Professional Documents
Culture Documents
Bournvita is a power brand. Bournvita was launched in 1948 and is one of the oldest brand in the malted
beverages segment. The brand is a market leader in the Brown health drink segment with a market share
of over 17 %.
This is a brand that has sustained over time and competition. Cadbury's - true to its reputation has
managed to sustain this brand over these years. The brand has sustained because of Cadbury's invested in
the brand and also ensured that the brand changed in tune with the times.
Bournvita is a chocolate flavored health drink. When the brand was introduced in the market, it tried to
solve a perennial problem that mother's face : a need for a healthy food which is tasty. Bournvita offered
that unique combination of health and taste.
Its also interesting to see how this brand has evolved over these years.In 1970s t he brand was positioned
as a product that helps in good upbringing. The brand used the tagline : Goodness t hat Grows with You.
During 1980's the brand changed its focus from Upbringing to Intelligence. The tagline was changed to :
Brought Up Right, Bournvita Bright.
In 1990's the brand felt that it should be focusing on the overall health of the kid thus changed its focus on
Body and Mind. The brand also took Energy as a main focus and thus evolved the famous VO ( voice
over) : "Bournvita has proteins, minerals and carbohydrates" . Along came the famous tagline : Tan Ki
Shakthi , Man Ki Shakthi.
During 1998, the brand faced intense competition from Milo from Nestle. At this time, the brown health
food drink segment was facing issues of stagnation because of lack of value addition. Bournvita then
changed its positioning on the health platform. The brand used a marconym RDA ( Recommended
Dietary Allowance) to reinforce the health positioning. The brand used a clever Nutritional meter to
communicate the RDA formula : 2 cups of Bournvita for balanced nutrition.
The brand also set up a Bournvita Nutritional Center where nutrition experts recommended the right RDA
percentage to kids. The brand at that time used the cricketer Ajay Jadeja to endorse the brand. The brand
also harped on the taste and used the tagline " No Bournvita No Milk " to reinforce the taste attribute.
In the current millennium, the brand has moved to the next level. In the typical laddering Up strategy,
Bournvita has identified Confidence as its Core Brand Essence. The brand realized that every kid have a
chance to excel in his chosen field of endeavour if he have confidence . The realization has enabled the
brand to chalk out the current marketing strategy. The brand now uses the tagline " Do you have
Bournvita Confidence ".
In the Brown beverages segment, Bournvita faces intense competition from Boost. In order to defend the
leadership position, Bournvita has invested heavily in product development, advertising and sales
promotion. In the product development front, Bournvita had significantly changed its packaging and the
latest pack is inspired by Boost. Along with packaging changes, the brand also had comeout with a new
variant : Bournvita Fivestar Magic. The new variant has the unique chocolate with caramel flavor of
Cadbury's Fivestar. The brand is using the brand association with Five Star as a key differentiator.
All these years, Bournvita has used taste as a consistent theme to attract the kids. The Five Star Magic
variant further reinforced this positioning.
In the advertising campaigns, Bournvita has always been a heavy spender. When I am writing this post,
Bournvita is running two different campaigns for Bournvita : one campaign for the Bournvita Fivestar
Magic and another one featuring Bournvita Confidence Academy.
Bournvita Confidence Academy is not a School but a reality show. The show which premiered
on July 2007 in the Pogo channel is different from the usual reality shows . The show features 7
kids who have exceptional talents in various fields like dancing, racing, singing, magic, studies
etc. In the reality show , these kids to act as Gurus and is expected to teach each other skills . So
you have a magic whizkid learning to sing. The point is that "You Need Confidence" to venture
into unknown fields.
Bournvita Confidence Academy is not the first event that this brand associates with. Bournvita
Quiz is the longest running quiz show in Indian Television .
In the sales promotion front also , the brand was active with its share of freebies and gifts . The
association with Cartoon Network enabled this brand to use the famous characters like
Powerpuff girls and Dexter to the brand's advantage.
As a marketer, I feel that the latest focus on Confidence is a smart move by the brand. Its arch
rival Boost has built itself on the energy platform and recently has gained headway using Sachin.
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Hence to counter Boost, Bournvita needed to own an important differentiation point. Confidence
is something that every kid look forward to. By featuring real whiz kids , the brand has been able
to create an impact in the TG. But the challenge that Bournvita faces is not from Boost but from
the Consumer Promotion trap that both these brands have fallen into. Now most of the sales are
decided by the promotional gifts and freebies than the actual efficacy. Since mothers are happy
whether the kids drink either of these , brand loyalty has become a thing of past in this segment.
Source : Cadbury website, agencyfaqs.com
Share
Bournvita
47%
Boost
30%
Milo
Maltova
Others
10%
8%
5%
Segmenting strategy
Cadbury has segmented the market for their flagship product Bournvita
demographically. It has segmented the market on the bases of age group; it is
targeting children aged between 5 to 16 yrs of age. It is targeting one of the biggest
consumer groups in India. Bournvita is a chocolate flavored health drink. In this
segment the children give too much importance to taste and their parents give
importance to health and Cadbury has addressed both the things very well. Thus it
builds a bridge between mom and the child. And moreover with all the fringe
benefits coming Segmenting strategy Cadbury has segmented the market for their
flagship product Bournvita demographically. It has segmented the market on the
bases of age group; it is targeting children aged between 5 to 16 yrs of age. It is
targeting one of the biggest consumer groups in India. Bournvita is a chocolate
flavored health drink. In this segment the children give too much importance to
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taste and their parents give importance to health and Cadbury has addressed both
the things very well. Thus it builds a bridge between mom and the child. And
moreover with all the fringe benefits coming
Positioning
In marketing, positioning has come to mean the process by which marketers try to
create an image or identity in the minds of their target market for its product,
brand, or organization. It is the 'relative competitive comparison' their product
occupies in a given market as perceived by the target market.
In 1970s the brand was positioned as a product that helps in good upbringing. The
brand used the tagline: Goodness that Grows with You. During 1980's the brand
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changed its focus from Upbringing to Intelligence. The tagline was changed to:
Brought Up Right, Bournvita Bright. In 1990's the brand felt that it should be
focusing on the overall health of the kid thus changed its focus on Body and Mind.
The brand also took
Energy as a main focus and thus evolved the famous VO (voice over): "Bournvita
has proteins, minerals and carbohydrates. Along came the famous tagline: Tan Ki
Shakthi, Man Ki Shakthi. During 1998, the brand faced intense competition from
Milo from Nestle. At this time, the brown health food drink segment was facing
issues of stagnation because of lack of value addition. Bournvita then changed its
positioning on the health platform. The brand used an acronym RDA
(Recommended Dietary Allowance) to reinforce the health positioning. The brand
used a clever Nutritional meter to communicate the RDA formula: 2 cups of
Bournvita for balanced nutrition.
Place
Cadbury is catering Bournvita to its consumer through out India through its vast
distribution channel. Bournvita is available in various medical stores, provision
stores, super markets and all retail stores.
Promotion
An activity designed to boost the sales of a product or service. It may include an
advertising campaign, increased PR activity, a free-sample campaign, offering free
gifts or trading stamps, arranging demonstrations or exhibitions, setting up
competitions with attractive prizes, temporary price reductions, door-to-door
calling, telemarketing, and personal letters on other methods.
The objectives that are met by promoting are to move the target market through the
following phases:
Unawareness -> Awareness -> Beliefs/Knowledge -> Attitude -> Purchase
Intention -> Purchase
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It is believed that consumers cannot skip over a phase, but they need to move
through them. Promotion is used to move the target market from one phase to
another to finally purchase.
Bournvita has invested heavily in product development, advertising and sales
promotion. In the product development front, Bournvita had significantly changed
its packaging and the latest pack is inspired by Boost. Along with packaging
changes, the brand also had come out with a new variant: Bournvita Fivestar
Magic. The new variant has the unique chocolate with caramel flavor of Cadbury's
Fivestar. The brand is using the brand association with Five Star as a key
differentiator. All these years, Bournvita has used taste as a consistent theme to
attract the kids. The FiveStar Magic variant further reinforced this positioning. In
the advertising campaigns, Bournvita has always been a heavy spender. Bournvita
is running two different campaigns for Bournvita: one campaign for the Bournvita
Fivestar Magic and another one featuring Bournvita
Confidence Academy. In the sales promotion front also, the brand was active with
its share of freebies and gifts. The association with Cartoon Network enabled this
brand to use the famous characters like Powerpuff girls and Dexter to the brand's
advantage Focus on Confidence is a smart move by Cadbury to promote its brand
BOURNVITA.
Its arch rival Boost has built itself on the energy platform and recently has gained
headway using Sachin. Hence to counter Boost, Bournvita needed to own an
important differentiation point. Confidence is something that every kid looks
forward to. By featuring real whiz kids, the brand has been able to create an impact
in the Target group.
Bournvita always comes up with consumer promotion activities from time to time
e.g. giving free gifts like plastic mugs, kitchen appliance, chess game or ludo etc.
Recently they decided to target school children by offering attractive mugs with
cartoon characters design on it. They also come up with the scheme of extra
Bournvita for the same price.
Customer satisfaction:
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Research Hypothesis
Our research report is based on the hypothesis stated as under:To find customer satisfaction from all sections of our society.
Research Problem for Bournvita
The project had been undertaken with an objective to understand the customer behaviour in the
Health Food Drink (HFD) product category. The objective of the study also included
identifying the determinant purchase factors, the customer segments and the sources of
information they rely on. The existing positioning of prominent brands and the perceptions
among different segments were also covered under the study. The brand loyalty and switching
were also studied. The brand personality was also studied as a part of the project.
LITERATURE SURVEY
Nutrition in India
After 4 years of age, a child's energy needs per kilogram of bodyweight are decreasing but the actual
amount of energy (calories) required increases, as the child gets older. From 5 years to adolescence, there
is a period of slow but steady growth. Dietary intakes of some children may be less than recommended
for iron, calcium, vitamins A and D and vitamin C, although in most cases -as long as the energy and
protein intakes are adequate and a variety of foods, including fruit and vegetables, are eaten-deficiencies
are unlikely.
Regular meals and healthy snacks that include carbohydrate -rich foods, fruits and vegetables, dairy
products, lean meats, fish, poultry, eggs, legumes and nuts should contribute to proper growth and
development without supplying excessive energy to the diet.
Children need to drink plenty of fluids, especially if it is hot or they are physically active. Water is
obviously a good source of liquid and supplies fluid without calories. Variety is important in children's
diets and other sources of fluid such as milk and milk drinks, fruit juices can also be chosen to provide
needed fluids.
In India, each State is practically equivalent to a country with its specific socio-economic level, different
ethnic groups, food habits, health infrastructures and communication facilities. Thus, the nutritional status
of the population shows significant variation between states since it results from a varying combination of
factors.
In the last 20 years, there has been an improvement in the nutritional status of the Indian population. This
improvement results from not only changes in food intake but also socio-economic factors, increased
availability of potable water, lower morbidity and improvement of health facilities.
In children under five years of age, the marked improvement in nutritional status is shown by the
reduction of the prevalence of underweight from 63%, in the 1975-79 period to 53% in the 1988-90
period. The under-five mortality rate (U5MR), an important indicator of the socio-economic development,
and health and nutritional status of a society, declined from 282% in 1962 to 115 in 1994. However, a
multitude of infectious diseases such as respiratory and intestinal infections as well as malaria remain the
main cause of death in children under five, with malnutrition being an aggravating factor. Measles,
tetanus, typhoid and hepatitis are also frequent causes of death during infancy and childhood.
In the last 20 years, there have been no significant changes in patterns of dietary intake. Cereals remain
the staple food in India providing most of the energy intake. Since the seventies the consumption of foods
like pulses, roots and tubers has fallen, while those of other foods like sugar, "jaggery" (unrefined brown
sugar), fats and oils and green leafy vegetables have slightly increased. The average Indian diet remains
largely deficient in green leafy vegetables, meat, and fish, milk and milk products. Moreover, it also
remains deficient in some micronutrients such as vitamin A, iodine and iron.
Adolescents who are undergoing rapid growth and development are one of the nutritionally vulnerable
groups who have not received the attention they deserve. In under-nourished children rapid growth during
adolescence may increase the severity of under-nutrition. Early marriage and pregnancy will perpetuate
both maternal and child under-nutrition. At the other end of spectrum among the affluent segment of
population, adolescent obesity is increasingly becoming a problem.
Pre-school children constitute the most nutritionally vulnerable segment of the population and
their nutritional status is considered to be a sensitive indicator of community health and nutrition.
Over the last two decades there has been some improvement in energy intake and substantial
reduction in moderate and severe under- nutrition in pre- school children
India has enormous under-nutrition and over-nutrition problems
Asia has the largest number of malnourished children in the world. The Double Burden of Malnutrition in
Asia was inspired by the massive challenge that this situation currently poses for Asia. It describes the
main driving forces behind the groundswell of under-nutrition, while shedding light on the emerging
double burden of co-existing underweight and overweight, and the linkages between these two different
forms of malnutrition.
There are two types of nutritional problems - one is under-nutrition and another is over-nutrition.
Emphasis should be given not only to food but also to care and health, the reason being that even if
children in the age group of 0-2 years are able to get food, they may have mothers who do not have
enough time to pay attention to their children. Similarly, if there is no health-guaranteeing environment,
and children suffer from diarrhoeal diseases, no amount of food will help prevent malnutrition.
Over-nutrition, on the other hand, means either too many calories or the wrong types of calories such as
saturated fats or highly processed sugar that lead to obesity, vascular diseases, etc. Many developing
countries have under-nutrition and those in Europe and North America have over- nutrition problems.
There is this in-between category with countries like India that still have an enormous amount of undernutrition and significant over-nutrition problems. In India, for instance, around 50 per cent of its children
under the age of five are undernourished or malnourished. But in urban areas, the over-nutrition problem
is shooting up, thanks to the change in lifestyle and food habits. As a result, health systems are under huge
stress.
When there is malnutrition, there is a higher level of lower birth rate. One in three babies born in
India weigh significantly low because their mothers are undernourished. Some low-weight babies
die and some survive and those who survive adapt to malnutrition and scarcity. That is, the
biological adaptation is programmed to maximize every calorie the body gets. This adaptation
that helped a malnourished baby survive suddenly turns out to be a mal-adaptationwhen the baby
becomes an adult. The adult, who was malnourished in the past, gains extra weight even when he
takes only normal amount of food because of the biological adaptation.
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Sampling Technique: A mixture of quota and stratified method was used for sampling, with care
being taken to get responses from customers of different age groups and different family sizes.
a) Advertisement
b) Children
c) Doctor
d) Family
e) Past experience
f) Retailer
g) Word of mouth
The respondents were asked to rank the factors in order of importance. A research was conducted on the
results of the survey in order to compare the means of the ranks for the factors.We can say from the
results that there is a significant difference between the ranks of the factors with a 95% confidence.
The two most important factors that emerge out of the tests overall are the Family doctor and the
influence of the Family. This finding is an important implication for product placement. We can say
that the health food drinks should appeal to the complete family rather than only a particular age group.
Doctors can also be an important influencer or opinion leader and hence should be targeted in the product
promotions. Some products have been promoting their products using comparative advertisements
including testifications by the doctors.
A second test can be conducted in the same manner taking only the cases where the people are having
kids in the family. We observe that the two most important factors differ from the first scenario. The two
most important factors that emerge out of the test are Family Doctor and Advertisement. Thus it can
be concluded that advertisements have an important influence on the families having kids or in turn the
kids. This can be easily observed from the large number of advertisements directed towards the well being
of kids.
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important for people above the age of 60. It is also important for people who are young in age i.e. less
than 20. However it does not seem to be very significant for people in the age group 33- 45.
As factor I encompass the accessibility and affordability of the product, it can be termed as Purchase
Feasibility.
As factor II encompass the palatability and brand value of the product, it can be termed as Likeability.
As factor III encompass the nutritional value and colour, an indicator of quality, of the product, it can be
termed as Utility.
Customer Segmentation
The set of respondents was segmented on the basis of the demographic information namely age-group,
income-group, education, family size etc. The cluster analysis on these demographic variables yields
the following 2 clusters:
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Cluster 1: The members are almost uniformly distributed across all age segments except under-20
in which no member lies. However, the family size is large than 3 for all the members and a
majority of members having 1-2 child in the family. The cluster size is 27 respondents.
Cluster 2: All the members in this cluster are less than the age of 32 yrs, with the majority being
less than 20 yrs. Around 90% of the members were either single or couple thus suggesting that
the members were either students, or bachelor/newly-married young working professionals. The
cluster size is 30 respondents.
As the consumption in cluster 2 would be lower than the large families comprising kids & older
persons because of less health concerns and preference for alternative beverages, the price
sensitivity of cluster 2 would be low while cluster 1 is concerned about economy.
Thus, cluster 1 could be termed as value-seekers while cluster 2 could be termed as qualityseekers.
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g) Brand Image: The mean score for brand image is the highest for Bournvita followed by
Horlicks. This means the advertising and image associations with Bournvita are very strong.
h) Promotional schemes: Bournvita scores the highest on this aspect. The other closely
following brand Horlicks seems to be lagging on this aspect. Boost on the other hand scores
high on this attribute.
Thus we can well say that the market leaders are the brands who are scoring high on all of the above
attributes.
Though the above analysis reveals the relative performance of the brands on different parameters,
attribute-based Multi Dimensional Scaling (MDS) would indicate the overall positioning of these
brands. These results are discussed hereunder.
Attribute-Based MDS
The tool used for this analysis is MDSX. The analysis was performed on the overall samples as well as on
the 2 segments individually so as to gauge the difference in their perceptions.
The MDS on overall sample suggests that
Brand
Positioning Attributes
Horlicks
Bournvita, Complan
Palatability, Shelf-presence
Milo, Boost
Concerns
Brand
Positioning Attributes
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Strength
Economy,
Value-
Complan, Horlicks
for-money
Brand,
Shelf-presence,
Weak
Packaging, Nourishment
Bournvita
Palatability, Brand
Milo, Boost
Economy,
Weak
Colour, Strong
Promotion
The above table summarizes the existing positioning in minds of value-seekers and also indicates the
relative strength of brands on the basis of match between the segment concerns and the positioning
attributes.
Concerns
Quality,
Little
concern
for
economy
Brand
Positioning Attributes
Strength
Horlicks
Brand, Nourishment
Somewhat Strong
Bournvita
Shelf-presence, Palatability
Somewhat Strong
Boost
Colour
Weak
Milo, Complan
Promotion
Weak
The above table summarizes the existing positioning in minds of quality-seekers and also indicates the
relative strength of brands on the basis of match between the segment concerns and the positioning
attributes. None of the brands is perceived to be better on economy and packaging.
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Another question which was asked was that of the action when a retailer does not have a brand that the
consumer wants. This again indicates that only about 20 25% of the customers actually buy another
brand when the desired brand is not present in the shop. The result of the survey is as shown in the
following pie chart.
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We next conduct a one-way Anova test to test the brand loyalty among the customers of different brands.
It is observed that there is no significant difference in the switching behaviour or the action when the
brand is not available. These are the same across all the brands.
Brand Personality
The attribute-based MDS of the trait-brand matrix suggests that
Horlicks & Bournvita are perceived to be Modest, Honest, Reliable & Cheerful. Thus,
these brands can be personified as a reliable and helping friend.
Milo & Boost are perceived to be Bold & Spirited. Thus, these brands can be personified
as fun-loving, adventurous and daring youth.
None of the brands is perceived to be tough & rugged as is desired for a health product.
Customer satisfaction refers to how satisfied customers are with the products or
services they receive from a particular agency. The level of satisfaction is determined
not only by the quality and type of customer experience but also by the customers
expectations.
Database questionnaire:
o A questionnaire of 12 questions was prepared for the proper comparison
Secondary data: secondary data are those which have already been collected by
someone else and which have already pass through statically process. These are
various publications, newspapers, magazines, and web site to gather
information already existing in the broadband.
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Q. 06 The feature of ease of availability is available in which product out of the four ?
A. 06 (A) Horlicks (B) Bournvita (C) Boost (D) Complan
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Q. 08 Does the product of your choice provides you with any scheme?
A. 08 (A) Yes
(B) No
Q. 09 Out of the two brands in which one you find more variety of products?
A. 09 (A) Horlicks (B) Bournvita (C) Boost (D) Complan
Q. 10 Does the nutritional content of product has any relevance for you?
A. 10 (A) Yes
(B) No
Q. 11 If yes which out of the four products offer better nutritional content for your family
A. 11 (A) Horlicks (B) Bournvita (C) Boost (D) Complan
Q. 12 which feature out of the following instigates you to buy the product of your choice?
A. 12 (A) Family decision
(B) Individual decision
(C) Promotional/Advertisement instigated decision
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customers.
o It should also try to introduce its products in category of brown flavor.
o Should give more emphasis on the availability of product in the market.
o Product should be promoted extensively through hoardings, seminars,
CONCLUSION:
It can be concluded from the whole survey that people prefer more of Bourn Vita( a
Cadbury product) rather than Horlicks ( Glexosmiths product). People prefer Bourn
Vita because of the fact that the prices the quality the quantity & the family inspiration
are the biggest reasons for the purchase of this product.
People prefer Horlicks because of better advertisement and the reason that their
packaging is long lasting.
Otherwise overall people are more satisfied with Bourn Vita in comparison to
Horlicks because of the above mentioned reasons.
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Bibliography
Indiastudychannel.com
CadburyIndia.com
Marketingprof.com
Business.outlookindia.com
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