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DELHI PRIVATE SCHOOL SHARJAH

DEPARTMENT OF COMMERCE

MARKETING MANAGEMENT

CERTIFICATE OF MERIT

This is to certify that the work in this file is the bonafide work of

Pavan Vachhani of Class: XII, Division: J, Roll No: 16, who has

carried out necessary practical work for the Senior Secondary

School Examination, AISSCE of CBSE under my supervision for

the academic year 2012-2013.


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ACKNOWLEDGEMENTS

I would like to express my gratitude to all those who

gave me the possibility to complete this project.

First off I would like to thank my teacher and mentor

without whom none of this would be possible

Mr.Prashant Vasudev I have further more to thankmy aunt Mrs.Ridhima and my Mother Mrs.Poonam

who encouraged me to go ahead with my project.

I am bound to my uncle for this stimulating report. I

am deeply indebted to my cousin _Srijan_ whose

help, suggestions and encouragement helped in all

the research and writing of this project.

I would like to thank them all for their help,support

and interest and valuable hints.


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What is Product Life Cycle?

Product life-cycle management (or PLCM) is the succession of strategies

used by business management as a product goes through its life-cycle.

The conditions in which a product is sold (advertising, saturation) changes

over time and must be managed as it moves through its succession of

stages.

Product life-cycle (PLC) Like human beings, products also have an arc.

From birth to death, human beings pass through various stages e.g. birth,growth, maturity, decline and death. A similar life-cycle is seen in the case

of products. The product life cycle goes through multiple phases, involves

many professional disciplines, and requires many skills, tools and

processes. Product life cycle (PLC) has to do with the life of a product in

the market with respect to business/commercial costs and sales measures.

To say that a product has a life cycle

is to assert three things:

Products have a limited life,

Product sales pass through distinct stages, each posing different

challenges, opportunities, and problems to the seller,

Products require different marketing, financing, manufacturing,

purchasing, and human resource strategies in each life cycle stage.


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The four main stages of a products life

cycle and the accompanying

characteristics are:

Stage Characteristics

1. Market

introduction

stage

1.costs are very high

2.slow sales volumes to start

3.little or no competition

4.demand has to be created

5.customers have to be prompted to

try the product

6.makes no money at this stage

2. Growth stage

1.costs reduced due to economies of

scale

2.sales volume increases

significantly


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3.profitability begins to rise

4.public awareness increases

5.competition begins to increase

with a few new players in

establishing market

6.increased competition leads to

price decreases

3. Maturity

stage

1.costs are lowered as a result of

production volumes increasing

and experience curve effects

2.sales volume peaks and market

saturation is reached

3.increase in competitors entering

the market

4.prices tend to drop due to the

proliferation of competingproducts

5.brand differentiation and


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feature diversification is

emphasized to maintain or

increase market share

6.Industrial profits go down

4. Saturation

and decline

stage

1.costs become counter-optimal

2.sales volume decline

3.prices, profitability diminish

4.profit becomes more a challenge

of production/distribution

efficiency than increased sales


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My Product


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About The Product

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

manufactured by GlaxoSmithKline in the United Kingdom, South Africa, New

Zealand, Bangladesh, India, Pakistan and Jamaica, and under licence in the

Philippines and Malaysia.

Manufacturing process

Unlike similar drinks, such as Ovaltine, Horlicks is not a dry blend ofmalt extract

and milkpowders.In the initial stage of manufacturing, milled malted barley and

wheat flour are mashed together in hot water where the starch is converted into

sugars. To this sugar solution dairy powders are added. The water content is then

evaporated off to form a syrup which is dried in vacuum band driers to form a

cake. This cake is milled into the finished powder. This is then fortified withvitamins and minerals.

Sleep promotion

Claims are often made by malted milk drinks such as Horlicks that they assist

sleep, but these claims have been difficult to verify. GlaxoSmithKline tells

inquiring customers, with a surprising degree of honesty: "While ... research

indicates that Horlicks drinks can help you to sleep better, the exact way in which

Horlicks works is not clear.Malted drinks may help to stave off hunger overnight,

which can lead to sounder sleep.

Advertising

Dan Dare Pilot of the future serial sponsored by Horlicks in 1952 and heard Monday to Friday at

7:15 PM over Luxembourg. In 1961, Horlicks ran a TV advertising campaign which featured

Scottish entertainer Billy Raymond and an actress. The theme of the advert was "Horlicks - the

food drink of the night. Horlicks was the sponsor of theLum and Abner Show from 1934-1937.
http://en.wikipedia.org/wiki/Malted_milkhttp://en.wikipedia.org/wiki/GlaxoSmithKlinehttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/South_Africahttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Jamaicahttp://en.wikipedia.org/wiki/Philippineshttp://en.wikipedia.org/wiki/Malaysiahttp://en.wikipedia.org/wiki/Ovaltinehttp://en.wikipedia.org/wiki/Malt_extracthttp://en.wikipedia.org/wiki/Milkhttp://en.wikipedia.org/wiki/Malted_barleyhttp://en.wikipedia.org/wiki/Wheat_flourhttp://en.wikipedia.org/wiki/Sugarshttp://en.wikipedia.org/wiki/Dairyhttp://en.wikipedia.org/wiki/Mill_(grinding)http://en.wikipedia.org/wiki/Vitaminshttp://en.wikipedia.org/wiki/Mineralshttp://en.wikipedia.org/wiki/Dan_Darehttp://en.wikipedia.org/wiki/Billy_Raymondhttp://en.wikipedia.org/wiki/Lum_and_Abnerhttp://en.wikipedia.org/wiki/Lum_and_Abnerhttp://en.wikipedia.org/wiki/Lum_and_Abnerhttp://en.wikipedia.org/wiki/Billy_Raymondhttp://en.wikipedia.org/wiki/Dan_Darehttp://en.wikipedia.org/wiki/Mineralshttp://en.wikipedia.org/wiki/Vitaminshttp://en.wikipedia.org/wiki/Mill_(grinding)http://en.wikipedia.org/wiki/Dairyhttp://en.wikipedia.org/wiki/Sugarshttp://en.wikipedia.org/wiki/Wheat_flourhttp://en.wikipedia.org/wiki/Malted_barleyhttp://en.wikipedia.org/wiki/Milkhttp://en.wikipedia.org/wiki/Malt_extracthttp://en.wikipedia.org/wiki/Ovaltinehttp://en.wikipedia.org/wiki/Malaysiahttp://en.wikipedia.org/wiki/Philippineshttp://en.wikipedia.org/wiki/Jamaicahttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/South_Africahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/GlaxoSmithKlinehttp://en.wikipedia.org/wiki/Malted_milk


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Around the world

Hong Kong

In Hong Kong, Horlicks is known better as a caf drink than as a sleeping aid. It is served at chachaan tengsas well as fast-food shops such as Caf de Coral and Maxim's Express. It can be

served hot or cold, and is usually sweetened with sugar. It is made with warm milk, and ice isadded to it if a cold drink is desired.

India

Horlicks came to India with British Army, end of World War I saw Indian soldiers of British

Indian Army bringing it back with them as a diet supplement. Punjab, Bengal and Madras

Presidencies became early adopters of Horlicks and lot of well-to-do Indians took to drinking

Horlicks as a family drink in early 1940s and 1950s. It became a sort of status symbol in upper

middle class Indians and rich classes. India, even today is by far, the biggest market for Horlicks,where it has traditionally been marketed as 'The Great Family Nourisher.' The Indian formulation

for Horlicks is slightly different than in most other countries, as there it is manufactured frombuffalo milk rather than cows milk due to cultural concerns.[4]New products have been

developed specifically for India, such as alternative flavours and special formulations for young

children and breast-feeding mothers. Claims by GlaxoSmithKline India in 2005 that Horlicksencourages growth and alertness in children have, however, caused some controversy.

Pakistan

In Pakistan, Horlicks is produced and marketed by GlaxoSmithKline. From Holiday 2013,

Horlicks Pakistan will sell foodles.

South East Asia

In some countries, such as the Philippines and Malaysia, Horlicks was also sold as milky-chocolate-flavoured discs in paper packets, which were then eaten as candy. Horlicks remains

popular in Malaysia and Singapore where it packed under licence from SmithKline Beecham and

sold in large glass and tin containers. It is also available in 1.5 kg refill packs. "Taller, strongerrsharper" is its slogan. From late May 2013, Horlicks Philippines will sell Foodles. Malaysia and

Singapore will do the same but from early June 2013.

United Kingdom

In the UK, Horlicks is available in Original (prepared with hot milk), Light (prepared with hot

water), Malt Chocolate (prepared with hot water) and Caramel dream (prepared with hot water).

GlaxoSmithKline attempted a rebrand of the product in 2004 for younger consumers byredesigning the packaging and publicising its consumption at a number of trendy London venues

such as the Groucho Club.
http://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Cha_chaan_tenghttp://en.wikipedia.org/wiki/Cha_chaan_tenghttp://en.wikipedia.org/wiki/Cha_chaan_tenghttp://en.wikipedia.org/wiki/Cha_chaan_tenghttp://en.wikipedia.org/wiki/Caf%C3%A9_de_Coralhttp://en.wikipedia.org/wiki/Maxim%27s_Cateringhttp://en.wikipedia.org/wiki/Horlicks#cite_note-Kitchen_Lore-3http://en.wikipedia.org/wiki/Horlicks#cite_note-Kitchen_Lore-3http://en.wikipedia.org/wiki/Horlicks#cite_note-Kitchen_Lore-3http://en.wikipedia.org/wiki/Philippineshttp://en.wikipedia.org/wiki/Malaysiahttp://en.wikipedia.org/wiki/Groucho_Clubhttp://en.wikipedia.org/wiki/Groucho_Clubhttp://en.wikipedia.org/wiki/Malaysiahttp://en.wikipedia.org/wiki/Philippineshttp://en.wikipedia.org/wiki/Horlicks#cite_note-Kitchen_Lore-3http://en.wikipedia.org/wiki/Maxim%27s_Cateringhttp://en.wikipedia.org/wiki/Caf%C3%A9_de_Coralhttp://en.wikipedia.org/wiki/Cha_chaan_tenghttp://en.wikipedia.org/wiki/Cha_chaan_tenghttp://en.wikipedia.org/wiki/Hong_Kong


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Product Life Cycle Of

HorlicksHorlicks is the market leader in the Rs 1300 crore health drink market in

India. The brands owns more than 50% market share. As discussed in the

one of my blogs, the success of the brand lies in its ability to change with

the changing consumer. The new strategy of the company is to extend the

brand into a family health drink brand with variants suiting every member

of the family i.e Parents and Kids. The brand initially was aimed at kids

aged around 6- 16 years and has been successful in establishing its present

there. The brand in 2005 extended itself to a new segment : adults with its

Horlicks Lite variant. The Lite boasts about Zero Cholestrol,Zero Added

sugar is clearly aimed at the Parents. The brand also came up with another

line extension Junior Horlicks aimed at pre-schoolers. Junior Horlicks

claims to have DHA which is Docosahexaenoic Acid which is an Omega-3

fatty acid which will boost the brain power.With these three variants,

Horlicks have covered all the life stages ( except infant) of a consumer.The latest campaign of Lite aims at the lady in the house and reminds her to

keep her husband active with Horlicks lite. The well made ad takes a cue

from the cooking oil advertisements of Saffola and Sundrop.

To promote the Junior Horlicks, the brand has come out with a Piggy Bank

shaped Horlicks Jar which is a consumer promotion scheme . Currently

Horlicks is running a Topical that is related to exams. The campaign says

that Horlicks can drive away the Exam GHOSTS..


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Various Stages The

Product Goes ThroughSTAGE 1: INTRODUCTION

It is also known as the pioneering stage. In this stage, competiton is almost non-

existent, prices are relatively high, markets are limited and least emphasis would

be on product innovation

STAGE 2: GROWTH

As the product grows in popularity, it moves into the second phase of the life

cycle. In this stage demand expands rapidly, prices fall, competition increases and

distribution is greatly divided

STAGE 3: MATURITY

The product enters maturity stage as competition intensifies further and market

gets stimulised. Profits come down because of stiff competition and market

expenditure rises.

STAGE 4: DECLINE

It is here that the story of a product ends. The sales dip sharply and the

expenditure on promotion has to be cut down. Profit margins are at an all time

low, competition becomes severe and customers start using newer and better

products.


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STAGE 1:INTRODUCTION

The strategy of the company is to extend the brand into a family healthdrink brand with variants suiting every member of the family i.e. Parentsand Kids. Therefore the different segments targeted and the strategiesused for this purpose are:

The brand initially was aimed at kids aged around 6- 16 years andhas been successful in establishing its present there.

The brand in 2005 extended itself to a new segment: adults with itsHorlicks Lite variant. The Lite boasts about Zero Cholestrol, Zero

Added sugar is clearly aimed at the Parents. The brand also came up with another line extension Junior Horlicks

aimed at pre-schoolers. Junior Horlicks claims to have DHA which isan Omega-3 fatty acid which will boost the brain power.

Women's Horlicks is India's first health drink designed specifically forwomen's nutritional needs. It targets the health conscious urbanworking women, in metros and mini-metros, leading hectic livesbalancing career and family.


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The name 'Horlicks' is entwined with memories of childhood - of getting up

in the mornings and gulping down a glass before running to school, or

coming back exhausted from a hard evening's play only to be rejuvenated

by it. Since its creation by the Horlicks brothers in 1873 (originally intended

as an artificial infant food), it has undergone numerous transformations.The main focus of horlicks is now on the new variant that is the women

horlicks and it has been incorporating different promotional strategies in

this regard. GSKCH is promoting the product both through traditional print

and TV media, and also by enlisting the support ofprofessionals in the medical field.

GSKCH also introduced a Doctor Engagement Program

wherein the company reaches out to physicians, dieticians andnutritionists to educate them about the product. Their corestrategy lies in grabbing the mind space of the consumers,rather than following the more traditional hard-sell route.

Inspite of all such activities women horlicks could not manageto succeed in the market and a survey had been conducted tofind out the reasons of failure. They survey found the followingreasons for the same. Price; the product is perceived to beexpensive by the customers surveyed. Packaging; one of the

most important facts discovered through the primary researchwas that when customers opened the container for the firsttime after purchase, they were disappointed with the amount(volume) of Women's Horlicks in the container. They feltcheated and swindled. Taste; Finally, the primary researchalso brought to light another revealing fact4. Women place anenormous amount of emphasis on taste even for healthproduct. Now, Women's Horlicks and regular Horlicks are fairlysimilar in taste; therefore, women do not perceive a difference

between the two products and hence do not find anyjustification to buy the more expensive product.

For catering to the rural segment they introduced anothervariant that is the Asha from Horlicks is priced at Rs 85 for a500-gram pouch pack way below the price tag of Rs 135 on aHorlicks pack of a similar size. There is also a 200-gram packthat will cost Rs 50.


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Horlicks has launched a fun and informative website for kidsand mothers. The web site, www.myhorlicks.com. The websiteis especially for kids aged 6-16 and mothers, providing aplatform for Horlicks to now communicate directly about thekids' requirements. It is user friendly and has easy navigationoptions and up loads quickly even on a Dial-Up connection.The website contains curiosities such as a Horlicks Corner,Fun Corner, Games and Downloads and a dedicated Mum'sCorner. The Horlicks Corner provides information about thehistory of Horlicks and about Horlicks today. The Fun Cornershow cases current promotions and greeting cards for friendsand loved ones.

One of such promotions is the 'Exam Campaign' which givesaway a useful and attractive exam board with every 400g packof Horlicks.

Different variants of flavors and packages, including JuniorHorlicks1-2-3 which is specially designed for pre-schoolchildren and comes in an innovative elephant jar and theHorlicks Biscuits which has Calcium of three glasses of milk

The latest campaign of Lite aims at the lady in the house andreminds her to keep her husband active with Horlicks lite.

Horlicks to offer free magazines. Horlicks has tied up with IPCmagazines in partnership campaign aiming to encouragepeople to drink the product earlier in the evening.

A commercial is a logical extension of the Epang OpangJapang campaign which highlighted the benefits of the brandand helped the brand to differentiate strongly from thecompetition. The brand also takes the medical platform bylabeling the product as "Clinically Proven ". Horlicks hadconvincingly told the customers that the brand can help thekids become stronger taller and sharper.


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STAGE II:GROWTH

In this stage the company the demand of the product and its popularity go

sky high .GlaxoSmithKline Plc (GSK)s best-seller in India isnt a treatment

for asthma or cancer. Its a malted milk drink called Horlicks.The brand is

Indias top packaged beverage behind bottled water and sells more than

twice as much as PepsiCo Inc.s namesake cola. Glaxo, the U.K.s biggest

drugmaker, is seekingto replicate that success in other emerging markets as

it sheds over-the-counter medicine brands sold mostly in the U.S.We are

trying to take Horlicks into a mega-brand strategy, Zubair Ahmed, who

heads GlaxoSmithKline Consumer Healthcare Ltd. (SKB) in India, said in

an interview.

So far, that has meant capitalizing on the brands nutritional image to

extend the Horlicks name to instantFoodles noodles,breakfast cereals

and biscuits. In coming years, Glaxo plans to introduce ready-to-drink

versions of the powdered beverage and healthy snacks, Ahmed said.

The marketing of Horlicks is part of a broader push by Glaxo into consumerproducts in India and China at a time when the European debt crisis is

placing downward pressure on prices.

While they have lower margins, consumer products provide steady, low-

risk revenue growth without patent expirations, said Rajesh Varma, who

helps manage 5 billion euros ($6.5 billion) at DNCA Finance SA in Paris

Consumer health care is a great additional reason to buy Glaxo, said

Varma, who is considering purchasing the companys shares. Youve got

revenue growth that is stable that wont fall off a cliff.

Horlicks, along with Sensodyne toothpaste and Eno antacid, helped push

up Indian sales of Glaxos non-pharmaceutical products 19 percent last year

with operating profit growing just as fast, Ahmed said. That compares with
http://www.bloomberg.com/quote/GSK:LNhttp://www.bloomberg.com/quote/GSK:LNhttp://www.bloomberg.com/quote/GSK:LNhttp://topics.bloomberg.com/india/http://topics.bloomberg.com/emerging-markets/http://www.bloomberg.com/quote/SKB:INhttp://topics.bloomberg.com/breakfast-cereals/http://topics.bloomberg.com/breakfast-cereals/http://topics.bloomberg.com/breakfast-cereals/http://www.bloomberg.com/quote/SKB:INhttp://topics.bloomberg.com/emerging-markets/http://topics.bloomberg.com/india/http://www.bloomberg.com/quote/GSK:LN


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1 percent sales growth for the division in the U.S. in the nine months

through September and a 1 percent drop in Europe.

London-based Glaxo plans to expand distribution of its consumer products

to 50,000 rural Indian villages over four years and spend as much as 40million pounds ($62 million) to boost production capacity at its three

plants in the country, Ahmed said. The company is also seeking wider

distribution of its Lucozade sports drink in China through a local

partnership.

Glaxos consumer health sales in India totaled about 350 million pounds, or

9 percent of global sales for the division in the nine months through

September. Worldwide sales including pharmaceuticals totaled 20.4 billionpounds in the period.

As they say the reputation goes sky high and the profit margins are

maximized at this stage
http://www.bloomberg.com/quote/GSK:LNhttp://topics.bloomberg.com/china/http://topics.bloomberg.com/china/http://www.bloomberg.com/quote/GSK:LN


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STAGE III:MATURITY

Horlicks is amongst the most well-known brands around in India, with a verylarge market share in the HFD (Health Food Drinks) segment. It has many variants

operational here: Womens, Juniors, Lite, and even Chill Dood.

But in recent times, the parent company, GSK has launched multiple line and

brand extensions to this brand ranging from Nutribars, Foodles, Biscuits and what

not.

I believe that this expansion into a spread of products is not helping. It does not

particularly affect Horlicks HFD, since it already enjoys a pretty good recall withthe customers. My opinion is that it is not helping with the other products either.

This kind of endorsement does not push a consumer to buy, say a Nutribar because

it is a Horlicks product. Worse still, with some of the products not doing so well, it

hits the Horlicks brand image.

Another factor about association of products with the brand name Horlicks: Lets

understand that Horlicks has brand connotations such as healthy, nutritious as

well as boringly healthy. It associates with childhood, I agree, but not to the fun

aspect of childhood. Horlicks does not really remind people of good old childhood

days (unlike products like Gems or Frooti). One reason for this is that Horlicks isnot the kids choice, it is the parents choice. A kid would ask for a Gems, but itwould be a parent who would insist on buying the pack of Horlicks (a daily glass

of milk is still a chore, even if it is glamorised by a lot of HFDs)

So, while the quality of the product is never at question, the associations are.

Next, one thing which seems to have been forgotten by the R&D department of

GSK is that while there is a paradigm shift to healthy foods by customers, the

Indian Consumer does not look for health at the cost of taste. A prime example ofthe same is that Maggis own Vegetable and Atta Noodles variants have failedinspite of being healthy because they compromised on the taste. Similarly, the new

Horlicks products are too strongly positioned on Health and not on taste (Maggi on

the other hand has a taste bhi, health bhi campaign)


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Horlicks has also tried to do a binding act with a campaign indicating its status as

the umbrella brand of being the great family nourisher, but frankly, I am not tooimpressed by it.

This stage is a challenge for the companies as in this stage their brands

start getting older. Other brands start becoming stronger. In-order to avoid

all of the harsh consequences the company should start innovating newer

products or the company can get trampled by the other growing

companies.


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For the maturity stage of Horlicks the brand

ambassador gets chosen

Nutritional product manufacturer GlaxoSmithKline Consumer Healthcare(GSKCH) Ltd on Friday roped in Tare Zameen Parfame child actor,

Darsheel Safari, as its brand ambassador for its healthdrink Horlicks.

The company is looking to ride on the popularity of the child artist, who

captured the imagination of many with his superlative performance in the

Aamir Khan-directed film.

GSKCH, however, is tight-lipped as to how much the company could cashin on the popularity of its new brand ambassador.

GlaxoSmithKline Consumer Healthcare General Manager Sumeet Saluja

declined to comment on any query related to the brand building exercise

and the expected growth of Horlicks.

He, however, said due to rising commodity prices the company has

increased prices of its products by four per cent in January, Saluja said.

"Yes, commodity prices are rising. We are managing the price impact right

now. But, I cannot say about the future whether we will further increase the

prices or not," he added.

GSKCH is an associate of the UK-based GlaxoSmithKline Plc and has

manufacturing plants in Nabha, Rajahmundry and Sonepat with a

workforce of about 2,700 people. It also manufactures and markets other

drinks like Boost, Viva and Maltova.


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SWOT ANALYSIS


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CONCLUSION

To conclude my project I would like to touch upon the fact thathorlicks is a very powerful product that is capable for staying inthe market for a durable amount of time even with the rise of

different competitors I feel as though it can withstand theunforgiving market place. All in all I would like to end my finalwords by saying horlicks will stay in the minds of many and

continue to nurture the next of kin.


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http://www.wikipedia.org/http://www.scribd.net/http://www.google.com/


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