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Diversification of Horlicks Brand

This document discusses diversifying the Horlicks brand into new product categories. It analyzes pros and cons of diversifying under the Horlicks umbrella brand versus launching separate sub-brands. Potential new product lines mentioned include chocolates, fruit juices, milk drinks, ice cream, low-calorie foods, biscuits, breakfast cereals and diet substitutes. The document also provides an example diversification strategy for a new "Foodles" noodle brand and recommendations around pricing, distribution, and market entry procedure.

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401 views12 pages

Diversification of Horlicks Brand

This document discusses diversifying the Horlicks brand into new product categories. It analyzes pros and cons of diversifying under the Horlicks umbrella brand versus launching separate sub-brands. Potential new product lines mentioned include chocolates, fruit juices, milk drinks, ice cream, low-calorie foods, biscuits, breakfast cereals and diet substitutes. The document also provides an example diversification strategy for a new "Foodles" noodle brand and recommendations around pricing, distribution, and market entry procedure.

Uploaded by

deepak_hari
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Submitted By: Anupam Saha(011/1) Anurag K(012/1) Hari Deepak M(021/1)

Horlicks : Brand Overview


Horlicks

Hindustan Milkfood Manufacturers started manufacturing Horlicks in 1960 GSK currently owns the brand Horlicks

Market Share

Horlicks current market revenue: Rs. 23.05 billion, which is more than 50% of the total revenue of GSK in India Milk Beverages Market share: more than 50% It is rated as the third most reliable brand in India (src: http://www.fwd2all.com/top-10-most-reliable-brands-in-india/) All Horlicks bottles sold in India in a year placed end-to-end would form a chain six times the length of Great-Wall-Of-China

Hard Facts

Horlicks : Product Portfolios

Need for diversification of Horlicks brand


Pros
y Stagnation of the current

Cons
y Lack of countrywide presence

product portfolio y Extension of product portfolio y Change in food habits of Indians

(West and North have always been neglected) y Lack of proper distribution channels compared to competitors

What comes to your mind when we think Horlicks ? ..Health and Nutrition

How to diversify?
Diversification under Umbrella Brand
y Health related products can be

Diversification as a separate Brand


y Products that cannot be

diversified under the umbrella brand of Horlicks y Fruit Juice, low calories foods etc

directly related to health should be launched under a different sub-brand of GSK y Noodles, Chips, Pasta etc

Which products to diversify


 Chocolates  Fruit Juices  Milk Drink  Ice-cream  Whole range of low calories foods
 Biscuits  Breakfast Cereals  Low calorie sweeteners etc.

 Diet Substitutes

Market Entry Procedure


y Determining the size of the market y Can we create a new market y Analysis of important competitors y Need-Gap Analysis

Example: Low Calorie Food Market


y It should be diversified under the umbrella brand of

Horlicks y It should be targeted towards working class healthconscious people y Income level of this category of people is rising y Market is growing and only a few competitors exist in the current market scenario (ex. Britannia NutriChoice)

Foodles launch strategy


y Foodles should be launched as a separate brand by

GSK y The main USP of foodles is taste and hence it cannot be related to the Horlicks y People do not view noodles as a health-product y Pricing of Foodles should be on par with the competitors products
y Else Price-wars may occur y Competitors are heavyweights(like Nestle, ITC)

Distribution Strategy
y Tie up with existing distribution channels of different

companies which are not your competitors to enter second-tier cities and villages (eg. Cavin-Kare) y When they start realizing profits over a period of time GSK should focus on ramping up it s second layer of distributors

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