RAHUL KUMAR

Roll.no-DM21D40
PGDM-4
TO
Prof.G-Praveen Sir

MARKETING PLAN
Bourn Vita
1
 MARKETING PLAN
Contents
Executive Summary ...................................................................................................................................... 3
Industry Analysis .......................................................................................................................................... 4
India’s FMCG Industry ......................................................................................................................... 4
URBAN MARKET vs RURAL MARKET IN INDIAN FMCG SECTOR ......................................... 5
Strong growth in Indian FMCG sector ................................................................................................. 6
Growth drivers for India’s FMCG sector .............................................................................................. 8
India’s Malted drink market .................................................................................................................. 9
ABOUT THE COMPANY ......................................................................................................................... 11
Mission and Vision ..................................................................................................................................... 12
PRODUCTS AND SERVICES .................................................................................................................. 13
Marketing Mix of Bournvita (4 P’s) ........................................................................................................... 16
PRODUCT .............................................................................................................................................. 16
PRICE ..................................................................................................................................................... 17
PLACE .................................................................................................................................................... 17
PROMOTION ......................................................................................................................................... 17
Competitors of Bournvita ........................................................................................................................... 19
BCG Matrix Analysis ................................................................................................................................. 23
PESTLE ANALYSIS OF BOURNVITA ................................................................................................... 24
SWOT ANALYSIS OF BOURNVITA ...................................................................................................... 27
STRENGTH............................................................................................................................................ 27
WEAKNESS ........................................................................................................................................... 28
OPPORTUNITY ..................................................................................................................................... 28
THREATS .............................................................................................................................................. 29
SEGMENTATION, TARGETING AND POSITIONING OF BOURNVITA (STP) ............................... 30
Potters five forces model ............................................................................................................................ 32
Financial Analysis....................................................................................................................................... 34
Conclusion .................................................................................................................................................. 35

2
 Executive Summary

The objective of this advertising plan venture is to play out a total situational and
market examination of Cadbury Bournvita. At this moment it has around 4.5 lakh
stores in India and it will increment considerably more later on. Bournvita is one of
the most famous milk supplements in India. Cadbury Bournvita has 19.20% of
market share in India malted drink sector. Recently known as Bourn-Vita, the
brand of malted and chocolate malt drink blends sold in Europe and North
America. The brand additionally covers India, Nepal, Nigeria, Ghana, South
Africa, Benin and Togo.
The project includes an introduction of FMCG sector and Indian malted drink
market and various analysis and strategic policies for Cadbury bournvita which
includes Market analysis, SWOT analysis, Competition analysis, Segmentation,
Targeting and positioning policies, marketing mix 7 P’s of the market, and
marketing research. The report also includes the PESTLE analysis, Potter’s five
forces model and BCG matrix to understand the report more effectively.
It also include various financial analysis such as break even analysis, Sales
forecast, Expenses forecast and budgeting and then at last process of
implementation and evaluation of the whole plan.

3
 Industry Analysis

India’s FMCG Industry

To have a look on Cadbury bournvita market analysis, first it is necessary to start
from the very starting. So malted drinks are categorized under the FMCG sector.
So at first we will see the FMCG sector and its scope in India.
FMCG is the fourth largest sector in the Indian Economy. India’s household and
personal care is the leading segment, accounting for 50 per cent of the overall
market. Healthcare (31 percent) and food and beverages (19 percent) comes next in
terms of market share. FMCG industry is expected to grow 7.5 – 8.5 percent in 2022.

4
 URBAN MARKET vs RURAL MARKET IN INDIAN
FMCG SECTOR

Urban - Rural industry breakup in FMCG.

45%, US$ 23.74

billion

55%, US $29.01
billion

Urban Rural

All out income produced in both rural and urban region, accounted US $52.75
billion.
Representing an income portion of around 55 percent, urban fragment is the
biggest supporter of the general income produced by the FMCG area in India.
Country fragment is developing at a quick movement and represented an income
portion of 45 percent in the general incomes recorded by FMCG area in India.
FMCG items represent 50% of absolute rustic spending. Over the most recent
couple of years, the FMCG market has developed at a quicker movement in rustic
India contrasted with urban India.
Interest for quality products and ventures is on an upward direction in rural areas
on the rear of improved conveyance channels of distribution and FMCG
organizations.
FMCG urban fragment saw a development pace of 8 percent, while, the provincial
portion developed at 5 percent in the quarter finished September 2019.

5
Strong growth in Indian FMCG sector

Trends in FMCG revenues over the years (US$ billion)

2020
103.7

2019
83.3

2018
68.4

2017
52.8

2016
49

0 20 40 60 80 100 120

Revenue of FMCG sector was Rs 3.4 lakh crore (US $52.8 billion) in the FY17 and are
estimated to reach US$ 103.7 billion in 2020F. The union budget 2020 initiatives to increase
consumer spending among middle class is expected to boost consumer confidence and improve
demand generation for branded consumer products.
FMCG sector will gain support for growth from Inland Waterways Authority of India (IWAI)
multi-modal transportation project of freight village at Varanasi, which will bring together
retailers, warehouse operators and logistics service providers, and investments worth Rs 1.7
billion (US $23.35 million)
Nielsen India estimates the FMCG industry to grow at 9-10 percent in the next coming year as
against 13.8 percent in 2018.

6
 Boost in FDI Inflows and Investments

A quick lift in FDI inflows and interests in India prompts development in interest
in FMCG area in India. 100% FDI is permitted in food preparing and single-brand
retail and 51 percent in multi-brand retail. This would support work and flexibly
chains and give high visibility to FMCG brands in coordinated retail market,
reinforcing shopper spending and empowering more item launchers. The area saw
sound FDI inflow of US$ 16.28 billion during April 2000 – March 2020.
Speculation expectations identified with FMCG area emerging from paper mash,
sugar, aging, food handling, vegetable oils and Vanaspati, cleansers, beauty care
products and toiletries enterprises worth Rs 19,846 crore (US$ 2.84 billion) was
executed until December 2019.

Cumulative FDI inflow share - April 2000 to March 2020

(US$ million)
0.93%

6.01%

9.79%

8.91%

13.06% 61.29%

Sub - sector Food processing

Retail trading Paper Pulp
Soap, cosmetics & Toilet preperations Vegetable Oils

7
 Growth drivers for India’s FMCG sector
• Shift to organized market
• Increase in penetration
• Easy access
• Rural consumption

Shift to organized market

Organized sector is expected to grow as the share of unorganized FMCG market
has seen a fall with increased level of brand consciousness. Growth in modern
retail will augment the growth of organized FMCG sector. Post GST and
demonetization, modern trade share grew to 10 percent of the overall FMCG
revenue.

Increase in penetration
Low penetration levels of branded products in categories like instant foods
indicating a scope for volume growth. Investment in this sector attracts investors as
FMCG’S products have demand throughout the year. Increase in food parks to 17,
food processing capacity to 1.41 million and food labs to 42. ITC to invest Rs 700
crore (US$ 100 million) in food parks in Madhya Pradesh.

Easy Access
Availability of products has become way easier as internet and different channels
of sales has made the accessibility of desired product to customers more
convenient at require time and place. Online grocery stores and online retail stores
like Gofers, Flipkart, and Amazon are making FMCG products more readily
available.

Rural Consumption
Rural consumption has increased, led by a combination of increase in income and
higher aspiration levels. There is an increased demand for branded products in
rural India. Also we can say, huge untapped rural market. Nielsen India estimates
the FMCG industry to grow 9-10 percent in next year against 13.8 percent in 2018.

8
 India’s Malted drink market
Malted milk drinks, which are as much as 33% sugar, have been breakfast staples
of upwardly versatile families in India since officers carried Unilever’s Horlicks
back with them after the First World War. Presently, following a time of twofold
digit development, deals in India rose 8.6% in 2017 and could drop to a large
portion of that this year. By 2022, the market will grow by just 2.7%, Euro monitor
screen figures.

Sales of malt drinks (in US million dollars)

132
170

187

187 1162

210

India Nigeria Indonesia Philippines Malaysia Thailand

According to a report, India has more sales of malted drink than the next five
biggest markets combined. India individually sold worth US$ 1162 of malted
drinks, which is way more than the other bigger malted drinks consumption
countries.
Nigeria was in 2nd position with US$ 210 million generated from malted drinks.
Indonesia and Philippines comes next into the picture with having same value
generated form malted drink market, i.e. US$ 187 million.

Malaysia and Thailand were among of the bottom of the top 6 malted drinks sales
generated leaders in the world with having US$ 170 million and US$ 132 million
respectively.

9
For quite a long time, the producers have showcased their malted beverages as
wellbeing nourishments, with ads that advanced them as giving additional energy.
India turned into the world's greatest market for the items, even as their
prominence declined somewhere else. Euro monitor gauges India represents
practically 50% of worldwide deals.

Despite of having world’s leader in malted drink market, India shows a massive
slowdown in the health drink market. According to the euro monitor the annual
sales growth of malt based drinks in India are forecast to decline in the upcoming
years.
Consumers are switching the drinks with less sugar. Many of the malted drinks in
India includes one-third of sugar. Nowadays, consumers are more health conscious
thus, decreased the consumption of the malted drink which have one-third of sugar.

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ABOUT THE COMPANY
Bournvita is a brand of malt and chocolate malted drink mixes manufactured by
Cadbury, a subsidiary of Mondelez International. It is sold in many countries of
Europe and North America and also in India, Bangladesh, Nepal, Ghana, Benin,
Togo, and South Africa.
Cadbury India has started their business by starting importing chocolate. With over
the experience of 60 years in the country, it has six manufacturing company at
important places in India and four sales offices in the metropolitan cities of India.
The corporate office is located in Mumbai.
It is among the oldest brands in the malt food category with a very old heritage and
always been known to provide the best nutrition for the all-round growth and
development.

How it started
It was developed in England in 1920 and was marketed as a health drink. The
initial recipe was consisting of full cream milk, fresh eggs, malt, and chocolate. It
was later industrially manufactured and started selling in Australia in 1933.
The name was derived from the village named Bourneville in England which was
near the size of the factory of Cadbury. In India, it was first sold in 1948 and in the
same year, Cadbury India was established. Bournvita always redevelop itself in
terms of packaging, product, promotion, and distribution.

11
Mission and Vision
MISSION
Cadbury’s mission statement says simply: “Cadbury means quality”; this is our
promise. Our reputation is built upon quality; our commitment to continuous
improvement will ensure that our promise is delivered.

VISION
Cadbury’s vision is the promotion of brands carrying mass franchise without
compromise on quality or margins, better product quality and packaging,
increasing the market depth including rural India’s coverage as in malted drink
rural areas are not covered.
The company also take care of all round efficient and effective utilization of
tangible as well as intangible assets such as brands and people and surplus cash
generation either gainfully or meaningfully reinvested in business or return to the
stake holders.

12
 PRODUCTS AND SERVICES

Cadbury bournvita has a variety of products. It deals with women and children
health drink. It has also launched its biscuits. The products of bournvita are the
followings: -

Cadbury bournvita health

Cadbury’s bournvita health drink is available is

different quantity. It is available on 500g, 750g, 1 kg etc. The prices are also differ
according to the quantity. It is mainly for the grown up kids. And it is available in
both pouch and plastic container. It has maximum shelf of 1 year.

Cadbury’s bournvita 5 star magic

13
Like the bournvita health drink, Cadbury’s bournvita 5 star magic is also available
in different quantity. But it is a bit costlier that the bournvita health drink. Its
500mg pack is available in the range of Rs 220-240. This variety of bournvita is
also available in different quantity. It has maximum shelf life of 1 year.

Cadbury’s bournvita lil champs

Cadbury’s bournvita lil champs is mainly

for the children between the ages of 2 to 5 years. It has a maximum shelf life of 9
months. Its 500mg pack is available in the range of Rs 295 to 310.

Cadbury bournvita women chocolaty flavor

14
Cadbury bournvita women is targeted for the women. It claims the nutrition of
vitamin D, folic acid, calcium and iron. Apart from 500g, 750g and 1kg package,
Cadbury bournvita women is also available in the 400g package which comes at a
price range of Rs 270-290.

Cadbury bournvita inner strength

Cadbury bournvita inner strength is available and

comes at a price range of Rs 220 – 240 for 500g. Likewise other bournvita malted
drink it is also available in 500g, 750g, 1kg and other packages.

15
 Marketing Mix of Bournvita (4 P’s)

PRODUCT
Bournvita is showcased as a nourishing beverage that is additionally a dietary
enhancement. It furnishes nourishment to youngsters alongside flavor and great
taste. Its unique formula included chocolate, malt, new eggs and full-cream milk.
At present, its fixings incorporate salt, minerals, sodium bicarbonate, allowed
emulsifiers, nutrients, fluid glucose, milk solids, cocoa powder, sugar and malt
remove.
Its healthful diagram incorporates protein, Vitamin B12, C and A, folic corrosive,
iron, calcium, niacin, thiamin, riboflavin and pyridoxine. Target clients for this
chocolate drink are really youngsters to make them sharper and stronger. To keep
up the interest of youngsters, Bournvita has offered flavor alternatives. A portion
of its items are as per the following-
Bournvita Five Star Magic-Comes in chocolate and remarkable caramel flavor and
incorporates a blend of basic minerals, iron and nutrients like C and D.
Cadbury's Bournvita-It gives fundamental supplements and aides being developed
of bones
Bournvita Lil Champs-Made for small kids and incorporates excellent protein and
DHA Omega 3
Bournvita women- Made for mothers, for essential nutrients and protein.

16
PRICE
Price is a significant part of an item and in spite of the fact that it is valid for
different items yet with regards to wellbeing and kids, it takes a secondary lounge.
Bournvita is extended as a wellbeing drink with bunches of nutrients and dietary
benefit that is significant for kids. The housewife by and large makes the buy and
with regards to kids she won't settle on item independent of costs. Bournvita has
embraced a more excessive cost range than its rivals yet it has extended its item as
having better dietary benefits. This is the fundamental purpose behind the
achievement of its valuing strategy. To battle the costs of its rivals, it embraces
different plans now and again. Giving unconditional presents like a chess game,
plastic mugs, additional item at same costs are a few different ways to monitor its
valuing strategy.
PRODUCT QUANTITY PRICE (in Rs.)
Bournvita lil champs 500g 295-310
Bournvita women 500g 270-290
Bournvita health 500g 210-230
Bournvita inner strength 500g 220-240
Bournvita 5 star magic 500g 220-240

PLACE
Bournvita is an exceptionally famous wellbeing food item brand that has spread its
organization in different nations like North America, Europe, Togo, Benin, South
Africa, Kenya, Ghana, Nigeria, Nepal and India. Initially the beverage was made in
England in the year 1920 however in the year 2008, its creation was ceased. In the
year 1933, it was produced and later sold in business sectors of Australia and it
entered the Indian market in the year 1948.
Bournvita has an incredible reach to its clients through the efficient circulation
channel. It is accessible in the majority of the retail locations, markets,
arrangement stores and clinical stores.

PROMOTION
Great publicizing strategy is the thing that takes a brand forward as it expands
mindfulness about the items in minds of customers. It has re-constructed itself
occasionally as far as circulation, advancement, items and bundling. In spite of the
fact that its genuine purchaser is youngsters however it has focused on ladies for

17
special exercises as it understands that it is a mother who will buy this beverage. In
the majority of its plugs, the publicists utilize both mother and her kid. For better
visibility, Bournvita has attempted a few limited time exercises. It has been
important for test challenge called Cadbury Bournvita Quiz Contest since the year
1972 as a live show, a public broadcast and later as a conspicuous show on TV.

Bournvita is additionally connected with a reality program on TV named Bournvita

Confidence Academy. As a feature of limited time exercises brand has been
appropriating gifts to pull in kids. It has likewise connected itself with Cartoon
Network through characters like Dexter and Power puff girls. Previous cricketer
Ajay Jadeja has been its image envoy already.
Apart from that Actress like Kajol and Kareena Kapoor had also been a part of the
promotion of Bournvita he slogan of Bournvita incorporates Upbringing to
knowledge; Good childhood, Real Achievers who have experienced childhood
with Bournvita.

18
 Competitors of Bournvita

Competitor’s analysis

Market share

5.60%
12%

12.60%
52.60%

17.20%

Horlicks Bournvita Boost Complan Others

In India, in the malted drinks market, Horlicks enjoys the market share with 52.60
percent of market share. Cadbury Bournvita in 2nd with having 17.20 percent of
market share. After that Boost and Complan comes next, having 12.60 and 12
percent of market share respectively. The remaining market share 5.60% is covered
by the other players in the market like Milo, Malt ova etc.
This data shows that real competition exist between Bournvita, Boost and Complan
as they have minor difference in the market share. In case of Horlicks the real
competition doesn’t exist as Horlicks covers very huge market share in malted
drinks. Hence there is no risk for Horlicks form the competitors for now.

19
Horlicks is a sweet malted milk hot beverage powder created by authors James and
William Horlick. It was first sold as "Horlick's Infant and Invalids Food", before
long adding "matured and explorers" to their mark. In the mid twentieth century it
was sold as a powdered feast substitution drink blend.
Horlicks has categorized its product into toddlers, kids and adults.
In toddler’s category, Horlicks has targets preschoolers and the children between
the ages of 2 – 5 years. For toddlers Horlicks has a product named Junior Horlicks
which claims essential nutrients for the growth and development of the toddlers
and preschoolers.
In kid’s category, Horlicks has 2 products, named, Horlicks and Horlicks growth
plus. It is for the children above the age of five. Horlicks growth plus is also
available for the 18 years age of children.
In adult’s category, Horlicks has a wide range of product. They have targeted
people above age of 30 years, women, mothers as well as the adults for the day to
day energy. They have the following products in the adult’s category: -

• Lite Horlicks
• Women’s Horlicks
• Mother’s Horlicks
• Horlicks Cardia plus
• Horlicks protein plus

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Complan Foods is a British company that makes powdered milk energy drinks. It
was acquired by Danone in 2011. In India, the Complan brand is owned by Zydus
Wellness.
Complan was launched by Glaxo in 1954. As part of Glaxo's Farley Health
Products subsidiary, the Complan UK brand was sold to Boots in 1988. In India,
Complan remained with Glaxo until 1994, when it was acquired by Heinz, who
also acquired the UK brand in the same year. Its USP was that it was a completely
planned food.

Complan is available in 6 different flavors. The flavors are chocolate, pista badam,
kesar badam, and strawberry, mango, caramel and natural. The price range of
Complan products is between Rs 120 to 250.
The main strategy of Complan was that it claims that, Complan is clinically proven
and helps children to grow height, and this became instant hit in the Indian market.
It claims that Complan helps children to grow 2 times faster.

21
Boost is one of India’s leading Malt Based/ Cereal based beverages launched in
1975. It is clinically proven to increase stamina by three times. It claims that it is
fortified with 17 essential vitamins and minerals.
From very starting Boost has a legacy of iconic ambassadors who have all
proclaimed that “Boost is the secret of my energy”, right from Kapil dev, Sachin
Tendulkar, Virender Sehwag to Mahendra Singh Dhoni, Virat Kohli, Rishabh Pant
and Shreyas Iyer in recent times.

It is available in Chocolate flavor and continues to be favorite health food drink in

the market. A ready to sip pack of boost is also available for on-the-go
consumption.

22
 BCG Matrix Analysis
BCG matrix is a system made by Boston Consulting Group to assess the key
situation of the business brand portfolio and its latent capacity. It characterizes
business portfolio into four classifications dependent on industry allure (growth
rate of industry) and serious position (relative market share). These two
measurements uncover likely benefit of the business portfolio as far as money
expected to help that unit and money created by it.

BCG Matrix Analysis For Bournvita along with

Competitors
Horlicks Bournvita Boost Complan
6.00%
STARS QUESTION MARKS

5.00%

4.00%

3.00%

CASH COWS DOGS

2.00%

1.00%

0.00%
4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00

23
 PESTLE ANALYSIS OF BOURNVITA

Political
Expert
INFLUENCE
reviewer(Probability Average weight
POLITICAL OF
FACTORS
of changing factor on Rating corrected
a scale from 1-5)
score

1-----3 1 2 3 4

1 Pricing regulation 2 3 4 2 3 3 0.4

2 Increased no of Inspections 2 3 2 4 3 3 0.4

3 Stability of Government 3 4 4 4 4 4 0.8
Trade regulation and tariffs
4 3 4 3 4 4 3.75 0.75
related to health drinks.
Tendencies to regulation in the
5 3 5 3 3 4 3.75 0.75
industry.
6 Tax rates and incentives 2 4 3 3 3 3.25 0.433333
7
8 total 15

Economical
INFLUENC Expert reviewier Averag weight
ECONOMIC E OF
FACTORS
(Probabilty of changing
factor on a scale from 1-5)
e
Rating
correcte
d score

1-----3 1 2 3 4

1 3 4 3 4 3 3.5 0.65625
Economic Growth rate
2 Inflation rate 3 4 4 3 3 3.5 0.65625
3 Business cycle stage 3 4 3 3 3 3.25 0.609375
4 Stability of the currency 2 3 3 3 3 3 0.375
5 Infrastructure Quality 3 4 2 2 4 3 0.5625
6 The unemployment rate 2 3 3 3 3 3 0.375
7
8 total 16

Social

24
 Expert
INFLUENCE
reviewer(Probability Average weight
SOCIOLOGICAL OF
FACTORS
of changing factor Rating corrected
on a scale from 1-5)
score

1-----3 1 2 3 4

The standard of living,

1 1 3 4 5 4 4
education 0.285714
2 Attitude towards health 3 5 4 4 4 4.25 0.910714
3 Healthcare facilities 3 3 3 4 3 3.25 0.696429
4 The influence of the media 2 2 2 3 3 2.5 0.357143
5 The level of migration and 2 3 3 3 4 3.25
demographic growth 0.464286
6 Impact of COVID 3 4 5 5 4 4.5 0.964286
7
8 Total 14

Technological

INFLUENC Expert reviewier(Probabilty Averag

TECHNOLOGICAL E OF of changing factor on a scale e weight
FACTORS from 1-5) Rating correcte
d score

1-----3 1 2 3 4

1 The level of innovation in the 1 3 4 4 3 3.5 3.0625

industry
2 Technology development cycle 1 2 3 4 3 3 2.25
3 The degree of technology use 2 3 3 3 3 3 2.25
4

5 Total 4

25
Legal

Expert
INFLUENCE
reviewier(Probabilty Average
LEGAL OF
FACTORS
of changing factor Rating
weight
on a scale from 1-5) corrected
score

1-----3 1 2 3 4

Health and safety law 2 3 3 3 3 3

1 1.5

Consumer protection 1 2 3 2 2 2.25

2 0.5625
3 Employment law 1 3 3 2 2 2.5 0.625
4 0
5 0

Environmental

Expert
INFLUENCE
reviewer(Probability of Average
ENVIRONMENTAL OF
FACTORS
changing factor on a Rating weight
scale from 1-5) corrected
score

1-----3 1 2 3 4
1
2.25

2 Support for renewable energy 2 2 2 3 2 0.9

Waste management in health drink 2

3 sector 1 2 2 2 2 0.4
3.25
4 Pandemic occurrence 2 3 3 4 3 1.3
5 0
6 Total 5

26
 SWOT ANALYSIS OF BOURNVITA

SWOT examination or analysis of Cadbury's Bournvita investigations the

brand/organization with its strengths, weakness, opportunity and threats. A SWOT
examination is intended to encourage a practical, truth based, information driven
glance at the qualities and shortcomings of an association, its drives, or an
industry. The association needs to keep the investigation exact by staying away
from pre-considered convictions or hazy situations and rather zeroing in on
genuine settings. Organizations should utilize it as a guide and not really as a
remedy.
In Cadbury's Bournvita SWOT Analysis, the strengths and weakness are the inside
variables though opportunity and threats are the outside components.
SWOT Analysis is a demonstrated administration system which empowers a brand
like Cadbury's Bournvita to benchmark its business and execution when contrasted
with the contenders and industry. Starting at 2020, Cadbury's Bournvita is one of
the main brands in the food and drinks area.

STRENGTH
1. Big brand visibility of Bournvita attributable to solid parent brand Cadbury,
undertaken by Mondelez.

27
2. Bournvita has great promoting and showcasing efforts which work out
positively for the intended interest group.
3. Excellent reach and distribution of Bournvita through retailers, basic food item
shops and markets. Mondelez is the proprietor of an immense channel of
distribution and offers to in excess of approximately 2 million sources just in India.
The beverage is sold even in towns and villages today either as containers, bundles
or sachets.
4. Bournvita has persistently re-created itself as far as item, bundling, advancement
and appropriation
5. Plenty of flavor options are accessible in Bournvita (Caramel, 5 Star and so
forth).

WEAKNESS
1. Food items have a restricted timeframe or shelf life. Many of bournvita products
have a shelf life of just 8 to 9 months which became a hurdles for the retailers to
kept the bournvita products in storage
2. One of the loophole in the bournvita products is that it doesn’t mix well with
cold milk. Many adults as well as kids prefer cold milk and the most common issue
they face is that the bournvita does not mix well in cold milk.
3. There is no clear differentiation between different variants of Bournvita and they
are all primarily chocolate flavored drinks. However, the company is trying
to differentiate it using ingredients as the key.
4. Bournvita does not have a new feature to showcase but primarily follows a path
or positioning set by market leaders like Horlicks or Complan.

OPPORTUNITY
1. Mothers are more worried about the health and nutrition needs of their
youngsters and whether their eating regimen is adjusted. The correct advertising
and situating can assist with boosting up the sale of bournvita.

28
2. Today the guardians need their children to dominate in all regions and that
incorporates both curricular and co-curricular and they are happy to put resources
into anything that guarantees more elevated levels of accomplishment. This makes
a ton of explicit need which can be utilized to make new objective portions.
3. Untapped rural business sectors can be an enormous opportunity for Bournvita.
If Bournvita can able to lure the rural market than it can be very beneficial.
4. Leverage Cadburys fruitful brand further to help Bournvita around the world.
5. Relaunch of kids based challenges like Bournvita Quiz Contest. Launching these
kind of challenges does not only increase the brand awareness but also give a
social reputation in the market.

THREATS
1. The competition for Bournvita includes drinks like Boost, Horlicks, Malt ova
etc. are one of the biggest threats for the bournvita. Horlicks has a market share of
53 percent, and bournvita has 17 percent of market share, which signifies that it is
far behind from the leading brand. The remaining players are toe to toe with
bournvita, which result an obvious threat for bournvita.
2. Health conscious customer are avoiding to consume the malted drink as they
claims that it contain excess amount of sugar as well as enhancing agents which is
not good for body and health. These kind of things can severely hit the malted
drink products
3. Nowadays, children prefer strawberry or rose flavor over chocolate flavor.
Bournvita is mainly available in only chocolate flavor. Change in taste and
preference of the customer can affect the sale of the bournvita.

29
SEGMENTATION, TARGETING AND POSITIONING OF
BOURNVITA (STP)

SEGMENTATION
• Demographic
Cadbury has divided the commercial center for their lead item "Bournvita"
demographically. Bournvita has divided its item on premise of period group that is
5-16 and a specific product, Bournvita women for the mothers. It is focusing on
one of the greatest client groups in India. Youngsters give excessively far
essentialness to condition and Cadbury has tended to both the things amazingly
well. Bournvita Lil Champs defined close by experimentally demonstrated fixings
like DHA and whey protein, came to be a faultless condition drink for kids in the
midst of the early stages of 2 to 5 yrs.

• Behavioral
Advantages that the item offers are as per the following:

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Proteins-7 grams,
Fats-2 grams,
Starches 84 grams of which sugar is 70.3 grams.
Hence the significant segment of the Bournvita for example sugars gives energy.

TARGETING
The greater part of the Cadbury's special exercises depend on the youngsters and
kids who impact their folks to purchase Bournvita. Additionally it draws in moms
as Mother's are more stressed over the wellbeing and sustenance needs of their
youths and whether their eating routine is changed.
Bournvita offers remarkable mix on wellbeing and taste. In this way it focused on
mother's anxiety about their youngster's wellbeing and taste inclinations.
It additionally pulled in youngsters with gifts constantly an ideal opportunity to
time.

POSITIONING
Positioning is the method by that the advertisers try to create an image or perceive
in the brains of the objective commercial centers for its produce, image or
association.
Bournvita has consistently situated itself as a kids drink and has been propelling
itself that way. In 1970, brand situated as an item that helps in great childhood and
used the slogan "goodness that develops close by you." Across 80's concentrated
adjusted from childhood to knowledge. In 1990's the firm reached it should zero in
on completed state of the adolescent and consequently changed its concentration to
body and mind.
The brand used an abbreviation RDA, to support the condition situating. The brand
used a clever Nutritional meter to speak the RDA equation: 2 cups of Bournvita for
adjusted nourishment.

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 Potters five forces model

Rivalry

Obtained Obtained
Factors -1 0 1 Remark Grade
Number of competitors Many Neutral Few Many 0
Size of competitors Big Neutral Small Big -1
Industry Growth Low Neutral High Low -1
Product Differentiation Small Neutral Big Small 0
Exit Barriers High Neutral Low Neutral 0
Customer Loyalty Low Neutral High Low 0
-2

Threat of New
Entrants

Obtained Obtained
Factors -1 0 1 Remark Grade
Economies of Scale Low Neutral High Neutral 0
Customer Loyalty Low Neutral High Low 0
Capital Requirements Low Neutral High Neutral 1
Technology Protection Low Neutral High Low 0
Favorabl Non
Government Policies e Neutral Favorable Neutral -1
Access to Distribution
Channels High Neutral Low High 1
1

Threat of Substitutes

Obtained Obtained
Factors -1 0 1 Remark Grade
Cost of Change Low Neutral High Neutral 1
Substitute Performance High Neutral Low Low 1
Number Of Substitutes Many Neutral Few Few 0
2

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Power of suppliers
Obtained Obtained
Factors -1 0 1 Remark Grade
Number of Suppliers Few Neutral Many Neutral 0
Supplier Concentration High Neutral Low Neutral 0
Switching Costs High Neutral Low Low 1
Available Substitutes Less Neutral Many Neutral 0
Strength of Distribution
Channels High Neutral Low High -1
Uniqueness of supplier's
Products High Neutral Low Low 0
0

Buyer's Power
Obtained Obtained
Factors -1 0 1 Remark Grade
Number of Buyers Many Neutral Few Many -1
Switching Costs Low Neutral High Low -1
Difference between
competitors Low Neutral High Low 0
Price sensitivity High Neutral Low High 0
Available substitutes Many Neutral Few Few 1
TOTAL -1

Threat of New Entrants

Rivalry among Existing

Bargaining Power of Suppliers
Customers

Bargaining Power of
Threat of Substitutes
Customers

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 Financial Analysis

The overall revenue of Indian malted drink is estimated to be US$ 1162 million. In
which the market leader is Horlicks with a market share of more than 50 percent.
Bournvita came to the 2nd with the 17 percent and having the revenue of US$ 199.8
million.
Despite of downfall of the Indian malted drink market and a bit higher range of the
product as compare to the others players in the Indian malted drink market,
Bournvita is doing a good job holding the decent market share. Let’s look into the
graph about the revenue of bournvita and rest of its competitors in the Indian
malted drink market.

Revenue in US$ million

700

611.2
600

500

400

300

199.8
200
146.4 139.44

100

0
Horlicks Bournvita Boost Complan

Revenue

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 Conclusion

On the basis of the above analysis we can conclude that despite of having a huge
growth rate in the food and beverages category of the FMCG sector, Indian malted
drink market is decline at a rapid pace. In 2013 the growth rate in Indian malted
drink market was nearly 15 percent and now it’s just 4.7 percent and predicted to
decline to 2.2 percent in 2022.
Bournvita has managed to take 2nd position in the Indian malted drink market but
still is far behind from the market leader, Horlicks who is enjoying more the 50%
percent of the total market share. Through BCG matrix it is concluded that
Bournvita came under the category of question mark which is valid reason to
worry for the Bournvita and Co.
Bournvita need to launch a bit new products with different types of flavors and
with less amount of sugar in its ingredients to lure the audience. Also Bournvita
has to use a renowned face for advertisement. These things may push the sales of
the bournvita.

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