del Monte Orange juice. From the results of this questionnaire the following hypothesis was concluded:
Hypothesis 2:

A significant relationship exists between the price of the juice and the profit margin of Del Monte Orange Juice
Profit Margin Total Per Pack Affect of price changes on sales Yes of price changes on sales No Count 6 14 11 Count %within affect 1 28 3.6% 100.0% 19 67.9% 8 28.6% Per Carton Both

%within affect of price changes on sales Total of price changes on sales Count %within affect

31 19.4% 100.0% 7 59 11.9% 100.0% 55.9% 32.2% 45.2% 35.5%

33

19

Analysis From the above cross tab we can see that out of 28 distributors who were reached 3.6% said that the change in the price of Del Monte orange effected profit margin per pack, whereas a large chunk of 67.9% say that the effect of price has an impact on profit margin per carton and 28.6% said that the price change has an impact on the profit margin of both pack and carton. Therefore from this table we can clearly conclude that the more the price changes the more the profit margin varies at the level of carton sales.

Results The findings from the cross tab supports the hypothesis and we can say that as the price changes of Del Monte Orange juice the resultant profit margin also starts changing and so we accept the hypothesis.

LIMITATION

Some of the limitations that we faced during our project are as follows: Time constraint. Limited resources ( financial, manpower) The research could only be conducted in the city of Mumbai due to limited resources and manpower.

The sample size for retailers was very small.

RECOMMENDATION

Through the questionnaires we came to know Peoples recommendations and suggestions regarding Del Monte orange juice. The Company is diversifying its product range. Del Monte Juices added a new flavor to their product range. This diversification in product range has somewhat affected the sales of Del Monte Orange juice. A very important area for improvement is advertisement and promotional activities of Del Monte Orange Juice. During our analysis we found out that most of the respondents were unaware about the new campaign. There should be vigorous advertisement of the brand with telecasting quality TV commercials that should cater the target audience. Company should do celebrity endorsement, to promote the brand to increase consumption and hence sales. During our survey we found that most of the sales of 200 ml packaging of Del Monte Orange juice are in schools and colleges. People complained that Del Monte should increase the content of juice
1

from 200ml to 250 ml because most of the other brands are available in 250 ml packing therefore Del Monte should take into consideration about increasing the juice content from 200ml to 250ml. Del Monte should consider about decreasing the price of Del Monte Orange juice in order to increase sales.

CONCLUSION
After going through all the stages of marketing research process in order to know the reasons for declining sales of Del Monte Orange juice we found that most of the people were quite satisfied with the taste of Del Monte orange juice. They were still consuming Del Monte Orange juice despite the sour taste. To some extent the consumers were satisfied with the price of Del Monte orange juice because according to them they perceive Del Monte Juices to be quality and healthy juices. The analysis showed that people also have liking towards Del Monte Orange juice. From the results of the survey we can conclude that the problem of decline in sales was not mostly due to change in consumer perceptions

towards taste or other competing brands. It might be due to change in internal Company polices or strategies.

REFERENCES
http://www.fieldfreshfoods.in/index.html http://www.freshdelmonte.com/company-business-divisions-dis-centers-asia.aspx http://www.delmonte.com/

CONSUMER QUESTIONNAIRE
Gender: 1 Male 2 Female Age: 1 Less than 15 2 16-20 3 21-25 4 26-30 5 31-35 and above Residential Area: 1 MG Road 2 VLB Lane 3 Tilak Road 4 Others

Which income bracket do you fall in? 1 Less than 15000 2 16000-25000 3 26000-35000 4 36000 and above Do you drink juice? 1 Yes 2 No What is your preference? 1 Fresh 2 Packaged 3 Both Which brand do you prefer? 1 Tropicana 2 Del Monte 3 Real 4 Real Activ 5 Others Which flavors do you like the most? Apple Pineapple Orange Grapes Guava Mixed Others

Indicate your degree of liking 1 Apple 2 Pineapple 3 Orange 4 Grapes 5 Guava 6 Mixed 7 Other How many times in day do you consume Del Monte orange juice? 1One time 2 Two times 3 Three times 4 Often 5 Not applicable How important are the following factors in influencing your purchase of packaged juice? Very Importan Neutra Unimportan Very Importan t l t Unimportan t t Price

Packaging Quality Taste Sugar Content Appealing Advertisemen t How important are the following factors in influencing your purchase of Del Monte packaged juice? Very Importan Neutra Unimportan Very Importan t l t Unimportan t t Price Packaging Quality Taste Sugar Content Appealing Advertisemen t

How often do you drink Del Monte orange juice? 1Daily 2 Weekly 3 Occasionally 4 Not applicable Degree of liking orange 1Very Good 2 Good 3 Neutral 4 Bad 5 Very Bad

Have you seen the latest ad of Del Monte orange juice? 1Yes 2 No 3 Not Applicable If Del Monte orange juice is not available which other brand do you prefer? 1Appy 2 Tropicana 3 Real 4 Real active 5 Others What do you think about the taste of Del Monte orange juice? 1Very Good 2 Good 3 Neutral 4 Bad 5 Very Bad Have you seen the latest ad of Del Monte Orange Juice? 1Yes 2 No Degree of liking orange 1Very Good 2 Good 3 Neutral 4 Bad 5 Very Bad What do you think about the taste of Del Monte orange juice? 1Very Good 2 Good 3 Neutral 4 Bad 5 Very Bad

RETAILER QUESTIONNAIRE
Name Location How long have you been in the retail business? 1 One year 2 Two years 3 Three Years 4 Others Do you stock juice? 1 Yes 2 No Which brands of juices? 1 Appy 2 Del Monte 3 Tropicana 4 Real 5 Real Active 6 Others

Which flavors of juices? 1 Apple 2 Orange 3 Pineapple 4 Grapes 5 Mango Which is the most sold brands of orange juice? 1 Appy 2 Del Monte 3 Tropicana 4 Real 5 Real Active 6 Others Appealing advertisements 1 Yes 2 No Is there a sale of Del Monte orange juice? 1 Yes 2 No How are the sales of Del Monte? 1 Highest sales 2 Lowest sales Is the profit margin on sales of Del Monte Orange Juice made? 1 Per pack 200ml 2 Per Juice carton 3 Both Do you get regular supplier of Del Monte Orange juice? 1 Yes 2 No Does your outlet have a Del Monte Chiller? 1 Yes 2 No Quantity if you have Del Monte Chiller 1 One 2 Two 3 Three 4 Others Who are the main customers of Del Monte orange juice? 1 College students 2 House wives 3 Servants 4 Others Are consumers satisfied with the packaging of Del Monte orange juice? 1 Yes 2 No According to you currently, which brand is the major competitor of Del Monte orange juice?

1 Tropicana 2 Real 3 Appy 4 Others What do you think about the new advertising Strategy of Del Monte orange juice? 1 Like a Lot 2 Like 3 Dislike 4 Dislike a Lot Do price changes have any effect on the sales of Del Monte Orange juice? 1 Yes 2 No How has the change in price affected the sales of Del Monte Orange juice? 1 Increase 2 Decrease 3 Remained Same

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