Faculty of Management Studies

University of Delhi
A Project Report on
Study of competitive landscape of MFD (Milk Food Drinks)
category and evolution of positioning of various brands

Submitted byManu Gupta (F-39)

Puneet Kochale(F-51)
Gaurav Parkash(F- 24 )

Contents
Executive Summary............................................................................................................................. 4
Background & Motivation ................................................................................................................... 5
Objectives ........................................................................................................................................... 5
Research Methodology: ....................................................................................................................... 6
Introduction ......................................................................................................................................... 7
Nutrition in India ............................................................................................................................. 7
Analysis of various brands ................................................................................................................... 9
Bournvita......................................................................................................................................... 9
History......................................................................................................................................... 9
Marketing strategies: .................................................................................................................. 11
Marketing Mix: .......................................................................................................................... 12
Horlicks: ........................................................................................................................................ 14
History:...................................................................................................................................... 14
Marketing Strategies .................................................................................................................. 15
Marketing mix: .......................................................................................................................... 17
Complan ........................................................................................................................................ 21
History....................................................................................................................................... 21
Marketing strategy ..................................................................................................................... 22
Marketing mix: .......................................................................................................................... 23
Boost: ............................................................................................................................................ 28
History:...................................................................................................................................... 28
Marketing Strategies: ................................................................................................................. 29
Marketing Mix: .......................................................................................................................... 30
Market Analysis of MFD Products:.................................................................................................... 33
Market Share ................................................................................................................................. 33
Product life cycle ........................................................................................................................... 33
Graphical Representation of Perception in the mind of consumers: ................................................. 34
Primary Market Research from Consumers: ....................................................................................... 35
Data Analysis and Interpretation and Findings: .............................................................................. 35
Retailer survey: .............................................................................................................................. 38
Page 2 of 43

Conclusion: ....................................................................................................................................... 39
Recommendation:.............................................................................................................................. 40
Appendix:.......................................................................................................................................... 41
Bibliography: .................................................................................................................................... 43

Page 3 of 43

Executive Summary

Milk Food Drinks (MFD) has re-emerged as one of the most emerging market in India. They
have positioned as a complete food product in themselves and Indian consumers perceives MFDs
as such. We as a group will analyze the main competitors in this category and how they are
faring in the current market and what are their future possibilities. In our final report, we have
listed down the way we are discussing and analyzing various products and their positioning and
its impact on consumers.
Our study was carried out on health drink consumption of people carried out mainly in Delhi
region. After data collection, it was analyzed with different charts and graph, which is very
important to find observation and findings. On the basis of this work, suggestions were made
which were very helpful for analyzing project report.
It was observed that Bournvita got major share among all health drink. The survey was
conducted to analyze the prospective customer awareness for various health drinks in market.
Questionnaire method was used along with interview to obtain the required information.
After the survey was completed the data was first sorted then analyzed and this analyzed data
was later converted in to form of graphs. This makes result to understand easily by everyone.
The objective of the study also included identifying the determinant purchase factors, the
customer segments and the sources of information they rely on. The existing positioning of
prominent brands and the perceptions among different segments were also covered under the
study. The brand loyalty and switching were also studied. The brand personality was also studied
as a part of the project.

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Background & Motivation

The milk shortage and availability of poor quality milk in the 60s fuelled the growth of Milk
Food Drinks in India the biggest market for MFDs were the mil deficient southern and eastern
parts of India after the success of operation flood In Gujrat (Operation Flood was a programme
launched in Gujarat and was aimed at increasing milk production). The brands selling milk food
drinks repositioned themselves as health drinks.
Indian health drinks market is still in its infancy due to the lack of awareness among the
population. In value terms, the health food drink market is around Rs 1, 400 crore and in volume
terms around 65,000 tonnes per annum.
There is a lot of scope for growth in the industry as:
1. Industry is still in its infant stage.
2. The industry depends on the population and India has a huge population which leaves a
huge chunk of untapped market.

Objectives

1. To study the competitive landscape of the milk food drinks industry in India.
2. To study the evolution of the various brands.
3. To analyze the positioning of various brands in the market.
4. To study the market analysis of all brands
5. To analyze the consumer perspective regarding MFDs

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Research Methodology:
The relevant data is collected from both secondary sources i.e. Internet and through primary
sources i.e. consumer and retailer survey. The data collected would help in analyzing the
competitive landscape of the milk food drink industry in India. It would further help in analyzing
the evolution and positioning of various brands in the market and what marketing strategies they
are following to hold their market share in such a competitive market. It would further help us in
recommending future strategies which can help brands to enhance their market growth
Also, our primary research helps us to find the perception and preferences in the mind of
consumers for MFDs. It helps us analyzing how consumers think of particular brand and its
competitors. Also, we performed a survey of 10 retailers which gave us an insight of distribution
channel of these brands and which brands demand is the highest among all competitors.

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Introduction
India, the worlds largest malt-based drinks market which 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.
White drinks account for almost two-thirds of the market. GSK Consumer Healthcare is the
market leader in the white malt beverages category with a 60.7% overall market share. Heinzs
Complan comes in second (in this segment, third overall) with a market share of 12-13%. Market
leader GSK also owns other brands such as Boost, Maltova and Viva.
Currently, brown drinks (which are cocoa-based) continue to grow at the expense of white drinks
like Horlicks and Complan. The share of brown drinks has increased from about 32% to 35%
over the last five years. Cadburys Bournvita is the leader in the brown drink segment with a
market share of around 15%. Other significant players are Nestls Milo and GCMMFs
Nutramul.

Nutrition in India

After 4 years of age, a child's energy needs per kilogram of bodyweight are decreasing but the
actual amount of energy (calories) required increases, as the child gets older. From 5 years to
adolescence, there is a period of slow but steady growth. Dietary intakes of some children may
be less than recommended for iron, calcium, vitamins A and D and vitamin C, although in most
cases as long as the energy and protein intakes are adequate and a variety of foods, including
fruit and vegetables, are eaten- deficiencies are unlikely.

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Children need to drink plenty of fluids, especially if it is hot or they are physically active. Water
is obviously a good source of liquid and supplies fluid without calories. Variety is important in
children's diets and other sources of fluid such as milk and milk drinks, fruit juices can also be
chosen to provide needed fluids.
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. 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.
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 nonbuyers and 31% buyers)

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Analysis of various brands

In the current market, Following MFD products are available and analysis of all of them is done:

Bournvita

Horlicks

Complan

Boost

Bournvita
Starting from 1948, when it first set its foot on the Indian Shores, Cadbury Bournvita had a
lustrous journey through the times, and emerged as a market leader in the
brown health drink segment with a market share of 15%, as per a recent
business standard survey.
History

Cadbury was incorporated in India on July 19th, 1948 as a private limited

company under the name of Cadbury-Fry (India). Cadbury Bournvita was
launched in the same year. It is among the oldest brands in the Malt Based
Food/Malt Food category with a rich heritage and has always been known for
its best nutritive values, combined with great taste to aid growth and all round
development and at the same time alluring to the palette.
In this context it may be meaningful to mention that throughout its history, it can be seen that
Cadbury Bournvita has continuously evolved itself in terms of product, packaging, promotion
and distribution. The Cadbury pedigree and rich brand legacy has helped the brand maintain its
headship position and image over the last 50 years.
The brand is a market leader in the Brown health drink segment with a market share of over 15%
according to Business Standard which is an indicator to the fact that Cadbury's - true to its
reputation has managed to sustain this brand over years. The brand has sustained because of
Cadbury's investment in the brand and also ensuring that the brand changed in with times.

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Positioning and repositioning through taglines:

In 1970s the brand was positioned as a product that helps in good upbringing. The brand used the
tagline: Goodness that Grows with You. During 1980's the brand changed its focus from
Upbringing to Intelligence. The tagline was changed to: Brought up Right, Bournvita Bright.
In 1990's the brand felt that it should be focusing on the overall health of the kid and thus
changed its focus on Body and Mind with the famous tagline: Tan Ki Shakti, Man Ki Shakti.
During 1998, the brand faced intense competition from Milo from Nestle. At this time, the brown
health food drink segment was facing issues of stagnation because of lack of value addition.
Bournvita then changed its positioning on the health platform. The brand used amarconym RDA
(Recommended Dietary Allowance) to reinforce the health positioning. The brand used a clever
Nutritional meter to communicate the RDA formula: 2 cups of Bournvita for balanced nutrition.
The brand also set up a Bournvita Nutritional Centre where nutrition experts recommended the
right RDA percentage to kids. The brand at that time used the cricketer Ajay Jadeja to endorse
the brand. The brand also harped on the taste and used the tagline "No Bournvita No Milk to
reinforce the taste attribute.
The brand over the years realized that every kid have a chance to excel in his chosen field of endeavor if
he have confidence. The brand now uses the tagline "Do you have Bournvita Confidence ". In the Brown
beverages segment, Bournvita faces intense competition from Boost. In order to defend the leadership
position, Bournvita has invested heavily in product development, advertising and sales promotion.
In the product development front, Bournvita had significantly changed its packaging and the latest pack is
inspired by Boost. Along with packaging changes, the brand also had come out with a new variant:
Bournvita Fivestar Magic. The new variant has the unique chocolate with caramel flavour of Cadbury's
Five star. The brand is using the brand association with Five Star as a key differentiator.

Events and activities

Bournvita Confidence Academy is not a School but a reality show. The show was premiered on
July 2007 in the Pogo channel, is different from the usual reality shows. The show features kids
who have exceptional talents in various fields like dancing, racing, singing, magic, studies etc. In

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the reality show, these kids act as Gurus and are expected to teach each other skills. So you have
a magic whiz kid learning to sing.
Marketing strategies:

Segmentation strategy
Cadbury has segmented the market for their flagship product Bournvita demographically. It has
segmented the market on the bases of age group; it is targeting children aged between 5 to 16 yrs. of age.
It is targeting one of the biggest consumer groups in India. Bournvita is a chocolate flavored health drink.
In this segment the children give too much importance to taste and their parents give importance to health
and Cadbury has addressed both the things very well.

Defining key audience

Most of the promos are targeted at children who compel their parents into purchasing the brand.
Brand loyalties are very strong as the key target audience; children are always looking for the
change. Bournvita is a chocolate flavored health drink. When the brand was introduced in the
market, it tried to solve a perennial problem that mother's face: a need for a healthy food which is
tasty. Bournvita offered that unique combination of health and taste. Thus it targeted the mothers
concern about her child's eating habits and used the 'Nutrition Meter' as an interesting device to
communicate the RDA formula - "2 Cups of Bournvita for Balanced Nutrition". To further target
the child section it has offered many freebies and gifts from time to time.

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Marketing Mix:

Product
Cadbury India Ltd launched Cadbury Bournvita, a chocolate health drink in 1948 in India. But
even before launching its new health product in the Indian market, Bournvita was one of the
most loved chocolate drinks around the world. Bournvita is a combination of 2 words, Brown &
Vita. Brown because it is brown in colour & Vita because it has lots of vitamins. It is a
nutritional drink which acts as a dietary supplement providing nourishment along with good taste
& flavors.
For todays kids who detest milk in its pure state unless flavored, this is an ideal drink. It has its
own unique flavour, and the taste is rich and full-bodied.
Ingredients: Malt extracts, sugar, cocoa powder, milk solids, liquid glucose, vitamins,
Bourn Vitas nutritional facts:
1) Gives protein.
2) Provides Vitamin A, Vitamin C & Vitamin B12.
3) Contains Calcium, Iron & Folic Acid.
4) It also provides our body with Niacin, pyridoxine, Riboflavin, & Thiamin which is very
essential for the proper working of our nervous system.
Price
Normally, price is the most important element in deciding the fate of any product. While
purchasing any health drinks however, a housewife or a mother who is the ultimate buyer gives
price secondary importance. She will carefully study the taste & nutritive values in the health
drinks. Bournvita being one of the most expensive health drinks in the market (Rs.101 for
500gms), but still due to its good taste & great nutritive values it has captured the majority of the
market.
Place
The distribution pattern followed by Cadburys Bournvita is more or less same as the traditional
channel of distribution. The company has a total consumer base of over 65mn. Besides use of IT
to improve distribution logistics, Cadbury is also attempting to improve distribution quality. To
address the issues of product stability, it has installed coolers at several outlets. This helps in
Page 12 of 43

maintaining consumption in summer, when sales usually dip due to the fact that the heat affects
product quality and thereby off take.

Promotion
Bournvita always comes up with consumer promotion activities from time to time e.g. giving
free gifts like plastic mugs, chess game or ludo etc. They also come up with the scheme of extra
Bournvita for the same price. The ads had very cleverly promoted this drink for intelligent school
kids through organizing the famous Bournvita Quiz Contest between different schools.

This was a fantastic gimmick on television, which had caught on so well, that even adults would
spare some time to watch it without fail. The Quiz Master Derek OBrian was loved by all, the
young and the old alike. This Advertising concept was so successful, that they even came out
with the Bournvita General Knowledge Book (a mini encyclopedia). Cartoon Network and
Cadbury India has announced a one-year promotional license agreement.
Bournvita positions itself as a healthy and nutritious drink for kids. The first promotion is the
Toon Mug offer. A 500 gram Bournvita pack comes with a mug featuring some of the best loved
Cartoon Network characters. Toon buffs get a choice of over six toon mugs including The Power
puff Girls, The Flintstones, Scooby-Doo, Johnny Bravo, Dexter and Tom & Jerry. The Bournvita
promotion is being supported by television commercials and in-store advertising.

Packaging
They use glass jars for packaging which do not allow moisture to get in the product and also
increases its shelf life. They have also introduced the refill packs so there was no problem of
buying Jars every now & then. They have also worked upon the colour which is now Red &
Purple against the old one Brown & Yellow because kids love bright colours.

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Horlicks:
In India, over 2 billion cups of horlicks are drunk every
year. Horlicks is the only drink clinically proven in
India to make kids stronger, taller and sharper. The
Horlicks available has been scientifically developed and
specifically caters to the nutritional needs of the Indian
diet. Horlicks alone enjoys 50% of the health food
drinks market. Horlicks has been popular brand in India
since 1930. Re-launched in 2003 included a new look
for the brand targeting to its core customers, children up to 14 years of age. New products have
been developed specifically for India, catering different segments of Indian market. Successive
generations of Indians over the past half century have consumed it, stirred in a glass of hot milk
or water, and become totally confirmed believers of horlicks virtue of good health and nutrition.
This is only to be expected for a brand that consumers have been using since 1930. Today,
Horlicks is one of the best known brands in the health food categories. It owes its success to its
brand heritage, commitment to quality, focused communication, a strong distribution network
and a deep understanding of customers needs.
History:

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

Page 14 of 43

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 re-launched on the immunity platform.
Horlicks has a significant presence in over fifteen countries. Today Horlicks is the best known
brand in the health foods category in India. The brand enjoys the trust of generations of Indian
mothers and this relationship has been nurtured by the brand by fortifying the product from time
to time. In 1998, Horlicks was fortified with Smart Nutrients a unique combination of vitamins
and minerals intended to imbibe growing children with mental agility and physical fitness.
Junior Horlicks was re-launched 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 shrink-wrap bottles. In a way,
theres a Horlicks pack for every occasion and mood.
Marketing Strategies:

Glaxo Smithkline Beecham, the makers of Horlicks, complicated matters by launching a brown
variant of their white powder Chocolate Horlicks which could be consumed
unlike Bournvita, with water alone. They extended the Horlicks brand name along many
dimensions into several sub brands (Junior Horlicks, Mother Horlicks, and Horlicks with Smart
Nutrients). Though not very explicitly horlicks tries to address the younger population i.e. kids
under the age of 15 as it has been found that maximum consumption of HFD is by this
generation. The market is still segmented based on product capabilities and usage method (brown
and

white

powders)

through

there

are

signs

Page 15 of 43

that

this

is

beginning

to

change. Thus the segmentation is largely on the basis of age,

the

advertisement

and

sales

promotion also focuses on kids by way of cartoons featuring in the advertisements and
also cartoons serial sponsorships. From a drink that was supposed to promote a good nights
sleep to that one can grow taller, stronger and sharper, Horlicks has come a long way.
Re-launch of Horlicks:
GlaxoSmithKline (GSK) has re launched its Rs 800-crore Horlicks brand in three new variants
vanilla, honey and chocolate in addition to its regular malt. The re-launch is done for the very
specific purpose of changing focus from nutrient value to the flavours of the product. This is
done to change Horlicks from a boring nourishment drink to attractive health drink. There launch
includes a change in appearance with the change in packaging style. The positioning has also
been changed from mothers to children in the new marketing strategy. In a re-launch campaign
New TV advertisement has been created. While the first phase of the campaign would talk about
the re-launch of Horlicks, the second phase will talk about the new features of the product.
Brand Extensions:
GSK has introduced various brand extensions in the last few years and
notable among these are Mother Horlicks, 'Womens Horlicks' and 'Junior
Horlicks'. The former caters to the nutritional needs of pregnant and
lactating mothers while the latter is targeted at the growing child in the age
group of 1-3 years. Both the brand extensions have been very well accepted
in the market and have shown good growth rates since 2001. GSK has
already re-launched 'Horlicks' and 'Boost' to maintain the top of mind recall
for its products. Further the new products to be launched by the company will strengthen the
presence of the company in the MFD markets.

Page 16 of 43

Marketing mix:

Product:

Horlicks is made from milk, wheat and malted

barley. GSK has re-launched junior horlicks. It was
realized that Horlicks was considered as a boring
nourishment drink and was beginning to lose its
significance.

The

company

research

showed

that preference for flavours reigned higher than nutrients, and hence, the decision to make the
drink tastier and enjoyable was taken. The re-launched product contains a 'combination of
nutrients that act as resistance builders' and helps 'build up the immune system of the child'. The
new formulation brings about a significant improvement in this much liked health drink by
incorporating

vital

micronutrients

that

are

known

to

have

proven

co-

relation with mental sharpness and physical activeness. These are Iron, Vitamin B2, Vitamin B6,
Vitamin B12, Folate and Vitamin C. The company has re-launched Horlicks in three new
variants like vanilla, honey and chocolate apart from the regular malt.
The re-launch also includes a new look for the brand not only in terms of packaging but also
new positioning which addresses children instead of mothers. Junior Horlicks is now positioned
for children in the one to three age-groups. The brand variants targeted different consumer
segments such as Junior Horlicks for infants, Mothers Horlicks for expecting mothers, Horlicks.
Three-in-one and Horlicks Smart Nutrients positioned on health platform and targeted at
children.
The new avatar of Horlicks has the highest shelf appeal and maximum visibility. The new
Horlicks formulation is accompanied by contemporary packaging in hues of bright blue and
orange. It has also gone in for a packaging change with more convenient-to-handle jars. The new
jars are more convenient to handle and dispense from.

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Price:
The

GSK

has

chosen

the

price

for

horlicks

keeping

in

mind

the

value addition done to the product by the company along with the consumer comfort ability.
Horlicks is available in three SKUs:

500 gm jar (Rs 114),

500 gm GP (Rs 105)

200 gm jar (Rs 58)

The company has not gone for reducing price as they believe that Price alienation could translate
into alienation with the product proposition itself. Diehard Horlicks consumers who may have
moved out of the brand and learnt to live without it may not find a credible reason to go back if
such a step is being taken.

Place:
The place where customers buy a product, and the means of distributing your product to that
place, must be appropriateand convenient for the customer. The product must beavailable in the
right place, at the right time and in the right quantity, while keeping storage, inventory and
distribution costs to an acceptable level. Customer surveys have shown that delivery
performance is one of the most important criteria when choosing a supplier. This could be in a
shop window, but it could also be via the internet.
Distribution Channels:
Following is the distribution channel followed by GSK for Horlicks:

Factory

Distribution Channels

Wholesalers

Retailers

The first link in the channel is the factory situated at Sonepat, which has been designed to
produce Horlicks formulations. The Sonepat plant is of 26,000 tonnes per annum. GSK has total
workforce of over 3,000 people at its manufacturing plants located in Nabha and
Rajahmundry. Its packing facilities are located at Hyderabad and Ballabgarh. GSK has
Page 18 of 43

four regional Sales Offices in the four metros which coordinate the sales,
distribution and collection activities in their respective regions. The company now has 34 sales
depots (one in each State), as against 28 in 1998.The product is supplied to wholesalers from
over

there.

It

has

strong

marketing network in India comprising over 1,800 wholesalers anddirect coverage of over 4,25,0
00 retail outlets. Its wholesaler network has grown from 1,317 in 1998 to 1,800 at present. These
wholesalers further supply to 425,000 retail outlets across the country. SBCH has increased its
reach over the years, which has helped it gain incremental market share.

Promotion
Promotions of Horlicks are done by GSK through both direct and indirect means. These involve:
Running

seminars

about

health

concerns

and

health

supplements:

GSK organized a seminar for doctors in Chennai stressing on the importance of nutrition during
illness and convalescence. GSK is also planning to take up major initiative to increase awareness
of its brands among school kids. Sponsored by Horlicks, the flagship brand of GlaxoSmithKline,
the fest is being held in the cities such as Bangalore, Mumbai, Delhi, Kolkata, Chennai,
Hyderabad, Cochin, Pune and Jamshedpur.

Advertising:

The advertising account is being handled by creative

agency

HTA.

The

company has also launched a television ad campaign cre

ated by JWT featuring kids, which would be aired
across channels. The TV campaign would also be
accompanied by print ads and hoardings. Mothers
always hope to see their children grow up strong and
healthy. This age-old fact is the backbone of Horlicks
communication strategy. It lays the foundation for a
childs future, hence its tagline: Horlicks, nourishment for life. In late90s its ads reverberated
Page 19 of 43

through the television sets of every Indian household and they just couldnt get it out of their
heads.

Its

campaign

was

well

received by Indian mothers. Also there campaigns are still lodged in consumers memory.
Promotions to Customers:
Besides relying on conventional bottles, the Horlick s brand is also being aggressively
pushed in the market through a mix of refill-packs and bundled gifts (like katoris).Promotions
include special discounted bundled packs and Periodic price discounts of between 5% and 10%
off the recommended retail price are also being provided by the company from time to time.
Promotion to Retailers:
Recentlytheyhave asked retailers to display three bottles of Horlicks arranged in a
triangular form for 45 days with a poster advertising Horlicks in the background. The rationale
behind this is that bottles arranged in this fashion attract consumers attention. Moreover after 45
days the GSK people will conduct a lucky draw of the retailers who participated in this scheme
and offer them attractive prices.

Page 20 of 43

Complan
History

When British soldiers landed on the beaches of

Normandy during World War II, they were carrying more
than just ammunition for firepower. They carried with
them a powdered nutritional supplement called Complan
which had been introduced by Glaxo. Glaxo 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. In 1994, Heinz bought out
Complan from Glaxo. Given Heinzs commitment to quality and leadership, Complan has
evolved into Indias premium health beverage for growing children. It has now come to stand for
the Gold Standard of Nutrition (Source: Pathfinders Track -Kolkata). The brands positioning as
the Drink for growing children coupled with its superior nutritional formulation are its greatest
strengths today.
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 (Source: IMRB Household Panel, MAT August 2003). Apart
from India, Complan is also available in the UK, Australia, Venezuela, Nepal and Sri Lanka.
Flavoured varieties were first introduced in the 1970s
By 1985, nutritional thinking had advanced and Complan was again reformulated to reflect this.
The quantity and type of fat content was revised in line with a Department of Health report on
diet and cardiovascular disease.

Page 21 of 43

Complan(balanced nutrition for the family), Casilan (higher protein for sports performance and
illness recovery) and Complan Shake (to tackle clinical malnutrition).
In 2002 a majority stake in the UK business (Complan Foods) was sold to the Saatchi brothers'
Saatchinvest.
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.

Marketing strategy
Complan was first launched by Glaxo, UK, during
World War II. It was part of the ration forth soldiers.
Since then, the brand has travelled a long way. Glaxo
launched Complan for the mass market. It had to find
an appropriate positioning. Glaxo positioned it as
supplementary nutrition, for adults in convalescence.
Doctors recommended it. The brand got the image of
sick mans source of nutrition. This positioning did
not bring much success.
Repositioning
Glaxo reviewed the positioning and studied the health drinks market. Though Complan was
superior in many respects to other brands, it suffered the image of a sick mans drink. Glaxo
found the health drink market growing, but Complan was not growing. It also found the
growing child as the big market segment for health drinks. Complan took a new positioning A
Complete Planned Food for Children, as a health builder. The differentiation theme was that it
was superior to milk, natures best nutrition for children. It carried 23 nutrients, which milk did
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not carry. It carried milk protein as well. This positioning too did not bring the desired success.
Two problems came up:
1. The taste was not agreeable to children
2. The new positioning was against Horlicks, while the old one was against milk. Horlicks
was doing well as the preferred health drink. Here a new problem emerged: Price of
Complan was double that of Horlicks and buyers shied away. It came to be sparingly
used anyway. The search for the right positioning continued.
Glaxo gave up the comparative positioning. It tried to match the product claim and the customer
need. Target user and usage occasion became major considerations in the new positioning. New
user segments and new uses for the product were identified. The new positioning: Fulfilling the
nourishment needs of different segments of people who faced different kinds of problems on the
diet front. The only health drink that is complete and suits varied occasions and users. Only
Complan, with 23 nutrients, is complete for the body. The ad campaigns clearly showed the new
positioning Complan was for:
The child, the problem eater.
The young executive, too busy to eat.
The grandpa, too ill to eat.
And the young housewife, of course in good health, but needed extra nourishment for all the
strain she takes and to guard against hidden diet deficiencies.
In other words, in the family everybody had some use for Complan.
The new positioning was as a distinct product in its own right. Flavours like cardamom and
strawberry were added; new packaging also came. Complan finally found a good orbit.

Marketing mix:

Product:

Core Benefit
Complan has always sold itself on the concept of Health and a Complete Health food or a
healthy and problem free life.
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Basic Product
Complan has been long offered in a glass jar, with minor variations in shape. As far as packaging
the physical product is concerned, Complan has been a laggard in innovating, its strategy
involving more of reaction to its competitors strategy.

Augmented Product.
In Complan this would refer to the brand being considered an alternative to milk as far as
nutrition is concerned.

Product variety
We have Complan coming in different flavors, catering to the different taste buds of its
consumers, in different size packaging in order to cater to the differing budgets of its customer,
in different forms of packaging in order to cater to the different convenience needs of the
consumers. Complan is available in various flavours like Complan Natural, Complan Chocolate,

Complan Mango, and Complan Yummy Caramel. Complan has also launched Complan Family,
a variant aiming at all members of the family.
Product features
Complan proclaims itself as Complan for growth and has the taglines: a Complete Planned
Food and Ideal for Growing children. These claims are then backed up by a paragraph on the
package explaining that Complan has 23 vital ingredients or 23 vital nutrients in planned
proportion which are vital for the growing years of Children. It goes to explain that Complan has
protein content that is 100% milk protein which is one of the best proteins for growth. Each
package also lists out the 23 ingredients in a tabular form along with the nutritional value of each
ingredient along with an explanation listing out the benefits of each.

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Price

Complan is available in different flavours in

different package sizes with different price points.
We are putting forward some of the most popular
Complan flavours and their packing sizes and the
price points at which they are sold.
Flavour

Package price

Natural

200g

83

500gm

173

Kesar Badam

400g

218

Pista Badam

400gm

198

Chocolate

200gm

99

500gm

Rs. 218

Family delite

500gm

163

Strawbery

500gm

195.00

Mango

500gm

198

Caramel

500gm

198

Memory

400gm

203

Place:

The place where customers buy a product, and the means of distributing your product to that
place, must be appropriateand convenient for the customer. The product must beavailable in the
right place, at the right time and in the right quantity, while keeping storage, inventory and
distribution costs to an acceptable level. Customer surveys have shown that delivery
performanceis one of the most important criteria when choosing a supplier. This could be in a
shop window, but it could also be via the internet.
Distribution Channels:
Following is the distribution channel followed by Complan:

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Factory

Distribution Channels

Wholesalers

Retailers

Promotion

Complan follows the unified objective option for its ad

campaigns. Complan targets the Health Drinks market
specifically; also the target audience of Complan are also
traditionally fixed, being children in the age group of 5-15
yrs.

Objective of Advertisements
Taking good care of yourself means making sure you get all the nourishment you need? Even if
you have a small appetite, are out of sorts, or simply cant? Find the time to eat. Thats what
Complan is all about it can provide all the nourishment of a complete meal in a delicious, easyto-prepare, and hot or cold drink or healthy cereal you can enjoy anytime. We all remember the
advertisement many years ago on TV where a Complan boy takes his mother around his bicycle
after drinking Complan. Slight change in strategy: In the initial years Complan, like most other
health drinks was completely aimed at school going children but it was the first amongst its
competitors who shifted to grabbing a burgeoning market of youngsters, the first shift in this
strategy of Complan was noticeable in the ad where a 17-18 yrs old boy comes home late and has
a tacit fight with his parents, after which he sits down to study and has a mug of Complan, the ad
again cashes on the parents-child sentiments but more laconically.
Innovations in Advertisements
Linguistically Suitable Ads: Complan has come up with linguistically differentiated
advertisements like one Bangla Advertisement has a tag line: epaN opaN jhOpaN. This
organization of advertisement is anchored by the picture of growing kids turning the Complancup this side, that side and then drinking it at once eagerly. The terms epaN,opaN actually
are meaningless forms in the standard ColloquialBangla (SCB). They are coined in order to have
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a rhyming effect with jhOpaN an expressive in SCB expressing an imitative sound of falling
some heavy liquid/ something heavy on liquid. The effect of sound symbolism is manifested in
the use of velar nasal sound in the word final position indicating some abruptness of actionthus making the advertisement funny and interesting for the kids. Usage of Medical certification;
this was consistent on Complans initial strategy of positioning itself as a health drink prescribed
by medical practitioner. Complan had an ad in which a doctor is speaking about the benefits of
Complan and tells us about the ingredients in details.
The Advertisement War
Complan has always been on the receiving front on these parameters. Complan pursues a very
aggressive market strategy, and a lot of times puts its biggest competitors name (Horlicks) in bad
light. It has also got into a lot of legal battles and mud-slinging because of the same. The recent
aggressive campaign of Horlicks features the new positioning Now Proven-Taller, Stronger
Sharper" aims directly at Complan- which is now focusing on non-drinkers. In 2005 the Calcutta
High Court today directed Heinz India Pvt. Ltd. to telecast the advertisement of Complan, after
deleting the Cup marked `H', in the advertisement. The advertisement shows two cups, the bigger
one showing a `C', and the smaller showing `H'.
How Complan Reaches Its Target Markets?
After much ado we get back to the basic question as to what are the means by which Complan
reaches to its target market:
1. TV Advertisements
2. News Papers, Print Media.
3. Retail Outlets-Layout
4. Schools

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Boost:

Boost is India's leading malt-based Health Food Drink in a chocolate flavour. It was developed
by the company's R&D team in 1974 and launched in 1975-76. Its success characterizes the
manner and skill with which GlaxoSmithKline Consumer Healthcare has responded to the
changing contours of this product segment in recent times. Boost has a market share of 13%
countrywide amongst all Health Food Drinks (HFD), while in South India - the biggest region
for the category - it commands a market share of 24%.
History:

Boost was developed by the companys

Indian R&D team in 1974 and launched in
Kerala in 1975/76. Positioned as the
'energy fuel', the brand soon generated
great consumer pull and was subsequently
launched at a national level.
Around 1984, however, Boost sales seemed to plateau. This led to a complete re-think about the
brand strategy. A deeper understanding of purchase dynamics of the category revealed that by
the latter half of the 1980s, children had come to become strong influencers in a family's
purchase of these HFD products. What was also observed was that this section of the population
had the highest requirement for supplementary energy and was also the most enthusiastic about
sports - cricket, in particular.
i.

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GlaxoSmithKline plc. is recognized as one of the leading health and pharmaceutical companies
in the world. Its powerful combination of skills and resources has enabled it to offer frontline
health products to the consumer. These traits are amply evident in the Boost brand. But brands
are not built by formulation alone. They require strategic thinking and a strong positioning
platform. 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.
Marketing Strategies:

Boost is a part of Indian Health Food Drinks (HFD). HFD is targeted at children aged 5 -18. The
market is huge since this is the age group that demands some kind of energy drink. The kids are
active and playing during this age and the pressure is on the home maker to keep the energy level
of the kids high using some drinks.
Boost was innovative not only in the promotion front but also in product improvements. In
2002, as a part of its repositioning, the brand came out with Power Boosters: which contains
Copper and Biotin. It was first of its kind in this segment. Boost also innovated in
packaging. Over these years, the packaging became contemporary and stylish to reflect the
changing consumer preferences. This was good enough to attract children. With competitors like
Bourn vita, complain, Horlicks, this brand had to attract the children and provide them with a
better, healthy, tasty, and nutritional energy drink.
Boost is the first HFD to have used celebrity endorsement to convey its energy proposition and
has thereby successfully differentiated itself from other brands. It has been successfully endorsed
by India's most famous cricket stars, particularly those with a humungous following among
children. Kapil Dev, the most charismatic cricketer of his time flagged this off in the1980s. The
baton passed to Sachin Tendulkar in the 1990s.Sachin has remained steadfast in his support for

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Boost with the explosive Virender Sehwag joining the Little Master as brand ambassador in
2001.

Marketing Mix:

Product:
Boost is a malt-based drink in chocolate flavour, with the brand philosophy being to
continuously innovate and pioneer changes in the category. In 2002, the brand created history by
re-launching Boost with 'Power Boosters', a completely different product from any other HFD.
The New Boost contains copper and biotin, in addition to its extant composition of vitamins and
minerals. Two serves of New Boost (approximately 30 gms) as per the CODEX Alimentarius
Commission of the World Health Organisation, 1995, provide 50% of the daily requirement of
Vitamin B1, B2, B6, B12, A, C, D, Niacin, Pantothenic acid, Biotin, Folic acid, Copper and Iron
and 25% of Calcium. The vitamins and minerals not only provide adequate energy for the
consumer they also help in the efficient working of body cells (by releasing energy from food),
formulation of healthy blood and make bones stronger. This re-launch has helped Boost capture
the position of number one brown HFD in India.
Price:
Boost is charging more if you are purchasing 200gm and comparatively lesser when you
are purchasing 500gm. The tendency behind this type of pricing is when you purchase in bulk
you get at lesser price.

Boost

Price(Rs)

Weight(gm)

Jars

Refill pack

200

54

500

108

99

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Consumer behaviour
Energy drinks or milk drinks are perceived as a luxury. This explains the slow off-take. While
white beverages are hailed for their therapeutic offerings, consumers look at browns as mere
taste additives. Brand loyalties are not very strong as the key target, children, are always looking
for new products. Hence our company takes a good care that our each and every promotion
strategy is pertaining to our target customer which is the children between the ages of (7-14).

Place:
South has been the major contributor in making boost one of the biggest brown powder brands in
India. Today the South zone contributes as much as 80% of the Boost sales and is a household
name. In markets like Chennai Boost has approximately 40 45% household penetration.
The advertising line Boost is the secret of my energy has become an ever-present line in every
household today. Southern markets had contributed significantly towards the success of
the brand. Boost has grown from a market share of seven per cent in 1985 to 24 per cent in 2002.
Distribution Network of Boost
Manufacturer
Depots
Wholesalers
Retailers
Consumers

Promotion:

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Promotion campaigns such as freebies and contests also

play an important role in influencing brand choice. These
campaigns are mainly targeted at children who force their
parents to buy these products. Free gifts like crystal jars, pet
jars and sippers also attract consumers.
After the initial growth, the brand landed in the mature
stage of PLC during 1980's with sales plateauing. The
brand repositioned itself through a careful planned strategy
backed by consumer insight. The brand realised that kids are strong influencers of the purchase
process for such products and once kids get hooked onto such drinks, brand loyalty can be
assured. GSK also identified cricket as the vehicle to boost the Sale of Boost. During 1980's
Kapil dev was roped in as the brand ambassador for Boost and as a cricketer, Kapil was
considered an Icon by many. Boost got the energy from Kapil and GSK had found the success
mantra. During 1990's Kapil gave the baton to Sachin. Sachin endorsed this brand when he was
in his teens. During those times, the ads showed both Kapil and Sachin together endorsing the
brand and thus ensured that the transition is smooth. From 1990-present, Sachin has been
endorsing this brand. I think Boost and Sachin hold the record for longest association between a
brand and celebrity at least in India. (The kid who starred with Kapil for the ad was Nikhil
Chopra who later played for India0in 2000, the brand also roped in Sehwag to endorse the brand.
At that time, Sehwag and Sachin was at fire as the opening pair. Boost was innovative not only
in the promotion front but also in product improvements. in2002, as a part of its repositioning,
the brand came out with Power Boosters: which contains Copper and Biotin. It was first of its
kind in this segment. Boost also innovated in packaging. Over these years, the packaging became
contemporary and stylish to reflect the changing consumer preferences. A brand will become
successful only if the owner invests in the brand for the long term. Boost is a testimony of that.
Over these years, the brand has been positioned and repositioned in tune with the consumer.
During the late nineties, consumer insights showed that although the kids liked the promos
involving Sachin, they felt somewhat distant from the brand (because Sachin was perceived to be
extraordinary). Realising this the brand changed its tagline to Boost is the secret of my energy'
to Boost is the secret of our energy". The ads increasingly gave importance to kids rather than
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the celebrity. In 2005, the brand came with Choco Blast (more chocolate) and Advanced Energy
Boosters to counter the threat from Bournvita who now has the Chocolate taste of "Five Star" in
it. Boost is a super brand with lots of lessons for a marketer to learn. The brand continues to
invest in it and has remained the favourite of marketers and kids.
Market Analysis of MFD Products:
Analysis of various MFD products based on various parameters and their graphical
representations are given below:
Market Share
The below graphs shows the market distribution of MFD various brands:

Product life cycle

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Graphical Representation of Perception in the mind of consumers:

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Primary Market Research from Consumers:

This research is done through a survey which we have taken in and around Delhi region. We
have targeted mainly students. The complete findings and analysis of the survey is done below.
Data Analysis and Interpretation and Findings:

The data was collected in the form of questionnaire. We have collected data from 50 people and registered
their responses. This data helps us to understand the consumer behaviour for MFDs. The findings are as
follows:
Do you consume MFD - Milk Food Drinks (Bournvita, Horlicks, Complan, Boost etc.)?

Yes

43

86%

No

14%

Almost, 86% of the consumers consume MFD.

How often do you drink MFD (Milk Food Drinks)?

Twice in a day

12%

Once in a day

16

32%

Once in 2 days

10%

Once in 3 days

14%

Weekly

14%

Other

18%

MFDs are consumed by different consumers in different frequency butt a lot more people prefer at least to
have it once a day.
Why do you add an Milk Food Drink(MFD) to your milk?

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Nutritional Value

18

36%

18%

17

34%

Brand loyalty

0%

Other

12%

Energy factor
Gives taste to plain milk

As can be understood from the chart, most of the people either drink MFD for nutrients or to add taste to milk.
Which brand of MFD do you drink regularly?

Bournvita

23

46%

Horlicks

14

28%

Complan

10%

Boost

6%

Other

10%

Bournvita is the most preferred brand in the minds of consumers followed by Horlicks.
In a particular brand, which flavor do you prefer?

Plain basic flavour

12%

Vanilla

8%

29

58%

Honey

10%

Strawberry

0%

Other

12%

Chocolate

Almost 60% of the consumers prefer Chocolate favour in any kind of MFD.
How do you decide on which MFD brand to use?

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Media Ads - TV, Newspapers, Websites

18%

11

22%

10%

Brand loyal. Consume the brand which I have been having since childhood

14

28%

Other

11

22%

Recommendation from friends/family

No particular choice. I decide at the shop

A mix of opinions from consumers regarding their choice on purchasing of MFD.

What is your occupation?

Professional
Self Employed
Student

12

24%

2%

37

74%

A major portion of our survey was focused on students as they are the prime target for MFD market.
Gender

Male

40

80%

Female

10

20%

The survey was filled by a mix of both the genders. Although, 4/5th of the sample was male category.
Age Group?

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<17

2%

17-25

36

72%

26-35

10%

>35

4%

Majority of consumers are teenagers.

Retailer survey:
The survey was conducted in and around Delhi university and 10 retailers were contacted.
Kirana wallas, organized retail outlets, medical shops, outlet of chain of medical stores were
contacted. Some of the findings of the survey are as follows:
1.

According to the retailers Bournvita is the most preferred brand.

2.

Chocolate flavour is the preferred choice of the consumers of the region.

3.

500g refill pack is every popular amongst consumers.

4.

Usually parents come go to buy the product.

5.

All the brands pay similar margins to the retailers.

6.

The distribution channel of all the brands in the region is efficient and ensures timely

delivery of he product to the retailers.

7.

The consumers generally come with a preferred choice to buy a particular brand and do not

consult the retailers.

8.

The product is usually purchased by retailers on cash basis some of them also pointed out

that some distributors also offer credit sales.

9.

A kirana wala usually sells 20-30, 500g packets per month.

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Conclusion:
As the customer is considered to be the king of the market, this fact is very much true for the
liquid food drink industries. It is very important on the part of the organization to learn customer
behavior in order to increase their sale and create a good brand image in the minds of the
customer.
In the survey, we have targeted different occupation group from students to professionals to self
employed people. The analysis is done taking into consideration all the different age groups of
both genders.
From the survey carried out and after data analyses of the information obtain it can be concluded
that people are aware of different brands of health drink. Most of the customers prefer to use 1
glass a day as it is convenient in both way in terms of quantity and notorious. Brand name is
consider as an important factor while purchasing a health drink and in which Bournvita of health
drink is most preferred brand name among the customer. It is also concluded that Television has
played a vital role in spreading awareness of various health drink brands. Many people also
consider the quality and hygiene maintain by the company. It is also found that price plays an
important role in any product but service also plays equal importance in success of any product.
All the information gathered during this survey and after analyzing it properly one come to only
one conclusion that liquid food drink industries has a great scope in future.
Since herein through our research we have found that the brands having a brand ambassador
possess greater recall, hence Bournvita can go in for a brand ambassador. MFDs Should also
concentrate on the section of the audience whose buying decision is influenced by the freebies
provided along with a product, if that becomes the norm of the day due to its competitors. MFDs
should focus more on reinforcing advertisements stating nutritional facts supported by
researchers and doctors as it is seen that the consumer preference tends to look out for these
aspects whilst forming perceptions about the nutritional value of the offering.

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Recommendation:
We would recommend that the companies should strength its distribution channel especially at
cafeteria and local retailer, which is the biggest market for health drink.
The companies can advertise the product on T.V. especially during breaks in daily soaps and
cartoons and other kids related shows as it has been observed in the survey that mothers
generally buy the product an kids are the primary target consumers of the product. The
companies should make use of more advertising media like T.V., Display at various outlets,
Hoardings etc. that are very useful to increase the awareness regarding the product.
They can organize campaigns in schools to attract kids. It has been observed that similar margins
are offered by all the brands and hence the companies can offer greater margins to increase the
market share in short term.
The companies should come with schemes like specifying a particular place where the product
should be kept on the shelf in organized retail outlets and providing shelf to the kirana walas
which would advertise logos of the brand.
It has been observed that the 500g pack is very popular amongst the consumers and also the 85g
pack is catching pace fast. This shows that the companies can concentrate on innovative
packaging to attract consumers. Also since the target market is kids so changing packaging
frequently can attract the consumers.
Also, they should invest more in R&D in order to come up with a product which has more
nutritional values. The companies should come up with new types of schemes which would
attract more number of people toward their product.
The feedback of the retailer should be collected regularly so that the companies can come to
know that were they are standing and design some attractive scheme for retailer, which can
differentiate from competitors and interesting for retailer.

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Appendix:
The following survey is conducted for analyzing the consumer analysis on MFDs.

Page 41 of 43

Page 42 of 43

Bibliography:

http://www.cadburyindia.com/in/en/brands/beverages/pages/bournvita.aspx

http://www.gsk-ch.in/products.aspx

http://www.horlicks.com/html/index.html

http://www.boost.com/

http://www.complan.com/

http://www.heinz.co.in/about-brand/complan-child-growth.aspx

http://www.heinz.co.in/about-brand/complan-child-growth.aspx

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