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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,
packaged foodstuff, household accessories and extends to certain electronic goods.
These items are meant for daily of frequent consumption and have a high return.
A major portion of the monthly budget of each household is reserved for FMCG
products. The volume of money circulated in the economy against FMCG products is
very high, as the number of 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 network. Companies spend a large
portion of their budget on maintaining distribution networks. New entrants who wish
to bring their products in the national level need to invest huge sums of money on
promoting brands. Manufacturing can be outsourced. A recent phenomenon in the
sector was entry of multinationals and cheaper imports. Also the market is more
pressurized with presence of local players in rural areas and state brands.
The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest
sector in the economy. A well-established distribution network, intense competition
between the organized and unorganized segments characterizes the sector. FMCG
Sector is expected to grow by over 60% by 2010. That will translate into an annual
growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise
from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair care,
household care, male grooming, female hygiene, and the chocolates and confectionery
categories are estimated to be the fastest growing segments, says an HSBC report.
Though the sector witnessed a slower growth in 2002-2004, it has been able to make a
fine recovery since then.
1
For example, Hindustan Levers Limited (HLL) has shown a healthy growth in the last
quarter. An estimated double-digit growth over the next few years shows that the
good times are likely to continue.
Growth Prospects
With the presence of 12.2% of the world population in the villages of India, the Indian
rural FMCG market is something no one can overlook. Increased focus on farm sector
will boost rural incomes, hence providing better growth prospects to the FMCG
companies. Better infrastructure facilities will improve their supply chain. FMCG
sector is also likely to benefit from growing demand in the market. Because of the low
per capita consumption for almost all the products in the country, FMCG companies
have immense possibilities for growth. And if the companies are able to change the
mindset of the consumers, i.e. if they are able to take the consumers to branded
products and offer new generation products, they would be able to generate higher
growth in the near future. It is expected that the rural income will rise in 2007,
boosting purchasing power in the countryside. However, the demand in urban areas
would be the key growth driver over the long term. Also, increase in the urban
population, along with increase in income levels and the availability of new
categories, would help the urban areas maintain their position in terms of
consumption. At present, urban India accounts for 66% of total FMCG consumption,
with rural India accounting for the remaining 34%. However, rural India accounts for
more than 40% consumption in major FMCG categories such as personal care, fabric
care, and hot beverages. In urban areas, home and personal care category, including
skin care, household care and feminine hygiene, will keep growing at relatively
attractive rates. Within the foods segment, it is estimated that processed foods, bakery,
and dairy are long-term growth categories in both rural and urban areas.
Indian Competitiveness and Comparison with the World Markets
The following factors make India a competitive player in FMCG sector:
2
Availability of raw materials
Because of the diverse agro-climatic conditions in India, there is a large raw material
base suitable for food processing industries. India is the largest producer of livestock,
milk, sugarcane, coconut, spices and cashew and is the second largest producer of
rice, wheat and fruits &vegetables. India also produces caustic soda and soda ash,
which are required for the production of soaps and detergents. The availability of
these raw materials gives India the location advantage.
Labor cost comparison
Low cost labor gives India a competitive advantage. India's labor cost is amongst the
lowest in the world, after China & Indonesia. Low labor costs give the advantage of
low cost of production. Many MNC's have established their plants in India to
outsource for domestic and export markets.
Presence across value chain
Indian companies have their presence across the value chain of FMCG sector, right
from the supply of raw materials to packaged goods in the food-processing sector.
This brings India a more cost competitive advantage. For example, Amul supplies
milk as well as dairy products like cheese, butter, etc.
3
FMCG Products and Categories
1. Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps);
2. Cosmetics and toiletries, deodorants, perfumes, feminine hygiene, paper products;
3. Household care fabric wash including laundry soaps and synthetic detergents;
household cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners, air
fresheners, insecticides and mosquito repellents, metal polish and furniture polish;
FMCG IN 2010
The performance of the industry was inconsistent in terms of sales and growth for
over 4 years. The investors in the sector were not gainers at par with other booming
sectors. After two years of sinking performance of FMCG sector, the year 2008 has
witnessed the FMCGs demand growing. Strong growth was seen across various
segments in FY06. With the rise in disposable income and the economy in good
health, the urban consumers continued with their shopping spree.
After 4 years of dull performance in both revenues and profits, FMCG sector has now,
i.e. since 2008, gained the momentum, principally because of the smaller companies
that have substantially improved their market shares at the cost of larger players and,
in some cases, the regional players
If we carefully observe the FMCG index and BSE index, we would realize that the
returns on money invested in FMCG index are much lower than the returns in
benchmark index. The FMCG sector has under performed the benchmark BSE Sensex
in 2009. Though both the indices were close to each other till August 2009, in the
later half of the year the Sensex surpassed the FMCG index by a reasonable margin.
Comparison of 2009 and 2008
After two years of sinking performance of FMCG sector, the year 2008 has witnessed
the FMCGs demand growing. Strong growth was seen across various segments in
FY06. With the rise in disposable income and the economy in good health, the urban
consumers continued with their shopping spree. The rural demand grew at around
4
11%, while both the urban and rural sector together registered a growth of around 8%.
Packets and sachets contributed to the highest growth in rural areas. Growth in FMCG
depends on two factors:
Increase in penetration and consumption in rural areas
Change in aspirations and tastes of the urban population
Both these factors contributed to growth in 2009. Besides demand, prices also
increased, because of which only the selected consumers moved up in the value chain.
The large format retail stores in metros also stimulated sales, even if on a very small
base. Some companies absorbed higher input prices, while others were able to pass on
the cost to the consumers. FMCG is the fourth largest sector of the Indian Economy.
FMCG sector generates 5% of total factory employment in the country and is creating
employment for three million people, especially in small towns and rural India.
According to a CII-A T Kearney report, the FMCG sector in India is expected to grow
at a compounded annual growth rate (CAGR) of 9% to a size of Rs 1,43,000 crores by
2010 from Rs 93,000 crores at present. With a growth of 52.5%, the BSE FMCG
Index has, during the last one year, outperformed the Sensex, which could manage a
growth of 41% only. A well-established distribution network, intense competition
between the organized and unorganized segments, low operating cost, strong branding
characterize the sector.
The large consumer base, particularly in rural sector, and the growing middle class
open up huge opportunities to FMCG companies to take the consumers to branded
products and offer new generation products.
The sector's lack-luster performance in the last few years was due to price competition
and increase in raw materials cost. However, in the FY06, the sector has witnessed a
double-digit growth in profits and revenues. The sector has registered an up trend in
growth across categories, such as health supplement, shampoo, toothpaste, hair oils,
and mosquito repellant, as shown in table below:
5
Sales Value Growth %
Categories 2007-2008 2008-2009 2009-2010
Health Supplement
(Chyawanprash)
-5% 0% 23%
Shampoo 10% 23% 19%
Toothpaste 5% 6% 16%
Hair Oils 9% 18% 23%
Mosquito Repellant 13% 10% 29%
Sector Financials In millions
2009 2008 2007
Net Sales
Sales Growth
164,196
10.8%
148,241
2.0%
145,380
-
Profit after Tax
PAT Growth
19,595
16.6%
17,001
-24.2%
21,008
-
Market
Capitalization 74,746 65,810 63,072
Enterprise Value 662,540 645,477 551,971
Return on Capital
Employed (ROCE) 47.1% 51.0% 45.5%
P/E Ratio 26.7% 27.1% 21.0%
2.1 About GSK
6
Established in the year 1924 in India GlaxoSmithKline Pharmaceuticals Ltd. (GSK
Rx India) is one of the oldest pharmaceuticals company and employs over 3500
people. Globally, we are a USD 45 billion, leading, research-based healthcare and
pharmaceutical company. In India, we are one of the market leaders with a turnover of
Rs. 1880 crore and a share of 5.7 per cent*. At GSK, our mission is to improve the
quality of life by enabling people to do more, feel better and live longer. This mission
drives us to make a real difference to the lives of millions of people with our
commitment to effective healthcare solutions.
The GSK India product portfolio includes prescription medicines and vaccines. Our
prescription medicines range across therapeutic areas such as anti-infectives,
dermatology, gynaecology, diabetes, oncology, cardiovascular disease and respiratory
diseases. The company is the market leader in most of the therapeutic categories in
which it operates. GSK also offers a range of vaccines, for the prevention of hepatitis
A, hepatitis B, invasive disease caused by H, influenzae, chickenpox, diphtheria,
pertussis, tetanus, rotavirus, cervical cancer and others.
With opportunities in India opening up, GSK India is aligning itself with the parent
company in areas such as clinical trials, clinical data management, global pack
management, sourcing raw material and support for business processes including
analytics.
GSK’s best-in-class field force, backed by a nation-wide network of stockists, ensures
that the Company’s products are readily available across the nation. GSK has two
manufacturing units in India, located at Nashik and Thane as well as a clinical
development centre in Bangalore. The state of art plant at Nashik makes formulations
while bulk drugs and the active pharmaceutical ingredients are manufactured at
Thane.
Being a leader brings responsibility towards the communities in which we operate. At
GSK we have a Corporate Social Responsibility program, that works towards
fulfilling basic healthcare, education and other developmental needs of 55 tribal
villages near Nashik. We work with underprivileged children from the slums of
Mumbai, taking care of their developmental and health needs. GSK also runs an
HIV/AIDS helpline - considered to be a pioneering effort in India that supports those
in distress and despair.
7
GSK is committed to developing new and effective healthcare solutions. The values
on which the group was founded have always inspired growth and will continue to do
so in times to come.
We are the second largest drug company in the world with a 5.3% share of the
world’s pharmaceutical market
We employ over 99,000 people in 114 countries
Over 14,500 people work in our research teams across the world to discover
new medicines
Over 150 projects in clinical development – one of the largest pipelines in the
industry
Every second, we distribute more than 32 doses of Vaccines.
Every minute, more than 1200 prescriptions are written for GSK products
Over one billion albendazole tablets have been donated to combat lymphatic
filariasis
Our global community investment and charitable donations were £124 million
in 2008
BOARD OF MEMBERS
8
Mr. Simon Scarff
He is currently the Non Executive Chairman of Glaxo SmithKline Consumer
Healthcare Limited. Simon Scarff started his career at Horlicks Limited, UK (now
part of Glaxo SmithKline plc). He was first in India in 1963 at Nabha, in Punjab,
responsible for the marketing and sales of the company's products. He then returned
to the UK to work within the UK Marketing department. In 1974, he was appointed
Coordinator on the Consumer Brands business in Nigeria. In 1976, he was appointed
Regional Group Manager, responsible for the Near and the Middle East, initially
based in Cyprus and later in Dubai. He returned to India as the Managing Director on
the 1st of June, 1978 and led the company till October 2002. In January 1999, Mr.
Scarff was awarded the Officer of the Order of the British Empire (OBE) by Her
Majesty the Queen of England in the New Year's Honour List (1999) for services to
British Industry.
In 1993, he was appointed as a Director of SmithKline Beecham Pharmaceuticals
India Limited (now Glaxo SmithKline Pharmaceuticals India Limited), and he
continues in this post. He is also a Director in several other organizations and
Chairman of charitable groups in India.
Mr. Zubair Ahmed
Mr. Zubair Ahmed took over the responsibility for running the Consumer Healthcare
business in the India Sub-continent region, as Managing Director, effective 1st
January, 2007. Mr. Ahmed brings to this role a wealth of thirty years of experience in
the FMCG sector. Prior to joining this Company, Mr. Ahmed was the Managing
Director of Gillette India Limited where he was credited for turning the company's
business onto a profitable growth path as well as spearheading Gillette's clear value
leadership in its product categories in India.
Mr. Ahmed was associated with Gillette for over 14 years where his leadership
competencies in the areas of strategic planning, strategic relationship building and
result orientation led him to work on prestigious assignments in the company's
operations in Middle East and India. Mr. Ahmed has also worked with leading
companies like Voltas and Unilever in the past.
9
Mr. Ashok Dayal
He is presently a Non Executive Director in various companies. Till June, 1995 he
was the Executive Director of Deutsche Bank AG responsible for the business of
Deutsche Bank in India, Pakistan, Sri Lanka, Thailand, Indonesia and Vietnam.
Thereafter, he was appointed as the Chairman of Roland Berger International
Management Consultants Pvt. Ltd. Since March 28, 2001 he has been the Director of
this company.
Mr. P. Dwarakanath
He is presently the Non Executive Director of the company. He has over 34 years of
experience in Engineering, Chemical, Pharma and Consumer Goods industries in the
core functional areas of Legal, Employee Relations, Management Development,
Leadership Development and HR Management. He has been actively involved in
various professional bodies including a successful stint as President of Delhi
Management Association (2000/2001) and has recently been appointed as All-India
President by National HRD Network.
Mr. Praveen Gupta
Director Operations
He joined the company in 1975 and since then he has held positions of increasing
responsibility in Finance, Procurement, Materials Management, and Supply Chain
Management. He was previously Site Director of the Nabha facility and Country OE
Champion for GMS Consumer Healthcare, India. In these roles he has made
significant contributions towards the evolution and performance of the Nabha site and
has driven the highly successful Operational Excellence Programme in India.
DIFFERENT HEALTH DRINKS OF GSK
The Great Family Nourisher: HORLICKS
10
Horlicks is the leading Health Food Drink in India and as the 'Most Trusted Drinks
Brand' (Economics Times Survey, 2004) in India, enjoys more than half of the Health
Food Drink market.
Although it has been a popular brand in the Indian market since the 1930s, Horlicks
underwent a revamp in 2003 to further increase its relevance. The modern &
contemporary Horlicks offers 'pleasurable nourishment' with a delicious range of
flavours including Vanilla, Toffee, Elaichi and Chocolate.
With revitalized packaging synergistic with the new brand personality, it is a favourite
with both mothers for its nourishment and kids for its great taste and variety.
Horlicks is sold in a number of countries across the world. In different countries, the
product has different formulations in order to cater to varying consumer segments and
serve different consumer needs.
In India, the Horlicks available has been scientifically developed and specifically
caters to the nutritional needs of the Indian diet. It helps meet the requirements of
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
of these vitamins and minerals from their daily diet. Research shows that these
nutrients are very important for school age children for their attention, concentration
and memory as well as their physical performance and growth. Thus, Horlicks is a
beneficial supplement for children to aid not only their growth, but also enhanced
attention and concentration. In fact, we have established this through a large clinical
trial among school going children.
Horlicks is the only health drink, clinically proven in India, to make kids taller,
stronger and sharper.
11
A premier research institute of India conducted a 14 month research on Horlicks in a
reputed boarding school in Hyderabad. In the research, one group of children was
given an ordinary health food drink without the Horlicks micronutrients (or vitamins
and minerals) while the other group was given Horlicks. Many tests and 14 months
later, it was concluded that the children who consumed Horlicks showed significant
improvements in height, muscle mass, bone health and attention/concentration scores
as compared to the children who consumed the ordinary health food drink without the
Horlicks micronutrients (or vitamins and minerals)
Horlicks is also available in a delicious chocolate flavor. When the temperatures soar
and your throat feels like the Thar Desert, chilled chocolate Horlicks is the tastiest
way to beat the heat. The nutrition of Horlicks packed with the lip-smacking
chocolate flavor has won the hearts of children and adults alike… so you hear them
sing merrily ‘jaise bhi kaise bhi doodh le ao, Chocolate Horlicks shake banao….'jaise
bhi kaise bhi doodh le ao, Chocolate Horlicks shake banao..jaise bhi kaise bhi!'’
JUNIOR HORLICKS
12
Preschool children may be fussy in consuming food and may often refuse or waste
food that is nutritionally good for them. This may cause certain dietary gaps in the
diet of preschool children. New Junior Horlicks 1-2-3 provides essential nutrition and
when taken as part of a healthy diet, helps complete A to Z nutrition for preschool
kids. It was launched in April ’06 with an all new formulation and exciting new
packaging. Presenting New Junior Horlicks 1-2-3 with DHA for Brain Development:
Just as calcium is essential for bones, DHA in one of the most important brain.
Nutrients and is an essential building block of the brain cells. The average Indian
diet may have low amounts of DHA and absence of DHA in daily diet may
impair intelligence. Maximum brain development happens by the age of 5. It is
therefore essential to supplement your kid’s diet essential fatty acids like DHA
So along with DHA, Junior Horlicks 1-2-3 provides essential nutrition, which as
part of daily diet helps complete A to Z Nutrition.
Also new Junior Horlicks 1-2-3 now comes in a completely new pack. This pack is in
the shape of a cute elephant and is something every child would love to play with.
Folate, Vitamin B6, Vitamin C, Vitamin B2, Vitamin B12, Iron & Calcium – In 2
serves as per US Guidelines 2001
This product is not an infant milk substitute or infant food for less than 2 years old.
Junior Horlicks 1-2-3 is a nutritional supplement which as part of daily diet helps
meet your child’s nutritional requirements.
MOTHER’S HORLICKS
13
Mother's Horlicks, launched in 1997, is a superior nutritional supplement with 26 vital
nutrients that is scientifically designed keeping the nutritional needs of the pregnant
and breast feeding women in mind. An attempt to enhance nutritional superiority saw
the launch of its new variant in May 2004 - Mother's Horlicks fortified with DHA.
This unique formulation has an essential fatty acid called docosahexaenoic acid or
DHA from a vegetarian source. Numerous studies have suggested that DHA helps in
brain development of the child during pregnancy and the first few years of life. It is
important to note that in infants, breast milk is the only source of DHA.
In addition to DHA, Mother's Horlicks supplies the recommended quantity of ideal
quality proteins [with 100% amino acid score]. Mother's Horlicks, in three serves [6
scoops], provides 100% of the Recommended Dietary Allowance [RDA] for iron,
folate, calcium, vitamins C, B2, B6 and B12 - nutrients that are essential for blood
and bone health. Mother's Horlicks is also rich in antioxidants [vitamins A, E,
selenium, zinc and copper] essential during pregnancy and lactation.
Moreover, Mother's Horlicks has been manufactured through a natural process of
malting or germination that helps to produce enzymes which in turn helps to
breakdown complex starches and proteins into simpler molecules making it easy
to digest.
Available in all leading chemist outlets in packs of 500 g (Rs. 200 only) and 200 g
(Rs. 100 only), Mother Horlicks has best value for money and is the leading
nutritional supplement for pregnant and breast feeding women. After all, every
mother has a right to healthy babies!!
14
26 Vital Nutrients
Nutritional Facts Per 75g
BenefitsTotal quantity
% daily
requirement
DHA 60mg NADevelopment of brain,
eyes and nerves of the baby
Protein 15g 26 Growth of the baby
Carbohydrates 40.0g NA
EnergyFats 10.9g 36
Calories 300Kcal 15
Elemental Iron 38mg 100
Mental and physical
development of the baby
Folate 400mcg 100
Vitamin C 80mg 100
Vitamin B2 1.6mg 100
Vitamin B6 2mg 100
Vitamin B12 2.8mcg 100
Iodine 145mcg 50
Elemental Calcium 1000 mcg 100
Development of strong
bones and teeth of the babyPhosphorus 350mg 50
Vitamin D 2.5mcg 50
Vitamin A 650mcg 50
Antioxidant function and
healthy immunity
Vitamin E 7.5mg 50
Zinc 3mg 25
Selenium 35mcg 50
15
Copper 0.7mg 50
Vitamin B1 0.7mg 50
Release of energy from
foodNiacin 9mg 50
Magnesium87.5mg
25
Vitamin K 45mcg 50 Normal blood clotting
Sodium 373mg 75
Maintenance of electrolyte
balancePotassium 465mg 23
Chloride 357mg 48
Benefit for Mother
A scientific combination of 26 vital nutrients for her all round health
During lactation, it can help improve the quality and quantity of breast milk
HORLICKS LITE
Horlicks Lite & Lite Bite
A nutritional drink & snack specially formulated for all health conscious adults and is
also suitable for use by people with diabetes
Horlicks Lite health food drink and Lite Bite biscuits was launched in the market in
Sep ’05. This range of products have been specially formulated keeping in mind
nutritional needs of adults and is also suitable for use by people with diabetes.
16
New Horlicks Lite with zero added sugar and zero cholesterol
Contains 26 vital nutrients
Has high fibre
Is low fat
Has essential antioxidants
Horlicks Lite Bite Biscuits
Healthier alternative to other leading biscuits
No added sucrose
With goodness of fibre
Added benefits of antioxidants, vitamins and calcium
BOOST
Boost is the secret of winning energy!
Boost is India's leading malt-based Health Food Drink in a chocolate flavour. It was
developed by the company's R&D team in 1974 and launched in 1975-76. Its success
characterizes the manner and skill with which GlaxoSmithKline Consumer Healthcare
has responded to the changing contours of this product segment in recent times.
17
Boost has a market share of 13% countrywide amongst all Health Food Drinks
(HFD), while in South India - the biggest region for the category - it commands a
market share of 24%.
The Firsts!
Boost is the first HFD to have used celebrity endorsement to convey its energy
proposition and has thereby successfully differentiated itself from other
brands. It has been successfully endorsed by India's most famous cricket stars,
particularly those with a humungous following among children. Kapil Dev, the
most charismatic cricketer of his time flagged this off in the 1980s. The baton
passed to Sachin Tendulkar in the 1990s. Sachin has remained steadfast in his
support for Boost with the explosive Virender Sehwag joining the Little
Master as brand ambassador in 2001.
Boost was the first brand to introduce yellow granules in its formulation as
part of the 'Power BoostersTM' relaunch in November 2002.
It is also the first brand in this segment to have developed a 'shrink-sleeved'
packaging way back in 1999. In recognition of this, Boost has won the
prestigious World Star award for its packaging.
Continuous Innovation
With the brand philosophy being to continuously innovate and pioneer changes, in
line with the changing market dynamics and ongoing consumer feedback, Boost has
been restaged in May 2005. The brand now offers:
an even better product - with the addition of Advanced Energy Boosters
a more sporty, more convenient bottle structure - now in plastic
exciting new graphics
Compelling advertising with a high visual appeal that depicts the winning
energy we all aspire to have.
New Boost ChocoBlast
'The energy of Boost, now in an Exxxtra Chocolate Taste!'
18
A new flavour of Boost - Boost ChocoBlast has been introduced in May 2005. It is
one of the best tasting chocolate drinks in the market today. In addition, it is a more
granular product and is powered with Advanced Energy Boosters
So, now you can have the energy of Boost, in an extra chocolate taste, at no extra
cost!
Advanced Energy Boosters
New Boost and Boost ChocoBlast are charged with Advanced Energy Boosters Iron,
Zinc and Magnesium along with other key vitamins and minerals that give extra
energy.
Just 2 cups with # Advanced Energy Booster provide:
Nutrients (%)* Benefit
Iron (100%), Copper, Folate,
Vitamins B12, A, C (50%)
Healthy blood for more energy and
optimal physical performance
Vitamins B1, B2, B6, Niacin,
Pantothenic Acid, Biotin (50%)
Magnesium, Zinc (17%);
Energy release from food for efficient
working of body cells
Vitamin D, Calcium (17%) For strong bones
Daily requirement as per US NRC, 2001
Sachin Tendulkar appeared in a Boost advertisement for the first time at the
age of seventeen.
The kid, who starred in the Boost advertisement with Kapil Dev, went on to
become a member of the Indian cricket team - Nikhil Chopra.
There is a range of interesting products prepared with Boost which cater to
local tastes: the Boost 'barfis', for example, in certain parts of India.
Boost has the highest frequency of purchase among all brown powder users in
India (Source: IMRB Household Panel).
Boost has a household penetration of 40%-45% in several cities and towns in
South India, the brand's stronghold. In towns like Chennai and Madurai this
19
penetration exceeds 50% among SEC A and SEC B households and 40%
among all households (Source: IMRB Panel Data Jan-Dec 2004)
MALTOVA
The yummy choco-malt drink'
Maltova, a chocolate Health Food Drink, was acquired from Jagatjit Industries
Limited in Feb 2000. To kids Maltova is the fun health drink, which is extremely
tasty, and makes nourishment truly enjoyable and exciting.
20
It was relaunched in June 2002 with an enriched formulation and improved
packaging. The relaunched New Maltova had Active Rechargers, a combination of
essential vitamins, minerals and carbohydrates.
Maltova has again been restaged in November 2004, with an attractive new packaging
that connotes an extremely high taste appeal and a sense of fun and excitement. The
communication and the promotions have been made more exciting by bringing in
cartoon characters like Scooby Doo.
2.2 PROBLEMS OF THE ORGANISATION
There are various low range health drinks available in the market of different
companies
It has to compete with the wide range of products that its competitors offer.
21
It has to decide on the strategies to be adopted which will help to counter
competition.
2.3 COMPETITION INFORMATION
1. HINDUSTAN UNILEVER LTD.
Hindustan Unilever Limited (HUL), earlier called Hindustan Lever Limited (HLL)
was established in 1933 as Lever Brothers India Limited. Hindustan Lever Limited
22
(HLL) is India's largest Fast Moving Consumer Goods Company, with a customer
base of 2 out of every 3 Indian in the category of Home & Personal Care Products and
Foods & Beverages. The company has combined volumes of about 4 million tonnes
and sales of Rs.10, 000 crores. HLL is also one of the country's largest exporters; the
Government of India has recognized HLL as a Golden Super Star Trading House
2. NESTLE INDIA:
Nestlé's relationship with India started in 1912. It started its trading with India as The
Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited, importing and
selling finished products in the Indian market. Nestlé India is amongst India's 'Most
Respected Companies' and amongst the 'Top Wealth Creators of India'.
Nestlé India is a subsidiary of Nestlé S.A. of Switzerland. Nestlé India is a company
that provides Indian Consumers products with global standards and is committed to
constant growth and shareholder satisfaction. Nestlé India has also provided
opportunities of growth and employment to about 1 million people including farmers,
suppliers of packaging materials, services and other goods
3. DABUR INDIA:
Dabur India Ltd. is the fourth largest FMCG Company in India. Dabur deals in
Health care and Personal care products. Today, Dabur has a turnover of
Rs.1899.57 crores. The market penetration of Dabur is of about 1.5 million retail
outlets all over India with 47 C& F agents and more than 5000 distributors. Dabur
India is divided into 2 major strategic business units:
23
Consumer Care Division
Consumer Health Division
4. CADBURY INDIA:
Cadbury entered India in 1948 by importing chocolates. And now, it has
manufacturing facilities in Mumbai, Pune, Gwalior, Bangalore, and Himachal Pradesh
and 4 sales offices at Mumbai, Kolkata, New Delhi, and Chennai in India. Cadbury is
constantly engaged in the extension of its products line to satisfy its customers. A
good example of this is Bytes. Bytes was first launched in South India in 2003. The
corporate office is in Mumbai. Cadbury is into the business of Chocolate
Confectionary, Milk Food Drinks, and Candies
2.4 SWOT ANALYSIS
STRENGTHS:
1) Wide range of product and services.
2) Wide area of network nationally.
3) Strong network of distributors
24
4) Low cost of products specially health drinks
WEAKNESSES:
1) Low level of awareness in market about the company
2) No major promotional and advertisement strategy
3) Poor Research and Design in making of the products
OPPORTUNITIES
1) Discovery of new health drinks which is not discovered by any other company.
2) Discovery of various health ingredients (like minerals etc.) which is important for
health purpose.
THREATS:
1) Threats from existing competitors in the domestic market
2) Entrance of new companies which are offering very low cost health drinks
Marketing is the process by which companies create customer interest in goods or
services. It generates the strategy that underlies sales techniques, business
communication, and business developments. It is an integrated process through which
companies build strong customer relationships and creates value for their customers
and for themselves.
Marketing is used to identify the customer, to satisfy the customer, and to keep the
customer. With the customer as the focus of its activities, it can be concluded that
marketing management is one of the major components of business management.
25
Marketing evolved to meet the stasis in developing new markets caused by mature
markets and overcapacities in the last 2-3 centuries. The adoption of marketing
strategies requires businesses to shift their focus from production to the perceived
needs and wants of their customers as the means of staying profitable.
The term marketing concept holds that achieving organizational goals depends on
knowing the needs and wants of target markets and delivering the desired
satisfactions. It proposes that in order to satisfy its organizational objectives, an
organization should anticipate the needs and wants of consumers and satisfy these
more effectively than competitors.
Marketing research
Marketing research involves conducting research to support marketing activities, and
the statistical interpretation of data into information. This information is then used by
managers to plan marketing activities, gauge the nature of a firm's marketing
environment and attain information from suppliers. Marketing researchers use
statistical methods such as quantitative research, qualitative research, hypothesis tests,
Chi-squared tests, linear regression, correlations, frequency distributions, poisson
distributions, binomial distributions, etc. to interpret their findings and convert data
into information. The marketing research process spans a number of stages including
the definition of a problem, development of a research plan, collecting and
interpretation of data and disseminating information formally in form of a report. The
task of marketing research is to provide management with relevant, accurate, reliable,
valid, and current information.
A distinction should be made between marketing research and market research.
Market research pertains to research in a given market. As an example, a firm may
conduct research in a target market, after selecting a suitable market segment. In
contrast, marketing research relates to all research conducted within marketing. Thus,
market research is a subset of marketing research.
26
Types of marketing research
Marketing research, as a sub-set aspect of marketing activities, can be divided into the
following parts:
Primary research (also known as field research), which involves the
conduction and compilation of research for the purpose it was intended.
Secondary research (also referred to as desk research), is initially conducted
for one purpose, but often used to support another purpose or end goal.
By these definitions, an example of primary research would be market research
conducted into health foods, which is used solely to ascertain the needs/wants of the
target market for health foods. Secondary research, again according to the above
definition, would be research pertaining to health foods, but used by a firm wishing to
develop an unrelated product.
Product
Product is defined as a "thing produced by labor or effort" or the "result of an act or a
process". Since 1575, the word "product" has referred to anything produced. Since
1695, the word has referred to "thing or things produced". The economic or
commercial meaning of product was first used by political economist Adam Smith.
In marketing, a product is anything that can be offered to a market that might satisfy a
want or need. In retailing, products are called merchandise. In manufacturing,
products are purchased as raw materials and sold as finished goods. Commodities are
usually raw materials such as metals and agricultural products, but a commodity can
also be anything widely available in the open market. In project management,
products are the formal definition of the project deliverables that make up or
contribute to delivering the objectives of the project.
In general, product may refer to a single item or unit, a group of equivalent products,
a grouping of goods or services, or an industrial classification for the goods or
services.
A related concept is subproduct, a secondary but useful result of a production process.
27
Product groups
Tangible and intangible products
Products can be classified as tangible or intangible. A tangible product is any physical
product that can be touched like a computer, automobile, etc. An intangible product is
a non-physical product like an insurance policy.
In its online product catalog, retailer Sears, Roebuck and Company divides its
products into departments, then presents products to shoppers according to function o
brand. Each product has a Sears item number and a manufacturer's model number.
The departments and product groupings that Sears uses are intended to help customers
browse products by function or brand within a traditional department store structure.
Sizes and colors
A catalog number, especially for clothing, may group sizes and colors. When ordering
the product, the customer specifies size, color and other variables.
Product line
A product line is "a group of products that are closely related, either because they
function in a similar manner, are sold to the same customer groups, are marketed
through the same types of outlets, or fall within given price ranges."
Many businesses offer a range of product lines which may be unique to a single
organization or may be common across the business's industry. In 2002 the US
Census compiled revenue figures for the finance and insurance industry by various
product lines such as "accident, health and medical insurance premiums" and "income
from secured consumer loans". The United Nations also classifies products for
international economic activity reporting.
Product analysis
Product analysis can take different forms but in general it means asking questions
about a product and forming answers. It can mean experts analysing a product or
members of the general public or potential customers/groups of people. Product
analysis can take place at almost any stage of the design process.
28
Product analysis can be carried out by:
1. An individual product being analysed.
2. Alternatively a number of similar products can be compared with each other using
the same criteria.
WHAT IS THE PURPOSE OF PRODUCT ANALYSIS?
A product may need analysing by a potential customer to help him/her decide whether
it is worth buying.
A product may need analysing so that the design can be improved.
Sometimes a prototype or model may be analysed. In this way improvements can be
made before the full sized, costly product is manufactured.
WHAT IS A CRITERIA?
When analysing a product first prepare a list of questions, this is known as a criteria.
Look at the table (above). For example, the criteria listed below could apply to the
table when it is being analysed. ERGONOMICS
Is the table the right size(height, length and width). Will a potential customer need to
stretch too far when using the table? Will this make it uncomfortable for the
customer? COST
How much will it cost to manufacture the product and how much will it sell for in the
shops?
IMPORTANCE OF HORLICKS
Increased Need for Nutrition:
29
Preschooler age is nutritionally the most vulnerable time in life. Your child is now in
a stage of life where his nutritional status is of great importance for his later physical
and mental development. Genetic factors do play an important role in the growth and
development of a child but there are areas in which you can make a difference.
By the preschool age a child has started eating family food but his nutrient
requirements may not be met by whatever little he can eat.
Preschoolers are at an age where the essential organs are still developing. Important
organs like the brain are still in the formative stage and your child’s intellectual and
physical development is underway.
Brain growth is time dependant, which means that once the growth phase has passed,
it cannot be revisited. When nutritional deficiencies occur at a developmental age, it
may cause prolonged or permanent damage. It is therefore important that the nutrients
that help in brain development are supplied adequately in the food that children eat at
this age.
The first few years of life are also critical in shaping physical development. On an
average a child grows 9–10 cms in the second and the third year. His bones, teeth,
muscles and blood are growing and developing and for them to grow adequately;
children need to be given a diet that is nutrient and energy dense.
Another aspect that deserves attention at this important stage is immunity. Preschool
is the time when your kid steps out of the house. He likes to play and explore things
around him and therefore he needs all the protection that he can get. The
immunological system is not fully mature at this age, resulting in a risk of frequent
and severe infections.
Erratic Eating:
30
Preschool age is also the time when many children fuss about food and refuse to eat.
They may turn up their nose at healthy food and want to eat only chips and junk food
all day long. At an age when the child’s diet is required to be more nutrient dense than
an adult’s diet, fussy eating may lead to nutritional deficiencies.
Young children also have a small stomach capacity which means that they cannot eat
as much as you can in one go. If the normal family diet given to them is too bulky and
has low energy density, children may be unable to eat enough to meet their energy
and nutrient requirements. Their stomachs will get full but they would not have got
their daily quota of nutrients.
Did you know that a 3 year old child requires almost 2.9 times more Vitamin A and
almost 2.4 times more Vitamin C per kg body weight than a housewife
All these factors put together make essential for parents to ensure that their child at
this age is getting all the nutritional support he deserves to build a strong foundation
for a healthy future
Promotional mix of GSK limited
Advertising
Sales promotion
Publicity
Advertising
any paid form of non personal selling of the company’s product by an identified
sponsored is called as advertisement. GSK has engaged in many types of advertising
campaign,
Advertising is used by GSK to
Inform: about the new products launched in the market by GSK Limited.
Persuade: customer to buy products.
The media mix is known as “above the line” promotion consists of the major methods
advertising GSK products under the following headings:
31
Television: it is probably the most recognizable form of advertising. Marketing
opportunities have increased as TV and computers have been combined in the internet
and multimedia of offerings. Television advertising have mass reach, the products are
advertised across the whole country with the potential to reach 95% of the population.
No other medium used by GSK has the same capability.
Print media: GSK gives print advertising in newspapers, magazines and journals;
GSK uses this medium of advertising less aggressively though it saves a lot of money,
targets accurately.
Cinema: research has shown that there is a clear customer segment that regularly
goes to cinema and it is good media to advertise the product. GSK advertisements are
also shown in premier cinema halls.
Outdoor: outdoor posters are used as reinforcement to the primary medium such as
TV or print. GSK has been extensively using this medium of advertising.
Sales promotion
The second major promotional mix method used by GSK, is the use of sales
promotion also known as “below the line” promotion. Sales promotions are short term
incentives used to boost sales. It takes the form of some kind of extra value that is
added to the product for the period of promotional campaign. The GSK sales
promotion strategy is to increase sales, either overall or on specific models. Most of
the schemes of sales promotion are at national level. Local level scheme are
formulated and implemented by regional offices. GSK does its sales promotion in
three different ways:
Consumer sales promotion: GSK promotion is usually a short term incentive
that urgently trumpets the message to the consumer ‘buy now rather than later
otherwise it will be too late and the opportunity will be lost.
Dealer sales promotion: most of the sales promotion schemes are for dealers.
Generally incentives are given to dealers are based on the target achievement.
Publicity
32
The next major promotional mix technique used by GSK is the use of publicity.
Publicity is any form of planned, unpaid for media exposure that promotes the
company or its products in favorable light. This consists of items of news or stories
that appears in newspapers, magazines and on the television about the organization,
their products, their directors, their employees etc. GSK understands the value of
good publicity. Marketing department of GSK is concerned in using public relations
and publicity as a planned element of the promotion mix specifically to communicate
favorable message to its customer about the organizations existing & new products.
The tool of publicity
The press or news release: the press is probably most widely used by GSK
for gaining free coverage in the national press. Information is sent to the
newspaper to be printed.
Press and news conference: the news conference is another method of
building relationship and publicity, by GSK. Journalist from both TV and
press release are invited to hear some new development in the organization.
After the conference there is time allowed for question and answer session.
Events: GSK plans staging of activity knowing that it will be reported in the
media.
Public service activity: GSK has been actively involved in providing medical
support and welfare education and training, taking steps towards conserving
energy resources and a host of other activities in the development of a
healthier community life and proving welfare need. GSK has been
constructing and maintaining roads in Gurgaon.
Exhibitions: an exhibition takes many forms and is seen as a marketplace for
both displaying products & services and as a way of getting producers and
customers together. The mounting of an exhibition includes all the elements of
the promotional mix. GSK takes part in various trade as well as consumer
exhibition.
The objective in taking part in exhibition is:
33
To build goodwill, inform and educate; and pave the way of future
sales.
To communicate corporate image.
To meet competitors.
To make appointments and take sales leads.
Sponsorship: is giving of some form of support, usually money, in return for
an advertising, sales promotion, publicity or sales opportunity. There has been
enormous growth in this media form over the last decades and this look to
continue into the future
Marketing Department
The Marketing Department is responsible for creating a “customer pull” for GSK
products. The main functions of this department are:
Advertising research
Product Advertising and Promotion
Corporate Advertising
Formulating Corporate Identify Guidelines
Organizing sales training for dealers
Organizing exhibitions and rallies
Developing Socially Relevant Campaigns
Providing Support to dealers on advertising, promotion and showroom up-
gradation.
Regional Offices
In order to manage the sales and service network, GSK has divided the country into
five regions, which are further into territories. It has five Regional Offices located in
Delhi, Bombay, Calcutta, Chennai and Chandigarh and Area Offices located at
Lucknow, Hyderabad & Mumbai.
Each dealership operated in one territory, but does not have exclusive selling rights in
the territory. The dealer is expected to service the entire territory through his
dealership.
34
The Regional Offices (RO) has the primary responsibility of managing, monitoring
and supporting the network in a region. The RO has field staff for sales and services.
A Regional Manager (RM) heads each RO. The sales staff has primary responsibility
for all sales related issues, and report to RM. The services engineering’s look after the
workshops in the region, and report to the Regional Service Representative (RSR).
Sales & Dispatch Department
The sales & Dispatch department (S&D) is responsible for the logistics of the sales
function. The main areas of work in the department, relevant to domestic dealers are
described. Each group of functions is assigned to a cell.
PRESS RELEASES : NEWS ARTCLES
GlaxoSmithKline Consumer Healthcare records unprecedented growth for the year
ended December 31, 2009
Gurgaon, GlaxoSmithKline Consumer Healthcare Limited (GSKCH) today declared
its financial results for the year ended December 31, 2009. Net sales at Rs.19,215
millions recorded an impressive growth of 24.6% over 2008 with PAT at Rs. 2328
millions growing by 23.6% for the same period and PBT growing by 23.9%, over last
year to Rs. 3,539 millions. For the fourth quarter, net sales were Rs. 4,181 millions,
while PBT and PAT were Rs. 473 millions and Rs. 337 millions respectively.
The Board of Directors of the Company also recommended a final dividend @ Rs. 18
per equity share of Rs.10 each to share success with its shareholders.
“2009 has been an extremely exciting year for GSKCH with accelerated growth,
driven by customer centric innovation in existing and new product categories”, said,
Zubair Ahmed, Managing Director, GlaxoSmithKline Consumer Healthcare Ltd
India. “We as a company are well on our track to become the leaders in the health and
wellness category by delivering more products of value to our customers and by
remaining focused on our key areas of expertise”, he added.
35
The year saw a slew of launches across categories by GSKCH including Horlicks
NutriBar, ActiGrow, Horlicks ChillDood, Junior Horlicks Biscuits and two new
products in the last quarter itself viz. Foodles, multigrain instant noodles from
Horlicks and Horlicks ProHeight, a specialized Protein formulation containing
essential nourishment important for a child’s growth. Keeping in mind the significant
increase in rural consumption, GSKCH is also test marketing Horlicks Asha in
Andhra Pradesh and Karnataka, a low cost Health Food Drink (HFD) targeted at the
emerging semi-urban and rural consumer segment.
Horlicks launched in a new Toffee flavour
A creamy toffee taste with all the benefits of Horlicks nourishment
New Delhi, February 22, 2005:
GlaxoSmithKline Consumer Healthcare today announced the launch of Horlicks in a
new Toffee flavour as an addition to its existing range. Toffee Horlicks will provide
consumers with a tasty, creamy toffee flavour combined with all the benefits of
Horlicks nourishment. Toffee Horlicks is a vegetarian product and will be available in
a 500gm jar pack priced at Rs.113/- across North and West India and at Rs. 110/- in
South and East India.
"Toffee Horlicks has been developed after extensive consumer research revealed that
people across all age groups love the taste of toffee," said Shubhajit Sen, General
Manager - Marketing, GlaxoSmithKline Consumer Healthcare . "This universal taste
appeal combined with the goodness of Horlicks nutrition creates a thoroughly
satisfying and healthy product, one that will be enjoyed by all."
Toffee Horlicks is the sixth flavour in the Horlicks portfolio: that is already available
in Chocolate, Vanilla, Honey Buzz, Standard and Elaichi. The launch of Toffee
Horlicks will be accompanied by extensive marketing support through a new
Television advertisement, promotional offers and direct consumer contact programs.
GlaxoSmithKline Consumer Healthcare honors 24 wholesalers from South India
for 25 years of dedicated service
36
Chennai, 20 December 2004
GlaxoSmithKline Consumer Healthcare (GSKCH) today organized a special function
at the Le Meridien, to felicitate 24 wholesalers from Southern India who have
completed 25 years of a long and fruitful partnership with the company. GSKCH
presented each wholesaler with a silver plaque, as a token of appreciation for their
dedication and loyalty towards the business partnership with the company.
"GSKCH has always looked at its trade partners as part of the GSK family. The
relationship is based on trust, transparency and providing them with a strong and
innovative line-up of product offerings. We are very pleased to honour these 24
partners in progress from the Southern Region for their impeccable loyalty towards
GlaxoSmithKline for over 25 years. We are sure that this mutually beneficial business
partnership will move to even greater strengths in the future," said Mr. Sameer Goel,
Vice President, GlaxoSmithKline Consumer Healthcare.
Horlicks Dream Team Celebrates Success
Six students awarded education scholarships worth Rs. 25,000 each
Bangalore, 5 th November 2004
The Horlicks Dream Team Contest culminated yesterday and saw Pavan Kapnadak
from Chennai, Samiksha and Rewan Rai from Delhi, Sowmya from Mumbai, Steffie
Ann Thayil from Hyderabad and Bulbul Bhol from Bhubaneshwar, walking away
with a year's education scholarship worth Rs. 25,000 each. The awards were presented
by renowned Actor and TV Anchor Mr. Farooque Sheikh. The closely contested
finale of the Horlicks Dream Team competition was held at the B. R. Ambedkar
Bhavan Auditorium.
The Horlicks Dream Team provided almost 100,000 students from 4,500 schools
across fifteen cities an opportunity to showcase their talent. The event elicited huge
participation and ran parallel to Horlicks Wiz Kids 2004. The Horlicks Dream Team
finals brought together 60 students from different parts of the country to Bangalore o
37
bring alive the concept of dynamic development. These finalists were trained on
varied areas, including communication skills by Mr. Syed Sultan Ahmed and value &
vision by Dr. J M Sampath among others.
As the competition progressed from one round to the next, the number of contestants
narrowed to 12, who competed in the final round and answered questions from the
judges. The participants were judged on the parameters of personality, attitude,
sensitivity, Talents, communication skills, intellectual understanding, values & vision
and overall abilities and character. The participants were adjudged by an eminent jury
consisting of Mr. Farooque Sheikh (Actor and Anchor), Syed Kirmani (Cricketer),
Swati Ramanathan (Co Founder - Janaagraha), Deepa Sridhar (Principal - Kumaran's
Institutions) and Dr. Sampath (Trainer on value & vision and author).
The unique concept behind Horlicks' involvement in interschool cultural and literary
activities is to provide a platform for students to flourish and discover their talents in
an atmosphere of healthy competition. It is aimed at generating confidence in school
students by providing them with a platform to showcase their talents. The key driver
of the event was initiating participation from kids and evaluating them in varied
situations.
According to Shubhajit Sen, General Manager, GlaxoSmithKline Consumer
Healthcare, "The focus of this initiative was never on winning but providing each
student an opportunity to display their talents".
GlaxoSmithKline Consumer Healthcare FY 04 Sales up 8%, PBT rises 16.2%
Q4 Sales up 10.8%, PBT grows 50.3%
Gurgaon, January 28, 2005
38
GlaxoSmithKline Consumer Healthcare Limited (GSKCH) today declared its
financial results for the year ended December 31, 2004. Despite a difficult FMCG
environment, GSK Consumer Healthcare achieved Sales for the full year of Rs.
981.72 crore, representing a growth of 8%. Sales for the final quarter was at Rs.
239.89 crore, a growth of 10.8 %.
GSKCH performance continues to endorse its strong leadership position in the Health
Food Drink category. The company launched several new products in the year,
including Horlicks and Boost in a ready-to-drink format. It also introduced Junior
Horlicks and Mothers Horlicks with DHA in key markets. Maltova and Horlicks
Biscuits were relaunched and a new Horlicks pack is being test marketed in rural
areas.
"New product innovation is helping grow the category and will continue to be the
focus at GSKCH. Increasing opportunities for consumption and broadening
distribution reach will also be key priorities," said Nick Massey, Managing Director,
GlaxoSmithKline Consumer Healthcare Limited. "The fuel for our innovation is being
provided by our strong cost-savings program," he said.
4.1 OBJECTIVES
The first & foremost step in any research work is to identify the problems or
objectives on which the researcher has to work on
39
To study the products of the company and make an analysis of the products
To study about the competitors of the company
The importance of the Health drinks
4.2 RESEARCH DESIGN
A research design is the arrangement of conditions for collections and analysis of data
in a manner that aims to combine relevance to the research problem with economies
in a procedure.
I have used descriptive research design for my research.
Descriptive Research
Descriptive research includes surveys and fact findings enquiries of different kinds. It
basically gives a description of the state of affairs as it exists at present. A researcher
has no control over the variables so they can only report what has happened or what is
happening. We can also use the survey method for this purpose.
4.3 DATA SOURCES
A research design is one, which simplifies the framework of plan for the study and
adds itself in the quick collection and analysis of the data. It is a blue print that has
been filled in completing the study. Data sources are:
Primary data
The primary data are those which are collected fresh for the first time and thus happen
to be original in character. In other words, it is obtained by design to fulfill the data
are original in character and are also generated in a large number of surveys
conducted mostly by government and also by institution and research bodies.
A questionnaire was prepared for the respondents, where there views were collected.
40
Secondary data
The secondary data are those which have already been collected for some purpose
other than the problem in hand and passed through the statistical process. In other
words, data that are not originally collected rather obtained from Published and
Unpublished Sources.
The secondary data has been collected through various sources:
Internet
Books
Newspaper
Magazines
Brochure
Journals
Websites
4.4 QUESTIONNAIRE DESIGN / FORMULATION
Questionnaires: - A questionnaire consists of a set of questions presented to
respondent for their answers. It can be Closed Ended of Open Ended.
Open Ended: - Allows respondents to answer in their own words & are
difficult to Interpret and Tabulate.
Close Ended: - Pre-specify all the possible answers & are easy to Interpret
and Tabulate.
Types of question included:
Dichotomous questions: - Which has only two answers “Yes” or “No”.
Multiple choice questions: - Where respondent is offered more than two
choices.
Importance scale: - A scale that rates the importance of some attribute.
Rating scale:- A scale that rates some attribute from “highly satisfied ” to
“highly unsatisfied “ and “very inefficient” to “very efficient
But in this project report, the questionnaire includes only closed type questions
because it saves respondents time and helps them to understand easily.
41
4.5 SAMPLE DESIGN
A sample design is a definite plan for obtaining a sample from given population. It
refers to the techniques or procedures, the researcher would adopt in selecting items
for the sample.
i. Sample element /unit
The primary data was collected through survey that was systematically carried out
by the users of health drinks through questionnaire. The responses of the
respondents were recorded in the questionnaire prepared for them.
ii. Extent
Extent refers to the area from the respondents belong. We have conducted the
research mainly on the people of Delhi, that too specifically, north-east region.
iii. Time frame
Time frame is the time spent on research. The time frame for our research is 8
weeks.
iv. Sampling technique
Sampling technique refers to the technique or procedure the researcher would
adopt in selecting items for the sample. We have used judgmental sampling for
our research because gathering information from every individual is not possible.
v. Sample size
Sample size refers to the number of respondents. To get a clear view we have
conducted our research on 100 people.
4.6 LIMITATIONS OF THE RESEARCH
Since the sampling was done in Delhi only it does not represent the entire
picture of Indian market.
42
The questionnaire might have been filled without much attention to the
questions due to lack of time by the respondents.
Incase of Primary data, respondents were not very much interested in filling
the questionnaire and sometimes it was difficult to contact or meet the clients,
because of their work schedules and personal reasons.
There may be biasness against some personal preferences and which would
have led to unjustified responses from the respondents.
Personally contacting the clients involved time and cost.
Secondary data when collected was invaluable but due to passage of time and
with many dynamic changes taking place in the markets, the information
losses its value in the current scenario.
As gathering information from every individual was not possible so we have
to take judgmental sampling.
Q1.what is your age group?
43
S.NO TYPE OF CHOICE % AGE
1 Age group 25-30 15
2 Age group 30-35 40
3 Age group 35-40 30
4 Above age 40 15
INTERPRETATION:
From the above pie chart, we can understand that age group of 25 to 30 are more then
other three age groups .
Q2.what is your Gender ?
15%
40%30%
15%
1 Age group 25-30
2 Age group 30-35
3 Age group 35-40
4 Above age 40
44
S.NO TYPE OF CHOICE
1 Male 65
2 Female 35
65%
35%
1 Male
2 Female
INTERPRETATION:
From the above pie chart, we can understand that males as compared to females in the
survey group
Q3.what is your occupation?
S.NO TYPE OF CHOICE
45
1 Businessmen 40
2 Service 30
3 Housewife 10
4 Others 20
40%
30%
10%
20%
1 Businessmen
2 Service
3 Housewife
4 Others
INTERPRETATION:
From the above pie chart, we can see businessmen, service are more then housewives
and others.
Q4.How often do you take health drink in a day?
S.NO TYPE OF CHOICE % AGE
46
1 Once 15
2 Twice 25
3 Thrice 40
4 More than 3 times 20
% AGE
15%
25%
40%
20%1 Once
2 Twice
3 Thrice
4 More than 3 times
INTERPRETATION: From the above pie chart, it is clear that about 40 % of the
people take health drink thrice in a day as compared to the 25 % ratio of the people
which take health drink twice in a day
5. Do you take Horlicks?
S.NO TYPE OF CHOICE % AGE
47
1 Yes 80
2 No 20
% AGE
80%
20%
1 Yes
2 No
INTERPRETATION: From the above pie chart, it is clear 80% ratio of the people
like Horlicks as compared to the 20 % ratio of the people which do not like horlicks.
Q6. If you don’t get Horlicks for one day, then what would you do?
48
S.NO TYPE OF CHOICE % AGE
1 Stay with horlicks 75
2 Use any other health drink 25
% AGE
75%
25%1 Stay with horlicks
2 Use any other healthdrink
INTERPRETATION: From the above pie chart, it is clear that about 75 % of the
people stay with horlicks if they do not get it for one day as compared to the 25 %
ratio of the people which uses any other health drink.
Q7.Through which sources do you come to know about Horlicks?
S.NO TYPE OF CHOICE % AGE
49
1 Print media 20
2 Radio 05
3 Television 55
4 Campaign/hoardings 15
5 Others 05
% AGE
20%
5%
55%
15%5% 1 Print media
2 Radio
3 Television
4 Campaign/hoardings
5 Others
INTERPRETATION: From the above pie chart, it is clear that 55 % of the people
think that Television is the medium through which they came to know about horlicks.
8. Which is the best health drink Company in your view?
S.NO TYPE OF CHOICE % AGE
50
1 Horlicks 60
2 Bourvita 15
3 Complan 10
4 Malto 05
5 Others 10
% AGE
60%15%
10%
5%10%
1 Horlicks
2 Bourvita
3 Complan
4 Malto
5 Others
INTERPRETATION: From the above pie chart ,it is clear that about 60 % of the
people like horlicks as their best health drink company as compared to the 15 % ratio
of the people which like Bourvita.
Q9.Are you satisfied with your present health drink?
S.NO TYPE OF CHOICE % AGE
1 Yes 65
51
2 No 35
% AGE
65%
35%
1 Yes
2 No
INTERPRETATION: From the above pie chart, it is clear that 65 % of the people
are satisfied with their present health drink company as compared to the 35 % ratio of
the people which are not satisfied.
10. Which features do you think Horlicks should have apart from other companies?
S.NO TYPE OF CHOICE % AGE
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1 Cheaper rate 15
2 Great taste 25
3 Great health ingredients 50
4 Others 10
% AGE
15%
25%
50%
10%1 Cheaper rate
2 Great taste
3 Great healthingredients
4 Others
INTERPRETATION: From the above pie chart, it is clear that 50 % ratio of the
people like great health ingredients in the horlicks which are not present in any other
company.
11. Which company product gives the cheapest rate in the industry?
S.NO TYPE OF CHOICE % AGE
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1 Complan 25
2 Horlicks 40
3 Malto 20
4 Others 15
% AGE
25%
40%
20%
15%
1 Complan
2 Horlicks
3 Malto
4 Others
INTERPRETATION: From the above pie chart, it is clear that 40 % ratio of the
people like horlicks which offers cheapest rate in the industry .
12. Do you purchase product because of company’s name ?
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S.NO TYPE OF CHOICE % AGE
1 Yes 60
2 No 40
% AGE
60%
40%
1 Yes
2 No
INTERPRETATION:
From the above pie chart, it is clear that about 60 % of the people purchase horlicks
because company’s name.
Q13. Do you think that company is targeting its customer in the market in
a proper way?
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o Yes
o No
% AGE
68%
32%
1 Yes
2 No
S.NO TYPE OF CHOICE % AGE
1 Yes 68
2 No 32
INTERPRETATION:
From the above pie chart, it is clear that 68 % of the people think that the company is
targeting its customer in the market in a proper way as compared to the 32 % ratio of
the people which think that the company is not targeting its customer in the market in
a proper way.
Majority of the people take health drink thrice in a day and believe that
Horlicks is the best health drink
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Most of the people stay with horlicks if they do not get it for one day
Television is the main medium through which people came to know about
horlicks.
Majority of the people are satisfied with their present health drink company
Majority of the people like great health ingredients in the horlicks which are
not present in any other company.
Most of the people think that the company is targeting its customer in the
market in a proper way.
Majority of the people buy the products of the company due to its name and
fame
Most of the people believe that Horlicks has the cheapest rate in the industry
Firstly Glaxo Smith care should segment the market and then decides which
group of customer they have to sale Horlicks .
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Glaxo smith care should make a separate policy for competing with the local
brands.
Company should launch schemes and discount specially targeting on poor
markets of North Delhi.
Another for the increase the sale’s volume of Horlicks Company should
increase their promotion activity like road show, dealer’s meet, and
advertisement and customer awareness programs.
The company should give some more rebates and Gift Voucher’s to retailers it
will encourage the retailers to sale more.
In some places company should check out the activity of distributor also
means are they providing to retailer all schemes what company is giving.
QUESTIONNIARE
Name: ________________
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Age __________________
Occupation____________
Phone No.______________
1. How often do you take health drink in a day? a. Once
b. Twice c. Thrice d. More than 3 times
2. Do you take Horlicks?a. Yes b. No
3. If you don’t get Horlicks for one day, then what would you do? a. Stay with horlicks b. Use any other health drink
4. Through which source do you come to know about Horlicks? a. Print Media b. Radio
c. Television d. Campaign/Boarding’s e. Others
5. Which is the best health drink Company in your view?a. Horlicks b. Boruvita c. Compland. Malto
e. Others
6. Are you satisfied with your present health drink? a. yes b. No
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7. Which features do you think Horlicks should have apart from other companies? a. Cheaper rate b. Great Taste c. Great Health Ingredients d. Others
8. Which company product gives the cheapest rate in the industry? a. Complan b. Horlicks c. Malto d. Others
9. Do you purchase products because of company’s name? a. yes b. No
10. Do you think company is targeting its customer in the market in a proper way? a. yes b. No
Books:
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1. Kotler Philip, Marketing Management ,Prentice Hall of India Pvt. Ltd,6th
Edition,2001
2. Valarie A.Zeithaml ,Mary Jo Bitner, Service marketing ,TMH.3rd
Edition ,1999
3. Gupta S.P and Gupta ,M.P. Business Statistics, sultan chand and sons ,2nd
Edition,1998
Newspapers:
1. Times of India
2. Hindustan Times
3. The Economic times
Websites:-
1. www.horlicks.com
2. www.britannia.com
3. www.nestleindia.com
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