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Market analysis of Health Drink segment in India
Chapter I: Introduction and Research methodology
1.1 General Introduction of the project
India is the world’s largest malt-based drinks market, accounts for 22% of the
world’s retail volume sales. These drinks are traditionally consumed as milk
substitutes and marketed as a nutritious drink, mainly consumed by the old, the
young and the sick.
The Health food drinks category consists of white drinks and brown drinks. South
and East India are large markets for these drinks, accounting for the largest
proportion of all India sales. The total market is placed at about 90,000 ton and is
estimated to be growing at about 4%. These Malt beverages, though, are still an
urban phenomenon.
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Market analysis of Health Drink segment in India
1.2 Objectives of study
a) To understand the current market of health drinks.
b) To understand the consumer preference for a particular brand.
c) To analyse the market gaps
d) To suggest a product to fill the market gaps.
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Market analysis of Health Drink segment in India
1.3 Scope of Study
The scope of this analysis is to study the current market for the various health
drinks and the segment they cater to. The study will also analyse if there is a need
for a new product which would fulfil uncatered segments and find how new
product can be positioned in the current competitive and agile market.
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Market analysis of Health Drink segment in India
1.4 Research Methodology
1.4.1 Formation of problem
Due to growing high end competition in the market amongst the established
health drink brands, there is a need to understand the consumer preference which
would help to analyse the market. There is a need to understand if there are
market gaps in the health segment in terms of lesser product options available.
This study was conducted to identify those gaps and suggest product options.
1.4.2 Collection of data (primary & Secondary data)
A group of 20 families were chosen. These families had 3 generations so
that all market segments are covered. In order to collect the necessary
information, questionnaire was setup to know the current preferences and
identify the NEED of the consumer.Primary data was derived from
experiences of retail chains, nutritionists to get the insight of the market from
different perspective.
1.4.3 Research Instrument
The research instrument used was questionnaire with closed and open ended
questions.
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Market analysis of Health Drink segment in India
1.4.4 Making Sampling Plan
Samples were selected on a common factor that they
consumed/recommended/sold health drinks.
- A group of 20 families which consisted of all three generations such that it had all
age groups (0-80 yrs).
- A group of 20 nutritionists who recommend Health drinks to their clients
- A group of 10 retail chains who sell Health drinks to consumers.
1.4.5 Research Limitation
The limitations of study will be due to limited sample size.
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Market analysis of Health Drink segment in India
Chapter II: Review of Literature
General Overview of Health Drinks in India
With people turning more health conscious, the non-carbonated beverage segment has
become one of the fastest growing and most exciting businesses at the moment. For some
time now, manufacturers have experimented with some of the formulation and taste
issues, offering the consumers better tasting, more healthful alternatives. Evolving from
drinks containing a hint of herbs or vitamins, beverages have become an important
delivery vehicle for efficacious amounts of ingredients.
The Rs 1,100 crore health food drinks (HFD) market, classified into two categories of
white and brown segments, has remained stagnant for the last several years despite
GSKCH (GlaxoSmithKline Consumer Healthcare) and Cadbury's attempts to activate the
category. While Cadbury's Bourvita has been at the forefront of the HFD market,
GSKCH has also been active. Apart from repositioning its Horlicks brand from health
drink to a fun drink, GSKCH more recently has launched its brown drink Boost in 100gm
sachets. GSKCH's Horlicks alone, as a white beverage, is believed to have an over 50 %
market share.(Palka et al,2004)
Available Health Food Drink in market can be considered as follows:
Bournvita
Horlicks
Boost
Complan
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Market analysis of Health Drink segment in India
Product Profile: Bournvita
Bournvita has been a market leader in the Health Drinks market
as well as have a dominant share of the Chocolates market.
Cadbury Bournvita was introduced in 1948. Since then, it has
always been the leading brown MFD brand in the country and the
second largest MFD brand as a whole. Bournvita has worked
towards achieving this status by never remaining motionless.
Throughout its history, Bournvita has constantly endeavoured to
re-invent its product, packaging, promotion and distribution.
Each has been aimed at improving the value proposition to the consumer.
The brand was re-launched in 1999 with a new fortified Recommended Dietary
Allowance (RDA) balanced formula. The message sent out through communication as
well as packaging simply stated that the ‘new Bournvita would meet the nutritional needs
of children and make up for any deficiencies in nutrition as a result of improper food
intake’. At the same time, the company strongly promoted the practice of consuming two
cups of Bournvita to ensure that this happened. The effort enabled the brand to create
greater relevance for the category – and hence the brand – amongst plain milk drinkers. It
was a winning formula that yielded double digit growth over the next two years and
significantly contributed to the brands’ development.
An energetic brand, Bournvita went through another change in 2001, with a complete
overhaul of branding, packaging and communication. This re-launch had two clear
objectives: to make the brand contemporary and reinforce the equity with its loyal
consumers. An assessment post the successful re-launch, showed that Bournvita had
further strengthened its leadership position in the West and had attained market
leadership in the North.
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Market analysis of Health Drink segment in India
Bournvita has a unique taste which combines the goodness of malt and chocolate. It gives
the child physical and mental alertness resulting in a healthy body and an active mind. In
turn this gives the child the confidence to succeed in life.
In 2001 Bournvita, complete with new packaging and design was re-launched. It had
many firsts. Bournvita introduced a pet jar (shifting from the old glass bottle). It
introduced shrink-sleeved packaging (from the old jar labels). There was a complete re-
design of the logo. A loyalty programme, in the form of a Bournvita Nutrition Centre,
dedicated to counselling mothers on her child's daily nutritional needs was opened. It was
Bournvita's way of showing it cared.
Brand Values:
The core values of the brand have been mental alertness and physical fitness for children
who consume Bournvita daily. This layered with the great Cadbury chocolate taste has
made the brand distinct from other offerings in the consumers mind.
Facts:
Cadbury Bournvita won an ABBY for its
press campaign - 'No Bournvita. No Milk'.
Bournvita was the official health drink for
the Indian team for the 1980 Moscow
Olympics.
The Bournvita Quiz Contest is India's longest
running national school quiz.
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Market analysis of Health Drink segment in India
Product Profile: Horlicks
Some malted barley, pinches of wheat
flour with a dash of evaporated milk.
That's Horlicks recipe for success.
James Horlicks, after whom the brand
is named, was a chemist who worked
for a company which produced dried
infant food. He became ambitious after
inventing some recipes of his own. So
along with his brother William, they
found J and W Horlicks of Chicago.
Up until the 1960s Horlicks was
positioned as an adult restorative drink that gave extra energy, especially during
convalescence. The 1970s saw its position shift to ‘The Great Nourisher’. It was in this
phase that the brand saliency shot up. The next decade saw Horlicks face an immense
external challenge. Thanks to Operation Flood, there was availability of milk and the
raison détre for buying the brand became weaker. Horlicks fought back. In 1984,
Horlicks aimed at growth by growing the consumer base. By 1994, it had created ‘Ideal
Horlicks’ – and improved product formulation that also brought back the taste people
reminisced about. In 2002, Horlicks was relaunched on the immunity platform.
Horlicks has a significant presence in over fifteen countries. Today Horlicks is the best
known brand in the health foods category in India. The brand enjoys the trust of
generations of Indian mothers and this relationship has been nurtured by the brand by
fortifying the product from time to time. In 1998, Horlicks was fortified with Smart
Nutrients – a unique combination of vitamins and minerals – intended to imbibe growing
children with mental agility and physical fitness. Junior Horlicks was relaunched with
extra nutrients to build the immunity of little children. Today, Junior Horlicks contributes
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Market analysis of Health Drink segment in India
11% to Horlicks’ total sales turnover and has been one of the fastest growing product
extensions to the Horlicks brand.
But it isn't just product development that Horlicks has concentrated upon. It has also
created new attractive packaging options including jars, refill packs and sachets. Horlicks
was the first brand in India to introduce a refill pack option and also the first to shrink-
wrap bottles. In a way, there’s a Horlicks pack for every occasion and mood.
Put a couple of tablespoons full into a mug. Add warm water or milk and you’re ready to
enjoy a drink that’s tasty and nourishing. Add ice cubes, cold milk or water to
reconstituted Horlicks and it turns into a delicious, thirst quenching drink on a hot
afternoon. That is why Horlicks is considered to be ‘the great nourisher’ for the entire
family. The medical credentials and heritage of the brand have reinforced the image of
the brand for years.
Junior Horlicks, a specialist brand for little children. Mother’s Horlicks, a special
nourisher for pregnant and breast feeding mothers, and Horlicks Biscuits are the other
forms in which the brand is available. A selection of flavours – including chocolate,
vanilla and honey – allow consumers to enjoy the nourishing goodness of Horlicks in a
variety of delicious ways.
Brand values:
Horlicks has always been a brand that stands for good health and nourishment through a
wholesome, natural product. A commitment towards product quality and reinforcement
of essential nutrients has won over the trust of generations of mothers.
The brand gives them the reassurance that they seek in caring for their family. Family
bonding is at the heart of Horlicks’ brand values. This, in turn reinforces Horlicks’ image
as a caring and trusted brand.
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Market analysis of Health Drink segment in India
Facts:
Horlicks was first invented to substitute milk as baby food.
In India, 2 billion cups of Horlicks are drunk every year.
People on special diet, including liquid diet or any diet devised for gastric
disorders, can benefit from the nutritional convenience of Horlicks.
Product Profile: Boost
Boost was developed by the GSKH
Indian R&D team in 1974 and
launched in Kerala in 1975/76.
Positioned as the 'energy fuel', the
brand soon generated great
consumer pull and was
subsequently launched at a national
level.
Around 1984, however, Boost sales seemed to plateau. This led to a complete re-think
about the brand strategy. A deeper understanding of purchase dynamics of the category
revealed that by the latter half of the 1980s, children had come to become strong
influencers in a family's purchase of these HFD products. What was also observed was
that this section of the population had the highest requirement for supplementary energy
and was also the most enthusiastic about sports - cricket, in particular.
Infused with this insight, Boost was consequently repositioned. It pushed forward the
association of kids of this age group with cricket. This has since remained a winning
strategy.
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Market analysis of Health Drink segment in India
Success for Boost has come as a result of constant brand building efforts and the proven
positioning platform of ‘energy’. The brand had the courage of conviction to make a
paradigm shift in targeting the child in its communication. Today, ‘Boost is the secret of
my energy’ is the most recalled ‘sign-off’ in its product segment and has defined the
brand's identity. Also, Boost is the first HFD to have ever used celebrity endorsement to
convey its proposition and has successfully carved out the Energy HFD market in India.
In recognition of these achievements, Boost has won prestigious awards such as the
World Star for its packaging and the finalists’ position in the Effie Awards, 2000, for
effective communication.
Boost is a malt-based drink in chocolate
flavour, with the brand philosophy being to
continuously innovate and pioneer changes
in the category. In 2002, the brand created
history by re-launching Boost with 'Power
Boosters™', a completely different product
from any other HFD. The New Boost
contains copper and biotin, in addition to its
extant composition of vitamins and
minerals. Two serves of New Boost
(approximately 30 gms) as per the CODEX
Alimentarius Commission of the World
Health Organisation, 1995, provide 50% of
the daily requirement of Vitamin B1, B2,
B6, B12, A, C, D, Niacin, Pantothenic acid, Biotin, Folic acid, Copper and Iron and 25%
of Calcium. The vitamins and minerals not only provide adequate energy for the
consumer they also help in the efficient working of body cells (by releasing energy from
food), formulation of healthy blood and make bones stronger. This re-launch has helped
Boost capture the position of number one brown HFD in India.
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Market analysis of Health Drink segment in India
Brand values:
The personality of the Boost brand is distinctly sporty and energetic and everything -
from the tone of communication to packaging - is done to reflect this vibrant energy.
Today, the colour red and 'Boost is the secret of my energy' have become synonymous
with the brand.
Facts:
Boost has a household penetration of 40%-45% in several cities and towns in South
India, the brand's stronghold. In towns like Chennai and Madurai this penetration
exceeds 50% among SEC A and B households and 40% among all households.
Sachin Tendulkar appeared in a Boost advertisement for the first time at the age of
seventeen.
The kid, who starred in the Boost advertisement with Kapil Dev, went on to become a
member of the Indian cricket team - Nikhil Chopra.
There is a range of interesting products prepared with Boost which cater to local
tastes: the Boost 'barfis', for example, in certain parts of South India.
Boost has the highest frequency of purchase among all brown powders in India
(Source: IMRB Household Panel).Boost is the fastest growing brand (2003 over
2002) among the top five Health Food Drinks in India.
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Market analysis of Health Drink segment in India
Product Profile: Complan
Heinz 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.
Complan’s current consumer base runs into hundreds of thousands of households across
the country. It is retailed through more than 225,000 outlets and has an impressive 16.8%
share across the entire MFD category. Apart from India, Complan is also available in the
UK, Australia, Venezuela, Nepal and Sri Lanka.
Complan’s growth closely resembles its core consumers; it has been growing over the
last twenty years to register a constant upswing in its market. In this period, it has
doubled its market share while commanding a price premium in excess of 40% over its
nearest competitor.
Enriched with 23 vital nutrients in balanced proportion Complan is an ideal nutritional
supplement for children in its target segment of four to fourteen years. It is Heinz’s
constant endeavour to upgrade Complan’s formulation as per the latest d evelopments in
nutritional sciences and the changing requirements of growing children.
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Market analysis of Health Drink segment in India
Complan – the Complete Planned Food in a Drink – is formulated as per the World
Health Organisation (WHO) guidelines suggested for growing children.
Milk protein, which has superior digestibility properties, contains all essential amino
acids balanced to perfection and hence is the ideal engine for growth. It is also a superior
source of energy and meets the WHO guidelines of energy requirement from proteins. It
provides more energy (429kcal/100 gms) than any other major brand in this category.
20% of Complan is protein and 100% of it is derived form natural milk. No other brand
can match this claim.
To extend the goodness of Complan and make it available to children any time, the brand
was also conceived in a biscuit form. Complan Crunch Timers biscuits have nourishment
sandwiched in their cream centres and are a delightful anywhere bite.
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Market analysis of Health Drink segment in India
Studies on Health drink market in India
Abstract 1: Consumer Behaviour for Health Drink in India. (Bhardwaj,2008)
Till now we have seen that health segment is not restricted to milk or juices but the
changing life style has given different means to it for different people and at different
time. Moving to deliberately positioned health drinks which are categorized into white
and brown segment and as a whole forms Rs 1,100 crore health food drinks (HFD)
market. Despite the management strategy of GSKCH (GlaxoSmithKline Consumer
Healthcare) and Cadbury's attempts to activate the category, the segment is flat as a
growth curve. The strategic scenario is like Cadbury's Bournvita leads the HFD market,
followed by GSKCH , striving hard to invade the market. The Horlicks, originally
invented as a health drink for army men and then commercialized for mass is
repositioned as a fun drink.
GSKCH as usually like a challenger did not leave any stone unturned , more recently it
has launched its brown drink Boost in 100gm sachets as well in Tetrapak as a ready-to-
drink product. GSKCH's Horlicks and other brands like Boost, Viva, Maltova, together
have a 75 % share of the health food drinks market. Horlicks alone, as a white everage, is
believed to have an over 50 % market share.
GSK, to stronger its position in the health drink market worked the way internsindia.com
predicted. The brands were Viva, Maltova and Boost and key parameter was packaging.
Viva has been repositioned as a traditional family health drink while Maltova has been
repositioned as a tasty chocolate-based drink for children. Boost has also been
repositioned as an energy drink. They have covered the major segments fall in different
age group. GSK’s share in the market is around Rs 1,000 crore from four brands,
including Horlicks. Because of the repositioning, Boost's share in the market has grown
to 14 per cent from around 12 per cent last year. Horlicks' share remains steady at around
54 percent, including all its variants. While all segments of the beverage market are
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Market analysis of Health Drink segment in India
evolving, the growth seems to be directed more towards healthy, light and low-calorie
drinks, in particular organic and fruit juice varieties. Nestlé’s Milo, however, being a
brown drink faces direct competition from Cadbury's Bournvita and GSKCH's Boost.
The market has marginally moved from the white malted beverages to the brown
segment.
There is one thing common in all the brand positions, Guess What?
These brands are not repeating the mistake of Complain who tried to challenge the
existence of milk. All these brands positioned as a supplement health drink. Different
companies have different assumptions to trap its consumer base. Some believe in
targeting mothers and some believe in targeting the consumers (kids) directly. If you
track the life of a human being since first month after his birth till his death, you will a
pattern in the change of consumption behaviour and purchase decisions. Till the child is
of 2 years, Cereal is the favorite brand of a mother-a decision maker. Now the time
comes for schooling where Horlicks, Bournvita and Boost take up the preference of the
decision maker (again the mum) positioned as a supplement for growth.
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Market analysis of Health Drink segment in India
Abstract 2Abstract 2: Health Related Expenses (Srivastav et al, 2003): Health Related Expenses (Srivastav et al, 2003)
KSA TECHNOPAK has conceived an innovative product called Health Outlook 2003,
which provides strategic insights to consumer shopping and buying behavior. Apart from
the consumer insights, complete health profiling is also done for providing derived
disease incidence and prevalence in the country.
This Pan Indian research model provides large research depths by covering about 10,000
households across cities like Chandigarh, Delhi, Jaipur, Lucknow, Ludhiana, Calcutta,
Patna, Bangalore, Chennai, Cochin, Hyderabad, Madurai, Ahmedabad, Indore, Mumbai,
Nagpur, Pune and Surat. The rich respondent profile includes SEC A, B and C giving a
good coverage for demographic types.
Health Outlook shows that health enjoys about 9.4 per cent share of the wallet of Indian
consumer and is on the rise for the last three years. This spend includes health
supplements, health drinks, doctors and consultants fees, medicines, medical insurance,
regular check ups etc.
About 91 per cent of this was out-of-pocket expense and only 9 per cent came from
employers and insurance. Analysis of the consumer’s drug purchase behaviour shows that
59 per cent use old prescriptions and 29 per cent use over-the-counter drugs, meaning 88
cent of the consumers indulged in self-medication
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Market analysis of Health Drink segment in India
Abstract 3:Influence of Consumer attitudes on buying behavior for Health Drinks.
( Markand P ,2008)
Consumer attitudes to health drinks are mainly influenced by quality attributes. Ethical
factors are important in some cases, but they may be overstated. The relationships
between consumers' awareness of health drink, price and perceived quality of food were
investigated by tests involving series of consumer panels and sensory evaluation. Sensory
responses were also matched to instrumental analysis data. Results indicated that overall
there was no relation between panelists views about health drinks and their sensory
perceptions. Eighty percent of the panelists felt that organic products were too expensive,
but would buy them if they were cheaper. However the study showed that most of the
people would not be likely to change their preference once they had made a product
choice based upon sensory attributes. This has important implications, indicating that not
only price, but also sensory quality of health drink must be considered in order to
maintain repeated purchases by most consumers.
It is widely accepted that consumer acceptance of drinks is mainly determined by their
sensory perception, while choice is strongly influenced by the perceived value for money.
Ethical factors are important in some cases, but they may be overstated. Although
comparisons between organic and conventional drinks have been reported for a range of
attributes, measures of the quality of health drinks as perceived by consumers using
objective sensory evaluation methods, or the relevance of any preconceptions in
perception have not been studied. This study aimed to investigate the relationship of
objective quality measurements including sensory attributes and consumer perception of
organically and conventionally produced health drink products.
About two thirds of the consumers that participated in the survey believed that health
drink is good for the environment, and 55% thought that it is healthier. However there
was some confusion relating to the use of pesticides and chemicals in that. Few
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Market analysis of Health Drink segment in India
consumers’ distinguished health drinks by appearance or taste. Buyers of health drinks
were more likely to indicate that the appearance and taste are better, but environmental
protection was still the dominant perceived benefit. Buyers who believe that health drink
is better also think that it is expensive (p<0.05). In this study, 80% of the consumers
perceived health drinks to be too expensive (49% were non-buyers and 31% buyers)
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Market analysis of Health Drink segment in India
Abstract 4: Relationship between socio-economic characteristics of malted food
consumers and their brand preference (D. Muthamizh Vendan Murugavel ,August 2010),
.
The specific objective of the study was to analyse the consumers' satisfaction
towards malted food products.The area of the study is confined to
Gobichettipalayam town, Erode District. The study was conducted during April-
May 2009. In order to constitute a sample size of 150 respondents, 30 Business
People, 30 agriculturists, 30 employed people (both private and government), 30
housewives and 30 students were purposively selected.
The data collection method revealed following things:
Preference of brand was analysed:
As there are number of brands of Malted Food Products available in the
market, the choice of consumers is very difficult. Before purchasing a particular
brand, consumers consider several factors such as quality, price, availability etc.
The brand which satisfies them in all aspects would be purchased by them.
Brand Preference of Malted Food Products
Most of the sample respondents prefer to buy Horlicks as their most favourite
brand of Malted Food Product because Horlicks is identified as a more healthy food
to cater the needs of all age groups.
Period of Using Malted Food Product
The period of using the Malted Food Product may differ from one
another.One consumer may use a particular brand for its quality, price, vitamin
content, brand loyalty etc. If they get what they expected then they will use that
brand for a long time.
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Market analysis of Health Drink segment in India
Period of Using Malted Food Products
Most of the sample respondents were using the Malted Food Products for more than 1
year and less than 5 years.
Preference of Quantity of Malted Food
Product: Consumers may prefer their quantity of Malted Food Products by considering
number of family members, frequency of drinking and other brands used by them.
Preference of Quantity: Most of the sample respondent prefers to buy 500
grams pack because they want to use the Malted Food Product
freshly for a short period time, moreover the freshness shall be affected by
keeping these products for a long time.
Source of Information :The source through which the Consumers have received the
information about a particular brand plays an important role in modern
marketing. In this regard, advertisements play a vital role to describe about a
particular product. Advertising through various media has become popular now-a-
days.Most of the sample respondents are using the Malted Food Product b y g
etting i nformation t hrough advertisements
Frequency of Using: The reason why the malted food products are purchased by
the consumers is mainly for improving their health. Here, the frequency of
drinking of malted food products not only helps to improve their health but also it
increases the sales of malted food products.
Clearly states that most of the sample respondents are drinking the malted food
product twice in a day because it keeps them energetic throughout the day and
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Market analysis of Health Drink segment in India
also they feel very fresh while doing any work.
Type of Packing :A well packed product deserves more attraction and attention
than an ordinary one. Many buy products mainly only for its attractive packing.
The malted food products are in two type of packs i.e. Refill and bottle. The
consumer may prefer any one of these packs as they like. Refill pack is
preferred by consumer for convenience, free gift offers and economy where as
bottle is preferred for multipurpose means, less wastage, and attractiveness.
Preference of Packing: Majority of the sample respondents prefer refill
packs because it is more economical and convenient for handling
Source of Purchase:Easy availability of malted food product to the consumers is an
important factor to be considered. Non-availability of malted food products in
the purchase sources can lead to preference o f o ther alternatives by the
consumers.Majority of the sample respondents are purchasing the malted food
product from Department Stores.
Factors Influencing Brand Preference of Malted Food Products
Malted food product consumer may prefer their brand by considering
various factors such as price, quality, taste, vitamin content, freshness, discount,
reusability and free gift.
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Market analysis of Health Drink segment in India
Factors Influencing Brand Preference of Malted Food Products
Malted food product consumer may prefer their brand by considering various factors
such as price, quality, taste, vitamin content, freshness, discount, reusability and free gift.
Out of the various factors, Quality and Vitamin Contents is being considered as the main
factor which influenced them to purchase the malted food product and it is ranked first with
the highest weighted score of 1082. Getting energy in these malted foods are also considered
equally important by the consumers and it fetched second rank.
Conclusion of the study was Malted food product industry is ever growing and ever wanted.
All people want good and energetic health and ultimately they are depending upon some
energetic drinks in addition to taking normal food items. Based on the findings of this study,
various suggestions are given. If these suggestions are properly considered by the
manufacturers of Horlicks, Boost, Complan and Bournvita, fruitful results may be achieved
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Market Analysis for health drinks segment in India
Abstract 5: A Behavioral Analysis on Consumer Decision making
Venkateshwaralu et.al, conducted a study to analyse the buyer behaviour
towards biscuits. T hey h ave c oncluded t hat t he consumers prefer packed
biscuits to loose ones considering the product. Regarding decision- making,
though both parents and children are equally involved, the influence in majority of
the cases is the child. About 76% of the sample respondents purchase atleast
once in a week. Finally they have concluded that marketers have to give
considerable importance to taste, freshness and Brand name as these three
together would influence the decision making process.
Abstract 6: “Instant Coffee Market”,
Jagdish Kunte in a case study on Instant Coffee Market conducted with the
objective to analyse the impact of marketing strategies adopted. They have
concluded that higher promotional expenditure, better quality, strong brand
loyalty, s atisfying the c onsumer expectations were the reasons for higher
sales.
Abstract 7: A study on Buying Behaviour for Branded Fine Rice
Sanjaya Gaur .S and Shaiesh .J, in their study of Buying Behaviour for branded
fine rice have selected Chennai and Coimbatore cities of 200 households from
Chennai city and 250 households from Coimbatore city by simple random
sampling method. They used percentage analysis and Garrett's Ranking Techniques,
with the objective to know the factors influencing brand and level of satisfaction
in the purchase of branded fine rice. They could be inferred that the quality and the
brand image were ranked as the major factors for brand preference.
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Market Analysis for health drinks segment in India
Abstract 8: Buyer behaviour - case study: influence of children on buyer behaviour
(www.euromonitor.com)
Research suggests that children are exerting more influence over family buying decisions.
What are the implications of this for retailers, brands and marketers?
Children are an important part of the family buying process. But what roles do they play?
Marketing theory suggests five main roles in a family buying process:
- Initiator
- Influencer
- Decider
- Buyer
- User
Which roles do children play in addition to the obvious one – “the user”
Children certainly influence family buying decisions from cars to holidays. They are also
the buyers of the future. Provide children with Penguin bars and McVitie's may be able to
hold on to the adult due to brand awareness and brand loyalty formed at such an early
age.
But how should businesses market to children? Are there conflicts with being seen to
specifically target the child audience – can it alienate parents?
Products have to appeal to the conflicting agendas of child and parent, while fighting off
increasing competition. A marketer of children’s foods was recently quoted as follows:
"Ten years ago children wouldn't have given a damn about cheese. It used to be just
Dairylea, but now children's dairy products encompass everything from cheese to
yogurts, and fromage frais. Our brands also face more intense competition than ever and
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Market Analysis for health drinks segment in India
it's not just from other chocolate biscuits - it's from products such as Dairylea Dunkers
and Fruit Winders. These things didn't exist before."
Marketers also have to recognise that children are moving into new markets. Children as
young as seven buy DVD's, and no teenage lifestyle is complete without a mobile phone.
This has a knock-on effect. For example, the money children spend on mobile phone
cards reduces the money they spend on snacks.
Marketers also need to be sensitive to the peculiarities of children-related markets. It may
be tempting to use a daring marketing campaign to make a product stand out. But a
poorly thought-through campaign could result in the product and/or brand being attacked
by ethical campaigners, outraged mothers, educationalists, health and safety organisations
and others.
A good example of how things can go wrong is Sunny Delight. Sunny Delight enjoyed
boom sales after its initial launch. However, the drink's popularity crashed when the
media realised that it was sold from chiller cabinets purely as a marketing ploy to make it
seem fresh and, therefore, healthy. The actual product formulation was far from healthy.
Retailers face a challenge to display products in a way that attracts children. Promotional
displays have to be able to handle child usage (or abuse) and capture a child’s
imagination and attention.
Disney has a reputation as being particularly good at interactive promotional marketing.
Many children also prefer Woolworth's to supermarkets because of features such as pick
'n' mix sweets. The Early Learning Centre succeeds by creating a playground which
allows children to play with toys rather than leaving them wrapped in plastic.
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Market Analysis for health drinks segment in India
Chapter III: Data Analysis and interpretation and Findings
The data was collected by use of questionnaire. In total 20 families which included all
three generations were interviewed. The interviewee was female of the family who also is
the buying decision maker. Also ten leading retail chain managers and twenty
nutritionists were interviewed to get an overview of the health drink segment. The
findings of the study are:
DETAILS OF THE SAMPLE:
Income Group
Category Criteria
Low Income 1-5 lakhs/annum
Medium Income 5-10 lakhs/annum
High Income Above 10 lakhs/annum
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Fig 1: Income group of Families
Market Analysis for health drinks segment in India
Age of Correspondents
The mean age of correspondent is 33 yrs.
Details of Study population
Males
The entire male population follows sedentary lifestyle.
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Age Group No of correspondents Percentage
25-30 5 25%
30-35 8 40%
35-40 7 35 %
Age Group Working Retired
20-30 3
30-40 15
40-50 5
50-60 2 1
60-70 3 5
70-80 7
Above 80 1
Market Analysis for health drinks segment in India
Ailments
Out of the total male population of 42, 23 % are diabetic whereas 28.5 % suffer from
Hypertension. It is seen that age advances the number of diabetic cases increase.
But Hypertension incidences are seen in early 40’s.
Females
Lifestyle:
Out of entire female population 33 % follow a sedentary lifestyle whereas the rest
of 66 % are moderate in their lifestyle.
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Age Group Diabetic Hypertensive
40-50 1 4
50-60 1 2
60-70 5 2
70-80 3 3
Above 80 - 1
Age Group Housewife Working
20-30 1 6
30-40 10 2
40-50 1
50-60 5
60-70 7
70-80 - -
Above 80 1
Market Analysis for health drinks segment in India
Ailments
Out of the total female population of 43, 16 % are diabetic whereas 20 % suffer from
Hypertension. It is seen that age advances the number of diabetic cases increase.
But Hypertension incidences are seen in late 30’s
Children (0-15 yrs)
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Age Group Diabetic Hypertensive
30-40 1 2
40-50
50-60 3 2
60-70 3 3
70-80 - 1
Above 80 - 1
Age Group Girls Boys
0-5 6 1
5-10 6 3
10-15 2 4
Fig 2: Distribution of Girls & Boys in the total population
Market Analysis for health drinks segment in India
Health Drink Consumption Pattern
Out of total population of 98, 50 individuals consume health drink on a daily basis
Only 40 % of the male population consumes health drink on a day to day basis.
Horlicks is preferred by 29% of the total males consuming health drink whereas the
rest prefer Complan.None of the adults drink Boost or Bournvita.
Only 11 % of the female population consumes health drink on a day to day basis.
This highlights the fact that a female doesn’t like to spend much on herself when
maintaining health is concerned.
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Fig 3: Health Drink Consumption Patter -Males
Fig 4: Health Drink Consumption Pattern -Females
Market Analysis for health drinks segment in India
Health Drink Consumption Pattern - Children
Entire study population of kids consume health drink on daily basis. It forms a
primary part of their dietary needs.
.
The above data analysis explains that in a family the health drinks are majorly consumed
by kids or adults who have a particular ailment.
Through the questionnaire, the correspondents were also asked why they prefer a
particular drink. The feedback highlighted following findings:
1) Adults who either are diabetic or hypertensive is been recommended Complan by
their nutritionists/doctors as it builds up stamina in them.
2) 85% of females who consume health drink buy Women Horlicks as that is only
known option available for adult women.
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Fig 5: Health Drink Consumption Pattern -Kids
Market Analysis for health drinks segment in India
3) Majority of kids aged below 5 yrs were given Junior horlicks as their mothers were
impressed with the DHA/brain development claims they make.
4) Kids aged between 5-10 yrs preferred Boost as they liked the chocolatey taste it
renders
5) Most of the adolescents aged between 10-15 years consume Complan as it spurts
height growth
The trend of consumption or preference of a particular brand is more dependent upon the
perception of the brand from the customer’s end which is influenced by the promotional
campaign of the company.
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Market Analysis for health drinks segment in India
RETAIL CHAINS
The questionnaire for Retail Chain was taken to managers of ten leading retails chains as
they could be helpful in marking the trend of consumer buying practices and the market
segmentation of the health drinks.
The ten leading chains are:
Reliance,
D Mart, Mumbai
Spinach, Mumbai
N Mart, Delhi
More, Mumbai
Star Bazaar, Thane
Food Bazaar, Mumbai
Apna Bazaar, Thane
Hyper city, Mumbai
Mega Mart, Bangalore
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Market Analysis for health drinks segment in India
All of the retail chains regularly stock the 4 leading brands –Complan, Horlicks,
Bournvita and Boost. They were then enquired about the fast moving brand/the brand
consumers usually pick up from shelf. The response was as below:
The figure 6 clearly notes that Horlicks is considered the fast selling brand amongst other
health drink available .Retail Chain Manager attribute this fact to better promotional
campaigns and advertisements on part of GSKCH.
NUTRITIONISTS
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Fig 6: Fast selling Drinks at Retail Chains
Market Analysis for health drinks segment in India
In today’s health conscious population, the role of nutritionists is very influencing on the
buying and consumption pattern of individuals.Considering this ,20 nutritionists were
interviewed using a structured questionnaire.
Experience of Nutritionists
Type of Patients visiting
Category Number Common ailments reported
Kids 35% Loss of weight ,Loss of stamina
Young Women 15 % Stress related disorders
Middle age women 30 % Menopausal problems like joint pain and back pain
Middle age men 10 % Loss of energy and stamina
Elderly men 10% Loss of energy due to Special conditions like
diabetes/hypertension
Recommendation of Health drink
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Fig 7: Experience of Nutritionists
Market Analysis for health drinks segment in India
The above Fig 8 reflects the Nutritionist’s recommendation to the
patients/clients that visit them for consultation.For kids ,Bournvita DHA or
Horlicks DHA are the common recommendations to encourage overall
growth. Young & Middle age women are recommended Women’s horlicks to
address issues like High stress ,Menustral & menopausal issues.Loss of
stamina & energy is the common thread between elderly and middle age men
which is combat by recommending Complan.
Preference of a particular Health Drink
All of the above data collected from Families, Retail Chains & Nutritionists
chart outs some common reasons for preference of a particular brand by the
buyer. These preferences are influenced by experience of using the brand for
long or the positioning of the brand by the manufacturer. The common
reasons for Brand preference are highlighted in the next sheet.
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Fig 8: Recommendation of Health drink for patients
Market Analysis for health drinks segment in India
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Only available drink for adults
Builds stamina
Helps in overall growth of kids
Helps in Brain development
Splendid taste of Cadbury Chocolates
Trustworthy Brand for years
Splendid Chocolatey flavor
Boosts Energy
Brand Ambassador - Sachin T
Helps in Brain development
Enhances height growth
GSKHC has a good repute
Market Analysis for health drinks segment in India
Need for new product in market
All the questionnaires included a common question to know if Mothers, Retail chain
managers and Nutritionists feel the need of a new product in the health drink segment
which can fulfil the uncatered needs of consumers.
According to the data collected, 80 % of the mothers and 100 % of retail chains &
nutritionists felt that there is a need and scope for new refreshing product in the health
drink market.
When asked about the attributes they would like to suggest in the new drink, the few
common points highlighted were:
1) Health drink especially for adults
2) Health drink which can also be consumed in Summer for kids
3) Health drink which can be consumed in cold water.
4) Better & new flavors than the common chocolate one for teenagers
5) Health drink rich in calcium and iron for menopausal women
6) Health drink enriched with Natural fruits
7) Low sugar/no added sugar health drink
8) Health Drink which enhances immunity in kids and they don’t fall sick often.
9) Health drink for women that is cost effective as they don’t spend much on
themselves.
10) Health drink that can be purchased and consumed directly while traveling.
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Market Analysis for health drinks segment in India
Chapter IV: Conclusion
The study was conducted to fulfill the objectives laid out in the research methodology
and it was achieved successfully. The study conducted highlighted that every Brand in
market has developed its own segment of loyal customers who stick to the brand due to
their good perception of the brand and the brand’s goodwill which comes from specific
positioning. The market is full with leading brands that face a cut throat competition.
These different brands cater to 3 segments: Kids(0-15 yrs),Adults(15-60 yrs) and Elderly
(above 60 yrs).These are the main segments which are further subdivide by gender and
ages.
Findings
During the study,the researcher realized that consumer preference of a particular depends
upon their perception of the brand which is in turn dependent upon the brand positioning.
Complan is considered as drink fit for all ages which builds up stamina and energy.
Horlicks is preferred by Young women (Women Horlicks) and Mothers trust it for
enhancing brain development in their kids.Bournvita DHA also fits into the need for extra
memory power by mothers and its blend of nature and science is an instant hit with
Mothers.Boost is liked by kids as it has a universally accepted Chocolate flavor.
The role of nutritionists cannot be neglected as it plays a major influencer on buying
behaviour of consumer.Nutritionists recommend helath drinks alongwith a complete
balanced meal.Health drinks are regularly consumed by the patients visting the
nutritionists as it is recommended by doctors/nutritionists.This aspect adds value to the
brand.Brand perception amongst nutritionists is similar to the consyumer group but is
result of a weighed analysis of different attributes.
The study concludes that there is growing need for Health drinks and they are becoming a
part of every urban household. The educated mother has become improvingly aware of
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Market Analysis for health drinks segment in India
the additional needs of her family in the extreme competitive world. Still due to
conservative thoughts, she doesn’t spend much on her health as much as she spends on
her family’s health.
Further scope of study
There is still some scope to conduct a further study on
a) Rural market segmentation for these Health Drinks
b) Structure sampling based on age and income group.
c) Consumer’s Response to promotions by Health drink majors and its influence on
buying behaviour.
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Market Analysis for health drinks segment in India
Chapter V: Recommendations
During data collection the correspondents were asked to suggest the key attributes they
would like to see in the new health drink segment product.
Varied responses were gained from different segments as listed earlier in data
interpretation.Based on these responses,would like to recommend development of a
product with variants
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Market Analysis for health drinks segment in India
Marketing Strategy:
These key attributes:
Natural fruits will provide additional options for kids to consume the health drink in
summer
Improved body and dispersability will enable an adult to consume it in cold water.
Immunity builders will keep the diseases away from the kid and he will not fall sick
often
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Health Drink
Improved Body and Dispersability
Market Analysis for health drinks segment in India
The product can be then marketed as “A single drink for all age groups”.A homemaker
will always relate to this concept as then she will not be required to but 3 different brands
for the entire family.
A consumer will be able to drink this in water/milk,stay away from diseases (as it has
immunity enhancer) and the natural fruits extract will help him cope with his vitamins
and mineral requirement.
There is a growing need to diversify and custom make a health drink for different
segments of the adult population as they are the ones who neglect own health.Maybe kids
are more vulnerable but their nutrition is closely monitored by mothers.In the due course
a mother’s health is most neglected one.
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Market Analysis for health drinks segment in India
Chapter VI: Annexure
Questionnaire for Consumers
……………………………………………………………………………
o Name :
o Age
o Income Group
High Income (above 10 lakhs)
Medium Income (5-10 lakhs)
Low Income (1-5 lakhs)
o Family Member Details
Sr no Name Gender Age Occupation Lifestyle Ailments
1
2
3
4
5
o What type of beverages/drink does your family consume?
Name: (for each family member)
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Health Drink
Kids Nutrition
Protein Rich
Special Condition
Specify the brand
Market Analysis for health drinks segment in India
o Apart from above do you think there is a need for another type of beverage in market?
o If yes, please provide suggestions.
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Market Analysis for health drinks segment in India
Questionaire for Retail Chain
……………………………………………………………………………………………
o Name :
…………………………………………………………………………………………
o Do you stock Health Drinks?
o Which brands do you stock
o Which of the variants are fast moving?
o Do you come across specific requests from customers which are not currently
available?
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Market Analysis for health drinks segment in India
Questionaire for Nutritionists
o Name :
o What type of patients are frequent visitors?
1) Kids
2) Women- Young/Middle age/Elderly
3) Men- Young/Middle age/Elderly
o Which ailments/conditions they come with?
o What are the common reasons for these ailments?
o What are your common prescriptions of health drink?
o Why do you suggest above?
o Is that the best available option or do you feel the need for some better product?
o What attributes the product should possess?
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Market Analysis for health drinks segment in India
Chapter VII: Bibliography
Publications:
Bharadwaj Siddhartha (Sep 2008),Consumer Behavior in health drink , Economic
times,The Times of India publication,Mumbai
D. Muthamizh Vendan Murugavel (August 2010), A Study on Consumers' Attitude
towards Malted Food Products with Reference to Gobichettipalayam Town, Journal for
Bloomers of Research, , Vol. 3, No. 1
Gaur Sanjaya.S and Shaiesh .J, “A study on Buying Behaviour for Branded Fine
Rice, Indian Journal of Marketing, 32 (2002) 3-8.
Haripuram Venkateshwaralu, Kishore Kumar. M., Rajanath. K ((1987), “A
Behavioral Analysis on Consumer Decision making”, Indian Journal of Marketing,
Vol 8 3-9.
Jaiswal Kaushalya (Nov 2009),Indian Health Drink Market, Field &
Focus,Delhi,www.reportbuyer.com
Kunte Jagdish. M., “Instant Coffee Market”, Indian Journal of Marketing, 5 (1987)
29
Markand P (2008), Influence of Consumer attitudes on buying behavior for Health Drinks,
Marketing Biz,Fortune Publishing House,Delhi
Nair P N V (May 2007), The growing fruit juice and health drinks market & B
News,Mumbai.
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Market Analysis for health drinks segment in India
Palka Apoorva (2004), “Consumer Preferences in Purchase of Health Drinks”, Indian
Journal of Marketing, September, 9 (2004) 34 - 35.
Samajdar Sabyasachi (June 2006), Top Indian health drinks,F & B specials,New delhi
Srivastava K,Mehta R,Jugani L(2003),Health Outlook report,KSA technopak,Pune
University
.
Websites
http://www.euromonitor.com/health-and-wellness-in-india/report
http://tutor2u.net/business/marketing/casestudy_%20buyers_children.asp
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