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Horlicks Phase 1

Horlicks is a malted milk drink developed in the UK and now manufactured by Hindustan Unilever in India, Bangladesh, and other countries. It is produced by mashing malted barley and wheat with hot water to produce sugars, then adding dairy powders and evaporating the water to form a powder. Hindustan Unilever recently acquired GlaxoSmithKline's consumer healthcare business in India, which includes Horlicks, Boost, and Maltova brands. This will help HUL strengthen its food and drinks portfolio by entering the growing health food drinks category in India. Horlicks targets different age groups with products like Junior Horlicks, regular Horlicks, Women's Horl

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151 views5 pages

Horlicks Phase 1

Horlicks is a malted milk drink developed in the UK and now manufactured by Hindustan Unilever in India, Bangladesh, and other countries. It is produced by mashing malted barley and wheat with hot water to produce sugars, then adding dairy powders and evaporating the water to form a powder. Hindustan Unilever recently acquired GlaxoSmithKline's consumer healthcare business in India, which includes Horlicks, Boost, and Maltova brands. This will help HUL strengthen its food and drinks portfolio by entering the growing health food drinks category in India. Horlicks targets different age groups with products like Junior Horlicks, regular Horlicks, Women's Horl

Uploaded by

sree mahadevan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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HORLICKS

ASSIGNMENT

SREE MAHADEVAN S
B2355
INTRODUCTION
Horlicks is the name of a company and of a malted milk hot drink developed by
the founders James and William Horlicks. It was now manufactured by
GlaxoSmithKline in the United Kingdom, South Africa, New Zealand,
Bangladesh, India, Pakistan and Jamaica, and under licence in the Philippines
and Malaysia and recently was acquired by the FMCG conglomerate Uniliver.
Unlike similar drinks, such as Oval tine, Horlicks is not a dry blend of malt
extract and milk powders. In the initial stage of manufacturing, milled malted
barley and wheat flour are mashed together in hot water where the starch is
converted into sugars. To this sugar solution dairy powders are added. The
water content is then evaporated off to form syrup which is dried in vacuum
band driers to form a cake. This cake is milled into the finished powder. This is
then fortified with vitamins and minerals.
In a move that will consolidate its position as India’s largest fast-moving
consumer goods company, Hindustan Unilever (HUL) announced a merger with
GlaxoSmithKline Consumer Healthcare Ltd (GSK CH India). As part of this
steaming hot deal, health drinks including Boost, Horlicks and Maltova — the
mainstays of GSK CH — will now move to the HUL stable. The transaction ,
an all equity merger with 4.39 shares of HUL being allotted for every share in
GSK CH India. The deal values the total business at ₹31,700 crore.
The deal will help HUL strengthen its food and refreshment business by
entering the health food drinks (HFD) that has witnessed the entry of several
global and Indian players in the last few years. While GSK CH is the leader in
the ₹7,000-crore category, it is fast losing market share to other key players
including Mondelez International (Bournvita), H.J. Heinz (Complan) and
Abbott Nutrition (Pediasure). Nestle has relaunched its brand Milo in the ready-
to-drink format and Danone has introduced Protinex. Indian players like Amul
are also planning to tap this growing segment.
Traditionally, this has been a strong segment and generations of Indians in
urban areas have grown up drinking Horlicks. But growth has slowed down
over the past few years in India as consumers increasingly shift to specialised
products made by nutraceuticals companies such as Abbott and Danone.
This has prompted some to describe the deal as an ‘expensive acquisition’ for
HUL. The deal size is over seven times the revenues of GSK Consumer
Healthcare and about five times the value of the entire malted beverages
category.
PRODUCTS AND SERVICES

Featured Products
 Horlicks
 Horlicks lite
 Horlicks oats
Toddler Products
 Junior Horlicks
 Horlicks growth Plus
Women Product
 Women’s Horlicks (caramel)
 Womens Horlicks (chocolate)
 Mother’s Horlicks
Premium Drinks
 Horlicks protein plus (Choclate)
 Horlicks Protein Plus (Vanila)
 Horlicks Cardia Plus

SEGMENTATION

Segmentation is the process of sub-dividing a whole market in different groups


or subsets.

The market of Horlicks is segmented as follows:

GEOGRAPHIC SEGMENTATION

In the northern part of the country, it has a huge demand as a white drink
whereas chocolate horlicks is very popular in the southern part of the country.
DEMOGRAPHIC SEGMENTATION-

Here the market is segmented on the basis of the age groups.

 Junior horlicks- for preschool children


 Horlicks regular- for general use
 Women's horlicks-for pregnant and breast feeding women
 Horlicks Lite- for health conscious adults and for diabetic people
 Chocolate and other flavored horlicks- for teenagers
.
TARGET

Horlicks currently focuses on one segment of market that is children between


the age group of 8-14. This is so because children have a huge influence on the
products purchased for the family. The focus of Junior Horlicks continue to be
the kids between one and three while all the action will be in general Horlicks.

To effectively target the consumers Horlicks has a section of the website


dedicated to informing the consumers about the benefits of different types of
Horlicks .

POSITIONING

 Horlicks was initially introduced as both an additive and substitute to


milk and positioned itself as a nutritional supplement for the kids.
 In 2003, it positioned itself as”pleasurable nourishment" by launching its
vanilla, honey and chocolate variants.
 It adopted a new positioning strategy via product packaging which now
carries a logo,'taller, stronger, sharper."
 Junior horlicks brand has positioned a product exclusively for children of
the age group 1-3.
 Today, the brand talks to each member of the family. Its objective is to
cater to the needs of all the age groups
UNIQUE SELLING PROPOSITION

Customers of Horlicks are middle-income group customers who like to be


healthy and therefore take healthy supplement drink which is filled with a large
number of vitamins and minerals.
Horlicks primarily targets 4 sets of the customer, such as baby and toddlers with
the product Junior Horlicks and Chocolate flavor Horlicks, Adults with normal
malt Horlicks, Pregnant and old age women with Mother’s Horlicks and
Women’s Horlicks and Horlicks Lite designed for active adult

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