marketing of horlicks

CHOCOLATE HORLICKS

Name

: PRASHANT BHOUTIKA

Enrollment No.

: 12BSPHH010723

Section

: F

Seat Number

: 16

Course Title

: MARKETING MANAGEMENT

Product Name

: CHOCOLATE HORLICKS

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INDEX HISTORY OF THE PRODUCT ...............................................................................................................................3

TIMELINE ........................................................................................................................................................ 3 FACTS .............................................................................................................................................................. 4 EVOLUTION..................................................................................................................................................... 4 COMPETITION....................................................................................................................................................5

MAJOR COMPETITORS ...................................................................................................................................5 MARKET SHARE OF MAJOR COMPETITORS.................................................................................................... 5 MARKET LEADER IN PRODUCT CATEGORY: HORLICKS ....................................................................................6

PRODUCT ........................................................................................................................................................ 6 PACKAGING .................................................................................................................................................... 6 PRICE............................................................................................................................................................... 7 PROMOTION................................................................................................................................................... 7 ADVERTISING ......................................................................................................................................... 8 PLACE: DISTRIBUTION ....................................................................................................................................9 SWOT ANALYSIS OF HORLICKS ..................................................................................................................... 10 MARKETING MIX OF COMPETITORS ...............................................................................................................11 BOURNVITA 4P’s ........................................................................................................................................... 11 COMPLAN 4P’s.............................................................................................................................................. 13 BOOST 4P’s ................................................................................................................................................... 14

COMPARATIVE STUDY OF ALL MAJR COMPETITORS .....................................................................................15 MARKETING STRATEGIES TO GAIN UPPER MARKET STRATEGIES .................................................................16

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HISTORY OF THE PRODUCT. In 1873 James Horlick, a pharmacist with his brother William established a company J & W Horlicks in Chicago, USA to manufacture a “malted milk drink”, which claimed to promote sleep. In 18 83 they got

patent for this product. Horlicks was thus the first invented to substitute milk baby food. In 1890 the product was imported to the United Kingdom and later a factory was established in slough, Berkshire, England. Horlicks became popular during the world wars 1 and 2. The drink became popular at home and the battle front. In world war two, Horlicks tablets were sold as a candy, used as an energy booster by US, UK and other soldiers. Coming to India, Horlicks bottles were imported and sold. This was during 1930‘s. In the latter part of 1958, a plant was set up, and was named Hindustan milk food manufactures. After this the company was acquired by Beecham which later became Smithkline Beecham and finally became Glaxo SmithKline Beecham Consumer Health care ltd.

Timeline      

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1865: William and James Horlicks started the company. 1875: Business moved to Racine, Wisconsin fo rits supply of spring water. 1883: William was given a US patent for Horlicks being the first Malted milk drinks mixing powder. 1906: Factory constructed at slough UK. 1909: Horlicks became popular in North Pole and South Pole expeditions as a Provision. 1921: Death of James led the company to split, William having the Americas And the sons of James the rest of the world. 1931: “Night Starvation” was a story developed to promote Horlicks as a bed time drink. 1945: Company acquired by British Horlicks business. 1952: Horlicks was said to cure gastric ulcers and some forms of diabetes . 1960: Factory established in Punjab to make Horlicks from Buffalo Milk. 1968: Factory built in Bangladesh and Pakistan to satisfy local demand. 1975: Factory built in Andhra Pradesh. 2000: Glaxo and Smith kline merger.

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FACTS • Horlicks was first invented to substitute milk as baby food . • The brand has been endorsed by Amitabh Bachchan on the radio (1960-70), Moon Moon Sen and her daughters

Raima and Riya (1980s) and Vishwanathan Anand. • In India, over 2 billion cups of  Horlicks are drunk every year! • Biggest market is India. • 6th most tru sted brand in India (AC Nelson). • Most trusted health drink brand (Economic Times 04). • More than 50% market share in health drink market .

EVOLUTION The company believed in Growth through innovation. Previously Horlicks was imported but as the demands exceeded they set up 2 production units in India to fulfill the demands of the Indian population. This came as a solution to Indian market as a health drink. Then Horlicks entered the biscuit market and later in 1995 they came up with Junior Horlicks as a baby food supplement. Viva and Maltova were acquired by the company in 200and 2001 that increased the product range. Women’s Horlicks came into picture initially nursing mothers and then to catering specific needs of 

women. Horlicks adopted certain strategies to deal with competitors and came up with attractive packaging and various flavours. Horlicks conducted clinical trials and campaigned “Taller Stronger Sharper”. Horlicks segmented the market

to increase its market share. Horlicks focused on children to encash their increasing population. Then it launched Horlicks Lite which is specially formulated keeping in mind nutritional needs of adults and also for use by people with diabetes. Horlicks also entered the instant noodle market with Foodles and Nutribar came as a energy bar focused on the young generation, these two products were focused as a healthy solution to the existing fad market (plain maggi and energy bars). Recently Chill Dood is launched in the instant milk shake focused on children. Horlicks is also involved in several campaigns one being the ASHA project catering exclusively to the needs to the rural markets.

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COMPETITION Glaxo SmithKline Beecham’s Horlicks is the leader in the HFD marketwith the market share of over 50 %.

There are two kinds of competitors GSK face in the industry, the direct competitors and the indirect ones including the substitutes. Here the primary competitors or direct ones are very easily identifiable and very visible. Whereas the indirect ones may not be competing directly but still pose a threat to the company. The key to success being strong product innovation, marketing and the promotion efforts and distribution capabilities of the manufacturer in the HFD market GSK’s main competitors are HJ Heinz (Complan), Cadbury India(bounvita) and Nestle India (Milo). Amul has launched its new health beverage Amul Shakti in northeast India at a higher price than GlaxoSmithKline Beecham Consumer's Horlicks this year and Rasna has launched Rasna Shake UP, a presweetened milk shake mix powder increasing the competition in the HFD market. The market growth will depend on the ability of the major players to drive category penetration amongst the milk consuming masses in the North and the West as well as their ability to drive penetration amongst the lower SECs, which is currently low.

MAJOR COMPETITIORS •      

Horlicks Maltova Boost Viva Complan Bournvita Others

MARKET SHARE OF MAJOR COMPETITIORS The market size of health food drink is: Rs . 1,300 Crores. Percentage Share of Major Brands in The Health Food Drink Market:

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MARKET LEADER IN PRODUCT CATEGORY: HORLICKS PRODUCT Horlicks-a Glaxo SmithKline product occupies major share in Health food Drink segment. Horlicks is made from milk, wheat and malted barley. Pharma and healthcare company, GSK has relaunched Junior horlicks. It was realized that Horlicks was considered as a boring nourishment drink and was beginning to lose its significance. The company research showed that preference for flavours reigned higher than nutrients, and

hence, the decision to make the drink tastier and enjoyable was taken. New Horlicks with Smart Nutrients is being manufactured at the company’s modern plants in Nabha and Rajahmundry. The relaunched product contains a 'combination of nutrients that act as resistance builders' and helps 'build up the immune system of the child'. The new formulation brings about a significant improvement in this much liked health drink by incorporating vital micronutrients that are known to have a proven direct co-relation with mental sharpness and physical activeness. These are Iron, Vitamin B2, Vitamin B6, Vitamin B12, Folate and Vitamin C. It also plays a significant role in enhancing internal resistance against infections. The SBCH research team has termed these micronutrients as 'Smart Nutrients' because of their positive effect on mental sharpness and physical activeness. New Horlicks with Smart Nutrients has been scientifically formulated to provide optimal levels of these nutrients, on consumption. Two cups of New Horlicks with Smart Nutrients fully meet an individual’s daily requirement of these vital nutrients. While the product has been substantially enhanced to provide greater benefits, it continues to retain all the positive features and advantages of  the earlier formulation. This includes the unique deli cious taste that has characterized Horlicks for generations. The focus this time is not only on enhancing the nutrient values of the product but major emphasis has been given to different flavors. The company has re -launched Horlicks in three new variants — Vanilla, Honey and Chocolate — apart from the regular malt.

PACKAGING While the product packaging has been designed by Tata Elxsi, the pack designing has been done by J. Walter Thomson. The new avatar of Horlicks has the highest shelf appeal and maximum visibility. The new Horlicks formulation is accompanied by contemporary packaging in hues of bright blue and orange. It has also gone in for a packaging change with more convenient-to-handle  jars. The new jars are more convenient to handle and dispense from.

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Horlicks has substantially increased the value for money proposition for its consumers. While the product has been enhanced to provide an additional new and important benefit, it continues to retain all the positive features of its earlier formulation

PRICE The GSk has chosen the price for horlicks keeping in mind the value addition done to the product by the company along with the consumer comfortability. Horlicks is available in three SKUs — Flavors (Rs)

 Weight(gm) 200 500 1000

Elaichi

Chocolate

Honey Buzz

 Vanilla

Jar 57 108 199

Jar 57 108 -

Jar 108 -

Jar 108 -

Refill Pack 103 189

Refill Pack 103 -

The company has not gone for reducing price as they believe that Price alienation could translate into alienation with the product proposition itself. Diehard Horlicks consumers who may have moved out of the brand and learnt to live without it may not find a credible reason to go back if such a step is being taken.

PROMOTION Promotions are very important because health food drinks are generally not consi dered necessities by the majority of users. Promotions of Horlicks are done by GSK through both direct and indirect means. These involve running seminars about health concerns and health supplements.

GSK organized a seminar for doctors in Chennai stressing on the importance of nutrition during illness and convalescence.GSK is also planning to take up major initiative to increase awareness of its brands among school kids. About 1.5 million students from 3000 schools in eight cities was involved in the mega program called Activity 2003. The Activity, an organization working with schools, has announced the launch of  Horlicks Activity 2003— The Kool Skool Fest, an inter-school literary and cultural event. The event aims at encouraging the learning of `Life skills' — that are recommended by the World Health Organization for the development of individuals. Sponsored by Horlicks, the flagship brand of GlaxoSmithKline, the fest is being held in the cities such as Bangalore, Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Cochin, Pune and

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Jamshedpur. The fest will feature more than 40 different competitions in fields such as literary art, creative speaking, singing, dancing and informal events for students from 1st to 12th std. The Activity along with Horlicks will hand out scholarships to two deserving students in each city. The scholarships for the year 2003 are worth more than Rs 1, 00,000. Over and above the scholarships, Horlicks will also sponsor the complete one year education for two students who emerge as the "Mr & Ms Live WireActivity" in the personality contest during the finals.

PROMOTIONS TO CONSUMERS

Besides relying on conventional bottles, the Horlicks brand is also being aggressively pushed in the market through a mix of refill-packs and bundled gifts (like katoris). Promotions include special discounted bundled packs andPeriodic price discounts of between 5% and 10% of f the recommended retail price are also being provided by the company from time to time . PROMOTIONS TO RETAILERS A strong brand presence at retail outlets is made with impressive floor displays and value added promotions from time to time . Recently they have asked retailers to display three bottles of Horlicks

arranged in a triangular form for 45 days with a poster advertising Horlicks in the background. The rationale behind this is that bottles arranged in this fashion attract consumers’ attention. Moreover after

45 days the GSK people will conduct a lucky draw of the retailers who participated in this scheme and offer them attractive prices

 ADVERTISING The advertising account is being handled by creative agency HTA. The company has also launched a television ad campaign created by JWT featuring kids, which would be aired across channels. The TV campaign would also be accompanied by print ads and hoardings. Mothers always hope to see their children grow up strong and healthy. This age-old fact is the backbone of Horlicks communication strategy. It lays the foundation for a child’s future, hence it’s tagline: “Horlicks, nourishment for life”. In late90s its

ads reverberated through the television sets of every Indian household and they just couldn’t get it out of  their heads. Its campaign was well received by Indian mothers. Also there campaigns are still lodged in consumers’

memory.

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DISTRIBUTION Following is the distribution channel followed by GSK for Horlicks: FACTORY ► DISTRIBUTION CENTERS ► WHOLESALERS ►RETAILERS. The first link in the channel is the factory situated at Sonepat, which has been designed to produce Horlicks formulations. The Sonepat plant is of 26,000 tonnes per annum capacity. GSK has total workforce of over 3,000 people at its manufacturing plants located in Nabha and Rajahmundry. Its packing facilities are located at Hyderabad and Ballabgarh. GSK has four regional Sales Offices in the four metros which coordinate the sales, distribution and collection activities in their respective regions. The company now has 34 sales depots (one in each State), as against 28 in 1998.The product is supplied to wholesalers from over there. It has a strong marketing network in India comprising over 1,800 wholesalers and direct coverage of  over 4,25,000 retail outlets. Its wholesaler network has grown from 1,317 in 1998 to 1,800 at present. These wholesalers further supply to 425,000 retail outlets across the country.. SBCH has increased its reach over the years, which has helped it gain incremental market share. FACTORY

DISTRIBUTION CENTERS

WHOLESALERS

URBAN RETAILERS

RURAL RETAILERS

CONSUMERS

It has a strong marketing network in India comprising over 1800 wholesalers and direct coverage of over 4,00,000 retail outlets. Horlicks sales have been strong in the south and eastern markets which contributes about 46 per cent and 47 per cent of the total sales. Milkdeficient South and East preferred white liquid powders (Horlicks, Viva, and Complan) as the drink could be prepared with hot water. 9|Page

SWOT ANALYSIS OF HORLICKS SWOT is an abbreviation of Strength, Weaknesses, Opportunities and Threats. In SWOT analysis manager has to analyze external and internal business environments so as to know the potential opportunities and threats arising out of external forces and internal strengths and weaknesses that can help in deploying resources. SWOT analysis thus focuses manager's attention on core activities which can determine competitive advantage of the company and help him devise appropriate business strategy to leverage those competencies profitably. However, SWOT analysis should not be used rigidly. It should always be used coupled with continuous monitoring of the environment and market intelligence and research.

Strength 1. 2. 3. 4. 5.

Its current no 1 position in the market. Variety of product targeting different segments. Trusted brand. Health is the central idea for all the products of Horlicks. All the products of Horlicks belongs to different categories which will not kill market of its own products.

Weakness 1. Customer perceived value of Women’s Horlicks. 2. Price of Women’s Horlicks. 3. Packaging of Women’s Horlicks.

Opportunities 1. Making Nutribar individual brand without the endorsement of Horlicks. 2. Creating functional food category with the help of Nutribar. (Functional foods are those health foods like energy drinks, cereals and cereal bars which contain health promoting ingredients.) 3. The market for functional foods in India is estimated to be around Rs 1700 crores and is growing very fast.

Threats 1. Cheaper version of Horlicks that is ASHA may damage the brand. 2. Competitors may reduce price to enjoy cross price elasticity.

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MARKETING MIX OF COMPETITORS:BOURNVITA – 4P’s: PRODUCT Cadbury India Ltd launched Cadbury Bournvita, a chocolate health drink in 1947 in India. But even before launching its new health product in the Indian market, Bournvita was one of the most loved chocolate drinks around the world. Bournvita is a combination of 2 words, Brown & Vita. Brown because its brown in colour & Vita because it has lots of  vitamins. If I were to ask you all a simple question like what is Cadbury Bournvita , I am sure you would say “ Woh powder jo mummy doodh mein milati hai.” But thats not what Bournvita is all about. Its a nutritional drink which acts as a dietary supplement providing nourishment along with good taste & flavors. For today’s kids who detest milk in its pure state unless flavored, this is an ideal drink. It has its own unique flavor,

and the taste is rich and full-bodied. Its so easy to prepare, just instant mix it into your milk. Even a child can manage this for himself when he is in a hurry to run off to play! Many children I have known just scoop up a spoonful of  Bournvita fine granules into their mouth and crunch away happily…goes to prove its taste bud friendly value for kids.

Ingredients:

Malt extracts, sugar, cocoa powder, milk solids, liquid glucose, vitamins, BournVita’s nutritional facts:

1) Gives protein. 2) Provides Vitamin A, Vitamin C & Vitamin B12. 3) Contains Calcium, Iron & Folic Acid. 4) It also provides our body with Niacin, pyridoxine, Riboflavin, & Thiamin which is very essential for the proper working of our nervous system.

PACKAGING Earlier packaging was not given the kind of importance to what its gaining now. Marketers have now realized the imp ortance of packaging in today’ s competitive market. Hence they are concentrating on various aspect of packing such as the color, material used to make the package & cost. They use glass jars for packaging which do not allow moisture to get in the product and also increases its shelf life. They have also introduced the refill packs so their no problem of buying Jars every now & then. They have also worked upon the color which is now Red & Purple against the old one Brown & Yellow because kids love bright colors.

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PRICE Normally, price is the most important element in deciding the fate of any product. While purchasing any health drinks however, a housewife or a mother who is the ultimate buyer gives price secondary importance. She will carefully study the taste & nutritive values in the health drinks. I agree that Bournvita is one of the most expensive health drinks in the market (Rs.101 for 500gms) but still due to its good taste & great nutritive values it has captured the majority of the market. Weight(gm)

Jars

Refill pack

200

54

54

500

110

101

Target Market: Brown HFD’s target audience has always been kids who are in the age group of 7-15. Why a HFD targets

audience in this age group? The answer to this is very simple. Most of the children in this age group have casual eating habits and milk is like a curse for them. This is were a HFD comes into picture the work of  HFD is not only to add flavor to the milk but also act as supplement which can add nutrition to their child. The other advantage of having this segment as target market is HFD are mostly taken with milk.

PROMOTION Bournvita always comes up with consumer promotion activities from time to time e.g. giving free gifts like plastic mugs, chess game or ludo etc. They also come up with the scheme of extra Bournvita for the same price. The ads had very cleverly promoted this drink for intelligent school kids through organizing the famous Bournvita Quiz Contest between different schools. This was a fantastic gimmick on television, which had caught on so well, that even adults would spare some time to watch it without fail. The Quiz Master Derek O’ Brian was loved by all, the young and the old alike. This Advertising concept was so successful, that they even came out with the Bournvita General Knowledge Book (a mini encyclopedia). Cartoon Network and Cadbury India has announced a one-year promotional license agreement. Bournvita positions itself as a healthy and nutritious drink for kids. The first promotion is the Toon Mug offer. A 500 gram Bournvita pack comes with a mug featuring some of the best loved Cartoon Network characters. Toon buffs get a choice of over six toon mugs including The Power puff Girls, The Flintstones, Scooby-Doo, Johnny Bravo, Dexter and Tom & Jerry. The Bournvita promotion is being supported by television commercials and in-store advertising.

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COMPLAN – 4P’s: PRODUCT Complan is much more than a nutritious drink. It is a complete planned food in a deliciously flavoured drink. It is easy to prepare. Each cup of Complan contains a balanced combination of all the 23 vital nutrients your body needs every day. It is therefore an ideal supplement for those with special nutritional needs. Complan works when taken regularly every day. If you are recovering from illness, a healthy, nourishing diet is more important than ever. You may not feel up to proper meals but you all still need all the nourishment you can get to speed you on your road to recovery – and Complan can provide it.

Complan will give you all the nourishment of a complete meal in a delicious, easy-to-prepare drink or healthy cereal. Just one serving is equivalent to 250 calories – and it is fortified with 50% of the RDA of  11 essential vitamins, 25% of the RDA of vitamin A as well as 40% of the RDA of 6 minerals. In fact, Complan provides half your daily allowance of vitamins C and E as well as being an important source of iron and calcium. So, there is no surprise Complan is recommended by doctors and healthcare professionals all over India.

PRICE Complan is priced higher than other competitors because of its nutritional contents and there is no compromise on the quality of the product and price is given a second thought when it comes to health. Weight(gm) 200 500 1000

Flavour (Rs) Chocolate 68 140 245

Plain 55 120 -

Mango 60 -

Chocolate (Jar) 75 150 -

PROMOTION Complan is a very old highly nutritional drink in Indian Market and may be one of the first in this category. Hence it doesn’t require an aggressive kind of promotion techniques. Hence complan is now concentrating

on sponsorship of various sports related events and also introducing various schemes such as window display scheme etc. The various sports event it sponsored are: Complan Junior Squash Open 2002, sponsored by Heinz India Private Limited. The Complan junior Open may be the highest junior prize money tournament in India. The total value of price distributed was Rs. 2.25 lakhs. Heinz India has launched the Complan Under-15 National Cricket Talent Search, in which a galaxy of former Indian captains like Polly Umrigar, Nari Contractor, Chandu Borde, Hanumanth Singh, Bishen Singh Bedi and former Australian captain Bob Simpson, are involved. Young under-15 schoolboys from all the five zones across the country North, South, East, West and Central are being put through a rigorous regimen on the fundamentals of cricket.

PLACE Complan believes in more or less Direct Selling kind of distribution channel hence it does not have many middle man like C&F Agents, Wholesalers, Stockiest etc. this help the company to charge less to their customer and give them more or less personalize treatment. And the less no of middlemen also helps to increase the profit margin. 13 | P a g e

BOOST – 4P’s: PRODUCT Don’t let anything come between you and getting the energy and nutrients you need to get the most out

of life. A convenient way to increase your intake of protein, nutrients and calories is with a nutritionally complete supplement, like Boost. Glaxo SmithKline (GSK), the world’s leading research -based pharmaceutical and healthcare company that re-launched Boost, enriched with Power Boosters. The New Boost includes copper and Biotin in addition to existing vitamins and minerals, which leads to consistency in performance. Boost provides 50% of the daily requirement of Vitamin B1, B2, B6, B12, A, C, D, Niacin, Pantothenic acid, Biotin, Folic acid, Copper and Iron and 25% of Calcium. The vitamins and mineral not only provide adequate energy for the users but also help in the efficient working of body cells (by releasing energy from food), formulation of healthy blood and makes bones stronger.

PRICE We are charging you more if you are purchasing 200gm and comparatively lesser when you are purchasing 500gm. The tendency behind this type of pricing is when you purchase in bulk you get at lesser price. Price(Rs) Jars Refill pack 54 108 99

Weight(gm) 200 500 The New Boost includes copper and Biotin in addition to existing vitamins and minerals, which leads to

consistency in performance. Boost provides 50% of the daily requirement of Vitamin B1, B2, B6, B12, A, C, D, Niacin, Pantothenic acid, Biotin, Folic acid, Copper and Iron and 25% of Calcium. The vitamins and mineral not only provide adequate energy for the users but also help in the efficient working of body cells (by releasing energy from food), formulation of healthy blood and makes bones stronger.

PLACE South has been the major contributor in making boost one of the biggest brown powder brands in India. Today the South zone contributes as much as 80% of the Boost sales and is a household name. In markets like Chennai Boost has approximately 40  – 45% household penetration. The advertising line “ Boost is the secret of my energy ” has become an ever -present line in every household today. Southern markets had contributed significantly towards the success of the brand. Boost has grown from a market share of seven per cent in 1985 to 24 per cent in 2002.

PROMOTION Promotion campaigns such as freebies and contests also play an important role in influencing brand choice. These campaigns are mainly targeted at children who force their parents to buy these products. Free gifts like crystal jars, pet jars and sippers also attract consumers. It was Kapil Dev who was first roped in by the brand to endorse Boost in 1986, followed by Sachin in 1989  – among the earliest brands that the master-blaster endorsed. Boost’s growth as a brand is pretty much in line with the flowering of Sachin as a batsman, and from a shy kid who way back in 1989 first boyishly intoned “Boost is the secret of my energy” to a man who can face fiery pace bowlers and hostile questions hurled at him with equal aplomb  – to

Sehwag now, who will give a double boost to the brand along with Sachin. The company also announced the launch of this year’s Boost Cricket Cup, which it instituted in 1998 to promote cricket and identify talent at the grassroots level. This is now restricted to Andhra Pradesh, Tamil Nadu and Bangalore, but would be extended to the rest of the country in a year. 14 | P a g e

Comparative study of all the major competitors Horlicks vs. Complan • Heinz Complan is its nearest competitor. • Complan provides its consumers with the necessary nutrients for all round growth, but due to the fact

that Horlicks was the first to come out with various flavours, which ensured its current market position. • Horlicks has always been able to price itself lesser than the competition, thus being able to appeal to the

price conscious Indian consumer. • Complan has never reinvented its product design while Horlicks attracts the consumers (mainly childre n)

with its attractive design. Each of its products has a consumer centric design, e.g. Junior Horlicks has animalistic design to target infants, Women’s Horlicks it’s shaped as a slim healthy lady and in a feminine

red colour.

Horlicks vs. Boost  • Both brands belong to the same company. • But since boost is segmented as a chocolate energy drinks its only competition to Chocolate Horlicks . • Although boost has been promoted by important sporting personalities like Kapil Dev and Sachin

Tendulkar it is still far behind Horlicks in terms of sales. • Since Boost is an energy drink it cannot compete with a wholesome nutritional drink as Horlicks. • Boost has never given variety flavors to its consumers; it comes only in one i.e. chocolate.

Horlicks vs. Bournvita • Children always go for the tastiest option, and Cadbury

Bournvita offers two options one being Cadbury Bournvita 5 star magic and the other being Cadbury Bournvita++. • Bournvita 5 star magic offers a mix of rich chocolate and caramel flavor of the fa mous Cadbury five star. • New Bournvita ++ offers taste and essential nutrients for all round growth. • Horlicks beats Bournvita Five Star Magic by providing new flavors in chocolate vanilla honey etc • Horlicks edges over new Bournvita ++ with their sloga n “Exams ka booth bhagao”.

Horlicks vs. Viva and Maltova • Viva, though a good product i.e. it has Vita health (a combination of 9 essential vitamins, iron and

calcium) but Horlicks beats it with their superior supply network. • Even though Maltova is a y ummy chocolate drink with essential vitamins, minerals and carbohydrates,

but Horlicks scores through the brand loyalty of their customers by sponsorship of consumer interactive events like school fairs etc. 15 | P a g e

Marketing strategies to gain upper market share PRODUCT 

DIFFERENTIATION STRATEGIES: The concept is to make the product different from those of its competitor.GSK should constantly differentiate itself from the competitors on the basis of  newer products. This differentiation could be on the basis of product quality, product features, or distribution channels.

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Chocolate remains ever preferred choice of health food drink consumers irrespective of gender. So, Horlicks should focus on its chocolate flavor. GSK should go ahead with its plan to setup Vending machines to sell Horlicks as people are willing to consume Horlicks out-of-home ready to drink form. PRE-EMPTIVE MOVE: A sustainable competitive advantage can sometimes be built by a preemptive move. In the HFD it pays to go for a pre-emptive move. In case of GSK, it can go for a pre-emptive move by going in for innovative ideas as designing the product in interesting shapes or to come up with freebies as games, or a collection of a popular comic character or of pictures of a chain of events so that the completion of the series will bring a prize.

PRICE 

THE FOCUS PRICING STRATEGY: The market growth will depend on the ability of the major players to drive category penetration amongst the milk consuming masses in the North and the West as well as their ability to drive penetration amongst the lower SECs, which is currently low. Apart from this GSK has to focus it’s energy towards rural markets which have huge potentials and are highly unexploited.

PLACE 

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IMPROVING DISTRIBUTION CHANNELS: To derive success in the FMCG segment it is important to have a good distribution channel .In fact a good distribution channels guarantees a good reach to the consumer which is so vital to derive profits. .So GSK will do well to improve its distribution channels in time to build sustainable competitive advantage. In case of health food drinks the consumers are more or less loyal towards their brand. Horlicks should concentrate on tapping new customers alongwith more innovative marketing strategies while giving value to their existing customers. Horlicks has not been able to break its image of Nutritional Drink in the northern region.

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PROMOTION 

PROMOTING CHOCOLATE FLAVOUR: The white powder has become a boring flavour so GSK should promote it’s chocolate flavour as it is much more popular in the northern and western parts of 

the country. 

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PROMOTING OUTSIDE HOME CONSUMPTION: GSK should focus to build upon out of home consumption business. The company should focus upon vending machines and introduce the ready to drink pack Horlicks should work upon building such promotional programs which increase its visibility among the health food drink segment as the Bournvita enjoys the most recognized brand among the milk based health food drink category in the northern region. Horlicks should not change its positioning of Nutritional Health Drink but it should also focus on its image building as Nourishment with fun. Customers are more or less satisfied with their current brand but Horlicks should try to tap new customers as promotion and marketing strategies play a significant role in attracting new customers. People rarely shift their brands but they do so when they are being enticed by the freebies or other promotion. Parents are still the deciding force in the health food drink segment. GSK should concentrate over both segments parents and children to build equity.

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