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Report on Marketing Strategy of Horlicks

8/21/2011 PMM

Sai Srinivas Dendukuri R.NO: 11153

Product: Horlicks:

Horlicks The Great Family Nourisher is a health food drink launched by Glaxo Smith Kline. It is prepared from Malt added with 23 nutrients, research shows that these nutrients are very important for school age children for their attention, concentration and memory as well as their physical performance and growth. Thus, Horlicks is a beneficial supplement for children to aid not only their growth, but also enhanced attention and concentration. It has become popular brand in India since 1993.It has revamped itself in the year 2003 and has come up with new logo, new design in packing and with more flavors inorder to compete with other brands. Horlicks has become a common household name in India. The brand command over 50% market share in Indian health food drink market. Product Line: Horlicks has four different products in its product line. 1. 2. 3. 4. Place: Reliance Fresh Vanasthalipuram Promotion: GSK has used various methods in promoting Horlicks. Initially in 1980s it has launched the TV ads. Later Chess champion Vishwanathan Anand endorsed the brand. Later on Horlicks concentrated more on kids. It promoted itself as a drink which makes the kids taller, stronger and sharper. Junior Horlicks Horlicks Ninja Mothers Horlicks Horlicks Lite

TV Advertisements: Horlicks used television as a direct medium to reach the consumers. It created the ads to promote the brand in such a way that they are going on in the next house itself. This penetrated into the customers successfully. Print Advertisements:

Horlicks also used the print media apart from the TV. This ad of Horlicks in the newspapers is the one ad which stood first in creative ad list which managed to grab more of the viewers eyetime. Public Promotions: Apart from the TV and Print media ads Horlicks also participated in events like Merchandi Sing, Sampling programs in schools, shopping malls and sponsored events which helped Horlicks to reach the people more. It is also promoted by doctors. Horlicks conducted Taller Stronger Sharper Campaign with 869 students in Hyderabad.

Segmentation: Horlicks has segmented market based on demographic conditions.


Horlicks Lite, Sugar free Market Segment, Diabetic Patients

Junior Horlicks, Age Group 0-5

Women's Horlicks, Age Group 19-50

Horlicks Ninja, Teenagers

The four different variants of the Horlicks are targeting different segments of the market. Junior Horlicks is targeting the age group 0-5 years. With the tagline A-Z Nutrition. Horlicks Ninja is targeting the teenagers segment with the tagline Taller Stronger Sharper. Womens Horlicks is only designed for women. Horlicks lite is for the people suffering from Diabetes and who are health conscious.

Positioning: a) b) c) d) Initially Horlicks entered in Indian market as Malted milk drink. Repositioned itself to The Great Family Nourisher in 2003. Has come up with new logo, new tagline: Taller stronger sharper. Horlicks is now positioned as a pleasurable nourishment drink aimed at children.

Pricing: Horlicks pricing has been one of the key factor to the topline and bottom line growth of the company. GSK typically takes two-price revisions every year. However, the last price hike was in early quarter and the company has not taken any midterm price hike. We believe that aggressive price hikes going forward could be difficult given current low inflation and also due to the fact that a large portion is also consumed by mass market. Aggressive price hike could result in switch to Browns in the long term. For example, Horlicks second largest selling SKU is 500gm-refill pack priced currently at Rs 98 - the price could cross psychological level of Rs 100 after the next revision.

Consumer Buying Behavior: Today health drink is very common in every house. Horlicks has 23 nutrients and vitamins which provides required for a day. People today are busy in going out for working. Such people tend to buy a thing which can be prepared instantly rather than that takes time. This made people to buy Horlicks.