Published by MBA Skool Team, Last Updated: February 21, 2017
Marketing Strategy of Horlicks analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Horlicks marketing mix, help the brand succeed in the market.
Horlicks marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Horlicks Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Horlicks marketing strategy can be explained as follows:
Horlicks is one of the leading malt based drink in the world. Product assortment of Horlicks is very diverse in terms of product lines and product depth. This can be understood by its product strategy in its marketing mix. In terms of the width of the product mix, Horlick has health drink, oats, biscuits and instant noodles. In the health drink category, it has different variants for different age groups and needs. There is Mother’s Horlicks, Junior Horlicks, Horlicks Promind, Women’s Horlicks, Lite Horlicks, Growth+ Horlicks and Cardia+ Horlicks. The products are based not only around the age groups but also around the lifestyles of people. Lite Horlicks is specially made to counter damage caused by oxidative stress. It has no added sugar and zero cholesterol catering to a working adult’s need. Horlicks Lite is made for the elderly who have diabetes. Growth+ claims to provide nutrients like amino acids, Vitamins and minerals which are essential for a child’s growth. It claims to provide balanced growth in terms proper height and weight. Horlicks drinks have a wide range of flavors like chocolate, caramel, vanilla, Badam and Kesar. It offers packaging in pet jars of various quantities like 200 grams, 500 grams with refills packages as high as 2 kilograms. With the launch of Horlicks oats Horlicks have set foot in the hot cereal market. It was launched in India in 2011. By launching the healthy food products Horlicks is strengthening its position as a nutritious and health conscious brand.
Horlicks Price/Pricing Strategy:
Below is the pricing strategy in Horlicks marketing strategy:
Horlicks is seen as a premium product as it gives nutritional value to every segment in the market be it a kid or an adult.
Despite that it is priced very competitively. Horlicks follow value added pricing in its marketing mix. It gives the consumers the value for the money they spend as the product gives lot of health benefits. The discounts given on Horlicks products depends upon the place of sale as bulk buying and volume influence such decisions. Horlicks’ 500-gram jar costs Rs.230 whereas Boost costs Rs.255. In this industry, pediasure chocolate drink is the most expensive product in this category. Junior Horlicks is a little expensive than standards Horlicks as it is high on nutrients required for growth and development. Mother’s Horlicks is a little expensive and costs around Rs.475. It caters to the specific needs of a mother in every stage of her pregnancy. All the variants have refill packs in very flavor with price range of Rs.119 to Rs.395.
Following is the distribution strategy in the Horlicks marketing mix:
Horlicks products are available widely across groceries, supermarkets etc. GSK has made sure that Horlicks is available at every corner of the country. It is very important to have a strong distribution coverage to drive volume growth. The company has manufacturing facilities in Punjab, Andhra Pradesh and Haryana. It also has zonal head offices in four metros which handles that particular region’s sales and marketing. Horlicks is especially prevalent in eastern and southern parts of India and has been trying to gain market in northern and western parts of India. The distribution channel followed by Horlicks starts with the factory and then the products gets distributed to different channels and from the distributors to wholesalers and then finally to the retailers. Retailers want to stock more and more of Horlicks as it is widely purchased by the public. GSK consumer health has over 700 distributors and a coverage of 8 lakh retail outlets. Rural India’s penetration is low compared to urban India.
To improve its rural reach Horlicks launched Horlicks Swasthya Abhiyan and Village Level Entrepreneurs.
Horlicks Promotion & Advertising Strategy:
The promotional and advertising strategy in the Horlicks marketing strategy is as follows:
Horlicks’ promotion and advertising money is spent on television, print, online ads etc. Its shows the aggressive marketing mix promotional strategy of Horlicks. They don’t feel the need to have big celebrities as their brand ambassadors as the value proposition they offer for their product is their hero. Most of the communication done by Horlicks aims at mothers as they are the buyer of the product for their kids and family. Also Horlicks have also used their scientists and other healthcare professionals in their advertisements to gain the trust of the consumers.
Radio is also an effective channel used by Horlicks to reach mothers and consumers in remote parts of the country. In some urban outlets, Horlicks have even created a play area for children to attract consumers and create awareness and buzz around the products. Horlicks has also spent a lot on market research to constantly know about what consumer needs. Over the years Horlicks have also used the pestering power of children and used it to their benefit. Design firm Ray+Keshavan were behind the success of Horlicks’ new look when they entered the food and beverages with plethora of offerings. Horlicks revamped its logo and packaging. Hence, this covers the Horlicks marketing mix.
Horlicks is one of the brands by GSK. “Taller, stronger, sharper”, whenever we hear these words only one thing comes on our mind and that is Horlicks. Introduced by William Horlicks in 1860s in the United States, it is a malt based drink which Indians have been consuming since the 1930s. It has been a drink for all ages from children to seniors of the family. It is considered a great “family nourisher”. GlaxoSmithKline has been the market leader in the health food drinks in India with brands like Horlicks, Boost, Maltova and Viva under its kitty. The company’s flagship brand, Horlicks has a commanding market share in the Indian health drink sector and has become one of the bestselling brands of GlaxoSmithKline(GSK). Despite facing stiff competition from brands like Bourvita, Boost, Pediasure Horlicks have skillfully targeted different age groups through variety of its specialized products.
One of the exceptional things about Horlicks is that their health benefits are backed up by research and studies. Horlicks have continuously ventured into new market segments while also strengthening its core brand values.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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