Junior Horlicks Project Report)Participants-Mylapore(Chennai):1.Rajesh Srinivasan (S15MMMMM00605)
2.Rajshekhar Pisharody (S15MMMMM00577)
3.V Sharath Kumar (S15MMMMM00536)
4.Arulvel (S15MMMMM00622)
5.Eshwar
6.Uma Sankar (S15MMMMM00759)
SegmentationGeographic
Region South,West,North,East
City Class-1,Class-2,Metros,Cities with a population ranging from 0.5 million to little over 1 millionRural & Semi Urban Areas All Rural Villages
Demographic
Age Children 2 to 6 Years
Family Size Not particular
Gender Male,Female
Income(Parents) Lower Middle,Middle,Upper Middle and High
Occupation (Parents)Skilled workers,Shop Owners,Petty Traders,Businessmen/Industrialists,Self Employed ,Salaried clerical and above
Education(Parents) For self employed -School between 5 & 9 years is ok,SSC/HSC,Graduate,Diploma,Post GraduateSocio Economic Classification A1,A2,B1,B2, C & D for Self Employed,R1,R2,R3,R4
Psychographic Lifestyle (Parents) Culture oriented,Sports Oriented,Outdoor-Oriented
Personality (Parents) Compulsive ,Gregarious ,Authoritarian ,Ambitious
Behavioural
OccasionsSpecial occasions when children are participating in sports events or when appearing for Exams or during health screening in schools
Benefits Quality ,Economy,Health Benefits ,Growth Benefits
User Status Non Users,Potential Users,First Time Users and Regular Users
Usage Rate Light ,Medium ,Heavy
Loyalty Status Medium,Strong,Absolute
Readiness Stage Unaware,Aware,Interested ,desirous ,Intending to BuyAttitude towards Product Ehtusiastic,Positive
Psychographic Segmentation
• Thinkers• Believers• Achievers• Strivers• Experiences• Makers• Elderly Passive people concerned about change and
loyal to their favourite brands are excluded
Customer Need-B2C & B2B Perspectives
B2C •Need-Raised by parents after observing their Children’s overall activities•Vulnerable and can be influenced by Media ,News Paper editorials ,PEL(Patient Education Literatures) & So on..
B2B •Basically recommended by HCP’s(Health Care Professionals) to consumers or Patients•Less Vulnerable for a change as they recommend the product purely based on Science and that’s the only influencing factor
Triggers :Consumer Need (B2C)
• Not Energetic
• Not so Studious in School
• Weak-Not mixes with children while playing
• Mal Nutritioned-Thin Children
• Fussy Eaters
• Dwarf Children
• Under Weight
• Less Stamina
• Situational Need –Sometimes while children are participating in special sport activities
• Influencers-Neighbour or Relative Suggests
Triggers :Consumer Need (B2B)
• Based on the eating habits (for eg : Recommends for Kids who eat more Junk foods /Less nutritive foods )
• Weight for Age not as per the guideline• Height for Age not as per the guideline• Fussy Eaters• Parents requests • Children present with infections very frequently• Food habits sometimes triggers the need like for instance kids taking less amount
of milk ,egg ,Spinach etc every day
Triggers :Consumer Need (B2B)
• Chain Stores-Discounts ,Margin ,Freebies ,Credit Period ,Timely Supplies • CSD & CSD Dependent Consumers(People from Defence etc)-Availability any time
in Canteens ,Available with less rate as compared to the retail markets outside canteens ,Availability of multiple variants of the same product, Credit Period
• Digital –Online Purchase: Product quality ,Delivery on time ,Less price as compared to direct stores
Growth in children-First customer Need
Increase in Weight
Infant’s rate of growth in the first 12 months is truly remarkable
Increase in Height/Length
Brain growth in children-Second Customer Need
Head circumference is an indicator of brain growth
Balanced Nutrition and brain growth-Third Customer Need
Vitamin B2
Vitamin B6
Vitamin B12Vitamin
C
Folic acid
Iron
Iodine
zinc
Macro- and micronutrient intake is inadequate in small children
NNMB(National Nutrition Monitoring Bureau) data indicates:
• 75% of the preschool children consumed less than 30% of RDI of milk
• Less than 70% RDI of energy
• 87.5% were having less than 70% RDI of vitamin A
• 90% of the preschoolers had a low intake of iron
Customer Value
Functional Value• Height• Brain Development• Protein rich food for strength• Balanced Nutrition for fussy eaters• Taste• Healthy Weight Gain• Price• Pack
Emotional Value• Growth of children• Brain Development• High Vintage Brands• Expert Advice• Attractive Packing –Liked by Kids• Special Schemes-Eg:Free Gifts like Ball/Bat/Stickers on Cartoon Charecters
Targeting
• Geography-Tier-1,Tier-2,Metros ,Rural • Demography-Parents for children between 2 to 6 years• Psychography-Health Conscious ,Growth Oriented ,Sharpness oriented
Parents ,Parents for children who are fussy eaters,Parents for children who get ill frequently.
• Behavioural-A Non User/Potential User/First Time User whose attitude towards using a Toddler food product is positive and is desirous with a reasonable affoordability
• B2B:HCP’s who recommend high amount of Nutrition supplements ,who has a middle ,higher middle and upper clientale base who can afford .
Positioning
• Toddlers and Preschoolers• Children between 2 to 6 years• Points of Differences:Children require Brain development for their
Sharpness vs Pediasure which is focussed on Immunity and not in brain development
• Points of Parity:Children require Height and Weight vs Pedisure which also focusses on Height and Weight.
• Substantiated with the presence of Nutrients for Brain development
Junior Horlicks Nutrition Plan aids in overall growth & development in children
19 Vital Vitamins & Minerals for Complete Development
100% RDA of iron to Support Mental & Psychomotor
Development
Junior Horlicks Nutrition Plan provides complete nutrition
Junior Horlicks Nutrition Plan –superiority nourishment Each 100g of Junior Horlicks contains approximately
Junior Horlicks 1–2–3 Junior Horlicks 4–5–6
Energy 388Kcal 388Kcal
Protein 15.2g 15.8g
Carbohydrate 72.8g 72.2g
Fat 4g 4g
Vitamin A 333mcg 375mcg
Vitamin C 50mg 50mg
Vitamin D 4.2mcg 4.2mcg
Vitamin E 4.2mg 4.2mg
Vitamin K 12.5mcg 16.7mcg
Vitamin B1 0.42mg 0.5mg
Vitamin B2 0.83mg 1mg
Vitamin B6 0.83mg 1mg
Vitamin B12 1.5mcg 2mcg
Folic Acid 250mcg 333mcg
Niacin 5mg 6.7mg
Calcium 833.3mg 833.3mg
Magnesium - 41.8mg
Iron 19.3mg 21mg
Iodine 75mcg 75mcg
Zinc 3.4mg 4mg
Selenium 14.2mcg 18.3mcg
Copper 0.28mg 0.4mg
Biotin 6.67mcg 10mcg
Phosphorus 1.6mg 2.5mg
Pantothenic acid 1.67mg 2.5mg
DHA 20mg 20mg
Choline - 137.5mg
• CSAT/CSI=Importance * Performance
Customer Satisfaction Index-Calculation Importance
Parameters Consumer-1 Consumer-2 Consumer-3 AverageTaste 3 4 5 4.00Ease of Use(Miscibility) 4 3 6 4.33Price 2 1 2 1.67Pack 6 4 5 5.00Health Benefits 1 2 3 2.00Availability 5 6 1 4.00
PerformanceParameters Junior Horlicks BournVita Performance Consumer-1 Consumer-2 Consumer-3 Avg-A Consumer-1 Consumer-2 Consumer-3 Avg-B (AvgA-AvgB)Taste 4 3 3 3.33 5 4 2 3.67 -0.33Ease of Use(Miscibility) 4 4 4 4.00 4 4 4 4.00 0.00Price 3 3 3 3.00 4 3 3 3.33 -0.33Pack 4 4 2 3.33 4 4 2 3.33 0.00Health Benefits 4 4 4 4.00 3 2 3 2.67 1.33Availability 4 4 5 4.00 3 4 2 2.67 1.33
Parameters Average Performance
CSI Score-42 (Total Score for Importance * Total score for
Performance
Taste 4.00 -0.33
Ease of Use(Miscibility) 4.33 0.00
Price 1.67 -0.33
Pack Size 5.00 0.00
Health Benefits 2.00 1.33
Availability 4.00 1.33
Total 21.00 2.00
CSAT/CSI Score
Performance-Importance AnalysisBased on the scores from the CSAT Index ,Taste and Price turns out to be the Vulnerable factors Health Benfits and Availability turns out to be the Strength of the Product (Junior Horlicks)Pack has least importance and Performance .Hence it falls under the quadrant-Who CaresAnalysis done on the basis of the suvey done with only 3 consumers as a Trial method.
PerformanceLow High
Low
Importance
Who Cares(Pack) OverKill
HighVulnerable
(Taste,Price)Strength(Health
Benefit,Availability)
Junior Horlicks – AdvertisingValue Proposition – Case Study with an Advertisement
Pain Point – Children don’t eat properly & they also don’t eat healthy food
Benefits – Essential for Brain Development & Growth
Reason to Believe – Nutri-compact formula for Growth & DHA nutrients for Brain Development
Preview YouTube video Junior Horlicks_TVC_30sec HindiJunior Horlicks_TVC_30sec Hindi
https://www.youtube.com/watch?v=KW_8Gi-_afg&spfreload=10
Junior Horlicks – Advertising
Brand Window
The brand was shown three times in the ad
The brand name was mentioned two times (one during the introduction of the product & at the end of the ad)
Junior Horlicks – Advertising
Psychology
The Brand manager has followed the 3 hit theory, by showing the brand 3 times in the ad Recency effect, by showing & mentioning the brand name at the end of the ad The new packaging along with the freebies attracts Kids The new advertisement with the Experts Advice attracts the parents
Junior Horlicks Brand Relevance & Differentiation
RelevanceBenefits like Brain Development ,Height & Healthy weight gain is highly relevant to the target segment.DifferentiationPediasure – Height, weight, immunity for growth (Less sick days)Junior Horlicks – height, weight, sharpness-Brain Development. (Taller ,Stronger,Sharper)Difference-Sharpness (Brain development in Jhlx ) & Immunity (Less sick days in Pediasure)
Consumer BehaviourPsychological Factors influencing buying behaviour
• Product users -> Toddlers & Pre Schoolers (Communication)• Decision makers -> Mothers (Communication)
• Motivation
• Functional - Taste ,Height ,Weight,Brain Development,Immune development• Emotional - Child’s health , Irregular Eating habits or Fussy eating Kids, To Stop making
kids adhere to Junk foods (These are the parents’ concern for their Kids)
Consumer BehaviourFactors influencing buying behaviour
• Learning• Direct Influencers on Mothers-Pediatricians ,Friends , Relatives• Virtual Influencers on Mothers-TVC’s showing health benefits with Jhlx with a clear RTB • Brand Adherence-Brand Adherence is less/Volatile when the product is influenced by
Friends ,Relatives as these are not considered as Experts
Consumer BehaviourFactors influencing buying behaviour
• Perception• Marketers positioned Junior Horlicks as a nutritious health drink for fussy-eating children
and they show children & mothers in ad where children neglect to eat food but enjoy drinking Junior Horlicks. This brings happiness in the mother’s face.
• Thus, the consumers perceive Junior Horlicks positively and marketers are able to get top-of-the-mind awareness which result s in consideration and trial.
Consumer BehaviourFactors influencing buying behaviour
• Attitude
• Massive spends in marketing program like TV commercial and recommendations from pediatricians and health care professionals helped consumers to take positive action (purchase of the brand).
• The strong Brand Equity of the parent brand ‘Horlicks’ also comes handy for the sub-category brand ‘Junior Horlicks’ .
• Heavy Visibility campaigns in the retail stores gives a positive attitude about the brand• Brand Visibility inside the HCP’s(Health Care professional’s-Doctors &
Nutritionists)Clinic/Nursing Home/Hospital makes Mothers to get a positive attitude about the brand
Competition Study-Junior Horlicks Vs Pediasure
• Nielsen Figures:Pediasure shares are increasing in Urban Markets while Junior Horlicks holds its Numero Uno Position in Rural Markets
Market Value Share (in Urban India) May 2014• Junior Horlicks‘ - Rs 16.34 crore • PediaSure stood at Rs 18.59 crore. (Source : Nielsen Survey)
Brand Development-Competition View
Junior Horlicks Pediasure
Positioning:Relevant Positioning and Primary focus on Expert opinion
Positioning:Relevant Positioning and Marketing Strategy by Engaging Young Mothers
Spends:Heavy Spends on TVC's
Spends:Modust Spends on TVC's
Other Market Development Activities:Growth Assessment Camps In Pediatrician clinics ,Freebies with product ,Focus on Attractive Packaging change ,Focus on LUP(Lower Unit Packs ) In Rural Market , Flavour Addition
Other Market Development Activities:Sure MOM's campaign for Young Mothers-A Program to educate parents and counsel them to identify signs of fussy eating and guide them on how to make the meal time more interesting through a 6 step process . They reached around 2 lakh mothers in 2013 via schools ,malls , army & Navy canteens , Residential societies and offices etc , Discounts to Retailers , Flavour Addition , Free nutritional counselling in Malls
**Source-Brand Equity ,Economic Times
Sales Force Management-HierarchyDirector-Sales
BSM-General Trade
ASM’s
ASM-CSD
RESM-Expert Team
ASM-ALC
ASM-ALC:Area Sales Manager,Alternate Channels BSM:Branch Sales ManagerTSE/ASE :Territory Sales Executive/Area Sales Executive CSD:Canteen Stores DistributorsDSR /USR :Distributor/Urban Sales Representative TE :Therapy ExecutiveTAM :Therapy Area Manager RESM/ZESM:Regional/Zonal Expert Sales Manager
Sales Force Management-Motivating Field force & Tracking Performance• Monthly Rewards & Recognition program • Incentive schemes like Family trips ,Cash awards etc• Creating Visibility for the sales exectives by displaying their names
with photos in the company portal ,Regional Offices (Wall of Fame)• Tracking Executives Key account performance and tracking their visits
to the Key accounts ( Yield from Key Accounts)
Distribution Management-Go To Market ModelMANUFACTURER
Direct Stores
Cash & Carry
Wholesaler
Distributor
Retailer
CONSUMER
C&FA
Distribution For Junior Horlicks• Any manufacturer needs middlemen for reaching his products to the consumers
Types of middlemen• Direct Stores (Eq: National Chain stores like Reliance, More, Etc)• Cash & Carry Stores (Eq: METRO, Walmart, Etc)• Distributors
Working Model of Middlemen:
• They have their own working model to reach the consumers
• They work for commission as a percentage of the overall turnover / business.
• They are usually contracted middlemen for the manufactures who work on a fixed margin / commission.
• Most important middlemen in India for any manufacturer is a distributor.
Distributor Role –Junior Horlicks• Works as a middlemen between the Manufacturer and the dealer (retailer) for reaching the products
to the consumer
• A distributor has a fixed commission / margin as a percentage to his turnover / business.
• Works in a defined area to a fixed set of stores at a defined frequency.
Distributor InfraSturcture Need:• Sufficient Godown space to hold the manufacturer stocks• Godown staff for loading and unloading the stocks• Salesmen for order booking in the market• Office with computer , internet and other office infra• Delivery units, Drivers, Delivery boys to supplying the orders to the market
• Billing Process:
Salesman Visits
Stores on a defined Frequency
Books Orders
Sends orders to the Dist
Office via online
(IPAD ) or through
calls
Orders get
processed in Office
Invoices run to the Godown
Packaging process done in Godown
Loading done from Godown
Delivery Units
carry the stocks to
the stores
Payment on
delivery /Receipt
signed by the stores
person
Distributor – Investment• A distributor has to bring sufficient funds into the business to run the business smoothly.
• Distributor’s investment :• Stocks holding• Credit in the Market• Claims form the company
• Certain manufacturers offer credit to the distributor in that situation the investment of a distributor is Stocks+ Credit+ Claims- Credit from the company.
• The distributor operates with a fixed margin from the company, he has to meet the operational expenses/ redistribution expenses with in the gross margin that he earns.
• The profit earned after the expenses is called net profit.
• Net profit earned and calculated as a percentage of investment in the business is called Return On Investment (ROI).
ROI• ROI is the most important driver for any distribution.• Annualized ROI = ((Turnover x % of Margin – Expenses)/Investment) X 12 X 100.
• Investment = Stocks + Credit + Claims – Credit from Company
• Expenses is the summation of salaries of staff, godown rent, Discounts to market, Fuel expenses, Insurance cost, Delivery vehicle maintenance cost, electricity expenses, Telephone expenses, internet expenses and anyother miscellaneous expenses incurred during the operations.
• Margin from the company is fixed which is typically around 5%-6% for an FMCG distributor.
• A healthy ROI for a typical FMGC distributor ranges anywhere between 24% to 36%.
• Management on ROI depends a lot how the distributor is running the business in terms of optimizing the recourses, cutting unwanted expenses and running the business with optimum investment.
Distributor Management• Manufacturers invest their resources for managing and developing the distributors in order to ensure
market gets adequate service and grow the business.
• One of the important investment that a company does in distributor development is enabling the salesmen through sales training in order to develop their selling skills. Most of the training to the salesmen is done On the Job by the company representative.
• Companies also invest in salesmen by giving product detailers, samples and IT related equipment which enables the salesmen to build his capability and execute his selling skills in the market place.
• Companies also incentivize the salesmen on a frequent basis to keep them motivated.
• Companies also invest in enabling the distributor to carryout his operations smoothly.
• Few such enablers are software to carry out market invoicing and other operations, usage of IT for smooth and fast claim processing, periodic meeting for aligning to common goals and few monetary incentives for motivation.
Trade Management• Managing the trade is one of the most important part of distribution management.
• Trade management / Trade market is dedicated sub function in most of the FMCG companies under their Sales Function.
• Trade Marketing usually deals with understanding the difference channels of distribution and defining deals for ensuring optimum stock levels and assortment at stores.
• Trade Marketing uses 3P (Promotion, Product assortment and POS) to drive the width and depth of the products into the trade.
• Two key types of promotions are Trade promotions and Consumer promotions that are run by the companies to drive business in trade.
• Point of Sale (POS) material are designed and used to get Visibilities for the product in the trade this helps in driving off takes from the stores.
MODULE-2 Project Presentation
Brand Resonance Model
Social Media-Junior Horlicks FB Page
Social Media-Moms Know Best Campaign
• Junior Horlicks uses the FB Page effectively to engage Mothers by providing parenting tips
• Junior Horlicks FB Page gives tips about the dietary requirements ,Vitamin and Mineral requirements .
FB Posts -Parenting Tips for Moms
FB Posts -Parenting Tips for Moms
FB Posts -Parenting Tips for Moms
Consumer Reviews-Zoot Review
Consumer Candid Reviews-Mouth Shut.com
Product Life Cycle
• Junior Horlicks is in the maturity state of the Product Life cycle
• The HFD market is more consolidated with few major players & private lables with intensive competition for the share of market.
• Should spend on Market research and R&D for consumer insights & continuos product innovation as there are couple of insights like focussing the product on Immune building properties is yet to be uncovered.
Product Life cycle
Marketing strategies for Maturity Stage
Product Strategy
GSK’s main strategy is to maintain & protect the market share and profit maximization by introducing new product variants & extensions which the brand is already doing. Junior Horlicks which was introduced in 1994 was one of GSK’s endeavours to revive Horlicks as a mother brand and parellely establish a concept for Toddler and Pre schooler HFD.
Product Life cycle
Marketing strategies for Maturity Stage
Pricing Strategy
• Since both the market and the brand is at the matured stage of the PLC, Junior Horlicks is rightly adopting Neutral pricing strategy (with the prices just below competitor’s pricing)
Product Life cycle
Marketing strategies for Maturity Stage
Promotion Strategy• JH uses advertising consistently for Brand Recall / Recognition and
sales promotion activities.• We suggest to position the brand as an Immune Building product in
the communications so that the brand can capture more market share.
Product Life cycle
Marketing strategies for Maturity Stage
Distribution Strategy• JH is available across stores so that the consumers do not switch to
other brands due to non-availability of the product. • JH has ensured distribution in both rural and urban ,semi urban
markets with its different SKU’s meant for these markets like Lower Unit packs for a complete rural market and with a higher penetration of 200gms packs .Urban ,Semi urban markets has a higher penetration of 500 gms pack.
Product Life cycle stage
• Brand Revitalization
• Based on the consumer research, the re-staging of the brand happens in every two years to ensure that the brand is revived
• New Flavours like Kesar Badam are also introduced to revive the brand .
• Change in the packaging with little bit of tweaks in the colour as well.
Junior Horlicks – Product classification• Junior Horlicks fall under Fast Moving Consumer Health Care Product.
• It is an end consumer & non-durable product with a specialty need for Children (between 2 to 6 years) in Health Food Category.
Junior Horlicks – Product Levels
• Core benefit – Health food drink for fussy eating children
• Basic product – Tasty & Nutritious health food drink for children
• Expected product – Vitamins & Minerals for Brain development & Immune boosting nutrients with flavors.
• Augmented product / Potential product – Not under the company’s focus at present.
Junior Horlicks – Product Differentiation• FORM –How Junior Horlicks is Differentiated in terms of the product packaging
(Size ,Shape ,Colour and the physical structure)
• FEATURES – How Junior Horlicks is differentiated in offering features which is more relevant for consumers and different from competitors.
• PERFORMANCE QUALITY – The performance quality of Junior Horlicks is at the higher level except the miscibility of the product. Parents who do not know how to mix Junior Horlicks sometimes complain of their children getting cold.
• The product has all the relevant and necessary vitamins and minerals for Brain Development, Growth, Eyesight & Immunity.
Junior Horlicks – Product Differentiation• CONFORMANCE QUALITY – The product has also have high
conformance quality and all product units are identical and meet promised features.
Junior Horlicks – Packaging
1) Brand identification(Unique colour ,Imagery ,Size and Shape )2) Aid product consumption3) Descriptive and persuasive information about the product4) Assist in product storage and protection
Junior Horlicks –Among Line Extn’s• Despite the influx of some of the line extn brands in Horlicks ,Junior
Horlicks still contributes 43% among the line extn’s
Packaging ,Pricing & Promotion
• Junior Horlicks is currently restaged and made in to a new packing in the interest of the consumers, based on the consumer survey
• The new packing comes with the image of a Jumbo elephant in blue ,orange mixed colour to attract all the kids
• The size of the container is also broadened by reducing the height of the container in order to catch the consumer’s eyes
• It Comes with the offers like Free Rocket sipper ,Water bottles to Kids and also to attract the parents .(Part of promotional activity)
Consumer Friendly Packaging
Thank You