Horlicks has avoided becoming dated by successfully launching variants over time to address new consumer needs and strengthen its core brand values. It defied aging by repositioning itself as a drink for children in 2003. Major product innovations like Women's Horlicks in 2008 were blockbuster successes. While some extensions like food products failed, Horlicks has established growth through adjacent brand variants that complement its portfolio. Currently, Horlicks remains the dominant brand in the health food drink category in India.

1. HOW HORLICKS
AVOIDED BEING
DATED?
Submitted to:

3. Brands and pro ducts te nd to ag e o ve r the ye ars if
no t nurture d pro pe rly. Ho rlicks has le arnt to de fy
ag e . By succe ssfully launching variants at diffe re nt
po ints in tim e , it has stre ng the ne d its co re brand
value s, apart fro m addre ssing ne w co nsum e r
ne e ds and thus bring ing such co nsum e rs into its
fo ld.
This case study lo o ks at ho w Ho rlicks has avo ide d
g e tting date d…

5. PREFACE
•Current Market Share
•History
•Handling Competition
•Innovation & Campaign
•Major Product Contributing In The Success
•Other Important Campaign
•Some Failure
•Current Scenario
•Reference

6. CURRENT MARKET
SHARE
•GlaxoSmithKline ConsumerHealthcare’s (GSKCH) health
food drink (HFD) brands - Horlicks, Boost, Maltova and
Viva - account for 58.6 per cent by value and 65.1 per cent
by volume of a some Rs 5,000-crore market, per date from
market researcher Nielsen for 2013.
• The HFD category contributes 77 per cent to GSKCH's
revenues of Rs 3,079 crore for calendar 2012.
• Cadbury India's Bournvita had a share of 17 per cent and
Heinz's Complan, 11 per cent.

7. HISTORY
•Horlicks was locally manufactured in India only
since 1958, though it had been available via imports
since the early 1900s.
• It was one of the early starters with aggressive
advertising and it pulled in celebrities such as
Amitabh Bachchan in the 1970s to endorse its brand
over radio.
• The company then recognised that there was a
specific need for toddlers in the one to three years
age group and launched Junior Horlicks in 1995.
•This was a period of turmoil in the consumer
products market, as India, after liberalisation, saw
the entry of several new brands both from domestic

8. HANDLING COMPETITION
•Bournvita and Complan were seen to be strong
contenders in west and northern parts of the
country, so was local player Jagatjit Industries with
its brand Maltova and Viva in the north.
•GSKCH acquired Maltova and Viva and effectively
prevented competition from opening a new front.

9.
•"We would visit homes and the company wanted to listen in
to the consumer needs even in the early 1980s,"says Bindu
Sethi, Chief Strategy Officer at ad agency JWT.
• "It was this consumer voice that found reflection in the
repositioning of Horlicks as a drink targeted at children in
2003, with the 'Epang, Opang, Jhapang' campaign," she
says.
•Horlicks was a family drink until then, the great "family
nourisher". All branding and communication spoke to
different family members and how it meant different things
to different people, while the new campaign spoke to
children directly.
HANDLING
COMPETITION (contd…)

11. INNOVATION &
CAMPAIGNS
•In 2003, it offered its newly formulated Horlicks to the
National Institute of Nutrition (NIN) at Hyderabad, which
conducted research to prove its effect on the growth of
children. "We clearly identified three key benefit areas to do
with bone health of children, muscle health and their ability
to focus better," says Jayant Singh, Executive Vice
President, Marketing, GSKCH. This led to the "Taller,
Stronger, Sharper" campaign.
•In this, the company tapped into the growing pester power
of children who now were key decision makers not only
with what they ate, but also other key decisions around the
household.
•The company had speeded up its brand variant launches
with Horlicks Lite in 2005, aimed at diabetics and Horlicks

12. MAJOR PRODUCT
CONTRIBUTING IN THE
SUCCESS
•The company found that women were an ignored
segment as there was no specific product
addressing their specific need. This led to the launch
of Women's Horlicks in 2008, creating a
BLOCKBUSTER PRODUCT.
•"It has been growing 60-65 per cent year on year
[even if] on a small base," says Singh. But the effect
has been that Horlicks Lite combined with Women's
Horlicks ensured that the company clocked growth
of more than 17 per cent in revenues until 2011.

14. OTHER IMPORTANT
CAMPAIGNS
Aided by its R&D centre, it formulated a blend of
Horlicks that was guided by its earlier study done by
NIN. The results showed five clear areas of benefit:
more bone area, more muscle, better concentration,
more active nutrients, and healthier blood. This led to
its launch of the "5 Signs of Growth" positioning and
campaign.

15. SOME FAILURES…
•GSKCH had its hiccups with its Horlicks extensions.
The 2010 launch of Chill Dood, its flavoured milk
range, did not take off. Nor did its attempt to launch
cream biscuits and noodles, under the brand
Horlicks Foodles, in 2009.
•Industry insiders say much of the company's
success has come from adjacent brand variants
such as Horlicks Junior, Women's Horlicks, Horlicks
Lite and Mother's Horlicks and not from extensions
into biscuits, noodles and, even low-priced HFD
variants such as Asha.

17. CURRENT SCENARIO
•Latest extensions like Horlicks ProMind and Horlicks
Gold are yet to establish themselves conclusively,
though they have shown promising off take in their
test markets in the south. GSKCH thinks successes
far outnumber failures.
•"We are already the second-largest brand in the
south after Quaker Oats," points out Singh. GSKCH
is certainly on a fast track.

18. According to the Ace Equity database, Horlicks and
its brand variants have helped the company
accelerate its revenues and profits in the last five
years (till December 2012) to 19.2 per cent and
23.4 per cent, respectively, against 13.1 and 20.8
per cent in the preceding five years.

19. Taller, Stronger, Sharper, indeed.
Thank You