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

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