Product Life Cycle Of HORLICKS

Presented to –

Mr.Prashant Vasudev Presented By-Pavan Vachhani Grade XII-J

Sleep well……. Eat well

MY PRODUCT

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

The Stages Of Product Life Cycle

STAGE 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: MATURITYThe 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: DECLINEDIt 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.

Some Interesting Facts

• All Horlicks sold in India = 6 times length of Great wall of China

• Sixth most-trusted brand in India• Total Horlicks sold in a year weighs as much

as 325 blue whales• In India, over 2 billion cups of Horlicks are

drunk every year

Brand Evolution• Initially imported from Britain.• It came as a solution to Indian

market as a health drink.

Brand Identity

Brand identity of Horlicks will be clearly defined once the following questions are answered:

What is Horlicks’ particular vision and aim?

What makes it different? What need is the brand fulfilling?What are the signs which make the brand

recognizable?

Positioning Horlicks

For what benefit? For whom? For what Reason? Against whom?

Brand Extension

Product line extension without sub-brand

Extension with sub-brand.Expansion through takeovers and

mergers

Reasons for successful brand extension

• Fit between parent brand and brand extension.

• Retailer experience.

Product life cycle

HISTORYHorlicks was founded by two British brothers, William and James Horlick. Both brothers emigrated to America and in 1873 the company J&W Horlicks was founded in Chicago. Horlicks was first used to improve the nutrition of infants and the unwell. Once its nourishing qualities had been realised, the drink then became part of armed forces' kit bags during World War II serving all three forces. Horlicks was also used extensively during the 1948 Olympic Games held in London! Supporting all the teams, it was available at every venue to give the athletes an extra energy boost.

Introduction stage:

Holicks a brand was established before 6 decades back in 1960.

It is owned by GlaxoSmithKline consumer health care.

It was heavily advertised as a kid’s nutritional drink It was a substitute of “Milk” as Baby Food It acquired more than 50% market share in India

milk beverage market. Initially Horlicks is claimed to promote sleep when

consumed at bedtime..

Growth Stage:

• Excels at delivering the benefits customers truly desired.

• Staying relevant.• Pricing strategy based on “value for

money”.• Proper positioning.• Consistency.• Creating entry barriers.

Maturity Stage:

• product quality• Price• By winning trust of consumer• By getting better labels than its

competitors • By getting a tagline such

as ,”taller,stronger,sharper” that stuck in the mind of the consumer for years and was easy to recollect.

Decline Stage

Horlicks has yet to go through the decline stage however with the coming improvement of other such nutritional drinks such as Bournvita , Milo , Complan , Acti-life……etc, it may very well be with in the reaches of the decline stage in the coming years.

Promotion

• Radio 1st preference

• Television 2nd preference

• News papers 3rd preference

• Internet 4th preference

• Magazines 5 th preference

Various Advertisements of Horlicks

• Something for everyone.• Packaging• Nourishing the brand• Adding Rural Reach• A fresh new image.• Integrated Media campaign

CONCLUSION

“Horlicks is not creating any needs just fulfilling

the needs of the consumer’s…….”

THANK YOU

Sleep well……. Eat well