project mktg

7/31/2019 Project Mktg

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Project

On

A STUDY OF MARKET SUCCESS OF HEALTH DRINKS-

BOURNVITA, COMPLAN AND HORLICKS

Submitted towards the partial fulfillment of

The degree of M.B.A. - M.B.L.

For the course of

MARKETING MANAGEMENT

Submitted by: Submitted to:

Anupam Sain Dr. Archi MathurMBA-MBL (2nd SEM) Asst. Professor & Asst.Dean,Roll no. 192 Faculty ofManagement,NLU, Jodhpur NLU, Jodhpur


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CONTENTS

SERIAL NUMBER CHAPTERS PAGE

NUMBE

R

EXECUTIVE SUMMARY 3

OBJECTIVES 4

RESEARCH METHODOLOGY 5

CHAPTER 1 INTRODUCTION:MARKET SUCCESS AND

PARAMETER AFFECTING MARKET SUCCESS

6-7

CHAPTER-2 INTRODUCTION: HORLICKS, BOURNVITA,

COMPLAN

8-10

CHAPTER-3 DATA TABULATION 11-17

CHAPTER-4 ANALYSIS 18-20

CHAPTER-5 CONCLUSION 21

CHAPTER-6 RECOMMENDATIONS 22

A. ANNEXURE 23-28

B. BIBLIOGRAPHY. 29

EXECUTIVE SUMMARY

2 PAGE NATIONAL LAW UNIVERSITY


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This work deals with various parameters affecting market success of health drinks, specifically

Bournvita, Complan and Horlicks.

Chapter one deals with the concept of market success in general as well various parameters

affecting market success.

Chapter two deals with introduction of various organizations/brands selected for study.

Chapter three provides data collected through field study and graphical representation of that data.

Chapter four provides analysis of collected data and to find out effect of various parameters on the

market success of Bournvita, Complan and Horlicks.

Chapter five provides conclusion of this work.

Chapter six provides various recommendations about strategies to these three brands viz.

Bournvita, Complan and Horlicks.

RESEARCH OBJECTIVES



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1. To identify and analyse the parameters leading to market success of health drinks.

2. To study the impact of these parameters on the success or failure of health drinks.

3. To suggest strategies, to the health drink industry, which will make them more

successful.

RESEARCH METHODLOGY



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My research methodology will be doctrinal as well as non-doctrinal in nature. The data will be

both primary as well as secondary. The survey will be conducted by the means of questionnaire in

which various questions on the topic will be posed. Information would be collected and data would

be tabulated, analysis and recommendation will be made.

CHAPTER 1

INTRODUCTION TO MARKET SUCCESS AND PARAMETERS

AFFECTING MARKET SUCCESS



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A market is the set of actual and potential buyers of a product. Success is a relative aspect for

everyone. We can define success as an event that accomplishes its intended purpose. As far as

the intention of company is taken into consideration it is to achieve good profit, overtake

competitors, winning additional market share, achieve consumer loyalty, to have a good reputation

in the society. So market success of a company will not only depend only upon how much profit

does it earns but also upon how loyal its customer are, what is the reputation of the company in the

society, how is it handling the competition etc.

There may be several parameters which can affect a companys market success. The list of these

parameters can never be exhaustive because new parameters keep adding in this list as the new

dimensions of market emerges.

These parameters are related to what product company is providing, on how much price is it

providing, how is it providing, how is it promoting, when is it providing, where is it providing,

what value is this product containing, what is the image of the company in the market, how loyal

its customer are, how much trust the customer having in the company etc.

The parameters related to product are as following-

Quality of product

Value attached with the product

Brand name

Packaging

Appearance etc.

The parameters related to price are as follows-

Pricing strategy

Discounts

Margins etc.

The parameters related to place are as follows-

Channel members

Channel motivation



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Market coverage

Location

Availability

Transportation Inventory levels etc

The parameters related to promotion are as follows-

Advertising

Sales promotion

Public relation

Message etc

The other parameters are as follows-

Image of the company

Trust of the consumer

Brand loyalty of the consumer

Stimulation to purchase by near environment etc

CHAPTER 2

INTRODUCTION: BOURNVITA, COMPLAN, HORLICKS



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BOURNVITA1-

Bournvita is a brand of health drink launched by Cadbury-Fry (India). Cadbury was incorporated

in India on July 19th, 1948 as a private limited company under the name of Cadbury-Fry (India).

Cadbury Bournvita was launched during the same year. 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.

Throughout its history, 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.

The brand has been an enduring symbol of mental and physical health ever since it was launched in

1948. It is hardly surprising then, that Bournvita enjoys a major presence in the Malt Food market.

Given its market share of 17%, Cadbury Bournvita reaches across hundreds of cities, towns and

villages through 3,50,000 outlets in India. In the 1980 Moscow Olympics, Cadbury Bournvita was

the official health drink for the Indian team. 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.

Cadbury now offers two options to capture this appeal: Cadbury Bournvita, with its popular

chocolate taste, and its latest offering, Cadbury Bournvita 5 Star Magic, leveraging the rich

chocolate and caramel flavor of Cadbury 5 Star. Cadbury Bournvita advertising has moved withthe times to reflect the changing needs of the consumers.

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.

1Website visited on 15/01/09



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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'2.

COMPLAN3-

Complan is a major brand in the 1200 crore malted beverage segment in India. A brand once

owned by Glaxo was acquired by HJ Heinz in 1995. Heinz is a $9.2 Bn conglomerate that has

operations in 200 countries and is famous for its Ketchups.Complan has been established aroundthe world as a trusted provider of nutritional supplements for more than 50 years. Complan was

first developed by Glaxo in the 1950s as a powdered food for use in hospitals. When reconstituted

with water, it provided all essential nutrients and could be fed to patients through a tube, as well as

by mouth. Its name is derived from COMplete PLANned nutrition.

Following its success in the hospital environment, Complan developed as a product suitable for

outpatient care and eventually became available for purchase in pharmacies and shops.

Complan has continued to develop over the years. Flavored varieties were first introduced in the

1970s and the range has since expanded and also includes savory varieties. By 1985, nutritional

thinking had advanced and Complan was again reformulated to reflect this. The quantity and type

of fat content was revised in line with a Department of Health report on diet and cardiovasculardisease

All Complan sold in the UK is manufactured in the UK. There are variations in product make-up

and methods of manufacture around the world. But wherever it is made, Complan consistently

offers balanced nutrition in line with local nutritional requirements. Today Complan is focused on

providing nutrition products suitable for all members of the family, through three core products:

Complan (balanced nutrition for the family), Casilan (higher protein for sports performance and

illness recovery) and Complan Shake (to tackle clinical malnutrition). Another interesting strategy

was the launch of Complan sachet priced at Rs5 for 15gm Complan.





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HORLICKS4-

Horlicks is the name of a company and of a malted milk hot drink, which is claimed to promote

sleep when consumed at bedtime. It is manufactured by GlaxoSmithKline in the United Kingdom,

India and Jamaica.

By far, the biggest market for Horlicks is India, where it has traditionally been marketed as The

Great Family Nourisher. New products have been developed specifically for India, such as

alternative flavours and special formulations for young children and breast-feeding mother. Claims

by GlaxoSmithKline India in 2005 that Horlicks encourages growth and alertness in children have,

however, caused some controversy. Horlicks in India is one of the most trusted brands as

independently measured by leading publications. Horlicks is available in many different variants in

India.

Junior Horlicks 1-2-3 is a large extension that is specially designed for pre-school children.

Horlicks is also available as biscuits. In 2005, Horlicks Lite was also introduced targeting older

consumers and does not contain any cholesterol or added sucrose.

In the UK, GlaxoSmithKline attempted a rebrand of the product in 2004 for younger consumers by

redesigning the packaging and publicizing its consumption at a number of trendy London venues

such as the Groucho Club.

In some countries, such as the Philippines and Malaysia, Horlicks was also sold as milky-

chocolate-flavoured disks in paper packets, which were then eaten as candy. Horlicks remainspopular in Malaysia and Singapore where it packed under licence from SmithKline Beecham and

sold in large glass and tin containers. It is also available in 1.5 kg refill packs.

In Hong Kong, Horlicks is known better as a cafe drink than as a sleeping aid. It is served at cha

chaan tengs as well as fast-food shops such as Cafe de Coral and Maxims Express. It can be

served hot or cold, and is usually sweetened with sugar. It is almost always made with warm milk,

and ice is added to it if a cold drink is desired.

CHAPTER 3DATA TABULATION

Retailer-10

Consumer- 20

4Website visited on 16/01/2009.

http://en.wikipedia.org/wiki/Sleephttp://en.wikipedia.org/wiki/GlaxoSmithKlinehttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Jamaicahttp://en.wikipedia.org/wiki/Groucho_Clubhttp://en.wikipedia.org/wiki/Groucho_Clubhttp://en.wikipedia.org/wiki/Philippineshttp://en.wikipedia.org/wiki/Malaysiahttp://en.wikipedia.org/wiki/Malaysiahttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Caf%C3%A9_de_Coralhttp://en.wikipedia.org/wiki/Caf%C3%A9_de_Coralhttp://en.wikipedia.org/wiki/Maxim'shttp://en.wikipedia.org/wiki/GlaxoSmithKlinehttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Jamaicahttp://en.wikipedia.org/wiki/Groucho_Clubhttp://en.wikipedia.org/wiki/Philippineshttp://en.wikipedia.org/wiki/Malaysiahttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Caf%C3%A9_de_Coralhttp://en.wikipedia.org/wiki/Maxim'shttp://en.wikipedia.org/wiki/Sleep


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Sales figures (for 500 gm pack) given by retailers-

Reasons given by retailer about the success of particular health drink-


Health drink 2006 2007 2008

Bournvita 89 90 90

Complan 53 56 50

Horlicks 18 21 25


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Schemes-

Only Horlicks provides free gift scheme to the consumer. No other brand is providing any scheme

to any one i.e. Customer or Retailer.

Brand name- Customer loyalty-

Suggestion of retailer-

Bournvita 50%

Complan 20%

Horlicks 30%



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Reason for this suggestion-

They are old customers and seek advice 30%

The margin on suggested product is good --

I personally feel that this particular brand is good 50%

Giving good advice to customer will make them

loyal towards me

20%

Parameters as quoted by retailers which cause success or failure of any health

drink from aforesaid-



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Whether the consumer comes decided about the purchasing of particular

health drink (According to maximum responses shown by retailers)-


Product quality 30%

Advertisement provided on TV 20%

Stimulation by near environment 20%

Brand loyalty/Brand name 20%

Pricing strategy 10%


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Consumer prefers-

Bournvita 50%

Complan 30%

Horlicks 20%

Reasons given by consumers for selection of particular health drink-

Following table is based on maximum responses shown by consumer for a particular health drink

regarding the reason because of that consumer purchases that product-

Brand Strength (Top 3)Bournvita (50%) 1. Brand name is good (60%)



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2. Product is better (20%)

3. Price is low (10%)

Complan (30%) 1. Ive been using it from a long time

(50%)

2. Trust on product (30%)

3. Advertising (on TV) is good (10%)

Horlicks (20%) 1. Advertising (on TV) is good (50%)

2. My child insist to purchase (20%)

3. Trust on the product (20%)

Do you hesitate in changing brand-

Reasons of hesitation-


Yes 80%

No 20%

Reason Response

Brand name 40%

Trust 20%

Quality of product 20%

Resistance by

user

10%

Price 10%


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Will you postpone your purchasing if particular brand is not available-

Role of retailer in purchasing decision-

He dont play any role 70%


Yes 80%

No 20%


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He suggests particular health drink(please mention name also) and I purchase that 10%

He tells benefits of different health drinks but the choice is mine only 20%

CHAPTER 4

ANALYSIS

Analysis of questionnaire asked to Retailer-

Q. 1- What are the sales figures for following health drinks?

Analysis- The answers given by most of the retailer clearly shows that Bournvita is a successful

market leader. Sale of Bournvita is almost constant from last 3 years. Sale of complan is

fluctuating. Interesting finding is that sale of Horlicks is increasing from last 3 years.

Q.2- The reasons of success of particular health drink?



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Analysis-The analysis of this question clearly shows the reasons why Bournvita is a market leader

and why sale of Horlicks is increasing from last 3 years.

Advertising part of Bournvita is quoted medium by retailer because it is having very good brand

name so they dont need to advertise so aggressively. But the advertising war of Complan and

Horlicks is certainly attracting customers. Advertising of Horlicks is considered as best among

these three brands.

Product characteristics of these three brands are almost the same, except packaging par. Packaging

of Horlicks is considered to be best among these three brand because of various designs of packs

(refer to Horlicks Women which is having a famine shape) but taste and smell of Horlicks are

not considered as good as other two brands.

As far as schemes considered none of these brands providing any schemes to retailer or consumer

except Horlicks, which is providing free gifts to customer in the form of pencil box etc.

Brand name as well as consumer loyalty of Bournvita is best than both of other brands.

Q.3- Parameters responsible for market success-

According to retailers the main parameter for market success of health drinks is their Quality

because today consumer is very health conscious. Other important parameters which are having

equal importance in eyes of retailers are as follows-

Advertising on TV Stimulation by near environment

Brand loyalty as well brand image

Pricing strategy was also considered as one of the important parameter by the retailer.

These parameters can be compared with the sale of products and it can be seen that the main reason

of being Bournvita as a market leader is its quality as well as brand name and brand loyalty of

consumers. The reason of lagging behind of Complan is mainly its high price but it is still above

Horlicks because loyalty of consumers attached to it. The Horlicks is not selling as much as above

both brands but sale of Horlicks is increasing from past years because of its good advertisements as

well as good quality of product.

Q.4- Do you prefer to keep any particular brand with you?

Q.5- Why do you give preference to this particular brand only?



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Q.8- which brand do you suggest to customer?

Q.9- What is the reason of assisting the consumer?

Analysis- 90% retailers preferred to keep Bournvita with them because of its high sales (10% did

not respond). On the question of suggestion, the answers were somewhat interesting and 50%

retailers suggest Bournvita, 30% Horlicks and 20% Complan because most of them were using that

particular product at home so they are recommending the same. Another interesting finding was

that the margin provided by these companies to retailer is almost same in a range of 9-10%, so this

is not a reason of suggesting particular brand. The other reason to suggest a good brand to the

consumer is that the consumers are coming to their shops from a long time and use to seek advice.

Another main reason is that retailers want to make a customer loyal towards their shop so they give

them advice about good product.

Q.6- Do consumer come decided or they decide after coming to your shop that which brand to purchase?

Analysis- retailer said that 90% customers came decided about which brand is to buy and only 10% (who

are usually new consumer of health drinks) seeks advice.

Analysis of questionnaire asked to Consumers-

Q.1, 2- Which health drink does you prefer for you and your children and reasons?

Analysis- Most of the customers (50%) replied that they will prefer Bournvita over other two

brands because of its Brand name. Other main reasons for selecting Bournvita are low price and

good product. Some consumers also stated that they purchase Bournvita because they are using it

from a long time.

Second most desirable health drink is Complan (30%). Consumer stated that they are using it from

a long time and dont want to change, they are having trust on this product. Few consumers said

the advertisement on TV, Brand name and recommendation by others are also the reason of

purchasing.



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Horlicks was preferred by only 20% of consumes. These 20% stated the reason of purchasing as

the advertisement on TV is good and their children insist them to purchase Complan. Trust was

also a factor responsible for purchasing. Few consumers (10%) stated that they purchase Horlicks

because of gift items associated with it.

Q.3, 4- Do you hesitate in changing brand and reason?

Q.5- What is the reaction of your children when you change the brand?

Analysis- Most of the consumers (80%) stated that they will hesitate in changing the brand because they

are to the brand name of that product. Other reasons for this hesitation are trust of consumer, quality of

the product, high price of other substitutes. Resistance by user i.e. mainly the children is also a reason

stated by the consumers.

Q.6- Will you postpone your purchase if the particular brand is not available?

Analysis- Analysis of this question shows the brand loyalty of consumers. 80% of the consumers stated

that they will wait for their particular brand. This is also a big reason for success of particular health

drink.

Q.7- What role does the retailer plays in your purchase of health drink?

Analysis- Most of the consumers (70%) stated that retailer plays no role in their decision of purchasing.

20% said that retailer tells benefits of all health drinks but the choice made is independent. Only 10% of

consumers agreed on the fact that they purchase what the retailer suggests them.

CHAPTER-5

CONCLUSION

After studying these findings it can b concluded that market share of Bournvita is far more than

Horlicks and Complan. There are various reasons behind success of Bournvita and relative low

success of Complan and Horlicks.The main reason behind success of Bournvita is the brand name of it. The other reasons behind

success of Bournvita are its low price as well good quality of product. It doesnt mean that other

health drinks are miserably failed in the market. They are also having good market share and

achieved a good success in past few years. Both other brands (Complan & Horlicks) are having

their own USPs and Bournvita is also having drawbacks like-



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Negligible channel motivation activities

No schemes for consumers

Complan is an old brand so people who are consuming it from past many years keep consuming it

and are loyal towards it. In past years Complan was not very aggressive about its advertising

strategies but now a day its advertisement can be seen on TV very frequently. The other reason of

compaln to become popular is the trust of the consumer.

Success of Complan is comparatively lower because of following reasons-

Very high price of its products

Negligible activities for channel motivation.

No schemes for consumers

Low investment on advertising and promotion etc.

Horlicks is also becoming popular these days as shown by the sales figure given by retailers. The

main reason of this success is the aggressive advertisement which are attracting the new

generation. Trust on the brand is also one of the factors responsible for increasing market share of

this brand.

Taste and smell are not good

Rare schemes for consumers

Negligible channel motivation activities

CHAPTER-6

RECOMMENDATIONS

There can not be common recommendation to all the brands because of their different USPs and

drawbacks.

Recommendations to Bournvita-

It is already a market leader so it is having a good brand name. It can launch some other

energy products along with this health drink.

It can start promotional schemes that will attract children segment towards them.



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It can once again start some programme like Bournvita Quiz Contest which will promote

it as good for mind.

It can sponsor some sports competitions and sports tournaments which will promote its

image as good for health.

It can improve its channel motivation activities and can provide channel member some

schemes like rebate, discount, foreign tour etc.

Recommendations to Complan-

It can cut cost of its product without affecting quality, which will reduce the market price

of its products.

It can promote its channel members through various schemes.

It can launch promotional activities for children and can provide some good gifts for

children along with its products.

It can make its advertisement more attractive by celebrity endorsement.

Recommendations to Horlicks-

It can improve its taste and smell by launching some new variants in the market.

It can also improve its channel motivation activities.

It can also launch some promotional activity for children.

QUESTIONNAIRE-

To retailer-

Q. 1- What are the sales figures for following health drinks-

Health drink 2006 2007 2008

Bournvita

Complan

Horlicks



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Q.2- what are the reason you thinks about the success of particular health drink?

Give rating from 1-5

1=worst 2=bad 3=medium 4=good 5=best

Reasons Horlicks Complan Bournvita

Advertising-

Signs and displays

Classifieds in news

papers and magazines

Advertising on Radio

and TV

Online advertising

Pricing

Product-

Taste

Smell

Nutritional value

Packaging

Schemes for customers

Free gift

Foreign tour

Scholarship to students

Discounts

One buy one free



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Any other please

specify

()

Schemes for dealers

Discounts

Rebate

Foreign tour

Free gift

Any other please

specify

(..)

Brand name

Customer loyalty

Q.3- What, according to you, are the parameters which decides success of any health drink in the

Indian market?

Q.4- Do you prefer to keep any particular brand with you? (Name the brand)

Q.5- Why do you give preference to this particular brand only?



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Q.6- Do consumer come decided or they decide after coming to your shop that which brand to

purchase?

They come decided

They decides after coming to shop

Q.7- Do you play any role in consumers decision making?

Yes

No

Q.8- If yes, then which brand do you suggest to customer?

Q.9- What is the reason of assisting the consumer? Put tick mark in front of appropriate reason.

They are old customers and seek advice

The margin on suggested product is good

I personally feel that this particular brand is

good

Giving good advice to customer will make them

loyal towards me

To Consumers-

Q.1- Which health drink do you prefer for you and your children? (Put tick mark in front of any of

the following)

Bournvita

Complan

Horlicks

Q.2- What are the reasons of selecting this particular health drink?

Reasons Tick mark



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Advertisement is

good

Signs and displays

Advertising onRadio and TV

Classifieds in news

papers and

magazines

Advertising on

Radio and TV

Online advertising

Price is low

Product is better

The taste is good

The smell is good

This is very healthy

Schemes are good

Free gift

One buy one free

Scholarship to

students

Discounts

Foreign tour

Any other

Brand name is good

Ive been using it from

a long time



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My child insist to

purchase this only

This brand is easily

available

Somebodyrecommended this

brand

Ive trust on this

brand

Q.3- Do you hesitate in changing brand?

Yes

No

Q.4- If yes, then reason?

Q.5- If no, then what is the reaction of your children when you change the brand?

Q.6- Will you postpone your purchase if the particular brand is not available?

Yes

No

Q.7- What role does the retailer plays in your purchase of health drink? Put tick mark

He dont play any role



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He suggests particular health drink(please mention

name also)

He tells benefits of different health drinks but the

choice is mine only

BIBLIOGRAPHY

WEBSITES-

1. http://www.horlicks.co.uk

2. http://www.gsk-ch.in

3. http://www.cadburyindia.com

4. http://www.complanfoods.com

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