HORLICKS: LINE EXTENSIONS

GROUP 6Mahesh Koppad Swati GovilSwati Bothra Arnab Guha MallikVijeta ShrivastavaAlpa Bhatt

HORLICKS• It is a brand from GSK• A market leader in the health food

drinks category with market share of 52%

• The brand also has presence in biscuits and in snack-bar

Brand Parent Company

Variants

Complan Heinz •Family Lite•Flavoured drinks (Kesar badam, mango, strawberry etc)•Complan Natural

Bournvita Kraft Cadbury •Bournvita Li'l Champs

Boost GSK Nil

Brand and Line extension Competitors

Target Segment: • Little children, Age group of 1- 3 • Pre-Schoolers, Age group 4-6

NEEDS• Nutritional requirements vary according to age. • Toddlers are fussy eaters, which may lead to gaps in

nutrition. • Pre-schoolers, on the other hand, tend to have a busy

schedule, and need adequate nutrition to keep them going through the day.

JUNIOR HORLICKS

Junior Horlicks 1-2-3: An easy to digest drink for the fussy toddler at home (Junior Horlicks is partially pre-digested, which helps make it easy to digest)

Junior Horlicks 4-5-6 with Growth Boosters, Power Vitamins and Smart Nutrients: A nutrition packed health food drink for an active pre-schooler

Variants

Junior Horlicks has positioned itself exclusively for children between the age of t 2 and 5 as junior horlicks1-2-3

Hence keeping the targete customers in mind the packaging is cute and the package has the picture of a small elephant which is very exciting for the small children

Women’s HORLICKSProduct

Doctor Engagement Programs GSKCH also introduced a Doctor Engagement

Program wherein the company reaches out to physicians, dieticians and nutritionists to educate them about the product. This in turn, would hopefully lead to an official or at the very least, unofficial, product endorsement by these professionals. Their core strategy lies in grabbing the mind space of the consumers, rather than following the more traditional hard-sell route

Price

Promotion

Rich in ideal Quality Milk ProteinLow FatNo Added Sugars2 flavors: chocolate and caramel

Rs 100 for 200 gm jar

Women's Horlicks is designed to specifically address the health needs of women providing 100% of the daily requirement of iron, calcium, folate and vitamins B2, B6, B12, and C2.

The target segment therefore consists of health conscious urban working women, in metros and mini-metros, between the ages 19-50, leading hectic lives focusing on career and family and hence not able to take care of themselves in the bargain.

Print and television Ads

Konkana Sen Sharma was selected as the face of the urban Indian woman of today, balancing career and home, a choice sure to resonate with most women. This, combined with the baseline, "Because your body needs you too!", starkly elegant in its very simplicity, captures the essence of the brand image GSK is trying to build.

Mother’s HORLICKS: Every mother has a right to healthy babies!!

• Mother's Horlicks also supplies the recommended quantity of ideal quality proteins.

• Mother's Horlicks provides nutrients that are essential for blood and bone health.

• Mother's Horlicks is also rich in antioxidants which are essential during pregnancy and lactation.

Other benefits

Target Segment

• Pregnant Ladies• Lactating Mothers

Mother's Horlicks, launched in 1997, is a superior nutritional supplement with 26 vital nutrients that is scientifically designed keeping the nutritional needs of the pregnant and breast feeding women in mind.

An attempt to enhance nutritional superiority saw the launch of its new variant in May 2004 - Mother's Horlicks fortified with DHA.

Available in all leading chemist outlets in packs of 500 g (Rs. 200 only) and 200 g (Rs. 100 only

• Lite Horlicks is a HFD specially designed to suit the nutritional needs of adults.

• provides strength and stamina by maintaining and repairing damaged body cells.

• Lite Horlicks has no added sugar and no fats. • Contains 26 vital nutrients• Has high fibre• Is low fat• Has essential antioxidants

BENEFITS

New Lite Horlicks with zero added sugarand zero cholesterol Lite Horlicks is so far the only nutritional products to be

endorsed and certified by Diabetes India

Positioned itself as a nutritious product for health conscious and people having diabetes

Lite Horlicks is available in two flavors - Original Malt and Badam.

Lite Horlicks

Target Segment

• 40+ adults• Diabetes Patients

Segment: White health drink for the family

Target: Initially focussed on all age groups. Now targets children in the age group of 6-14 years

Positioning: Trust and promise of a "pleasurable nourishment" with a delicious range of flavors

Price: Rs. 138

Segment: Chocolate based health drink for children

Target: Young growing children from the middle and upper class

Positioning: The COMplete PLANned Food for growing children

Price: Rs.154

Segment: Chocolate based health drink for children

Target: Young growing children from the middle and upper class

Positioning: Chocolate health drink to make kids stronger and sharper

Price: Rs. 138

Segment: Chocolate flavored health drink for children

Target: Children in the age group of 5-18 years

Positioning: Healthy drink which could be used as a median drink between carbonated drink s and fruit juices

Price: Rs.135

Brand Communication & Value proposition

Taller, Stronger, Sharper Boost is the secret of my energy

Taiyyari jeet ki, Real Achievers who have grown up on Bournvita; Upbringing' to 'Intelligence; Good upbringing

The complete planned food; I am a Complan boy, Im a Complan girl; Grow 2 times faster

Line Extensions

Competition in the new segmentCompetition Competitor brand strategy Consumer Perception of

competitive offering

Junior Horlicks Bournvita Li'l Champs •Targeted at under 5 age category•Touting on its nutritional content and 5 star taste to catch the target segment•Packaging is new and attractive•Brand promises the mothers to make their kids champions like its brand ambassador•Emotional benefit

Bournvita Little Champ is liked by children along with milk due to its delicious taste. Parents believe it helps their children to become good in study, active and intelligent

Women’s Horlicks Nil NA NA

Mother’s Horlicks Nil NA NA

Horlicks Lite Complan Family Lite •Targeted at the entire family for 13 years & above•fat-free and has no cholesterol and no added sugar

Perceived as a brand with functional benefits and helps to reduce cholesterol. Well accepted due to Complan name

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Brand Launch date (In India)

Market Share

Segments Communication strategy

Presence3 New flavor 2003

1930s 50% No demographic segmentation till extensions. On health consciousness

1990s; Health focused, no age or income barrier (evident) emphasize trust in brand2000s; Same except no reference to brand name/originFew ads were more focused on kidsBrand was trying to add fun element to its character by more energetic and humorous ads

Line Extensions

Junior Horlicks 

1995 11% Age Emphasis on functional benefits, litter platform, connecting environment for parents

Mother Women’s Horlicks and Variant* (DHA)

1997 & May 2004

Stage in life cycle Very targeted ads in print and online mediaCompletely functional in nature

Horlicks Lite

2005 Elite, family (size 2-3) and Health conscious

Relied on print, On spot purchase and media coverageNo mass media till variant was launched in 2007

Women Horlicks

Jan 2008 16% Gender Launch: Wide coverage by media (esp business dailies papers) Ad; 100% affective componentLatest Ads: shows scientific support in addition to affective component and shows functional benefits very briefly

Research suggest no adverse effect on parent brand• All the extensions seem to be well excepted with double digit growth • The market share of parent brand has been increasing but if looked from 2 decades

otherwise it has been same for last 8-9 years• Sales has been increasing steeply (last year 17.8% growth) • Divisional shares has been changing indicates switching behavior• Line extensions can be anticipated in terms of defending the market share then increasing

it

Customer support:• All the extensions were in line with the value of providing nourishment projected by the

brand (No deviation)• Horlicks has been associated with trust and care (Conformity)

No Brand dilution: • The product category growth has been very high around 14% pa• This gave the extensions time and resources' to stabilize any immediate non acceptability• The purchaser were not different (In most cases Women in families) thus brand

association helped horlicks to get easy trials

Effects of line extentions

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