Horlicks Stretches Out

Presented By:
A.MOHAMMED.IMRAN
 Horlicks
• Holicks a brand was established before 6 decades back in
1960.
• It is owned by GlaxoSmithKline consumer health care.
• It was a substitute of “Milk” as Baby Food
• It acquired more than 50% market share in India milk
beverage market.
• Initially Horlicks is claimed to promote sleep when
consumed at bedtime.
• In India, It is popularly known as “mother’s Horlicks”.
• Horlicks - name of a malted milk hot drink.
• Also, known better as a café drink.
• Traditionally been marketed as 'The Great Family Nourisher.
 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
• 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.
• 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
 SOME FACTS
• All Horlicks sold in India = 6 times length of
Great wall of China
• Sixth most-trusted brand in India
Thank You