Market analysis of Health Drink segment in India

Chapter I: Introduction and Research methodology

1.1 General Introduction of the project

India is the worlds largest malt-based drinks market, accounts for 22% of the worlds 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

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Market analysis of Health Drink segment in India 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

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Market analysis of Health Drink segment in India Horlicks Boost Complan

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.

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Market analysis of Health Drink segment in India 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. 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 redesign 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.

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Market analysis of Health Drink segment in India The Bournvita Quiz Contest is India's longest running national school quiz.

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 dtre 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

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Market analysis of Health Drink segment in India 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 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 shrinkwrap bottles. In a way, theres a Horlicks pack for every occasion and mood. Put a couple of tablespoons full into a mug. Add warm water or milk and youre ready to enjoy a drink thats 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. Mothers 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.

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Market analysis of Health Drink segment in India

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. 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 pull and great was consumer 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.

subsequently launched at a national

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Market analysis of Health Drink segment in India 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. 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

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Market analysis of Health Drink segment in India 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.

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 Complans 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. Complans 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. Complans 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 Heinzs

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Market analysis of Health Drink segment in India constant endeavour to upgrade Complans formulation as per the latest d evelopments in nutritional sciences and the changing requirements of growing children. 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-todrink 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. GSKs share in the market is around Rs 1,000 crore from four brands, - 17 -

Market analysis of Health Drink segment in India 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 evolving, the growth seems to be directed more towards healthy, light and low-calorie drinks, in particular organic and fruit juice varieties. Nestls 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 2: Health Related Expenses (Srivastav et al, 2003) 2: 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 consumers 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.

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Market analysis of Health Drink segment in India

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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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 towards malted food consumers' satisfaction

products.The area of the study is confined to

Gobichettipalayam town, Erode District. The study was conducted during AprilMay 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

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Market analysis of Health Drink segment in India content, brand loyalty etc. If they get what they expected then they will use that brand for a long time.

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 marketing. plays an important role in modern In this regard, advertisements play a vital role to describe about a

particular product. Advertising through various media has become popular now-adays.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. increases the sales of malted food products. - 23 Here, the frequency of drinking of malted food products not only helps to improve their health but also it

Market analysis of Health Drink segment in India

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 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 product from Department Stores. respondents are purchasing the malted food

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 energetic drinks various suggestions are given. If these suggestions are upon some in addition to taking normal food items. Based on the findings of this study, 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 decisionmaking, 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 considerable importance to together would influence the decision making process. give taste, freshness and Brand name as these three

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 loyalty, sales. that higher promotional expenditure, better quality, strong brand the c onsumer expectations were the reasons for higher s atisfying

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 childrens 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 childs 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 Low Income Medium Income High Income Criteria 1-5 lakhs/annum 5-10 lakhs/annum Above 10 lakhs/annum

20% 45%

Low Income Medium Income High Income

Fig 1: Income group of Families

35%

Age of Correspondents - 29 -

Market Analysis for health drinks segment in India

Age Group 25-30 30-35 35-40

No of correspondents 5 8 7

Percentage 25% 40% 35 %

The mean age of correspondent is 33 yrs. Details of Study population Males Age Group 20-30 30-40 40-50 50-60 60-70 70-80 Above 80 Working 3 15 5 2 3 Retired

1 5 7 1

The entire male population follows sedentary lifestyle.

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Market Analysis for health drinks segment in India

Ailments

Age Group 40-50 50-60 60-70 70-80 Above 80

Diabetic 1 1 5 3 -

Hypertensive 4 2 2 3 1

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 40s. Females Age Group 20-30 30-40 40-50 50-60 60-70 70-80 Above 80 Housewife Working 1 6 10 2 1 5 7 1

Lifestyle:

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Market Analysis for health drinks segment in India

Out of entire female population 33 % follow a sedentary lifestyle whereas the rest of 66 % are moderate in their lifestyle. Ailments Age Group 30-40 40-50 50-60 60-70 70-80 Above 80 Diabetic 1 3 3 Hypertensive 2 2 3 1 1

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 30s Children (0-15 yrs)

50 40 30 20 10 0 0-5 05-Oct Oct-15

Age Group 0-5 5-10 Boys10-15

Girls

Girls 6 6 2

Boys 1 3 4

Fig 2: Distribution of Girls & Boys in the total population

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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.
0

Complan Horlicks
12

Boost Bournvita

Fig 3: Health Drink Consumption Patter -Males

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.
0 Com plan Wom en Horlicks Boost 5 Bournvita

Fig 4: Health Drink Consumption Pattern -Females This highlights the fact that a female doesnt like to spend much on herself when maintaining health is concerned.

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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. .

Complan Junior Horlicks Boost Bournvita DHA

5 6

Fig 5: Health Drink Consumption Pattern -Kids

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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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 customers 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 13% 25%

25% 37% Fig 6: Fast selling Drinks at Retail Chains

Complan Horlicks Bournvita Boost

health drink available .Retail Chain Manager attribute this fact to better promotional campaigns and advertisements on part of GSKCH.

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Market Analysis for health drinks segment in India

NUTRITIONISTS In todays 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

0-5 yrs 5-10 yrs 10-15 yrs 15-20 yrs

Fig 7: Experience of Nutritionists

Type of Patients visiting

Category Kids Young Women Middle age women Middle age men Elderly men

Number 35% 15 % 30 % 10 % 10%

Common ailments reported Loss of weight ,Loss of stamina Stress related disorders Menopausal problems like joint pain and back pain Loss of energy and stamina Loss of energy due to Special conditions like diabetes/hypertension

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Market Analysis for health drinks segment in India

Recommendation of Health drink

7 6 5 4 3 2 1 0
Young Middle Middle Elderly women age age men Fig 8: Recommendation of Health drink for patients women men Kids

Boost Bournvita Horlicks Complan

The above Fig 8 reflects the Nutritionists 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 Womens 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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Market Analysis for health drinks segment in India

Builds stamina Helps in overall growth of kids Only available drink for adults

Helps in Brain development Splendid taste of Cadbury Chocolates Trustworthy Brand for years

Helps in Brain development Enhances height growth GSKHC has a good repute

Boosts Energy Splendid Chocolatey flavor Brand Ambassador - Sachin T - 40 -

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 dont fall sick often. 9) Health drink for women that is cost effective as they dont 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 brands 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.

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Market Analysis for health drinks segment in India

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 the additional needs of her family in the extreme competitive world. Still due to conservative thoughts, she doesnt spend much on her health as much as she spends on her familys 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) Consumers 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

Improved Body and Dispersability

Health Drink

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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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 mothers 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 1 2 3 4 5 Name Gender Age Occupation Lifestyle Ailments

o What type of beverages/drink does your family consume? Name: (for each family member) Specify the brand
Kids Nutrition

Health Drink

Protein Rich

Special Condition

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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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