Horlicks free essay sample

Born: 1873, in the US History: Two Chicago, US-based brothers, James and William Horlick, first patented the malt-based milk drink as baby food. the US While the exact date of its India launch is not known, some of its commercials date back to the early 1900s. Currently owned by GSK Consumer Healthcare Ltd in India Status: Horlicks holds 58% of the Rs1,900 crore health food drinks market, and is currently a Rs1,000 crore brand in India Brand story: From a drink that was supposed to promote a good night’s sleep to one that can help children grow taller, stronger and sharper, Horlicks has come a long way.Simultaneously, its brand image, too, has changed—from a fuddyduddy, boring health drink recommended by doctors to something that is nourishing, and enjoyable. In 1992, as its market share grew, the brand extended itself to a new product—Horlicks Biscuits. In 1994, it started singing the â€Å"micronutrient† story, fol lowed by its â€Å"smart nutrientsâ €  campaign in 1998. The brand underwent a massive transforma tion in 2003, when almost everything about it changed—from the taste and flavour to the packaging. It also changed its positioning: it was nourishing, yes, but also tasty.Another turning point came in 2005, when the brand released a clinical study which claimed that children who consumed Horlicks were â€Å"taller, stronger, and sharper† than those who did not. For the first time, the brand tried to communicate with children, not just their mothers. Beginning a major advertising and marketing campaign along that theme, new variants such as Horlicks Lite were launched, followed by the revamp of Junior Horlicks in 2006. The latest variant is Women’s Horlicks, launched this year.We are constantly striving to ensure that the brand is relevant to consumers,† says Shubhajit Sen, vice-president, marketing, GSK Consumer Healthcare Ltd. Product innovation, he maintains, is likely to remain a priority Source- http://drypen. in/case-studies/brand-horlicks-case-study-and-strategies. html Market- Horlicks Quite often, a jar of Horlicks occupies a visible position in Indian kitchens. Successive generations of Indians over the past half-century have consumed it – stirred in a glass of hot milk or water – and become totally confirmed believers in Horlicks’s virtues of good health and nutrition.This is only to be expected for a brand that consumers have been using since the 1930s. Today, Horlicks is one of the best known brands in the health food category. It owes its success to a strong brand heritage, commitment to quality, focused communication, a strong distribution network and a deep understanding of consumer needs. Health food drinks provide nourishment for the family, particularly growing children and serve as energy providers for adults. The market for malted milk powders in India is huge as the product is widely used as a nutrition and energy supplement by children and adults.The size of the market is estimated at Rs. 10,170 million. Horlicks occupies the leading position with over 50% shares of the market (Source: ACNielsen ORG-MARG 2002). Despite Operation Flood, the durability of the Horlicks brand has remained and has, in fact, been strengthened over the years. This is because the brand has been able to reinvent itself – and the market – and create positioning strategies that are in sync with consumer needs. It has created new segments in the market place by introducing sub- brands aimed at specific consumers.Mothers Horlicks is targeted specifically at pregnant and lactating mothers, while Junior Horlicks has been especially formulated for little children. This strategy has expanded the market and brought new groups into the Horlicks fold. Most brands in the category, today, offer a variety of flavors to cater to the changing tastes of consumers. Product innovations, too, are the norm as the brand that offers the most value to consumers is likely to win. Horlicks’ enviable brand reputation and continuous product improvement has helped it stay ahead of its competitors. AchievementsHorlicks has a significant presence in over fifteen countries. Today Horlicks is the best known brand in the health foods category in India. The brand enjoys the trust of generations of Indian mothers and this relationship has been nurtured by the brand by fortifying the product from time to time. In 1998, Horlicks was fortified with Smart Nutrients – a unique combination of vitamins and minerals – intended to imbibe growing children with mental agility and physical fitness. Junior Horlicks was relaunched with extra nutrients to build the immunity of little children.Today, Junior Horlicks contributes 11% to Horlicks’ total sales turnover and has been one of the fastest growing product extensions to the Horlicks brand. But it isnt just product development that Horlicks has concentrated upon. It has also created new attractive packaging options including jars, refill packs and sachets. Horlicks was the first brand in India to introduce a refill pack option and also the first to shrink-wrap bottles. In a way, there’s a Horlicks pack for every occasion and mood. History Some malted barley, pinches of wheat flour with a dash of evaporated milk.Thats Horlicks recipe for success. James Horlicks, after whom the brand is named, was a chemist who worked for a company which produced dried infant food. He became ambitious after inventing some recipes of his own. So along with his brother William, they found J and W Horlicks of Chicago. In the 1870s, babies often fell sick as fresh milk soured quickly without refrigeration. It was this recipe, invented by James and William that Saved the day. From then on, their business grew rapidly. It was in 1906 that James returned to Britain and opened the Horlicks Malted Milk Company.Later, their sons sold the brand to SmithKline Beecham, now known as Glaxo SmithKline, (GSK) for ? 20 million. Up until the 1960s Horlicks was positioned as an adult restorative drink that gave extra energy, especially during convalescence. The 1970s saw its position shift to ‘The Great Nourisher’. It was in this phase that the brand saliency shot up. Suchitra, the protagonist, epitomised the modern housewife of those days. She was the gatekeeper of her familys health. The medical credentials were reinforced through the depiction of a doctor as the rational voice.The next decade saw Horlicks face an immense external challenge. Thanks to Operation Flood, there was availability of milk and the raison detre for buying the brand became weaker. Horlicks fought back. In 1984, Horlicks aimed at growth by growing the consumer base. By 1994, it had created ‘Ideal Horlicks’ – and improved product formulation that also brought back the taste people reminisced about. In 2002, Horlicks was relaunched on the immunity platform. Product Put a couple of tablespoons full into a mug. Add warm water or milk and you’re ready to enjoy a drink that’s tasty and nourishing.Add ice cubes, cold milk or water to reconstituted Horlicks and it turns into a delicious, thirst quenching drink on a hot afternoon. That is why Horlicks is considered to be ‘the great nourisher’ for the entire family. The medical credentials and heritage of the brand have reinforced the image of the brand for years. Junior Horlicks, a specialist brand for little children. Mother’s Horlicks, a special nourisher for pregnant and breast feeding mothers, and Horlicks Biscuits are the other forms in which the brand is available.A selection of flavours – including chocolate, vanilla and honey – allow consumers to enjoy the nourishing goodness of Horlicks in a variety of delicious ways Recent Developments The new century has seen the Horlicks brand successfully battle the quirks of a fickle market. In fact, during 2001/02, Horlicks overcame grave challenges. The process invigorated and reinforced all the traditional virtues of the Horlicks brand and in the process created the basis on which Horlicks confidently looks to its future. The initial years of the new millennium were turbulent for Horlicks. While the brand stayed ahead of its rivals and retained market leadership, it showed a decline in absolute sales growth. Analysis revealed that the brand was suffering on three counts: usage by medium and heavy users had declined; the brand was not being perceived as ‘modern and contemporary’ and there was a loss in brand relevance among children. A complete brand re-launch was initiated in July 2003, and this involved improving the product, introducing new flavours, new packaging and a new communication campaign. For the first time in the brand’s history, it was decided to target children directly.Consumer research revealed that children perceived the brand to be old fashioned – something that their grandparents drank. This increased their resistance to the brand. Moreover, mothers too, were reluctant to force their children since they wanted to be seen as friends rather than as figures of authority. So, ‘better taste’ was the only way to make Horlicks the preferred choice among children. The focus was on ‘pleasurable nourishment’ and this paved the way for the introduction of New variants – including vanilla and honey. The regular variant, too, was improved to offer the best possible taste.And finally, packaging was made smarter, more vibrant and attractive. The new, improved Horlicks was advertised through the ‘Pran chonchol’ campaign, which established the Horlicks experience as integral to the lives of spirited live-wire children. The brand’s personality changed dramatically – the serious, do-good, earnest personality was replaced by a spirited, engaging, fun- loving character. What remains unchanged, though, is the commitment of the company to inventing new reasons and ways for consumers to enjoy the nourishing goodness of Horlicks. Promotion Horlicks released its first Indian press ad campaign way back in the 1930s, positioning itself as the family nourisher. Over the years, Horlicks’ communication has always connected with its consumers. In the 1970s, Horlicks was among the first brands that gave expression to the urban housewife’s concerns by creating the character of Suchitra, a modern housewife concerned with her family’s health. During the 1980s, Horlicks created one of the most popular TV campaigns with its ‘Why do I drink Horlicks? ’, commercial.It was one of the early instances of slice-of-life advertising that showcased the wide acceptance of the brand among people from different walks of life. The brand has been endorsed by celebrities, including leading lights of the Indian film industry such as Amitabh Bachchan who featured in a series of radio ads in the 1960s and 1970s; and Moon Moon Sen and her daughters Riya and Raima in the 1980s. Former world chess champion Vishwanathan Anand has also endorsed the brand. and 1970s; and Moon Moon Sen and her daughters Riya and Raima in the 1980s.Former world chess champion Vishwanathan Anand has also endorsed the brand. Apart from brand building campaigns, the brand is also well-supported by consumer promotions. Below-the-line activities, merchandi-sing, sampling programmes in schools, shopping malls and at sponsored events have helped Horlicks achieve top-of- mind recall scores of more than 70 and 45 respectively in the key markets of Calcutta and Chennai (Source: IMRB ATP, Q3 2003). Horlicks ranks amongst the most cherished and valued brands in India today (Source: Brand Equity 2003). Brand ValuesHorlicks has always been a brand that stands for good health and nourishment through a wholesome, natural product. A commitment towards product quality and reinforcement of essential nutrients has won over the trust of generations of mothers. The brand gives them the reassurance that they seek in caring for their family. Family bonding is at the heart of Horlicks’ brand values. This, in turn reinforces Horlicks’ image as a caring and trusted brand. Horlicks has always been a brand that stands for good health and nourishment through a wholesome ,Things you didnt know about horlicks †¢ Horlicks was first invented to substitute milk as baby food. †¢ In India, 2 billion cups of Horlicks are drunk every year. †¢ In some global markets, Horlicks is positioned as a sleep enhancing night time drink. †¢ Where there is a problem taking solid food, Horlicks can provide the nutrition that would otherwise be missing from the diet. †¢ People on special diet, including liquid diet or any diet devised for gastric disorders, can benefit from the nutritional convenience of Horlicks