COMSTRAT

TEAM ESPLORATORE

Shruthi Sharma | 9159435830

Thejaswini KS | 9663750969
Aneesh Sunil| 7755982844
COMSTRAT – TEAM ESPLORATORE

TABLE OF CONTENTS:

SI No. Topic Page Number

I Introduction 3
II Literature Review 3
III About Horlicks 4
III A Horlicks Current Marketing Mix 4
III B SWOT Analysis 5
III C Competitive LandScape 5
IV Data Analysis and Interpretation 6
IV A Research Methodology 6
IV B Primary Research 6
IV C Objectives of the Study 6
IV D Demographic Profile 6
IV E Consumer Analysis 7
IV F Conjoint Analysis 8
IV G Conjoint Research Findings 8
V Buyer Analysis 9
VI Suggested New Product 10
VII Integrated Marketing Communication Strategy 10
VII A Physical Nutrimeter Kiosks 10
VII B Holicks Game 11
VII C Horlicks Night Lite 13
VII D Innovative Recipe Contest 14
VIII Conclusion 14

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I. INTRODUCTION

The HFD market contributes to 5,500 crores valuating to approximately 50% of total health and
nutrition category. There is a boiling need for nutrition and nourishment. This is associated with the
fact that children love delicious items and prefer ‘taste’ as the most important factor. The malt
category in India stands at $1.2 billion in 2016 and is forecasted to surpass $3 billion by 2022. India is
world’s largest malt-based drink market with a share of almost 22% in the world’s total retail volume
(Malt is germinated cereal grains that have been dried in a process known as malting).

The malt based drinks fall in ‘Other drinks’ category which includes cocoa based drinks. While studying
this it’s imperative to study the flavours. In 2016, ‘hot chocolate’ had largest market share amounting
to 58.8% of market. Going further, it is apparent that ‘instant drinks’ i.e., just add water are more
appealing than traditional milk based malt products. This could imply that consumers are more
attracted to products that are convenient to make.

(Source: TechSki Research)

II. LITERATURE REVIEW

Kriti Bardhan Gupta (2009) studied the various factors stimulating purchase decision for
major categories of food products in India, quality perception about various categories of food
products. The output was that the important parameters affecting consumer behaviour for food
products are cleanliness of the product, freshness, good for health and clean place of sale gives
important attributes values for money, overall quality, and good display of products nearby availability
are important parameters.

Rita Kuykaite, Aiste dovaliene, Laura (2009) emphasized that visual and verbal packaging influences
consumer behaviour.
Visual refers to graphic, colour, size, form and material and verbal refer to product information,
producer, country of origin and brand.

Karachan, Alice Gronhoj, Tino Bech Larsen (2009) gathered a persona mapping of adolescents (13-
16) to gather insights on healthy and unhealthy foot habits.
The findings emphasize that adolescents perceived the balance diet and regular meal time as the most
crucial attribute of healthy eating.

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Cristiane Vasconcelos Aronne, Maria Celeste Reislobo de Vasconcelos (2009) reveal that experiential
marketing is a success and it positively affects consumer behaviour. It stimulates buying behaviour
and it also leads to brand loyalty.

Jeevananda (2011) scrutinized the consumer perception on four P’s of marketing. This reveals that
male and female have different opinion with regards to the impact of branding, packaging, pricing,
promotion and quality in terms of marketing of FMCG. On the basis of that hypothesis, research
concluded that consumer purchase dependents on branding and quality of the product. The study also
shows that consumer’s perception on branding of FMCG product based on promotion of this product,
increase the price of the product but consumer purchase FMCG product based on quality.

M Vyas (2015) outlines the multitude of products that are being offered to every segment of the
market. The objective of the study was to figure out the extent of brand loyalty of parents that pursuit
them to buy same brand for their children. The research analysis of the study shows that parents do
not purchase same brand as they consume in their child hood of malted food drink for their children
and do not show brand loyalty towards that brand. The study also shows that malted food drinks
historically positioned as substitute for milk.
But nowadays it has repositioned as nutrition problem in children and woman. The malted food drink
considered as food supplement for the people.

III. ABOUT HORLICKS:

Horlicks is manufactured by GSK - one of the world’s leading based pharmaceutical and medical
companies. Horlicks has the uniqueness of being a clinical proven drink for kids thereby making them
stronger, sharper and taller. Though it enjoys a brand legacy, Horlicks faces stiff competition from
Bournvita, Complan, Boost, Pediasure etc. Horlicks has undergone a cultural transformation in terms
of brand imagery from being a restorative drink in 1960s to an immunity building drink in 1970s to a
healthy drink stimulating mind in 2003. Horlicks aims to cater to every section of the market and thus
has variants like Junior Horlicks, Women Horlicks, Regular Horlicks, Mother Horlicks under its
umbrella. Earlier it was available in an original malt flavor but with changing trends in the market, it
added extra flavors – Vanilla, Chocolate, Elaichi, Badam. Besides health drinks, it also forayed into
biscuits and digestives.

III A. Horlicks Current Marketing Mix:

Product 4 Variants, 4 flavors, Food and Biscuit Category

Price Value added Pricing Policy
Place Products available in every grocery stores, retail
stores amounting to 4,25000 units including
1800 wholesalers, Omnichannel
Promotion Direct and Indirect Promotions to boost
Heritage of brand:
1. Nutritional seminars in schools, malls and
showrooms
2. Ad campaigns with celebrity endorsements
3. Attractive Bright Packaging using blue,
orange depicting freshness

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III B. Analysis of Horlicks (SWOT):

Strengths:
• Strong Market Share in Countries
present- UK, India-45%
• Multiple offering according to target
group
• Multiple Variants
• Legacy and Heritage owing to GSK as
parent brand
Opportunities:
• Product Line expansion: Niche
segments can be targeted owing to
changing emotional needs
• Increase Penetration by developing
integrated marketing communications
Weakness:
• Low Global Presence
• Weak endorsing factor such as doctors
Threats:
• Cannibalization: Boost cannibalizes
Horlicks in same category
• Other drinks: Ayurveda drinks, Organic
foods and homemade packs increase
competition

III C. Competitive Landscape of Horlicks:

Manufacturer’s
Rank Brand Type Flavour/Category Brand Owned by
Recommendation
Malt-Based – for Children
Complan Proprietary For children 2–4 yrs
1. Chocolate Heinz India
(NutriGro) food old
Horlicks
2. (Taller & Malt-based Cocoa powder GlaxoSmithKline For growing children
Stronger)
Bournvita (Li’l For children 2–5 yrs
3. Malt-based Vanilla and cocoa Cadbury India
Champs) old
4. Bournvita Malt-based Vanilla and cocoa Cadbury India For growing children
Increasing endurance
5. Boost Malt-based Cocoa GlaxoSmithKline and stamina in
children
Gujarat
Cooperative Milk
6. Amul (pro) Malt-based Cocoa For growing children
Marketing
Federation
Complan
Proprietary
7. (Planned Chocolate Heinz India For growing children
food
Food)
Malt-Based – All Age Groups
Horlicks
1. Malt-based Original GlaxoSmithKline For entire family
(Malt- Based)
Malt-based
2. Acti Life Vanilla Zydus Wellness For adults
(proprietary)

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Specifically Recommended
Adults – especially
pre- or post-illness/
Ensure Proprietary Science-based Abbott
1. surgery and as
(Chocolate) food formulation Healthcare
directed by
physician/dietician
For children two
Pediasure
Proprietary Balanced Abbott years and above, for
2. (Vanilla
food nutrition food Healthcare healthy growth and
Delight)
development
Proprietary
All age groups,
Protinex food
3. Chocolate Wockhardt especially to address
(Original) (protein-
protein deficiency
rich)
Table: Competitive Analysis of brands

IV. DATA ANALYSIS AND INTERPRETATION:

IV A. Research Methodology: The research is exploratory in nature and the convenience sampling
method has been used for this research. The respondents were mothers, millennial and children who
constituted the sample size of 111 which was considered for study. The data collection was based on
the Primary data using the questionnaire and the interview method. This data from the survey is used
to architect the product offerings using a Conjoint analysis. The combined result from both the
methods is used to assess the integrated marketing communication and way forward for Horlicks.

IV B. Primary Research: A detailed questionnaire is prepared to understand the emotional, functional

needs of customer. The data sample comprised of 111 responses which assessed the parameters of
Horlicks brand using a Likert scale. The initial parameters were decided upon an expert interviews
with a pool of mothers and children. This was the voice of customer where the customer verbatim
was framed into questions.

IV C. Objectives of the study:

1. To study awareness and availability of various brands of malted health food drinks
3. To study preferences of malted health food drinks between all age groups with brand characteristics
and with other similar substitute of health food drinks
4. To study buyer’s perception in relevance with 4P’s of marketing
5. To find out the effect of malted health food drinks on respondent

IV D. Demographic Profile of Subjects:

Demographic data collected are in this sequence:
1. Age group
2. Gender
3. Nutritional Brand they prefer
4. Decision Maker
5. Beverage and Time of drink
6. Flavor and Place of Purchase
7.Rating of Product Attributes- Packaging, Popularity, Nutritional Value, Value for money, Public
Promotions

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COMSTRAT – TEAM ESPLORATORE
Variance
Variable Frequency (%)
IV E. Significant Analysis of Consumer’s Preference of
0-5 2 1.8
Consuming Health Food Drink in Relation to
(6-15) 9 8.1 Demographic Data
(15-30) 62 55.9 The Kruskal-Wallis H test is the nonparametric test
(>30) 38 34.2 equivalent to the one-way ANOVA, and an extension
of the Mann-Whitney U test to allow the comparison
Gender Variable
of more than two independent groups.
Variance (*No – Null Hypothesis)
Variable Frequency (%) Major Hypothesis and Findings:
Male 45 50 No1: There is a significant pValue = 0.887
correlation between age Since pValue > 0.05,
Female 55 61
and buying of nutritional No1 is accepted.
Choice Variable drink
Variance No2: There is a significant pValue = 0.536
Variable Frequency (%) correlation between gender Since pValue > 0.05,
Children 40.5 45 and buying of nutritional No2 is accepted.
drink
Parent 59.5 66
No3: There is a significant pValue = 0.735
Preference Variable correlation between Since pValue>0.05,
Variance decision maker and buying No3 is accepted.
Variable Frequency (%) of nutritional drink
Morning 58.6 65 No4: There is a significant pValue = 0.87
correlation between time Since pValue > 0.05,
Evening 9.9 11 and buying of nutritional No4 is accepted.
Night 31.5 35 drink
Table: Survey Analysis

There were additional Questionnaire to capture the emotional aspects of consumer behavior. The
below graphs capture the various aspects of the consumer needs.

The above market survey gives us 5 key insights:

1. Bournvita, Boost and Horlicks are the 3 brand names, respondents associate with.
2. Chocolate flavor dominates the market followed by Badam.

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3. Recommendation from Friends, Family dominates the choice among the survey respondents
4. Consumers prefer to switch brand if the other brand offers them the same nutritional
supplements.
5. Majority of respondents are willing to buy these nutritional beverages in malls, which is a
major point of sale.

IV F. Conjoint Analysis
Conjoint analysis was performed to study the competition in the market and various product
attributes. The input to conjoint analysis was from the primary research survey conducted whose
results are aforementioned.

Conjoint Methodology:
The consumers were asked to rank the product attributes in a Likert scale with a ranking toward 18
profiles. The product attributes decided upon from the primary survey:

Attributes
Brand 4 Boost Horlicks Bournvita Complan
Packaging 3 Hard bottle Cardboard Tetra Packs
Freebies 4 Puzzles Board Quiz Video
Games Games-
Learning
Positioning 3 Scientific Nutrition Fun
Flavor 4 Chocolate Badam Elaichi Original
Price 4 100g 250g 500g 1kg
Quantity Mix

The attributes were then ranked among 111 respondents. Experimental design approach was used
where 18 Profiles were generated using Quarter factorial method. The prohibition pairs were fed to
the database which simplified the data profiles.

IV G. Conjoint Research Findings:

Picture: Goodness of Fit

The goodness of fit statistics was plotted using utility values, calculated by MANANOVA regression
analysis. From this tool, we have the following insights:

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1. Flavor has a positive correlation with respect to consumer buying behavior of a nutritional
drink.
2. Brand Name has a positive correlation with respect to consumer buying behavior of a
nutritional drink.
3. Packaging and Freebies have a moderate impact on buying.

Average utilities
8
6
4
2
0
-2
-4
-6
Brand-Boost

Brand-Bournvita

Brand-Complan

Brand-Horlicks

Flavour-Badam

Flavour-Chocolate

Flavour-Elachi

Flavour-Original

Flavour-Vanilla

Packaging-
Disposable tetra…

Packaging-Hard

Price-Quantity

Price-Quantity

Price-Quantity

Price-Quantity

Freebies-Board

Freebies-Entry to

Freebies-Puzzles

Freebies-Video

Positioning-Fun

Positioning-

Positioning-
Cardboard…

quiz competition

games Promo…

Nutrition

Scientific
Mix-100g

Mix-250g

Mix-500g
Packaging-

Mix-1kg

games
bottle
Categories

Picture: Average Utility graph

From the conjoint plot we have the following key insights:

1. ‘Chocolate Category’ has the most positive impact on consumers.
2. Consumer’s are likely to purchase pet jars of 1 kg rather than small quantities for longer use.
3. Puzzles and Board games are the freebies which attract consumers the most as compared to
other options.
4. The one name which comes to the top of mind when consumers hear Horlicks ‘Nutrition’ and
positioning it as a ‘scientific drink’ has a negative impact.

V. New Target Customer Profile - Buyer Analysis

Segmentation:
• Demographic- Northern and Southern India
• Psychographic-Nourishment lovers- Consumers who are nutrition conscious, Consumers who
spend great time on weekends in malls or online, Milk lovers
• Income Segment- Strivers (11032.7-22065.3 INR), Seekers (4413-11000 INR)

Targeting:

Age Group

• 6-15-year-old kids
• 15-30- Teenagers and Young adults, Millennials
• 30-45- Mothers are concerned about the health of the family

Positioning Horlicks must adopt: Horlicks must position itself as a ‘nutritional’ brand. But Nutrition
must be perceived among the audience as a ‘fun’ element where it appears interesting to the target
group of 6-15 years.

Rationale: From the survey it’s evident from conjoint analysis that the one-word association for
Horlicks is ‘nutritional’. Carrying a brand legacy, Horlicks must capitalize on the ‘brand association’ by

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leveraging on the nostalgia element and creating a new revolution based on a creating a culture of
nutrition.

VI. SUGGESTED NEW PRODUCT:

Product – SKU mix Rationale Packaging Form

Horlicks Night Drink 35% of survey A hard bottle packaged in bright

respondents have dark colors resonating with brand
identified the time of persona- (Orange/Black/Blue)
preference as ‘before
sleep at night’

VII. INTEGRATED MARKETING COMMUNICATION STRATEGIES:

The aim of the Horlicks campaign is to transfer the existing communications mix from CURRENT
position to POST CAMPAIGN position, creating a new fully integrated, diverse campaign to strengthen
brand equity as well as generate sales, fulfilling all elements of the hierarchy of effects.

VIIA. Physical Nutrimeter Kiosks – The Kiosk Polaroid Campaign

Objective: The Nutrimeter allows you to feed in details about your child's daily meals and calculates
their nutrient intake for the day. With Nutrimeter, you can keep track of their key micronutrient
intake. This can help you to plan better to make sure your child isn't missing out on anything.
The aim is to have a maximum brand awareness for Horlicks as a brand and re-creating a strong brand
perception since ‘brand factor’ has the maximum value. Horlicks can play on nostalgia and nutrition
together by creating a brand persona. Thus by bringing Nutrimeter on ground in the malls with
greatest footfalls on weekends serve the purpose.

Source- business Standard-May 15,2016

Target Group:
Primary target Group – Mothers (Since in our primary survey 66% mothers have indicated their
decision maker influence)
Secondary Target Group - Children (Since they have a moderate power of influence)

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Platform Used- Phygital (Physical + Digital) crating an omnichannel presence

Type of Marketing Communication - On Ground Strategy

Execution Strategy:
1. Develop innovative kiosks with totem screens in malls which are placed in strategic locations
within the mall area.
2. Kiosks will be accompanied with Horlicks representatives.
3. On ground activation is executed by attracting the mothers (Primary Target Group) by a free
checkup of the child’s nutrition.
4. A recommendation portfolio would be offered to the mothers with their child’s deficiency and
strengths.
5. A polaroid photograph titled ‘Horlicks certified’ would be offered to the mothers which can
be posed on Facebook and Instagram.
6. The Polaroid Campaign for Horlicks is garnered to bring the mother on board with the product
allowing her to keep a constant check of Nutrimeter digitally post purchase of Horlicks from
the phygital kiosk.
7. As soon as the mother receives the real time nutrition report, she would be consulted by
Horlicks representatives.
8. The Horlicks representatives will be acting as the ‘personal selling’ mechanism within the idea.

Rationale:
The kiosk polaroid campaign will transfer the consumer from hostility, as much of the target market
have negative preconceptions of Horlicks, following the in store demonstrations, the customer should
be able to relate to the product which should in turn lead to increased sales.
As the major supermarkets in the India like Big Bazaar, Dmart are the leading retailers for Horlicks
sales in the industry, therefore they are the most logical choice of retailers for targeting consumers
and potential sales. The consumer will be able to purchase the product immediately after sampling
therefore generating optimum sales as a result of the promotion. Through utilizing Personal Sellers to
establish promotional experiential environments, the Horlicks brand can maintain its relationship with
retailers by utilizing its sales team. Marketing Public Relations is a multi-functional communications
tool. This kiosk idea will provide Horlicks with the opportunity to take the customer right through the
hierarchy of effect model, raising awareness in customers, generating trust, desire and action through
interacting with the Horlicks Sale team. Furthermore, selecting personal sellers similar to the target
market, increases participant cooperation, allowing the public to develop ‘affective’ feelings by
interacting with the personal sellers, recording their views, receiving free samples and promotional
items, stimulating conative thought, demonstrating the effectiveness of sales promotion and
achieving objectives.

VIIB. The Horlicks Game- Fall head over heels for Nutrition

Objective: For long Horlicks has adopted a scientific/nutrition positioning. It’s time to shift gears
towards the ‘fun’ factor which is inherent in competitors like Boost, Bournvita etc. About 47% of the
survey respondents have chosen ‘friends’ as the recommendation option. Multi- buy promotions by
creating an experiential ‘Game’ should drive volume sales, encouraging the consumer to buy more
than one pack. Coupons will be distributed via the Horlicks teams in the mall kiosks and retailers. This
aims to encourage new customers to purchase Horlicks as well as prevent existing consumers from
switching to other brands that offer coupons or other promotional deals.

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Source- business Standard-May 15,2016

Target Group:
Primary target Group – Children (6-15 years)
Platform Used - Gamification
Type of Marketing Communication - Promotions and Offers

Execution:
1. Create an experiential User Interface Game for kids where there are multiple levels based on
age. Create a Horlicks game which increases the aptitude and incorporate the fun element.
2. The game must be designed in such a way that child falls in love with nutrition and in the
meanwhile, it increases his/her thirst for learning. 3D and visualization can be used in the
gamification environment to provide a first class fun experience to the children playing the
game. The game must improve the intellectual capabilities of the child so that mothers
(decision makers) are looped to buy the product keeping in mind the nutrition towards
learning.
3. The game must proceed to many levels with certain premium features. Those premium
features could be unlocked using coupon code distributed via Horlicks packs or pet jars which
are chocolate and badam flavored to reinforce the brand value.
4. A leadership board facility must be provided in the game which the child can use to compete
with his friends.
5. The score would craft a ‘unique child persona’ which could be integrated with Nutrimeter app
to show the statistics on child growth and persona and recommendations. This access could
be given to the mothers who could keep a constant check wherever they are.
6. This Game will be targeted towards ‘select distribution centers’ like abacus classes, schools,
promotional children events and contests which will attract a lot of consumers.
7. The game needs to garner initial interest from the crowd and therefore must be associated
with a youth icon to initially gain popularity, love and recognition.
8. The ambassadors would include regional targeted youth icons which is favorite among the
kids of that particular region. The focus here is to gain endorsements from the heroes,
admired by children to boost up the brand recognition.

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Rationale:
This promotion will aid long term strategy because every time the consumer opens up their
Laptop/mobile they are reminded of the brand and consequently opt to purchase the product. This is
an example of ‘Consumer Franchise Building’. Children are more than consumers today; they influence
parents' purchases, according to Turner's New Generations 2016 study that surveyed about 6,000 kids
in India.
The study coins the term 'The plurals' for children born between 1997 and 2015 and finds that these
kids comfortably hold a variety of interests in diverse areas and are far more independent than
millennial consumers in their opinions and choices
We understand that some price promotions can just bring short term sales boost but damage the
long term brand value, however, we consider the promotional learning ‘game coupons’ to be
extremely beneficial both in the short and long term. This is because both the target groups can be
focused upon because of the learning and nutrition benefits.

VIIC. Horlicks Night Lite - Midnight Star Campaign

Objective:
About 38% of survey respondents have marked that they prefer nutritional drinks in night time. To
introduce a new market catering to such a segment, Horlicks can introduce ‘Night Lite’. Night Lite is
introduced with an aim of boosting the Horlicks brand.

Target Group:
Primary target Group – Mothers, Millennial (15-30 years)
Secondary Target Group- Mothers and Family Adults

Platform Used- Physical Stores and Digital Channels like big basket
Type of Marketing Communication- Storyboarding and Product Introduction

Execution:
1. Black colour changing mugs with heat will be used as promotional gifts with the Horlicks lite
night drink positioning ‘nutrition’ as wholesome during night.
2. This category will create a new customer base shifting the trend towards acceptance of
Horlicks as brand which offers nutrition even during night.
3. Since there is a strong positive correlation between ‘Time’ and ‘buying of nutritional drink’,
this drink will be positioned at eye level during the entry at retail stores kept in malls and local
retail stores.
4. The Black colour changing mugs will act as prop of remembrance of the brand. This cup can
be endorsed by storyboarding.
5. Storyboarding can leverage upon ‘James and William’ and create a map around their
personality. This story could be shown in the form of 30second video in social media and
displayed as a product label.
6. The health benefits can be displayed upon drinking Horlicks at night with scientific nutrition.
7. Additionally, a TVC ad campaign can endure this Horlicks Night Lite and indulge the brand
audience with the history.

Rationale:
Horlicks will create exciting point of sale displays so that retailers will position the products at eye
level encouraging purchase. This aims to encourage new customers to purchase Horlicks as well as
prevent existing consumers from switching to other brands that offer coupons or other promotional
deals. The sale promotion offers of buying two packs of Horlicks and receiving a free mug will mean

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that if all 150,000 mugs are given away, then the sales of Horlicks from those particular customers will
be doubled from 150,000 units to 300,000 units, which is a huge increase in consumption
which could affect further the usage habits. This will be down to the supermarkets relaying this
information back to GSK.

VIID. Innovative recipe Contest

Objective:
To leverage upon ‘malt based drinks’ to drive consumers to use the brand and try innovative ideas to
craft their recipe. This should act as a point of customer interaction thereby creating a brand new
communication and positioning of Horlicks relaunching it in the non negotiable nutrition segment.

Target group: Mothers

Platform Used - Online- Facebook, Instagram
Type of Marketing Communication - Contests

Execution:
1. A contest would be held on the lines of making innovative recipes using Horlicks powder in
food or the drink category.
2. Mothers will be given an opportunity to suggest a unique recipe. This contest would consist
of taking a video of the food/drink innovated and promoting it in the social media feed.
3. The best recipes would be awarded and they would be given a chance to experience a ‘day at
Horlicks with family’ with their recipe printed as a product label.
4. This would involve minimum cost of execution since it involves digital elements.

Rationale:
India spends the highest amount of time on social media. Horlicks can acquire promotion by word of
mouth and self such that it could expand customer base and portray nutrition as something ‘nimble’.
There has been an increased interest to go towards organic and home cooked meals. By having a
‘recipe contest’ consumers will come up with new ideas to use Horlicks and will try to envision ‘out of
box’.

VIII. CONCLUSION:

The new communication campaigns for Horlicks is a highly integrated, diverse, sophisticated plan that
will reposition the brand from a scientific drink with clinical nutrients consumed by growing kids to a
younger audience from 6-15 as a ‘fun nutrition’ drink.
The communications plan is dynamic and varied and utilizes the budget effectively to achieve
maximum impact, reaching the final objective of achieving double of consumers (as compared to now)
taking action and purchasing Horlicks.
The campaign will carry the consumer through the hierarchy of effects model, persuading
consumers to purchase Horlicks as well as developing brand equity and aiding the development of
a long term communications strategy. The variety of mediums used should bring the product to the
forefront of consumers’ minds and deter them from choosing competitors.

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