OVERVIEW OF INDUSTRY AS WHOLE

FMCG SECTOR
Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer
packaged goods. Items in this category include all consumables (other than
groceries/pulses) people buy at regular intervals. The most common in the list are
toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish,
pacaged !oodstu!!, household accessories and e"tends to certain electronic goods.
These items are meant !or daily o! !re#uent consumption and have a high return.
$ ma%or portion o! the monthly budget o! each household is reserved !or FMCG
products. The volume o! money circulated in the economy against FMCG products is
very high, as the number o! products the consumer use is very high. Competition in
the FMCG sector is very high resulting in high pressure on margins.
FMCG companies maintain intense distribution net&or. Companies spend a large
portion o! their budget on maintaining distribution net&ors. 'e& entrants &ho &ish
to bring their products in the national level need to invest huge sums o! money on
promoting brands. Manu!acturing can be outsourced. $ recent phenomenon in the
sector &as entry o! multinationals and cheaper imports. $lso the maret is more
pressuri(ed &ith presence o! local players in rural areas and state brands.
The Indian FMCG sector &ith a maret si(e o! )*+,-., billion is the !ourth largest
sector in the economy. $ &ell.established distribution net&or, intense competition
bet&een the organi(ed and unorgani(ed segments characteri(es the sector. FMCG
*ector is e"pected to gro& by over /01 by 20,0. That &ill translate into an annual
gro&th o! ,01 over a 3.year period. It has been estimated that FMCG sector &ill rise
!rom around 4s 3/,300 crores in 2003 to 4s 52,,00 crores in 20,0. 6air care,
household care, male grooming, !emale hygiene, and the chocolates and con!ectionery
categories are estimated to be the !astest gro&ing segments, says an 6*7C report.
Though the sector &itnessed a slo&er gro&th in 2002.2008, it has been able to mae a
!ine recovery since then.
,
For e"ample, 6industan 9evers 9imited (699) has sho&n a healthy gro&th in the last
#uarter. $n estimated double.digit gro&th over the ne"t !e& years sho&s that the
good times are liely to continue.
Growth Prospects
:ith the presence o! ,2.21 o! the &orld population in the villages o! India, the Indian
rural FMCG maret is something no one can overloo. Increased !ocus on !arm sector
&ill boost rural incomes, hence providing better gro&th prospects to the FMCG
companies. 7etter in!rastructure !acilities &ill improve their supply chain. FMCG
sector is also liely to bene!it !rom gro&ing demand in the maret. 7ecause o! the lo&
per capita consumption !or almost all the products in the country, FMCG companies
have immense possibilities !or gro&th. $nd i! the companies are able to change the
mindset o! the consumers, i.e. i! they are able to tae the consumers to branded
products and o!!er ne& generation products, they &ould be able to generate higher
gro&th in the near !uture. It is e"pected that the rural income &ill rise in 200;,
boosting purchasing po&er in the countryside. 6o&ever, the demand in urban areas
&ould be the ey gro&th driver over the long term. $lso, increase in the urban
population, along &ith increase in income levels and the availability o! ne&
categories, &ould help the urban areas maintain their position in terms o!
consumption. $t present, urban India accounts !or //1 o! total FMCG consumption,
&ith rural India accounting !or the remaining -81. 6o&ever, rural India accounts !or
more than 801 consumption in ma%or FMCG categories such as personal care, !abric
care, and hot beverages. In urban areas, home and personal care category, including
sin care, household care and !eminine hygiene, &ill eep gro&ing at relatively
attractive rates. :ithin the !oods segment, it is estimated that processed !oods, baery,
and dairy are long.term gro&th categories in both rural and urban areas.
Indian Competitiveness and Comparison with the World Markets
The !ollo&ing !actors mae India a competitive player in FMCG sector<
2
Availability of raw materials
7ecause o! the diverse agro.climatic conditions in India, there is a large ra& material
base suitable !or !ood processing industries. India is the largest producer o! livestoc,
mil, sugarcane, coconut, spices and cashe& and is the second largest producer o!
rice, &heat and !ruits =vegetables. India also produces caustic soda and soda ash,
&hich are re#uired !or the production o! soaps and detergents. The availability o!
these ra& materials gives India the location advantage.
Labor cost comparison
9o& cost labor gives India a competitive advantage. India>s labor cost is amongst the
lo&est in the &orld, a!ter China = Indonesia. 9o& labor costs give the advantage o!
lo& cost o! production. Many M'C>s have established their plants in India to
outsource !or domestic and e"port marets.
Presence across value chain
Indian companies have their presence across the value chain o! FMCG sector, right
!rom the supply o! ra& materials to pacaged goods in the !ood.processing sector.
This brings India a more cost competitive advantage. For e"ample, $mul supplies
mil as &ell as dairy products lie cheese, butter, etc.
-
FMCG Products and Categories
,. ?ersonal Care, @ral Care, 6air Care, *in Care, ?ersonal :ash (soaps)A
2. Cosmetics and toiletries, deodorants, per!umes, !eminine hygiene, paper productsA
-. 6ousehold care !abric &ash including laundry soaps and synthetic detergentsA
household cleaners, such as dish/utensil cleaners, !loor cleaners, toilet cleaners, air
!resheners, insecticides and mos#uito repellents, metal polish and !urniture polishA
FMCG IN 2010
The per!ormance o! the industry &as inconsistent in terms o! sales and gro&th !or
over 8 years. The investors in the sector &ere not gainers at par &ith other booming
sectors. $!ter t&o years o! sining per!ormance o! FMCG sector, the year 200B has
&itnessed the FMCGs demand gro&ing. *trong gro&th &as seen across various
segments in FC0/. :ith the rise in disposable income and the economy in good
health, the urban consumers continued &ith their shopping spree.
$!ter 8 years o! dull per!ormance in both revenues and pro!its, FMCG sector has no&,
i.e. since 200B, gained the momentum, principally because o! the smaller companies
that have substantially improved their maret shares at the cost o! larger players and,
in some cases, the regional players
I! &e care!ully observe the FMCG inde" and 7*D inde", &e &ould reali(e that the
returns on money invested in FMCG inde" are much lo&er than the returns in
benchmar inde". The FMCG sector has under per!ormed the benchmar 7*D *ense"
in 2005. Though both the indices &ere close to each other till $ugust 2005, in the
later hal! o! the year the *ense" surpassed the FMCG inde" by a reasonable margin.
Comparison of 2009 and 2008
$!ter t&o years o! sining per!ormance o! FMCG sector, the year 200B has &itnessed
the FMCGs demand gro&ing. *trong gro&th &as seen across various segments in
FC0/. :ith the rise in disposable income and the economy in good health, the urban
consumers continued &ith their shopping spree. The rural demand gre& at around
8
,,1, &hile both the urban and rural sector together registered a gro&th o! around B1.
?acets and sachets contributed to the highest gro&th in rural areas. Gro&th in FMCG
depends on t&o !actors<
Increase in penetration and consumption in rural areas
Change in aspirations and tastes o! the urban population
7oth these !actors contributed to gro&th in 2005. 7esides demand, prices also
increased, because o! &hich only the selected consumers moved up in the value chain.
The large !ormat retail stores in metros also stimulated sales, even i! on a very small
base. *ome companies absorbed higher input prices, &hile others &ere able to pass on
the cost to the consumers. FMCG is the !ourth largest sector o! the Indian Dconomy.
FMCG sector generates 31 o! total !actory employment in the country and is creating
employment !or three million people, especially in small to&ns and rural India.
$ccording to a CII.$ T Eearney report, the FMCG sector in India is e"pected to gro&
at a compounded annual gro&th rate (C$G4) o! 51 to a si(e o! 4s ,,8-,000 crores by
20,0 !rom 4s 5-,000 crores at present. :ith a gro&th o! 32.31, the 7*D FMCG
Inde" has, during the last one year, outper!ormed the *ense", &hich could manage a
gro&th o! 8,1 only. $ &ell.established distribution net&or, intense competition
bet&een the organi(ed and unorgani(ed segments, lo& operating cost, strong branding
characteri(e the sector.
The large consumer base, particularly in rural sector, and the gro&ing middle class
open up huge opportunities to FMCG companies to tae the consumers to branded
products and o!!er ne& generation products.
The sector>s lac.luster per!ormance in the last !e& years &as due to price competition
and increase in ra& materials cost. 6o&ever, in the FC0/, the sector has &itnessed a
double.digit gro&th in pro!its and revenues. The sector has registered an up trend in
gro&th across categories, such as health supplement, shampoo, toothpaste, hair oils,
and mos#uito repellant, as sho&n in table belo&<
3
*ales Falue Gro&th 1
Categories 200;.200B 200B.2005 2005.20,0
6ealth *upplement
(Chya&anprash)
.31 01 2-1
*hampoo ,01 2-1 ,51
Toothpaste 31 /1 ,/1
6air @ils 51 ,B1 2-1
Mos#uito 4epellant ,-1 ,01 251
Sector Financials In millions
2005 200B 200;
'et *ales
*ales Gro&th
,/8,,5/
,0.B1
,8B,28,
2.01
,83,-B0
.
?ro!it a!ter Ta"
?$T Gro&th
,5,353
,/./1
,;,00,
.28.21
2,,00B
.
Maret
Capitali(ation
;8,;8/ /3,B,0 /-,0;2
Dnterprise Falue //2,380 /83,8;; 33,,5;,
4eturn on Capital
Dmployed (4@CD)
8;.,1 3,.01 83.31
?/D 4atio 2/.;1 2;.,1 2,.01
2.1 About GSK
Dstablished in the year ,528 in India Gla"o*mithEline ?harmaceuticals 9td. (G*E
4" India) is one o! the oldest pharmaceuticals company and employs over -300
people. Globally, &e are a )*G 83 billion, leading, research.based healthcare and
pharmaceutical company. In India, &e are one o! the maret leaders &ith a turnover o!
/
4s. ,BB0 crore and a share o! 3.; per centH. $t G*E, our mission is to improve the
#uality o! li!e by enabling people to do more, !eel better and live longer. This mission
drives us to mae a real di!!erence to the lives o! millions o! people &ith our
commitment to e!!ective healthcare solutions.
The G*E India product port!olio includes prescription medicines and vaccines. @ur
prescription medicines range across therapeutic areas such as anti.in!ectives,
dermatology, gynaecology, diabetes, oncology, cardiovascular disease and respiratory
diseases. The company is the maret leader in most o! the therapeutic categories in
&hich it operates. G*E also o!!ers a range o! vaccines, !or the prevention o! hepatitis
$, hepatitis 7, invasive disease caused by 6, in!luen(ae, chicenpo", diphtheria,
pertussis, tetanus, rotavirus, cervical cancer and others.
:ith opportunities in India opening up, G*E India is aligning itsel! &ith the parent
company in areas such as clinical trials, clinical data management, global pac
management, sourcing ra& material and support !or business processes including
analytics.
G*EIs best.in.class !ield !orce, baced by a nation.&ide net&or o! stocists, ensures
that the CompanyIs products are readily available across the nation. G*E has t&o
manu!acturing units in India, located at 'ashi and Thane as &ell as a clinical
development centre in 7angalore. The state o! art plant at 'ashi maes !ormulations
&hile bul drugs and the active pharmaceutical ingredients are manu!actured at
Thane.
7eing a leader brings responsibility to&ards the communities in &hich &e operate. $t
G*E &e have a Corporate *ocial 4esponsibility program, that &ors to&ards
!ul!illing basic healthcare, education and other developmental needs o! 33 tribal
villages near 'ashi. :e &or &ith underprivileged children !rom the slums o!
Mumbai, taing care o! their developmental and health needs. G*E also runs an
6IF/$IG* helpline . considered to be a pioneering e!!ort in India that supports those
in distress and despair.
G*E is committed to developing ne& and e!!ective healthcare solutions. The values
on &hich the group &as !ounded have al&ays inspired gro&th and &ill continue to do
so in times to come.
;
:e are the second largest drug company in the &orld &ith a 3.-1 share o! the
&orldIs pharmaceutical maret
:e employ over 55,000 people in ,,8 countries
@ver ,8,300 people &or in our research teams across the &orld to discover
ne& medicines
@ver ,30 pro%ects in clinical development J one o! the largest pipelines in the
industry
Dvery second, &e distribute more than -2 doses o! Faccines.
Dvery minute, more than ,200 prescriptions are &ritten !or G*E products
@ver one billion albenda(ole tablets have been donated to combat lymphatic
!ilariasis
@ur global community investment and charitable donations &ere K,28 million
in 200B
BOARD OF MEMBERS
Mr. Simon Scarff
6e is currently the 'on D"ecutive Chairman o! Gla"o *mithEline Consumer
6ealthcare 9imited. *imon *car!! started his career at 6orlics 9imited, )E (no&
B
part o! Gla"o *mithEline plc). 6e &as !irst in India in ,5/- at 'abha, in ?un%ab,
responsible !or the mareting and sales o! the company>s products. 6e then returned
to the )E to &or &ithin the )E Mareting department. In ,5;8, he &as appointed
Coordinator on the Consumer 7rands business in 'igeria. In ,5;/, he &as appointed
4egional Group Manager, responsible !or the 'ear and the Middle Dast, initially
based in Cyprus and later in Gubai. 6e returned to India as the Managing Girector on
the ,st o! Lune, ,5;B and led the company till @ctober 2002. In Lanuary ,555, Mr.
*car!! &as a&arded the @!!icer o! the @rder o! the 7ritish Dmpire (@7D) by 6er
Ma%esty the Mueen o! Dngland in the 'e& Cear>s 6onour 9ist (,555) !or services to
7ritish Industry.
In ,55-, he &as appointed as a Girector o! *mithEline 7eecham ?harmaceuticals
India 9imited (no& Gla"o *mithEline ?harmaceuticals India 9imited), and he
continues in this post. 6e is also a Girector in several other organi(ations and
Chairman o! charitable groups in India.
Mr. Zubair Ahmed
Mr. Nubair $hmed too over the responsibility !or running the Consumer 6ealthcare
business in the India *ub.continent region, as Managing Girector, e!!ective ,st
Lanuary, 200;. Mr. $hmed brings to this role a &ealth o! thirty years o! e"perience in
the FMCG sector. ?rior to %oining this Company, Mr. $hmed &as the Managing
Girector o! Gillette India 9imited &here he &as credited !or turning the company>s
business onto a pro!itable gro&th path as &ell as spearheading Gillette>s clear value
leadership in its product categories in India.
Mr. $hmed &as associated &ith Gillette !or over ,8 years &here his leadership
competencies in the areas o! strategic planning, strategic relationship building and
result orientation led him to &or on prestigious assignments in the company>s
operations in Middle Dast and India. Mr. $hmed has also &ored &ith leading
companies lie Foltas and )nilever in the past.
Mr. Ashok Dayal
5
6e is presently a 'on D"ecutive Girector in various companies. Till Lune, ,553 he
&as the D"ecutive Girector o! Geutsche 7an $G responsible !or the business o!
Geutsche 7an in India, ?aistan, *ri 9ana, Thailand, Indonesia and Fietnam.
Therea!ter, he &as appointed as the Chairman o! 4oland 7erger International
Management Consultants ?vt. 9td. *ince March 2B, 200, he has been the Girector o!
this company.
Mr. P. Dwarakanath
6e is presently the 'on D"ecutive Girector o! the company. 6e has over -8 years o!
e"perience in Dngineering, Chemical, ?harma and Consumer Goods industries in the
core !unctional areas o! 9egal, Dmployee 4elations, Management Gevelopment,
9eadership Gevelopment and 64 Management. 6e has been actively involved in
various pro!essional bodies including a success!ul stint as ?resident o! Gelhi
Management $ssociation (2000/200,) and has recently been appointed as $ll.India
?resident by 'ational 64G 'et&or.
Mr. Praveen Gupta
Girector @perations
6e %oined the company in ,5;3 and since then he has held positions o! increasing
responsibility in Finance, ?rocurement, Materials Management, and *upply Chain
Management. 6e &as previously *ite Girector o! the 'abha !acility and Country @D
Champion !or GM* Consumer 6ealthcare, India. In these roles he has made
signi!icant contributions to&ards the evolution and per!ormance o! the 'abha site and
has driven the highly success!ul @perational D"cellence ?rogramme in India.
DIFFERENT HEALTH DRINKS OF GSK
The Great Family Nourisher: HORLICKS
,0
6orlics is the leading 6ealth Food Grin in India and as the >Most Trusted Grins
7rand> (Dconomics Times *urvey, 2008) in India, en%oys more than hal! o! the 6ealth
Food Grin maret.
$lthough it has been a popular brand in the Indian maret since the ,5-0s, 6orlics
under&ent a revamp in 200- to !urther increase its relevance. The modern =
contemporary 6orlics o!!ers >pleasurable nourishment> &ith a delicious range o!
!lavours including Fanilla, To!!ee, Dlaichi and Chocolate.
:ith revitali(ed pacaging synergistic &ith the ne& brand personality, it is a !avourite
&ith both mothers !or its nourishment and ids !or its great taste and variety.
6orlics is sold in a number o! countries across the &orld. In di!!erent countries, the
product has di!!erent !ormulations in order to cater to varying consumer segments and
serve di!!erent consumer needs.
In India, the 6orlics available has been scienti!ically developed and speci!ically
caters to the nutritional needs o! the Indian diet. It helps meet the re#uirements o!
essential nutrients in children, such as iron and vitamins that aid iron absorption.
From the available data, it has been seen that children in India are not getting enough
o! these vitamins and minerals !rom their daily diet. 4esearch sho&s that these
nutrients are very important !or school age children !or their attention, concentration
and memory as &ell as their physical per!ormance and gro&th. Thus, 6orlics is a
bene!icial supplement !or children to aid not only their gro&th, but also enhanced
attention and concentration. In !act, &e have established this through a large clinical
trial among school going children.
6orlics is the only health drin, clinically proven in India, to mae ids taller,
stronger and sharper.
,,
$ premier research institute o! India conducted a ,8 month research on 6orlics in a
reputed boarding school in 6yderabad. In the research, one group o! children &as
given an ordinary health !ood drin &ithout the 6orlics micronutrients (or vitamins
and minerals) &hile the other group &as given 6orlics. Many tests and ,8 months
later, it &as concluded that the children &ho consumed 6orlics sho&ed signi!icant
improvements in height, muscle mass, bone health and attention/concentration scores
as compared to the children &ho consumed the ordinary health !ood drin &ithout the
6orlics micronutrients (or vitamins and minerals)

6orlics is also available in a delicious chocolate !lavor. :hen the temperatures soar
and your throat !eels lie the Thar Gesert, chilled chocolate 6orlics is the tastiest
&ay to beat the heat. The nutrition o! 6orlics paced &ith the lip.smacing
chocolate !lavor has &on the hearts o! children and adults alieO so you hear them
sing merrily P%aise bhi aise bhi doodh le ao, Chocolate 6orlics shae banaoO.>%aise
bhi aise bhi doodh le ao, Chocolate 6orlics shae banao..%aise bhi aise bhiQ>I
1UNIOR HORLICKS
,2
?reschool children may be !ussy in consuming !ood and may o!ten re!use or &aste
!ood that is nutritionally good !or them. This may cause certain dietary gaps in the
diet o! preschool children. 'e& Lunior 6orlics ,.2.- provides essential nutrition and
&hen taen as part o! a healthy diet, helps complete $ to N nutrition !or preschool
ids. It &as launched in $pril I0/ &ith an all ne& !ormulation and e"citing ne&
pacaging. ?resenting 'e& Lunior 6orlics ,.2.- &ith G6$ !or 7rain Gevelopment<
Lust as calcium is essential !or bones, G6$ in one o! the most important brain.
'utrients and is an essential building bloc o! the brain cells. The average Indian
diet may have lo& amounts o! G6$ and absence o! G6$ in daily diet may
impair intelligence. Ma"imum brain development happens by the age o! 3. It is
there!ore essential to supplement your idIs diet essential !atty acids lie G6$
*o along &ith G6$, Lunior 6orlics ,.2.- provides essential nutrition, &hich as
part o! daily diet helps complete $ to N 'utrition.
$lso ne& Lunior 6orlics ,.2.- no& comes in a completely ne& pac. This pac is in
the shape o! a cute elephant and is something every child &ould love to play &ith.
Folate, Fitamin 7/, Fitamin C, Fitamin 72, Fitamin 7,2, Iron = Calcium J In 2
serves as per )* Guidelines 200,
This product is not an in!ant mil substitute or in!ant !ood !or less than 2 years old.
Lunior 6orlics ,.2.- is a nutritional supplement &hich as part o! daily diet helps
meet your childIs nutritional re#uirements.
MOTHER`S HORLICKS
,-
Mother>s 6orlics, launched in ,55;, is a superior nutritional supplement &ith 2/ vital
nutrients that is scienti!ically designed eeping the nutritional needs o! the pregnant
and breast !eeding &omen in mind. $n attempt to enhance nutritional superiority sa&
the launch o! its ne& variant in May 2008 . Mother>s 6orlics !orti!ied &ith G6$.

This uni#ue !ormulation has an essential !atty acid called docosahe"aenoic acid or
G6$ !rom a vegetarian source. 'umerous studies have suggested that G6$ helps in
brain development o! the child during pregnancy and the !irst !e& years o! li!e. It is
important to note that in in!ants, breast mil is the only source o! G6$.
In addition to G6$, Mother>s 6orlics supplies the recommended #uantity o! ideal
#uality proteins R&ith ,001 amino acid scoreS. Mother>s 6orlics, in three serves R/
scoopsS, provides ,001 o! the 4ecommended Gietary $llo&ance R4G$S !or iron,
!olate, calcium, vitamins C, 72, 7/ and 7,2 . nutrients that are essential !or blood
and bone health. Mother>s 6orlics is also rich in antio"idants Rvitamins $, D,
selenium, (inc and copperS essential during pregnancy and lactation.
Moreover, Mother>s 6orlics has been manu!actured through a natural process o!
malting or germination that helps to produce en(ymes &hich in turn helps to
breado&n comple" starches and proteins into simpler molecules maing it easy to
digest.
$vailable in all leading chemist outlets in pacs o! 300 g (4s. 200 only) and 200 g
(4s. ,00 only), Mother 6orlics has best value !or money and is the leading
nutritional supplement !or pregnant and breast !eeding &omen. $!ter all, every
mother has a right to healthy babiesQQ
,8
26 Vital Nutrients
Nutritional Facts Per 75g
Benefits
Total #uantity
1 daily
re#uirement
G6$ /0mg '$
Gevelopment o! brain,
eyes and nerves o! the baby
?rotein ,3g 2/ Gro&th o! the baby
Carbohydrates 80.0g '$
Dnergy Fats ,0.5g -/
Calories -00Ecal ,3
Dlemental Iron -Bmg ,00
Mental and physical
development o! the baby
Folate 800mcg ,00
Fitamin C B0mg ,00
Fitamin 72 ,./mg ,00
Fitamin 7/ 2mg ,00
Fitamin 7,2 2.Bmcg ,00
Iodine ,83mcg 30
Dlemental Calcium ,000 mcg ,00
Gevelopment o! strong
bones and teeth o! the baby
?hosphorus -30mg 30
Fitamin G 2.3mcg 30
Fitamin $ /30mcg 30
$ntio"idant !unction and
healthy immunity
Fitamin D ;.3mg 30
Ninc -mg 23
*elenium -3mcg 30
Copper 0.;mg 30
,3
Benefit for Mother
$ scienti!ic combination o! 2/ vital nutrients !or her all round health
Guring lactation, it can help improve the #uality and #uantity o! breast mil
HORLICKS LITE
6orlics 9ite = 9ite 7ite
$ nutritional drin = snac specially !ormulated !or all health conscious adults and is
also suitable !or use by people &ith diabetes
6orlics 9ite health !ood drin and 9ite 7ite biscuits &as launched in the maret in
*ep I03. This range o! products have been specially !ormulated eeping in mind
nutritional needs o! adults and is also suitable !or use by people &ith diabetes.
'e& 6orlics 9ite &ith (ero added sugar and (ero cholesterol
Contains 2/ vital nutrients
6as high !ibre
Is lo& !at
6as essential antio"idants
Horlicks Lite Bite Biscuits
6ealthier alternative to other leading biscuits
'o added sucrose
:ith goodness o! !ibre
$dded bene!its o! antio"idants, vitamins and calcium
,/
BOOST
7oost is the secret o! &inning energyQ
7oost is India>s leading malt.based 6ealth Food Grin in a chocolate !lavour. It &as
developed by the company>s 4=G team in ,5;8 and launched in ,5;3.;/. Its success
characteri(es the manner and sill &ith &hich Gla"o*mithEline Consumer 6ealthcare
has responded to the changing contours o! this product segment in recent times.
7oost has a maret share o! ,-1 country&ide amongst all 6ealth Food Grins
(6FG), &hile in *outh India . the biggest region !or the category . it commands a
maret share o! 281.
The Firsts!
7oost is the !irst 6FG to have used celebrity endorsement to convey its energy
proposition and has thereby success!ully di!!erentiated itsel! !rom other
brands. It has been success!ully endorsed by India>s most !amous cricet stars,
particularly those &ith a humungous !ollo&ing among children. Eapil Gev, the
most charismatic criceter o! his time !lagged this o!! in the ,5B0s. The baton
passed to *achin Tendular in the ,550s. *achin has remained stead!ast in his
support !or 7oost &ith the e"plosive Firender *eh&ag %oining the 9ittle
Master as brand ambassador in 200,.
,;
7oost &as the !irst brand to introduce yello& granules in its !ormulation as
part o! the >?o&er 7oosters
TM
> relaunch in 'ovember 2002.
It is also the !irst brand in this segment to have developed a >shrin.sleeved>
pacaging &ay bac in ,555. In recognition o! this, 7oost has &on the
prestigious :orld *tar a&ard !or its pacaging.
Continuous Innovation
:ith the brand philosophy being to continuously innovate and pioneer changes, in
line &ith the changing maret dynamics and ongoing consumer !eedbac, 7oost has
been restaged in May 2003. The brand no& o!!ers<
an even better product . &ith the addition o! $dvanced Dnergy 7oosters
a more sporty, more convenient bottle structure . no& in plastic
e"citing ne& graphics
Compelling advertising &ith a high visual appeal that depicts the &inning
energy &e all aspire to have.
New Boost ChocoBlast
>The energy o! 7oost, no& in an D"""tra Chocolate TasteQ>
$ ne& !lavour o! 7oost . 7oost Choco7last has been introduced in May 2003. It is
one o! the best tasting chocolate drins in the maret today. In addition, it is a more
granular product and is po&ered &ith $dvanced Dnergy 7oosters
*o, no& you can have the energy o! 7oost, in an e"tra chocolate taste, at no e"tra
costQ
Advanced Energy Boosters
'e& 7oost and 7oost Choco7last are charged &ith $dvanced Dnergy 7oosters

Iron,
Ninc and Magnesium along &ith other ey vitamins and minerals that give e"tra
energy.
Lust 2 cups &ith T $dvanced Dnergy 7ooster provide<
,B
Nutrients ()` Benefit
Iron (,001), Copper, Folate,
Fitamins 7,2, $, C (301)
6ealthy blood !or more energy and
optimal physical per!ormance
Fitamins 7,, 72, 7/, 'iacin,
?antothenic $cid, 7iotin (301)
Magnesium, Ninc (,;1)A
Dnergy release !rom !ood !or e!!icient
&oring o! body cells
Fitamin G, Calcium (,;1) For strong bones
Gaily re#uirement as per )* '4C, 200,
*achin Tendular appeared in a 7oost advertisement !or the !irst time at the
age o! seventeen.
The id, &ho starred in the 7oost advertisement &ith Eapil Gev, &ent on to
become a member o! the Indian cricet team . 'ihil Chopra.
There is a range o! interesting products prepared &ith 7oost &hich cater to
local tastes< the 7oost >bar!is>, !or e"ample, in certain parts o! India.
7oost has the highest !re#uency o! purchase among all bro&n po&der users in
India (*ource< IM47 6ousehold ?anel).
7oost has a household penetration o! 801.831 in several cities and to&ns in
*outh India, the brand>s stronghold. In to&ns lie Chennai and Madurai this
penetration e"ceeds 301 among *DC $ and *DC 7 households and 801
among all households (*ource< IM47 ?anel Gata Lan.Gec 2008)
,5
MALTOVA
The yummy choco.malt drin>
Maltova, a chocolate 6ealth Food Grin, &as ac#uired !rom Lagat%it Industries
9imited in Feb 2000. To ids Maltova is the !un health drin, &hich is e"tremely
tasty, and maes nourishment truly en%oyable and e"citing.
It &as relaunched in Lune 2002 &ith an enriched !ormulation and improved
pacaging. The relaunched 'e& Maltova had $ctive 4echargers, a combination o!
essential vitamins, minerals and carbohydrates.
Maltova has again been restaged in 'ovember 2008, &ith an attractive ne& pacaging
that connotes an e"tremely high taste appeal and a sense o! !un and e"citement. The
communication and the promotions have been made more e"citing by bringing in
cartoon characters lie *cooby Goo.
20
2.2 PROBLEMS OF THE ORGANISATION
There are various lo& range health drins available in the maret o! di!!erent
companies
It has to compete &ith the &ide range o! products that its competitors o!!er.
It has to decide on the strategies to be adopted &hich &ill help to counter
competition.
2,
2.3 COMPETITION INFORMATION
1. HINDUSTAN UNILEVER LTD.
6industan )nilever 9imited (6)9), earlier called 6industan 9ever 9imited (699)
&as established in ,5-- as 9ever 7rothers India 9imited. 6industan 9ever 9imited
(699) is India>s largest Fast Moving Consumer Goods Company, &ith a customer
base o! 2 out o! every - Indian in the category o! 6ome = ?ersonal Care ?roducts and
Foods = 7everages. The company has combined volumes o! about 8 million tonnes
and sales o! 4s.,0, 000 crores. 699 is also one o! the country>s largest e"portersA the
Government o! India has recogni(ed 699 as a Golden *uper *tar Trading 6ouse
2. NESTLE INDIA:
'estlU>s relationship &ith India started in ,5,2. It started its trading &ith India as The
'estlU $nglo.*&iss Condensed Mil Company (D"port) 9imited, importing and
selling !inished products in the Indian maret. 'estlU India is amongst India>s >Most
4espected Companies> and amongst the >Top :ealth Creators o! India>.
'estlU India is a subsidiary o! 'estlU *.$. o! *&it(erland. 'estlU India is a company
that provides Indian Consumers products &ith global standards and is committed to
constant gro&th and shareholder satis!action. 'estlU India has also provided
22
opportunities o! gro&th and employment to about , million people including !armers,
suppliers o! pacaging materials, services and other goods
3. DABUR INDIA<
Gabur India 9td. is the !ourth largest FMCG Company in India. Gabur deals in
6ealth care and ?ersonal care products. Today, Gabur has a turnover o!
4s.,B55.3; crores. The maret penetration o! Gabur is o! about ,.3 million retail
outlets all over India &ith 8; C= F agents and more than 3000 distributors. Gabur
India is divided into 2 ma%or strategic business units<
Consumer Care Givision
Consumer 6ealth Givision
8. CADBURY INDIA<
Cadbury entered India in ,58B by importing chocolates. $nd no&, it has
manu!acturing !acilities in Mumbai, ?une, G&alior, 7angalore, and 6imachal ?radesh
and 8 sales o!!ices at Mumbai, Eolata, 'e& Gelhi, and Chennai in India. Cadbury is
constantly engaged in the e"tension o! its products line to satis!y its customers. $
good e"ample o! this is 7ytes. 7ytes &as !irst launched in *outh India in 200-. The
corporate o!!ice is in Mumbai. Cadbury is into the business o! Chocolate
Con!ectionary, Mil Food Grins, and Candies
2-
2.4 SWOT ANALYSIS
STRENGTHS:
,) :ide range o! product and services.
2) :ide area o! net&or nationally.
-) *trong net&or o! distributors
8) 9o& cost o! products specially health drins
WEAKNESSES:
,) 9o& level o! a&areness in maret about the company
2) 'o ma%or promotional and advertisement strategy
-) ?oor 4esearch and Gesign in maing o! the products
OPPORTUNITIES
,) Giscovery o! ne& health drins &hich is not discovered by any other company.
2) Giscovery o! various health ingredients (lie minerals etc.) &hich is important !or
health purpose.
THREATS:
28
,) Threats !rom e"isting competitors in the domestic maret
2) Dntrance o! ne& companies &hich are o!!ering very lo& cost health drins
Marketing is the process by &hich companies create customer interest in goods or
services. It generates the strategy that underlies sales techni#ues, business
communication, and business developments. It is an integrated process through &hich
companies build strong customer relationships and creates value !or their customers
and !or themselves.
Mareting is used to identi!y the customer, to satis!y the customer, and to eep the
customer. :ith the customer as the !ocus o! its activities, it can be concluded that
mareting management is one o! the ma%or components o! business management.
Mareting evolved to meet the stasis in developing ne& marets caused by mature
marets and overcapacities in the last 2.- centuries. The adoption o! mareting
strategies re#uires businesses to shi!t their !ocus !rom production to the perceived
needs and &ants o! their customers as the means o! staying pro!itable.
The term marketing concept holds that achieving organi(ational goals depends on
no&ing the needs and &ants o! target marets and delivering the desired
satis!actions. It proposes that in order to satis!y its organi(ational ob%ectives, an
organi(ation should anticipate the needs and &ants o! consumers and satis!y these
more e!!ectively than competitors.
Marketing research
Mareting research involves conducting research to support mareting activities, and
the statistical interpretation o! data into in!ormation. This in!ormation is then used by
managers to plan mareting activities, gauge the nature o! a !irm>s mareting
environment and attain in!ormation !rom suppliers. Mareting researchers use
23
statistical methods such as #uantitative research, #ualitative research, hypothesis tests,
Chi.s#uared tests, linear regression, correlations, !re#uency distributions, poisson
distributions, binomial distributions, etc. to interpret their !indings and convert data
into in!ormation. The mareting research process spans a number o! stages including
the de!inition o! a problem, development o! a research plan, collecting and
interpretation o! data and disseminating in!ormation !ormally in !orm o! a report. The
tas o! mareting research is to provide management &ith relevant, accurate, reliable,
valid, and current in!ormation.
$ distinction should be made bet&een mareting research and maret research.
Maret research pertains to research in a given maret. $s an e"ample, a !irm may
conduct research in a target maret, a!ter selecting a suitable maret segment. In
contrast, mareting research relates to all research conducted &ithin mareting. Thus,
maret research is a subset o! mareting research.
Types of marketing research
Mareting research, as a sub.set aspect o! mareting activities, can be divided into the
!ollo&ing parts<
?rimary research (also no&n as !ield research), &hich involves the
conduction and compilation o! research !or the purpose it &as intended.
*econdary research (also re!erred to as des research), is initially conducted
!or one purpose, but o!ten used to support another purpose or end goal.
7y these de!initions, an e"ample o! primary research &ould be maret research
conducted into health !oods, &hich is used solely to ascertain the needs/&ants o! the
target maret !or health !oods. *econdary research, again according to the above
de!inition, &ould be research pertaining to health !oods, but used by a !irm &ishing to
develop an unrelated product.
Product
Product is de!ined as a Vthing produced by labor or e!!ortV or the Vresult o! an act or a
processV. *ince ,3;3, the &ord VproductV has re!erred to anything produced. *ince
2/
,/53, the &ord has re!erred to Vthing or things producedV. The economic or
commercial meaning o! product &as !irst used by political economist $dam *mith.
In mareting, a product is anything that can be o!!ered to a maret that might satis!y a
&ant or need. In retailing, products are called merchandise. In manu!acturing,
products are purchased as ra& materials and sold as !inished goods. Commodities are
usually ra& materials such as metals and agricultural products, but a commodity can
also be anything &idely available in the open maret. In pro%ect management,
products are the !ormal de!inition o! the pro%ect deliverables that mae up or
contribute to delivering the ob%ectives o! the pro%ect.
In general, product may re!er to a single item or unit, a group o! e#uivalent products,
a grouping o! goods or services, or an industrial classi!ication !or the goods or
services.
$ related concept is subproduct, a secondary but use!ul result o! a production process.
Product groups
Tangible and intangible products
?roducts can be classi!ied as tangible or intangible. $ tangible product is any physical
product that can be touched lie a computer, automobile, etc. $n intangible product is
a non.physical product lie an insurance policy.
In its online product catalog, retailer *ears, 4oebuc and Company divides its
products into departments, then presents products to shoppers according to !unction o
brand. Dach product has a *ears item number and a manu!acturer>s model number.
The departments and product groupings that *ears uses are intended to help customers
bro&se products by !unction or brand &ithin a traditional department store structure.
Sizes and colors
$ catalog number, especially !or clothing, may group si(es and colors. :hen ordering
the product, the customer speci!ies si(e, color and other variables.
2;
Product line
$ product line is Va group o! products that are closely related, either because they
!unction in a similar manner, are sold to the same customer groups, are mareted
through the same types o! outlets, or !all &ithin given price ranges.V
Many businesses o!!er a range o! product lines &hich may be uni#ue to a single
organi(ation or may be common across the business>s industry. In 2002 the )*
Census compiled revenue !igures !or the !inance and insurance industry by various
product lines such as Vaccident, health and medical insurance premiumsV and Vincome
!rom secured consumer loansV. The )nited 'ations also classi!ies products !or
international economic activity reporting.
Product analysis
?roduct analysis can tae di!!erent !orms but in general it means asing #uestions
about a product and !orming ans&ers. It can mean e"perts analysing a product or
members o! the general public or potential customers/groups o! people. ?roduct
analysis can tae place at almost any stage o! the design process.
?roduct analysis can be carried out by<
,. $n individual product being analysed.
2. $lternatively a number o! similar products can be compared &ith each other using
the same criteria.
WHAT IS THE PURPOSE OF PRODUCT ANALYSIS?
$ product may need analysing by a potential customer to help him/her decide &hether
it is &orth buying.
$ product may need analysing so that the design can be improved.
*ometimes a prototype or model may be analysed. In this &ay improvements can be
made be!ore the !ull si(ed, costly product is manu!actured.
WHAT IS A CRITERIA?
:hen analysing a product !irst prepare a list o! #uestions, this is no&n as a criteria.
2B
9oo at the table (above). For e"ample, the criteria listed belo& could apply to the
table &hen it is being analysed. D4G@'@MIC*
Is the table the right si(e(height, length and &idth). :ill a potential customer need to
stretch too !ar &hen using the tableW :ill this mae it uncom!ortable !or the
customerW C@*T
6o& much &ill it cost to manu!acture the product and ho& much &ill it sell !or in the
shopsW
IMPORTANCE OF HORLICKS
Increased Need for Nutrition:
?reschooler age is nutritionally the most vulnerable time in li!e. Cour child is no& in
a stage o! li!e &here his nutritional status is o! great importance !or his later physical
and mental development
.
Genetic !actors do play an important role in the gro&th and
development o! a child but there are areas in &hich you can mae a di!!erence.
7y the preschool age a child has started eating !amily !ood but his nutrient
re#uirements may not be met by &hatever little he can eat.
?reschoolers are at an age &here the essential organs are still developing. Important
organs lie the brain are still in the !ormative stage and your childIs intellectual and
physical development is under&ay.
7rain gro&th is time dependant, &hich means that once the gro&th phase has passed,
it cannot be revisited. :hen nutritional de!iciencies occur at a developmental age, it
may cause prolonged or permanent damage. It is there!ore important that the nutrients
that help in brain development are supplied ade#uately in the !ood that children eat at
this age.
25
The !irst !e& years o! li!e are also critical in shaping physical development. @n an
average a child gro&s 5J,0 cms in the second and the third year. 6is bones, teeth,
muscles and blood are gro&ing and developing and !or them to gro& ade#uatelyA
children need to be given a diet that is nutrient and energy dense.
$nother aspect that deserves attention at this important stage is immunity. ?reschool
is the time &hen your id steps out o! the house. 6e lies to play and e"plore things
around him and there!ore he needs all the protection that he can get. The
immunological system is not !ully mature at this age, resulting in a ris o! !re#uent
and severe in!ections.
Erratic Eating:
?reschool age is also the time &hen many children !uss about !ood and re!use to eat.
They may turn up their nose at healthy !ood and &ant to eat only chips and %un !ood
all day long. $t an age &hen the childIs diet is re#uired to be more nutrient dense than
an adultIs diet, !ussy eating may lead to nutritional de!iciencies.
Coung children also have a small stomach capacity &hich means that they cannot eat
as much as you can in one go. I! the normal !amily diet given to them is too buly and
has lo& energy density, children may be unable to eat enough to meet their energy
and nutrient re#uirements. Their stomachs &ill get !ull but they &ould not have got
their daily #uota o! nutrients.
Gid you no& that a - year old child re#uires almost 2.5 times more Fitamin $ and
almost 2.8 times more Fitamin C per g body &eight than a house&i!e
$ll these !actors put together mae essential !or parents to ensure that their child at
this age is getting all the nutritional support he deserves to build a strong !oundation
!or a healthy !uture
Promotional mix of GSK limited
-0
$dvertising
*ales promotion
?ublicity
Advertising
any paid !orm o! non personal selling o! the companyIs product by an identi!ied
sponsored is called as advertisement. G*E has engaged in many types o! advertising
campaign,
Advertising is used by GSK to
In!orm< about the ne& products launched in the maret by G*E 9imited.
?ersuade< customer to buy products.
The media mi" is no&n as Xabove the lineY promotion consists o! the ma%or methods
advertising G*E products under the !ollo&ing headings<
Television: it is probably the most recogni(able !orm o! advertising. Mareting
opportunities have increased as TF and computers have been combined in the internet
and multimedia o! o!!erings. Television advertising have mass reach, the products are
advertised across the &hole country &ith the potential to reach 531 o! the population.
'o other medium used by G*E has the same capability.
Print media: G*E gives print advertising in ne&spapers, maga(ines and %ournalsA
G*E uses this medium o! advertising less aggressively though it saves a lot o! money,
targets accurately.
Cinema: research has sho&n that there is a clear customer segment that regularly
goes to cinema and it is good media to advertise the product. G*E advertisements are
also sho&n in premier cinema halls.
Outdoor: outdoor posters are used as rein!orcement to the primary medium such as
TF or print. G*E has been e"tensively using this medium o! advertising.
-,
Sales promotion
The second ma%or promotional mi" method used by G*E, is the use o! sales
promotion also no&n as Xbelo& the lineY promotion. *ales promotions are short term
incentives used to boost sales. It taes the !orm o! some ind o! e"tra value that is
added to the product !or the period o! promotional campaign. The G*E sales
promotion strategy is to increase sales, either overall or on speci!ic models. Most o!
the schemes o! sales promotion are at national level. 9ocal level scheme are
!ormulated and implemented by regional o!!ices. G*E does its sales promotion in
three di!!erent &ays<
Consumer sales promotion: G*E promotion is usually a short term incentive
that urgently trumpets the message to the consumer Pbuy no& rather than later
other&ise it &ill be too late and the opportunity &ill be lost.
Dealer sales promotion: most o! the sales promotion schemes are !or dealers.
Generally incentives are given to dealers are based on the target achievement.
Publicity
The ne"t ma%or promotional mi" techni#ue used by G*E is the use o! publicity.
?ublicity is any !orm o! planned, unpaid !or media e"posure that promotes the
company or its products in !avorable light. This consists o! items o! ne&s or stories
that appears in ne&spapers, maga(ines and on the television about the organi(ation,
their products, their directors, their employees etc. G*E understands the value o!
good publicity. Mareting department o! G*E is concerned in using public relations
and publicity as a planned element o! the promotion mi" speci!ically to communicate
!avorable message to its customer about the organi(ations e"isting = ne& products.
The tool of publicity
The press or news release: the press is probably most &idely used by G*E
!or gaining !ree coverage in the national press. In!ormation is sent to the
ne&spaper to be printed.
Press and news conference< the ne&s con!erence is another method o!
building relationship and publicity, by G*E. Lournalist !rom both TF and
-2
press release are invited to hear some ne& development in the organi(ation.
$!ter the con!erence there is time allo&ed !or #uestion and ans&er session.
Events: G*E plans staging o! activity no&ing that it &ill be reported in the
media.
Public service activity: G*E has been actively involved in providing medical
support and &el!are education and training, taing steps to&ards conserving
energy resources and a host o! other activities in the development o! a
healthier community li!e and proving &el!are need. G*E has been
constructing and maintaining roads in Gurgaon.
Exhibitions: an e"hibition taes many !orms and is seen as a maretplace !or
both displaying products = services and as a &ay o! getting producers and
customers together. The mounting o! an e"hibition includes all the elements o!
the promotional mi". G*E taes part in various trade as &ell as consumer
e"hibition.
The ob%ective in taing part in e"hibition is<
To build good&ill, in!orm and educateA and pave the &ay o! !uture
sales.
To communicate corporate image.
To meet competitors.
To mae appointments and tae sales leads.
Sponsorship: is giving o! some !orm o! support, usually money, in return !or
an advertising, sales promotion, publicity or sales opportunity. There has been
enormous gro&th in this media !orm over the last decades and this loo to
continue into the !uture
Marketing Department
The Mareting Gepartment is responsible !or creating a Xcustomer pullY !or G*E
products. The main !unctions o! this department are<
$dvertising research
--
?roduct $dvertising and ?romotion
Corporate $dvertising
Formulating Corporate Identi!y Guidelines
@rgani(ing sales training !or dealers
@rgani(ing e"hibitions and rallies
Geveloping *ocially 4elevant Campaigns
?roviding *upport to dealers on advertising, promotion and sho&room up.
gradation.
Regional Offices
In order to manage the sales and service net&or, G*E has divided the country into
!ive regions, &hich are !urther into territories. It has !ive 4egional @!!ices located in
Gelhi, 7ombay, Calcutta, Chennai and Chandigarh and $rea @!!ices located at
9ucno&, 6yderabad = Mumbai.
Dach dealership operated in one territory, but does not have e"clusive selling rights in
the territory. The dealer is e"pected to service the entire territory through his
dealership.
The 4egional @!!ices (4@) has the primary responsibility o! managing, monitoring
and supporting the net&or in a region. The 4@ has !ield sta!! !or sales and services.
$ 4egional Manager (4M) heads each 4@. The sales sta!! has primary responsibility
!or all sales related issues, and report to 4M. The services engineeringIs loo a!ter the
&orshops in the region, and report to the 4egional *ervice 4epresentative (4*4).
Sales & Dispatch Department
The sales = Gispatch department (*=G) is responsible !or the logistics o! the sales
!unction. The main areas o! &or in the department, relevant to domestic dealers are
described. Dach group o! !unctions is assigned to a cell.
PRESS RELEASES : NEWS ARTCLES
-8
Gla"o*mithEline Consumer 6ealthcare records unprecedented gro&th !or the year
ended Gecember -,, 2005
Gurgaon, Gla"o*mithEline Consumer 6ealthcare 9imited (G*EC6) today declared
its !inancial results !or the year ended Gecember -,, 2005. 'et sales at 4s.,5,2,3
millions recorded an impressive gro&th o! 28./1 over 200B &ith ?$T at 4s. 2-2B
millions gro&ing by 2-./1 !or the same period and ?7T gro&ing by 2-.51, over last
year to 4s. -,3-5 millions. For the !ourth #uarter, net sales &ere 4s. 8,,B, millions,
&hile ?7T and ?$T &ere 4s. 8;- millions and 4s. --; millions respectively.
The 7oard o! Girectors o! the Company also recommended a !inal dividend Z 4s. ,B
per e#uity share o! 4s.,0 each to share success &ith its shareholders.
X2005 has been an e"tremely e"citing year !or G*EC6 &ith accelerated gro&th,
driven by customer centric innovation in e"isting and ne& product categoriesY, said,
Nubair $hmed, Managing Girector, Gla"o*mithEline Consumer 6ealthcare 9td
India. X:e as a company are &ell on our trac to become the leaders in the health and
&ellness category by delivering more products o! value to our customers and by
remaining !ocused on our ey areas o! e"pertiseY, he added.
The year sa& a sle& o! launches across categories by G*EC6 including 6orlics
'utri7ar, $ctiGro&, 6orlics ChillGood, Lunior 6orlics 7iscuits and t&o ne&
products in the last #uarter itsel! vi(. Foodles, multigrain instant noodles !rom
6orlics and 6orlics ?ro6eight, a speciali(ed ?rotein !ormulation containing
essential nourishment important !or a childIs gro&th. Eeeping in mind the signi!icant
increase in rural consumption, G*EC6 is also test mareting 6orlics $sha in
$ndhra ?radesh and Earnataa, a lo& cost 6ealth Food Grin (6FG) targeted at the
emerging semi.urban and rural consumer segment.
Horlicks launched in a new Toffee flavour
$ creamy to!!ee taste &ith all the bene!its o! 6orlics nourishment
'e& Gelhi, February 22, 2003<
-3
Gla"o*mithEline Consumer 6ealthcare today announced the launch o! 6orlics in a
ne& To!!ee !lavour as an addition to its e"isting range. To!!ee 6orlics &ill provide
consumers &ith a tasty, creamy to!!ee !lavour combined &ith all the bene!its o!
6orlics nourishment. To!!ee 6orlics is a vegetarian product and &ill be available in
a 300gm %ar pac priced at 4s.,,-/. across 'orth and :est India and at 4s. ,,0/. in
*outh and Dast India.
VTo!!ee 6orlics has been developed a!ter e"tensive consumer research revealed that
people across all age groups love the taste o! to!!ee,V said *hubha%it *en, General
Manager . Mareting, Gla"o*mithEline Consumer 6ealthcare . VThis universal taste
appeal combined &ith the goodness o! 6orlics nutrition creates a thoroughly
satis!ying and healthy product, one that &ill be en%oyed by all.V
To!!ee 6orlics is the si"th !lavour in the 6orlics port!olio< that is already available
in Chocolate, Fanilla, 6oney 7u((, *tandard and Dlaichi. The launch o! To!!ee
6orlics &ill be accompanied by e"tensive mareting support through a ne&
Television advertisement, promotional o!!ers and direct consumer contact programs.
GlaxoSmithKline Consumer Healthcare honors 24 wholesalers from South India
for 25 years of dedicated service
Chennai, 20 Gecember 2008
Gla"o*mithEline Consumer 6ealthcare (G*EC6) today organi(ed a special !unction
at the 9e Meridien, to !elicitate 28 &holesalers !rom *outhern India &ho have
completed 23 years o! a long and !ruit!ul partnership &ith the company. G*EC6
presented each &holesaler &ith a silver pla#ue, as a toen o! appreciation !or their
dedication and loyalty to&ards the business partnership &ith the company.
VG*EC6 has al&ays looed at its trade partners as part o! the G*E !amily. The
relationship is based on trust, transparency and providing them &ith a strong and
innovative line.up o! product o!!erings. :e are very pleased to honour these 28
partners in progress !rom the *outhern 4egion !or their impeccable loyalty to&ards
Gla"o*mithEline !or over 23 years. :e are sure that this mutually bene!icial business
-/
partnership &ill move to even greater strengths in the !uture,V said Mr. *ameer Goel,
Fice ?resident, Gla"o*mithEline Consumer 6ealthcare.
Horlicks Dream Team Celebrates Success
*i" students a&arded education scholarships &orth 4s. 23,000 each
7angalore, 3 th 'ovember 2008
The 6orlics Gream Team Contest culminated yesterday and sa& ?avan Eapnada
!rom Chennai, *amisha and 4e&an 4ai !rom Gelhi, *o&mya !rom Mumbai, *te!!ie
$nn Thayil !rom 6yderabad and 7ulbul 7hol !rom 7hubanesh&ar, &aling a&ay
&ith a year>s education scholarship &orth 4s. 23,000 each. The a&ards &ere presented
by reno&ned $ctor and TF $nchor Mr. Faroo#ue *heih. The closely contested
!inale o! the 6orlics Gream Team competition &as held at the 7. 4. $mbedar
7havan $uditorium.
The 6orlics Gream Team provided almost ,00,000 students !rom 8,300 schools
across !i!teen cities an opportunity to sho&case their talent. The event elicited huge
participation and ran parallel to 6orlics :i( Eids 2008. The 6orlics Gream Team
!inals brought together /0 students !rom di!!erent parts o! the country to 7angalore o
bring alive the concept o! dynamic development. These !inalists &ere trained on
varied areas, including communication sills by Mr. *yed *ultan $hmed and value =
vision by Gr. L M *ampath among others.
$s the competition progressed !rom one round to the ne"t, the number o! contestants
narro&ed to ,2, &ho competed in the !inal round and ans&ered #uestions !rom the
%udges. The participants &ere %udged on the parameters o! personality, attitude,
sensitivity, Talents, communication sills, intellectual understanding, values = vision
and overall abilities and character. The participants &ere ad%udged by an eminent %ury
consisting o! Mr. Faroo#ue *heih ($ctor and $nchor), *yed Eirmani (Criceter),
*&ati 4amanathan (Co Founder . Lanaagraha), Geepa *ridhar (?rincipal . Eumaran>s
Institutions) and Gr. *ampath (Trainer on value = vision and author).
-;
The uni#ue concept behind 6orlics> involvement in interschool cultural and literary
activities is to provide a plat!orm !or students to !lourish and discover their talents in
an atmosphere o! healthy competition. It is aimed at generating con!idence in school
students by providing them &ith a plat!orm to sho&case their talents. The ey driver
o! the event &as initiating participation !rom ids and evaluating them in varied
situations.
$ccording to *hubha%it *en, General Manager, Gla"o*mithEline Consumer
6ealthcare, VThe !ocus o! this initiative &as never on &inning but providing each
student an opportunity to display their talentsV.
GlaxoSmithKline Consumer Healthcare FY 04 Sales up 8, PBT rises 16.2
Q4 Sales up 10.8, PBT grows 50.3
Gurgaon, Lanuary 2B, 2003
Gla"o*mithEline Consumer 6ealthcare 9imited (G*EC6) today declared its
!inancial results !or the year ended Gecember -,, 2008. Gespite a di!!icult FMCG
environment, G*E Consumer 6ealthcare achieved *ales !or the !ull year o! 4s.
5B,.;2 crore, representing a gro&th o! B1. *ales !or the !inal #uarter &as at 4s.
2-5.B5 crore, a gro&th o! ,0.B 1.
G*EC6 per!ormance continues to endorse its strong leadership position in the 6ealth
Food Grin category. The company launched several ne& products in the year,
including 6orlics and 7oost in a ready.to.drin !ormat. It also introduced Lunior
6orlics and Mothers 6orlics &ith G6$ in ey marets. Maltova and 6orlics
7iscuits &ere relaunched and a ne& 6orlics pac is being test mareted in rural
areas.
-B
V'e& product innovation is helping gro& the category and &ill continue to be the
!ocus at G*EC6. Increasing opportunities !or consumption and broadening
distribution reach &ill also be ey priorities,V said 'ic Massey, Managing Girector,
Gla"o*mithEline Consumer 6ealthcare 9imited. VThe !uel !or our innovation is being
provided by our strong cost.savings program,V he said.
4.1 OB1ECTIVES
The !irst = !oremost step in any research &or is to identi!y the problems or
ob%ectives on &hich the researcher has to &or on
To study the products o! the company and mae an analysis o! the products
To study about the competitors o! the company
The importance o! the 6ealth drins
4.2 RESEARCH DESIGN
$ research design is the arrangement o! conditions !or collections and analysis o! data
in a manner that aims to combine relevance to the research problem &ith economies
in a procedure.
I have used descriptive research design !or my research.
-5
Descriptive Research
Gescriptive research includes surveys and !act !indings en#uiries o! di!!erent inds. It
basically gives a description o! the state o! a!!airs as it e"ists at present. $ researcher
has no control over the variables so they can only report &hat has happened or &hat is
happening. :e can also use the survey method !or this purpose.
4.3 DATA SOURCES
$ research design is one, &hich simpli!ies the !rame&or o! plan !or the study and
adds itsel! in the #uic collection and analysis o! the data. It is a blue print that has
been !illed in completing the study. Gata sources are<
Primary data
The primary data are those &hich are collected !resh !or the !irst time and thus happen
to be original in character. In other &ords, it is obtained by design to !ul!ill the data
are original in character and are also generated in a large number o! surveys
conducted mostly by government and also by institution and research bodies.
$ #uestionnaire &as prepared !or the respondents, &here there vie&s &ere collected.
Secondary data
The secondary data are those &hich have already been collected !or some purpose
other than the problem in hand and passed through the statistical process. In other
&ords, data that are not originally collected rather obtained !rom ?ublished and
)npublished *ources.
The secondary data has been collected through various sources<
Internet
7oos
'e&spaper
Maga(ines
7rochure
80
Lournals
:ebsites
4.4 QUESTIONNAIRE DESIGN / FORMULATION
Muestionnaires< . $ #uestionnaire consists o! a set o! #uestions presented to
respondent !or their ans&ers. It can be Closed Dnded o! @pen Dnded.
Open Ended: . $llo&s respondents to ans&er in their o&n &ords = are
di!!icult to Interpret and Tabulate.
Close Ended: . ?re.speci!y all the possible ans&ers = are easy to Interpret
and Tabulate.
Types of question included:
Dichotomous questions: . :hich has only t&o ans&ers XCesY or X'oY.
Multiple choice questions: . :here respondent is o!!ered more than t&o
choices.
Importance scale: . $ scale that rates the importance o! some attribute.
Rating scale:. $ scale that rates some attribute !rom Xhighly satis!ied Y to
Xhighly unsatis!ied X and Xvery ine!!icientY to Xvery e!!icient
7ut in this pro%ect report, the #uestionnaire includes only closed type #uestions
because it saves respondents time and helps them to understand easily.
4.5 SAMPLE DESIGN
$ sample design is a de!inite plan !or obtaining a sample !rom given population. It
re!ers to the techni#ues or procedures, the researcher &ould adopt in selecting items
!or the sample.
i. Sample element /unit
8,
The primary data &as collected through survey that &as systematically carried out
by the users o! health drins through #uestionnaire. The responses o! the
respondents &ere recorded in the #uestionnaire prepared !or them.
ii. Extent
D"tent re!ers to the area !rom the respondents belong. :e have conducted the
research mainly on the people o! Gelhi, that too speci!ically, north.east region.
iii. Time frame
Time !rame is the time spent on research. The time !rame !or our research is B
&ees.
iv. Sampling technique
*ampling techni#ue re!ers to the techni#ue or procedure the researcher &ould
adopt in selecting items !or the sample. :e have used %udgmental sampling !or
our research because gathering in!ormation !rom every individual is not possible.
v. Sample size
*ample si(e re!ers to the number o! respondents. To get a clear vie& &e have
conducted our research on ,00 people.
4.6 LIMITATIONS OF THE RESEARCH
*ince the sampling &as done in Gelhi only it does not represent the entire
picture o! Indian maret.
The #uestionnaire might have been !illed &ithout much attention to the
#uestions due to lac o! time by the respondents.
Incase o! ?rimary data, respondents &ere not very much interested in !illing
the #uestionnaire and sometimes it &as di!!icult to contact or meet the clients,
because o! their &or schedules and personal reasons.
There may be biasness against some personal pre!erences and &hich &ould
have led to un%usti!ied responses !rom the respondents.
82
?ersonally contacting the clients involved time and cost.
*econdary data &hen collected &as invaluable but due to passage o! time and
&ith many dynamic changes taing place in the marets, the in!ormation
losses its value in the current scenario.
$s gathering in!ormation !rom every individual &as not possible so &e have
to tae %udgmental sampling.
Q1.&hat is your age groupW
S.NO TYPE OF CHOICE AGE
, $ge group 23.-0 ,3
2 $ge group -0.-3 80
- $ge group -3.80 -0
8 $bove age 80 ,3
8-
INTERPRETATION<
From the above pie chart, &e can understand that age group o! 23 to -0 are more then
other three age groups .
Q2.&hat is your Gender W
S.NO TYPE OF CHOICE
, Male /3
2 Female -3
15%
40%
30%
15%
1 Age group 25-30
2 Age group 30-35
3 Age group 35-40
4 Above age 40
88
65%
35%
1 Male
2 Female
INTERPRETATION<
From the above pie chart, &e can understand that males as compared to !emales in the
survey group
Q3.&hat is your occupationW
S.NO TYPE OF CHOICE
, 7usinessmen 80
2 *ervice -0
- 6ouse&i!e ,0
8 @thers 20
83
40%
30%
10%
20%
1 Businessmen
2 Service
3 Housei!e
4 "#$ers
INTERPRETATION<
From the above pie chart, &e can see businessmen, service are more then house&ives
and others.
M8.6o& o!ten do you tae health drin in a dayW
S.NO TYPE OF CHOICE AGE
, @nce ,3
2 T&ice 23
- Thrice 80
8 More than - times 20
8/
% A%&
15%
25%
40%
20%
1 "nce
2 'ice
3 '$rice
4 More #$an 3 #imes
INTERPRETATION< From the above pie chart, it is clear that about 80 1 o! the
people tae health drin thrice in a day as compared to the 23 1 ratio o! the people
&hich tae health drin t&ice in a day
5. Go you tae 6orlicsW
S.NO TYPE OF CHOICE AGE
, Ces B0
2 'o 20
8;
% A%&
(0%
20%
1 )es
2 *o
INTERPRETATION< From the above pie chart, it is clear B01 ratio o! the people
lie 6orlics as compared to the 20 1 ratio o! the people &hich do not lie horlics.
M/. I! you donIt get 6orlics !or one day, then &hat &ould you doW
S.NO TYPE OF CHOICE AGE
, *tay &ith horlics ;3
2 )se any other health drin 23
8B
% A%&
+5%
25%
1 S#a, i#$ $orlic-s
2 .se an, o#$er $eal#$
/rin-
INTERPRETATION< From the above pie chart, it is clear that about ;3 1 o! the
people stay &ith horlics i! they do not get it !or one day as compared to the 23 1
ratio o! the people &hich uses any other health drin.
M;.Through &hich sources do you come to no& about 6orlicsW
S.NO TYPE OF CHOICE AGE
, ?rint media 20
2 4adio 03
- Television 33
8 Campaign/hoardings ,3
3 @thers 03
85
% A%&
20%
5%
55%
15%
5%
1 0rin# me/ia
2 1a/io
3 'elevision
4 2ampaign3$oar/ings
5 "#$ers
INTERPRETATION< From the above pie chart, it is clear that 33 1 o! the people
thin that Television is the medium through &hich they came to no& about horlics.
B. :hich is the best health drin Company in your vie&W
S.NO TYPE OF CHOICE AGE
, 6orlics /0
2 7ourvita ,3
- Complan ,0
8 Malto 03
3 @thers ,0
30
% A%&
60%
15%
10%
5%
10%
1 Horlic-s
2 Bourvi#a
3 2omplan
4 Mal#o
5 "#$ers
INTERPRETATION< From the above pie chart ,it is clear that about /0 1 o! the
people lie horlics as their best health drin company as compared to the ,3 1 ratio
o! the people &hich lie 7ourvita.
M5.$re you satis!ied &ith your present health drinW
S.NO TYPE OF CHOICE AGE
, Ces /3
2 'o -3
3,
% A%&
65%
35%
1 )es
2 *o
INTERPRETATION< From the above pie chart, it is clear that /3 1 o! the people
are satis!ied &ith their present health drin company as compared to the -3 1 ratio o!
the people &hich are not satis!ied.
,0. :hich !eatures do you thin 6orlics should have apart !rom other
companiesW
S.NO TYPE OF CHOICE AGE
, Cheaper rate ,3
2 Great taste 23
- Great health ingredients 30
8 @thers ,0
32
% A%&
15%
25%
50%
10%
1 2$eaper ra#e
2 %rea# #as#e
3 %rea# $eal#$
ingre/ien#s
4 "#$ers
INTERPRETATION< From the above pie chart, it is clear that 30 1 ratio o! the
people lie great health ingredients in the horlics &hich are not present in any other
company.
,,. :hich company product gives the cheapest rate in the industryW
S.NO TYPE OF CHOICE AGE
, Complan 23
2 6orlics 80
- Malto 20
8 @thers ,3
3-
% A%&
25%
40%
20%
15%
1 2omplan
2 Horlic-s
3 Mal#o
4 "#$ers
INTERPRETATION< From the above pie chart, it is clear that 80 1 ratio o! the
people lie horlics &hich o!!ers cheapest rate in the industry .
,2. Go you purchase product because o! companyIs name W
S.NO TYPE OF CHOICE AGE
, Ces /0
2 'o 80
38
% A%&
60%
40%
1 )es
2 *o
INTERPRETATION<
From the above pie chart, it is clear that about /0 1 o! the people purchase horlics
because companyIs name.
M,-. Go you thin that company is targeting its customer in the maret in
a proper &ayW
o Ces
o 'o
33
% A%&
6(%
32%
1 )es
2 *o
S.NO TYPE OF CHOICE AGE
, Ces /B
2 'o -2
INTERPRETATION<
From the above pie chart, it is clear that /B 1 o! the people thin that the company is
targeting its customer in the maret in a proper &ay as compared to the -2 1 ratio o!
the people &hich thin that the company is not targeting its customer in the maret in
a proper &ay.
Ma%ority o! the people tae health drin thrice in a day and believe that
6orlics is the best health drin
Most o! the people stay &ith horlics i! they do not get it !or one day
Television is the main medium through &hich people came to no& about
horlics.
3/
Ma%ority o! the people are satis!ied &ith their present health drin company
Ma%ority o! the people lie great health ingredients in the horlics &hich are
not present in any other company.
Most o! the people thin that the company is targeting its customer in the
maret in a proper &ay.
Ma%ority o! the people buy the products o! the company due to its name and
!ame
Most o! the people believe that 6orlics has the cheapest rate in the industry
Firstly Gla"o *mith care should segment the maret and then decides &hich
group o! customer they have to sale 6orlics .
Gla"o smith care should mae a separate policy !or competing &ith the local
brands.
3;
Company should launch schemes and discount specially targeting on poor
marets o! 'orth Gelhi.
$nother !or the increase the saleIs volume o! 6orlics Company should
increase their promotion activity lie road sho&, dealerIs meet, and
advertisement and customer a&areness programs.
The company should give some more rebates and Gi!t FoucherIs to retailers it
&ill encourage the retailers to sale more.
In some places company should chec out the activity o! distributor also
means are they providing to retailer all schemes &hat company is giving.
QUESTIONNIARE
Name: ________________
Age __________________
Occupation____________
Phone No.______________
3B
,. 6o& o!ten do you tae health drin in a dayW
a. @nce
b. T&ice
c. Thrice
d. More than - times

2. Go you tae 6orlicsW
a. Ces
b. 'o
-. I! you donIt get 6orlics !or one day, then &hat &ould you doW
a. *tay &ith horlics
b. )se any other health drin

8. Through &hich source do you come to no& about 6orlicsW
a. ?rint Media
b. 4adio
c. Television
d. Campaign/7oardingIs
e. @thers
3. :hich is the best health drin Company in your vie&W
a. 6orlics
b. 7oruvita
c. Complan
d. Malto
e. @thers
/. $re you satis!ied &ith your present health drinW
a. yes
b. 'o

;. :hich !eatures do you thin 6orlics should have apart !rom other
companiesW
a. Cheaper rate
b. Great Taste
35
c. Great 6ealth Ingredients
d. @thers

B. :hich company product gives the cheapest rate in the industryW
a. Complan
b. 6orlics
c. Malto
d. @thers
5. Go you purchase products because o! companyIs nameW
a. yes
b. 'o

,0. Go you thin company is targeting its customer in the maret in a
proper &ayW
a. yes
b. 'o
Books:
,. Eotler ?hilip, Mareting Management ,?rentice 6all o! India ?vt. 9td,/
th
Ddition,200,
2. Falarie $.Neithaml ,Mary Lo 7itner, *ervice mareting ,TM6.-
rd
Ddition ,
,555
/0
-. Gupta *.? and Gupta ,M.?. 7usiness *tatistics, sultan chand and sons ,2
nd
Ddition,,55B
Newspapers:
,. Times o! India
2. 6industan Times
-. The Dconomic times
Websites:-
,. &&&.horlics.com
2. &&&.britannia.com
-. &&&.nestleindia.com
/,