Market Segmentation and Target Markets

1. Market Segmentation and Target Markets • Gradually, the brand extended itself to products catering to a different Target Audience • Horlicks Lite variant for old • Horlicks Junior • Horlicks Women • Horlicks Junior Biscuits • Horlicks Nutribar • Age-wise targeting • Location-wise targeting • Launched chocolate variant for North and West • Vanilla and Honey for targeting others

2. Perceptual Mapping Various attributes are as follows: • PRICE • Taste • Quality • NUTRITION • Packing

3. Price LOW Nutrition HORLICKS LOW

4. Positioning Strategies From a boring nutritional drink, GSK has positioned Horlicks as `pleasurable nourishment', by launching it in vanilla, chocolate and honey variants. Child: "Horlicks is an old person's drink and I drink it only because mama forces me to do so." Mother: "My kids drink whatever they feel like, and I wish they would ask for Horlicks." The new brand positioning also finds mention in the product packs which now carry a logo saying — `Now Proven - Taller, Stronger, Sharper.' This positioning has worked wonders for the brand whose sales were flat for a few years. "Ever since the re-positioning, Horlicks has grown by four per cent in volume and by seven per cent in value."

5. Positioning - Horlicks Junior Horlicks – a 150 crore brand has positioned a product exclusively for children between the ages of two and five Horlicks Lite for the elderly who often have a sugar problem For the youth GSK Consumer Healthcare has leveraged the brand to venture into an entirely new product category — energy cereal bars. Horlicks Nutribar positioned on the twin planks of health and convenience

6. Brand Strategies In the late 1990s, market research showed that Horlicks was seen “as a nourishing, but boring drink” and was beginning to lose significance. So, in 2003, the brand was revamped: It was made tastier and launched in two new flavours — vanilla and honey. The brand today talks to every member of the family rather than the entire family The idea is to address all age groups.

7. Branding and Communication Strategy In the early years, mothers were the sole target audience since the product catered to the entire family. However, once pester power became big in the 1990s, the Horlicks advertisements started talking to children too. The change worked because it was also the time when mothers’ mindset was changing — they had become more indulgent and let children drink what they liked, rather than imposing on them a drink of their own choice.

8. Branding and Communication Strategy Horlicks may not be a cheap product but it’s been communicated as a value-for-money product. Parents today are willing to spend more on nutrition for their children Compared to competitors, Horlicks is the best money proposition and, moreover, the consumer gets value for the money spent The radio, through which Horlicks reached out to mothers even 40 years ago, is still an effective channel

9. Branding and Communication Strategy Communication message — `Now Proven - Taller, Stronger, Sharper.' Darsheel Safari – the new face of Horlicks Objective behind Darsheel as a brand ambassador Theme of Horlicks commercials is based on kids with a positive attitude Women’s Horlicks