MARKETING ANALYSIS OF HORLICKS

Submitted by: Submitted to:

 Acknowledgement

We would like to express our gratitude to Prof. ___________ for his invaluable guidance and
support throughout this project. His insights and feedback were crucial in shaping our
understanding and approach.

We are thankful to the management and staff at Hindustan Unilever Limited and
GlaxoSmithKline Consumer Healthcare Ltd. for providing necessary data and resources. Their
cooperation was essential for our analysis.

A special thanks to all the respondents who participated in our surveys and interviews, providing
valuable data and perspectives.

We also appreciate the support of our families and friends during this project.

Finally, thank you to our team members for their dedication and hard work.

Thank you all for your support.

Sl. No. Contents Page No’s.

1. Introduction

2. Objectives of the Project

4. Executive Summary

5. SWOT Analysis

6. PEST Analysis

7. Porters 5 Forces Analysis

8. Consumer Behavior Analysis

9. Research Methodology

10. Data Analysis and Data Description

11. Results

12. Findings

13. Positioning Strategy

14. Recommendation

15. Conclusion

16. References
 INTRODUCTION
Horlicks, a leading brand in the health food drinks category, has established itself as a household name
in various markets, particularly in India. Originating as "Horlick's Infant and Invalids Food," it quickly
expanded its product range to cater to a broader audience, including children, adults, and specific
segments like mothers and women. Over the years, Horlicks has maintained its market leadership
through continuous product innovation, strategic marketing, and a robust distribution network.

This project aims to conduct a comprehensive marketing analysis of Horlicks, focusing on its strategies,
market positioning, consumer behavior, and competitive landscape. By evaluating the strengths,
weaknesses, opportunities, and threats (SWOT) of Horlicks, along with a PEST analysis (Political,
Economic, Social, Technological) and Porter’s Five Forces analysis, we aim to provide a detailed
understanding of the brand's market dynamics.

The study will also delve into the consumer behavior associated with Horlicks, examining the factors
that influence purchasing decisions and brand perception. Additionally, we will explore the positioning
strategy of Horlicks, understanding how it segments its client base and targets each segment effectively.

By the end of this report, we aim to present actionable insights and recommendations for Horlicks to
enhance its market presence, address potential challenges, and capitalize on growth opportunities in the
ever-evolving health food drinks market.

This analysis is crucial for understanding how Horlicks has sustained its market position and what
strategies it can adopt to continue thriving in a competitive environment.
 OBJECTIVE OF THE PROJECT

The purpose of this study is to:

 Understand and evaluate the various marketing methods used by Horlicks, including:

 Potential weaknesses

 Growth opportunities

 Threats from rivals

 New market entrants

 Assess multiple risk factors associated with the brand.

 Research consumer behavior and perceptions of the brand to understand:

 Factors affecting consumers' purchasing decisions

 How these insights can improve Horlicks' advertising efforts.

 Examine and research the positioning strategy of Horlicks to understand:

 How Horlicks segments its client base

 How each segment is targeted in a distinctive and efficient way.

 EXECUTIVE SUMMARY
This project covers a comprehensive marketing analysis of Horlicks, addressing the following aspects:

1. Market Positioning Strategy:

 Analysis of Horlicks' positioning in the health food drinks market.

 Evaluation of the brand's segmentation strategy and target demographics.

 Comparison with key competitors.

2. SWOT Analysis:

 Strengths: Identifying the core strengths of Horlicks that contribute to its market
leadership.

 Weaknesses: Highlighting areas where the brand faces challenges or limitations.

 Opportunities: Exploring potential growth avenues and market expansion opportunities.

 Threats: Assessing external factors that could negatively impact the brand.

3. PEST Analysis:

 Political: Examining the impact of government regulations, tax policies, and political
stability on Horlicks.

 Economic: Analyzing economic factors such as inflation rates, consumer purchasing

power, and market conditions.

 Social: Understanding social trends, demographic changes, and consumer behavior

influencing Horlicks.

 Technological: Evaluating the role of technological advancements in production,

distribution, and marketing of Horlicks.

4. Porter’s Five Forces Analysis:

 Threat of New Entrants: Assessing the barriers to entry for new competitors in the health
food drinks market.

 Threat of Substitutes: Identifying alternative products that could replace Horlicks.

 Bargaining Power of Buyers: Evaluating the influence of consumers on pricing and

quality.

 Bargaining Power of Suppliers: Analyzing the power of suppliers in the production

process.
  Competitive Rivalry: Understanding the level of competition within the industry.

5. Consumer Behavior Analysis:

 Investigating consumer perceptions, preferences, and buying behavior related to

Horlicks.

 Identifying key factors influencing consumer decisions to buy Horlicks.

 Evaluating customer satisfaction and brand loyalty.

6. Data Collection and Analysis:

 Gathering primary data through surveys and interviews with consumers.

 Using statistical tools to analyze the data and draw meaningful conclusions.

7. Findings and Recommendations:.

 Providing actionable recommendations to enhance Horlicks' market position.

 Suggesting strategies for addressing identified challenges and leveraging growth

opportunities.

8. Hypothesis Testing:

 Formulating and testing hypotheses related to consumer behavior

 Using statistical tests to validate assumptions and support the analysis.

9. Conclusion:

 Summarizing the overall insights from the project.

 Highlighting the strategic implications for Horlicks and potential future directions.
 SWOT ANALYSIS

Given the foregoing information about the firm and the product, it is necessary to do a SWOT
analysis of Horlicks to determine which elements are favourable and which are negative.

Our key findings from SWOT analysis are shown below:

Strengths

The strength of Horlicks are as follows:

Strong Distribution Network

Horlicks has a well-developed distribution network and is well-established in its target areas. It
has done a good job of reaching out to both urban and rural customers.
Horlicks currently maintains a sales depot in every state from which the product is distributed to
wholesalers. There are 1,800 wholesalers in the distribution network, who distribute items to
about 4,25,000 retail shops around the country. The products can be found in local grocery
stores, retail outlets, and large showrooms with food-related departments. Horlicks, Amazon, Big
Basket, and other e-commerce websites can all be used to purchase the product. Apart from
this, Horlicks is also available across e-pharmacies like 1mg, PharmEasy etc.

Strong market share in countries present

Horlicks is currently available in India, Bangladesh, New Zealand, Australia, Malaysia, Hong
Kong, Sri Lanka, and Jamaica. It controls the majority of the market share in these countries'
health food and beverage marketplaces. Horlicks has a market share of nearly 45 percent. High
revenue and cash flow are generated by the company's strong market share.

Multiple market offerings as per target groups

Horlicks began as the first malted milk drink mix powder. It later expanded into a variety of
items aimed at various demographics. Horlicks now includes products for toddlers, children, and
adults. Horlicks also launched a number of products aimed at bone nourishment, as well as
nutrition for women during pregnancy and lactation.

Multiple Variants

Horlicks introduced new flavours such as vanilla, toffee, chocolate, honey, elaichi (cardamom),
and Kesar Badam to appeal to Indian consumers' preferences. Consumers were given a more
specialised flavour offering as a result of this.

Weaknesses

The weaknesses of Horlicks are as follows:

1. Overly reliant on a few countries: Horlicks has a strong presence in countries such as
India and the United Kingdom, which contribute a significant portion of its
 revenue. This demonstrates Horlicks’ reliance on these countries, and any economic,
political, or social change in these countries can have an impact on Horlicks and its business.

2. Low Global Presence: Horlicks has a limited global presence, with a presence in only 13
countries. It is overly focused on its current markets and misses out on opportunities in other
markets.

Opportunities

The opportunities of Horlicks are as follows:

Increase penetration in emerging Markets

Emerging economies' spending patterns are shifting. Emerging markets offer a wealth of
potential for the organisation to expand in the future due to changing lifestyles and increased
disposable incomes. Horlicks has the potential to grow its consumer base because it is positioned
as a health-conscious brand.

Expanding product line

Horlicks has gained popularity as a health drink among children and women. Horlicks may use
its image to launch new health-related goods, which can help improve income.

Global Expansion

Horlicks could consider growing in Europe and America, particularly in places where Unilever’s
goods are well-known. This can assist in increasing revenue and broadening the consumer base.
Threats

The threats of Horlicks are as follows:

Intense competition

Horlicks faces stiff competition from Cadbury's Bournvita, Milo, Complan, and Maltova, to
name a few. If Horlicks does not take advantage of this opportunity, it will have a negative
impact on its market share and revenue.

Other Nutrition Drinks

New innovations are on the rise in this market as the client base for health consciousness grows.
Consumers may switch from malted drinks to alternative healthy nutrition drinks such as natural
or packaged juices, processed milk, etc.

PEST ANALYSIS
Political Factors

Tax rates on health-based drinks

The government continuously adjusts the GST rates on various products, which has a direct
impact on sales. The GST rate on health-related drinks like Horlicks is now 18%. If the
government changes this rate in the future, it will have a direct influence on sales and
profitability.

Prices paid to farmers for wheat, barley, and milk purchased

Agricultural products such as wheat, barley, and milk account for a significant portion of the
total cost of Horlicks' many products. As a result, government laws establishing minimum prices
to be paid to farmers for these products will have an impact on Horlicks' operations.

Economic Factors

Economic conditions of the country

During this pandemic, the Indian economy is having a difficult time. Aggregate demand has been
negatively impacted, resulting in GDP reduction. Consumers' disposable earnings are also
suffering as a result of this, which will have an impact on Horlicks’s demand in the short term.

Exchange Rates

Horlicks is highly exposed to currency rate risk because it imports raw materials and exports
finished products to a variety of nations. As a result, it must monitor these rates on a frequent
basis in order to take appropriate action.

High competition
Though Horlicks and Boost presently hold a 60 percent market share in the health drinks
business, other key firms such as Mondelez International – Bournvita, H.J Heinz – Complan,
and Abbott Nutrition –Pediasure offer a significant threat to Horlicks.

Socio-Cultural Factors

Shifts in the attitude of the consumers

People have formed a positive attitude about health drinks these days, and consumers of all ages
have begun to demand them. Horlicks’ demand has risen significantly as a result of this shift in
people's attitudes.

Low levels of nutrition in India

Malnutrition is a problem for India's adult population. Anemia affects 52.6 percent of
reproductive-age women, while diabetes affects 9.5 percent of adult males and 8.6 percent of
women. Obesity affects 5.3 percent of women and 2.9 percent of men. These data demonstrate
how significant health-related items will be in India in the future.

Technological Factors

Technological advancements in production processes

Horlicks' production techniques change frequently, affecting the amount of water and energy
used in the process.

STEER engineering, a developer of breakthrough materials platform technologies, had

previously taken GSK to court over the use of its revolutionary technology in the production of
Horlicks. GSK has even published a public statement recognising STEER's role in developing
game-changing Horlicks’s technology. The innovative technique took up half the space of
regular manufacturing, used a fifth of the water, and used 75 percent less energy.
This demonstrates how technology improvements have the potential to improve Horlicks’s
production processes and lower production costs in the future.

PORTER’S FIVE FORCES ANALYSIS

The Porter’s Five Forces methodology devised by Michael E. Porter is being used in this
project to analyze the industry of health food drinks in India and understand the competitive
advantages of Horlicks. The five forces involved are:

1. Threat of New Entrants

2. Threat of Substitutes

3. Bargaining Power of Buyers

4. Bargaining Power of Suppliers

5. Competitive Rivalry
This tool is a typical method for determining how each of the market drivers affects a company's
operations and then developing appropriate business plans based on the findings. Furthermore,
the approach is used to thoroughly and deeply analyze the markets that corporations intend to
approach before making a move, and it is in this context that this analysis is conducted.
Buyer’s Bargaining Power: Low

The analysis indicates that the buyer’s bargaining power in the Indian health beverage industry is
considered to be low.

● Number of consumers: In India, the number of consumers in the health food and
beverage business is anticipated to be large, with a market of roughly $ 860 million.
● Price Sensitivity: Buyers are thought to be less price sensitive since they care about
the quality and brand of the product they would consume for nourishment. Furthermore,
it is difficult to change consumer behavior when the product is ingrained in long-standing
habits, resulting in brand loyalty.
● Cost of Changing: Cost of changing the product is low.

Supplier’s Bargaining Power: High

The analysis indicates that the supplier’s bargaining power in the Indian health beverage
industry is considered to be high.

● First Mover Advantage: Horlicks has a strong advantage in terms of being the first
player in the market and therefore has captured the market share.

● Number & Size of Suppliers: Bourn vita, Complan, Pediasure, Boost, Nestle
Resource Opti, Ensure Adult Nutrition Health Drink, Protinex, and others are among the
many players in the health beverage sector. Horlicks is the market leader, with a market
share of roughly 45 percent.
Source: redseer.com, 2017
 Threat of new entrants: Low

The analysis indicates that the threat of new entrants in the Indian health beverage industry is
considered to be low.

● Specialist Knowledge (R&D Expense): Companies invest a significant amount of

money on research and development in order to stay up with the pace of change.
● Trade Regulations: All food beverage products have to comply with stringent rules
and register with the Food Safety and Standard Regulations India.
● Setting up of distribution network: Setting up a new distribution network required
for the manufacturer to reach clients, particularly in remote areas of the country, takes a
lot of time and money.
● Barriers to entry: Because brand loyalty is great, the company will encounter strong
opposition and limited demand. As a result, capturing market share would necessitate
innovative offerings.

Competitive Rivalry: Low

The analysis indicates that the competitive rivalry in the Indian health beverage industry is
considered to be low
Number of Competitors: Horlicks is up against a slew of other brands in the market. Horlicks
confronts competition from market rivals who specialize in different age groups since it has split its
products into several age groups
 Segment Horlicks Products Competitors
Preschool children Junior Horlicks Pediasure

Women Women’s Horlicks Protinex Mama

Mother’s Horlicks Bournvita Cadbury Health Drink
for Women
Health conscious Horlicks Lite Protinex
& diabetic adults Horlicks Protein+
Teenagers: Horlicks classic Bourn vita
Chocolate and Flavors: Badam Complan
other flavoured kesar, chocolate,
Horlicks

● Quality Differences: Horlicks is able to keep market share despite charging 15%
more than the next rival. Horlicks was able to clearly segment its market and tailor-
made items to satisfy the consumer's individual wants. Horlicks also offers a wide range
of tastes, ranging from vanilla to caramel to chocolate.
● Switching Costs: The switching costs for buyers is considered to be low.
● Customer Loyalty: Horlicks is a 145-year-old brand that was founded in India after
World War II in 1958. With a market share of 45% in India, it is one of the most trusted
brands in the health drink category, therefore the increased costs have no impact on the
quantity demanded. As previously said, brand loyalty is regarded to be high, while price
sensitivity is considered to be low.
 Horlicks Products Price per 450-500 gm
Classic malt Rs. 242
Junior Rs. 275
Mother’s Rs. 491
Growth+ Rs. 535
Women’s Rs. 295
Protein+ Rs. 550
Lite Rs. 294
Others Player Price per 450-500 gm
Bourn Vita Rs. 204
Complan Rs. 265
Boost Rs. 249

Threat of Substitutes: High

The analysis indicates that the competitive rivalry in the Indian health beverage industry is
considered to be high.

● Brand Positioning: Horlicks is positioned as a "Family nourishment brand," thus it

doesn't appeal to the youth as much as brands like boost and Bourn Vita, which have
taglines like "Boost is the secret of my energy" and "Tayyari Jeet ki." As a result, there's
a good likelihood this segment will be substituted. In the kids and teenagers’ segment, it
has been losing market share to pediasure and Bournvita.

● Pricing & Cost of Change: The substitutes are priced fairly lower than Horlicks such
that cost of change is low
 CONSUMER BEHAVIOUR ANALYSIS
Consumer requirements and preferences are always changing in accordance with the state of the
market. The conveniences that are provided and product distinctiveness are both sought by
consumers. To keep consumers aware of the newest brands available on the market, more money
is being spent on marketing. In this case, we're concentrating on customer perceptions of
Horlicks

Objectives of the Study

• Recognize the criteria that customers use to decide whether or not to buy Horlicks.

• Recognize what consumers anticipate from Horlicks.

• Recognize how Horlicks is viewed by the general public.

• To gauge how satisfied customers are with Horlicks

 RESEARCH METHODOLOGY

We employed a convenience sampling technique for our investigation. 100 persons in total were
chosen to take part in the study. To collect information from respondents, we used a well-
structured questionnaire; the chi-square test was then used to evaluate our hypothesis.

Data Collection Method

For the data collecting procedure, the following two methods were employed as data sources:

• Primary Information

• Secondary Information

Primary Data

Primary data was gathered from various respondents through the use of a well-structured questionnaire.

Secondary Data

Secondary data for the study was gathered from a few project reports, reputable journals and
publications, and textbooks.

Sampling Method and Techniques

Through convenient selection, we selected a respondent sample from the entire population for
the research study, and as a result, we selected a total of 100 respondents for the survey.

Statistical Tools Used

Chi-square test is used as the statistical tool in the secondary research data
 LITERATURE REVIEW
This report outlines a pertinent review of the literature on consumer behaviour alone. It gives an
overview of the research context and offers insight into the research being done for the study,
specifically to review the literature on the concept of consumer behaviour, which will help us
have a thorough understanding of the concepts used in studies by different scholars in the past.

SHANKAR.T.M (MAY 2015)

Some of the characteristics and aspects of Junior Horlicks have already satisfied clients or
consumers. While most customers who buy and use Junior Horlicks are satisfied with the
product's usability, the product's movement is comparatively low when compared to Horlicks'
other goods and other brands. Manufacturers must take corrective action to boost overall sales of
Junior Horlicks and ensure that it is available to customers whenever and wherever they need it.
As all businesses are devoted to the desire and satisfaction of the clients, this will assist the
company in increasing sales.

BINOD KUMAR SINGH (SEP 2016)

Horlicks is now taking a proactive approach. "Our learning has been that if there is a big brand
with a lot of equity and it nothing new, then someone new usually comes in and segments the
market" said R. Shyam Sunder, Head of Marketing, SBCH's Nutrition Business. Instead, the
market leader can benefit the most if it is the one to segment." As a result, the corporation staked
out some new turf before anyone else could. Horlicks has responded by releasing additional
goods such as Junior Horlicks, Mother Horlicks, and Horlicks Biscuits. The idea behind the
move is to extend the core values to new formals and benefits.

DATA ANALYSIS AND DATA DESCRIPTION

Pie charts were made for the various responses to the various questions, and a total of
100 participants were considered. Also performed on the data was a percentage analysis. One
after another, the various pie charts are shown with the proper explanations for each one.

Age:

Interpretation

The age distribution of the sample data respondents among the 100 respondents is displayed in
the chart above. Respondents under the age of 18 make up 1% of the sample, those between the
ages of 18 and 30 make up 84%, those between the ages of 31 and 50 make up 14% of the
sample, and those over 51 make up 1%.

Which medium made you aware about Horlicks?

Interpretation

The chart above depicts the sources of product awareness among the 100 respondents for
Horlicks. While more than half of the population believes advertisements are the primary source
of product knowledge, 30% of the population learns about the product from family members.
Interestingly E-commerce websites has no effect whatsoever.

What do you think about the quality of Horlicks?

Interpretation

The chart depicts the 100 respondents' views on Horlicks as a product and a crucial influence in
their decision-making process. Horlicks is rated as a very good product by about 34% of
consumers, while it is evaluated as a bad product by 1% of the population.

Where do you buy Horlicks from?

Interpretation

The chart depicts the 100 respondents' source of buying Horlicks. Around 57% still buys from
traditional brick and mortar stores while only 21% buys from e-commerce websites and e-
pharmacies.

Relationship between Quality of Horlicks and Competitive Brands

Hypothesis

Null Hypothesis H0: There is relationship between the competitive brands and the quality of
Horlicks.

Alternative Hypothesis H1: There is no relationship between the competitive brands and the quality
of Horlicks.

Comparative
Brand
Good Fair Moderate Poor Row Total

Quality Of
Horlicks

Boost 8 10 8 0 26
Complan 6 4 4 2 16
Born Vita 20 8 6 4 38
Pedia sure 10 6 2 2 20
Column Total 44 28 20 8 100
 RESULT
Chi-square Calculation:
The Chi-square statistic is calculated using the formula:

𝜒2=∑(𝑂𝑖−𝐸𝑖)2𝐸𝑖χ2=∑Ei(Oi−Ei)2

where 𝑂𝑖Oi is the observed frequency and 𝐸𝑖Ei is the expected frequency.
The calculated Chi-square value was found to be 4.984. This value needs to be compared to the
critical value from the Chi-square distribution table for the given degrees of freedom to
determine if the result is statistically significant.

Degrees of Freedom (df):

The degrees of freedom for the Chi-square test in this case is calculated as:
𝑑𝑓=(𝑟−1)×(𝑐−1)df=(r−1)×(c−1)
where 𝑟r is the number of rows and 𝑐c is the number of columns. In this case:
𝑑𝑓=(4−1)×(4−1)=3×3=9df=(4−1)×(4−1)=3×3=9

Critical Value:
The critical value for 9 degrees of freedom at a significance level of 0.05 (95% confidence level)
is 16.99. This value is obtained from the Chi-square distribution table.

Comparison and Conclusion:

 Calculated Chi-square Value: 4.984

 Critical Value: 16.99

Since the calculated Chi-square value (4.984) is less than the critical value (16.99), we fail to
reject the null hypothesis (H0). This means that there is no statistically significant relationship
between the competitive brands and the perceived quality of Horlicks based on the sample data.

FINDINGS
Brand Awareness Through Advertisements:

Finding: Horlicks is known to more than half of the sample size thanks to advertisements.

The study revealed that advertisements play a crucial role in creating and maintaining brand
awareness for Horlicks. More than 50% of the respondents identified advertisements as their
primary source of information about Horlicks. This highlights the effectiveness of Horlicks'
marketing campaigns in reaching a broad audience. Television ads, online promotions, and
print media have successfully kept the brand top-of-mind for consumers. The consistent
messaging and visual appeal of Horlicks advertisements contribute significantly to its
widespread recognition.

Favorable Consumer Opinion:

Finding: Horlicks has a favorable opinion among 72% of the population.

A substantial majority of the respondents (72%) have a positive perception of Horlicks. This
favorable opinion is likely due to the brand's long-standing reputation for quality and nutrition.
Consumers associate Horlicks with health benefits, reliability, and a rich heritage. The brand's
ability to meet the nutritional needs of various demographics, from children to adults,
contributes to this positive sentiment. Furthermore, the introduction of new flavors and
specialized products has likely enhanced consumer satisfaction and loyalty.

Preference for Traditional Retail Channels:

Finding: The majority of consumers still buy Horlicks from traditional brick-and-mortar stores.

Despite the growth of e-commerce, the study shows that a significant number of consumers
prefer purchasing Horlicks from physical retail stores. Approximately 57% of the respondents
buy Horlicks from grocery stores, supermarkets, and pharmacies. This preference can be
attributed to the convenience, immediate availability, and the habit of traditional shopping. It
also indicates the importance of maintaining a strong presence in retail outlets to ensure
product accessibility and visibility.

Impact of COVID-19 on Consumer Preferences:

Finding: The preference of the majority of the population has not changed due to COVID-19.

The COVID-19 pandemic has not significantly altered the purchasing preferences of Horlicks
consumers. This stability suggests a strong brand loyalty and a consistent demand for the
product despite external challenges. Consumers continued to prioritize health and nutrition
during the pandemic, and Horlicks, being a trusted brand, remained a preferred choice. The
brand's resilience in maintaining consumer trust and meeting demand during a global crisis is
noteworthy.

Popularity of Classic Malt Flavor:

Finding: Around 75% of the population prefers the Classic Malt flavor.

The Classic Malt flavor of Horlicks remains the most popular among consumers, with 75%
expressing their preference for it. This indicates that traditional tastes still hold a strong
appeal. The Classic Malt flavor's enduring popularity could be due to its familiarity, nostalgic
value, and consistent quality. While Horlicks has introduced various other flavors to cater to
diverse tastes, the Classic Malt flavor continues to be a staple, highlighting the importance of
maintaining core product offerings even as the brand innovates and expands its range.
 POSITIONING STRATEGY
One of the most popular malt-based beverages worldwide, Horlicks has the largest market share
in the Indian health food drinks category. The bulk of Horlicks consumers come from the middle
class, who place a strong emphasis on health and as a result, consume a supplement drink that is
bursting with different vitamins and minerals.

Horlicks provides a range of products in India with a focus on the nutritional needs of various
age groups and product consumption, such as toddlers and pre-schoolers, growing children, and
adults, including goods specifically for moms and women.

Horlicks is currently operating in the following three broad demographic segments:

A. Horlicks of Kids/pre-schoolers:
B. Horlicks of Adults:
C. Horlicks for Women and Mothers:

**********************************************************************************
**************

Positioning and Re-positioning of Horlicks

When Horlicks first hit the market, it was advertised as a milk alternative and additive. It was
initially promoted as a beverage for kids who needed a health and nutrient supplement.

When GSK decided to experiment with flavours like chocolate, toffee, and vanilla in order to
produce a distinctive taste in addition to their health benefits, which customers rapidly accepted,
what had initially started as a health-oriented marketing strategy in the 1930s was revised in
2003. Due to the introduction of so many new variants, the products now accommodate various
age groups as well as lifestyles. Horlicks Lite was created as a defence against oxidative stress's
effects. It is the perfect food for working adults because it has no added sugar and no
cholesterol.The geriatric diabetic diet Horlicks Cardia+. Growth+ makes the claim that it
contains vital elements for a child's
growth, including vitamins, minerals, and amino acids. It asserts to aid in the balanced growth of
children who are undeveloped for their age in both height and weight. They provide specially
made products for mothers and women to satisfy both their specific demands and way of life.
Horlicks changed from being a health drink with nutrients to a product that provided delicious
sustenance based on your individual nutritional needs.

Brand Perception

When we hear the words "taller, stronger, sharper," the first thing that comes to mind is
Horlicks. Horlicks' "Taller, stronger, sharper" campaign was one of their most successful
advertising campaigns. It was shown that after a month, a test was carried out and it was found
that the children who drank Horlicks were taller, stronger, and sharper than the other group. The
other group of kids had been given regular milk-based drinks.

The company emphasises the medical and health-focused nature of its products by labelling
them as "Clinically proven." This further reassures the clientele that the claims they make are
supported by medical research.

Aside from advertisements, Horlicks' attractive and secure packaging has always been a plus.
The company offers a variety of appealing and unique packaging solutions, including jars, refill
packs, and sachets. These come in a variety of vibrant packaging colours to make it simpler to
identify between them, are airtight and long-lasting, protecting the freshness and flavour of the
contents.

Key Insights
Initiatives by Horlicks demonstrate how segmentation is an effective tactic for snatching up the
largest portion of the market in its industry. To fulfil the shifting needs of their customers, they
devote a lot of effort into creating and improving their products. Horlicks products are created
with the nutritional requirements of various age groups in mind, and they are labelled and
packaged differently for each age group. Everyone can find something they like in their wide
selection, from young children to seniors, nursing mothers to middle-aged people.
Despite fierce competition from businesses like Bourvita and Pediasure, Horlicks has
successfully targeted various age groups with a number of specialised products.
Medical research and studies have supported the health benefits of Horlicks, making their
products significantly superior in the eyes of consumers. Horlicks has constantly entered new
markets while preserving its essential brand attributes.

GSK and HUL merger

Hindustan Unilever (HUL) is a subsidiary of Unilever in India and one of the leading producers
of items for the home, body, and refreshment. In 1933, it was founded. Unilever (UK), which
owns about 67 percent of HUL, is the company's owner. The company's four primary business
segments are personal care, home care, food and refreshments, and water purifiers.

The Indian market for health foods and beverages is dominated by GlaxoSmithKline Consumer
Healthcare Ltd (GSK). A division of GlaxoSmithKline plc in the UK is GlaxoSmithKline India.
The company's primary business is the production and distribution of several pharmaceuticals,
dairy products, and health care items.
 Understanding Merger

GlaxoSmithKline Plc and Hindustan Unilever Limited announced a strategic merger in March
2018. Each GSK share is exchanged for 4.39 HUL shares in an all-equity transaction. In a deal
worth Rs. 34,745 crore, HUL acquired the India division of Horlicks manufacturer GSK
Consumer. HUL acquired Horlicks from GSK PLC, keeping the Boost, Viva, and Maltova
brands in the Indian market.

HUL will own the branding and marketing rights to GSK's other significant goods, including
Sensodyne, Crocin, and ENO, for the subsequent five years. This acquisition made HUL the
biggest food firm in India. With HUL's 7 million outlets, Horlicks would be able to access more
rural regions and pursue double-digit growth.In the south and east, Horlicks and Boost were
widely used, but lagged behind in the north and west. In the future, HUL might be able to expand
into new areas in the north and west thanks to its distribution reach. 3,500 workers will now
work for Unilever's Indian division as a result of the purchase.

RECOMMENDATIONS
● Despite being the market leader in India's health food and beverage industry, Bourn vita
and pediasure have steadily gained market share from Horlicks in the young adult and kid
categories, respectively. Therefore, it ought to try to boost sales in these markets.
● In 13 countries, Horlicks is predominantly sold. It should benefit from increased
consumer disposable incomes and a shift in tastes and preferences toward the health-
conscious in order to gain market share in new geographic areas.
● By studying products like digestive health biscuits and nutrition biscuits, it might also
consider expanding its product range in the health food industry.
● Horlicks and Boost were widely available in the south and east markets but were less
prevalent in the north and west. With a distribution reach of 7 million outlets, HUL
should concentrate on unlocking the north and west regions in the future, aiming for
double-digit Horlicks growth.
● Despite having a bigger market share among consumers, Horlicks still needs some of the
following upgrades:
✔ Promote Horlicks products by word-of-mouth.

✔ Customers can anticipate that product prices would be brought to a stable level.

✔ The quality of this product might be enhanced in order to draw in more buyers.

✔ To increase sales, further discounts and incentives could be given.

✔ increasing the longevity of the product.

 CONCLUSION
Horlicks is one of the world's most popular malt-based drinks, with the largest market share in
the Indian health food drinks category. Horlicks' customers are primarily from the middle class,
who value their health and hence consume a nutritious supplement drink that contains a wide
range of vitamins and minerals. Horlicks offers a variety of goods in India focused on the
nutritional needs of various age groups and product usage, such as toddlers and pre-schoolers,
growing children, and adults, including items specifically for mothers and women. Horlicks'
initiatives show that segmentation is a powerful tool for capturing the most market share in its
sector. They put a lot of effort into developing and adjusting their products to meet the changing
needs of their clients. Horlicks products are designed with the nutritional needs of different age
groups in mind, with distinct labelling and packaging in different packs.

Horlicks, despite being the market leader in the Indian health food drink business, has been
losing market share to pediasure in the kid category and Bournvita in the young adult segment
over the years. As a result, it should work to increase sales in these markets. Horlicks has a
strong presence in 13 nations. To gain market share in new geographies, it should take advantage
of rising consumer disposable incomes and a movement in tastes and preferences toward the
health-conscious.
 REFERENCES
1. https://www.magzter.com/article/Business/Food-Beverage-Business-Review/Indi as-Health-

Drinks-Segment-Lacking-Boost

2. https://redseer.com/reports/health-food-drinks-on-a-road-to-transition/

3. https://www.statista.com/statistics/888357/india-health-food-drinks-market-share-

bycompany/#:~:text=Horlicks%20had%20the%20highest%20market,during%20t he

%20measured%20time%20period.

4. https://www.techsciresearch.com/report/india-malted-food-drinks-market/1286.ht ml

5. https://brandequity.economictimes.indiatimes.com/news/business-of-brands/traci ng-huls-

horlicks-journey/67052502

6. https://redseer.com/reports/health-food-drinks-on-a-road-to-transition/

7. https://www.statista.com/statistics/888357/india-health-food-drinks-market-share- by-

company/

8. http://www.shanlaxjournals.in/wp-content/uploads/com_v6n2_022.pdf

9. https://www.worldwidejournals.com/indian-journal-of-applied-research-(IJAR)/arti cle/a-

study-on-consumer-buying-behaviour-towards-horlicks-drinks-in-coimbatore

a. -city/NjQ4Ng==/?is=1

10. https://www.horlicks.in/in/en/mothers.html

11. https://theprint.in/economy/the-future-of-horlicks-and-complan-in-india/149716/

12. Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha, 2013, Marketing

Management, A south Asian perspective, Delhi, A Pearson Publication