Study of Consumer Behaviour Towards The Purchase of Health Food Drinks

STUDY OF CONSUMER BEHAVIOUR TOWARDS
THE PURCHASE OF HEALTH FOOD DRINKS
SUBMITTED BY:
Neha Jain (B08032) | Pranav Chaudhary (B08042) | Snehil Gupta

(B08054) | Varun Singla (B08059) | Vineet Sharma (B08062)
Group No. 3 | BM-A
STUDY OF CONSUMER BEHAVIOUR TOWARDS THE PURCHASE OF HEALTH FOOD DRINKS | 8/24/2009
TABLE OF CONTENTS
INTRODUCTION..........................................................................................................3
RESEARCH OBJECTIVE...............................................................................................3
EXPLORATORY STUDY...............................................................................................3
LITERATURE REVIEW................................................................................................3
INDIAN MILK BEVERAGE CONSUMPTION HABITS...........................................3
MILK CONSUMPTION BEHAVIOUR....................................................................4
CONCLUSION FROM LITERATURE SURVEY.......................................................5
PRIMARY RESEARCH..................................................................................................5
ENVIRONMENTAL INFLUENCES IN THE PURCHASE OF HFD.......................................6
DECISION MAKING PROCESS ADOPTED IN PURCHASE OF HFD...................................7
DATA COLLECTION....................................................................................................8
INSTRUMENT USED.....................................................................................................8
METHODOLOGY..........................................................................................................8
DATA ANALYSIS..........................................................................................................9
FACTOR ANALYSIS.....................................................................................................9
INITIAL CONSIDERATIONS..................................................................................9
ANALYSIS............................................................................................................9
EIGEN VALUE TABLE.........................................................................................10
SCREE PLOT:......................................................................................................11
COMMUNALITIES AND COMPONENT MATRIX....................................................11
ROTATED COMPONENT MATRIX.......................................................................12
CONCLUSION......................................................................................................12
CLUSTER ANALYSIS.................................................................................................13
METHODOLOGY.................................................................................................13
HIERARCHICAL CLUSTER ANALYSIS...................................................................13
K-MEANS CLUSTER ANALYSIS............................................................................15
INTERPRETATION...............................................................................................16
CONCLUSION.......................................................................................................18
T-TEST....................................................................................................................19
ANALYSIS...........................................................................................................20
CONCLUSION........................................................................................................22
POSITIONING STRATEGIES.....................................................................................22
CURRENT POSITIONING: BOURNVITA.......................................................................22
CURRENT POSITIONING: HORLICKS.........................................................................23
PERCEPTUAL MAP....................................................................................................23
INTERPRETATION................................................................................................24
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MARKET IDEAL.....................................................................................................24
BOURNVITA............................................................................................................24
HORLICKS..............................................................................................................25
RECOMMENDED FOCUS AREAS.................................................................................25
BOURNVITA............................................................................................................25
HORLICKS..............................................................................................................25
CONCLUSION.............................................................................................................25
APPENDIX 1...............................................................................................................27
APPENDIX 2...............................................................................................................30
APPENDIX 3...............................................................................................................32
APPENDIX 4...............................................................................................................33
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INTRODUCTION
India, the world’s largest malt-based drinks market, accounts for 22%
of the world’s retail volume sales. These drinks are traditionally
consumed as milk substitutes and marketed as a nutritious drink,
mainly consumed by the old, the young and the sick. HFDs are mainly
targeted at children aged 5-18 years. The kids are active and play
during this age and the pressure is on the home maker to keep the
energy level of the kids high using some drinks. The HFD category
comprises of two sub-categories – ‘Brown Powder’ and ‘White
Powder’. While the white drink finds a bigger market in South and East,
the brown one makes its presence felt in North and West. White drinks
account for almost two-thirds of the market. Currently, brown drinks
(cocoa-based) continue to grow at the expense of white drinks like Horlicks and Complan. The
share of brown drinks has increased from about 32% to 35% over the last five years. Cadbury’s
Bournvita is the leader in the brown drink segment with a market share of around 18%. India has a
thriving Rs.2,000-crore health food drinks market, with many global players, like the market leader,
GlaxoSmithKline (‘Horlicks’, ‘Boost’, ‘Viva’ and ‘Maltova’), Cadbury (‘Bournvita’), Nestle (‘Milo’),
Heinz (‘Complan’). Glaxo rules the Indian HFD market with a share of around 64%.
RESEARCH OBJECTIVE
This project is undertaken with an objective to understand the buyers’ behaviour in the ‘Health
Food Drinks (HFD)’ category. Through this study, we intend to find the answers to these questions:
 What are the prominent factors that drive a customer to purchase a HFD?
 What are the various customer segments that buy a HFD?
 What are the sources of information for these customer segments?
We also look at the current positioning strategy of two leading brands of the HFD Category in India
i.e. Cadbury’s ‘Bournvita’ and GlaxoSmithKline’s ‘Horlicks’; and would suggest the possible
recommendation strategies for marketing this product category.
EXPLORATORY STUDY
Literature Review
Indian Milk Beverage Consumption Habits
There are two categories of milk beverages or health food drinks – white beverage and the brown
beverage. Brands such as Bournvita, Nutramul, Boost, Maltova and Milo constitute the brown
beverage and have about 60-70% cocoa as their main ingredient. Others like Horlicks and Complan
fall under the white beverage category. Households constitute 60 per cent of the total market with
3
the rest constituted by the institution segment. According to a study conducted on households, the
biggest consumers of milk are in the age group of 6-16 years. The study also shows that 60 per cent
of the high income households are regular consumers of the beverage. These families on an average
consume about 30-40 gm of the product a day. Mothers are the key influencers in brand choice.
Children also have a strong say in the brand selection. These beverages are usually added to warm
or cold milk. In addition to its use as a tasty and nutritious milk drink, some of the brands
(especially brown beverages) are also used as an additive in milk to make it a tasty snack drink in
institutional segments like restaurants, canteens, juice parlors.
A higher percentage of consumers prefer white beverages over brown beverages. White beverages
are used for their therapeutic benefits while brown beverages are used more for their taste.
Milk Consumption Behaviour

Since health food drinks are consumed mostly with milk, therefore
consumption behavior of milk can be extended to the consumption of
HFDs as well.
Both flavouring and packaging were found to be important factors in

consumption, especially amongst kids. A US based research has shown
that when it comes to milk, 85% of US children prefer any kind of
flavoured milk to the plain white milk. Chocolate was found to be a
leading flavour for milk in the flavoured milk category. While other
varieties such as strawberry, banana and vanilla were also available.
1
This consumption behaviour can be extended to Indian consumers
because of the widened impact of urbanization and globalization.
Milk intakes and habits with respect to milk consumption are found to vary
with the sex of the person according to a study published in Journal of American Dietetic
Association. In a cross sectional study amongst American adolescents it was found that milk intake
was proportional to the taste preference of the teenagers. Also attitude of personal health /
nutrition was found to be an important parameter. It was also found that consumption of milk was
found to be significantly and inversely related to fast food consumption .2Thus factors such as social
income status, personal attitude towards health and taste preferences are important influencers in
milk consumption. Considering these facts, promoting the health benefits and catering to the taste
preferences of the consumers becomes imperative for the health food drink manufacturers.
Beverages constitute a significant amount in the dietary intake of the children. Milk leads the
category of beverages consumed by children. With chocolate flavour being favoured by most of the
children, most of the health food drink manufacturers have launched the chocolate version of their
products. Chocolate flavoured milk variants are the most popular variant in the flavoured milk
1
FoodService Buyer: Kids’ Drinks. Strenk, Th. Restaurant Business, jan 2006, Vol. 105 Issue 1, p74-74
2
Calcium and Dietary Intakes of Adolescents are associated with their home environment, taste preferences,
personal health beliefs and meal patterns. Larson Nicole I; Story Mary; Wall Melanie; Neumark-Sztainer, Dianne.
Journal of American Dietetic Association; Nov 2006, Vol 106 Issue 11, p1816-1824, 9p
4
category.3 This fact is also reflected in the strategy adopted by Horlicks with the launch of its ready-
to-drink version of “Doodh” in India.
Conclusion from Literature Survey

Factors which might influence the purchase and consumption of HFDs as identified from the
literature survey are as follows:
 Colour of the health food drink
 Age of the consumer
 Income of the family
 Key Influencers in the purchase decision
 Flavour
 Packaging
 Attitude towards personal health
Primary Research
Focused Group Discussion technique was used to conduct a primary exploratory study to
determine the attributes people seek as a decision criteria for choosing a health drink. For this
purpose, two groups of five parents each were formulated.
Location:
 AgriCo Colony, Jamshedpur
 Adityapur, Jamshedpur
A freewheeling discussion on the attribute influencing the choice of Health Food Drinks was
encouraged. Based on the discussions, the following product attributes were identified as
influencing the purchase decisions of the customers:
 Nourishment: The unhealthy food habits and modern lifestyle of today’s youth is somewhat
affecting their proper growth and development. So people are looking for supplements
which can give them proper nutritional value and are beneficial for a healthy lifestyle.
Moreover increasing health awareness among parents and household incomes has
aggravated this trend. People are looking for health drinks which can provide sufficient
iron, calcium, vitamins A and D and vitamin C intake in daily dietary consumption.
 Colour: The Indian Health food drink market consists of brown and white powder drinks.
The colour of a HFD plays a significant role in the purchase decision towards it. Brown
colour is generally considered a utilitarian attribute which is seen as symbol of quality in
Indian markets.
3
Chocolate Milk Wars. Berry Donna. Dairy Foods; Sep 2001, Vol 102 Issue 9, p49
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 Palatability: The HFD’s basically target children and early youth as a potential consumer.
They are largely impulsive, fun loving and choosy towards products. So taste of a product
does play a significant role in this segment.
 Economy: As HFD is a daily consumption product, people expect value for the money spent.
Moreover the middle class, a large potential buyer of health drinks is price sensitive and
hence prefers a value for money product.
 Shelf-presence: Presence in the market or shelf-presence influences the purchase of the

HFD. People generally purchase the most visible product and in case of unavailability of a
brand the consumers do not delay their purchase decision. Moreover a larger shelf space
attracts innovators (youths) to buy them.
 Packaging: The attractive packaging entices children, who are sometimes the key decision
makers behind a HFD purchase. The advertisement formulates the attitude of consumer. A
packaging design in sync with the advertisements will attract consumers by affecting their
cognitive component. Moreover packaging can consider the after use of containers jars for
Indian markets. Historically attractive designs and packaging has boosted the sales of the
HFD’s.
 Brand Image: The brand is the trust between company and the consumer. A high utilitarian
value product category like HFD needs to have a trust among its customer base to sell its
value proposition. So a brand attached to high nutritional and health values will play an
immense role in the sale of HFD.
 Promotions: The Indian market is price sensitive market wherein promotions increase the
sale of a product. Children also get attracted to promotional schemes like freebies of soft
toys etc. So Health drinks companies are frequently coming up with offers such as free
shakers, toys etc.
 Granular/ Powder: The granular and powdered form of HFD’s is considered as a decisive
variable for their purchase in some cases.
 Easy to Mix: The HFD’s should easily mix up with the liquid. A HFD with low solubility
challenges the functionality of the core product.
Environmental Influences in the purchase of HFD

Based on the Literature review and the FGD conducted, we could classify the identified factors as
environmental influencers. These are specified as below:
 Demographics
 Income
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 Age
 Education
 Family
 Role of influencer in family
 Family size
 Reference Groups
 Of child
 Of mother (decision maker)
 Marketing Activities
 Advertising
 Promotion
Decision making process adopted in purchase of HFD

Limited Decision Making
Problem Recognition
Selective
Information Search
Limited Internal
Alternative Evaluation
Few Attributes
Simple Decision Rules
Few Alternatives
Purchase
Postpurchase
No dissonance
Limited Evaluation
Limited decision making involves recognizing a problem for which there are several possible
solutions. It then involves internal and limited external search, few alternatives, simple decision
7
rules on a few attributes and little post purchase evaluation unless there is a product problem. It
covers the middle ground between nominal and extended decision making.
In case of HFDs, there are many brands available in the market. While purchasing a HFD, we look
for few attributes based on our past experience and little external search like POS, any TV
advertisement or a word of mouth from some known person. The decision might just involve
evaluating the newness of the available alternative HFD; or might involve evaluating the actual or
anticipated behaviour of others.
DATA COLLECTION
Instrument Used
A detailed questionnaire was made which measured the cognitive, affective and behavioral
components of the attitude of customers towards the purchase of HFD on a 5 point Likert scale.
Please refer Appendix 1 for the full questionnaire used for the process. A sample question is shown
below.
 I prefer buying a bottled HFD over a non-bottled pack HFD
Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
Methodology
Data was collected using the following techniques:
 Personal Interviews: With the mothers who are the

purchasers of HFD
 Web based survey: Web link sent to our relatives and

colleagues.
 Telephone based survey: Telephonic interviews were

conducted of our relatives and colleagues.
Via the above methods, we were able to collect 70 responses. The sampling method employed was
convenience based sampling. Next, we move to analyze the data collected above by using various
quantitative techniques in SPSS software.
DATA ANALYSIS
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Factor Analysis
This was undertaken to group the similar factors that drive a customer to purchase a HFD into
distinct “heads”. Factor analysis is a statistical method used to describe variability among observed
variables in terms of fewer unobserved variables called factors. The observed variables are
modeled as linear combinations of the factors, plus "error" terms. The information gained about the
interdependencies can be used later to reduce the set of variables in a dataset.
Initial Considerations
 Sample Size: Correlation coefficients fluctuate from sample to sample, much more so in
small samples than in large. Therefore, the reliability of factor analysis is also dependent on
sample size. A sample size 5 times the number of variables is considered good. In our survey
there were 13 variables and we had a sample size of 70 parents.
 Data Screening: The first thing to do when conducting a factor analysis is to look at the
inter-correlation between variables. If the test questions measure the same underlying
dimension (or dimensions) then we would expect them to correlate with each other
(because they are measuring the same thing). If there are variables that do not correlate
with any other variables (or very few) then those variables should be excluded before the
factor analysis is run. The correlations between variables can be checked using the correlate
procedure to create a correlation matrix of all variables. This matrix can also be created as
part of the main factor analysis.
Analysis
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .860
Bartlett's Test of Sphericity Approx. Chi-Square 1.254E3
Df 276
Sig. .000
The KMO statistic varies between 0 and 1. A value of 0 indicates that the sum of partial correlations
is large relative to the sum of correlations, indicating diffusion in the pattern of correlations. A value
close to 1 indicates that the patterns of correlations are relatively compact and so factor analysis
should yield distinct and reliable factors. A value greater than .5 is recommended. Furthermore,
values between .5 and .7 are mediocre; values between .7 and .8 are good and above .9 are
considered superb. Since the test value is .860 which is very close to 1, we are confident that Factor
analysis will give good results.
Bartlett’s measure tests the null hypothesis that the original correlation matrix is an identity
matrix. For factor analysis to work there should be some relation between variables because if the
matrix were an identity matrix all correlation coefficients would be zero. If the test is significant, it
9
can be inferred that there are some relationships between the variables. For this, Bartlett’s test is
highly significant (p<.001) and therefore factor analysis is appropriate.
Eigen Value table

Total Variance Explained
Extraction Sums of Squared

Initial Eigenvalues Loadings Rotation Sums of Squared Loadings
Com
pone % of Cumulat % of % of
nt Total Variance ive % Total Variance Cumulative % Total Variance Cumulative %
1 3.117 23.976 23.976 3.117 23.976 23.976 2.718 20.904 20.904
2 2.294 17.649 41.625 2.294 17.649 41.625 2.432 18.709 39.613
3 1.450 11.155 52.781 1.450 11.155 52.781 1.528 11.753 51.365
4 1.208 9.290 62.070 1.208 9.290 62.070 1.392 10.705 62.070
5 .972 7.473 69.544
6 .935 7.189 76.733
7 .785 6.039 82.772
8 .690 5.310 88.082
9 .608 4.677 92.759
10 .429 3.297 96.056
11 .291 2.235 98.291
12 .222 1.709 100.000
13 -
-2.998E-
3.898E 100.000
16
-17
Extraction Method: Principal

Component Analysis.
The above output lists the Eigen values associated with each linear factor before extraction, after
extraction and after rotation. Before extraction there were 13 linear components, the Eigen values
associated with each factor represent the variables explained by that particular linear component.
The first few factors explain relatively large variance whereas subsequent factors explain small
amount of variance. All the factors with Eigen values greater than 1 are extracted and we are left
with 4 factors. The Eigen values associated with them is again displayed in the columns labeled
Extraction Sums of Squared loading. The values are same as the values before extraction just that
the values for the discarded factors are ignored. In the final part of the table, the Eigen values of the
factors after rotation are displayed. Rotation has the effect of optimizing the factor structure and
one consequence for these data is that the relative importance of the four factors is equalized.
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Scree Plot:
Communalities and Component matrix
The above table shows the table of communality before and after extraction. Principal component
analysis works on the assumption that all variance is common; therefore before extraction the
communalities are all one. After extraction some of the factors are discarded and so some
11
information is lost. The amount of variance in each variable that can be explained by the retained
factors is represented by the communalities after extraction.
The component matrix contains the loadings of each variable onto each factor. The loadings less
than .4 have been suppressed in the matrix and so there are blank spaces for many of the loadings.
This table is not relevant from the point of view of interpretation.
Rotated Component Matrix

The rotated component matrix is a matrix of the factor loadings for each variable onto each factor.
This matrix contains the same information as the component matrix above except that it is
calculated after rotation. There are several things to consider about the format of this matrix. First,
factor loadings less than 0.4 have not been displayed because we asked for these loadings to be
suppressed.
Conclusion
From the Factor analysis we could come with four main factors, as can be seen from the table
above. We have named these factors on the basis of commonalities among the sub factors. In the
factor 1 we can see that all other sub factors are closer to product likeability except the attractive
packaging which is coming as an outlier in this group. All the four factors as identified are shown in
the table below:
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Granularity
Flavored milk preference
Likeability Chocolate flavor
Color of HFD
Promotions
Bottled packaging
Free Offer
and packaging SKU
Brand
Top of the mind recall
Attitude towards healthy lifestyle
perception Preferred Brand
Purchase Visibility in shop

Price
Feasibility
Cluster Analysis
Cluster Analysis is a technique used to assign a set of observations into subset as per similarity in
their behaviour. In the given consumer behaviour research each of the respondents had given
certain set of preference parameters while making their purchase decision. We use the cluster
analysis technique to group the customers into subsets who use similar type of factors into
consideration before buying the health food drink.
Methodology
The 13 factors rated by the consumers had been clubbed as 4 dominant factors using factor analysis
as presented earlier. The factor scores of each respondent were then used to do cluster analysis on
available data.
Hierarchical Cluster Analysis

We started with the hierarchical cluster analysis on the given data and used the “Between-Groups
Linkage” method to obtain the dendogram of sub-groups amongst the given set of respondents. The
measure used was “Squared Euclidean Distance” for interval. The 13 factors of the products were
taken as variables to explain the factor scores i.e. the observed behaviour of the respondents.
The screen shot below shows the procedure adopted for the same:
13
After this we obtained the dendogram diagram for the given set of data which is reproduced from
the SPSS output below:
Dendograms start with individual cases and group the

most similar ones as one group. This process is
continued till an optimum centroid distance is obtained
and clear clusters emerge.
The image on the left is a screen shot of the dendogram

that we obtained as an output of the hierarchical
cluster analysis. The detailed dendogram is provided in
the Appendix 2 for reference.
In this dendogram it is evident that at the 4th level of

differentiation, there are 4 dominant clusters which
could be evolved from the given data set. We use this
information to carry out the k-means cluster analysis.
K-Means Cluster Analysis
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The hierarchical cluster analysis was followed by the K- means cluster analysis to get quick cluster
results. Care was taken to group each case by membership for further data mining. To start with we
entered Number of clusters as 6 to obtain the set of clusters. The same is being represented below:
However with no of clusters as 6 we obtained clusters where there was just 1 case in a cluster.
Hence we iterated the process with number of clusters equal to 5. This also did not yield the correct
results. Finally with number of clusters given as 4 we obtained a fair segmentation of the available
data. The same is shown below in the table which is the output from SPSS file:
Number of Cases in each Cluster
Cluster 1 26.000
2 18.000
3 12.000
4 12.000
Valid 68.000
Missing 66.000
The final cluster centers table that was obtained is as below. This table was further used for the
interpretation of clusters and identifying their membership traits.
Final Cluster Centers
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Clusters
Cluster
1 1 2 2 33 4 4
Health attitude
Health_attitude 8.38* 4.19 7.34 3.67 8.84
4.42 4.589.16
Color of HFD
Colour_of_HFD 7.54 3.77 6.56 3.28 6.34
3.17 2.004
ChocolateChocolate_flavour
flavor 7.76 3.88 6 3.00 8.66
4.33 2.925.84
Preference for flavored 8.38
Preference_for_flavoured_mi 6.22 8.66 5.84
milk 4.19 3.11 4.33 2.92
lk
Price 4.92 6.88 5 3
Price 2.46 3.44 2.50 1.50
Visibility in shop 6.7 5.78 4.66 3.16
Visibility_in_shop 3.35 2.89 2.33 1.58
Bottled 8.16 5.34 5.34 7.5
Bottled 4.08 2.67 2.67 3.75
SKU Size 8.54 7.22 3.66 4.84
SKU_Size 4.27 3.61 1.83 2.42
Attractive packaging 7.08 6.22 8.66 3.34
Attractive_packaging 3.54 3.11 4.33 1.67
Preferred brand 8.08 7.78 8 7.5
Preferred_brand 4.04 3.89 4.00 3.75
Free offer 8.54 7.22 3.66 4.84
Free_offer
Top of mind recall 7.16 4.27 6.22 3.61 1.83
5.16 2.426.5
Top_of_mind_recall
Granularity 8.16 3.58 5.88 3.11 2.58
6.5 3.253.16
Granularity 4.08 2.94 3.25 1.58
Interpretation
The above table is obtained on a scale of 5. We multiplied all the scores by 2, to take the scores on a
scale of 10, in order to get a better understanding of the scores, and a better comparison across the
various clusters and various attributes.
*in the above table, the RED coloured scores denote the important attributes which influence the
purchase behaviour of the customer in each cluster.
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The above table is then subjected for interpretation, to find out the most pertinent attributes in
each of the clusters. These attributes will define the cluster’s purchase behaviour for the HFDs.
In the interpretation, we consider the factor-loading scores of each attribute, and compare that
score with the corresponding scores in the other clusters, and also with the scores of the other
attributes in the same cluster. This comparison is required to understand the weight of the
attribute in the overall purchase decision of the HFDs by a particular cluster.
Considering some example based on the above table:
 The scores for the ‘Health Attitude’ are high across all 4 clusters, and also the difference of
the scores is not much.
 This gives us the interpretation that Health Attitude is considered to be an

important attribute in the purchase decision of a consumer for a HFD
 In the ‘Preference for flavoured milk’, the scores of Cluster 1 and 3 are very near to each
other, and are much higher than the scores of cluster 2 and 4. Also the scores are very high
among all the other attributes of cluster 1 and 3.
 This shows that cluster 1 and 3 considers Preference for flavoured milk as an
important attribute their purchase decision for HFDs.
 In case of the ‘Top of mind recall’, we observe that the scores of the attributes are lesser as
compared to all the other major attributes of each cluster
 This shows that Top of mind recall is not considered to be an important attribute in
the purchase decision of HFDs by any of the clusters.
Conclusion
Continuing on the same lines, and comparing the scores of the attributes across all the clusters and
all the attributes, we can see that the following attributes are important in the purchase decision of
the HFDs by each cluster:
 Cluster – 1
 Health attitude
 Colour of HFD
 Chocolate flavour
 Preference for flavoured milk
 Bottled
 SKU Size
 Preferred brand
 Free offer
17
 Granularity
 Cluster – 2
 Health attitude
 Price
 SKU Size
 Preferred brand
 Free offer
 Cluster – 3
 Health attitude
 Chocolate flavour
 Preference for flavoured milk
 Attractive packaging
 Preferred brand
 Cluster – 4
 Health attitude
 Preferred brand
Based on the above found attributes, we can name the 4 clusters as:
 Cluster–1  Value Seeker
These customer look out for complete value from a brand of HFD which they purchase, and
consider almost all of the attributes which we identified in our studies, for their purchase
decision
 Cluster–2  Price Conscious
These customers considers price to be a very important attribute in their purchase

behaviour, and want to have the best buy for the HFD, and also give preference for any free
offer available with any brand of HFD
 Cluster–3  Palatability Seeker
This cluster of customers considers the taste of the HFD and the packaging of the HFD to be
an important factor in their purchase decision.
 Cluster–4  Nutrition Seeker
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These customers only buy HFD because of the nutrition which the HFDs provide in the
growth of their child. They have their preferred brand of HFD and are aware of what all
nutrition is being provided by the HFDs.
T-Test
The sources of information influencing the purchase decision are:
 TV Advertisement
 Children
 Referral group
 Internet
 Print Advertisement
The respondents were asked to rank the factors in order of importance. A t-test was conducted on
the results of the survey in order to compare the means of the ranks for the factors. This was done
on all the 4 clusters identified above in the cluster analysis.
Analysis
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Reference 2.5385
26 1.02882 .20177
groups
TV 2.0000
26 1.20000 .23534
Advertisement
Internet 26 3.9231 1.35420 .26558
Print
26 3.5385 1.24035 .24325
Advertisement
Child 26 2.9231 1.38342 .27131
Exhibit 1: Cluster 1
19
Reference
18 3.0556 1.34917 .31800
groups
TV 2.4444
18 1.50381 .35445
Advertisement
Internet 18 3.4444 1.61690 .38111
Print
18 3.3333 1.23669 .29149
Advertisement
Child 18 2.7778 1.30859 .30844
Reference 2.5833
12 1.16450 .33616
groups
TV 1.9167
12 1.16450 .33616
Advertisement
Internet 12 3.7500 1.42223 .41056
Print
12 3.9167 1.08362 .31282
Advertisement
Child 12 2.8333 1.40346 .40514
20
Reference 2.6667
12 1.72328 .49747
groups
TV 1.8333
12 .83485 .24100
Advertisement
Internet 12 3.0833 1.56428 .45157
Print
12 3.2500 .86603 .25000
Advertisement
Child 12 4.1667 .93744 .27061
We can say from the results that there is a significant difference between the ranks of the factors
with a 95% confidence.
Conclusion
The two most important factors that emerge out of the tests are:
 Cluster 1: Reference groups and TV Advertisement
 Cluster 2: TV Advertisement and Child
This finding is an important implication for product placement as the marketer can target the
relevant source information for communicating with the customers in the respective clusters.
POSITIONING STRATEGIES
Current Positioning: Bournvita

Cadbury’s Bournvita is the market leader in the Brown HFD market with a share
of 18%. It has changed its positioning many a times from the time it was
launched way back in 1948. Its journey in terms of positioning is shown below:
21
Combination of Health & Taste
1948
Tagline: Goodness that grows with you

1970s “Helps in good upbringing”
Tagline: Brought up right, Bournvita Bright

1980s Move from Upbringing to Intelligence
“Tan ki Shakthi, Man ki Shakthi

1990s Focus on Mind and Body
RDA Formula: 2 cups of Bournvita, “No Bournvita, No milk”

Focus on Health & Taste 1998
“Do you have the Bournvita Confidence?”

2000
Post Focus on Confidence
Bournvita ++
2009 Science, Nature and Bournvita
Appendix 3 shows the print advertisements of Bournvita in current scenario.
Current Positioning: Horlicks

Glaxo Smithkline’s Horlicks is the market leader in the HFD category
in India with a market share of over 50%. It’s the oldest brand of
HFD in India having a history of nearly 150 years. It has mostly
focused itself on the nutrition platform and being “the great family
nourisher”. Subsequently, it changed its packaging making it more
attractive and calling itself “the pleasurable family nourisher”. It
has now focused on children and started its famous “Apang Opang
Japang” campaign which has become quite a hit amongst the children. It further strengthened its
position in the minds of the consumer by coming up with campaigns like “Now proven- Taller,
Stronger, Sharper”.
Appendix 4 shows the print advertisements of Horlicks in current scenario.
Perceptual Map
A perceptual map is a visual representation of how target consumers view the competing
alternatives in a Euclidean space which represents the market.
22
In order to develop the perceptual map, the questionnaire survey captured the brand of health food
drink being usually used by the consumers. Question asked in the questionnaire: “Which health
food drink do you usually use in the family?” Thus against every respondent who had given his
choices for the various purchase factors we have his mostly used brand. This data along with the
ratings of the underlying purchase factors were fed as input to SPSS and Factor Analysis through
Principal Component Extraction was carried out. Based on the factor scores for the identified
factors viz, Likeability, Packaging & Promotions, Purchase Feasibility and Brand Perception,
perception for the brands was formulated by assigning relative weights based on the average
scores.
The average factor scores are calculated for the respondents of same brand. The same is
represented below in the tables:
Used Brand Likeability Packaging & Purchase Brand Perception

Promotion Feasibility
Boost 0.442181 0.777112 0.056683 -0.36352
Bournvita 0.636334 -0.10239 0.149687 0.149345
Complan -0.4891 -0.771 -0.24864 -0.12282
Horlicks -0.75397 0.232525 -0.11274 -0.05191
The ideal self that should be represented for the market was calculated by taking an overall average
of the factor scores as given by all the respondents. This data was further filtered to keep average
factor scores for ideal market self and the two leading brands – Bournvita and Horlicks. The same is
tabulated below:
Brand Likeability Packaging & Purchase Brand Perception

Promotion Feasibility
Total (Ideal) -0.04114 0.034062 -0.03875 -0.09723
Bournvita 0.636334 -0.10239 0.149687 0.149345
Horlicks -0.75397 0.232525 -0.11274 -0.05191
The average scores were then plotted on the graph to arrive at the perceptual map:
23
Likeability
1
Total (Ideal)
Brand Perception -1 Packaging & Promotion Bournvita
Horlicks
Purchase Feasibility
Interpretation
Market Ideal
The market ideal was calculated from the average response of all respondents. The perception map
for the market ideal comes across as symmetric on all four factors with slight positive skewness for
packaging and promotion.
Bournvita
Bournvita clearly comes across as the winner on all fronts as per the market ideal parameters. It is
evident that the consumers using Bournvita consider likeability, brand perception and purchase
feasibility as the drivers behind their purchase.
Bournvita lacks the market ideal on the packaging and the promotion front but scores very high on
the likeability factors such as chocolate flavour, granularity, and preference for flavoured milk.
Similarly for consumers who indicated brand image as the main purchase driver found Bournvita to
be high on factors such as nutritional value providing overall better health quality and higher brand
loyalty. But Bournvita needs to pick up with the market ideal on promotional offers such as free and
attractive gifts, colourful packaging etc.
Horlicks
Horlicks is perceived to be at par with the market ideal in all respects except for the likeability
factors. Consumers using Horlicks did not consider chocolate taste, powder granularity or
preference for flavoured milk as their purchase decision variables. However Horlicks exceeds
market ideal on the packaging and promotion fronts i.e. launching attractive schemes, convenient
SKUs and colourful jars. However Horlicks needs to improve its perceived image on the palatability
front.
Recommended Focus Areas
24
Bournvita
 Focus on Product packaging and Promotion
 Launch smaller sized SKUs
 Provide freebies, gifts etc. with your product
Horlicks
 Possible changes in the colour of the product
 Launch new flavours so as to increase customer likeability
CONCLUSION
It is highly imperative that marketers understand the purchase behaviour of the consumers so as to
focus on the prominent factors that consumers keep in mind while purchasing their product. The
project has clearly identified the answers of the questions it intended to find. To summarize the
same:
 What are the prominent factors that drive a customer to purchase a HFD?
 Likeability
 Packaging & Promotion
 Purchase feasibility
 Brand perception
 What are the various customer segments that buy a HFD?
 Value Seeker
 Price Conscious
 Palatability seeker
 Nutrition seeker
 What are the sources of information for these customer segments?
 Reference groups of the mother
 T.V. Advertisements
 Children
25
APPENDIX 1
a) Name _____________________
b) Age ________________
c) Annual Family Income _____________
d) Please rank (1: Most important, 5: Least Important) the information source you use while
purchasing a HFD:
Reference Group ____________________
TV Ads ____________________
Internet ____________________
Print Ad ____________________
26
Child ____________________
e) Which health food drink do you use in your family? ________________________
Please Tick on the option that best reflects your choice:
1. My general attitude towards health affects my buying behaviour of HFD

Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
2. I tend to buy Brown HFD over White HFD
Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
3. My child prefers drinking chocolate flavoured HFD over non-chocolate flavoured HFD
Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
4. My child prefers flavoured milk over plain milk
Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
5. I consider price as a consideration while buying a HFD
Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
6. I prefer buying my brand of HFD even if it is not so visibly present in the shelf of the shop
Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
7. I prefer buying a bottled HFD over a non-bottled pack HFD
Strongly Agree
27
Agree
Neutral
Disagree
Strongly disagree
8. I buy smaller packs of HFD over the larger packs HFD
Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
9. My child influences me to buy an attractive looking HFD (colour, shape)
Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
10. I always buy my preferred brand of HFD
Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
11. I usually buy a HFD which come with freebies
Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
12. I buy a HFD whose advertisement I remember at the time of purchase
Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
13. I prefer powder over granular powdered HFD
Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
28
APPENDIX 2 STUDY OF CONSUMER BEHAVIOUR TOWARDS THE PURCHASE OF HEALTH FOOD DRINKS | 8/24/2009
* * * * * * * * * * * * * * * * * * * H I E R A R C H I C A L C L U S T E R A N A L
Y S I S * * * * * * * * * * * * * * * * * * *
Dendrogram using Average Linkage (Between Groups)
Rescaled Distance Cluster Combine
C A S E 0 5 10 15 20 25
Label Num +---------+---------+---------+---------+---------+
55 ─┬───────────────────┐
65 ─┘ ├─────┐
43 ─────────────────────┘ │
32 ─────────┬───┐ ├─────────┐
39 ─────────┘ ├─┐ │ │
46 ─────────────┘ ├─────┐ │ │
42 ───────────────┘ ├─────┘ │
29
37 ─────────────────────┘ │
56 ─────┬───────────┐ │
66 ─────┘ ├───────┐ │
54 ─────────────────┘ │ │
22 ───────┬─────────┐ │ │
36 ───────┘ │ │ │
41 ─────────┬─────┐ ├─────┐ ├───┐ │
45 ─────────┘ │ │ │ │ │ │
50 ─┬───┐ ├─┘ │ │ │ │
60 ─┘ ├─────┐ │ │ │ │ │
34 ─────┘ ├─┐ │ ├─┘ │ ├───┐
33 ───────┬───┘ ├─┘ │ │ │ │
44 ───────┘ │ │ │ │ │
47 ─────────────┘ │ │ │ │
38 ───────┬───────────┐ │ ├─┐ │ │
48 ───────┘ ├───┘ │ │ │ │
21 ───────────────────┘ │ │ │ │
13 ─────────┬─┐ │ │ │ │
15 ─────────┘ ├─────┐ │ │ │ │
9 ───────────┘ ├───┐ │ │ │ │
12 ───────────────┬─┘ ├───┐ │ │ │ │
40 ───────────────┘ │ │ │ │ │ │
31 ─────────────────────┘ │ │ │ │ │
3 ─────────────┬─────────┐ ├───┘ │ │ │
14 ─────────────┘ │ │ ├─────┘ ├───┐
10 ───────┬───────┐ │ │ │ │ │
24 ───────┘ ├─┐ ├─┘ │ │ │
7 ───────────────┘ ├─────┤ │ │ │
1 ─────────────────┘ │ │ │ │
27 ─────┬─────┐ │ │ │ │
29 ─────┘ ├─────┐ │ │ │ │
8 ───────┬───┤ │ │ │ │ │
11 ───────┘ │ ├─────┘ │ │ │
4 ───────────┘ │ │ │ │
26 ─────────────────┘ │ │ │
16 ───────────────────────────────┘ │ ├───┐
17 ─────────────────────────┬─────┐ │ │ │
18 ─────────────────────────┘ │ │ │ │
51 ─────┬─────────┐ ├─────────┘ │ │
61 ─────┘ ├─────────┐ │ │ │
2 ───────────┬───┘ │ │ │ │
5 ───────────┘ ├─────┘ │ │
23 ─────────────┬─────┐ │ │ │
30 ─────────────┘ ├─────┘ │ │
6 ─────────┬───┐ │ │ │
35 ─────────┘ ├─────┘ │ │
28 ─────────────┘ │ │
25 ───────────────────────────────────┬─────────┘ │
64 ───────────────────────────────────┘ │
53 ─┬─────────────┐ │
63 ─┘ ├───────┐ │
19 ───────────────┘ ├───────────────┐ │
52 ─────┬───────────────┐ │ │ │
62 ─────┘ ├─┘ │ │
58 ─┬─────────────┐ │ │ │
68 ─┘ ├─────┘ ├─────────┘
57 ───────────┬───┘ │
67 ───────────┘ │
49 ─────┬─────────────────────┐ │
59 ─────┘ ├───────────┘
20 ───────────────────────────┘
30
APPENDIX 3
31
32
APPENDIX 4

Study of Consumer Behaviour Towards The Purchase of Health Food Drinks

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Study of Consumer Behaviour Towards The Purchase of Health Food Drinks

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STUDY OF CONSUMER BEHAVIOUR TOWARDS

THE PURCHASE OF HEALTH FOOD DRINKS

Neha Jain (B08032) | Pranav Chaudhary (B08042) | Snehil Gupta

 What are the various customer segments that buy a HFD?

 What are the sources of information for these customer segments?

Milk Consumption Behaviour

Both flavouring and packaging were found to be important factors in

Conclusion from Literature Survey

 Colour of the health food drink

 Age of the consumer

 Income of the family

 Key Influencers in the purchase decision

 Attitude towards personal health

 AgriCo Colony, Jamshedpur

 Shelf-presence: Presence in the market or shelf-presence influences the purchase of the

Environmental Influences in the purchase of HFD

 Role of influencer in family

 Of mother (decision maker)

Decision making process adopted in purchase of HFD

 I prefer buying a bottled HFD over a non-bottled pack HFD

 Personal Interviews: With the mothers who are the

 Web based survey: Web link sent to our relatives and

 Telephone based survey: Telephonic interviews were

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .860

Bartlett's Test of Sphericity Approx. Chi-Square 1.254E3

Eigen Value table

Extraction Sums of Squared

1 3.117 23.976 23.976 3.117 23.976 23.976 2.718 20.904 20.904

2 2.294 17.649 41.625 2.294 17.649 41.625 2.432 18.709 39.613

3 1.450 11.155 52.781 1.450 11.155 52.781 1.528 11.753 51.365

4 1.208 9.290 62.070 1.208 9.290 62.070 1.392 10.705 62.070

5 .972 7.473 69.544

6 .935 7.189 76.733

7 .785 6.039 82.772

8 .690 5.310 88.082

9 .608 4.677 92.759

10 .429 3.297 96.056

11 .291 2.235 98.291

12 .222 1.709 100.000

Extraction Method: Principal

Rotated Component Matrix

Purchase Visibility in shop

Hierarchical Cluster Analysis

Dendograms start with individual cases and group the

The image on the left is a screen shot of the dendogram

In this dendogram it is evident that at the 4th level of

K-Means Cluster Analysis

Number of Cases in each Cluster

Final Cluster Centers

Granularity 4.08 2.94 3.25 1.58

Considering some example based on the above table:

 This gives us the interpretation that Health Attitude is considered to be an

 Preference for flavoured milk

 Preference for flavoured milk

 Cluster–1  Value Seeker

 Cluster–2  Price Conscious

These customers considers price to be a very important attribute in their purchase

 Cluster–3  Palatability Seeker

 Cluster–4  Nutrition Seeker

N Mean Std. Deviation Std. Error Mean

Internet 26 3.9231 1.35420 .26558

Child 26 2.9231 1.38342 .27131

N Mean Std. Deviation Std. Error Mean