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Project
On
A STUDY OF MARKET SUCCESS OF HEALTH DRINKS-
BOURNVITA, COMPLAN AND HORLICKS
Submitted towards the partial fulfillment of
The degree of M.B.A. - M.B.L.
For the course of
MARKETING MANAGEMENT
Submitted by: Submitted to:
Anupam Sain Dr. Archi MathurMBA-MBL (2nd SEM) Asst. Professor & Asst.Dean,Roll no. 192 Faculty ofManagement,NLU, Jodhpur NLU, Jodhpur
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CONTENTS
SERIAL NUMBER CHAPTERS PAGE
NUMBE
R
EXECUTIVE SUMMARY 3
OBJECTIVES 4
RESEARCH METHODOLOGY 5
CHAPTER 1 INTRODUCTION:MARKET SUCCESS AND
PARAMETER AFFECTING MARKET SUCCESS
6-7
CHAPTER-2 INTRODUCTION: HORLICKS, BOURNVITA,
COMPLAN
8-10
CHAPTER-3 DATA TABULATION 11-17
CHAPTER-4 ANALYSIS 18-20
CHAPTER-5 CONCLUSION 21
CHAPTER-6 RECOMMENDATIONS 22
A. ANNEXURE 23-28
B. BIBLIOGRAPHY. 29
EXECUTIVE SUMMARY
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This work deals with various parameters affecting market success of health drinks, specifically
Bournvita, Complan and Horlicks.
Chapter one deals with the concept of market success in general as well various parameters
affecting market success.
Chapter two deals with introduction of various organizations/brands selected for study.
Chapter three provides data collected through field study and graphical representation of that data.
Chapter four provides analysis of collected data and to find out effect of various parameters on the
market success of Bournvita, Complan and Horlicks.
Chapter five provides conclusion of this work.
Chapter six provides various recommendations about strategies to these three brands viz.
Bournvita, Complan and Horlicks.
RESEARCH OBJECTIVES
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1. To identify and analyse the parameters leading to market success of health drinks.
2. To study the impact of these parameters on the success or failure of health drinks.
3. To suggest strategies, to the health drink industry, which will make them more
successful.
RESEARCH METHODLOGY
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My research methodology will be doctrinal as well as non-doctrinal in nature. The data will be
both primary as well as secondary. The survey will be conducted by the means of questionnaire in
which various questions on the topic will be posed. Information would be collected and data would
be tabulated, analysis and recommendation will be made.
CHAPTER 1
INTRODUCTION TO MARKET SUCCESS AND PARAMETERS
AFFECTING MARKET SUCCESS
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A market is the set of actual and potential buyers of a product. Success is a relative aspect for
everyone. We can define success as an event that accomplishes its intended purpose. As far as
the intention of company is taken into consideration it is to achieve good profit, overtake
competitors, winning additional market share, achieve consumer loyalty, to have a good reputation
in the society. So market success of a company will not only depend only upon how much profit
does it earns but also upon how loyal its customer are, what is the reputation of the company in the
society, how is it handling the competition etc.
There may be several parameters which can affect a companys market success. The list of these
parameters can never be exhaustive because new parameters keep adding in this list as the new
dimensions of market emerges.
These parameters are related to what product company is providing, on how much price is it
providing, how is it providing, how is it promoting, when is it providing, where is it providing,
what value is this product containing, what is the image of the company in the market, how loyal
its customer are, how much trust the customer having in the company etc.
The parameters related to product are as following-
Quality of product
Value attached with the product
Brand name
Packaging
Appearance etc.
The parameters related to price are as follows-
Pricing strategy
Discounts
Margins etc.
The parameters related to place are as follows-
Channel members
Channel motivation
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Market coverage
Location
Availability
Transportation Inventory levels etc
The parameters related to promotion are as follows-
Advertising
Sales promotion
Public relation
Message etc
The other parameters are as follows-
Image of the company
Trust of the consumer
Brand loyalty of the consumer
Stimulation to purchase by near environment etc
CHAPTER 2
INTRODUCTION: BOURNVITA, COMPLAN, HORLICKS
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BOURNVITA1-
Bournvita is a brand of health drink launched by Cadbury-Fry (India). Cadbury was incorporated
in India on July 19th, 1948 as a private limited company under the name of Cadbury-Fry (India).
Cadbury Bournvita was launched during the same year. It is among the oldest brands in the Malt
Based Food / Malt Food category with a rich heritage and has always been known to provide the
best nutrition to aid growth and all round development.
Throughout its history, Cadbury Bournvita has continuously re-invented itself in terms of product,
packaging, promotion & distribution. The Cadbury lineage and rich brand heritage has helped the
brand maintain its leadership position and image over the last 50 years.
The brand has been an enduring symbol of mental and physical health ever since it was launched in
1948. It is hardly surprising then, that Bournvita enjoys a major presence in the Malt Food market.
Given its market share of 17%, Cadbury Bournvita reaches across hundreds of cities, towns and
villages through 3,50,000 outlets in India. In the 1980 Moscow Olympics, Cadbury Bournvita was
the official health drink for the Indian team. It is a universal truth that mothers attach a lot of
emotional importance to nourishment while bringing up their children. However, children always
look out for the tastiest option to make their daily dose of milk more enjoyable.
Cadbury now offers two options to capture this appeal: Cadbury Bournvita, with its popular
chocolate taste, and its latest offering, Cadbury Bournvita 5 Star Magic, leveraging the rich
chocolate and caramel flavor of Cadbury 5 Star. Cadbury Bournvita advertising has moved withthe times to reflect the changing needs of the consumers.
During the '70s the communication centered on 'Good upbringing' and Bournvita became an
essential building block for childhood. "Goodness that grows with you" was the campaign idea that
communicated this thought.
In the 80's the focus shifted from 'Upbringing' to 'Intelligence' with the more aggressive "Brought
up right, Bournvita bright" campaign, which was very successful during its time.
In the early '90s all brands in the category provided purely physical benefits like nourishment,
energy and growth. It was at this time that Bournvita decided to raise the bar by promising physical
and mental benefits. This resulted in the famous Tan Ki Shakti, Man Ki Shakti Campaign which
became an anthem for the brand.
1Website visited on 15/01/09
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In the new millennium, keeping pace with the evolving mindsets of the new age consumers,
Cadbury Bournvita is about arming consumers with Confidence to take on physical and mental
challenges that nobody else can, resulting in one of the most successful advertising campaigns
which is based on 'Real Achievers who have grown up on Bournvita'2.
COMPLAN3-
Complan is a major brand in the 1200 crore malted beverage segment in India. A brand once
owned by Glaxo was acquired by HJ Heinz in 1995. Heinz is a $9.2 Bn conglomerate that has
operations in 200 countries and is famous for its Ketchups.Complan has been established aroundthe world as a trusted provider of nutritional supplements for more than 50 years. Complan was
first developed by Glaxo in the 1950s as a powdered food for use in hospitals. When reconstituted
with water, it provided all essential nutrients and could be fed to patients through a tube, as well as
by mouth. Its name is derived from COMplete PLANned nutrition.
Following its success in the hospital environment, Complan developed as a product suitable for
outpatient care and eventually became available for purchase in pharmacies and shops.
Complan has continued to develop over the years. Flavored varieties were first introduced in the
1970s and the range has since expanded and also includes savory varieties. By 1985, nutritional
thinking had advanced and Complan was again reformulated to reflect this. The quantity and type
of fat content was revised in line with a Department of Health report on diet and cardiovasculardisease
All Complan sold in the UK is manufactured in the UK. There are variations in product make-up
and methods of manufacture around the world. But wherever it is made, Complan consistently
offers balanced nutrition in line with local nutritional requirements. Today Complan is focused on
providing nutrition products suitable for all members of the family, through three core products:
Complan (balanced nutrition for the family), Casilan (higher protein for sports performance and
illness recovery) and Complan Shake (to tackle clinical malnutrition). Another interesting strategy
was the launch of Complan sachet priced at Rs5 for 15gm Complan.
2Website visited on 16/01/2009
3Website visited on 16/01/2009
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HORLICKS4-
Horlicks is the name of a company and of a malted milk hot drink, which is claimed to promote
sleep when consumed at bedtime. It is manufactured by GlaxoSmithKline in the United Kingdom,
India and Jamaica.
By far, the biggest market for Horlicks is India, where it has traditionally been marketed as The
Great Family Nourisher. New products have been developed specifically for India, such as
alternative flavours and special formulations for young children and breast-feeding mother. Claims
by GlaxoSmithKline India in 2005 that Horlicks encourages growth and alertness in children have,
however, caused some controversy. Horlicks in India is one of the most trusted brands as
independently measured by leading publications. Horlicks is available in many different variants in
India.
Junior Horlicks 1-2-3 is a large extension that is specially designed for pre-school children.
Horlicks is also available as biscuits. In 2005, Horlicks Lite was also introduced targeting older
consumers and does not contain any cholesterol or added sucrose.
In the UK, GlaxoSmithKline attempted a rebrand of the product in 2004 for younger consumers by
redesigning the packaging and publicizing its consumption at a number of trendy London venues
such as the Groucho Club.
In some countries, such as the Philippines and Malaysia, Horlicks was also sold as milky-
chocolate-flavoured disks in paper packets, which were then eaten as candy. Horlicks remainspopular in Malaysia and Singapore where it packed under licence from SmithKline Beecham and
sold in large glass and tin containers. It is also available in 1.5 kg refill packs.
In Hong Kong, Horlicks is known better as a cafe drink than as a sleeping aid. It is served at cha
chaan tengs as well as fast-food shops such as Cafe de Coral and Maxims Express. It can be
served hot or cold, and is usually sweetened with sugar. It is almost always made with warm milk,
and ice is added to it if a cold drink is desired.
CHAPTER 3DATA TABULATION
Retailer-10
Consumer- 20
4Website visited on 16/01/2009.
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http://en.wikipedia.org/wiki/Sleephttp://en.wikipedia.org/wiki/GlaxoSmithKlinehttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Jamaicahttp://en.wikipedia.org/wiki/Groucho_Clubhttp://en.wikipedia.org/wiki/Groucho_Clubhttp://en.wikipedia.org/wiki/Philippineshttp://en.wikipedia.org/wiki/Malaysiahttp://en.wikipedia.org/wiki/Malaysiahttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Caf%C3%A9_de_Coralhttp://en.wikipedia.org/wiki/Caf%C3%A9_de_Coralhttp://en.wikipedia.org/wiki/Maxim'shttp://en.wikipedia.org/wiki/GlaxoSmithKlinehttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Jamaicahttp://en.wikipedia.org/wiki/Groucho_Clubhttp://en.wikipedia.org/wiki/Philippineshttp://en.wikipedia.org/wiki/Malaysiahttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Caf%C3%A9_de_Coralhttp://en.wikipedia.org/wiki/Maxim'shttp://en.wikipedia.org/wiki/Sleep7/31/2019 Project Mktg
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Sales figures (for 500 gm pack) given by retailers-
Reasons given by retailer about the success of particular health drink-
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Health drink 2006 2007 2008
Bournvita 89 90 90
Complan 53 56 50
Horlicks 18 21 25
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Schemes-
Only Horlicks provides free gift scheme to the consumer. No other brand is providing any scheme
to any one i.e. Customer or Retailer.
Brand name- Customer loyalty-
Suggestion of retailer-
Bournvita 50%
Complan 20%
Horlicks 30%
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Reason for this suggestion-
They are old customers and seek advice 30%
The margin on suggested product is good --
I personally feel that this particular brand is good 50%
Giving good advice to customer will make them
loyal towards me
20%
Parameters as quoted by retailers which cause success or failure of any health
drink from aforesaid-
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Whether the consumer comes decided about the purchasing of particular
health drink (According to maximum responses shown by retailers)-
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Product quality 30%
Advertisement provided on TV 20%
Stimulation by near environment 20%
Brand loyalty/Brand name 20%
Pricing strategy 10%
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Consumer prefers-
Bournvita 50%
Complan 30%
Horlicks 20%
Reasons given by consumers for selection of particular health drink-
Following table is based on maximum responses shown by consumer for a particular health drink
regarding the reason because of that consumer purchases that product-
Brand Strength (Top 3)Bournvita (50%) 1. Brand name is good (60%)
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2. Product is better (20%)
3. Price is low (10%)
Complan (30%) 1. Ive been using it from a long time
(50%)
2. Trust on product (30%)
3. Advertising (on TV) is good (10%)
Horlicks (20%) 1. Advertising (on TV) is good (50%)
2. My child insist to purchase (20%)
3. Trust on the product (20%)
Do you hesitate in changing brand-
Reasons of hesitation-
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Yes 80%
No 20%
Reason Response
Brand name 40%
Trust 20%
Quality of product 20%
Resistance by
user
10%
Price 10%
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Will you postpone your purchasing if particular brand is not available-
Role of retailer in purchasing decision-
He dont play any role 70%
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Yes 80%
No 20%
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He suggests particular health drink(please mention name also) and I purchase that 10%
He tells benefits of different health drinks but the choice is mine only 20%
CHAPTER 4
ANALYSIS
Analysis of questionnaire asked to Retailer-
Q. 1- What are the sales figures for following health drinks?
Analysis- The answers given by most of the retailer clearly shows that Bournvita is a successful
market leader. Sale of Bournvita is almost constant from last 3 years. Sale of complan is
fluctuating. Interesting finding is that sale of Horlicks is increasing from last 3 years.
Q.2- The reasons of success of particular health drink?
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Analysis-The analysis of this question clearly shows the reasons why Bournvita is a market leader
and why sale of Horlicks is increasing from last 3 years.
Advertising part of Bournvita is quoted medium by retailer because it is having very good brand
name so they dont need to advertise so aggressively. But the advertising war of Complan and
Horlicks is certainly attracting customers. Advertising of Horlicks is considered as best among
these three brands.
Product characteristics of these three brands are almost the same, except packaging par. Packaging
of Horlicks is considered to be best among these three brand because of various designs of packs
(refer to Horlicks Women which is having a famine shape) but taste and smell of Horlicks are
not considered as good as other two brands.
As far as schemes considered none of these brands providing any schemes to retailer or consumer
except Horlicks, which is providing free gifts to customer in the form of pencil box etc.
Brand name as well as consumer loyalty of Bournvita is best than both of other brands.
Q.3- Parameters responsible for market success-
According to retailers the main parameter for market success of health drinks is their Quality
because today consumer is very health conscious. Other important parameters which are having
equal importance in eyes of retailers are as follows-
Advertising on TV Stimulation by near environment
Brand loyalty as well brand image
Pricing strategy was also considered as one of the important parameter by the retailer.
These parameters can be compared with the sale of products and it can be seen that the main reason
of being Bournvita as a market leader is its quality as well as brand name and brand loyalty of
consumers. The reason of lagging behind of Complan is mainly its high price but it is still above
Horlicks because loyalty of consumers attached to it. The Horlicks is not selling as much as above
both brands but sale of Horlicks is increasing from past years because of its good advertisements as
well as good quality of product.
Q.4- Do you prefer to keep any particular brand with you?
Q.5- Why do you give preference to this particular brand only?
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Q.8- which brand do you suggest to customer?
Q.9- What is the reason of assisting the consumer?
Analysis- 90% retailers preferred to keep Bournvita with them because of its high sales (10% did
not respond). On the question of suggestion, the answers were somewhat interesting and 50%
retailers suggest Bournvita, 30% Horlicks and 20% Complan because most of them were using that
particular product at home so they are recommending the same. Another interesting finding was
that the margin provided by these companies to retailer is almost same in a range of 9-10%, so this
is not a reason of suggesting particular brand. The other reason to suggest a good brand to the
consumer is that the consumers are coming to their shops from a long time and use to seek advice.
Another main reason is that retailers want to make a customer loyal towards their shop so they give
them advice about good product.
Q.6- Do consumer come decided or they decide after coming to your shop that which brand to purchase?
Analysis- retailer said that 90% customers came decided about which brand is to buy and only 10% (who
are usually new consumer of health drinks) seeks advice.
Analysis of questionnaire asked to Consumers-
Q.1, 2- Which health drink does you prefer for you and your children and reasons?
Analysis- Most of the customers (50%) replied that they will prefer Bournvita over other two
brands because of its Brand name. Other main reasons for selecting Bournvita are low price and
good product. Some consumers also stated that they purchase Bournvita because they are using it
from a long time.
Second most desirable health drink is Complan (30%). Consumer stated that they are using it from
a long time and dont want to change, they are having trust on this product. Few consumers said
the advertisement on TV, Brand name and recommendation by others are also the reason of
purchasing.
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Horlicks was preferred by only 20% of consumes. These 20% stated the reason of purchasing as
the advertisement on TV is good and their children insist them to purchase Complan. Trust was
also a factor responsible for purchasing. Few consumers (10%) stated that they purchase Horlicks
because of gift items associated with it.
Q.3, 4- Do you hesitate in changing brand and reason?
Q.5- What is the reaction of your children when you change the brand?
Analysis- Most of the consumers (80%) stated that they will hesitate in changing the brand because they
are to the brand name of that product. Other reasons for this hesitation are trust of consumer, quality of
the product, high price of other substitutes. Resistance by user i.e. mainly the children is also a reason
stated by the consumers.
Q.6- Will you postpone your purchase if the particular brand is not available?
Analysis- Analysis of this question shows the brand loyalty of consumers. 80% of the consumers stated
that they will wait for their particular brand. This is also a big reason for success of particular health
drink.
Q.7- What role does the retailer plays in your purchase of health drink?
Analysis- Most of the consumers (70%) stated that retailer plays no role in their decision of purchasing.
20% said that retailer tells benefits of all health drinks but the choice made is independent. Only 10% of
consumers agreed on the fact that they purchase what the retailer suggests them.
CHAPTER-5
CONCLUSION
After studying these findings it can b concluded that market share of Bournvita is far more than
Horlicks and Complan. There are various reasons behind success of Bournvita and relative low
success of Complan and Horlicks.The main reason behind success of Bournvita is the brand name of it. The other reasons behind
success of Bournvita are its low price as well good quality of product. It doesnt mean that other
health drinks are miserably failed in the market. They are also having good market share and
achieved a good success in past few years. Both other brands (Complan & Horlicks) are having
their own USPs and Bournvita is also having drawbacks like-
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Negligible channel motivation activities
No schemes for consumers
Complan is an old brand so people who are consuming it from past many years keep consuming it
and are loyal towards it. In past years Complan was not very aggressive about its advertising
strategies but now a day its advertisement can be seen on TV very frequently. The other reason of
compaln to become popular is the trust of the consumer.
Success of Complan is comparatively lower because of following reasons-
Very high price of its products
Negligible activities for channel motivation.
No schemes for consumers
Low investment on advertising and promotion etc.
Horlicks is also becoming popular these days as shown by the sales figure given by retailers. The
main reason of this success is the aggressive advertisement which are attracting the new
generation. Trust on the brand is also one of the factors responsible for increasing market share of
this brand.
Taste and smell are not good
Rare schemes for consumers
Negligible channel motivation activities
CHAPTER-6
RECOMMENDATIONS
There can not be common recommendation to all the brands because of their different USPs and
drawbacks.
Recommendations to Bournvita-
It is already a market leader so it is having a good brand name. It can launch some other
energy products along with this health drink.
It can start promotional schemes that will attract children segment towards them.
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It can once again start some programme like Bournvita Quiz Contest which will promote
it as good for mind.
It can sponsor some sports competitions and sports tournaments which will promote its
image as good for health.
It can improve its channel motivation activities and can provide channel member some
schemes like rebate, discount, foreign tour etc.
Recommendations to Complan-
It can cut cost of its product without affecting quality, which will reduce the market price
of its products.
It can promote its channel members through various schemes.
It can launch promotional activities for children and can provide some good gifts for
children along with its products.
It can make its advertisement more attractive by celebrity endorsement.
Recommendations to Horlicks-
It can improve its taste and smell by launching some new variants in the market.
It can also improve its channel motivation activities.
It can also launch some promotional activity for children.
QUESTIONNAIRE-
To retailer-
Q. 1- What are the sales figures for following health drinks-
Health drink 2006 2007 2008
Bournvita
Complan
Horlicks
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Q.2- what are the reason you thinks about the success of particular health drink?
Give rating from 1-5
1=worst 2=bad 3=medium 4=good 5=best
Reasons Horlicks Complan Bournvita
Advertising-
Signs and displays
Classifieds in news
papers and magazines
Advertising on Radio
and TV
Online advertising
Pricing
Product-
Taste
Smell
Nutritional value
Packaging
Schemes for customers
Free gift
Foreign tour
Scholarship to students
Discounts
One buy one free
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Any other please
specify
()
Schemes for dealers
Discounts
Rebate
Foreign tour
Free gift
Any other please
specify
(..)
Brand name
Customer loyalty
Q.3- What, according to you, are the parameters which decides success of any health drink in the
Indian market?
Q.4- Do you prefer to keep any particular brand with you? (Name the brand)
Q.5- Why do you give preference to this particular brand only?
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Q.6- Do consumer come decided or they decide after coming to your shop that which brand to
purchase?
They come decided
They decides after coming to shop
Q.7- Do you play any role in consumers decision making?
Yes
No
Q.8- If yes, then which brand do you suggest to customer?
Q.9- What is the reason of assisting the consumer? Put tick mark in front of appropriate reason.
They are old customers and seek advice
The margin on suggested product is good
I personally feel that this particular brand is
good
Giving good advice to customer will make them
loyal towards me
To Consumers-
Q.1- Which health drink do you prefer for you and your children? (Put tick mark in front of any of
the following)
Bournvita
Complan
Horlicks
Q.2- What are the reasons of selecting this particular health drink?
Reasons Tick mark
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Advertisement is
good
Signs and displays
Advertising onRadio and TV
Classifieds in news
papers and
magazines
Advertising on
Radio and TV
Online advertising
Price is low
Product is better
The taste is good
The smell is good
This is very healthy
Schemes are good
Free gift
One buy one free
Scholarship to
students
Discounts
Foreign tour
Any other
Brand name is good
Ive been using it from
a long time
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My child insist to
purchase this only
This brand is easily
available
Somebodyrecommended this
brand
Ive trust on this
brand
Q.3- Do you hesitate in changing brand?
Yes
No
Q.4- If yes, then reason?
Q.5- If no, then what is the reaction of your children when you change the brand?
Q.6- Will you postpone your purchase if the particular brand is not available?
Yes
No
Q.7- What role does the retailer plays in your purchase of health drink? Put tick mark
He dont play any role
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He suggests particular health drink(please mention
name also)
He tells benefits of different health drinks but the
choice is mine only
BIBLIOGRAPHY
WEBSITES-
1. http://www.horlicks.co.uk
2. http://www.gsk-ch.in
3. http://www.cadburyindia.com
4. http://www.complanfoods.com