By: Amit Das

History

1873: James Horlick & William together they founded the company J & W Horlicks

1945: The U.S. company was acquired by the British Horlicks business

1958: Hindustan Milkfood Manufacturers Pvt. Ltd.

1969: Horlicks acquired by the Beecham Group.

1989: Beecham Group became SmithKline Beecham.

2000: SmithKline Beecham became GlaxoSmithKline

Facts

Horlicks is almost a 137 year old brand

Horlicks was first invented to substitute milk as baby food

It has been contributing almost close to 80% of net sales in the GSKCH product portfolio

The brand has been endorsed by Amitabh Bachchan on the radio(1960-70), Moon Moon Sen, Vishwanathan Anand.

Biggest market is India More than 1 millions packs is

sold per day 6th most trusted brand in India

(AC Nelson)

Positioning & Re-positioning Of Horlicks

 It was initially introduced both a substitute & an additive to milk and it was initially positioned itself as “food for convalescing” & a nutrient supplement for kids only.

From a boring nutritional drink, GSK positioned Horlicks as `pleasurable nourishment', by launching

Elaichi, Chocolate, Honey Buzz, Vanilla

It introduced other variants like – Jr. Horlicks, Women’s Horlicks,

Mother Horlicks & Horlicks Lite.

Advertising Strategies

Organized nationwide events like- Wiz kids & Dream Team.

Epang Opang Japang: highlighted the benefits of the brand and helped the brand to differentiate strongly from the competition

CAMPAIGN: “ Badlo Apne Bachpan Ka Size ” takes the thought to the next level by communicating how Horlicks enables kids to have a bigger, better, childhood while growing Taller, Stronger, Sharper

Horlicks Exam Toppers- Horlicks brings a topper home, to every child.

Marketing Strategies (4Ps)

Product Jr. Horlicks, Women’s Horlicks, Mother Horlicks &

Horlicks Lite. Place 1800 wholesalers and direct coverage of over

4,00,000 retail outlets South and Eastern markets which contributes about

46 per cent and 47 per cent of the total sales Price Rs. 90/200gm & Rs. 170/500gm Less than competitor Promotion

Promotional Strategies GSKCH is promoting the product both through traditional

print and TV media

GSKCH also introduced a Doctor Engagement Program wherein the company reaches out to physicians, dieticians and nutritionists to educate them about the product. 

For catering to the rural segment they introduced another variant that is the Asha from Horlicks is priced at Rs 85/500g pouch & 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 and reminds 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 the product as "Clinically Proven ".

Philanthropic activity: Aahar abhiyan

Brand Extension

FMCG Sector in India

Market Share & Valuation

What Does GSKCH’s past say?

GSKCH Performance

From 2002 to 2005 the company witnessed poor growth registering 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

yr CAGR’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 the

fourth 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

in Q1FY13 net profit March 31, 2013, the total income from operations (net)

was Rs 975.38 crore against Rs 836.41 crore during the same period in the previous financial year.

Successful & Failed Advertisement

Bibliography

http://www.gsk-ch.in/History.aspx http://stockshastra.moneyworks4me.com/company-shastra-

24/ http://www.docstoc.com/docs/68802297/Brand-Equity-

Horlicks http://www.thehindubusinessline.com/companies/gsk-

consumer-healthcare-net-profit-up-20/article4673839.ece http://www.fullertonsecurities.co.in/equity/markets/

rsch_reports/1_0_09062012Fullerton%20Glaxo%20CHL%2008%20June%202012.pdf

http://businesstoday.intoday.in/story/67percent-market-share-but-still-insecure/1/4453.html

http://www.powerfulwords.co.uk/sample-assignments/marketing/horlicks-promotions-management.php