Impact of Commercials On

The Purchase of Health Drinks

Submitted in Pa rtia l Fulfillment o f the Requirement o f Degree o f Master o f B usiness A dministratio n

Submitted to : Dr. dilip singh

Submitted by

Jyoti Hooda [MBA 5.8] Roll no - 7053

Institute of Management Studies and Research

M.D. UNIVERSITY, ROHTAK, HARYANA [INDIA] MAY, 2012

TABLE OF CONTENTS

SERIAL NO.

TITLE

1) 1.1) 1.2) 1.3)

INTRODUCTION Major players in health drinks segment Study of GROWTH OF HEALTH DRINK MARKET Advertisement role in todays time

2)

OBJECTIVES OF THE STUDY RESEARCH DESIGN LITERATURE REVIEW RESEARCH METHODOLOGY

Sampling Technique used Selection of Sample Size Sources of Data collection Statistical Tools Used o DATA ANALYSIS AND FINDINGS o LIMITATION OF THE STUDY o CONCLUSION o ANNEXURE Questionnaire

4 5 7
9

3) 4) 5)
2.1) 2.2) 2.3)
2.4)

12 50 51 53

 Introduction
Healthy Drinks
As important as eating the right food is to staying healthy, so is drinking the right things. Our body needs fluids to function properly and even stay alive. We can live without food for up to a month but, without fluids, survival is drastically reduced to just a few days. Juice 100% fruit juice has the added benefit of being full of the vitamins that are naturally found in fruit, such as vitamin C and folate. However, fruit juices can be high in sugar so it might be an idea to dilute the juice with water. Start with 25 percent water and 75 percent juice, then slowly increase the percentage of water to 50 percent. Or try mixing juice with seltzer water for a fizzy treat. Vegetable juice a great low-calorie choice that offers antioxidants, such as vitamins A and C. it also contains other nutrients such as lycopene, which has been linked to a reduced risk of prostate cancer. The Health food drinks category consists of white drinks and brown drinks. South and East India are large markets for these drinks, accounting for the largest proportion of all India sales. The total market is placed at about 90,000 ton and is estimated to be growing at about 4%. These Malt beverages, though, are still an urban phenomenon. White drinks account for almost two-thirds of the market. GSK Consumer Healthcare products (Horlicks) is the market leader in the white malt beverages category with a 60.7% overall market share. Heinzs Complan comes in second (in this segment, third overall) with a market share of 12-13%. Market leader GSK also owns other brands such as Boost, Maltova and Viva. Currently, brown drinks (which are cocoa-based) continue to grow at the expense of white drinks like Horlicks and Complan. The share of brown drinks has
1

increased from about 32% to 35% over the last five years. Cadburys Bournvita is the leader in the brown drink segment with a market share of around 15%. Other significant players are Nestls Milo and GCMMFs Nutramul. MARKET

The organized fruit beverage market is estimated at Rs.500 crores market. (Nectars, drinks and juices combined). The market has grown at a 20% to 25% rate. Of this, more expensive juices segment has grown at rate of 40%this year. It accounted for only 15% of the fruit beverage 3 years back. In home consumption of juices has gone up from 30%, three years back to 80%today. Mango based drinks account for two thirds of fruit drinks industry.

Hence, Advertising is generally thought to have a current-period influence on sales, called the current effect, and a long-term influence beyond the current period, called the long-term or carryover effect. Advertising has become so integral part of our life & society that we cannot imagine any event, newspaper, magazine, TV serial, Cinema etc. without advertising. Advertising is a vital marketing tool as well as powerful communication medium. The basic objective of any advertisement is to stimulate sales, direct or indirect by trying to make tall claims about product performance. The marketing strategies are communicated at a grassroots level, as opposed to traditional channels (such as television, radio, magazine, and outdoor advertising), because companies are looking for one-on-one relationships gained through events, extreme sports sponsorships, Internet interactions, text messaging, and communication among users on Internet sites such as MySpace

and Facebook . For example, the Monster brands ambassadors give away free samples at sporting events, concerts, and other teen venues. The psychological effects of advertising. Advertising is a form of communication which is intended to sway people in a particular direction, to influence the audience to purchase a product or service. There is a tacit understanding of this fact on the part of the audience, but this does not mean that the people in the audience--whether it be for television, magazines, books, or newspapers--are able to control fully their own reactions. Advertising operates on many different levels, and there are subliminal messages in advertising that influence the thinking of the public. Many of these messages are certainly inadvertent, deriving from the prejudices and attitudes that are prevalent in a society at a given time. However, many others are intentional, designed to attract the viewer and to guide his or her thinking into certain channels for the furtherance of the major aim of advertising--the sale of the product. India, the worlds largest malt-based drinks market, accounts for 22% of the worlds 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.

 Objectives
The objective of this research is Primary objective To determine the impact of health drinks commercials on the purchase of health drinks Secondary objectives To analyze the consumer behavior towards the advertisements of health drinks. To identify the factors that influences a person in making a decision to buy a certain brand of health drink. To know the age group of mass consumers of health drinks. To know the perception of people towards the leading brands of Health Food Drink To determine the most preferred quantity in health drink category.

 Research Design
The area of our research is to study how advertising has an impact on impressionable minds of the consumers in making the choices in Health Drinks & how its impact on the sales of health drinks. Advertising comes in different forms such as television, print, radio & internet. So using such various communicating devices how the products are advertised to the so called new segment in the market. Our research project usually deals with various studies about the nature of the consumers, their likes & dislikes, friends role in the decision making & the influence of advertising on the buying habits. The data collection was done using convenience sampling in the form of questionnaire & personal interview. We had used various secondary sources for gathering data related to the research report like internet and published reports etc. Analysis of data has been done using quantitative methods such as Arithmetic mean. Those analyzed facts & findings are presented in different forms for ease of understanding by use of pie charts, chronological order. On the basis of fundamental objectives of the research we can classify research design into two general type:

Exploratory Research:
Convenience sampling technique: Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient.

Conclusive research is designed to assist the decision maker in determining evaluating and selecting the best course of action to take in a given situation.

Conclusive research can be further divided into two types: Descriptive Experimental The research design used in this project is a DESCRIPTIVE DESIGN. Descriptive study as the name implies is designed to describe something-for example the characteristics of users of a given product, the degree to which the product use varies with income, age, etc.

 Literature review
Indian health drinks market is still in its infancy due to the lack of awareness among the population. In value terms, the health food drink market is around Rs 1, 400 crore and in volume terms around 65,000 tonnes per annum. GlaxoSmithkline (GSK) with four brands -horlicks, Boost, Viva and Maltova - is the leader in Indian health drink market. Complan, GluconD from Heinz India and Cadbury India's Bournvita are also popular among the Indian health drink brands. According to retail audit unit ORG Marg, GSK with four brands in the category Horlicks, Boost, Viva and Maltova - has a 70 per cent volume market share and Complan's share is 13 per cent.No doubt, Horlicks is the leading health drink brands in India since 1930, immediately after its launch in the country. 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. Boost is health food drink (HFD), which is positioned on the energy platform in India. Developed by the Indian R&D team in 1974, and launched in 1975-76 in Kerala, Boost has been one of the fastest growing brands in the Indian GSK Consumer portfolio. Realizing that the energy segment had a huge potential, GSK India launched the brand as the 'Vitaminised Energy Fuel' with a unique chocolate taste. The brand was launched nationally in the early 80s and has always been targeted at 8-14 year old boys. This is the section of population most enthusiastic about sports, and also with high-energy needs, in India. According to GSK sources, Viva is based on the belief that a good start to the day ensures that rest of it goes well too. New Viva is Vita health, combination of nine essential vitamins (vitamin A, C, D, B1, B2, B6, B12, Niacin and Folic acid), Iron, Phosphorus and Calcium. Viva contains a natural goodness of milk, wheat and malted barley. Maltova, a chocolate health food drink, was acquired from Jagjit Industries in Feb 2000. According to GSK official
7

sources, to kids Maltova is the fun health drink, which is extremly tasty and makes nourishment truly enjoyable and exciting. It was relaunched in June 2002 with an enriched formulation and improved packaging. The relaunched 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. American foods major H J Heinz's Indian arm Heinz India has a strong market presence with brands like Complain and Glucon-D. Complan contributes 40 per cent to Heinz's sales. Heinz's most profitable products are Complan and GluconD. Even Glucon D has shed its health tag and repositioned itself as a fun drink. In 2001, Heinz launched a slew of new products - coffee flavoured Complan. Complan is ideal for convalescents and the elderly - complete nutrition when you're off your food, pregnant and nursing mothers provides vitamins and minerals necessary for good health, busy people - a satisfying lunchtime snack at home or at work, athletes - who require fluid, carbohydrate and high quality protein without the bulk of solid food. In early 1990s Cadbury reentered the health drink market with Bournvita, the product of essential vitamins and minerals with memorable campaigns based on the 'Tan ki Shakti, Man ki Shakti'. The next big breakthrough happened in 1999 when the brand was re-launched with a new RDA Balanced Formula. The brand was re-launched with a completely new identity in 2001. Bournvita has a unique taste that combines the goodness of malt and chocolate. It gives the child physical and mental alertness resulting in a healthy body and an active mind. In 2001 Bournvita, complete with new packaging and design was re-launched. A loyalty programme, in the form of a Bournvita Nutrition Centre, dedicated to counseling mothers on her child's daily nutritional needs was opened. Cadbury Bournvita has been advertising since the 1970s. In the early years the positioning centred on 'Good upbringing' with Bournvita being an essential building block for children. In the 1980-82 years it was 'Goodness that grows with you'. By 1987, it had become the more aggressive 'Brought up right, Bournvita bright'. In the last decade of the 20th Century, competition between children was becoming intense and Bournvita
8

was there with its 'Extra energy to stay ahead'. In the 1992-95 period 'Shakti har din ke champion ki' (Energy for the everyday champion) was its payoff line. In 2000, 'Bournvita poshan, sahi poshan' (Bournvita nutrition, right nutrition) encouraged consumption. In the following year 'Confidence kuch kar dikhane ka' (Confidence to achieve) became the reason to buy. The current Cadbury Bournvita positioning suggests that it contains specific ingredients that augment stamina and concentration in children. In spite of the fact that our health drink market is flooded with newer fun drinks for kids, Cadbury Bournvita has made a niche for itself as a drink for children who are mentally and physically active. Every bright and sportive kid down the block MUST be drinking Cadbury Bournvita. In fact nobody would have forgotten the jingle screaming BOURN VI TA!! The ads had very cleverly promoted this drink for intelligent school kids through organising the famous Bournvita Quiz Contest between different schools. This was a fantastic gimmic on television, which had caught on so well, that even adults would spare some time to watch it without fail. The Quiz Master Derek OBrian was loved by all, the young and the old alike. This Advertising concept was so successful, that they even came out with the Bournvita General Knowledge Book (a mini encyclopedia) This famous Cadburys drink is something you have to savour to know its taste. Its taste is so unlike any other drink. For todays kids who detest milk in its pure state unless flavored, this is an ideal drink. It has its own unique flavor, and the taste is rich and full-bodied.Its so easy to prepare, just instant mix it into your milk. Even a child can manage this for himself when he is in a hurry to run off to play ! I have known kids to just scoop up a spoonful of Bournvita fine granules into their mouth and crunch away happily...goes to prove its taste bud friendly value for kids. And kids are very discerning little people. Then again, its Cadburys, a quality product promising your kids a life full of vitality and vigour! Keep them happy and let them drink to their health and happiness

10

 Methodology
SAMPLING TECHNIQUE USED:
This research has used convenience sampling technique. Convenience sampling technique: Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient. SELECTION OF SAMPLE SIZE: For the study, a sample size of 50 has been taken into consideration. SOURCES OF DATA COLLECTION: Research will be based on two sources: 1. Primary data 2. Secondary data 1) PRIMARY DATA: Questionnaire: Primary data was collected by preparing questionnaire and the people were randomly being requested to fill them. 2) SECONDARY DATA:

11

Secondary data will consist of different literatures like books which are published, articles, internet and websites. In order to reach relevant conclusion, research work needed to be designed in a proper way.

STATISTICAL TOOLS USED

The main statistical tools used for the collection and analyses of data in this project are: Questionnaire Pie Charts Bar Diagrams

Analysis techniques
1. Analysis techniques used have been on SPSS and the test was performed to ascertain the factors influencing consumer decision while buying health drink. 2. Factor analysis test have been conducted to discern out of the various factors which influence the buying habbit of the consumers.And correlation test to find out the various reasons for purchasing any particular brand of health drink 3. One way annova test on various variables. 4. T test between various variables and age groups.

12

 Data Analysis
1) Do you think health drinks are important for the children?
Valid Frequency Percent Valid Percent Cumulative Percent

yes

41

82.0

82.0

82.0

no

18.0

18.0

100.0

Total

50

100.0

100.0

18%

yes No
82%

ANALYSIS: From the survey it was found that amongst 50 respondents. a) 82% of the respondents say health drinks are important for children. b) 18% of the respondents say health drinks are not important for children. 13

2) Do you use liquid or powdered health drink?

Valid

Frequency

Percent

Valid Percent

Cumulative Percent

liquid

21

42.0

42.0

42.0

powdered

14

28.0

28.0

70.0

both

15

30.0

30.0

100.0

Total

50

100.0

100.0

45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

42% 30%

28%

LIQUID

POWDERED

BOTH

ANALYSIS: From the survey it was found that amongst 50 respondents. a) 42%of the respondents consume liquid health Drinks. b) 28% of the respondents consume powdered health Drinks. c) 30% of the respondents consume both liquid and powdered health Drinks.

14

3) Which brand do you prefer?

Valid

Frequency

Percent

Valid Percent

Cumulative Percent

horlicks

18.0

18.0

18.0

amul cool

12.0

12.0

30.0

bournvita

19

38.0

38.0

68.0

tropicana fruit juice

16.0

16.0

84.0

maaza

16.0

16.0

100.0

Total

50

100.0

100.0

0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0

38%

18% 12%

16%

16%

Horlicks
ANALYSIS:

Amul cool

Bournvita

Tropicana fruit juice

Maaza

From the survey it was found that amongst 50 respondents. a) 18% of the respondants prefer buying Horlicks b) 12% of the respondants prefer buying amul cool c) 38% of the respondants prefer buying bournvita d) 16%of the respondant prefer buying tropicana juice e) 16% of the respondant prefer buying maaza 15 .

4) What are the occasions when you use health drinks?

Valid

Frequency

Percent

Valid Percent

Cumulative Percent

regularly,all year around

13

26.0

26.0

26.0

regularly,only in summer

14

28.0

28.0

54.0

occasionally,all year around

19

38.0

38.0

92.0

occsionally,only in summer

8.0

8.0

100.0

Total

50

100.0

100.0

8% 26% 38% 28%

Regularly,all year around Regularly,only in summer Occasionally,all year around occasionally ,only in summer

ANALYSIS: From the survey it was found that amongst 50respondents. a) 26% of the respondents mostly consume health drink regularly, all year around. b) 28% of the respondents mostly consume s health drink regularly, in summer only. c) 38% of the respondent mostly consumes health drink occasionally, all year around. d) 8% of the respondant mostly consume health drink occasionally, only in summer. 16

5) Do you serve any health drink to your guest?

Valid

Frequency

Percent

Valid Percent

Cumulative Percent

yes

32

64.0

64.0

64.0

no

18

36.0

36.0

100.0

Total

50

100.0

100.0

36% 64%

yes
ANALYSIS:

No

From the survey it was found that amongst 50 respondents. a) 64% of the respondents serve healthdrinks to the guests. b) 36% of the respondents dont serve any health drinks to their guests.

17

6) What all nutrients should a health drink provide? Rate these on the scale 1(strongly agree) to 5(strongly disagree) Frequency Vitamins Minerals Both vitamins minerals and 10 16 15 Percentage 20% 32% 30%

No nutrient preferred

18%

40%

32% 20%

30% 18%

20% 0% vitamins Minerals

Both vitamins and minerals

no nutrient preffered

18

7) Do you buy health drink just because they are attracted by the free gifts and lucky draws and other special offers available with it?

Valid

Frequency

Percent

Valid Percent

Cumulative Percent

yes

13

26.0

26.0

26.0

no

37

74.0

74.0

100.0

Total

50

100.0

100.0

26% yes No 74%

ANALYSIS: From the survey it was found that amongst 50 respondents. a) 26% of the respondents buy health drink just because they are attracted by the free gifts and lucky draws and other special offers available with it . b) 74% of the respondents do not buy health drink just because they are attracted by the free gifts and lucky draws available with it .

19

8) Do you prefer buying health drink because your favorite celebrity or cricketer endorsing the ad for that brand?

Valid

Frequency

Percent

Valid Percent

Cumulative Percent

yes

22

44.0

44.0

44.0

no

28

56.0

56.0

100.0

Total

50

100.0

100.0

44% 56%

Yes NO

ANALYSIS: From the survey it was found that amongst 50 respondents. a) 44% of the respondents prefer buying health drink just because their favorite celebrity or cricketer endorsing the ad for that brand. b) 56% of the respondents dont prefer buying health drink just because their favorite celebrity or cricketer endorsing the ad for that brand 20

9)

What are the factors that led you to choose the above mentioned brand? listed below are some factors, rank them from 1 (most preferred) to 6 (least preferred) Cost Flavour Nutrient Advertisement Neighbours and friends Branding and pakaging

TABLE A

Descriptive Statistics
Mean Std. Deviation Analysis N

does cost led you choose the above mentioned brand? does flavour led you choose above mentioned brand? does nutrient led you choose the above mentioned brand? does advertisement led you choose above mentioned brand? does neighbour and friends led you choose above mentioned brand?

3.0200 2.6400 2.2400 1.9600 3.5200

1.28556 1.15635 1.15281 1.04900 1.29741

50 50 50 50 50

does packaging led you choose the above mentioned brand?

2.9400

1.33110

50

21

Interpretations on the basis of above table

Descriptive statistics are designed to give information about the distribution of the variables. Through descriptive statistics it is found out that which factors inluence consumers most while purchasing the preferred health drink,

The mean value of advertisement factor is 1.9600 means most of the respondants are inluenced by the advertisemant and they are strongly agreed that advertise ment led them to choose their preferred brand of health drink. Flavour, nutrients and packaging factors mean value is 2.6400, 2.2400 and2.9400 respectively. Hence, the respondents are also agreed or neutral with these factors that they led them to choose the brand. The mean value of cost of health drink and neighbour and friend are 3.0200,3.5200 respectively.it implies that cost of the health drink and neighbour does not affect the consumer decision that much as compared to other factors. \

Ultimately, Consumers are mostly influenced by the advertisements followed by the flavour, nutrients in the brand and the packaging and branding of health drink.

22

TABLE B

Correlation Matrix
does cost led you choose the above mentioned brand?
Correlation

does flavour led you choose above mentioned brand? .376

does nutrient led you choose the above mentioned brand?

does cost led you choose the above mentioned brand? does flavour led you choose above mentioned brand? does nutrient led you choose the above mentioned brand? does advertisement led you choose above mentioned brand? does neighbour and friends led you choose above mentioned brand? does packaging led you choose the above mentioned brand?

1.000

-.196

.376

1.000

-.026

-.196

-.026

1.000

-.045

-.231

.109

-.104

-.267

.010

.239

-.054

.236

23

TABLE C

Correlation Matrix
does advertiseme nt led you choose above mentioned brand? -.045 does neighbour and friends led you choose above mentioned brand? -.104 does packaging led you choose the above mentioned brand?

correl ation

does cost led you choose the above mentioned brand? does flavour led you choose above mentioned brand? does nutrient led you choose the above mentioned brand? does advertisement led you choose above mentioned brand? does neighbour and friends led you choose above mentioned brand? does packaging led you choose the above mentioned brand?

.239

-.231

-.267

-.054

.109

.010

.236

1.000

.121

-.031

.121

1.000

.290

-.031

.290

1.000

24

Interpretation on the basis of table B and C

A correlation is a single number that describes the degree of relationship between two variables. Correlation matrix shows the correlation within and with other factors which induce the consumers in choosing the brand. The value of correlation is between -1 to 1. The correlation of factor with itself is called perfect correlation as r = 1. The cost has positive correlation with flavour and packaging as r =.376, .239, it means if one variable increases in value, the other variable also increases. Cost is negatively correlated with nutient, advertisement and influence of friende and neighbours as the value of r=-.196,-.045,-.104 respectively.

Hence, it implies that if one factor or variable decreases, the other variable will also decrease. In this way, other variables correlation with each other has also given in the table as they reflect the characteristics of different type of data.

25

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig. .403

29.998 15 .012

Interpretations
Kaiser-meyer-olkin is a measure of whether your distribution of values is adequate for conducting factor analysis. Here the value of KMO is .403 Barletts Test of Sphericity is a measure of the multivariate normality of the set of distribution. It also tests whether the correlation matrix is an identity matrix.here the significance value of TEST is 0.12.

26

Interpretations on the basis of Scree Plot

A scree plot is a plot of eigenvalues in a factor analysis that is often used to determine how many factors to retain for rotation (Eigenvalues means the proportion of variance explained by each factor) SPSS default is to select and rotate any factor with an eigenvalue greater than 1. On the basis of scree plot only three (3) factors are selected for rotation.

27

TABLE D Component Matrixa

Component 1 2 3

does cost led you choose the above mentioned brand? does flavour led you choose above mentioned brand? does nutrient led you choose the above mentioned brand? does advertisement led you choose above mentioned brand? does neighbour and friends led you choose above mentioned brand? does packaging led you choose the above mentioned brand?
Extraction Method: Principal Component Analysis. a. 3 components extracted.

-.587 -.762 .366 .463 .585 .215

.565 .197 .252 -.065 .396 .873

-.261 .242 .853 -.089 -.431 .058

In Component matrix each number representsthe correlation between the item and unrotated factor (e.g. the correlation between nutrient and factor 1 is .366). This correlation can help you formulate an interpretation of the factor. This is done by looking at a common thread among the variable that have large loadings for a particular factors. It is impossible to see items with large loadings on several of the unrotated factors, which can make interpretation difficult.

28

TABLE

Communalities
Extraction does cost led you choose the above mentioned brand? does flavour led you choose above mentioned brand? does nutrient led you choose the above mentioned brand? does advertisement led you choose above mentioned brand? does neighbour and friends led you choose above mentioned brand? does packaging led you choose the above mentioned brand?
Extraction Method: Principal Component Analysis. .732

.678 .925 .226 .685 .812

The initial communalities are the default value as 1. Extraction communalities are estimates of the variance in each variable accounted for by the factors in the factor solution. Small values indicate variables that do not fit well with factor solution, and should possibly dropped from the analysis.

29

Total Variance Explained Compone nt Extraction Sums of Squared Loadings Tota l

1 2 3 1.662 1.345 1.052

Rotation Sums of Squared Loadings Total 1.598 1.342 1.119 % of Variance 26.631 22.363 18.649 Cumulative % 26.631 48.994 67.643

% of Variance
27.695 22.413 17.535

Cumulative % 27.695 50.108 67.643

Extraction Method: Principal Component Analysis.

Interpretation on the basis of table Total Variance Explained

The three components or factors were choosen on the basis of their eigenvalues placed on the scree plot graph. The first column of the Total Variance Table refers to the components or the factors. There 3 factors with eigenvalues (proportion of variance explained by each factor) larger than 1.0 and they account for almost 68% of the total variance. Next column is of %age of variance explained by each factor. The eigenvalue divided by the sum of the communalities (3 in this case). Cumulative % column shows the sum of each step in the previous column.

30

Rotated Component Matrixa Component

variables
Does cost led you choose the above mentioned brand? Does flavour led you choose above mentioned brand? Does nutrient led you choose the above mentioned brand? Does advertisement led you choose above mentioned brand? Does neighbour and friends led you choose above mentioned brand?

1 .611

2 .491

3 -.344

.823

-.004

.017

-.047

.124

.953

-.471

.042

.052

-.568

.580

-.161

Does packaging led you choose the above mentioned brand?

.025

.864

.254

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 4 iterations.

31

Interpratations on Rotated Component Matrix

The first column is of variable and others are the components or factors. The numbers in each column are the factor laodings for each factor, roughly the equivalent of the correlation between a particular item and the factor.

By looking at the table we can say that cost and flavour variable are highly correlated with the factor 1 as factor loadigs are .611 and.823.And nutrient ,advertisements ,influence of neighbour and friends are negatively correlated wid values -.047, -.471, -.568 respectively. Variables like cost neighbour and friends and packaging are highly correlated with factor 2 and other variables are less or somewhat negatively correlated.

Nutrient variable is highly correlated with factor 3 and variables like advertisements, packaging and flavour are less correlated with factor 3. Variables like cost and influence of labour and friends are negatively correlated with factor 3.

32

Component Transformation Matrix

Component 1 2 3

1 2 3

-.932 .240 .274

.183 .959 -.216

.314 .151 .937

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.

What basically follows here is the 3*3 factor transformation matrix.if we multiplies the factor transformation matrix by the original(unrotated) 3*6 factor matrix , the result would be the rotated factor matrix

33

Component Score Coefficient Matrix

Component 1 2 .392 3 -.280

does cost led you choose the above mentioned brand? does flavour led you choose above mentioned brand? does nutrient led you choose the above mentioned brand? does advertisement led you choose above mentioned brand? does neighbour and friends led you choose above mentioned brand? does packaging led you choose the above mentioned brand?
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.

.362

.525

.006

.093

.062

.045

.858

-.294

.023

.001

-.369

.436

-.229

.050

.634

.190

Component score coefficient generates the factor scores of each case on each of 3 factors.

34

Component Score Covariance Matrix

Component 1 2 3

1 2 3

1.000 .000 .000

.000 1.000 .000 Extraction Method: Principal Component Analysis.

.000 .000 1.000

Rotation Method: Varimax with Kaiser Normalization.

The factor or component score covarience matrix is the covariace matrix of the factors scores with its diagonal elements being the variances of the factor scores in the given sample. This illustrates that the three factors are orthogonal. That is, the factor scores for the six factors do not covary with each other.

35

10) To what extent does advertisements influence your choice of health drinks?

valid
very much

Frequency

Percent

Valid Percent

Cumulative Percent

11

22.0

22.0

22.0

average

35

70.0

70.0

92.0

not at all

8.0

8.0

100.0

Total

50

100.0

100.0

80% 70% 60% 50% 40% 30% 20% 10% 0%

74%

22% 8%
Very much Average Not at all

ANALYSIS: From the survey it was found that amongst 50 respondents.

a) b) c)

22%% of the respondents advertisements influence their choice of health drinks. 70% of the respondents said that advertisements influence their choice of health drinks. 8% of the respondent said that advertisement dont influence their choice . 36

11)

Have you tried other brands in the market?

haveyou tried other brands in the market

Valid

Frequency

Percent

Valid Percent

Cumulative Percent

yes

31

62.0

62.0

62.0

no

19

38.0

38.0

100.0

Total

50

100.0

100.0

38%
Yes NO

62%

ANALYSIS: From the survey it was found that amongst 50 respondents. a) 62% of the respondents have tried other brands in the market. b) 38% of the respondents have tried other brands in the market.

37

12)

What do you think are the benefits of health drinks?

Valid

Frequency

Percent

Valid Percent

Cumulative Percent

improves concentration and memoy

16.0

16.0

16.0

improves physical vigour

26

52.0

52.0

68.0

boost energy

12

24.0

24.0

92.0

any other benefit

8.0

8.0

100.0

Total

50

100.0

100.0

ANALYSIS:
60% 50% 40%

52%

10% 0%

Improves concentrati on &memory Improves

From the survey it was found that amongst 50 respondents. a) 16% of the respondents think that improves concentration and memory. b) 52% of the respondents think that it improves physical vigour. c) 24% of the respondant think that it boosts energy. 38 d) 8% of the respondant think that there are some other benefits too.

any other

physical vigour

Boost energy

8%

20%

16%

30%

24%

13)

How much you prefer to spend on health drink in a month?

Frequency Valid 100-300 300-600 600-900 Total 20 26 4 50

Percent 40.0 52.0 8.0 100.0

Valid Percent 40.0 52.0 8.0 100.0

Cumulative Percent 40.0 92.0 100.0

60% 50% 40% 30% 20% 10% 0%

74% 40%

8%
100-300 300-600 600-900

ANALYSIS: From the survey it was found that amongst 50 respondents. a) 40% of the respondents prefer to spend in between 100 to 300 rs in a month. b) 74% of the respondents prefer to spend in between 300 to 600 rs in a month. c) 8% of the respondents prefer to spend in between 600 to 900 rs in a month. 39

14)

In what quantity you buy a health drink?

valid
200ml

Frequency

Percent

Valid Percent

Cumulative Percent

13

26.0

26.0

26.0

250ml

24

48.0

48.0

74.0

300ml

12

24.0

24.0

98.0

500ml

2.0

2.0

100.0

Total

50

100.0

100.0

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 200 ml 26%

48%

24%

2%

250 ml

300 ml

500 ml

40

ANALYSIS: From the survey it was found that amongst 50 respondents. a) 15% of the respondents purchase 200 ml pack for personal consumption. b) 20% of the respondents purchase 250 ml pack for personal consumption. c) 45% of the respondents purchase 300 ml pack for personal consumption. d) 15% of the respondents purchase 500 ml pack for personal consumption. e) 5% of the respondents purchase other pack like 1 liter etc. for personal consumption.

41

These tests have also been conducted.

ONE WAY ANOVA TEST

Sum of Squares importance of health drinks for chidren Between Groups Within Groups Total use of liquid or powdered health drink Between Groups Within Groups Total preference of brand Between Groups Within Groups Total occasion of using health drink Between Groups Within Groups Total do you serve any health drink to your guest Between Groups Within Groups Total what nutrients should a health drink provide Between Groups Within Groups Total impact of free gifts on health drink Between Groups Within Groups Total impact of celebrities on purchase on health drink Between Groups Within Groups Total to what extent does advertisements influence your choice of health drinks haveyou tried other brands in the market Between Groups Within Groups Total what do you think are the Between Groups .969 19.451 20.420 .059 2 47 49 2 .030 .042 .959 .484 .414 1.170 .319 Between Groups Within Groups Total .066 7.314 7.380 .890 34.390 35.280 .598 81.402 82.000 .717 43.363 44.080 .300 11.220 11.520 .594 49.826 50.420 .944 14.436 15.380 .244 13.756 14.000 .535 13.485 14.020 2 47 49 2 47 49 2 47 49 2 47 49 2 47 49 2 47 49 2 47 49 2 47 49 2 47 49 .268 .287 .933 .401 .122 .293 .417 .662 .472 .307 1.537 .226 .297 1.060 .280 .757 .150 .239 .629 .537 .359 .923 .389 .680 .299 1.732 .173 .842 .445 .732 .608 .549 .033 .156 .212 .810 df Mean Square F Sig.

42

benefits of health drinks

Within Groups Total

33.061 33.120 .105 28.875 28.980 .127 18.753 18.880 2.000 75.220 77.220 10.541 70.439 80.980 9.840 55.680 65.520 1.757 63.363 65.120 .018 53.902 53.920 2.236 80.244 82.480 1.320 85.500 86.820

47 49 2 47 49 2 47 49 2 47 49 2 47 49 2 47 49 2 47 49 2 47 49 2 47 49 2 47 49

.703

in what quantity you buy a health drink

Between Groups Within Groups Total

.053 .614

.085

.918

how much you prefer to spend on health drinks in a month taglines completed by respondants

Between Groups Within Groups Total Between Groups Within Groups Total

.063 .399

.159

.853

1.000 1.600

.625

.540

does cost led you choose the above mentioned brand? does flavour led you choose above mentioned brand? does nutrient led you choose the above mentioned brand? does advertisement led you choose above mentioned brand? does neighbour and friends led you choose above mentioned brand? does packaging led you choose the above mentioned brand?

Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total

5.270 1.499

3.517

.038

4.920 1.185

4.153

.022

.879 1.348

.652

.526

.009 1.147

.008

.992

1.118 1.707

.655

.524

.660 1.819

.363

.698

T-TEST GROUPS=gender(1 2) /MISSING=ANALYSIS /VARIABLES=useanyhealthdrink importanceforchildren liquidorpowdreredhealthdrink preferenceofbrand occasionofusinghealthdrink healt hdrinktoguest nutrientsprovidedbyhealthdrink impactoffreegiftsonpurchaseofhealthdrink impactofcelebritiesonpurchaseofhealthdrink influenceofadvertisement trialofotherbrands benefitsofhealthdrinks quantityofbuyinghealth drink expenditureonhealthdrinksinamonth taglinesfilledbyrespondants doescostledyouchoose doesflavourledyouchoose doesnutrientledyouchoose doesadvertisementledyouchoose doesneighbourandfriendsledyou doespackagingledledyouchoose /CRITERIA=CI(.95).

43

Interpretations on the basis of one way annova test

Analysis of variance is a procedure used for comparing sample means to see if there is sufficient evidence to infer that the means of the corresponding population distributions also differ. If the p value is less than significance level (0.01), so we reject the null hypothesis. P value or sig. indicates whether there is significant difference between different groups. Here the p value in most of the cases is greater than the 0.01 hence we accepts the null hypothesis.

The null hypothesis states that there is no difference between means of different classes, suggesting that the variance of the within class sample should be identical to that of between class samples (resulting in no between -class discrimination capability).

44

T-Test
Group Statistics
gender use any health drink male female importance of health drinks for chidren use of liquid or powdered health drink preference of brand male female male female male female occasion of using health drink do you serve any health drink to your guest what nutrients should a health drink provide impact of free gifts on health drink impact of celebrities on purchase on health drink to what extent does advertisements influence your choice of health drinks haveyou tried other brands in the market what do you think are the benefits of health drinks in what quantity you buy a health drink how much you prefer to male female male female male female male 28 22 28 22 28 22 28 1.5357 1.3636 2.3929 2.0455 1.8929 2.1818 1.6786 .74447 .49237 .78595 .84387 .62889 .90692 .61183 .14069 .10497 .14853 .17991 .11885 .19336 .11563 male female male female male female male female male female male female N 28 22 28 22 28 22 28 22 28 22 28 22 28 22 28 22 28 22 28 22 Mean 1.0000 1.0000 1.1786 1.1818 1.9643 1.7727 2.5714 3.5455 2.2500 2.3182 1.3929 1.3182 2.5000 2.4091 1.7857 1.8636 1.6071 1.5909 1.8929 1.8182 Std. Deviation .00000 .00000
a a

Std. Error Mean .00000 .00000 .07371 .08417 .15838 .18530 .22671 .26093 .18986 .19054 .09399 .10164 .20893 .19361 .09424 .13636 .10714 .10729 .10714 .10683

.39002 .39477 .83808 .86914 1.19965 1.22386 1.00462 .89370 .49735 .47673 1.10554 .90812 .49868 .63960 .56695 .50324 .56695 .50108

45

spend on health drinks in a month taglines completed by respondants does cost led you choose the above mentioned brand? does flavour led you choose above mentioned brand? does nutrient led you choose the above mentioned brand? does advertisement led you choose above mentioned brand? does neighbour and friends led you choose above mentioned brand? does packaging led you choose the above mentioned brand?

female

22

1.6818

.64633

.13780

male female male female

28 22 28 22

3.7143 3.5909 3.0000 3.0455

1.32936 1.18157 1.41421 1.13294

.25123 .25191 .26726 .24154

male female

28 22

2.7500 2.5000

1.32288 .91287

.25000 .19462

male female

28 22

2.2857 2.1818

1.27242 1.00647

.24046 .21458

male female

28 22

1.9643 1.9545

1.07090 1.04550

.20238 .22290

male female

28 22

3.3571 3.7273

1.36665 1.20245

.25827 .25636

male female

28 22

2.8929 3.0000

1.31485 1.38013

.24848 .29424

a. t cannot be computed because the standard deviations of both groups are 0.

Independent Samples Test

Levene's Test for Equality of Variances t-test for Equality of Means

Sig.

df

Sig. (2tailed)

Mean Differenc e

Std. Error Differenc e

importance of health drinks for chidren

Equal variances assumed Equal variances

.003

.954

-.029

48

.977

-.00325

.11171

-.029

44.98

.977

-.00325

.11188

46

not assumed use of liquid or powdered health drink Equal variances assumed Equal variances not assumed preference of brand Equal variances assumed Equal variances not assumed occasion of using health drink Equal variances assumed Equal variances not assumed do you serve any health drink to your guest Equal variances assumed Equal variances not assumed what nutrients should a health drink provide Equal variances assumed Equal variances not assumed impact of free gifts on health drink Equal variances assumed Equal variances not assumed impact of celebrities on purchase on health drink to what extent does advertisements influence your choice of health drinks haveyou tried other brands in the market Equal variances assumed Equal variances not assumed .980 2.724 .105 .934 Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed .494 .010 .921 .486 .107 .635 .430 .106 -.470 .000 .998 -.484 .319 2.188 .146 .312 .539 1.174 .284 .537 -.253 .409 .526 .016 .899 2.825 2.818 -.250 .786 .496 .485 .789

4 48 .434 .19156 .24268

44.44 3 48

.436

.19156

.24377

.007

-.97403

.34482

44.81 2 48

.007

-.97403

.34566

.804

-.06818

.27284

47.20 7 48

.801

-.06818

.26898

.594

.07468

.13916

46.07 0 48

.592

.07468

.13844

.757

.09091

.29170

47.88 3 48

.751

.09091

.28484

.630

-.07792

.16088

38.94 1 48

.641

-.07792

.16576

.916

.01623

.15385

47.23 4 48

.915

.01623

.15163

.629

.07468

.15360

47.28 4

.624

.07468

.15130

48

.355

.17208

.18416

46.78 7

.332

.17208

.17554

47

what do you think are the benefits of health drinks in what quantity you buy a health drink

Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed

.067

.797

1.502

48

.140

.34740

.23128

1.489

43.62 1

.144

.34740

.23330

6.037

.018

1.329 1.273

48

.190

-.28896

.21741

35.88 2 48

.211

-.28896

.22696

how much you prefer to spend on health drinks in a month taglines completed by respondants

Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed

.088

.767

-.018

.986

-.00325

.17868

-.018

44.01 2

.986

-.00325

.17988

.263

.610

.342

48

.734

.12338

.36092

.347

47.21 7

.730

.12338

.35577

does cost led you choose the above mentioned brand? does flavour led you choose above mentioned brand? does nutrient led you choose the above mentioned brand? does advertisement led you choose above mentioned brand? does neighbour and friends led you choose above mentioned brand? does packaging

Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed

2.365

.131

-.123

48

.903

-.04545

.36999

-.126

47.97 2

.900

-.04545

.36024

3.824

.056

.756

48

.454

.25000

.33090

.789

47.30 5

.434

.25000

.31683

1.927

.171

.313

48

.755

.10390

.33150

.322

47.99 3

.749

.10390

.32229

.428

.516

.032

48

.974

.00974

.30196

.032

45.72 6

.974

.00974

.30107

Equal variances assumed Equal variances not assumed

.950

.335

1.001 1.017

48

.322

-.37013

.36962

47.33 5

.314

-.37013

.36390

Equal variances

.032

.859

-.280

48

.781

-.10714

.38285

48

led you choose the above mentioned brand?

assumed Equal variances not assumed -.278 44.16 3 .782 -.10714 .38513

Interpretations on the basis of T-TEST

T test has compared the means of two groups that whether the means of two groups statistically different from each other or not. The two samples share some variable of interest in common.

Here we have tested that whether the means of male and female differ significantly or not and we found out that the mean values do not differ significantly and hence male and female have same thinking while considering the variables.

Levenes test for Equality of variances indicates the variances for males and females do not differ significantly from each other as p=.954 in first case which is greater than .05(p<.05).

P value is a numerical measure of statistical significance of hypothesis test.it tells us how likely it is that we could have gotten our sample data even if null hypothesis is true.

49

 Limitations
Since this Project was intended to initiate us to the methodologies and techniques of Business Research Methods, therefore there are a number of constraints in terms of Manpower and Resources to conduct a large-scale survey. The scope of the project was limited to learning. There have been a number of limitations because of which the survey may not be indicative of the views of the target population. A few of these have been mentioned below. The Sample size used for the research is less. The Sample consisted of primarily students. The Target Area was limited to College and the nearby markets. Consultation with Experts would have largely improved quality of the Research. The Questionnaire was not extensive and more issues could have been addressed. The responses obtained might be inaccurate or biased, inadvertently or deliberately. The sample of the respondents chosen for the study might not be representative. Analysis of the proposed aspects might differ depending on the tools and techniques used.

50

 CONCLUSION
Following are the concluding points taken into consideration after the conduct of the research study: An important finding that emerged out of the survey was that 82%of people think that health drinks are beneficial for children.

Through the research it was conveyed that 42% of the people consume liquid health drinks, 28% consume powdered and 30% consume both.

Most of the respondents view health drinks as an aid to put off thirst

A majority of the respondents consume health drinks regularly all around the year. Most of the respondents serve health drinks to their guests. Most of the respondents were of the strong view that advertisements affect their purchases. Considering the TV ad bournvita and horlicks are liked mere but TV ad does not made most of the consumer switch on to these.

51

 One third of the respondents knew that health drinks are comprises of vitamins and minerals and how these are good for health . Most of the respondent like bournvita . Though the advertisements influence the decisions of the people but the sales promotion techniques like free gifts and lucky draws or other special offers do not persuade consumers in buying them as 74% of the respondents think they buy health drinks cause of its taste. Most of them male respondents concluded that they prefer buying a drink if any cricket celebrity endorses the drink in ads.

52

Questionaire
1) Do you use any health-drink ? Yes No 2) Do you think health drinks are important for the children? Yes No 3) Do you use liquid or powdered health drink? a. Liquid b. Powdered c. Both 4) Which brand do you prefer? a. Horlicks b. Amul cool c. Bournvita d. Tropicana fruit juice e. Maza f. If other please specify ------------------------------5) What are the occasions when you use health drinks? a. Regularly, all year around b. Regularly, only in summer c. Occasionally, all year around d. Occasionally, only in summer 6) Do you serve any health drink to your guest? Yes No 7) What all nutrients should a health drink provide?
53

a. Vitamin (vit a, b, c...) b. Minerals (calcium, iron, Potassium..) c. No particular nutrient preferred d. Both vitamins and minerals 8) Do you buy health drink just because they are attracted by the free gifts and lucky draws and other special offers available with it? Yes No

9) Do you prefer buying health drink because your favorite celebrity or cricketer endorsing the ad for that brand? Yes N0

10) What are the factors that led you to choose the above mentioned brand? listed below are some factors, rank them from 1 (most preferred) to 5 (least preferred) 1 2 3 4 5 a. Cost b. Flavor c. Nutrients d. Advertisements e. Neighbors & friends f. Packaging & quantity

11) To what extent does advertisements influence your choice of health drinks? a. Very much b. Average
54

c. Not at all 12) Have you tried other brands in the market? Yes No

13) a. b. c. d.

What do you think are the benefits of health drinks? Improves concentration & memory Improves physical vigor (stamina, stronger, muscles & bones) Boost energy If any other benefit, specify

14) How much you prefer to spend on health drinks in a month? a) 100-300 b) 300-600 c) 600-900 15) In what quantity you buy a health drink? a) 200ml b) 250ml c) 300ml d) 500ml

16) Complete the taglines if you know. 1._________________is the secret of our energy 2._________________ fresh n juicy 3__________________Taller Stronger Sharper 4__________________chill your dil 5________________lao, aam ki pyaas bujhao

55

 Bibliography
http://en.wikipedia.org/wiki/Beverage www.foodindustryindia.com

http://fnbnews.com/article/detarchive.asp?articleid=25105&sectionid=3

http://fnbnews.com/article/detarchive.asp?articleid=24983&sectionid=3

http://fnbnews.com/article/detarchive.asp?articleid=24965&sectionid=3

http://fnbnews.com/article/detarchive.asp?articleid=24849&sectionid=3

http://fnbnews.com/article/detarchive.asp?articleid=25039&sectionid=3

http://www.foodindustryindia.com/newfood/detailnews.jsp?n=Xtazy,%20another% 20energy%20drink%20for%20the%20Indian%20market&id=598

http://fnbnews.com/redfr.asp?fn=/other/aboutus.asp&title=About%20Us#Food&be verage

www.google.com

Kothari C R, Research and Methodology- Methods & Techniques, New Age International (P) Ltd., 2004

56