Battleofhealth Drinks 130801040625 Phpapp02

8/11/2019 Battleofhealth Drinks 130801040625 Phpapp02

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Battle of Health-Drinks in IndiaTAPISH PANWAR


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The Health-conscious Indian

Reasons behind a growing inclination of Indian consumers towards

healthier food and beverages -

High level of consumerism backed by rising income levels (~$400 in 200~$1100 currently) (Health accounted for ~10% of household expense &

Exposure to wide product offerings in developed markets

Higher rate of urbanization (27% in 2001 to 31% in 2011)

Rising health issues owing to changing lifestyles

Aggressive marketing by health food and beverages brands

Rising concerns among consumers about efficacy of traditional foods

Two faced nutritional problemsone due to excess and other from de


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Indian Health Food Industry

Functional foods(combinations of all types of health foods) seen as aneffective measure to arrest the growing nutritional deficiency problem

The concept of functional foods was coined by Japanese scientistsrelating four essential pillarsnutrition, sensory satisfaction, fortificationand modulation of physiological systems

Indias definition of functional foods based on FSSA is a broad spectrumthat clubs the foods for special dietary uses, the functional foods, thenutraceuticals and the health supplements together

Health and Wellness Foods market estimated at 10000 crores in 2012and expected to grow to 55000 crores by 2015 at a CAGR of 33%


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Indian Health-drinks Industry

Divided into two categoriesWhite powders (Horlicks, Complan etand Brown powders (Bournvita, Boost etc)

Health drink powders consumed as milk substitute & nutrient booste

Indias Health-drinks market pegged at around 4000 crores (90000

tonnes) and expected to reach approximately 8000 crores by 2016

India is worlds largest malt-based drinks market with a share of alm22% in the worlds total retail volume(Malt is germinated cereal grathat have been dried in a process known as malting)


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Major Players and Brands

GlaxoSmithKline

Horlicks

Boost

Maltova

Viva

Kraft-Cadbury (Mondelez International)

Bournivita Heinz

Complan

Amul

Nutramul

Pro


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Market-share of Major Brands

Horlicks51 %

Bournvita16.2%

Complan13.9%

Boost12 %

Brand TrusTrust Resea


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Target Group and Positioning

Horlicks - The great family nourisher that offers pleasurable

nourishment with a delicious range of flavors

All HFD TG : Middle income group and above, Metro/Urban/Semi-urba

Junior Horlicks 1-2-3

Target Group : Toddlers (Consumption) Mothers (Communication)

Positioning : An easy-to-digest drink for fussy toddlers providing

them with essential nutrition value

Junior Horlicks 4-5-6 with growth boosters

Target Group : Preschoolers (Consumption) Mothers(Communication)

PositioningA nutrition packed health food for active preschoolers who have a busy schedule and need to remain charged


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Mothers Horlicks

Tagline : Healthy mothers for healthy and smart babies!

Target Group : Pregnant and Breast-feeding women

Positioning : A superior nutritional supplement for pregnant andbreast-feeding women to meet their daily nutritional requirements

USP : DHA as ingredient and ability to provide 100% RDA (RecommendedDietary Allowance) for the TG

Horlicks Lite

Target Group : Adults

PositioningEspecially designed to provide nutrition to adultsand provide them with strength and stamina to keep going

USP : Only HFD to be endorsed and certified by Diabetes India


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Horlicks

Tagline : Proven for making kids taller, stronger and sharper

Target Group : Kids aged 5-15 years and Mothers (Communication)

Positioning : A nutritional supplement that positively enhancesphysical and mental growth of kids

USP : Huge emphasis on the proven efficacy for childs mental &physical growth on the basis of results from a series of researches

Viva

Tagline : Start to a bright and healthy day!

Target group : For age group 15 years and above

Positioning : Provides healthy foundation to life and a good start tothe day


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Boost

Tagline : Boost is the secret of winning energy

Target Group : Children and adults looking for an energy drink

Positioning : Always positioned as an energy drink hence the tagline. Itpromoted as being the only HFD proven to increase stamina by three

USP : Strong Sportsmen endorsements(Kapil Dev, Sachin Tendulkar, VireSehwag, MS Dhoni) leading to brand following by kids

Maltova

Tagline : The yummy choco-malt drink

Target Group : Kids aged 5-15 years(Consumption) Mothers(Communic

Positioning : Fun health drink with pleasing taste


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Bournvita

Tagline : Tayyari jeet ki (preparing to win)

Target Group : Children aged 5-15 years & Mothers ( For Communicat

Positioning : Help kids to grow faster and enhances goodness of milk(C

USP : Strong advertising and taste appeals most in the category to the

Bournvita Lilchamps

Target Group : Children aged 2-5 years & Mothers(For Communication

Positioning : Most effective for kids due to DHA and whey protein conte

USP : Packaging to attract kids and attached offers/gifts for kids


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Complan (COMplete PLANned)

Tagline : Extra growing power with Complan


Positioning : Help kids to grow taller at twice the rate

USP : Backs its tall claims by multiple researches

Complan with Memory Chargers


Positioning : Improves memory and cognitive abilities in kids

USP : First HFD to target memory and cognitive benefits. Backs claims bresults of an independent research


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Claims (Product and Benefits)

Horlicks :

27 vital nutrientsProteins, Multi-vitamins and DHA

Nutrisorb technology Makes nutrients easily absorbable(& more effe

Junior Horlicks (1-2-3 and 4-5-6) :

Pre-digested (Easy for digestion for Toddlers)

23 vital nutrients (Body and Brain development)

Growth BoostersProtein, Calcium, Vitamin D &K and Magneisum(promotes physical health in children)

Power VitaminsVitamin B1, B2 , B6 and Niacin (Vitamin B3) (Energyreleasers to keep the kids charged up)

Smart NutrientsIron, Iodine, DHA, Choline, Vitamin C and Folic Acid(Essential for brain development and functioning)


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Mothers Horlicks :

26 vital nutrientsEssential for pregnant and breast-feeding women

Fortified DHA - Essential for brain development of child during pregnanearly years of life (DHA is otherwise available to child only through mothmilk)

100% RDA (Recommended Dietary AllowanceIron, Folate, Calcium, VC, B2, B6 and B12 (Essential for blood and bone health)

Anti-oxidantsVitamin A, E , Selenium , Zinc and Copper (Essential duripregnancy and lactation)

Natural malting processBreaking molecules into simpler forms (Easy to

Horlicks Lite :

Zero added sugar and zero added cholesterol with high fibre content

23 vital nutrients (Protein and antioxidants) to repair damaged body ce



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Boost:

EnVita NutrientsSystematic combination of vitamins and mineralsimportant for energy metabolism and hence increasing stamina

Maltova:

Active RechargersCombination of Vitamnis, Mineral and Carbohydrato provide essential nutrition and energy to growing

Viva:

VitaHealth9 essential vitamins to keep one charged up for the whole

Natural goodness of milk and malted barley


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Bournvita :

Enriched with vitamins that help in childrens physical and mental grow

High on vitamin D which enriches goodness of milk (calcium and othernutrients)

High on whey protein content

Bournvita Lllchamps : Enriched with 13 vitamins an 5 minerals responsible for growth of kids in

the age group of 2-5 years

DHA and whey protein contentwork wonders with milk for growth inkids

Essential macronutrients like carbohydrates, essential fats and protein


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Complan :

34 vital nutrients (including iron, iodine and essential fatty acids)

Includes 100% milk protein for better growth of kids

Almost 52% milk solids making it extremely helpful for growing kids

Complan with Memory Chargers:

Enriched with 8 memory chargers in 34 vital nutrients that works wondebrain development for growing kids

Nutrients includes Iodine, Iron, Folic acid, Choline, Vitamin B6 & B12, Vitaand Almond that are known to enhance cognitive abilities

Choco-badam chips in double chocolate drink


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Major Research Claims by Brands

Complan Benefits proven through an independent study conducted in 2008 for 12

months on the children with age-group 7-12 years in Coimbatore

Bournivta

Research shows that lack of Vitamin D makes the nutrients of milk weakand hence Bournvita with its essential nutrition enhances goodness of milk(Calcium).

Horlicks

..boiling of milk robs it of almost 25% of its nutrient value..

benefits proven with the help of a study conducted by NIN, Hyderabadon micronutrient enriched beverages on 869 school children


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Nutritional Value Claims vs Reality*

Complan Calcium, Niacin and Protein value below the declared value

Calcium and Fat content found to be below the declared value

Bournivita

Niacin content below declared value

Niacin content below declared value

Boost

Iron content found to be least among the competing brands

Niacin value found lower than declared

* Results based on consumer voice report July 2013 released by Dep


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Nutritional Value Claims vs Reality*

Horlicks Niacin value found to be maximum among the competing brands

Calcium and Fat content found to be below the declared value

Amul Pro (Brand not included in the analysis due to low marketshare)

Energy, Fats, Protein and Niacin values find below the declared value

ActiLife (Brand not included in the analysis due to low market share

Highest calcium and iron among competing brands

Protein value found to be lower than declared value

* Results based on consumer voice report July 2013 released by Dep


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TVC Watch- Horlicks

Link - HorlicksTaste

ContextReluctance of children in drinking plain milk

Emotion and effect InvokedDislike for plain milk leading toabandoning a rich source of nutrition

PropositionImprove the taste of plain milk by adding horlickswhich not only adds taste to milk but also enhances its efficacy

LinkHorlicks Women

ContextEmpowering women

Emotion and effect InvokedTransformation of women into astrong, fearless, self-confident and independent being

PropositionHorlicks celebrates the empowerment of womensuggesting its role in the process without playing hard-sell
http://www.youtube.com/watch?v=R-jhYqA2U3Mhttp://www.youtube.com/watch?v=R-jhYqA2U3Mhttp://www.youtube.com/watch?v=R-jhYqA2U3Mhttp://www.youtube.com/watch?v=F1a5IvkH7J0http://www.youtube.com/watch?v=F1a5IvkH7J0http://www.youtube.com/watch?v=F1a5IvkH7J0http://www.youtube.com/watch?v=F1a5IvkH7J0http://www.youtube.com/watch?v=R-jhYqA2U3Mhttp://www.youtube.com/watch?v=R-jhYqA2U3Mhttp://www.youtube.com/watch?v=R-jhYqA2U3Mhttp://www.youtube.com/watch?v=R-jhYqA2U3Mhttp://www.youtube.com/watch?v=R-jhYqA2U3M


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TVC Watch- Complan

Link - Complan- Double Milk Protein

ContextSignificance of protein in a childs growth

Emotion and effect InvokedClinical setting to lendcredibility to claim. Reinforce belief in protein as a majornutrient for growth among children

PropositionNourishes children with double milk proteinthereby making them taller and healthier

LinkComplan - Grow taller twice the rate

ContextSlow rate of growth in height

Emotion and effect InvokedFrustration among kids due toshorter height leading to lack of confidence

PropositionComplan suggests that a supplementary diet suchas complan can help increase the height of kids at twice the rate
http://www.youtube.com/watch?v=UrnIjG_VEzYhttp://www.youtube.com/watch?v=HEUYrC0H7pYhttp://www.youtube.com/watch?v=HEUYrC0H7pYhttp://www.youtube.com/watch?v=HEUYrC0H7pYhttp://www.youtube.com/watch?v=HEUYrC0H7pYhttp://www.youtube.com/watch?v=HEUYrC0H7pYhttp://www.youtube.com/watch?v=HEUYrC0H7pYhttp://www.youtube.com/watch?v=UrnIjG_VEzYhttp://www.youtube.com/watch?v=UrnIjG_VEzYhttp://www.youtube.com/watch?v=UrnIjG_VEzYhttp://www.youtube.com/watch?v=UrnIjG_VEzY


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TVC Watch- Complan

Link - Complan - with Memory Chargers

ContextIncomplete nutrition robbing memory

Emotion and effect InvokedHow lack in essential nutrition can affectthe cognitive capabilities of children

PropositionComplan with memory charges fulfil the need of theseessential nutrients leading to improved learning abilities
http://www.youtube.com/watch?v=z9iSCjObAPkhttp://www.youtube.com/watch?v=z9iSCjObAPkhttp://www.youtube.com/watch?v=z9iSCjObAPkhttp://www.youtube.com/watch?v=z9iSCjObAPkhttp://www.youtube.com/watch?v=z9iSCjObAPkhttp://www.youtube.com/watch?v=z9iSCjObAPk


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TVC Watch- Bournvita

Link - Bournvita - Prepare to win

ContextImportance of healthy habits

Emotion and effect InvokedA mothers concern to prepare herson to win in life and how wise and healthy habits plays an importantrole in achieving that

Proposition - Bournvita is one such healthy habit which must becultivated to prepare your child to win in the game of life

LinkBournvita Li'l champs

ContextWant to see a champion in your child?

Emotion and effect InvokedHow it is important for kids to stay a stepahead in this competitive world and how should a mother take care of herher childs nutritional needs to accomplish that?

PropositionBournvita Lilchamps nourishes kids with DHA(Smart) and

whey protein (Strong) hence keeping them a step ahead
http://www.youtube.com/watch?v=OtmU00-UvSQhttp://www.youtube.com/watch?v=nZa6DoWooLwhttp://www.youtube.com/watch?v=nZa6DoWooLwhttp://www.youtube.com/watch?v=nZa6DoWooLwhttp://www.youtube.com/watch?v=nZa6DoWooLwhttp://www.youtube.com/watch?v=nZa6DoWooLwhttp://www.youtube.com/watch?v=nZa6DoWooLwhttp://www.youtube.com/watch?v=OtmU00-UvSQhttp://www.youtube.com/watch?v=OtmU00-UvSQhttp://www.youtube.com/watch?v=OtmU00-UvSQhttp://www.youtube.com/watch?v=OtmU00-UvSQhttp://www.youtube.com/watch?v=OtmU00-UvSQ


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TVC Watch- Boost

Link - Boost - Secret of winning energy

ContextLearning for life from sports (The playground is my classroom)

Emotion and effect InvokedHow sports teach us various lesson for realife like self-confidence, ambitions, sharing etc. In order to keep learninone has to keep playing and hence need to stay fit , strong andenergetic

Proposition - Boost provides you with that energy and strength to keepplaying so that you keep learning
http://www.youtube.com/watch?v=Gyfdn_K8UNohttp://www.youtube.com/watch?v=Gyfdn_K8UNohttp://www.youtube.com/watch?v=Gyfdn_K8UNohttp://www.youtube.com/watch?v=Gyfdn_K8UNohttp://www.youtube.com/watch?v=Gyfdn_K8UNo


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Prospects of Indian HFD market

Indian HFD market is a growth market withtremendous opportunities (Check graph)

India has one of the youngest population inthe world making it a long-term HFD market (TG)

Still considered as one of the growth markets interms of rising income reinforcing the long-term prospects

Rising awareness among consumers due to exposure todeveloped markets (More people than ever travelling abroad,foreign TV channels, global offerings) adds to TG everyday

Due to foreign origin of most of the HFD products(mostly developedmarkets) which have stricter laws related to food safety, theproducts dont need much tweaking(& expenses) in that aspect

0

2000

4000

6000

8000

Market Size

2006 20


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Consumer Behaviour(HFD purchase

Consumers attitudes regarding HFD purchase is largely influencedby quality attributes of the product

No direct relation between brands and their sensory perceptions

Price, quality attributes and sensory perceptions are three majorfactors that makes a brand in the eyes of consumer better thanother

Value for money(Nourishment vs price), price and packaging areranked in the same order for influencing purchase decision

Brand loyalty stands out as a very significant factor in HFD purchase

Mostly consumers will wait for their brand in case its not available at thetime of purchase instead of buying another brand

Cogniti

Dissonan


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Age segments

Biggest TG is the age group of 5-15 years in terms ofproducts offered to each TG

Other segments have exactly same numberof products offered for them (Of the brandsconsidered in this analysis)

Horlicks is present in four out of five segmentswhile Bournivita covers three segments by its offerings

Complan, Boost and Maltova covers one segment each

3

15%

15%

Share of prod

each ag

1-3 y

4-6 y

5-15

Abov

Abov


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Brand Benefits Segments

HFD as Energy drinks and source of essential nutrients(specific to TG, eg. Toddlers, Mothers etc) is mostcommon positioning adopted by brands(25%)

Equal number of products offer benefits related tophysical and mental growth (19% each)

Recently Horlciks and Bournivita in particular havealso adopted a new proposition where they promiseto enrich and strengthen the nutrient value of milk.With only 12% of considered brands adopting thispositioning it holds the last position

19%

25%

12%

Share of pro

based on be

Es

Ph

M

En

En


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References

Consumer Voice Report July 2013 , Department of Consumer Affair

Functional Foods: Marketing Health To Modern India(ManishSharma and Shweta Garg)

Customers' Behavior in Health Food Drink Product Category(Dharmesh Motwani and Khushbu Agarwal)

News Releases from Leading Newspapers and Magazines

Times of India

Economic Times

Business Line

The Hindu


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Thank you

Documents

Battleofhealth Drinks 130801040625 Phpapp02