Marketing Research Report - Group 5 - MR DH47ISB 6
Marketing Research Report - Group 5 - MR DH47ISB 6
Marketing Research Report - Group 5 - MR DH47ISB 6
Lê
ID: 31211021934
ID: 31211023875
ID: 31211022001
ID: 31211022065
ID: 31211021804
Marketing Research
Class: DH47MAR01
2
TABLE OF CONTENTS
Executive summary
Nestlé is a Swiss multinational food and drink processing conglomerate corporation
most diversified food and beverage company. Nestlé has a long history here in Vietnam,
where it established its first representative office in Saigon in 1912. Up to now, Nestlé is
operating 6 factories and nearly 2300 employees nationwide. With a total investment capital
of more than 600 million USD, Nestlé not only demonstrates the company's long-term
commitment to development in Vietnam but also the desire to improve the quality of life and
contribute to a healthier future for its customers.
This research report is to point out some factors - Creating Shared Values (CSVs)
affecting the young consumer behavior as well as the difficulty that Nestlé confronts
nowadays. Throughout this study, there are four parts analyzing deeply about the topic.
Firstly, the background part will help you understand clearly the market overview as well as
the company overview. Secondly, we will move the scope to the opportunity approach, which
displays how we can approach the opportunity effectively and logically with both internal and
external factors. Then, the research design will demonstrate all the methods and techniques
that we offer for this topic. Finally, the fieldwork and data collection will show how we gather
the data and analyze it.
Background
A. Market overview
The food industry is the largest industry in the world, which are the complex,
collective of so many businesses that contribute to the supply of food energy for the world
population. The food processing industry employs more than 1.5 million or more than
employees in the entire manufacturing sector [1]. Depending on the size of the establishment,
the F&B manager is either responsible for the implementation of agreed policies or for
contributing to the setting up of the food and beverage policies. The larger the organization,
the less likely the manager is to be involved in policy settings.
industry in Vietnam is considered very potential. [2] According to the market research group
Euromonitor, the total revenue of the F&B market was more than 700,000 billion VND in
2020. It is forecasted that the revenue of the F&B industry in Vietnam in the next two years
may double in size and continue to attract investors. That is understandable when the
pandemic is complicated, but enterprises in this industry still maintain a positive growth rate.
Thus, this results in many possible trends for the F&B industry, such as the rise of organic
and plant-based products, proactivity in health care, omnichannel distribution and the
expansion of eCommerce, and safety and hygiene.
B. Company overview
Opportunities Recognition
If it ever did, the adage that business is all about profits, cash flow, and shareholders
just is not true today [5]. Nowadays, people care about several more factors regarding a
business, including the values that businesses bring to individuals, communities, and the earth
before making final purchasing decisions [6]. Therefore, CSV is now seen as a financial
investment rather than just a regulatory or optional cost [7]. Therefore, it is essential for
businesses to make their moves before it is too late.
1.
activities?
2.
care for social issues?
Research Objectives
1.
in general and CSV of Nestlé in particular.
2.
3.
6
A. Data collection
Information that has previously been gathered and is often available in print or
electronic form is known as secondary data. Secondary data may only have limited uses in
specialized market research since it is frequently gathered, examined, and packaged with a
particular goal in mind. However, employing secondary data for market research has several
benefits, including time and money savings [9].
Secondary data gives information regarding methods and tools to use in addition to the
background and context. When communicating with sample units (i.e., research participants
such as survey respondents or experiment subjects, who may be people, organizations, or
other entities), it is essential to use appropriate language and terminology. This information
can also help identify questions and topics that should be avoided and potential issues [10].
We employ two methods for gathering data: surveys and focus group interviews. The
students doing the study are the investigators, and we have received training in data collection
methods to ensure the procedure's precision. Direct interviews and online surveys are the
methods of investigation. Additionally, the procedure depends on the research; interviewees
may ask respondents directly, or they may submit their views through a questionnaire.
7
An efficient qualitative tool is the focus group interview. In a focus group interview, a
group moderator guides participants through an open, in-depth conversation. The moderator's
goal is to steer the conversation in a nondirective direction toward the pertinent subject areas.
During the planning or qualitative stages of the marketing research process, these interviews
can be utilized to generate hypotheses. The interviews serve as a thorough foundation for the
creation of subsequent research. They may be a good source of original concepts for novel
goods and services, advertising campaign topics, packaging assessments, and the like [11].
We did three focus group interviews, each consisting of six interviewees from 18 to 25
years old who were either aware of Nestlé and their CSV activities or not. The two
moderators who led each focus group are also members of our group. Through a direct
interview, open-ended questions were asked, and respondents gave their own opinions. We
chose open-ended questions because they are an effective way to encourage respondents to
provide as many viewpoints as they can. Both focus groups were audio-recorded and
transcript later. Although there is no set time limit, we would want to finish in an hour or an
hour and a half.
It is possible that the most popular approach for gathering primary data is surveys.
However, it is crucial to remember that all of these methods for collecting data are purely
hypothetical. Internet surveys have the advantages of maybe being finished more quickly and,
depending on how the survey is housed, potentially being less expensive to perform than
other survey formats. For surveyors without prior surveying expertise or good statistical
abilities, several Web surveys hosts also provide tools to analyze the data for the user,
simplifying the procedure. Getting in touch with the targeted audience members and
convincing them to respond to the survey after being reached are the drawbacks. Some people
could be hesitant to divulge private data online, similar to other survey methodologies [9].
We created a survey that used Google Forms' online survey questionnaire. We sent it
to 100 - 120 respondents from 18 to 25 years old who mostly rely on family pensions (see
Figure 6 Appendix C) and are aware of Nestlé even though they have seen CSV activities or
not, by email or social media, and they finished it online. The questionnaire structure was:
8
- Demographic question.
The structured questions would be expressed on a Likert 5-point scale and MCQs
(Multiple-choice questions). The questionnaire consists of approximately six pages and would
take an average of 5-6 minutes to complete thoroughly.
B. Data analysis
1. Secondary data
It is possible to collect secondary data from previous studies, F&B sales analytics, and
information from a reliable online organization that will provide suggestions for the additional
primary analysis. We found the previous research on Google Scholar, ProQuest, and other
reliable sources; and searched Statista for statistical data.
2. Primary data:
The interview moderators will use videos from Nestlé's CSV campaigns and images of
the product from Nestlé to interact with participants and keep comments grounded in reality.
All interviews must be recorded with each respondent's permission, and the text of these
recordings will also be attached as an Appendix because the actions, views, intentions,
thoughts, and wants of the commodity's customers may be evaluated and summarized using
respondents' responses.
b. Surveys
The questionnaire will be created and distributed online, notably utilizing the Google
Form, which will make it simple to examine the findings. We will use pie charts and bar
9
Findings
After conducting a survey with 3 focus groups and 18 respondents, we gain more
information about the customers' buying behavior, companies' responsibility for the
environment and social issues, and their awareness of Nestlé's products as well as its' CSV
campaigns.
Through the focus group interviews, customers will consider many aspects such as taste,
brand, nutrition and so on respectively when buying an F&B product. Sustainability is not
one of their first thoughts.
-
-
-
Some respondents like Nestlé because it is tasty and because it can ensure the safety of
people's health while others think that the taste of its products is not good, and they are afraid
that their products can lead to some health problems like obesity.
-
- the standards, coffee and tea are easy to put chemicals in, so it is not
Companies have launched many social campaigns to deal with the existing issues in
society, but they have not been thoroughly solved. Therefore, respondents have offered some
suggestions about CSR activities for the companies to handle the difficulties [12].
-
2, respondent 5)
- ead of gender, offer policies to
10
As a result -term
[12].
Whereas balancing welfare and profit will be advantageous. The value of a business is not
only based on profits but also on how people perceive the company, which leads to the
number of customers choosing that brand.
-
Despite the increase in trust, most interviewees will not change from their favorite brands
to a brand that has CSV activities.
-
- both if it's good, change it completely, and don't care much about CSV. If there
(Group 2, respondent 5)
-
products. It
is not the most crucial aspect that participants will think of when making a purchasing
decision. However, if a CSV/CSR campaign is attractive enough, they will try the products.
Through the survey questions, we have more data on a larger scale of 113 respondents
to verify our findings from qualitative study in terms of consumer preferences for F&B
products, their levels of awareness about social and environmental problems, their opinions
about Nestlé and its CSV campaigns, and other factors besides CSV that determine their
buying behavior. Here are some key findings and their statistics.
11
waste treatment in the production process, besides wasting natural resources in the production
process (67.3%) and ensuring the truthfulness of the product during the introduction process
(64.6%). (Figure 1 Appendix C).
"Customers have more empathy and love for Nestlé after knowing about its programs
to help society and the environment (CSV)."
ng
customers said that they have greater sympathy for the company now that they are aware of
Nestlé's CSV activities. (Figure 2 Appendix C).
"Customers are willing to pay more for a Nestlé product that contributes to society
and the environment, as long as the difference is not too much." (See Figure 3, Appendix C).
society and the environment, as long as the difference in price is not too much (See Figure 2,
Appendix C). Particularly, when being asked about the maximum price they agree to pay
more for a Nestlé product that is having a campaign to support the community, specifically
Milo, whose current price is 8,000 VND per box, 65.5% of respondents said they would be
willing to pay between 1,000 VND and 4,000 VND more per box, and 17.7% of them are
willing to pay less than 1,000 VND more per box. Only 7.1% of those surveyed said they
would not be willing to pay more for that product.
buy the product of the brand that has carried out CSR/CSV activities. Other factors are
fixed."
ink
that they will have more trust in the product even if the firm is random and unfamiliar to
them, as long as it has carried out activities/campaigns that benefit society and the
environment. (Figure 4 Appendix C).
"Customers are not likely to refer friends and relatives to use Nestlé products just
because Nestlé has CSV activities"
12
customers are willing to refer friends and relatives when they know that Nestlé has launched a
campaign to benefit society and the environment, holding other factors fixed. (See Figure 2,
Appendix C).
"CSV is not the main component affecting the customer's purchase process, in
particular for the F&B industry."
V is only a secondary consideration in their F&B buying
decision-making process when compared to other considerations like price, flavor, brand and
so on. (Figure 5 Appendix C)
In conclusion, after verifying the findings with a larger scale of respondents (113), we
realize that young Vietnamese consumers have very strong awareness and intense support for
the sustainability of individuals, society and the earth (CSV). However, in terms of making
the final purchasing decision, they tend to be reluctant and consider factors they assume to be
more crucial to them, including taste, price, brand awareness, then CSV.
First of all, it is true that CSV is a good point to attract customers. However, factors
mainly affecting the decisions of young buyers are the quality of the product, the reputation,
and price of the brand's products instead of the CSV activity. Therefore, we highly
recommend that Nestlé should continue its CSV activities/ campaigns, but not depend too
much on them, while focusing instead on enhancing products' quality, taste, price, etc.
Because with young consumers in Vietnam, CSV is nothing without these core factors. As a
result, CSV activities will be a competitive strength for Nestlé, if combined with the good
quality it already has, making Nestlé the favorite brand of many customers as well as the top-
of-mind brand when it comes to F&B.
Nestlé can launch new products while maintaining quality while contributing to society
and environmental protection.
13
For instance, in 2019, the leading brand of natural mineral water in Vietnam, La Vie, a
sub-brand of Nestlé, combined with the Vietnam National Administration of Tourism in to
launch a bottled water product with a capacity of 700ml (200ml more than the previous
bottle), along with the packaging decorated by famous wonders in Vietnam (See Appendix
D). Additionally, La Vie also decided to make this product from food-grade recycled PET,
which is being used by the European Union (EU) as a safe solution for both user and
environment). La Vie hopes that through this initiative, travel enthusiasts will better
understand the natural beauty of Vietnam, stimulate the country's tourism after the
challenging COVID-19 period, as well as contribute to promoting the tourism industry.
Collect, sort and recycle plastic bottles, and protect the environment. Although this version of
La Vie water bottle is almost twice as expensive as the old La Vie bottle (See Appendix E)
(11,000 VND compared to 6,000 VND), this product of Nestlé has been very well received by
Vietnamese consumers because of the messages and values that it brings. Also, the bottle
capacity has also been increased significantly, making customers still feel satisfied when
buying the product.
Similarly, in the future, Nestlé can also implement a similar product for a new brand,
typically Milo, a brand that is already very familiar and powerful in the subconscious of
Vietnamese consumers. especially young people. Nestlé may cooperate with the General
Department of Sports and Physical Education of Vietnam, to launch a new Milo milk product,
richer in energy, with a drinking cap for professional sports people (See Appendix F), similar
to La Vie, to encourage Vietnamese children to exercise more as the insufficiency of height
and weight are already problems for children in Vietnam. Meanwhile, packaging and straws
made from paper and bamboo, or sugarcane, respectively, will contribute to reducing the
impact of plastic waste on the environment.
Secondly, as our young respondents stated that they were not really satisfied with the
CSV activities that Nestlé showed in public because there was a lack of commitment and the
result. Therefore, in order to make a
perform more by showing the result of every single campaign and reporting the effectiveness
of the campaign frequently enough so that customers can trust in the commitment and support
Nestlé more.
14
Action plan:
and progress of CSV campaigns
Nestlé may use the company's communication channels to report information about social
campaigns or the launch of environmentally friendly products to young consumers in
Vietnam. Similar to the way multinational companies and corporations, typically Unilever,
Pepsico, Vinamilk, etc. have been doing.
Finally, having to hold focus group interviews online due to reasons such as the pandemic,
and the difference in class schedules caused our qualitative study of focus group interviews to
take place online. This may affect the current results because, in face-to-face interviews,
respondents will have emotional elements, and body language integrated, which when
interviewing online will be difficult to pay attention to monitor and lead to possible
deficiencies in information collection and analysis.
References
1. Manisha S. Food Industry: Characteristics, objectives, risks and benefits
[Internet]. BioTechnology Notes. 2018 [cited 2022 Jul 29]. Available
from: https://www.biotechnologynotes.com/food-biotechnology/food-
15
industry-characteristics-objectives-risks-and-benefits-
biotechnology/14088
3. Chapot P. Creating shared value [Internet]. Nestlé Global. [cited 2022 Jul
29]. Available from: https://www.nestle.com/investors/annual-
report/creating-shared-value
4. Porter ME, Kramer MR. Creating Shared Value. In: Managing Sustainable
Business. Dordrecht: Springer Netherlands; 2019. p. 327 50.
6. Bhattacharya CB, Sen S. Doing better at doing good: When, why, and
how consumers respond to corporate social initiatives. Calif Manage Rev
[Internet]. 2004;47(1):9 24. Available from:
http://dx.doi.org/10.2307/41166284
9. Curtis KR. Conducting Market Research Using Primary Data. 2008 Jan;
Available from: https://www.researchgate.net/profile/Kynda-
Curtis/publication/242091149_Conducting_Market_Research_Using_Pri
mary_Data/links/0deec529cd11ea8526000000/Conducting-Market-
Research-Using-Primary-Data.pdf
10. Patzer GL. Using secondary data in marketing research: United States and
worldwide. Westport, CT: Praeger; 1995.
12. Mohr LA, Webb DJ, Harris KE. Do consumers expect companies to be
socially responsible? The impact of corporate social responsibility on
buying behavior. J Consum Aff [Internet]. 2001;35(1):45 72. Available
from: http://dx.doi.org/10.1111/j.1745-6606.2001.tb00102.x
Appendices
Section 1: -introduction:
Introduction/ - Thank respondents for agreeing to take part in the
Warm-up (5-7 research to inform audio, video recording, and
min) observation.
- Reassure confidentiality.
General - Feel free to share their opinions; there are no right or
questions on wrong answers.
Nestlé - Quick introduction about the purpose of the
discussion i.e. CSR impact on young consumer
17
behavior in Vietnam
Yourself?
General questions about the respondent:
- Your eating habits? Do you eat healthily? How
many meals per day? Drinking habits?
- Which factors do you consider when choosing an
F&B brand (it could be nutrition, packaging,
branding, taste, familiarity,)?
- Which brands do you usually choose when it comes
to F&B? Your favorite brand(s)?
- Have you ever used F&B Nestlé products? (Show
Main outcome:
Appendix B: Coding
trong 1 ngày?
Nestlé là 1 trong mát"
thôi à"
21
long"
R6: "hay
trà"
xong."
F&B (thành
không."
22
là giá thành."
R1: "Thích Orion, R1: "Twister vì R1: "Highlands, Olong Tea Plus,
t Coffee House Coffee House,
Highlands,
chai". Phúc Long,
R2: "Trung Milo, Oreo,
Nguyên Coffee".
R4: "Mc
donalds, KFC,
R5: "Ô long tea Lotteria, Jolibee
Starbucks"
R1: "Milo" R1: "Lavie, Milo, R1: "Lavie,
Nestea, Nescafe." Milo, thích Milo
R2: "Milo và
Lavie" R2: "Milo, Lavie."
phâm Nestlé
R3: "Milo, Nescafe R3: "Lavie, Milo." R2: "Lavie, khác.
và Kitkat" Milo, thích Milo
R4: "Lavie, Milo,
Nestea, Nescafe."
R6: "Milo,
thích và không Nestea."
thích không? R4: "Lavie,
Milo, Nestea,
R7: "Milo và Lavie. Nescafe, thích
Lavie là mùi Lavie nh Lavie:
thích."
R5: "Lavie,
Milo, Nestea, thích vì không
Nescafe, thích
ngon, không
R6: "Lavie,
Milo, Nestea,
Nescafe, thích
Milo và Nescafe,
không thích
Lavie mà thích
thôi."
hay
không? - Riêng Lavie vì là không thì không
không có chuyên
môn."
uy tín).
Nestlé?
- gây
R4: nóng, béo phì..)
24
sáng)."
ng
ôn R3: "Coca-cola, có
các doanh
dùng Các doanh
trách nhi
R2: "Các doanh beauty and
planet, tresame
(recycled
packaging) hay
Các doanh
(Loreal, Love
Beauty and
Planet,
Tresemme), và
an to
F&B (Coca-
xanh." Nestle là doanh cola, TH
Group,
Vinamilk,
phong." Nestlé).
R6: "Vinamilk
susta Cocacola là
26
i
trong quá trình
R5: "Các doanh
em suy dinh
em". m
suy dinh
R2: "Quyên góp
làm), Trung
27
cho doanh
hì có
Nestlé."
Vinamilk (nâng
giú
vùng sâu vùng
xa".
sinh
em." nhai, nâng cao
không
28
doanh
campaign tuyên
cà phê."
Chia làm 2
có. thì không còn vì
Nam."
là ít/không
là th không, khuân
h vác..
ng công
Intel, FE
Credit, Loreal,
Unilever,
Vinamilk)
trong Intel có
R6: "
nam -
ù
30
nam -
có. có.
ngành cao,
t
ng R2: "Doanh
thân.
khác nhau.
doanh
v
Management
Trainee,
do doanh nghi Internship,
Company Tour
cho công ty. dành cho sinh
s
hình là YBOX, Shopee, Nestlé,
có thêm kinh , Cocacola,
Pepsico.
sinh viên cho
không có khó,
nhau. Doanh
này mà mình
Các doanh
"
và tùy ngành
33
2 cái này."
tâm và trách
mà còn là cách
trung và là Gen
(trong và ngoài)
succeed on the
marketplace"
t
là
50-
R3: "Doanh
trên."
marketing hay
nhân"
k
34
ái cho doanh
không có
35
Do Marketing
không cao.
gi
qua. Không có
video này? h
rõ ràng". .
nhìn bao quát,
khá chuyên
n
R6: "Hay, ý
cây."
ch
36
Nestlé."
Thích:
gì và không tí
video, có hình
2 video này?
cây.
Không thích:
công ty khác."
doanh
khác.
trùng."
có không thích
R5: "Khá là ý
mình
37
R3: "Không có
Nestlé include
vì nh
R5: "Thích:
Không thích:
tên
Nestlé, không có
không thích cái
gì."
cho Nestlé
Lavie."
xanh.
R4: "
cây xanh."
lo,
xa."
R4: "Mình không
Nestlé nên lo
Milo.
R5: "Không có
R6: "Nên có
Nestlé
theo trend."
39
xung quanh
này (CSV).
R4: "Không có
quá
này."
m
40
khai."
SECTION 3: Investigating respondents' attitudes regarding businesses engaged in CSV
activities, especially in Nestlé
mua, vì
Không mua, vì
chay cùng vì nó
thêm thì không."
thì không nên
mà còn là con
mua hay
không?
hay không."
doanh
không.
luôn"
chay luôn"
tính thêm có
không mua."
có thêm ngân
sác
phê phán nó
này.
Nestlé"
R4: "Nên có
ch
mua."
s
Nestlé)".
mua."
R1: "Lòng tin
không tha
eting
CSV, lòng tin
42
hàng
hàng."
nhau."
không dùng."
CSV?
làm.
cho xã
T
Nestlé mà nhóm
y Nestlé
a mình."
R1.
R6: "Kh
R2: "
nên cái nào ngon R2: "Không,
hành vi mua
không? program thì mua
khác.
lâu dài thì không."
R3: "Nah, ngoài
R5: "
R3: "Không, vì
ái
trong CSV."
46
Appendix C: Survey
Figure 1
Figure 2
47
Figure 3
Figure 4
Figure 5
Figure 6
Apart from those from our key findings, here are some statistics from our survey:
48
Milo is the most favorite product of young customers when it comes to Nestlé's F&B (57.5%),
followed by Kitkat (18.6%), Nestea (8.8%).
Figure 7
impressed with these activities because of their meaningful message (66.4%), positive content
(64.6%), and contagiousness in the community (61.9%).
Figure 8
Although the majority of respondents are highly aware of social and environmental problems
in businesses, of the 113 people who conducted the survey, up to 87.6% said that taste is one
of the main factors leading to the decision to buy an F&B product, besides price (80.5%), brand,
and popularity (67.3%), and nutritional composition (54.9%). This suggests that CSV is not a
primary factor influencing their choice when selecting a F&B brand.
49
Figure 9
Young customers claim that meaningful acts (81.4%), practical actions (76.1%), public
outcomes (54.9%), and confirmation and insider results are the main factors that influence their
decision to support a cause (52.2%).
Figure 10
While 49.5% of survey respondents think that Nestlé's social and environmental campaigns
(CSV) have solved problems in society, while 42.5% feel neutral and uncertain about this issue.
50