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MARKETING PLAN OF
HORLICKS GUARD
HORLICKS
Table of Contents
EXECUTIVE SUMMARY................................................................2
INTRODUCTION..............................................................................3
About the brand “HORLICKS”....................................................3
HORLICKS TURNOVER WHEN IT WAS UNDER GSK:....4
MARKETING OBJECTIVE.............................................................5
SWOT ANALYSIS.............................................................................6
COMPETITION ANANLYSIS.........................................................7
STRATEGY OF COMPETITOR.....................................................9
METHODOLOGY...........................................................................11
MARKETING STRATEGY............................................................12
GEOGRAPHY WISE SALES TARGET:......................................15
POSITIONING:................................................................................17
MARKETING MIX:........................................................................20
MANAGEMENT PLANNING: -....................................................22
PROBABLE DEMAND FOR IMMUNITY BOOSTER:.............23
PESTEL ANALYSIS: -....................................................................24
BCG MARTRIX OF TOP 3 BRANDS UNDER HUL..................28
MARKETING BUDGET FOR “HORLICKS GUARD” FOR
FY20-21 (EXPENSES, REVENUE, NET PROFIT
PROJECTION): -.............................................................................28
MONITORING, EVALUATION AND REVIEW OF THE
PLAN: -..............................................................................................29
2
EXECUTIVE SUMMARY
The project assigned to us to study the business and make a marketing plan with
in dept analysis. India the land of 1.36billion people with rising population and
rising demand of consumer goods which is eventually helping the industry to
grow at the rate of 27.9% CAGR (compounded annual growth rate) 2019-20.
HUL the name of every household brand is also growing at the rate of 10%
CAGR from the last 10years.
I have selected a new product for my assignment which belongs to the foods &
refreshment category under the brand name of Horlicks. The foods and
refreshment category of HUL is growing at the rate of 7%.
“Horlicks Guard” the product of malted drink powder under the brand name
Horlicks which aims at Rs1500 crore revenue for the year 2020-2021 with a net
profit of 300crore (20% on sales) with the total expenditure of 1200crore. The
total current market share of malted drink powder is Rs 7085crore.
The Horlicks Guard has the proposed price of Rs 290 for 500gm, and Rs 550 for
1kg of packet. The basic idea of the new product and new marketing plan is to
provide best health drink powder with high “Immunity Boosting” substance and
protect the families from unwanted health diseases and makes them stronger
and healthier with a strong distributor’s channels of HUL.
3
INTRODUCTION
Hindustan Unilever Limited (HUL) is an Indian consumer goods company
founded in 1933, headquarter in Mumbai, India. In 1931, Unilever set up its
first Indian subsidiary, Hindustan vanaspati manufacturing company followed
by lever brothers limited (1933), and united traders limited (1935). These three
companies merge to form HUL in November 1956. And it is a subsidiary of
Unilever a British-Dutch company.
The current CEO of the company is Sanjiv Mehta. And the company deals in
foods & refreshment, home care, beauty & personal care, life essentials with a
revenue of INR 38,785 crore (US$5.4billion) 2019-20. The company’s mission
is to add “Vitality to life” with daily nutrition, hygiene and personal care and
with the vision is to grow their business with positive social impact. In April
2020, HUL completed its merger with GlaxoSmithKline consumer healthcare
(GSKCH India).
Horlicks along with a proper daily diet leads to growth and development like
more bone area, more muscles and better concentration.
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. The brand has product for young
children (Junior Horlicks), breast feeding mothers (Mother’s Horlicks), women
(Women Horlicks) and Adults (Lite Horlicks) exist.
A MOUNT IN LA KH
460000
451603
450000
440000 436226
430000
420867
420000 416766
413644
410000
400000
390000
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
Data has been taken from the annual report of GSK for the better understanding
how Horlicks was performing before the merger with HUL. There is 9% growth
in 2018-2019 compared to 2017-2018.
1
www.annualreportgsk2019.com
5
FACTS
In India, over 2 billion cups of Horlicks are drunk every year
6th most trusted brand in India (AC NELSON)
Most trusted health drink brand (Economic times 04)
Biggest market is India
MARKETING OBJECTIVE
The marketing objective of the Horlicks for the new product “Horlicks Guard”
is to get a Rs 1500 crore revenue for the year 2020-2021 with a net profit of
Rs 300crore (20% on sales) with the total expenditure of Rs 1200crore. The
total market share of Horlicks is 50 % with a brand value of Rs 3542 crore in
Consumable Health Drink industry as the total market stands at Rs 7085 crore.
The brand had a total revenue of Rs 5006 crore in March 2019 under GSK with
a monthly average revenue of Rs 417 crore with around 1.90 crore packets of
Horlicks every month. So, my target is to generate Rs 125crore monthly
revenue by “Horlicks Guard” with a targeted monthly packets sale of 2400000
packets of 300gm and 1000000 packets of 1kg.
(as the above-mentioned data of 1.90crore packet is totally based on personal assumption as
7500000 lakhs packet in 500gm, 4050000 lakh packets in 1kg, and 7500000 lakh packets in
250gm so that my calculation for new products gets easy).
which will eventually increase the sales of Horlicks in the market by 17.89%.
the sales growth will directly increase the total revenue of the brand by 29.96%
in the Consumable Health Drink industry.
6
SWOT ANALYSIS
The competition in the consumable heath drink industry is very high due to
various companies with their strong brands are giving a neck to neck fight in the
industry. Brands like Cadbury-Bournvita, Complan, Pediasure are giving a very
tough fight to Horlicks. As a market leader Horlicks is facing negative growth
in recent years due to high price, low marketing, as compared to competitors.
With a strong global presence, Horlicks stills preferred as the first choice among
the household, with large number of loyal customers and its brand positioning
strategy helps to generate good revenue. Various small and regional brands are
coming up in the consumable heath drink market with various flavours and
ingredients with different market segmentation, different target customers, are
creating a difficult time for the market leader. But the continuous growth in the
consumable heath drink industry has lots of opportunity for the brand in coming
years. As the recent merger of GSK to HUL will also going to bring a
substantial growth with large distributors in rural and urban areas. HUL on the
top FMCG company in India, with strong global presence and a strong goodwill
in Indian has a major role to play with the brand Horlicks.
As the new product “Horlicks Guard” will be a game changer in the market, it
will eventually increase the market share of Horlicks and will bring the positive
growth with the new varieties, new ingredients, targeting the untapped segment,
and untapped areas. The recent behavioural sift of people are clearly examined
and also new marketing plan, with strong distributors will show a positive path
in the coming years.
7
STRENGTH WEAKNESS
market leader negative marketing
family drink low on content
strong marketing high cost compared
strategy to competitors
global presence
strong distributors
OPPORTUNITY THREAT
untapped market MNC brands
untapped areas small & regional
new variety of competitors
flavours behavioural shift of
consumer
aggressive
marketing
COMPETITION ANANLYSIS
Table 2
MARKET SHARE
HORLICKS BOURNVITA COMPLAN PEDIASURE OTHERS
12%
9%
50%
12%
17%
Horlicks is the leader in the malted drink powder market with 50% market share
followed by Bournvita of Mondelez International with 17% and Complan of
8
Zydus Wellness with 12% & Pediasure of Abbott with 9% market share are the
direct competitors of Horlicks. The market is driven by many small and regional
players which consists of 12% market share.
Table 3
Percentage growth
14 13.2
12 11.2
10
10
8.6
8
4 3.7
0
2013-14 2014-15 2015-16 2016-17 2017-22E
3.7% is the compounded annual growth rate between 2017 and 2022, rest are
yearly growth rates.
The growth of the sectors is decreasing every year due to behavioural shift of
the consumer from malted drink to supplement nutrition drink. But apart from
decreasing trend the malted drink industry has seen a 7% growth in the industry
during covid-19, as household consumers are more concern about their
children’s health, old age people’s health, working professional health, and also
the women in the family. The industry is seeing a reverse growth in the market.
Table 4
3000
2500
2000
1500
1218.62
1000 850 822.06
651.82
500
0
HORLICKS BOURNVITA COMPLAN PEDIASURE OTHERS
Horlicks has the brand value of Rs 3542.5 crore under HUL due to the recent
merger with GSK. And Bournvita with 17% market share has the brand value of
over Rs 1218.62crore.
STRATEGY OF COMPETITOR
BRAND PRODUCT MIX TARGET CUSTOMERS POSITIONING
METHODOLOGY
The research method used in the marketing plan is descriptive research.
Primary research: For the marketing plan of Horlicks new product “Horlicks
guard” we did a questionnaire survey of 44 respondents from different
geographical locations, different in gender, different age group, and from
different domain. And the data collected by the respondents are used in the
project for better understanding and analysis.
MARKETING STRATEGY
Target market
Horlicks has a brand has varieties of product under its name, and has done
pretty well in targeting & segmenting its customer and consumer base in India.
But the new “HORLICK GUARD” will target every segment of the market.
The brand Horlicks will be launched “HORLICK GUARD” as an immunity
booster in the market an eventually will target both urban and rural India. But
the brand will target urban areas more than rural areas, as the immunity of the
people living in urban is less compared to people living in rural areas. As
Horlicks under the company GSK as done very well in targeting people and also
making them staying loyal to their brand. But now, the repositioning of the
Horlicks under HUL will certainly change it’s some of its target market to some
extent.
13
Table 5
As per the primary research the most of the respondent where from TIER 3 and
TIER 4.
Table 6
So as the per the primary survey we have found out respondents’ preference,
whether they like Horlicks or not, and also from which TIER they belong. By
14
looking to the chart, we can say that semi-urban and rural India people like
Horlicks more than metro cities people.
So, for the new product “Horlicks Guard” my marketing would be targeting
people in TIER 2, TIER3, TIER 4, (Semi-Urban, Semi Rural, Rural).
Table 7
as per the primary research it has been observed that there is a massive demand
of people consuming Immunity Booster in market. And with the help of chart
we can also see how different age group of people is behaving towards
immunity booster.
So, “Horlicks Guard” will definitely going to play an important role in the
market, as the covid-19 has changed the taste & preference of the consumer.
Now we can target our customer very precisely.
15
Table 8
The growth rate of Rural India is in a decreasing trend. As it has been seen in
the chart that in 2013 the percentage growth rate was 0.64% and after that it was
declining percentage growth in the population.
By the chart we can observe that there is a transformational shift in the rural
India, as the Rural India is moving towards Urban India.
16
Table 9
The growth rate of Urban India is in a constant trend. As it has been seen in the
chart that in 2013 the percentage growth rate was 2.34% and after that it was
declining percentage growth in the population, but the difference in percentage
growth rate is very less. The percentage growth rate from 2017 has been
constant till 2019.
By the chart we can observe that there is a transformational shift in the urban
India, as the people are now moving towards Semi Urban, due to favourable
living environment.
So, for the new product “Horlicks Guard” my sales target will be 70% from
semi urban, average urban people, rural market, and remaining 30% sales will
generate from urban, high urban people.
As during the pandemic, it has been observed how rural market was pushing
demand in the market and also generating higher revenue.
South 35%
North 25%
West 20%
East 20%
POSITIONING:
The brand has been positioned as a healthy nutritional food for every life stage
and for consumers of every age. It is being liked so much in India that 40million
cups is being drunk in India every year.
Since the brand is present in different product categories like healthy biscuits,
noodles, nutritional drinks, and energy drinks, it uses differentiated targeting
strategy.
The brand has positioned itself as “taller, stronger, sharper”. The logo which is
in the mouth of every Indian. It has also positioned itself as a “pleasurable
nourishment” by launching of flavours like Vanilla, Honey, & Chocolate.
Table 10
Table 11
as per the primary research it is observed that 59% customers are very loyal
towards the brand Horlicks and they are ready to recommend it to other
customers as well. As for the “Horlicks Guard” we would be needing such loyal
and intelligent consumers for our product.
19
Table 12
Likewise, “Horlicks Guard” will the first product of Horlicks which will be
targeting every segment of people by its “Immunity boosting” element. during
covid-19 it has been observed that how peoples are getting affecting and losing
their family members due to weak immunity. So, we are coming up with
product will be the game changer in the malted health drink market. The
direction and instruction of consuming the quantity of the powder will be
mentioned into the packet.
20
MARKETING MIX:
PRODUCT: - HORLICKS is a nourishing malted food drink which combine
the wholesome goodness of malted barley, wheat and dairy ingredients.
30.67
18.40
1.84 2.45
As per the primary research it is observed that 77% of respondents are satisfy
with the brand Horlicks. It clearly shows why Horlicks is accepted by
consumers. The quality of the product, the outcome after consuming Horlicks is
very much satisfactory for the consumers.
PRICE: - it is the most significant mix in the 4p’s of marketing. In India price
has always been the deciding factor for many marketer’s fate in the market.
Horlicks seen as a premium product as it gives nutritional values to every group
of people in the market, whether a kid or an adult. It follows value added
pricing model. If gives the value for the money they spend as the product gives
lots of health benefit.
21
Table 14
PACKET CHOICE
1KG 250GM 500GM
30%
48%
23%
As per the primary research it is observed that consumers are happy with packet
size and their price. But consumers prefer more of 500gm packet as compared
to 1kg and 200gm.
Horlicks has very convenient prices for all its products. The average price of the
varieties of Horlicks in 200gm packet is RS-120 and the average price for
500gm packet for all the varieties is RS 230 and the average price for the 1kg
packet for all the varieties is RS 420.
Horlicks does various CSR programs to reach rural areas of the country by
“swasthya Abhiyan” and village level enterprise.
Most of the communication done by Horlicks aims at the mothers as they are
the buyer of the product for their kids and family. they use their scientists and
22
In urban areas Horlicks have created a play area for their children to attract
consumers and create awareness and buzz around the products. They have also
spent lot on R&D to constantly know about what consumer needs.
We will spend 200crore for the promotion of the product out of which 80% will
goes for advertisement and 20% for sales promotion.
Table 15
PERCENTAGE
ONLINE TELEVISION WORD OF MOUTH
16%
27%
57%
In the primary research, it is observed that 57% people in India believes that
advertisement should be done through television because of their visual display
of the product and also it attracts household women’s more.
MANAGEMENT PLANNING: -
The company will follow customer centric approach, with a vision for long term
and continuous experiment in R&D. As, good leaders should have to listen
more, and keep working on innovative products. And all of this we can achieve
by our smart employees, workers. We will provide best product, at best price, to
all the consumer’s and customer by approaching towards last-mile target. And
we are working towards making effective and efficient supply chain for our
products.
23
In the primary research it is observed that consumers have a strong faith and
trust on the brand Horlicks as an Immunity Booster in a new product. We can
clearly see in the table 16 that above 86% people believe that it will be a change
changer in the health care market.
24
Table 17
as in the table 16 we have seen that Horlicks will be the game changer in
Immunity boosting health drink but in table 17 we can see that 79.84%
consumers are ready to buy Horlicks within next 2 months, it clearly shows the
demand for the brand in the market.
PESTEL ANALYSIS: -
25
26
27
28
The BCG matrix shows us that why it was so important deal for HUL of taking
over brand Horlicks from GSK. The food and refreshment segment of the
company benefited from Horlicks acquisition as revenue jumped 52 % to RS
2958 crore at a margin of 20 per cent. Horlicks is a star brand in the portfolio of
HUL and now it has to achieve more heights under the company. As the
company was weak in the healthcare segment before the acquisition of Horlicks,
but now has made their portfolio very strong in the health care segment, with
other brands like Boost, Maltova, and Vista.
Expenses on horlicks
Product: RS 800crore
Distribution: - RS 400crore
Promotion: - RS 200crore
FY 20-21
3500
3000
500
2500
1200
2000
1500
1000
500
0
P/L STATEMENT (CRORE)