The Marketing mix of Horlicks analyses the 4Ps of Horlicks, including the Product, Price, Place, and Promotions. Horlicks is one of the leading brands in India that deals in food and drinks from malted milk. It has the distinction of being the only clinically proven drink that helps in the development of kids by making them taller, sharper, and more robust. The company alone has captured nearly fifty percent of the Indian market regarding health drinks. Although the brand Horlicks has been in the market for a long time, it still faces stiff competition from other companies, like
- Bournvita
- Complan
- Boost
- Pedia-sure
About Horlicks
- Type: Malted milk drink powder
- Industry: Food and beverage
- Founded: 1873
- Founder: James and William Horlick
- Headquarters: Malvern, UK
- Area served: Worldwide
- Key people: Alan Jope (Chairman)and Fabian Garcia (CEO)
- Number of employees: Over 10,000
Table of Contents
Horlicks Product Strategy
The company has taken special steps to develop the drink scientifically to cater to the nutritional needs of all age groups of consumers. Until the 1960s, it was marketed as a refreshing drink for adults. Still, later in the 70s, it was launched as having nutritional value, good taste, and a drink that provided immunity to the body. The company has decided to cater to each section of society by including women and children of every age group. In 2003, Horlicks re-launched itself to maintain its loyal customers and attract a new breed of health-conscious consumers.
Horlicks offers a diverse range of products catering to various nutritional needs.
The new Product Mix of Horlicks in 2023 is as follows (Source).
- Malted Milk Drinks: Available in multiple flavors, including Regular Malt, Chocolate, Honey, Elaichi, and Vanilla.
- Targeted Formulations: Products like Junior Horlicks for children, Women’s Horlicks, Mother’s Horlicks, and Horlicks Lite to cater to specific demographic needs.
- Biscuits and Snacks: Horlicks has expanded into food items like Horlicks biscuits, Horlicks Foodless, Horlicks Nutribic Diabetes Biscuits, Horlicks corn flex biscuits, and Horlicks Nutribic Digestive Biscuits.
Horlicks Place Strategy
Horlicks is a well-known health food brand that owes its success to a focused communication process and a strong distribution network. The products must be available to the customers at their convenience. Therefore, the brand has taken such steps that the product is always available to the consumer at the correct time and place and in various quantities. Horlicks controls a network that includes factories, wholesalers, channels for distribution, and retailers. It has factories and manufacturing plants in southern and eastern markets for its production, and the packaging units are located conveniently. The sales offices for Horlicks are in all four metro cities, where the sales are coordinated along with collection and distribution activities of their particular region.
Horlicks employs a comprehensive place strategy to ensure its products are widely accessible:
- Extensive Distribution Network: The brand maintains a large distribution network, including wholesalers and retail outlets.
- Availability in Various Outlets: Horlicks products are found in grocery stores, supermarkets, and large retail showrooms with food departments.
- Production and Packaging: Manufacturing plants and packaging units are strategically located for efficient production and distribution.
- Online Sales Platforms: Horlicks also leverages online platforms, allowing consumers to purchase products conveniently online.
- Regional Sales Depots: Each state has a sales depot for distributing products to wholesalers, ensuring widespread availability across different regions.
Horlicks Pricing Strategy
Horlicks has set up a marketing research team that collects data about their own and their competitors’ products. After a thorough analysis, the prices are set for the different products. Though the company aims to maximize profit, they have kept the prices reasonable. The pricing strategy involves competitive pricing where the consumers do not have to make undue sacrifices in their budget against other comparative drinks. Horlicks, as a brand name, represents quality to the consumers. This is why the company has decided to follow a value-added pricing policy. The consumers are guaranteed to get their money’s worth from Horlicks drinks, and as the nutritional capacity of the drink is much higher than those of other drinks, the consumers do not hesitate to make it their final choice.
The prices of all the products are printed and displayed on the labels of every product to avoid any confusion. Sometimes, the place of sales also determines the product’s price. For instance, a small shop owner will sell the product at the printed price, but a mega storeowner may sell the same product at some discount. This is because the big stores can maintain their profits in bulk buying and selling because of the sales volume.
Horlicks employs a strategic pricing approach that caters to its diverse consumer and business base:
- Competitive Pricing: Horlicks sets prices in line with competitors to ensure affordability and maintain market competitiveness.
- Value-Based Pricing: The brand focuses on value-added pricing, reflecting its products’ nutritional benefits and quality.
- Market Research-Informed Pricing: Prices are determined after thorough market research, considering their products and competitors.
- Flexible Pricing Based on Location: Pricing can vary based on the sales location, with potential discounts in bulk purchases at larger stores.
- Consumer-Centric Pricing: Ensuring that products are accessible to a wide range of consumers while balancing profitability and quality.
Horlicks Promotion Strategy
Horlicks has a deep and robust understanding of the needs and wants of its consumers. They have capitalized on this knowledge to create excellent and knowledgeable promotions for their brand. All its advertisements have highlighted its deep commitment to maintaining and presenting qualitative products. As a heritage brand, people have started linking Horlicks with excellence and success. The different and new variants of the brand have maximum visibility and shelf appeal because of direct advertising and indirect promotional activities.
The brand has been involved in seminars stressing the importance of nutritional drinks. To initiate awareness about its product, several fests are organized in schools, malls, and showrooms, where everyone is offered a free drink. Many ad campaigns have been created featuring kids and strong messages. These are aired on various television and radio channels. The print media has also been roped in, where the ads are displayed in the newspapers, billboards, and magazines. It has an apt tagline- “Horlicks, nourishment for life.” Some celebrities associated with the Horlicks marketing are Vidya Balan and child actor Darsheel Safari.
Eye-catching and safe Packaging has always been a boon for every product, and this has been the case for Horlicks. The company has concentrated on attractive packages that include sachets, refill packs, and jars. These are airtight and durable so that the freshness and taste are not hampered, and they are available in bright Packaging in orange and blue colors for easy identification of products. The products have distinct labeling that provides the consumers with all related information, such as the various ingredients, retail pricing, manufacturing, and expiration dates. Horlicks also provides periodic discounts from five to ten percent and bundled gifts to maintain their customer base.
Some Recent Video ads and Print ads for Horlicks are:
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