1

DECLARATION

I the undersigned solemnly declare that the report of the project work entitled

“STUDY ON CONSUMER PREFERENCE TOWARDS MALTED FOODS WITH

SPECIAL REFERENCE TO HORLICKS IN RAIPUR CITY’’, is based my own work

carried out during the course of my study under the supervision of Prof. Dr.R K.

AGRAWAL.

I assert that the statements made and conclusions drawn are an outcome of the

project work. I further declare that to the best of my knowledge and belief that the

project report does not contain any part of any work which has been submitted for

the award of any other degree/diploma/certificate in this University or any other

University.

___________________

(Signature of the Candidate)

VIVEK SINGH

Roll No.: 5053608240

2

CERTIFICATE BY GUIDE

This to certify that the report of the project submitted is the outcome of the project

work entitled “STUDY ON CONSUMER PREFERENCE TOWARDS MALTED FOODS

WITH SPECIAL REFERENCE TO HORLICKS IN RAIPUR CITY” carried out by Mr.

VIVEK SINGH, bearing Roll No. 5053608240 carried by under my guidance and

supervision for the award of Degree in Master of Business Administration of

Chhattisgarh Swami Vivekanand Technical University, Bhilai (C.G), India.

To the best of the my knowledge the report

i) Embodies the work of the candidate him/herself,

ii) Has duly been completed,

iii) Fulfils the requirement of the ordinance relating to the MBA degree of

the University and

iv) Is up to the desired standard for the purpose of which is submitted.

______________________

(Signature of the Guide)

Prof. R.K.AGRAWAL

Internal Guide

Faculty of Management

DIMAT, Raipur

The project work as mentioned above is hereby being recommended and forwarded for examination and evaluation.

3

CERTIFICATE BYTHE EXAMINERS

This is to certify that the project entitled “STUDY ON CONSUMER PREFERENCE

TOWARDS MALTED FOODS WITH SPECIAL REFERENCE TO HORLICKS IN RAIPUR

CITY’” Submitted by Mr. VIVEK SINGH, Roll No.:5053608240 has been examined

by the undersigned as apart of the examination for the award of Master of Business

Administration degree of Chhattisgarh Swami Vivekanand Technical University,

Bhilai (C.G.).

________________ __________________

________________ __________________

Name & Signature of Name & Signature of

Internal Examiner External Examiner

Date: Date:

Forwarded by

Academic Head

Department of Management

4

ACKNOWLEDGEMENT

I express my sincere gratitude and thanks to Prof. Dr. R. Sathish for providing me

opportunity to carry out this research work. My special thanks to Prof. R.K.AGRAWAL for

giving me opportunity to do this report work and for her support and guidance without which this

project would not have been possible.

I also thank to the almighty, my parents, the library, my friends and respected faculty

members, who helped me for the preparation of report, because without their support this report

would not be completed.

VIVEK SINGH

5

ABSTRACT

In this project report I have survey the product performance and buying behavior of

malted foods (Horlicks), which are consumed by people of all ages. During this research

I have interacted with people of “Raipur”. After this research I came to know how people

persue these product on the variables like price quality advertisement, satisfaction,

taste, packaging, Brand loyalty etc.

In view of above the survey on “Study on Consumer Preference towards the Malted

Foods with special reference to Horlicks in Raipur city ” has been conducted and

the project work there of made as a matter of fact ‘Consumer Preference’ is very

important aspect of marketing

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INDEX

CHAPTERS PARTICULARS PAGE NUM.

Abstract 6

Acknowledgement 5

Index 7

List of figures

Chapter 1 Introduction to the topic 8

1.1 Introduction 9-16

1.2 Objective of the study 17

1.3 Scope of the study 18

Chapter 2Review On consumer preference towards malted

food and other health drink

19-27

Chapter 3 Research Methodology 28-29

3.1 Type of Research 28

3.2 Sampling Test and Sample Size 28

3.4 Data Analysis & Interpretation 30-40

3.5 Project Findings 41

Chapter 4

4.1 Recommendations And Suggestions 42

4.2 Limitations 43

4.3 Conclusion 44

Chapter 5References

45

Chapter 6 Annexure 46-50

6.1Sample of questionnaire attached 46-50

7

INTRODUCTION TO THE TOPIC

Project topic- “consumer preference towards malted foods with special

reference to horlicks in Raipur city”

1.1 Introduction

In this project report I have survey the product performance and buying behavior of

malted foods (Horlicks), which are consumed by people of all ages. During this research

I have interacted with people of “Raipur”. After this research I came to know how people

persue these product on the variables like price quality advertisement, satisfaction,

taste, packaging, Brand loyalty etc. I also come to know which particular brand of

malted foods is most preferred by people of different age group. In this research I have

surveyed how frequently and how much malted foods they consume, whether they buy

small, big or family pack. Trends of ongoing change in their liking have been shown in

the report.

Consumer preferences: -

All marketing start with the consumer So consumer is very important person to

marketer. Consumer decides what to purchase, for whom to purchase, why to

purchase, from where to purchase, and how much to purchase. In order to become a

successful marketer, he must know the liking and disliking of the consumer. He must

also know the time and the quantity of goods and service, a consumer may purchase.

Gone are the days when the concept of market was let the buyer’s beware or when the

market was mainly seller’s market. Now the whole concept of consumer’s sovereignty

prevails. The manufacturer produce and the seller sell whatever the consumer likes. In

this sense the “consumer is the supreme in the market”.

About horlicks.

HORLICKS

HORLICKS NINJA

JUNIOR HORLICKS

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MOTHER’S HORLICKS

HORLICKS LITE

HORLICKS BISCUITS

Horlicks is the product of glaxo smith Kline pharmaceutical. Horlicks is the leading

Health Food Drink in India and enjoys more than 50% share of the Health Food Drink

Market. (Source: A.C Neilson report on market shares).Horlicks has been a popular

brand in the country since the 1930’s. Today, the modern Horlicks stands for trust and

its promise of ‘Pleasurable Nourishment’ with a delicious range of flavors including

Chocolate, Vanilla and Elaichi.

Horlicks is the only health drink, clinically proven* in India, to make kids taller,

stronger and sharper. A premier research institute of India conducted a 14 month

research on Horlicks in a reputed boarding school in Hyderabad. In the research, one

group of children was given an ordinary health food drink without the Horlicks

micronutrients (or vitamins and minerals) while the other group was given Horlicks.

Many tests and 14 months later, it was concluded that the children who consumed

Horlicks showed significant improvements in height, muscle mass, bone health and

attention/concentration scores as compared to the children who consumed the ordinary

health food drink without the Horlicks micronutrients (or vitamins and minerals)

Horlicks is also available in a delicious chocolate flavor. When the temperatures

soar and your throat feels like the Thar Desert, chilled chocolate Horlicks is the tastiest

way to beat the heat. The nutrition of Horlicks packed with the lip-smacking chocolate

flavor has won the hearts of children and adults alike… so you hear them sing merrily

‘jaise bhi kaise bhi doodh le ao, Chocolate Horlicks shake banao….'jaise bhi kaise bhi

doodh le ao, Chocolate Horlicks shake banao..jaise bhi kaise bhi!'’

9

Fun facts about Horlicks

Horlicks was first invented to substitute milk as baby food

The brand has been endorsed by Amitabh Bachchan on the radio(1960-

70), Moon Moon Sen and her daughters Raima and Riya (1980s) and

Vishwanathan Anand

Horlicks, in India, has tied up with popular kids movies like Ice Age II and

Superman Returns

In India, over 2 billion cups of Horlicks are drunk every year!

All Horlicks bottles sold in India in a year placed end to end would form a

chain 6 times the length of the great wall of China

Total Horlicks sold in a year weighs as much as 325 blue whales!!

HORLICKS BISCUITS

With the Power of Calcium!'

Horlicks Biscuits has been growing in popularity ever since it was launched in 1992.

Extending the benefits of Horlicks to 'solid' nourishment, Horlicks Biscuits is a favourite

among parents and children. Each pack contains the 'Power of Calcium' providing 100%

RDA of calcium (as per Codex Ailementarius Commission of 1995).

10

Horlicks Biscuits are available in two flavors - Standard & Elaichi - and live up to the

Horlicks promise of 'great taste' and 'nourishment'.

'Horlicks Lite & Lite Bite':

A nutritional drink & snack specially formulated for all health conscious adults and is

also suitable for use by people with diabetes

Horlicks Lite health food drink and Lite Bite biscuits was launched in the market in Sep

’05. This range of products have been specially formulated keeping in mind nutritional

needs of adults and is also suitable for use by people with diabetes.

New Horlicks Lite with zero added sugar* and zero cholesterol

Contains 26 vital nutrients

Has high fibre

Is low fat

Has essential antioxidants

Mother's Horlicks

Mother's Horlicks, launched in 1997, is a superior nutritional supplement with 26 vital

nutrients that is scientifically designed keeping the nutritional needs of the pregnant and

breast feeding women in mind. An attempt to enhance nutritional superiority saw the

launch of its new variant in May 2004 - Mother's Horlicks fortified with DHA.

This unique formulation has an essential fatty acid called docosahexaenoic acid or DHA

from a vegetarian source. Numerous studies have suggested that DHA helps in brain

development of the child during pregnancy and the first few years of life. It is important to

note that in infants, breast milk is the only source of DHA.

11

In addition to DHA, Mother's Horlicks supplies the recommended quantity of ideal quality

proteins [with 100% amino acid score]. Mother's Horlicks, in three serves [6 scoops],

provides 100% of the Recommended Dietary Allowance* [RDA] for iron, foliate, calcium,

vitamins C, B2, B6 and B12 - nutrients that are essential for blood and bone health.

Mother's Horlicks is also rich in antioxidants [vitamins A, E, selenium, zinc and copper]

essential during pregnancy and lactation.

70 % of an adult’s brain is formed before birth

DHA is required for development of brain, eyes and nerves

DHA is not easily available from average Indian diet

Moreover, Mother's Horlicks has been manufactured through a natural process of malting

or germination that helps to produce enzymes which in turn helps to breakdown complex

starches and proteins into simpler molecules making it easy to digest.

Available in all leading chemist outlets in packs of 500 g (Rs. 200 only) and 200 g (Rs.

100 only), Mother Horlicks has best value for money and is the leading nutritional

supplement for pregnant and breast feeding women. After all, every mother has a right to

healthy babies

26 Vital Nutritional FactsPer 75g* Benefits

12

Nutrients

Total quantity% daily 

requirement*

DHA 60mg NA

Development of brain, 

eyes and nerves of the

baby

Protein 15g 26 Growth of the baby

Carbohydrates 40.0g NA

EnergyFats 10.9g 36

Calories 300Kcal 15

Elemental Iron 38mg 100

Mental and physical 

development of the baby

Folate 400mcg 100

Vitamin C 80mg 100

Vitamin B2 1.6mg 100

Vitamin B6 2mg 100

Vitamin B12 2.8mcg 100

Iodine 145mcg 50

Elemental

Calcium

1000 mcg 100 Development of strong 

bones and teeth of the

13

baby

Phosphorus 350mg 50

Vitamin D 2.5mcg 50

Vitamin A 650mcg 50

Antioxidant function and 

healthy immunity

Vitamin E 7.5mg 50

Zinc 3mg 25

Selenium 35mcg 50

Copper 0.7mg 50

Vitamin B1 0.7mg 50

Release of energy from

foodNiacin 9mg 50

Magnesium 87.5mg 25

Vitamin K 45mcg 50 Normal blood clotting

Sodium 373mg 75

Maintenance of

electrolyte 

balance

Potassium 465mg 23

Chloride 357mg 48

Benefit for Mother

14

A scientific combination of 26 vital nutrients for her all round health

During lactation, it can help improve the quality and quantity of breast milk

Benefits for Baby

Micronutrients and DHA have a significant role in psychomotor

development

Nourishment that can help improve the birth weight of babies.

DHA is important for brain development and intelligence. Makes up to 40% of the

polyunsaturated fatty acid (PUFA) of the baby’s brain Is important for the development

of eyes and nerves of the baby

JUNIOR HORLICKS

'Specially formulated for preschool children'

Preschool children may be fussy in consuming food and may often refuse or waste food

that is nutritionally good for them. This may cause certain dietary gaps in the diet of

preschool children. New Junior Horlicks 1-2-3TM provides essential nutrition and when

taken as part of a healthy diet, helps complete A to Z nutrition for preschool kids. It was

launched in April ’06 with an all new formulation and exciting new packaging. Presenting

New Junior Horlicks 1-2-3TM with

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DHA for Brain Development: Just as calcium is essential for bones, DHA in one of the

most important brain nutrients and is an essential building block of the brain cells.

The average Indian diet may have low amounts of DHA and absence of DHA in

daily diet may impair intelligence. Maximum brain development happens by the age of

5. It is therefore essential to supplement your kid’s diet essential fatty acids like DHA.

100% Daily Quota* of key nutrients to keep children physically active.

So along with DHA, Junior Horlicks 1-2-3TM provides essential nutrition, which as part

of daily diet helps complete A to Z Nutrition.

Also new Junior Horlicks 1-2-3TM now comes in a completely new pack. This pack is in

the shape of a cute elephant and is something every child would love to play with.

*Folate, Vitamin B6, Vitamin C, Vitamin B2, Vitamin B12, Iron & Calcium – In 2 serves

as per US Guidelines 2001

This product is not an infant milk substitute or infant food for less than 2 years old.

Junior Horlicks 1-2-3TM is a nutritional supplement which as part of daily diet helps

meet your child’s nutritional requirements.

1.2 OBJECTIVES OF STUDY:

1. To study the preference of Horlicks in Raipur city.

16

2. To study the factors which influence the consumer preference for Horlicks.

3. To find out the other competitive product/brand in the same Category.

4. To study the satisfaction level of consumer towards the Horlicks.

1.3 SCOPE OT THE STUDY

17

The scope of my study restricts itself to the analysis of consumer preferences,

perception and consumption of horlicks. There are many other brand of malted foods

available but my study is limited to horlicks. The Scope of my study is also restricts itself

to Raipur city.

.

CHAPTER 2

18

2.1 LITERATURE REVIEW

A consumer is attached with a brand or new innovate product for self actualization as

the time passes and the product moves towards its generic behavior the needs of

consumer shift to basic requirement. In 1980s mineral water was for NRIs and high

profile people but what now; mineral water is serving the mass as healthy water for

safety requirement, no more a status symbol. Same was the case with mobile phones.

There are thousands of examples to prove this. The level at which a brand starts in the

hierarchy depends upon the level of need for the respective product. I support my

argument with an example, In 1980s branded milk was a symbol of esteem. Now in

2007 majority of households in cities depend upon the Mother Dairy or Amul for their

daily milk supply. The point here is that as the need of a product moves in the hierarchy

so the respective brands. A brand moves with time from top level (self actualization) to

lowest level (basic needs) of Maslow’s hierarchy. There might be many factors that

affect the movement from top level to the basic level. I quote a few; Company pricing

strategy, competitors in industry, distribution, disposable income of consumers and life

style.

According to literature, consumer behavior is divided into three sub categories;

consumption behavior, purchase behavior and attitude perception. The consumer

behavior differs with age-group and the lifestyle. A busy professional life left no space

for exercise so a drink which contains low calorific value is a health drink. For kids

health drink is a supplement with added calcium, minerals and vitamins. Milk stands

apart with its strongest brand image. Encashment of Amul and mother dairy in milk

segment is externally pillared on availability (Place), brand position of being pasteurized

(promotion, product) and on price lesser then unbranded. Amul always portraits as a

provider of milk and advertise its supply from villages. Here comes the next sub

category of consumer behavior, purchase behavior. One can’t replace milk

with substitute (Don’t forget the blunder of Complain).In this case the buyer and

decision-maker is house wife. Amul has only branded the milk with a competitive

advantage of its distribution.

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On the other hand non-carbonated drink segment though does not challenge the health

drink segment but indirectly competing with other health drinks. If we speculate the total

non-carbonated drink segment sequentially, fruit drink takes 60% market share, Juices

with 30% and nector with the remaining 10% market share constitute the total Rs 500

market of non-carbonated drink. The brands chasing the market 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.

Now question comes why it seems that they are competing in the health drink

segment. The answer derived from the origin of the product-“fruits”, rich in natural fibers

and other

vitamins and minerals. The driver of demand lies in the consumption behavior, it is hard

to carry a half eaten mango but a half consumed bottle of juice. Secondly the branded

juices come with preservatives and can go for a period of time. Dabur is quite smart in

reading the mind of consumer. The brand extension of Real in school-kid segment with

two variants; Real Junior and Real School Pack proved its propensity for the market.

The brand position for former is fruit juice with added calcium for 2-6 year old kids and

later, Real School comes in a package of three with orange, mango and mixed fruit.

The target consumer segment is professional ladies who have no time to make break

fast or school Tiffin’s for kids. If you will see the printed-advertisement, you will see

Tiffin is shown that has few pieces of bread and a Real tetra pack. On the other hand

what Parle is doing with Frooti, just price variants?

Kids are the most loyal consumers I ever seen on this earth_ . They demand Frooti

straight away and if you will try to offer them another brand. They will make your life

miserable. Try it out!!

The discloser of strategy happens when Dabur targeting the buyer’s

convenience(mothers) and Parle cashes on its brand image among kids. Dabur does

not want to leave any loophole so going ahead to grab the loyalty of buyer (mothers) it

has started with innovative cuzines for packing a nutritive lunch for school going kids. It

reminds me of two lovers, one impresses the parents of the lady and other just prove

his faithfulness to her. I am not entirely wrong in this case as some gals see the brand

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Image and never go on face value but market price. Jokes apart, Till now we have

seen that health segment is not restricted to milk or juices but the changing life style

has given different means to it for different people and at different time. Moving to

deliberately positioned health drinks which are categorized into white and brown

segment and as a whole forms Rs 1,100 crore health food drinks (HFD) market.

Despite the management strategy of GSKCH (GlaxoSmithKline Consumer Healthcare)

and Cadbury's attempts to activate the category, the segment is flat as a growth curve.

The strategic scenario is like Cadbury's Bournvita leads the HFD market, followed by

GSKCH , striving hard to invade the market. The Horlicks, originally invented as a

health drink for army men and then commercialized for mass is repositioned as a fun

drink.

GSKCH as usually like a challenger did not leave any stone unturned , more recently it

has launched its brown drink Boost in 100gm sachets as well in Tetrapak as a ready-to-

drink product. GSKCH's Horlicks and other brands like Boost, Viva, Malt ova, together

have a 75 % share of the health food drinks market. Horlicks alone, as a white average,

is believed to have an over 50 % market share.

GSK, to stronger its position in the health drink market worked the way internsindia.com

predicted. The brands were Viva, Maltova and Boost and key parameter was

packaging. Viva has been repositioned as a traditional family health drink while Malt

ova has been repositioned as a tasty chocolate-based drink for children. Boost has also

been repositioned as an energy drink. They have covered the major segments fall in

different age group. GSK’s share in the market is around Rs 1,000 crore from four

brands, including Horlicks. Because of the repositioning, Boost's share in the market

has grown to 14 per cent from around 12 per cent last year. Horlicks' share remains

steady at around 54 percent, including all its variants. While all segments of the

beverage market are evolving, the growth seems to be directed more towards healthy,

light and low-calorie drinks, in particular organic and fruit juice varieties. Nestlé’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

21

health food drink branded as Amul Shakti.

--------------------------------------------------------------------------

There is one thing common in all the brand positions, Guess What?

These brands are not repeating the mistake of Complain who tried to challenge the

existence of milk. All these brands positioned as a supplement health drink. Different

companies have different assumptions to trap its consumer base. Some believe in

targeting mothers and some believe in targeting the consumers (kids) directly. If you

track the life of a human being since first month after his birth till his death, you will a

pattern in the change of consumption behavior and purchase decisions. Till the child is

of 2 years, Cereal is the favorite brand of a mother-a decision maker. Now the time

comes for schooling where Horlicks, Bournvita and Boost take up the preference of the

decision maker (again the mum) positioned as a supplement for growth. Dabur is trying

to space in this segment placing Real Junior and Real School with different variants of

fruits.

Frooti is already there but with taste based position. So keeping milk apart now the fight

is between fruit juice and added supplements. Horlicks took height issue as its benefit

based brand position. On the other hand Dabur took attribute based position. Bournvita

is smart enough to position on chocolate taste. It wider the consumer segment for all

age group (Who hates chocolate milk) As the age increases and life style through friend

circle infect one another, the psyche takes a new shape. It is the time when the decision

maker is the consumer itself. The meanings change for a health drink. Now the health

drink is one which is low calorific and high as a social drink. No doubt some companies

are pushing beer and coffee as a health drink. For this age group inclination is higher

for carbonated drink. Diet Coke is a live example for it. Coffee at the branded place like

café coffee day, barista and McDonalds is also opted as a social drink. A few sips of

coffee with friends or partner is deriving the sales margins for this segment. In this

segment health drink takes lesser place as a separate entity. Now its time for a

professional who slog in long working hours. No time for physical exercise, health is a

precautive issue, less caloric intake and sufficient minerals compose the requirement.

22

Hygiene is at the apex of the priority list. . Here comes the time for branded water with

added minerals. Isn’t a health drink?? Who says?

Companies like PepsiCo, Coca-Cola and Bisleri got “Health” as their brand position for

a color less and odorless product. Sooner the time will come for vitamin and smart

water. This cycle goes till the age a person is in its professional life. In the age above 50

all the health drinks restricted to less calorie intake, high minerals and vitamins. Have

you ever thought why the force is working on health drinks not on health foods?

The answer is consumption behavior if one drinks 5 bottles of apple juice in a day it

would be thought as dieting but if one will eat snacks 5 times of same calorific value as

5 bottle of apple juice, he will be rewarded as biggest eater. Ha Ha Ha!! It’s all about

psyche, away from reasoning.

In the next article internsindia.com will predict the possibility of brand reposition and

competitive situation of the market and will compare and contract the brands as per the

market realities. Competition do negotiate, it’s another thing some are negotiated

unconsciously.

Which is harder, getting your child to drink milk or do moths? The answer is that it

depends on how you flavor both. Just as a good teacher can make math’s interesting, a

good flavor can sell a million tones of malted/milk-based beverages.

This is important because the market for these beverages has taken off, and is currently

growing at about 20 per cent a year. In 2002, the market had been declining by 7 per

cent.

So, given such a healthy growth rate, new players should be able to enter the market

and dip into the pail easily, right? Wrong, as Nestle just discovered. Its brand, Milo,

quietly bit the dust some months ago when the company decided to stop production.

According to the trade, irregular distribution and lack of marketing did it in. Even at its

peak, its market share never went up beyond 3 per cent, say sources in the trade. By

23

March-April 2009, however, this figure had dropped to a meager 0.5 per cent. Nestle

declined to comment on whether this failure was the result of it having a different taste

as compared to its international variants. Nevertheless, an unfazed Nestle is

considering introducing a ready-to-drink milk-based beverage called Milo Smart Plus.

The product is being test marketed currently, says a spokesperson for the company.

GlaxoSmithKline (GSK), Cadbury and Heinz have done better. They have seen their

milk-based beverages become a major component of their product line-up. Of course,

these companies have the advantage of being in the market for relatively longer. GSK’s

Horlicks, for example, has been in the Indian market since the 1930s, before

undergoing a revamp in 2003 when the whole industry was stagnating and the products

in this segment were beginning to acquire an ‘old-fashioned’ image.

Lion’s share

Years of experience in the market have given GSK a decisive edge over others and its

brands have continued their dominance through the ages. Apart from being the ‘secret’

of Sachin Tendulkar’s energy, Boost has also enabled GSK to capture a lion’s share of

the milk beverages market. GSK’s Executive Vice-President (Marketing), Subhajit Sen,

says, “Horlicks and Boost give us two-thirds of the market share in milk-based

beverages.” Boost alone holds a 13 per cent market share all over India while in South

India this figure goes up to 24 per cent. It’s clear from these numbers that these

beverages form a sizeable part of GSK’s operations.

The Horlicks brand has evolved into more than just malted beverages. With variants

such as Horlicks Lite, Mother’s Horlicks and Junior Horlicks, the brand now caters to the

needs of the whole family. In 1992, the Horlicks brand also branched out into biscuits

and earlier this month launched Junior Horlicks biscuits for toddlers. The Horlicks brand

alone contributes almost 80 per cent to GSK’s revenues.

24

The fact that GSK has two more milk beverages in the same market – Viva and Maltova

– gives it a firm grip on the market. According to Sen, Viva and Maltova are popular in

select markets in areas such as West Bengal and Tamil Nadu where they have found

favor for a long time. Their popularity is largely taste-based, he explains. The difference

between the three brands of malted beverages under the GSK umbrella is marginal.

Viva and Maltova are niche products with long-time consumers still sticking with them.

The other major player in this segment, Cadbury, too believes that Bournvita is an

important part of its arsenal. Sanjay Purohit, Executive Director (Marketing), Cadbury

India, says, “Bournvita is the second largest brand from the Cadbury stable after

Cadbury Dairy Milk. Bournvita has approximately 25 per cent share of Cadbury India’s

total revenue.”Bournvita, like Horlicks, has been present in India for a long time, since

1948 to be precise. This, coupled with strong marketing campaigns over the years, has

meant that Bournvita has continued as a strong player. The ‘Bournvita Quiz Contest’,

which began as an event held in cities in 1972 and went on to capture television

audiences in the 1990s, further established Bounvita as a household name. Bournvita’s

taste has always set it apart from the rest of the competition. This is quite

understandable as Cadbury was always best known for its chocolates.

Not one to lose out to its competitors, Bournvita finally launched a new variant for

toddlers called ‘Bournvita Li’l Champs’. Both GSK and Heinz have variants of the

beverages for toddlers in the market.

25

Complan, originally a GSK product, completes the holy trinity in the domestic milk

beverages market. Complan had been in the market since 1969. However, since Heinz

acquired GSK’s food division in 1994, Complan has developed into one of Heinz’s

flagship brands. It has become a household name in terms of its nutritional value.Sudip

Shah, Vice-President (Marketing), Heinz India, says, “Complan is an iconic brand in

Heinz India’s portfolio that has earned the trust and goodwill of discerning Indian

consumers for over four decades. Complan has set new standards in delivering

nutritional benefits.”The brand was recently embroiled in a controversy over its claims of

providing faster height growth. Shah believes the claim is “tangible and proven”. He

says Complan is one of the fastest growing brands in the category. To take advantage

of the local taste palette, Complan expanded its portfolio by launching the Kesar

Badam flavour.Complan too has extended itself to variants beyond milk-based

beverages. Shah says, “We have now extended Complan’s promise of nutrition to the

entire family through Complan Nutri Bowl Muesli. It is well positioned to reach out to

health-conscious families.” The muesli is available in three flavours.

Price no bar

As far as the price positioning is concerned, there’s some difference between the three

market leaders. According to a Delhi retailer, while a 500 gm pack of Complan is sold

for Rs 174, both Bournvita and Horlicks retail for Rs 131. Milo, on the other hand, was

sold at a lesser amount of Rs 88 for the same weight, as per sources in Nestle. That’s

49 per cent lesser than the cost of Complan. This indicates that the milk beverage

market is driven more by individual tastes, usually acquired over time, than price. Being

in the market for decades has given GSK, Cadbury and Heinz control of the malted

beverages market. Consumers have become accustomed to these brands and

26

generally seem reluctant to shift loyalties to newer brands. In such a scenario, new

entrants face an uphill task of bringing out a product exciting enough to lure consumers

The white malts category constitutes 60 per cent of the overall HFD market and

Horlicks, along with Junior Horlicks, is the market leader with a 57 per cent market

share. The brown beverages -- consisting of brands like Boost and Maltova (Glaxo

SmithKline Consumer Healthcare Ltd, GSK), Bournvita (Cadbury), and Milo (Nestle) --

form the remaining part of the HFD market...

 

 

 

 

CHAPTER 3

RESEARCH METHODOLOGY

27

3.1 Type of Research

Descriptive Research Design

3.2 Sampling Technique and Sample size

Sample Size

The sample size in this study is 200.

Sampling Technique:

The sampling is stratified random sampling by taking Raipur as center and

stratified the respondents according to the age and profession.

Below 20 Students

20-30 Housewives & Business persons

30-40 Housewives & Business persons

40 Above Housewives & Business persons

3.3 SOURCES OF DATA

Primary Data:

The data has been collected directly from respondent with the help of structured

questionnaire

Secondary data:

The secondary data has been collected from internet, reference from library.

TOOLS AND TECHNIQUES OF ANALYSIS

Statistical charts

Line chart and column chart

Bar charts

Pie charts

3.4 Data analysis and interpretation:

1. Do you use Horlicks?

28

Yes No

Interpretation: 67% consumers prefer Horlicks.

2. Do the Horlicks is easily available?

Yes No

29

67; 67%

33; 33%

Preference to horlicks

Yes No

90; 90%

10; 10%

Easy avalability

Yes

No

Interpretation: 90% consumers said that Horlicks is easily available to them.

3. Do you think that the Horlicks is useful for all age group?

Yes No can’t say

30

Yes No Can't say

Series1 70 20 10

5

15

25

35

45

55

65

75 Yes; 70

No; 20

Can't say; 10

Usability to all age groups

Series1

Interpretation: 70% consumers think that Horlicks is useful for all age group, but 20%

are not agreeing with rest of the consumers.

4. Please tell us how you would rate Horlicks on the following attribute.

High Quality

31

Expensive

A brand I can trust

Well Built

A good value

High Quality; 49; 49%

Expensive; 2; 2%

A brand I can trust; 35;

35%

Well Built; 4; 4%

A good value; 10; 10%

Rating for Horlicks

High Quality

Expensive

A brand I can trust

Well Built

A good value

Interpretation: 49% consumers rate horlicks a high quality product and 35% rate it as a

trust worthy brand.10% rate it as a good value product.

5. What other brand of malted foods have you used before?

Complan

32

bournvita

Boost

Milo

I haven’t use, but I am familiar with all.

Complan; 20;

20%

bounvita37

37%

Boost; 35; 35%

Milo; 3;

3% Haven’t use; 5; 5%

Other brands

Complan

Horlicks

Boost

Milo

Haven’t use

Interpretation: 37% & 35% consumers used bounvita and Boost respectively before.

6. How interested are you in buying horlicks, if it is available?

Not at all interested Not very interested

33

Neither interested not uninterested

Somewhat interested Very interested

Not at all; 3; 3%Not

very; 9; 9%

Nigther/ Nor; 8; 8%

Somewhat; 19;

19%

Very; 61; 61%

Interest In Buying Horlicks

Not at all Not very Nigther/ Nor Somewhat Very

Interpretation: 61% consumers are very interested, 19% are somewhat interested in

buying Horlicks, but 3% are not at all interested in buying Horlicks.

34

7. What is your reaction to the horlicks?

Poor

Fair

Good

Very good

Excellent

Excellent

Very good

Good

Fair

Poor

49

31

11

9

0

Reaction towards horlicks

Series1

Interpretation: 49% consumers said Horlicks an excellent product 31% said very good

and 11% said it a good product.

35

8 What would be your most important factors in choosing horlicks?

(Please check three)

Price Best performance Good warranty service

Brand name High quality

Shopping convenience Discount

29%

29%

13%

29%

fectors choosing horlicks

discount price best performance

brand name good warranty high quality

Interpretation: 70% consumers influenced by the price, best performance and high

quality and 30% influenced by shopping convenience and brand name.

9. The medium which influence you, deciding to buy horlicks?

36

Internet/ Website

Word-of-mouth

Industry publication

Advertisements

Trade shows/ Events

Internet/ Website; 1; 1%

Word-of-mouth; 48; 48%

Industry publication; 9; 9%

Advertisements; 38; 38%

Trade shows/ Events; 4; 4%

Influencing media

Internet/ Website

Word-of-mouth

Industry publication

Advertisements

Trade shows/ Events

Interpretation: The main medium influences consumers are word-of –mouth (48%) and

advertisements (38%).

10. How you feel when you use Horlicks?

Place the check under the face that express how you feel--

37

Extermly; 74; 74%satisfy; 12; 12%

happy; 4; 4%

ok; 7; 7%

somewhat; 3; 3%

Satisfaction level

Extermly satisfy happy ok somewhat nat at all

Interpretation: 74% consumers are extremely satisfied, and 12% are satisfied with

Horlicks.

38

11. Any suggestion/recommendation for the enrichment of our product.

34

12

Suggesions

Any other flavor

Should make populer in 40 above age group

Interpretation: 34 consumers suggested that there should be some another flavor of

Horlicks and 12 said that firm should make Horlicks more popular

among 40 above age group.

39

3.6 PROJECT FINDINGS

1. Horlicks is the market leader with 67% market share in malted food category in Raipur

city.

2. Among the different age group of consumers the consumer below 20 years preferred

Horlicks the most.

3. The consumer choosing the Horlicks because of its high quality, taste and affordable

price.

4. Among the other competitive product in same category burnvita and Boost are the

major competitors.

5. Consumer rate the Horlicka a trustworthy brand.

6. Advertisement & word-of-mouth publicity are the main medium which influences the

consumers most.

7. The consumers are well satisfied with the quantity and performance of Horlicks.

40

CHAPTER 4

4.1RECOMMENDATIONS AND SUGGESTION

1. They should introduce some other flavors of Horlicks in the market.

2. They have to make popular their product to above 40 age group also.

41

4.2 LIMITATIONS

1. Sample size: Due to vast area the consumers sample size restricted to

200 only.

2. Limitation of response: The response given to the researchers were not always

accurate since preference is qualitative indicator the

respondents regarding their understanding of preference.

3. Limitation of bias: Generally respondents are based to the question raised,

thus the result of research will have error and the very

purpose of marketing research is lost. Therefore took

utmost care while dealing with respondents.

4. Limitation of human behavior: Researches studies the behavior that is rational.

Very often, they do not express their feeling correctly what

they think. In such cases their habitual, practice,

preferences cannot be assessed correctly.

42

4.3CONCLUSION

Horlicks is highly accepted by the consumer in malted foods category among the

other brands available in the same category and Advertisement policy and quality of

product results the high preference of consumers.

43

BLIOGRAPHY

Books:

Research Methodology C. R. Kothari

Website:

www.horlicksindia.com

www.Ask.com

44

ANNEXURE

QUESTIONNAIRE

A study on consumer preferences towards malted foods with special

references to Horlicks at Raipur city .

Personal Information

a) Name-

b) Age- Below 20 20-30 30-40 40 Above

c) Address-

d) Profession-

e) Gender- M F

General Information

1. Do you use Horlicks?

45

Yes No

2. Is the Horlicks is easily available?

Yes No

3. Do you think that the Horlicks is useful for all age group?

Yes No can’t say

4. Please tell us how you would rate Horlicks on the following

attribute.

Rate between 1 to 5

High Quality

Expensive

A brand I can trust

Well Built

A good value

5. What other brand of malted foods have you used before?

Complan

Burnvita

Boost

46

47