A STUDY ON BRAND IMAGE OF

HORLICKS

1
 CHAPTER-1

INTRODUCTION

2
1.1-INTRODUCTION

A STUDY ON BRAND IMAGE OF HORLICKS

Brand image is the current view about customers about a brand. It can be defined as
a unique bundle of associations within the minds of target customers. It signifies what
the brand presently stands for. It is the set of beliefs held about a specific brand. In
short it is nothing but the consumers perception about the product. It is the manner
in which a specific brand is positioned in the market. Brand image conveys emotional
value and not just a mental image brand image is nothing but an organizations
character it is an accumulation of contact and observation by people external to an
organization. It should highlight an organization’s mission and vision to all. The main
elements of positive brand image are unique logo reflecting organizations image,
slogan describing organization business in brief and brand identifier supporting key
values.

Brand image is the overall impression in consumer’s mind that is formed from all
sources. Consumers develop various associations with the brand. Based on these they form
brand image. An image is formed about the brand on the basis of subjective
perceptions of associations bundle that the consumers have about the brand. Volvo is
associated with safety and Toyota is associated with reliability.

The idea behind brand image is that the consumer is not purchasing just the
product/services but also the image associated with the product/service. Brand images
should be positive unique and instant. Brand images can be strengthened using brand
communications like advertising, packaging, word of mouth publicity other promotional
tools etc.

Brand image develops and conveys the product’s character in a unique manner
different from its competitors image. The brand image consists of various associations
in consumer’s mind attributes, benefits and attributes. Brand attributes are the
functional and mental connections with the brand that the customers have. They can be
specific and conceptual.

Brand image has not to be created, but is automatically formed. The brand image includes
products' appeal, ease of use, functionality, fame, and overall value. Brand image is actually
brand content. When the consumers purchase the product, they are also purchasing its image.
Brand image is the objective and mental feedback of the consumers when they purchase a
product. Positive brand image is exceeding the customers’ expectations. Positive brand image
enhances the goodwill and brand value of an organization

3
 1.2- NEED OF THE STUDY
 The study is use full for us to understand the history and the uses of
the health drink and the way it benefits the consumer with its nutrients.
 The study also helps us to understand the content analysis of
Horlicks-taste, women Horlicks, and the extension of the brand
Horlicks which is the market leader in the health drink market, since
1920 with its product analysis of brand extension and line extension
 The study also helps us to understand the marketing strategies and
the positioning and the re-positioning of Horlicks
 Helps in understanding the advertising strategies and marketing
strategies with 4P’s and promotional strategies.
 The study helps to know the brand image of Horlicks among the
consumers in the market.

4
 1.3-OBJECTIVES OF THE STUDY
 To know the marketing strategies and branding strategies of Horlicks
 To study the brand image of Horlicks
 To examine the swot analysis of Horlicks

5
1.4. RESEARCH METHODOLOGY

 Scope of the study

The study is limited to

 Sample Size
The data was collected from 50 respondents

 Primary sources
The data was collected through questionnaire method

 Secondary sources

6
 CHAPTER-2

REVIEW OF LITERATURE

7
2.1. Meaning
 A brand Image is the perception of the brand in the mind of the customer. It is an
aggregate of beliefs, ideas, and impressions that a customer holds regarding the brand.
 A brand can be perceived differently by different customers. Hence, the formation of
a consistent brand image is a huge task for any business.
 It is passive in nature and includes both visual elements and brand associations
 It focuses on looking ahead.

2.2. Definition
Brand Image is an image or impression the customers form about a particular brand in their
mind which is developed over a certain time period. Brand Image can be defined as how
existing or potential customers view the brand and associate with it. Brand image is
something that eventually forms in the mind of the customer. Brand image may be same as
brand identity or may be totally opposite. The ideal scenario is that the brand image should be
positive and what the company or the manufacturer wants it to be. Every company wants to
position its brand in a certain way which it deems is the best way for it to be seen by the
customers, that is known as Brand Identity

The figure above shows the cycle how brand identity converts into brand image and comes
back to the company itself. If brand identity is in sync with the image the customer comes
back to the company.
The views, beliefs and perceptions of the target customers form an image in their minds
defining how they imagine or identify the respective brand. Basically, brand image is the
overall impression of a brand's total ‘personality’ in the consumers' mind. Brand image is
8
developed over time and affected by the consumer’s experience or association from all
sources, as well as mass advertising. The brand image in the mind may be made up of real
data or imaginary assumptions.

2.3. Marketing strategies and branding strategies of Horlicks

 The brand today talks to every member of the Family rather than the entire family
 The idea is to address all the age groups
 Horlicks marketing strategy has been health oriented. This leading health food
drink in India offers a Measurable nourishment
 Horlicks caters to people from different age groups
 Horlicks marketing strategy initially was the “Great Family Nourisher”
 GSK has made sure that Horlicks is available in every corner of India and that
supermarket and grocery shops have a sufficient stock amount of Horlicks
products
 In 2003 the Horlicks marketing strategy as well as the brand went through
massive transformation from the taste to its flavour
 In 2009 marketing strategy took a new direction when new flavours were
launched by the company by targeting the different age groups of people
 Horlicks is also embarking on print campaigns and focussing on publications
and also BTL promotions . It would be supported by the branded stalls and
merchandise at the venues for facilitating product sampling and visibility.
 Marketing Strategies of Horlicks can be followed by 5P’s

PRODUCT
The product strategy and mix in Horlicks marketing strategy can be explained as
follows:

 Horlicks a Glaxo Smitkline Product occupies major share in the Health

food drink segment
 Product assortment of Horlicks is very diverse in terms of product lines
and product depth
 It was considered that Horlicks was a boring nourishment drink and was
beginning to lose its significance
 The company research showed that preference for flavours reigned higher
than nutrients, and hence, the decision to make the drink tastier and
enjoyable was taken

9
 In terms of the width of the product mix, Horlicks as health drink, oats,
biscuits and instant noodles. In the health drink category, it has different
variants for different age groups and needs. There is Mothers Horlicks,
Junior Horlicks, Horlicks Promind, Women’s Horlicks Growth+ Horlicks
and Cardia + Horlicks
 These products are based not only around age groups but also around
lifestyle of people

 By launching Healthy food products Horlicks is strengthening its position

as a nutritious and a Health conscious brand

PACKAGING
 Eye catching and safe packaging has always been a boon for every
product and this has been a case for Horlicks
 While the product packaging has been designed by Tata Elxsi, the pack
is designing has been done by Walter Thomson
 The company as focussed on attractive packages that includes sachets,
refills and jars these are airtight and durable so that the freshness and
taste are not hampered
 Horlicks as substantially increased the valve for money proposition for
its customers
 Highest shelf appeal and maximum visibility
 Contemporary packaging in hues of bright blue and orange
 The product as a distinct labelling that provides all related information
like ingredients , pricing, manufacturing, and expiry dates to the
consumers
 Horlicks also provides periodic discounts from 5 to 10 percent for
maintaining their customer base

PRICE
 Horlicks is seen as a premium product as it gives nutritional value to
every segment in the market be it a kid or an adult
 Pricing is done considering the value addition done along with the
consumer comfort ability
 Value for the money spend as per the Health benefits
 Horlicks is priced high keeping in mind the value proposition.

PLACE

10
 Factory

Distirbu
Consu
tion
mers
centres

Rural
Wholes
retailer
alers
s
Urban
retailer
s

PROMOTION

 Promotion of Horlicks to various target audience is a vital part of the

management function
 Horlicks as a deep and strong understanding of the needs and wants of
its consumers and they have capitalized this knowledge in creating
some very beautiful and knowledgeable promotions of their brand
 All its advertisements have been highlighting on its deep commitment
to maintain and present qualitative products.
 As it is a heritage, brand people have started linking Horlicks with
excellence and success.
 The brand has been involved in running Seminars to stress on the
importance of nutritional drinks
 In order to initiate awareness about its product, several fests are
organised in schools and at malls showrooms.
 Many ad campaigns have been created featuring kids and strong
messages
 These are aired on various channels of television and radio. The print
media has also been roped in where the ads are displayed I the
newspapers , billboards and magazines
 It as an apt tagline “Horlicks, nourishment for Life” Some of the
celebrities associated with Horlicks are Vidya Balan and child actor
Daesheel Safari

11
 2.4. Study on the brand image of Horlicks

Evolution

Production
Facts
analysis

Evolution

 135 year old brand

 1865: William and James Horlicks started the company in Chicago USA to
manufacture “a malted milk drink” which claimed to promote sleep.
 1883: William was given a US patent for Horlicks being the first malted milk drinks
mixing power.
 1909: Horlicks became popular in North Pole and South Pole expedition as provision
 1914-1918: During the World War-I and 1939-1945: During World war-II: Horlicks
became very popular at home and the battle front. In World war –II Horlicks tablet
was sold as a candy used as an energy booster
 1931: Night starvation was a story developed to promote Horlicks as a bedtime drink
 1945: Company acquired by British Horlicks Business
 1958: A plant was setup and was named Hindustan milk manufactures
 2000: Glaxo and Smitkline merger
 It constantly involved in Line extensions and Brand extensions
 The brand Horlicks is the leader and commands about 50% market share in 1300cr
Indian Health Drink Industry

12
 FACTS

 Horlicks was first invented to substitute milk as a baby food

 The brand has been endorsed by Amitabh Bachan on the radio (1960-1970)
Vishwanathan Anand
 In India over 2 billion cups are drunk every year
 Biggest market in India
 6th most Trusted brand in India (AC Nelson)
 Most Trusted Health drink brand (Economic Times)

PRODUCT ANALYSIS

NUTRIBAR

FOODLES CHILL DOODH

BRAND
EXTENSION

Figure 1

13
LINE EXTENSION

HORLICKS
HORLICKS LITE
FLAVOURS
WOMEN'S
HORLICKS

JUNIOUR
HOLICKS

BRAND EXTENSION

HORLICKS (1930)

Horlicks Biscuts:

 The popularity of horlicks biscuts has been grwn since it was launched in the
year 1992
 Horlicks biscuts contain high protien , calcium and vitaminD which is equal
to 2 cups of Horlicks

Horlicks Nutribar :
 Horlicks Nutribar was launched in the year 2009
 Nutribar is a cereal bar which contains cereal and multi grains

14
  Nutribar does not belong to confectionery segment (chocolates) but belong to
an emerging category called Functional foods
 Nutribar is being positioned as a healthy solution to hunger

Chill Doodh:

 Instant Milk shake with attractive flavours like Chocolate

 Horlicks chill Doodh which was launched in the year 2010

Horlicks Foodles:

 Foodles is the only noodles made from a combination of nutritious gains like
rice wheat ragi and corn
 Foodles contains Vitamins A+B+C, Iron , Calcium
 Vitamin B1+B2+B6+B12, Niacin Folic Acid

LINE EXTENSION

Junior Horlicks (1995)

 It is designed to provide age appropriate nutrition to the child

 Junior Horlicks (Stage 1) helps fussy toddlers by providing nutrients that help
in weight gain
 DHA and Choline ensures healthy brain development
 It is also easy to digest, allowing kids to digest comfortably
 Milk calcium and high protein is very important for bone growth in nursery
going children .With all these coupled with 6 immune nutrients Junior
Horlicks( stage 2) assists in healthy immune function , helping in overall
development of child

15
Women’s Horlicks(1997)

 India’s First health drink designed specifically for women’s nutritional needs
 It was recommended by World Health Organization(WHO)
 It was formulated by combining Scientific knowledge and expertise
 The Women’s Horlicks was formulated with ion, calcium, folate and other
nutrients
 With low fat and no added sugar
 It is a wholesome and natural combination of malt, wheat and milk
 It Is for contemporary working women, promising blood and bone health and
Women’s Horlicks is a bone nutrition specialist powered with calseal
formula, The formula contains Vitamin D, and Vitamin K2 which are proven
nutrients for bone health

Horlicks Flavours (2003)

 Horlicks consists of essential vitamins, minerals and Amino Acids and has
enhanced taste with flavours like caramel, chocolate, kesar – badam and
vanilla, elaichi flavour

Horlicks Lite (2005)

 For the Health conscious consumers, Horlicks had the range of product like
Cardia+ Horlicks and Lite Horlicks
 For people with diabetes, the Lite Horlicks was made with zero sugar and zero
cholesterol, so that the body can counter damage from oxidative stress
 Horlicks Lite is rich in Vitamin B, Vitamin C, Calcium, Iron and Zinc and
helps fill gaps in nutrients
 Horlicks Lite is filled with a wide range of key vital nutrients and minerals
 The Horlicks Brand has extended the Horlicks Lite Flavour that is the Horlicks
Lite Badam

16
 2.5. To Examine the SWOT analysis of Horlicks

 SWOT Analysis is a tool to find out Strengths and weaknesses, Opportunities, and
Threats that are to be expected in a project or in a business venture or in something
similar. It means that marketing environment (internal and external to the organization
and individual) is looked at. It is one of the best tools to conduct the internal and
external analysis for any company. The technique was developed by Albert Humphrey,
who led a research project at Stanford University in the 1960’s and 1970’s, SWOT
Analysis is the part of the Harvard Policy Model, which has been developed as a part
of the business policy courses thought at the Harvard business school since the 1920’s
SWOT analysis thus focuses manager's attention on core activities which can
determine competitive advantage of the company and help him devise appropriate
business strategy to leverage those competencies profitably. However, SWOT analysis
should not be used rigidly. It should always be used coupled with continuous
monitoring of the environment and market intelligence and research.
SWOT Analysis is a proven management framework which enables a brand like
Horlicks to benchmark its business & performance as compared to the competitors and
industry. Horlicks is one of the leading brands in the food & beverages sector.

STRENGTH

 It is current no.1 position in the market

 It is the trusted brand
 Horlicks has got a strong backing of parent company GSK CONSUMER
 UK, India, Hong Kong, Australia etc are some places where Horlicks is
supplied
 Horlicks has many variants that is class malt, chocolate, kesar badam, elaichi
 Strong branding promotions have increase brand awareness of Horlicks
 Excellent distribution network means Horlicks can be purchased from
supermarkets, grocery stores etc.
 Online presence has encouraged people to buy it
 Horlicks as a product for growing kids, mothers and women
 Health is the central idea for all the products of Horlicks
 All the products of Horlicks belongs to different categories which will not kill
the market of its own products

WEAKNESSES

 Limited market share owing to strong competitor in the sector

 Horlicks is not as widely available globally as compared to its global
competitors

OPPURTUNITIES

 Horlicks can increase its presence in Europe and America

17
  Different packaging styles can help increase sales of Horlicks
 Diversifying into health snacks can also help brand catch the market
 Increase penetration in emerging markets

THREATS

 Intense competition: Horlicks as to face strong competition from the likes of

Cadbury’s Bournvita, Milo, Complan, and Maltova. Intense competition
affects market share and revenue
 Other nutrition drinks: There is a threat of consumers moving from malted
drink products to other nutritional drinks like natural or packaged juices,
processed milk etc.
 Cannibalization: Boost is the one product that GSK offers in the same
category especially targeting kids who love chocolate flavour. Boost
cannibalises the market of Horlicks
 Cadbury is the major threat brand wise and promotion wise

2.6 Review of Past studies

 Vikram Bahl, Area Marketing Lead, Nutrition & Digestive health, GSK
Consumer Healthcare India said, “Horlicks, as a brand has always aimed at
providing students with necessary nutrition to achieve more. Through the
‘Fearless Kota’ film we wanted to highlight that along with a healthy body, a
healthy mind is equally important to perform; hence the right emotional
nutrition is needed for children to overcome the fear of exams. The film
captures the belief that a mother’s love is the best dose of emotional nutrition
that helps a child overcome stress and face exams fearlessly.”

 Swati Bhattacharya, CCO, FCB Ulka said, “It’s like Mother Teresa said –
“The hunger for love is much more difficult to remove than the hunger for
bread.” Students in Kota have access to the best faculty and world class
facilities, but they’re missing a fundamental need that is as biological as the
need for vitamins. We’ve termed this “emotional nutrition”, and Fearless Kota
is our way of showing its power.”

 Abu Talib, Praxis Business School said, “When, we try to measure the brand
equity of Horlicks on parameters like trust, recommendation, price and
quality, we came with the results showing the brand equity for each brand
wherein we see that brand Horlicks scores well on the trust and
recommendation parameters and outperforms its competitors Complan,
Bournvita and Milo.

 Hindustan Unilever said, “Horlicks does target parents (mothers, mostly) and
children. That’s an audience HUL is also familiar with. But Horlicks is a
health food drink, competing with other products such as Complan, chocolate

18
 syrups such as Hershey’s and nutrition products from pharmaceutical
companies such as PediaSure. This takes it into uncharted territory.
Horlicks is also chiefly a one-trick pony, with very little success in its attempts
to extend to products such as noodles or biscuits. That’s an area that HUL may
do well to correct. Then, there is this question of Horlicks operating in a
slowing market for health drinks, its ability to compete with newer products,
especially from pharmaceutical companies, and whether it provides any real
health benefits.

 Binod kumar Singh, University of Petroleum and Energy studies, said, Unlike
similar drinks, such as Ovaltine, Horlicks is not a dry blend of malt extract
and milk powders. 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 syrup which is dried in vacuum
Band driers to form a cake. This cake is milled into the finished powder. This
is then fortified with vitamins and minerals. It’s a brand that's been growing
steadily over the years, and increasing the audience that it addresses as well.

 Chirag Patel, Pune University, said, “As customer is considered to king of the
market, this fact is very much true for the liquid food drink industries. It is
very important on the part of the organization to learn customer behaviour in
order to increase their sale and create good brand image in the minds of the
customer. It can be conclude that people are aware of different brands of
health drink and Television as played a vital role in spreading awareness on
the various health drink brands. And Horlicks as always been a brand that
stands for good health

 Centre of Social Initiative and Management (CSIM) said, “There seems to be

a disconnect between the intended core message of Women’s Horlicks and
the interpretations made by the target customers, While the key emphasis
appears to be health aspect, from a consumer perspective substantial
differentiation from other Horlicks products appears to be absent

 Gopalakrishnan MBA said, Horlicks enjoys a strong brand equity and

acceptance among consumers, however can improve its consumption by
enhancing its usage by its preparation in water and vending machines ensuring
its presence in school and offices

 M.D.Milan Mia, Bangladesh University of Business and Technology said

“People prefer Horlicks because of better advertisement and the reason that
their packaging is long lasting

19
 Mateen Altaf, Banker, Teacher, Freelancer, at the bank of Punjab, Horlicks as
achieved so much more by consumer learning. And now Horlicks Wizkids has
motivated people towards Horlicks products. In Horlicks India, It seems that
the process of consumer learning is working effectively

20
-

Vikram Bahl, Area Marketing Lead, Nutrition & Digestive health, GSK Consumer
Healthcare India said, “Horlicks, as a brand has always aimed at providing students with
necessary nutrition to achieve more. Through the ‘Fearless Kota’ film we wanted to highlight
that along with a healthy body, a healthy mind is equally important to perform, hence the
right emotional nutrition is needed for children to overcome the fear of exams. The film
captures the belief that a mother’s love is the best dose of emotional nutrition that helps a
child overcome stress and face exams fearlessly.”

Swati Bhattacharya, CCO, FCB Ulka said, “It’s like Mother Teresa said – “The hunger for
love is much more difficult to remove than the hunger for bread.” Students in Kota have
access to the best faculty and world class facilities, but they’re missing a fundamental need
that is as biological as the need for vitamins. We’ve termed this “emotional nutrition”, and
Fearless Kota is our way of showing its power.”

21
 CHAPTER-II

REVIEW OF LITERATURE

22
23