International School of Management Studies

Pune – Maharashtra - India

STRATEGIC MARKETING MANAGEMENT

LEARNING OUTCOME 3, 4...

Mr. Bodhadeep Chaudhury

(MBA INTERNATIONAL)

Statement of Authenticity

I certify that the work submitted in regard to this assignment is my own and wherever the works of
others have been used to support my work, the credit has been duly acknowledged.

Student Email: bodhadeep.isms@gmail.com Date: 16.11.19

 Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

TABLE OF CONTENTS

Serial No Particulars Page no

1. Executive Summary 3

2. Task 1 4-6

3. Task 2 6-9

4. Conclusion 10

5. Bibliography 11

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 Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

Executive Summary
The case study is about the Horlick’s (Health Drinks) in India. Based on study of the various secondary
and primary data sources Horlick’s marketing strategies for increasing marketing share in the Indian
market are described.
The study also describes segmentation and growth strategies used by Horlick’s and proposes suitable
marketing mix tactics.
Task 01: Use appropriate marketing techniques to determine growth opportunities for Horlicks (Health
drink) has in Indian Market. Plan how to use marketing strategy options in a market. Create appropriate
strategic marketing objectives for a market using the 4P's method.
Task 02: Give a detailed environmental analysis for Horlicks (Health drink) - external, internal and
competitive. What kind of impact does the changes in the external environment has on the marketing
strategy? Conduct an internal analysis to identify current strengths and weaknesses in a marketing
strategy. Identify key emerging opportunities for the company and suggest strategies to explore the
same.

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 Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

Task 01.
INTRODUCTION
Horlicks is an organization of a malted milk hot beverage. It was produced by GlaxoSmithKline (GSK)in
United Kingdom, South Africa, New Zealand, Bangladesh, India, Pakistan and Jamaica and under the
permitting in the Philippines and Malaysia. Horlicks reached India with British Army end of World War I
saw Indian warriors of British Indian Army carrying it back with them as an eating routine enhancement.
Punjab, Bengal and Madras Presidencies turned out to be early adopters of Horlicks and part of wealthy
Indians took to drinking Horlicks as a family drink in mid-1940s and 1950s. Imagined in 1873 by James
Horlicks, the brand has been accessible in India for a long time.
India, even today is by a long shot, the greatest market for Horlicks, where it has generally been
showcased as 'The Great Family Nourisher'.
The Indian plan for Horlicks is somewhat not quite the same as in most different nations, as there it is
manufactured from wild ox milk instead of cow milk because of social concerns. New items have been
grown explicitly for India, for example, elective flavors and unique definitions for small kids and bosom
encouraging mothers. The first flavor accessible in Quite a while, as in Britain, was malt; throughout the
years, new flavors have been presented, for example, vanilla, toffee, chocolate, nectar, and
elaichi(cardamom). Junior Horlicks 1-2-3 is a huge expansion that is exceptionally intended for pre-
school students. Horlicks is also available in scone structures.

3.1 Use appropriate marketing techniques to ascertain growth opportunities in a market

MARKETING MIX 4 PS OF HORLICK’S
Promoting Mix is a device utilized by the associations to figure items or administrations for clients.
Marketing mix is finished by utilizing 4Ps of marketing which are, product, place, price, promotion.
The marketing mix helps an association the most effective method to blend different components of the
4Ps so as to make an important item for the client. The principle target of marketing mix strategy is to
make the correct item at right cost at the opportune spot with right advancement.

MARKETING MIX – PRODUCT

Horlicks is one of the main malt-based beverages on the planet. Item combination of Horlicks is assorted
as far as product offerings and item profundity. This can be comprehended by its item system in its
advertising blend. For product blend, Horlick has wellbeing drink, oats, rolls and moment noodles. In the
wellbeing drink classification, it has various variations for various age gatherings and necessities. There is
Mother's Horlicks, Junior Horlicks, Horlicks Promind, Women's Horlicks, Lite Horlicks, Growth+ Horlicks
and Cardia+ Horlicks. The items are based around the age bunches as well as around the ways of life of
individuals. Light Horlicks is uniquely made to counter harm brought about by oxidative pressure. It has
no additional sugar and zero cholesterol taking into account a working grown-up's need. Horlicks Lite is
made for the old who have diabetes. Growth+ cases to give supplements like amino acids, Vitamins and
minerals which are fundamental for a youngster's development. It professes to give adjusted
development in wording legitimate tallness and weight. Horlicks drinks have a wide scope of flavors like
chocolate, caramel, vanilla, Badam and Kesar. It offers bundling in pet containers of different amounts
like 200 grams, 500 grams with tops off bundles as high as 2 kilograms. With the dispatch of Horlicks
oats Horlicks have gone to the hot oat showcase. It was propelled in India in 2011. By propelling the
solid nourishment items Horlicks is reinforcing its situation as a nutritious and wellbeing cognizant
brand.
MARKETING MIX – PLACE
Horlicks items are accessible generally crosswise over food supplies, markets and so forth. GSK has
ensured that Horlicks is accessible at each side of the nation. It is critical to have a solid dissemination
inclusion to drive volume development. The organization has fabricating offices in Punjab, Andhra
Pradesh and Haryana. It additionally has zonal administrative centers in four metros which handles that
specific district's deals and showcasing. Horlicks is particularly pervasive in eastern and southern pieces
of India and has been attempting to pick up showcase in northern and western pieces of India. The
circulation channel pursued by Horlicks begins with the manufacturing plant and afterward the items
gets disseminated to various channels and from the merchants to wholesalers and afterward at long last
to the retailers. Retailers need to stock increasingly more of Horlicks as it is broadly obtained by people

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 Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

in general. GSK customer wellbeing has more than 700 merchants and an inclusion of 8 lakh retail
outlets. Rustic India's infiltration is low contrasted with urban India.
MARKETING MIX – PRICE
Horlicks is viewed as an excellent item as it gives healthy benefit to each fragment in the market be it a
child or a grown-up. Regardless of that it is evaluated intensely. Horlicks pursue esteem included
estimating in its advertising blend. It gives the customers the incentive for the cash they spend as the
item gives part of medical advantages. The limits given on Horlicks items relies on the spot of offer as
mass purchasing and volume impact such choices. Horlicks' 500-gram container costs Rs 230 while Boost
costs Rs 255. In this industry, Pedia-sure chocolate drink is the costliest item in this classification. Junior
Horlicks is a little costly than measures Horlicks as it is high on supplements required for development
and improvement. Mother's Horlicks is somewhat costly and costs around Rs 475. It takes into account
the particular needs of a mother in each phase of her pregnancy. Every one of the variations have top
off packs in very season with value scope of Rs 119 to Rs 395.
MARKETING MIX – PROMOTION
Horlicks' advancement and promoting cash is spent on TV, print, online advertisements and so on. Its
shows the forceful advertising blend limited time technique of Horlicks. They don't want to have
enormous superstars as their image diplomats as the incentive they offer for their item is their legend.
The vast majority of the correspondence done by Horlicks goes for moms as they are the purchaser of
the item for their children and family. Additionally, Horlicks have likewise utilized their researchers and
other medicinal services experts in their commercials to pick up the trust of the purchasers.
Radio is additionally a successful channel utilized by Horlicks to arrive at moms and purchasers in remote
parts of the nation. In some urban outlets, Horlicks have even made a play region for kids to pull in
shoppers and make mindfulness and buzz around the items. Horlicks has additionally spent a great deal
on statistical surveying to continually think about what shopper needs. Throughout the years Horlicks
have additionally utilized the bugging intensity of youngsters and utilized it to their advantage.
Configuration firm Ray + Keshavan were behind the achievement of Horlicks' new look when they
entered the nourishment and refreshments with plenty of contributions. Horlicks patched up its logo
and bundling.

3.2 Plan how to use marketing strategy options in a market

MARKETING STRATEGIES OF Horlick’s

Marketing strategy implies understanding the requirements of the clients and give the item which
satisfies the wants of the clients. It likewise sees how enormous the objective market is. Marketing
encourages the organization to recognize the ability of serving the best and it causes the organization to
structure and advance the item and administrations appropriately. Numerous associations have their
strategic marketing plans in the composed arrangement with the goal that they can choose what
promoting plans they are going to use in the chose time allotment. Marketing strategy causes an
association to shape the medium and long-haul strategies that they are going to use for the association's
target and objectives.

Strategies used by Horlick’s

One of the most hair-raising yet disputable crusade let by Horlick was that of "Taller, Stronger,
Sharper" in which it was demonstrated that among two gathering of kids, one was given Horlick
drink and the other and other was given typical milk-based drinks and following a month the
test was directed where it was indicated that children drink Horlick was seen as Taller, more
grounded, and more honed than the other gathering.

Another battle was finished by children's whiz Darsheel Safary seen alongside certain children
drinking Horlicks and spreading the thoughts of "Badlo appne bachpan ka size" (change the
stature of youth) while hurrying through study hall, staffroom, housetops, and play area. And

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 Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

afterward they Campaign of chocolate enhance with kids "Doodh ka glass khali" (presently milk
glass will discharge)
FINANCIALS/MARKETING SHARE
Market share is a bit of a market which is constrained by a specific organization or an item. Market share
is determined by taking the organization's deals over the period and isolating it by the complete offers
of the business over a similar period. The piece of the overall industry is utilized to give a general
thought of the size of an organization in connection to its market and different contenders.
Horlicks is the pioneer in the Rs. 5,500 crore health food classification in India, with a market
share of 65% by volume and 56.3% by esteem as of March 2017. Its rivals here incorporate Bournvita
(Mondelez), Complan (Kraft-Heinz), and Milo (Nestle). Presently, Nestle, Kraft-Heinz, and Unilever could
be competing for the brand, Reuters announced referring to sources.
Portions of GSK Consumer Healthcare were down 8.29% on the BSE in early exchange on March 28.
SEGMENTATION –TARGET MARKET
Horlicks has been contending with the caffeinated drinks, fundamental nutrients/minerals
enhancements and substitutes like milk, and bundled organic product place.
The health& nourishing beverages advertise is advancing itself to build its piece of the pie and
development numbers through market infiltration, and brand/item expansions.
Clients of Horlicks are middle income group clients who like to be sound and, in this manner, take solid
enhancements drink which is loaded up with countless nutrient and minerals.
Horlicks essentially targets 4 arrangements of the client, for example, infant and little children with the
item junior Horlicks and chocolate season Horlicks, grown-ups with ordinary malt Horlicks, pregnant and
mature age ladies with mother's Horlicks and ladies' Horlicks and Horlicks light intended for dynamic
grown-ups.

3.3 Create appropriate strategic marketing objectives for a market

STRATEGIC MARKETING 4Ps OBJECTIVES FOR HORLICKS

Strategic marketing objectives implies a lot of objectives and goals made by the association when they
are marketing or advancing their items and administrations to draw in the potential clients which ought
to be finished inside given timeframe. The marketing goals for any association ought to incorporate how
to build the item or administration mindfulness in the focused-on clients, by making focused on group of
spectators mindful of the highlights of the item and administrations.
The strategic marketing objectives for Horlicks can be as follows:

To extend in to rural Indian markets, as of now Horlicks is sold distinctly in urban markets in India
To expand the market share, the organization needs to adjust new elevating procedures to draw in more
client base for their items
To keep the item price range in a fashion that clients ought not stop for a second to purchase the item.
Reasonable price range for the item can build the profit and market share for the organization.
To comprehend changing interest of the clients and grow new item or highlight to satisfy their needs
which will result into increment in the profit and the market share of the organization.

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 Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

Task 02.

4.1 Report on the impact of changes in the external environment on a marketing strategy
PORTERS 5 FORCE MODEL

Threat of substitutes: – Substitute merchandise or services that can be utilized instead of an

organization's items or services represent a risk. Organizations that produce merchandise or services for
which there are no nearby substitutes will have more capacity to build costs and lock in positive terms.
At the point when close substitutes are accessible, clients will have the choice to renounce purchasing
an organization's item, and an organization's capacity can be debilitated.
Conventional drugs is of great dangers because of medications from terminated licenses are
effectively replicated; Integral Alternative Medicines is a similar item that is conveyed with the exception
of simply the brand name and cost; At present in health drink industry there are numerous players
separated from Horlicks and along these lines because of it the risk of substitutes is "HIGH". For
instance, Bournvita, Complan.
Competitive Rivalry: – The bigger the quantity of competitors, alongside the quantity of identical items
and services they offer, the lesser the intensity of an organization. On the other hand, when focused
competition is low, an organization has more prominent capacity to charge more significant expenses
and set the terms of arrangements to accomplish higher deals and benefits.
Cut throat competition; The industry is forceful and dynamic and GSK has utilized premonitions
and arranging which has kept them in the business for such a long time. At present Horlicks has a market
share of over half in the Indian market and yet, it is confronting an intense challenge from Bournvita,
which is holding around 20% of the market.
Buyer’s Power: It is influenced by what number of purchasers or clients an organization has, how
noteworthy every client is, and the amount it would cost an organization to discover new clients or
markets for its yield. A littler and all the more dominant customer base implies that every client has
more capacity to haggle at lower costs and better arrangements.
Individual buyers don't represent a noteworthy risk to GSK; Generally safe since high number of
purchasers against a smaller number of providers;
Supplier’s Power: – It is influenced by the quantity of providers of key contributions of a decent or
service, how one of a kind these inputs are, and the amount it would cost an organization to change to
another provider. The less providers to an industry, the more an organization would rely upon a
provider. Accordingly, the provider has more power and can drive up input expenses and push for
different preferences in exchange. Then again, when there are numerous providers or low exchanging
expenses between rival providers, an organization can keep its info costs lower and upgrade its benefits.

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 Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

GSK's significant suppliers are labor, Raw material providers, patients in clinical trials, study staff
and others running from production marketing and appropriation. High impact of suppliers as they hold
the key to auspicious conveyances and quality material. Horlicks has perhaps the best supply and
conveyance systems. It has in excess of 600 merchants and 5000+ sub-wholesaler. It is accessible in
more than 1.5 million outlets.
Threat to new entrants: - The less time and cash it costs for a contender to enter an organization's
market and be a powerful contender, the more a built-up organization's position could be altogether
debilitated. An industry with solid boundaries to entry is perfect for existing organizations inside that
industry since the organization would have the option to charge more significant expenses and haggle
better terms.
The expense of entering - amazingly high; Economies of scale — low edges; The licenses - a
gigantic hindrance; Brand esteem - GSK a well-known and acknowledged brand in the business; FDA
guidelines severity of the guidelines will go about as a hindrance; At present the wellbeing savor
showcase India is developing at a decent pace. As per a study in 2006 the all-out market was assessed to
be around 2.77 billion at retail selling costs, which is a 30.7 % development since 2002. Along these
lines, the risk of new participant is 'High'.

4.2 Conduct an internal analysis to identify current strengths and weaknesses in a marketing
Strategy
Horlick’s SWOT analysis
Strengths:
Horlicks has a solid sponsorship of parent organization GSK Consumer
UK, India, Hong Kong, Australia and so forth are a few spots where Horlicks is provided
Horlicks has numerous variations for example class malt, chocolate, kesar badam, elaichi and so
forth.
Solid marking and advancement have expanded brand familiarity with Horlicks
Incredible appropriation arrange implies Horlicks can be obtained from markets, supermarkets and
so forth.
Online nearness has urged individuals to get it
Horlicks has items for developing children, moms and ladies and so forth.
Weaknesses
Limited market shares inferable from solid rivalry in the division
Horlicks isn't as broadly accessible all around when contrasted with its worldwide rivals
Opportunities
Horlicks can build its quality in Europe and Americas
Diverse bundling styles can help increment offers of Horlicks
Differentiating into wellbeing bites can likewise enable the brand to get the market
Threats
Extraordinary rivalry can lessen piece of the overall industry of the brand
Alternate health drinks can diminish the offers of Horlicks later on

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 Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

4.3 Propose strategic marketing responses to key emerging themes in a marketing strategy
OPPORTUNITIES FOR HORLICKS IN INDIAN MARKET
Indian health drink industry is developing a direct result of their wellbeing item which is useful the
Indian mother for their kids Indian advertise is a very enormous market for Horlick as they a presenting
new enhance that draw in the most client. Horlick fulfill their client like youngsters most like chocolate
enhance they item more chocolate enhance in their item that draw in the Indian mother to purchase the
item for their children. Some big name who publicize the Horlick item through TV like R. Madhavan and
Veteran entertainer Amitabh Bachchan and so on with them Horlick can pull in increasingly potential
client. In the nation like India, where has a colossal populace that implies any organization is beginning
will get development in Indian market. Like an organization Horlick they as of now catch the gigantic
market they need just need to present an alternate kinds of amount item like enormous pack just as
increment the flavor that more devour in the market just make a major amount result of that that will
pull in their client. They likewise need to stable the cost of their item that will moderate by each
gathering of individuals since Indian client is well alluring to the cost when they buy the item. Just
viewed an item in a shop that they are giving a blessing with the item who buy their item, that is likewise
an extraordinary thought to expand the deals the organization needs to give a blessing as identified with
their class for whom the item is made for, Horlick needs to make a progressively visual promotion in
which their client get pull in when they see like feeling to Indian client they needs to publicize their just
in a specific channel where ladies observe most. That all my however that will development the Horlick
in future and some are now taken by them.

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 Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

Conclusion
The case study is about the Horlick’s (Health Drinks) in India. Horlicks is the name of an organization and
of a malted milk hot beverage. Imagined in 1873 by James Horlicks, the brand has been accessible in
India for a long time. New items have been grown explicitly for India, for example, elective flavors and
unique definitions for small kids and bosom encouraging mothers. Junior Horlicks 1-2-3 is a huge
expansion that is exceptionally intended for pre-school students. Marketing strategy implies
understanding the requirements of the clients and give the item which satisfies the wants of the clients.
One of the most hair-raising yet disputable crusade let by Horlick was that of "Taller, Stronger, Sharper"
in which it was demonstrated that among two gathering of kids, one was given Horlick drink and the
other and other was given typical milk-based drinks and following a month the test was directed where
it was indicated that children drink Horlick was seen as Taller, more grounded, and more honed than the
other gathering. Another battle was finished by children's whiz Darsheel Safary seen alongside certain
children drinking Horlicks and spreading the thoughts of "Badlo appne bachpan ka size" (change the
stature of youth) while hurrying through study hall, staffroom, housetops, and play area. And afterward
they Campaign of chocolate enhance with kids "Doodh ka glass khali" (presently milk glass will
discharge). Promoting Mix is a device utilized by the associations to figure items or administrations for
clients. Marketing mix is finished by utilizing 4Ps of marketing which are, product, place, price,
promotion. The marketing mix helps an association the most effective method to blend different
components of the 4Ps so as to make an important item for the client. The principle target of marketing
mix strategy is to make the correct item at right cost at the opportune spot with right advancement. In
the wellbeing drink classification, it has various variations for various age gatherings and necessities. It
has no additional sugar and zero cholesterol taking into account a working grown-up's need. It
additionally has zonal administrative centers in four metros which handles that specific district's deals
and showcasing. GSK customer wellbeing has more than 700 merchants and an inclusion of 8 lakh retail
outlets. Horlicks is viewed as an excellent item as it gives healthy benefit to each fragment in the market
be it a child or a grown-up. It gives the customers the incentive for the cash they spend as the item gives
part of medical advantages. Horlicks' advancement and promoting cash is spent on TV, print, online
advertisements and so on. Horlicks has additionally spent a great deal on statistical surveying to
continually think about what shopper needs. Throughout the years Horlicks have additionally utilized the
bugging intensity of youngsters and utilized it to their advantage. Market share is a bit of a market which
is constrained by a specific organization or an item. Its rivals here incorporate Bournvita (Mondelez),
Complan (Kraft-Heinz), and Milo (Nestle). Presently, Nestle, Kraft-Heinz, and Unilever could be
competing for the brand, Reuters announced referring to sources. Horlicks has been contending with
the caffeinated drinks, fundamental nutrients/minerals enhancements and substitutes like milk, and
bundled organic product place. The health& nourishing beverages advancing advertise is itself to build
its piece of the pie and development numbers through market infiltration, and brand/item expansions.
Clients of Horlicks are middle income group clients who like to be sound and, in this manner, take solid
enhancements drink which is loaded up with countless nutrient and minerals. Strategic marketing
objectives implies a lot of objectives and goals made by the association when they are marketing or
advancing their items and administrations to draw in the potential clients which ought to be finished
inside given timeframe. The marketing goals for any association ought to incorporate how to build the
item or administration mindfulness in the focused-on clients, by making focused on group of spectators
mindful of the highlights of the item and administrations. To have an alternate marketing strategy for
each market area they are managing in. To keep the value scope of the item so that clients ought not
stop for a second to purchase the item. Reasonable cost go for the item can build the benefit and piece
of the overall industry for the organization. Horlicks has numerous variations for example class malt,
chocolate, kesar badam, elaichi and so forth. Incredible appropriation arrange implies Horlicks can be
obtained from markets, supermarkets and so forth. Availability of substitutes: – At present in health
drink industry there are numerous players separated from Horlicks and along these lines because of it
the risk of substitutes is "HIGH". Buyer’s Power: –The greater part of the purchasers’ incline toward
Horlicks, so it has the significant offer. Supply Power: – Horlicks has perhaps the best supply and
conveyance systems. Threat to new entrants: -At present the wellbeing savor showcase India is
developing at a decent pace. Some big name who publicize the Horlick item through TV like R.
Madhavan and Veteran entertainer Amitabh Bachchan and so on with them Horlick can pull in
increasingly potential client.

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 Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

Bibliography
https://www.marketing91.com/
https://economictimes.indiatimes.com/industry/cons-products/fmcg/gsk-fy19-value-share-in-health-
drinks-weakens/articleshow/69350925.cms
https://brandyuva.in/2019/08/marketing-strategies-of-horlicks.html
https://marketingmixx.com/marketing-mix-of-horlicks/
https://groups.google.com/forum/#!topic/fiib-gmg16/RVr9Wl1gL2c

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