ariffaisal,
Creating a drop down menu is pretty simple, here is the procedure i followed.
1. create a page called test.( for a menu called test)
2. Create a page called subtest and add the page test as parent page
in page attributes.( this will be shown in the dropdown of test as
subtest).
3. go to appearance -> menus
under pages select the page named subtest and click on add to menu
4. under the main menu drag the subtest under the test menu and drag
it a little right side.
5. now the menu test should have a drop down menu called subtest.
make sure you refresh the browser.
thats it.. let me know if you are successful..