Submitted By: Anupam Saha(011/1) Anurag K(012/1) Hari Deepak M(021/1)

Horlicks : Brand Overview

Horlicks

Hindustan Milkfood Manufacturers started manufacturing Horlicks in 1960 GSK currently owns the brand Horlicks

Market Share

Horlicks current market revenue: Rs. 23.05 billion, which is more than 50% of the total revenue of GSK in India Milk Beverages Market share: more than 50% It is rated as the third most reliable brand in India (src: http://www.fwd2all.com/top-10-most-reliable-brands-in-india/) All Horlicks bottles sold in India in a year placed end-to-end would form a chain six times the length of Great-Wall-Of-China

Hard Facts

Horlicks : Product Portfolios

Need for diversification of Horlicks brand

Pros
y Stagnation of the current

Cons
y Lack of countrywide presence

product portfolio y Extension of product portfolio y Change in food habits of Indians

(West and North have always been neglected) y Lack of proper distribution channels compared to competitors

What comes to your mind when we think Horlicks ? ..Health and Nutrition

How to diversify?
Diversification under Umbrella Brand
y Health related products can be

Diversification as a separate Brand

y Products that cannot be

diversified under the umbrella brand of Horlicks y Fruit Juice, low calories foods etc

directly related to health should be launched under a different sub-brand of GSK y Noodles, Chips, Pasta etc

Which products to diversify

 Chocolates  Fruit Juices  Milk Drink  Ice-cream  Whole range of low calories foods
 Biscuits  Breakfast Cereals  Low calorie sweeteners etc.

 Diet Substitutes

Market Entry Procedure

y Determining the size of the market y Can we create a new market y Analysis of important competitors y Need-Gap Analysis

Example: Low Calorie Food Market

y It should be diversified under the umbrella brand of

Horlicks y It should be targeted towards working class healthconscious people y Income level of this category of people is rising y Market is growing and only a few competitors exist in the current market scenario (ex. Britannia NutriChoice)

Foodles launch strategy

y Foodles should be launched as a separate brand by

GSK y The main USP of foodles is taste and hence it cannot be related to the Horlicks y People do not view noodles as a health-product y Pricing of Foodles should be on par with the competitors products
y Else Price-wars may occur y Competitors are heavyweights(like Nestle, ITC)

Distribution Strategy
y Tie up with existing distribution channels of different

companies which are not your competitors to enter second-tier cities and villages (eg. Cavin-Kare) y When they start realizing profits over a period of time GSK should focus on ramping up it s second layer of distributors