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the Horlicks
case
Shreyash Kandarkar
FT161087
Horlicks came to India at the end of World War I when Indian warriors of
British Indian Army carried it back with them as a dietary supplement.
Punjab, Bengal and Madras Presidencies ended up being early adopters of
Horlicks and some well-to-do Indians took to drinking Horlicks as a family
drink in mid 1940s and 1950s. It turned into a kind of materialistic trifle in
upper working class Indians and rich classes. The main flavour accessible
in India, as in Britain, was malt. India, where it has customarily been
advertised as The Great Family Nourisher, is the biggest market for
Horlicks. The Indian detailing for Horlicks is somewhat unique in relation to
most other nations, as there it is fabricated from wild buffalo milk as
opposed to dairy cows milk because of social concerns. In 2010, Horlicks
represented 85% of the 23.06 billion (US$350 million) income of
GlaxoSmithKline in India. It is as of now the most broadly expended
packaged beverage in India, after packaged water. GSKCH's health food
drink (HFD) brands - Horlicks, Boost, Maltova and Viva - represent 58.6 by
value and 65.1 by volume of around Rs 5,000-crore market, per date from
market researcher Nielsen for 2013. Horlicks and its variations represent a
large portion of the HFD market by volume. Cadbury India's Bournvita had
a share of 17% and Heinz's Complan, 11%.
Brands and products tend to age through the years if not nurtured
properly. As a result, Horlicks felt the need for brand extension. The
motive behind this was to build Consumer based brand equity.
In 1992, Horlicks made its first brand line extension with biscuits. It
positioned biscuits as nutritional food in the solid form. Horlicks was
associated closely with milk and hence biscuit extension led to same
brand knowledge.
Horlicks then targeted kids by launching Junior Horlicks for kids in
1995. The advertisements were purely targeted towards kids the
'Epang, Opang, Jhapang' campaign with message Taller stronger
and sharper.
After liberalisation, India saw the section of a few new brands both
from domestic and universal players. Bournvita and Complan were
seen to be solid contenders in west and northern parts of the nation,
so was nearby player Jagatjit Industries with its brands Maltova and
Viva in the north. GSKCH acquired Maltova and Viva and successfully
three flavours - Nuts 'n Raisins , Choco Crispy and Cereal 'n Milk.
In 2009, Horlicks launched Foodle- the health nourishing noodle
and positioned it as a more nourishing noodle filled with power
vitamins.
usage imagery
Perceived quality of mother brand
Brand loyalty
Trust in brand competence in new category
Logical fit in new category
Conclusion
Horlicks had tried the test of times till 1990 when it hadn't presented quite
a bit of variations and hadn't worked much on product and brand
extension. While on one hand, Horlicks has been fruitful in strengthening
its core brand values of health products like "Horlicks Women", it has
5
neglected to extend its brand image to different products like biscuits and
nutri bars. Horlicks had almost about 10 years of no innovation after which
it began to concentrate on development and reduced the risk aversion
processes. It approached as an intense brand that was prepared to
attempt new products and present danger by broadening its existing core
values into new product offerings. Some of them have been fruitful
because of their solid relationship with parent brand. Yet, some of them
were a major disappointment and that was because they needed solid
relationship with brand, had little compatibility and that didn't resound
with Horlicks consistency and cohesiveness of brand image. An
unsuccessful brand extension hurts the core brand image by making
undesirable affiliations. Extension so far has been a mixed bag for
Horlicks, however utilizing its core competency will be the most ideal path
forward.
References
https://en.wikipedia.org/wiki/Horlicks
http://marketingpractice.blogspot.in/2011/11/brand-update-horlicks-extends-to.html
http://www.afaqs.com/news/story/32146_Stretching-the-Horlicks-core
http://articles.economictimes.indiatimes.com/2011-02-03/news/28428186_1_horlicks-brand-gsk-consumerhealthcare-breakfast-and-mid-day-meals
http://businesstoday.intoday.in/story/case-study-horlicks-appeals-acrossgroups/1/205238.html