FINAL QUANTITATIVE ANALYSIS

Prepared by: ZooM Marketing

Chadae Chang

Tomer Melman

Alexis Androulakis

Lauren Sornberger

Prepared For:

Leslie Shifrin

Research Methods in IMC

AC 272: 25A

December 15, 2008

METHODOLGY Page 3-5

KEY EVALUATIVE MEASURES Page 6

PURCHASE INTENT Page 7-8

LIKEABILITY Page 9-10

DIFFERENTIATION Page 11-12

PURCHASE FREQUENCY Page 13-14

ATTRIBUTE RATING Page 15

ATTRIBUTES Page 16-17

CONCLUSION & RECOMMENDATIONS Page 18

As part of a comprehensive project to reinvigorate the Nestea Iced Tea brand, quantitative research was

conducted and two potential Nestea concepts were identified as having potential to satisfy consumer

needs.

The two new concepts presented were, Healthy and Delicious Energy and Tropical Relaxation.

Objectives

The specific objectives were to:

•Determine which concepts generate greater levels of purchase intent and overall appeal

•Assess how each performs on key distinguished dimensions

Background on Quantitative Research

The Zoom Marketing Research Company must use market research to quantify key consumer insights that would make them more responsive to the new Nestea Brand concepts.

The research objectives set in order to:

•Test the two new RTD Iced Tea concepts which were developed as a result of previous qualitative research.

RESEARCH OBJECTIVES

WHO: Primary drinkers male (46%) and females (54%), age 16-40 who have personally drank RTD ice tea in the past month, and will consider drinking more than one brand of RTD ice tea in the future.

WHAT: Respondents were separately expose to two concepts and asked about :

• Purchase intent

• Likeability

•Differentiation

• Expected Frequency of Purchase

• Attributes Rating

WHERE: Face to face interviews on New York, New Jersey and Connecticut

WHEN: November 2008

Continued

Healthy and Delicious Energy!Healthy and delicious energy will allow you to drink the same fresh iced tea you crave, but will give you the afternoon boost necessary to get you through the day and all from natural ingredients. It comes in a convenient, tote-able, eco-friendly plastic bottle. Healthy and delicious energy will be available in a variety of great tasting flavors, including calorie-free diet.

Introducing Tropical Relaxation!The new ice tea in tropical flavors to make you feel relaxed and refreshed. Tropical Relaxation ice tea will be available in new and unique tropical flavors with a great refreshing taste. It contains a high level of antioxidants and vitamins that are important to your body along with other natural ingredients that have been proven to help in protecting and relaxing the body for the daily stress.

Healthy and Delicious Energy

Tropical Relaxation

Continued

After exposure to Healthy and Delicious Energy, respondents were asked to rate their purchase intent, likeness of the concept, differentiation from current products. Respondents were then

exposed to Tropical Relaxation and asked the same questions.

The Tropical Relaxation concept is clearly superior on the key overall purchase intent

measure.

The concept generates much higher type two box positive purchase intent as well as top box

definite intent to purchase.

In addition more negative rejection is noted for the Healthy and Delicious Energy concept.

Findings

Healthy and Delicious Energy Tropical Relaxation

Base (50) (50) % %

Definitely/Probably would buy 32 56

Definitely would buy 8 18

Probably would buy 24 38

Probably/Definitely would not buy 34 16

Findings

Consistent with purchase intent, the Tropical Relaxation concept was found more likeable by consumers than the Healthy and Delicious Energy concept.

It generates a considerably higher mean ratio as well as a considerably high top two box (Like Extremely/Like Very Much) with almost double the preference for Tropical Relaxation.

Healthy and Delicious Energy Tropical RelaxationBase (50) (50)

% %

Like 86 45Like extremely/Very Much 14 22

Like extremely - 3

Like very much 14 8

Like somewhat 34 18

Like slightly 10 8

Neither like nor dislike 28 8

Dislike 14 5

Dislike slightly 6 3

Dislike somewhat 4 1

Dislike very much 2 1

Dislike extremely 2 -

Mean 5.92 6.44

Findings

Again Tropical Relaxation outperformed Healthy Delicious Energy in the top two box category.

Tropical Relaxation was noted by many respondents as different whereas Healthy Delicious energy was not seen as different at all.

Healthy and Delicious Energy Tropical Relaxation

Base (50) (50) % %

Extremely/Very different 28 42

Extremely different - 10

Very different 28 32

Findings

The Tropical Relaxation concept generated great intended purchase frequency with more than twice as many respondents claiming they would buy it frequently.

Healthy and Delicious Energy Tropical Relaxation

Base (50) (50) % %

Often 12 28

Sometimes 64 62

Healthy and Delicious Energy Tropical Relaxation (50) (50)

Completely/Very Well % %

Will give you more energy 52 20

Will taste good 28 46

Will be refreshing 42 48

Will be product for someone like you 30 44

Will make you feel good 20 20

Would be a beverage you would drink 26 40

Will make you feel healthy 12 24

Will make you feel cool 12 16

Is something I would recommend to a friend 18 24

Findings

Healthy Delicious Energy is the clear winner in the energy category.

Tropical Relaxation fared well in the taste category beating Healthy Delicious Energy by a wide margin of respondents.

Both concepts were perceived as refreshing with a small margin of respondents claiming Tropical Relaxation would be more refreshing than Healthy and Delicious Energy.

Tropical Relaxation was clearly the concept that respondents could relate to and associated more with themselves.

Findings Continued

Both concepts generated positive feedback as to whether or not the beverage would make them feel good.

A much larger margin of respondents saw themselves drinking Tropical Relaxation as opposed to Healthy Delicious Energy.

Tropical Relaxation was also the category leader in the healthy department.

Respondents replied that neither concept will make them feel cool.

Overall, respondents would be more likely to recommend Tropical Relaxation to friends as opposed to Healthy Delicious Energy.

Healthy Delicious Energy, overall was not seen as a healthy beverage option.

Tropical Relaxation is the clear favorite chosen as the better-tasting beverage consumers would be more likely to drink.

Both concepts were not considered by respondents as products that would either make them feel good about themselves or cool.

Respondents replied that they would be less likely to recommend to a friend for both concepts.

We found that Tropical Relaxation was better received than Healthy Energy. In order to improve the taste concept, further research should be conducted regarding health associations and product image ie. how it reflects RTD Iced Tea drinkers self image.