Horlicks Stretches Out

Presented By: Wasim Ahmed Manuj Sah Akshat Jain Ashu Goel Vipin Rathi Maitraya Biswas Anjani Kumar Yogesh Jadia

Horlicks
‡ ‡ ‡ ‡ ‡

Horlicks - name of a malted milk hot drink. Claimed to promote sleep. Also, known better as a café drink. Biggest market India Traditionally been marketed as 'The Great Family Nourisher. ‡ Served hot or cold, and is usually sweetened with sugar

History Timeline
‡ 1873: James Horlick, a pharmacist, joined his brother, William, in the U.S. and together they founded the company J & W Horlicks in Chicago to manufacture a patented malted milk drink as an artificial infant food. ‡ 1883: U.S. patent 278,967 granted to William for first malted milk drink mixing powder with hot water. ‡ 1960: Factory built in Punjab, India to make Horlicks from buffalo milk. ‡ 2000: SmithKline Beecham became GlaxoSmithKline.

Market Analysis
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Horlicks market share Rs 2,305-crore Above 50 per cent in milk beverages market Nestlé stopped making Milo New entrant Dabur India decided to stay clear of Horlicks
± pitched its Chyawan Junior against GSK Consumer Healthcare s other beverage brand, Boost.

Expansion
‡ 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. ‡ GSK MD believes the new products will make a meaningful contribution to the company s top line in the next few years. ‡ Country s sixth most-trusted brand

Expansion Contd.
‡ GSK Consumer Healthcare succeeded in segmenting customer base
± Catering for specific needs of women ± 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.

Product Line
‡ GSK Consumer Healthcare had positioned a product exclusively for children between the ages of two and five with junior Horlicks launched in 1995.
± Junior Horlicks brand has grown to become a Rs 150-crore brand

‡ Company launched Junior Horlicks biscuits last month ‡ GSK Consumer Healthcare had reached out to pregnant and lactating mothers with Mother s Horlicks, five years back ‡ it came up with Women s Horlicks catering for women across age groups

Product Line
‡ Horlicks Lite for the elderly who often have a sugar problem and for the youth we have Horlicks Nutribar - energy cereal bars. ‡ Horlicks nutribar positioned on the twin planks of health and convenience. ‡ Invited consumers to taste its summer drink called Horlicks Chilled Doodh (milk), available in four flavours

Competition
‡ Keen competition in the Rs 45-crore chilled milk category from Amul Kool and strong regional players like MAFCO in Mumbai

Revenue
‡ 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. ‡ Indians drink more than five million cups of Horlicks everyday

Advertisements
‡ 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. ‡ Spends over the Rs 194 crore that GSK Consumer Healthcare spent on advertising and promotions last year. ‡ Radio , 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.

Reaching Rural Areas
‡ 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. ‡ Clearly, no effort is being spared to grow Horlicks

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