FEASIBILITY REPORT

ON
BOURNVITA

Submitted to:
Prof. Chandu Sir

Submitted by:
Bushra Saleh (Roll no. 7)
M.com Sem 2

S.K. School of Business Management

Points to Be Covered:

 Background History of England

 England Profile
 India-England Relations
 Bilateral Trade
 Membership of England In Different Organization
 Key Cities
 Introduction of Industry
 Swot Analysis
 Porter’s Five Force Analysis
 Pestel Analysis
 Business Plan
 Segmentation, Targeting, Positioning (STP)

Background History of England

 The British Isles became inhabited more than 800,000 years
ago, as the discovery of stone tools and footprints
at Happisburgh in Norfolk has revealed.

 In AD 43 the Roman conquest of Britain began;

the Romans maintained control of their province of
Britannia until the early 5th century.

 The end of Roman rule in Britain facilitated the Anglo-Saxon

settlement of Britain, which historians often regard as the origin
of England and of the English people.

 The Anglo-Saxons, a collection of various Germanic peoples,

established several kingdoms that became the primary powers in
present-day England and parts of southern Scotland.

 During this period, several rulers attempted to unite the various

Anglo-Saxon kingdoms, an effort that led to the emergence of
the Kingdom of England by the 10th century.

 However, as of 2019, its cultural impact remains widespread

and deep in many of them.

England Profile
 Capital: London
 Population: 62.8 million
 Area: 242,514 sq. km (93,638 sq. miles)
 Major language: English
 Major religion: Christianity
 Life expectancy: 78 years (men), 82 years (women)
 Currency: pound sterling, World Bank

India-England Relation
 India–United Kingdom relations, also known as Indian–British
relations or Indo–British relations, refers to international
relations between the Republic of India and the United Kingdom
of Great Britain and Northern Ireland.
 India has a high commission in London and two consulates-
general in Birmingham and Edinburgh. The United Kingdom
has a high commission in New Delhi and five deputy high
commissionsin Mumbai, Chennai, Bangalore, Hyderabad and K
olkata. Both countries are full members of the Commonwealth
of Nations.

United Kingdom India

Diplomatic mission

High Commission of the United Kingdom, New

,  , 
India House London United Kingdom
Delhi, India

Envoy

British High Commissioner to India Dominic Asquith High Commission of India to the United

Kingdom Ruchi Ghanshyam

Bilateral Trade
  Bilateral trade or clearing trade is trade exclusively between two
states, particularly, barter trade based on bilateral deals between
governments, and without using hard currency for payment.
 The Soviet Union conducted bilateral trade with two
nations, India and Finland. On the Soviet side, the trade was
nationalized, but on the other side, also private capitalists
negotiated deals. Relationships with politicians in charge of
foreign policy were especially important for such businessmen.

 India Balance of Trade:

 India has been recording sustained trade deficits since 1980
mainly due to the strong imports growth, particularly of mineral
fuels, oils and waxes and bituminous substances and pearls,
precious and semi-precious stones and jewelry. In recent years,
the biggest trade deficits were recorded with China, Switzerland,
Saudi Arabia, Iraq and Indonesia. India records trade surpluses
with the US, United Arab Emirates, Hong Kong, United
Kingdom and Vietnam.
India Trade Last Previous Highest Lowest

Balance of Trade -11250.00 -12120.00 258.90 -20210.90

Current Account -6253.68 -14180.72 7360.00 -31857.18

Current Account to GDP -2.30 -1.90 2.30 -4.80

Imports 38610.00 38110.00 45730.00 117.40

Exports 27360.00 25980.00 32550.00 59.01

Membership of England in Different

Organization
 Members
RankMembership Organisation
(2019)
National Union of Students (NUS) / 700
1 7 Million
Student Unions
2 The National Trust 5.75 Million
Trades Union Congress (TUC) / 50 Affiliated
3 5.6 Million
Unions

Rank City Population (2015)

1 Greater London 8,674,000

2 Birmingham (West Midlands) 2,834,000

3 Greater Manchester 2,756,000

4 West Yorkshire 2,282,000

5 North East 1,957,000

6 Liverpool 1,525,000

7 Sheffield 1,375,000

8 Bristol 1,119,000

Key Cities

Introduction of Bournvita
 Presently bournvita is number one brown beverages in India.
 Right now, it has around 4.5 lakh stores in India and it's going to increase
even more in the future.

 In 2006-07 it has been declared as “consumer super brand” by Super

brands India. It has a total market share of about 17% and topping the
brown beverage index with 43%.

 Bournvita is a brand of malt and chocolate malted drink mixes

manufactured by Cadbury, a subsidiary of Mondelez International.
 It is sold in many countries of Europe and North America and also in
India, Bangladesh, Nepal, Nigeria, Ghana, Benin, Togo, and South
Africa.
 It is among the oldest brands in the Malt Food Category with a very old
heritage and always been known to provide the best nutrition for the all-
round growth and development.

Swot Analysis

 Strengths:
 Chocolate Flavour: Bournvita which is owned by the chocolate brand
Cadburys, as well as its variants such as Bournvita Five Star magic and
Bounrvita Little Stars, have the signature rich chocolatey flavour,
granular texture and rich brown colour which kids love. The granular
texture gives it a well-rounded flavour.
 Nutrition: Consumers who consume flavoured drinks do this in order to
fortify their kids with higher energy levels or stamina. The powder is
composed of nutrients such as carbohydrates, proteins and minerals such
as iron, calcium and magnesium and vitamins like B & D.
 Cadburys: Any kid grows up hearing the name of Cadburys and its
strong association with chocolate. The background that the company has
in manufacturing and processing chocolate is something that dates back
to many years in history and this backing is the biggest strength that
Bournvita has.
 Extensive distribution: Mondelez is the owner of a vast channel of
distribution and sells to more than 2 million outlets just in India. The
drink is sold even in villages today either as bottles, packets or sachets.
 Rebranding: In order to beat the competition
from Horlicks and Boost the advertisement Jeet ki tayyari indicates that it
is best to supplement for brain growth, memory and fitness partner. The
drink is also positioned to be rich in pro-health vitamins and rich in honey
and almonds. This is a clear difference from the earlier positioning where
the primary point was the richness of flavour to one where the benefit is
being showcased.

 Weaknesses:
 Lack of differentiation: There is no clear differentiation between
different variants of Bournvita and they are all primarily chocolate
flavoured drinks. However, the company is trying to differentiate it using
ingredients as the key. They are also trying to differentiate through a
benefit-based positioning which is also not drastically different from what
their competition has to say.
 Copy of competitors: Bournvita does not have a new feature to
showcase but primarily follows a path or positioning set by market
leaders like Horlicks or Complain.
 Image of the brand: The drink has always been positioned as one for
taste and texture and for active kids. Thus, there is a popular belief that
the drink is suitable for boys and not for girls.
 Opportunities:
 Focus on growth needs: Mothers are fussy and more concerned about
the health and nutrition needs of their children and whether their diet is
balanced. The right marketing and positioning can help to boost up the
sales through meeting physical and emotional needs of growing children.
 Importance of extracurricular activities: Today the parents want their
kids to excel in all areas and that includes both curricular and co-
curricular and they are willing to invest in anything that promises higher
levels of achievement. This creates a lot of specific need which can be
used to create new target segments.

 Threats:
 Competition: The competition for Bournvita includes drinks like Boost,
Horlicks, Maltova etc.
 Health conscious customer: There are a lot of controversies that health
drinks have been embroiled in that claim that they contain hormones and
other growth enhancing agents. This would mean that many of the
customers choose to give their kids plain milk than rely on flavouring
powders like Boost or Borunvita.
 Too many similar products: The health drinks market is filled with
products of the same kind who even speak of similar nutrients and same
benefits. This brings down the loyalty of the customer who feels that they
can keep shifting from one brand to another.

Porter’s Five Force Analysis

 Bargaining power of buyers: Porter (2008) stated that where
the product is a small fraction of buyers’ costs or expenditures,
buyers are usually less price sensitive.
 Retail buyers are the group that has the most effect for Cadbury
and other confectionery producers. They are mainly large
retailers like i.e. Tesco, Asda in UK. 

 Bargaining power of suppliers: Group that has big impact on

the final product, in terms of quality and price. The main
commodities used by Cadbury are cocoa, milk, and sugar. Any
change in the price of those commodities will affect directly the
price of the product and the profitability.

 Rivalry among existing competitors: Confectionary is an

industry with stiff competition amongst its players. There are
 five major players competing globally in confectionery industry:
Nestle, Mars & Wrigley, Cadbury, Ferrero Rocher and Hershey
with about 42% share of global market (Cadbury, 2008). All of
the major players in the industry have very sound brands
worldwide.

 Threat of substitute products: World Health Organization

(WHO) (2008) estimates that in 2005 at least 400 million adults
worldwide were obese and forecasted that this figure in 2015
will be 700 million.

 Threat of a new entry: – as the confectionery market is

dominated by well established brands, as sated while analysing
the rivals, and they are Nestle, Mars & Wrigley, Cadbury,
Ferrero Rocher and Hershey, with 42% of the market.

Pestel Analysis

 Political: Only 10 countries in the world produce more than

90% of the world’s cocoa (World’s Coco Foundation, 2007).
The major problem in those countries is poverty.

 Economic: Recent fall in the value of the pound, is one

economic factor that affects all the companies that operate in
UK, and have business connections with other countries.
Cadbury operates in more than 60 countries in the world. 

 Social: Fair trade with cocoa farmers is a social factor, as affects

how the company is perceived by the consumers. Fair trade
 means that a company buys a tone of cocoa at the market price
and pays a social premium for the commodity.

 Technological: Availability of high-tech machinery enables the

company to produce high quality product at lower prices, which
helps the company to gain competitive advantage.

 Environmental: The cocoa plant needs a stable climate. But the

ideal conditions in Africa and South America are in danger
because of global warming. The weather will be unpredictable
and natural disasters are possible.

 
 Legal: Affecting the industry are two new legislations that came
into force in 2003 in UK. Regulations concerning contaminants
in food and organic products force firms to obey and perhaps
change their own practices (Baxter, 2006).

Business Plan

 The brown malted drink prepares to take on Horlicks.

 T ayyari Jeet Ki (preparing to win) has been the theme of
Bournvita’s campaign since 2011. Two years on, the heritage
brand believes it is ready to challenge Glaxo SmithKline
Consumer Healthcare (GSK), the market leader in the malted
foods category, by possibly adopting the same stance and using
the same line.
 With aggressive advertising, distribution and direct door-to-door
sales in the smaller markets, Bournvita believes in literally
‘preparing to win’. But can it win against another heritage brand
such as Horlicks or even its flanker brand Boost in the Rs 4,500-
crore malted foods category?
 Jagdeep Kapoor, Managing Director, Samsika Marketing
Consultants, says, “In malted foods, Horlicks has always been
the leader and Bournvita the challenger. Bournvita needs to
move up the perception ladder with consistent aggression in the
category and prove that from preparing to win, it can actually
become a winner.’’
 Bournvita has always been pitted against GSK’s Boost with
almost equal shares, and Horlicks way ahead as the market
leader. Today Bournvita claims to have gained share and
overtaken Boost, which has a 12 per cent value share. Bournvita
has a 16.2 per cent share (as per Nielsen data for the quarter
ending March). It has also become the market leader in modern
trade surpassing GSK’s Horlicks with 29.3 per cent share.
 Narayan Sundararaman, Executive Director, Powdered
Beverages, Cadbury Kraft Foods (or Mondelez International),
said, “We want to take the fight to the market leader.” Both
Boost and Bournvita are brown malted drinks and have been
 direct competitors. Horlicks has always been the market leader,
with almost 45 per cent share in the category.

Segment:

 Chocolate based health drink for children

Target Group:

 Young growing children from the middle and upper class

Positioning:

 Chocolate health drink to make kids stronger and sharper

The End……...