The Modern Communication Efforts of Horlicks - Essay Example

?Business Planning and Development Table of Contents Business Planning and Development Table of Contents 2 Introduction 3 A PEST Analysis to Discuss the Effect of Recent Events on the Modern Communication Efforts of Horlicks 4 Political Environment 4 Economic Environment 5 Social Environment Factors 5 Technological Environment 6 6 Evaluation 6 Conclusion 7 References 9 Appendix 11 Introduction Over the years, brand planning and development has transcended as a strategic component for the marketers to draw the attention of target market consumers. From paying a visit to ‘The Museum of Brands’, a renowned brand named ‘Horlicks’ has been selected for evaluation in order to take a position and make a case in terms of whether PEST factors are creating an influence in the way the product is marketed to the public. Horlicks is regarded as one of the leading health food drinks all over the world. Brothers namely James and William Horlick of England were the co-inventor of Horlicks. In the year 1873, James and William had established a business to manufacture their own brand of infant food. After 10 years, both the brothers gained patent for their company as a dried milk. From the year 1887, the company marketed its offerings by the name of “malted milk”. Malted milk had become very popular at that time because it was mixed up with ice cream. Horlicks contains a massive range of vitamins and minerals. It keeps nervous systems healthy. It gives energy to people. Horlicks was the first launched product that is used to increase the nutrition of infants. Horlicks was used in London as hot protein drink when the Olympic Games were held in the year 1948. At that time, Horlicks was very popular because it provided required energy to the players. Consequently, it is comprehended that since the era of World War II, Horlicks has been marketed as an energy boosting health drink to facilitate its reach amid a wider section of target audience from infants to sports persons. At present, GlaxoSmithKline is the manufacturer of Horlicks in the regions such as the United Kingdom, India, Bangladesh and South Africa among others (Horlicks, 2011). A PEST Analysis to Discuss the Effect of Recent Events on the Modern Communication Efforts of Horlicks It can be apparently stated that the political, economic, social and technological factors significantly affect the marketing communication activities performed by a company. Any kind of changes in events can cause major strategic changes for a brand to market its product. A brand might require altering its pricing and promotional strategies in keeping with changes in economic condition of a nation. Similarly, in case of Horlicks as well these factors have had a considerable influence. Political Environment Political influence can originate for a product from diverse sources which in turn can affect a brand’s marketing and operational strategies. In relation to Horlicks, it is determined that political factors such as government polices related to food safety can create a significant impact on it progression (Jordan, 1998). In this regard, it is observed that the advertising standards authority (ASA) in the United Kingdom had in recent times objected the commercial tagline used by Horlicks i.e. “Taller, Stronger, Sharper”. Horlicks has used this tagline in countries such as India as well to provide a commercial direction to its offerings. In addition, Horlicks has utilised the aspect of exam fear prevailing amid children to create a niche market for it’s a majority of variety of products. However, such an approach is viewed as an attempt to cash in on the target consumers fear, insecurity and anxiety (Shukla, 2012). Thus, governing authority in countries such as the UK have clamped down on this kind of promotional endeavour, which in turn can influence Horlicks’s marketing communication efforts. Economic Environment The UK economy has changed from the year 1970. Since that period, there has been a steady rise in the level of Gross Domestic Product (GDP), which has influenced the standard of living. In recent scenario, average income among the people of the UK is more stable than a number of other countries and the people of the UK are leading a very sophisticated lifestyle. Thus, for a brand such as Horlicks it provides invaluable opportunity to expand their market and bring out new product offerings as per the changing demands (Elsevier, 2011). Social Environment Factors There are various products that Horlicks offers for the all age groups of people in the society. Horlicks contains 12 vitamins and minerals. Among them, Junior Horlicks is a product especially made for children. For the teenager section in the society, Horlicks uses a tagline of “Taller Stronger Sharper” which highlights that teenagers can become physically developed through sustained use of Horlicks. In addition, Mother’s Horlicks is especially designed for the mothers. Horlicks is regarded as a mega brand. Mega brands are called those brands which have their presence across various product lines and categories. With the use of varied marketing communication modes to target different sections of the society, Horlicks has been a significantly successful mega brand. The market share of Horlicks was 52% in the health drink category in the year 2011 (Horlicks, 2011). Any societal Change creates a great impact to any market. It is the key driver of any market. The marketers can divide the market on the basis of the age group. Marketers have to understand the nature and significance of social trends. Health consciousness has been a key aspect in the UK, thus Horlicks can leverage this aspect through its assorted offerings (National Osteoporosis Society, 2011). Technological Environment Technological environment signifies the development of technology which can affect the business directly. The UK is a developed country on the technological point of view so the company i.e. Horlicks has been using the technological medium over the years by a considerable extent for the purpose of marketing communication. The technology based communication media such as social media and television have been a major source of gaining visibility for Horlicks (Haymarket Media Ltd., 2013). Evaluation From the evaluation of PEST factors, it is derived that although Horlicks as a company commenced its operations from the year 1873 but it became popular after the period of World War II as an energy boosting product for athletes. In the year 1945, company acquired most of the markets as an energy boosting hot drink on a worldwide basis. In the year 1968, a Horlicks factory was established in Bangladesh as well as Pakistan to fulfil the local requirement of the customers regarding hot energy drink. Horlicks was initially developed to substitute milk in terms of baby food but now Horlicks can be consumed by different age groups of people. In the year 1992, Horlicks had launched Horlicks biscuit with low cost. Better quality with low price products always increases a number of customers. Horlicks has used different marking communication media to attract consumers about their altering set of offerings. In addition, Horlicks has focused on socio-economic conditions as well prior to launching a new offering. The social demand for health drink products for mothers and women have been met by Horlicks in recent years (GlaxoSmithKline Consumer Healthcare Ltd, 2011). According to the changing demographics, it has targeted the teenager section of the society as well. However, in certain nations such as the UK the approach of marketing communication has been criticised by regulatory authorities by a considerable extent (Slide Share, 2013). Horlicks has also used technologically updated features in its marketing communication approach to draw its target consumers as well. Conclusion Horlicks has been a leading name in the field of energy boosting health drink for over 100 years. In its journey, it has faced different challenges emanating from varied socio-economic, political and technological reasons. The impact of demographic and social demands have had a major influence on the products beings launched by Horlicks. However, it can be said that in a majority of instances Horlicks has been triumphant to deal with a number of obstacles. This has facilitated the company to attain greater adulation and trust of consumers worldwide. References Elsevier, 2011. Global Environmental Change. Migration and Global Environmental Change. [Online] Available at: http://www.tyndall.ac.uk/sites/default/files/gec-editorial-blacketal.pdf [Accessed August 07, 2013] GlaxoSmithKline Consumer Healthcare Ltd, 2011. Mother’s Horlicks. Home. [Online] Available at: http://www.gsk-ch.in/motherhorlicks.aspx [Accessed August 07, 2013] Horlicks, 2011. Horlicks Traditional. Our Products. [Online] Available at: http://www.horlicks.co.uk/products/ [Accessed August 07, 2013] Haymarket Media Ltd., 2013. Horlicks Nutribic Nudges Workaholics To Match Passion With Nutrition, Unveils ‘Maximum’ Menon’s Story Online. Video. [Online] Available at: http://www.campaignindia.in/Video/352956,Horlicks+Nutribic+nudges+workaholics+to+match+passion+with+nutrition,+unveils+%E2%80%98maximum+Menons+story+online.aspx [Accessed August 07, 2013] Jordan, A., 1998. The Politics of A Multi-Level Environmental Governance System: European Union Environmental Policy At 25. The First Stirrings of Environmental Concern. [Online] Available at: http://www.prototype2010.cserge.webapp3.uea.ac.uk/sites/default/files/pa_1998_01.pdf [Accessed August 07, 2013] National Osteoporosis Society, 2011. Healthy Bones Facts about Food. What is Osteoporosis. [Online] Available at: http://www.nos.org.uk/Document.doc?id=395 [Accessed August 07, 2013]. Slide Share, 2013. Horlicks Brand Dossier. The Great Family Nourisher. [Online] Available at: http://www.slideshare.net/sharathghosh/horlicks-final [Accessed August 07, 2013] Shukla, A., 2012. Blocked In UK, Complan & Horlicks Feed On Kids’ Exam Fears Here. News. [Online] Available at: http://www.indianexpress.com/news/blocked-in-uk-complan---horlicks-feed-on-kids--exam-fears-here/924463/ [Accessed August 07, 2013]. Appendix Read More