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Harsh khanna marketing project (mba)

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Harsh khanna marketing project (mba)

  1. 1. Final Project on “Analysis of Consumer’s Perception and Brands in Health Food Drinks Industry” ON FULFILLMENT OF THE REQUIREMENTS OF MBA PROGRAM OF MANAV RACHNA INTERNATIONAL UNIVERSITY Submitted By: Faculty Guide: Harsh Khanna Mrs. Deepti Dabas Hazarika FMS/MBA/061 1
  2. 2. Certificate This is to certify that the project entitled “Analysis of Consumer’s Perception and Brands in Health Food Drinks Industry” by Mr. Harsh Khanna, student of MASTER OF BUSINESS ADMINISTRATION, session[2009-2011] of Faculty of Management Studies, MANAV RACHNA INTERNATIONAL UNIVERSITY is hereby accepted and approved as a credible work. It is further certified that this work has not been submitted for similar purpose anywhere else. His work has been found satisfactory for the fulfillment of the award of the degree of MBA. Mrs. Deepti Dabas Hazarika Professor and Project Guide 2
  3. 3. Declaration I, Harsh Khanna, hereby declare that the project work entitled “Analysis of Consumer’s Perception and Brands in Health Food Drinks Industry” is an authenticated work carried out by me under the guidance of Mrs. Deepti Dabas Hazarika for the fulfillment of the award of the degree of MASTER OF BUSINESS ADMINISTRATION and this work has not been submitted for similar purpose anywhere else except to FACULTY OF MANAGEMENT STUDIES, MANAV RACHNA INTERNATIONAL UNIVERSITY Harsh Khanna 3
  4. 4. ACKNOWLEDGEMENT I would like to express my gratitude to all those who gave me the possibility to complete this report. Apart from the efforts of me, the success of this project depends largely on the encouragement and guidelines of many others. I take this opportunity to express my gratitude to the people who have been instrumental in the successful completion of this project. I am deeply indebted to my faculty guide Mrs. Deepti Dabas Hazarika, whose help, stimulating suggestions and encouragement helped me in all the time of research for and writing of this analysis. She showed me different ways to approach a research problem and the need to be persistent to accomplish any goal. Harsh Khanna 4
  5. 5. Table of Content 1. Acknowledgment………………………………………………………………………….4 2. Abstract……………………………………………………………………………………5 3. Introduction………………………………………………………………………………..6 4. Methodology………………………………………………………………………………7 5. Health Food Drink Market………………………………………………………………...8 6. Horlicks Story.….………………………………………………………………………..11 7. Boost Story .…….………………………………………………………………………..17 8. Bournvita Story .…………………………………………………………………………23 9. Complan Story ….……………………………………………………………………….30 10. Other Brands……………………………………………………………………………..36 11. Consumer Survey………………………………………………………………………...37 12. Conclusion……………………………………………………………………………….48 13. Limitation………………………………………………………………………………...49 14. Refrences…………………………………………………………………………………50 5
  6. 6. Abstract There is an ever-growing need for nourishment and energy in today’s fast-paced world. Who can resist a steaming, hot drink which promises to energize, nourish and refresh? The need for nutritional supplementation is all the more relevant for kids. Coupled with the fact that kids love the delicious taste of these drinks, once they have tried them, lies the basic tale of milk additives and the growth and development of the Health Food Drink (HFD) category. In this market research project, research will be conducted on the major brands in the Health Food Drink industry. For each brand the product will be explained as to what it is and what benefits it claims to give to its consumers. The market for each brand will be highlighted with their respective market shares wherever applicable. Advertising and promotion activities taken up by the companies for their products will also be discussed. More stress is laid on the advertising activities wherein the print ads and the storyboards for the major brands have also been included in the research. Only those ads have been taken into accounts which have made a major impact on the consumers. Cost comparisons have also been made among the various brands. The research will be incomplete if the consumers in this industry are not taken into account. Therefore, the perceptions of the consumers regarding these HFD brands will also be highlighted. This will help in answering the questions like what benefits they perceive from these products, which chooses the brand in these households, how they come to know about the brands, do they change brands frequently and do they actually notice any changes taking place due to regular usage of these brands. 6
  7. 7. AIMS & OBJECTIVES Objective of the study: The report is based on the research that is being carried out on the major brands in the Health Food Drinks (HFD) industry in India. The following are the purpose of this research: • To understand the HFD market better. • To understand the marketing and promotion strategies adopted by the major Brands in this industry • To understand the perception of the consumers regarding these brands Scope of the study: 1. The study is being conducted upon the HFD market in India only. 2. Only the brands having a major market share in this industry are studied in depth in the research though other brands have been highlighted and basic information has been provided upon these. 3. The major areas that are covered for the major brands include: • Product description • Product line (if any) • Market of the product • Cost of the product • Advertising and promotion 4. The consumer survey will be conducted within the Delhi region and the respondents will be women having children in the age bracket of 3-14 years. Data collection: Both primary and secondary data collection techniques have been used in the research. 1. Primary data has been collected by conducting consumer survey. 2. Secondary data has been collected from various sites on the internet, magazines and company database. 7
  8. 8. INTRODUCTION India is a major developing market for health food products. The market is expected to grow steadily due to the increasing health awareness among consumers and a shift from traditional foods to health foods. Technological advancements and the demographic will lead to major investments in India’s health food market. Global health food market is led by the United Stated of America while the Asian market is dominated by Japan. Major segments in the market have been discussed and include classification and health benefits of various products. An overview of India’s health food market has been provided including data for the market size and growth. The characteristics of the market have been analyzed and include – changing preferences due to rapid economic growth, rising health awareness, growing demand due to a large and ageing population, increased healthcare costs, advances in food science and technology, developing retail sector to heighten distribution and low penetration due to high cost of health food. The government regulations and initiatives have been highlighted and include the registration procedure for products in the health food market, . A consumer is attached with a brand or new innovate product for self actualization as the time passes and the product moves towards its generic behavior the needs of consumer shift to basic requirement. In 1980s mineral water was for NRIs and high profile people but what now; mineral water is serving the mass as healthy water for safety requirement, no more a status symbol. Same was the case with mobile phones. There are thousands of examples to prove this. The level at which a brand starts in the hierarchy depends upon the level of need for the respective product. In 1990s Horlicks was a symbol of esteem. Now in this era majority of households in cities depend upon the many health drinks . The point here is that as the need of a product moves in the hierarchy so the respective brands. A brand moves with time from top level (self actualization) to lowest level (basic needs) of Maslow’s hierarchy. There might be many factors that affect the movement from top level to the basic level. Company pricing strategy, competitors in industry, distribution, disposable income of consumers and life style are the major contribution to this shift in changes. According to literature, consumer behaviour is divided into three sub categories; consumption behaviour, purchase behaviour and attitude perception. The consumer behavior differs with age-group and the lifestyle. A busy professional life left no space for exercise so a drink which contains low calorific value is a 8
  9. 9. health drink. For kids health drink is a supplement with added calcium, minerals and vitamins. Milk stands apart with its strongest brand image. Encashment of Amul and mother dairy in milk segment is externally pillared on availability (Place), brand position of being pasteurized (promotion, product) and on price lesser then unbranded. Amul always portraits as a provider of milk and advertise its supply from villages. Here comes the next sub category of consumer behaviour, purchase behaviour. One can’t replace milk with substitute. But can add the little amount of these health drinks to the daily nourishment of the body. In this case the buyer and decision- maker is house wife.. METHODOLOGY Initiate project Desk Research Fieldwork (Survey) Data Analysis Report preparation 9
  10. 10. HEALTH FOOD DRINKS MARKET The HFD market in value terms is around Rs.1, 400 crores and in volume terms around 90,000 tonnes per annum. The milk shortage of the 1960s was what first fuelled the growth of this sector. Since the availability of milk was rare and the quality was also always suspected, milk additives were in high demand. The decades following the 1960’s saw the sector cruising along at an 8-10% growth rate, with milk shortages fueling the growth. Many companies got encouraged by this growth and the sector saw a lot of companies jumping into this bandwagon. The sector saw a series of launches from Complan, Nutramul, Boost, Maltova etc. The 1980s were the era of self-reliance which became possible due to Operation Flood* which ensured the availability of good quality milk and restrained the consumer's motivation to buy additives. Now that the milk was available in abundance, the manufacturers tried to change their product’s image by laying more stress on the ‘energy’ their product provides in addition to ‘taste'. A decade later the companies went in for many re-launches, nutrients addition, freebies and lot many activites. After a rapid 10% volume growth between 1996 and 1997, the market slumped in 1998. Traditionally HFDs thrived as a category in the 1970s and 1980s in milk deficient areas and were positioned as milk substitutes. The biggest markets for Health Food Drinks were in the milk deficient Southern and Eastern regions of India. However, after the success of Operation Flood by the National Dairy Development Board in the 1980s, HFDs were repositioned as health beverages. GlaxoSmithkline (GSK) with four brands - Horlicks, Boost, Viva and Maltova - is the leader in Indian health drink market. Complan from Heinz India and Cadbury India's Bournvita are also popular among the Indian health drink brands. 10
  11. 11. M ARKET SHARE OF BRANDS (sales volume) Others 17% Complan 13% GSK 70% According to retail audit unit ORG Marg Survey 2006, GSK with four brands in the category namely Horlicks, Boost, Viva and Maltova has a 70 per cent volume market share whereas Complan's share is 13 per cent. (ORG Marg suvey’06) * Operation Flood was a programme launched in Gujarat and was aimed at increasing milk production 11
  12. 12. MARKET INFORMATION The more than 82,000 tonnes, Milk Food Drink (MFD) segment can be divided into White Beverages and Brown Beverages. White Beverages account for more than 65% of the sales of the total market (FCB-ULKA survey’2005). From the beginning, white beverages have focused on the therapeutic platform. Also being water additives, they are looked upon as a substitute for milk, especially in areas where there is milk shortage, like in the east and south. White beverages have the added advantage of being perceived as convalescent foods, which enhances the player's health image. In fact, 40% of Horlicks sales come from medical stores. SmithKline Beecham's flagship brand Horlicks rules the roost in the White Beverages segment. Other brands in this segment are Viva (SmithKline Beecham) and Complan (Heinz). Brown Beverages account for the balance 35% of the total market (FCB ULKA Survey’2005). Growth rates in this segment have always been below the white beverages segment. Adding to manufacturer's woes, has been the performance of this segment in the past few years. One reason for the sluggish performance is because, unlike the whites, the browns have no real reason for existing. While the whites are hailed for their therapeutic offerings, the browns have always been looked upon as cosmetic ,that is, just taste enhancers. With their chocolate taste, the influencers -in this case the mothers have generally used browns to disguise the taste of milk. As a result, usage was restricted to children, whereas white beverages hold appeal across target groups. 12
  13. 13. Main Markets (in terms of VOLUME) ) Hlx. Exld Jn. MFD Whites Complan Jn. Hlx Viva Browns Bournvita Boost Nestle Milo Maltova Hlx 8 Cities 18,133 10,415 6,284 2,992 464 316 7,718 3,797 2,804 691 181 % % % % % % % % % % % Mumbai 12 7 5 11 10 --- 20 29 4 37 1 Kolkatta 21 31 30 37 33 36 6 7 0 26 1 Delhi 10 5 5 7 3 --- 17 28 3 9 18 Chennai 25 26 22 29 17 47 23 7 49 7 30 Bangalore 16 16 20 8 17 9 17 14 22 15 27 Hyderabad 11 10 12 5 14 2 13 13 15 5 15 Lucknow 1 1 1 1 1 --- 2 2 2 1 --- Madurai 3 4 5 2 4 6 2 0 5 0 7 THE BRANDS: ( I ) Major Brands: Brands Company 1. Horlicks ( Regular & junior) GlaxoSmithKline Consumer Healthcare 2. Boost GlaxoSmithKline Consumer Healthcare 3. Bournvita Cadbury’s 4. Complan Heinz ( II ) Others: Brands Company 1. Viva Glaxo SmithKline Consumer Healthcare 2. Maltova Glaxo SmithKline Consumer Healthcare 3. Milo Nestle 4. Amul Shakti Amul 13
  14. 14. PRODUCT: Horlicks was introduced in 1930’s and has ever since been the leading Health Food Drink in India and has a market share of more than half of the Health Food Drink market. The product has different formulations in order to cater to varying consumer segments and serve different consumer needs: 1. Regular Horlicks ( Also known as Horlicks Ninja) 2. Junior Horlicks 3. Mother’s Horlicks 4. Horlicks Lite 5. Horlicks Biscuits 1. Regular Horlicks: It was first invented to substitute milk as baby food. The Company claims that the product Horlicks has been scientifically developed and specifically caters to the nutritional needs of the Indian diet. It helps meet the requirements of essential nutrients in children such as iron and vitamins that aid iron absorption. It is available in four flavors Vanilla, Toffee, Chocolate and Elaichi. A glass of Horlicks costs Rs. 10.94 ( Milk + Horlicks = Rs.5 + Rs. 5.94 ) 14
  15. 15. 2. Junior Horlicks: Launched in April 2006, Junior Horlicks 1-2-3 is specially formulated to fulfill the nutrients requirements of preschool kids. The product contains DHA and the company highlights the fact that maximum brain development happens by the age of 5. It is therefore essential to supplement the kid’s diet with essential fatty Acids like DHA. And it contains the following:  Folate  Vitamin B6, Vitamin C, Vitamin B2, Vitamin B12  Iron  Calcium 3. Mother’s Horlicks: Mother’s Horlicks, a specialist nutritional extension of Horlicks for pregnant and breastfeeding women was launched in 1997. Mother Horlicks has been manufactured through a natural process of malting or germination that helps to produce enzymes which in turn helps to breakdown complex starches and proteins into simpler molecules to ease digestion during pregnancy and lactation. A new variant was launched in May 2004 which was fortified with DHA. In addition to the DHA content it has other vitamins and minerals like iron, foliate, calcium, vitamins C, B2, B6 and B12.Is a little bit on the expensive side and comes in packs of 500 gm (Rs. 175) and 200 gm (Rs.95 only) and the required amount of consumption per day is three serves, that is, six scoops. 15
  16. 16. 4. Horlicks Lite: Horlicks Lite Health Food Drink was launched in Sep’05. The product is specially formulated for all health conscious adults and is also suitable for use by people with diabetes. Horlicks Lite has zero added sugar and zero cholesterol and has the following benefits:  Contains 26 vital nutrients  Has high fibre  Is low fat  Has essential antioxidants MARKET: Horlicks occupies the leading position with over 50% share of the market (Source: ACNielsen ORG-MARG 2005). Quite often, a jar of Horlicks occupies a visible position in Indian kitchens. Successive generations of Indians over the past half-century have consumed it either by mixing it with milk or water and have become totally confirmed believers in Horlicks’s virtues of good health and nutrition. This is only to be expected for a brand that consumers have been using since the 1930s. Today, Horlicks is one of the best known brands in the health food category. It owes its success to a strong brand heritage, commitment to quality, focused communication, a strong distribution network and a deep understanding of consumer needs. Health food drinks provide nourishment for the family, particularly growing children and serve as energy providers for adults. Despite Operation Flood, the durability of the Horlicks brand has remained and has, in fact, been strengthened over the years. This is because the brand has been able to reinvent itself – and the market – and create positioning strategies that are in sync with consumer needs. It has created new segments in the market place by introducing sub-brands aimed at specific consumers as already mentioned such as Junior Horlicks, Horlicks Lite and Mothers Horlicks targeted specifically at particular segements. This strategy has expanded the market and brought new groups into the Horlicks market. The fact that Junior Horlicks contributes 11% to Horlicks’ total sales turnover and has been one of the fastest growing product extensions to the Horlicks brand reiterates this fact. 16
  17. 17. ADVERTISING & PROMOTION: Over the years, Horlicks’ communication has always connected with its consumers Horlicks released its first Indian press ad campaign way back in the 1930s, positioning itself as the family nourisher. In the 1970s, Horlicks was among the first brands that gave expression to the urban housewife’s concerns by creating the character of Suchitra, a modern housewife concerned with her family’s health. During the 1980s, Horlicks created one of the most popular TV campaigns with its ‘Why do I drink Horlicks?’, commercial. It was one of the early instances that an ad showcased the wide acceptance of the brand among people from different walks of life. The brand has been endorsed by celebrities, including leading personalities from the Indian film industry such as Amitabh Bachchan who featured in a series of radio ads in the 1960s and 1970s, also Moon Moon Sen and her daughters Riya and Raima in the 1980s. Former world chess champion Vishwanathan Anand has also endorsed the brand. PROMOTION: Apart from brand building campaigns, the brand is also well-supported by consumer promotions. Below-the- line activities, merchandising, sampling programs in schools, shopping malls and at sponsored events have helped Horlicks achieve top-of-mind recall scores of more than 70 and 45 respectively in the key markets of Calcutta and Chennai (Source: IMRB ATP, Q3 2003). Horlicks has always been ranked amongst the most cherished and valued brands in India today (Source: Brand Equity). The Agency that is handling Horlicks’ advertising and promotions is JWT. 17
  18. 18. Story Board For Horlicks TV Commercial (2005) Agency: JWT 18
  19. 19. A group of children ride into a crowded market They explain the meaning to a puzzled lady, “Epang, iron shouting, "Epang, opang, jhapang." Das kilo palak main jitna.” Juggling lemons, they go on, “Opang, vitamin C, Pushing a cart they define “Jhapang” as vitamin D found bees nimbu main hai utna.” In 7 dozen bananas Voice over: “ Har pal chanchal, Horlicks, matlab Jingle: “Epang Opang, Epang opnag , jhapang.” Itna kuch ek bottle main.” 19
  20. 20. PRINT ADS 20
  21. 21. PRODUCT: Boost is a malt-based Health Food Drink and was launched in 1975. The product Boost has 'Advanced Energy Boosters™, and is quite different from any other product in the MFD category as it is claimed to be the most nutritious. It contains the following: o Iron o Copper o Folate o Vitamin A, C, D, B12, B1, B2, B6 o Niacin o Pantothenic Acid o Biotin o Magnesium o Zinc o Calcium The company claims that all these nutrients will give benefits like healthy blood for more energy and optimal physical performance, energy release from food for efficient working of body cells and will make bones stronger. It is available in the two flavors: Regular and newly launched Boost Chocoblast. A glass of Horlicks costs Rs. 10.94 ( Milk + Horlicks = Rs.5 + Rs. 5.94 ) 21
  22. 22. MARKET: Boost has a market share of 13% countrywide amongst all HFDs, while in South India, which is the biggest region for the category, it commands a share of 24%. (ACNielsen Retail Audit) Boost, manufactured in strategically located factories and retailed through more than 300,000 outlets across the country has a turnover of over Rs. 1500 million. In the overall context, GSKCH has not only retained market leadership of the ‘White’ HFD through Horlicks, through Boost it has found the means to enhance its share in the growing ‘Brown’ segment as well. Despite being a late entrant, Boost has taken on the traditionally strong player, Cadbury’s Bournvita in this category. The two brands are actually in a way competing against each other as they are in the same segment an are now in a close race for the top slot. Boost has a household penetration of 40%-45% in several cities and towns in South India which is the brand's stronghold. In towns like Chennai and Madurai this penetration exceeds 50% among SEC A and B households and 40% among all households (Source: IMRB Panel Data Jan - Dec 2003). There is a range of interesting products prepared with Boost which cater to local tastes: the Boost 'Barfis', for example, in certain parts of South India. Boost has the highest frequency of purchase among all brown powders in India (Source: IMRB Household Panel).Boost was the fastest growing brand in 2003 over 2002 among the top five Health Food Drinks in India (Source: ACNielsen Retail Survey, 2003). 22
  23. 23. ADVERTISING AND PROMOTION: Boost was the first brand in the HFD category to have used Celebrity endorsement to convey its energy proposition and thereby has successfully differentiated itself from other brands. Cricket has been the cornerstone of Boost's brand promotions. The company has leveraged on the fact that sport commands unique passion in India especially among children. Boost's energy offering is also uniquely suited to this game since to play the game loads of energy is required. Therefore, Boost has been successively endorsed by India's most famous cricket stars, particularly those with a huge following among children. Kapil Dev, who was the country's most charismatic cricketer in the 1980s, started the trend.In the 1990s, the baton passed to Sachin Tendulkar, who emerged in the early 1990s as a baby-faced teenager and instantly became the heartthrob of millions of cricket-crazy Indians, especially young children. Sachin has remained steadfast in his support for Boost with explosive batsman Virender Sehwag joining the Little Master as brand ambassador in 2001. PROMOTION: The advertising and promotion activities for Boost have mostly revolved sports and especially Cricket. The Company has from time to time held Boost Cricket Cup, which it instituted in 1998 to promote cricket and identify talent at the grassroots level. The event had many states participating in it but 2003 onwards this has been restricted to Andhra Pradesh, Tamil Nadu and Bangalore, but would be soon extended to the rest of the country in a year. GSK is also launching a Web site, boostenergy.com, for children which is under construction. The Agency that is handling Boosts’ advertising and promotions is JWT. 23
  24. 24. Story Board For Boost TV Commercial (2005) Agency: JWT 24
  25. 25. Sachin and Sehwag stop for a moment to catch A group of kids trekking on the same mountain notice their breath and enjoy the scenery around them that their “Boost” is missing. as they trek up a mountain. In the meantime the two cricketers, also hunting The Boost bottle rolls down the Rocky mountain with for their Boost find it rolling down the mountain full speed and run after it. With no intention to give up their health drink, the two The bottle lands in the midst of a stream and groups give the bottle a good chase. both Sachin and the small boy catch hold of it at the same time Both the boy and Sachin refuse to losen their grip over The kids complete the sentence, “our energy” and pull the The bottle when Sehwag says, “Boost is the secret of ..” bottle away 25
  26. 26. However, everything is forgotten as the whole Wanting to see some more action, the little boy throws group sits down to enjoy a hot cup the botte down the mountain. of Boost. Seeing it fall, all of them waste no time to chase it down the mountain when a bottle of Boost is shown with the message 'is the secret of our energy.' 26
  27. 27. PRINT ADS 27
  28. 28. PRODUCT: Bournvita was launched by Cadbury’s in 1948. It is among the oldest brands in the Malt Based Food / Malt Food category with a rich heritage and has always been known to provide the best nutrition to aid growth and all round development. The product Bournvita is a combination of malt and chocolate. The company claims that the product gives the child physical and mental alertness resulting in a healthy body and an active mind. It has many firsts:  Bournvita introduced a pet jar (shifting from the old glass bottle)  It introduced shrink-sleeved packaging (from the old jar labels).  There was a complete re-design of the logo.  A loyalty programme, in the form of a Bournvita Nutrition Centre, dedicated to counselling mother on her child's daily nutritional needs was opened. It was Bournvita's way of showing it cared. Cadbury Bournvita has continuously re-invented itself in terms of product, packaging, promotion & distribution. The Cadbury lineage and rich brand heritage has helped the brand maintain its leadership position and image over the last 50 years. 28
  29. 29. It is a universal truth that mothers attach a lot of emotional importance to nourishment while bringing up their children. However, children always look out for the tastiest option to make their daily dose of milk more enjoyable. Two cups is the requirement to reap the benefits of the product. A glass of Bournvita costs Rs. 7.44 ( Milk + Horlicks = Rs.5 + Rs. 2.44 ) Cadbury now offers two varieties to ensure greater appeal: 1. Cadbury Bournvita (with chocolate taste) 2. Cadbury Bournvita 5 Star Magic available in rich chocolate and caramel flavour of Cadbury 5 Star. MARKET: Given its market share of 17% in the MFD market and volume estimated to be 48,423 tons (Source: ORG- MARG), Cadbury Bournvita reaches across hundreds of cities, towns and villages through 3,50,000 outlets in India. When launched it was positioned on the taste platform and the brand quickly found appeal among mothers who had to face the daily trauma of forcing a glass of milk down their kid's throats. In 1998, with slipping market shares and constant price increases, the category and the brand's relevance were being questioned. The company realised that the brand needed a complete overhaul rather than a mere cosmetic change. Extensive consumer research conducted by the company, revealed that parents had a growing concern about their children's nutritional and dietary needs. This insight was the foundation for the New Bournvita. A new fortified product was developed which included the 'Recommended Dietary Allowance' (RDA) which is designed to meet specific nutritional requirements of children. Contemporary packaging and a new communication strategy supported the new product. 29
  30. 30. ADVERTISING: During the '70s the communication centered on 'Good upbringing' and Bournvita became an essential building block for childhood."Goodness that grows with you" was the campaign idea that communicated this thought. In the 80's the focus shifted from 'Upbringing' to 'Intelligence' with the more aggressive "Brought up right, Bournvita bright" campaign, which was very successful during its time. In the early '90s all brands in the category provided purely physical benefits like nourishment, energy and growth. It was at this time that Bournvita decided to raise the bar by promising physical and mental benefits. This resulted in the famous “Tan Ki Shakti, Man Ki Shakti” Campaign which became an anthem for the brand. In the new millennium, keeping pace with the evolving mindsets of the new age consumers, Cadbury Bournvita is about arming consumers with Confidence to take on physical and mental challenges that nobody else can, resulting in one of the most successful advertising campaigns which is based on 'Real Achievers who have grown up on Bournvita'. Cadbury Bournvita has been advertising since the 1970. In the early years the positioning centred on 'Good upbringing' with Bournvita being an essential building block for children. The basic communication over the next twenty years shows how finely it has changed. In the 1980/82 years it was 'Goodness that grows with you'. By 1987, it had become the more aggressive 'Brought up right, Bournvita bright'. In the last decade of the 20th Century, competition between children was becoming intense and Bournvita was there with its 'Extra energy to stay ahead'. In the 1992/95 period 'Shakti har din ke champion ki' (Energy for the everyday champion) was its payoff line. In 2000, 'Bournvita poshan, sahi poshan' (Bournvita nutrition, right nutrition) encouraged consumption. In the following year 'Confidence kuch kar dikhane ka' (Confidence to achieve) became the reason to buy. The current Cadbury Bournvita positioning suggests that it contains specific ingredients that augment stamina and concentration in children. This positioning came about as a result of an extensive usage and attitude study as well as direct contact amongst consumers. It was developed to sharpen Bournvita's category benefit and create the entire competitive promise of health, energy - and the higher order payoff of confidence. The Agency that is handling Boosts’ advertising and promotions is JWT. 30
  31. 31. PROMOTION: To strengthen the brand proposition, Cadbury has set up Bournvita Nutrition Centres (BNC), where nutritionists propose the RDA percentage for a child. One of the most enduring relationships that Bournvita has with its consumers is the long-standing Bournvita Quiz Contest. Initially, the programme was on All India Radio in 1972, but was shifted to television in 1994. The programme, hosted by quizmaster Derek O'Brien, involves schools and children from all over India and aimed at promoting the quest for knowledge the contest currently has been running for over 10 years on satellite television. It has over 500 episodes to its credit, and today the contest directly reaches more than 11,25,000 students, in 4000 schools across 66 cities and 7 countries - UAE, Kuwait, Qatar, Oman, Bahrain, Nepal and India. . Quiz books were also printed and sold in the market as well as exhibitions in various schools. Bournvita has also sponsored other activities related to kids such as “Toon Cricket” in association with Cartoon Network. 31
  32. 32. Story Board For Bournvita TV Commercial (2005) Agency: O & M 32
  33. 33. The film opens on Prachura P, a chess The next moment Manasi Limaye, a champion, playing chess while sipping skating champion, arrives and takes the Bournvita. sipper. Without taking his eyes off the sipper Our little magician is unable to enjoy the Karuna Krishna, a magician, gets it by drink as Nitin Bawa, a riding champion, magic. snatches it from him. Cut to the shot of Siddharth D, a Unfortunately for the paraglider the paraglider, landing and grabbing away sipper gets dropped and lands straight in the sipper from our riding champion. front of our chess champion. 33
  34. 34. VO: “Confidence champions ko chahiye The ad ends on our little champions tan aur man ki shakti jo Bournvita se asking, “kya tum mein hai Bournvita milti hai. Ab naye pack mein.” confidence?” 34
  35. 35. PRINT ADS 35
  36. 36. PRODUCT: Enriched with 23 vital nutrients Complan is a nutritional supplement for children in its target segment of four to fourteen years. The brand is owned by Heinz which claims that Complan is formulated as per the World Health Organisation (WHO) guidelines suggested for growing children. Its 23 vital ingredients include macronutrients (such as proteins, fats and carbohydrates) as well as micronutrients (such as vitamins and minerals). The required amount of consumption of Complan in a day is 3 cups to reap its full benefits. It is also positioned as a nutritional supplement for : • All active people • Busy executives • Pregnant and lactating mothers • The aged Two cups is the requirement to reap the benefits of the product. A glass of Bournvita costs Rs. 15.89 ( Milk + Horlicks = Rs.5 + Rs. 10.89 ) MARKET: Since its entry into the Indian market in 1964 and as an over-the-counter (OTC) product since 1969, Complan has continuously reinvented itself in different flavours thereby also reaching adults who find it to be the perfect nutritional supplement. It has kept pace with a growing market which itself has evolved into a mature category. Complan is a key player in the MFD category. In fact in two of the largest category markets – Kolkata and Chennai – the brand outperforms competition on two image parameters: high on nutrition and children’s growth. (Source: Pathfinders Track) 36
  37. 37. Complan’s growth closely resembles its core consumers; it has been growing over the last twenty years to register a constant upswing in the market. In this period, it has doubled its market share while commanding a price premium in excess of 40% over its nearest competitor. There are two important reasons for the brand’s success in the market: • Complan’s availability in different flavours has endeared it to children. • Complan has been able to successfully establish itself in the mother’s mind, as a food essential for growing children. ADVERTISING: In the highly competitive Milk Food Drink category advertising and positioning have played defining roles. While other brands have constantly kept changing their product’s image from time to time, Complan has been consistent in its proposition with its ‘Complete Planned Food for Growing Children’ theme. A mother who is always anxious about the nutrition her child receives has remained central to its positioning. Complan has been associated with some of the most memorable advertising in India. Over the years, the communication campaigns have focused on strengthening the message of ‘Surprising Growth’ (as experienced by mothers of growing children) using both rational as well as emotional themes. ‘I’m a Complan Boy, I’m a Complan Girl’ remains one of the most loved and instantly recalled jingles even today. The advertising later took on a new avatar with the ‘But I’m growing mummy!’ jingle, signaling a significant shift towards directly addressing the mother’s anxiety about her child’s growth. This campaign was the turning point that imprinted on the consumers’ mind the brand’s core equity of ‘Growth’. 37
  38. 38. PROMOTION: In the late 1990s Complan introduced a rational argument with another landmark campaign - the ‘Health Show’. It also drove home a powerful message that though mothers might feel that they feed their children with all the right foods, nutritional gaps still exist that lead to day-to-day issues with their child’s health. Only Complan, the Complete Planned Food could effectively plug these nutritional gaps. The Health Show campaign was so effective in establishing the superiority of the brand that competition felt the need to adopt a legal route to put the brakes on it. The observation that children exhibit maturity at unexpected moments gave birth to one of the recent campaigns on holistic growth. The Economic Times Brand Equity consumer panel voted it as the Best in the category. The category’s focus has been across a range of target groups – from mothers to children to the entire family. Complan has been able to strike the delicate balance of establishing a connect with both the mother and the child. Till date, through its various programmes, Complan has been able to reach out directly to over 1.2 million mothers and children. One of the ways it has done this is by always associating itself closely with Durga Puja festival in West Bengal, which is one of its largest markets. To reach out to children it associates itself with sport – particularly cricket, tennis and squash. It started a Complan cricket initiative and tennis and squash open tournaments to help children realise their maximum growth potential. Promising students are coached and trained by experts. In this endeavour it has found able partners in people like Harsha Bhogle, Sandeep Patil and Ramesh Krishnan. There are many other initiatives Complan takes. The Complan Dictionary and the Complan Growth Tracker Chart, for instance, are fine examples of relationship building with the child. It also produces and distributes booklets on batting and bowling written by Harsha Bhogle. Every one of these efforts is designed to build a bond with children and come closer to them. The agency currently handling the advertising and promotional activities of Complan is Leo Burnett. 38
  39. 39. Story Board For Complan TV Commercial (2005) Agency: Leo Burnett 39
  40. 40. A kid steps into his bus and immediately Two girls also occupants of the same bus, starts laughing. laugh at something. The object of their ridicule is one of their Seeing this one boy advices the poor guy, mates hanging from the top bar of the "Sirf latkne se height nahin badegi, Mummy bus. ko bolo Complan pilaye." VO: "Apka ladla theek se khata VO: "Complan mein hai sau pratishat milk nahin, to zaroori poshan protein, teyis atya avashyak poshak tatva, aur protein kaise milega? jo de extra growing power." As the two friends meet up again, the With an enthusiastic, "Haan", adviser asks, "Latkna band? Kyon Mummy the shorty jumps up and shows off ne Complan dena shuru kiya na?" how much taller he is than his friend. 40
  41. 41. Speaking up excitedly, the boy says, "Ab VO: "Complan, extra growing power, main bhi Complan boy." mazedaar zaiko mein." 41
  42. 42. PRINT ADS 42
  43. 43. OTHER BRANDS After acquiring the brand from Jagatjit Industries, GSK relaunched it in June 2000. Mainly for kids, Maltova is a health drink which has been launched now with new formulation containing “Active Recghargers”, a combination of essential vitamins, minerals and carbohydrates. It was then again restaged in November 2004, with a new packaging and the communications and the promotions have been made more exciting by bringing in cartoon characters like Scooby Doo. Viva Health is a combination of 9 essential Vitamins [Vitamin A, D, B1, B2,, B6, B12 & C, Niacin and Folic Acid], Iron, Calcium and Phosphorus. The Company claims that Viva contains the natural goodness of milk, wheat and malted barley. The required amount of intake of the product per day is 2 cups. The new MILO is for children and claims to provide the energy they need to enjoy their active lifestyle. Packed with Actigen - E, a mix of vitamins and other key micro nutrients which help optimize energy release effectively. In addition its extra cocoa and rich malt makes it a chocolate flavored drink attracting more attention of the children. 43
  44. 44. Amul Shakti, unlike other wheat and barley based drinks, is a combination of Milk, Kesar (Saffron) & Almond. It also contains essential Amino Acids, Vitamins, Minerals and Micronutrients which the claims will help in building up internal immunity and maintaining good health besides also helping in maintaining intelligence and mental power. The required amount to be consumed is twice a day, and the product is targeted on Children, Sportspersons, Executives, Travelers, the Aged, Convalescents, the expecting and lactating mothers. The product is available in two flavors, that is, Kesar Almond and Chocolate. 44
  45. 45. CONSUMER SURVEY OBSERVATIONS • There were 50 respondents in total. • The consumer survey was conducted in Delhi at various shopping centres • The respondents were all mothers and the average age was 32 yrs. • 28% of the mothers were working and 72% were housewives • The average age of children was 8 yrs. The following were the responses of the 50 respondents who took this consumer survey: RESPONDENTS USING HEALTH FOOD DRINKS NO (8%) YES (92%) NO (8%) YES (92%) Out of the 50 respondents, 46 said they use these Health Food Drinks for various reasons and 4 they did not. This shows that a majority of the respondents use these Health Drinks. BRANDS PREFERRED 45
  46. 46. No. of Brands %age* Respondents Bournvita 19 41.7% Horlicks 9 19.6% (incl. Junior Horlicks) Complan 7 15.2% Boost 5 10.9% Amul Shakti 3 6.5% Maltova 2 4.4% Milo 1 2.17% Viva 0 Nil *Percentage calculated on the basis of respondents who use health food drinks, i.e. base equal to 46. Maltova (4%) Milo (2%) Amul Shakti (6%) Viva (Nil) Bournvita (38%) Boost (10%) Complan (14%) Horlicks* (18%) *Horlicks includes Horlicks Junior • Majority of the respondents, that is, 38% preferred Bournvita to any other brand. • Horlicks came in second with 19.6% but this includes the respondents preferring its variant Junior Horlicks. • A close third is Complan with 15.2% of the respondents favoring it. • Fourth most preferred brand is Boost with a preference of 10.9% among other brands. • Other brands like Amul Shaki, Maltova and Milo fare as the least preferred brands and not even one respondent chose Viva as its most preferred brand. PERCIEVED BENEFITS 46
  47. 47. NO. OF BENEFITS RESPONDENTS Extra Nutrition 21 (46%) Taste 14 (30%) Extra Nutrition + 6 (13%) Taste Color 3 (7%) Color + 2 (4%) Taste Most of the respondents said that these health drinks provide the extra nutrition required by their kids and 30% of the respondents said that it enhances the taste of milk which then appeals more to kids rather than just giving it plain. 13% of the mothers who give these health drinks to their kids said that it provides both nutrition and taste. Very few of the respondents, that is, 7% felt that it enhances the color and appeals more to the kids rather than the plain white color which a lot of kids hate. And just 4% respondents said that it enhances both the color and the taste. Perceived benefits of the health drinks according to the respondents Color + Taste Color Extra Nutrition + Taste Extra Nutrition Taste WHO CHOOSES THE BRAND ? 47
  48. 48. No. of respondents Mother 36 (78%) Kids 7 (15%) Father 3 (7%) Most of the times its the mother who chooses the brand for her kids, this we can see from the result of the survey with 78% of the respondents saying so. Then it’s the kids who have a say in choosing their own brands mostly where they are either awed by the ads of that particular brand or like the taste of it. Very few respondents replied that the father chooses the brand. This is obvious from the fact that it is mostly the mothers who take care of the nutrition in the family and especially of the kids. Who chooses the brand ? Father (7%) Kids (15%) Mother (78%) 48
  49. 49. ARE BRANDS CHANGED FREQUENTLY? Response No. of Respondents YES 41 (89%) NO 5 (11%) 41 respondents, that is, 89% said that they frequently change their brands. And most of them cited the continuous makeovers that the respective companies give to their brands as the reason. The respondents feel that every brand offers different benefits and they also keep changing the brands so that the kids don’t get bored of the taste of the present brand. So sometimes they give their kids two brands alternatively. Whether Brands are changed frequently No (11%) Yes (89%) 49
  50. 50. DOES BRAND VALUE/ IMAGE MATTER ? No. of Respondents YES 43 (94%) NO 3 (6%) Most of the respondents, that is 94%, said that they go by the brand image. That is the the older and famous the brand is the more appealing and trustworthy it is to them. Also because they have themselves been bought up on some of the brands like Complan, Horlicks, Maltova etc. makes them loyal to these brands. Does Brand value/image matter ? NO (6%) YES (94%) REASONS FOR BRAND PREFERENCE 50
  51. 51. No. of Reasons Respondents Nutritional claims 18 (39%) Taste 10 (22%) Advertisements 8 (17%) Price 7 (15%) Availability 2 (5%) Packaging 1 (2%) The more nutritional claims a brand makes, the more is its appeal to the masses, this can be seen from the fact that the percentage of respondents who go by nutritional claims is 39%. It is followed by taste with 22% respondents saying that the more the child likes the product’s taste the more they go for it. Some of the respondents also get attracted by the advertisements the Companies make for their product, and a major potion of viewers who watch these ads are kids who also get attracted by the way the brand is presented on television. Availability and packaging figured as the least important reason the respondents prefer a particular brand. Reasons for Brand preference Availability (5%) Packaging (2%) Price (15%) Nutritional claims (39%) Advertisements (17%) Taste (22%) 51
  52. 52. SOURCES OF BRAND AWARENESS No. of Sources Respondents TV Ads 31 (67%) Promotion 7 (15%) Word of Mouth 4 (9%) Print Ads 3 (7%) Outdoor displays 1 (2%) Radio 0 (0%) 67% of the respondents come to know about the brands through TV Ads. And 15% through various promotional activities these companies undertake, Cadbury’s Bournvita Quiz contest being the most effective and most recalled promotion activity by the respondents. References by friends and relatives (word-of-mouth) is the third major source through which the respondents become aware of the brand and its benefits. Very few people replied print ads (7%), outdoor displays (2%) and none replied radio. Sources of Brand Awareness Outdoor displays (2%) Print Ads (7%) Radio (0%) Word of Mouth (9%) Promotion (15%) TV Ads (67%) 52
  53. 53. DOES THE HEALTH DRINK USED LIVE UPTO ITS CLAIMS? No. of Response Respondents YES 27 (59%) NO 11 (24%) CAN'T SAY 8 (17%) Most of the respondents, that is, 59% do feel that the Health Drink they use has had a positive effect on their child’s growth, 24% feel otherwise and give taste enhancement as the reason for the continued use. Whereas 17% of the respondents couldn’t tell whether the health drink they were using had any effect on their child’s growth or not. Does the Health Drink used live upto its claims ? CAN'T SAY (17%) NO (24%) YES (59%) 53
  54. 54. HOW DOES THE CHILD HAVE THE HEALTH DRINK? No. of Response Respondents Milk 42 (91%) Raw 3 (7%) Water 1 (2%) Most of the children have the health drinks with milk, the percentage of people replying the same being 91%. Some children have them raw (7%) and one respondent has them by mixing it in the water. How does the child have the Health Drink Water (2%) Raw (7%) Milk (91%) 54
  55. 55. THE OTHER SIDE: The health drinks market boasts of the tallest corporate names like Glaxo, Cadbury, Nestle and Amul amongst others but do their products live up to the reputation of being packed with energy and being 'vital' to a child's growth? Many organizations have carried out their independent studies like Consumer VOICE who have tested the major brands of health drinks and have found out that there is a worrying quantity of sugar in all brands— constituting as much as 75% of the total weight of the product. Children under 14 years are a major target segment of these health drinks manufacturers. With each brand claiming to be more nutritionally-fortified than the other, and with the likes of Sachin Tendulkar and Virender Sehwag as the brand ambassadors, the health drinks market is as competitive as any. And it is also one of the few products that is aimed at a consumer segment of under-14 but actually marketed to mothers. But do they actually make a child grow taller, or give her the energy to speed past every school examination, or be a one-stop nutrition source. Essentially, malted milk foods, or malted milk-based foods are recommended to be added to milk to make milk more palatable, apparently because children detest the taste of milk. But brands like Cadbury Delite and Amul Shakti are definitely an over-load of sugar—their sugar content being 73.70% and 62% respectively (Consumer Voice survey). The following are the findings from various sources: • Complan had the highest concentration of protein at 19.23% followed by Amul Shakti at 16.83 • Bournvita has the least protein at 7.32% and Boost is marginally ahead of Bournvita at 8.55%. • Delite has the highest fibre content at 2.58%.Complan has the least fibre content at a bare minimum 0.53%. • All brands except for Boost, Viva and Anelene have a calorie count in the 400s, with Complan being number one. 55
  56. 56. CONCLUSION 1. The HFD market in value terms is around Rs.1, 400 crores and in volume terms around 90,000 tonnes per annum. Out of the 50 respondents, 46 said they use these Health Food Drinks for various reasons. Hence it can be concluded that Health Food Drinks Market is very vast in the country and with the increasing awareness about heath and nutritious food among parents the market will continue to grow. 2. Extra Nutrition and Taste are the two major perceived benefits by the customers. Most of the respondents said that these health drinks provide the extra nutrition required by their kids and 30% of the respondents said that it enhances the taste of milk which then appeals more to kids rather than just giving it plain 3. Most of the times it’s the mother who chooses the brand for her kids, this we can see from the result of the survey with 78% of the respondents saying so. Very few respondents replied that the father chooses the brand. This is obvious from the fact that it is mostly the mothers who take care of the nutrition in the family and especially of the kids. 4. 41 respondents, that is, 89% said that they frequently change their brands. And most of them cited the continuous makeovers that the respective companies give to their brands as the reason. The respondents feel that every brand offers different benefits and they also keep changing the brands so that the kids don’t get bored of the taste of the present brand. 5. Brand Value/Image plays an important role, That is the older and famous the brand is the more appealing and trustworthy it is to them. 6. 67% of the respondents come to know about the brands through TV Ads. And 15% through various promotional activities these companies undertake, Cadbury’s Bournvita Quiz contest being the most effective and most recalled promotion activity by the respondents 7. Most of the respondents, that is, 59% do feel that the Health Drink they use has had a positive effect on their child’s growth, 56
  57. 57. Limitations of the study 1. Unavailability of some data as all information is not available on all the brands though recognized in the HFD market but not having a major share in it. 2. The surveys undertaken are limited to only to Delhi region. And, India being a country of diverse cultures has different sets of consumers in different parts of the country which affects their thoughts and preferences. So the people outside Delhi may differ in their responses to the survey questions. 3. Due to the cut-throat competition in the HFD market and changing needs of the consumers, the companies keep altering their products and their advertising and promotion strategies thereby making it difficult to incorporate the impact of these changes on the consumers after the surveys have been done. 57
  58. 58. Bibliography  Company Database (McCann Healthcare - A division of McCann Erickson India Pvt. Ltd.)  Philip Kotler & Kevin Lane Keller (Marketing managent, 12th edition, Prentice Hall), Chapter -7 Conducting Marketing and Research and Forecasting Demand  www.agencyfaqs.com  www.hindubusinessline.com  www.fnbnews.com  www.indiantelevision.com  www.nestle.in  www.cadburyindia.com  www.gsk-ch.in  www.domain-b.com  www.exchange4media.com  www.sify.com  www.nutraingredients.com  www.etfoodprocessing.com 58

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