PIONEER INSTITUTE OF PROFESSIONAL STUDIES, INDORE

DILIGENCE & EXCELLENCE

MAJOR RESEARCH PROJECT

On

A STUDY OF BRAND TRUST AND BRAND PROMOTION STRATEGIES OF

“COMPLAN”

A Research Submitted in Partial Fulfillment for the Award of the Degree of Masters of Business Administration

(2010-2011)

Submitted to: - Submitted by:-

Dr. V. K. Jain Deepraj Jain

MBA III Sem

Conceptual Framework :

A brand is the identity of a specific product, service, or business. A brand can take many

forms, including a name, sign, symbol, color combination or slogan. The word brand began

simply as a way to tell one person's cattle from another by means of a hot iron stamp. A

legally protected brand name is called a trademark. The word brand has continued to evolve

to encompass identity - it affects the personality of a product, company or service.

Brand is the personality that identifies a product, service or company (name, term, sign,

symbol, or design, or combination of them) and how it relates to key constituencies:

Customers, Staff, Partners, Investors etc.Some people distinguish the psychological aspect,

brand associations like thoughts, feelings, perceptions, images, experiences, beliefs, attitudes,

and so on that become linked to the brand, of a brand from the experiential aspect. The

experiential aspect consists of the sum of all points of contact with the brand and is known as

the brand experience. The psychological aspect, sometimes referred to as the brand image, is

a symbolic construct created within the minds of people and consists of all the information

and expectations associated with a product or service.

People engaged in branding seek to develop or align the expectations behind the brand

experience, creating the impression that a brand associated with a product or service has

certain qualities or characteristics that make it special or unique. A brand is therefore one of

the most valuable elements in an advertising theme, as it demonstrates what the brand owner

is able to offer in the marketplace. The art of creating and maintaining a brand is called brand

management. Orientation of the whole organization towards its brand is called brand

orientation. Careful brand management seeks to make the product or services relevant to the

target audience

Strategic planning is an organization's process of defining its strategy, or direction, and

making decisions on allocating its resources to pursue this strategy, including its capital and

people. Various business analysis techniques can be used in strategic planning, including

SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats ), PEST analysis

(Political, Economic, Social, and Technological), STEER analysis (Socio-cultural,

Technological, Economic, Ecological, and Regulatory factors), and EPISTEL (Environment,

Political, Informatic, Social, Technological, Economic and Legal).

Strategic planning is the formal consideration of an organization's future course. All strategic

planning deals with at least one of three key questions:

1. "What do we do?"

2. "For whom do we do it?"

3. "How do we excel?"

The preparatory phase of a business plan relies on planning. The business plan include

Analysis of the Current Situation and Marketing Plan Strategy and Objectives.

Business trends analysis

Market analysis

Competitive analysis

Market segmentation

Marketing-mix

SWOT analysis

Positioning - analyzing perceptions

Sources of information

Marketing plan strategy includes :

Marketing strategy

Desired market segmentation

Desired marketing-mix

TOWS-based objectives as a result of the SWOT

Position & perceptual gaps

Yearly sales forecast

Complan Evolution

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.

INTRODUCTION

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. 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 brand’s 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 children’s nutrition in

India. “I’m a Complan Boy, I’m a Complan Girl” remains one of the most well loved and

instantly recalled jingles even today.

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.

Since its entry into the Indian market in 1964 and as an over-the-counter (OTC) product since

1969, Complan has come a long way. It has kept pace with a growing market which itself has

evolved into a mature category. Complan derives its name from Complete Planned Food

which is exactly what the product aims at delivering.

Competitor Products:

HORLICKS:

Horlicks is a flagship product from the GlaxoSmithKline (GSK) stable and came into

existence in 1873. Horlicks positions itself with nutrition. It had a strong nutritive association

for very long period. GSK decided to extend this nutritive association and the communication

was changed from “Great Family Nourisher” to “Pleasurable Family Nourisher”. GSK began

to introduce different flavours (Chocolate, Vanilla, and Elachi) in an attempt to create

excitement in the customers. The packaging of the bottle was also changed in order to give

the bottle a more attractive look. Horlicks also decided to tap the market of the aged with the

introduction of Horlicks lite. Horlicks lite is a sugar free drink targeted at the health

conscious /diabetic people. This is a good marketing move since this segment is fast growing

and Horlicks have the advantage of a positive brand image. The brand was further

strengthened by the launch of Horlicks Mother (For pregnant women and lactating mothers)

and Junior Horlicks (For young kids between the age group 3 to 12). Other than the Junior

Horlicks, most of the variants have met with a cold response.( source: FCB ULKA Comstrat

2000 ).

BOURNVITA

Bournvita is a product from the stables of Cadbury India. There was a transition in the

marketing campaigns of this product from the 70’s where it just represented a good

upbringing to the new millennium where the company tried to reposition itself as a means for

children to build their confidence levels to be able to take on any challenge. “Tan ki shakti

man ki shakti” became an anthem among kids. Contemporary packaging and a new

communication strategy supported the new product. Cadbury Bournvita advertising has

moved with the times to reflect the changing needs of the consumers. Bournvita has also been

attached to various quiz competitions (such as Bournvita quiz contest) and has been

promoting this event which has played a major role in promoting the brand and the brand has

become synonymous with the quiz contest. To strengthen the brand proposition, Cadbury has

set up Bournvita Nutrition Centres (BNC), where nutritionists propose the RDA

(Recommended Dietary Allowance) percentage for a child.

BOOST

Boost is a product from the Glaxo SmithKline (GSK) stable. Boost is health food drink

(HFD), which is positioned on the energy platform in India. Developed by the Indian R&D

team in 1974, and launched in 1975-76 in Kerala, Boost has been one of the fastest growing

brands in the Indian GSK Consumer portfolio. sIt has the maximum market share in the

South India. Leveraging the brand’s successful cricket association, it has chosen Sachin

Tendulkar to be the brand ambassador. The brand is targeted at boys in the age group 5-12

age bracket. Boost has had to restage itself since 2005 as a more exciting product which is

visually more appealing to all through its packaging .The company has also added advance

energy boosters wherein extra additions have been made such as magnesium, calcium etc so

that the maximum amount of nutrition is given to the children.

MALTOVA

Maltova now owned by GSK, was acquired from Jagatjit Industries Limited in Feb 2000. It

was relaunched in June 2002 with enriched formulation and improved packaging. The

relaunched New Maltova had Active RechargersTM, a combination of essential vitamins,

minerals and carbohydrates. Maltova was again restaged in November 2004, with an

attractive new packaging that connotes an extremely high taste appeal and a sense of fun and

excitement. The communication and the promotions have been made more exciting by

bringing in cartoon characters like Scooby doo. Through this it was primarily aimed at the

children.

MILO

Milo, world’s largest selling chocolate beverage, introduced by Nestle India in 1996-97 has

managed to make impressive gains in this competitive market. Milo’s ‘energy’ promise is in

line with its international positioning. The company believes that ‘energy’ and ‘taste’ is a

more credible positioning for this category than ‘nutrition’, as the latter is more a function of

milk with which it is taken. Buying market share is the mantra of Milo’s success. An integral

part of their strategy is continuous promotions, which finds immediate appeal with children.

Not only has this strategy helped Milo gain market shares from Bournvita and Complan but

also it win market shares for the white beverages. Though this strategy has helped Milo post

early gains, it is yet to be determined whether volumes can be sustained.

Literature Review:

Bracker and Pearson (1986) conducted study on Complan Brand Strategy in that he stated

that Heinz is known for its wide range of food products. From pureed carrots to baked beans

on toast - latest marketing strapline: 'the superbean' - the company has basic nutrition

covered. It seemed a natural extension, in 1994, to buy the Complan nutritional supplement

brand from pharmaceutical company Glaxo Smith kline. But with the fabled '57 varieties' to

look after, the enthusiasm for Complan gradually faded until it became a typical 'orphan

brand'. By the turn of the millennium, it had a small but respectable turnover of #5.5m. This,

in the context of Heinz Europe, turning over several billion pounds, is small fry. At around

the same time, SaatchInvest was conceived by Maurice Saatchi, who brought venture

capitalist Andrew Leek from Alchemy Partners to seek out new business prospects.

Graham.G (1999) conducted a research on Innovation & strategic growth Research shows

new experiment will lead to growth of organization .published by new south wale’s

publication. A corporate strategy is a comprehensive set of activities developed by top

management to aid an organization achieve its corporate objectives. Involving all parts of an

organization, these strategies consider both internal and external environments.

Rami Schayek(2001) did Empiric studies'on A correlation between strategic planning and

performance indicate that planning& performance are directly related to each other

Rue and Ibrahim (1998), Perry (2001) and Wijewardena, Zoysa, Fonseka and Perera (2004)

contended study on strategic planning

Empiric studies' findings indicate at a correlation between strategic planning and

performance. Nevertheless, the findings are mixed. A survey of twenty-six experimental

studies enabled Miller and Cardinal (1994) to identify a significant positive connection

between strategic planning and small business performance. Robinson (1982) found a

significantly high level of profitability as well as an increase in sales and returns on sales and

the number of full time employees in a group of small businesses that employed external

consultants for the purpose of strategic planning. Compared with other businesses, Bracker

and Pearson (1986) discovered a significant increase in income and remuneration per

entrepreneur in businesses that prepared strategic plans (the highest of four designated levels

of strategic planning). No significant increase was detected in the measure salary expenditure

divided on the sum total of sales. A significant differentiation in the rate of sales increase was

found by Rue and Ibrahim (1998) in small businesses that incorporated written planning

(basic or sophisticated), as opposed to other businesses. Perry (2001) detected a significant

differentiation in the degree to which planning was conducted in small businesses that did not

applied for bankruptcy as opposed to those that did. Wijewardena et al. (2004) define three

levels of planning: no written planning; basic planning; and detailed planning. The findings

indicate that the level of planning stands in direct proportion to the level of increase in sales.

Yusuf and Saffu (2005) classify three levels of planning: low; moderate; and high. A

connection was found between increase in sales and the low level of planning. No correlation

was found between strategic planning and increases in market share or in profitability.

William R. Johnson (Heinz Chairman) on August 15, 2007 Details Successes and Growth

Strategies at Annual Shareholders Meeting. Business Wire in this meeting he said that

"Excellent year with strong operating and financial results across Heinz reflecting the

successful transition to a focused, consumer-driven business built around three core

categories: ketchup and sauces; meals and snacks; and infant nutrition." Mr. Johnson also

highlighted the anticipated strong results in the first quarter of Fiscal 2008 with sales

growth of approximately 9%, operating income growth of approximately 14% and EPS of

$0.62 to $0.63. (See separate press release issued earlier this morning.)

Fiscal Year 2007 Comments: Speaking to shareholders in Pittsburgh, Mr. Johnson said that,

"Simply put, the Company's overall performance last year was outstanding. We posted strong

sales growth of better than 4%, operating income growth of more than 7%, and EPS growth

from continuing operations of 13% - all of this despite a very challenging cost environment

and one less selling week than in the prior year. Our top 15 brands, which represent almost

70% of Heinz's sales, grew even faster at 8.5%, validating our strategy to accelerate

investments in innovation and marketing. Our emphasis on productivity, combined with

selective pricing, helped us successfully expand margins in Fiscal 2007.

Cole.W (2003) reviwed on Offensive and defensive strategies Published in lakeman house

2003 He mentioned Offensive and defensive strategies are by products or results of the

corporate strategies. A corporate strategy is a comprehensive set of activities developed by

top management to aid an organization achieve its corporate objectives. Involving all parts of

an organization, these strategies consider both internal and external environments.

James Salter II Plan a Sound Business Exit Strategy suggested that -Get the Most Value from

What You Built You invested years of time, energy, effort, and imagination to build your

company and make it successful. You and your family have the rewards and recognition your

work deserves. And now you may be thinking about how you can enjoy more family and

leisure time and move on to a rewarding and well-earned new stage of your life without

sacrificing your lifestyle. You have lots of company. According to research conducted by

Cornell University, there are more than 12 million privately-owned businesses in the United

States and 70% of them will probably change hands in the next 10 to 15 years. With that

many owners planning to sell businesses, and with that much complexity in the market,

thorough exit planning is a powerful strategy for leaving your business successfully and

protecting your wealth. No business can be successful without sound planning. Active

business owners are always planning-about how to make their business grow and prosper, not

about how to sell it. And that's the problem. Many owners fail by far to get the best value they

could have because they viewed exiting their business as a transaction, not as a rigorous,

structured process. They had no sound exit plan.

Glen Mutel (2005) given a review article on:”Death of the age specialist?"and he said that

Why would a brand choose an agency that only targets one life stage? Because they know

their market, Glen Mutel says. Advertising today is a complicated business. Creative

strategies are researched harder than ever and targeting is more sophisticated. Today's

marketing director is able to split a demographic set into a million sub-categories and then

sell to them all individually. So surely, in this environment, there can no longer be a place for

anything as crude as life stage marketing? After all, what 50-year-old appreciates being

lumped with their geriatric parents in the so-called 'grey market'?

Heinz India Managing Director Nilesh Patel said at a press meet (November 14, 2005)

Complan Family launched in Kerala Kochi, Nov 14 (PTI) Seeking to broaden its consumer

base, Heinz, the makers of Complan, today launched 'Complan Family' - a new energy drink -

in Kerala, promising nutrition and good health for every member of the family. Based on the

Recommended Dietary Allowance (RDA) specified by ICMR and United States Food and

Nutrition Board, 'Complan Family' is scientifically formulated to meet the individual

requirements of every member of the family,

Rationale

Complan is a white milk powder product that has always been positioned as a complete food

product in itself and has been perceived as such by the Indian consumer. I will analyze the

product as a brand and try and understand how the brand is faring in the current market

scenario and how it will fare in the coming times. In this final report, I will list out the way

we are dissecting and analyzing the various facets of the product and the brand. I will start it

by understanding what market Complan is present in and what its position in that market is.

This is not only useful for understanding how the product is defined in the marketplace but

also useful for understanding the competition. After this I will discuss about the company that

owns the brand Complan – Heinz and along with this the evolution of Complan from its early

days to its present status.

Next, I will discuss about the marketing mix that has been employed for Complan and about

the product and its components namely the product levels, product variety, product features

which in its totality define the product as it is available in the market. After this, I will discuss

about the brand that is Complan which discusses the various marketing measures that have

been taken to create a unique brand identity for Complan which includes packaging, logo etc.

Then I will move on to the product placement and positioning and discussed market

segmentation where I will discuss the problems that Complan faced in its initial days of brand

positioning. We try to cover every facet of the product that makes it from being a mere

physical good to being an experience and I try to analyze how Complan is faring with regard

to this.

After this, I will discuss the Product Life Cycle of Complan and try to analyze the stage in

which it is in at the current market situation and the competition that Complan faces & the

Branding Mix.

Next, I move to Strategic Planning where I will cover Value Chain, BCG Matrix, GE Matrix

and Potters Five Force Model, along with other strategic analysis.

The last part covers Primary Research Methodology and analysis of the same.

Objective

a. To study the strategy of the company for Brand Promotion.

b. To measure the Brand Trust of complan.

Research methodology

Research plan

In order to fulfil the deliverables, the following research plan was developed based on

practical considerations:

Research Approach: Survey Research

Research Instrument: Close-Ended Questionnaire

Contact Method: Personal Interview

Research design: This Research is basically Quantitative as well as Qualitative Research.

Sampling plan:

The sampling plan consists of sampling units, sample size and specification of sampling

method.

Sampling Units:

Sampling Units in the survey were a mix of house-wives and college students.

Sample Size:

A sample size of 150 Respondent around Indore will take for the survey.

Sampling Method

After taking into account the practical consideration, convenience sampling will be use for

the survey. The sample was assumed to be representative of the whole population.

Tools for data collection: The only tool for data collection is the questionnaire filled by the

customer of Indore unit.

Tools for analysis:

Pie charts

Bar graphs

Tables

Expected Outcome

1 Knowledge about the strategy of the company for band promotion.

2 Measurement of the Brand Trust.

Bibliography

Reference

Baker, Pearson. (1986), Brand Revival: A Case Study of Complan, Brand Strategy Article

Graham Gordon. (1999), Innovation and Strategic Growth: Research on growth of

organization: New South wale publication.

Heinz H.J. (2007), Success and Growth Strategies: shareholder meeting, Business Wire

publication, Pittsburgh.

Cole William. (2003), A Research: Offensive and Defensive strategies: published in

Lakeman House.

Mutel Glen (2005),The Trust Concept: Research Issues for Channels of

Death of Age Specialist, Research in Lifestage Marketing.

Barney, Jay B. and Mark H. Hansen (1994), .Trustworthiness as a Source of

Competitive Advantage,. Strategic Management Journal, 15, 175-190.

Webliography

www.Complanfoods.com

www.marketingpractice.blogspot.com\

http://www.small-medium-business.blogspot.com

http://www.accessmylibrary.com/coms2/summary_0286-36764516_ITM

http://www.accessmylibrary.com/article-1G1-134848694/lifestage-marketing-death-age.html

http://www.accessmylibrary.com/coms2/summary_0286-11572210_ITM

www.answers.com/topic/Complan

http://en.wikipedia.org/wiki/Brand

http://en.wikipedia.org/wiki/Strategic_planning