Marketing Of Boost
PROJECT
CONTENTS
CHAPTER CONTENTS PAGE
1 INTRODUCTION 2-8
2 ESSENCE OF HEALTH DRINK 9-22
3 COMPANY PROFILE 23-33
4 PRODUCT PROFILE 34-45
5 A CASE STUDY OF C.M.B. DISTRIBUTORS 46-51
6 MARKETING STRATEGY 52-65
7 CONSUMER SURVEY ANALYSIS 66-78
8 SUGGESTIONS AND CONCLUSIONS 79-82
ANNEXURES 83-87
QUESTIONNAIRE
BIBLIOGRAPHY
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 1
Marketing Of Boost
CHAPTER-1
INTRODUCTION
1.1 INTRODUCTION
1.2 SCOPE OF THE STUDY
1.3 OBJECTIVES
1.4 METHODOLOGY
1.5 LIMITATIONS
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 2
Marketing Of Boost
CHAPTER - 1
INTRODCUTION
1.1. INTRODUCTION:
Health is defined as a condition of the body free of diseases and
ailments.
All organisms require food for their existence. Food can be defined
as a substance, which nourishes the body. Food is the source of energy
and it also provides materials for growth and development.
Food is essential to know the composition of food we take everyday
and how it provides the energy required by the body for metabolic
activities.
Life is a boon gifted by god. It should be lived with a purpose,
which can be fulfilled only when one is in good health.
Proteins, minerals and water are the chief constituents required for
formation of tissues, which in turn build the body.
Good health comes from good nutrition. Good nutrition means
maintaining a nutritional status that enables us to grow well and enjoy
good health. Good health fills us with good spirits, which ultimately
helps us to reach our goal.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 3
Marketing Of Boost
Nutritious food and daily exercises are very essential to keep our
body fit in good health. For a middle-class family, it is difficult to
maintain the nutrition of their diet routinely and for a high class family,
lack of time is the reason for non maintenance of a well- nourished diet
daily.
Hence, now a day we see various advertisements of health drink,
health foods, which satisfy the above needs of the society
People of olden days considered milk to be the most nearly perfect
food. Milk was available easily in those days, as our country was a land
of agriculture. But now changing times have made India both a land of
agriculture and industries, a land of rural as well as urban population.
Milk in urban areas is consumed in the form of packed milk, which has
its own drawbacks. Adulteration of milk with water is also known.
Hence, health drinks replenish the deficient nutrients & Provides
us a complete food. In the presented fast progressing dynamic world, it
provides extra and smart nutrients for extra energy.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 4
Marketing Of Boost
1.2. SCOPE OF THE STUDY
1. Advantage is a commercial Town with a population of more than
5 lakhs. There are many consumers of the Town & consumers
they need good health. This study deals with knowing
consumers preference.
2. To know the problem of the product.
3. To understand the consumers preference
4. My project is restricted to consumers of Chikmagalur Town only.
1.3. OBJECTIVES OF THE STUDY
1. To analyze the working capital management and financial
performance of the company.
2. To know about the customer satisfaction towards the service.
3. To know about the cash management I. e, sales and cash
turnover.
4. Accounting system adopted by management.
5. To give suggestions in marketing of health drinks to the energy
to increase sales and to overcome practical problems.
6. To study the market share of Boost.
7. To know the sales position of the product in Chikmagalur
Town.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 5
Marketing Of Boost
8. To study the consumer awareness the different brands of
health drinks in the market.
9. To know why the consumers prefer and to know how they were
introduced to particular brand.
10. To know the competition of other brands of health drinks in
the market.
11. To know the brand loyalty among the consumers.
12. To know whether the company image acts as an influence on
brand selection.
1.4. METHODOLOGY
Information required for the studies are obtained through primary
and secondary data collected.
As well as structured close- ended questionnaire was framed which
would provide all the possible data required basically through the study
the objectives of the primary data.
Primary data
Primary data was collected through personal interview with the
sales manager, consumers and distributors of company’s agency in
Chikmagalur Town.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 6
Marketing Of Boost
The data expressed above was collected through structured close-
ended questionnaire in course of interviewing through personal contacts.
Tools for data collection
A questionnaire was designed to collect the data and the questions
relevant have been sequenced in such a way that they provide a free flow
of answers.
Ultimately to collect the primary data a detailed comprehensive &
structured schedule was framed as per the objectives of the study.
The schedule was a closed type consisting of multiple-choice
questions as the checklist type of questions so that several choices of
answers and in the some case, the respondents are required to manually
to express their view.
Plan of analysis
The entire questionnaire from the respondents was arranged & a
master chart was prepared from the master chart analysis& profiles of
respondents were chalked out by preparing table & group I.e. they were
analyzed with the help of statistical technique like averages percentage
etc, order to interpret the data and to draw conclusions.
Secondary data
Secondary data was collected from newspaper, health magazines,
books, periodical annual reports, industrial manual books etc.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 7
Marketing Of Boost
1.5. LIMITATIONS
1. In a study this kind, as the inference has to be drawn on opinions,
there is bound to be errors due to subjective factors.
2. This project work limited to the regular function of company
product & does not go in deep into function of different
departments.
3. The analysis has been done on the basis of the values &
information obtained in the balance of the company. The balance
sheet & its schedules gave only limited information regarding the
performance of the company.
4. The figures in the balance sheet may not be actual figures because
it as prepare on a particular.
5. The study will be restricted only to executive & staff of the
company as the information was gathered by the discussion with
them.
6. It was made with 3 techniques namely questionnaire, face-to-face
interview observation methods.
7. The data collected from the questionnaire will be made on the
assumption of the data are provided by the respondent are
accurate.
8. The study restricted Chikmagalur Town only. This study is based
on information collected. This study was carried out under time
construct. Hence I have drawn my conclusion with whatever little
response I could get.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 8
Marketing Of Boost
Chapter-2
Essence Of Health
Drink
2.1 INTRODUCTION
2.2 BALANCED DIET
2.3 MICRO NUTRIENTS
2.4 MACRO NUTRIENTS
2.5 NUTRITIONAL IMPORTANCE OF INGREDIENTS
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 9
Marketing Of Boost
CHAPTER-2
ESSENCE OF HEALTH DRINK
2.1. INTRODUCTION
Health is a state of complete physical, mental, social, and spiritual
well being as defined by the world health organization. Hence, physical,
mental and social health goes hand in hand.
“A Sound Mind In a Sound Body” is a well-known saying. Thus,
physical health has to be given utmost importance.
Striving for good health should start with the first light ray of the
rising sun. A morning walk, reading a newspaper, and then indeed a
nourishing health drink before one starts the routine work for earning a
livelihood.
A health drink is one that furnishes our body with the
essential nutrients and energy, which provide strength to perform our
duties with no flaw.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 10
Marketing Of Boost
There are many beverages, which are consumed by people such as
tea, coffee, etc. Yes they indeed stimulate our brains with increased
enthusiasm and transient, pseudo feeling of energy that enables us to do
work, but soon fades off. Then, the stimulation has to be given again.
This leads to a sort of addiction, which makes us mentally as well as
physically weak.
Hence, these kinds of brain stimulating beverages are not only less
useful but also some times harmful. Thus, we need a health drink which
is equivalent to the food we take i.e., a food drink which provides us
with the necessary nutritional constituents derived from natural food
products, that gets converted with energy in the body. This is a natural
way of obtaining energy.
Here is a discussion on the food drink produced & manufactured
by Glaxo SmithKline Consumer Healthcare Limited Company.
Boost is a malt health drink containing key vitamins & minerals
that help Boost energy.
` The ingredients that are added to these nourishing food drink are:
Milk solids, Malted barley, Malt extract, Sugar, Minerals &
Vitamins.
Nutrients acquired from these ingredients
1.Proteins.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 11
Marketing Of Boost
2.Carbohydrates.
3.Fat.
4.Vitamins viz, B1, B2, B6, B12, niacin, vitamin C&D.
5.Minerals viz, Iron, Iodine, Zinc, Calcium.
6.Folic Acid.
2.2. BALANCED DIET
A balanced diet is the order of the day. It is defined as one Which
contains a variety of foods in such quantities and proportions that the
need for energy, ammonia acids, vitamins, minerals, fats, carbohydrates
and other nutrients is adequately met for maintaining health, vitality and
general well being and also makes a small provisions for extra nutrients
to withstand any short duration of leanness.
To maintain a balanced diet is quite difficult because of various
reasons.
1. Lack of knowledge.
2. Person to person varying of tastes.
3. Consumption of time.
4. Season changes of food grains grown.
5. Non-availability of food grains due to famine, heavy rain etc.
6. Hike in food grain prices sometimes.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 12
Marketing Of Boost
Some Indian families overcoming all these difficulties try to
maintain a balanced diet, but sometimes go in vain.
Health drinks fill up the blank in their incomplete diet.
Let us know how a health drink helps in maintain good health by
studying the various nutrients of ingredients.
Nutrients are divided into: -
I) Micro – Nutrients, viz., minerals and vitamins.
ii) Macro - Nutrients viz., Proteins, carbohydrates and fats.
2.3. MICRO-NUTRIENTS:
They constitute vitamins and minerals.
1) Vitamins:
Health drink provides vitamins A, vitamin B1, B2, B6, B12,
vitamin C, vitamin D, Niacin and Folic acid.
Significance of these vitamins is explained below:
a) Vitamin A:
Sources:
Animal’s sources – Fish lever oil, milk, butter and egg.
Plant sources – green leafy vegetables, yellow fruits, and
vegetables.
Functions:
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 13
Marketing Of Boost
i. Helps in maintenance of normal vision.
ii. It is essential for skeletal growth
iii. It is required for the normal functioning of epithelium.
iv. It provides protection against cancer.
Daily requirements:
For adults – 750 mg
For children – 250 – 600 mg
Deficiency diseases:
Nigh blindness, growth retardation, anorexia.
b) Vitamins:
Vitamin B1 sources:
Plant sources: Cereals, gram, wheat, pulses, nuts, and fruits.
Animal sources: Meat, fish, eggs.
Functions:
It is essential for utilization of carbohydrates.
It helps in release of energy from food.
Daily requirements:
0.5 mg/1000 kilocalories of energy.
Deficiency diseases:
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 14
Marketing Of Boost
Beri – Beri.
C) Vitamin B2 sources:
Milk, egg, green leaves, vegetables, meat, cereals.
Functions:
It has a role in cellular oxidation.
Synthesis of enzymes required for energy metabolism.
Daily requirement:
0.6 mg/1000 kilocalories
Deficiency diseases:
Impaired wound-healing, ulcers in tongue, lips.
d) Vitamin B6 sources:
Milk, Meat, Fish , Cereals , Vegetables .
Functions:
It plays an important role in metabolism of amino acids, fats and
carbohydrates.
Daily requirement:
2mg/day
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 15
Marketing Of Boost
Deficiency diseases:
Peripheral neuritis.
E) Vitamin B12 sources:
Meat, Fish, Egg, Milk and Cheese.
Functions:
Helps in synthesis of D.N.A.
Daily requirement:
One microgram.
Deficiency diseases:
Anemia, neurological abnormality.
E) Vitamin C sources:
Fresh fruits, green leafy vegetables, meat, fish.
Functions:
Protection against infections
It helps is bone and cartilage formation.
Daily requirement:
40-60 micrograms.
Deficiency diseases:
Bleeding gums delayed wound-healing, anemia.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 16
Marketing Of Boost
F) Vitamin D sources:
Sunlight, egg yolk, milk, butter, cheese.
Functions:
It is essential for normal mineralisation of bone.
It is essential for normal growth.
Daily requirement:
Micro grams per adults.
5 micro grams for children’s
10 micro grams for pregnant women.
Deficiency diseases:
Rickets characterized by growth failure, osteomalacia mainly
during lactation and pregnancy.
G) Niacin:
Milk is poor source of Niacin vitamin.
Source: Fish, poultry, legumes, groundnut.
Functions:
It is essential for metabolism of carbohydrates, fats.
It is essential for normal functioning.
Daily requirement:
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 17
Marketing Of Boost
6.6 mg/1000 kilocalories
Deficiency diseases:
Pellagra, a disease that causes great suffering in undernourished
people.
2. FOLATE:
Source: Leafy vegetables, fruits, egg and milk.
Functions:
Helps in development of blood cells.
Daily requirement:
5-10 mg
Deficiency diseases:
These are common in pregnancy and lactation.
3. MINERALS:
A) Calcium:
Sources: Cereals, green leafy vegetables.
Functions:
It is essential in formation of bones and teeth.
Daily requirement:
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 18
Marketing Of Boost
400-500mg of calcium.
B) Iron:
Sources: Cereals, green leafy vegetables, jaggery.
Functions:
It helps in maintaining body temperature.
Daily requirement:
Infants – 0.7 mg
Children – 1mg
Adults – 0.9 mg
Female: During menstruation time – 2.8 mg.
Deficiency diseases:
Anemia.
C) Iodine:
It is an essential micronutrient.
Sources: Milk, meat, vegetables, cereals in small amount.
Functions:
It is essential for normal growth.
Daily requirement:
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 19
Marketing Of Boost
150mg/day.
Deficiency diseases:
Goiter, mental defect.
D) Zinc:
Sources: Meat, milk, fish.
Functions:
Required for synthesis of insulin by pancreases.
Daily requirement:
5-10 mg
Deficiency diseases:
Growth failure, loss of taste.
2.4. MACRO NUTRIENTS:
1) Proteins:
They are made up of ammonia – acids at lest 20 amino acids are
needed to make up a protein.
Sources of proteins:
Animal sources are rich in essential amino acids e.g. milk.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 20
Marketing Of Boost
Plant sources are rich in non-essential amino acids but essential
amino acids are less abundant.
Functions:
Body building particularly in infants and children.
Repaid and maintenance of body tissues.
Daily requirement:
1gram per kg body weight for an Indian adult.
Deficiency diseases:
Protein energy malnutrition in children.
2) Carbohydrates:
Sources: Cereals, roots, tubers, fruits and grains.
Functions:
Carbohydrates are the main source of energy. It provides 4 kcal of
energy per gram.
3) Fats:
Fats are concentrated sources of energy. They constitute 10-15% of
body weight.
Source:
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 21
Marketing Of Boost
Plant sources: Groundnut, cereals, pulses.
Animal sources: Ghee, butter, milk, cheese and eggs.
Functions:
Food provides 9 calories of energy per gram.
Deficiency diseases:
Phrenoderma, a condition consulting rough and dry skin.
2.5. NUTRITIONAL IMPORTANCE OF THE INGREDIENTS:
1. Wheat flour:
It contains, fat, carbohydrates, niacin, minerals, energy (345
kilocalories).
2. Milk solids:
Milk fat is rich in retained and vitamin D. Milk solids contain
lactose sugar, which is a carbohydrate. They are a good source of
calcium and contain almost all the minerals.
3. Malted barley:
Barley is a cereal plant and an edible grain. It has nut like flavor.
It is rich in carbohydrates with moderate quantities of protein, calcium,
and phosphorous and small amounts of vitamin B.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 22
Marketing Of Boost
CHAPTER – 3
COMPANY
PROFILE
3.1. HISTORY OF GLAXO SMITHKLINE CONSUMER HEALTH
CARE LTD.
3.2. PERFORMANCE OF THE COMPANY
3.3. ADDITIONAL INFORMATION
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 23
Marketing Of Boost
CHAPTER – 3
COMPANY PROFILE
3.1. HISTORY OF GLAXO SMITHKLINE CONSUMER HEALTH CARE
LTD.
Glaxo SmithKline consumer Healthcare Limited (GSK) is an India-
based company that operates mainly in the food processing industry. The
company manufacturers and markets malted milk food products, malted
food products and biscuits. The company’s products are marketed under
the Viva, Boost, Horlicks, Maltova, and other brand names. During the
year ended, the company sold its products throughout India, as well as
reported to a number of foreign countries, including Bangladesh,
Myanmar, Sri Lanka, Middle East, Hong-Kong, Malaysia, Fiji, Mauritius,
Nepal and Bhutan.
Glaxo SmithKline Consumer Health Care Ltd is one of the largest
players in the health food drinks industry in India. The company, with
its manufacturing plants located in Nabha, Rajahmundry and Sonepat,
has a total workforce of over 2700 people, each driven by a spirit of
enterprise.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 24
Marketing Of Boost
Its flagship product, Horlicks, is a highly respected brand, which is
over 100 years old in India. The company also manufactures and
markets Boost, Viva, Maltova, and Biscuits and in addition promotes and
distributes a number of products in diverse categories, including
prominent brands such as Eno, Crocin and Iodex.
Glaxo SmithKline Consumer Health Care Ltd., has a strong
marketing and distribution network in India comprising over 1800
wholesaler and direct coverage of over 4,00,000 retail outlets.
Glaxo SmithKline Consumer Health Care Ltd., business is based
on scientific innovation. The company has dedicated consumer
healthcare research and development centers and takes research as
seriously as marketing excellence, offering cutting edge capability in
both.
An Indian associate of Glaxo SmithKline Company has
concentrated in three business areas –
a. Consumer health care
b. Clinical laboratories
c. Pharmaceuticals.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 25
Marketing Of Boost
All of which maintain leadership positions within their respective
industries. Glaxo SmithKline company has over 1,00,000 people in 116
countries.
Glaxo SmithKline expects employees to meet high ethical
standards in all aspects of business by conducting activities with
honesty and integrity, adhering to corporate responsibility principles and
complying with applicable laws and regulations. Glaxo SmithKline audits
its operations to ensure relevant standards expected, such as those in
marketing practices, are reached or exceeded.
Commitment to the GSK code of conduct is reinforced each year by
a senior management certification programme, and in 2005 over 12.000
managers certified they had complied with “performance with integrity”
principles. The structure of this business was redesigned in 2004 in
order to focus on brands and their growth opportunities.
3.2. PERFORMANCE OF THE COMPANY:
1. Sales:
Sales for 2013 increased by 12.9%driven primarily by volume
increases.
2. Other income:
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 26
Marketing Of Boost
Other income declined marginally by Rs. 79.02 lakhs primarily due
to higher write backs of provisions in the previous year, which were no
longer required and higher interest on income tax refunds in 2009.
3. Expenditure:
During the year, input cost of raw material, packing material and
finished goods, as a percentage to sales has reduced to 29% as against
31.8% last year mainly due to lower input costs (particularly liquid milk
and skimmed milk powder). This decline also includes a considerable
reduction in the purchase of finished goods Viva, Maltova from Jagatjit
Industries Ltd., for the purpose of exports (from Rs.808.75 lakhs in 2009
to Rs. 1,57.38 lakhs in 2013) staff cost includes an amount of Rs. 4,57.7
lakhs towards one-time encashment of accumulated leave balances,
being a change in leave encashment policy for eligible management
personnel.
The company continued to invest behind the brands and
consequently advertisement and promotion expenses increased as a
percentage of sales from 11.3% to 12.6%.
4. Profit before taxation:
Profit before taxation amounted to Rs.1, 62, 42.02 lakhs and has
increased by 40.4% over previous year Rs.1, 15, 67, 52.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 27
Marketing Of Boost
5. Provision for taxation:
The company has made provisions for taxation for the year
amounting to Rs.58, 74.99 lakhs (including deferred tax and provision
for fringe benefit tax) on profit before tax. The effective tax rate for the
year is 36.2% as against the 36.9% last year mainly due to the favorable
impact on deferred tax and reduction in the corporate taxation rates.
Provision for fringe benefit tax, introduced during the year, amounted to
Rs.4, 16.00 lakhs.
6. Return on capital employed:
Consequent to the increase in profits of the company the return on
capital employed (average) during the year increased to 32.3% from
22.6% last year.
The present board of directors of the company:
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 28
Marketing Of Boost
Mr. Simon Scarff Non Executive Chairman
Mr. Zubair Ahmed Managing Director
Mr. Ashok Dayal Non Executive Chairman
Mr. Praveen G.K. Directors operations
Mr. Chakraborty Director, Finance and IT
Mr. Ian Mcpherson Non Executive Chairman
Mr. Kunal Kashyap Non Executive Chairman
Mr. P. Dwarakanath Non Executive Chairman
Mr. P. Murari Non Executive Chairman
Mr. Lawrenece Calp Non Executive Chairman
Mr. Subodh Bhargava Non Executive Chairman
Mr. Nicholas J. Massey Managing Director
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 29
Marketing Of Boost
Balance sheet
Dec ' 10 Dec ' 09 Dec ' 08 Dec ' 07 Dec ' 06
Sources of funds
Owner's fund
Equity share
capital 42.06 42.06 42.06 42.06 42.06
Share application
money - - - - -
Preference share
capital - - - - -
Reserves &
surplus 917.98 863.04 718.82 604.29 500.66
Loan funds
Secured loans - - - - -
Unsecured loans - - - - -
Total 960.04 905.1 760.88 646.35 542.72
Uses of funds
Fixed assets
Gross block 598.96 558.48 539.47 523.68 521.69
Less : revaluation
reserve - - - - -
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 30
Marketing Of Boost
Less :
accumulated
depreciation 396.71 364 329.24 297.65 270.32
Net block 202.25 194.48 210.23 226.02 251.36
Capital work-in-
progress 108.33 37.79 16.33 17.31 6.53
Investments - - - 297.84 219.68
Net current assets
Current assets,
loans & advances 2,191.40 1,737.34 865 378 302.35
Less : current
liabilities &
provisions 1,541.94 1,064.50 330.68 272.82 237.2
Total net current
assets 649.46 672.83 534.32 105.18 65.15
Miscellaneous
expenses not
written - - - - -
Total 960.04 905.1 760.88 646.35 542.72
Notes:
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 31
Marketing Of Boost
Book value of
unquoted
investments - - - 297.84 219.68
Market value of
quoted
investments - - - - -
Contingent
liabilities 335.09 59.92 72.85 7.03 3.86
Number of equity
sharesoutstanding
(Lacs) 420.56 420.56 420.56 420.56 420.56
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 32
Marketing Of Boost
Profit loss account 2013
Dec ' 10 Dec ' 09 Dec ' 08 Dec ' 07 Dec ' 06
Income
Operating
income 2,359.45 1,976.97 1,584.33 1,307.88 1,139.28
Expenses
Material
consumed 866.86 715.78 587.62 444.27 386.13
Manufacturing
expenses 223.18 191.99 175.88 143.85 132.4
Personnel
expenses 229.66 200.7 171.95 154.94 136.38
Selling
expenses 484.09 392.32 272.15 230.39 205.61
Adminstrative
expenses 111.95 110.99 91.52 72.88 66.5
Expenses
capitalised - - - - -
Cost of sales 1,915.74 1,611.78 1,299.12 1,046.33 927.02
Operating
profit 443.71 365.19 285.21 261.56 212.26
Other
recurring
income 55.05 35.62 44.12 31.49 23.38
Adjusted
PBDIT 498.76 400.82 329.33 293.04 235.64
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 33
Marketing Of Boost
Financial
expenses 2.6 4.27 6.97 4.61 3.53
Depreciation 39.71 42.02 41.95 43.49 42.71
Other write
offs - - - - -
Adjusted PBT 456.45 354.52 280.42 244.94 189.4
Tax charges 152.25 123.69 95.75 82.46 63.66
Adjusted PAT 304.2 230.83 184.66 162.48 125.74
Non recurring
items -4.64 -0.66 3.67 0.18 1.17
Other non
cash
adjustments 0.59 2.61 - 0.02 0.03
Reported net
profit 300.14 232.78 188.33 162.68 126.93
Earnigs before
appropriation 421.08 232.78 188.33 162.68 126.93
Equity
dividend 210.28 75.7 63.08 50.47 42.06
Preference
dividend - - - - -
Dividend tax 34.92 12.87 10.72 8.58 5.9
Retained
earnings 175.88 144.22 114.53 103.63 78.98
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 34
Marketing Of Boost
CHAPTER-4
PRODUCT
PROFILE
4.1 INTRODUCTION
4.2 NUTRITION FACTS
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 35
Marketing Of Boost
CHAPTER-4
PRODUCT PROFILE
4.1. INTRODUCTION:
In India Glaxo SmithKline Consumer Healthcare is a leading
consumer healthcare company. It has launched many products, which
have been successful in the consumer market.
There are many successful products of Glaxo SmithKline
Consumer Healthcare Company. They are the main and unique health
drinks manufactured by the company. They differ in their contents,
color, taste etc., but they are nutritious and unique in their quality.
The difference in variety is only to satisfy likes and needs of the
customers.
Food drinks are almost popular in any part of the world. Another
plus point for these food drinks to become world wide is that they are
permitted and approved by the health personnel also.
Tea, coffee and other beverages though preferred by many people
act as only brain stimulants but are not nutritious. All knows the
shortcomings of these beverages.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 36
Marketing Of Boost
Any other beverages can never ever replace food drinks when
health is considered as a basic point.
Hence it is wiser to choose a useful, harmless health promoter
daily beverages than a transient brain stimulant harmful beverage.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 37
Marketing Of Boost
PRODUCT DESCRIPTION:
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 38
Marketing Of Boost
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-thing about the brand strategy. A deeper understanding of
purchase dynamics of the category revealed that by the latter 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.
Infused with this insight, Boost was consequently repositioned. It
pushed forward the association of kids of this age group with cricket.
This has since remained a winning strategy.
Boost product:
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 39
Marketing Of Boost
Boost is a malt-based drink in chocolate flavor, with the brand
philosophy being to continuously innovate and pioneer changes in the
category.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 40
Marketing Of Boost
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 41
Marketing Of Boost
In 2002, the brand created history by re-launching boost with
Power BosstersTM, a completely different product from any other health
food drinks (HFD). The new boost contains copper and biotin, in
addition to its extant composition of vitamins and minerals. Two serves
of new boost (approximately 30gms) as per the CODEX aliment arias
commission of the world health organization, 1995, provide 50% of the
daily requirement of vitamin B1, B2, B3, B12, A, C, D, Niacin, antithetic
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 health food drink in India.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 42
Marketing Of Boost
To reach its audiences it has extended itself by evolving numerous
below-the-line initiatives. An extensive school contact programme covers
over 3,60.000 students each year across the country and the Boost
Cricket Cup encourages and identifies genuine cricketing talent amongst
kinds. It is platform that gives under-16 players an opportunity to show
their talent and gain confidence in playing cricket at national and
international levels. When the cup was launched in 2002, 113 schools
participated with Sachin Tendulkar and Virender Sehwag inaugurating
the tournament. Not surprisingly, the brand has grown at a cumulative
annual growth rate of over 8% in the last four years in a period when the
category itself has not shown much growth.
At the same time boost is also playing the role of creating more
sophisticated business practices in product segment. It is working on
products with further valve addition, enlarging its presence in rural
markets, and developing a sizeable expert out of home consumption is
plank, another area where there appears to be bright prospects for the
brand.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 43
Marketing Of Boost
Already, through vending machines at strategically located points
like institutions, a start has been made in this direction. By now
combining nutrition and taste with convenience, the brand looks all set
to reach out to a wider group of consumers and a different range of
usage occasions all at once.
Promotion:
Cricket has been the cornerstone of Boost’s brand promotions.
This sport commands unique passion in India, among children in
particular. Boost’s energy offering is also uniquely suite dot this
situation – after all, to play quality cricket and last the duration of a
cricket match loads of energy are required. Therefore India’s most
famous cricket stars, particularly those with a humungous following
among children, have successively endorsed boost.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 44
Marketing Of Boost
Kapil Dev, who was the country’s most charismatic cricketer in the
1980s, flagged this off. In the 1990s, the baton passed to Sachin
Tendulkar, who emerged in the early 1990s as a baby faced teenager and
instantly became the heartthrob of millions of cricket crazy Indians,
especially young children. Sachin has remained steadfast in his support
for boost with explosive batsman Virender Sehwag joining the little
master as brand ambassador in 2001.
The on pitch chemistry between India’s opening duos has
continued beyond cricket and the cricket pitch or so it would seem when
viewing the commercials starring the two.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 45
Marketing Of Boost
Brand values:
The personality of the boost brand is distinctly sporty and
energetic and everything – from the tone of communication to packaging
– is done to reflect this vibrant energy. Today, the colour red and ‘Boost
is the secret of my energy’ have become synonymous with the brand.
Things you didn’t know about boost:
Boost has a household penetration of 40%, 45% in several cities
and towns in south India, the brand’s stronghold. In towns like Chennai
and Madurai this penetration exceeds 50% among section A and B
households and 40% among all households (Source. IMRB panel data
Jan-Dec 2003).
Sachin Tendulkar appeared in a boost advertisement for the first
time at the age of seventeen.
The kid, who started in the boost advertisement with Kapildev,
went on to become a member of the Indian cricket team – Nikhil Chopra.
There is a range of interesting products prepared with boost, which
cater to local tastes: the boost ‘barfis’, for example, in certain parts of
south India.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 46
Marketing Of Boost
Boost has the highest frequency of purchase among all brown
powders in India (Source: IMRB Household panel). Boost is the fastest
growing brand (2003 over 2002) among the top five health food drinks in
India. (Source: Acnielsen Retail survey, 2003).
4.2. NUTRITION FACTS:
Nutrition facts of boost
Nutrients (%) Percentage of daily
requirements
Vitamin B2 50
Vitamin B6 50
Vitamin B1 50
Vitamin B12 50
Niacin 50
Pantothenic acid 50
Folic acid 50
Iron 50
Vitamin A 50
Vitamin C 50
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 47
Marketing Of Boost
NUTRITION FACTS OF BOOST
50 50 50 50 50 50 50 50 50 50 50
45
40
35
PERCENTAGE
30
25
20
15
10
5
0
Vitamin B2 Vitamin Folic acid Vitamin C
B12
NUTRIENTS
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 48
Marketing Of Boost
CHAPTER-5
A CASE STUDY OF
KHARIDHI
DISTRIBUTORS
CHIKMAGALUR
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 49
Marketing Of Boost
CHAPTER-5
A CASE STUDY OF KHARIDHI
DISTRIBUTORS CHIKMAGALUR
5.1. INTRODUCTION:
A company’s goal can be achieved only when its products are
circulated to every nook and corner of the country, where there is a
demand. The company fulfills this demand by employing middlemen like
wholesalers, retailers, distributors etc.
Middlemen like the distributors play a vital role as they receive the
products from the company’s depot and distribute them to cover the
whole of the concerned area of marketing.
KHARIDHI DISTRIBUTORS is one such distributor whom we are
concerned with as they are the main distributor of the products of Glaxo
SmithKline Consumer Healthcare, to Chikmagalur.
A STUDY OF KHARIDHI DISTRIBUTORS:
KHARIDHI DISTRIBUTORS was established in the year 2004. The
proprietor, a single owner who manages the business, runs the agency.
The premises has got spacious are measuring 30x20” which is
sufficient for storing and marketing the products.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 50
Marketing Of Boost
This firm is the prime distributor of SmithKline Consumer
Healthcare products to Chikmagalur. It gets its stock from the
Chikmagalur depot.
The turnover of the agency is Rs.15,00.000/- every month and the
total expenditure of the agency every month is 2% of the turnover.
SYSTEM OF MARKETING OF KHARIDHI DISTRIBUTORS:
SRI RAMA distributor is situated in the central part of
Chikmagalur Town, thus making marketing of the products comfortable.
This agency has adopted door delivery method. It books the orders
from wholesalers and retailers and arranges for the immediate delivery of
the products to their doorstep.
The agency sells its products both on cash and credit basis. The
credit given on products is recovered within one week of the delivery of
products.
This agency is successful in fulfilling the demands of the
consumers in Chikmagalur .
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 51
Marketing Of Boost
System of delivery:
The agency has appointed three salesmen and two delivery boys for
the delivery of the products to its customers. It is also has the facility of
vehicles that is an Omni van for the delivery of products to the spot.
It drives the entire area of coverage into sub areas in Chikmagalur,
covering them as per the schedule prepared for a week.
The agency cover 1000 outlets in Chikmagalur Town and 60
outlets.
P R O P R IE T O R
S a le s m e n - 3 A c c o u n ta n t - 1
D e liv e r y b o y s -2 D r iv e r - 1
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 52
Marketing Of Boost
ORGANIZATION OF KHARIDHI DISTRIBUTORS:
Different brands of Glaxo SmithKline Consumer Healthcare Ltd.,
handled by SRI RAMA. Distributors, Chikmagalur.
Product Packing
Horlicks ½ kg, 1kg, 2kgs, 3kgs, jars,
½kg, 1kg, 2kg, refill
Chocolate Horlicks ½kg jar, ½kg refill
Junior Horlicks ½kg jar, ½kg refill
Horlicks biscuits 100gms, 200gm, pack with elaichi
flavor, 100gms, 200gms, plain
Boost ½ kg, 1kg, 2kgs, jars
Boost biscuit 15gms, 100gms, 200gms, pack
Crocin tablets A pack of 10 strips
Crocin syrup 200ml bottle
Aqua fresh toothpaste 5g, 100gm, 150gms
Crocin drops 15ml
Crocin DS 60ml
Crocin suspension 60ml
Eno R 100gm
Iodex B 50g
Iodex PC 10g
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 53
Marketing Of Boost
COVERAGE AREAS:
Weeks Routes
Monday Vijayapura surrounds
Tuesday Bypass road
Wednesday Kote
Thursday MG and IG road
Friday City outlets
Saturday Jayanagara
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 54
Marketing Of Boost
CHAPTER-6
MARKETING
STRATEGY
INTRODUCTION
MEANING AND DEFINITION OF MARKETING STRATEGY
MARKETING MIX STRATEGY OF BOOST PRODUCTS
A) PRODUCT STRATEGY
B) PRICE STRATEGY
C) PROMOTION STRATEGY
D) PLACE STRATEGY
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 55
Marketing Of Boost
CHAPTER-6
MARKETING STRATEGY
6.1. INTRODUCTION:
MARKETING:
Marketing is a comprehensive term, which includes human
activities directed towards satisfying needs and wants, once the need is
identified the product or service is produced, stored, promoted price
fixed, transported the terms of exchange negotiated and service accrued.
Marketing study has become almost as broad as business. The
new and growing application of marketing concept not only in the
organization of a business but in all aspects of its operations has
resulted in major shifting of emphasis from production orientation to
customer wants and needs of that product.
6.2. MEANING AND DEFINITION OF MARKETING STRATEGY:
Marketing strategy is blending of combination of four elements
namely, product, price, place and promotion.
Marketing strategy is an important tool used by marketing
manager to design the process. Marketing in an organization. It is a
plan design to analyses the marketing problems.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 56
Marketing Of Boost
It is a comprehensive term and includes all resources and a set of
activities necessary to direct and facilities the flow of goods and services
from producer to consumers.
According to businessmen, marketing has twin activities:
a) Matching the producer or service with demand.
b) Transfer of ownership and possession of the flow of goods from
primary to ultimate consumers.
Definition:
American marketing association defines “marketing is the process
of planning and distributions of ideas, goods and services to create
exchange that satisfy individual and organizational objectives”.
Prof. Philip Kotler says, “marketing is the analysis, planning,
implementation and control of programs designed to bring desired
exchanges with target audiences for the purpose of personal and mutual
gain. It relies heavily on the adaptation and co-ordination of product,
price, promotion and place for achieving response”.
A strategy is what you are going to do a marketing strategy is the
link between a product and the market. It is translated into an action
plan through the tools of marketing management. These tools together
called marketing strategy.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 57
Marketing Of Boost
Marketing mix:
Marketing mix is the combination of four elements namely
product, price physical distribution (place) and promotion.
According to Prof. Kelly and Leser, “marketing strategy is
composed of a large battery of devices which might be employed to
induce consumers to buy a particular product”.
Nature of marketing strategy:
Marketing strategy is a dynamic process it changes in needs of the
customers. Marketing strategy is a difficult task as it involving the
blending of decision in 4 different areas of marketing i.e., the product,
price, promotion and place.
Basic objectives of marketing strategy:
The basic objective of marketing strategy is to satisfy the needs of
the customers in the most economical manner. The emphasis of
marketing strategy is on how to satisfy the needs of the customers
effectively.
Marketing strategy:
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 58
Marketing Of Boost
Marketing strategy is to total and unbeatable instrumental or a
plan shaped and designed specifically for attaining the marketing
objectives of a firm. A marketing mission and objectives tell us to where
we want to go and marketing strategy provides us with the grand design
for reaching out these.
6.3. MARKETING MIX STRATEGY OF BOOST PRODUCTS:
1) Production strategy:
Product:
A product is anything that can be offered to a market to satisfy a
want or need. Products that are marketed include physical goods,
services, experiences, persons, places, properties, organizations,
information’s and ideas.
Product strategies:
The product is the focus of marketing efforts, product is the sum
total of physical and psychological satisfaction it provides to the buyer
product strategies are the composite of products offered for the firm, over
a period of time. A product strategy of a company comprises the plan for
marketing its products, the company develops a product design to
achieve the set objectives, it will have product program suitable to the
product position in the life cycle.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 59
Marketing Of Boost
Product design:
The marketing starts with designing the product in a way, which is
required, by the target consumer’s product design is an important factor
in sale of many products. Product designed properly enhance their
utility, attractiveness, safety and appear, good design, therefore increase
sales volume minimizes service and reduces transportation charges.
Product package:
Packaging is the general group of activities in designing the
containers or wrappers for products. A good packages protects the
products provides conveniences increase. Economy and communicates.
It makes possible easy brand identification, prevents, substitution and
short weight and an element of advertising and sales promotion.
Package protect the products against deterioration preserve
freshness and flavor, insure against evaporation losses and physical
change due to climate conditions, diminishes loss from handling. It
provides greater consistence to both the consumer and dealers.
Functions of package:
a) To assemble and arrange the contents in the desired form.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 60
Marketing Of Boost
b) To identify the product and carry brand name.
c) To facilitate transporting, storing and warehousing handling.
d) To facilitate retailer function.
Branding policy:
Boost is one of the health drinks of Glaxo SmithKline consumer
health care limited. The Glaxo SmithKline consumer health care limited
company market products i.e., full company products under the brand
name “GSK”. All these products manufactured by the company will have
the brand name printed. Because of the popularity of the “GSK” brand,
it is easy for the dealer to market the products without much difficulty. It
is also advantages on part of the consumer to purchase “GSK” products
without any suspect about the quality of the product.
The company’s brand name is very popular because the name has
got the monopoly over the marketing of health care products
manufactured by the company.
2. Pricing strategy:
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 61
Marketing Of Boost
Price is one of the element of the marketing mix that produces
revenue the other elements produce costs. Prices are the easiest
marketing mix element to adjust product features, channels, and even
promotion take more time price also communicates to the market the
company’s intended value position of its product or brand.
Price is a major marketing tool and help in directing the product to
a specific consumers segment price is the value of a product expressed in
terms of money price is powerful instrument in which both the buyers
and sellers are keenly interested.
The right price can be determined through the price research are
by adopting the test marketing techniques, decisions concerning price to
be follow for a period of time may be called price policies. A manufacture
is not free to adopt his own price policies but his pricing must be aimed
at offering a reasonable price to the customer, ensuring of fair return on
investment price to the customer and the manufacturer, the modern
manufacturer must not only know the worth of his products but he must
also know the competition offer.
Several factors influencing the decisions in determining price –
1) Demand for the product
2) Target share of the market
3) Competitive reactions
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 62
Marketing Of Boost
4) Other parts of marketing mix, i.e., product distribution channel
and promotion.
The price of the product based on different method:
1. Method based on cost:
a) Cost plus method
b) Marginal cost price policy
c) No cost profit policy
d) Rate of return pricing policy.
2. Method based on market conditions.
a) Skimming the cream policy
b) Penetration pricing policy
c) Leadership pricing policy
d) Establishing pricing policy.
Selling pricing policy:
The firm or company has to consider many factors in selling its
pricing policy.
a) Selecting the pricing objectives
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 63
Marketing Of Boost
b) Determining demand
c) Estimating costs
d) Analyzing competitors costs, price and offers
e) Selecting a pricing method
f) Selecting the final price.
Pricing policy:
Price is very important element in marketing mix as realized by
Glaxo SmithKline consumer health care limited. Therefore management
of the company keeping in view of the following objectives very carefully
forms the pricing decisions or policies.
a) To maximize their profit
b) To acquires good market positions
c) To face their competitors
d) To keep price stable.
The price or the various products, especially the health care
products of Glaxo SmithKline consumer health care limited, are done
after a careful and through investigation of the cost of goods, the market
position, and the competitors the rise in price etc.
3. Promotion strategy:
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 64
Marketing Of Boost
Promotion mix includes all the activities of the company it makes
to communicate and promote its products to target customers. Its
program consists of advertising sales promotion, public relation and
direct and on the line marketing. The term promotion is very often
needed, as a synonymous world for selling, but selling is narrow is a
broader term and includes varieties of activities. Promotion involves the
creation and expansion of demand. After product planning and
development it is introduced in the market and its demand is enhanced
through the promotional activities.
Various factors affecting promotion mix:
a) Money allocated for promotion
b) Nature of the market
c) Nature of the product
d) Stage of product life cycle.
Promotion is conducted through four popular method advertising,
sales promotion, public Town and public relations. All these methods,
when planned and mixed in appropriate proportional yield excellent
results. The fair methods are briefly mentioned.
PubliTown:
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 65
Marketing Of Boost
Publi Town is a sale and is any non-personal presentation of
goods, services or ideas to a group.
Publi Town makes a thing or an idea to know to people promotion
mix is generally influenced by factories. A good promotional Mix involves
the co-ordination of sales force activities advertising program and other
promotional efforts the development of promotional program involves 5
types.
a) The communication has to identified the target
b) An effective message must be designed
c) Total promotional budget just be established.
d) The promotional budget must be decided among the main
promotional tools.
e) Both personal and non-personal channels must be related.
Advertising:
Unidentified sponsor defines advertising as any paid form of non-
persons presentation and promotion of goods, services, or idea.
Advertising is informative and educative to consumer. The effect of
advertising is more of indirect nature than direct. But it is very helpful in
creating brand image.
Sales promotion:
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 66
Marketing Of Boost
Sales promotion is refused to activities, which stimulate consumer
purchasing and effectiveness. Sales promotion effects are usually short
term and therefore are used to achieve short term objectives like
branding boosting sales, test marketing image building etc.
Public relations:
It involves the method installation and maintenance of mutual
understanding between a firm and all who are likely to come in contact
with it. These sections of society are customers, shareholders
administration staff and general public. It is the art and science of
developing reciprocal understanding and goodwill.
4. Place strategy:
It means distributing the goods to various places where there is a
demand for their goods. This plays a very important role in the
marketing mix. It stands for making management for the smooth flow of
goods and services from the producer to consumers. It is concerned with
the creation of place, time and possession utilities.
In distribution process middleman or intermediaries plays a very
important role. They unsure smooth flow of goods and services they are
commonly called as distribution channels. Distribution includes
channels of distribution transpiration warehousing and inventory
control.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 67
Marketing Of Boost
Importance of physical distribution mix:
It is a marketing term to describe the broad range of activities
concerned with the efficient movement of finished products from the end
of production line to the consumer. While our products may be
acceptable to the consumer due to the awareness created through
marketing. Distribution ensures that it is converted to sales.
Distribution helps in building the relationship with our customers thus
ensuring continues growth in our business.
Following are the distribution activities:
Market coverage
Outlet coverage
Frequency of service to markets and outlets
Ensuring product availability
Providing support to retailers
Collecting payments.
Distribution mix stands for the matching arrangement for the
smooth flow of goods and services from the producers to the consumers.
It is concerned with creation of place, time and possession utilities.
Distribution strategy adopted by Glaxo SmithKline Consumer
Healthcare Limited:
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 68
Marketing Of Boost
The company recognizes distribution as an integral post of its
management function. The management feels that it faces a number of
intimate problems and dilema’s. Where distribution is concerned the
goods have to be distributed at minimum possible cost. Yet a reasonable
satisfactory level of service has to be maintained. Distribution level
networks have to reach for a wide and yet close control on distribution
activities have to be constantly exercised.
The company will distributes the product on receive of the
quotations from the dealers. The distribution will be done on behalf of
the company upto the door of the dealer stores.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 69
Marketing Of Boost
CHAPTER-7
CONSUMER
SURVEY
ANALYSIS
7.1. INTRODUCTION
N
7.2. CONSUMER SURVEY ANALYSIS
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 70
Marketing Of Boost
CHAPTER-7
CONSUMER SURVEY ANALYSIS
7.1. INTRODUCTION:
Consumer is the king and pivot around which all the business
thinking of the marketers rotate. The marketers are aware of the fact
that consumers are the arbiters of fortune in their business because it is
the consumer’s response towards their products that decides the gain or
loss of the company. Hence, marketer’s main target is customer
satisfaction, which is the hope of survival of their firm in the market.
The marketers have to satisfy the customer to his fullest in various
aspects such as price, quality, offers etc., which delights him.
However, the likes and dislikes vary from customer to customer
which depend on their buying habits, family income, motives and
attitudes.
To sketch out the customer’s desires and demands, a search has
to be undertaken of their minds. This is possible only through
conducting a survey. Hence, to know the consumers attitude towards the
health food drinks of Glaxo SmithKline consumer healthcare, a sample
survey has been undertaken and its report is presented hereby.
The total numbers of respondents interviewed are 50, the
respondents being selected by random sampling.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 71
Marketing Of Boost
7.2. CONSUMER SURVEY ANALYSIS:
TABLE-1: CLASSIFICATION OF RESPONDENTS ON THE BASIS OF
AGE GORUP (IN YEARS)
Age group (in years) No. Of Percentage (%)
respondents
5-10 - -
10-15 12 24
15-20 8 16
20 and above 30 60
Total 50 100
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 72
Marketing Of Boost
CHART SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF AGE
GORUP
60
60
50
E40
G
A 24
T30
N
E 16
C20
R
E
P
10
0
10-15 15-20 20 and above
AGE IN YEARS
The above table reveals that 24% of the respondents are between
the age group of 10-15 years, 16% of respondents are in the age group of
15-20 years, and 60% of respondents are in the age group of 20 and
above.
TABLE-2: CLASSIFICATION OF RESPONDENTS ON THE BASIS OF
SEX
Sex No. Of Percentage (%)
respondents
Male 29 58
Female 21 42
Total 50 100
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 73
Marketing Of Boost
CHART SHOWING CLASSIFICATION OF RESPONDENTS ON
THE BASIS OF SEX
42%
58%
Male Female
The above table reveals that 58% of the respondents are male and
the remaining 42% of respondents are female.
TABLE-3: CLASSIFICATION OF RESPONDENTS ON THE BASIS OF
MONTHLY INCOME (Rs.)
Monthly income (Rs.) No. Of Percentage (%)
respondents
Below 5000 6 12
5000-10000 12 24
10000-15000 13 26
15000 and above 19 38
Total 50 100
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 74
Marketing Of Boost
CHART SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF MONTHLY
INCOME
38
40
35
26
30
24
PERCENTAGE
25
20
12
15
10
0
Below 5000 5000-10000 10000-15000 15000 and above
From the above table it is clear that 12% of respondents are in the
monthly income of below 5000, 24% of respondents are in the monthly
income of 5000-10000, 26% of respondents are in the monthly income of
10000-15000, 38% of respondents are in the monthly income of 10000-
15000, 38% of respondents are in the monthly income of 15000 and
above.
TABLE-4: CLASSIFICATION OF RESPONDENTS ON THE BASIS OF
HEALTH DRINK BRANDS
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 75
Marketing Of Boost
Brands No. Of Percentage (%)
respondents
Boost 36 72
Complan 3 6
Maltova 1 2
Horlicks 1 2
Bournvita 6 12
Others 3 6
Total 50 100
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 76
Marketing Of Boost
CHART SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF HEALTH DRINK
BRANDS
80 72
70
60
PERCENTAGE
50
40
30
20 12
10 6 6
2 2
0
Boost Complan Maltova Horlicks Bournvita Others
Form the above table it is clear that 72% of respondents prefer to
purchase boost health drink, 6% of respondents prefer to purchase
complan health drink, 2% of respondents prefer to purchase Maltova
health drink, 2% of respondents prefer to purchase Horlicks health
drink, 12% of respondents prefer to purchase Bournvita health drink, 6%
6% of respondents prefer other brands.
TABLE-5: CLASSIFICATION OF RESPONDENTS ON THE BASIS OF
USING PERIOD OF BOOST HEALTH DRINK
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 77
Marketing Of Boost
Years No. Of Percentage (%)
respondents
Below 1 year 3 6
1-2 8 16
2-3 9 18
3 and above 30 60
Total 50 100
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 78
Marketing Of Boost
CHART SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF USING PERIOD OF
BOOST HEALTH DRINK
60
60
50
PERCENTAGE
40
18
16
30
6
20
10
0
Below 1 year 1-2 2-3 3 and above
From the above table it is clear that 6% of respondents are using
from below 1 year, 16% of respondents are using between 1-2 years, 18%
of respondents are using between 2-3 years, 60% of respondents are
using from above 3 years.
TABLE-6: CLASSIFICATION OF RESPONDENTS ON THE BASIS OF
SOURCES INFLUENCED TO CONSUME THE PRODUCT
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 79
Marketing Of Boost
Sources No. Of Percentage (%)
respondents
Friends 21 42
Retailers 1 2
Neighbour 2 4
Advertisement 25 50
Others 1 2
Total 50 100
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 80
Marketing Of Boost
CHART SHOWING CLASSIFICATION OF RESPONDENTS ON THE BASIS OF
SOURCES INFLUENCED TO CONSUME THE PRODUCT
2%
42%
50%
4% 2%
Friends Retailers Neighbour
Advertisement Others
From the above table it is clear that the sources influenced to
consume the product i.e., 42% through friends, 2% through retailers, 4%
through neighbour, 50% through advertisement, 2% through others.
TABLE-7: CLASSIFICATION OF RESPONDENTS ON THE BASIS OF
FACTORS CONSIDERED WHILE PURCAHSING BOOST
Factors No. Of Percentage (%)
respondents
Taste 42 84
Flavor 8 16
Price - -
Packing - -
Total 50 100
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 81
Marketing Of Boost
CHART SHOWING CLASSIFICATION OF RESPONDENTS ON THE
BASIS OF FACTORS CONSIDERED WHILE PURCAHSING BOOST
90 84
80
70
60
PERCENTAGE
50
40
30
16
20
10
0 0
0
Taste Flavour Price Packing
From the above table it is clear that 84% of respondents are
considering taste, 16% of respondents are consider flavor.
TABLE-8: CLASSIFICATION OF RESPONDENTS ON THE BASIS OF
DURATION OF PURCHASE OF THE HEALTH DRINK
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 82
Marketing Of Boost
Duration No. Of Percentage (%)
respondents
Occasionally 5 10
Frequently 6 12
Fortnightly 3 6
Monthly 36 72
Total 50 100
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 83
Marketing Of Boost
CHART SHOWING CLASSIFICATION OF RESPONDENTS ON THE
BASIS OF DURATION OF PURCHASE OF THE HEALTH DRINK
Monthly
72
Fortnightly 6
Frequently
10 12
Occasionally
0 10 20 30 40 50 60 70 80
PERCENTAGE
From the above table it is clear that, 10% of respondents are
purchase occasionally, 12% of respondents are purchase frequently, 6%
of respondents are purchase fortnightly, 72% of respondents are
purchase monthly.
TABLE-9: CLASSIFICATION OF RESPONDENTS ON THE BASIS OF
TASTE SATISIFED BY THE CUSTOMERS
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 84
Marketing Of Boost
Taste of Boost No. Of Percentage (%)
respondents
Good 13 26
Better 8 16
Best 10 20
Excellent 19 38
Total 50 100
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 85
Marketing Of Boost
CHART SHOWING CLASSIFICATION OF RESPONDENTS ON THE
BASIS OF TASTE SATISIFED BY THE CUSTOMERS
Good
26%
Excellent
38%
Better
16%
Best
20%
From the above table it is clear that, 26% of respondents found
taste of boost is good, 16% of respondents found it better, 20% of
respondents found it best, 38% of respondents found it excellent.
TABLE-10: CLASSIFICATION OF RESPONDENTS ON THE BASIS OF
OPINION ABOUT THE PRICE OF BOOST
Price factor No. Of Percentage (%)
respondents
Costly 3 6
Moderate 33 66
Economical 14 28
Total 50 100
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 86
Marketing Of Boost
CHART SHOWING CLASSIFICATION OF RESPONDENTS ON
THE BASIS OF OPINION ABOUT THE PRICE OF BOOST
66
70
60
50
PERCENTAGE
40
28
30
20
6
10
0
Costly Moderate Economical
From the above table it is clear that, 6% of respondents found it is
costly, 66% of respondents found it as moderate, 28% of respondents
found it as economical.
TABLE-11: CLASSIFICATION OF RESPONDENTS ON THE BASIS OF
SATISFACTION TOWARDS QUALITY OF BOOST
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 87
Marketing Of Boost
Satisfaction No. Of Percentage (%)
respondents
Satisfied 50 100
Not satisfied - -
Total 50 100
CHART SHOWING CLASSIFICATION OF RESPONDENTS ON
THE BASIS OF SATISFACTION TOWARDS QUALITY OF BOOST
100
100
90
80
70
PERCENTGE
60
50
40
30 0
20
10
0
Satisfied Not satisfied
From the above table it is clear that, 100% of respondents were
satisfied towards quality of boost.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 88
Marketing Of Boost
CHAPTER-8
SUGGESTIONS
AND
CONCLUSION
8.1. SUGGESTIONS
8.2. CONCLUSIONS
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 89
Marketing Of Boost
CHAPTER-8
SUGGESTIONS AND CONCLUSION
8.1. SUGGESTIONS:
The main demand of the consumers according to the survey is to
reduce the price of products so that, it can reach the middle class
as well as the low class society.
Adding free gift items like playthings for children, offers, which
attract housewives, will increase the marketing of the product.
Increased significance has to be given to the media of
communication like televisions as they convey by both visual audio
units.
Word of mouth public Town through friends and relatives is also
an effective medium of communication for conveying product
information. This can be made possible by building up a good
company image by producing good quality products and also easy
and timely availability of the products.
Effective conveyance of product information by door-to-door
advertisement with free samples will promote the sales to the
maximum extent.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 90
Marketing Of Boost
Advertising of the product is to be done in the form of wall posters,
pamphlets etc., which also help in increasing product awareness.
Discount schemes are to be operated in greater frequency.
Reduction of price should not be the cause for reduction in the
quality and flavor of the product.
An effective distribution system and readily availability of the
product has to be maintained in the long term.
The promotional materials designed for shop display should be
really eye catching and effective.
The company has to implement uniform business policies through
out the country. If there are any disparities in the price there may
be free sale of products form areas where between the terms are
offered.
8.2. CONCLUSIONS:
From the sample survey reports, the following
Health drinks are consumed most by children and the elders who
are the high- risk people for under – nutrition.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 91
Marketing Of Boost
High-class people are the major buyers of the product. Middle
class people also prefer buying the product while these products
have failed to reach the low class people mainly due to the price
factor.
Advertisement in televisions, magazines and newspaper are the
main channels of communication for recognition of the brands
among the people. Friends, neighbors and relatives come next, as
the channel of communication is by word of mouth that also
compels the people to consume the products.
Nearly 2/3 of the total consumers are loyal to Boost of Glaxo
SmithKline, since many years, eve rating to as long as 15-20 years.
The reason for this is the quality of the brand as narrated by the
people.
The taste of boost is approved by the consumers to be good.
Almost every person consuming any brand of health drink is aware
of the health drinks of Glaxo SmithKline (GSK), which proves
popularity of boost.
To conclude, in total Boost is accepted by the consumers as good
quality genuine products.
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 92
Marketing Of Boost
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 93
Marketing Of Boost
CHAPTER -8
ANNEXURE
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 94
Marketing Of Boost
QUESTIONNAIRE
Dear Sir / Madam
I am Roopa M S student of Final year BBM at IDSG COLLEGE CHIKMAGALUR
the project chosen by me is a project report on “MARKETING OF BOOST
PRODUCTS IN CHIKMAGALUR TOWN” under the guidance of
MR. SUHAIL, Faculty Member of IDSG COLLEGE CHIKMAGALUR. I would be
greatly obliged if you would complete the following questionnaire.
Thanking you
yours sincerely,
Roopa M S
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 95
Marketing Of Boost
1. Name: ____________________________________________
2. Address: ____________________________________________
____________________________________________
Contact No. _________________________________
3. Age group in years
a) 5-10 b) 10-15
b) 15-20 d) 20 and above
4. Sex
a) Male b) Female
5. Marital status
a) Married b) Unmarried
6. Occupation: _______________________________________________
7. Monthly income (Rs.)
a) Below 5000 b) 5000-10000
c) 10000-20000 d) 20000 and above
8. Are you taking the health drink, which of the following –
a) Boost d) Horlicks
b) Complan e) Bournivta
c) Maltova f) Others _____________________
9. Since how long you are using it?
a) Below 1 year b) 1 to 2 years
c) 2 to 3 years d) 3 and above
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 96
Marketing Of Boost
10. Who influenced you to consume this product?
a) Friends b) Retailers
c) Neighbors d) Advertisement
d) Others _______________________________________
11. What factors do you consider while purchasing Boost
a) Taste b) Flavor
c) Price d) Packing
12. How often do you purchase?
a) Occasionally b) Frequently
c) Fortnightly d) Monthly
13. What is your opinion about the price of Boost
a) Costly b) Moderate
c) Economical
14. How is the taste of Boost?
a) Good b) Better
c) Excellent d) Best
e) Bad
15. Are you satisfied by the health drink used by you?
a) Yes b) No
16. Any suggestions about Boost.
__________________________________________________________________
Date:
Place: Signature
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 97
Marketing Of Boost
Thank you for your kind co-
operation
IDSG GOVT FIRST GRADE CHIKMAGALUR Page 98
BIBLIOGRAPHY
MARKETING MANAGEMENT - PROF.S.A. SHERLEKAR
MARKETING MANAGEMENT - PHILIP KOTLER
ANNUAL REPORTS AND ACCOUNTS OF GLAXO SMITHKLINE
CONSUMER HELATH CARE LTD.,
WEBSITES - www.gsk.com
www.boostenergy.com
www.google.com