MARKETING

MANAGEMENT II
Group 10
Anchu D AM.BU.P2MBA19015
Mansi Kanchan AM.BU.P2MBA19036
Neenu Prasannan AM.BU.P2MBA19037
Sandra Hari AM.BU.P2MBA19041
Sreeganesh AM.BU.P2MBA19038
ABOUT THE COMPANY

● Horlicks is a sweet malted milk hot drink.

● Developed by founders James and William Horlicks.
● It was first sold as "Horlicks's Infant and Invalids Food", later added "aged and
travellers".
● In early 20th century it was sold as a powdered meal replacement drink mix.
● It was then marketed as a nutritional supplement and manufactured by
GlaxoSmithKline (Consumer Healthcare).
● It is a financially strong and stable parent company
BRAND POSITIONING
● The brand has been positioned as a healthy nutritional food for every life stage and
for consumers of every age. Along with different flavors and easy to use refill
packages or sachets.

● It is being liked so much in India that approx. 30 million Cups is being drunk in India
every year.
NEW PRODUCT
Name: Horlicks Crunchy

Category: Coated wafer (Chocolate)

Description: Horlicks Crunchy is a 3 layer wafer stuffed with Original Horlicks malt
and coated with white chocolate outside.

Malt based chocolates and wafers are very popular in Western countries, Hence this
product is focused in introducing malt based wafers in India. Since Horlicks malt is
already positioned as a nutritious health drink, Horlicks crunchy will also be
positioned as such.
 VISION
“To introduce a new face of wafers and to provide a
nutritious yet tasty bite for random breaks in people’s
lives.”

MISSION
“Help people to do more, feel better, live longer.”
MAIN OBJECTIVE

● To introduce a product which is more of a strategic fit with Horlicks

core brand and value.
Marketing Strategy (of Horlicks Crunchy)

Our Marketing strategy for this product is Product Development. We are

introducing a new product in the existing market.
 STDP
SEGMENTATION TARGETING DIFFERENTIATION POSITIONING

(Demographic ● Children ● Coated ● Nutritious Coated

Segmentation) wafer(Horlicks Wafer Chocolate
don’t have coated (since Horlicks
wafer product) positioned as a
nutritious drink)

● Growing Kids, ● Mainly between ● Stuffed with ● Lower calorie bite

Teenagers age group 5-14 Original Horlicks compared to dark
malt. chocolates.

● Adults ● Also, for people ● No cream used

who enjoy eating
the malt, rather
than mixing it
with milk
 MARKETING MIX (4 P’S)

PRODUCT PLACE PROMOTION PRICE

Nutritious Coated Pan-India. To be Advertisement : TV Rs. 10
wafer sold through out ads, Newspaper, (cost based
Hypermarkets Social media etc. pricing)
Supermarkets,
General shops etc.
SITUATIONAL ANALYSIS
PEST Analysis
Political Economic
● Government looking for healthcare ● Increasing number of buying groups
savings causing pressure in price putting pressure on price.
increase.
● Growing political focus and
pressure on healthcare.

Social
● Growing awareness, changing
expectations.
● Increasing age of population and
growth in obesity.
● Market likely to grow due to
increasing health concerns.
Technological
● New and easier information and
communication Technologies for
ads (social media).
● More responsive service facilities.
SWOT ANALYSIS
STRENGTH WEAKNESS OPPORTUNITIES THREAT

● Extremely strong ● Strong ● No other ● Intense

brand name. competitors. nutritious/malted competition can
coated wafer in reduce the
the market at market share of
present. the brand.

● More than 50% ● Horlicks is not ● Different ● Potential

of market share widely available packaging styles alternate
in India. globally as can help increase nutritious coated
compared to its sales of Horlicks. wafer can
global decrease the
competitors. sales in the
future.
Porter’s 5 Force Model
Threat of new entrants

Cost of entering is low, Hence threat of new entrants is high.

Threat of substitutes

Chances of alternative products from competitors is high.

Bargaining power of buyers

Individual buyers do not pose a significant threat, Low risk because high quantity
of buyers against less quantity of suppliers.
Bargaining power of suppliers

High influence on suppliers as they are the key to timely deliveries and quality
material.Major suppliers are labour, raw material providers and others ranging
from production, marketing and distribution.

Rivalry among competitors

The industry is very aggressive and dynamic. Hence competition is very high.
MAJOR COMPETITORS (indirect)
1. Nestle KitKat
(market share of about 30%)
2. Nestle Munch
(market share of about 33%)
3. Perk
(market share of about 23%)

Source: www.business-standard.com
MAJOR COMPETITORS (Direct, possible substitutes)
1. Boost & Horlicks
(market share of about 53.8%)
2. Complain
(market share of about 8% )
3. BournVita
(market share of about 11%)

Source: www.moneycontroll.com
FINANCIALS (source: Annual Report)
● In the year ended March 2019 revenue from operations was about Rs. 437,705.34
Lakhs which is merely 1.1 % lower than the previous year.

● However the total comprehensive income for the year ended increased to about Rs.
71677 Lakhs which is of about 5.3% increase from previous year.

● The net sales and profit after tax for the year ended March 31, 2019 were Rs. 4,15,754
Lakhs and Rs. 70,010.22 Lakhs respectively.

● The company has retained its leadership position in HFD category with volume and
value market share at 64.6% and 55.3% respectively.
Source: Annual report
CRITICAL ISSUES
● Deviation from the core competency may result in brand dilution. (Source:
www.businessarticles.com) for eg: foodles.

● Horlicks does not have enough efficient supply chain and distribution model for their
flagship product.
CONSUMER BEHAVIOUR
● Need recognition: they need a nutritious wafer chocolate which is low in
calorie yet tasty.

● Information search: Google forms

● Evaluation of alternative: there is no nutritious malt based wafer

chocolates available in Indian markets.

● Purchase decision: decide to buy our chocolate because it is low calorie,

nutritious yet tasty.
● According to consumers behavior, consumers attitude, preference and
decisions are made by consumers while purchasing the product

● Their behavior also depends on word of mouth.

● Before purchasing the product the see the nutritional facts of the product.
Cost Analysis
THANK YOU!