Top Banner
COMPLAN EXECUTIVE SUMMARY: Complan is a white milk powder product that has always been positioned as a complete food product in itself and has been perceived as such by the Indian consumer. We as a group will analyze the product as a brand and try and understand how the brand is faring in the current market scenario and how it will fare in the coming times. In this final report, we have listed out the way we are dissecting and analyzing the various facets of the product and the brand. We have started out by understanding what market Complan is present in and what its position in that market is. This is not only useful for understanding how the product is defined in the marketplace but also useful for understanding the competition. After this we have discussed about the company that owns the brand Complan – Heinz and along with this the evolution of Complan from its early days to its present status has been discussed. Next, we have discussed about the marketing mix that has been employed for Complan. We have discussed about the product and its components namely the product levels, product variety, product features which in its totality define the product as it is available in the market. After this, we have discussed about the brand that is Complan which discusses the various marketing measures that have been taken to create a unique brand identity
20
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Com Plan

COMPLAN

EXECUTIVE SUMMARY:Complan is a white milk powder product that has always been positioned as a complete food product in itself and has been perceived as such by the Indian consumer. We as a group will analyze the product as a brand and try and understand how the brand is faring in the current market scenario and how it will fare in the coming times. In this final report, we have listed out the way we are dissecting and analyzing the various facets of the product and the brand.We have started out by understanding what market Complan is present in and what its position in that market is. This is not only useful for understanding how the product is defined in the marketplace but also useful for understanding the competition. After this we have discussed about the company that owns the brand Complan – Heinz and along with this the evolution of Complan from its early days to its present status has been discussed.Next, we have discussed about the marketing mix that has been employed for Complan. We have discussed about the product and its components namely the product levels, product variety, product features which in its totality define the product as it is available in the market. After this, we have discussed about the brand that is Complan which discusses the various marketing measures that have been taken to create a unique brand identity for Complan which includes packaging, logo etc. Then we have moved on to the productplacement and positioning and discussed market segmentation where we have discussed the problems that Complan faced in its initial days of brand positioning. We have tried to cover every facet of the product that makes it from being a mere physical good to being an experience and we have tried to analyze how Complan is faring with regard to this.

Page 2: Com Plan

7

HEINZ INDIA (P) LTD AND ComplanHEINZ INDIA AND GLOBAL :

HJ Heinz Co. is the iconic US based global food giant. It has a world-class portfolio of powerful brands which hold the number one and number two positions in 50 different countries around the world. The 130 year old company is based in Pittsburgh, Pennsylvania.Valued at $ 10 billion its top 15 brands account for almost two thirds of the annual sales. With a presence in almost 200 countries it has massive reach across continents. Heinz India Pvt. Ltd was formed in the year 1994 by buying out the consumer products division of pharmaceutical company Glaxo in a Rs. 210-crore deal that gave the 100-per cent subsidiary of HJ Heinz Co a readymade portfolio of brands such as Complan, Glucon-D,Nycil and Farex. Today after almost 12 years of its entry its turnover is valued at almost 450-500 crores.Heinz with its global reach offers a range of 5700 product varieties. It major category of operation is in the FMCG sector with a concentration on the packaged foods industry. The major flagship product for HEINZ is the Heinz Tomato Ketchup. Inspite of the wide range of products the major revenue is from a few selected products.In India, Heinz distributes products like Glucon-D, Complan, Nycil; Sampriti Pure Desi Ghee.It recently entered into agreement with MJF Tea Ltd. to distribute Dilmah Tea in India.

Page 3: Com Plan

Heinz Vision & Mission Statement India : As the trusted leader in nutrition and wellness, Heinz - the original Pure Food Company - is dedicated to the sustainable health of the people, the planet and our Company.

Heinz Values

  1.Team Building & Collaboration - We embrace great ideas from everywhere and everyone and respect all individuals.

  2. Innovation - We spot consumer and customer needs and meet them with simple, creative solutions.

  3. Vision - We define a compelling, sustainable future and create the path to achieve it.

  4. Results - We deliver on commitments, take accountability and balance the short- and long-term.

  5. Integrity - We always tell the truth, act with the highest ethical standards and ensure that our products are of the highest quality.

The brand’s next major milestone occurred in 1975. In order to expand the user base, it was decided to establish Complan as an ideal nutritional supplement for growing children. Thereafter, Complan has gone on to become the most trusted brand for children’s nutrition in India.“I’m a Complan Boy, I’m a Complan Girl” remains one of the most well loved and instantly recalled jingles even today.

Page 4: Com Plan

MAR KETING MANAGEMENT | SIBM | MBA ‐ IB FINAL REPORT 8

COMPLAN EVOLUTION – NEED | WANTS | DEMANDS:When British soldiers landed on the beaches of Normandy during World War II, they were carrying more than just ammunition for firepower. They carried with them a powdered nutritional supplement called Complan which had been introduced by Glaxo. Glaxo brought Complan to India in 1964 and marketed it through doctors as a convalescence drink. After it went OTC in 1969, Complan continued to be perceived as an ethical product.In those days its tag line “Complan has 23 Vital Nutrients whereas Milk has 9” had established Complan’s superiority over milk on nutritional delivery.The brands’ next major milestone was reached in 1975 when, in order to expand its user base, Complan made a strategic shift in its target market and positioning. Complan was now repositioned as an ideal nutritional supplement for growing children. In 1994, Heinz bought out Complan from Glaxo. Given Heinz’s commitment to quality and leadership, Complan has evolved into India’s premium health beverage for growing children.It has now come to stand for the Gold Standard of Nutrition (Source: Pathfinders Track - Kolkata). The brand’s positioning as the ‘Drink for growing children’ coupled with its superior nutritional formulation are its greatest strengths today. Complan’s current consumer base runs into hundreds of thousands of households across the country. It is retailed through more than 225,000 outlets and has an impressive 16.8% share across the entire MFD category (Source: IMRB Household Panel, MAT August 2003). Apartfrom India, Complan is also available in the UK, Australia, Venezuela, Nepal and Sri Lanka.MARKETING MANAGEMENT | SIBM | MBA ‐ IB FINAL REPORT 9

PRODUCT FEATURES:

Complan proclaims itself as “Complan for growth” and has the taglines: a “Complete Planned Food” and “Ideal for Growing children”. These claims are then backed up by a paragraph on the package explaining that Complan has 23 vital ingredients or 23 vital nutrients in planned proportion which are vital for the growing years of Children. It goes to explain that Complan has protein content that is 100% milk protein which is one of the best proteins for growth.

Page 5: Com Plan

Each package also lists out the 23 ingredients in a tabular form alongwith the nutritional value of each ingredient along with an explanation listing out the benefits of each.MARKETING MANAGEMENT | SIBM | MBA ‐ IB FINAL REPORT Complan claims to be ideal for the child’s physical and mental development. Along with this, Complan tries to position itself as a meal time drink rather than just a morning breakfast drink by writing on the package itself that Complan is a drink for breakfast, after school and at bedtime.Each package also lists out the 23 ingredients in a tabular form along with the nutritional value of each ingredient along with an explanation listing out the benefits of each.Complan has been successful in translating its clams of being a nutritional drink, of being a complete planned food into sales growth.

How Complan Reaches Its Target Markets?After much ado we get back to the basic question as to what are the means by which Complan reaches to its target market:1. TV Advertisements2. News Papers, Print Media.3. Retail Outlets-Layout4. SchoolsTV advertising forms the backbone of Heinz’s strategy in promoting the brand. Heinz India has repositioned Complan since it was bought from GSK. News papers and print media do not form a very big part of promotions for Heinz and this phenomenon has been observed across the market of health drinks. Health drinks of the same market like Horlicks which is undoubtedly the market leader, Maltova, Milo, Boost etc also follow a similar strategy

Innovation Front :

Complan has been committed in bringing medically recommended and effective solutions to meet everyday dietary needs of the consumers. It is one of the very few brands in the MFD category which is used so extensively because of medical practitioner recommendation and most recently the new Complan had been fortified with range of vitamins and minerals in a balanced proportion for health and vitality. There aren't many brands that have been aroundfor 50 years, and remained a market leader in its own niche segment all throughout. The new family oriented range reassures their commitment to innovations, which are must for a brand to live long.

Page 6: Com Plan

PRODUCT CHARACTERISTICSComplan operates in the category of Malted Food Drinks and the most important concept behind the advent of such product is twofold:1. The normal food does not take care of the daily requirements of children who need that some extra nutrients for healthy growth.2. This is a newer concept and a hidden motivator for all health drink segment. The parents and especially the mothers always feel that her child does not get adequate nutrition. It is precisely due to this reason that Complan utilizes the sentiments of mother’s love in its advertising.The product is categorized as a health drink and thus understandably is used as an additive to milk for getting a great taste. Complan’s availability in exciting flavours has endeared it to children. Complan continued to be perceived as an ethical product. In those days its tag line “Complan has 23 Vital Nutrients whereas Milk has 9” had established Complan’s superiority over milk on nutritional delivery.24PRODUCT COMPONENTS:

Complan has hooked on to the sachet parade. Smaller pack sizes of Complan and Glucon D priced at Rs 5 and Rs 3, respectively, hit the market two years ago.According to K Dasharatharaman, director, sales, it helps Heinz kill two birds with one stone. Not only do the smaller packs help Heinz penetrate rural markets, it attracts aspirants who earlier wanted to use the products but couldn't afford them. "We have launched sachets in selective markets to explore opportunities in this segment," adds Patel. Then, to get morechildren to drink its Complan, a new caramel-flavoured variant has hit shop shelves. Complete Family Delicious Malt was a special formulation, having low fat derived from plant origin, making it cholesterol-free, while Complan Family Lite is fat-free and has no cholesterol and no added sugar.With the new product, the company is reaching out to the health conscious adults, who require nutrition and need to stay fit and healthy. "With today's busy and hectic lifestyle, people do not have the time to focus on their dietary requirements. The product has been fortified with a complete range of vitamins and minerals in a balanced proportion for health and vitality for the entire family25.

Page 7: Com Plan

VALUE CHAIN:Value chain is a tool for identifying ways to create more customer value. It identifies nine strategically relevant activities that create value and cost in a specific business like Health Food Drink Industry. It consists of primary activities and support activities.Primary activities deals with inbound logistics like the raw material required tomanufacture the product. In case of Complan the raw material like milk powder and other ingredients is brought from company approved suppliers and vendors. The next primary activity is Operations or Manufacturing of the product which is done at Aligarh in UP and Bangalore in Karnataka, where Complan and other Heinz products are manufactured in India. Third primary activity is outbound logistics like Distribution throughout the length and breadth of the country. Heinz and Complan have a colossal network in India. Heinz has a strong distribution network which its major brands leverage for market penetration. There are over 1600 Distributors reaching out to 4.5 lakh retailers across the country. After this the most important is marketing and sales, where various advertisements are aired on television, someprint advertisements to increase the sales of the product. There are various Below the Line marketing activities conducted by Heinz. As discussed earlier Complan positioning has undergone a change over the years and now is available in various exciting flavours.‐ IB FINAL REPORT Com30

INTENSIVE GROWTH :As shown in the above figure the first option is to identify opportunities to achieve further growth within current businesses which is called as intensive opportunities. Complan can do this by introducing new products like ready to drink Complan, or having Complan dispensers installed etc. to improve business opportunities and to increase its sales. Ansoff proposed a useful framework for detecting new growth opportunities called a “product-market expansion grid”.

The company should first consider whether it could gain more market share with its current products like different Flavours of Complan. Next it should consider whether it can find or develop new markets for its current products like certain rural areas where product awareness is essential (Market Development Strategy). Then it should consider whether it can develop new products of potential interests to its current markets by introducing products like Biscuits, Ready to Drink Complan, New Flavours etc. (Product Development Strategy). Later it will also review opportunitiesto develop new products for new markets (Diversification Strategy).

Page 8: Com Plan

INTEGRATIVE GROWTH :A business’s sales and profits may be increased through backward, forward, orhorizontal integration within its industry. What Heinz can do is they can setup one more manufacturing plant to manufacture its products because in Punegenerally small shopkeepers don’t prefer Complan because of fewer profit margins. Also this can bring down the overall cost of manufacturing and make the price more attractive to the customer. A new manufacturing unit can help to overcome this problem.

DIVERSIFICATION GROWTH:

Diversification growth makes sense when good opportunities can be found outside the present business. A good opportunity is one in which the industry is highly attractive and the company has the right mix of business strengths to be successful. In case of Heinz and Complan they could further diverse into Health Foods market. They could seek new products like Break Fast Cereals, Health Soups etc.MARKETING MANAGEMENT | SIBM | MBA ‐ IB FINAL REPORTPRODUCT PORTFOLIOComplan has around 15 percent share in the Indian Health Food Drink industry which is valued at around Rs.1300 crores. On the other hand Horlicks has over 54 percent market share.Complan has changed its positioning over the years and is trying to increase itsmarket share in the growing Health Food Drink market. Bournvita & Horlickscontinue with their aggressive marketing strategies and line extension to maintain and increase their market share.With retail coming up in a big way, product visibility and availability at the point of purchase will play a key role in growth.

Page 9: Com Plan

The Dogs:This category belongs to the products which are having low market growth and low market share. These are primarily Maltova, Viva and Milo. As the market isoccupied by major players there is not much for these brands in terms of visibility.

The Question Marks:

This is basically the product with low market share but high market growth rate. In Indian Health Food Drink market there is good growth but Complan is having market share which is significantly low as compared to its competitor Horlicks. In this category there are three brands that are Complan, Bournvita & Boost.32 The Star is clearly Horlicks. As this has over 54% market share and also having advantage of high market growth.

ME

Page 10: Com Plan

PORTER’S FIVE FORCES MODEL:Porter has identified five competitive forces that shape every industry and everymarket. These forces determine the intensity of competition and hence theprofitability and attractiveness of an industry. The objective of corporate strategy should be to modify these competitive forces in a way that improves the position of the organization. The following diagram illustrates the case of Complan in the Health Food IndustryMARKETING MANAGEMENT | SIBM | MBA ‐ IB FINAL

Page 11: Com Plan

Heinz extends Complan brand to muesli Heinz India has decided to enter the breakfast cereal market by introducing Complan Nutri Bowl Muesli. Extending the equity of its largest malted food brand, Complan, Heinz intends building the Complan franchise with a host of products to cater to the health and nutrition needs of consumers in the near future.

Mr Sundip Shah, General Manager (New Business), Heinz India, told Business Line, “We are all set to leverage the strength of Complan today. There would be new categories and even within the existing categories, there would be more products under Complan.”

In the past, Complan has extended itself to the cream biscuit category and today, has restricted presence in States like Tamil Nadu and Maharashtra. Complan will now be entering the breakfast cereal category currently dominated by brands such as Kelloggs and Baggery’s. “We estimate the breakfast cereal market at Rs 200 crore and growing at the rate of 30 per cent,” Mr Shah said.Comparative ads

In the recent past, Complan was in the limelight for its comparative ads with nearest rival Horlicks, from GSK. “We have gained 3 per cent market share over last year and the comparative ads may have been one of the reasons for it,” Mr Shah said.

Currently, these ads are off the air and the case is sub-judice. However, Horlicks continues to lead with a 56 per cent share in the Rs 1,800-crore malted foods category with Complan having an 18 per cent share.

In fact, Horlicks had recently extended itself as a nutria-bar, targeting young adults. Complan is now trying to do the same with its muesli, addressing adults with its new offering. “Our research showed that while children are the primary consumers of Complan, its usage extends across other family members too. It is trusted by adults and it was natural for us to extend it to Complan Nutri Bowl Museli.”

Complan Nutri Bowl Muesli has three flavours — Mixed Fruit, Crunchy and Crunchy with flavour. It also boasts of 23 vital nutrients, similar to the mother brand, Complan, to communicate its ‘goodness’ to consumers.

Page 12: Com Plan

Complan Nutri Bowl Muesli will be launched in a phased manner beginning with the southern markets.

Conclusion:

Complan as a product and as a brand enjoys a very high brand recall among consumers and enjoys a high awareness among them regarding its nutritional value and the benefits of consuming the product.However if we see the market share and the brand loyalty that the product has, it is surprising to see Complan fighting to keep its market share at above single digits. Consumers know about Complan and understand its values and yet they are not inclined to buy the product and even if they do are highly inclined to experiment on the next purchase – an indication that Complan did not excite them enough for making repeat purchases.

What could be the reason for this imbalance between the tremendous brand equity and the abysmal market share?We have come to conclude that the reason for this is the changed market scenario and the changing consumer preference in terms of consumer demand for augmented features and addons. Complan has successfully positioned itself as a brand which provides immense quality with its promise of nutrition. But what the brand managers seem to have forgotten is that theconsumers have come to accept this as a given and find similar value in competitor products such as Horlicks; at the same time, consumers are demanding other benefits – tangible and intangible e.g. better taste, better packaging, a ‘fun factor’ etc It must be noted that it’s the ‘fun factor’ that is most important for Heinz and Complan today if they want to improve their market share. Indian economy is being increasingly driven by consumers who are in the age group of 10 – 25. If a company fails to respond to this age group properly and if they unable to position themselves attractively to this consumer group, the product would die a slow death.This is a major flaw in the marketing strategy in Complan which Heinz has tried to correct by changing the packaging somewhat and bringing out a promotional campaign that target the younger population. However we cannot say that the strategy has worked to much degree of success, mainly because Complan still hasn’t changed what the consumers are looking for – achange in taste. Complan’s taste is something that children don’t like and this is a factor that is increasingly driving families to turn away from Complan.What can Heinz and Complan do differently then? Detailed strategies that can be followed have already been discussed. But to put it succinctly; for one, explore the possibility of changing the taste. Then they have look into aggressively repositioning the product so that there is an alignment of what

Page 13: Com Plan

Complan offers and what the consumers want. And this is something that needs to be done on a priority basis if Complan does not want to be a brand that would have the unenviable position of being a product with an incredible amount of brand recall and negligible sales and market share.5161MARKETING MANAGEMENT | SIBM | MBA ‐ IB FINAL

References and Bibliography:www.Complanfoods.comwww.magindia.comwww.thehindubusinessline.comwww.wikipedia.orgwww.mouthshut.comwww.reviewstream.comwww.brandautopsy.typepad.comwww.adpunch.orgwww.ries.typepad.comwww.marketingpractice.blogspot.com\www.20plus30.comwww.indsight.orgwww.answers.com/topic/Complanwww.gmarketing.com

Page 14: Com Plan

Group Members :-1. Tejal Arora 04

2. Saloni Jain

3. Kaushal Chauhan

4. Pranjal Patil

5. Lalit Temkar

6. Yash Thakkar

7. Amit Vaidya

Page 15: Com Plan

Acknowledgement:We take this opportunity to express our gratitude to all those without whose encouragement this project would not have seen light.I am also thankful to Prof. Bhumika Desai for guiding us through in completing this project.

Page 16: Com Plan
Page 17: Com Plan