Health Drink Revolution

The Race Begins

AKSHAY SHROTRIYA

Indias Health Obsession
Reasons behind a growing inclination of Indian consumers towards healthier
food and beverages -

High level of consumerism backed by rising income levels (~$400 in 2001 to
~$1100 currently) (Health accounted for ~10% of household expense & is
risiing)
Exposure to wide product offerings in developed markets
Higher rate of urbanization (27% in 2001 to 31% in 2011)
Rising health issues owing to changing lifestyles
Aggressive marketing by health food and beverages brands
Rising concerns among consumers about efficacy of traditional foods
Two faced nutritional problems one due to excess and other from
deficiency
Health Food Market
Functional foods(combinations of all types of health foods) seen as an effective
measure to arrest the growing nutritional deficiency problems

The concept of functional foods was coined by Japanese scientists relating four
essential pillars nutrition, sensory satisfaction, fortification and modulation
of physiological systems

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

Health and Wellness Foods market estimated at 10000 crores in 2012 and
expected to grow to 55000 crores by 2015 at a CAGR of 33%
FSSA Food
Safety and
Standards
Act, 2006
(India)


As per FSSA,
Functional
foods
Includes
powders,
granules,
tablets,
capsules
Health-drinks
Divided into two categories White powders (Horlicks, Complan etc) and
Brown powders (Bournvita, Boost etc)

Health drink powders consumed as milk substitute & nutrient boosters

Indias Health-drinks market pegged at around 4000 crores (90000 tonnes) and
expected to reach approximately 8000 crores by 2016

India is worlds largest malt-based drinks market with a share of almost 22% in
the worlds total retail volume(Malt is germinated cereal grains that have been
dried in a process known as malting)



White
Powders
~65%
Brown
Powders
~35%
Warring Factions
GlaxoSmithKline
Horlicks
Boost

Kraft-Cadbury (Mondelez International)
Bournivita
Heinz
Complan
Amul
Nutramul
Pro

Market-share of Major Brands
Horlicks 51 %
Bournvita 16.2%
Complan 13.9%
Boost 12 %
Brand Trust Ratings by
Trust Research Advisory
The Bulls Eye
Horlicks
Tagline : Proven for making kids taller, stronger and sharper
Target Group : Kids aged 5-15 years and Mothers (Communication)
Positioning : A nutritional supplement that positively enhances physical and
mental growth of kids
USP : Huge emphasis on the proven efficacy for childs mental & physical
growth on the basis of results from a series of researches

Boost
Tagline : Boost is the secret of winning energy
Target Group : Children and adults looking for an energy drink
Positioning : Always positioned as an energy drink hence the tagline. It is
promoted as being the only HFD proven to increase stamina by three times
USP : Strong Sportsmen endorsements(Kapil Dev, Sachin Tendulkar, Virender
Sehwag, MS Dhoni) leading to brand following by kids

The Bulls Eye
Bournvita
Tagline : Tayyari jeet ki (preparing to win)
Target Group : Children aged 5-15 years & Mothers ( For Communication)
Positioning : Help kids to grow faster and enhances goodness of milk(Calcium)
USP : Strong advertising and taste appeals most in the category to the TG


Complan (COMplete PLANned)
Tagline : Extra growing power with Complan
Target Group : Children aged 5-15 years & Mothers ( For Communication)
Positioning : Help kids to grow taller at twice the rate
USP : Backs its tall claims by multiple researches

Claims (Product and Benefits)
Horlicks :
27 vital nutrients Proteins, Multi-vitamins and DHA
Nutrisorb technology Makes nutrients easily absorbable(& more effective)


Boost :
EnVita Nutrients Systematic combination of vitamins and minerals
important for energy metabolism and hence increasing stamina


Claims (Product and Benefits)
Bournvita :
Enriched with vitamins that help in childrens physical and mental growth
High on vitamin D which enriches goodness of milk (calcium and other
nutrients)
High on whey protein content

Complan :
34 vital nutrients (including iron, iodine and essential fatty acids)
Includes 100% milk protein for better growth of kids
Almost 52% milk solids making it extremely helpful for growing kids


Major Research Claims by Brands
Complan
Benefits proven through an independent study conducted in 2008 for 12 months
on the children with age-group 7-12 years in Coimbatore

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

Horlicks
..boiling of milk robs it of almost 25% of its nutrient value..
benefits proven with the help of a study conducted by NIN, Hyderabad on
micronutrient enriched beverages on 869 school children

Truth vs Hype
Complan
Calcium, Niacin and Protein value below the declared value
Calcium and Fat content found to be below the declared value



Bournivita
Niacin content below declared value
Niacin content below declared value

* Results based on consumer voice report July 2013 released by Department of Consumer Affairs, GoI
Truth vs Hype
Boost
Iron content found to be least among the competing brands
Niacin value found lower than declared



Horlicks
Niacin value found to be maximum among the competing brands
Calcium and Fat content found to be below the declared value
* Results based on consumer voice report July 2013 released by Department of Consumer Affairs, GoI
The Path Ahead
Indian HFD market is a growth market with
tremendous opportunities (Check graph)

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

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

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

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


0
1000
2000
3000
4000
5000
6000
7000
8000
Market Size in crores
2006 2013 2016*
Consumer Behaviour
Consumers attitudes regarding HFD purchase is largely influenced by quality
attributes of the product

No direct relation between brands and their sensory perceptions

Price, quality attributes and sensory perceptions are three major factors that
makes a brand in the eyes of consumer better than other

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

Brand loyalty stands out as a very significant factor in HFD purchase
Mostly consumers will wait for their brand in case its not available at the time
of purchase instead of buying another brand
Need
Recognition
Information
Search (low)
Evaluation of
Alternatives
Purchase
Post-purchase
Evaluation
Cognitive
Dissonance
Brand
Loyalty
Age segments
Biggest TG is the age group of 5-15 years in terms of
products offered to each TG

Other segments have exactly same number
of products offered for them (Of the brands
considered in this analysis)

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

Complan, Boost and Maltova covers one segment
each
16%
15%
39%
15%
15%
Share of products offered in
each age group
1-3 years
4-6 years
5-15 years
Above 15 years
Above 25 years
Brand Benefits Segments

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


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


Recently Horlciks and Bournivita in particular have
also adopted a new proposition where they promise
to enrich and strengthen the nutrient value of milk.
With only 12% of considered brands adopting this
positioning it holds the last position
25%
19%
19%
25%
12%
Share of products offering
based on benefits promised
Essential Nutrients
Physical Growth
Mental Growth
Energy
Enrich milk
Key Success Factors in HFD Market
Strong market and consumer behaviour understanding to gauge consumer
expectations and market offerings ( Gap Analysis)
Unique, clear and relevant brand proposition to the consumers
Sensory appeal is very significant since end-consumers are kids who are fussy about
taste and flavours
Clear distinction between communication for kids and mothers since both are
significant players in purchase decision and require different satisfaction points to
finalize on a product and purchase
Competitive pricing since price and value for money are important attributes in
purchase decision for HFDs and it is very important to remain affordable yet
attractive to consumers
Backed by strong distributions system and feedback mechanism to ensure availability
and a connect between brand and consumers

References
Consumer Voice Report July 2013 , Department of Consumer Affairs
Functional Foods: Marketing Health To Modern India(Manish Sharma and Shweta
Garg)
Customers' Behavior in Health Food Drink Product Category (Dharmesh Motwani
and Khushbu Agarwal)
News Releases from Leading Newspapers and Magazines
Times of India
Economic Times
Business Line
The Hindu

Thank you