A Case Study On Horlicks - Naveen PDF

A Case Study on Horlicks – Marketing Strategy
Summary
Horlick’s marketing plan aims to introduce “Horlicks 20gm” Sachets into the
market for price of Rs.5 but there are many adversities which must be
properly addressed. For producing 20gm Sachets it is very cumbersome for
the production department and financially packaging cost is also 8% high.
Among these many challenges we can achieve good results in the long run as
this will reposition Horlicks in below middle-class & middle-class people in
towns, rural villages and remote areas in India.
SWOT Analysis
Strength
• Sachets can be sold in all small shops & petty shops in and around
Indian streets.
• Price point of Rs.5 is also affordable for the middle-class and lower
middle-class people.
• Freshness of the packets is ensured.
• One packet for a serving can be promoted.
Weakness
• Production is cumbersome.
• Increase in the cost for the company.
Opportunity
• Large number of middle-class & lower middle-class people who cannot

afford for ½ Kg & 1 Kg packs can buy sachets in daily usage.
• Rs.5 can price point is very feasible because school children and teens
can also buy a sachet to have Horlicks as an evening snacks in schools.
• Even if the sachet fails, we can easily club sachets with other products
to sell it.
Threats
• Vigorous competition from competitors.
• Holding to the USP is very difficult.
• Sachets are fragile.
Marketing Objective
To take Horlicks to below middle-class & middle-class households in India.
Once they have experienced the taste and nourishments, it is easy to push
Horlicks from a “WANT” to “NEED”. In parents mind we can cultivate a better
alternative to Coffee and Tea for their children. Horlicks can leverage, in this
scenario for company expected level of profits has to be generated through
volume increase.
Marketing Strategy
Target Market
Lower middle-class & middle-class people in towns, rural villages and remote
places in India. Population volume is much higher here when compared to
metropolitan cities.
Positioning
Petty Shops and small shops in all the streets which is present in the nook
and corner of the India. Trade advocacy plays a vital role in positioning here.
Display of the sachets in the front side of the shops.
Marketing Mix
Product
Horlicks Sachet 20gms
Price
Rs.5 for a 20gm Sachet
Place
Towns, rural areas and remote villages where most of the people are under
middle-class & middle-class groups.
Promotion
80% Advertising
20% Sales Promotion
In India promotion placements based on directions,
South 30% North 30%
West 30% East 10%
Advertising strategy will be briefly explained in promotion plan.
Functional Plan
Production Plan
Initially in the first year, 12 Crore Sachets
1 Crore for each month to be produced.
Distribution Plan
Based on the forecasting and sales measures volumes distributions will be

redesigned but initially sticking to the promotion placements is followed here
also.
South 30% North 30%
West 30% East 10%

Promotion Plan
“20gm Horlicks Sachet for a single serving” which has nutrients and vitamins
of an apple and 2 almonds”
Creative Advertisement campaigns is done here with having a Mother and a

Child in the Ad’s character. In the long run Horlicks Sachets can be used to
replace COFFEE & TEA in all the households of Indian middle-class & Lower
middle-class families.
Monitoring & Evaluation

Monitoring & Evaluation of the sales is done very closely in the market with
all the distributors and sales persons on a monthly basis, with course
correction strategies. Here Horlick’s new campaign. Competitor analysis,
share analysis in the new segment are closely monitored and decisions are
taken based on these data.
Conclusion
This will be the strategy of me if I am a brand manager of Horlicks.
Moreover, my goal is to take Horlicks to all the middle-class & lower middle-
class house holds in India present at Towns, Rural areas, villages and remote
places.
Influencer
Brand & Shop
Keepers
Customer
Parents
Consumer
Children
Initial Stage
Influencer
Children/
Parents
Customer
Parents
Consumer
Children/
Parents
Final Stage
In the long run I want to replace in all the parents mind that Horlicks is a better
alternative to Coffee and Tea for their children and for them also.

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A Case Study on Horlicks – Marketing Strategy

• Freshness of the packets is ensured.

• One packet for a serving can be promoted.

• Increase in the cost for the company.

• Large number of middle-class & lower middle-class people who cannot

• Vigorous competition from competitors.

• Holding to the USP is very difficult.

• Sachets are fragile.

Horlicks Sachet 20gms

Rs.5 for a 20gm Sachet

20% Sales Promotion

In India promotion placements based on directions,

South 30% North 30%

West 30% East 10%

Advertising strategy will be briefly explained in promotion plan.

Initially in the first year, 12 Crore Sachets

1 Crore for each month to be produced.

Based on the forecasting and sales measures volumes distributions will be

South 30% North 30%

West 30% East 10%

Creative Advertisement campaigns is done here with having a Mother and a

Monitoring & Evaluation

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