History 1873: James Horlick & Williamtogether they founded the company J& W Horlicks 1945: The U.S. company wasacquired by the British Horlicksbusiness 1958: Hindustan MilkfoodManufacturers Pvt. Ltd. 1969: Horlicks acquired by theBeecham Group. 1989: Beecham Group becameSmithKline Beecham. 2000: SmithKline Beechambecame GlaxoSmithKline
Facts Horlicks is almost a 137 year oldbrand Horlicks was first invented tosubstitute milk as baby food It has been contributing almostclose to 80% of net sales in theGSKCH product portfolio The brand has been endorsed byAmitabh Bachchan on theradio(1960-70), Moon Moon Sen,Vishwanathan Anand. Biggest market is India More than 1 millions packs is soldper day 6th most trusted brand in India(AC Nelson)
Positioning & Re-positioning OfHorlicks It was initially introduced botha substitute & an additive tomilk and it was initiallypositioned itself as “food forconvalescing” & a nutrientsupplement for kids only. From a boring nutritional drink,GSK positioned Horlicks as`pleasurable nourishment, bylaunchingElaichi, Chocolate, HoneyBuzz, Vanilla It introduced other variants like–
Advertising Strategies Organized nationwide events like-Wiz kids & Dream Team. Epang Opang Japang: highlightedthe benefits of the brand and helpedthe brand to differentiate stronglyfrom the competition CAMPAIGN: “ Badlo Apne BachpanKa Size ” takes the thought to thenext level by communicating howHorlicks enables kids to have abigger, better, childhood whilegrowing Taller, Stronger, Sharper Horlicks Exam Toppers- Horlicksbrings a topper home, to every child.
Marketing Strategies (4Ps) ProductJr. Horlicks, Women’s Horlicks, Mother Horlicks &Horlicks Lite. Place1800 wholesalers and direct coverage of over4,00,000 retail outletsSouth and Eastern markets which contributes about46 per cent and 47 per cent of the total sales PriceRs. 90/200gm & Rs. 170/500gmLess than competitor Promotion
Promotional Strategies GSKCH is promoting the product both through traditional printand TV media GSKCH also introduced a Doctor Engagement Programwherein the company reaches out to physicians, dieticians andnutritionists to educate them about the product. For catering to the rural segment they introduced anothervariant that is the Asha from Horlicks is priced at Rs 85/500gpouch & Rs 50/200g. Horlicks has launched a fun and informative website(www.myhorlicks.com) for kids (6-16) and mothers The latest campaign of Lite aims at the lady in the house andreminds her to keep her husband active with Horlicks lite. Horlicks has tied up with IPC magazines to offer free magazine The brand also takes the medical platform by labeling theproduct as "Clinically Proven ". Philanthropic activity: Aahar abhiyan
GSKCH Performance From 2002 to 2005 the company witnessed poor growthregistering low or negative growth rates. Q2 2008 sales soar up 19.3% GSKCH has also performed well over the last 5 years Its Net Sales and EPS have clocked impressive 5 yrCAGR’s of 17.44% and 27.97%. 11.5% sales growth, 2009
Net sales of Rs. 720 corers over 2010 Impressive sales growth of 18% over 2010 Q4 2010 sales up 21% ad profits up by 58% Q2 2011 sales up 22% ad profits up by 15% 17.85 per cent rise in net profit at Rs 69.65 crore for thefourth quarter ended December 31, 2012. 16 per cent increase in sales in the quarter ended March 31,2013. Glaxosmithkline Consumer spurts on reporting 19% rise inQ1FY13 net profit March 31, 2013, the total income from operations (net) wasRs 975.38 crore against Rs 836.41 crore during the sameperiod in the previous financial year.