MARKETING

MANAGEMENT
INDIVIDUAL ASSIGNMENT

DAVID AUGUSTINE
MBA A
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 HORLICKS – MALT MILK DRINK

Introduction
Horlicks is a sweet malted milk hot drink developed by founders James and
William Horlicks.it was sold as “Horlicks and infant invalids foods”, soon
adding “aged and travellers” to their label.in the early 20th century it was sold as
powdered meal replacement drink mix.it was then marketed as a nutritional
supplement and manufactured by GlaxoSmithKline in the United kingdom,
Malaysia ,India, Srilanka ,Australia, Hong Kong, New Zealand & Jamaica
On 3rd December Unilever bought Horlicks for US$3.8billion
The main ingredient is a mixture of wheat flour and malted wheat, followed by
malted barley, as of 2019 it also includes dried whey, calcium carbonate, dried
skimmed milk, sugar, palm oil, salt, Anti-Caking Agent, and a mixture of
vitamins and minerals the formulation may vary slightly in different countries.
For instance, the Indian formulation does not contain oil, but does contain soy
protein isolate
Horlicks came to India with the British Army; the end of World War I saw
Indian soldiers of British Indian Army bringing it back with them as a dietary
supplement. India, where it has traditionally been marketed as The Great Family
Nourisher, is the largest market for Horlicks. The Indian formulation for
Horlicks is slightly different than in most other countries, as there it is
manufactured from buffalo milk rather than cow’s milk
In recent years, there has been an increase in the scope of the brand in India. By
pushing it to newer segments of the market. In 2010, Horlicks accounted for
85% of the ₹23.06 billion (US$320 million) revenue of GlaxoSmithKline in
India. It is currently the most widely consumed packaged beverage in India,
after bottled water

PRODUCT DETAILS
Horlicks is developed and formulated to be a power packed drink with 23 vital
and important nutrients for growth and development.it contains essential
nutrients such as vitamin A, vitamin B1, Vitamin b2, Iron, Folic acid etc.
Horlicks is available in four different flavours Classic malt, Chocolate, Elaichi,
Kesar Badam. It is made available into the market for different age groups it is
available for toddlers, growing kids, women and mothers. Horlicks introduces
their product with taglines “taller, stronger and sharper”, Everyday growth
everyday Horlicks ‘stay strong’etc.

Segmentation and target market segments

Its is the process of dividing a market of potential customers into groups or

segments based on different characteristics. Horlicks has segmented their malt
drink based on demographic and geographic variants. they are segmenting their
market by concentrating on People looking for a healthy drink with milk. It is
targeting urban kids and families from the middle and upper class
Geographic segmentation:
In the northern part of the country, there is a huge demand for Horlicks as a
white drink whereas chocolate Horlicks is very popular in southern parts of the
country.so they are targeting customers based on their particular taste and
preference in different regions
Demographic segmentation:
Here the market is segmented on the basis of the age groups
 Junior Horlicks – it is developed for pre-school children .it is sub
categorized as stage 1 and stage 2. Helping parents to determine and
select what supplements should be given to their children. Stage 1 is for
kids ageing between 2- 3 and stage 2 for kids ageing between 4-6. It is
available in different flavours such as vanilla, chocolate etc

 Horlicks regular – it is developed for general use. It can be used by any

age group.it has 4 different flavours such as classic malt, chocolate
elaichi, kesar badam

 Women’s Horlicks –. It is specialized for nutrition for women and

contains nutrients for bone health. It is recommended for the age group
between 19 to 50 years. It has got chocolate, caramel and malt variants.
  Horlicks lite – it is developed for health-conscious adults and for diabetic
people. Its is specially formulated keeping in mind the dietary needs for
this age groups. It is nutritional drink that contains zero added sugar, has
zero cholesterol, low on fat and high on fibre. It has 2 flavours original
malt and badam

 Mothers Horlicks – it is a variant which is exclusively developed for

pregnant and breast-feeding women.it has 25 vital nutrients which
support healthy birth weight of the baby, it comes in vanilla, kesar
flavours

 Chocolate and other flavoured Horlicks – mainly concentrating on

teenagers who are fond of different flavours. Horlicks has introduced
different variants to attract these age groups

TARGET MARKET

After the completion of segmentation of the whole market, it should select the
target market or target market segments to identify potential customers to whom
a business wishes to sell products or services. It involves segmenting the market
choosing which segments of the market are appropriate and determining the
products that will be offered to each segment
Horlicks currently focus on one segment of the market; they focus the children
between the age group of 8-14. They are targeting this section because children
do have a greater influence on the products which is purchased by the family.
Focus on junior Horlicks continue to be the kids between one and three while all
the action will be in general Horlicks. They are now focusing on other areas
also such as women Horlicks, Horlicks lite etc

POSITIONING STRAGEY OF BRAND

Once you are done with segmentation and identified the target markets the next
step is to position your product. while positioning the product there must be
essence of two factors, points on parity and points on difference that is you must
offer your product to your target segment in a way that customers find value in
them and there must be difference in your product in the offering.
 Horlicks was initially introduced as an additive and substitute to milk and
positioned itself as a nutritional supplement for kids
 By 2003 it positioned itself as a “pleasurable nourishment” by launching
its different flavours such as chocolate badam etc
 It adopted new promotion strategy with packaging and logos such as
taller stronger and sharper, stay healthy etc
 The packaging of the Horlicks products is designed according to various
target segments targeting that particular set of customers
 The brand strengthens its market position with the power of
advertisement and distribution network, it is involved in promotion
events social activities etc
 Junior Horlicks was introduced in 1995, it has positioned as a product
exclusively for the nutrition needs of toddlers of 2 to 6 years of age
 Mothers Horlicks which was introduced in 1997 was specially designed
for nutritional needs for pregnant and lactating women
 Women’s Horlicks was introduced in 2008, it was the first and
only specialized health drink for women* in India containing the complete
list of micronutrients recommended by the World Health Organization
 Horlicks lite which was introduced in 2005, was positioned in the area
targeting people who are health conscious and having diabetic problems
 The brand Horlicks is positioned and focused on every members of the
family rather than the entire family
 USP – Horlicks is available for toddlers, growing kids and mothers

MARKETING MIX

It is easy for brands to offer the products when there is the bouquet of products
for each segments of the market. in order to make sure that it does not stick into
a particular group of customers, Horlicks has introduced products for very age
group of customers with different SKUs along with different flavours pack
 PRODUCT

Horlicks is one of the leading malt-based drink in the world. they have
different drinks for different age groups there is junior Horlicks, mothers
Horlicks, women’s Horlicks and various more. Products are designed
according to the lifestyle of consumers, Horlicks lite was introduced
targeting people who are health conscious. Earlier it was available in only
one flavours of Regular Malt but later it added extra flavour and taste to
its product to launch new variants like the Chocolate Horlicks, Honey
Horlicks, Elaichi Horlicks and Vanilla Horlicks

 PLACE

Horlicks is well known health drink brand that enjoys its success due its
well-established supply and distribution system. It is very important to
make sure that products are available to the customers at right time, so
they have taken all adequate steps to make sure that it is available to the
customers at right time, at right place and right quantity. Horlicks
products are exclusively available through supermarkets, grocery stores
and even medical shops. The strong supply chain maintained by the
Horlicks and the sales offices located in 4 metro cities ensure that
products are rightly available in the target market

 PRICE

Through market research team Horlicks collects data about their own
products as well as their competitors. Which help them to set ideal prices
for all their products. Though the objective is to maximize profit they
have set the price of products at a reasonable rate. They are involved in
competitive pricing. Horlicks is brand of high quality which ensures
value for their customers so the customers are guaranteed that they are
getting adequate benefits for the money they are paying -off. Prices off all
the products are printed and labelled to avoid any type of confusion.
  PROMOTION

Horlicks being their for the market for a very long time and also enjoys
the position of the market leader exactly knows what the people want and
what they are expecting from their products. Horlicks is a brand who is
well known for creating knowledgeable and beautiful promotions. In all
their advertisements they try to create a strong bond of relationship with
the customers. Through their slogans like “taller stronger sharper”
Horlicks have created a huge wave in the market. They are actively
participating in conducting seminar and other general awareness
programs on the importance of nutritional drinks the campaigns are
mostly created with kids with strong messages, they also target mothers
who always search for best products for their children. They have been
following aggressive promotions through TV ads, print ads, billboards,
and digital advertising to get their brand to the target market

ISSUES AND CHALLENGES

Though Horlicks is enjoying a commendable market share in the health drink

sector. It still faces some issues and challenges for the brand
 Stiff competition by other markets in the segments is creating a trouble
for the brand, boost, Bournvita, Complan and other health drinks are
giving a very tough competition to the brand
 Health food drinks category which contributes 94% of the GSK consumer
sales has witnessing a fall in growth
 Lack of availability of milk in south and east India was the reason for the
growth of Horlicks in the country. However, milk availability has
improved substantially over the past decades
 Children’s after the age of 13 – 15 are slowly moving away from the
consumption of health drinks
 The drink is losing its star status as the ‘healthy’ morning and after-
school drink of choice pushed by Indian parents on their children

INTERVIEW WITH THE CUSTOMER

The customer has been using the product for a very long period and is satisfied
with the product. He is mostly purchasing junior Horlicks and regular chocolate
malt Horlicks for his children. But he also shared some his suggestions one
thing is the pricing of the product, price of the product is getting higher he also
suggested availability of combo packs at discount rate which includes all the
segment types can benefit the customer. Also, free gift items can be included for
the better satisfaction of children.

INTERVIEW WITH THE CHANNEL MEMBER

By talking to the channel member, the person is the dealer of Horlicks for a very
long period. he said that it is one of the largest selling health drink in his shop in
spite it is facing a tough competition from boost. He also expresses a concern
that the promotion side from the brand is getting weaker, free gifts items and
price discounts is now missing which is creating a less interest of the product in
the mindset of the customers.
REFERENCE
 https://www.slideshare.net/sharathghosh/horlicks-final?next_slideshow=2
 www.horlicks.in
 https://www.mbaskool.com/brandguide/food-and-beverages/16951-horlicks.html
 https://india-consumer.gsk.com/en-in/products/nutrition/horlicks/womens-horlicks/
 Wikipedia