FMCG (Health food drinks) Industry

Horlicks vs Complan

Presented by
Aswin Sreedhar
Kirrthiga
Pranay
Shreeja
Varadharaj
Vishnu
 Overview
o FMCG (Health Food Drinks) Industry
o Size of Industry
o Major Players and Market Shares
o Major Forces shaping the trajectory of the industry
o Company and Major Product lines
o History
o Indian Operations
o Flagship Products
o Major product lines
o Recent forays
o Future plan
o STP
o Market Research
o Mass Communication
o The Communication Mix

o Brand Elements

o Survey

o Analysis
o New Product Launch
Prepared by: Sreeja
FMCG Industry
 The Indian FMCG sector is the fourth largest in the economy.

 With a market size of US$ 25 billion (2007–08 retail sales), it constitutes 2.15 % of

India’s GDP.
 Large and growing youth population, emergence of organized retail business, growing

urbanization and increasing disposable income has translated into a large market
opportunity for FMCG players.
 The industry is poised to grow between 10 to 12 per cent annually.

 PepsiCo India's beverage business, Hindustan Unilever Limited, ITC and Dabur India

are key players in India.

Prepared by: Shreeja

 Market segments
Food products is the largest

consumption category in India,

accounting for nearly 21 per cent of the
country’s GDP.
Some of the leading players in this

segment include Britannia Industries

Ltd, Dabur India Ltd, GlaxoSmithKline
Consumer Healthcare India Ltd and
Gujarat Cooperative Milk Marketing
Federation (GCMMF).

Prepared by: Shreeja

Health Food Drinks Segment

Prepared by: Shreeja

Continued…
Health food drinks are nutrient supplying drinks which are prepared by adding malt or wheat

based powders to milk.

The milk shortage of the 60s was what first fuelled the growth of this sector.

With the availability of milk being rare and quality always suspect, milk additives were in high

demand.

The following decades saw the sector cruising along at an 8-10% growth rate, with milk shortages

fuelling growth.

The sector saw a flurry of launches from Complan, Horlicks, Boost, Bournvita, etc.

The estimated Rs.9 18 billion health drinks market in India is growing at an annual rate of 20%

as per AC Nielsen data.

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Major Player 1
 GLAXO SMITHKLINE is one of the largest players in the Health Food

Drinks industry in India.

 It manufactures and markets the products like: Boost, Horlicks, Maltova,
and Viva which occupy most of the market share.

Prepared by: Shreeja

Major Player 2

 HEINZ came to India in 1994 by taking over the Family Products Division of Glaxo.
 It provides taste and nutrition through globally trusted products like Heinz Tomato Ketchup

and strong local products like Complan - with extra growing power, Glucon-D - the refreshing
energy drink, Nycil - the most effective prickly heat powder.

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Major Player 3

 CADBURY was incorporated in India on July 19th, 1948 as a private limited company.
 It produces Bournvita, which is a very good and tasty health food drink.

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M
 NESTLE INDIA is a subsidiary of Nestle S.A. of Switzerland. It is acknowledged amongst

India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'.
 It produces brands like Milo, Maggi noodles, Kitkat, Polo, Munch and the very famous Nescafe
coffee.

 AMUL is a brand name managed by Gujarat Cooperative Milk Marketing Federation

(GCMMF), which is India's largest food products marketing organization.

 It produces many items related to milk like flavoured milk, butter, cheese, sweets, ice creams,
chocolates etc.
 The Gujarat Cooperative Milk Marketing Federation (GCMMF) came into the white health-
food-drink market with Amul Shakti.
 Amul Shakti, unlike other wheat and barley based drinks, is a unique combination of Milk and
natural goodness of Kesar (Saffron) & Almond. Its a complete food in a drink.
Market Share

Source: http://www.scribd.com/doc/29323537/Bournvita

Prepared by: Krithika

 BCG MATRIX
Market share

star Question mark

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History
 Sir WILLIAM HORLICKS

 The original manufacture & patent holder of the malted drink.

 Now a product from- GSK Consumer Health.

 Launched in the year 1930 .

 Launched as an additive & substitute to milk.

 Most trusted health drink brand (6th position in trusted brand list).

 Market share of more than 50%.

Prepared by: Pranay

Positioning
 It was initially introduced both a substitute & an additive to milk

 It was initially positioned itself as “food for convalescing” & a nutrient supplement for
kids only.

Prepared by: Pranay

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• Now Proven, Taller Stronger Sharper 2008
• Taller Stronger Sharper 2005
• Great Family Nourisher 2003
• Drink that could build Resistance 2002
• Pleasurable Nourishment 1970
• Drink for Elderly and Sick helping in quick 1960
recovery
Positioning and Re-positioning
Place  Over 1800 wholesalers

 Over 4,00,000 retail outlets.

Manufacturer  Sales have been strong in the south and

eastern markets which contributes about 46

Distributor
per cent and 47 per cent of the total sales.

Retailer  Milk-deficient South and East preferred

white liquid powders.

Consumer

Prepared by: Aswin

 Price
Flavours
Horlicks
Elaichi Chocolate Honey Buzz Vanila
Weight Jar Refill Jar Refill Jar Jar
(Grams)
200 57 - 57 - - -

500 108 103 108 103 108 108

1000 199 189 - - - -

HORLICKS JUNIOR WOMEN’S HORLICKS

Weight Weight Jar Refill
(Grams)
Jar Refill (Grams)

200 58 - 200 100 -

500 114 105 500 - -

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Promotion
 GSK invest 350 Crores in advertising for 2010

 Nearly 500 vending machines, placed at institutions such as school,

corporate & hospitals.

 Organized events like- Wiz kid & Dream Team.

 “Badlo Apne Bachpan Ka Size”

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Financials
Sales Net Profit
 2006 - 1210 2006 - 126
 2010 - 2306 2010 - 300

Growth
17.5% increase in sales
24.2% increase in net profit

It is targeting growth rate of 14-18% and a turnover of Rs. 1,800 crore in the next
18-24 months

Source : Economic Times, Livemint

Prepared by: Aswin

Horlicks Brand Extension
 Junior Horlicks – 1995

 Mother's Horlicks – Relaunched in 2005

 Women's Horlicks – 2008

 Horlicks Lite & Lite Bite 

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What did not Work
Horlicks Biscuts - 1997

Horlicks Asha

Horlicks Chilled Doodh

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What is to Expect from Horlicks ?

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• Positioned to target health conscious families Current
• Introduced new variants and innovative flavors
• Acquired by HJ Heinz 1995
• Repositioned to target children as ideal “growth 1975
supplement”
• Made available OTC. 1969
• Glaxo launched Complan in India 1964
.
History
 Complan
MARKET SEGMENTATION

Mass Marketing

 Geographical segmentation

South and East Indian Markets

Demographic segmentation

High Income
Young and old age

Prepared by: Krithika

 COMPLAN TARGET market

 Growing Children

 Infants

 Health conscious mothers

 Elders

 Busy executives

 Pregnant and Lactating mothers

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 COMPLAN -positioning
Complete planned food with 23 rich nutrients.

Perceived as Sick man’s Drink

Positioned as “complete planned food” for

growing children

Repositioned as healthy family drink

High price but superior quality

Positioned as innovative product with great taste

with new flavour variants

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 Complan-BRAND EXPANSION
COMPLAN FOR GROWTH:

• COMPLAN KESAR BADAM(2009)

This new launch

has been a big hit
across the Country

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Complan-BRAND EXPANSION
Complan Family lite (2005):

•Complan Memory (2007): Complan Nutri Grow :

 What did not work
• Complan Biscuits (2004)

•Complan Nutri Bowl Muesli Cereal (2008)

COMPLAN-MARKETING strategy
PLACE: It follows a direct
distribution channel •Over 1,600 distributors
•Over 4.5 lakhs retailers across the country

Manufacturer

Distributor

Retailer

Consumer

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 COMPLAN-MARKETING strategy
PRICE:
Priced higher than the competitors due to the nutrition contents
Flavors
Weight Choco Choco Plain Mango Complan
(gm) (jar) Memory

50 - - - - 27

200 68 78 55 60 -

500 140 150 120 - 215

1000 245 - - - -

Price in Rupees.
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 COMPLAN-MARKETING strategy
 PROMOTION: Advertisement investment of

Heinz is Rs.300 crore from the year 2007 and

100 crore for the coming year.
Sponsored for various sports events
 Complan Junior Open
 Complan under-15 National cricket talent

search
 Campaigns in school

Complan’s New Micro site launched on 2010 .

Prepared by: Krithika

PROMOTION:

• Aggressive promotional
campaign against Horlicks
by Comparative advertising

• Claimed to have increased

the market share by 2%
 FINANCIALS and Future
Rs.900 crore worth HJ Heinz competes with HUL,

Nestle, GSK in the health drink segment.

40% of Heinz sales comes from Complan.

Ready to eat foods and Cookies.

Market Research and Analysis
Problem Statement:

Sample Size: 40

Research Method : Mixture of Exploratory and

Descriptive study
Sample Split
Sample Male - Female Ratio

Adult
8% Male
Teenage 55% Female
13% 45%
Young
80%
Q1. What comes to your mind when you
hear of health drinks?
Others
18% Complan
30%

Juice
8%

Boost
10%

Bournvita Horlicks
18% 18%
Q2. Do you use any health drinks for your
family?

No
8%

Yes
93%
Q3. If yes, For whom in the family?

Elders
9%
Child
22%
Adults
20%

Teenager
17%

Young
31%
Q4. Name 5 brands that come to your mind
when you think of health drinks?
Rank 1 Rank 2
Others
13% Others
Milo 13% Complan
3% 18%
Complan
30%
Boost Boost
23% 18%

Horlicks
Horlicks 38%
25%
Bournvita Bournvita
10% 13%
 Rank 3 Rank 4
Complan
Others 9%
15% Others
Complan 18% Horlicks
Milo 23% 12%
3%

Milo
Boost 18%
21% Horlicks
15% Bournvita
29%
Boost
Bournvita 15%
23%
Rank 5
Horlicks
6%

Others
38% Bournvita
28%

Milo
28%
Q5. Which health drink do you use?

Others Complan
Boost 13% 25%
13%

Bournvita Horlicks
25% 25%
Q6. How do you like your health drink to be
served?

Ice
11%

Hot
44%
Cold
27%

Room Temp
18%
Q7. What attributes do you look for in a health
drink? Price Nutrition

Rank 1 Rank 2
3% Rank 5 Rank 6
5% 3% 3%
Rank 4
Rank 6 Taste 8%
Rank 1
33% Rank 3 Rank 3 33%
25% 13%

Rank 3 Rank 4
Rank 5 5% 3%
15% Rank 4
20%
Rank 2
43%

Rank 2
35% Rank 1
58%
 Solubility Packaging

Rank 1 Rank 6 Rank 1 Rank 2

3% 8% 3% 3%
Rank 6
13% Rank 2
13% Rank 3
8%

Rank 5
23% Rank 3
25% Rank 5
Offers 40%
Rank 4
Rank 1 40%
Rank 4 3%
25%

Rank 6 Rank 3
33% 25%

Rank 4
13%

Rank 5
28%
Q8. To what extend does advertising
influence your choice of health drinks?

20%
30%

Very much
Average
Not at all

50%
Q8. How did you know about your favourite
health drink ?
Others
11%
Doctor's Suggestion
13%
TV
Retail Suggetstions 49%
4%
Neighbours & Friends
23%
Q9. Identify the tagline
18%
25%

The Complete Planned Food

Taller Stronger Sharper
I am a ___ boy, I am a ____ girl
18%
Yipang upang japang
17% ______ is the secret of my Energy

23%
 Q10. Which Ad Campaign do you like the most
(Overall)

35% Complan
38%
Horlicks
Bournvita
Boost

35 35
28%
35
30
22.5
25
20
15
All data in Percentages
10 5
2.5
5 0
0
The Taller I am a ___ Yipang ______ is No ____ No
Complete Stronger boy, I am a upang the secret of Milk
Planned Sharper ____ girl japang my Energy
Food
Q11. Why do you like the campaign?
8% 8%
23%

8%

Sports Association
Cute
JLT
8% Touchy
Retention of Old Campaign
13%
Celebrity Endosement
Creative
Others

5%
30%
Q12. What more do you expect from the
product ?
3%
3% 3%
5%

8% 33% Milk shake

Ice cream
More Tasty
8% More Chocolate
More Energy
More Flavours
Complete Food
10% Must Mix well with Alcohol
Less Preservatives
Price Less
10% 20%
 Analysis - 1
Which health drink comes to mind Ad campaign people liking
and and
what is used
what product people use

50% 50% 43%

Like and use the same
Like something use
something else
58%
Analysis - 2
Results
Most of the people like Boost
 Celebrity Endorsement
 Good Recall
References
1. http://www.livemint.com/2009/09/10200407/Nutrac
eutical-market-in-India.html
2. http://www.merinews.com/article/indian-nutraceuti
cals-market-estimated-to-be-usd-1-billion/15805342.
shtml
3. http://www.fnbnews.com/article/detnews.asp?articl
eid=18133&sectionid=32\
4. The Economic Times New Paper
5. http://www.thehindubusinessline.in/catalyst/2003/0
7/10/stories/2003071000120300.htm
6. http://www.livemint.com/2010/09/13184319/GSK-
consolidates-Horlicks-bran.html