Research into factors driving Milo consumption

LETTER OF TRANSMITTAL..................................................................................................................
LETTER OF ACKNOWLEDGEMENT...................................................................................................5
THIS RESEARCH STUDY IS THE OUTCOME OF THE ENDLESS HARD WORK AND THE
COOPERATION OF MANY OTHERS WITHOUT WHOSE SUPPORT AND ADVICE I COULD
NOT HAVE MANAGED IT.......................................................................................................................5
FIRSTLY, I WOULD LIKE TO THANK ALMIGHTY ALLAH, FOR GIVING US THE

PATIENCE AND STRENGTH TO WORK ON THIS RESEARCH STUDY.......................................5
I OFFER OUR HEARTIEST APPRECIATION AND DEEP GRATITUDE TO MR FIRDOUS

SHERI, OUR COURSE INSTRUCTOR OF RESEARCH METHODS, WHO HELPED ME
UNDERSTAND THIS SUBJECT AND GUIDED ME THROUGHOUT THE MAKING OF THIS
REPORT. I WOULD LIKE TO THANK HIM FOR HIS HELP AND GUIDANCE...........................5
I WOULD ALSO LIKE TO THANK DR. HAROON AHMED, DR. ZUBAIR AND DR. SAEED
AKHTAR WHO TOOK OUT TIME FROM THEIR BUSY SCHEDULE AND HELPED ME
CONDUCT IN DEPTH INTERVIEWS AND SHARED THEIR KNOWLEDGE ABOUT THIS
TOPIC. MADE THIS RESEARCH STUDY POSSIBLE AND WITHOUT WHOSE
COOPERATION IT WOULD HAVE BEEN IMPOSSIBLE TO PROCEED ANY FURTHER.........5
LASTLY, I WOULD THANK MY COLLEAGUES AND FRIENDS FOR HELPING ME OUT

WHERE AND WHEN I NEEDED THEM...............................................................................................5
I WOULD LIKE TO THANK ALL OUR RESPONDENTS WHO .......................................................5
SINCERELY,..............................................................................................................................................5
LETTER OF AUTHORIZATION.............................................................................................................6
Research Project Of Milo 1

INTRODUCTION.......................................................................................................................................7
THE NESTLE STORY...............................................................................................................................7
NESTLE TODAY........................................................................................................................................8
RESEARCH PROPOSAL..........................................................................................................................9
COMPANY OVERVIEW..........................................................................................................................................9
4.MISCELLANEOUS EXPENSE............................................................................................................11
SCENARIO ANALYSIS...........................................................................................................................11
PROBLEM IDENTIFICATION....................................................................................................................................11
RESEARCH OBJECTIVE.......................................................................................................................12
SCOPE OF THE RESEARCH.................................................................................................................14
RESEARCH METHODOLOGY.............................................................................................................15
SAMPLING ..............................................................................................................................................17
RESEARCH FINDINGS..........................................................................................................................20
AD PERCEPTION....................................................................................................................................26
ANALYSIS................................................................................................................................................26

LOGIC..............................................................................................................................................................27
DESIGN.............................................................................................................................................................27
SAMPLE SIZE.....................................................................................................................................................27
RESEARCH FINDINGS...........................................................................................................................................27
ANALYSIS.........................................................................................................................................................30
LOGIC..............................................................................................................................................................30
DESIGN ............................................................................................................................................................31
SAMPLE SIZE.....................................................................................................................................................31
THE SAMPLE SIZE FOR THIS QUESTION WAS 183 RESPONDENTS BECAUSE ALL THOSE RESPONDENTS WHO ARE USING MILO
PRESENTLY AND THE ONES WHO HAVE DISCONTINUED ITS USE DUE TO SOME REASON WERE ALL INCLUDED. BECAUSE THE MAIN
REASON WAS TO GAUGE WHAT IS IT THAT THE CONSUMERS DO NOT LIKE IN MILO SO THAT THE COMPANY CAN IMPROVE ON
THE QUALITY OF THE PRODUCT..............................................................................................................................31
RESEARCH FINDINGS...........................................................................................................................................31
GRAHICAL PRESENTATION ANALYSIS..........................................................................................37
CONCLUSION..........................................................................................................................................40
LETTER OF TRANSMITTAL
5, Jan 2009

Mr Firdous Sheri,
Faculty of Bahria University,
Karachi Capus.
Dear Sir,
As assigned by you, I have investigated on the topic regarding “The Increased
use of Sleeping Pills” in the context of Research Management and compiled the entire
research study in the form of a report.
I collected information for this report through articles on the internet and magazines,
personal interviews and surveys and whatever has been taught in class. Thank you for
assigning this job. I really enjoyed the opportunity to learn more about the course. If you
have any questions about the report, please contact me.
Sincerely,
Muahammad Omer Karim

LETTER OF ACKNOWLEDGEMENT
This research study is the outcome of the endless hard work and the cooperation of many others
without whose support and advice I could not have managed it.
Firstly, I would like to thank Almighty Allah, for giving us the patience and strength to work on
this research study.
I offer our heartiest appreciation and deep gratitude to Mr Firdous Sheri, our course instructor of
Research Methods, who helped me understand this subject and guided me throughout the making
of this report. I would like to thank him for his help and guidance.
I would also like to thank Dr. Haroon Ahmed, Dr. Zubair and Dr. Saeed Akhtar who took out
time from their busy schedule and helped me conduct in depth interviews and shared their
knowledge about this topic. Made this research study possible and without whose cooperation it
would have been impossible to proceed any further.
Lastly, I would thank my colleagues and friends for helping me out where and when I needed
them.
I would like to thank all our respondents who
Sincerely,
Muhammad Omer Karim

LETTER OF AUTHORIZATION
5, Jan 2009
Dear Readers,
This report is based on the issue “Increased use of Sleeping Pills”, which was authorized to us by
our teacher Mr. Fidous Sheri.
Sincerely,
Muhammad Omer Karim

INTRODUCTION
The Nestle Story
Nestle S.A. The present Switzerland based international food group, originally consisted of
two companies and two products: Henri Nestle and his baby food in Vevey, and the Anglo-Swiss
Condensed Milk Company and its condensed Milk Company and its condensed milk in Cham,
both in Switzerland.
In 1886 the Page Brothers from the United States set up a new industry in Cham, making
condensed milk from a raw material that was available in abundance in the region. In 1867 Henri
Nestle, a chemist in Vevey, created a milk and cereal based food which promptly saved the life of
a baby which its mother could not feed. The companies competed vigorously until 1905, when
they merged and became the starting point of the present food group.
Nestle Which does 98% of its business outside Switzerland, also has interests in non-food
sectors, in cosmetics (a large share holding in L’Oreal) and ophthalmic products (acquistion of
Alcon laboratories Inc.) while continuing to give priority to food products.
Nestle Pakistan
Nestle SA of Switzerland came to Pakistan in 1988 by way of a joint venture between
Nestle and Milkpak. This joint venture had an ambitious portfolio of expansion plans. The first
product line installed after the merger was that of Cerelac and then in 1991 came Nastum and
Lactogen. Everyday tea whitener was launched in 1992. Mil and Neslac came under production in
1994 whereas Milo RTD (Ready to Drink) in 1995.

Nestle Today
Nestle in now the world’s largest food company. It is present on all five continents, has an
annual turnover of 60 billion Swiss francs, runs 495 factories in 75 countries, 200 operating
companies, 1 basic research center and 20 technological development groups and more than
220,000 employees the world over. The Company owes its current status to the pioneering spirit
inherited from its founders which continues to inspire it, to its concern with quality and to its
constant search for new ways of satisfying man’s nutritional needs. Wherever possible, it sets up
factories locally, employs personnel from the country concerned and relies on indigenous raw
materials.

RESEARCH PROPOSAL
Company Overview
Nestle SA of Switzerland came to Pakistan in 1988 by way of a joint venture
between Nestle and Milkpak. This joint venture had an ambitious portfolio of expansion
plans. The first product line installed after the merger was that of Cerelac and then in 1991
came Nestum and Lactogen. Everyday tea whitener was launched in 1992. Milo and
Neslac came under production in 1994 whereas Milo RTD (Ready To Drink) in 1995.
Problem
Nestle Milkpak Ltd. currently is facing a tremendous problem in its product “MILO” of
low market share particularly in middle and lower income groups. The research problem is to
determine the extent, consumers can differentiate between energy food drinks and the chocolate
milk drinks and to determine the awareness level of Milo as compared to the competitors
products.
Research Objective
The basic objective of this research is to determine the consumers in the middle and lower
income group who can distinguish between chocolate milk drink and energy food drink, product
awareness, acceptability and perception. In the middle and lower income groups this would help
the management in finding out the reason behind their low market share and also to shape and
target the marketing strategies according to the product’s perceptions with in the specific classes.

Information needed
The management requires the following information from which they will be able to determine
the clues, which are causing adverse effect on its market share:
1. What is the difference between energy food drink and chocolate milk drink?
2. To what extent other brands are purchased as compared to Milo?
3. What is the ad recall rate of Milo?
4. What is the usage frequency?
5. What is the contribution of different attributes of Milo in the product desirability?
6. What is the percentage of consumers who are aware of Milo?
7. What is the importance of price, packaging, color, taste, brand name and nutritional value in
the decision making process?
Costing
The major cost, which we expect in this project, would be:
1. Transportation
2. Photocopy
3. Report compilation

4. Miscellaneous expense
SCENARIO ANALYSIS
Problem Identification
The problem faced by Nestle Milkpak Limited energy food drink Milo has been defined by
two angles, Management’s a well as Researchers.
I. Management’s Problem
The problem being faced by the management of Nestle Milkpak Limited, currently is that of
a low market share of its product Milo, basically in the middle and lower income groups.
The management hopes to increase its market share particularly in the middle and lower
income groups by gauging the awareness levels, product’s perceptions and acceptability
levels.
II. Research Problem
The Research problem given to the “Research Consultants” is to determine the extent to
which the consumers can differentiate between “Energy Food Drinks” and “Chocolate Milk
Drinks” and to determine the awareness levels of Milo as compared to the products of the
competitors.

RESEARCH OBJECTIVE
The research objective of “Milo”, a product of Nestle’ Milkpak Limited is to determine the
following:
 The consumers in the middle and lower income groups who can differentiate between
chocolate milk drink and energy food drink
 Product awareness of Milo
 Product acceptability of Milo
 Perception of Milo in the minds of the consumers.
In the middle and lower income groups, this would help the management in finding out the
main reason behind their low market share and also to shape and target the marketing strategies
according to the product’s perceptions within the specific classes.
Information Needed
The information sought for this reason basically covered the following
 Difference between Energy food drink and Chocolate milk drink.
 Extent to which other brands are purchased as compared to Milo.
 Product awareness of Milo in percentages.
 Usage frequency of Milo.

 Importance of price, package, color, taste and nutritional value in the decision making
process.
 Milo’s acceptability in Ready to drink forms.
 What is the contribution of different attributes of Milo in the product desirability?

SCOPE OF THE RESEARCH
The scope of this research is to present the findings of a consumer survey of Milo which is a
product of Nestle Milk Pack Limited. The management problem is low market share of Milo in
middle and lower income areas. The basic objective of this survey was to find out the awareness
rate, the consumer perception and the acceptability rate of Milo as an energy food drink, specially
in middle and lower income.. The following points are the major scope of this research.
• This research is vital for the marketing department of Nestle Milkpack Limited; it gives an
overview of consumer’s perception on different aspects of Milo performance.
• The research also reveals some important marketing implications of different attributes, which
is currently offered by various competitors of energy food drink and chocolate food drink.
• Managers can identify the most important attribute, which the consumers perceive while
considering energy food drink or/and chocolate milk drink.
• The study also reveals some important implications of different attributes for rightly targeting
the product. As the research indicates the consumer perception towards the difference between
energy food drink and chocolate milk drink in terms of various attributes which are offered
within the product.
• This research will help in identifying the key reasons for disliking of Milo within the target
income group, and on the basis of these finding, the marketing department would be able to
formulate the appropriate marketing mix for this product.

RESEARCH METHODOLOGY
Data Collection Method
The data collection method used to carry out this research was that of personal house to house
survey via a Questionnaire. This method was taken primarily due to its cost and time
effectiveness which resulted in a very low non-response rate. The major scope being
 Ease of questionnaire administration that would not have been possible with mail
interviews etc.
 Relatively less time consuming to fill and respond
 Researchers could easily observe the respondents reactions and attitudes while
filling the questionnaires
 Easy compilations and tabulations
 Easy to infer and deduce
Measurement Techniques Used
The measurement instrument used to carry out this research was a questionnaire
containing closed ended, structured and unstructured questions. This method was chosen
primarily due to ease in handling and recording information, ease in deducing and inferring and
for compilation purposes. The questionnaire was in Urdu as well as in English. This reduced the
non response rate and the respondents easily verbalized and comprehended the answers.

Pretesting Phase
The pretesting phase of Milo was satisfactorily conducted for a sample size of 50
respondents for each of the response areas in the upper, middle and lower classes of
Clifton / Defence and Nazimabad.
We received favorable results about Milo from all income levels and on the basis of which
we researched on the main population targeted at 50 people.
Survey Technique
The survey technique used to administer the questionnaire was house to house individual
surveys of all respondents above the age of 12 years. There were quite a few options available to
us as far as the survey technique administration was concerned such as Focus group technique,
personal interviews, telephone interviews, intercepting respondents in the prime areas such as
shopping centers, small road side hotels etc. But all these techniques had their limitations the
major one being costly and time consuming. Though children of 12 years and under take Milo but
the questions asked in the questionnaire were of the advanced nature, which would have been
difficult for the young respondents to answer, for this reason and to avoid complications of
systematic error to occur, I have excluded children below the age of 12 years in our sample size.

SAMPLING
Sampling Process
The sample size chosen was that of 50 respondents, comprising mainly of individuals
above the age of 12 years, particularly from the lower and middle-income areas, using Milo
consistently for a period of past three months. Responses were also measured from the upper
income group so as to justify and compare the research findings. The instrument taken for
sampling process is the questionnaire administered via house to house survey.
Population Parameters
The population is defined in terms of four important characteristics of element, unit, extent and
time. Our research objective is to find the causes behind the low market share of “Milo” in the
middle and lower income groups.
Elements: The usage of “Milo” by all persons over and above the age of 12 years.
Units: Individuals residing particularly in the middle and lower income groups.
Extent: The extent was taken as five major areas in the region of Karachi.
Sampling Unit
The sampling unit comprises of all individuals who have used chocolate milk drinks and
energy food drinks over and above the age of 12 years. Though Milo is taken by children of 12
years of age and below but some questions in the questionnaire were of advanced nature which
would have been difficult for the young respondents to answer.

Sampling Method
The sampling method used was that of non-probability sampling based on our judgement and
intuition.
Sample Size:
The size of our sample for conducting this research is kept at 50 respondents. This sample size
was taken keeping in view the time and cost considerations.
 The first stage involved stratifying population into two major groups of localities and
population divisions.
 The second stage involves sampling respondents on a random basis.
The two major groups of areas and population divisions are classified below:
DIVISION OF AREAS
Clifton/ Defence 20
Nazimabad 30
Sampling Plan:
The research was conducted through an operational plan by distribution of Questionnaires
according to the major classes identified in the five major areas of Karachi which are as follows:
Clifton/Defence Upper Income Class

Nazimabad Middle Income Class
Research Limitations

1. The limited experience of the researchers.
2. The time and financial constraints.
3. Milo, a product of Nestle’ Milkpak Limited is being used country wide, whereas, the
research findings are limited to the region of Karachi only. Thus the findings cannot be
generalized to any other city.
4. The ages of the majority of the respondents are specifically above 12 years. Thus only a
small segment of the entire population has been targeted, whereas, Milo is used by people
of all ages especially children love its flavor.
5. The major reason behind non-inclusion of children below the ages of 12 years was the fact
that mostly the purchases are done by their parents, which means that they are consumers
and not customers. Another reason being that some questions designed in the
questionnaire were too complicated for the children to answer therefore, they were
excluded from our research.
6. We faced tremendous difficulty in getting the desired responses from the lower income
groups because most of them were unaware of the product Milo.

RESEARCH FINDINGS
The detailed research findings are presented in the order of the questionnaire. Tables
summarizing the data obtained accompany all the finds. Each analysis is supported by
GRAPHICAL PRESENTATION, which illustrates the information obtained. The sequence of the
research finding is as follow:
1. Age Profile
2. Income Profile
3. Usage of chocolate food drink
4. Perception about different product.
5. Product purchased
6. Attributes considered for purchase decision
7. Awareness level of Milo
8. Sources of information.
9. Milo Usage frequency.
10. Disliking in Milo
11. Purchase season.
12. Milo’s price.
13. Attribute Ranking.
14. Milo’s preference in ready to drink tetra packs.

Age Profile
Age Respondents
12-15 Yrs 9
16-20 Yrs 21
21-25 Yrs 18
Above 25 Yrs. 2
TOTAL 50
Income Profile
Income Respondents
< Rs. 5000 8
Between Rs. 6000 – 10000 11
Between Rs. 11000 – 20000 22
> Rs. 20000 9
TOTAL 50
Perceived difference between energy food drink and chocolate milk drink
AREAS Color Nutritional Smell Taste Others No TOTAL
Value Response
Clifton 4 10 1 1 1 3 20
Nazimabad 4 4 5 9 4 4 30

TOTAL 8 14 6 10 5 7 50
Analysis
Logic
The purpose of this question was to find out on what specific attributes the consumer categorizes
energy food drink and chocolate milk drinks into different products.
Design
The design of this question was close ended and multiple choice.
Sample Size: n = 50
Research Findings
The results show that the most important attribute on the basis of which consumers have
differentiated between energy and chocolate milk drinks is “nutritional value” which is 33%. The
next important attribute was “taste”, 16.5% followed by “color” with 13% and smell, 6.5%.

Perception on different brands.
Bonvita : 31.5% perceived it to be both while 25.3% have never heard of the product.
Complan: 47.5% of the respondents perceived to be an energy food drink while 38.3%
perceived it to be both.
Energile: 94.4% perceived to be an energy food drink.
Glaxose-D: 95.1% perceived it to be energy food drink.
Horlicks: 38.3% perceived it to be an energy food drink, while 25.9% perceived to be both.
Ovaltine: 37.7% perceived it to be a chocolate milk drink, while 27.2% perceived to be both.
Tang: 71.6% perceived to be energy food drink while 9.3% have never heard of the
product.
Milo: 33.3% perceived it to be both, while 30.9% and 30.2% perceived to be chocolate milk
and energy food drink respectively.
Yazoo: 54.3% have never heard of the product while 20.4% perceived it to be a chocolate
milk drink
Countre
Milk: 58.6% have never heard of it while 19.1% perceived it as a chocolate milk drink.
Cadbury’s Choc Milk: 41.4% have never heard of the product while 37% perceived it to be a
chocolate milk drink.

Milo
Analysis of Milo according to areas:
Clifton/Defence: Out of a sample of 20, approximately 47.5% of the respondents perceive Milo
to be both a chocolate milk and energy food drink and 40% of the respondent
perceive it to be chocolate milk drink only
Nazimabad: Out of a sample of 30, 56.5% perceive Milo to be both chocolate and energy
drinks, 34.8% perceive it to be a chocolate milk drink only and 4.3% perceive
it to be an energy food drink only.
Analysis
Logic
The main purpose of this question was to find out the market share of other competitive products
being purchased by the respondents as compared to Milo. Since our Research objective being
low market share of Milo in the lower and middle classes.
Design
It is a closed ended, multiple choice question, and the respondents can tick more than one brand
because many respondents usually purchase more than one brand
Sample Size: n = 50
The sample size for this question is n = 50, because all the respondents are included in this
question. The main reason behind this is that it is related to question number 1 and 2 of this

questionnaire and all those respondents who have either used or not used energy food drinks and
chocolate milk drinks are included.
Research Findings
The purchase is highest for Milo that is 74% of the respondents have purchased at one
point of time. 62.5% for Glaxo-D and 62% for Ovaltine
Awareness Level of Milo
AREAS Yes No
Clifton /Defence 20 0
Nazimabad 21 9
TOTAL 41 9
Analysis
Logic
The purpose of this question is to simply check the awareness level of Milo among the population
sample.
Design
A close ended one choice question.
Sample Size
For this question also the sample size is n =50.The whole population is taken to check the
awareness level of Milo.
Research Finding
The results shows that awareness level of Milo is very high about 91.5% people are aware of the
brand Milo.

Ad Perception
Analysis
Logic
This question was compiled to determine the major sources of information, which influence the
buying behavior of the consumer and effect the perception of milo.
Design
A multiple choice, closed ended question. Respondents could tick more than one choice.
Sample Size: n = 50
This question will be attempted by that respondent who are aware of Milo.
Research Findings
According to the results, which showed, that 57.9% had TV for their source of information and
34.4% had printed ads.
Media Ad Response
AREAS Haven't Watched Ad GEO PTV Satellite

Clifton/Defence 2 9 1 8
Nazimabad 8 10 6 6
Total 10 19 7 14
Analysis

Logic
This question was asked to gauge the viewers’ response towards watching Milo’s ad on
television. The idea was to know that which channel shows most Milo’s ads and is equally liked
by the respondents to watch the ad on.
Design
This question is designed on a dichotomous scale and has further been extended that if the answer
is “Yes” than the respondent has to specify the channel he watched the ad on, so that we can
conclude about the channel which shows Milo’s ad most frequently and whether people watch it
or not. Because if not than we will have to alter the advertisement policy of showing the ad on
different channels so as to build more awareness about the product.
Sample Size
The sample size for this question has been reduced to 50 respondents because of the fact that it is
on a dichotomous scale and if the respondent has watched Milo’s ad on television only than can
he proceed to identify the channel and if the answer is in the negative than he is asked to proceed
to Qs number 14 of this questionnaire. So in a way this question is further linked to Qs no. 14.
Research Findings
The research findings suggest that the channel on which the people have most seen Milo’s
ads is NTM at 53.55%. Next in line is PTV and lastly Satellite channels, whereas, 15.30% people
have not seen the ad anywhere. The respondent of the area, which has seen milo’s ad on a specific
channel, is highest in Saddar for all the three channels. The graph depicts the overall picture of

each channel bifurcated into areas. It can be seen that people who have not seen Milo’s ad are the
highest in Nazimabad. People who watched the ad on NTM are the highest in the areas of
Clifton/Defence
Usage of Milo
AREAS YES NO
Clifton/Defence 17 3
Nazimabad 25 5
TOTAL 42 8
Analysis

Logic:
The logic behind asking this question was to know the exact number of people who are using
Milo presently or have used Milo previously at any point in time.
Design:
This question was designed on a Nominal dichotomous scale.
Sample Size: The sample size for this question is 50 respondents. The reason being that it is
linked to above question. That is if the answer to question is No than they were asked to proceed
to the next question. Therefore, all the respondents who had affirmed negatively were also
included in this question.
Research Findings:
Research findings of this question suggest that majority of the respondents from upper
income group and middle income group had been using Milo consistently specially in the areas of
Clifton/Defence
Disliking Attributes in Milo
DISLIKING Clifton/ Nazimabad Total
ATTRIBUTES Defence
Color Scheme 7 12 19
Extra Sweet 6 10 16
Allergy towards 5 4 9

Chocolates
Others 2 4 6
No Response 0 0 0
Total 20 30 50
M ILO DISLIKING FREQUENCY
Colour
70 Scheme
60 Extra Sweet
RESPONSES
50
40 Allergy towards
Chocolates
30
Others
20
10 No Response
0
1
Analysis
Logic
The logic behind asking this question was to gauge the disliking attributes of Milo as considered
by the respondents.

Design
The question was designed on a nominal, close-ended scale. As the respondents were only asked
to mark those attributes of Milo which they highly disregard.
Sample Size
The sample size for this question was 183 respondents because all those respondents who are
using Milo presently and the ones who have discontinued its use due to some reason were all
included. Because the main reason was to gauge what is it that the consumers do not like in Milo
so that the company can improve on the quality of the product.
Research Findings
The research findings from this question suggest that majorities of the respondents do not like the
color scheme of the package and most respondents find Milo to be excessively sweeter.
Usage Frequency of Milo
AREA Daily Monthly Weekly Yearly Total

Clifton/Defence 12 1 9 0 20
Nazimabad 6 8 8 8 30
TOTAL 18 9 17 8 50
Analysis
Logic
This question is included to get the information about the usage frequency of Milo, so that to get
an idea what can be the expected amount of Milo Purchase per period.

Design
This is a close-ended multiple choice question. The respondent had to tick only one time period,
which corresponded to the frequency of use.
Sample Size: n = 50
This comprises of the number of respondents using, or have heard Milo, that is the respondent,
which responded affirmatively in question no. 9
Research Findings
The result of this question indicates that the frequency of use is mostly monthly i.e. 31.69%, then
yearly 28.96%, daily 22.40% and weekly 16.94%. Thus it is observed that people using Milo
monthly are in majority. While analysing the individual areas frequency it was observed that, the
respondent who reside in Saddar area drink milo once in day, while respondents in Clifton area
drink Milo 3-4 time a week. Mehmoodabad respondents consume Milo 1-2 time monthly and 3-4
times yearly.
Purchase Season
AREAS Summer Ramzan Regularly Winter Total

Clifton 0 4 7 9 20
TOTAL 3 7 12 28 50
Analysis
Logic

This question is included in the survey to get an idea of the buying pattern of the consumers and
also to find out in which seasons it is purchased by consumers most.
Design
The technique used is aided recall; close-ended question and the respondent could tick only one
choice.
Sample Size: n = 50
Those respondents who are aware of milo and answer the above question positive were eligible to
attempt this question.
Research Findings:
The result shows that consumers of milo have no fixed pattern of buying, 20.77% of the
consumers are using it regularly while 14.21% and 10.38% consumers prefer it in Summer and
Ramzan respectively. A very few percentages of consumer prefer it to purchase during winter
season (7.65%). While viewing the individual areas it is also observed by viewing the tabular
presentation the every area have also got no fixed pattern for the purchase of milo. This question
shows that there is an such no trend of preference of milo as a hot or a cold drink and consumers
can buy it in any season.
Size and Package Preferences
Area Tin Pack Tetra Pack Sachet Pb 100 g Pb 200 g No Response Total
Clifton/Defence 11 13 7 7 6 1 20
Nazimabad 6 5 3 10 5 1 30
TOTAL 17 18 10 17 11 2 50

Analysis
Logic
This question is included in the survey to find out the consumer preference in the specific pack
size and the type of packaging that is whether tin, tetra, poly bag or sachet pack is preferred.
Design
The design of this question was close ended. In this recall technique was used.
Sample Size :
n = 50
Those respondents who are aware of milo and answer question no. 9 positive were eligible to
Research Findings
The result shows that majority of 23.50% consumer prefer PB 100g pack size. There is a slight
variation between Tetra pack and Tin pack i.e. 22.95% and 21.86% respectively. While
considering the Middle and Lower income group, majority of the consumer give preference to
Tetra, Tin, PB 100g and Sachet Pack.
Milo’s Price
AREA Expensive Cheap Indifferent No Response TOTAL

Clifton/Defence 0 20 0 0 20
Analysis

Logic
The purpose of this question was to determine the importance of price in the decision making
process. As major part of this report covers middle and lower income group. Price can be very
important criteria for differentiating brand from each other. Through this question we want to find
out the perception of Milo’s consumers about its price.
Design
A multiple choice was give in a closed ended question. Respondents could tick only one choice.
Sample Size: n = 183
Those respondent who are aware of milo and answer question no. 9 positive were eligible to
Research Finding
The result shows that majority of consumer thinks that milo is very cheap i.e. 78.25%
respondents. While analyzing the Middle and Lower income group we found that respondents in
Middle income group perceive as a cheap product, while respondents in Lower income group
perceive as an cheap product as well.
Attribute Ranking
TASTE
Area Excellent Good Average Poor No Response TOTAL
Clifton/Defence 3 13 4 0 0 20
Nazimabad 2 11 6 2 9 30
FLAVOR
Nazimabad 2 11 7 1 9 30

NUTRITIONAL VALUE
Area Excellent Good Average Poor No Response Total
Nazimabad 2 10 6 3 9 30
COLOR
Nazimabad 2 5 8 6 9 30
SMELL
Areas Excellent Good Average Poor No Response Total
Nazimabad 2 10 7 2 9 30

GRAHICAL PRESENTATION ANALYSIS
M IL O 'S A T T R IB U T E S
90
80
70 E xce lle nt
60
RESPONDENTS
50 Good
40
30 A ve ra g e
20
10 P oor
0
Ta s te F la vo r N utritio na l C o lo r S m e ll
V a lue
A T T R IB U T E S
Logic
The reason to include this question was to determine the various preferences in the attributes of
Milo. Which attribute is liked most and which particular attribute needs improvement and is
disliked by consumers.
Design
Multiple choice, rank in four categories of excellent, good, average and poor. Respondents were
required to rank only one category for each attribute.

Sample Size: n = 50
Those respondent who are aware of milo and answered question no. 9 in positive, were eligible to
Research Findings
From the results we can conclude the majority ranked the taste, flavor, nutritional value, color and
smell attribute of Milo as good. The attribute analysis of the individual areas is shown in the
following tabular form. The respondents in these areas differ significantly in their ranking.
Milo’s Preference in
Ready To Drink Tetra Packs
AREAS Yes No TOTAL

Clifton/Defence 9 11 20
Nazimabad 24 6 30
TOTAL 30 20 50
Analysis
Logic
This question was included to find out the percentage of respondents who would prefer Milo in
ready to use tetra forms. The trend of this question will help the management decide whether it
will be beneficial to launch ready to drink forms in Karachi or not.
Design
A closed ended, dichotomous question.

Sample Size: n = 50
Those respondent who are aware of Milo and answer question no. 9 positive, were eligible to
Research Findings
The results shows that almost 69.40% of the respondents prefer milo in ready to drink Tetra form,
while 30.60% of the respondents will not prefer in this form.

CONCLUSION
* The people from the lower income groups considered water based products as more
energetic mainly because of the core beliefs.
* The people especially in the lower income groups lacked the means and resources to
obtain Milo.
* People from the lower income groups considered Milo’s price to be very expensive.

Research into factors driving Milo consumption

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Research into factors driving Milo consumption

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LETTER OF TRANSMITTAL..................................................................................................................

FIRSTLY, I WOULD LIKE TO THANK ALMIGHTY ALLAH, FOR GIVING US THE

I OFFER OUR HEARTIEST APPRECIATION AND DEEP GRATITUDE TO MR FIRDOUS

LASTLY, I WOULD THANK MY COLLEAGUES AND FRIENDS FOR HELPING ME OUT

I WOULD LIKE TO THANK ALL OUR RESPONDENTS WHO .......................................................5

Research Project Of Milo 1

THE NESTLE STORY...............................................................................................................................7

SCOPE OF THE RESEARCH.................................................................................................................14

Research Project Of Milo 2

GRAHICAL PRESENTATION ANALYSIS..........................................................................................37

Research Project Of Milo 3

Research Project Of Milo 4

Muhammad Omer Karim

Research Project Of Milo 5

Research Project Of Milo 6

Alcon laboratories Inc.) while continuing to give priority to food products.

Nestle SA of Switzerland came to Pakistan in 1988 by way of a joint venture between

1994 whereas Milo RTD (Ready to Drink) in 1995.

Research Project Of Milo 7

Research Project Of Milo 8

Nestle SA of Switzerland came to Pakistan in 1988 by way of a joint venture

Research Project Of Milo 9

2. To what extent other brands are purchased as compared to Milo?

3. What is the ad recall rate of Milo?

4. What is the usage frequency?

5. What is the contribution of different attributes of Milo in the product desirability?

6. What is the percentage of consumers who are aware of Milo?

the decision making process?

The major cost, which we expect in this project, would be:

Research Project Of Milo 10

two angles, Management’s a well as Researchers.

II. Research Problem

Research Project Of Milo 11

chocolate milk drink and energy food drink

 Product awareness of Milo

 Product acceptability of Milo

 Perception of Milo in the minds of the consumers.

according to the product’s perceptions within the specific classes.

 Difference between Energy food drink and Chocolate milk drink.

 Extent to which other brands are purchased as compared to Milo.

 Product awareness of Milo in percentages.

 Usage frequency of Milo.

Research Project Of Milo 12

 Milo’s acceptability in Ready to drink forms.

 What is the contribution of different attributes of Milo in the product desirability?

Research Project Of Milo 13

overview of consumer’s perception on different aspects of Milo performance.

considering energy food drink or/and chocolate milk drink.

within the product.

formulate the appropriate marketing mix for this product.

Research Project Of Milo 14

Data Collection Method

 Relatively less time consuming to fill and respond

filling the questionnaires

 Easy compilations and tabulations

 Easy to infer and deduce

Measurement Techniques Used

Research Project Of Milo 15

Clifton / Defence and Nazimabad.

we researched on the main population targeted at 50 people.

Research Project Of Milo 16

sampling process is the questionnaire administered via house to house survey.