Brief Report: Possible

Market Structure for

Health Drink

Prepared By: Dhwani N Nagrani

Date:23-04-2011
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HEALTH DRINK MARKET ANALYSIS:

BRIEF:

 Health drinks are a part of the functional food and drinks category which also
includes such beverages as energy foods and drinks, sports drinks, health soft
drinks, Fruit Juices, Energy Fizz Drinks etc.
 Consumer food and drink choices are no longer driven by taste alone, but are
clearly increasingly affected by awareness of nutrition and health factors with
lifestyle aspirations becoming a more deciding factor now.
 The total market sales of the health milk drinks (Powder based) is of the Rs
1400 Crore with 65,000 tones units sold annually.
 Health Energy Drink Market is divided into two segments – White Health Food
Drink Market (Milk Solids, Malt and Sugar based) and Brown Health Food Drink
Market (Milk Solids, Cocoa and Sugar Based).
 The main Players of this market are Cadbury’s- Bournvita, GlaxoSmithKline-
Horlicks, Boost, Maltova, Viva and Heinz- Complan. The other brands which are in
Minority are Nutramul, Nesquik, Amul Shakti, Drinking Chocolate.
 This market was covered by various retail and individual distribution channels,
using various Mass Media vehicles.
 With more functional foods and beverages available and entering in the market
combined, health and wellness are now included in top criteria driving consumer
food choices.
 Health Drink market is has a very negligible share in Herbal Section. This Section
is operated on Individual basis, not commercially. The Brands under this
category includes Vitamor by BAPS, Urja + by Agnivesh Ayurvedics, Biovita etc.
 Since the consumer today prefers chemical free, Natural and Herbal products,
launching a product with all these qualities, yet trendy would be an great
Opportunity to tap market.

Industry Differentiation

Functional foods: Functional foods and beverages are products that make a distinct,
written health claim; may be enhanced in some way with added ingredients like calcium
to have beneficial effects. They produce a specific health benefit and may bear FDA
approved claims.

Super foods: Name given to everyday fruits, vegetables, fish and fowl that are seen as
enhancing health and long life. These may include nutrient-rich blueberries, beans,
tomatoes, pumpkins, oranges, oats and wild salmon; pomegranates, cinnamon, onions,
dates and red peppers; foods containing antioxidants etc.

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Energy drinks: Beverages designed to give you a burst of energy using a combination of
methylxanthines, usually some form of caffeine, B vitamins, and herbs. Some may
contain high levels of sugar.

Sports drinks: Designed to replace the body-electrolytes, while you sweat, at sports or
exercise. They contain water, with some form of sugar, minerals such as potassium and
sodium, and flavors. They provide an instant source of carbohydrates: Sugars and other
energy compounds that help to feed the muscles and can delay fatigue.

PHASE ONE: MARKET ANALYSIS

 To gain the understanding a detailed Market Analysis in that product category is
required.
 Market Analysis is necessary to identity the need for the product in market. Also
to find the essential points necessary for the product Development and its
Marketing Plan.
 Since the market is open to the concept of herbal product, this product has full
potential to be accepted commercially. ( This can be confirmed by asking the
target audience in Market Research Questionnaire.)
Market Analysis:
 Study the competitors is most important. In this case the major Competitors are
Complan, Horlicks, Bournvita, Boost, Maltova, Nutramul.
 Study the other Herbal Competitors Vitamor, Urja+, Biomore, Brahman Milk, Etc.
 Study International Market of Health Drinks.
 Analyze barriers to entry.
 Analyze level and Emphasis of Service and support. Regional trend and choices
may differ. Identify and study those patterns.
 Analyze Industry Cost, Distribution Channel- New trends and existing ones,
Business Models, Market Trends, and Key Successful Factors + Core Competency
of each product.
 Study and verify Government Rules, Trade Associations, Policies and regulation,
Food and Beverages Institutions, Licensing Policies.
 Market Growth Rate can be estimated by extrapolating data from the previous
data or can be estimated from the growth drivers from the existing
contemporary market.

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 Analyze Product Life Cycle. Its development, Growth, Maturity, Saturation,

Decline Stage and its core reasons. (Pricing, environment, season may be the
reasons)
 The Technological aspects, studying whether we have enough Machineries, raw

Factors Bournvita Horlicks Complan Boost Maltova Nutramu Viva

l
Company Cadbury GSK Heinz GSK GSK Amul GSK
Market 17% 55% 15%
Share
Positioning Confidence Stronger, Complete Secret of
giver Sharper, Food The
Taller ultimate
energy
Flavours Chocolate, Chocolate, Chocolate,
5* (Choco Vanilla, Strawberry
caremel) Elaichi, , Mango,
Honey, Kesar
Toffee, Badam,
Natural
Packaging Refill pack Refill Pack Glass Jar, Bottle Refill Glass Jar, Refill
(Wrapper), (Wrapper), Refill Pack Pack, Pack Refill Pack
Bottle pack Bottle Pack (Carton) Refill Pack (Carton), Pack (Carton)
(Wrapper) (Carton)
Pricing Rs143 Rs:146 Rs: 146 Rs:141
Chocolate
Rs146 5*
Quantity 500gms 500gms 500gms,
175gms
Availability Almost at Almost at Almost at Easily
all retail , all retail , all retail , available
grocery grocery grocery at retail,
stores stores stores. may be
flavours available
may be at grocery
limited store

PHASE TWO:MARKET RESEARCH

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Research Objective:
 Top of Mind Awareness of the brand (Herbal yet Contemporary Section)
 Importance of Brand Awareness in Purchasing decisions. Mediums assisting
Brand Awareness (Retail, WOM, Outdoor, Buzz, Merchandise,etc.)
 Price Sensitivity, product Sensitivity for the Herbal Products.
 Decision Maker, who buys the product in each household.
 Public definition of Ideal health Milk Drink.
 TG profiling- Identify the Target Audience. Identify decision Maker, Influencer,
And End User.
 Competition mapping- Study Competitiors, their Market size, Market share,
Mediums used to communicate their product, Retail distribution pattern,
Technologies used.
 Growth of Health Drink Market.

Research Methodology
 Questionnaire for the Target Audience to be executed by Invigilator ( Database
would be generated)
 Sampling- Provide sample, Make a drink in front of the testers and give them fresh
drink to taste. (Since it does not need extra sugar to add in it, and also it gets
dissolved easily, this would highlight these points to consumers going for Sampling.)
 Ask the C&F agents, retail agents, distributors for distribution channel and Offers
and Discounts.

Parameters for Market Research

 Which brand do they use currently?
 Any other brand which they where using in past?
 Reason for change.
 Other brands which they can recall. (Top mind recall)
 Any brand which they can come across in herbal category.
 Awareness about various other brands. (Include all the other various brands)
 Media through which they learnt about the brands. (TV, Print, Retail, WOM,
Radio, Discounts, Offers)
 Their Ideal Health drink would be like? In terms of Offers, Pricing, Flavour,
Quantity etc
 What makes a brand Credible Star Endorsement, Offer, Company, Product itself?
 Willingness to go for the herbal Product.
 From where they buy
 Who buys/ decides? And who uses it in the family
 How many times/Frequency with which they use it.

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 Average Family Size

 Which advertisement do they remember in this category?

PHASE THREE: MARKETING PLAN

Distribution Pattern:
 Organized Retail Sector: The Domestic Consumption market with retail accounting is
of 60% of the overall segment. Out of this, retail Organized sector is only of 5%.
 Since the product is new and is a competition to the contemporary health milk
drinks, it is essential to place the product among them. That is in retail market.
 Retail market can be captured/gained attention by Pos, Danglers, In-shop Offers etc.
 Examples of these are given in Implementation Phase.
 Unorganized consist of the rest market. Investment in this sector is very less. There
is no need for the Bulk premises, Less labour cost, little or no taxes, owner operated
hence direct dealing and decision making is possible, low cost structure, can urge
consumers, can get the direct response from the buyers, and also doesn’t promote
competition.
 Hence more details in these sectors, more trends can be studied and implemented
for the product.

Packaging:
 As the popular saying goes “The book is known/ judged by its cover”. Hence To
attract the consumer, attractive packaging which creates difference, disruption for
the product category is essential.
 Most of the competitors either go for Glass/Plastic Jar, or refill packs like carton, or
pouches.
 Hence this market and product category has full scope, and be the first of its kind to
go for innovative packaging.
 Few of the product Innovative sampling are as under.

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PHASE FOUR: IMPLEMENTATION

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POINT OF PURCHASE

 Samples Of Product display in Retail Market:

Fig:1 Fig: 2

Fig: 3 Fig:4

BTL ACTIVITY

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 Sampling Promotional Activity in Retail Shop, Malls and other places.

MASCOT:
 Promoting Ojasvita through a particular mascot would work for it. Since the
contemporaries do not have one, we can go for it.
 Mascot is one thing which attracts the crowd very soon. Mascot can be the mood of
interaction between the customers and company. Mascot can further be also cashed
by going for Merchandising, freebies, etc.

UNCONVENTIONAL MEDIA:
Such advertisements can be used to promote the product. Whenever employees are
hired, they want candidates who are energetic, positive minded, full of vitality,

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mentally alert. Since the product contains and delivers such qualities on consuming
it such medium can be used.

AMBIENT MEDIA:
Place the Product’s print advertisement, in lift, with the copy in it, If you had been
drinking Ojasvita, you would not shy from the stairs!

SOCIAL MEDIA:
 To have a top of mind awareness about the product, it is essential to be
interactive even virtually.
 Discussions on the topic like your most energizing moment in life, More
recipes on how to use the product.
 Since the product contains 7 herbs... one can p[lay around this figure seven
and energy and create some topic for the discussion.

HIGHLIGHTING UNIQUE FACTORS OF VARIOUS WEBSITES:

Cheetos:

Cheetos website makes you immediately think about Cheetos, even it

makes you think to have one. This website has synergy with its other
communication. It conveys the fun element for which Cheetos stand for.
 On the home page of cheetos website, it says thanks for taking a cheetos break. This
recalls the brand and gains special attention to the Chester- Cheetos Official Mascot.
 Images of Chester in different disguise are showcased.
 Games, and videos are posted on the website in which Chester is featured.

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 Recipes how Cheetos can be used, say in snacks, desserts are given.
 Funny Photos of Chester and cheetos are shown which makes us to think about the
product. Since the product is displayed, people tend to develop craving for the
product.

Complan:
Complan is a Brand which focuses on Complete Food. Complan website is very
vibrant, colourful, and very different from its products outlook. This website not
only talks about the product but also talks about it other products from its parent
Company.
 The main page for the product gives a brief description about the product and its
benefits.
 It also gives recipes on how to use complain in your diet. To build more credibility,
it also showcases the latest headlines related to product and its parent company.
 They have an expert panel speak on the diet of children’s growth and nutrition.
Queries on mother’s problem related to their children not having their food is also
answered.
 How to calculate whether the child is obese or healthy can be done by going for the
BMI calculator.
 Few Facts and Figures Nutrition related are also showcased on the website.
 It answers all the FAQs related to product and Nutrition.
 All the possible details for Further communication is given which builds
transparency.

The Website lacks the playful element like Games or something else where the mind can
be used actively. Since it projects as Complete Food it can leverage on this point. It talks
mostly about Nutrition. No group or Committee is formed. Since almost all the
questions are answered it is not an interactive medium. People might gain knowledge
but cannot interact directly with the product makers.

KELLOGGS:

This website is based on its corporate colour, red and white. Website is very simple and
plain. Just like complan it talks about various kellogg recipes nutition it also talks about
Promotions and discounts available

Prepared By Dhwani N. Nagrani