Date post: | 17-Aug-2015 |
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BRAND EXTENSION ASSIGNMENT
BRAND – HORLICKSBy Nikita Singh
WINTERTemplate
HORLICKS- brand overviewProduct Category
HFD (HEALTH FOOD DRINKS)
Parent Company
GLAXOSMITH KLINE CONSUMER HEALTHCARE LTD (GSK CH)
Countries where manufactured & marketed
UK, Sth Africa, New Zealand, Bangladesh, India, Pakistan, Jamaica, Philippines, Malaysia
UK 140 years old brand
India Imported since early 1900sManufactured since 1958
GSK – about the company
• Consumer Healthcare division of GSK, world’s 6th largest pharma company
• Percentage shareGSK pharma GSK Consumer
Worldwide 85% 15%
India 35% 65%
GSK CH India
NUTRIONALS (horlicks +Boost and extensions,
Viva and Maltova
Wellness - OTC (Eno, Iodex, Crocin,
Ostocalcium) & OHC (Sensodyne)
Foods (Horlicks biscuits, Foodles,
Oats)
GSK CH India – Snippets from Annual Report
• Net Revenue – 5144 Cr• PBT – 1016 Cr • PAT – 674 Cr
• 13.1%– higher than the industry average
• All Horlicks and Boost variants recorded strong double digit growth during the year
• The Foods portfolio continued to deliver strong growth. Horlicks Oats more than doubled its business during the current year and now ranks second in terms of market share in South India
• The year also witnessed the launches of Horlicks ProMind and Horlicks Kesar Badam. Horlicks ProMind, positioned as specialized nutrition for brain function
Horlicks India – Line & Brand Extensions
Line Extensions
Flavors (Chocolate,
Women’s Horlicks
Mother’s Horlicks
Junior Horlicks
Horlicks Lite
Horlicks Gold
Horlicks India – Line & Brand Extensions
Horlicks – brand arrow
Parent Brand- Horlicks (Classic Malt
• Original Horlicks flavour• Market leader in the South of India, where health benefits of the
product preferred over chocolaty taste• Marketed as the “Great Family Nourisher” • Recent campaign focusses on Horlicks kids as “taller stronger sharper”
Core Value Stands for Nutrition
Emotional benefit
Appeals to mother’s with a promise of making kids “Taller, Stronger, Sharper”
Functional benefit
26 Vital Nutrients that are know to improve concentration, blood quality, muscle mass etc
Attribute Malt Taste, Family Nourisher (pre 2000’s)
BRAND LADDER FOR HORLICKS
Facts about the brand Horlicks & HFD
HFD market in India 5190 Cr
% market share of Horlicks
46.4%
Growth of HFD, last 3 years (%)
2014 --- 4%2013 --- 11%2012 --- 13%
Growth of Horlicks, last 3 years (%)
2014 --- 9%2013 --- 12%2012 --- 13%
Comments Due to its line extensions strategy – where extensions like Junior hlx, mother hlx etc cater to the need of a specific niche, and are charged at a premium, Horlicks is outperforming the category.
HLX Oats – Horlicks brand extension
• Current Market for Oats – Rs 280 crores• Projected Market in next 2 yrs- Rs 500 crores• Emerging as a quick healthy breakfast option in
Indian Cities
MAJOR PLAYERS % SHARE
Quaker 39.32%
Horlicks Oats 16.96%
Saffola 7.27%
Kellog’s 4.12%
Others 32.1%
HORLICKS OATS
• Brand Endorsement- Launched as “Horlicks Oats” to drive on the brand equity of Horlicks
• TG- 30+ working professional, leading to a healthier life style
Core Value Health and Nutrition
Emotional benefit
Move to a healthier you and a healthier lifestyle
Functional benefit
3 way health advantage – known to reduce weight, maintain cholesterol, blood pressure
Attribute Low on sodium, High on protien
BRAND LADDER FOR HORLICKS OATS
Category overview - Oats
Oats market in India 280 Cr
% market share of Horlicks Oats
16.96%
Growth of Oats, last 3 years (%)
2014 --- 2%2013 --- 24%2012 --- 36%
Growth of Horlicks Oats, last 3 years (%)
2014 --- 11%2013 --- 46%2012 --- NA
Comments Being a new entrant, backed by stronger distribution compared to market leader, Horlicks Oats is outperforming the category.
Horlicks Oats Marketing Mix – Product
•Not much differentiation on product per se from competition
•Launched in 2 variants – Base oats and Savory oats
•Savory Oats launched to counter the “Low on taste perception” – Being taken off from the market now.
•Packing in line with holicks HFD – projecting oats as a healthier option.
Horlicks Oats Marketing Mix – Price
• Aggressive pricing, inline with the competition and the category
Pack MRP
500 gms 94
1 kg 175
Savory (15 gm) 15
Horlicks Oats Marketing Mix – Place
• All India Category Penetration – 13%, South India – 32%
• Nearly 72% of the category sales comes from South India
• Based on the category facts and the fact Horlicks is already enjoys a strong equity and distribution –GSK CH has only launched oats in South India and Modern Trade
• Trade focus is still on upper end grocery and chemist stores
• Promoting at corporate offices and Messes
Horlicks Oats Marketing Mix – Promotion
•Strong ATL presence with roughly half the A&P spends going on ATL (Mainly TV)
•Key Proposition - 3 way health advantage•Brand supported by 4 consumer promotions during the year – a category fact (Common promotion include horlicks extensions and horlicks)
•Strong presence on digital media – share your own recipe with Horlicks oats etc
•Consumer activations in modern trade revolve around experience and sampling
Part 4 - STP
Market Segmentation – Horlicks Oats
• Shades of Demographic, Geographic and Psychographic segmentation
• GEOGRAPHIC• Limited currently to South India
due to existing Horlicks equity and category skew
• DEMOGRAPHIC• Targeting 30+ working
professionals• PHYSCHOGRAPHIC
• Targeted towards SEC A and B• People inclined towards a healthy
lifestyle• Resulting in a premium, upmarket
imagery.
THE TG – Aspirational, SEC A/B, Corporate working The key Lifestyle attributes of the TG that
have impacted the promotion strategy are: Little time for self due to a hectic
lifestyle Conscious of the fact, and actively
seeking alternatives to make up for lack of exercise
Enough disposable income, can spend on a costlier but healthier option
PROMOTION STRATEGY TO CATER TO THE TG TV plan heavily skewed towards lifestyle shows, shows speaking to sec A/B
housewifes Experiential activations in Modern trade and top end grocery stores where the
TG shops Heavy promotions in corporate offices and messes High presence in digital space (FB, Twitter, Youtube), where the TG spends
considerable time
The competitive landscape
Quacker Oats• Market leader, enjoys the first movers and legacy advantage• Plays on the healthy heart platform and leverages strong
distribution from pepsico• Synonymous with the category in many geographies
Saffola Oats• Brand extension of saffola oil – has stronger right to win with
“healthy heart positioning” of the mother brand• First brand to bring any innovation in the category – flavored
Oats; • Tried to rejuvinate the category and bring it closer to healthy
snacking even overlapping with instant noodles.
Kellogs Oats• From Kellogs – the market leader in breakfast cereals.• Launched as a natural extension for completing total basket
of breakfast options from kellogs• Heavily promoted in trade, especially modern trade, with price
offs, discounts and promotions.
Horlicks Oats v/s competition – POPs and PODs
POPsPackaging – similar grammage
and price pointsVariants and Flavors – similar
to the competitionPositioning – the core
positioning is still around heath which is a category benefit.
PODsMother brand equity – Horlicks
brand nameDistribution advantage – with
Horlicks being one of the most distributed brands
Moving beyond the category benefit of only health – 3 way
advantage
3 way health advantage – the key differentiator
Differentiates the brand through stronger relevance and tilt preference towards Horlicks Oats as only oats that deliver benefits beyond the category benefits.
Dials up the perception of the brand as based on high science
References
• http://www.gsk-ch.in/AnnualReports.aspx• http://marketingpractice.blogspot.in/2011/11/brand-update-
horlicks-extends-to.html• http://www.campaignindia.in/Video/281456,launch-tvc-of-h
orlicks-oats-asks-people-to-change-for-a-healthier-tomorrow.aspx
• http://www.hindustantimes.com/business-news/breakfast-appeal-with-oats/article1-1099931.aspx
• http://articles.economictimes.indiatimes.com/2013-10-30/news/43528911_1_horlicks-nutribar-biscuits
THANK YOU !!!