Health Drink Project

SEGMENTATION TARGETING &POSITIONING

CERTIFICATEThis is to certify that TEAM A students of Maharshi Dayanand University,Rohtak,has prepared academic report entitled CRITICAL ANALYSIS OF MARKET SEGMENTATION,TARGETTING & POSITIONING OF HEALTH DRINKS IN INDIA. Under my guidance.Hehasfulfilledallrequirementleadingtoawardofthedegree ofMBA(industryintegrated)thisreportistherecordofbonafideresearch undertaken by him and no partofithas been submitted to any other Universityoreducationinstitutionforawardofanyotherdegree. Iwishherallsuccessinlife.

Faculty GuidePROF.AJAY PATOLE

1


DECLARATIONWe TEAM A hereby declare that, with exception of the suggestion and guidance from guide, Prof,Ajay Patol this project work titledCRITICAL ANALYSIS OF MARKET SEGMENTATION,TARGETTING & POSITIONING OF HEALTH DRINKSININDIAThis

my own work.

This dissertation as one, which is substantially the same as this has not been by me for any other examination of this university or any other University.

Place :-Nagpur Date :- __________MR.RAHUL HEDAOO MR.PAVAN.L.HOLE MS VARSHAWAHANE MS MONALI DAHARWAL2


ACKNOWLEGEMENT Completing a task is never a one-man effort. It is often the result of valuable contribution of individuals in direct and indirect manner that helps in achieving an objective. It is the indeed a great pleasure and moment of immense satisfaction for me to express my profound gratitude towards my guide Prof. AJAY PATOLE ofGURUGRAM BUSINESS SCHOOL, PARDI NAKA, NAGPUR

, I take pride to thank him for his able guidance and time to time attention that was bestowed on me right for the inception to the successful completion of the project Also, my heartful thanks to all respondents and friend who directly and indirectly helped me completing this project report. I am also thankful to all such people, the name of whom haven't appeared hear but without their help this project wouldn't have been completed

MR PAVAN HOLE MR.RAHUL HEDAOO MS VARSHA WAHANE MS. MONALI DAHARWAL

3


INDEXCHPTER NO. 1 CONTENTS INTRODUCTION13

PAGE NO6-12

2

IMPORTANCE AND OBJECTIVES14

3

RESEARCH METHODOLOGY15-17

4

DATA ANALYSIS AND INTERPRETATION18

5 6

FINDINGS AND CONCLUSION

BIBLIOGRAHY

4


LIST OF TABLES ,GRAPHS AND DIAGRAMS

TABLE NO.1 2 3 4

TABLESMAJOR PRODUCTS HAVING GREATEST INTEREST IN INDIAN PRODUCT TARGET MARKET FOR VARIOUS BRANDS SEGMENTING BASIS FOR HEALTH DRINKS POSITIONING BASIS

PAGE NO15 16 17 17-18

5


CHAPTER NO 1

INTRODUCTIONINDIAN HEALTH DRINK MARKET 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. GlaxoSmithkline (GSK) with four brands - Horlicks, Boost, Viva and Maltova - is the leader in Indian health drink market. Complan, GluconD from Heinz India and Cadbury India's Bournvita are also popular among the Indian health drink brands. According to retail audit unit ORG Marg, GSK with four brands in the category Horlicks, Boost, Viva and Maltova - has a 70 per cent volume market share and Complan's share is 13 per cent. No doubt, Horlicks is the leading health drink brands in India since 1930, immediately after its launch in the country. Horlicks is sold in a number of countries across the world. In different countries, the product has different formulations in order to cater to varying consumer segments and serve different consumer needs. In India, the Horlicks available has been scientifically developed and specifically caters to the nutritional needs of the Indian diet. It helps meet the requirements of essential nutrients in children, such as iron and vitamins that aid iron absorption. Boost is health food drink (HFD), which is positioned on the energy platform in India. Developed by the Indian R&D team in 1974, and launched in 1975-76 in Kerala, Boost has been one of the fastest growing brands in the Indian GSK Consumer portfolio. Realising that the energy segment had a huge potential, GSK India launched the brand as the 'Vitaminised Energy Fuel' with a unique chocomalt taste. The brand was launched nationally in the early 80s and has always been targetted at 8-14 year old boys. This is the section of population most enthusiastic about sports, and also with high-energy needs, in India. A ccording to GSK sources, Viva is based on the belief that a good start to the day ensures that rest of it goes well too. New Viva is Vitahelth, combination of nine essential vitamins (vitamin A, C, D, B1, B2, B6, B12, Niacin and Folic acid), Iron, Phosphorus and Calcium. Viva contains a natural goodness of milk, wheat and malted barley. Maltova, a chocolate health food drink, was acquired from Jagjit Industries in Feb 2000. According to GSK official sources, to kids Maltova is the fun health drink, which is extreamly tasty and makes nourishment truly enjoyable and exciting. It was relaunched in June6


2002 with an enriched formulation and improved packaging. The relaunched Maltova had active rechargers, a combination of essential vitamins, minerals and carbohydrates. Maltova has again been restaged in November 2004, with an attractive new packaging that connotes an extreamely high taste appeal and a sense of fun and excitement. American foods major H J Heinz's Indian arm Heinz India has a strong market presence with brands like Complan and Glucon-D. Complan contributes 40 per cent to Heinz's sales. Heinz's most profitable products are Complan and GluconD. Even Glucon D has shed its health tag and repositioned itself as a fun drink. In 2001, Heinz launched a slew of new products - coffee flavoured Complan. Complan is ideal for convalescents and the elderly - complete nutrition when you're off your food , pregnant and nursing mothers provides vitamins and minerals necessary for good health , busy people - a satisfying lunchtime snack at home or at work , athletes - who require fluid, carbohydrate and high quality protein without the bulk of solid food. In early 1990s Cadbury reentered the health drink market with Bournvita, the product of essential vitamins and minerals with memorable campaigns based on the 'Tan ki Shakti, Man ki Shakti'. The next big breakthrough happened in 1999 when the brand was re-launched with a new RDA Balanced Formula. The brand was relaunched with a completely new identity in 2001. Bournvita has a unique taste that combines the goodness of malt and chocolate. It gives the child physical and mental alertness resulting in a healthy body and an active mind. In 2001 Bournvita, complete with new packaging and design was re-launched. A loyalty programme, in the form of a Bournvita Nutrition Centre, dedicated to counseling mothers on her child's daily nutritional needs was opened. Cadbury Bournvita has been advertising since the 1970s. In the early years the positioning centred on 'Good upbringing' with Bournvita being an essential building block for children. In the 1980-82 years it was 'Goodness that grows with you'. By 1987, it had become the more aggressive 'Brought up right, Bournvita bright'. In the last decade of the 20th Century, competition between children was becoming intense and Bournvita was there with its 'Extra energy to stay ahead'. In the 1992-95 period 'Shakti har din ke champion ki' (Energy for the everyday champion) was its payoff line. In 2000, 'Bournvita poshan, sahi poshan' (Bournvita nutrition, right nutrition) encouraged consumption. In the following year 'Confidence kuch kar dikhane ka' (Confidence to achieve) became the reason to buy. The current Cadbury Bournvita positioning suggests that it contains specific ingredients that augment stamina and concentration in children

7


GROWING HEALTH DRINK MARKET IN INDIA With people turning more health conscious, the non-carbonated beverage segment has become one of the fastest growing and most exciting businesses at the moment. For some time now, manufacturers have experimented with some of the formulation and taste issues, offering the consumers better tasting, more healthful alternatives. Evolving from drinks containing a hint of herbs or vitamins, beverages have become an important delivery vehicle for efficacious amounts of nutritional ingredients. Beverages are unusual products in that everyone expects to try new varieties, even from established brands. While all segments of the beverage market are evolving, the growth seems to be directed more towards healthy, light and low-calorie drinks, in particular organic and fruit juice varieties. The Rs 500 crore non-carbonated beverage market in the country is composed of fruit drinks, nectar and juices. While the fruit drink segment is estimated at Rs 250300 crore (branded and packaged), the juice market is valued at Rs 150 crore and the nectar is a small category of about Rs 35-50 crore. And the popular brands vying for a share in the sector are Parle's Frooti, Godrej's Jumpin, Coca Cola's Maaza, Pepsi's Tropicana, and Dabur's Real, Nastle's Milo, Soy milk from ProSoya and branded fruit juices from Surya Foods among others. The Rs 1,100 crore health food drinks (HFD) market, classified into two categories of white and brown segments, has remained stagnant for the last several years despite GSKCH (GlaxoSmithKline Consumer Healthcare) and Cadbury's attempts to activate the category. While Cadbury's Bourvita has been at the forefront of the HFD market, GSKCH has also been active. Apart from repositioning its Horlicks brand from health drink to a fun drink, GSKCH more recently has launched its brown drink Boost in 100gm sachets as well in Tetrapak as a ready-to-drink product. GSKCH's Horlicks and other brands like Boost, Viva, Maltova, together have a 75 % share of the health food drinks market. Horlicks alone, as a white beverage, is believed to have an over 50 % market share. Nestle's Milo, however, being a brown drink faces direct competition from Cadbury's Bournvita and GSKCH's Boost. The market has marginally moved from the white malted beverages to the brown segment. The latest to join the race is GCMMF, which has relaunched its health food drink branded as Amul Shakti.

8


What follows is an overview of the latest product offerings from different beverage companies.PARLE'S FROOTI NO 1 FRUIT DRINK Frooti from Parle Agro is the largest distributed fruit drink with 85 % market share in India. It reaches more than 10 lakh retail outlets in up to class C towns through more than 1,500 distributors and wholesalers directly and indirectly. India's first real fruit drink in Tetrapak is available in three delicious varieties - mango, orange and pineapple - Frooti Mango from premium Indian mangoes, Frooti Orange from chilled imported orange concentrate from Brazil and Frooti Pineapple made from ripe juicy pineapple. The company's another revenue earning brand includes Bisleri water. The Bisleri brand of mineral water is being made available across the country. It has a market share of 40 %. DABUR'S REAL FRUIT JUICE IN 9 FLAVOURS Dabur's flagship brand Real fruit juice is a market leader in the packaged fruit juice category. Real was launched in 1996 and the brand has carved out a niche for itself by claiming to be the only fruit juice in packaged form that is 100 % preservative free. Real with a market share of 55 % offers to its consumers the largest range of 9 juices that comprise orange, mango, pineapple, mixed fruit, grape, guava, tomato, litchi and cranberry. Real Junior, available in 125 ml packs, targets children below six years. It has two favourite flavours of mango and apple enriched with calcium. Real Activ, a 100 % fruit juice with no added sugar, gives the goodness of fruits without adding extra calories. Today, it is the preferred juice drink for the health and fitness conscious young adults. Real Activ is available in orange, apple, and orange-carrot variants. Real Activ orange carrot juice, India's first packaged fruit + vegetable juice, is a combination of juicy oranges and sweet carrots. Coolers, a fruit-based beverage, offers traditional 'cooling' recipes in a ready-todrink format. It is available in three variants - Aam panna, pomegranate (anar) and watermelon Real juices are offered in hygienic double seal spill proof caps in Tetrapak packaging. Once packed, the 6-layer Tetrapak carton helps retain the freshness of the juice for a longer period of time, thus maintaining the taste and nutrition of the juice. The fruits that go into the juices are sourced from the best sources across the world, the company claims.9


Dabur Food produces around 50 million litres of juice annually through its state-ofthe-art facility at Birganj, Nepal. In August 2004, the company commissioned a multi fruit processing facility in Siliguri, in West Bengal, set up by Pasadensa Foods, a wholly owned subsidiary of Dabur Foods Ltd. Spread over 11 acres and geared to process 150 tonnes of fruit per day, it has the capacity to produce 192 tonnes of pulp/concentrate. The plant procures fruits worth Rs 6 crore from West Bengal, North-East, Bihar, Uttar Pradesh, Maharashtra and Andhra Pradesh. It has the highest capacity utilization by processing pineapple, litchi, guava, mango and grape round the year. GODREJ'S JUMPIN & SOYFIT IN SEVERAL FLAVOURS The Foods Division of Godrej Industries produces and markets fruit drinks, fruit nectar and Sofit Soymilk. The Jumpin range of fruit drinks come in flavours such as maqngo, apple, pineapple, litchi and orange. They are packaged in hygienic and aseptic Tetrapak that assures top quality. Ice-cold Jumpin can be enjoyed straight or mixed in a punch or a cocktail. They are available in packs of 200 ml. Godrej has launched Sofit Soymilk for the health conscious. Sofit Soymilk made from carefully selected soybeans, is a valuable source of proteins and vitamins. Being low in saturated fat and cholesterol free, is becoming a popular drink. Available in mango, apple, malt and plain flavours, Sofit is sold in Tetrapaks of 200 ml and 1000 ml. The 1000 ml pack is priced at Rs 50. Sofit is made by mixing soymilk with real fruit pulp, to give all the health benefits of soy to the consumers with the refreshing taste of fruits, claims the company. Soymilk is free of lactose which is present in cow/buffalo milk. The company is in the process of launching more health products. NESTLE'S MILO WITH 'BADAM SHAKTI' Nestle is relaunching its chocolate health food drink Milo by re-energising it with 'badam shakti'. According to company sources, Milo is all set to get a new lease of life with a new packaging, formulation and a distinct positioning. Currently, Milo is available in a SKU of 500gm priced at Rs 96. In the past, Nestle had exited from categories like packaged water business and discontinued a few of its brands, including Nescafe Choc Caf and Milkmaid dessert mixes, due to their poor performance. By giving Milo a new distinct local positioning and introducing the brand in convenient sachets at lower price point, it is clearly moving away from being a very urban-focused player and targeting newer markets and driving rural demand.

10


PEPSI'S TROPICANA Pepsi's Tropicana brand fruit juice has registered double digit growth and has outpaced the growth of the packaged fruit juices market in India. India is a very important market for Tropicana and is among the top 10 biggest markets for the brand. The company sources orange juice concentrates from Brazil. Tropicana is available in orange, apple, grape and cranberry flavours and a cocktail in Ruby-red. They come in Tetrapaks of one litre and PET bottles of 500 ml and one litre. Pepsi also markets an energy drink for the sports personnel, called Gatorade, and a sugarfree Diet Pepsi. Pepsi, in association with Hindustan Lever Ltd (HLL) is planning to launch Lipton iced tea in a couple of months. The move is to take on its arch rival Coca Cola which was successful in its business in tea and coffee, both hot and cold in association with McDonald's. STAETA PROSOYA'S SOYMILK ProSoya Foods India, promoted by the Canada-based ProSoya Inc. has launched its low carbohydrate soymilk under the brand name Staeta in the major metros and selected cities in January 2004. The company has a manufacturing tie-up with Godrej Foods at the latter's Bhopal plant. The company is targeting a Rs 100-crore turnover in five years from the present Rs 4 crore. The Indian Soy food market is expected to grow at about 200 % as awareness about health is growing. COCA COLA'S MAAZA VERY POPULAR Maaza was launched in 1976, a drink that offered the same real taste of fruit juices and was available throughout the year. In 1993, Mazza was acquired by Coca Cola India. Mazza currently, dominates the fruit drinks industry. Over the years, Mazza has become synonymous with mango. The drink became a hit with successful advertisement campaigns like "Taaza mango, maaza mango,' and 'Botal mein aam, maaza hain naam.'Consumers regard maaza as wholesome, natural, fun drink which delivers the real experience of fruit. It5 is available in SKUs of 200 ml RGB, 250 ml RGB, 125 ml Tetrapak and 200 ml Tetrapak. Besides, Coca Cola is also in the business of tea and coffee under the brand name Georgia Gold. The brand is available at all McDonald's outlets across the country. After the hot beverage did well, the com-pany entered the ice tea and coffee market with Georgia brand last year, again in association with McDonald's. Coke's nonCSD portfolio also comprises powder soft drink concentrate Sunfill, and the bottled water brand Kinley. The company is expected to launch a new low calorie cola and11


introduce more varieties of flavoured bottled water over the next few months. BOOST Boost is a part of Indian Health Food Drinks (HFD). HFD is targeted at children aged 518. 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 Bournvita, Complan, Horlicks, this brand had to attract the children and provide them with a better, healthy, tasty, and nutritional energy drink.

MARKET STRUCTUREThe primary consumers of this industry are under 35 years of age and are predominantly male. Teenager and college students are core target market segments for the manufacturers and consist of the core age group of 12 to 30. A recent survey estimates that around 35% percent of energy& health drink consumers are above 35 years old. Furthermore energy& health drinks with high sugar levels are more popular among children and women, while energy & health drinks with strong taste and flavor are more preferred by male consumers. Recent studies also indicated that 65% of the energy drinks market consists of male consumers. There are several types of energy drinks products. Different varieties of tea and coffee along with green tea forms one group. Second are traditional energy drinks such as Red Bull and others. In emerging market like india, however, several producers have introduced new products.

12


CHAPTER 2

OBJECTIVES This study has been conducted to assess market segmentation basis used by various health drinks producing companies. To assess the target customers of the products. Targeting and positioning strategy adopted by health drink producing company to gain their market share as well as the criteria used by these companies to do this exercise.

13


CHAPTER 3

RESEARCH METHODOLOGYThe data collected for this project is prominently of secondary nature. As at most times we made use of internet and other secondary sources to collect data for our project. This data is collected from internet, companys websites, several surveys conducted by various private firms. We also collected data from several newspapers, magazines, as well as several other books on marketing.

14


CHAPTER 4

DATA ANALYSIS AND INTERPRETATIONTABLE 1 MAJOR PRODUCTS HAVING GREATEST INTEREST IN INDIAN PRODUCT PRODUCTS BOOST BOURNVITA COMPLAN MAAZA STAETA PROSOYAS SOYMILK PEPSI'S TROPICANA GODREJ'S JUMPIN & SOYFIT DABUR'S REAL FRUIT JUICE PARLE'S FROOTI HORLICKS 7-9% 17% 15%37 % share of the 50 million (packaged juices market).

MARKET SHARE

NA35% 55 % 40 %

85 %more than 50%

MARKET SHARE

BOOST BOURNVITA HORLICKS COMPLAN OTHERS

15


TABLE 2 TARGET MARKET FOR VARIOUS BRANDS PRODUCTS BOOST BOURNVITA COMPLAN MAAZA STAETA PROSOYAS SOYMILK PEPSI'S TROPICANA NESTLE'S MILO GODREJ'S JUMPIN & SOYFIT DABUR'S REAL FRUIT JUICE PARLE'S FROOTI HORLICKS MARKET SHARE children aged 518 children aged 518 children aged 518 PEOPLEaged 540 children aged 518 PEOPLEaged 540 PEOPLEaged 540 children aged 518 children aged 518 children aged 518 children aged 518

PREFERENCE FOR TARGET MARKET0.8 0.7 PREFERENCE 0.6 0.5 0.4 0.3 0.2 0.1 0 1 2 3 4 5 PEOPLE CATEGORY Series1 Series2

KIDS YOUNG ADULT OLD

68% 12% 10% 10%

16

POSITIONING BASISPOSITIONING TARGETING &POSITIONING SEGMENTATION BASISPOSITIONING BASIS-(GROWING POWRE) (ENERGY) BENEFIT BENEFIF BENEFIFTABLE 3 SEGMENTING BASIS FOR HEALTH DRINKS BOOST BOURNVITA COMPLAN MAAZA HORLICKS OTHERS CHILDREN CHILDREN CHILDREN CHILDREN CHILDREN MOSTLY CHILDREN

POSITIONING OF VARIOUS BRANDS UNDER THE SEGMENT

17

POSITIONING BASISSEGMENTATION TARGETING &POSITIONING POSITIONING BASIS(TAAZA) FRESHNESS (ENERGY) BENEFIT

18


POSITIONING BASISFRESH N JUICY (CONTENT)

CHAPTER NO 5

FINDINGS AND CONCLUSION While conducting this survey we came across several interesting facts about the product category. In India the advent of health drink in very old right from British era, however all these companies which are present in India at this stage have adopted various strategies to position their brand in the Indian market. Many of the product in this category is directed towards children market i.e the main consideration behind segmentation basis is children. If we consider targeting strategies these companies have introduced such products which could be effectively beneficial to all segment of society .e at present stage there are product range for kids upto3 yrs, children, young ladies, old males, etc In order to sustain in the Indian market these companies have come up with various positioning strategies to gain attention to their products. a Variety of advertisement could be seen now a days that are busy in gaining attention of every house hold We may observe that many of the products in this category are based on benefits they offer to their consumers while very few like fruit drinks are based their positioning strategy o content the product has.

19


BIBLIOGRAPHYWe feel proud to make this report with the help of all secondary data. As we already mentioned that we made use of COMPANY WEBSITES GOOGLE TIMES OF INDIA NEWS PAPER Book Marketing management (czinkota kotabez )

20

Health Drink Project

Documents

Transcript of Health Drink Project