COMPLAN MARKET ENTRY STRATEGY FOR KENYA

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Applied Learning Project on

COMPLAN MARKET ENTRY STRATEGY FOR KENYA Submitted in partial fulfilment of the requirement of Global Masters in Business Administration

Prepared for S P Jain School of Global Management Singapore/Dubai

Project Team

Dennis George (GAPR12CMM101)

Sumedha Sharma (GAPR12CMM130)

Varun Mahajan (GAPR12CMM131)

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DECLARATION
We hereby declare that this report titled Complan market entry strategy for Kenya is the result of study and interviews carried out by us. We further declare that this is our original work and has not been published anywhere before. We have read and understood the IIP Guidelines and we solemnly promise to abide by all regulations. Non-Compliance to the same shall result in disciplinary action. This Project Work has been carried out for the sole purpose of submission towards partial fulfilment of Global Masters in Business Administration (GMBA) program at SP Jain School of Global Management, Dubai The above is true to the best of our knowledge and understanding. We have read, understood, signed and submitted the SP Jain Code of Ethics.

COPYRIGHT ASSIGNMENT

[Note: This is an All-Rights transfer of copyright, i.e., assignor relinquishes all rights under copyright] FOR GOOD AND VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the Project team (Assignor), hereby irrevocably transfers and assigns to SP Jain School of Global Management (Assignee), located at Dubai, Singapore, Sydney, its successors and assigns, in perpetuity, all right (whether now known or hereinafter invented), title, and interest, throughout the world, including any copyrights and renewals or extensions thereto, in Complan market entry strategy for Kenya. IN WITNESS THEREOF, Assignor has duly executed this Agreement. Date: Assignor: Project Team: Dennis George (GAPR12CMM101) Sumedha Sharma (GAPR12CMM130) Varun Mahajan (GAPR12CMM131)

Project Mentor:

Project Mentor:

Dr. Balakrishna Grandhi

Mr. Ashish Chakravarti

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ACKNOWLEDGEMENT
The project Complan market entry strategy in Kenya gave the team a wonderful opportunity to work with Heinz HJ, one of the most reputed FMCG brands in the world. The project proved to be a learning ground for gaining insight into the Africa market and African consumer consumption patterns. The team also understood the various macro and micro factors that impact the FMCG business. This project would not have been possible without the help and guidance of few people. The team would like to express their heartfelt thanks to them. First and foremost, we would like to express our gratitude to our corporate mentor Mr. Ashish Chakravarti. He ensured that the team was on right track and was always available for feedback. In addition, his personal feedback to team members helped them in improving themselves. Our special thanks to Ms. Dorcas Halima, Heinz Africa team. She helped us execute the survey in Kenya. In addition, she gave insight on the Kenya market. We really appreciate her quick response and readiness to help the team. We would also like to thank Mr. Umesh Kothari and Mr. Nitin Patwa for their help and feedback during questionnaire design stage. Also, special thanks to Dr. Balakrishna Grandhi for his valuable insights which helped us challenge our own assumptions and come out with better results. Last but not the least we would like to thank all the respondents who took out time to fill our survey.

Sincerely: Dennis George (GAPR12CMM101) Sumedha Sharma (GAPR12CMM130) Varun Mahajan (GAPR12CMM131)

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TABLE OF CONTENTS
Executive Summary .................................................................................................... 6 1. Introduction ........................................................................................................... 7 1.1 Kenya-Country snapshot ......................................................................................... 8 1.2 Introduction to Nutritional drinks ......................................................................... 11 1.3 Kenya Hot Drinks Market...................................................................................... 12 2. Research Methodology .......................................................................................... 14 2.1 Objective & Hypothesis .......................................................................................... 15 2.2 Importance of the Study ........................................................................................ 16 2.3 Research Design ................................................................................................... 16 2.4 Literature review ................................................................................................... 18 3. Analysis and Interpretation .................................................................................. 21 3.1 Market Sizing and potential ................................................................................... 22 3.2 Customer Behavior Analysis .................................................................................. 28 5. Marketing entry strategy for Complan in Kenya ................................................... 37 6. Future Scope......................................................................................................... 44 References ................................................................................................................ 46 Appendix ................................................................................................................... 47

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EXECUTIVE SUMMARY

There have been tremendous changes in the eating habits of all age groups in the past few years. More and more people, especially, children and teenagers are having erratic eating habits and consuming fast food. Most of the urban families are becoming nuclear and consuming ready to eat food. As a result parents are becoming more focussed on their children. They want overall development of their children and are ensuring that their children have balanced diet. One of the products which is gaining popularity in the developing markets is nutritional or fortified drinks. Nutritional drinks are adopting different positioning strategies such as ability to help in height gain of children, increase their immunity levels or meet their daily nutritional requirement which helps them perform better and become stronger. Apart from children, many youngsters in their 20s and 30s and middle aged people are also consuming nutritional drink to make up for the missing nutrients in their daily diet. Also, there are many specialised nutritional products for older people aimed at fortifying their daily food and improving their immunity. The demand for FMCG products in mature economies such as USA and Europe is stabilising and there is increased competition. Most of the companies such as Nestle, Kraft, Heinz are now focussing on increasing their sales in developing countries such as India, Africa and South east Asia. The primary objective of the study is to estimate the market potential for nutritional drinks in Kenya and develop a positioning strategy for Complan which is different from the current competition. The final recommendations of the project are aimed at designing the Go to market strategy for Heinzs Complan in Kenya. The study is majorly focussed on SEC A and SEC AB category as Complan is a premier product. The study was comprised of both secondary and primary research. The primary research primarily consisted of face to face survey interviews carried out in Nairobi in supermarkets and Malls. The survey carried out on 130 respondents gave deep insight into consumer perception about various nutritional and hot drinks which was used to design a positioning platform for Complan in the Kenya market. The study is aimed at understanding various macro economic factors such as retail landscape, political regime and social behaviour patterns, penetration of media which have an impact on business. In addition, the study is also aimed at understanding the consumption and buying habits of consumers.

The project also mentions the future scope of the study which can be covered in future researches.

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INTRODUCTION

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KENYA-Country Snapshot
Kenya is one of the fastest growing country in East of Africa and has the largest GDP in East and West Africa.Nairobi is the capital of Kenya which is also a very big commercial hub. For any business its important to study the macroeconomic factor which can have an impact on the business. Given below are certain factors that were studied to understand the Kenya market better. Political: Although Kenya faced communal riots post its 2007 election but the economy has fully recovered now and currently has the highest GDP and per capita income. Kenya had its general election in 2013 and Uhuru Kenyatta won the majority. Although, he is currently facing an international trial in United Nations but its outcome is not expected to have a great impact on the business conditions of the country. In addition, the country faces terrorism threat from Sudan and other neighbouring countries which are very unstable. According to Vision Humanity website, the country ranks 18th in world terrorism. Moreover, the country faces rampant corruption and ranks 139 according to transparency.org. The country also faces high energy cost and poor logistic and transport system. Economic: Kenya has a liberalized economy and is considered as Central and Eastern African commercial hub. The country has positive economic prospect as GDP is growing at 5-6%. In addition, many international companies are looking at investing in the country. The country has large pool of English speaking computer literate professional who can provide the base for growing economy. The country is looking at incorporating reforms to simplify its local and foreign investment. But there are certain downsides to the economy as well. The country is ranked 121st out of 185 economies in the 2013 World Banks Ease of Doing Business Index, down from 117th (out of 183 economies) in 2012. It is also 8th highest in Gini index on income inequality. Social: Kenya has one of the youngest population in the world where almost 43% of population is below 14 years of age. This is a great opportunity for brands that are facing tough

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competition and low consumer spending in home countries and mature economies. The country also has young working population which have high spending powers. In addition, the new age families have high disposable income and spending large amount of money on their children. Retail landscape: It is very important for any company to understand the distribution and retail structure of a country before a product launch. As per AC Nielsen report, Kenya has the highest penetration of modern retail channels like malls and supermarkets in Africa and has one of the most developed retail landscape in Sub Saharan Africa. The country has both traditional and modern channels of trade. Although, modern trade channels make just 10% of the retail channel volume, they cater to the biggest consumer spending (Kenya retail landscape, Deloitte 2011) .Kenya has many retail chains such as Nakumatt, Uchumi, Tuskys. Nakumatt is the leading chain in Kenya and is ranked 29th in Campden FB Top 50 Global Challengers List. Media Penetration: Kenya has very high media penetration and has all medium of mass communication. As per Vernacular radio report 2011, radio has the highest media penetration of 95%.There are almost 100 channels available in Kenya. Some of the popular ones are Homeboyz Radio, Hope FM, Capital FM, kass FM etc. These channels play both English and Swahili music. Each city has its own channels as well. Mobile penetration is 71% which is one of the highest in the world. Internet penetration is 28% and Africa has the 2nd highest internet speed in Africa (freedomhouse.org).Apart from that TV has 71% media penetration and print media has penetration of 48%. Nutritional trends: Due to high income inequality, the standard of food intake varies among Kenyan population. Complan targets high net worth people who can afford balanced diet, therefore, its consumers dont face many nutritional deficiencies. However, as per a report from FAO UN the most common deficiencies found in Kenya are Zinc, Vitamin A, Iron, Folic acid. Shift to Urban Cities: More and more people are shifting to cities with Nairobi the capital city seeing an increase of 17.6 % in population with total inhabitants in excess of 3 million. All major cities are seeing rise in population with people migrating from rural to urban areas. The rate of urbanization is set to grow in coming years with estimation that by 2020 around 26% (13. Million) Kenyans will be living in cities as compared to present when around 22% population live in the city.

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This will lead to higher socializing by people and increased disposable income and so the consumption of branded goods is set to increase in the future.

Introduction to Nutritional drinks

"Nutritional drink" refers to any drink or additive which contains nutritional ingredients, such as vitamins, minerals and proteins. Some brands position nutritional drink as a drink for sportsperson or people focussing on fitness while other brands promise overall development and serve as a supplementary source of vitamins and minerals. For example, vitamin C controls infection, vitamin A helps with cell growth and the production of white blood cells. Some drinks contain iron, calcium and other minerals important for healthy circulation and bones. Few of the drinks have reliable scientific evidence to support claims such as improved mental performance. Given below is general classification of hot beverages. It is divided into Tea and coffee which are the most popular hot beverages. Apart from that there are other hot drinks in the market which can be further subdivided into nutritional and fortified drinks and other drinks like cocoa and drinking chocolate.

Complan is a nutritional drink from Heinz which focuses on providing planned and balanced nutrition for growing children. According to Heinz, Complan stands for complete planned food & is milk based nutritional health beverage fortified with 23 vital nutrients in balanced proportion including 100% milk protein to help in better child growth. It is a nutrition expert and its formulation is specially designed to meet the requirements of growing children.

Nutritional drinks are also known as fortified drinks in some markets like India. As per the researchers understanding drinks like Milo, Bournvita, Horlicks and Complan fall under

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nutritional/fortified drinks whereas drinks like Cadburys cocoa, Cadburys drinking chocolate do not have any nutritional value.

Kenya Hot Drinks Market

Hot drinks in Kenya had CAGR volume growth of 5.6% for the period 2006-2011 and value growth of 9.1 %. The major brands being sold are chocolate based drinks with the highest brand share by Cadbury drinking chocolate followed by Cadbury cocoa, Milo and Raha. The table below shows the value wise share of different drinks. As can be seen, the share of Chocolate based drinks is exceptionally high as compared to non chocolate based drinks. Chocolate is the most popular and the primary flavor in a drink for Kenyans. 99.8% of the total sales of other hot drinks are chocolate based drinks. In 2011 the historical data shows that 11237 tonnes of chocolate based drinks were sold in comparison to only 15.5 tonnes of non chocolate based drinks. There has been a compounded annual growth rate of 5.56% from 2006 to 2011.

Tonnes Fig : Volume of chocolate and non chocolate based drinks sold in Kenya between 2006 and 2011
Considering the current and future trends and the macroeconomic factors, Euromonitor has forecasted the CAGR at 6.86% from 2011 to 2016. Euromonitor expects the growth rate and the popularity of chocolate based drinks to be maintained even though there are threats of rising costs of cocoa due to escalation of violence in the cocoa producing regions of Africa like Mali and Cote d Ivoire.

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Tonnes Fig : Forecast volume of chocolate and non chocolate based drinks to be sold in Kenya between 2011 and 2016 Fig : Value of chocolate and non chocolate based drinks to be sold in US dollars in Kenya between 2006 and 2011 Fig : Forecast Value of chocolate and non chocolate based drinks to be sold in US dollars in Kenya between 2011 and 201

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There are three major players in the industry Cadbury, Nestle and Excel. Cadbury is the market leader with more than 45% market share and has maintained that share for over 5 years. The major factor of its success can be attributed to the small 15gm packs of drinking chocolate and high spent on advertisements. Nestle is a distant second with 22% market share followed by Excel chemicals with 15% market share. These 3 companies have more or less maintained their dominance over the years with static growth and each protecting its market share. Major factor is a loyal customer base and innovative marketing campaigns which these 3 companies focus on. Distribution channels: The primary channel of distribution for Hot drinks is through independent retailers and supermarkets.

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RESEARCH METHODOLOGY

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2.1 OBJECTIVE OF THE STUDY

Heinz is one of the most well known brands across the world. As the matured economies of USA and Europe stagnate, the company is looking at expanding in developing economies such as India and Africa. The primary objective of this study is to make a go to market strategy for Heinzs Complan in Kenya. The first phase will be targeted at three cities (Nairobi, Kisumu, Mombasa) followed by additional three cities (Eldoret, Garissa, Nakuru ) by 2015.

OBJECTIVE:
The three primary objectives of the project are as follows: To understand the market size and opportunity sizing for nutrition drinks in Kenya. To understand and evaluate consumer behavior and competitors to decide which platform can Heinzs Complan take in Kenya market Develop a Go to market strategy for Complan in Kenya.

RESEARCH GAP:
The research aims to fulfil the following need gaps in study of hot drinks market in Kenya: Consumer demographic Brand awareness and top of mind brand recall for hot drinks. Consumer purchase behavior : Location /packaging preference/ Frequency Major motivators to purchase Behavioral pattern of milk consumption by children

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2.2 IMPORTANCE OF THE STUDY

It is imperative for Heinz to do market research before launching a product in a new market as it has to invest a lot of money in market communication and setting up of distribution channels for Complan. The study is aimed at providing market insight to Heinz regarding the market potential for nutritional drinks in Kenya which can help company take a calculated decision. The study will also form a base for further research to be done by AC Nielsen. Also the African market is unlike any other developing market as its diverse and culturally different. The project aims at understanding the various consumer segments & behaviours and developing a launch plan for Complan in Kenya.

2.3 RESEARCH DESIGN

The research design is a method adopted in the research process. The flow of the research has been given in exhibit on the side. Out of the four basic research methods - surveys, experiments, secondary data studies and observation (Zikmund, 2003), we have selected surveys, secondary data studies. Secondary Research The secondary research was targeted towards getting indepth knowledge of the nutritional drink market worldwide and specifically in emerging markets. It also included studying the current industry scenario and performing competitor analysis. The research aims to find the market potential and opportunity size for nutritional drink specifically in Kenya. The secondary research majorly included study of industry report and academic journals. Primary Research The primary research consisted of quantitative research.
Consumer analysis Industry report Academic Journals Quantitative survey Research Methodology

Secondary

Primary

Go to market strategy

Demand forecasting & market sizing

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Quantitative Research: The quantitative research consisted of face to face survey which was carried out in Nairobi. The major aim of the quantitative research was: Quantifying and validating the findings of our qualitative research Understanding consumption nd purchasing patterns. Making recommendations in terms of brand positioning and advertising of Complan in Kenya.

SAMPLING
According to Donald R. Cooper, Sample examines a portion of the target population, and the sample must be carefully selected to represent that population. The questionnaire was administered in supermarkets and mall. The sampling was done based on the following criterias. SEC A and AB based on monthly household income Mothers of children between 4-18 years. The kids should have milk and mix additive in their drinks.

Questionnaire Design
The questionnaire was designed for face to face interview. Since the survey was being done by another team in a Kenya. The questionnaire was limited to a 20 minutes interaction with the respondent. The questionnaire was primarily focussed on getting information on the consumption habits of milk by children in the SEC A category and understanding the purchase behaviour of mothers for nutritional drinks.

Data Analysis
The analysis stage involved the application of relevant statistical tools to find and validate the desired outcomes. It helped us segment different buyers on relevant factors according to their needs and wants in terms of products being used. The analysis helped us find feasible solutions to cater to the different segments and help decide marketing strategies to launch Complan in Kenya. The following tests were used in data analysis. Factor Analysis Cluster Analysis Cross tabs Perceptual mapping

Microsoft excel and SPSS software for windows was used for data analysis. B

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2.4 LITERATURE REVIEW

Food and Agricultural Organization of the United Nations (FAO) and World Health Organization (WHO) define fortification as "the practice of deliberately increasing the content of an essential micronutrient, i.e. vitamins and minerals in a food irrespective of whether the nutrients were originally in the food before processing or not to improve the nutritional quality of the food supply and to provide a public health benefit with minimal risk to health." Milk and milk based products are one of the most common fortified foods. As per Fortified/functional Beverages in India, Euro monitor International, 2011, most people feel the need for nutritional drinks to make up for the missing nutrients in their diet. Most of the people have erratic work schedules so they look for easy to consume fortified drinks .In addition; children also consume nutritional drinks for extra nutrition and also the fact that it makes milk tastier. As growing children have extra need for nutrition, Fortified drinks are made part of their daily diet. As far as brand positioning is concerned, most of the brands have an overall wellness positioning. However, brands are now focussing on ingredient branding. The leading functional ingredients are protein, vitamin, iron, calcium, iron, and omega-3. Most brands such as Bournvita, Horlicks, Complan are focused on boosting overall growth and health, improving brain health, memory, bone health. In addition, most nutritional drinks focus on boosting strength, stamina or height. Many drinks are now focusing on complete mental and physical health encompassing sharpness, alertness, stamina, physical and mental growth, memory as well as immunity. However, many nutritional drinks are being marketed only on basis of improving the taste of milk. As per Euromonitors report on Other Hot drinks-Kenya the other hot drinks market in Kenya is increasing YOY as a result of increased consumer awareness, strong marketing and new brands in the market. Chocolate based flavoured powders such as Cadbury cocoa and drinking Chocolate recorded the maximum growth in 2011.The category is expected to grow at a CAGR of 7% over the forecasted period till 2015. Some of the new trends in the nutritional drink market are introduction of small packages, increase in prices because of rise in raw material prices. In addition, many companies are investing in advertising campaigns to build awareness about the category and also their brand recall. As per Food and Agriculture Organization of United nations report Nutrition Snapshot Kenya, Almost a third of Kenya population is undernourished as the dietary energy supply is not met. The undernourishment is associated with deficiency of micronutrient such as Zinc, Iodine, Folic Acid, Vitamin A. Other important health indicators like Infant and under

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five mortality rates are stagnating and increasing respectively. Also HIV has compounded the deteriorating health standards particularly in urban area .As per three national survey carried out in 1998, 2000 and 2003 which document the nutritional status of preschool children, almost 20% of children under 5 were underweight. However, this trend was more prevalent in rural areas as compared to urban area. As per Euro monitor report on Trends in Hot drinks market, the most preferred channel for hot drinks distribution is supermarkets/hypermarkets. Consumers like shopping at these outlets since they offer wide product range and also offer price promotions. Most of the buyers purchase hot drinks along with their weekly purchase rather than impulse shopping. In addition, although consumers will keep on seeking out cheaper channels but they are not ready to compromise on quality in hot drinks. As per Deloitte report The hidden heroes-the next generation of retail markets, the consumer spending has increased in Kenya due to growing middle class, combined with demand from affluent expatriate community. 90% of national grocery sales are generated in traditional and informal sector. The biggest part of consumer spending is done in big cities like Nairobi and Mombasa which have supermarkets. The country doesnt put many restrictions on imports. Also the integration of East African community will create new opportunities for foreign investors in Kenya

In a research paper by Dharmesh Motwani and Khushbu Agarwal Customers' Behaviour in Health Food Drink Product Category that over the last few years consumers have become more health conscious. The paper discusses that better understanding of consumer perception of healthy foods and its determinants is one of the key factors for harnessing market opportunities. As per research paper by Jennifer A. ODea titled Consumption of nutritional supplements among adolescents: usage and perceived benefits, that many adolescents agreed that they obtained supplements such as vitamins and minerals from their mother. In addition many adolescents were actually unaware of the benefits of the supplements supplied by their mother; They just had a vague idea that nutrition drinks make them healthier. Most nutritional drinks are perceived to be beneficial and useful in prevention of illness. Most of the people associate nutritional drinks with short term benefits like prevention of cold, flu and cold sores. Similarly, Nowak and Crawford (Nowak and Crawford, 1998) found that adolescents recognize the importance of food in the long-term prevention of future illness, but attach more importance on short term issues such as their current looks, energy and fitness.

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TARGET CITIES
Nairobi With a population of 3.48 million as of 2013, Nairobi is the most populous in East Africa. It has the 4th largest population in Africa. It is considered the most urban and modern city in Kenya. Nairobi is considered as the political and financial center of Kenya. It has the highest literacy rate in Kenya. Male and female have a literacy rate of 90.6% and 79.7% respectively. Nairobi has the largest industrial base. There is an influx of foreign exchange due to a large community of expatriates. Standard of living is the highest in Kenya. Nairobi constitutes of 8 constituencies Makadara, Kamukunji, Starehe, Langata, Dagoretti, Westlands, Kasarani and Embakasi. Mombasa Mombasa has a population of 1.04 million as of 2013 and is the second largest City in Kenya. This city lies next to the Indian Ocean. It boasts of a major Seaport, Kilindini Harbour and an International Airport. The City is also the center of the coastal tourism. The local industries include an oil refinery. Mombasa boasts of a literacy rate of 86.1% as of 2012. The major languages spoken are Swahili and English. Kisumu This is Kenyas third largest city with a population of 1.08 million. It is one of the fastest growing cities in Kenya. It is a popular tourist destination and known for its strategic trade harbour. Kisumu has a literacy rate of 48%. Kisumu serves as a communication and trading confluence for the great lakes regions for Uganda, Tanzania, Rwanda and Burundi. Eldoret Eldoret is an industrial city with a population of 0.70 million. It is the fifth largest city in Kenya. Garissa This is a market center and commercial hub with a population of 0.69million. This is a market hub and commercial hub of the region. Nakuru With a population of 1.78 miliion, Nakuru is the fastest growing city in Africa and the 4th fastest growing city in the world. Known for agriculture, manufacturing and tourism. The population growth rate was 13% in 2011.

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ANALYSIS AND INTERPRETATION

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MARKET SIZING & OPPORTUNTY SIZING

Target Demographics According to Euromonitor, Kenyas population is relatively one of the youngest in the world. This is at the time when the many nations across the world have started gaining signs of an aging population. This is an encouraging sign for a company that is foraying into a country with a product targeted specifically at children between the age of 4 to 14 years. From 2009 to 2015, the percentage of children between the age of 4 to 14 years represent 43% of the population. Period The period at which the market sizing and demand forecasting will be calculated will be for three years from 2013 to 2015. This is a good enough period to estimate the market. The addition of cities and the impact on the overall volume and value sales can be estimated. Methods available to calculate demand forecasting and market sizing According to the book, Case in point by Marc P. Cosentino, there are three ways to segment. They are 1. Individual segmentation 2. Household segmentation 3. Population segmentation The method considered most suitable for segmentation in this scenario is Household Segmentation. Facts and considerations taken when the demand forecasting is calculated 1. According to a study of AC Nielsen of Kenya in 2011, the target income group is SEC A and SEC AB. They comprise of 11% and 9% of the total Kenyan population respectively. Together with SEC B which then comprises a total of 33% of the entire population of Kenya, these respondents together contributed 77% of the income.

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Eligible population criteria Children between the age of 4 to 14 years Belong to the SEC A and SECAB category Belong to the six target cities

ELIGIBLE POPULATION ESTIMATE - 2013 TOTAL ELIGIBLE % OF TOTAL POPULATION POPULATION POPULATION (million) (million)

CITY

NAIROBI MOMBASA KISUMU TOTAL

3.48 1.04 1.08 5.60

0.16 0.05 0.07 0.27

4.46% 4.84% 6.24% 4.87%

ELIGIBLE POPULATION ESTIMATE - 2014

ELIGIBLE POPULATION ESTIMATE - 2015 CITY TOTAL ELIGIBLE % OF TOTAL POPULATION POPULATION POPULATION (million) (million)

CITY
NAIROBI MOMBASA KISUMU NAKURU

TOTAL ELIGIBLE % OF TOTAL POPULATION POPULATION POPULATION (million) (million)

ELDORET GARISSA
TOTAL

3.58 1.07 1.10 1.83 0.72 0.71 9.01

0.16 0.05 0.07 0.11 0.04 0.05 0.48

4.46% 4.84% 6.24% 5.92% 5.98% 6.78% 5.32%

NAIROBI
MOMBASA

KISUMU NAKURU
ELDORET

GARISSA
TOTAL

3.67 1.10 1.13 1.88 0.74 0.73 9.25

0.16 0.05 0.07 0.11 0.04 0.05 0.49

4.46% 4.84% 6.24% 5.92% 5.98% 6.78% 5.32%

2. Kenyas compounded annual growth rate estimate of population is 2.67% according to World Bank. 3. Average size of a Kenyan household and population of cities received from Kenya Open data source. This is a online government of Kenya initiative wherein the city wise population estimates are maintained and updated. 4. Complan pack size 400gms 5. Annual consumption of 400gm bottles is taken in three scenarios. 12 bottles per year, 18 bottles per year and 24 bottles per year. 6. Price of a pack of 400gms Complan 650 Kenyan Shillings 7. Complan market share estimate 2013 5%, 2014 7.5%, 2015 9% The process of calculating the entire demand forecasting is as follows :1. The average household size of Kenya is taken from Kenya Open Data source. 2. Total households in Kenya are calculated from the total population received from Kenya Open Data source.

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3. The no. of households available in the segments that are our target segments i.e. SEC A and SEC AB will be calculated. 4. Estimated 50% of the target segment consumes other hot drinks. 5. Total volume consumption and value of sales from the consumption of other hot drinks 6. Estimated market share of Complan is calculated from the total sale and consumption of other hot drinks in the market. ANNUAL HOUSEHOLD CONSUMPTION YEAR 2013 2014 2015 $ ANNUAL SALES 636,980.18 $ 1,351,707.70 $ 1,779,545.39

12
MONTHLY BOTTLES 7003 14860 19564

ANNUAL HOUSEHOLD CONSUMPTION YEAR 2013 2014 2015 $ ANNUAL SALES 955,470.27 $ 2,027,561.56 $ 2,669,318.09

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MONTHLY BOTTLES 10504 22290 29345

ANNUAL HOUSEHOLD CONSUMPTION YEAR 2013 2014 2015 ANNUAL SALES $ 1,273,960.36 $ 2,703,415.41 $ 3,559,090.79

24
MONTHLY BOTTLES 14005 29720 39127

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COMPETITION ANALYSIS
The major players in hot drinks market in Kenya are as follows: Cadbury Nestle foods Excel chemicals Glaxo Smithkline

Figure shows the various company shares as per retail value in 2011.

Source: Euromonitor International

As Kenya is not a very developed market, the consumers dont have a clear understanding of nutritional drinks. The consumers feel that hot drinks such as Cadburys drinking chocolate and Milo are the same. Therefore, while studying competition it is important to study both direct and indirect competition as consumers buy both interchangeably. As Shown in Exhibit, the direct competition to Complan in Kenyan landscape is Bournvita and Milo which are nutritional drinks. The rest being the indirect competition Cadburys drinking chocolate, Cadburys Cocoa, Raha cocoa powder . As mentioned earlier, the indirect competition cannot be ignored because the differentiation between a hot drink and nutritional drink is not very clear. In the initial phase the company can target fighting against Bournvita and Milo but in the long term the company has to also keep in mind the activities being done by indirect competition such as Raha and Cadburys drinking chocolate.

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The market share of the different brands in the Kenya market for the period of 2008 till 2011 is given in the exhibit on the side.. Cadbury drinking chocolate has been the market leader since 2008 and the liking of chocolate flavour by the Kenyan masses helps Cadburys. If we see the market there has not been much change in the brand share from 2008 till 2011. Every player has been able to hold on to its market share over a 4 year period.

A closer look at the competition shows us the following picture:

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Cadbury drinking chocolate is in the price range of KSH 400 450 for 500 gm packing. The value proposition it holds is taste and the punch line is Whats in your cup? The advertising tone is an emotional appeal so as to connect with the audience. Nestle Milo is in the similar price range i.e. KSH 400-450 for 500 gm. Since its a nutritional drink the value proposition is nutrition. The punch lines of Milo is that of everyday energy drink. Excel chemicals Raha Cocoa powder is a local Kenyan brand with the punch line Reach out for Raha. The value proposition it gives is that it is one of the economical brands in the Kenyan hot drinks market selling for KSH 380 for 500 gm. Cadburys Bournvita sells for KSH 400-450 for 500 gm. The punch line is Best start for today and tomorrow. Bournvitas proposition is that it has formulation especially suited for African kids.

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CONSUMER BEHAVIOUR ANALYSIS

Sample Plan Primary research for the project was carried out in Nairobi in Kenya. A total of 130 respondents were interviewed. The target respondents were Kenyan mothers in age group of 26 39 years having kids in the age group 4-14 years. These women belonged to SEC A and SEC AB category having monthly income KSH 21000 and above. The survey was carried out by Heinz team. The different variables tested were brands, price range, packaging size, consumption patterns etc. The survey was carried in major malls of Nairobi and supermarkets like Nakumatt, Tuskys and Uchumi.

PURCHASE BEHAVIOUR FOR NUTRITIONAL DRINKS

Purchase triggers There are different purchase triggers involved in nutritional drink market. As per secondary research involved these parameters were grouped under four main heads as follows

Product Attributes Nutrient Value Growth Performance enhancer Better than hot drinks Substitute to food

Point of Sale Convenience Promotion Advertisements

Look & Feel Attractiveness Taste Packaging

Behavioural Pay Premium Loyalty Choice of children

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As we understand that no company can focus on all parameters and importance of each factor in consumers mind is different. There were total of 15 attributes. Factor analysis was performed to reduce the number of components into manageable units and to find out the most logical combination amongst them. Factor analysis reduced 15 attributes to 4 attributes.

MARKETING INFLUENCED

FUNCTIONAL UTILITY

POINT OF SALE

VARIETY

The grouped factors were names as Marketing influenced, Functional utility, Point of Sale, Variety Marketing influenced factor included the factors that product should be attractive and tasty. The consumers were loyal and were using nutritional drink as substitute for food. They were influenced by advertisements and were ready to pay a premium for the product. They also based their decision on nutrient value of the product. Functional utility included factors like energy and growth booster. The consumers wanted to purchase drinks based on children choice and looked for extra nutrients. Point of sale factors consisted of convenience and promotions. Flavours by itself was one of the major decision making factor.

Customer segment 1: Benefit Seekers As per cluster analysis in SPSS. The respondents can be divided into two consumer segments as represented by two clusters. Cluster1 is named Benefit seekers as they are

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heavily influenced by Marketing. 71 respondents belonged to this group. The second cluster is named as Early adopters. 53 respondents belonged to this group. The characteristics are mentioned below:

CLUSTER 1 BENEFIT SEEKERS

CLUSTER 2 EARLY ADOPTERS

Characteristics
75% of the respondents in this segment are 33 years and above. Around 60% of the respondents have KSH 50000 and above monthly income. 75% are working professional or business owner Respondents in this segment are ready to pay a premium for products

Characteristics
The respondents in this cluster are relatively Younger.70% respondent were in 26-39 age bracket. 60% respondents earn between KSH 21000-50,000 monthly

Most of the respondent in this group are working women (65%) Respondents in this cluster do not consider nutritional drink as food substitute.

The consumer in this segment are majorly driven by Taste & packaging. Consumers are heavy spender and can buy expensive nutritional drinks

The consumers in this segment are not loyal to any brand

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Apart from these there are major characteristics which are similar to both of the buyer groups as Both groups buy pack sizes of 500 gm and 1 kg. Both groups are driven by children choice Most consumers are Uchumi & Nakumatt visitor Most of the mothers are heavy Facebook Users

Although Consumer segment 1 is driven by marketing there are three most important factors which drive it as mentioned above. Product attractiveness and taste are two hygiene factors which any brand or nutritional drink has to offer to its consumers. Nutrient value, the third factor is a key differentiator which Complan as a product can offer to the consumers. Complan has combination of milk based nutrients; vitamin A and mix of 23 vital nutrients which makes it high in nutrient value than other hot drinks in the market like Milo and Bournvita. The second consumer segment is driven by Point of Sale factor and attributes associated with it are convenience and promotion. Convenience is the availability of the product across different malls and supermarkets. Promotion is one thing which if provided will

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attract this segment. We propose Heinz to come up with special launch price for Complan in Kenyan market so that the product is tried by this consumer segment. As we see from the driving factors for both the segments there is not much difference in consumer needs. If Complan is introduced in the market with a special promotional price, both set of consumer segments can be targeted at one go. The market has already been segmented and from the entire population a small portion of consumers qualifies as our target audience. Further segmentation of the market will not be a good idea economically. So we suggest that Complan should cater to both the consumer segments together owing to their similarities and the purchase triggers.

CHILDRENS PROFILE
While we had a look at the buyers, lets have a close look at the consumers of Complan. The children as we see are in age group of 4-14 years, prefer home cooked food and very active in sports. Sports came out as the top extracurricular activity pursued by children. Any additive they add is preferred in both hot and cold milk and and they consume milk anytime of the day.

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Children prefer additives majorly with milk. Also either hot milk is consumed or both. Preference for cold milk is rather low. Majority of children consume milk daily From this analysis we see that children prefer to have additives with milk and have milk daily so Complan cannot use Super Milk value proposition in this market as earlier believed. If children were consuming additives with water then the milk based nutrients of Complan could have been talked about in this market.

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BRAND AWARENESS
As we see from graph, in nutritional drink space Nestle Milo enjoys highest top of mind awareness. Cadbury drinking chocolate enjoys second space followed by Bournvita. Horlicks a malt based nutritional drink is another drink which fairs well in nutritional drink category. Milo has a high brand awareness as compared to competition

PERCEPTUAL MAP
Perceptual map gives an idea as to how the different brands are perceived by consumers vis a vis competition on key parameters. It also tells us as to what are the ideal values expected by consumers for those parameters.

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We did perceptual mapping as a follow up survey online on around 40 respondents who were similar in profile and behaviour as the primary research respondents. Different Brand positions can be interpreted as following: Nestle Milo: Nestle Milo is the most sought after brand with highest brand awareness. The brand is closest to the ideal point. It is one of the most trusted brands in nutritional drinks space. Bournvita: Cadbury Bournvita is considered high on trust as far as nutritional drinks are concerned. It is third closest to ideal point with respect to competition and less than Cadbury drinking chocolate. This indicates that Cadburys has not have gave a very clear nutritional drink positioning for Bournvita. Horlicks: Horlicks scores high as far as nutritional value is concerned. This shows people perceive it to be a nutritional drink with high nutritional value and in spite of having a low market share, it is able to make clear differentiation. Cadburys Cocoa Cadburys cocoa is least recognised brand in nutritional drinks category. Cadburys Drinking Chocolate: Cadbury drinking chocolate is the second closest brand to the ideal point. People perceive it best in taste. It is believed to have high nutrutinal value as well. This shows Cadbury as a market leader has not made a clear differentiation between hot drinks and nutritional drinks in minds of consumers as the brands are being sold across categories. Ideal point: Ideal point is the value which consumers typically want an ideal product to reach or meet in a particular category. Nestle Milo comes closest to ideal point. Big gap between the expectations of the people and the perceived attributes of the brand in terms of Nutritional value, growth and performance enhancer. Even the market leader Milo does not come close to meeting people expectations. This gives Complan a chance to occupy that positioning as Complan already has high nutritional value.

There were lot of interesting results and insights that we got Milo enjoys a Strong brand Equity and customer satisfaction Nestle Milo was the strongest brand that came closest to the ideal expectations of the consumers. Cadbury drinking chocolate is perceived to aid growth and have high nutritional value Cadbury has three brands in the category as Cadbuty Bournvita , Cadbury

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drinking chocolate and Cadbury cocoa both of which are in other hot drinks category. Being the market leader in this category the differentiation about what constitutes a nutritional drink and what is hot drink is not created by Cadburys. There is a need to educate the consumers about the benefits of nutritional drinks and help create differentiation between nutritional drink and hot drink.

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MARKETING PLAN FOR COMPLAN

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A new product launch in a new market needs lot of investment by a brand. Therefore its very important to design a go to market strategy keeping in mind consumer and buyer preferences and behaviour. The team based on secondary and primary research made a recommended media plan for Heinz Complan in Kenya. The plan has been divided into ATL and BTL activities. The table below highlights the various activities that the company should carry out for Complans launch in Kenya.

Media Strategies

Tactics

Budget

Internet Activities

Face book Page Website Update on Complan Promotional Offer on Face book page Complan Did you know series Contests SMS marketing App for mothers-Child Know your Complan series Complan jingles

Based on pay per click. To be done for $1000 per month

Mobile Marketing

$7000 per month $500

Radio

$6500

Billboard

Mobile van which can promote Complan by various activities. This can be placed in target areas

$12000

Internet Activities:
More and more companies are shifting focus on online advertising and activities. Internet is a very cost effective platform to interact with the customers and advertise. Most of the advertising is pay per click and can be monitored. Since Complan is targeted towards kids and their mothers from SEC A. It is a good platform to advertise on. Currently many nutritional drinks brands advertise online and have face book pages. Milo has a very active face book page in Malaysia. Few of the online activities that Heinz should take up immediately are: Face book Page: The company should create a special Kenya Facebook page. It should have activities on it such as posting interesting facts about nutritional

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requirements of children; interesting facts about Complan and why should kids have it. The company can arrange interesting contests on the page with some stationery as gifts. It can have essay writing or a photography contests. The activities can involve both mothers and kids. Word of mouth and testimonials have a strong impact on consumers and can motivate consumers to try the product. Mobile Marketing: As mentioned earlier, Mobile penetration in Kenya is one of the highest in developing nations. Though most of the handsets are not smart phones, but the company can do SMS marketing which is very affordable. But as we are targeting consumers from SEC A. Heinz can look at developing an app for mothers and kids which will help them plan their day schedule, week schedule. It has to be colourful and personal Radio: Kenya has large no. of radio channels. The table below shows the popular channel in all the three cities. The company can take slots in popular channels .The plan has been mentioned in the appendix.

Nairobi Homeboyz radio

Mombasa Kass FM

Kisumu KBC western

Kameme FM Hope FM
Capital FM Kass FM

Radio Maisha Family radio

Lake victoria Hope

Kiss 100 KAss FM

Billboards: The company can look at taking billboards or mobile vans in these three cities to raise brand awareness about Complan. The company can also

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do some activities on Mobile vans in targeted areas like schools, malls, play areas and distribute gifts and sample to others and children.

BTL Activities:
The company also needs to do series of BTL activities along with ATL activities to induce trial and increase sales in the new markets. The table below shows series of BTL activities that can be done by the company.

Media Strategies

Tactics

Budget

Mall Activation

Kids Activities Free sample distribution

$3000 ( 10 activations)

POS Activities

Display material-Shelf Stickers Pamphlet Distribution Special Gondolas GWP Promotions

To be decided with retailer

School Activities

Sponsor annual day at school Quiz contests Essay writing

$3000 (500 kids touch point-1 activity)

POS activities
Its very important to do some Point of sale activities to influence customers when they are making their final purchase. The company can rent space and put a special gondola at time of launch to increase brand awareness. As most of the African consumers are driven by free gifts or add ons. The company should definitely give a free gift initially to instigate trial Supermarkets Mombasa Tuskys Chandarana Ukwala Naivas Uchumi Nakumatt Ukwala Nakumat Nyanza Kenshop

Nairobi Nakumatt Naivas Tuskys Uchumi

Kisumu

Metro cash and carry

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Mall activities:
Supermarkets and malls are a preferred shopping destination for many high income group individuals. The company can do some games activities for children. The company can distribute free samples to induce trial.

Malls Nairobi
Sarit Centre (Westlands) Westgate Shopping Mall (Westlands) ABC Place (Westlands) Prestige Plaza (Ngong Road) Crossroads Shopping Centre (Karen) T-Mall (Langata) Junction Shopping Centre (Ngong Road) Yaya Centre (Hurlingham) Nakumatt Diani Nakumatt Nyali City Mall Nyali Nakumatt Likoni Nakumatt Diani Planet Bamburi Cinemax Plaza/Nakumatt Cinemax/Nakumatt Cineplex

Mombasa

Kisumu
Uchumi market mall Nakumatt city Nyanza mall Mega City mall United mall

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School Activities:
As Complan is targeted towards children it is very important that the company does some activities in the school. It can sponsor Annual sports day functions or can organize quiz or essay writing competition.

Schools
Braeburn runs several private schools in Nairobi, e.g. on Gitanga Road and in Garden Estate. Deutsche Schule GEMS Cambridge International School Hillcrest International School The International School Kestrel Manor School in Westlands, Potterhouse School Rosslyn Academy Rusinga School
West Nairobi School

Aga Khan Academy, Mombasa

Braeburn

Braeburn Mombasa International

Aga Khan Academy Golden Elite School Kibos Road academy Jans Academy

Mombasa Academy

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FUTURE SCOPE

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FUTURE SCOPE
One of the drawbacks of the current research was the lack of face to face interaction with consumers, buyers and retailer. The future research can include in-depth interviews with consumers and buyers which will give researchers better insight into Kenyans purchase behaviour and motivators. The researchers couldnt find city wise consumer purchasing behaviour and motivator. Moreover, all the research was carried out in Nairobi and the results have been extrapolated for other cities. Further research can take the sample size from all the target markets. The current project was focussed only on children as the main segment from Complan in Kenya and the positioning has been done accordingly. Further research can be carried out on other potential customer segments older people , families , working professionals. Research can include understanding the packaging preference of consumers plastic v.s. glass. In addition the popularity of satchets in nutritional drink segment can be assessed. Further research can be carried on to understand specifically the importance of taste in nutritional drink purchase. Future research can be done to understand the disparity in nutritional needs of different income group consumers and how it can be leveraged by nutritional drinks. Future research can include discussion with Industry and retail experts

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APPENDIX & REFERENCES

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REFERENCES
Accenture.(2012).Emerging Market EntryKeys to Success Deloitte.(2012).East Africa Private Equity Confidence Survey Promising 2012 Deloitte.(2012).Hidden heros. The next generation of retail markets Deloitte.(2012).The Rise and Rise of the African Middle Class Euromonitor International.(2012).Global milking opportunities Euromonitor International.(2011).Fortified/functional Beverages in India Euromonitor International.(2010).Milking It: Maximising Emerging Opportunities -Global Drinking Milk Products Euromonitor International.(2012).Hot Drinks India Euromonitor International.(2011). Hot drinks top trends in 2011 Euromonitor International.(2012).Hot Drinks Nigeria Euromonitor International.(2012).Other Hot Drink-Kenya Euromonitor International. (2012).Rise and rise of Africa-Deloitte Hot drinks top trends in 2011 Euromonitor International.(2012).Consumer Lifestyles - Kenya Euromonitor International.(2011).Risks and Vulnerabilities: Kenya Euromonitor International.(2012). Regional focus: Mixed prospects for Sub-Saharan Africa in 2012 Grant Hatch, Pieter Becker and Michelle van Zyl. (2012).The Dynamic African Consumer Market: Exploring Growth Opportunities in Sub-Saharan Africa IMAP.(2010).Food and Beverage Industry Global Report 2010 Jennifer A. ODea.(2002).Consumption of nutritional supplements among adolescents: usage and perceived benefits Nielsen.(2012).The Kenya Country Snapshot Usage of Milk Rider Section 01-08-2012 Nielsen.(2012).Qualitative Findings Report: Tomato Sauce Storey ML, Forshee RA, Anderson PA.(2004), Associations of Adequate Intake of Calcium with Diet, Beverage Consumption, and Demographic, Characteristics among Children and Adolescents

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Questionnaire

Good morning/afternoon/evening. My name is _____________, from a company making nutritional / hot drinks. Currently, we are conducting a survey on nutritional / hot drinks. It would be greatly appreciated if you could you kindly spare a few minutes of your time for an interview? Thank you. SECTION 1 SCREENER QUESTIONS S1 Do you have children? Yes No S2 Are your children between the age of 4 to 15 years of age? Yes No Please state your Nationality
Instruction for Interviewer : The options shown below need not be shown / stated to the respondents.

Code 1 2 Code 1 2

Route
Termin ate

Route
Termin ate

S3

Code 1 2

Route

Kenyan Others

Termin ate

Instruction for Interviewer : We would like the respondent to understand to understand the difference between a nutritional and hot drink. Kindly read out the following to the respondents.

Nutritional drinks have vitamins and proteins which give the children energy and serves the daily requirements of nutritional intake. Hot drinks are refreshments that adds flavour and taste to milk / water. S4 Do your kids consume nutritional or hot drinks ? Yes No S5 Kindly state your approx monthly household income Below KSH 14000 KSH 14001 - 21000 KSH 21001 - 35000 KSH 35001 - 52500 KSH 52501 - 70000 Code 1 2 Code 1 2 3 4 5 Route
Termin ate

Route
Termin ate Termin ate

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Above KSH 70001

SECTION I DEMOGRAPHICS
Instruction for Interviewer : Kindly make an estimate on the age group that the respondent falls in and only ask two probable age brackets they fall into.

Please tell me your age? D1 Instruction for Interviewer : The options shown below need not be shown / stated to
the respondents.

Code 1 2 3 4 5 6

Below 18 19 to 25 Years 26 to 32 years 33 to 39 years 40 and above Refused D2 What is your Occupation? Homemaker Working professional Own business Do not want to specify SECTION III CONSUMPTION / BEHAVIOURAL PATTERNS OF MILK Do your children consume milk ? M1 Instruction for Interviewer : Incase the respondent replies as 'No' please avoid
question M2 & M3.

Instruction for Interviewer : Kindly read the options shown below to the respondent.

Code 1 2 3 4

Code 1 2

Yes No M 2 How often do your children consume milk in a week ?

for Interviewer : Kindly read the options shown below to the respondent. Instruction

Code 1 2 3 4

Daily 4 to 5 times in a week 2 to 3 times in a week Once a week How do your children prefer to consume milk ?
Instruction for Interviewer : Kindly read the options shown below to the respondent.

M3

Code

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Hot Cold Both

1 2 3

SECTION IV CONSUMPTION / BEHAVIOURAL PATTERNS OF NUTRITIONAL / HOT DRINKS How do your children consume nutritional or hot drinks?
Instruction for Interviewer : Kindly read the options shown below to the respondent.

Code 1 2 3

NH 1

With water With milk Both

N H 2

Kindly state which brands come into your mind when you think of nutritional or hot drinks?
Instructions for Interviewer : The first brand that the respondent mentions should be marked in the 'first reponse'. After the first reponse, the interviewer should ask respondents for more brands for 'unaided' option. The interviewer should not mention brand names on their own.

BRAND Cadbury Bournvita Nestle Milo Cadbury Drinking Chocolate Horlicks Cadbury Cocoa Raha Cocoa Complan Raha Drinking Chocolate N H 3

First Response 1 2 3 4 5 6 7 8

Unaided 1 2 3 4 5 6 7 8

I am going to mention a few brands. Kindly say 'Yes' to the brands that you consider as nutritional drinks? [MULTIPLE CHOICE - Show the list] BRANDS Nestle Milo Cadbury Drinking Chocolate Horlicks Cadbury Cocoa Raha Cocoa CODE 1 2 4 5 6 BRANDS Cadbury Bournvita Raha Cocoa Complan Raha Drinking Chocolate CODE 7 8 9 10

N H 4

Which of the following drinks are you currently using? [MULTIPLE CHOICE - Show the list] Cadbury Bournvita Nestle Milo

Code 1 2

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Cadbury Drinking Chocolate Horlicks Cadbury Cocoa Raha Cocoa Complan Raha Drinking Chocolate Others _____________________________________________

3 4 5 6 7 8 9

N H 5

I am going to say a few statements. Kindly rate them on a scale of Strongly Agree, Agree, Neutral, Disagree & Strongly disagree. Instructions for Interviewer : If the respondent answers 'Yes'
kindly ask them again if they 'Strongly Agree' or 'Agree'. If the respondent answers 'No' kindly ask them again if they 'Disagree' or 'Strongly Disagree'.

STATEMENTS
I am willing to pay a premium for a nutritional drink which is superior in terms of nutritional value I give my children nutritional or hot drinks as a Substitute for food

Strongly Agree

Agree

Neutral

Disagree

Strongly disagree

I place a great deal of importance on Taste when I purchase a nutritional/hot drink I am loyal to a single brand of nutritional or hot drink I purchase nutritional or hot drinks when there is a promotional offer going on. My children's choice is considered when I buy my nutritional drink I check the Nutrient Value of nutritional or hot drinks before purchase I would like nutritional or hot drinks in different flavors I buy nutritional or hot beverages which look attractive on the shelves

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I buy any brand that is available as per convenience in my local store

Nutritional drinks help in my children's growth

Nutritional or hot drinks gives energy and improves performance

Children need extra nutrients apart from the daily food provided

Nutritional drinks are much better than hot drinks in terms of nutrition

Advertisements impact my choice of purchase

N H 6

When do your children consume nutritional or hot drinks ?

Instruction for Interviewer : Kindly read the options shown below to the respondent.

Code 1 2 3 4 5 6 Code 1 2 3 4 5 Code 1 2 3

Before / after school With Breakfast Before / After sports activities After dinner To replace a meal Anytime of the day What packaging size do you usually purchase?

N H 7

Instruction for Interviewer: Kindly read the options shown below to the respondent.

250 grams 500 grams 1 kg Sachets Others How many packets / tins / bottles do you purchase in a month? One Two Three

N H 8

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Four N H 9 How much do you approx spend monthly on purchase of nutritional / hot drinks? Less than KSH 100 KSH 101 200 KSH 201 300 KSH 301 500 KSH 501 and above What food does your children generally consume? N H 10
Instruction for Interviewer : Kindly read the options shown below to the respondent.

Code 1 2 3 4 5 Code 1 2 3 4

Junk food Home cooked food School cafeteria food Others

N H 11

What all extracurricular activities our your children involved in? [MULTIPLE CHOICE] Instructions for Interviewer : You can fill more than one code. In caseof 'Other'
option kindly write the answer in the blank space.

Code 1 2 3 4 5 Code 1 2 3 4 5

Sports Dance Choir Scouts Others : ______________________________________________ N H 12 Apart from children who else consumes nutritional or hot drinks in your family You Your Spouse Grandparents Everyone No one consumes nutritional drink Which Supermarket do you usually shop in? [MULTIPLE CHOICE]
Instructions for Interviewer : You can fill more than one code. In caseof 'Other' option kindly write the answer in the blank space.

N H 13

Code 1 2

Nakumatt Tuskys

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Uchumi Naivas Ukwala Others

3 4 5 6

I am going to mention a few statements. Kindly mention to which brand of nutritional / hot drink do you associate the statements with. Instructions for Interviewer : Read one statement and
ask the respondent to which brand does he/she associate the statement with.

BRAND

Nestle Milo (NH 14) 1 1 1 1 1

Cadbury Cocoa (NH 15) 2 2 2 2 2

Cadbury Drinking Chocolate (NH 16) 3 3 3 3 3

Raha Cocoa (NH 17) 4 4 4 e 4

Complan (NH 18) 5 5 5 5 5

Is Tasty Has Nutrient Value Is Value for money Has a trusted Brand Image Is liked by Children

N H 19

Which of the following brands would you recommend to others? Please mention only one Nestle Milo 1 Cadbury Bournvita Cocoa Cadbury 2 3 Cadbury Drinking Chocolate 4 Raha Cocoa 5 Raha drinking chocolate 6 Code 1 2 3 4 5 6

BRANDS

CODE

N H 20

Kindly state which social media networks do you use? [MULTIPLE CHOICE] Facebook Linkedin Youtube Yahoo Hi 5 Others : _______________________________________ THANK RESPONDENT AND CLOSE INTERVIEW

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SAFE ASSIGN