Health Drink

Health Drink, Indian Market

ContentsMembers4Health Drink5Abstract5Indian and Health Drink6Major players in the HFD segment in India are as follows6Brands Tested7Prospects of Indian HFD market9Consumer Behaviour(HFD purchase)9Boost10Brand History10The initial marketing strategy10SWOT Analysis12Strengths12Weaknesses13Opportunities14Threats14Competitor Analysis15Boost vs Milo15Boost vs Horlicks15Boost vs Bournvita15Indirect Competitors15Market Segmentation, Targeting and Positioning16Segmentation16Target Market16Positioning16Critical Success Factor17Brand Name17Cost Factors17Changing Trends17Increasing consumption17Increasing immigration17Marketing Objectives18Marketing Mix Strategies18Product, Price, Place and Promotion18Celebrity Endorsements20Personal selling20Direct marketing20Points of Purchase20Budget20Implementation20Evaluation and Control21Bournvita22Early History22SWOT Analysis24Strengths24Weakness24Opportunities24Threats24Competitor Analysis25Segmentation, Target and Positioning26Segmentation strategy26Targeting27Positioning27Marketing Mix Strategies28Product, Price, Place and Promotion28Packaging30Complan31Early History31Competitor Analysis32Brand Trust Ratings by Trust Research Advisory32Market segments | Target markets | Positioning33Segmentation33Positioning And Targeting33MARKETING MIX35Product36Pricing39Place39Promotion39Future Strategy41Horlicks42Early History42Marketing Mix Strategies43Product, Price, Place and Promotion43Marketing Strategies49

MembersF14091 - M. Krishna Nishand->Indian Health DrinkF14092 - A. Madonna Preethi->Bournvita Health DrinkF14093 - L. Maduram Noel Royan->Boost Health DrinkF14094 - S.J. Marie Gerald Prabakaran->Bournvita Health DrinkF14095 - E. Mark Linekar->Complan Health DrinkF14096 - Mathew Joseph->Complan Health DrinkF14097 - Nilaeshh Senthilnathan->Industry StudyF14098 - Papitha Mohan->Horlicks Health DrinkF14099 - V. Prathyusha->Horlicks Health DrinkF14100 - T. Rahul->Industry Study

Health DrinkAbstractThe 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.

Indian and Health DrinkIndians 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 deficiencyHealth-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 Horlicks (With variants) Boost Maltova Viva Kraft-Cadbury (Mondelez International) Bournivita (With variants) Heinz Complan (With variants) Amul Nutramul Pro

Brands TestedA 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.)

Prospects of Indian HFD market Indian HFD market is a growth market withtremendousopportunities. India has one of the youngest population in theworldmaking it a long-term HFD market (TG) Still considered as one of the growth markets intermsof rising income reinforcing the long-term prospects Rising awareness among consumers due toexposure todeveloped markets (More people than evertravelling abroad, foreign TV channels, global offerings)adds to TG everyday Due to foreign origin of most of the HFDproducts (mostly developed markets) which have stricter Lawsrelated to food safety, the products dont need much tweaking(& expenses) in that aspect

Consumer Behaviour(HFD purchase) Consumers attitudes regarding HFD purchase is largelyinfluenced 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

BoostBrand HistoryBoost 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.

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 fireas 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.

SWOT AnalysisStrengthsBrand StrengthBoost 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 marketsQuality 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 channelsBoost 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 LocationWhen 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.

WeaknessesRelying upon line extensionsBoost 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 drinksThe 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 ProcessThe 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 DemandSlow 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.OpportunitiesNew Product IntroductionsThe 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 partnersBecause 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.ThreatsStrong CompetitionBoost 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 issuesThe 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 TradeIn 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.

Competitor AnalysisBoost vs MiloMilois 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 HorlicksAlthough 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 BournvitaChildren 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 CompetitorsCoffee, Tea, Milk, etc.

Market Segmentation, Targeting and PositioningSegmentationThe market segmentation of Boost has been segmented as Geographically and Psychographic.GeographicallyBoost 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.PsychographicBoost 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.

Critical Success FactorBrand NameToday 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 FactorsWe 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 TrendsNowadays, 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 consumptionAccording 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 immigrationSingapore 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.

Marketing ObjectivesOur 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 StrategiesProduct, Price, Place and PromotionProductAs 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.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.DistributionThe 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.PromotionMarketing 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

Celebrity EndorsementsPersonal sellingProfessional sales team will contact 5 star hotels, fast food shops, restaurants and other multinational franchises e.g. Mc Donald's, Burger King, KFC etcDirect marketingCompany will use direct marketing like mails, e mails, internet ads, and telemarketing at initial stage to aware consumers about the productPoints of PurchaseSales 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.BudgetSeparate 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.ImplementationThe 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.

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.

BournvitaEarly HistoryCadbury 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.

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.

SWOT AnalysisStrengths 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.

Competitor AnalysisWhich 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.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 PositioningSegmentation strategyCadbury 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 totaste 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 onthe Good Upbringing, Goodness that grows with you campaign topromote Bournvita as an essential health drink forchildren.Behavioral SegmentationBenefits 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 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 herchild'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.

Marketing Mix StrategiesProduct, Price, Place and PromotionMost 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.

ProductCadbury 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.

PriceNormally, 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.

PlaceThe 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.

PromotionBournvita 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.

PackagingEarlier 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.ComplanEarly HistoryComplan 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.Competitor AnalysisHealth 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

Market segments | Target markets | PositioningAll 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.SegmentationNo 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 TargetingPositioning 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 1Complan 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.

Stage 2In 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 3Glaxo 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 4The 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 5Glaxo 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. Flavors like cardamom and strawberry were added; new packaging also came. Complan finally found a good orbit.MARKETING MIXMarketing 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 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.ProductThe 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 BenefitThis 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 ProductThis 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.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 ProductThis 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 ProductThese 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 ProductComplan 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 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 varietyWe 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.

PricingComplan 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.comFLAVOURPACKAGE SIZEPRICE

Complan Chocolate flavour500 gmRs. 225

Complan Natural flavour500 gmRs. 199

Complan Kesar badam400 gmRs. 225

Complan Pista badam200 gmRs. 120

Complan Strawberry flavour500 gmRs. 225

Complan Memory chargers400 gmRs. 235

PlaceComplan 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.PromotionLike 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.Since a marketer often has multiple simultaneous promotional campaigns he can have two ways to address the consumers1. 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 AdvertisementsTaking 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 AdvertisementsLinguistically 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.The Advertisement WarIn 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 StrategyAfter 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.

HorlicksEarly HistoryHorlicks 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 6th 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 brandAnother brand extension, Horlicks has recently launched a ready to drink flavored milk product branded Horlicks Chill Dood. The product category is reported to be 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.Marketing Mix StrategiesProduct, Price, Place and PromotionProductHorlicks is a widely regarded and highly respected 130-year-old brand. Glaxo Smith Kline has four brands in thehealth food drinkssegment. 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 SmithKlineConsumer 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 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.

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 saysI 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

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.

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.PriceHORLICKS

Weight(gm)Price

200100

500199

HORLICKS JUNIOR

Weight(gm)Price

20090

500226

MOTHERS HORLICKS

Weight(gm)Price

200199

500375

HORLICKS LITEWeight(gm)Price

500240

HORLICKS BUISCUITSWeight(gm)Price

30030

PromotionThe 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 mediacampaign, 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 continueto remain the same. The brand willcontinueto 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 strongin the southand 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.

Marketing Strategies

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.

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