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marketing of horlicks

marketing of horlicks

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Marketing Mix of Horlicks and its competitors.
Marketing Mix of Horlicks and its competitors.

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Published by: Ravi Pareek on Feb 17, 2013
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CHOCOLATE HORLICKS

Name Enrollment No. Section Seat Number Course Title Product Name
1|Page

: PRASHANT BHOUTIKA : 12BSPHH010723 :F : 16 : MARKETING MANAGEMENT : CHOCOLATE HORLICKS

.................................................................................... 8 PLACE: DISTRIBUTION ..................................................... 5 MARKET LEADER IN PRODUCT CATEGORY: HORLICKS ............. 13 BOOST 4P’s .......................................................................... 6 PRODUCT ............................................................................................................................................................................................................................................................................................................................................................................................................................... 11 COMPLAN 4P’s..................................... 6 PRICE........................................................................................................... 5 MAJOR COMPETITORS .............................................. 16 2|Page .................................................................................................................................................... 11 BOURNVITA 4P’s ....................................................................... 4 COMPETITION ..................... 4 EVOLUTION.................................................................................................... 3 FACTS .................................................................................................... 7 PROMOTION ...................................................................................................................................................................................................................... 15 MARKETING STRATEGIES TO GAIN UPPER MARKET STRATEGIES ...............................................................INDEX HISTORY OF THE PRODUCT ................................................................................. 10 MARKETING MIX OF COMPETITORS ................................... 3 TIMELINE ................................................................................................. 6 PACKAGING ............................................................................................. 9 SWOT ANALYSIS OF HORLICKS ........ 7 ADVERTISING ................................................................... 14 COMPARATIVE STUDY OF ALL MAJR COMPETITORS ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 5 MARKET SHARE OF MAJOR COMPETITORS........................................................................................................................................................................................................................................................................................................................

a plant was set up. Horlicks bottles were imported and sold. In world war two. In 1890 the product was imported to the United Kingdom and later a factory was established in slough. Horlicks tablets were sold as a candy. After this the company was acquired by Beecham which later became Smithkline Beecham and finally became Glaxo SmithKline Beecham Consumer Health care ltd. In the latter part of 1958. The drink became popular at home and the battle front. 1875: Business moved to Racine. Coming to India. Wisconsin fo rits supply of spring water. and was named Hindustan milk food manufactures. 2000: Glaxo and Smith kline merger. Berkshire. UK and other soldiers.HISTORY OF THE PRODUCT. Horlicks was thus the first invented to substitute milk baby food. This was during 1930‘s. 1968: Factory built in Bangladesh and Pakistan to satisfy local demand. 1921: Death of James led the company to split. used as an energy booster by US. 1960: Factory established in Punjab to make Horlicks from Buffalo Milk. 1906: Factory constructed at slough UK. In 1873 James Horlick. 1883: William was given a US patent for Horlicks being the first Malted milk drinks mixing powder. Timeline              1865: William and James Horlicks started the company. USA to manufacture a “malted milk drink”. which claimed to promote sleep. 3|Page . William having the Americas And the sons of James the rest of the world. In 1883 they got patent for this product. 1975: Factory built in Andhra Pradesh. 1931: “Night Starvation” was a story developed to promote Horlicks as a bed time drink. 1909: Horlicks became popular in North Pole and South Pole expeditions as a Provision. 1952: Horlicks was said to cure gastric ulcers and some forms of diabetes . Horlicks became popular during the world wars 1 and 2. 1945: Company acquired by British Horlicks business. a pharmacist with his brother William established a company J & W Horlicks in Chicago. England.

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. • 6th most trusted brand in India (AC Nelson). Moon Moon Sen and her daughters Raima and Riya (1980s) and Vishwanathan Anand. Horlicks segmented the market to increase its market share. Recently Chill Dood is launched in the instant milk shake focused on children. EVOLUTION The company believed in Growth through innovation. • Most trusted health drink brand (Economic Times 04).FACTS • Horlicks was first invented to substitute milk as baby food. Horlicks focused on children to encash their increasing population. 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. Viva and Maltova were acquired by the company in 200and 2001 that increased the product range. This came as a solution to Indian market as a health drink. Horlicks is also involved in several campaigns one being the ASHA project catering exclusively to the needs to the rural markets. these two products were focused as a healthy solution to the existing fad market (plain maggi and energy bars). Horlicks conducted clinical trials and campaigned “Taller Stronger Sharper”. Then it launched Horlicks Lite which is specially formulated keeping in mind nutritional needs of adults and also for use by people with diabetes. 4|Page . • In India. Horlicks also entered the instant noodle market with Foodles and Nutribar came as a energy bar focused on the young generation. Then Horlicks entered the biscuit market and later in 1995 they came up with Junior Horlicks as a baby food supplement. • The brand has been endorsed by Amitabh Bachchan on the radio (1960-70). • More than 50% market share in health drink market. over 2 billion cups of Horlicks are drunk every year! • Biggest market is India.

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). 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. which is currently low. 1.COMPETITION Glaxo SmithKline Beecham’s Horlicks is the leader in the HFD marketwith the market share of over 50%. the direct competitors and the indirect ones including the substitutes. 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. Percentage Share of Major Brands in The Health Food Drink Market: 5|Page . Here the primary competitors or direct ones are very easily identifiable and very visible. Cadbury India(bounvita) and Nestle India (Milo).300 Crores. MAJOR COMPETITIORS •       Horlicks Maltova Boost Viva Complan Bournvita Others MARKET SHARE OF MAJOR COMPETITIORS The market size of health food drink is: Rs. There are two kinds of competitors GSK face in the industry. a presweetened milk shake mix powder increasing the competition in the HFD market. Whereas the indirect ones may not be competing directly but still pose a threat to the company.

Vitamin B6. The company has re-launched Horlicks in three new variants — Vanilla. Vitamin B2. Folate and Vitamin C. the decision to make the drink tastier and enjoyable was taken. These are Iron. The company research showed that preference for flavours reigned higher than nutrients. It has also gone in for a packaging change with more convenient-to-handle jars. wheat and malted barley. Horlicks is made from milk. Vitamin B12. New Horlicks with Smart Nutrients is being manufactured at the company’s modern plants in Nabha and Rajahmundry. 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. on consumption. PACKAGING While the product packaging has been designed by Tata Elxsi. The new avatar of Horlicks has the highest shelf appeal and maximum visibility. Walter Thomson.MARKET LEADER IN PRODUCT CATEGORY: HORLICKS PRODUCT Horlicks-a Glaxo SmithKline product occupies major share in Health food Drink segment. While the product has been substantially enhanced to provide greater benefits. Honey and Chocolate — apart from the regular malt. Two cups of New Horlicks with Smart Nutrients fully meet an individual’s daily requirement of these vital nutrients. New Horlicks with Smart Nutrients has been scientifically formulated to provide optimal levels of these nutrients. The focus this time is not only on enhancing the nutrient values of the product but major emphasis has been given to different flavors. It also plays a significant role in enhancing internal resistance against infections. This includes the unique delicious taste that has characterized Horlicks for generations. The new Horlicks formulation is accompanied by contemporary packaging in hues of bright blue and orange. The SBCH research team has termed these micronutrients as 'Smart Nutrients' because of their positive effect on mental sharpness and physical activeness. The new jars are more convenient to handle and dispense from. The relaunched product contains a 'combination of nutrients that act as resistance builders' and helps 'build up the immune system of the child'. 6|Page . It was realized that Horlicks was considered as a boring nourishment drink and was beginning to lose its significance. and hence. GSK has relaunched Junior horlicks. the pack designing has been done by J. Pharma and healthcare company. it continues to retain all the positive features and advantages of the earlier formulation.

These involve running seminars about health concerns and health supplements. Sponsored by Horlicks. the fest is being held in the cities such as Bangalore. Pune and 7|Page . While the product has been enhanced to provide an additional new and important benefit. an inter-school literary and cultural event. Kolkata.Horlicks has substantially increased the value for money proposition for its consumers. the flagship brand of GlaxoSmithKline. Delhi. GSK organized a seminar for doctors in Chennai stressing on the importance of nutrition during illness and convalescence. Chennai. PROMOTION Promotions are very important because health food drinks are generally not considered necessities by the majority of users. Cochin. The event aims at encouraging the learning of `Life skills'— that are recommended by the World Health Organization for the development of individuals. Hyderabad.GSK is also planning to take up major initiative to increase awareness of its brands among school kids.5 million students from 3000 schools in eight cities was involved in the mega program called Activity 2003. has announced the launch of Horlicks Activity 2003— The Kool Skool Fest. Promotions of Horlicks are done by GSK through both direct and indirect means. Horlicks is available in three SKUs — Flavors (Rs) Elaichi Chocolate Honey Buzz Vanilla Weight(gm) 200 500 1000 Jar 57 108 199 Refill Pack 103 189 Jar 57 108 - Refill Pack 103 - Jar 108 - Jar 108 - The company has not gone for reducing price as they believe that Price alienation could translate into alienation with the product proposition itself. an organization working with schools. Mumbai. About 1. 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. The Activity. 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.

nourishment for life”. This age-old fact is the backbone of Horlicks communication strategy. hence it’s tagline: “Horlicks. Over and above the scholarships. The company has also launched a television ad campaign created by JWT featuring kids. Mothers always hope to see their children grow up strong and healthy. which would be aired across channels. 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 rationale behind this is that bottles arranged in this fashion attract consumers’ attention. Also there campaigns are still lodged in consumers’ memory.Jamshedpur. The scholarships for the year 2003 are worth more than Rs 1. dancing and informal events for students from 1st to 12th std. PROMOTIONS TO CONSUMERS Besides relying on conventional bottles. singing. creative speaking. Its campaign was well received by Indian mothers.000. 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. 8|Page . It lays the foundation for a child’s future. The Activity along with Horlicks will hand out scholarships to two deserving students in each city. 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 include special discounted bundled packs andPeriodic price discounts of between 5% and 10% off the recommended retail price are also being provided by the company from time to time. The TV campaign would also be accompanied by print ads and hoardings. the Horlicks brand is also being aggressively pushed in the market through a mix of refill-packs and bundled gifts (like katoris). PROMOTIONS TO RETAILERS A strong brand presence at retail outlets is made with impressive floor displays and value added promotions from time to time. The fest will feature more than 40 different competitions in fields such as literary art. 00. In late90s its ads reverberated through the television sets of every Indian household and they just couldn’t get it out of their heads.

800 at present. It has a strong marketing network in India comprising over 1. 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 4.000 people at its manufacturing plants located in Nabha and Rajahmundry. These wholesalers further supply to 425.The product is supplied to wholesalers from over there. Viva. which has been designed to produce Horlicks formulations. Its packing facilities are located at Hyderabad and Ballabgarh.. GSK has total workforce of over 3. SBCH has increased its reach over the years. Its wholesaler network has grown from 1.25.DISTRIBUTION Following is the distribution channel followed by GSK for Horlicks: FACTORY ► DISTRIBUTION CENTERS ► WHOLESALERS ►RETAILERS.000 retail outlets.000 tonnes per annum capacity. The company now has 34 sales depots (one in each State).800 wholesalers and direct coverage of over 4. as against 28 in 1998. The first link in the channel is the factory situated at Sonepat.317 in 1998 to 1. GSK has four regional Sales Offices in the four metros which coordinate the sales. The Sonepat plant is of 26. 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. distribution and collection activities in their respective regions.00.000 retail outlets across the country.000 retail outlets. Milkdeficient South and East preferred white liquid powders (Horlicks. 9|Page . and Complan) as the drink could be prepared with hot water. which has helped it gain incremental market share.

Strength 1. Price of Women’s Horlicks. 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. It should always be used coupled with continuous monitoring of the environment and market intelligence and research. Variety of product targeting different segments. 2. Health is the central idea for all the products of Horlicks. Making Nutribar individual brand without the endorsement of Horlicks. Opportunities 1. Opportunities and Threats. Customer perceived value of Women’s Horlicks. However.) 3. Cheaper version of Horlicks that is ASHA may damage the brand. The market for functional foods in India is estimated to be around Rs 1700 crores and is growing very fast. 2. All the products of Horlicks belongs to different categories which will not kill market of its own products. (Functional foods are those health foods like energy drinks. 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. Creating functional food category with the help of Nutribar. 3. 5. Competitors may reduce price to enjoy cross price elasticity. Trusted brand. Threats 1.SWOT ANALYSIS OF HORLICKS SWOT is an abbreviation of Strength. cereals and cereal bars which contain health promoting ingredients. 4. Weaknesses. 3. 2. Weakness 1. Packaging of Women’s Horlicks. SWOT analysis should not be used rigidly. 2. 10 | P a g e . Its current no 1 position in the market.

liquid glucose. Bournvita was one of the most loved chocolate drinks around the world. It has its own unique flavor.” But thats not what Bournvita is all about. They use glass jars for packaging which do not allow moisture to get in the product and also increases its shelf life. If I were to ask you all a simple question like what is Cadbury Bournvita. pyridoxine. milk solids. a chocolate health drink in 1947 in India. vitamins. just instant mix it into your milk.MARKETING MIX OF COMPETITORS:BOURNVITA – 4P’s: PRODUCT Cadbury India Ltd launched Cadbury Bournvita. sugar. They have also introduced the refill packs so their no problem of buying Jars every now & then. BournVita’s nutritional facts: 1) Gives protein. Its a nutritional drink which acts as a dietary supplement providing nourishment along with good taste & flavors. Ingredients: Malt extracts. I am sure you would say “Woh powder jo mummy doodh mein milati hai. material used to make the package & cost. Brown because its brown in colour & Vita because it has lots of vitamins. 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. Its so easy to prepare. this is an ideal drink. But even before launching its new health product in the Indian market. Vitamin C & Vitamin B12. Iron & Folic Acid. Brown & Vita. They have also worked upon the color which is now Red & Purple against the old one Brown & Yellow because kids love bright colors. Riboflavin. Marketers have now realized the importance of packaging in today’s competitive market. and the taste is rich and full-bodied. Hence they are concentrating on various aspect of packing such as the color. For today’s kids who detest milk in its pure state unless flavored. 4) It also provides our body with Niacin. PACKAGING Earlier packaging was not given the kind of importance to what its gaining now. cocoa powder. Bournvita is a combination of 2 words. & Thiamin which is very essential for the proper working of our nervous system. 11 | P a g e . 3) Contains Calcium. 2) Provides Vitamin A.

The Flintstones. A 500 gram Bournvita pack comes with a mug featuring some of the best loved Cartoon Network characters.101 for 500gms) but still due to its good taste & great nutritive values it has captured the majority of the market. Dexter and Tom & Jerry. I agree that Bournvita is one of the most expensive health drinks in the market (Rs. giving free gifts like plastic mugs. Weight(gm) 200 500 Jars 54 110 Refill pack 54 101 Target Market: Brown HFD’s target audience has always been kids who are in the age group of 7-15. Toon buffs get a choice of over six toon mugs including The Power puff Girls. the young and the old alike. Johnny Bravo.g. 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. that they even came out with the Bournvita General Knowledge Book (a mini encyclopedia). They also come up with the scheme of extra Bournvita for the same price. This was a fantastic gimmick on television. Why a HFD targets audience in this age group? The answer to this is very simple. 12 | P a g e . Cartoon Network and Cadbury India has announced a one-year promotional license agreement. She will carefully study the taste & nutritive values in the health drinks. a housewife or a mother who is the ultimate buyer gives price secondary importance. that even adults would spare some time to watch it without fail. The Quiz Master Derek O’Brian was loved by all. Most of the children in this age group have casual eating habits and milk is like a curse for them. The Bournvita promotion is being supported by television commercials and in-store advertising.PRICE Normally. Scooby-Doo. While purchasing any health drinks however. This Advertising concept was so successful. The first promotion is the Toon Mug offer. 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. which had caught on so well. Bournvita positions itself as a healthy and nutritious drink for kids. price is the most important element in deciding the fate of any product. chess game or ludo etc. The ads had very cleverly promoted this drink for intelligent school kids through organizing the famous Bournvita Quiz Contest between different schools.

Young under-15 schoolboys from all the five zones across the country North. Nari Contractor.COMPLAN – 4P’s: PRODUCT Complan is much more than a nutritious drink. there is no surprise Complan is recommended by doctors and healthcare professionals all over India. It is a complete planned food in a deliciously flavoured drink. 25% of the RDA of vitamin A as well as 40% of the RDA of 6 minerals. So. The various sports event it sponsored are: Complan Junior Squash Open 2002. Hanumanth Singh. Bishen Singh Bedi and former Australian captain Bob Simpson. Each cup of Complan contains a balanced combination of all the 23 vital nutrients your body needs every day. In fact. a healthy.25 lakhs. Wholesalers. 13 | P a g e . Complan works when taken regularly every day. South. East. And the less no of middlemen also helps to increase the profit margin. sponsored by Heinz India Private Limited. Stockiest etc. Hence it doesn’t require an aggressive kind of promotion techniques. are involved. The total value of price distributed was Rs. West and Central are being put through a rigorous regimen on the fundamentals of cricket. If you are recovering from illness. Flavour (Rs) Chocolate 68 140 245 Weight(gm) 200 500 1000 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. It is therefore an ideal supplement for those with special nutritional needs. nourishing diet is more important than ever. in which a galaxy of former Indian captains like Polly Umrigar. 2. Chandu Borde. The Complan junior Open may be the highest junior prize money tournament in India. this help the company to charge less to their customer and give them more or less personalize treatment. easy-to-prepare drink or healthy cereal. 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. Hence complan is now concentrating on sponsorship of various sports related events and also introducing various schemes such as window display scheme etc. Complan provides half your daily allowance of vitamins C and E as well as being an important source of iron and calcium. 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. 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. It is easy to prepare. Complan will give you all the nourishment of a complete meal in a delicious. Heinz India has launched the Complan Under-15 National Cricket Talent Search. Just one serving is equivalent to 250 calories – and it is fortified with 50% of the RDA of 11 essential vitamins.

B12. Niacin. Boost’s growth as a brand is pretty much in line with the flowering of Sachin as a batsman. B6. B2. PRICE We are charging you more if you are purchasing 200gm and comparatively lesser when you are purchasing 500gm. followed by Sachin in 1989 – among the earliest brands that the master-blaster endorsed. PLACE South has been the major contributor in making boost one of the biggest brown powder brands in India. pet jars and sippers also attract consumers. A. Folic acid. Southern markets had contributed significantly towards the success of the brand. like Boost. This is now restricted to Andhra Pradesh. 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). Boost provides 50% of the daily requirement of Vitamin B1. Today the South zone contributes as much as 80% of the Boost sales and is a household name. Weight(gm) 200 500 Price(Rs) Jars Refill pack 54 108 99 The New Boost includes copper and Biotin in addition to existing vitamins and minerals. 14 | P a g e . C. Copper and Iron and 25% of Calcium. The advertising line “Boost is the secret of my energy” has become an ever-present line in every household today. The tendency behind this type of pricing is when you purchase in bulk you get at lesser price. Biotin. enriched with Power Boosters. Glaxo SmithKline (GSK). It was Kapil Dev who was first roped in by the brand to endorse Boost in 1986. A convenient way to increase your intake of protein. B12. Boost has grown from a market share of seven per cent in 1985 to 24 per cent in 2002. B2. 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). Biotin. In markets like Chennai Boost has approximately 40 – 45% household penetration. nutrients and calories is with a nutritionally complete supplement. These campaigns are mainly targeted at children who force their parents to buy these products. D. D. Boost provides 50% of the daily requirement of Vitamin B1. PROMOTION Promotion campaigns such as freebies and contests also play an important role in influencing brand choice. B6. C.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. Pantothenic acid. Pantothenic acid. The company also announced the launch of this year’s Boost Cricket Cup. Copper and Iron and 25% of Calcium. Folic acid. Free gifts like crystal jars. but would be extended to the rest of the country in a year. formulation of healthy blood and makes bones stronger. which leads to consistency in performance. Tamil Nadu and Bangalore. formulation of healthy blood and makes bones stronger. The New Boost includes copper and Biotin in addition to existing vitamins and minerals. which leads to consistency in performance. the world’s leading research-based pharmaceutical and healthcare company that re-launched Boost. which it instituted in 1998 to promote cricket and identify talent at the grassroots level. 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. A. Niacin.

Viva and Maltova • Viva.e. Women’s Horlicks it’s shaped as a slim healthy lady and in a feminine red colour. • But since boost is segmented as a chocolate energy drinks its only competition to Chocolate Horlicks. Horlicks vs. but Horlicks scores through the brand loyalty of their customers by sponsorship of consumer interactive events like school fairs etc. thus being able to appeal to the price conscious Indian consumer. Horlicks vs. chocolate.e. Junior Horlicks has animalistic design to target infants. it has Vita health (a combination of 9 essential vitamins. it comes only in one i.Comparative study of all the major competitors Horlicks vs. • Horlicks has always been able to price itself lesser than the competition. • Complan provides its consumers with the necessary nutrients for all round growth. • Even though Maltova is a yummy chocolate drink with essential vitamins. 15 | P a g e . • Horlicks beats Bournvita Five Star Magic by providing new flavors in chocolate vanilla honey etc • Horlicks edges over new Bournvita ++ with their slogan “Exams ka booth bhagao”. Boost • Both brands belong to the same company. • Since Boost is an energy drink it cannot compete with a wholesome nutritional drink as Horlicks. • Bournvita 5 star magic offers a mix of rich chocolate and caramel flavor of the famous Cadbury five star. though a good product i. • New Bournvita ++ offers taste and essential nutrients for all round growth. Complan • Heinz Complan is its nearest competitor. iron and calcium) but Horlicks beats it with their superior supply network. • Boost has never given variety flavors to its consumers. which ensured its current market position. Bournvita • Children always go for the tastiest option. • Complan has never reinvented its product design while Horlicks attracts the consumers (mainly children) with its attractive design. Horlicks vs.g. Each of its products has a consumer centric design. and Cadbury Bournvita offers two options one being Cadbury Bournvita 5 star magic and the other being Cadbury Bournvita++. • 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. minerals and carbohydrates. e. but due to the fact that Horlicks was the first to come out with various flavours.

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.GSK should constantly differentiate itself from the competitors on the basis of newer products. In case of health food drinks the consumers are more or less loyal towards their brand. So. 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. Apart from this GSK has to focus it’s energy towards rural markets which have huge potentials and are highly unexploited. which is currently low. Chocolate remains ever preferred choice of health food drink consumers irrespective of gender. Horlicks should focus on its chocolate flavor. product features. In case of GSK.So GSK will do well to improve its distribution channels in time to build sustainable competitive advantage. PLACE  IMPROVING DISTRIBUTION CHANNELS: To derive success in the FMCG segment it is important to have a good distribution channel . In the HFD it pays to go for a pre-emptive move.Marketing strategies to gain upper market share PRODUCT  DIFFERENTIATION STRATEGIES: The concept is to make the product different from those of its competitor. Horlicks should concentrate on tapping new customers alongwith more innovative marketing strategies while giving value to their existing customers. 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. Horlicks has not been able to break its image of Nutritional Drink in the northern region. or distribution channels.   16 | P a g e . . PRE-EMPTIVE MOVE: A sustainable competitive advantage can sometimes be built by a preemptive move. This differentiation could be on the basis of product quality.In fact a good distribution channels guarantees a good reach to the consumer which is so vital to derive profits.    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.

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. People rarely shift their brands but they do so when they are being enticed by the freebies or other promotion.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.       17 | P a g e . GSK should concentrate over both segments parents and children to build equity. 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. Horlicks should not change its positioning of Nutritional Health Drink but it should also focus on its image building as Nourishment with fun. PROMOTING OUTSIDE HOME CONSUMPTION: GSK should focus to build upon out of home consumption business. Parents are still the deciding force in the health food drink segment.

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