MR Milk Food Drinks

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Faculty of Management Studies University of Delhi A Project Report on Study of competitive landscape of MFD (Milk Food Drinks) category and evolution of positioning of various brands Submitted by- Manu Gupta (F-39) Puneet Kochale(F-51) Gaurav Parkash(F- 24 )

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health drink

Transcript of MR Milk Food Drinks

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Faculty of Management Studies

University of Delhi

A Project Report on

Study of competitive landscape of MFD (Milk Food Drinks)

category and evolution of positioning of various brands

Submitted by-

Manu Gupta (F-39)

Puneet Kochale(F-51)

Gaurav Parkash(F- 24 )

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Contents

Executive Summary............................................................................................................................. 4

Background & Motivation ................................................................................................................... 5

Objectives ........................................................................................................................................... 5

Research Methodology: ....................................................................................................................... 6

Introduction ......................................................................................................................................... 7

Nutrition in India ............................................................................................................................. 7

Analysis of various brands ................................................................................................................... 9

Bournvita ......................................................................................................................................... 9

History......................................................................................................................................... 9

Marketing strategies: .................................................................................................................. 11

Marketing Mix: .......................................................................................................................... 12

Horlicks: ........................................................................................................................................ 14

History:...................................................................................................................................... 14

Marketing Strategies .................................................................................................................. 15

Marketing mix: .......................................................................................................................... 17

Complan ........................................................................................................................................ 21

History....................................................................................................................................... 21

Marketing strategy ..................................................................................................................... 22

Marketing mix: .......................................................................................................................... 23

Boost: ............................................................................................................................................ 28

History:...................................................................................................................................... 28

Marketing Strategies: ................................................................................................................. 29

Marketing Mix: .......................................................................................................................... 30

Market Analysis of MFD Products:.................................................................................................... 33

Market Share ................................................................................................................................. 33

Product life cycle ........................................................................................................................... 33

Graphical Representation of Perception in the mind of consumers: ................................................. 34

Primary Market Research from Consumers: ....................................................................................... 35

Data Analysis and Interpretation and Findings: .............................................................................. 35

Retailer survey: .............................................................................................................................. 38

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Conclusion: ....................................................................................................................................... 39

Recommendation: .............................................................................................................................. 40

Appendix:.......................................................................................................................................... 41

Bibliography: .................................................................................................................................... 43

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Executive Summary

Milk Food Drinks (MFD) has re-emerged as one of the most emerging market in India. They

have positioned as a complete food product in themselves and Indian consumers perceives MFDs

as such. We as a group will analyze the main competitors in this category and how they are

faring in the current market and what are their future possibilities. In our final report, we have

listed down the way we are discussing and analyzing various products and their positioning and

its impact on consumers.

Our study was carried out on health drink consumption of people carried out mainly in Delhi

region. After data collection, it was analyzed with different charts and graph, which is very

important to find observation and findings. On the basis of this work, suggestions were made

which were very helpful for analyzing project report.

It was observed that Bournvita got major share among all health drink. The survey was

conducted to analyze the prospective customer awareness for various health drinks in market.

Questionnaire method was used along with interview to obtain the required information.

After the survey was completed the data was first sorted then analyzed and this analyzed data

was later converted in to form of graphs. This makes result to understand easily by everyone.

The objective of the study also included identifying the determinant purchase factors, the

customer segments and the sources of information they rely on. The existing positioning of

prominent brands and the perceptions among different segments were also covered under the

study. The brand loyalty and switching were also studied. The brand personality was also studied

as a part of the project.

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Background & Motivation

The milk shortage and availability of poor quality milk in the 60s fuelled the growth of Milk

Food Drinks in India the biggest market for MFDs were the mil deficient southern and eastern

parts of India after the success of operation flood In Gujrat (Operation Flood was a programme

launched in Gujarat and was aimed at increasing milk production). The brands selling milk food

drinks repositioned themselves as health drinks.

Indian health drinks market is still in its infancy due to the lack of awareness among the

population. In value terms, the health food drink market is around Rs 1, 400 crore and in volume

terms around 65,000 tonnes per annum.

There is a lot of scope for growth in the industry as:

1. Industry is still in its infant stage.

2. The industry depends on the population and India has a huge population which leaves a

huge chunk of untapped market.

Objectives

1. To study the competitive landscape of the milk food drinks industry in India.

2. To study the evolution of the various brands.

3. To analyze the positioning of various brands in the market.

4. To study the market analysis of all brands

5. To analyze the consumer perspective regarding MFDs

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Research Methodology:

The relevant data is collected from both secondary sources i.e. Internet and through primary

sources i.e. consumer and retailer survey. The data collected would help in analyzing the

competitive landscape of the milk food drink industry in India. It would further help in analyzing

the evolution and positioning of various brands in the market and what marketing strategies they

are following to hold their market share in such a competitive market. It would further help us in

recommending future strategies which can help brands to enhance their market growth

Also, our primary research helps us to find the perception and preferences in the mind of

consumers for MFDs. It helps us analyzing how consumers think of particular brand and its

competitors. Also, we performed a survey of 10 retailers which gave us an insight of distribution

channel of these brands and which brand’s demand is the highest among all competitors.

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Introduction

India, the world’s largest malt-based drinks market which accounts for 22% of the world’s retail

volume sales. These drinks are traditionally consumed as milk substitutes and marketed as a

nutritious drink, mainly consumed by the old, the young and the sick.

The Health food drinks category consists of white drinks and brown drinks. South and East India

are large markets for these drinks, accounting for the largest proportion of all India sales. The

total market is placed at about 90,000 ton and is estimated to be growing at about 4%. These

Malt beverages, though, are still an urban phenomenon.

White drinks account for almost two-thirds of the market. GSK Consumer Healthcare is the

market leader in the white malt beverages category with a 60.7% overall market share. Heinz’s

Complan comes in second (in this segment, third overall) with a market share of 12-13%. Market

leader GSK also owns other brands such as Boost, Maltova and Viva.

Currently, brown drinks (which are cocoa-based) continue to grow at the expense of white drinks

like Horlicks and Complan. The share of brown drinks has increased from about 32% to 35%

over the last five years. Cadbury’s Bournvita is the leader in the brown drink segment with a

market share of around 15%. Other significant players are Nestlé’s Milo and GCMMF’s

Nutramul.

Nutrition in India

After 4 years of age, a child's energy needs per kilogram of bodyweight are decreasing but the

actual amount of energy (calories) required increases, as the child gets older. From 5 years to

adolescence, there is a period of slow but steady growth. Dietary intakes of some children may

be less than recommended for iron, calcium, vitamins A and D and vitamin C, although in most

cases as long as the energy and protein intakes are adequate and a variety of foods, including

fruit and vegetables, are eaten- deficiencies are unlikely.

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Children need to drink plenty of fluids, especially if it is hot or they are physically active. Water

is obviously a good source of liquid and supplies fluid without calories. Variety is important in

children's diets and other sources of fluid such as milk and milk drinks, fruit juices can also be

chosen to provide needed fluids.

Consumer attitudes to health drinks are mainly influenced by quality attributes. Ethical factors

are important in some cases, but they may be overstated. The relationships between consumers'

awareness of health drink, price and perceived quality of food were investigated by tests

involving series of consumer panels and sensory evaluation. This has important implications,

indicating that not only price, but also sensory quality of health drink must be considered in

order to maintain repeated purchases by most consumers.

It is widely accepted that consumer acceptance of drinks is mainly determined by their sensory

perception, while choice is strongly influenced by the perceived value for money. Ethical factors

are important in some cases, but they may be overstated.

About two thirds of the consumers that participated in the survey believed that health drink is

good for the environment, and 55% thought that it is healthier. However there was some

confusion relating to the use of pesticides and chemicals in that. Few consumers’ distinguished

health drinks by appearance or taste. Buyers of health drinks were more likely to indicate that the

appearance and taste are better, but environmental protection was still the dominant perceived

benefit. Buyers who believe that health drink is better also think that it is expensive (p<0.05). In

this study, 80% of the consumers perceived health drinks to be too expensive (49% were non-

buyers and 31% buyers)

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Analysis of various brands

In the current market, Following MFD products are available and analysis of all of them is done:

Bournvita

Horlicks

Complan

Boost

Bournvita Starting from 1948, when it first set its foot on the Indian Shores, Cadbury Bournvita had a

lustrous journey through the times, and emerged as a market leader in the

brown health drink segment with a market share of 15%, as per a recent

business standard survey.

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.

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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.

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 endeavor 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.

Events and activities

Bournvita Confidence Academy is not a School but a reality show. The show was premiered on

July 2007 in the Pogo channel, is different from the usual reality shows. The show features kids

who have exceptional talents in various fields like dancing, racing, singing, magic, studies etc. In

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the reality show, these kids act as Gurus and are expected to teach each other skills. So you have

a magic whiz kid learning to sing.

Marketing strategies:

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 flavored 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.

Defining key audience

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 flavored 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.

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Marketing Mix:

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

& flavors.

For today’s kids who detest milk in its pure state unless flavored, 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.

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

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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 O’Brian 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 encyclopedia). 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.

Packaging

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.

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Horlicks: In India, over 2 billion cups of horlicks are drunk every

year. Horlicks is the only drink clinically proven in

India to make kids stronger, taller and sharper. The

Horlicks available has been scientifically developed and

specifically caters to the nutritional needs of the Indian

diet. Horlicks alone enjoys 50% of the health food

drinks market. Horlicks has been popular brand in India

since 1930. Re-launched in 2003 included a new look

for the brand targeting to its core customers, children up to 14 years of age. New products have

been developed specifically for India, catering different segments of Indian market. Successive

generations of Indians over the past half century have consumed it, stirred in a glass of hot milk

or water, and become totally confirmed believers of horlicks virtue of good health and nutrition.

This is only to be expected for a brand that consumers have been using since 1930. Today,

Horlicks is one of the best known brands in the health food categories. It owes its success to its

brand heritage, commitment to quality, focused communication, a strong distribution network

and a deep understanding of customers’ needs.

History:

Some malted barley, pinches of wheat flour

with a dash of evaporated milk. That's

Horlicks recipe for success. James Horlicks,

after whom the brand is named, was a chemist

who worked for a company which produced

dried infant food. He became ambitious after

inventing some recipes of his own. So along

with his brother William, they found J and W

Horlicks of Chicago.

Up until the 1960s Horlicks was positioned as

an adult restorative drink that gave extra

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energy, especially during convalescence. The 1970s saw its position shift to ‘The Great

Nourisher’. It was in this phase that the brand saliency shot up. The next decade saw Horlicks

face an immense external challenge. Thanks to Operation Flood, there was availability of milk

and the raison détre for buying the brand became weaker. Horlicks fought back. In 1984,

Horlicks aimed at growth by growing the consumer base. By 1994, it had created ‘Ideal

Horlicks’ – and improved product formulation that also brought back the taste people reminisced

about. In 2002, Horlicks was re-launched on the immunity platform.

Horlicks has a significant presence in over fifteen countries. Today Horlicks is the best known

brand in the health foods category in India. The brand enjoys the trust of generations of Indian

mothers and this relationship has been nurtured by the brand by fortifying the product from time

to time. In 1998, Horlicks was fortified with Smart Nutrients – a unique combination of vitamins

and minerals – intended to imbibe growing children with mental agility and physical fitness.

Junior Horlicks was re-launched with extra nutrients to build the immunity of little children.

Today, Junior Horlicks contributes 11% to Horlicks’ total sales turnover and has been one of the

fastest growing product extensions to the Horlicks brand.

But it isn't just product development that Horlicks has concentrated upon. It has also created new

attractive packaging options including jars, refill packs and sachets. Horlicks was the first brand

in India to introduce a refill pack option and also the first to shrink-wrap bottles. In a way,

there’s a Horlicks pack for every occasion and mood.

Marketing Strategies:

Glaxo Smithkline Beecham, the makers of Horlicks, complicated matters by launching a brown

variant of their white powder – Chocolate Horlicks – which could be consumed

unlike Bournvita, with water alone. They extended the Horlicks brand name along many

dimensions into several sub brands (Junior Horlicks, Mother Horlicks, and Horlicks with Smart

Nutrients). Though not very explicitly horlicks tries to address the younger population i.e. kids

under the age of 15 as it has been found that maximum consumption of HFD is by this

generation. The market is still segmented based on product capabilities and usage method (brown

and white powders) through there are signs that this is beginning to

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change. Thus the segmentation is largely on the basis of age, the advertisement and sales

promotion also focuses on kids by way of cartoons featuring in the advertisements and

also cartoons serial sponsorships. From a drink that was supposed to promote a good night’s

sleep to that one can grow taller, stronger and sharper, Horlicks has come a long way.

Re-launch of Horlicks:

GlaxoSmithKline (GSK) has re launched its Rs 800-crore Horlicks brand in three new variants

— vanilla, honey and chocolate in addition to its regular malt. The re-launch is done for the very

specific purpose of changing focus from nutrient value to the flavours of the product. This is

done to change Horlicks from a boring nourishment drink to attractive health drink. There launch

includes a change in appearance with the change in packaging style. The positioning has also

been changed from mothers to children in the new marketing strategy. In a re-launch campaign

New TV advertisement has been created. While the first phase of the campaign would talk about

the re-launch of Horlicks, the second phase will talk about the new features of the product.

Brand Extensions:

GSK has introduced various brand extensions in the last few years and

notable among these are Mother Horlicks, 'Women’s Horlicks' and 'Junior

Horlicks'. The former caters to the nutritional needs of pregnant and

lactating mothers while the latter is targeted at the growing child in the age

group of 1-3 years. Both the brand extensions have been very well accepted

in the market and have shown good growth rates since 2001. GSK has

already re-launched 'Horlicks' and 'Boost' to maintain the top of mind recall

for its products. Further the new products to be launched by the company will strengthen the

presence of the company in the MFD markets.

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Marketing mix:

Product:

Horlicks is made from milk, wheat and malted

barley. GSK has re-launched junior horlicks. It was

realized that Horlicks was considered as a boring

nourishment drink and was beginning to lose its

significance. The company research showed

that preference for flavours reigned higher than nutrients, and hence, the decision to make the

drink tastier and enjoyable was taken. The re-launched product contains a 'combination of

nutrients that act as resistance builders' and helps 'build up the immune system of the child'. The

new formulation brings about a significant improvement in this much liked health drink by

incorporating vital micronutrients that are known to have proven co-

relation with mental sharpness and physical activeness. These are Iron, Vitamin B2, Vitamin B6,

Vitamin B12, Folate and Vitamin C. The company has re-launched Horlicks in three new

variants like vanilla, honey and chocolate apart from the regular malt.

The re-launch also includes a new look for the brand not only in terms of packaging but also

new positioning which addresses children instead of mothers. Junior Horlicks is now positioned

for children in the one to three age-groups. The brand variants targeted different consumer

segments such as Junior Horlicks for infants, Mother’s Horlicks for expecting mothers, Horlicks.

Three-in-one and Horlicks Smart Nutrients positioned on health platform and targeted at

children.

The new avatar of Horlicks has the highest shelf appeal and maximum visibility. The new

Horlicks formulation is accompanied by contemporary packaging in hues of bright blue and

orange. It has also gone in for a packaging change with more convenient-to-handle jars. The new

jars are more convenient to handle and dispense from.

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Price:

The GSK has chosen the price for horlicks keeping in mind the

value addition done to the product by the company along with the consumer comfort ability.

Horlicks is available in three SKUs:

500 gm jar (Rs 114),

500 gm GP (Rs 105)

200 gm jar (Rs 58)

The company has not gone for reducing price as they believe that Price alienation could translate

into alienation with the product proposition itself. Diehard Horlicks consumers who may have

moved out of the brand and learnt to live without it may not find a credible reason to go back if

such a step is being taken.

Place:

The place where customers buy a product, and the means of distributing your product to that

place, must be appropriateand convenient for the customer. The product must beavailable in the

right place, at the right time and in the right quantity, while keeping storage, inventory and

distribution costs to an acceptable level. Customer surveys have shown that delivery

performance is one of the most important criteria when choosing a supplier. This could be in a

shop window, but it could also be via the internet.

Distribution Channels:

Following is the distribution channel followed by GSK for Horlicks:

Factory

Distribution Channels

Wholesalers

Retailers

The first link in the channel is the factory situated at Sonepat, which has been designed to

produce Horlicks formulations. The Sonepat plant is of 26,000 tonnes per annum. GSK has total

workforce of over 3,000 people at its manufacturing plants located in Nabha and

Rajahmundry. Its packing facilities are located at Hyderabad and Ballabgarh. GSK has

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four regional Sales Offices in the four metros which coordinate the sales,

distribution and collection activities in their respective regions. The company now has 34 sales

depots (one in each State), as against 28 in 1998.The product is supplied to wholesalers from

over there. It has a strong

marketing network in India comprising over 1,800 wholesalers anddirect coverage of over 4,25,0

00 retail outlets. Its wholesaler network has grown from 1,317 in 1998 to 1,800 at present. These

wholesalers further supply to 425,000 retail outlets across the country. SBCH has increased its

reach over the years, which has helped it gain incremental market share.

Promotion

Promotions of Horlicks are done by GSK through both direct and indirect means. These involve:

Running seminars about health concerns and health supplements:

GSK organized a seminar for doctors in Chennai stressing on the importance of nutrition during

illness and convalescence. GSK is also planning to take up major initiative to increase awareness

of its brands among school kids. Sponsored by Horlicks, the flagship brand of GlaxoSmithKline,

the fest is being held in the cities such as Bangalore, Mumbai, Delhi, Kolkata, Chennai,

Hyderabad, Cochin, Pune and Jamshedpur.

Advertising:

The advertising account is being handled by creative

agency HTA. The

company has also launched a television ad campaign cre

ated by JWT featuring kids, which would be aired

across channels. The TV campaign would also be

accompanied by print ads and hoardings. Mothers

always hope to see their children grow up strong and

healthy. This age-old fact is the backbone of Horlicks

communication strategy. It lays the foundation for a

child’s future, hence it’s tagline: “Horlicks, nourishment for life”. In late90s its ads reverberated

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through the television sets of every Indian household and they just couldn’t get it out of their

heads. Its campaign was well

received by Indian mothers. Also there campaigns are still lodged in consumers’ memory.

Promotions to Customers:

Besides relying on conventional bottles, the Horlicks brand is also being aggressively

pushed in the market through a mix of refill-packs and bundled gifts (like katoris).Promotions

include special discounted bundled packs and Periodic price discounts of between 5% and 10%

off the recommended retail price are also being provided by the company from time to time.

Promotion to Retailers:

Recentlytheyhave asked retailers to display three bottles of Horlicks arranged in a

triangular form for 45 days with a poster advertising Horlicks in the background. The rationale

behind this is that bottles arranged in this fashion attract consumers’ attention. Moreover after 45

days the GSK people will conduct a lucky draw of the retailers who participated in this scheme

and offer them attractive prices.

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Complan

History

When British soldiers landed on the beaches of

Normandy during World War II, they were carrying more

than just ammunition for firepower. They carried with

them a powdered nutritional supplement called Complan

which had been introduced by Glaxo. Glaxo brought

Complan to India in 1964 and marketed it through doctors

as a convalescence drink. After it went OTC in 1969, Complan continued to be perceived as an

ethical product. In those days its tag line “Complan has 23 Vital Nutrients whereas Milk has 9”

had established Complan’s superiority over milk on nutritional delivery

The brands’ next major milestone was reached in 1975 when, in order to expand its user base,

Complan made a strategic shift in its target market and positioning. Complan was now

repositioned as an ideal nutritional supplement for growing children. In 1994, Heinz bought out

Complan from Glaxo. Given Heinz’s commitment to quality and leadership, Complan has

evolved into India’s premium health beverage for growing children. It has now come to stand for

the Gold Standard of Nutrition (Source: Pathfinders Track -Kolkata). The brand’s positioning as

the ‘Drink for growing children’ coupled with its superior nutritional formulation are its greatest

strengths today.

Complan’s current consumer base runs into hundreds of thousands of households across the

country. It is retailed through more than 225,000 outlets and has an impressive 16.8% share

across the entire MFD category (Source: IMRB Household Panel, MAT August 2003). Apart

from India, Complan is also available in the UK, Australia, Venezuela, Nepal and Sri Lanka.

Flavoured varieties were first introduced in the 1970s

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 cardiovascular disease.

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

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

In 2002 a majority stake in the UK business (Complan Foods) was sold to the Saatchi brothers'

Saatchinvest.

Complan’s growth closely resembles its core consumers; it has been growing over the last twenty

years to register a constant upswing in its market. In this period, it has doubled its market share

while commanding a price premium in excess of 40% over its nearest competitor.

Marketing strategy

Complan was first launched by Glaxo, UK, during

World War II. It was part of the ration forth soldiers.

Since then, the brand has travelled a long way. 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 man’s source of nutrition’. This positioning did

not bring much success.

Repositioning

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 man’s 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, nature’s best nutrition for children. It carried 23 nutrients, which milk did

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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. 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.

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. 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. Flavours like cardamom and

strawberry were added; new packaging also came. Complan finally found a good orbit.

Marketing mix:

Product:

Core Benefit

Complan has always sold itself on the concept of “Health” and a “Complete Health food “or a

healthy and problem free life.

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Basic Product

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 competitor’s strategy.

Augmented Product.

In Complan this would refer to the brand being considered an alternative to milk as far as

nutrition is concerned.

Product variety

We have Complan coming in different flavors, 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 Mango, and Complan Yummy Caramel. Complan has also launched Complan Family,

a variant aiming at all members of the family.

Product features

Complan proclaims itself as “Complan for growth” and has the taglines: a “Complete Planned

Food” and “Ideal for Growing children”. These claims are then backed up by a paragraph on the

package explaining that Complan has 23 vital ingredients or 23 vital nutrients in planned

proportion which are vital for the growing years of Children. It goes to explain that Complan has

protein content that is 100% milk protein which is one of the best proteins for growth. Each

package also lists out the 23 ingredients in a tabular form along with the nutritional value of each

ingredient along with an explanation listing out the benefits of each.

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Price

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.

Place:

The place where customers buy a product, and the means of distributing your product to that

place, must be appropriateand convenient for the customer. The product must beavailable in the

right place, at the right time and in the right quantity, while keeping storage, inventory and

distribution costs to an acceptable level. Customer surveys have shown that delivery

performanceis one of the most important criteria when choosing a supplier. This could be in a

shop window, but it could also be via the internet.

Distribution Channels:

Following is the distribution channel followed by Complan:

Flavour Package price

Natural 200g 83

500gm 173

Kesar Badam 400g 218

Pista Badam 400gm 198

Chocolate 200gm 99

500gm Rs. 218

Family delite 500gm 163

Strawbery 500gm 195.00

Mango 500gm 198

Caramel 500gm 198

Memory 400gm 203

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Factory

Distribution Channels

Wholesalers

Retailers

Promotion

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 can’t? Find the time to eat. That’s 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

organization 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

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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 Medical certification;

this was consistent on Complan’s 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.

The Advertisement War

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'.

How Complan Reaches Its Target Markets?

After much ado we get back to the basic question as to what are the means by which Complan

reaches to its target market:

1. TV Advertisements

2. News Papers, Print Media.

3. Retail Outlets-Layout

4. Schools

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Boost:

Boost is India's leading malt-based Health Food Drink in a chocolate flavour. It was developed

by the company's R&D team in 1974 and launched in 1975-76. Its success characterizes the

manner and skill with which GlaxoSmithKline Consumer Healthcare has responded to the

changing contours of this product segment in recent times. Boost has a market share of 13%

countrywide amongst all Health Food Drinks (HFD), while in South India - the biggest region

for the category - it commands a market share of 24%.

History:

Boost was developed by the company’s

Indian R&D team in 1974 and launched in

Kerala in 1975/76. Positioned as the

'energy fuel', the brand soon generated

great consumer pull and was subsequently

launched at a national level.

Around 1984, however, Boost sales seemed to plateau. This led to a complete re-think about the

brand strategy. A deeper understanding of purchase dynamics of the category revealed that by

the latter half of the 1980s, children had come to become strong influencers in a family's

purchase of these HFD products. What was also observed was that this section of the population

had the highest requirement for supplementary energy and was also the most enthusiastic about

sports - cricket, in particular.

i.

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GlaxoSmithKline plc. is recognized as one of the leading health and pharmaceutical companies

in the world. Its powerful combination of skills and resources has enabled it to offer frontline

health products to the consumer. These traits are amply evident in the Boost brand. But brands

are not built by formulation alone. They require strategic thinking and a strong positioning

platform. Success for Boost has come as a result of constant brand building efforts and the

proven positioning platform of ‘energy’. The brand had the courage of conviction to make a

paradigm shift in targeting the child in its communication. Today, ‘Boost is the secret of my

energy’ is the most recalled ‘sign-off’ in its product segment and has defined the brand's identity.

Also, Boost is the first HFD to have ever used celebrity endorsement to convey its proposition

and has successfully carved out the Energy HFD market in India. In recognition of these

achievements, Boost has won prestigious awards such as the World Star for its packaging and the

finalists’ position in the Effie Awards, 2000, for effective communication.

Marketing Strategies:

Boost is a part of Indian Health Food Drinks (HFD). 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 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. This was good enough to attract children. With competitors like

Bourn vita, complain, Horlicks, this brand had to attract the children and provide them with a

better, healthy, tasty, and nutritional energy drink.

Boost is the first HFD to have used celebrity endorsement to convey its energy proposition and

has thereby successfully differentiated itself from other brands. It has been successfully endorsed

by India's most famous cricket stars, particularly those with a humungous following among

children. Kapil Dev, the most charismatic cricketer of his time flagged this off in the1980s. The

baton passed to Sachin Tendulkar in the 1990s.Sachin has remained steadfast in his support for

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Boost with the explosive Virender Sehwag joining the Little Master as brand ambassador in

2001.

Marketing Mix:

Product:

Boost is a malt-based drink in chocolate flavour, with the brand philosophy being to

continuously innovate and pioneer changes in the category. In 2002, the brand created history by

re-launching Boost with 'Power Boosters™', a completely different product from any other HFD.

The New Boost contains copper and biotin, in addition to its extant composition of vitamins and

minerals. Two serves of New Boost (approximately 30 gms) as per the CODEX Alimentarius

Commission of the World Health Organisation, 1995, provide 50% of the daily requirement of

Vitamin B1, B2, B6, B12, A, C, D, Niacin, Pantothenic acid, Biotin, Folic acid, Copper and Iron

and 25% of Calcium. The vitamins and minerals not only provide adequate energy for the

consumer they also help in the efficient working of body cells (by releasing energy from food),

formulation of healthy blood and make bones stronger. This re-launch has helped Boost capture

the position of number one brown HFD in India.

Price:

Boost is charging more if you are purchasing 200gm and comparatively lesser when you

are purchasing 500gm. The tendency behind this type of pricing is when you purchase in bulk

you get at lesser price.

Boost Price(Rs)

Weight(gm) Jars Refill pack

200 54 –

500 108

99

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Consumer behaviour

Energy drinks or milk drinks are perceived as a luxury. This explains the slow off-take. While

white beverages are hailed for their therapeutic offerings, consumers look at browns as mere

taste additives. Brand loyalties are not very strong as the key target, children, are always looking

for new products. Hence our company takes a good care that our each and every promotion

strategy is pertaining to our target customer which is the children between the ages of (7-14).

Place:

South has been the major contributor in making boost one of the biggest brown powder brands in

India. Today the South zone contributes as much as 80% of the Boost sales and is a household

name. In markets like Chennai Boost has approximately 40 ± 45% household penetration.

The advertising line ‘Boost is the secret of my energy’ has become an ever-present line in every

household today. Southern markets had contributed significantly towards the success of

the brand. Boost has grown from a market share of seven per cent in 1985 to 24 per cent in 2002.

Distribution Network of Boost

Promotion:

Manufacturer

Depots

Wholesalers

Retailers

Consumers

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Promotion campaigns such as freebies and contests also

play an important role in influencing brand choice. These

campaigns are mainly targeted at children who force their

parents to buy these products. Free gifts like crystal jars, pet

jars and sippers also attract consumers.

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 realised 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. (The kid who starred with Kapil for the ad was Nikhil

Chopra who later played for India0in 2000, the brand also roped in Sehwag to endorse the brand.

At that time, Sehwag and Sachin was at fire as the opening pair. Boost was innovative not only

in the promotion front but also in product improvements. in2002, 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). Realising 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

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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 favourite of marketers and kids.

Market Analysis of MFD Products:

Analysis of various MFD products based on various parameters and their graphical

representations are given below:

Market Share

The below graphs shows the market distribution of MFD various brands:

Product life cycle

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Graphical Representation of Perception in the mind of consumers:

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Primary Market Research from Consumers:

This research is done through a survey which we have taken in and around Delhi region. We

have targeted mainly students. The complete findings and analysis of the survey is done below.

Data Analysis and Interpretation and Findings:

The data was collected in the form of questionnaire. We have collected data from 50 people and registered

their responses. This data helps us to understand the consumer behaviour for MFDs. The findings are as

follows:

Do you consume MFD - Milk Food Drinks (Bournvita, Horlicks, Complan, Boost etc.)?

Yes

43 86%

No

7 14%

Almost, 86% of the consumers consume MFD.

How often do you drink MFD (Milk Food Drinks)?

Twice in a day

6 12%

Once in a day

16 32%

Once in 2 days

5 10%

Once in 3 days

7 14%

Weekly

7 14%

Other

9 18%

MFDs are consumed by different consumers in different frequency butt a lot more people prefer at least to

have it once a day.

Why do you add an Milk Food Drink(MFD) to your milk?

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Nutritional Value 18 36%

Energy factor 9 18%

Gives taste to plain milk 17 34%

Brand loyalty 0 0%

Other 6 12%

As can be understood from the chart, most of the people either drink MFD for nutrients or to add taste to milk.

Which brand of MFD do you drink regularly?

Bournvita

23 46%

Horlicks

14 28%

Complan

5 10%

Boost

3 6%

Other

5 10%

Bournvita is the most preferred brand in the minds of consumers followed by Horlicks.

In a particular brand, which flavor do you prefer?

Plain basic flavour

6 12%

Vanilla

4 8%

Chocolate

29 58%

Honey

5 10%

Strawberry

0 0%

Other

6 12%

Almost 60% of the consumers prefer Chocolate favour in any kind of MFD.

How do you decide on which MFD brand to use?

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Media Ads - TV, Newspapers, Websites

9 18%

Recommendation from friends/family

11 22%

No particular choice. I decide at the shop

5 10%

Brand loyal. Consume the brand which I have been having since childhood

14 28%

Other

11 22%

A mix of opinions from consumers regarding their choice on purchasing of MFD.

What is your occupation?

Professional

12 24%

Self Employed

1 2%

Student

37 74%

A major portion of our survey was focused on students as they are the prime target for MFD market.

Gender

Male

40 80%

Female

10 20%

The survey was filled by a mix of both the genders. Although, 4/5th of the sample was male category.

Age Group?

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<17

1 2%

17-25

36 72%

26-35

5 10%

>35

2 4%

Majority of consumers are teenagers.

Retailer survey:

The survey was conducted in and around Delhi university and 10 retailers were contacted.

Kirana wallas, organized retail outlets, medical shops, outlet of chain of medical stores were

contacted. Some of the findings of the survey are as follows:

1. According to the retailers Bournvita is the most preferred brand.

2. Chocolate flavour is the preferred choice of the consumers of the region.

3. 500g refill pack is every popular amongst consumers.

4. Usually parents come go to buy the product.

5. All the brands pay similar margins to the retailers.

6. The distribution channel of all the brands in the region is efficient and ensures timely

delivery of he product to the retailers.

7. The consumers generally come with a preferred choice to buy a particular brand and do not

consult the retailers.

8. The product is usually purchased by retailers on cash basis some of them also pointed out

that some distributors also offer credit sales.

9. A kirana wala usually sells 20-30, 500g packets per month.

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Conclusion:

As the customer is considered to be the king of the market, this fact is very much true for the

liquid food drink industries. It is very important on the part of the organization to learn customer

behavior in order to increase their sale and create a good brand image in the minds of the

customer.

In the survey, we have targeted different occupation group from students to professionals to self

employed people. The analysis is done taking into consideration all the different age groups of

both genders.

From the survey carried out and after data analyses of the information obtain it can be concluded

that people are aware of different brands of health drink. Most of the customers prefer to use 1

glass a day as it is convenient in both way in terms of quantity and notorious. Brand name is

consider as an important factor while purchasing a health drink and in which Bournvita of health

drink is most preferred brand name among the customer. It is also concluded that Television has

played a vital role in spreading awareness of various health drink brands. Many people also

consider the quality and hygiene maintain by the company. It is also found that price plays an

important role in any product but service also plays equal importance in success of any product.

All the information gathered during this survey and after analyzing it properly one come to only

one conclusion that liquid food drink industries has a great scope in future.

Since herein through our research we have found that the brands having a brand ambassador

possess greater recall, hence Bournvita can go in for a brand ambassador. MFDs Should also

concentrate on the section of the audience whose buying decision is influenced by the freebies

provided along with a product, if that becomes the norm of the day due to its competitors. MFDs

should focus more on reinforcing advertisements stating nutritional facts supported by

researchers and doctors as it is seen that the consumer preference tends to look out for these

aspects whilst forming perceptions about the nutritional value of the offering.

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Recommendation:

We would recommend that the companies should strength its distribution channel especially at

cafeteria and local retailer, which is the biggest market for health drink.

The companies can advertise the product on T.V. especially during breaks in daily soaps and

cartoons and other kids related shows as it has been observed in the survey that mothers

generally buy the product an kids are the primary target consumers of the product. The

companies should make use of more advertising media like T.V., Display at various outlets,

Hoardings etc. that are very useful to increase the awareness regarding the product.

They can organize campaigns in schools to attract kids. It has been observed that similar margins

are offered by all the brands and hence the companies can offer greater margins to increase the

market share in short term.

The companies should come with schemes like specifying a particular place where the product

should be kept on the shelf in organized retail outlets and providing shelf to the kirana walas

which would advertise logos of the brand.

It has been observed that the 500g pack is very popular amongst the consumers and also the 85g

pack is catching pace fast. This shows that the companies can concentrate on innovative

packaging to attract consumers. Also since the target market is kids so changing packaging

frequently can attract the consumers.

Also, they should invest more in R&D in order to come up with a product which has more

nutritional values. The companies should come up with new types of schemes which would

attract more number of people toward their product.

The feedback of the retailer should be collected regularly so that the companies can come to

know that were they are standing and design some attractive scheme for retailer, which can

differentiate from competitors and interesting for retailer.

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Appendix:

The following survey is conducted for analyzing the consumer analysis on MFDs.

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Bibliography:

http://www.cadburyindia.com/in/en/brands/beverages/pages/bournvita.aspx

http://www.gsk-ch.in/products.aspx

http://www.horlicks.com/html/index.html

http://www.boost.com/

http://www.complan.com/

http://www.heinz.co.in/about-brand/complan-child-growth.aspx

http://www.heinz.co.in/about-brand/complan-child-growth.aspx