Table of Contents

Sl. No. Title

1 Marketing of Consumer goods
2 Health Drink: A History
3 Brand History [Horlicks]
4 Features of the Brand
5 Facts about Horlicks
6 Flavours
7 Category Extension
8 Horlicks Stretches Out
9 Marketing Strategy
10 Brand Equity Analysis
11 Brand Awareness
12 Perceived Quality
13 Brand Elements
14 Share Value
15 Competitor Analysis
16 Conclusion
 17 Webliography
18 Bibliography

MARKETING OF CONSUMER GOODS

Durable goods:

A durable good or a hard good is a good which does not quickly wear out, or more
specifically, it yields services or utility over time rather than being completely used up
when used once. Most goods are therefore durable goods to a certain degree. These
are goods that can last for a relatively long time, such as refrigerators, cars, and DVD
players. Perfectly durable goods never wear out. An example of a durable good might
be a brick. As a counter-example, sticky tape is not very durable.

Examples of consumer durable goods include cars, appliances, business equipment,

electronic equipment, home furnishings and fixtures, houseware and accessories,
photographic equipment, recreational goods, sporting goods, toys and games.

Durable goods are typically characterized by long interpurchase times--the time

between two successive purchases.

Non-Durable goods:

Nondurable goods or soft goods (consumables) are the opposite of durable goods.
They may be defined either as goods that are used up when used once, or that have a
lifespan of less than 3 years.
Examples of nondurable goods include FMCGs such as cosmetics and cleaning
products, food, fuel, office supplies, packaging and containers, paper and paper
products, personal products, rubber, plastics, textiles, clothing and footwear.

Durable goods, nondurable goods and services together constitute the consumption of
an economy.

HEALTH DRINKS: A HISTORY

The HFD market is having two segments: White powder segment and brown segment. The
market is dominated by white powders

Ancient Chinese have long believed in the benefits of drinking natural health drinks to
improve one’s health disposition. Tea has been drunk for at least 4,000 years. While coffee
has been around for centuries. Both have immense benefits for health improvement.

Tea was first discovered in China in 2737 B.C. According to Chinese records, the emperor
would only drink water which is boiled to make sure that it is indeed clean. During a trip, a
servant boiled water and a dried leaf fell on the boiling water. It turned the water brown but
was still served to the emperor. The emperor drank the concoction and found it very
refreshing.

Coffee, on the other hand, has can be traced as early as the 9th century. Coffee was largely
cultivated in Ethiopia. Soon, the Arabs started trading it, bringing it to northern Africa where it
was mass-cultivated. After being popular in Africa, it started to enter Indian and European
Markets.

Europe and Asia pioneered energy drinks. In 1901, the first energy drink was released in
Scotland called Im-Bru. While in Japan, their energy drinks can be traced as early as 1960s.
Although they cite that there are already some attempts in mixing different minerals with water
before World War II they released Lipovitan in early 1960s. South Korea also produced “genki
drinks” which are also energy drinks.

In 1929, Lucozade Energy was used as a hospital drink in the United Kingdom. This drink was
primarily for helping the speedy recovery of hospital patients. In the 1980s, this drink was
commercially released as an energy drink meant to replace lost energy.
The worldwide leading energy drink, Red Bull, was created and marketed by an Austrian
entrepreneur. This leading energy drink was created in Europe. It was based on a Thai drink
called KratingDaeng, which is also based on Lipovitan. Red Bull entered the United States
market in 1997, and currently the dominant brand. It’s approximate market share is as big as
47 percent.

For sports drinks, the first one created was for the purpose of improving the performance of
athletes and sports star, was for the Florida Gators. That is why the first product, which was
released during 1960s, was called Gatorade. The main purpose of this drink is to provide to
lengthen the performance levels and aid hydration of athletes.

As early as 1985, the United States have started to introduce energy drinks. They had the Jolt
Cola. While in 1995, PepsiCo launched the Josta. This was the first energy drink made by a
leading United States beverage company.

Since then, energy drinks have started to gain fair market share and popularity. More and
more companies are taking advantage of such popularity and high demand. Most people who
consume energy drinks are within the range of 13 to 35 years old. Young adult and male
drinkers comprise 65 percent of the target market. Since 2001, the increase of the energy
drink market has been increasing by 50 percent every year. Since this market is relatively
new, with 20 years under its belt, there is still much hype about it.

More and more people seek out energy drinks and new developments. People are trying to be
heath conscious amidst all the pressure of a high and fast paced life. With the demand
increasing, there are unlimited possibilities. We are trying to discover ways in fitting all the
nutrients and more vitamins and minerals that we can have in just one gulp. Health can be just
in one drink after all.

BRAND HISTORY

Horlicks is the name of a company and of a malted milk hot drink, which is claimed to
promote sleep when consumed at bedtime. There is, however, no evidence that malted milk
directly promotes sleep, merely staves off hunger pangs that may disturb sleep. It is
manufactured by GlaxoSmithKline in the United Kingdom, India and Jamaica.

The biggest market for Horlicks is India, where it has traditionally been marketed as 'The
Great Family Nourishes.' New products have been developed specifically for India, such as
alternative flavors and special formulations for young children and breast-feeding mothers.
Claims by GlaxoSmithKline India in 2005 that Horlicks encourages growth and alertness in
children has, however, caused some controversy. Junior Horlicks 1-2-3 is a large extension
that is specially designed for pre-school children. Horlicks is also available in Biscuit forms. In
2005, Horlicks Lite was also introduced targeting older consumers and does not contain any
cholesterol or added sucrose. Inaddition, the company has introduced Cereal Bars under the
name Horlicks NutriBar exclusively for India.

In some countries, such as the Philippines and Malaysia, Horlicks was also sold as milky-
chocolate-flavoured disks in paper packets, which were then eaten as candy. Horlicks remains
popular in Malaysia and Singapore where it packed under license from SmithKline Beecham
and sold in large glass and tin containers. It is also available in 1.5 kg refill packs.

FEATURES OF THE BRAND

Horlicks which is the leading Health Drink brand of South India,

Main features of this brand is

“Taller, Stronger and Sharper”

Horlicks is the leading Health Food Drink in India and enjoys more than 50% share of the
Health Food Drink Market. (Source: A.C Neilson report on market shares)

Horlicks has been a popular brand in the country since the 1930’s. Today, the modern
Horlicks stands for trust and its promise of ‘Pleasurable Nourishment’ with a delicious range of
flavours including Chocolate, Vanilla and Honey.

Horlicks is the only health drink, clinically proven* in India, to make kids taller, stronger and
sharper.
A premier research institute of India conducted a 14 month research on Horlicks in a reputed
boarding school in Hyderabad. In the research, one group of children was given an ordinary
health food drink without the Horlicks micronutrients (or vitamins and minerals) while the other
group was given Horlicks. Many tests and 14 months later, it was concluded that the children
who consumed Horlicks showed significant improvements in height, muscle mass, bone
health and attention/concentration scores as compared to the children who consumed the
ordinary health food drink without the Horlicks micronutrients (or vitamins and minerals).
Horlicks is also available in a delicious chocolate flavor. When the temperatures soar and your
throat feels like the Thar Desert, chilled chocolate Horlicks is the tastiest way to beat the heat.
The nutrition of Horlicks packed with the lip-smacking chocolate flavor has won the hearts of
children and adults alike… so you hear them sing merrily ‘jaise bhi kaise bhi doodh le ao,
Chocolate Horlicks shake banao….'jaise bhi kaise bhi doodh le ao, Chocolate Horlicks shake
banao..jaise bhi kaise bhi!'’

Fun facts about Horlicks

Horlicks was first invented to substitute milk as baby food

The brand has been endorsed by Amitabh Bachchan on the radio(1960-

70), Moon Moon Sen and her daughters Raima and Riya (1980s) and
Vishwanathan Anand

Horlicks, in India, has tied up with popular kids movies like Ice Age II and Superman
Returns

In India, over 2 billion cups of Horlicks are drunk every year!

All Horlicks bottles sold in India in a year placed end to end would form a chain 6
times the length of the great wall of China

Total Horlicks sold in a year weighs as much as 325 blue whales!!

FLAVOURS

It is once again relaunch time for the Horlicks team at GlaxoSmithkline Consumer
Healthcare. This time it is coupled with the launch of three new flavours - Chocolate,
Vanilla and Honey.
The new ones as well as the existing product, Horlicks Regular, now come in a new
glass container. The chocolate flavour is not really new, as way back in 1991 the
company launched its Chocolate Horlicks.

It was only last year that GlaxoSmithkline Consumer Healthcare had positioned the
brand as an immunity enhancer. And early this year the company relaunched the
Junior Horlicks brand.

Says Sucheta Govil, marketing general manager, nutritional healthcare: "The brand
is now relaunched with the core essence of 'pleasurable nourishment' embodying
modernity, youthfulness, vibrancy and vigour."

Can the Horlicks team pull it off? It is a Rs 800-crore (the total sales of Horlicks in
India) question that is being asked about this product that is in production in the
country since 1960.

Brown scores over white

The health food drink segment is classified into two categories –

White liquid (Horlicks, Viva, Complan, Milo).

Brown liquid (chocolate based drinks: Boost, Bourvita).

For the white liquid, South and East India are a major market while the brown liquid
has its presence felt in North and West India.

The reason is simple. Milk-deficient South and East preferred white liquid powders
(Horlicks, Viva, Complan) as the drink could be prepared with hot water whereas the
milk-flush North and West preferred the chocolate drinks that taste good in milk.
Further, South in general is a coffee-drinking market and for the people products like
Horlicks are generally reserved for special guests/relatives and for the sick and
convalescing.

With no major competition Horlicks rules the roost in South and East. The skewed
consumption pattern of the 40,000 tons per annum (tpa) Horlicks reflects this aspect
as South and East account for 46 and 49 per cent, respectively, of the total demand.
But the situation is slowly changing. A combination of factors like increase in income
levels, improved milk availability and aggressive promotions saw sales of brown drinks
going up in South.

Horlicks, meanwhile, acquired the image of a drink for the sick and convalescing. The
image is so ingrained in the consumer minds that Horlicks is invariably presented to
people who fall sick by those who visit them.

"It is a substitute drink for guests when the filter-coffee decoction is not ready and
certainly a drink for the old and sick. My two daughters (one in twelfth standard and
the other doing an engineering course) never touch Horlicks," says Vasantha
Raghunathan, a middle-level executive in a company as to the reasons why she buys
Horlicks bimonthly.

And it is this brand belief - a walking-stick brand, which means a drink for the old, sick
and convalescing - that GlaxoSmithkline Consumer Healthcare team is trying to turn
upside down with its new positioning: a drink for youth; a pleasurable nourishment
drink.

The factors that led to the relaunch or repositioning are: the saturation of the Rs 900-
crore white drink market, availability of competing products with a different positioning
(health drinks, performance enhancers), the growing influence of the children (pester
power as marketing buffs puts it) in deciding the family's beverage choice, and large
number of households switching over to single beverage for reasons of economics.

As all the above are inter-linked for companies it is more important catching the young
than sticking to the old or dying generation.

Part of the reason for Horlicks' repositioning is the reported 5-per cent decline in sales
during January-March 2003 compared to the corresponding period in 2002. The
company which is used to increasing the product price twice a year has not done that
even once since January 2002, states a newsletter from a big retail chain.

According to officials, sales have been stagnating as the company was not able to
make major inroads in the northern and western markets. Now, for the Horlicks team
at GlaxoSmithkline Consumer Healthcare it is going to be an uphill task in
communicating the change to the consumers.

Says Anindya Dasgupta, marketing manager: "We are contemporarising the brand.
Traditionally Horlicks as a brand spoke to mothers and other adults. Our new
campaign is expected to convert many children (eight to 14 years) in favour of
Horlicks. The theme of our commercials is based on kids with a positive attitude. And
children in general like other kids with a positive attitude."

According to him between July and September 2003 Horlicks will be the most visible
food brand in South. Sixty-five per cent of the ad-spend (around Rs 10 crore) will be
for the visual medium and the balance for the print and others.
Apart from the high-decibel media campaign, the company also has conducted an
inter-school competition called Horlicks Wiz Kids Activity 2003 in many cities in which
around 1.5 million students has taken part. "We also plan to develop a new website
and make it the preferred site for the children."

Unlike its other drink (the Rs 170-crore Boost, promoted by Sachin Tendulkar), the
new Horlicks does not have a brand ambassador. "May be in the future," says
Dasgupta.

While all the action will be in the general Horlicks segment, the focus of Junior
Horlicks (target segment: kids between one and three) will continue to remain the
same. The brand will continue to talk to the mother since the purchase decision rests
with her.

CATEGORY EXTENSION

Horlicks extended its category such as

1.Horlicks Lite

2.Junior Horlicks

3.Mother’s Horlicks

HORLICKS LITE:

A nutritional drink specially formulated for all health conscious adults and is also
suitable for use by people with diabetes

Horlicks Lite health food drink was launched in the market in Sep ’05. This range of
products have been specially formulated keeping in mind nutritional needs of adults
and is also suitable for use by people with diabetes.
JUNIOR HORLICKS:

Specially formulated for preschool children'

Preschool children may be fussy in consuming food and may often refuse or waste
food that is nutritionally good for them. This may cause certain dietary gaps in the diet
of preschool children. New Junior Horlicks 1-2-3TM provides essential nutrition and
when taken as part of a healthy diet, helps complete A to Z nutrition for preschool kids.
It was launched in April ’06 with an all new formulation and exciting new packaging.
Presenting New Junior Horlicks 1-2-3TM with DHA for Brain Development: Just as
calcium is essential for bones, DHA in one of the most important brain nutrients and
is an essential building block of the brain cells. The average Indian diet may have low
amounts of DHA and absence of DHA in daily diet may impair intelligence. Maximum
brain development happens by the age of 5. It is therefore essential to supplement
your kid’s diet essential fatty acids like DHA.

This product is not an infant milk substitute or infant food for less than 2 years old.
Junior Horlicks 1-2-3TM is a nutritional supplement which as part of daily diet helps
meet your child’s nutritional requirements.

MOTHER’S HORLICKS
Mother's Horlicks, launched in 1997, is a superior nutritional supplement with 26 vital
nutrients that is scientifically designed keeping the nutritional needs of the pregnant
and breast feeding women in mind. An attempt to enhance nutritional superiority saw
the launch of its new variant in May 2004 - Mother's Horlicks fortified with DHA . This
unique formulation has an essential fatty acid called docosahexaenoic acid or DHA
from a vegetarian source. Numerous studies have suggested that DHA helps in brain
development of the child during pregnancy and the first few years of life. It is important
to note that in infants, breast milk is the only source of DHA.

In addition to DHA, Mother's Horlicks supplies the recommended quantity of ideal

quality proteins [with 100% amino acid score]. Mother's Horlicks, in three serves [6
scoops], provides 100% of the Recommended Dietary Allowance* [RDA] for iron,
folate, calcium, vitamins C, B2, B6 and B12 - nutrients that are essential for blood and
bone health. Mother's Horlicks is also rich in antioxidants [vitamins A, E, selenium,
zinc and copper] essential during pregnancy and lactation.

HORLICKS STRETCHES OUT

GlaxoSmithKline Consumer Healthcare is leveraging on Horlicks' brand equity to get

into new categories. Will the move pay off?

Walk in to any small eatery in the southern and eastern parts of the country and you
will find it hard to miss the bottle of Horlicks at the cash counter. Horlicks is not a
young brand — it has been around for decades. After imports were disallowed in
1955, Hindustan Milkfood Manufacturers started making the drink in the country in
1960 and now it’s owned by GlaxoSmithKline Consumer Healthcare. But there are no
evident signs of ageing. Horlicks’ market share of the Rs 2,305-crore milk beverages
market is above 50 per cent (source: The Nielsen Company). Rivals know beating
Horlicks in the market place is a tough act. Nestlé has stopped making Milo and new
entrant Dabur India has decided to stay clear of Horlicks and pitch its Chyawan Junior
against GSK Consumer Healthcare’s other beverage brand, Boost.

It would be foolish not to leverage the equity of such a brand. Thus, GSK Consumer
Healthcare has decided to use the brand to get into new categories. In the last few
months, it has launched biscuits for children, a nutrition drink for women, an energy
bar and chilled milk. More could follow in the days to come.
“Our business was doing well as was the economy. So both from our point of view as
also from the consumers’ perspective, it was a good time to shift gears,” says GSK
Consumer Healthcare Managing Director Zubair Ahmed. Ahmed believes the new
products will make a meaningful contribution to the company’s top line in the next few
years. “These categories are relevant and our research shows that consumers need
these products. We are not creating needs, we’re simply fulfilling them.”

Those who know Ahmed well will hardly be surprised by the fast pace of product
launches. As the chief executive of Gillette, his previous assignment, he tried to grow
the business rapidly with a slew of new shaving products. He left the grooming
products company two years ago after it was acquired by Procter & Gamble to run
GSK Consumer Healthcare.

Something for everyone

Ahmed is aware that new products do sometimes end up as casualties but he has
taken confidence from the strength of the Horlicks brand. “We’re riding the equity of
Horlicks and supplementing it with consumer insights,” says he. Horlicks may be the
country’s sixth most-trusted brand but GSK Consumer Healthcare is playing in a
market where consumers can be demanding. And rival brands are no rabbits:
Cadbury’s Bournvita and Heinz’s Complan each with a 15 per cent share.

So far though, GSK Consumer Healthcare has succeeded in segmenting the customer
base by catering for specific needs of women at the same time cashing in on the
increasing population of children with Horlicks. Ogilvy & Mather Country Head
(planning) Madhukar Sabnavis feels “the brand today talks to every member of the
family rather than the entire family.”

With Junior Horlicks, launched in 1995, GSK Consumer Healthcare had positioned a
product exclusively for children between the ages of two and five. That, Anand
Ramanathan, who advises companies in the FMCG space at consulting firm KPMG,
points out is a crucial segment given that India is a young country — a clever ploy to
engage consumers at a very young age. The Junior Horlicks brand has grown to
become an Rs 150-crore brand now, says GSK Consumer Healthcare head of
marketing Shubhajit Sen. Taking advantage, the company launched Junior Horlicks
biscuits last month. Again, five years ago, GSK Consumer Healthcare had reached
out to pregnant and lactating mothers with Mother’s Horlicks; last year it came up with
Women’s Horlicks catering for women across age groups.

“The idea is to address all age groups. There’s Horlicks Lite for the elderly who often
have a sugar problem and for the youth we have Horlicks Nutribar which we launched
in February 2008,” says Ahmed.

With Horlicks Nutribar, positioned on the twin planks of health and convenience, GSK
Consumer Healthcare have leveraged the brand to venture into an entirely new
product category — energy cereal bars. Says Ernst & Young Partner Ashish Nanda:
“When you’ve created a strong brand, it opens up doors to new variants and even new
categories. Unless you enter a completely unrelated area, there’s little risk in
extending the brand to other products.”

While the company hopes that Horlicks Nutribar will chip in with about Rs 100-150
crore of revenues in five years, it hasn’t stopped there. In April this year, it invited
consumers to taste its summer drink called Horlicks Chilled Doodh (milk), available
in four flavours. Sen concedes that the product will be up against some keen
competition in the Rs 45-crore chilled milk category from Amul Kool and strong
regional players like MAFCO in Mumbai, but he hopes the brand can pull in revenues
of Rs 50-100 crore in about five years — more than the current market size.

Of course, GSK Consumer Healthcare will promote other brands too — it does need
to hedge its risks, after all. Thus, in April, Glaxo ActiGrow, a protein supplement for
children, was unveiled. Ahmed explains that the company is cashing in on the brand
equity that Glaxo still has with mothers and will leverage that for specialist products
like ActiGrow. “We’re looking at new products across food and beverages, like healthy
snack foods because the opportunities aren’t taken care of simply by Horlicks,” says
Ahmed.

Full of beans

At the moment, Horlicks takes care of GSK Consumer Healthcare’s top line. The
brand, which was worth around Rs 800 crore in the early parts of the decade, is today
50 per cent bigger at close to Rs 1,200 core, bringing in the bulk of the company’s
annual turnover of Rs 1,580 crore.

If Indians drink more than five million cups of Horlicks everyday it’s because GSK
Consumer Healthcare has worked on the product. At one time, in the late 1990s,
market research showed that Horlicks was seen “as a nourishing, but boring drink”
and was beginning to lose significance. What’s more, consumers were beginning to
prefer flavours over nutrients.

So, in 2003, the brand was revamped: It was made tastier and launched in two new
flavours — vanilla and honey. The company had earlier launched a chocolate version
to try and win over consumers in the North and West who typically prefer chocolate-
flavoured drinks. But the success was limited. Nearly half of its sales are still
generated from the South, while 35 per cent come from East. But that doesn’t seem to
bother investment analysts. IDFC SSKI Managing Director Nikhil Vora points out that
GSK Consumer Healthcare has held on to its market share in a space that’s grown at
around 20 per cent in the last couple of years. “As the market leader, the brand could
yield some share but volumes have grown in double digits for five consecutive
quarters.”

Not just higher tonnage, the company does succeed in extracting a price from
consumers. In January this year, for instance, prices were upped by about 5 per cent.
What has worked in the company’s favour, says KPMG’s Ramanathan, is Horlicks
value-for-money positioning. “Horlicks may not be a cheap product but it’s been
communicated as a value-for-money product. Parents today are willing to spend more
on nutrition for their children and that has helped GSK Consumer Healthcare.”

To that extent, Horlicks may have gained over competitors such as Complan which
are perceived to be more expensive, a perception that hasn’t changed over time. Says
Ahmed: “Compared to competitors, Horlicks is the best money proposition and,
moreover, the consumer gets value for the money spent.” For the new launches too,
he has in mind a similar value proposition, though final prices will be fixed keeping in
mind the target group. “Women’s Horlicks is far more expensive than the base
Horlicks but that’s because the consumer is getting much more and there’s no other
product available. Horlicks Nutribars will be primarily a metro phenomenon to start
with so the pricing has been decided

“Women’s Horlicks is far more expensive than the base Horlicks but that’s because
the consumer is getting much more and there’s no other product available. Horlicks
Nutribars will be primarily a metro phenomenon to start with so the pricing has been
decided.accordingly.”

Nourishing the brand

Horlicks does not feel the need for a brand ambassador, though GSK Consumer
Healthcare has engaged expensive celebrities like Kapil Dev, Sachin Tendulkar and
Mahendra Singh Dhoni to endorse Boost. Still, the several new launches could push
up the ad budget of one of the country’s top advertisers, most of which is spent on
television. Sen believes that spends could inch up over the Rs 194 crore that GSK
Consumer Healthcare spent on advertising and promotions last year. Typically, FMCG
companies spent 12 to 13 per cent of their turnover on brand promotion.

The radio, through which Horlicks reached out to mothers even 40 years ago, is still
an effective channel in states such as Bihar or Orissa where consumers don’t have
access to television or where power cuts are frequent. In the early years, mothers
were the sole target audience since the product catered to the entire family. However,
once pester power became big in the 1990s, the Horlicks advertisements started
talking to children too. The change worked because it was also the time when
mothers’ mindset was changing — they had become more indulgent and let children
drink what they liked, rather than imposing on them a drink of their own choice.

Today, JWT Client Service Director Debarpita Banerjee believes, the Internet can be a
good way to connect with kids. So, there are tips posted on examinations on the
website — “Exams ka bhoot bhagao” (Drive the exam demon away). Besides, the
company has also reached out to children with Wizkids, a contact programme that
provides a platform for schoolchildren across 25 cities to showcase their talent.

Adding rural reach

Under Ahmed, GSK Consumer Healthcare has upped the ante on distribution. In an
aggressive ‘Go to Market’ approach earlier this year, it created a second layer of
distributors in the smaller towns to supplement the existing chain of around 500 big
distributors. Most of these 4,000 sub-distributors were appointed in the eastern and
southern parts of the country. The idea, according to Vice-president (sales) Navneet
Saluja, is to increase the retail reach by at least 30 per cent. “Right now we reach out
to around 25 per cent of the rural market and we hope to extend this reach to about 40
per cent of the hinterland in a couple of years. We’re looking to have a presence in
towns that have a population of 5,000 people.”

As for reaching out to customers in the urban markets, Sen has begun to work with
retailers to create excitement and awareness. “In some outlets, we even created play
areas for children,” he says. Although modern trade remains a relatively small channel
currently, fetching just 4.5 per cent of the firm’s sales, Saluja’s aiming for higher
shares. Ahmed’s not worried about the expense. “We’ll be leveraging the P&L (profit
and loss account) for some time because we need to invest in the business and new
products,” he says. Clearly, no effort is being spared to grow Horlicks.

MARKETING STRATEGY

RE-POSITIONING:

It was really a surprise to everyone when horlicks re-positioned itself. Initially, horlicks
was just a nutritional drink positioned only for the sick patients and mal nutritioned. But
later GSK trend change among the people towards health concern and people were
searching for something nutritional and tastier for their children and hence it
repositioned itself as “complete nutritional drink”. With the slogan “happong , oppang ,
chappong” it captivated the childrens mind. Sensing its competitors with complan and
bournvita it again improved itself to “Taller, Stronger, Sharper. “. This made horlicks
really a leader in the market and its sales grown rapidly. Before other competitors
could react it went ahead. It also affected sales of boost but still both are from same
company they make sure that boost also gets sales in the market. Considering the
diabetes patients they also extended to “horlicks lite”. For kids they added more
nutrients and designed as “1-2-3 junior horlicks”. For mother they changed with
improved nutrients as “Mother horlicks”. Being a nutritional drink they were able to
extend in the same category. Thus built a strong brand through brilliant marketing.

ADVERTISEMENT:

They also consistently came up with good series of AD campaign. Every AD was
kindling the target audience. It spoke both to the mother and the children that was the
secret in their promotion. Every level of emotional and comparison ADS were made to
get the market leader position in the market. Every advertisement had group of
children and mother convincing more to drink in the people mind. During every
extension ads were made differently and carefully differentiated such that every
extension sustains in the market. JWT(J WALTER THOMPSON) ad agency was
responsible for their successful promotion.

INTEGRATED BRAND PROMOTION:

These are the elements which promote the brand effectively. Horlicks never failed to
do such things. They created awareness campaigns by sponsoring school and college
competitions. They also sponsored kids’ related shows in the TV. They also
sponsored the events and made their brand more familiar and big in the market.

BRAND EQUITY ANALYSIS

Brand Loyalty:

Brand loyalty is a reputation of the brand which the customer has towards it. Horlicks
is a brand the consumer is satisfied using it but with minute change in price the
consumer has chances to switch the brand. Since it is a low involvement product the
offers provided by the competitors might allure the consumer to switch brand.

Despite strict competition in the market, Horlicks holds a formidable position through
effective marketing.
Trade leverage:

Horlicks definitely hold a shelf space because customers expect the product to be
available as it is an essential product in their monthly grocery list. Since Horlicks has
extended into various categories as Junior Horlicks, Mother’s Horlicks, Horlicks Lite
they definitely require a store space.

Attracting new customers:

As their campaigning right from its inception of explaining its features to till date with
Junior Horlicks , Mother’s Horlicks and Horlicks Lite providing the nutritious benefits it
creates a strong awareness thereby pulling in new customers .

The reassurance of the brand is achieved by the existing customers, since it holds a
better market share and strong awareness.

Time to respond to competitive threats:

GSK Horlicks is one of the brand which comes up with innovative product line they
were able to withstand threats at each stage of their growth.

BRAND AWARNESS
Brand awareness is the ability of potential buyers to recognize or recall that a brand is
a member of certain product category.
Horlicks provides a better awareness since it is in the “top of mind” of the customer.

Brand Association:

The recognition of the brand Horlicks is associated with its benefits (slogan) which
comes with the package itself. Since this aspect is positioned throughout their
promotions.

Substance and Commitment:

The brand name is recognized, the reason behind this is

 The brand has advertised extensively

 The brand has been in the business for a long time

 The brand is widely distributed

 The brand is successful –and others use it

Top of Mind

This plays a vital role because the buyer will be exposed to Horlicks during the buying
process, Since Health drink comes under this low involvement category, the brand
Horlicks provides the Top of Mind through sponsoring events and Television shows.
Also the advertisements provide an emotional benefit attached to it that keeps
remaining of the brand.

Perceived Quality
It is the customer’s perception of the overall quality or superiority of a product or a
service with respect to its intended purpose relative to alternatives. So it’s a perception
of the consumer about the product. It relates to several aspects such as:

I. Actual or objective quality:-product or service delivers superior service

II. Product-based quality:-the nature and quantity of ingredients, features included.

BASIS ON WHICH CUSTOMER BUYS HORLICKS

BRAND ELEMENTS:
Brand Name:
Brand personality:

Initially it represented for the children and now for pregnant women’s, aged people.
Not only for the bread winner of the family but also for the whole family.

Brand logo:

Brand packaging:

The new package of Horlicks is well designed to give the customer clear view of the
ingredients included in the product.

SHARE VALUE

GSK may come off as a new MNC in India, floundering in an unfamiliar market and
throwing up a non-stop array of products with the hope that something sticks. The
reality is that GSK has never been as strategically strong and financially healthy as it
is today thanks to the unusual plan of action charted out by its current MD of two
years, Zubair Ahmed.

When Ahmed took over from his predecessor Nick Massey, GSK was—and is—a
leviathan in the now Rs 2,200-crore malted food drinks (MFD) market, enjoying steady
growth and 66.5 per cent of the market share via its brands Horlicks, Boost, Maltova
and Viva.

Between January and May 2008, Heinz’s Complan, with a 14.1 per cent value share,
snatched two percentage points away from Horlicks (49.5%), Boost (12.7%) and
Cadbury’s Bournvita (16.1%). The battle for a slice of malted drinks market is heated
—and can get ugly. In 2007, GSK launched an advertisement which claimed that
children who consumed Horlicks grew faster, thanks to the 23 vital nutrients in the
drink, and moreover, it had a markedly lower price than its competitors.

Heinz India was infuriated and filed a case in the Bombay High Court, which was
dismissed. In retaliation, Heinz responded with its own ad that trumpeted Complan’s
nutrition and growth claims, which GSK promptly took to the Delhi High Court.
Ultimately, both the ads have been withdrawn, but the matter is still pending, and the
dust over the battle for MFDs in India is far from settled.

COMPETITOR ANALYSIS:

Direct Competitors:
Complan, Boost, Bournvita, Maltova, Milo, Viva are the direct competitors.

Horlicks vs. Complan:

Heinz Complan is the nearest competitor. Heinz Complan contains the Milk protein
which helps the children to maximize their growth Potential but as Horlicks provides its
health drink in various categories and flavours with good nutrition and the formula to
become “Taller, Stronger and Sharper” Horlicks beats Complan. Also the “double
protein” theory seems to be going beyond their source to compete complan in growth
formula which creates doubt in the consumer minds.

Horlicks vs. Boost:

Although both the health drinks belong to Glaxosmith Kline they have a good
competition. Both Horlicks and Boost is been categorized for the people having high
level of income. Boost is clearly segmented as a chocolate flavoured Energy drink.
“Boost is the Secret of our energy” is its slogan. The brand has been positioned and
repositioned with the New Boost ChocoBlast and Advanced Energy Boosters.
Horlicks beats Boost because as boost is an energy drink it cannot be a complete
nutritional drink, Unable to give variety in flavours.

Horlicks vs. Bournvita:

Children always look out for the tastiest option, to make their daily dose of milk more
enjoyable Cadbury Bournvita offers two options with its popular chocolate taste, and
its latest offering, Cadbury Bournvita 5 Star Magic, leveraging the rich chocolate and
caramel flavour of Cadbury 5 Star.

New Bournvita++ offers the children the best of both worlds – nature and science. It's
a well-balanced combination of natural, wholesome ingredients and essential
nutrients.

Discover how they work together to boost your child's physical and mental energy.
Horlicks beats Bournvita 5 Star Magic by providing new flavours in Horlicks [chocolate,
Vanila, Honey, etc.] and beats New Bournvita ++ with their slogan “Exams ka bhoot
bhagao” (Drive the exam demon away).
Horlicks vs. Viva and Maltova:

Glaxo Smith Kline’s New Viva has VitaHealth - a combination of 9 essential Vitamins
[Vitamin A, D, B1, B2, Niacin, Vitamin B6, Folic acid, Vitamin B12 & C], Iron, Calcium
and Phosphorous. Viva contains the natural goodness of milk, wheat and malted
barley. Just 2 cups a day give you the nourishment to help provide a healthy
foundation for life and, of course, a great start to the day. 'Start to a bright and healthy
day!'

Maltova, a chocolate Health Food Drink, was acquired by Glaxosmith Kline from
Jagatjit Industries Limited in 2000. It is 'The yummy choco-malt drink' with essential
vitamins, minerals and carbohydrates. Even though all three of them belong to the
same manufacturer GSK, Horlicks stands at the Top of the Mind of the customers
through various varieties and flavours and also through sponsoring events and
Television shows. Also the advertisements provide an emotional benefit attached to it
that keeps remaining of the brand.

Indirect Competitors:
Coffee, Tea, Milk, etc.

CONCLUSION:
The consumer marketing in the case of Horlicks is being well handled during its growth except
its extension as biscuits, nutribar and foodles. since they are kind of niche products ,there
wont be big market size and only very few people look for nutritional value in those categories.
Also the “double protein” theory seems to be going beyond their source to compete complan
in growth formula which creates doubt in the consumer mind They should plan very well
before extending in to new market with their brand equity and extending in the same category.
This is what we could study from their marketing strategy and give solution.

WEBLIOGRAPHY:

www.businesstoday.info

www.gskindia.com

en.wikipedia.org

www.books.google.com

www.amazon.com

www.flipkart.com

www.cadburyindia.com

www.heinzindia.com

www.scribd.com

BIBLIOGRAPHY:

International Institute of Planning and Management [IIPM]

–Brand Management