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

Understanding consumer behavior is pivotal for the marketing strategy of any product.
For the "Marketing Analysis of Horlicks," the research methodology was designed to
capture detailed insights into consumer perceptions, preferences, and purchasing
decisions. The following outlines the detailed steps and approaches used in the study.

Research Design
The research was structured to include both qualitative and quantitative methods to
ensure a comprehensive understanding of consumer behavior. The study was divided
into several key phases:

1. Objective Setting:
 The primary objectives were to understand the criteria influencing consumer
decisions, expectations from Horlicks, and general public perception.
 Additional objectives included gauging customer satisfaction and identifying
factors contributing to brand loyalty.

Data Collection Methods

Primary Data Collection:

 Survey:
 A well-structured questionnaire was developed to collect primary data from
respondents. The questions were designed to capture various aspects of
consumer behavior, including awareness, purchase patterns, satisfaction
levels, and preferences.
 The survey was distributed online and in-person to ensure a diverse
respondent pool.
  Key sections of the questionnaire included:
 Demographic information (age, gender, income level)
 Awareness and source of awareness of Horlicks
 Frequency and place of purchase
 Perceptions of quality and value
 Factors influencing purchase decisions
 Satisfaction levels and likelihood of recommending Horlicks

 Interviews:
 In-depth interviews were conducted with a select group of consumers to gain
qualitative insights. These interviews helped to explore deeper motivations,
attitudes, and perceptions that are not easily captured in a survey.

Secondary Data Collection:

 Literature and Reports:
 Secondary data was sourced from project reports, reputable journals,
publications, and textbooks. This provided contextual information and
supported the findings from primary data.
 Industry reports and market analysis studies were particularly useful in
understanding broader market trends and consumer behavior patterns.

Sampling Method and Techniques

 Sampling Technique:
 Convenience sampling was employed due to its simplicity and cost-
effectiveness. This method involves selecting respondents who are easily
accessible and willing to participate.
 Sample Size:
 A total of 100 respondents were chosen for the survey. The sample included a
mix of ages, genders, and socio-economic backgrounds to ensure diversity.
 Statistical Tools Used
 Chi-Square Test:
 The chi-square test was utilized to analyze the data and test hypotheses. This
statistical tool helped determine if there were significant relationships between
variables, such as the relationship between the quality perception of Horlicks
and competitive brands.

Data Analysis

 Descriptive Statistics:
 Descriptive statistics, including means, frequencies, and percentages, were
used to summarize the data and provide an overview of the responses.
 Pie charts and bar graphs were created to visualize the distribution of
responses for various questions.

 Hypothesis Testing:
 Hypotheses related to consumer behavior were formulated and tested using
the chi-square test. For instance, the hypothesis that there is no relationship
between the quality of Horlicks and its competitive brands was tested and
analyzed.

Interpretation and Reporting

 Findings:
 The results from both the surveys and interviews were compiled and analyzed
to draw meaningful insights.
 Key findings included consumer awareness levels, purchasing patterns,
satisfaction rates, and areas for improvement.
 Recommendations:
 Based on the analysis, actionable recommendations were provided. These
included strategies for enhancing brand awareness, improving product
offerings, and increasing customer satisfaction.

 Validation:
 The findings were validated through cross-referencing with secondary data and
ensuring consistency in the responses from different data collection methods.
By employing a robust and systematic research methodology, the study aimed to
provide a comprehensive understanding of consumer behavior towards Horlicks,
offering valuable insights for strategic decision-making.
 LITERATURE REVIEW
This report outlines a pertinent review of the literature on consumer behavior. 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 behavior, which
will help us have a thorough understanding of the concepts used in studies by different
scholars in the past.

Reviewed Literature

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 formats and benefits.
Additional Literature

KOTLER, P., KELLER, K. L., KOSHY, A., & JHA, M. (2013) "Marketing Management: A
South Asian Perspective" This textbook provides extensive insights into consumer
behavior theories and practices, emphasizing how brands like Horlicks can leverage
these concepts to enhance their market strategies. The book covers various aspects of
marketing management, including consumer behavior analysis, which is crucial for
understanding how to effectively reach and engage target audiences.

KUMAR, V., & SHAH, D. (2004) "Building and Sustaining Profitable Customer Loyalty
for the 21st Century" This paper explores strategies for building and maintaining
customer loyalty, which is critical for long-standing brands such as Horlicks. It discusses
the importance of customer relationship management and loyalty programs in retaining
customers and enhancing their lifetime value to the brand.

REDSEER (2017) "Health Food Drinks on a Road to Transition" This industry report
gives an overview of the market trends in the health food drinks sector, highlighting
consumer preferences and shifts that impact brands like Horlicks. It provides data on
market dynamics, consumer behavior trends, and competitive analysis, offering valuable
insights for strategic planning.

SINGH, B. K. (2018) "A Study on Consumer Buying Behaviour towards Health Drinks in
Coimbatore City." Indian Journal of Applied Research This study specifically focuses on
the consumer buying behavior in the health drinks market in India, providing data that is
directly relevant to Horlicks. It examines factors influencing purchasing decisions,
consumer preferences, and satisfaction levels, offering detailed insights into the local
market dynamics.
STATISTA (2020) "Health Food Drinks Market Share in India by Company" This
statistical report provides insights into the market share distribution among various
health food drink brands in India, useful for comparative analysis. It highlights the
competitive landscape and helps in understanding the positioning and performance of
Horlicks relative to its competitors.

ECONOMIC TIMES BRAND EQUITY (2019) "Tracing HUL's Horlicks Journey" This
article provides a historical perspective on the marketing strategies and brand evolution
of Horlicks, shedding light on how consumer behavior has influenced these changes. It
discusses the brand's journey, key marketing campaigns, and strategic decisions that
have shaped its market presence.
 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%, and those over 51 make up 1%.
Insight: The vast majority of respondents are between 18 and 30 years old, indicating
that Horlicks primarily attracts a younger adult demographic. This could suggest a focus
on marketing and product features that appeal to this age group, such as nutritional
benefits for active lifestyles and convenience for young professionals.
Which medium made you aware about Horlicks?

Interpretation

The chart 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 have no effect whatsoever.

Insight: 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 significant influence of family members suggests that word-of-mouth
remains a powerful tool, possibly due to the trust and recommendations within
households.
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.

Insight: The perception of Horlicks' quality is predominantly positive, with 34% rating it
as very good. Only a small fraction (1%) considers it a bad product. 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.
Where do you buy Horlicks from?

Interpretation

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

Insight:

Despite the growth of e-commerce, 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.
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 a critical tool in understanding the relationship between two
categorical variables. In this study, the Chi-square test was used to analyze the relationship
between the perceived quality of Horlicks and its competitive brands (Boost, Complan,
Bournvita, and Pediasure).

Formula
The Chi-square statistic is calculated using the following formula:

𝜒2=∑(𝑂𝑖−𝐸𝑖)2𝐸𝑖χ2=∑Ei(Oi−Ei)2

where:
 𝑂𝑖Oi is the observed frequency.
 𝐸𝑖Ei is the expected frequency.

Calculation Steps

1. Observed Frequencies (O_i): These are the actual frequencies obtained from the survey
data. For example, the number of respondents who rated Horlicks as 'Good', 'Fair',
'Moderate', or 'Poor' compared to the ratings of its competitors.

2. Expected Frequencies (E_i): These are the frequencies we would expect if there were no
association between the variables. They are calculated based on the marginal totals of the
observed data.

3. Chi-square Value: The calculated Chi-square value from the observed and expected
frequencies was found to be 4.984.

Degrees of Freedom (df)

The degrees of freedom for the Chi-square test in this case are calculated as:
𝑑𝑓=(𝑟−1)×(𝑐−1)df=(r−1)×(c−1)
 where:
 𝑟r is the number of rows (categories of quality: Good, Fair, Moderate, Poor).
 𝑐c is the number of columns (competitive brands: Boost, Complan, Bournvita, Pediasure).
For this study: 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 statistical conclusion means that there is no significant
relationship between the competitive brands and the perceived quality of Horlicks based on
the sample data. The quality perception of Horlicks appears to be independent of the
perceptions of its competitors, indicating strong brand loyalty and distinct market positioning.
 FINDINGS

Brand Awareness Through Advertisements

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

Elaboration:

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. Television advertisements often feature engaging
stories and trusted endorsements, making them a powerful tool for influencing consumer
perception. Online promotions, including social media campaigns and digital ads, ensure that the
brand reaches tech-savvy younger audiences. Print media, although more traditional, continues to
reinforce brand presence among diverse demographics.

The strategic placement of these advertisements across various media platforms ensures that
Horlicks remains visible to its target audience, driving brand recall and influencing purchasing
decisions.

Favorable Consumer Opinion

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

Elaboration:

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. Horlicks' product range, which includes variations for
toddlers, children, mothers, and women, ensures that it caters to the specific nutritional needs of
different life stages. This targeted approach not only enhances consumer satisfaction but also
fosters loyalty.

Furthermore, the introduction of new flavors and specialized products has likely enhanced
consumer satisfaction and loyalty. By continuously innovating and expanding its product line,
Horlicks remains relevant in the market, adapting to changing consumer preferences and needs.

Preference for Traditional Retail Channels

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

Elaboration:

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.

Traditional retail channels offer consumers the ability to see, touch, and purchase products
instantly, which is a significant advantage over online shopping. The habit of buying health and
nutrition products from trusted local stores also adds to the comfort and reliability perceived by
consumers.

The findings underscore the importance of maintaining a strong presence in retail outlets to ensure
product accessibility and visibility. Retail promotions, in-store displays, and partnerships with major
retailers can further enhance the brand's reach and sales.

Impact of COVID-19 on Consumer Preferences

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

Elaboration:

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.

During the pandemic, health and nutrition became a top priority for many consumers. Horlicks,
being a trusted brand with a long history of providing nutritional benefits, remained a preferred
choice. The brand's resilience in maintaining consumer trust and meeting demand during a global
crisis is noteworthy. Consumers continued to prioritize health and nutrition during the pandemic,
and Horlicks' ability to deliver on these needs reinforced its market position.

Popularity of Classic Malt Flavor

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

Elaboration:
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. Many consumers have grown up with the Classic Malt flavor, creating a strong
emotional connection and loyalty to the product. While Horlicks has introduced various other
flavors to cater to diverse tastes, the Classic Malt flavor continues to be a staple.

This highlights the importance of maintaining core product offerings even as the brand innovates
and expands its range. The success of the Classic Malt flavor demonstrates the value of balancing
innovation with tradition, ensuring that new products complement rather than replace beloved
classics.
 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.

"Taller, Stronger, Sharper" Campaign: Horlicks' "Taller, Stronger, Sharper" campaign

has been one of their most successful advertising efforts. This campaign effectively
communicated the core benefits of consuming Horlicks, particularly targeting children
and their parents. The slogan "Taller, Stronger, Sharper" emphasized the health
advantages and nutritional value of Horlicks, promising enhanced growth and mental
development in children.

To substantiate these claims, Horlicks conducted a study where children who drank
Horlicks were compared to those who consumed regular milk-based drinks. The results
showed that after a month, children who consumed Horlicks were indeed taller,
stronger, and sharper than the control group. This evidence-based approach helped to
reinforce the credibility of the campaign, making it more persuasive and trustworthy for
the target audience.

Clinically Proven Claims: The company emphasizes the medical and health-focused
nature of its products by labeling them as "Clinically Proven." This claim reassures
consumers that Horlicks' health benefits are backed by scientific research and medical
evidence. It enhances the brand's credibility and trustworthiness, making parents more
confident in choosing Horlicks for their children's nutritional needs. By leveraging
clinical validation, Horlicks differentiates itself from competitors who may not have
similar scientific backing for their products.
 Packaging Innovations: Apart 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 packaging
options cater to different consumer preferences and usage occasions, making the
product more accessible and convenient.

 Jars: The traditional jar packaging is designed to be durable and reusable, providing
a long-lasting storage solution. The jars are often vibrant and eye-catching,
enhancing shelf appeal and brand recognition.

 Refill Packs: Refill packs are an economical and eco-friendly option for consumers
who already have jars. They are designed to reduce waste and packaging costs,
making them a sustainable choice.

 Sachets: Sachets offer single-use convenience, ideal for on-the-go consumption or

trial purposes. They are also useful for portion control and maintaining product
freshness.

The variety in packaging also includes different sizes and vibrant colors, making it
simpler to identify between them. The airtight and long-lasting nature of the packaging
ensures that the contents remain fresh and retain their flavor, which is crucial for
maintaining product quality and consumer satisfaction.

Visual Appeal and Practicality: Horlicks' packaging is not only practical but also visually
appealing. The vibrant colors and distinctive designs help the product stand out on the
shelves, attracting attention and facilitating brand recall. The packaging also includes
clear labeling and nutritional information, which helps consumers make informed
choices.
Summary: Overall, Horlicks' brand perception is built on a strong foundation of effective
advertising, credible health claims, and innovative packaging. The "Taller, Stronger,
Sharper" campaign has significantly contributed to establishing Horlicks as a trusted
brand for children's health and nutrition. The emphasis on clinical validation further
strengthens consumer trust, while the attractive and practical packaging enhances the
overall consumer experience. These elements collectively reinforce Horlicks' reputation
as a reliable and beneficial health drink, ensuring sustained consumer loyalty and
market presence.

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

● To sustain and enhance its market position, Horlicks should focus on the following
strategic recommendations:
Boost Sales in Young Adult and Kid Categories:

● Market Insight: Despite being the market leader in India's health food and
beverage industry, Bournvita and Pediasure have steadily gained market share
from Horlicks in the young adult and kid categories, respectively.

● Strategy: Horlicks should develop targeted marketing campaigns aimed at young

adults and kids. This can include:
1. Collaborating with influencers and celebrities who resonate with these
demographics.
2. Launching engaging and interactive digital campaigns on social media
platforms.
3. Creating school programs and sponsorships to directly reach children and
their parents.
4. Developing new product variants that specifically cater to the tastes and
nutritional needs of these age groups.

Expand Geographic Reach:

● Market Insight: Horlicks is predominantly sold in 13 countries. There is potential

to benefit from increased consumer disposable incomes and a shift in tastes and
preferences toward health-conscious products in new geographic areas.

● Strategy:
1. Conduct market research to identify promising new markets with growing
health-conscious consumer bases.
 2. Develop tailored marketing strategies to enter these new markets
effectively.
3. Establish partnerships with local distributors and retailers to facilitate
market entry.
4. Adapt product offerings to suit local tastes and preferences, ensuring
cultural and dietary considerations are met.

● Diversify Product Range:

● Market Insight: By studying products like digestive health biscuits and nutrition
biscuits, Horlicks might consider expanding its product range in the health food
industry.
● Strategy:
1. Leverage existing research and development capabilities to create new
product lines such as digestive health biscuits, nutrition bars, and fortified
snacks.
2. Pilot new products in key markets to gather consumer feedback and
optimize formulations.
3. Position these new products as complementary to existing Horlicks
offerings, promoting them as part of a holistic health and nutrition regimen.

● Enhance Distribution in North and West India:

● Market Insight: Horlicks and Boost are widely available in the south and east
markets but are less prevalent in the north and west.

● Strategy:
1. Strengthen distribution networks in the north and west regions by
collaborating with local distributors.
2. Increase marketing efforts in these regions to build brand awareness and
demand.
3. Tailor product packaging and promotions to meet the preferences of
consumers in these areas.
 4. Aim for double-digit growth in these regions by leveraging HUL's extensive
distribution reach of 7 million outlets.

● Product and Pricing Enhancements:

● Market Insight: Despite having a bigger market share among consumers, Horlicks
still needs some upgrades.
● Strategy:
● Promote Horlicks Products by Word-of-Mouth:
1. Encourage satisfied customers to share their positive experiences through
referral programs and social media campaigns.
2. Leverage testimonials and user-generated content to build credibility and
trust.
● Stable Product Prices:
1. Ensure competitive pricing to attract price-sensitive consumers while
maintaining product quality.
2. Implement dynamic pricing strategies to respond to market changes and
competitor actions.
● Enhance Product Quality:
1. Invest in continuous improvement of product formulations to enhance
taste, nutritional value, and overall quality.
2. Conduct regular quality assurance checks to maintain high standards.
● Offer Discounts and Incentives:
1. Introduce limited-time offers, discounts, and loyalty programs to
encourage repeat purchases and attract new customers.
2. Partner with retailers to offer bundle deals and promotions.
Increase Product Longevity:
1. Improve packaging technology to extend shelf life and maintain product
freshness.
2. Educate consumers on proper storage practices to maximize product
longevity.
 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.
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