Products Analysis of Nectar Fruit Juices - Essay Example

?NFJ Report: Analysis and Recommendations Introduction: The main objective of this report is to establish analysis as well as recommendations for the NFJ officials based on the survey organized by the researcher. The collection of the data will now be analyzed in detailed manner. The researcher has used the quantitative method for data collection, in which getting the questionnaires filled by the students in the super markets was the basic technique to collect data. The sample space for the questionnaire was 209, i.e. the number of students who took part in filling the questionnaires. During the analyses of different elements and factors, there have been several recommendations made which can be beneficial for the officials of NFJ to discuss, follow, and execute them in their December 2011 meeting. One of the main recommendations made in the light of analysis is the introduction of more flavors of nectar fruit juices that intrigue more of the children under 15 years of age, as the analysis has shown majority of the NFJ users to be under 15 years of age. The report will be consisting of 5 sections in total (including the section 1 of introduction). Second section will be presenting analyses of the data collected through the collection of answers of the questions, where the questions will be discussed and analyzed one by one. Third section will be presenting different options that may be considered by the management for key decision making purposes. The fourth section will be presenting the validity of this analysis and describing the use of this report for future references. The final section will conclude the report and will provide general recommendations. 2. Results and analysis This section will present the findings and analysis based upon the answers taken from all the surveyed students. The section will analyze the questions one by one in the form of subsections, where the results will also be mentioned. 2.1. Racial or ethnic group: The students who were chosen to take part in the questionnaire were of different ethnicities as they mentioned in their survey forms. The final data collected from that scheme has been provided in the form of a pie chart below in figure 1: Figure 1: students’ ethnic groups The figure shows that more than half the students were white or European, as the survey was being filled in a European country. Therefore it was highly likely that majority of the participants will belong to the white community. The second major number participants were the Asians. This is because of the immigration of more than 100 million Asians who are residing in different countries of Europe and its normal perception of Asian people to take part in the social activities in Europe. Other people belonged to West Indian, African, or other ethnicities. 2.2. Ratio of male to female participants: As the graph in figure 2 suggests, the ratio of male to female participants who filled the surveys was nearly 55:45, which means almost an equal number of males and females invited to participate and give their views about NFJ. Figure 2: Male to female ratio of participants. 2.3. Drinks per week by the groups: The data shows different age limits and their consumption of drinks on weekly basis. The data shows the average number of drinks that are consumed by the people of different ages. Referring to the figure 3 given below, the people between 6 to 10 years of age consume the largest number of nectar fruit juices, as this suggests that the children are more intrigued by the tastes and flavors in which these juices are available in the market. Figure 3: Percentage of drinks per week groups The figure also shows that the children of 1 to 5 years of age, as well as the teenage from 11 to 20 years of age also consume NFJ more on weekly basis compared to those who are more than 21 years of age. Another important finding in this graph is that around 13% of the people have claimed to never use the nectar fruit juices. There are two points that this analysis will lead the managers to think about. First one is that the children of less than 20 years of age have total 77% of the weekly consumption of these fruit juices, so the managers should think of securing this market of children by introducing new policies that may lead more children of less than 20 years of age to consume NFJs. Also the managers must think of those people also who have never used these juices. The reason would probably be the lack of flavors or the ones introduced up till now are not liked by them, nor might they like the juices of fruits freshly made. So the managers must introduce new flavors that might catch the attention of those people as well. 2.4. Percentage of income groups: One of the questions asked to the participants was about their income and salaries that they earn on annual scale. The options had different salary ranges. The figure 4 given below will highlight them: Figure 4: percentage of income groups The figure shows the participants of salary range of ?25500-?35499 were more in number, i.e. 28.28%, and also those with ?45500-?55499 were also about 26%. So, more than 60% people were having salaries that highlight the fact that they are quite well off and can afford to drink an NFJ on daily basis. On the other hand, the managers should think about those who have lesser annual incomes than ?25500, to introduce new products in the market that must be sold at cheaper prices than the regular ones and must grab the most of the market share through that. 2.5. Income by ethnicity: The findings show as given in the graph 5 below that there are only white people in UK or among the participants who have incomes of more than ?35500 where as all the other ethnic communities have annual income less than that. The managers must make sure about that as the ethnic communities which have crowded UK with the population must not be left out, especially the Asians and Africans, as they have been said to be very fond of fresh juices, but the price constraints might not let them enjoy the flavors of these juices. Figure 5: Income by ethnicity Additionally, as it has been mentioned that Africans have been very fond of fruit juices. So, the NFJ management should make policies for those Africans who have annual incomes of less than 5499 pounds, so as to get the African people more into consuming the nectar fruit juices. 2.6. ‘Food Miles’ results: One of the basic questions added to the questionnaire was about the importance of the traveling distance that a household needs to meet for purchasing the NFJ. The figure 6 shows the trends: Figure 6: Food Miles data According to graph, majority of the people left it undecided as they did not give importance to even this question. The ‘undecided’ response was 59.09% where as 16.67% people disagreed with it, considering that it was not important for them in terms of traveling some distance when it comes to purchase NFJ from the store. Similarly, 21.21% people agree with the importance of food miles, and the main reason probably be the long distance of the store from their homes. This might be the reason that they have considered the agreement with the importance of food miles as a big issue in terms of distance and time shortage. The management must have the solution for this as they must be having a free delivery system in which more than a certain number of packs, if ordered, must be delivered to the residencies. This will definitely increase the chances of NFJ to have increased sales. 2.7. Health recommendations question: Another main question was asked to participants about them being recommended by the doctors not to use NFJ due to health concerns. In response, 47.7% people highly disagreed with the statement, whereas 35.35% people disagreed with it. This showed a larger amount of participants not considering NFJ to be a health concern. And the reason might be their understanding of the ingredients involved in the juice, in which the most energetic part is of the nectars of fruits. The figure 7 below will show the responses. Figure 7: Health concerns’ responses 2.8. Taste: About the taste, 39.09% people disagreed with that. As they might not buy these drinks for just the taste rather for the enjoyment they will have while drinking and sitting with their friends or families. As the graph below shows, 23.74% people are unsure about the taste and enjoyment factor, as they might like both equally or unlike equally. Figure 2.8: Taste The figure also shows 10.10% people to strongly disagree, which might be the reason of the sour taste of the pure nectar. So the manufacturers must thinking of making a new formula that might make the taste a little sweet. 2.9. The price significance: Out of the 200 participants, about 50% of the participants believe that price is a significant factor in terms of lesser sales of the juices due to their more prices. They agree with this statement, which might be an important point to ponder over by the management officials. One thing they might do will be the shortening of the size of the bottle and also reducing the price, so it could meet the needs of those in lesser price for whom the price is the main concern, which has been demonstrated as in the figure below: Figure 9: The price significance On the other hand, about 31% people have left the answer as undecided as they have felt on both ways, i.e. agreed as well as disagreed and hence according to them, price might sometimes be a significant issues, but sometimes it is not a big deal, and they can easily buy the NFJ. 2.10. Miscellaneous The analysis of all the other factors involved in the questionnaire will be done in this subsection. On the question of the participants’ liking towards organic taste, 67.8% people were undecided, which might mean that they are not concerned about the organic quality of the juice and all they want is a sweet taste of juice than will relish their thirst. The figure 11 shows these statistics: Figure 11 On the question of different age groups in terms of their consumption of NFJ per week, we see the children of 15 years to be drinking about 32-33 NFJ drinks in a week. This shows that the children of less than 20 years are very fond of these drinks. As these statistics have been given in figure 12 below: Figure 12 The figure shows the people of 60 plus years of age do not use NFJ probably due to health concerns. As the graph suggests, the trend is increasing to decreasing from younger to elder, which means that the people of smaller age have maximum consumption of NFJ whereas the people of more age have lesser or no consumption. Also, the relationship between the income of an individual as well as the drinks he or she drinks per week also shows important results. As the graph shows in the top right an individual, who has the income of 6000 pounds and who has the maximum consumption of the NFJ, i.e. 34 juices in a week. Apart from that exception, the people from 2000 to 4000 pound annual salary also enjoy maximum consumption of the NFJ on weekly basis. The figure 13 will show this trend as below: Figure 13 The table 1 below will show the statistics of the 7th question raised in the questionnaire about the different tastes and flavors, as well as the preferences of people of different tastes. The table has provided the statistical calculations which can be used by the managers as well as by the researchers’ future references. The table is below: Table 1 - Statistics Citrus Apple Berries Exotic Spicy Sports other N Valid 198 198 198 198 198 198 198 Missing 0 0 0 0 0 0 0 Mean 2.35 3.45 2.47 3.32 3.12 1.08 2.48 Median 3.00 3.00 2.00 3.00 3.00 1.00 3.00 Mode 3 3 3 4 3 1 3 Std. Deviation .815 .528 .576 .809 .535 .420 .792 Range 2 2 3 3 3 3 3 Minimum 1 2 1 1 1 1 1 Maximum 3 4 4 4 4 4 4 3. Consideration options for management: The report has made a thorough analysis of all the indicators involved in the research as well as in the data collection process. Through the closer look at the analysis, there have been many points that can be considered before key decisions are made. The management must take a notice of the options that have been provided here and they might be proved to be very important in terms of increasing the sales of NFJ which have already been decreasing day by day. An important consideration would be the 77% weekly usage of the NFJ by the children or teenage of less than 20 years. This has been the main observation in this report, as the management must start new programs to attract more number of children. The best consideration for the management would be to make a publicity of the NFJ by visiting the schools all over UK and giving all the students free drinks to taste, which might increase the chances of sales going higher in near future. Another useful consideration option would be the affordability issues faced by many ethnic groups in UK due to their lesser incomes. The management must regulate the price policy as it has also been mentioned in the data collected that more than 50% of the people consider price a significant issue in terms of the purchasing NFJ, and due to the price constraints, the demand decreases and as a result of that, sales decrease too. Another considerable option would be the health concerns and fears most people have about these drinks. The management should advertise the NFJ through media in which they must inform the people about the health benefits and not the problems people might face with the use of the NFJ. 4. Further analysis: The purpose of this section is to establish further analysis in the enhancement of the sales of the NFJ and considering the steps that might lead the NFJ to become topnotch drink throughout the country. The basic technique of getting the sales increased would be to follow different economic models that have been established to help drive the businesses into the right direction, with the sales going higher, costs going lower and so on. The managerial department must be so competent that it has the skills to make the cost of the product as much lower as they can so that they could lower the prices in the market which is a guaranteed way for increased sales as well as revenue, and finally, profit. The data analysis done in this report is of limited scope, but it has discussed all the issues that are much closer and relevant to the use of NFJ. Every aspect of the analysis had been covered before. However, further responsibility now lies upon the management and its decisions. The advanced analysis must be established upon the managerial bodies and executives who own the key stake-holding positions in the decision making process. The management that adopts a customer-oriented approach always gets more revenue as the sales go high in that case. The main policy the NFJ management must adopt should also be related to the customer-oriented approach, in which the main step should be the reduction in the prices as it has been recorded by the surveyed personnel to be the main concern that leads them not to buy the NFJ. In the past, management has not thought about decreasing the price, rather they have been increasing every time a new fiscal year is started. So a customer-oriented approach must be adopted in which the consumers must be given more space. 5. Conclusions and recommendations The report has argued and analyzed the NFJ products and a thorough analysis has been established in this report. The main conclusion that can be deduced from the findings and the analysis is that the consumers of less than 20 years of age are the potential users of NFJ which are considered as children of schools and the teenage less than 20 years of age. One of the ways to increase the sales for the NFJ would be to promote these products at more wide scale in which a proper campaigning is made into the schools all over UK to make this product more famous among the children. Another main conclusion that has been drawn is that the consumers do want to buy and drink NFJ but the price constraints do not allow them to do so as the prices of these products are high, and everyone cannot afford them. The main recommendation from this conclusion for the management officials of NFJ products would be to reform their products’ prices so that they are reachable to every consumer and there are no financial constraints involved. That will be the key decision as well as the execution that will enhance the sales and profits to infinite levels. Read More