Battle of Health-Drinks in India

TAPISH PANWAR

The Health-conscious Indian
Reasons behind a growing inclination of Indian consumers towards
healthier food and beverages -

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

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

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

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


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

Health drink powders consumed as milk substitute & nutrient boosters

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

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



White
Powders
~65%
Brown
Powders
~35%
Major Players and Brands
GlaxoSmithKline
Horlicks
Boost
Maltova
Viva
Kraft-Cadbury (Mondelez International)
Bournivita
Heinz
Complan
Amul
Nutramul
Pro

Market-share of Major Brands
Horlicks 51 %
Bournvita 16.2%
Complan 13.9%
Boost 12 %
Brand Trust Ratings by
Trust Research Advisory
Target Group and Positioning
Horlicks - The great family nourisher that offers pleasurable
nourishment with a delicious range of flavors
All HFD TG : Middle income group and above, Metro/Urban/Semi-urban
Junior Horlicks 1-2-3
Target Group : Toddlers (Consumption) Mothers (Communication)
Positioning : An easy-to-digest drink for fussy toddlers providing
them with essential nutrition value

Junior Horlicks 4-5-6 with growth boosters
Target Group : Preschoolers (Consumption) Mothers(Communication)
Positioning A nutrition packed health food for active preschoolers with
who have a busy schedule and need to remain charged
Target Group and Positioning
Mothers Horlicks
Tagline : Healthy mothers for healthy and smart babies!
Target Group : Pregnant and Breast-feeding women
Positioning : A superior nutritional supplement for pregnant and
breast-feeding women to meet their daily nutritional requirements
USP : DHA as ingredient and ability to provide 100% RDA (Recommended
Dietary Allowance) for the TG

Horlicks Lite
Target Group : Adults
Positioning Especially designed to provide nutrition to adults
and provide them with strength and stamina to keep going
USP : Only HFD to be endorsed and certified by Diabetes India
Target Group and Positioning
Horlicks
Tagline : Proven for making kids taller, stronger and sharper
Target Group : Kids aged 5-15 years and Mothers (Communication)
Positioning : A nutritional supplement that positively enhances
physical and mental growth of kids
USP : Huge emphasis on the proven efficacy for childs mental &
physical growth on the basis of results from a series of researches
Viva
Tagline : Start to a bright and healthy day!
Target group : For age group 15 years and above
Positioning : Provides healthy foundation to life and a good start to
the day
Target Group and Positioning
Boost
Tagline : Boost is the secret of winning energy
Target Group : Children and adults looking for an energy drink
Positioning : Always positioned as an energy drink hence the tagline. It is
promoted as being the only HFD proven to increase stamina by three times
USP : Strong Sportsmen endorsements(Kapil Dev, Sachin Tendulkar, Virender
Sehwag, MS Dhoni) leading to brand following by kids
Maltova
Tagline : The yummy choco-malt drink
Target Group : Kids aged 5-15 years(Consumption) Mothers(Communication)
Positioning : Fun health drink with pleasing taste
Target Group and Positioning
Bournvita
Tagline : Tayyari jeet ki (preparing to win)
Target Group : Children aged 5-15 years & Mothers ( For Communication)
Positioning : Help kids to grow faster and enhances goodness of milk(Calcium)
USP : Strong advertising and taste appeals most in the category to the TG

Bournvita Lil champs
Target Group : Children aged 2-5 years & Mothers(For Communication)
Positioning : Most effective for kids due to DHA and whey protein content
USP : Packaging to attract kids and attached offers/gifts for kids
Target Group and Positioning
Complan (COMplete PLANned)
Tagline : Extra growing power with Complan
Target Group : Children aged 5-15 years & Mothers ( For Communication)
Positioning : Help kids to grow taller at twice the rate
USP : Backs its tall claims by multiple researches

Complan with Memory Chargers
Target Group : Children aged 5-15 years & Mothers ( For Communication)
Positioning : Improves memory and cognitive abilities in kids
USP : First HFD to target memory and cognitive benefits. Backs claims by
results of an independent research
Claims (Product and Benefits)
Horlicks :
27 vital nutrients Proteins, Multi-vitamins and DHA
Nutrisorb technology Makes nutrients easily absorbable(& more effective)

Junior Horlicks (1-2-3 and 4-5-6) :
Pre-digested (Easy for digestion for Toddlers)
23 vital nutrients (Body and Brain development)
Growth Boosters Protein, Calcium, Vitamin D &K and Magneisum
(promotes physical health in children)
Power Vitamins Vitamin B1, B2 , B6 and Niacin (Vitamin B3) (Energy
releasers to keep the kids charged up)
Smart Nutrients Iron, Iodine, DHA, Choline, Vitamin C and Folic Acid
(Essential for brain development and functioning)
Mothers Horlicks :
26 vital nutrients Essential for pregnant and breast-feeding women
Fortified DHA - Essential for brain development of child during pregnancy and
early years of life (DHA is otherwise available to child only through mothers
milk)
100% RDA (Recommended Dietary Allowance Iron, Folate, Calcium, Vitamins
C, B2, B6 and B12 (Essential for blood and bone health)
Anti-oxidants Vitamin A, E , Selenium , Zinc and Copper (Essential during
pregnancy and lactation)
Natural malting process Breaking molecules into simpler forms (Easy to digest)

Horlicks Lite :
Zero added sugar and zero added cholesterol with high fibre content
23 vital nutrients (Protein and antioxidants) to repair damaged body cells)
Claims (Product and Benefits)
Claims (Product and Benefits)
Boost :
EnVita Nutrients Systematic combination of vitamins and minerals
important for energy metabolism and hence increasing stamina

Maltova :
Active Rechargers Combination of Vitamnis, Mineral and Carbohydrates
to provide essential nutrition and energy to growing

Viva :
VitaHealth 9 essential vitamins to keep one charged up for the whole day
Natural goodness of milk and malted barley
Claims (Product and Benefits)
Bournvita :
Enriched with vitamins that help in childrens physical and mental growth
High on vitamin D which enriches goodness of milk (calcium and other
nutrients)
High on whey protein content

Bournvita Lll champs :
Enriched with 13 vitamins an 5 minerals responsible for growth of kids in
the age group of 2-5 years
DHA and whey protein content work wonders with milk for growth in
kids
Essential macronutrients like carbohydrates, essential fats and protein
Claims (Product and Benefits)
Complan :
34 vital nutrients (including iron, iodine and essential fatty acids)
Includes 100% milk protein for better growth of kids
Almost 52% milk solids making it extremely helpful for growing kids

Complan with Memory Chargers:
Enriched with 8 memory chargers in 34 vital nutrients that works wonder on
brain development for growing kids
Nutrients includes Iodine, Iron, Folic acid, Choline, Vitamin B6 & B12, Vitamin C
and Almond that are known to enhance cognitive abilities
Choco-badam chips in double chocolate drink
Major Research Claims by Brands
Complan
Benefits proven through an independent study conducted in 2008 for 12
months on the children with age-group 7-12 years in Coimbatore

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

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

Nutritional Value Claims vs Reality*
Complan
Calcium, Niacin and Protein value below the declared value
Calcium and Fat content found to be below the declared value

Bournivita
Niacin content below declared value
Niacin content below declared value

Boost
Iron content found to be least among the competing brands
Niacin value found lower than declared
* Results based on consumer voice report July 2013 released by Department of Consumer Affairs, GoI
Nutritional Value Claims vs Reality*
Horlicks
Niacin value found to be maximum among the competing brands
Calcium and Fat content found to be below the declared value

Amul Pro (Brand not included in the analysis due to low market
share)
Energy, Fats, Protein and Niacin values find below the declared value

ActiLife (Brand not included in the analysis due to low market share)
Highest calcium and iron among competing brands
Protein value found to be lower than declared value

* Results based on consumer voice report July 2013 released by Department of Consumer Affairs, GoI
TVC Watch- Horlicks
Link - Horlicks Taste
Context Reluctance of children in drinking plain milk
Emotion and effect Invoked Dislike for plain milk leading to
abandoning a rich source of nutrition
Proposition Improve the taste of plain milk by adding horlicks
which not only adds taste to milk but also enhances its efficacy
Link Horlicks Women
Context Empowering women
Emotion and effect Invoked Transformation of women into a
strong, fearless, self-confident and independent being
Proposition Horlicks celebrates the empowerment of women
suggesting its role in the process without playing hard-sell
TVC Watch- Complan
Link - Complan- Double Milk Protein
Context Significance of protein in a childs growth
Emotion and effect Invoked Clinical setting to lend
credibility to claim. Reinforce belief in protein as a major
nutrient for growth among children
Proposition Nourishes children with double milk protein
thereby making them taller and healthier
Link Complan - Grow taller twice the rate
Context Slow rate of growth in height
Emotion and effect Invoked Frustration among kids due to
shorter height leading to lack of confidence
Proposition Complan suggests that a supplementary diet such
as complan can help increase the height of kids at twice the rate
TVC Watch- Complan
Link - Complan - with Memory Chargers
Context Incomplete nutrition robbing memory
Emotion and effect Invoked How lack in essential nutrition can affect
the cognitive capabilities of children
Proposition Complan with memory charges fulfil the need of these
essential nutrients leading to improved learning abilities
TVC Watch- Bournvita
Link - Bournvita - Prepare to win
Context Importance of healthy habits
Emotion and effect Invoked A mothers concern to prepare her
son to win in life and how wise and healthy habits plays an important
role in achieving that
Proposition - Bournvita is one such healthy habit which must be
cultivated to prepare your child to win in the game of life

Link Bournvita Li'l champs
Context Want to see a champion in your child?
Emotion and effect Invoked How it is important for kids to stay a step
ahead in this competitive world and how should a mother take care of her
her childs nutritional needs to accomplish that?
Proposition Bournvita Lil champs nourishes kids with DHA(Smart) and
whey protein (Strong) hence keeping them a step ahead
TVC Watch- Boost
Link - Boost - Secret of winning energy
Context Learning for life from sports (The playground is my classroom)
Emotion and effect Invoked How sports teach us various lesson for real
life like self-confidence, ambitions, sharing etc. In order to keep learning
one has to keep playing and hence need to stay fit , strong and
energetic
Proposition - Boost provides you with that energy and strength to keep
playing so that you keep learning
Prospects of Indian HFD market
Indian HFD market is a growth market with
tremendous opportunities (Check graph)
India has one of the youngest population in
the world making it a long-term HFD market (TG)
Still considered as one of the growth markets in
terms of rising income reinforcing the long-term prospects
Rising awareness among consumers due to exposure to
developed markets (More people than ever travelling abroad,
foreign TV channels, global offerings) adds to TG everyday
Due to foreign origin of most of the HFD products(mostly developed
markets) which have stricter laws related to food safety, the
products dont need much tweaking(& expenses) in that aspect


0
2000
4000
6000
8000
Market Size in crores
2006 2013 2016*
Consumer Behaviour(HFD purchase)
Consumers attitudes regarding HFD purchase is largely influenced
by quality attributes of the product
No direct relation between brands and their sensory perceptions
Price, quality attributes and sensory perceptions are three major
factors that makes a brand in the eyes of consumer better than
other
Value for money(Nourishment vs price), price and packaging are
ranked in the same order for influencing purchase decision
Brand loyalty stands out as a very significant factor in HFD purchase
Mostly consumers will wait for their brand in case its not available at the
time of purchase instead of buying another brand
Need
Recognition
Information
Search (low)
Evaluation of
Alternatives
Purchase
Post-
purchase
Evaluation
Cognitive
Dissonance
Brand
Loyalty
Age segments
Biggest TG is the age group of 5-15 years in terms of
products offered to each TG

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

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

Complan, Boost and Maltova covers one segment each
16%
15%
39%
15%
15%
Share of products offered in
each age group
1-3 years
4-6 years
5-15 years
Above 15 years
Above 25 years
Brand Benefits Segments
HFD as Energy drinks and source of essential nutrients
(specific to TG, eg. Toddlers, Mothers etc) is most
common positioning adopted by brands(25%)

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

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

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

Thank you