1.

Company Background
Horlicks is made from wheat, milks and malted barley. Horlicks is widely known as an easy
to prepare malted food. It is fortified with iron and eight essential vitamins with twice as
much as calcium as fresh milk. The malting of barley through the natural process of
germination releases enzymes.

Malaysia is the third largest consumer of the brand, after India and the United Kingdom.
Coming to Malaysia, today horlicks is the best known brand in the health food drinks. The
brand enjoys the trust of generation of Malaysian mothers and this relationship has been
nurtured by the brand by fortifying the product from time to time. Today, Horlicks is the
only health drink, clinically proven to make kids taller, stronger and shaper

1.1 Horlicks cereal

New Products: With a brand new tag line “Health with taste.” Following are the new product
concept for ‘Horlicks Cereal’: This is the new concepts for the horlicks industry. It contains
vitamins and protein. The product will be available for the kids as well as for the elder
people.

1.2 Objectives
1.2.1 Quantitative
 To be able to launch new product category under 6 months of time and under a budget of
RM 1 million
 To be able to target customer base i.e. children above 8 age to 15 age and elder above 45
age.

1.2.2 Qualitative
 To study about current market about Horlicks brand in Malaysia
 To be able to launch a new product within the Horlicks sub-group
 To explore marketing strategies for the new product category under ‘Health food’ category.
 To able to use extensive promotional media strategies.

1.3 Size of the product

1. Sachets or trial pack (pouch)

2. Kids Special

2. 250 gram (jar)

3. 500 gram (jar)

1.4 Ingredients
1. Bread

2. Biscuits

3. Flavour

4. Milk products

1.4 Product categorized

1. Horlicks kid Choco-cereal:

A chocolate based cereal with vitamin and energy generating breakfast meal for kids. This
product will be a proper composition with cereal malt and chocolate delight. Along with that
this will be a 490g pack as well as 39g sachet for quick meal preparation. This will be very
nutritious and full for vitamins.

2. Horlicks multi-grain (fruity gems):

A multi-grain cereal with various fruity flavours. Multi grains like oats, wheat, millet, barley,
flax, corn and other vital grains as well as fruity gems like apple, mango, orange pulp will
make this meal very healthy and delicious. Packaging for this product will in a 490g box and
39g sachet. A smaller package will be a better for a perfect bowl full of nutritious breakfast
meal.

3. Horlicks: Diet Plus Cereal (Multi grain)

Better for health conscious consumer, this meal will be a proper source for fibre and vitamins
to those who are diet conscious. Bits of nuts and fruits will be the major source of healthy
nutrition’s. This multigrain flakes meal will be a good source of fibre, balance of vitamins
and minerals. This will help to reduce fatigue and tiredness. Especially, well formulated
combination of grainy flakes and protein will lead to strong immune system and health
maintenance.

4. Horlicks: Diet Cero-plus (Sugar free):

A complete set of fibre and nutritious meal for elder people, specifically for those who are
diabetic patients. This sugar-free cereal meal will bring essential vitamins and minerals for
the elderly consumers. The major cereals like oats, barley, wheat flakes will make this meal
and better source of diet.
2. Situation Analysis
2.1SWOT analysis
Strength:

 Horlicks has varieties in products i.e. class malt, chocolate, cardiomrn, pignuts etc.
 Excellent distribution network means that horlicks can be purchased from everywhere i.e.
super market, grocery stores etc.
 Horlicks has product for growing kids, mothers and women too.

Weakness:

 It has strong competitors.

 Its product are found only in 13 countries

Opportunities:

 Horlicks can increase its market in Europe and America.

 Diversifying into health snacks can also help the brand catch the new market.
 Different packaging will also help to increase or to inter the new market.

Threats:

 Increased competitors can reduce market share of the horlicks cereal like Complan,
Cadbury’s Bourn vita, Malt ova, Boost and Milo.
 Other companies have also produced the healthy drinks which decreased the sales of
horlicks.

2.2 Consumer Behaviours

Horlicks cereal is such a products that will help to satisfy the customer needs and demand.
The new products are produced by them as customer demanded in the market. The customer
tests are frequently changed so to meet the customer needs they are producing the products in
market.

2.3 Competitor’s analysis

The new products of horlicks cereal look both national and international market consumer.
The products are for the kids and elder age people so the products are distributed all over the
worlds at once so that the competitors will also cursed about it. The main competitors of
horlicks cereal are Kellogg’s, Nestle, Cadbury, Quaker oats and Patanjali, so the new
products are different from the other company. The company looks about its competitors then
only they had made the products to compete with other brands products at national and
international market.

2.4 Market share:

The market share of horlicks in worldwide is high. Horlicks cover 51% of market share in
world wide. In a 2015 brand equity survey by India’s “Economic time “Horlicks was ranked
as 6th most trusted brand in the country.

The new products market ration will increase because it’s the new product for the kids and
elder people. The new product will have massive sales in the market because it is new
concept or products in market. The new products will cover the whole market so that their
market share will increased better than present where they are earning today’s .

2.5 Environmental Factors:

The internal factors help to analysis employee performance in the company. The working
environment should be good so that the employee will motivate and performed best. The
company has peace working environment which help them to have good performance and
ultimately leads the market. The internal factors main factors to effects the lunching new
products in markets.
3. Strategy
3.1. Introductory Strategy

Some of the strategy for entering the market will be:-

 Advertisement with kids and elder people describing about the product benefits
 Price for the first starting 4 month will be in 50% less.
 The higher the quantity purchase higher discount will be allowed.
 One flavour will be given free as like compliment.
 Participation in international as well as national fair trade for advertisement.
 The distribution channel will be less and only two channels will be involved like
wholesaler and retailer to maintain cost.
 The reward will be given to the best distribution channel.
 Higher sell unit will be provided incentives and rewards.

3.2 Competitor’s Comparison

 Understanding the competitor’s ideas and the strategy.
 Knowing the plus point of the competitors.
 Competitors pricing will study and similar pricing will be made.
 Weakness of the competitors will be studied and then this product will be solved.

3.3 Market Segmentation

 Demographic: The customer will be divided into age i.e. 5-14 and 14-40plus.
 Both male and female will be selected.
 Geographically: the market will be divided into area wise and distribution channel will be
given responsibility.
 Social group: the product is such kind which will be suitable for every caste and region of
the people.
3.4 Target Market
 The product will be able into both international and national market.
 As the parent company is famous into different country it will be easier to them to capture
international market.
 Mainly the country like Malaysia and India will be given focused as the study shows that
this country assumes more number of cereal products.
 The rural areas will be focused for the product marketing and advertising as there is less
number of competitors.

3.5 Positioning

 As in Malaysia Horlicks is third largest country so this product will surely go in top and
can cover huge market.
 Quality will be satisfied as the parent company has loyal customers.
 Price of the product will be reasonable so that every level of people can utilize it.
 Main aim of the product “less money more benefits”
3.6 Differentiations

 The new product offers in product verities like sachets and price of the products also
different according to the product quantity.
 It’s had done the massive advertisement through the different medium so that its product
strategy is different from other. So that why there is massive sales in Malaysia and other
countries.
3.7 Unique Selling Points

 Knowledge will be provided to the customer about the benefits of the product.
 Today people prefer buying the product through online so the product will be available
from Horlicks website as well as department WebPages.
4. Sales Forecast

5. Overall quality
The brand of Horlicks is well known for its exceptional quality and product offering. This is the
reason for the success of such a huge brand image of Horlicks. Majority of children and family of a
market are well known of the brand. As the new product-line enters the market the existing
customer base will be the first to offer the new ‘Horlicks Cereals’.

As the quality of the product will assure its consumer to deliver its best in the sense of taste and
ingredients, Horlicks Cereals will provide a nutritious and healthy cereal meal to it consumer. The
combination of various multigrain ingredients and pro-vitamins will make every bit of it delicious and
refreshing. In a nutshell, Horlicks Cereals Kid’s with all new chocolate and multigrain fruity gems,
offers tasty cereal along with healthy proteins and minerals.

The second category which is targeted to the elder consumers includes the Dietary high fibre cereals
divided into two of its kinds: Horlicks cereals Diet plus and Horlicks: Cero-Plus a sugar free breakfast
cereal. Especially these products have unique combinations of healthy ingredients like flax seeds,
which is very effective for controlling heart related deficiencies, others like multi grains to provide
wide range of essential dietary fibres.

Overall the production process of the above mentioned new product-line of Horlicks Cereals will
ensure high food and safety precautions and quality control guidelines. These policies and guidelines
will be followed at each and every food preparing stages and developments. The brand of health
food which is the main motto for Horlicks will be ensured and committed for every products of
Horlicks.

6. Conclusion
As this report discuss about a new product launch of most preferred brand under health food sector
that is Horlicks. Various aspects of new product developments have been researched and discussed.
As the new product under health food category is been required, diversification in the existing
product offering is must of the study, and launch of a new product category.

The research team found out that various health drinks are available in the market, Horlicks has
been focusing on the health drinks only for years. With this report the research team has come up
with a new product line to offer its current customer base. Under the ‘Health Food’ category,
Horlicks has wide range of existing products for different age, gender and types of consumer base.
Now, with this report the research team introduces: Horlicks Cereals, a new product line with a tag
line ‘Health with taste’. In the introductory phase this new product will offer four different kinds of
breakfast cereals. First is for the Kids, with Chocolate and fruity gems and for the elder consumer
Dietary cereals namely, Horlicks cereals Diet plus and Cero-Plus a sugar free cereal.

Kellogg’s muesli, Giaa Muesli, Kelloggs Chocos, Nestlé’s KoKo Crunch are the existing competitors in
this categories. However, the ingredients and the mixture of other dietary fibres offers a whole new
tasty breakfast cereal. The overall marketing strategies is to deliver an effective value through
proper promotion and distribution channel. The brand of Horlicks is well known as well as, well-
established brand in the existing market. Henceforth, the new Horlicks Cereals will utilize this halo
effect to gain access to the share in the market.