STP Analysis of Horlicks

STP ANALYSIS OF
HORLICKS
SUBMITTED BY – KUSHAGRA BHARDWAJ
HARSHIT RAJ
MAYANK GOSWAMI
HARSH RANA
History
 1873: James Horlick & Williamtogether they founded the company J& W Horlicks.
 1945: The U.S. company wasacquired by the British Horlicksbusiness.
 1958: Hindustan MilkfoodManufacturers Pvt. Ltd.
 1969: Horlicks acquired by theBeecham Group.
 1989: Beecham Group becameSmithKline Beecham.
 2000: SmithKline Beechambecame GlaxoSmithKline.
Facts
 Horlicks is almost a 137 year oldbrand.

 Horlicks was first invented tosubstitute milk as baby food.
 It has been contributing almostclose to 80% of net sales in theGSKCH product portfolio.
 The brand has been endorsed byAmitabh Bachchan on theradio(1960-70), Moon Moon
Sen,Vishwanathan Anand.
 Biggest market is India.
 More than 1 millions packs is soldper day.
 6th most trusted brand in India.
Segmentation
 segmentation is the process of sub-dividing a whole market in differemt groups or subsets .the market of horlicks is segmented as follows -:
 1) GEOGRAPHIC SEGMENTATION - in the northern part of the country,it has a huge demand as a white drink whereas chocolate horlicks
is a very popular in the southern part of the country
 2) 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 consious adults and for diabetic people
* chocolate and other flavoured horlicks- for teenagers.
 3) PSYCHOGRAPHIC SEGMENTATION -:* Health conscious
 * Recovery/energy gain
 4) BEHAVIOURAL SEGMENTATION-:* Growth oriented
 * Sports
Targeting
 Once the firm has segmented the total market,it should select the target market segment or
segments for marketing .this is called targeting.
 This is an every day product. target differs with each variety of offering consumer insigts
food drinks that are nutrious and available at competitive pricing and easily available
customers need state . a milk additive that improves the nutrition level and taste of the
milk .
 geographic dispersion urban, suburban family life cycle full nest,single parentS
 Social stratification upper class,lower class,upper middle class.
 Age segments infants (0-5),mothers(18-45).
 income average, above average ( 50k to 100k per month).
Positioning
It was initially introduced both a substitute & an additive to milk and it was
initially positioned itself as “food for convalescing” & a nutrient supplement for
kids only.
From a boring nutritional drink,GSK positioned Horlicks as`pleasurable

nourishment', by launching Elaichi, Chocolate, HoneyBuzz, Vanilla etc .
Conclusion
 The Horlicks was invented as a substitute for milk as a baby food by William & James Horlick,
the British brothers. The flagship brand of GlaxoSmithKline is present in various flavors in the
market and with different product lines like biscuits, Noodles, growth supplements, and
beverage.Based on the nutritional requirement of the different age groups and product usage such
as that of malt beverage is for toddlers & pre-schoolers, growing kids and for adults including
mothers & women.Since the brand is present in different product categories like healthy biscuits,
noodles, nutritional drinks, and energy drinks, therefore, it uses differentiated targeting
strategy.The brand has been positioned as a healthy nutritional food for every life stage and for
consumers of every age. It is being liked so much India that approx 30 million Cups is being
drunk in India every year.For brands, it becomes easy to offer the products when there is the
bouquet of products for each of the segments of the market. Horlicks, in order to ensure that it
does not restrict itself to a particular group of customers, has introduced Horlicks for every age
group of customers with different SKU’s along with different flavors and easy to use refill packs.
GSKCH performance
 From 2002 to 2005 the company witnessed poor growthregistering low or negative growth rates.
 Q2 2008 sales soar up 19.3%
 GSKCH has also performed well over the last 5 years
 its Net Sales and EPS have clocked impressive 5 yrCAGR’s of 17.44% and 27.97%.
 11.5% sales growth, 2009
 Net sales of Rs. 720 corers over 2010
 Impressive sales growth of 18% over 2010
 Q4 2010 sales up 21% ad profits up by 58%
 Q2 2011 sales up 22% ad profits up by 15%
 17.85 per cent rise in net profit at Rs 69.65 crore for thefourth quarter ended December 31, 2012.
 16 per cent increase in sales in the quarter ended March 31,2013.
 Glaxosmithkline Consumer spurts on reporting 19% rise inQ1FY13 net profit
 March 31, 2013, the total income from operations (net) wasRs 975.38 crore against Rs 836.41 crore during the sameperiod in the previous financial
year.

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STP ANALYSIS OF

 Horlicks is almost a 137 year oldbrand.

From a boring nutritional drink,GSK positioned Horlicks as`pleasurable

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