Makeover for Horlicks, again | Business Standard News

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Makeover for Horlicks, again

This is the third time in four years that the country's largest milk food drink is being relaunched
Viveat Susan Pinto | Mumbai
August 21, 2014 Last Updated at 21:40 IST

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The consumer arm of British pharmaceutical major

GlaxoSmithKline (GSK) is relaunching its largest brand
Horlicks for the third time in four years as competitive
pressures as well as a slowdown in category growth compel
it to look for new customers aggressively. From 15-16 per
cent a year ago, growth in the Rs 5,500-crore health food
drink category, where Horlicks operates along with rivals
such as Bournvita and Complan, has slowed to levels about
5-6 per cent now.

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The Rs 3,000-crore Horlicks leads the category with a 46.2

per cent market share. Both Bournvita and Complan have in
the last few years upped the ante in the health food drink
category with the introduction of new flavours and variants
backed by aggressive marketing and distribution. This comes
as health consciousness among consumers in general has
grown in India.
Brands such as Horlicks, for instance, have variants targeting
both children and adults in its portfolio. AIterations targeting
adults such as Women's Horlicks and Mother's Horlicks were
introduced in the last few years as the company realised it
could take the product to target groups beyond its core
constituent of kids.
The current restage, however, says Jayant Singh, executive
vice-president, marketing, GlaxoSmithKline Consumer
Healthcare, will kick off with the malt or base variant of
Horlicks, which is targeted at children between five and 12
years. This is the most important of Horlicks' variants
contributing 60 per cent to its overall revenues. "Extensions
such as Women's Horlicks, Mother's Horlicks, Junior Horlicks
and Horlicks Lite will be relaunched over the course of the
next six to eight months. It was important we begin with the
core product, which is the base variant," Singh says.
The relaunch will see the base variant available in new
packaging with a new proposition which will emphasize the
need to consume Horlicks everyday rather than three times a
week as is the trend now. "There are two ways one can grow
the category: Either you improve width or depth of

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10/2/2015

Makeover for Horlicks, again | Business Standard News

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consumption. We are trying to improve depth of

consumption," Singh says.
The new ad campaign involving television, digital and onground activities will be rolled out in phases. It will first be
launched in the south and east in a week's time, followed by
north and west, Singh says.
Besides, the relaunch will also see the base variant available
in an instant format implying that the product will now
dissolve quickly in milk, both hot and cold. "This is the first
time in 100 years of the existence of the brand that it is
becoming instant. Typically, consumers of Horlicks have to
stir the product when added to milk to help it dissolve. This
will no longer be required," Singh says.

Interestingly, in its previous two attempts at restaging the product, GSK Consumer had attempted to
make similar big leaps in positioning, first relaunching Horlicks as a wholesome food & beverage
product in 2010 coinciding with its extension into biscuits and cereal bars (noodles were launched in
2009 and oats in 2011 under Horlicks). While in 2012, Horlicks was positioned as a drink fortified with
26 vital nutrients that aided the five important signs of growth including more bone area, more muscles,
better concentration, more active nutrients and healthier blood. This shift marked its departure from the
earlier popular tagline - Taller Stronger Sharper.
Singh says that Horlicks' food extensions will also shift to the new packaging in the next few months to
ensure that all sub-brands and products have a uniform structure and graphics. "Biscuits and oats
contribute about 6-7 per cent to Horlicks' overall revenues. They are small at the moment, but they will
grow over time," he says.
Incidentally, GSK Consumer discontinued cereal bars a year or two after launch, while the focus on
Foodles was brought down owing to a mixed response to the product in the marketplace. Currently,
GSK has a multigrain variant of Foodles on shop shelves.
Will the new makeover work?
While brand experts say frequent changes may not augur too well for a product, Singh argues that the
three relaunches have not been out of context at all. "At every stage we have attempted to convey
something important, which was part of its evolutionary cycle," he says.
Says Santosh Desai, MD & CEO, Future Brands, "There are very few variables in a category such as
health food drinks. Finding a new way to essentially say the same story, which is about performance,
achievement or addressing the mother and child, has been a challenge for most brands in this
category.
Most of them are trying to do something with their communication. Bournvita, for instance, has
attempted to address this challenge by moving away from the familiar terrain of scientific studies and
product benefits into a more emotional plane of hardwork, dedication where the drink acts as an able
supporter.
Horlicks' acid test will begin once the new ad campaign goes on air, say brand experts, which the
company says it is geared for.

http://www.business-standard.com/article/management/makeover-for-horlicks-again-1140...

10/2/2015