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Page Marketing Management A Report & Discussion Guide On Horlicks Horlicks – Building A Powerful Technology Brand Mission and vision: “Horlicks ~ The great Family Nourisher. Horlicks is the leading Health Food Drink in India and as the „Most Trusted Drinks Brand? (Economic Times Survey, 2004) in India enjoys more than half of the Health Food Drink Market.

Brand evolution: Although it has been a popular brand in the Indian market since the 1930s, Horlicks underwent a revamp in 2003 to further increase its relevance. The Modern and contemporary Horlicks offers „pleasurable nourishment’ with a delicious range of flavors including Vanilla Toffee Elaichi and Chocolate. With revitalized packaging synergistic with the new brand personality, it is a favorite with both mothers for its nourishment and kids for its great taste and variety. What makes the difference between the most successful and less successful brands?

It certainly is not what product features are offered. How, then, do consumers choose? The answer seems to be what the brand names mean to them. Horlicks is sold in number of countries across the world. In different countries, the product has different formulations in order to cater to varying consumer segments and serve different consumer needs. In India, the Horlicks available has been scientifically developed and specifically caters to the nutritional needs of the Indian diet. It helps meet the requirements of essential nutrients in children, such as iron and vitamins that aid iron absorption.

From the available data, it has been seen that the children in India are not getting enough of these vitamins and minerals from their daily diet. Research shows that these nutrients are very important for school age children for their attention concentration and memory as well as physical performance and growth. Thus Horlicks is a beneficial supplement for children to aid not only their growth, bit 2|Page Marketing Management A Report & Discussion Guide On Horlicks also enhanced attention and concentration. In fact we have established this through a large clinical trial among school going children.

Horlicks-Oats Launched on November 8, 2011: GlaxoSmithKline Consumer Healthcare (GSKCH) is the latest to enter the breakfast cereals market withh its launch of Horlicks Oats in South India. Speaking to Business Line, Mr Jayant Singh, Marketing Director, said the oats category, estimated at Rs 200 crore and growing at 25 per cent, has become “a bit more significant in the last couple of years as there? s higher awareness of health and nutrition”, given busy lifestyles and the consequent tendency to miss having a wholesome breakfast.

GSKCH will leverage Horlicks? “great family nourisher” standing to build a market for its latest launch. The Horlicks brand is estimated at Rs 1,600 crore, accounting for about 65 per cent of the company? s total revenue. GSK also sells prescription and OTC medicines. Unlike other oats brands that focus on the heart, Horlicks Oats is being positioned as one that goes beyond just that, with a “three-way advantage” – capable of helping users to manage weight, blood pressure and reduce cholesterol. 3|Page Marketing Management

A Report & Discussion Guide On Horlicks “We clearly believe we? ve a right to win, and there? s room to drive and grow this,” said Mr Singh. According to him, most players are in this market because it? s wellpoised to become really big in the future. The other brands in the market include Pepsi? s Quaker Oats, Marico? s Saffola oats and Bagrry? s, apart from Britannia and Kellogg? s which are present in the ready-to eat breakfast and cereals categories. The challenge in the market is to build awareness and emphasise the three-way advantage.

A comprehensive advertising and marketing plan will see GSKCH advertise in conventional channels and talk to influencers such as healthcare professionals who can recommend its consumption. The product is available in packs of 200 gm (Rs 32), 400 gm (Rs 58) and 1 kg (Rs 125). GSKCH also manufactures and markets brands such as Boost, Viva, Maltova, Foodles, Eno, Crocin and Iodex. Horlicks Brand Personality: Horlicks has detailed many personality characteristics for its brand, but employees do not have to remember every characteristic.

They do, however, have to remember the overall impression of the list of attributes, as you would when thinking about someone you have met. As the focus is on customer relationships,. And the human dimension created by the brand personality carries over into the positioning strategy for the brand. Unlike similar drinks, such as Oval tine, Horlicks is not a dry blend of malt extract and milk powders. Claims are often made by malted milk drinks such as Horlicks that they assist sleep, but these claims have been difficult to verify. GlaxoSmithKline tells inquiring customers, with a surprising degree of honesty: “While … esearch indicates that Horlicks drinks can help you to sleep better, the exact way in which Horlicks works is not clear. ” 4|Page Marketing Management A Report & Discussion Guide On Horlicks Horlicks Positioning: In the initial stage of manufacturing, milled malted barley and wheat flour are mashed together in hot water where the starch is converted into sugars. To this sugar solution dairy powders are added. The water content is then evaporated off to form a syrup which is dried in vacuum band driers to form a cake. This cake is milled into the finished powder.

This is then fortified with vitamins and minerals. The product’s name has entered the vernacular in two ways. Firstly as an interjection, usually taken to be a substitute for the profanity “bollocks”. Secondly it suggests a minor disaster or shambles, as in ‘to make a complete Horlicks of something’ (see citation below). The former use was exploited by the company in a 1990s advertising campaign, in which a harassed housewife exclaims “Horlicks” in a context where a stronger term could have been expected, thus widening the term’s exposure and usage for a while.

The term was used in July 2003 by British Foreign Secretary Jack Straw (“a complete Horlicks”) to describe irregularities in the preparation and provenance of a dossier regarding weapons of mass destruction in Iraq. Food & lifestyle changes are the key to a long term health & GSKCH is committed to providing the right solutions to the consumers for their changing lifestyle & their nutrition needs. GlaxoSmithKline Consumer Healthcare, the global FMCG Company with a strong health and nutrition product portfolio in India, announced the launch of Horlicks Oats today.

This launch marks the company? s entry into the Breakfast market in India thereby adding another category to its growing nutrition portfolio. Today? s lifestyle is giving rise to lot of lifestyle related diseases like hypertension, overweight & heart related diseases & doctors are also concerned with the same. Food & lifestyle changes are the key to a long term health & GSKCH is committed to providing the right solutions to the consumers for their changing lifestyle & their nutrition needs. 5|Page Marketing Management A Report & Discussion Guide On Horlicks

Designed as a healthy breakfast option for today? s fast-paced life, Horlicks Oats comes with „3 Way Health Advantage? – helps manage weight, helps manage healthy blood pressure and helps reduce cholesterol. The product is available in 3 pack sizes of 200gm, 400gm & 1kg pouch pack and comes with the trust of Horlicks Nutrition Academy. Jayant Singh, Marketing Director, GlaxoSmithKline Consumer Healthcare, India said, “Current lifestyle trends compel Indians to either skip or have an incomplete breakfast in which nutrition is often neglected.

By broadening the Horlicks portfolio to Oats, GlaxoSmithKline Consumer Healthcare aims to spread the goodness of healthy living and complete the consumer food table by adding yet another nutritious/wholesome option to the menu. With this launch, we want to occupy greater mind space in the healthy food segment. ” As part of GSKCH? s initiative to build awareness about Horlicks Oats, the company has launched an advertising campaign across print and television platforms to communicate the value proposition of the product of providing a 3 Way Health Advantage- important for long term health & well being.

Horlicks Oats is being launched first in the southern market. 6|Page Marketing Management A Report & Discussion Guide On Horlicks Branding By Logo: FUN FACTS ABOUT HORLICKS ? 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 daughers Raima and Riya (1980s) and Vishwanathan Anand. ? Horlicks ,in India, has tied up with popular kids movies like Ice Age II and Superman Returns. In India , over 2 billion cups of Horlicks are drunk every year! ? All Horlicks bottels sold in India in a year placed end to end would form a chain 6 times the length of the Great Wall of China. ? Total Horlicks sold in a year weighs as much as 325 blue whales!! 7|Page Marketing Management A Report & Discussion Guide On Horlicks RESEARCH AS A TOOL FOR AGGRESSIVE MARKETING: A premiere research institute of India conducted a 14 month research on Horlicks in a reputed boarding school in Hyderabad.

In the research one group of children was given an ordinary health food drink without the Horlicks micronutrients (or vitamins and minerals) while the other group was given Horlicks. Many tests and 14 months later, it was concluded that the children who consumed Horlicks show significant improvements in height, muscle mass , bone health and attention/concentration scores as compared to the children who consumed the ordinary health food drink without the Horlicks micronutrients (or vitamins and minerals). Horlicks is also available in delicious chocolate flavor.

When the temperatures soar and your throat feels like the Thar Desert, chilled chocolate Horlicks is the tastiest way to beat the heat. The nutrition of Horlicks is packed with the lipsmacking chocolate flavor has won the hearts of children and adults alike…. so you hear them sing merrily “jaise bhi kaise bhi dhood le ao cholcolate Horlicks shake banao…” “jaise bhi kaise bhi dhood le ao cholcolate Horlicks shake banao… jaise bhi kasie bhi !! ” ? Dan Dare Pilot of the future serial sponsored by Horlicks in 1952 and heard Monday to Friday at 7:15 PM over Radio Luxembourg. |Page Marketing Management A Report & Discussion Guide On Horlicks ? ? In 1961, Horlicks ran a TV advertising campaign which featured Scottish entertainer Billy Raymond and an actress. The theme of the advert was “Horlicks – the food drink of the night. ” Horlicks was the sponsor of the Lum and Abner Show from 1934-1937. THREATS: Horlicks has been enjoyed for over 135 years with its unique combination of wheat, malted barley and milk ingredients. It is a uniquely delicious drink. Horlicks doesn’t just taste great; one mug contains 12 essential vitamins nd minerals and is a rich source of Vitamin D – an essential aid to calcium absorption. Walk in to any small eatery in the southern and eastern parts of the country and you will find it hard to miss the bottle of Horlicks at the cash counter. Horlicks is not a young brand – it has been around for decades. After imports were disallowed in 1955, Hindustan Milkfood Manufacturers started making the drink in the country in 1960 and now it’s owned by GlaxoSmithKline Consumer Healthcare. But there are no evident signs of ageing. Horlicks’ market share of the Rs 2,305crore (Rs 23. 5 billion) milk beverages market is above 50 per cent (source: The Nielsen Company). Rivals know beating Horlicks in the market place is a tough act. Nestle has stopped making Milo and new entrant Dabur India has decided to stay clear of Horlicks and pitch its Chyawan Junior against GSK Consumer Healthcare’s other beverage brand, Boost. It would be foolish not to leverage the equity of such a brand. Thus, GSK Consumer Healthcare has decided to use the brand to get into new categories. In 9|Page Marketing Management A Report & Discussion Guide On Horlicks he last few months, it has launched biscuits for children, a nutrition drink for women, an energy bar and chilled milk. More could follow in the days to come. “Our business was doing well as was the economy. So both from our point of view as also from the consumers’ perspective, it was a good time to shift gears,” says GSK Consumer Healthcare Managing Director Zubair Ahmed. Ahmed believes the new products will make a meaningful contribution to the company’s top line in the next few years. “These categories are relevant and our research shows that consumers need these products.

We are not creating needs, we’re simply fulfilling them. ” Those who know Ahmed well will hardly be surprised by the fast pace of product launches. As the chief executive of Gillette, his previous assignment, he tried to grow the business rapidly with a slew of new shaving products. He left the grooming products company two years ago after it was acquired by Procter & Gamble to run GSK Consumer Healthcare. Something for everyone Ahmed is aware that new products do sometimes end up as casualties but he has taken confidence from the strength of the Horlicks brand. We’re riding the equity of Horlicks and supplementing it with consumer insights,” says he. Horlicks may be the country’s sixth most-trusted brand but GSK Consumer Healthcare is playing in a market where consumers can be demanding. And rival brands are no rabbits: Cadbury’s Bournvita and Heinz’s Complan each with a 15 per cent share. So far though, GSK Consumer Healthcare has succeeded in segmenting the customer base by catering for specific needs of women at the same time cashing in on the increasing population of children with Horlicks.

Ogilvy & Mather Country Head (planning) Madhukar Sabnavis feels “the brand today talks to every member of the family rather than the entire family. ” With Junior Horlicks, launched in 1995, GSK Consumer Healthcare had positioned a product exclusively for children between the ages of two and five. That, Anand Ramanathan, who advises companies in the FMCG space at consulting firm KPMG, points out is a crucial segment given that India is a young country – a clever ploy to engage consumers at a very young age. 10 | P a g e Marketing Management A Report & Discussion Guide On Horlicks

The Junior Horlicks brand has grown to become a Rs 150-crore (Rs 1. 5 billion) brand now, says GSK Consumer Healthcare head of marketing Shubhajit Sen. Taking advantage, the company launched Junior Horlicks biscuits last month. Again, five years ago, GSK Consumer Healthcare had reached out to pregnant and lactating mothers with Mother’s Horlicks; last year it came up with Women’s Horlicks catering for women across age groups. “The idea is to address all age groups. There’s Horlicks Lite for the elderly who often have a sugar problem and for the youth we have Horlicks Nutribar which we launched in February this year,” says Ahmed.

With Horlicks Nutribar, positioned on the twin planks of health and convenience, GSK Consumer Healthcare has leveraged the brand to venture into an entirely new product category – energy cereal bars. Says Ernst & Young Partner Ashish Nanda: “When you’ve created a strong brand, it opens up doors to new variants and even new categories. Unless you enter a completely unrelated area, there’s little risk in extending the brand to other products. ” While the company hopes that Horlicks Nutribar will chip in with about Rs 100150 crore (Rs 1-1. 5 billion) of revenues in five years, it hasn’t stopped there.

In April this year, it invited consumers to taste its summer drink called Horlicks Chilled Doodh (milk), available in four flavours. Sen concedes that the product will be up against some keen competition in the Rs 45-crore chilled milk category from Amul Kool and strong regional players like MAFCO in Mumbai, but he hopes the brand can pull in revenues of Rs 50-100 crore (Rs 500 million to Rs 1 billlion) in about five years – more than the current market size. Of course, GSK Consumer Healthcare will promote other brands too – it does need to hedge its risks, after all.

Thus, in April, Glaxo ActiGrow, a protein supplement for children, was unveiled. Ahmed explains that the company is cashing in on the brand equity that Glaxo still has with mothers and will leverage that for specialist products like ActiGrow. “We’re looking at new products across food and beverages, like healthy snack 11 | P a g e Marketing Management A Report & Discussion Guide On Horlicks foods because the opportunities aren’t taken care of simply by Horlicks,” says Ahmed. At the moment, Horlicks takes care of GSK Consumer Healthcare’s top line.

The brand, which was worth around Rs 800 crore (8 billion) in the early parts of the decade, is today 50 per cent bigger at close to Rs 1,200 crore (Rs 12 billion), bringing in the bulk of the company’s annual turnover of Rs 1,580 crore (Rs 15. 80 billion). If Indians drink more than five million cups of Horlicks everyday it’s because GSK Consumer Healthcare has worked on the product. At one time, in the late 1990s, market research showed that Horlicks was seen “as a nourishing, but boring drink” and was beginning to lose significance.

What’s more, consumers were beginning to prefer flavours over nutrients. So, in 2003, the brand was revamped: It was made tastier and launched in two new flavours – vanilla and honey. The company had earlier launched a chocolate version to try and win over consumers in the North and West who typically prefer chocolate-flavoured drinks. But the success was limited. Nearly half of its sales are still generated from the South, while 35 per cent come from East. But that doesn’t seem to bother investment analysts.

IDFC SSKI Managing Director Nikhil Vora points out that GSK Consumer Healthcare has held on to its market share in a space that’s grown at around 20 per cent in the last couple of years. “As the market leader, the brand could yield some share but volumes have grown in double digits for five consecutive quarters. ” Not just higher tonnage, the company does succeed in extracting a price from consumers. In January this year, for instance, prices were upped by about 5 per cent. What has worked in the company’s favour, says KPMG’s Ramanathan, is Horlicks value-for-money positioning. Horlicks may not be a cheap product but it’s been communicated as a value-for-money product. Parents today are willing to spend more on nutrition for their children and that has helped GSK Consumer Healthcare. ” To that extent, Horlicks may have gained over competitors such as Complan which are perceived to be more expensive, a perception that hasn’t changed over time. Says Ahmed: “Compared to competitors, Horlicks is the best money proposition and, moreover, the consumer gets value for the money spent. ” 12 | P a g e Marketing Management A Report & Discussion Guide On Horlicks

For the new launches too, he has in mind a similar value proposition, though final prices will be fixed keeping in mind the target group. “Women’s Horlicks is far more expensive than the base Horlicks but that’s because the consumer is getting much more and there’s no other product available. Horlicks Nutribars will be primarily a metro phenomenon to start with, so the pricing has been decided accordingly. ” Nourishing the brand: Horlicks does not feel the need for a brand ambassador, though GSK Consumer Healthcare has engaged expensive celebrities like Kapil Dev, Sachin Tendulkar and Mahendra Singh Dhoni to endorse Boost.

Still, the several new launches could push up the ad budget of one of the country’s top advertisers, most of which is spent on television. Sen believes that spends could inch up over the Rs 194 crore (Rs 1. 9 billion) that GSK Consumer Healthcare spent on advertising and promotions last year. Typically, FMCG companies spent 12 to 13 per cent of their turnover on brand promotion. The radio, through which Horlicks reached out to mothers even 40 years ago, is still an effective channel in states such as Bihar or Orissa where consumers don’t have access to television or where power cuts are frequent.

In the early years, mothers were the sole target audience since the product catered to the entire family. However, once pester power became big in the 1990s, the Horlicks advertisements started talking to children too. The change worked because it was also the time when mothers’ mindset was changing – they had become more indulgent and let children drink what they liked, rather than imposing on them a drink of their own choice. 13 | P a g e Marketing Management A Report & Discussion Guide On Horlicks Today, JWT Client Service Director Debarpita Banerjee believes, the Internet can be a good way to connect with kids.

So, there are tips posted on examinations on the website – “Exams ka bhoot bhagao” (Drive the exam demon away). Besides, the company has also reached out to children with Wizkids, a contact programme that provides a platform for schoolchildren across 25 cities to showcase their talent. Under Ahmed, GSK Consumer Healthcare has upped the ante on distribution. In an aggressive ‘Go to Market’ approach earlier this year, it created a second layer of distributors in the smaller towns to supplement the existing chain of around 500 big distributors. Most of these 4,000 sub-distributors were appointed in the eastern and southern parts of the country.

The idea, according to Vice-president (sales) Navneet Saluja, is to increase the retail reach by at least 30 per cent. “Right now we reach out to around 25 per cent of the rural market and we hope to extend this reach to about 40 per cent of the hinterland in a couple of years. We’re looking to have a presence in towns that have a population of 5,000 people. ” As for reaching out to customers in the urban markets, Sen has begun to work with retailers to create excitement and awareness. “In some outlets, we even created play areas for children,” he says. Although modern trade remains a relatively small channel currently, fetching just 4. per cent of the firm’s sales, Saluja’s aiming for higher shares. Ahmed’s not worried about the expense. “We’ll be leveraging the P&L (profit and loss account) for some time because we need to invest in the business and new products,” he says. Clearly, no effort is being spared to grow Horlicks 14 | P a g e Marketing Management A Report & Discussion Guide On Horlicks Discussion Guide On HORLICKS: To understand customer and their eating behavior and specially to get a feedback about Horlicks-oats a set of questionnaire has been prepared. Questionnaire: Note: You can choose more than one option. 1. Your Good name: ) If Horlicks introduced a new beverage, how likely are you to purchase and try it? a)Not Likely at All c) Very Likely b)Neutral 3. Do you take oat based breakfast in your daily routine? a) Yes b) No 4. Have ever heard/used about Horlicks-oats? a) Yes b) No 5. If yes: Have you ever used it ? a) Yes b) No 6. On the basis of quality how you will rate Horlicks –Oat? 15 | P a g e Marketing Management A Report & Discussion Guide On Horlicks a) Very Good b) Good c) Just Ok d) Poor 7. On the basis of Taste How you will Rate Horlicks –Oat? a) Very Good b) Good c) Just Ok d) Poor 8. How much you will rate packaging of Horlicks –Oat? ) Very Good b) Good c) Just Ok d) Poor 9. On the basis of price how you will rate Horlicks-Oat? a) Very costly b) quality very good –but Costly c) Value for Money /Moderate Price d) Price is not a issue for me 10. How much you will Grade Horlicks –Oat overall? a) Very Good b) Good c) Just Ok d) Poor 11. What you disliked/ de-motivated most about Horlicks –Oat? a)Taste b) Packaging c) Shape d) Price are too high 12. How you came to know about Horlicks –Oats First time? a)TV b) Radio-FM c) Print Media d) by Family or friend e) Shaw at display in Groceries store/ shopping mall f) Bill Board near road side 3) How important is a well known brand name in motivating your beverage /notorious breakfast product purchase decisions? a) Not Important b)Neutral c)Very Important 14) How important is environmentally friendly packaging in motivating your beverage /notorious breakfast product purchase decisions? 16 | P a g e Marketing Management A Report & Discussion Guide On Horlicks a) Not Important b) Neutral c)Very Important 15) How important is consistent product quality in motivating your beverage /notorious breakfast product purchase decisions? a) Not Important b)Neutral c)Very Important 6) How important are natural ingredients in motivating your beverage /notorious breakfast product purchase decisions? a) Not Important b)Neutral c)Very Important 17. How long have you been using Horlicks products? 18. How/Who many members of your family are using Horlicks-Oat? a) All C) Only younger members Horlicks-Oat as a brand: 19. If (Imagine) Horlicks-Oat is Human being; then who it could be: A) Mother B) Father C) Kareena Kapoor ( A Beautiful Lady) E) A Stud Hero ( Hritik Roshan) b) Only Elder members d) Nobody d) An old intelligent Boring man F) None of these……………….. (Then please specify your visualization) 0. When you hear word „Horlicks-Oat? what can remember: 17 | P a g e Marketing Management A Report & Discussion Guide On Horlicks A) Any Advertisement C) Any bad memories b) Any Good Memories d) something else………. ( Please explain your visualization) 21. If Milk Drink is a human Being; then who it is: Product Gender Age Ethinicity Educational Qualification Social Class Hobbies Horlicks-Oat Competitor 22 a) Horlicks-Oat and its competitor Breakfast oat meets at the roundabout of Connaught Place. How and what they will interact to each other. ……………………………………………………………. 2 b) With whom Horlicks-Oat is going and where they are going? ………………………………………………………. 22 c) Who is carrying Horlicks-Oat and with whom is Competitor? ……………………………………. 23. When you first tasted Horlicks-Oat 18 | P a g e Marketing Management A Report & Discussion Guide On Horlicks a) How did it feel like …………………………………………………………. b) Why you choose this product ……………………………………………… c) Are you satisfied with it………………………………………………………… 24.

When you choose a Horlicks-Oat (Horlicks-Oat) which controls you Heart or Brain? 25. What is your best memory associated with the Horlicks-Oat? ……………………………………………………….. 26. Is there any worst memory (Embarrassing memory) due to Horlicks-Oat? ……………………………………………………………. 27. Advertising review: a) Which commercial you like the most………………………………. b) Do you remember Horlicks? s logo………………………………….. 28. What did you like/dislike about the commercial? What kind of impression did it give you about Horlicks

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