Professional Documents
Culture Documents
2009 – 2010
Submitted by Guided by
(Internal Guide)
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Preface
The primary objective of this report is to provide the readers the insight of the potential of the market for
biscuits in India is and how GlaxoSmithKline can launch its biscuit line in INDIA.
Through this report I would like to draw the attention of the reader, the remarkable progress and growth of
the company over the years and the work conducted by the brand manager of the company.
I have benefited immensely by meeting the people who are directly associated with the GlaxoSmithKline
and working under them for this project and referred to many publications and articles on the internet. I
express my gratitude to all such authors and publishers.
Any suggestions to improve this report in contents or in style are always welcomed and will be appreciated
and acknowledged.
Siddhant Chandra
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Acknowledgement
I convey my guide Mr. Subashish Beura, Brand Manager Biscuits, GlaxoSmithKline Consumer
Healthcare Ltd., for giving me this challenging opportunity and trusted on my abilities to handle it.
It has allowed me to learn practical nuances of marketing in an FMCG.
I convey gratitude to my college guide, Ms. Himani Grover for his wise supervision, guidance,
patience and encouragement.
Finally I thank Mr. Subhajit Sen, Vice President Marketing, GlaxoSmithKline Consumer
Healthcare Ltd. for taking out time for the presentation and their valuable feedback.
Siddhant Chandra
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Student Undertaking
This is to certify that I, Siddhant Chandra had completed the Project titled
“Market Analysis For The Re-Launch Of Horlick’s Biscuit in
GlaxoSmithKline” (GlaxoSmithKl ine) under the guidance of Ms.Himani Grover in
the partial fulfillment of the requirement for the award of degree of Bachelor of
Business Administration of BVIMR, New Delhi. This is an original piece of
work & I have neither copied nor submitted it earlier elsewhere.
Siddhant Chandra
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To Whomsoever It May Concern
Project Guide
(Internal Guide)
Contents
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Chapter 1: Introduction……………………………………………………………. 7
Chapter 4: Findings……………………………………………………………….34
Annexure
1. Introduction
1.1 Fast Moving Consumer Goods (FMCG)
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Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer
Goods (FMCG). FMCG products are those that get replaced within a year. Examples of FMCG
generally include a wide range of frequently purchased consumer products such as toiletries, soap,
cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables
such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include
pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and
chocolate bars. India’s FMCG sector is the fourth largest sector in the economy and creates
employment for more than three million people in downstream activities. Its principal constituents
are Household Care, Personal Care and Food & Beverages. The total FMCG market is in excess of
Rs. 85,000 Crores. It is currently growing at double digit growth rate and is expected to maintain a
high growth rate. FMCG Industry is characterized by a well established distribution network, low
penetration levels, low operating cost, lower per capita consumption and intense competition
between the organized and unorganized segments.
The Rs 85,000-crore Indian FMCG industry is expected to register a healthy growth in the third
quarter of 2008-09 despite the economic downturn. The industry is expected to register a 15%
growth in Q3 2008-09 as compared to the corresponding period last year. Unlike other sectors, the
FMCG industry did not slow down since Q2 2008. The industry is doing pretty well, bucking the
trend. As it is meeting the every-day demands of consumers, it will continue to grow. In the last
two months, input costs have come down and this will reflect in Q3 and Q4 results.
Market share movements indicate that companies such as Marico Ltd and Nestle India Ltd, with
domination in their key categories, have improved their market shares and outperformed peers in
the FMCG sector. This has been also aided by the lack of competition in the respective categories.
Single product leaders such as Colgate Palmolive India Ltd and Britannia Industries Ltd have also
witnessed strength in their respective categories, aided by innovations and strong distribution.
Strong players in the economy segment like Godrej Consumer Products Ltd in soaps and Dabur in
toothpastes have also posted market share improvement, with revived growth in semi-urban and
rural markets.
These young people work harder, earn more, spend more and demand more from the market,
making India a dynamic and aspirational society. Domestic demand is expected to double over the
ten-year period from 1998 to 2007. The number of households with "high income" is expected to
increase by 60% in the next four years to 44 million households.
India is rated as the fifth most attractive emerging retail market. It has been ranked second in a
Global Retail Development Index of 30 developing countries drawn up by A T Kearney. A.T.
Kearney has estimated India's total retail market at $202.6 billion, is expected to grow at a
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compounded 30 per cent over the next five years. The share of modern retail is likely to grow from
its current 2 per cent to 15-20 percent over the next decade, analysts feel.
The Indian FMCG sector is the fourth largest sector in the economy with a total market size in
excess of US$ 13.1 billion. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$
33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories
like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market
potential. Burgeoning Indian population, particularly the middle class and the rural segments,
presents an opportunity to makers of branded products to convert consumers to branded products.
India is one of the world’s largest producers for a number of FMCG products but its FMCG exports
are languishing at around Rs 1,000 crore only.
There is significant potential for increasing exports but there are certain factors inhibiting this.
Small-scale sector reservations limit ability to invest in technology and quality up gradation to
achieve economies of scale. Moreover, lower volume of higher value added products reduce scope
for export to developing countries.
The FMCG sector has traditionally grown at a very fast rate and has generally out performed the
rest of the industry. Over the last one year, however the rate of growth has slowed down and the
sector has recorded sales growth of just five per cent in the last four quarters.
The outlook in the short term does not appear to be very positive for the sector. Rural demand is on
the decline and the Centre for Monitoring Indian Economy (CMIE) has already downscaled its
projection for agriculture growth in the current fiscal. Poor monsoon in some states, too, is unlikely
to help matters.
Moreover, the general slowdown in the economy is also likely to have an adverse impact on
disposable income and purchasing power as a whole. The growth of imports constitutes another
problem area and while so far imports in this sector have been confined to the premium segment,
FMCG companies estimate they have already cornered a four to six per cent market share.
The high burden of local taxes is another reason attributed for the slowdown in the industry. At the
same time, the long term outlook for revenue growth is positive. Give the large market and the
requirement for continuous repurchase of these products, FMCG companies should continue to do
well in the long run. Moreover, most of the companies are concentrating on cost reduction and
supply chain management. This should yield positive results for them.
The market size of personal wash is estimated to be around Rs. 8,300 Cr. The personal wash can be
segregated into three segments: Premium, Economy and Popular. The penetration level of soaps is
92 per cent. It is available in 5 million retail stores, out of which, 75 per cent are in the rural areas.
HUL is the leader with market share of ~53 per cent; Godrej occupies second position with market
share of 10 per cent. With increase in disposable incomes, growth in rural demand is expected to
increase because consumers are moving up towards premium products. However, in the recent past
there has not been much change in the volume of premium soaps in proportion to economy soaps,
because increase in prices has led some consumers to look for cheaper substitutes.
Detergents:-
The size of the detergent market is estimated to be Rs. 12,000 Cr. Household care segment is
characterized by high degree of competition and high level of penetration. With rapid urbanization,
emergence of small pack size and sachets, the demand for the household care products is
flourishing. The demand for detergents has been growing but the regional and small unorganized
players account for a major share of the total volume of the detergent market. In washing powder
HUL is the leader with 38 per cent of market share. Other major players are Nirma, Henkel and
Proctor & Gamble.
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Hair Care:-
The hair care market in India is estimated at around Rs. 3,800 Cr. The hair care market can be
segmented into hair oils, shampoos, hair colorants & conditioners, and hair gels. Marico is the
leader in Hair Oil segment with market share of 33 per cent; Dabur occupies second position at 17
per cent.
Shampoos:-
The Indian shampoo market is estimated to be around Rs. 2,700 Cr. It has the penetration level of
only 13 per cent in India. Sachet makes up to 40 per cent of the total shampoo sale. It has low
penetration level even in metros. Again the market is dominated by HUL with around ~47 per cent
market share; P&G occupies second position with market share of around ~23 per cent.
Antidandruff segment constitutes around 15 per cent of the total shampoo market. The market is
further expected to increase due to increased marketing by players and availability of shampoos in
affordable sachets.
Oral Care:-
The oral care market can be segmented into toothpaste - 60 per cent; toothpowder - 23 per cent;
toothbrushes - 17 per cent. The total toothpaste market is estimated to be around Rs. 3,500 Cr. The
penetration level of toothpowder/toothpaste in urban areas is three times that of rural areas. This
segment is dominated by Colgate-Palmolive with market share of ~49 per cent, while HUL
occupies second position with market share of ~30 per cent. In toothpowders market, Colgate and
Dabur are the major players. The oral care market, especially toothpastes, remains under penetrated
in India with penetration level ~50 per cent.
Food Segment :-
The foods category in FMCG is gaining popularity with a swing of launches by HUL, ITC, Godrej,
and others. This category has 18 major brands aggregating Rs. 4,600 Cr. Nestle and Amul slug it
out in the powders segment. The food category has also seen innovations like softies in ice creams,
ready to eat rice by HUL and pizzas by both GCMMF and Godrej Pillsbury.
Tea :-
The major share of tea market is dominated by unorganized players. More than 50 per cent of the
market share is capture by unorganized players. Leading branded tea players are HUL and Tata
Tea.
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Coffee :-
The Indian beverage industry faces over supply in segments like coffee and tea. However, more
than 50 per cent of the market share is in unpacked or loose form. The major players in this
segment are Nestlé, HUL and Tata Tea.
Spending Pattern
An increase is spending pattern has been witnessed in Indian FMCG market. There is an upward
trend in urban as well as rural market and also an increase in spending in organized retail sector. An
increase in disposable income, of household mainly because of in-crease in nuclear family where
both the husband and wife are earning, has leads to growth rate in FMCG goods.
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Governmental Policy
Indian Government has enacted policies aimed at attaining international competitiveness through
lifting of the quantitative restrictions, reducing excise duties, automatic foreign in-vestment and
food laws resulting in an environment that fosters growth. 100 per cent ex-port oriented units can
be set up by government approval and use of foreign brand names is now freely
within a year. Hindustan Unilever Ltd is the largest player in the industry and has the widest market
coverage.
1.6.3 Opportunities
Major Key Opportunities for Indian FMCG Sector are mentioned
below:
Packaged Food
Only about 10-12 per cent of output is processed and consumed in packaged form, thus
highlighting the huge potential for expansion of this industry.
Oral Care
The oral care industry, especially toothpastes, remains under penetrated in India with penetration
rates around 50 per cent. With rise in per capita incomes and awareness of oral hygiene, the growth
potential is huge. Lower price and smaller packs are also likely to drive potential up trading.
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Beverages
Indian tea market is dominated by unorganized players. More than 50% of the market share is
capture by unorganized players highlighting high potential for organized players.
Strengths:
• Low operational costs
• Presence of established distribution networks in both urban and rural areas
• Presence of well-known brands in FMCG sector
Weaknesses:
• Lower scope of investing in technology and achieving economies of scale, especially in small
sectors
• Low exports levels
• "Me-too” products, which illegally mimic the labels of the established brands. These products
narrow the scope of FMCG products in rural and semi-urban market.
Opportunities:
• Untapped rural market
• Rising income levels, i.e. increase in purchasing power of consumers
• Large domestic market- a population of over one billion.
• Export potential
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• High consumer goods spending
Threats:
• Removal of import restrictions resulting in replacing of domestic brands
• Slowdown in rural demand
• Tax and regulatory structure
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Nestle India Limited
Nestle is planning to invest Rs 6 billion in India in 2009 for
expansion
of its business in the country.The company which has allotted an
investment of Rs 3 billion in the Indian market in 2008, would be
doubling the investment in 2009 as part of its business strategy.
Nestle
International is reinvesting and expanding in India and Nestle India
will have all the financial resources to expand and grow from the
parent company.
Shubhajit Sen, E-VP (marketing) at GSK, told reporters that the company plans to achieve sales of
Rs 300 crore over the next 18-24 months from its foods business.
Mr Sen said Horlicks’ Foodles instant noodles brand has been able to capture 5% share within six
months of launch. “We would want one-fourth of our sales to come from new launches. The current
share is close to 20%,” he said. The 110-year-old health drink Horlicks has 51% share in the health-
drinks category and along with Boost gives GSK control of over two-thirds market share. “There is
a fundamental shift towards synergising all our marketing activities on Horlicks and bringing it
under one platform across categories,” Mr Sen added.
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2.0 Company Profile
GlaxoSmithKline plc
CHAIRMAN
Simon J. Scarff, O.B.E
Type Public limited company
MANAGING DIRECTOR (LSE: GSK
Zubair Ahmed NYSE: GSK)
DIRECTORS Industry Pharmaceutical
Ashok Dayal Founded 2000, by merger of Glaxo
Gautam K. Chakraborty (till 30.11.07) Wellcome and SmithKline
Kunal Kashyap Beecham
P. Dwarakanath Headquarters London, United Kingdom
P. Murari
Praveen K Gupta Key people Chris Gent, Chairman
Ramakrishnan Subramanian (w.e.f. 1.12.07) Andrew Witty, Chief Executive
Subodh Bhargava Julian Heslop, Chief Financial
Officer
COMPANY SECRETARY Dr. Moncef Slaoui, Chairman
Surinder Kumar of Research and Development
Products Pharmaceuticals
BANKERS Revenue £28.36 billion(2009)
Deutsche Bank
Citibank N.A. Operating £9.25 billion (2009)
Bank of America income
The Hongkong & Shanghai Banking Net income £5.66 billion (2009)
Corporation Limited
Employees 99,000 (2009)
AUDITORS Website www.gsk.com
Price Waterhouse
REGISTERED OFFICE
Patiala Road
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Nabha 147201 (Punjab)
YEAR DESCRIPTION
1955: Horlicks a milk product manufactured by Horlicks Ltd. Slough, England was being
imported, bottled and sold in India. Due to changes in import policy import stopped.
1956–57: A team from the organization visited to explore the possibilities of setting up a plant with
the support of Maharaja of Nabha, His highness PRATAP SINGH, and a plant was set up at
Nabha.
1958: On May 31, 1958 His highness Pratap Singh laid the foundation stone of the Company at
Nabha.
1969: Horlicks Group disposed off their holding in India and U.K. to “BEECHAM GROUP OF
INDUSTRIES" which was a multinational and owned more than 500 companies in more than 200
countries engaged in manufacturing of Brylcream, Hair cream, Eno Fruit Salt, Macleans,
Toothpaste, Pure Silvikrin etc. Immediately after taking over the management, Beecham Group
shifted its head office from Nabha to Delhi.
1979: Beecham India (Pvt.) Ltd. Mumbai merged with Hindustan Milk food Manufacturers Ltd.
and the name was changed to H.M.M. Ltd. Beecham Group Plc.
1991: SmithKline U.S.A. merged on September 16, 1991 to form Smith Kline Beecham
Consumer Brands, Plc. with its registered office in the U.K. H.M.M. became a part of Smithkline
Beecham Consumer Brands, one of the three sectors of Smithkline Beecham and its name was
changed to SmithKline Consumer Brands Ltd.
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1994: The name was changed to Smithkline Consumer Healthcare Ltd. to reassert the company's
promise of providing Healthcare to consumers. The company decided to do away with its toiletry
products and sold its brands like Brylcream and Silvikrin to Sara Lee.
2000: The Company acquired MALTOVA and VIVA brands of nutritional from
Jagatjit Industries Ltd.
A merger took place between Smithkline Beecham and Glaxo Welcome and the new company
Glaxo Smithkline (GSK) was formed on 27-12-00
Glaxo
Merge
r GlaxoSmithKli
Smith Kline ne
Beecham
2004: The Bank of Punjab has tied up with the company for facilitating finance
on attractive terms to its milk suppliers.
2005: Deutsche bank has tied up with GSK for facilitating their fund management as well as
treasury management on a centralized basis
2006: Company’s packing unit at Excise Free Zone – Baddi (Himachal Pradesh) came into
existence.
2007: Company’s packing unit at Excise Free Zone – Gauhati(Assam) came into existence.
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2.2 GEOGRAPHICAL OVERVIEW
Apart from packing stations at mentioned above the malted Food Powder is also send to
Ghaziabad at M/s Parson Nutritionals Pvt Ltd for manufacturing of Biscuits
♦ PARSON GHAZIABAD
The marketing of the company's products is done through various Regional Sales Offices (RSO)
situated at:
The company has its head office in Gurgaon. Bulk-malted food manufactured in Nabha is
dispatched to different packing stations in drums for packing in unit’s container or gusseted
pouches (GPs). GlaxoSmithKline Consumer Healthcare Limited is one of the three sectors of
GlaxoSmithKline.
1. GLAXOSMITHKLINE PHARMACEUTICALS:
It is a one of the major players of pharmaceutical companies and has activities in all the major
markets of the world and spends a major part of its income in R&D.
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2.4 MANUFACTURING PROCESS
The Manufacturing process for Horlicks is as Follows:
1. The First step in the production process involves the mixing of wheat flour with malted
barley.
2. In the second step water is added to the above mixture and the material is mashed
thoroughly, as a result of which the outer cover of malted barley is removed and remains
after is called Husk.
3. After mashing, the material becomes thick slurry in which the solid content is above 55%.
4. The fourth step involves adding up of milk to the mixture.
5. The next stage is the stage of evaporation in which the material is evaporated and the result
is thick slurry in which the solid content is around 82%.
6. After evaporation, comes the step of spreading out of material in plates and keeping them in
the oven for about half an hour.
7. Once the material is completely dried, the plates are taken out from the oven and the food
item is scrapped out, which comes out in the form of thin layers. Then the vitamins and
other essential nutrients are added to the food items which is then ground and the result is
our final product HORLICKS
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Wholesalers Sale Depots
Horlicks is manufactured at the Nabha plant, after that it is put in drums with a capacity of 186 kg.
The finished good thus packed in drums is either bottled or packed in pouches and then sent to sales
depots situated across the country.
New Horlicks
Horlicks Pistachio
Horlicks Export
Boost Intermediate
Horlicks intermediate for Pistachio and Butterscotch variants
Horlicks Premix
Horlicks Vanilla Premix
Junior Horlicks Chocolate with DHA
Actibase Vanilla
Horlicks with FAT
Junior Horlicks Intermediate
New Junior Horlicks DMI
New Mother Horlicks DMI
Horlicks Butterscotch delite
New Improved Boost
Horlicks Lite Regular Malt
Junior Horlicks With DHA
New Elaichi Horlicks
Mother’s Horlicks With DHA
Boost Premix
Acitbase Regular
Actigrow Chocolate
Actigrow Vanilla
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GlaxoSmithKline Consumer Healthcare Ltd. is having three production units, which are at Nabha,
Rajahmundry and Sonepat. The unit at Nabha is the mother unit and its production capacity is
99500 MT per annum and the products manufactured by this company fall under two categories of
consumer healthcare:
1. HORLICKS
The flagship brand of the company, this product name is associated with that of the company. It
would be interesting to know how and where this global brand took off. Way back in 1883, James
Horlicks, a London based chemist experimented with powered malt mixed with milk and launched
this product in Chicago, USA, as "Malted Milk". In 1906 he returned to England and set up a
factory at Slough. Renamed as 'Horlicks' in 1931, it became a part of the giant Beecham Group in
1969. India forms almost half the world's market for Horlicks.
2. BOOST
Boost was launched in 1976 as an energy drink in the Brown Powder segment. An Indian Brand,
this is manufactured at the Nabha Plant. It is also exported to Countries in West Asia. Very popular
in the South, Boost has grown an average growth rate of 15% per annum. Sportsmen like Kapil
Dev and Sachin Tendulkar back it, making it the secret of OUR ENERGY!!
6. ELAICHI HORLICKS
Elaichi Horlicks was launched in October 1974. Horlicks position as the market leader in the Milk
Food Drinks (MFD) category was further strengthened with the launch of Chocolate Horlicks in
November 1990. Elaichi Horlicks is Horlicks with a fresh cardamom taste and aroma along with
natural goodness of wheat, milk and malted barley making an appetizing and easily digestible
drink.
7. ENO
Eno is a 100 years old global brand. It is a part of ‘Gastrointestinal category’ Eno is the only
powder antacid and has shown favorable growth over the years. This has been strengthened of the
lemon variant and the sachet pack.
8. BISCUITS
The biscuit division has spread its wings and set flight with a 54% increase in the turnover.
Horlicks biscuits are now a truly national brand. The division has a number of plans for the future
growth with the lot of exciting new variety up its sleeves.
♦ Manufacturing Department
♦ Engineering Department
♦ Quality Assurance Department.
♦ Warehouse & Supply Chain Management
♦ Procurement Department (Milk Sourcing Procurement and Purchase Department)
♦ Finance & IT Department
♦ Human Resources and Administration Department.
♦ Environment, Health and Safety Department (EHS)
♦ Operational Excellence
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2.10 DEPARTMENTS
OPERATIONAL
EXCELLENCE
ENVIORNMENT HEALTH
MANUFACTURING
HR & A
ENGINEERING
FINANCE
& QUALITY
I.T. ASSURANCE
WAREHOUSE
PROCUREMENT
SUPPLY CHAIN
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2.11 GSK MISSION
Our global quest: “To improve the quality of human life by enabling people to do more, feel
better, and live longer”. People at GlaxoSmithKline Consumer Healthcare Limited are dedicated
to deliver medicines and products that help millions of people around the world to live longer,
healthier and happier lives.
2.12 CULTURE
Successful companies have developed something special that supersedes corporate strategy, market
presence, or technical advantage - distinctive culture. What it is, whether it is important or not,
what you deal with indirectly. Why? Because culture is an intangible shadow. You cannot hold
culture. It has no handles, nothing you can touch directly. Having said all that, it is an important
issue GSK’s culture is the set of norms that create powerful precedents for acceptations around
acceptable risk, change orientation, creative and innovation, group versus individuals effort,
customers orientation, extra efforts and more. Culture is a powerful force and can provide an
engine to achieve market success or an anchor pulling the firm toward failure.
The main objective or the core purpose of the study is to provide a business plan which will aid
GSK biscuit team in reviving its position in the biscuit segment and to make the
company more profitable in the long run.
1. Time constraints: The entire schedule of this project report is over a period of merely
three weeks, so time is a genuine constraint which limits the scope and also the scale of the
study.
2. Data constraints: lack of adequate and accurate data is another major limitation of the
study.
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• A proposal intended to explain certain facts or observations;
• A tentative theory about the natural world; a concept that is not yet verified but that if
Horlicks Biscuits would e x p l a i n certain f a c t s or phenomena; "a scientific
hypothesis that survives experimental testing becomes a scientific theory"; "he
proposed a fresh theory of alkalis that later was accepted in ...
• Guess: a message expressing an opinion based on incomplete evidence,
Now, in this specific study the main issues on which the hypothesis can be formulated are:
• What are the reasons that are mainly leading to the downfall of Horlicks
Biscuits,
• What are the critical decision areas or the areas that need to be taken care in order to
revive the brand,
• Who are the main consumers of Horlicks biscuits and what are the buying behaviors of
the consumers,
• What is the visibility of Horlicks Biscuits brand among retailers and consumers, where
exactly Horlicks Biscuits is losing itself among the competitors,
Having understand the above problem the null hypothesis can be framed as follows,
Null Hypothesis, Horlicks B i s c u i t brand is losing its acceptance among the buyers
because of lesser visibility in the retail outlets, as a result of which brand presence is
getting adversely affected;
So the alternate hypothesis will be Horlicks brand is accepted well among the buyers
because of more visibility in the retail outlets, as a result of which brand presence is
increasing,
It is to be noted that the key words or phrases in the null hypothesis are Acceptance among
Buyers, Visibility in retail outlets, and brand presence, Now if we form an equation it can be
easily said that positive combination of acceptance among the buyers and Visibility in the
retail outlets is directly proportional to the brand presence i.e.
Visibility in the retail outlets + Acceptance among the buyers α Brand presence of
Horlicks Biscuits
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3.3.2 SURVEYS AND QUESTONNAIRE USED:
Now for judging the level of visibility in the retail outlets a retailer’s survey needs to be done
following a structured questionnaire which will provide the service levels, marketing
strategies and level of distribution penetration of Horlicks Biscuits in the local market.
Next for judging the acceptance of Horlicks Biscuits among the buyers, a consumer
survey needs to be undertaken following a structured questionnaire aiming at understanding
the consumer buying behavior, their tastes and preferences, their attitudes and perception
towards biscuits.
3.4 ANALYSIS
3.4.1 RETAILERS SURVEY
The retailer survey has been done following a structured and a uniform questionnaire which
comprises of the following details:
PART A: General Questions on shop name, Owner name, shop category, location etc.
PART B: Questions regarding the available varieties of Biscuits n the shop, and the
various categories of biscuits kept n the shop.
PART C: Whether the retailer deals in Horlicks Biscuits or not,
PART C-1: If the retailer deals in Horlicks Biscuits , then questions were
regarding varieties, sales and service levels of Horlicks Biscuits.
PART C-2: If the retailer does not deal in Horlicks Biscuits but deals in other
Horlicks Biscuits products, then questions regarding why the retailer
doesn’t deals in Horlicks Biscuits,
PART C-3: If the retailer does neither deals in Horlicks Biscuits and other Horlicks
products, then questions regarding the awareness, past dealings etc has
been put forth n the questionnaire.
It is very essential to understand the fact that in this entire study three possible retailer types has
been covered:
Type 1: Retailer who deals in Horlicks Biscuits ,
Type 2: Retailer who does not deals in Horlicks Biscuits but deals in other Horlicks
products like Junior Horlicks Biscuits, Boost , so etc.
Type 3: Retailer who does not deals neither in Horlicks Biscuits nor in other
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Horlicks products,
CONSUMERS SURVEY
Consumer’s survey, on the other hand, has been done mainly to judge the buyers behavior
towards purchasing and judging the credibility of a biscuit brand.
The survey again has been done following a structured and a uniform questionnaire having the
following main components:
1. General questions seeking the name, family status, financial background of the consumer.
2. Specific questions about which brand of biscuits the consumer mainly consumes,
3. Questions regarding consumption habits and consumption occasions of the consumer
as in who, when, why and how consumes biscuits in the family.
4. Questions regarding the Purchase habits and Purchase occasions of the consumer as in
who, when, why, how and for whom purchases the biscuits n the family.
5. Questions regarding the Types of brands consumed by the family, the most preferred
brand, and the awareness regarding brands like Horlicks Biscuits.
6. Lastly and most importantly,question seeking leads about the judgments, perceptions,
attitudes of the consumer behind purchasing a certain brand, the idea here is to trace the
following things:
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4.0 FINDINGS
1) Most of the shopkeepers are aware about Horlicks Biscuits but they hesitate to keep
Horlicks Biscuits in their shop because of no demand in the market.
2) The most simple and famous answer by shopkeeper was that nobody comes for
HORLICKS BISCUITS, customer asks for Britannia and other well known brands.
3) The supplier service is low in comparison with other brands because of no demand.
4) Only very few shopkeeper keep large number of varieties of HORLICKS BISCUITS
biscuit in their shop.
5) Most of the shopkeeper doesn’t want to keep HORLICKS BISCUITS in their shop but
they keep because of maintaining different varieties in their shop.
6) Only large departmental store keep no. of varieties of HORLICKS BISCUITS in their
shop.
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4.2 FINDINGS FROM CONSUMER SURVEY:
Before going to the main elements and observations of this exploratory survey, it is
very pertinent to talk about the content and the context of the survey. Now, content
wise, it was more of an one-to-one interview kind of survey than a typical
questionnaire based survey where significant questions regarding the following areas
were asked:
1 Introductory and general questions regarding the identity, background, family,
status of the consumer, THEN came the more deeper or rather the more
related questions which comprises of the following main headings:
2 Consumption Occasions, questions judging ,who, when, where, how and why the
consumer consumes biscuits;
3 Purchase Habits, Questions judging who, when, how and where from buys
biscuits in the family;
4 Preferred brands, questions judging the most preferred brands of the biscuits;
Talking about the context, the survey has been conducted over a period of seven days, taking
into consideration the need for a diverse background, or, in simple terms the variety of
consumers according to age, demographics and financial background. So, out of the thirty
four consumers surveyed, care was taken about the fair mix of people from different levels,
different classes of the society.
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4.3 OBSERVATIONS AND MAIN FINDING
The following are the observations came out from the survey:
Most of the families observed consume biscuits quite frequently in a month and
also in considerably larger volumes.
There were more consumption occasions as a result of which purchase occasions are
also more.
Behind every consumer buying behavior, a strong brand presence could be felt, the
fact that about approx 75% of the subjects identified themselves with
Britannia proves the fact even more. Most subjects admitted the strong brand
presence of Britannia, the quality and the variety of biscuits, and also the fact it is
been there for a long time are some of the main reasons for them to try out
Britannia.
Most of the families preferred branded biscuits than non branded or local biscuits,
Horlicks Biscuits, sadly was not even in the frame.
Almost 90% of the subjects in the study had one common consumption occasion
In the form of having Marie along with tea, and Britannia and Parle e were mostly
preferred.
Kids and guests were the two mostly seen consumers among the families that
were surveyed.
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Most of the families gave a lot of important to the quality and the brand presence in the
sense that JO DIKHTA HAIN, WOHI BEEKTA HAIN ☺ and since Britannia is a very
old company in that sense also there was a huge connection.
st
Regarding purchasing habits, Women of the family stood the 1 place in
purchasing biscuits, and then men.
Most families agreed to the fact that there were not many as such purchasing occasions
for biscuits, simply biscuits are a necessity, when there was need rather demand they went for
purchasing the biscuit.
Sun feast is the most strongly raising brand. Sunfeast is almost present in every shop and
takes second place after Britannia in terms of availability.
• Most of the people doesn’t know about the HORLICKS BISCUITS brand
and are not aware of various varieties of HORLICKS BISCUITS. Hardly
they seen any advertisement or any promotional activity by HORLICKS
BISCUITS.
• Large departmental store is the only place where they can know about
HORLICKS BISCUITs, because in Kiranas or in provisional stores either
visibility is not so much or nobody recommends HORLICKS BISCUITS,
that’s why HORLICKS BISCUITS is out of reaches for consumer.
• HORLICKS BISCUITS vermicelli still popular in market but Bambino is the
leader.
• During the survey only very few people had knowledge about HORLICKS
BISCUITS.
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5.0 CONCLUSION AND BUSINESS PROPOSAL
From the analysis and observations, it can be seen that Horlicks Biscuits Brand of biscuits
at today date is in a volatile situation because of the following reasons:
a. The visibility of the brand in the local retail shops of Tamil Nadu is much lesser &
comparison to other brands.
b. Most of the consumer prefers Britannia and Parle over other brands, and the
awareness of Horlicks Biscuits is almost not there.
c. The service level of Horlicks Biscuits with respect to other companies has been
down and there has been several quality related issues too.
d. Lastly Horlicks Biscuits, as a brand has lessened its brand loyalty, brand
attractiveness and brand image among the customers has also decreased over the
years.
Having known all the above problems of Horlicks Biscuits, let us visualize this case under the
limelight of marketing, taking into account the various pros and cons of the case:
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Now what needs to be understand here is that Britannia, Parle being the Market leaders
determines the price, quality and variability in the segment, whereas Mcvities because of its
unique selling proposition has been able to create a market on its own which the leaders have not
been able to resolve. Whereas Brands like Horlicks Biscuits , with lesser capacity and limited
corpus are in nowhere in between, Because of the sheer power and penetration by the leaders,
The company has lost a major chunk of its market Share and is in the verge of getting
whitewashed now.
Taking from another Marketing point of view, the positioning aspect of the Horlicks Biscuits
brand, now the term positioning is the act of designing the company’s offering and image to
occupy a distinctive place in the mind of the target market. Now having said that Horlicks
Biscuits is actually suffering from confused positioning as it has not been able to identify its
target market.
Besides all this the company is having problems in distributing its products also because of the
huge power stroke, brand stroke of the competitors the distribution is also lesser. Lastly over the
years with more and more quality issues, packaging problems and all Horlicks Biscuits has
lost its brand loyalty by leaps and bounds as unlike Britannia not many people can identify
itself with the Horlicks Biscuits brand.
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BUSINESS PROPOSAL: Now after coining all the possible reasons for the downfall of the
brand, let us look at the plus points of Horlicks Biscuits:
1. Firstly, the company is a forty year old one and is well speeded among the major cities
of South.
2. The Brand Horlicks Biscuits is an old brand and is still popular in certain parts of Tamil
Nadu,
3. Certain SKUs like Niche, Elaichi are still market leaders in their own segment.
Now there can be two ways for Horlicks Biscuits to look at the above issues, rather two
approaches,
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PROACTIVE APPROACH: Modern marketing always calls for a proactive approach as
companies now a day’s always needs to be two step ahead of the competitor. When everything
is going wrong, the idea is to dismantle competitors by doing Out of the box thinking which
includes bringing innovative products, effective marketing and positioning of the product in
such a way that competitor is not able to ape in the short run. The idea is to create a Niche in the
market, or, a space in the market that will be untouched by the competitors. Aurofood can
follow the below mentioned strategies in this case:
• A fully fledged and independent R & D Department which will do adequate market research and
bring out innovative products which other companies have never launched.
• Identifying the adequate cost and revenue centers is again very important. Lessening the dull
SKUs and unwanted part of the sales force will aid in re engineering of the entire process.
• Identifying the exact target market and establish a well communicable product campaign.
• Taking proper attention to increase the quality of the biscuits, eye catchy pack sizes which appeal
to masses.
…………………………….************……………………..
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RETAILER QUESTIONNAIRE
PART-A
A.1.Shop.Name…………………………………………………………………………………
A.3.Contact No.………………………………………………………………………………...
A.4.Location……………………………………………………………………………………
PART-B
B.1. What brands of biscuits do you sell?
f) Milk g) Other
………………………………………………………………………….
a) Yes c) No
PART-C-1
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[If answer to C. is a)- YES]
PART-C-2
Products?
a) Yes b) No
………………………………………………………………………………………[If No,
proceed to C-3]
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PART-C-3
[If answer to C. is b)- No. and answer to C2. a), is b)- No]
a) Yes c) No
C3.b. If answer to above is a) Yes, Why don’t you deal with HORLICKS BISCUITS ?
C3.c. Were you selling HORLICKS BISCUITS in the past? (If this is not indicated in answer
to earlier question)
a) Yes c) No
Note: Probe clues for preference for any one variety of HORLICKS BISCUITS.
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CONSUMER QUESTIONNAIRE: Name………..….
…………………………………………………………………………… Occupation….….
……………………………………………………………………………
Address……………………………………………………………………………………..
Age…………………………………………………………………………………………
e) Packaging
e) Unawareness
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6) Any particular reason for which you attract most towards a biscuit brand?
8) If you like Horlicks Biscuits, then which type of variety you like most?
a) Glucose
b) Elichi
c) Junior
a) Very Good
b) Good
c) Poor
d) Very Poor
e) Not at all
a) Shopkeeper
b) Friend
c) T.V
d) Newspaper
e) Other
Any Suggestion……………………………………………………………………………………..
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BIBLIOGRAPHY:
rd
+ Marketing Management and Contemporary practices, 3 Edition, Philip Kotler.
rd
+ Business Research Methods, Cooper and Schindler, 3 edition.
+ http://business.mapsofindia.com/india-industry/biscuits.html Article on
Indian
Biscuit segment.
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