RESEARCH METHODOLOGY

A Research Study on
Analyzing Consumer Preference in Selection of
Health Food Drinks


CHAPTER 1 - INTRODUCTION TO THE STUDY.....................................3
Malted Health Food Drinks...................................................................................................3
Industry Development...........................................................................................................3
Future Trends........................................................................................................................5
The Problem The Stanant Industry...................................................................................!
CHAPTER 2 - RESEARCH METHODOLOGY...........................................7
"hat is Marketin #esear$h%................................................................................................&
'.Problem Identi(i$ation........................................................................................................&
).#esear$h *b+e$tives...........................................................................................................,
3.#esear$h Methodoloy.......................................................................................................,
-.Data .olle$tion.................................................................................................................''
5.Desinin the /uestionnaire.............................................................................................''
!.Samplin Pro$edure.........................................................................................................')
&.Data Tabulation and 0nalysis..........................................................................................'3
CHAPTER 3 - ANALYSIS OF DATA...........................................................15
Sample Distribution based on in$ome $ateories and (amily si1e......................................'5
2rand 03areness and .urrent .onsumption......................................................................'5
Distribution o( 2rand .onsumption....................................................................................'!
0ttribute Importan$e...........................................................................................................'!
2rand Pre(eren$e.................................................................................................................'&
Pur$hase De$ision In(luen$ers............................................................................................',
Distribution o( Flavor .hoi$es............................................................................................',
.onsumption Fre/uen$y and Timins................................................................................'4
Pur$hase Pla$e.....................................................................................................................'4
Pur$hase Pa$kin and Si1e..................................................................................................'4
Per$eption Mappin............................................................................................................)5
Hypothesis testin6..............................................................................................................)'
7ikert S$ale 0nalysis...........................................................................................................)3
CHAPTER 4 - CONCLUSIONS AND RECOMMENDATIONS...............26
APPENDIX A...................................................................................................28
APPENDIX B...................................................................................................30
Research Methodology
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CHAPTER 1 - INTRODUCTION TO THE STUDY
Malted Health Food Drinks
The Market:
The malted (ood beverae industry is popularly kno3n as the health beveraes se$tor
The health (ood drink sement is $lassi(ied into t3o $ateories 8 3hite li/uid 9Horli$ks:
;iva: .omplan: Milo< and bro3n li/uid 9$ho$olate based drinks6 2oost: 2ournvita<
South and =ast India are a ma+or market (or the 3hite li/uid 3hile the bro3n li/uid has a
ma+or presen$e a$ross >orth and "est India
"hite drinks a$$ount (or almost t3o?thirds o( the 45:555 ton: #s.'-55 $rores market
White Foods
(Horlicks, Complan)
66%
Brown Foods
(Bournvita, Boost)
34%
Industry Development
Histori$ally: malted beveraes have had a stron asso$iation 3ith milk: 3hi$h also e@plains
its stron presen$e in the southern and eastern reions o( the $ountry. These reions su((ered
(rom milk de(i$it and malted beveraes positioned themselves as substitutes (or milk.
*peration Flood: laun$hed in the '4,5s: $haned the s$enario. Andertaken by >ational Dairy
Development 2oard: *peration Flood made milk available in all parts o( the $ountry and the
demand (or 3hite drinks 3as hit. "ith a vie3 to revive demand (or the brands: malted (oods
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Companwise !arketshare
69%
14%
14%
3%
SmithKline Beecham (Horlicks) Heinz (Complan)
Cadbr! (Born"ita) #estle ($ilo)
3ere repositioned as strenth and enery drinks 3ith a nutritional thrust. 0nd this
positionin stands valid till date.
The players
The ma+or players in the #s.'-55 health beveraes market are SmithBline 2ee$ham:
.adbury: >estle and Hein1. The market is dominated by SmithBline 2ee$ham 3ith about !4
per $ent share. The $ompetition is amon the others (or the number t3o slot.
SmithKline Beecham (Horlicks, Boost, Maltova, Viva) 69
Heinz (Complan) 14
Cadbury (Bournvita) 14
Nestle (Milo) 3
Consumer behavior
=nery drinks or milk drinks are per$eived as a lu@ury. This e@plains the slo3 o((?take.
"hile 3hite beveraes are hailed (or their therapeuti$ o((erins: $onsumers look at
bro3ns as mere taste additives.
2rand loyalties are not very stron as the key taret: $hildren: are al3ays lookin (or ne3
produ$ts.
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Promotion $ampains su$h as (reebies and $ontests also play an important role in
in(luen$in brand $hoi$e. These $ampains are mainly tareted at $hildren 3ho (or$e
their parents to buy these produ$ts. Free i(ts like $rystal +ars: pet +ars and sippers also
attra$t $onsumers.
The milk?de(i$ient South and =ast pre(ers 3hite li/uid po3ders 9Horli$ks: ;iva: and
.omplan< as the drink $an be prepared 3ith hot 3ater 3hereas the milk?(lush >orth and
"est pre(ers the $ho$olate drinks that taste ood in milk. Further: south in eneral is a
$o((ee?drinkin market and (or the people produ$ts like Horli$ks are enerally reserved
(or spe$ial uestsCrelatives and (or the si$k and $onvales$in.
Penetration Level:
The penetration o( malted (ood in India is a lo3 !.' per $ent. *ver the last (e3 years: there
have been a number o( attempts to e@pand the health?beveraes business. In vie3 o( the
tremendous ro3th potential: many multi?national $orporations 9M>.s< as 3ell as domesti$
players have made aressive investments in this se$tor: but there are very (e3 players le(t in
this se$tor in India: today. This is mainly be$ause it is per$eived as a lu@ury item.
Key Sales Areas
Malt beveraes are still an urban phenomenon: 3ith a ma+ority o( the sales $omin (rom
urban areas. The total market is pla$ed at about &5:555?'55:555 tons. Deoraphi$ally
speakin: it has a bi market in the south and the east.
Product life Cycle of the category
Health drinks is a relatively mature $ateory. *#D?M0#D estimates pin the ro3th o( the
malt beveraes $ateory at a meaer '.!E $umulative *$tober F53. In the past: the southern
markets 3ere the hih ro3th markets (or 3hite drinks: due to the s$ar$e availability o( milk.
Future Trends
Risk of White segment stagnating is high: The $urrent &5635 ratio o( 3hite and bro3n
drinks 3ill tilt in (avor o( bro3ns (or t3o reasons6
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'. Increase in milk availability: Histori$ally: Horlicks (and Other White food drinks)
3ere promoted as a substitute to milk and are thus more popular in milk de(i$ient
areas in =astern and Southern India. =ven no3: about '5?)5E is taken as a substitute
to milk. "ith in$reased availability o( milk there is possibility o( de$line in
$onsumption o( 3hite drinks 9taken 3ith 3ater as milk substitute< in the lon term.
Indian dairy industry has been ro3in steadily and milk produ$tion is e@pe$ted to
in$rease by about ).,E to 4' million tons in .G5!. The milk availability s$enario
has also $haned over the last t3o years on a$$ount o( entry o( >estle: 2ritannia and
0mul in AHT milk. 2ro3ns are more suitable (or $onsumption 3ith milk.
). Significantly higher competition in Browns: 0s the $ompetitive s$enario is more in
2ro3n drinks the players spend more on 0SP and trade push resultin in overall
ro3th o( the sement 3hi$h $ould be at the e@pense o( "hite drinks.
The Problem - The Stagnant Industry
The #s.'3 billion HFD market has been relatively stanant in India 3ith penetration levels o(
only ! per $ent. 0lthouh ro3th opportunities in the se$tor are tremendous: it has been
ro3in in sinle diits at about &?4 per $ent per annum.
The de$line is partly be$ause o( e@$essive promotional a$tivities 3hi$h 3ere started initially:
but 3ere dis$ontinued. 2esides: pri$e hikes by players in the malted (ood beveraes market
has translated into poor volume ro3th (or brands. *ther reasons in$lude6
'. 7a$k o( innovation leadin to brands enterin one anotherHs territory
). .ommuni$ation Imbalan$e6?The key $hallene still is bein able to a$hieve the riht
balan$e bet3een talkin to the mother and the $hild. It $urrently seems to have t3o
distin$t parts 8 the produ$t dire$ted at the mother and the pa$kain tryin to pull in
the $hild. MFD manu(a$turers need to either rede(ine the produ$t o((er or the taret
audien$e 8 pre(erably 8 both in order to ro3.
0nother sini(i$ant reason (or medium ro3th rates o( malted (ood industry lies in its
limited a$$eptability andCor its rea$h in Indian so$iety. Malted (oods have primarily been
used in upper and upper middle?$lass (amilies: 3hi$h $onstitute a small proportion o( the
Indian population.
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CHAPTER 2 - RESEARCH METHODOLOGY
What is Marketing Research?
IMarketin #esear$h is the (un$tion 3hi$h links the $onsumer: the $ustomer and publi$ to
the marketer throuh in(ormation: used to identi(y and de(ine marketin opportunities J
problems: re(ine and evaluate marketin a$tions: monitor marketin per(orman$e and
improve understandin o( marketin as a pro$essK
American Marketing Association
1. Problem Identification
0 resear$h problem: in eneral: re(ers to some di((i$ulty 3hi$h a resear$her e@perien$es in
the $onte@t o( either a theoreti$al or pra$ti$al situation and 3orks to obtain a solution (or the
same. In the $onte@t o( Health Food Drinks: some key problems are6
"hat are the various (a$tors that a((e$t the buyin C non buyin o( health (ood drinks
Research Methodology
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Problem
identification
Research
objectives
Research
Design
Research
Methodology
Sampling
Procedure
Data Collection
Data Analysis
Report &
Presentation
Follo !p
To identi(y reasons (or de$linin sales and thereby identi(y 3ays to in$rease sales
To identi(y key pur$hase behavior patterns in(luen$in the buyin o( HFDs
2. Research Objectives
The Bey #esear$h *b+e$tives are6
Identi(yin .onsumer behavior attributes that in(luen$e buyin de$ision
To study the $onsumption pattern o( e@istin $ustomers.
To identi(y the most pre(erred brand: pa$k si1e: and the amount the $ustomer
is 3illin to spend.
To identi(y reasons (or not $onsumin HFD
3. Research Methodology
The resear$h methodoloy has been desined keepin resear$h ob+e$tives under
$onsideration. The resear$h methodoloy aims to provide sementations o( health (ood
drinks market and to understand the relative importan$e o( (lavors: pri$es and other su$h
attributes: 3hi$h in(luen$e pur$hase de$isions.
a) Research Design
#esear$h desin is a total plan or stratey o( a proposed resear$h. It is a series o(
anti$ipated steps like the blue print o( a buildin. It is a $on$eptual stru$ture 3ithin
3hi$h resear$h is $ondu$ted.
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#esear$h Desin
=@ploratory resear$h Des$riptive #esear$h
Survey
Se$ondary Survey
#esear$h pilot study
Method adopted: - 0 t3o?step resear$h desin 3as adopted.
An exploratory research was done initially to identify the various reasons
as to why consumers buy/dont buy HFDs. The key reason (or $ondu$tin an
e@ploratory resear$h 3as that the study aimed at ettin a (eel o( the situation and
emphasi1ed a dis$overy o( ideas J possible insihts in terms o( HFD $onsumption
0 primary research and interview method - open ended questionnaire was used
to collect the relevant data.
This was followed by a descriptive research which helped identify the
different factors that affect buyin! and the importance of each of these
factors. The survey method was adopted A closed ended questionnaire was
used for this purpose. The questionnaire was administered on both
users/non users of HFDs. The respondents for the survey were cross-
sectional.
What was our Secondary Data?
0 se$ondary resear$h 3as done to identi(y the industry $ondition and the position o( Health
Food Drinks 3ith respe$t to the key players involved.
Demand growth in recent times has been driven by:
0dvertisin led positionin:
Promotional e((orts.
#epositionin by ma+or players have on the Ihealth plat(ormK
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Key Category Drivers
Domesti$ market is unlikely to 3itness e@ponential ro3th: but hiher e@ports $ould
drive sales.
Supportin key players over the peak 3inter months
.apitali1in on ne3 produ$ts: pa$kain and (lavor initiatives 3ithin the sement
Supportin market leaders 3ho drive $ateory ro3th and pro(it
Aser (riendly pa$k (ormats: premium /uality produ$t and value (or money pri$e points
What is being currently done to increase sales in the product category?
Freebies6 Some o( the usual (reebies o((ered 3ith the produ$ts in$lude Ti((in bo@es:
3at$hes: sunlasses and toys like $ars and balls.
Re-launches: Fa$ed 3ith stanant demand: manu(a$turers are usin re?laun$hes: promotions
and repositionin to keep the $ateory ti$kin
Consumer Behavior
=nery drinks or milk drinks are per$eived as a lu@ury. This e@plains the slo3 o((?take.
"hile 3hite beveraes are hailed (or their therapeuti$ o((erins: $onsumers look at
bro3ns as mere taste additives.
2rand loyalties are not very stron as the key taret: $hildren: are al3ays lookin (or ne3
produ$ts.
Promotion $ampains su$h as (reebies and $ontests also play an important role in
in(luen$in brand $hoi$e.
These $ampains are mainly tareted at $hildren 3ho (or$e their parents to buy these
produ$ts.
Free i(ts like $rystal +ars: pet +ars and sippers also attra$t $onsumers.
The mother was the key decision maker (or the $ateory to be brouht into the home.
Pester po3er is not very hih 9at least in south<. Ho3ever it has been in$reasin in the re$ent
times.
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4. Data Collection
The Exploratory Phase
0n e@ploratory primary resear$h 3as $ondu$ted on '5 respondents. 0ll o( them 3ere reular
internet users.
These respondents were personally interviewed by us on various aspects
which were ali!ned with the research ob"ectives. #o questionnaire was used
for this and it was a !eneral interview re!ardin! use of internet and
online advertisin!.
Data Collected:-
Key findings -Consumer
Hih usa!e of internet amon! the users
Asers 3ere a3are about online advertisement
Se$urity 3as a ma+or $on$ern (or the users
*n an averae users 3ere usin internet sin$e last -?5 years
.onsumers $ame to kne3 about the ne3 produ$ts throuh online advertisement
5. Designing the questionnaire
The respondents 3ere asked to (ill the /uestionnaire in an online survey. The /uestions 3ere
desined in su$h a 3ay so as to alin them 3ith the resear$h ob+e$tives.
What Information is needed?
"e have endeavored to obtain in(ormation about sur(in habits o( the users and their
response to online advertisement
What was the content of the Individual questions?
*nly /uestions those 3ere ne$essary to dra3 in(eren$es and $on$lusions
Luestions 3here 3e kne3 the respondent 3ould have true in(ormation
Luestions 3hi$h 3ere 3ithin the respondents e@perien$e
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Luestions 3hi$h 3ould be easy to understand and interpret (or the respondent.
What was the wording of the questions?
It 3as endeavored (or the /uestions to be
Simple
Anambiuous
Spe$i(i$
Mi@ o( positive and neative statements to measure attitude.
What was the sequence of the questions?
The se/uen$e o( the /uestions 3as to se$ure
Initially: basi$ in(ormation 3ith respe$t to their type and duration o( internet usae.
.on$erns 3ith the se$urity
Their brand a3areness and pur$hase o( produ$ts based on online advertisin
9$lease refer the questionnaire%
Pre-testing the questionnaire
The /uestionnaire was pre-tested on & respondents to identify if the
respondents faced any difficulty while answerin! the questionnaire
6. Sampling Procedure
Target customer group: This study 3as aimed at the ae roup o( )5 to -5 residin
any3here in India. The main taret 3as users 3ith hih internet usae. 0 stru$tured
/uestionnaire 3as $ir$ulated online in order to obtain the in(ormation.
The taret sample si1e 3as taken as '55. "e $ould a$tually et 43 responses (rom our online
survey
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The Sampling Process
Step Description
1. Define the population The population is de(ined in terms o( an element 6? Users
Anits? a$ross all the se$tions
=@tent? those 3ho you are usin internet
Time usin internet sin$e atleast ! months
2.Specify sampling frame Asers usin internet any3here in India sin$e last ! months
3. Specify sampling unit The unit (or samplin is a internet user
4. Specify sampling method Non probability sampling has been used as 3e do not
have a samplin (rame: it is less time $onsumin: and 3e
have limited resour$es.
Disadvantaes o( usin non?probability samplin are
samplin error $annot be $al$ulated: 3e do not kno3 the
deree to 3hi$h the sample is the representative o( the
population: the results $annot and should not be pro+e$ted
to the total population.
5. Determine sample size 0 total o( 43 samples has been arrived at.
The sample si1e has been determined $onsiderin the
(ollo3in $onstraints6?
Severe Time $onstraints
03areness $onstraints.
7. Data Tabulation and Analysis
Data obtained (rom the /uestionnaires 3as summari1ed in sinle and $ross tabular (orm. The
tables 3ere desined in su$h a 3ay that $ross variant analysis o( t3o di((erent variables 3as
possible.
To as$ertain relationship bet3een t3o variables: e.. $hoi$e and (lavor .hi?s/uare test 3as
used. 9The $hi?s/uare test is one o( the most 3idely used methods in resear$h. It is use(ul
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be$ause: under reasonable assumptions: easily $al$ulated /uantities $an be used to prove
relationship bet3een t3o variables<
The data tabulation and analysis 3ent throuh t3o tier $he$ks to avoid data entry errors.
Mi$roso(t =@$el spread sheets 3ere used (or the same. The proram had inbuilt tools to
$al$ulate various statisti$al variables: that are 3idely used (or simple $al$ulations.
Limitations
'. The sample primarily $onsists only o( people residin in Mumbai. The attributes
pre(erred by this sement may not be pre(erred by the $onsumers residin at other
lo$ations. There(ore: the (indins o( this study should not be enerali1ed a$ross
eoraphi$al lo$ations.
). The /uestionnaires 3ere distributed as per $onvenien$e o( resear$hers. 9.onvenien$e
samplin<. There(ore: resear$her are not sure o( the e@tent to 3hi$h sample represents
the population.
3. .onsumer pre(eren$e (or the produ$t depends upon number o( internal and e@ternal
environmental (a$tors. This resear$h is bein $arried out to assess impa$t o( spe$i(i$
(a$tors on $hoi$e o( the produ$t. Ho3ever: it should not be +uded that $hoi$e o(
produ$t depends only on the (a$tors dis$ussed in the resear$h.
-. The resear$h 3as $arried out by students o( post?raduate manaement proram and
they do not have any prior e@perien$e o( $arryin out market resear$h
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"ncome Cate#ories
%%
&9%
3'%
(%
(%
&3%
')1( 1()3' 3')4( 4()6' 6')*( *(+
CHAPTER 3 - ANALYSIS OF DATA
Sample Distribution based on income categories and family size
The sample si1e had e/ual number o( respondents (rom di((erent in$ome levels: thus
ensurin ade/uate so$io?e$onomi$ representation. 45E o( the respondents had 3 or -
members in their (amilies.
Brand Awareness and Current Consumption
0lmost all respondents 3ere a3are o( the di((erent brands 3ith a (e3 e@$eptions (or Milo
and Maltova.
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*ut o( the 55 respondents: -5 3ere $urrent $onsumers o( Health Food Drinks: 3hile the
remainin '5 3ere not.
Consumers, 4$
%on&
Consumers, '$
Distribution of Brand Consumption
In terms o( $urrent brand $onsumption: hal( o( the respondents $onsumed 2ournvita:
3hereas one?third o( respondents $onsume Horli$ks.
Attribute Importance
The 3eihtae iven by all respondents to the importan$e o( di((erent attributes in HFD
3ere $ompiled and $onsolidated. The most important attribute listed by this parti$ular
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sample o( respondents 3as >utrition: thus providin a key (o$us area (or $ompanies and
marketers.
(ttri)ute importance
15
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,ttribtes in Brand bo-ht
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This sho3s that nutritional value is the attribute that people rate as havin 55E importan$e
in $hoosin any brand. The attribute o( nutritional value overns peopleHs $hoi$e o( a
parti$ular brand more than anythin else.
The above t3o raphs have sho3$ased the (a$t that people 3ant HFD (or nutritional value
and their (inal brand pre(eren$e is also based on their per$eption o( a parti$ular brandHs
nutritional value. That means the $onsumers are $onsistent on 3hat they 3ant out o( their
HFD.
Purchase Decision Influencers
&5E o( the respondents pur$hased a HFD brand based on their o3n kno3lede or their
spouseHs re$ommendation.
Distribution of Flavor Choices
The ma+ority o( respondents pre(erred .ho$olate (lavors in their HFDs: 3hile others
pre(erred it to be either natural or vanilla (lavored.
+istri)ution o, Flavors
%atural
'-%
Chocolate
.4%
/anilla
4%
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Consumption Frequency and Timings
*n$e a Day T3i$e a day
>o o( respondents 3& 3
Mornin 0(ternoon =venin >iht
>o o( respondents 33 5 5 &
Purchase Place
0 ma+ority o( respondents indi$ated that they pur$hase HFDs (rom supermarkets 3hereas the
remainin bouht it mainly (rom medi$al stores.
Purchase Packing and Size
In terms o( pa$kin pre(eren$es: the ma+ority o( the respondents pre(erred #e(ill pa$ks and
555 m si1es.
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Perception Mapping
The above per$eption map sho3s the position o( ea$h brand on the parameters o( >utritional
;alue and Taste. To obtain this the ratins provided by respondents 3ere used. The ratin
(or above parameters 3as on the s$ale ' to 5. From the above per$eption map 3e $an in(er
that 2ournvita is per$eived to be hih on >utritional ;alue and lo3 on Taste. 0s aainst this:
Milo 3as hih on Taste and lo3 on >utrition. Horli$ks: .omplan and 2oost had sini(i$ant
ratin on both s$ale. .omplan and 2oost do not have mu$h di((eren$e in the minds o(
$onsumers on this parti$ular map.
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The above per$eption map is on the parameters o( pri$e and brand value. Here too:
respondents 3ere asked to rate a parti$ular brand on s$ale o( ' to 5 (or these parameters.
Asin these ratins this map 3as $reated. Here 3e $an see that 2ournvita is the hihest on
brand value. .omplan is the ne@t in line. 2oost is $omparatively smaller brand than
2ournvita.
Hypothesis testing:
2ased on the responses and data analysis: the (ollo3in hypotheses 3ere tested to establish
$orrelation bet3een di((erent (a$tors6
Hypothesis # 1
Ho6 The brand suested and the brand a$tually bouht: are interrelated.
Ha6 The brand suested and the brand a$tually bouht: are independent.
Retailer Kid Doctor Friends Spouse Others Total
Horlicks 5 5 ) - '5 5 16
Bournvita 5 - 5 ) '- - 24
Boost 5 5 5 5 3 5 3
Milo 5 5 5 ' 5 ) 3
Maltova 5 5 5 5 5 5 0
Complan 5 5 5 5 ) ' 3
Other 5 5 5 5 5 5 0
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*rice /s0 Brand %ame
*rice
B
r
a
n
d
Complan
!ilo
Bournvita
Horlicks
Boost
Total 0 4 2 7 29 7 49
Deree o( (reedom M 9r?'< 9$?'<
M 9&?'< 9!?'<
M 35
7evel o( sini(i$an$e M 45E
.hi?s/uare $riti$al M ',.5
.hi?s/uare $al$ulated M )3.,'
#e+e$t the null hypothesis and a$$ept the alternate hypothesis.
Conclusion:
There is no relationship bet3een brand suested and brand a$tually pur$hased by $onsumer.
Hypothesis # 2
Ho6 7o$ation o( pur$hase and /uantity pur$hased are interrelated.
Ha6 7o$ation o( pur$hase and /uantity pur$hased are independent.
200 gm 500 gm 1 kg Total
General Store 5 ! ) ,
Medical Store 5 4 3 ')
Supermarket 3 '4 & )4
Total 3 3- ') -4
Deree o( (reedom M 9r?'< 9$?'<
M 93?'< 93?'<
M -
7evel o( sini(i$an$e M 45E
.hi?s/uare $riti$al M 5.&''
.hi?s/uare $al$ulated M ).))!
#e+e$t the null hypothesis and a$$ept the alternate hypothesis.
Conclusion:
7o$ation o( pur$hase does not a((e$t /uantity pur$hased by $onsumers.
Hypothesis #3
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Ho6 Total $onsumption o( HFDCday and monthly in$ome: are interrelated.
Ha6 Total $onsumption o( HFDCday and monthly in$ome: are independent.
1otal teaspoon
consumption2da ' - 3 4 6 . '- 1otal
!onthl income
'3&3$4 3 3 1 1 ' ' ' %
3$&434 3 ( 4 6 ' 1 1 &'
43&6$4 3 3 & ' 3 ' ' 11
6$&534 1 ( ' & 1 1 ' 1'
1otal 1' 16 * 9 4 & 1 49
.hi?s/uare $al$ulated M '4.&
Deree o( (reedom M !N3
M ',
.on(iden$e interval M 45E
.hi?s/uare $riti$al M 4.34
#e+e$t the null hypothesis.
.on$lusion6 Monthly in$ome does not a((e$t HFD $onsumption. The monthly $onsumption
o( HFD $an be $al$ulated (rom daily $onsumption. Monthly $onsumption is a better
indi$ator o( the monthly e@penditure be$ause any $onsumer 3ould have an a$$urate idea o(
the amount he $onsumes daily: in terms o( number o( teaspoons: rather than his averae
monthly e@penditure 3hi$h $ould be ina$$urate.
Likert Scale Analysis
For 7ikert S$ale 0nalysis 3e prepared a set o( '5 statements. "e asked every respondent to
ive their responses on a 5?point s$ale as iven belo36
Stronly 0ree
0ree
>eutral
Disaree
Stronly Disaree
#espondents ave ans3ers on the above s$ales. "e $onverted them to a number s$ale in the
(ollo3in 3ay6
Research Methodology
)3
Stronly 0ree M '
0ree M )
>eutral M 3
Disaree M -
Stronly Disaree M 5
"e $al$ulated the mean s$ore and standard deviation (or ea$h statement. Asin sinle?tailed
1?test 3e tested 3hether the statement has to be a$$epted or re+e$ted (or the sample o(
respondents $onsidered. The results are sho3n in the table belo36
Hypothesis Mean
Standard
Deviation
Z
calculated
Z
critical
Result
Health Food Drinks are meant only (or kids 3.3& '.)& ).53 '.!- #e+e$t
Health Food Drinks are meant only (or si$k
people
3.!3 '.)5 3.53 '.!- #e+e$t
Health Food Drinks are Fun to have 3.)5 '.'5 '.)- '.!- 0$$ept
I need HFD be$ause I donHt have a balan$ed
diet everyday
3.)& '.'& '.54 '.!- 0$$ept
Health Food Drinks are meant only (or
$onvales$ent mothers
3.&' '.'& -.)! '.!- #e+e$t
HFDs are e@pensive 3.)& '.5) '.,3 '.!- #e+e$t
I am already healthy and donOt need HFD 3.-' '.)' ).3& '.!- #e+e$t
Health Food Drinks are meant only (or health
$ons$ious people
3.,- '.5' 5.,) '.!- #e+e$t
I donHt drink milk be$ause it is (attenin 3.!& '.53 -.5, '.!- #e+e$t
The aroma o( HFD tempts me to drink more 3.)4 '.') '.&4 '.!- #e+e$t
2ournvita 3ill make my $hild more $on(ident 3.,5 '.') -.4, '.!- #e+e$t
Health Food Drinks are meant only (or
sportsmen
3.!' '.)5 3.5! '.!- #e+e$t
I 3ill buy HFD i( o((ered in a sa$het ).!' '.)5 ?).)5 '.!- 0$$ept
.laims made in advertisements o( HFDs are
untrue
).,, '.3) ?5.!5 '.!- 0$$ept
HFDs are useless 3.!5 '.', 3.,& '.!- #e+e$t
Research Methodology
)-
Conclusions:
'. The $onsumers (eel that HFD are not meant only (or kids: si$k people or
$onvales$ent mothers.
). .onsumers (eel that HFD are (un to $onsume.
3. .onsumers also (eel that they are not meant (or health $ons$ious people or
sportsmen.
-. .onsumers (eel that HFD are a supplement to balan$ed diet be$ause the statement II
need HFD be$ause I donHt have a balan$ed diet everydayK has been a$$epted.
5. .onsumers do not per$eive that HFD are e@pensive.
!. The statement IThe aroma o( HFD tempts me to drink moreK is re+e$ted 3hi$h means
aroma o( HFD is not the reason (or $onsumption.
&. The statement I2ournvita 3ill make my $hild more $on(identK is re+e$ted and
I.laims made in advertisements o( HFDs are untrueK is a$$epted. So $laims in
advertisements that HFD make your $hild more $on(ident is not somethin that
attra$t people to HFD.
,. People are ready to bur HFD in sa$het (orm
4. Finally: people do not think that HFD are useless.
Research Methodology
)5
CHAPTER 4 - CONCLUSIONS AND RECOMMENDATIONS
The (indins o( the resear$h and the suestions based on the same are enumerated belo3.
These suestions $an be $onsidered by the HFD $ompanies in their marketin strateies:
produ$t development as 3ell as advertisin $ampains.
Brand Awareness
The a3areness about brands has been very hih in $ase o( all the brands mentioned to
respondents. 0ll the $onsumers had heard about the brands mentioned in the /uestionnaire.
Hen$e most o( the $ompanies need to (ollo3 #eminder?0dvertisin as most brands are in the
ro3th or maturity stae.
Decision Making
.ontrary to e@pe$tations: the de$ision maker is not the kid in the (amily: but more $ommonly
the mother or (ather in the household. Hen$e: $ommuni$ation strateies and the marketin
mi@ should be aimed at these de$isive (a$tors.
Attribute Focus
Most respondents 3ere very $lear that I>utritionK 3as the key attribute that they souht in a
HFD. Hen$e: this should be addressed in the marketin mi@ o( the $ompany to $onsistently
promote this (eature in all $ommuni$ations.
Flavor
The ma+ority 9,-E< o( the respondents pre(erred $ho$olate (lavored drinks. This indi$ates a
stron pre(eren$e in the market 3hi$h has to be $onsidered by the produ$t makers.
Place
Most $onsumers buy HFDHs (rom supermarkets. Hen$e appropriate distribution $hannels
$onsiderin this trend should be used. In?store promotions and attra$tive shel( spa$e 3ill
help brands. 2rands o( HFDHs have to (o$us on visibility and.
Packing
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)!
The respondents sho3ed a stron pre(eren$e (or #e(ill Pa$ks o( si1e 555 ms: 3ith more
than &5E o( $urrent $onsumers usin this pa$k. This is a $lear indi$ator o( $onsumer
pre(eren$e (or marketers to $onsider.
Price
The results based on the survey as 3ell as 7ikert analysis sho3 that pri$e is not a ma+or
$riterion in $hoosin health drinks as 3e $an see that people are not a$$eptin the statement
IHFD are e@pensiveK. Hen$e: marketers 3ould need to avoid positionin themselves on this
(ront and use other attributes to position their produ$t.
The target market
Popular per$eption o( a produ$t plays a key role in sele$tin a market. 2ased on the 7ikert
analysis results: it is very $lear that Health Food Drinks are not per$eived as produ$ts meant
only (or kids: si$k people: health $ons$ious people or sportspersons as the statements
$laimin so have been summarily been re+e$ted. Hen$e: there is a very ood potential (or
$ompanies to e@pand their $urrent market by positionin themselves di((erently: to address
ne3 sements.
Confidence
Most respondents donHt (eel that 2ournvita 3ill make their $hild more $on(ident and hen$e
.adburyHs 2ournvita should $ommuni$ate this positionin to the taret $onsumers more
e((e$tively. For that matter any HFD $ompany should $onsider this $ase that $laims o( $hild
ainin $on(iden$e by drinkin HFD that these $ompanies make throuh their
advertisements are not bein a$$epted by the $onsumers. So they should either make that
statement more e((e$tively or $hane the $laims they make to somethin that is more
a$$eptable.
Fun
Most $onsumers asso$iated HFDs as a (un produ$t and this $an be used as an e((e$tive tool
in all $ommuni$ations to enhan$e the IFunK per$eption o( the produ$t.
Breakfast
Research Methodology
)&
HFDHs $an also be promoted as a healthy drink to be had alon 3ith break(ast. The sample
3hi$h 3as $onsidered sho3ed that ma+ority o( the $onsumers had HFDs in the mornin
alon 3ith their break(ast.
APPENDIX A
SWOT Analysis of key players in Indian HFD Industry
Brand /
Company
Strength Weakness Opportunity Threat
Horlicks
SBCH
0bout '55?yr old
e@tremely stron
brand 3ith about
,5EP market share in
the "hite sement.
;ery stron
distributionCpresen$e
in South and =ast.
QR.onsumption by
pri$e sensitive
$onsumers 9Se$
.< $ould impa$t
pri$in po3er.
QRProdu$t is taken
as milk?substitute
in $ertain reions.
In$rease in
availability o(
AHT milk $ould
impa$t the
demand.
QR#eady?to?drink
(ormat o((ers
opportunity to tap
out?o(? home
$onsumption.
QRPossibility o(
.annibali1ation
(rom Via
QR.urrent
$ompetition
is very 3eak ?
entry o( ne3
players like
0mulC
H77C*thers: is a
possibility iven
hih marins and
3eak
$ompetition!
Boost
SBCH
QRStron in South 3ith
about !5E market
share.
Dro3th
possibility
(rom distribution
e@pansion in
>orthC"est.
QR.ompetition (rom
Milo!
Possible
$annibali1ation by
Maltoa!
i!a
SBCH
QR 0ttra$tive pri$in QR Distribution
e@pansion.
QR Market
=@pansion o3in
to lo3?pri$in
stratey.
QR Dro3th at the
e@pense o(
Horlicks!
"alto!a
SBCH
QR 0ttra$tive pri$in QR Dains (rom
e@pansion in
distribution.
QR
QR Dro3th at the
e@pense o( Boost!
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),
Market
=@pansion due to
lo3 pri$in.
Com#lan
Hein"
QRStron medi$al
heritae o3in to its
link 3ith erst3hile
Dla@o.
QR.ompany $laims
produ$t superiority in
terms o( hiher milk
$ontent.
QRPremium pri$in
Stratey is not in
syn$ 3ith
$ompetition.
QRThe brand rea$h
in no. o(
households is
about 'C'5th o(
Horlicks.
The $ompany $an
ro3 by
e@pandin
distribution
althouh the
ro3th 3ill be
limited to Se$
0C2.
Bourn!ita
Cad#$ry
QR 0sso$iation 3ith
taret $onsumers
9kids< throuh O2L.O
QR Dain in market share
o( about '.5E in last
')?months.
QR"eak presen$e in
South. QRMarket
share trend has
been errati$.
"ilo
%estle
QR 0ttra$tive Pri$in.
For e@ample: '?k
pa$k $an $ompete
even 3ith Maltoa
!
"orldOs larest
.ho$olate Malted
drink.
QRInitial tra$k
re$ord is not
impressive
QR >on?availability
in Sar (ormat.
QRPossibility o(
ainin share by
e@pandin
distribution C
introdu$tion in Sar
(ormat.
0dvantae o(
>estleOs 3ide
port(olio (or
$rosspromos
Cinstitutional
salesC distribution.
QR.ontinuation o(
Hih promosC
dis$ount s$hemes
$ould impa$t the
imae.
$utramul
%C""F
QR7o3est pri$in driven
by D.MMF business
philosophy o(
providin value?(or?
money produ$ts.
QR Marketin
support
is minimal
QR=ntry in the
"hite sement.
Research Methodology
)4
APPENDIX B
Questionnaire
Dear SirCMadam:
"e are M20 students o( >MIMS and are $ondu$tin a survey on buyin behaviour o( milk
based Health Food Drinks. "e soli$it your kind $ooperation and re/uest you to ans3er the
(ollo3in /uestions. Thank Gou.
'< "hi$h are the di((erent Health (ood drinks you are a3are o(%
Horli$ks T 2ournvita T Maltova
2ournvita T Milo T .omplan
*thers please Spe$i(y
)< Do you or any body in the (amily $onsume health (ood drinks% 9 I( >o :oto L ', <
Ges T >o
3< Please divide '55 points amon the (ollo3in $hara$teristi$s so that the division
re(le$ts relative importan$e o( ea$h attribute to you: in sele$tion o( a health (ood
drink.
It Provides >utrition
DonHt like plain milk
Do$tor re$ommended it
2rand name
Gour (avorite 0$torCSportsman advertises (or it
ItHs Tasty
T*T07 '55
-< "hi$h brand have you been buyin sin$e the last si@ months%K
Horli$ks T 2oost 2ournvita T Milo
T .omplan
*thers: Please Spe$i(y
5< This brand has been suested to you by6
#etailer T Gour Bid T >one o( the
above
Do$tor T Friends
!< "hat $apa$ity pa$k do you enerally buy%
)55 bottle T 555 bottle T ' k bottle
Research Methodology
35
)55 +ar T 555 +ar T ' k +ar
)55 re(ill pa$k T 555 re(ill pa$k T ' k re(ill pa$k
Sa$hets
&< "hi$h (lavour do you enerally buy%
>atural T Stra3berry T 2anana
Mano T .ho$olate T ;anilla
*thers
,< Ho3 many ne3 (lavours have you tried in the last ! months%
T >one T ' T ) T 3 T - T 5
4< Ho3 o(ten do you $onsume health (ood drinks%
*n$e a day T *n$e in ) days T #arely
T3i$e a day T *n$e a 3eek
'5< Ho3 many s$oops o( po3der do you use per servin%
' spoon T ) spoons T More then thatUUUUUUUUU
''< "hen do you $onsume health (ood drink%
Mornin9break(ast< T =venin 9break(ast <
0(ternoon T >iht 92e(ore sleepin<
')< From 3here do you buy Heath (ood drinks
BiranaCeneral Store T Petrol Pump *utlets
Super Market T *nline Shoppin
Medi$al Store T *thers: Spe$i(yUUUUUUUUUUUUUU
'3< Please divide '55 points amon the (ollo3in $hara$teristi$s so that the division
re(le$ts relative importan$e o( ea$h attribute to you: in sele$tion o( a health (ood
drink.
TasteCFlavour
>utritional value
Pri$e
2rand name
Pa$kae attra$tiveness
Free i(tsC Dis$ounts
T*T07 '55
'-< #ate the (ollo3in brands on the iven attributes9 '?least 5? ma@imum<
2ournvita 2oost .omplan Horli$ks Milo
Taste C Flavour UUU UUU UUU UUU UUU
>utritional C =nery level UUU UUU UUU UUU UUU
Pri$eC0((ordability UUU UUU UUU UUU UUU
2rand >ame UUU UUU UUU UUU UUU
Pa$kae attra$tiveness UUU UUU UUU UUU UUU
Free i(tsC Dis$ounts UUU UUU UUU UUU UUU
Research Methodology
3'
'5< Ho3 mu$h do you spend on health (ood drink per month%
#s 55?'55 T #s '55?'55 T #s '55?)55
#s )55?)55 T #s )55?355 T #s 355P
'!< Have you $haned your brand in the last ! months %9 I( no: oto L ',<
T Ges T >o
'&< I( Ges: "hy%
T >e3 Flavour T Free i(tCDis$ount
T .heaper option T #e$ommended by someone
T *ther: Please spe$i(y
',< Please Fti$kH appropriate bo@
T Stronly T 0ree T >eutral T Disaree TStronly
0ree Disaree
IHealth (ood drinks is meant T T T T T
(or BIDSK
IHealth (ood drinks is meant T T T T T
(or SI.B peopleK
IHealth (ood drinks are T T T T T
FA> to have K

I I >==D health (ood drink T T T T T
be$ause I D*>HT have a
balan$ed diet everydayK
IHealth (ood drinks are
meant (or $onvales$ent
mothersK T T T T T
IHealth Food Drinks
0re e@pensive I T T T T T
II am already healthy and
donHt need health (ood drinksK T T T T T
II am already healthy and
donHt need health (ood drinksK T T T T T
IHealth (ood Drinks are only
For health $ons$ious peopleK T T T T T
I I donHt drink milk be$ause
its (atteninK T T T T T
Research Methodology
3)
I2ournvita 3ill make
my $hild more $on(identK T T T T T
IHealth (ood drinks is meant T T T T T
only (or SP*#TSM=>K
II 3ill buy Health Food Drink
i( o((ered in a sa$het T T T T T
I.laims made in the
advertisements o( Health Food T T T T T
Drinks are untrueK
IHealth Food Drinks are uselessK T T T T T

'4< "hat $omes to your mind 3hen you hear the 3ord IHealth Food DrinkK
>utritious (ood supplement Sust FlavoredCTasty Milk
0lternative to F**D >*>= o( the above
)5< "hat $omes to your mind 3hen you hear the 3ord I2ournvitaK
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU
)'< I think people 3ho drink health (ood drinks are
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU
PERSONAL INFORMATION
>ame6 UUUUUUUUUUUUUUUUU Dender6 UUUUUUUUUUUUUU
0e6 UUUUUUUUUUUUUUUUUU 0rea6 UUUUUUUUUUUUUUUU
Marital Status6 UUUUUUUUU =du$ational Luali(i$ation6 UUUUUUUUUU
*$$upation6 UUUUUUUUUUUU >o o( Members in Family6 UUUUUUUUU
MONTHLY HOUSEHOLD INCOME
Apto #s '5:555 T #s 35:555?-5:555 T !5555?&5555
#s '5:555 35:555 T #s -5:555 ?!5555 T &5555P
Research Methodology
33