Horlicks - Effective Repositioning through Focused Advertising



Case Code : CLMC-033
Publication date : 2005
Subject : Marketing Communications
Industry : -
Length : 04 Pages
Price : Rs. 100

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Key words:

Health Food Drinks, Horlicks, Glaxo SmithKline Consumer (GSK) Healthcare Ltd, Bournvita, Milo, Consumer Preferences, Nutritional Values, Sachets, Positioning, Health Supplement, Packaging, Pester Power, ACNeilsen, ORG-MARG, Tata Elxsi, J. Walter Thomson and Heavy users


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The caselet gives an overview of the Indian health food drinks segment. It elaborates on the efforts of Glaxo SmithKline Consumer Healthcare Ltd (GSK), to reposition and stem the decline in sales of its flagship brand Horlicks. The caselet describes the consumer research study conducted by GSK and the subsequent advertising campaigns launched to target the kids. The caselet also examines the earlier failed attempts of the company to position the brand successfully.


   Health food drinks market in India
   Positioning an FMCG brand
   Packaging as a marketing communications tool
   Pester power and its influence on consumer buying behavior
   Importance of a consumer research study


The approximately Rs 13,000 mn, 80,000 tonne-a-year market for health food drinks-HFD (also known as milk food drinks or MFD), began to stagnate in 2002. The segment is broadly divided into the white and brown malts category.

The white malts category constitutes 60 per cent of the overall HFD market and Horlicks, along with Junior Horlicks, is the market leader with a 57 per cent market share. The brown beverages -- consisting of brands like Boost and Maltova (Glaxo SmithKline Consumer Healthcare Ltd, GSK), Bournvita (Cadbury), and Milo (Nestle) -- form the remaining part of the HFD market...

Questions for Discussion:

1. How did an understanding of consumer behavior help GSK re-launch Horlicks in a completely new version, targeted exclusively at children?

2. GSK had earlier used sachets to increase sales volumes, but had little success. Do you think the new packaging has played an important role in the success of the re-launch campaign? Would sachets instead of bottles, be beneficial as a means to target children more effectively?