Final Report

A report on the various aspects of Indian
Health Drink Market.

Health Drink
Indian Market Study
Health Drink, Indian Market
1

Contents
Members ..................................................................................................................................................... 4
Health Drink ................................................................................................................................................ 5
Abstract ................................................................................................................................................... 5
Indian and Health Drink .......................................................................................................................... 6
Major players in the HFD segment in India are as follows ...................................................................... 6
Brands Tested .......................................................................................................................................... 7
Prospects of Indian HFD market .............................................................................................................. 9
Consumer Behaviour(HFD purchase) ...................................................................................................... 9
Boost.......................................................................................................................................................... 10
Brand History ......................................................................................................................................... 10
The initial marketing strategy ............................................................................................................... 10
SWOT Analysis ....................................................................................................................................... 12
Strengths ........................................................................................................................................... 12
Weaknesses ....................................................................................................................................... 13
Opportunities .................................................................................................................................... 14
Threats ............................................................................................................................................... 14
Competitor Analysis .............................................................................................................................. 15
Boost vs Milo ..................................................................................................................................... 15
Boost vs Horlicks................................................................................................................................ 15
Boost vs Bournvita ............................................................................................................................. 15
Indirect Competitors ......................................................................................................................... 15
Market Segmentation, Targeting and Positioning ................................................................................ 16
Segmentation .................................................................................................................................... 16
Target Market .................................................................................................................................... 16
Positioning ......................................................................................................................................... 16
Critical Success Factor ........................................................................................................................... 17
Brand Name ....................................................................................................................................... 17
Cost Factors ....................................................................................................................................... 17
Changing Trends ................................................................................................................................ 17
Increasing consumption .................................................................................................................... 17
Increasing immigration ...................................................................................................................... 17
2

Marketing Objectives ............................................................................................................................ 18
Marketing Mix Strategies ...................................................................................................................... 18
Product, Price, Place and Promotion................................................................................................. 18
Celebrity Endorsements ........................................................................................................................ 20
Personal selling .................................................................................................................................. 20
Direct marketing ................................................................................................................................ 20
Points of Purchase ............................................................................................................................. 20
Budget ............................................................................................................................................... 20
Implementation ................................................................................................................................. 20
Evaluation and Control ...................................................................................................................... 21
Bournvita ................................................................................................................................................... 22
Early History .......................................................................................................................................... 22
SWOT Analysis ....................................................................................................................................... 24
Strengths ........................................................................................................................................... 24
Weakness .......................................................................................................................................... 24
Opportunities .................................................................................................................................... 24
Threats ............................................................................................................................................... 24
Segmentation, Target and Positioning .................................................................................................. 26
Segmentation strategy ...................................................................................................................... 26
Targeting............................................................................................................................................ 27
Positioning ......................................................................................................................................... 27
Packaging ........................................................................................................................................... 30
Complan .................................................................................................................................................... 31
Early History .......................................................................................................................................... 31
Brand Trust Ratings by Trust Research Advisory ................................................................................... 32
Market segments | Target markets | Positioning ................................................................................. 33
Segmentation .................................................................................................................................... 33
Positioning And Targeting ................................................................................................................. 33
3

MARKETING MIX ................................................................................................................................... 35
Product .............................................................................................................................................. 36
Pricing ................................................................................................................................................ 39
Place .................................................................................................................................................. 39
Promotion .......................................................................................................................................... 39
Future Strategy .................................................................................................................................. 41
Horlicks ...................................................................................................................................................... 42
Early History .......................................................................................................................................... 42
Marketing Strategies ............................................................................................................................. 49

4

Members
F14091 - M. Krishna Nishand -> Indian Health Drink
F14092 - A. Madonna Preethi -> Bournvita Health Drink
F14093 - L. Maduram Noel Royan -> Boost Health Drink
F14094 - S.J. Marie Gerald Prabakaran -> Bournvita Health Drink
F14095 - E. Mark Linekar -> Complan Health Drink
F14096 - Mathew Joseph -> Complan Health Drink
F14097 - Nilaeshh Senthilnathan -> Industry Study
F14098 - Papitha Mohan -> Horlicks Health Drink
F14099 - V. Prathyusha -> Horlicks Health Drink
F14100 - T. Rahul -> Industry Study
5

Health Drink
Abstract
The health drink is oral liquids which are classified as elixirs or lemonades and so
on, which are peculiar to Japan and differ from other liquids to glass a dose of
drug. It has mainly been divided into two classes by glassed volume (dosage) in
the bottle. One class is the drink tonic which is the capacity of 100 ml and another
is the mini-drink tonic which is 50 ml and less. In addition, oral liquid glassed with
an ampule is called the ampule tonic. Such drugs were thought to appear after
World War II and have been widely known since 1960. However, tonics which had
consisted of recipes like the present health drink were shown to exist before World
War II. Thus, it was considerable that such prescription formulas were also applied
to the ampule tonic and drink tonic. On the other hand, one of the important
problems with health drugs was how to make their taking easy in its development.
Further, it was necessary to add to acid antiseptic and high content of sugar etc.,
because the liquids generally had been putrescible. It might be one of the reason
for their appearances that it was allowed to produce a liquid which was stabler and
made its taking easier to be released from the above limit by the introduction of a
dose-glassed liquid. In 1960, the ampule tonic quickly became popular and the
drink tonic followed. It was probably caused by changes on the standard and style
of living involved the enhancements of the labor time, purchasing power and sense
on the health and active propaganda of the manufacturers. In this way, the market
has satisfactorily expanded. However, because such medicines liked beverages
appeared, it was difficult to distinguish their differences since 1965. Therefore, the
Ministry of Health and Welfare has performed some administrative guidance. In
1978, it regulated new approval of the production of 100 ml drink tonics, which led
to the appearance of the mini-drink tonic. Its market rapidly expanded since 1985.
In 1991, its scale reached about 200 billion yen on both drink tonics and the sale
volume was 20% at drug stores in Japan. The health drink is supporting the
economic foundation of drug stores at present.

6

Indian and Health Drink
Indians are now more and more health conscious. While trying to analyse the
Indian behavior towards healthier food and beverages, the following reasons were
found
High level of consumerism backed by rising income level
Exposure to wide product offerings in developed markets
Higher rate of urbanization
Rising health issues owing to changing lifestyle
Aggressive marketing by health food and beverages brand
Rising concerns among consumers about efficacy of traditional food
Two faced nutritional problems one due to excess and other from
deficiency
Health-food drinks form a major part of the health food industry. Below are certain
points with respect to the HFD (health-food drinks) industry in India.
HFDs are divided into two categories White powders (Horlicks, Complan
etc) and Brown powders (Bournvita, Boost etc) with a share of 65% and
35% respectively.
Health drink powders consumed as milk substitute & nutrient boosters
Indias Health-drinks market pegged at around 4000 crores (90000 tonnes)
and expected to reach approximately 8000 crores by 2016
India is worlds largest malt-based drinks market with a share of almost
22% in the worlds total retail volume(Malt is germinated cereal grains that
have been dried in a process known as malting)

Major players in the HFD segment in India are as follows
GlaxoSmithKline
o Horlicks (With variants)
o Boost
o Maltova
o Viva
Kraft-Cadbury (Mondelez International)
o Bournivita (With variants)
Heinz
o Complan (With variants)
Amul
o Nutramul
o Pro

7

Brands Tested
A market survey of five metro cities preceded the short-listing of brands and
determination of testing parameters all of which were finalized by the
Ombudsmen Committee. Comparative testing would be done on 12 regular-selling
brands of health drinks, each falling within one of three broad categories malt-
based with cocoa, malt-based without cocoa and proprietary foods. (As per Section
22 (4) of the FSS Rules 2011, proprietary or novel food means an article of food
for which standards have not been specified but is not unsafe.)

8

9

Prospects of Indian HFD market
Indian HFD market is a growth market with tremendous opportunities.
India has one of the youngest population in the world making it a long-term
HFD market (TG)
Still considered as one of the growth markets in terms of rising income
reinforcing the long-term
prospects
Rising awareness among consumers due to exposure to developed markets
(More people than
ever travelling abroad, foreign TV channels, global offerings) adds to TG
everyday
Due to foreign origin of most of the HFD products (mostly developed
markets) which have stricter
Laws related to food safety, the products dont need much tweaking(&
expenses) in that aspect

Consumer Behaviour(HFD purchase)
Consumers attitudes regarding HFD purchase is largely influenced by quality
attributes of the product
No direct relation between brands and their sensory perception
Price, quality attributes and sensory perceptions are three major factors that
makes a brand in the eyes of consumer better than other
Value for money(Nourishment vs price), price and packaging are ranked in
the same order for influencing purchase decision
Brand loyalty stands out as a very significant factor in HFD purchase

10

Boost
Brand History
Boost is one of the major players in the Rs 1400 crore Indian Health Food Drink
(HFD) market. The brand was created in 1975 by the company R&D team and test
marketed in 1976. The brand became national in 1980's. Glaxo rules the Indian
HFD market with a share of around 64%. The market is ruled by Horlicks and the
leader is flanked by flanker products Maltova and Viva.
Boost takes on Bournvita from Cadbury's which is the market leader in the brown
powder segment. The HFD market is having two segments: White powder segment
and brown segment. The market is dominated by white powders. Boost is a malt
milk additive with the flavor of chocolate. Boost has a share of around 12% in the
HFD market.

HFD is targeted at children aged 5-18. The market is huge since this is the age
group that demands some kind of energy drink. The kids are active and playing
during this age and the pressure is on the home maker to keep the energy level of
the kids high using some drinks.

Boost is positioned as an energy
drink. The tagline "Boost is the
secret of my energy" has remained a
blockbuster all through these years.
The tagline has highest recall among
the TG. Boost is also the first HFD
brand to be endorsed by a celebrity.

The initial marketing strategy

After the initial growth, the brand landed in the mature stage of PLC during 1980's
with sales plateauing. The brand repositioned itself through a careful planned
strategy backed by consumer insight. The brand realized that kids are strong
influencers of the purchase process for such products and once kids get hooked
onto such drinks, brand loyalty can be assured. GSK also identified cricket as the
vehicle to Boost the Sale of Boost.

During 1980's Kapil dev was roped in as the brand ambassador for Boost and as a
cricketer, Kapil was considered an Icon by many. Boost got the energy from Kapil
and GSK had found the success mantra.

During 1990's Kapil gave the baton to Sachin. Sachin endorsed this brand when he
was in his teens. During those times, the ads showed both Kapil and Sachin
together endorsing the brand and thus ensured that the transition is smooth. From
1990-present, Sachin has been endorsing this brand. I think Boost and Sachin hold
the record for longest association between a brand and celebrity at least in India.
11

The kid who starred with Kapil for the ad was Nikhil Chopra who later played for
India in 2000, the brand also roped in Sewag to endorse the brand. At that time,
Sewag and Sachin was at fire as the opening pair.

Boost was innovative not only in the promotion front but also in product
improvements. in 2002, as a part of its repositioning, the brand came out with
Power Boosters : which contains Copper and Biotin. It was first of its kind in this
segment. Boost also innovated in packaging. Over these years, the packaging
became contemporary and stylish to reflect the changing consumer preferences.
A brand will become successful only if the owner invests in the brand for the long
term. Boost is a testimony of that. Over these years, the brand has been
positioned and repositioned in tune with the consumer. During the late nineties,
consumer insights showed that although the kids liked the promos involving
Sachin, they felt somewhat distant from the brand (because Sachin was perceived
to be extraordinary). Realizing this, the brand changed its tagline to "Boost is the
secret of my energy' to "Boost is the secret of OUR energy". The ads increasingly
gave importance to kids rather than the celebrity.

In 2005, the brand came with Choco Blast (more chocolate) and Advanced Energy
Boosters to counter the threat from Bournvita who now has the Chocolate taste of
"Five Star" in it. Boost is a super brand with lots of lessons for a marketer to learn.
The brand continues to invest in it and has remained the favorite of marketers and
kids.

12

SWOT Analysis
Strengths
Brand Strength
Boost is a nutritional energy drink, especially for children. Boost is one of the
major players in the Rs 1400 crore Indian Health Food Drink (HFD) market. The
HFD market is having two segments: White powder segment and brown segment.
The market is dominated by white powders. Boost is a malt milk additive with the
flavour of chocolate. It is a chocolate flavoured health food drink made by
GlaxoSmithKline. Boost has a share of around 12% in the HFD market. Boost is
positioned as an energy drink. The tagline "Boost is the secret of my energy" has
remained a blockbuster all through these years. The tagline has highest recall
among the TG. Boost is also the first HFD brand to be endorsed by a celebrity. It
was launched in 1977 in India.
Effective Strides in new markets
Quality of Products offered - Making pleasurable nourishment available to the
consumers on the go using the vending machines.It has launched four different
flavours in order to react to demand and changes in the markets of iced tea,coffee
and other energy drinks.
Strong Existing distribution channels
Boost has operations worldwide and is well established in its distribution
channels(such as store retailers or vending machines).Therefore a new product
launch can typically rely on the existing distribution system in order to reach the
majority of its target market while requiring no major supply or delivery
developments.
Cost, Flavors, Technology and Location
When compared to other energy drinks, Boost is still cost effective. Flavors offered
are still the most popular in most markets. Four new exciting flavors with Reverse
Vending Technology. Boost was the first brand to introduce yellow granules the
Power Boosters. It is the first brand to develop a 'shrink sleeved' packaging, in
recognition it has also won the World Star award for its packaging. Singapore is
beginning to be seen as a good destination for energy drinks and has a good
market for the product.

13

Weaknesses
Relying upon line extensions
Boost is relying on brand extensions increase sales in specific lines, particularly its
long-time nutritional drinks that is the introduction of new flavors may cause harm
to the parent brand. However there is a strong risk of cannibalizing existing sales
in the long term.
Reliant upon particular nutritional drinks
The longtime presence of boost nutritional drink has established this particular line
as a flagship product. Being launched in Singapore, Boost will face a heavy
competition. It is very difficult to attracts consumers as the product is new to the
Singapore consumers. Boost will launch its product in four different flavors, with
which it may confuse the con summers to choose which flavor to drink.
New Process
The Reverse vending machines are new to the people, so first they have to be
educated well about that, which is a tough process. It should get approval from the
Health ministry of Singapore to set up a plant here, it may take a long time as the
government is strict and will check whether everything is fine. Already lot of
schools, colleges and workplaces have vending machines, it is very tough to
compete with them to set up a new vending machine.
Slow Market Demand
Slow reaction to market demand - Product should get launched and still has not
started to run and may not even have market for the product. Boost energy drink -
most popular drink with Indian consumers. However complaints have been fed
back from consumers that the drink still is not restructured with a different and
good taste, various flavors advertised are not yet running, and the lack of any
industrial attachment or input devalues the product. Boost must work hard to
improve all these if the flagship products are to continue to attract such large
numbers and avoid being overtaken in the market place.

Slow administration procedures - slow decisions on Product approvals both internally
and from GSK has led to some consumers choosing to go elsewhere.
Poor consumer experience - some have reflected a general feeling that the taste of
the Boost not belonging to the Boost family as a whole.
Lack of part - time jobs - compared to other countries and compared with other
institutions in Singapore.
Website - Boost marketing tool requires a re-design to be more modern and
effective.
Cost - when compared to other Energy drinks in Singapore Boost appears costly.
14

Opportunities
New Product Introductions
The nutritional drink market is one that particularly allows more innovation
opportunities and gives greater freedom for creativity in the design, production,
manufacturing, distribution, promotion and retailing choices and processes.
Brand is attractive to global partners
Because of the company's size (including value, brand name and operating
revenues) and wide portfolio base, Boost enjoys a strong purchasing powers over
its suppliers, and also attracts large partnerships with various levels of consumer
reach. Existing brand awareness also provides an international playing field for
powerful marketing strategies.
Threats
Strong Competition
Boost is competing in a global market that is characterized by an oligopoly
between several competitors. The fight for market shares and sales in crowded
markets becomes a complex one.
Potential health issues
The current trend of consumers and consumer groups' awareness towards goods
and services is both beneficial and threatening for companies in the food and
beverage industry. Over the last few years, concerns over health issues have risen
in the media through an expanding and ever-growing network of "Knowledge
outputs". Large companies can also easily become the target of consumer's
apprehension.
Free Trade
In an era of globalization, large international can come out with comparative
advantages. Issues arise when dealing with price competition and economic
growth. Trade organizations are also faced with public pressure which can disrupt
operation in one or more areas of the company.

15

Competitor Analysis
Boost vs Milo
Milois Amilk beverage with chocolate and malt, produced by Nestle and originating
from Australia. Milo provides children with 50% of their daily iron, calcium,
Vitamin-C and Vitamin-B1 has a great brand value and recognition in Singapore.
Boost which is loved by everyone in India, after its launch in Singapore it will be
tough for Milo to compete with Boost. Because, Boost is going to be launched with
exciting new flavors and it will be according to the demand of the market.
Boost vs Horlicks
Although both the health drinks belong to Glaxosmith Kline they have a good
competition. Both Horlicks and Boost is been categorized for the people having
high level of income. Horlicks is clearly segmented as malt flavored Energy drink.
'Horlicks the great family nourisher' is its slogan. The brand has been positioned
and repositioned with the new delicious range of flavors. Boost beats Horlicks
because as Horlicks is a malted drink, the taste is not well received.
Boost vs Bournvita
Children always look out for the tastiest option, to make their daily dose of milk
more enjoyable Cadbury Bournvita offers two options 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.
Indirect Competitors
Coffee, Tea, Milk, etc.

16

Market Segmentation, Targeting and Positioning
Segmentation
The market segmentation of Boost has been segmented as Geographically and
Psychographic.
Geographically
Boost has segmented Singapore market into four major places such as Little India,
Raffle's place, China town and Sentosa. The brand Boost is not limited to any age
group, religion, profession etc. Firstly Boost will be launched into these four major
places and if the consumer response is good then Boost will expand its market to
the whole Singapore.
Psychographic
Boost will cater the whole population of Singaporean market belongs to any age,
profession, attitude and lifestyle.
Target Market
Target four major places. They are Little India, Raffles place, China town
and Sentosa.
Target school and university students.
Boost will be targeted at health drink consumers as a new health drink
which is not available in the market.
Target health conscious customers who prefer to have healthier products
like energy drinks, fruit juices, fruit drinks.
Positioning
Boost will be launched in four new exciting flavors.
Glaxosmithkline as a parental company will have some psychological effect
on consumer which forces consumers to taste Boost at least once.
Boost has planned to position itself as a healthy drink which could be used
as a median drink between carbonated drink s and fruit juices.
Boost will use Glaxosmithkline brand's goodwill to position itself.

17

Critical Success Factor
Brand Name
Today Boost is a very huge in health drink beverages.Boost has a market share of
13% countrywide among all the Health Food Drinks,while in South India - the
biggest region for the category.It commands a market share of 24% and it has
expertise in marketing, distribution and promotion.So,it is an added advantage
with brand Boost.
Cost Factors
We will keep our product's cost competitive as compared to other health drinks
brand. So that health drinks consumers prefers to try our brand due to its low
cost.
Changing Trends
Nowadays, more and more consumers are getting health conscious which is by the
fact that the fruit juices and drinks market of Singapore is continuously increasing.
According to DATA monitor report, the market share own by health drinks and
drinks were 19% in 2006 which is currently at 23%. So, our product would be
having an advantage of being a non carbonated fruit drink.
Increasing consumption
According to the recent statistics, Singapore is also the largest consumer of health
drinks as Singapore's per capita consumption of drinks is growing steadily with no
end in sight.
Increasing immigration
Singapore is experiencing a large number of Asian immigrants which are familiar
with the Brand boost, which would provide us a variety of potential consumers. As
Boost is already a well established brand in many Asians countries.

18

Marketing Objectives
Our main objectives with respect to launch of Boost in Singapore are as follows:
To penetrate the market and achieve a market share of 5% by the end of first
year and of 7% by end of third year.
Achieve profit by third year and break even by end of second year of the launch
of Boost.
We like to launch Boost into the Singapore market by associating it with some
Celebrity. May be sports person or Film personality.
If the Response of the consumer will be good then we will expand our market to
the whole Singapore.
Once we cross break even and run into profits, we will share part of our profits
with a cause associated with saving environment.
Marketing Mix Strategies
Product, Price, Place and Promotion
Product
As far as the product is concern few things of the product will be standardized and
other would be adapted according to the Singaporean standards.
Company will not change the core value of the product like Quality and Taste of
Boost.
Company plans to launch the product in three different size i.e Booster instant
sachet 25gms , can 240 ml and Tetrapack 250 ml.
Product will come in two different packaging, which will be in Tetra packs and
Cans. Specially designed steel cans will be introduced after 6 months in order
to maintain the curiosity of the consumers.
Product packaging will be according to the Singaporean consumers who prefer
to hang with the drinks. So, our product packaging will be small, easy to carry
and good looking.
Augmentation will be provided to customers by customer care, services, returns
and reusability of bottles for other tacks.
Reverse vending machine one of the newest technologies will be launched in
Singapore along with the launch of Boost.
19

Pricing
Existing market of soft drinks is very competitive and also there is small
percentage of Health drinks consumers. So, in order to increase the percentage
of health drink consumer and to penetrate in to the market, company planned
to come up with low cost leadership strategy which often proof effective in
gaining market share in short period of time.
The Low cost leadership strategy will force consumers to taste/try our product
without any second thought.
Distribution
The product will be manufactured in India and will be exported to Singapore. The
finish product will be sent to mother warehouse of Boost for storage purpose which
is in Singapore and from mother warehouse finish product would be further
forwarded through Carriage and Forwarding Agent.
Promotion
Marketing plan starts with the free sampling in every CBD area of city, trail by an
icebreaker, children competition, fun games for elders and other stuff. The main
purpose is to conduct an activity for whole family.
Advertising
For Advertising Boost will be focusing on to use television, billboards, internet,
radio, posters.
Boost will associate Christiano Ronaldo with the product Boost by taking
Christiano Ronaldo in Ad films, posters etc.
Christiano Ronaldo posters will be used on Billboards, magazines and
Newspaper ads.
Company will use electronic billboards at major train stations and areas

20

Celebrity Endorsements
Personal selling
Professional sales team will contact 5 star hotels, fast food shops, restaurants and
other multinational franchises e.g. Mc Donald's, Burger King, KFC etc
Direct marketing
Company will use direct marketing like mails, e mails, internet ads, and
telemarketing at initial stage to aware consumers about the product
Points of Purchase
Sales and marketing team will take care of shelves of shops to make sure that
product should be in front position. Moreover, Company will make sure the
availability of the product in the vending machine at major stations, school
canteen, universities. The company will launch a Boost's official website especially
for the Singaporean region.
Budget
Separate budgets are allocated for completion of formalities of contract, setting up
of warehouse, distribution costs, internet related costs, advertising costs that will
include promotion in Cinemas, T.V, Radio, Newspapers, Magazines, Hoardings.
Budget is also allocated for other sales promotion activities like personal selling,
free samples at public gatherings, promotion in malls, etc. Transportation and
product launch will also be given separate budgets.
Given below are the allocated budgets for each item along with date of completion.
Implementation
The Implementation of the Marketing plan will take as follows
The Contract and all other formalities like distribution, storage, promotion etc
will be negotiated with Boost Private Ltd Singapore. This would be done by
Board of directors and marketing manager of both companies.
With the help of Boost Private Ltd Singapore, a Mother warehouse would be set
up in Singapore. We will be using Boost Private Ltd Singapore's warehouse
managers' expertise in setting up our mother warehouse and other warehouses
in other parts of Singapore.
The Proper distribution network will be established by 1st Feb 2010. For this we
will use Boost Private Ltd Singapore.

21

Evaluation and Control
We will evaluate our performance on two parameters; Financial and non
financial parameters.
The financial parameter like sales figure, market coverage, market share, cash
flow, and profit and loss will be assessing on monthly basis.
The non-financial performance of the product would be measured on qualitative
parameters such as quality, customer satisfaction, and effectiveness of
marketing activities.
The qualitative parameters would be measured on a quarterly basis by
engaging an external agency such as a market research company
There will be a visit of Boost India experts once in a two month to assess the
performance of the product.
22

Bournvita
Early History
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
in 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 for its best nutritive
values, combined with great taste
to aid growth and all round
development and at the same time
alluring to the palette. In this
context it may be meaningful to
mention that throughout its history,
it can be seen that Cadbury
Bournvita has continuously evolved
itself in terms of product,
packaging, promotion and
distribution. The Cadbury pedigree
and rich brand legacy has helped
the brand maintain its headship
position and image over the last 50
years.

The brand is a market leader in the Brown health drink segment with a market
share of over 15% according to Business Standard which is an indicator to the fact
that Cadbury's - true to its reputation has managed to sustain this brand over
years. The brand has sustained because of Cadbury's investment in the brand and
also ensuring that the brand changed in with times.

Bournvita is a chocolate flavoured health drink. When the brand was introduced in
the market, it tried to solve a perpetual problem that mother's face: a need for a
healthy food which is tasty. Bournvita offered that unique combination of health
and taste.

It is also interesting to see how this brand has evolved over these years.

Positioning and repositioning through taglines

In 1970s the brand was positioned as a product that helps in good upbringing. The
brand used the tagline: Goodness that Grows with You.

During 1980's the brand changed its focus from Upbringing to Intelligence. The
tagline was changed to: Brought up Right, Bournvita Bright.
23

In 1990's the brand felt that it should be focusing on the overall health of the kid
and thus changed its focus on Body and Mind with the famous tagline: Tan Ki
Shakti, Man Ki Shakti.

During 1998, the brand faced intense competition from Milo from Nestle. At this
time, the brown health food drink segment was facing issues of stagnation
because of lack of value addition. Bournvita then changed its positioning on the
health platform. The brand used amarconym RDA (Recommended Dietary
Allowance) to reinforce the health positioning. The brand used a clever Nutritional
meter to communicate the RDA formula: 2 cups of Bournvita for balanced
nutrition.

The brand also set up a Bournvita Nutritional Centre where nutrition experts
recommended the right RDA percentage to kids. The brand at that time used the
cricketer Ajay Jadeja to endorse the brand. The brand also harped on the taste and
used the tagline "No Bournvita No Milk to reinforce the taste attribute.
The brand over the years realized that every kid have a chance to excel in his
chosen field of endeavour if he have confidence. The brand now uses the tagline
"Do you have Bournvita Confidence ".
In the Brown beverages segment, Bournvita faces intense competition from Boost.
In order to defend the leadership position, Bournvita has invested heavily in
product development, advertising and sales promotion. In the product
development front, Bournvita had significantly changed its packaging and the
latest pack is inspired by Boost. Along with packaging changes, the brand also had
come out with a new variant: Bournvita Fivestar Magic. The new variant has the
unique chocolate with caramel flavour of Cadbury's Five star. The brand is using
the brand association with Five Star as a key differentiator.

24

SWOT Analysis
Strengths
Very strong brand equity in India.
Backed by the brand Cadbury.
Big brand visibility.
Largest market share in brown malted drinks (15% acc. To Business Standard).
A very strong research team.

Weakness
Lack of penetration in rural market of India .
Bournvita is considered to be a high priced brand when compared to other
malted drinks.
Bournvita is perceived to be having less nutritional value as compared to its
closest competitors.
Opportunities
Expansion into every part of the country mainly rural part of the country.
Bournvita can leverage its product name with brand Cadbury .
Expansion to white malted drinks.
Having a wider reach by tapping other media sources.
Opportunities for line extension, for example: the nutribar category.
Threats
Cut throat competition from Nestle, Amul, Horlicks who strives for market
leadership.
Large variety of flavours introduced by other brands.
Frequent repositioning might result in the consumer not getting the desired
message.

25

Competitor Analysis
Which health drink do you prefer buying?
This question was asked to find out the preference of mind of the consumers whilst
choosing their health drink and was aimed to find out the preference share of
Bournvita Vis a vis its 4 competitors (viz Horlicks, Milo, Boost and Complan) which
we have chosen for our analysis.

From the response we collected from our survey, and after plotting them into the
pie chart, it can be seen that out of the total sample size of 80, a major chunk of
49% has indicated Bournvita as their preferred drink, followed by Horlicks at a
significant 30% preference. Complan, Milo and Boost end up with getting a 12%,
5% and 4% respectively. This is a clear indicator that majority of the sample
prefers Bournvita as compared to other health drinks.

In order to have an idea about
the Loyality towards the brand,
and to what extent bournvita has
leveraged the weapons from its
arsenal of communication
strategies, it is necessary to find
out the consumers loyality
towards the brand and hence we
asked the following questions
about the last purchase and the
last 5 purchases. The results are
as follows:

Herein it is seen that for 46% of our sample size Bournvita is the last
purchased brand followed by horlicks at 35%

Even in case of last 5 purchased
brand, the position of Bournvita
is almost the same with 46%
accounting for the past 5
purchases and thus fairly
indicating towards the fact that
the Bournvita has a fair share of
loyal consumers at its disposal
which is certaily a beneficiary for
the brand and shows its success
it connecting to tis consumers
and gaining their share of loyality.
26

Perhaps in case of communication, brand awareness plays the pivotal role,and in
this context we tried to identify the awareness and the efficiency of communication
of Bournvita amongst its consumers. For this, we asked questions like Identifying
the tagline, Identifying the packaging and asking about their popular promotional
campaigns to as to get the idea from the response generated.
Segmentation, Target and Positioning
Segmentation strategy
Cadbury has segmented the market for their flagship product Bournvita demographically. It
has segmented the market on the bases of age group; it is targeting children aged between 5 to
16 yrs. of age. It is targeting one of the biggest consumer groups in India. Bournvita is a
chocolate flavoured health drink. In this segment the children give too much importance to
taste and their parents give importance to health and Cadbury has addressed both the things very
well. Thus it builds a bridge between mom and the child. And moreover with all the fringe
benefits coming Segmenting strategy Cadbury has segmented the market for their flagship
product Bournvita demographically. It has segmented the market on the basis of age group; it is
targeting children aged between 5 to 16 yrs. of age. It is targeting one of the biggest consumer
groups in India. Bournvita is a chocolate flavoured health drink. In this segment the children
give too much importance to taste and their parents give importance to health and Cadbury has
addressed both the things very well. Thus it builds a bridge between mom and the child.

Demographic Segmentation
They mainly concentrated on children aged between 5 and 16 years of age who
are primary consumers of the flavoured health drink.
Launched in the year 2008, Bournvita Lil Champs is specially formulated with
scientifically proven ingredients like DHA & Whey protein, making it ideal for
children between the formative years of 2 to 5 yrs.
It focused on the Good Upbringing, Goodness that grows with you campaign
to promote Bournvita as an essential health drink for children.
Behavioral Segmentation
Benefits
Protein 7 grams; Fat 2 grams; Carbohydrate- 84 grams of which sugar is
70.3 gram
The major portion of the Bournvita is carbohydrates that easily breakdown in
our bodies to provide energy.
Though each health drink is fortifies with important vitamins and minerals like
27

iron, b vitamins, vitamin a, d and e which has various functions in the body is
beneficial.
Targeting
Most of the Cadburys promotional activities are based on the children who
influence their parents to buy Bournvita.
Bournvita offered that unique combination of health and taste.
Thus it targeted the mothers concern about her child's health and taste
preferences.
Positioning
Bournvita has always positioned itself as childrens drink and has been
promoting itself that way.
During the 70s the brand had positioned itself as a product that helps in good
upbringing. The brand used the tagline Goodness that grows with you.
During 80's there was a change in its focus from Upbringing to Intelligence.

28

Most of the promos are targeted at children who compel their parents into
purchasing the brand. Brand loyalties are very strong as the key target audience;
children are always looking for the change. Bournvita is a chocolate flavoured
health drink. When the brand was introduced in the market, it tried to solve a
perennial problem that mother's face: a need for a healthy food which is tasty.
Bournvita offered that unique combination of health and taste. Thus it targeted the
mothers concern about her child's eating habits and used the 'Nutrition Meter' as
an interesting device to communicate the RDA formula - "2 Cups of Bournvita for
Balanced Nutrition". To further target the child section it has offered many freebies
and gifts from time to time.

Product
Cadbury India Ltd launched Cadbury Bournvita, a chocolate health drink in 1948 in
India. But even before launching its new health product in the Indian market,
Bournvita was one of the most loved chocolate drinks around the world. Bournvita
is a combination of 2 words, Brown & Vita. Brown because it is brown in colour &
Vita because it has lots of vitamins. It is a nutritional drink which acts as a dietary
supplement providing nourishment along with good taste & flavours. For todays
kids who detest milk in its pure state unless flavoured, this is an ideal drink. It has
its own unique flavour, and the taste is rich and full-bodied.

Ingredients: Malt extracts, sugar, cocoa powder, milk solids, liquid glucose,
vitamins,

Bourn Vitas nutritional facts

1)Gives protein.

2)Provides Vitamin A, Vitamin C & Vitamin B12.

3)Contains Calcium, Iron & Folic Acid.

4) It also provides our body with Niacin, pyridoxine, Riboflavin, & Thiamin which is
very essential for the proper working of our nervous system.

29

Price
Normally, price is the most important element in deciding the fate of any product.
While purchasing any health drinks however, a housewife or a mother who is the
ultimate buyer gives price secondary importance. She will carefully study the taste
& nutritive values in the health drinks. Bournvita being one of the most expensive
health drinks in the market (Rs.101 for 500gms), but still due to its good taste &
great nutritive values it has captured the majority of the market.

Place
The distribution pattern followed by Cadburys Bournvita is more or less same as
the traditional channel of distribution. The company has a total consumer base of
over 65mn. Besides use of IT to improve distribution logistics, Cadbury is also
attempting to improve distribution quality. To address the issues of product
stability, it has installed coolers at several outlets. This helps in maintaining
consumption in summer, when sales usually dip due to the fact that the heat
affects product quality and thereby off take.

Promotion
Bournvita always comes up with consumer promotion activities from time to time
e.g. giving free gifts like plastic mugs, chess game or ludo etc. They also come up
with the scheme of extra Bournvita for the same price. The ads had very cleverly
promoted this drink for intelligent school kids through organizing the famous
Bournvita Quiz Contest between different schools. This was a fantastic gimmick on
television, which had caught on so well, that even adults would spare some time to
watch it without fail. The Quiz Master Derek OBrian was loved by all, the young
and the old alike. This Advertising concept was so successful, that they even came
out with the Bournvita General Knowledge Book (a mini encyclopaedia). Cartoon
Network and Cadbury India has announced a one-year promotional license
agreement. Bournvita positions itself as a healthy and nutritious drink for kids. The
first promotion is the Toon Mug offer. A 500 gram Bournvita pack comes with a
mug featuring some of the best loved Cartoon Network characters. Toon buffs get
a choice of over six toon mugs including The Power puff Girls, The Flintstones,
Scooby-Doo, Johnny Bravo, Dexter and Tom & Jerry. The Bournvita promotion is
being supported by television commercials and in-store advertising.

30

Packaging
Earlier packaging was not given the kind of importance to what it is gaining now.
Marketers have now realized the importance of packaging in todays competitive
market. Hence they are concentrating on various aspect of packing such as the
colour, material used to make the package & cost. They use glass jars for
packaging which do not allow moisture to get in the product and also increases its
shelf life. They have also introduced the refill packs so there was no problem of
buying Jars every now & then. They have also worked upon the colour which is
now Red & Purple against the old one Brown & Yellow because kids love bright
colours.

Packaging also holds a
major key in product
identification and
recall and last but not
the least,
communication from
the brand. Hence
herein we blurred the
names in the
respective packages
and asked our
respondents to identify the product.
Herein we can see that Horlicks and Boost rules the roost with almost 87.5% and
83.75% of the respondents identifying Horlicks and Boost respectively, herein also
Bournvita comes third with 82.5% of the respondents identifying Bournvita.

From the results it seems that the identification for that of Horlicks and Boost are
high but Bournvita is also on a constant vigil to evolve with times and has taken
drastic efforts in modifying their packaging to fine tune it with consumer insights
so as to convey the message more Aptly. With the recent changes in packaging,
they have tried to deliver an essence of the positivity, optimism and enthusiasm in
lieu of their tagline of tann ki shakti, man ki shakti wherein they try to encode
this through their new change in packaging and emphasizing on its power of value
addition to milk. So from this it can be concluded that in spite of a comparatively
low recall in packaging, Bournvita is trying to catch up ,resonating with what
consumers think about them, what they like to convey, and last but not the least,
a significant improvement in packaging by making it more air tight and ergonomic.
31

Complan
Early History
Complan was first introduced by Glaxo in the United Kingdom, as an essential
nutritional supplement for soldiers at the frontlines during the Second World War.
It was introduced to India in 1964 by Glaxo Laboratories who marketed it through
doctors as a convalescence drink. Complan the complete planned food in the drink
is formulated as per the world health organization (WHO) guidelines ted for
growing children. In 1969, Complan went OTC though image perceptions continued
to be ethical. Hence, from 1969 to 1973 the product advertising was focused on
the Goodness of Complan as a means to compensate dietary deficiencies.
The brands next major milestone
occurred in 1975. In order to expand
the user base, it was decided to
establish Complan as an ideal nutritional
supplement for growing children.
Thereafter, Complan has gone on to
become the most trusted brand for
childrens nutrition in India. Im a
Complan Boy, Im a Complan Girl
remains one of the most loved and
instantly recalled jingles even today. It
has now come to stand for the Gold
Standard of Nutrition (Source:
Pathfinders Track -Kolkata). The brands
positioning as the Drink for growing
children coupled with its superior
nutritional formulation are its greatest
strengths today.
Complan derives its name from Complete Planned Food which is exactly what the
product aims at delivering. The product concept holds that consumers will favor
those products that offer the most quality, medically accepted and recommended
nutritional content and a good flavor which is almost a must for children. Complan
has been committed in bringing medically recommended and effective solutions to
meet everyday dietary needs of the consumers. It is one of the very few brands in
the Malted health beverage category which is used so extensively because of
medical practitioner recommendation and recently the new Complan had been
fortified with range of vitamins and minerals in ambulanced proportion for health
and vitality. The new family oriented range reassures their commitment to
innovations, which are must for a brand to live long.
32

Competitor Analysis
Health and Wellness Foods market estimated at 10000 crores in 2012 and
expected to grow to 55000 crores by 2015 at a CAGR of 33%. Divided into two
categories White powders (Horlicks, Complan etc) and Brown powders
(Bournvita, Boost etc). Health drink powders consumed as milk substitute &
nutrient boosters. Indias Health-drinks market pegged at around 4000 crores
(90000 tonnes) and expected to reach approximately 8000 crores by 2016. India
is worlds largest malt-based drinks market with a share of almost 22% in the
worlds total retail volume (Malt is germinated cereal grains that have been dried
in a process known as malting).

Brand Trust Ratings by Trust Research Advisory

White
Powders
Brown
Powders
33

Market segments | Target markets | Positioning
All marketing strategy is built on STP Segmentation, Targeting and Positioning. A
company discovers different needs and groups in the marketplace, targets those
needs and groups that it can satisfy in a superior way, and then position its
offering so that the target market recognizes the companys distinctive offering
and image.
The starting point for discussing segmenting is mass marketing. In mass
marketing the seller engages in mass production, mass distribution and mass
promotion of one of the product for all buyers. The argument for mass marketing
is that it creates the largest potential market which leads to the lowest cost, which
in turn can lead to lower prices or higher margins. The proliferation of advertising
media and distribution channels is making it difficult and increasingly expensive to
reach a mass audience. Most companies are turning to micromarketing at one of
the four levels: segments, niches, local areas and individuals.
A market segment consists of a group of customers who share a similar set of
needs and wants. Segments are not created, they already exist, and the task is to
identify them.
Segmentation
No company can win if its product and offerings resembles every other product and
offering. Today, most companies are guilty of strategy convergence namely,
undifferentiated strategies. Companies must pursue meaningful and relevant
positioning and differentiation. Each company and offering must represent a
distinctive big idea in the mind of the target market; and each company must
dream up new features, services and guarantees, special rewards for loyal users
and new conveniences and enjoyments.
Positioning And Targeting
Positioning is the act of designing the companys offering and image to occupy a
distinctive place in the mind of the target market. The end result of positioning is
the successful creation of customer focused value proposition cogent reason why
target market should buy the product. Positioning is what you do to the mind of
the prospect. That is you position the product in the minds of the prospect.
Stage 1
Complan was first launched by Glaxo, UK, during World War II. It was part of the
ration for the soldiers. Since then, the brand has travelled a long way.

34

Stage 2
In this stage, Glaxo launched Complan for the mass market. It had to find an
appropriate positioning. Glaxo positioned it as supplementary nutrition, for adults
in convalescence. Doctors recommended it. The brand got the image of sick mans
source of nutrition. This positioning did not bring much success.
Stage 3
Glaxo reviewed the positioning and studied the health drinks market. Though
Complan was superior in many respects to other brands, it suffered the image of a
sick mans drink. Glaxo found the health drink market growing, but Complan was
not growing. It also found the growing child as the big market segment for health
drinks. Complan took a new positioning A Complete Planned Food for Children, as
a health builder. The differentiation theme was that it was superior to milk,
natures best nutrition for children. It carried 23 nutrients, which milk did not
carry. It carried milk protein as well. This positioning too did not bring the desired
success.
Two problems came up:
1. The taste was not agreeable to children
2. Superior to Milk proposition did not sell because, the Indian mother still
held milk as an essential natural diet for children.
Glaxo improved the taste of Complan; introduced the chocolate flavor and other
variants to please children. Still Complan did not take off.
Stage 4
The new positioning was against Horlicks, while the old one was against milk.
Horlicks was doing well as the preferred health drink. Here a new problem
emerged: Price of Complan was double that of Horlicks and buyers shied away. It
came to be sparingly used anyway. The search for the right positioning continued.
Stage 5
Glaxo gave up the comparative positioning. It tried to match the product claim and
the customer need. Target user and usage occasion became major considerations
in the new positioning. New user segments and new uses for the product were
identified. The new positioning: Fulfilling the nourishment needs of different
segments of people who faced different kinds of problems on the diet front. The
only health drink that is complete and suits varied occasions and users. Only
Complan, with 23 nutrients, is complete for the body.

35

The ad campaigns clearly showed the new positioning Complan was for:
The child, the problem eater.
The young executive, too busy to eat.
The grandpa, too ill to eat.
And the young housewife, of course in good health, but needed extra
nourishment for all the strain she takes and to guard against hidden diet
deficiencies.
In other words, in the family everybody had some use for Complan.
The new positioning was as a distinct product in its own right. Flavors like
cardamom and strawberry were added; new packaging also came. Complan finally
found a good orbit.
MARKETING MIX
Marketing Mix is a unique
strategy adopted for each
product so that it performs in
the market. By definition a
marketing mix is a unique
blend of product, distribution,
promotion and pricing
strategies designed to produce
mutually satisfying exchanges
with a target market.
Marketing mix decisions must
be made for influencing the
trade channels as well as the
final consumers. When a
company offers a mix of
products, services and prices,
it utilizes a promotion mix of
sales promotion,
advertisement, sales force,
PR, direct mail, telemarketing
and internet to reach the
trade channels and the target
36

consumers. What the mix comprises of will depend not only on the product but
also how the company perceives the product in its product portfolio and how the
product fits into the future strategy and vision of the company.
The 4 Ps and the 4 Cs are an integral part of the marketing mix. The 4 Ps (Product,
Price, Promotion, Place) are is the marketing holy grail defined from a sellers point
of view while the 4 Cs (Customer solution, Cost, Communication, Convenience) are
defined from a consumers point of view. The 4 Ps and the 4 Cs for complan has
changed over the years as the market has changed along with changes in the
consumers sensibilities and demands.
Product
The product is the physical form of the offering that the customer is presented.
Hence it is very important that the product should be visible and attractive enough
for the customer to choose it over another competing product.
For this, the product offering is divided into five hierarchical levels, each level
adding more customer value and hence constituting a customer value hierarchy
the core benefit (the fundamental level), basic product, expected product,
augmented product and the potential product. Let us now look at how Complan as
a product is offering these five levels.
Core Benefit
This is the basic fundamental benefit that the customer is looking for the
intangible core benefit that attracts the customer to exchange his money for the
product.
Complan has always sold itself on the concept of Health and a Complete Health
food for a healthy and problem free life. What Complan wants customers to think
of when they are buying the product is to think of the purchase as an investment
for a healthy tomorrow.
This is a concept that Complan has sold successfully and today the brand
perception is that Complan is a complete planned food and that its a diet on its
own.
Basic Product
This is the tangible offering that the customer gets when he actually purchases the
product. Complan is offered to the customer in powder form in a plastic jar. The
plastic jar is a relatively new offering considering Complans long existence in
India.
37

Complan has been long offered in a glass jar, with minor variations in shape. As far
as packaging the physical product is concerned, Complan has been a laggard in
innovating, its strategy involving more of reaction to its competitors strategy.
Expected Product
This is the minimum expectation from a product that a consumer expects when he
buys the product, a set of attributes and conditions buyers normally expect when
they purchase the product.
In the case of Complan, other than the core benefit that the customer is looking
for, the customer is also looking for a product that is good to taste, gives a sense
of satisfaction once consumed; a product that maintains its physical integrity (does
not disintegrate) under daily conditions and actually shows results in terms of core
benefit promised (healthier lifestyle).
Complan delivers on all fronts except where the satisfaction on the taste front is
concerned. Even though Complan has tried to innovate by bringing out Complan in
different flavours, the customer still gives a thumb down on this aspect of the
product.
Augmented Product
These are the set of attributes which would exceed the customer expectations.
This is the product attribute that really provides the differentiating edge to a
product.
In Complan this would refer to the brand being considered an alternative to milk as
far as nutrition is concerned, something that was unthinkable in a country like
India but which has become true after years of sustained and focused ad
campaigns.
This is a remarkable success for the product as milk is historically considered a
complete meal in itself in India. So in this regard Complan has exceeded the
customers satisfaction. Also over the years, Complan has added new additives to
the basic nutritional roster of the product not only to make it more appealing by
augmenting the taste but also by increasing the nutritional aspect of the product.
Potential Product
Complan as a potential product needs to undergo some transformations not only in
its physical aspects but also in the way the product is perceived by the target
market.
We feel that Complan already has a successful platform in it being perceived as a
Healthy drink; it just needs to leverage this brand recall in transforming the
product perception into adding the fun factor in the drink. Consumers are getting
younger and buying decisions are at many times made on the spot if packaging
38

has been done attractively and word of mouth is positive. This is a target market
that Complan has missed by concentrating on being a serious drink.
Product variety
We have Complan coming in different flavours, catering to the different taste buds
of its consumers, in different size packaging in order to cater to the differing
budgets of its customer, in different forms of packaging in order to cater to the
different convenience needs of the consumers.
Complan is available in various flavours like Complan Natural, Complan Chocolate,
Complan Kesar Badam, Complan Pista Badam, Complan Strawberry and Complan
with memory chargers. Complan has also launched Complan Family, a variant
aiming at all members of the family. Complan has also launched Complan NutriGo
for children between 2 to 6 years with three different flavours.
The first question that comes up is what is the strategy behind the introduction
of the product variants. The answer to that lies in the fact that the product variety
is due to a conscious strategy of the company to capture the entire spectrum of its
market; an effort to cater to all types of customers taste buds so that Complan
has an alternative to each variant of its competitor.
The next question that naturally comes is has the product variance been
successful in improving the products market share. The answer is only partially.
The product variety has ignited interest which is borne out by spike in sales of the
Complan varieties. But the question of whether there have been repeat sales is a
difficult one to answer. The customers surveyed felt that the basic taste remained
the same even with different flavours. Complan family has been successful as an
umbrella brand with mothers preferring the product over other competing product
offerings.

39

Pricing
Complan is available in different flavours in different package sizes with different
price points. We are putting forward some of the most popular Complan flavours
and their packing sizes and the price points at which they are sold. These samples
have been taken from the online retailer bigbasket.com
FLAVOUR PACKAGE SIZE PRICE
Complan Chocolate
flavour
500 gm Rs. 225
Complan Natural flavour 500 gm Rs. 199
Complan Kesar badam 400 gm Rs. 225
Complan Pista badam 200 gm Rs. 120
Complan Strawberry
flavour
500 gm Rs. 225
Complan Memory
chargers
400 gm Rs. 235

Place
Complan believes in more or less Direct Selling kind of distribution channel hence
it does not have many middle man like C&F Agents, Wholesalers, Stockiest etc.
this help the company to charge less to their customer and give them more or less
personalize treatment. And the less no of middlemen also helps to increase our
profit margin.
Promotion
Like most marketing decisions, an effective promotional strategy requires the
marketer understand how promotion fits with other pieces of the marketing puzzle
(e.g., product, distribution, pricing, target markets). Consequently, promotion
decisions should be made with an appreciation for how it affects other areas of the
company. For instance, running a major advertising campaign for a new product
without first assuring there will be enough inventory to meet potential demand
generated by the advertising would certainly not go over well with the companys
production department (not to mention other key company executives). Thus,
marketers should not work in a vacuum when making promotion decisions. Under
the concept of Integrated Marketing Communication marketers attempt to develop
a unified promotional strategy involving the coordination of many different types of
promotional techniques. The type of customer the marketer is attempting to
attract and which stage of the purchase process a customer is in will affect the
objectives of a particular marketing communication effort.
40

Since a marketer often has multiple simultaneous promotional campaigns he can
have two ways to address the consumers
1. Unified Objective with one underlying objective.
2. The objective of each could be different.
Complan follows the unified objective option for its ad campaigns. Complan targets
the Health Drinks market specifically; also the target audience of Complan are also
traditionally fixed, being children in the age group of 5-15 yrs.
Objective of Advertisements
Taking good care of yourself means making sure you get all the nourishment you
need? Even if you have a small appetite, are out of sorts, or simply cant? Find the
time to eat. Thats what Complan is all about it can provide all the nourishment
of a complete meal in a delicious, easy-to-prepare, and hot or cold drink or healthy
cereal you can enjoy anytime. We all remember the advertisement many years
ago on TV where a Complan boy takes his mother around his bicycle after drinking
Complan.
Slight change in strategy: In the initial years Complan, like most other health
drinks was completely aimed at school going children but it was the first amongst
its competitors who shifted to grabbing a burgeoning market of youngsters, the
first shift in this strategy of Complan was noticeable in the ad where a 17-18 yrs
old boy comes home late and has a tacit fight with his parents, after which he sits
down to study and has a mug of Complan, the ad again cashes on the parents-
child sentiments but more laconically.
Innovations in Advertisements
Linguistically Suitable Ads: Complan has come up with linguistically differentiated
advertisements like one Bangla Advertisement has a tag line: epaN opaN jhOpaN.
This organisation of advertisement is anchored by the picture of growing kids
turning the Complan-cup this side, that side and then drinking it at once eagerly.
The terms epaN, opaN actually are meaningless forms in the standard
ColloquialBangla (SCB). They are coined in order to have a rhyming effect with
jhOpaN an expressive in SCB expressing an imitative sound of falling some heavy
liquid/ something heavy on liquid. The effect of sound symbolism is manifested in
the use of velar nasal sound in the word final position indicating some abruptness
of action-thus making the advertisement funny and interesting for the kids. Usage
of models in the age bracket of 18-20 yrs, which was not very common initially.
Usage of Medical certification; this was consistent on Complans initial strategy of
positioning itself as a health drink prescribed by medical practitioner. Complan had
an ad in which a doctor is speaking about the benefits of Complan and tells us
about the ingredients in details.
41

The Advertisement War
In the competitive FMCG market, sustaining your market share is not an easy job.
You are always affected by what your competitor is doing. Complan has always
been on the receiving front on these parameters. Complan pursues a very
aggressive market strategy, and a lot of times puts its biggest competitors name
(Horlicks) in bad light. It has also got into a lot of legal battles and mud-slinging
because of the same.
The recent aggressive campaign of Horlicks features the new positioning Now
Proven-Taller, Stronger Sharper" aims directly at Complan- which is now focusing
on non-drinkers. In 2005 the Calcutta High Court today directed Heinz India Pvt.
Ltd. to telecast the advertisement of Complan, after deleting the Cup marked `H',
in the advertisement. The advertisement shows two cups, the bigger one showing
a `C', and the smaller showing `H'.
Future Strategy
After nearly forty years of marketing Complan solely to children, brand owner
Heinz India is looking at re-booting its strategy to make the milk-based health
drink more palatable to adults.
The company has re-done its packaging, roped in a new brand ambassador, and
changed its brand positioning in order to catch up to market leader Horlickswhich
is seen as a drink for the family and not just children.
What some of our research tells us is that close to 35-40 per cent of the Complan
that was bought was consumed by adults, said Abishek Prasad, General Manager-
Marketing, Heinz India, Pvt Ltd. Furthermore, our packaging, which previously
had photos of children on it, made adults feel like it was only for children. So, we
changed it. Our TV advertisements still retain a child focus, however, he added.
With a 12-13 per cent share of the Rs. 5,000-crore market for the milk-based
health drink segment, which includes malted drinks, Complan is quite behind
GlaxoSmithKline-owned Horlicks.
Heinz Indias decision to double down on the Complan brand, which is its mainstay
product, comes after it burnt its hands by entering the biscuit and ready-to-eat
meal categories. It has since shed such unprofitable segments.
By focussing on how Complan helps children build stronger bones and muscles,
Heinz India is also moving away from its previous advertising campaigns that
promised to make children taller. These height campaigns drew outrage from
certain quarters, with the Maharashtra Food and Drug Administration taking the
company to court over what it described as exaggerated claims.
42

Horlicks
Early History
Horlicks is a health drink brand existing in India since decades. It is a very famous
brand in the southern and the eastern parts of the country and it is very difficult to
find any small eatery without a Horlicks bottle near the cash counter. It is
estimated that Horlicks holds 50% market share of milk beverage market of India
that is around 2300 Crore. GlaxoSmithKline Consumer HealthCare is the proud
owner of such a strong brand. It has created such a strong entry barrier that
other big players like Nestle and Dabur have suffered badly. Nestle has stopped
making Milo and new entrant Dabur India has decided to stay clear of Horlicks and
pitch its Chyawan Junior against GSK Consumer HealthCares other beverage
brand boost.
One of the main reasons why Horlicks has dominated the market is because of
constant innovation not only in products but also in marketing strategies. GSK
Consumer HealthCare has decided to use the brand to get into new categories. In
last few months it has launched biscuits for children, a new drink for women, an
energy bar and chilled milk. GSK is fully utilizing its strong brand equity of Horlicks
to promote its products and is currently Indias 6
th
trusted brand.
When marketers see saturation in market they have two options: either expand
the market or increase use of its current products. Horlicks is opting for the first
strategy and reason is obvious. Young children would like to continue with Horlicks
as they grow older. But increasing usage is difficult. Few years ago GSK Consumer
HealthCare reached out to pregnant and lactating mothers with Mothers Horlicks,
and recently pitched in with its product Womens Horlicks for women across age
groups. There is Horlicks Lite for the elderly people who have sugar problems and
there is Horlicks nutribar for the youth.
Nutribar contains wheat, rice, oats and honey. The brand is claiming to have 11
nutrients.
Globally, functional foods have become a high growth market because of the
health and convenience factors. India too has seen following such a trend. It is
interesting to see how Nutribar will be able to create and rule this category. It all
depends on the support and investment that the company puts in behind this
brand
Another brand extension, Horlicks has recently launched a ready to drink flavored
milk product branded Horlicks Chill Dood. The product category is reported to be
43

worth around Rs.250 crore. Dairy based products are now seeing more action
these days owing to the shift of consumers to healthier products. Amul is the most
visible in this segment with its Kool drink. Animated advertisements are used to
promote this product.
In 2003 the brand was re-launched to make it tastier and also launched two new
flavors-vanilla and honey. The company has earlier launched a chocolate flavor to
try and win over fans in North and West who prefer chocolate flavored drinks. The
company also succeeds in extracting the price from customers. For example prices
of Horlicks were upped by about 5 % in this January. But it has been seen that in
India parents can spend to a maximum limit on two things: Childs Nutrition and
Education. Horlicks covers the first part.
Product
Horlicks is a widely regarded and highly respected 130-year-old brand. Glaxo
Smith Kline has four brands in the health food drinks segment. Apart from
Horlicks, which contributes Rs.600 crores in revenue to the consumer healthcare
division, it has Boost, Maltova and Viva the last three are much smaller brands
than Horlicks. The relaunch aims to focus on children as Horlicks was previously
considered as a nourishment drink for old people. Horlicks is a nourishing malted
food drink which combines the wholesome goodness of malted barley, wheat and
dairy ingredients. For more nourishment, Glaxo SmithKline Consumer Healthcare
India Ltd (GSKCH) has re-launched its flagship brand Horlicks. Horlicks drinks
provide the following essential nutrients: Proteins, Carbohydrate, Fat, Vitamin A,
Niacin, Vitamin B1, VitaminB12, Vitamin E, Vitamin B6, and Iron & Calcium.

Horlicks Flavours Kesar Badam, Elaichi, Original, Chocolate

Horlicks Ninja Family nourishment drink available in delicious range of flavors
including Chocolate, Vanilla and Elaichi

Junior Horlicks The early years of a child contribute potentially to the physical
and mental development. For optimal growth and best nutrition, Horlicks
launched this product. Nutritional requirements vary according to age. Toddlers
are fussy eaters, which may lead to gaps in nutrition. Preschoolers on the other
hand tend to have busy schedule and need adequate nutrition to keep them going
throughout the day. To bridge this gap in nutrition and aid in the childs overall
growth and development, it may be important to include a nutritional supplement
44

or beverage such as Horlicks as part of the daily diet. Junior Horlicks provides
tailor-made nutrition for children, and is available in two stage product :

Junior Horlicks 1-2-3 : An easy to digest drink for the fussy toddler at home. It is
claimed that Junior Horlicks is partially pre-digested which helps make it easy to
digest.

Junior Horlicks 4-5-6 with Growth boosters, power vitamins and smart nutrients:
A nutrition packed health food drink for an active preschooler.

The growth boosters are protein, calcium, vitamin D, vitamin K and magnesium
that are known to promote physical growth.

Power vitamins include vitamins B1, B2, B6 and niacin that play a role in release
of energy

Smart nutrients include iron, iodine, DHA, choline, vitamin C and folic acid that
are known to be essential for brain development and functioning.

Mothers Horlicks Launched in 1977, Mothers Horlicks is a superior nutritional
supplement with 27 vital nutrients scientifically designed keeping in mind the
nutritional needs of pregnant and breast feeding women. It has been re-launched
with a great new taste in 2014 as a tailor-made nutritional supplement for
pregnant and breast feeding mothers. It is a nutritional beverage to be consumed
as part of daily diet. It provides nutrients to help meet the increased calorie
requirements during pregnancy.

Mothers horlicks contains micronutrients (iron, iodine, folic acid, zinc,
magnesium, vitamin A, B6, B12 and D) known to help improved birth weight of
baby. Dietary intervention or supplementation during pregnancy can increase the
secretion of these nutrients in breast milk. It also provides nutrients known to
help improve the quality of breast milk during lactation. The period of brain
growth in children is from 12 weeks of pregnancy until three years of age. The
sensitive period for neural development and for associated behavioural
capabilities is from prenatal life to early infancy. Nutrients like zinc and iodine are
important for normal brain development. Mothers horlicks contains nutrients
known to contribute to normal brain function of baby. It has no artificial colours,
no artificial sweeteners and no added preservatives.

45

Horlicks lite This is specially designed to meet the needs of adults. Packed with
23 vital nutrients, including high quality protein and anti oxidants. Lite horlicks
provides strength and stamina by maintaining and repairing damaged body cells.
In addition to this, it has no added sugar and no fat. It was launched in 2005 and
holds the distinction of being the only nutritional drink which is endorsed by
diabetes India as being suitable for people with diabetes. It is available in two
flavors Original Malt and Badam

Horlicks biscuits It was launched in 1992 as a solid nourishment product. Each
packet contains the power of calcium. Available in two flavors namely standard
and elaichi.
Growing up is a pain. You romance about it only after you are totally grown up.
One of the exciting things about growing up was falling ill. But falling ill is a
double edged weapon. You could skip school but you could get loaded up with
medicines by your well meaning parents. The worst part was that they could take
you to a doctor for an injection. But it was worth it.
Mothers in India were convinced that giving Horlicks to the child was the best
thing especially if the child was ill. The child had to take this white liquid that
does not taste very good to become better. The children very quickly realized that
Horlicks is better to eat than to drink. Thus began the signature tune that is still
running. The boy in the commercial says I dont drink Horlicks, I eat it.

Pan India it was a health drink that had no parallel. Like all the products that
were available in India in the 70s and the eighties the packaging was very
utilitarian and minimal. Horlicks used to come in a glass bottle and the packaging
was as exciting as yesterdays coffee served cold!
Horlicks meant everything to everybody. It was a health drink that every one
consumed. Right from small children to very elderly people. Keeping the
nutritional issues aside it was very strange positioning tack.
Horlicks realized this and came out with its own versions of different Horlicks for
different customers. Horlicks differentiated products now include

46

Junior Horlicks for preschool children. Keeping the
targeted customers in mind the packaging is cute and the
package has the picture of a small elephant which is very
exciting for the small children.

Horlicks regular - For general use. Regular Horlicks is the
health drink for people of all ages. The packaging is
contemporary and has great visuals to attract the children
and the young adults.

Horlicks mothers is special nutritional drink with 26 vital
nutrients designed keeping the specific needs of the pregnant
and breast feeding women. The packaging is very interesting
it is shaped like an hours glass. Hour glass is the shape that all
women crave for and this craving is subtly cashed by Horlicks
by making its "Horlicks mothers shaped like a house glass.

Horlicks Lite and Lite bite - A nutritional drink and snack
specially designed for all health conscious adults and is
also suitable for use by people with diabetes. The
packaging again is very interesting. The Horlicks Lite is
thin and tall. The Horlicks Lite drinkers are health
conscious and having a thin frame is a desire among these
customers.

47

This Horlicks proves that segmentation could be a very efficient way of holding on
and even increasing one's market share. What is needed is a clear focus and
clever innovations in adapting the product to the changing needs of the
customers. It also would mean tinkering with the product design and packaging
to make it more appealing to the target customers.
Price
HORLICKS
Weight(gm) Price
200 100
500 199
HORLICKS JUNIOR
Weight(gm) Price
200 90
500 226
MOTHERS HORLICKS
Weight(gm) Price
200 199
500 375
HORLICKS LITE
Weight(gm) Price
500 240
HORLICKS BUISCUITS
Weight(gm) Price
300 30

48

Promotion
The company had earmarked around Rs 10 crores for brand promotion
throughout 2003. Sixty-five per cent of the ad-spend (around Rs 10 crores) was
for the visual medium and the balance for the print and others. Apart from the
high-decibel media campaign, the company also conducted inter-school
competitions for students to take part. Unlike its other drink (the Rs 170-crore
Boost, promoted by Sachin Tendulkar); the new Horlicks does not have a brand
ambassador. While all the action will be in the general Horlicks segment, the
focus of Junior Horlicks (target segment: kids between one and three) will
continue to remain the same. The brand will continue to talk to the mother since
the purchase decision rests with her.

Place:
It has a strong marketing network in India comprising over 1800 wholesalers and
direct coverage of over 4,00,000 retail outlets. Horlicks sales have been strong in
the south and eastern markets which contributes about 46 per cent and 47 per
cent of the total sales. Milk-deficient South and East preferred white liquid
powders (Horlicks, Viva, and Complan) as the drink could be prepared with hot
water.

49

Marketing Strategies

50

1992 The Company launched a new segment Horlicks Biscuit.
1995- The Company launched Junior Horlicks for Pre-School kids.
2003 Harlicks marketing strategy as well as the brand went through a massive
transformation from the taste to its flavor as well as its packaging. It positioned
itself as nourishing, yet so tasty. The company even re-launched Junior Horlicks,
with better packaging and more nutrients to develop internal resistance of 1-2-3
years old.
2005 The brand tried to communicate with the kids and not just their mothers. It
came up with the famous tagline Taller, Stronger and Sharper. It tried to
convey through its advertisements that children who consumed Horlicks were
taller, stronger and sharper. It even launched another new variant Horlicks Lite
(Healthy drink and Biscuits), which holds the distinction for being the only drink to
be endorsed by the Diabetes India and suitable for the diabetics. It was promoted
heavily through all media with Zero Cholestrol, Zero Added Sugar campaign.
2009 The Horlicks marketing strategy took a new direction when Women Horlicks
was launched by the Company. Konkana Sen Sharma was chosen to endorse the
brand as the face of the urban Indian woman balancing career and home combined
with its tagline- Because your body needs you too captured the essence of the
brand image with simplicity.
2010 With Horlicks Foodle, the brand entered in a new segment- Instant Noodles
(the grain noodle with nine power nutrients). The tagline used to promote this is-
The More Nourishing Noodles with a slogan(as shown in the TV advertisement)
Ek baar khaoge toh sir se nahin nikaal paoge.
2012- Horlicks healthy biscuits- Nutribic was launched. But, the company got in
trouble as Britannia filed a case against GlaxoSmithCline with allegations that the
new product is a copy of their product Britannia NutriChoice. Horlicks even
launched a new communication strategy for its brand by presenting itself as The
New and Improved Horlicks with a mix of 15 vital nutrients. The Scientifically
Proven health drink which makes children Taller, stronger, sharper, highlights 5
signs of growth in children More Bone Area, More Muscles, Better Concentration,
More Active Nutrients and Healthier Blood. This New Horlicks with improved
formulation and packaging has been advertised throughout to communicate the
value proposition of the brand.

Final Report

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Final Report

Uploaded by

Copyright:

Available Formats

A report on the various aspects of Indian

Health Drink Market.

You might also like