HORLICKS Brand Dossier

Horlicks

Taller Stronger Sharper

Presented By :Sharath GhoshShyamal BhattarjeeAswin ChristiePraveen Kumar ReddyJoyeeta Sarkar

Praxis Business School

Agenda

Brand OverviewPositioning and RepositioningCompetitor Analysis Strategies Adopted

DistributionMarketingSegmentation

Market Research AnalysisRecommendations


Evolution FactsProductAnalysis

Brand Overview


135 year old brand1865 : William and James Horlicks started the company1945 : Company acquired by British Horlicks business2000 : Glaxo and Smithkline mergerConstantly involved in Line extension and brand extensionThe brand commands above 50% market share in 1300cr Indian Health Drink industryIt is dominating the Rs 2,200-crore malted food drinks (MFD) market.

Evolution


Horlicks was first invented to substitute milk as baby food

The brand has been endorsed by Amitabh Bachchan on the radio(1960-70), Vishwanathan Anand

Biggest market is India

6th most trusted brand in India (AC Nelson)

Facts


BrandExtension

LineExtension

HorlicksLite

HorlicksFlavors

Women’s Horlicks

JuniorHorlicks

Chill Doodh

Nutribar

Foodles

Product Analysis


Horlicks(1930)

JuniorHorlicks(1995)

Women'sHorlicks(1997)

HorlicksLite

(2005)

HorlicksFlavors(2003)

•Family Nourisher•Taller Stronger Sharper•Vitamins & Minerals

•Daily Quota for baby food supplement•DHA for Brain Development•A-Z nutrition

•26 vital Nutrients•Rich in Anti-Oxidants•Improves quality & quantity of breast milk

•Low Fat•High Fabre•Anti-Oxidants•Low Sucrose•Zero sugar•Zero Cholesterol

•Vanilla, Toffee, Elaichi•Chocolate Horlicks

LineExtension


Horlicks(1930)

Foodles(2010)

HorlicksBiscuit(1992)

Nutribar(2009)

Chill Doodh(2010)

•Standard & Elaichi Flavor•100% RDA•Power of Calcium

•Wheat & Nutrients•116 cal•1.2gm fat•4.7g protein•Vit. A,C & calcium

•Cereal & Multi Grain•11 nutrients•Wheat, Rice Oats & Honey•312 cal & 7.5g fat

•Instant Milk Shake•Attractive Flavors (like Chocolate)

BrandExtension


Positioning & Repositioning


Initial positioning : Malted milk drink to promote sleepRepositioned in 2003 in India : Nutritional drink to “pleasurable nourishment”New Logo : `Now Proven - Taller, Stronger, Sharper.'Junior Horlicks was positioned as a product exclusively for childrenWomen’s Horlicks Repositioned as Mother’s Horlicks (2004) & again as Women’s Horlicks (2008)Horlicks Nutribar positioned on the twin planks of health and convenience.Repositioned Maltova (2002 & 2004)


Competitor Analysis


Horlicks, 52.6

Maltova, 0.5

Boost, 12.6Viva, 0.8

Complan, 12.1

Bournvita, 17.2

Others, 4.2

Sales

Horlicks

Maltova

Boost

Viva

Complan

Bournvita

Others

Market Leader in the Health Drink Market


Viva(2001)

Maltova(2000)

Acquired from Jagatjit Industries

Horlicks beats them with a superior Supply Chain Network

Acquired them to consolidate market share

Acquisitions


Heinz Complan is its nearest competitor.

Horlicks has always been able to price itself lesser than the competition.

Horlicks attracts consumers via consumer centric packaging.

Horlicks came out with various flavours, which has ensured its current market position.

Horlicks vs Complan


Chocolate, 60Elaichi, 20

Vanilla, 12

Honey, 8

Sales

Chocolate

Elaichi

Vanilla

Honey


“Cadbury” Bournvita

Brown Powder & Milk Additive

Strong presence overall

Horlicks vs. Bournvita


Entered into the 1000 crore instant noodle market with market leader Nestle Maggi having 90% market shareIt has gone past the other small players like Nissin Foods Top Ramen, Future Groups Tasty Treat etc.

Horlicks Foodles vs. Nestle Maggi

Horlicks Nutribar vs. Mars Snickers

Horlicks beats Snickers with its strong distribution networkSnickers is tagged as a 4PM snack while Nutribar is tagged as anytime snack for hungry.Snickers have 512cals and 27g fat while Nutribar is as low as 312cals and 7.5g fat


Distribution Marketing Segmentation

Strategies Adopted


Manufacturing Unit

C & F

Super Distributer(towns <1lac pop)

Sub-Distributor(Outsourced)

Satellite

Retailer

Base Town Distributor

(towns >1lac pop)

Retailer

•2 manufacturing units : Nabha(Punjab) & Rajmundi (AP)•7 packaging Units•Rs. 10/carton•Other costs borne by company•Margin : 1.7%•Freight : 0.50•Feeds 10-15 Sub-Distributors

•Margin : 2.75%•500 units

•Margin : 2.75%•5000 units

•Supply Rural Market•Contributes 30-35% of sales

Distribution


Reached masses through the radio, by Amitabh Bachchan (1960-1970)Apang Opang Jhopang CampaignTaller Stronger Sharper Campaign: Conducted clinical trial with 869 students in HyderabadRural Campaigning: Video on wheel and Hut ActivitiesEndorsed by Vishwanathan Anand & Darsheel Safari Wiz kids an inter school fiestaPromoted by DoctorsAsha Project

Marketing


• Teenagers• Diabetic Patients• Sugar free Market

Segment

• Women• Age Group 19-50• Pregnant Women

• Baby Food Supplement

• Age Group <5• Pre School Kids

Junior Horlicks(1995)

Women’s Horlicks(1997)

Horlicks Flavors(2003)

Horlicks Lite

(2005)

Segmentation


Market Research Analysis


HypothesisInformation RequiredSampling PlanData Analysis ToolsQuestionnaire DesignResult & InferencesNet Take Away

Market research Analysis


Is the product segmentation strategy working for Horlicks ?

Attack yourself strategyWiden the Cake not the SliceProduct Awareness

Hypothesis


Are the consumers familiar with the uniqueness of the specific products?

What is the rate of consumption of different variants and also the frequency of purchase?

Are the variants used by targeted consumers for the specific purpose assigned?

Are the consumers satisfied with the product quality and do they think it as a good value for money?

Information Required


– Size : 100 Horlicks consumer families– Region : Kolkata

– Pie Chart : To represent the above in a pictorial form showing the segmentation.

– Bar Diagram : To show the difference between the core product and its variants.

– Report : To summarise the above two pictorial tools.

Sampling Plan

Data Analysis Tools


Stressed on the number of target consumers in each family

Product awareness based on its features

Purchase frequency on a monthly basis

Repeat purchase and the factors resulting in the same

Questionnaire Design


Result &

Inferences

Marketing strategy of GSK for the variants of Horlicks has

been successful and they have managed to widen the Horlicks

umbrella.


Product awareness (variants)

The promotion strategy of GSK has been able to convey the

USP of each variants


Product awareness (feature)

•Main product Horlicks have wide acceptance among age groups•The attributes of each variants have found acceptance from their respective target audience•For Junior Horlicks the trend have stretched out to the next age group


Use of variant’s

•The main product is purchased on regular basis•The variants have followed the same trend•The products have successfully come to the homemaker’s shopping list


Purchase frequency

Variants

Uni

ts/m

onth

•Consumer Loyalty : 91%•Of the 4 attributes benefits and brand are the key ones that encourage consumers for the purchase of the product•The only exception being Chocolate Horlicks whose attribute is taste.


Consumer Feedback


Segmentation of Horlicks has been successful.

Different variants are gradually making their way to become leaders in their respective segments.

Awareness successfully generated in the consumer mind.

Have successfully read the consumers and designed the variants for each group.

Net Take Away


Recommendations


Promote Milk Consumption Campaign

Bring back Vending Machines to the basket

Could attach the brand name with Sports events & Olympiads

Try promoting other brands with the main product line

Introducing ready-to-drink Horlicks sachets

Diversifying the usage of its different variants “Health Drink to Beverages”


Thank You

HORLICKS Brand Dossier

Documents

british horlicks business

school fiesta

g g e d

i n e tw o rk n

s n icke rs h

i n e h o rl cks b e

h rlic s o

ck fo r h u n g