Inara Aslam LD 3

Elements Of Marketing
LD-3
Inara Aslam
Horlicks
Vs.
Complan
About the company – Horlicks
HORLICKS GLAXO SMITH KLINE (GSK)
• In India, over 2 billion cups of Horlicks
are drunk every year. • Leader in Indian Health
• Horlicks is the only drink clinically Drink Market.
proven in India to make kids ‘taller, • Four brands - Horlicks,
stronger and sharper’. Boost, Viva and Maltova
• The Horlicks available has been • According to retail audit
scientifically developed and specifically unit ORG Marg,
caters to the nutritional needs of the • GSK with four brands in
Indian diet. the category has a 75
• Horlicks alone enjoys 50% of the Health percent volume market
Food Drinks market. share (Press Trust of India)
• Horlicks has been a popular brand in • Competition: Complan,
India since 1930. GluconD, Bournvita are
• Re-launched in 2003; included a new other
look for the brand targeting its core popular brands.
consumer, children up to 14 years old.
• New products have been developed
specifically for India, catering different
segments of the Indian market.
About the company – Complan
HEINZ
• In 1994, Heinz brought out complan from
Glaxo. Given Heinz’s commitment to quality &
leadership, complan has evolved into India’s
premium health beverages for growing
children. It has now come to stand for the Gold
standard of Nutrition.
• The brand’s positioning as the drink for
growing children coupled with its superior
nutritional formulation as its greatest strength
today.
• Complan is current consumer base runs into
hundreds of 1000’s of households across the
country. Apart from India, complan is also
available in the U.K, Australia, Nepal, and
Venezuela & Srilanka.
Health Food Drink Market In India
The milk shortage of the 60s was what first fuelled the growth of the health food drink
sector. With the availability of milk being rare and quality always suspect, milk additives
were in high demand. The following decades saw the sector cruising along at an 8-10%
growth rate, with milk shortages fuelling growth. Encouraged by the growth, lot of
companies jumped onto the bandwagon. The sector saw a flurry of launches from Complan,
Nutramul, Boost, Maltova etc.
Traditionally positioned as milk substitutes, the biggest markets for Milk Food Drinks(MFDs)
were in the milk deficient Southern and Eastern regions of India. However, after the success
of Operation Flood by the National Dairy Development Board in the 1980s, MFDs were
repositioned as health beverages. (Operation Flood was a programme
launched in Gujarat and was aimed at increasing milk production).
A decade later a flurry of re-launches, nutrients, freebies
galore – health food drinks are fighting to regain stamina as I
industry goes through trying times. After a rapid 10%

volume growth between 1996 and 1997, the market
tanked in 1998. Today, the market for health
beverages as a category is valued at Rs.10, 400
The
Marketing Mix
Product
Strategy
Glaxo brought Complan to India in 1964 and Horlicks is a flagship product from the
marketed it through doctors as a convalescence GlaxoSmithKline (GSK) stable and came into
drink. In those days its tag line “Complan has 23 existence in 1873. Horlicks commands about 54%
Vital Nutrients whereas Milk has 9” had market share in Indian Health Drink industry
established Complan’s superiority over milk on which is valued at around Rs.1300 crores.
nutritional delivery. In 1975 , in order to expand Horlicks positions itself with nutrition. It had a
its user base, Complan made a strategic shift in strong nutritive association for very long period.
its target market and positioning. Complan was GSK decided to extend this nutritive association
now repositioned as an ideal nutritional and the communication was changed from
supplement for growing children. “Great Family Nourisher” to “Pleasurable Family
In 1994, Heinz bought out Complan from Glaxo. Nourisher”. GSK began to introduce different
Given Heinz’s commitment to quality and
leadership, Complan has evolved into flavors (Chocolate, Vanilla, and Elaichi) in
India’s premium health beverage for an attempt to create excitement in the
growing children. The brand’s customers. The packaging of the bottle
positioning as the ‘Drink for growing was also changed in order to give the
children’ is its greatest strengths today. bottle a more attractive look. Horlicks
Complan’s current also decided to tap the market of the
consumer base runs aged with the introduction
into hundreds of
thousands of of Horlicks lite. The
households across brand was further
the country. strengthened by the
launch of Horlicks
and Junior Horlicks
Pricing
Strategy
Both Complan & Horlicks are available in
different flavors in different package sizes
with different price points. Following are
some of the most popular Complan
flavors and their packing sizes and the
price points at which they are sold.
Promotion
Strategy
The
Brand
War
The brief to the agency was: The target
group (TG) is a savvy audience with a
short span of attention. So, step into their
issues, get into their skin and raise their
issues and concerns.
The TVC was supported by print, radio

and on-ground activities and extended to
Horlicks' school programme, Whiz Kids
Contest. On the digital platform, a site,
activityindia.com/horlicks, has been
launched through which kids can
communicate about the things they want
to change.
For a short while, Horlicks has also come

up with a packaging innovation in which
the Horlicks bottle will be placed inside a
graphical can to attract attention at retail
stores.
Place
(Channels of distribution)
Horlicks 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 re-
launched 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 isn't 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.
Positioning is the act of designing the company’s offering and image to occupy a
distinctive place in the mind of the target market. The end result of positioning is the
successful creation of customer focused value proposition cogent reason why target
market should buy the product. Positioning is what you do to the mind of the prospect.
That is you position the product in the minds of the prospect.
Glaxo reviewed the positioning and studied the health drinks market. Though Complan
was superior in many respects to other brands, it suffered the image of a sick man’s drink.
Complan believes in more or less Direct Selling kind of distribution channel hence it does
not have many middle man like C&F Agents, Wholesalers, Stockiest etc. this help the
company to charge less to their customer and give them more or less
personalize treatment. And the less no of middlemen also helps to
increase their profit margin.
Thank You

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Elements Of Marketing

galore – health food drinks are fighting to regain stamina as I

industry goes through trying times. After a rapid 10%

The TVC was supported by print, radio

For a short while, Horlicks has also come

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