CASE STUDY ON

4 P’S OF

“HORLICKS”

ABOUT HORLICKS COMPANY

Horlicks is the name of a company and of a malted milk hot drink

developed by the founders James and William Horlick.

It is now manufactured by GlaxoSmithKline in the United Kingdom, South

Africa, New Zealand, Bangladesh, India, Pakistan and Jamaica, and under

licence in the Philippines and Malaysia.

In 1960, a factory was built in the state of Punjab, India following pressure

from local Government, heavy tariffs and diminishing import permits for

Horlicks.

MARKETING MIX: 4 P’S OF CADBURY

1. PRODUCT

Horlicks, which contributes Rs 600 crore in revenue to the consumer

healthcare division, it has Boost, Maltova and Viva – the last three are

much smaller brands than Horlicks. Horlicks is a nourishing malted food drink which combines the

wholesome goodness of malted barley, wheat and dairy ingredients For

more nourishment, Glaxo SmithKline Consumer Healthcare India Ltd

(GSKCH) has launched its flagship brand Horlicks. To enable consumers choose different flavours, Horlicks is now available

in Regular, Chocolate, Creamy Vanilla and Honey Buzz varieties in a

new package. Horlicks drinks provide the following essential nutrients:Â Proteins,

Carbohydrate, Fat, Vitamin A, Niacin, Vitamin B1, VitaminB12, Vitamin

E, Vitamin B6, and Iron & Calcium

2. PRICE

In India, price matters the most it has always been the

deciding factor for many marketer’s fate in the market.

Horlicks has very convenient prices for all its products.

HORLICKS JUNIOR

Flavors Elaichi (Rs) Chocolate (Rs) Honey (Rs) Vanilla (Rs)

Weight(gm) Jar Refill Jar Refill Jar Jar Jar Refill

200 57 - 57 - - - 58 -

500 108 103 108 103 108 108 114 105

1000 199 189 - - - - - -

3. PLACE

Cadbury dairy milk is produced at the chocolate factory in Bourneville in

Birmingham.

It has a strong marketing network in India comprising over 1800

wholesalers and direct coverage of over 4,00,000 retail outlets. Horlicks sales have been strong in the south and eastern markets which

contributes about 46 per cent and 47 per cent of the total sales. Milk-deficient South and East preferred white liquid powders (Horlicks,

Viva, and Complan) as the drink could be prepared with hot water.

4. PROMOTION

Promotion of Horlicks to various target audiences is a vital part of the

management function.

Television

The print media

Posters

Internet

Hoardings

The company has earmarked around Rs 10 crores for brand promotion

throughout 2003, and 70% of this will be spent in next six months Unlike its other drink (the Rs 170-crore Boost, promoted by Sachin

Tendulkar); the new Horlicks does not have a brand ambassador.

While all the action will be in the general Horlicks segment, the focus of

Junior Horlicks (target segment: kids between one and three) will continue

to remain the same

CONCLUSION

No matter the reason or the season, Horlicks focus on giving their

customer the best product from their side.