villanova business dynamics spring marketing project final presentation
Post on 18-Aug-2015
38 Views
Preview:
TRANSCRIPT
Horlicks: The Original Malted Milk Drink
Patrick Shields, Keira Keane, Andrew Chen, Jack Trunz, & Priyanka Chodhari
What is Horlicks? ● Combination of buffalo milk, malted
barley, wheat● Nutritional food powder that is added
to additional liquids (hot milk/water)● Our US introductory products w/new
flavors (chocolate, vanilla, strawberry, etc.)o Horlicks powdero Horlicks pre-mixed cold drinko Horlicks pre-mixed athletic drink with added
protein
Key benefits? ● 23-26 vital nutrients → keep you 100% well-
nourished, WHO/FAO guidelines● Natural ingredients manufactured using a
unique process by breaking down carbs and proteins, making it easier to digest
● Helps height, weight, and brain development ● Fights cavities, lowers cholesterol, increases
circulation, and contains antioxidants● Can potentially cater to needs of adult lifestyle,
nutrition requirements, diabetics, childbearing mothers
Buffalo Milk > Cow Milk● Thicker, creamier, & sweeter● Less cholesterol and sodium● Additional 30 calories (marginal
difference)● More minerals (calcium, iron,
phosphorous)o Great for healthy bones, dental health,
cardiovascular health, weight gain● Higher amount of protein● Can be preserved for longer time
period
Target Market Segments● Mothers (28-40 yrs) & Young Children
(3-12 yrs) = approx. 60 million people● Elderly (65+ yrs) = approx. 62 million
people● Athletes or “health crazed” people (18-
30 yrs) = approx. 12 million people
Message/Positioning● Overall brand message: “pleasurable
nourishment”● Children and athletes: “taller,
stronger, sharper” (clinically proven) ● Elderly: “sleep well, eat well” (bedtime
drink)
Constantly Changing Look
Packaging (customized)
Advertising & Promotion● Objective: inform and persuade● Primary Medium: Television &
Magazineso Nickelodeon, NBC, ESPN, ABCo Men’s Fitness, Sports Illustrated, People
● Other Mediums: Billboard/Signs, Website, Social Media, Interactive, Word-of-Mouth
Advertising & Promotion (cont’d)● Promotional & Informational Website
o Horlicks’ products information (nutrition information, comparisons vs. competitors, manufacturing process, etc)
o Recipeso Tips about working out, studying, and leading
a healthy lifestyleo Live social feed o Section to send in questions, comments,
concerns, feedback
Advertising & Promotion (cont’d)● Social Media/Contests/Sweepstakes
o Facebook, Instagram, Twittero Example: Submit 6 boxtops to receive a free
sippy cup, blender bottle, or plush toyo Horlicks Fan of the Weeko Writing contest o Win a trip to a destination o Be the first to answer question of the week
correctly
Advertising & Promotion (cont’d)● Interactive PR & Word-of-Mouth
o Zoo animals in the classroom o Sponsor schools with Horlicks school
supplieso Horlicks kiosks in store fronts o Billy the Buffalo cutouts in storeso Work actively with charity o Host events in local communities to
encourage healthy and enjoyable family fun o Promote Horlicks and importance of health
and education in schools
Distribution
● Intensive distribution ● Channels of Distribution
o To supermarkets: manufacturer → wholesaler → retailer (supermarkets) → consumer
o To school cafeterias: manufacturer → broker → retailer (schools) → consumer
Industry● Health food industry
o 2011: $31 billion within USo Expected to grow 14% from 2013-2018
● Convenience stores are looking to shape up their image by offering better-for-you food, drink, and food service items
● Weight control and nutritional product sales have grown 146% in stores from 2008-2012
Industry (cont’d)● Nutritional and performance drinks
sales grew 48% from 2008-2013 → $12.3 billiono Nutritional drinks grew 38% → $3.2 billion,
forecasted to grow 62% → $5.2 billion o Protein drinks grew 233% → $2.1 billion,
forecasted to grow 90% → $4.1 billion● Consumer interest in
healthy/nutritious eating habits → boost sales sports, nutrional, and protein drink
Industry (cont’d)● 39% of consumers 18+ use nutritional drinks,
31% protein drinks● 16% of teens 12-17 use nutritional drinks● Supermarket sales for nutritional food and
drinks = $1.8 billion● Protein’s ability to build muscle, help weight
loss efforts, and provide benefits● Men/older consumers use as source of
protein/vitamin/minerals; women use as meal supplement/weight loss
Competition
Competition: Muscle Milk
● Nutrition Bars○ Chocolate○ Peanut Butter
● Ready-to-drink Bottle○ Rich Milk
Chocolate○ Classic French
Vanilla○ Creamy
Strawberry
● Powder Drink Mix○ Rich Milk Chocolate (& No Sugar
Added)○ Classic French Vanilla (& No Sugar
Added)○ Classic Chocolate Malt○ Dark Chocolate○ Strawberry Sensation○ Variety Pack (& No Sugar Added)
Competition: Carnation Breakfast
Horlicks Product Line
Pricing (competitive strategy)● Horlicks powder
o 12 oz. 340 gramso $9.95
● Horlicks pre-mixed athletic drink (+ protein)o 14 fl. oz. o $2.50 individuallyo $12.95/6-pack
● Horlicks pre-mixed drinko 6 fl. oz o $0.99 individuallyo $5.95/6-pack
Market Share/Sales ForecastsHorlicks pre-mixed athletic drink with added protein Market
Share
● United States is the largest consumer of protein shakes with just over ⅔ of the entire market share
● Global retail market for sports nutrition = $4.2 billiono 6.2 % of global market is devoted to protein drinks =
$260,400,000o United states protein drink market 63% of $260,400,000 =
$164,052,000 in total sales of US protein drinks (pre-made)
● 1st year with .5% market share = $820,260= 328,104 units● 2nd year with 1% market share = $1,640520= 656,208 units● 3rd year with 1.5% market share = $2,460,780= 984,312 units
Market Share/ Sales Forecasts
Horlicks powder Market Share
● Only one company other than Horlicks offers a milk powder that is fully organic (Northwoods Group LTD)
● Sales for non-organic powdered milk account for $89.1 million annuallyo With a product differentiation of buffalo milk that is fully
organic vs cow milk, an entry to market share could go above the initial .5 %
o With a breach of market share of 2% in the 1st year Sales of Horlicks powder could generate $1,872,000 in
the first year= 188,140 units 5th year results with a market share of 5% → results in
sales $4,455,000=447,738 units
Market Share● Hot Drink market shares
o Nesquik → 13.8%o Carnation → 9.8o Ovaltine → 8.8%
● With Horlicks currently representing 0.00% of market share in the United states, there is only one way to go: Up
● If we were able to reach the same percentage of market share that Horlicks represents in India (52%), sales of Horlicks would be able to generate up to $45 million annually
Why will Horlicks be successful? ● Unique health benefits● Growing health conscious attitude
o Last year, 61% of Americans have visited a natural foods store
o 2013 reported 51.3 million gym memberships
● Buffalo milk → new, experimentive● Care about customers, willing to go the
extra mile, adapt to customers’ needs● Attractive design
We need to make the move before someone else does!
top related