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.

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:

 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.

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

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:

Sales Value Growth % Categories Health Shampoo Toothpaste Hair Oils (Chyawanprash) 10% 5% 9% 23% 6% 18% 10% 19% 16% 23% 29% 2007-2008 2008-2009 0% 2009-2010 23%

Supplement -5%

Mosquito Repellant 13%

Sector Financials 2009 Net Sales Sales Growth Profit after Tax PAT Growth Market Capitalization Enterprise Value Return on Capital Employed (ROCE) P/E Ratio 164,196 10.8% 19,595 16.6% 74,746 662,540 47.1% 26.7% 2008 148,241 2.0% 17,001 -24.2% 65,810 645,477 51.0% 27.1%

In millions 2007 145,380 21,008 63,072 551,971 45.5% 21.0%

2.1 About GSK

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 6

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. GSKs best-in-class field force, backed by a nation-wide network of stockists, ensures that the Companys 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. 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 worlds 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
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. 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 kids diet essential fatty acids like DHA So along with DHA, Junior Horlicks 1-2-3 provides part of daily diet helps complete A to Z Nutrition. essential nutrition, which as

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 childs nutritional requirements. MOTHERS 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

Nutritional Facts Per 75g 26 Vital Nutrients Total quantity % daily Benefits

requirement NA 26 NA 36 15 100 100 100 100 100 100 50 100 50 50 50 50 25 50 50 Antioxidant function and healthy immunity Development of strong bones and teeth of the baby Mental and physical development of the baby Energy Development of brain, eyes and nerves of the baby Growth of the baby

DHA Protein Carbohydrates Fats Calories Elemental Iron Folate Vitamin C Vitamin B2 Vitamin B6 Vitamin B12 Iodine

60mg 15g 40.0g 10.9g 300Kcal 38mg 400mcg 80mg 1.6mg 2mg 2.8mcg 145mcg

Elemental Calcium 1000 mcg Phosphorus Vitamin D Vitamin A Vitamin E Zinc Selenium Copper 350mg 2.5mcg 650mcg 7.5mg 3mg 35mcg 0.7mg

15

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. 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

16

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. 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.

17

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!' 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:

18

Nutrients (%)* Iron (100%),

Copper,

Benefit Folate, Healthy blood for more energy and optimal physical performance Niacin, Energy release from food for efficient (50%) working of body cells For strong bones

Vitamins B12, A, C (50%) Vitamins B1, B2, B6, Pantothenic Acid, Biotin Magnesium, Zinc (17%); Vitamin D, Calcium (17%)

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 penetration exceeds 50% among SEC A and SEC B households and 40% among all households (Source: IMRB Panel Data Jan-Dec 2004)

19

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. 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.

20

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. It has to decide on the strategies to be adopted which will help to counter competition.

21

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 (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:

Nestl's relationship with India started in 1912. It started its trading with India as The Nestl Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market. Nestl India is amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'. Nestl India is a subsidiary of Nestl S.A. of Switzerland. Nestl India is a company that provides Indian Consumers products with global standards and is committed to constant growth and shareholder satisfaction. Nestl India has also provided

22

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:

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

23

2.4 SWOT ANALYSIS

STRENGTHS: 1) Wide range of product and services. 2) Wide area of network nationally. 3) Strong network of distributors 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:

24

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. 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 25

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. 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

26

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. 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.

27

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.

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. 28

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: 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 childs 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.

29

The first few years of life are also critical in shaping physical development. On an average a child grows 910 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: 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 childs diet is required to be more nutrient dense than an adults 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

30

Advertising Sales promotion Publicity

Advertising any paid form of non personal selling of the companys 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: 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.

31

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
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

32

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: 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 33

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 upgradation.

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. 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 engineerings 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

34

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. 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 childs 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:

35

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 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

36

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 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).

37

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 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.

38

"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 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.

39

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.

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

40

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.

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

41

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.
weeks.

Time frame

Time frame is the time spent on research. The time frame for our research is 8

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. 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.

42

 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?

S.NO 1 2 3 4

TYPE OF CHOICE Age group 25-30 Age group 30-35 Age group 35-40 Above age 40

% AGE 15 40 30 15

43

15%

15% 1 Age group 25-30 2 Age group 30-35 3 Age group 35-40 40% 4 Above age 40

30%

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 ?

S.NO 1 2

TYPE OF CHOICE Male Female

65 35

44

35% 1 Male 2 Female 65%

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 1 2 3 4

TYPE OF CHOICE Businessmen Service Housewife Others

40 30 10 20

45

20% 40% 1 Businessmen 2 Service 10% 3 Housewife 4 Others 30%

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 1 2 3 4 TYPE OF CHOICE Once Twice Thrice More than 3 times % AGE 15 25 40 20

46

% AGE

20%

15% 1 Once 2 Twice 25% 3 Thrice 4 More than 3 times

40%

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 1 2

TYPE OF CHOICE Yes No

% AGE 80 20

47

% AGE

20%

1 Yes 2 No 80%

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 dont get Horlicks for one day, then what would you do?

S.NO 1 2

TYPE OF CHOICE Stay with horlicks Use any other health drink

% AGE 75 25

48

% AGE

25% 1 Stay with horlicks 2 Use any other health drink

75%

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 1 2 3 4 5 TYPE OF CHOICE Print media Radio Television Campaign/hoardings Others % AGE 20 05 55 15 05

49

% AGE

15%

5%

20% 5%

1 Print media 2 Radio 3 Television 4 Campaign/hoardings 5 Others

55%

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 1 2 3 4 5

TYPE OF CHOICE Horlicks Bourvita Complan Malto Others

% AGE 60 15 10 05 10

50

% AGE

5% 10%

10% 1 Horlicks 2 Bourvita 3 Complan 4 Malto 5 Others

15%

60%

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 1 2 TYPE OF CHOICE Yes No % AGE 65 35

51

% AGE

35% 1 Yes 2 No 65%

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 1 2 3 4

TYPE OF CHOICE Cheaper rate Great taste Great health ingredients Others

% AGE 15 25 50 10

52

% AGE

10%

15%

1 Cheaper rate 2 Great taste 25% 3 Great health ingredients 4 Others

50%

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 1 2 3 4 TYPE OF CHOICE Complan Horlicks Malto Others % AGE 25 40 20 15

53

% AGE

15%

25% 1 Complan 2 Horlicks

20% 40%

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 companys name ?

S.NO 1 2

TYPE OF CHOICE Yes No

% AGE 60 40

54

% AGE

40% 1 Yes 2 No 60%

INTERPRETATION: From the above pie chart, it is clear that about 60 % of the people purchase horlicks because companys name.

Q13. Do you think that company is targeting its customer in the market in a proper way?

o Yes o No

55

% AGE

32% 1 Yes 2 No 68%

S.NO 1 2

TYPE OF CHOICE Yes No

% AGE 68 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 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.

56

 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 . Glaxo smith care should make a separate policy for competing with the local brands.

57

 Company should launch schemes and discount specially targeting on poor markets of North Delhi. Another for the increase the sales volume of Horlicks Company should increase their promotion activity like road show, dealers meet, and advertisement and customer awareness programs. The company should give some more rebates and Gift Vouchers 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: ________________ Age __________________ Occupation____________ Phone No.______________
58

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 dont 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/Boardings e. Others 5. Which is the best health drink Company in your view? a. Horlicks b. Boruvita c. Complan d. Malto e. Others 6. Are you satisfied with your present health drink? a. yes b. No 7. Which features do you think Horlicks should have apart from other companies? a. Cheaper rate b. Great Taste
59

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 companys 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: 1. Kotler Philip, Marketing Management ,Prentice Hall of India Pvt. Ltd,6th Edition,2001 2. Valarie A.Zeithaml ,Mary Jo Bitner, Service marketing ,TMH.3 rd Edition , 1999

60

3. Gupta S.P and Gupta ,M.P. Business Statistics, sultan chand and sons ,2 nd 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

61