SYNOPSIS

“STUDY OF CONSUMER BEHAVIOR IN PURCHASE OF HEALTH DRINK FOR KIDS”

Submitted for the permission of pursuing research project

Report (M.B.A 043)

Under the Guidance of

Submitted By

Session-2013-2014.

GOEL INSTITUTE OF TECHNOLOGY ANDMANAGEMENT LUCKNOW

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INTRODUCTION

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.

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

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sachets. GSKCH's Horlicks alone, as a white beverage, is believed to have an over 50 %

market share.(Palka et al,2004)

Health Related Expenses

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.

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.

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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

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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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.

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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RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research methodology is a way to scientifically solve the research problem.

It may be understood as a science of studying how research is done

scientifically. In it we study the various steps that are generally adopted by a

researcher in studying his research problem along with the logic behind

them. It is necessary for the researcher to know not only the research

methods / techniques but also the methodology. It defines what the activity

of research is, how to proceed, how to measure progress, and what

constitutes success. It helps to understand not only the products of

scientific inquiry but the process itself. It aims to describe and analyze

methods, throw light on their limitations and resources, clarify their

presuppositions and consequences, relating their potentialities the twilight

zone at the ‘frontier of knowledge’

Research Design

The formidable problem that follows task of defining the research problem is

the preparation of the research project, popularly known as the ‘research

design’ “The research design is the arrangement of conditions for collection

and analysis of data in a manner that aims to combine relevance to the

research purpose with economy in procedure.” The study used a

Descriptive Research design for the purpose of getting an insight over the

issue. Descriptive research design includes survey & fact finding inquiries of

different kinds. The major purpose of descriptive research is description of

state of affairs as it exists at present.

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Method of data collection:

This research work, questionnaires and interview method were used to

collect the information. Discussions were held with some of the managers &

other staff members. The complete data has been collected from primary and

secondary sources:

The study of ALM Management is based on two factors.

1. Primary data collection.

2. Secondary data collection

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.

Sample Design

The study used a simple random sampling. A sample design is a definite

plan for obtaining a sample from a given population. It refers to the

technique or the procedure the researcher would adopt in selecting items for

the sample.

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Universe

In this research the universe is Lucknow. The Universe is a complete, or the

theoretically specified aggregation of study elements. It is usually the ideal

population to which research results are to be generalized.

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.

Research InstrumentThe research instrument used was questionnaire with closed and open ended questions.

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.

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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.

WEBSITEShttp://www.euromonitor.com/health-and-wellness-in-india/report

http://tutor2u.net/business/marketing/casestudy_%20buyers_children.asp

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ANNEXUREQuestionnaire 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

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QUESTIONNAIRE

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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