DM16106

Ankilkumar Sanghvi

Should Horlicks extend to new Categories?

DM16106
Ankilkumar Sanghvi
Have you ever noticed when you or your family member has been prescribe medication then along
with medicine one colourful bottle had been brought which none other than the bottle of assurance
or a jar of long sawn trust called Horlicks. And this is the image about Horlicks which every
consumers carry in their mind.
Introduction
Horlicks came to India with British army. At the end of World war I Indian soldiers appointed in
British Indian army brought Horlicks as dietary supplement and from that time the journey of
Horlicks had been started. In 1940s and 1950s, Horlicks had become family drink.
India, where it has customarily been advertised as The Great Family Nourished, is the biggest
business for Horlicks. The Indian definition for Horlicks is somewhat unique in relation to in most
different nations, as there it is fabricated from bison drain as opposed to bovines milk because of
social concerns. In 2003, the brand experienced a redo which prompted the presentation of new
flavours, for example, vanilla, toffee, chocolate, nectar, and elaichi (cardamom). The present line-up
of flavours incorporate unique (malt), chocolate and elaichi. with the most recent offering Horlicks
Kesar Badaam added as of late to the portfolio, giving a more particular taste offering to the
consumers.
In recent years, there has been an increase in the scope of the brand in India. By pushing it and
targeting newer segment, Horlicks has become an umbrella brand for a wide variety of products
ranging from the flagship malt drink to instant noodles, confectionery and breakfast cereal. Special
formulations of the malted drink for young children (Junior Horlicks), breast-feeding mothers
(Mother's Horlicks), women (Women's Horlicks) and adults (Lite Horlicks) exist. Horlicks biscuits
were launched first in 1993, and an energy bar was being launched in 2009, named Horlicks
NutriBar. Also in late 2009, Foodle, Instant noodles, was launched under the Horlicks umbrella. This
was followed in 2011 by launches of Horlicks Gold, a premium variant of the malt drink (dubbed The
Best Horlicks Ever), and Horlicks Oats, the first breakfast cereal product under the Horlicks brand.
In 2010, Horlicks represented 85% of the 23.06 billion (US$360 million) income of GlaxoSmithKline
in India. It is as of now the most generally expended bundled refreshment in India, after filtered wat
Aahar Abhiyan is a Horlicks activity to build lack of healthy sustenance related mindfulness amongst
moms, families and groups. With the offer of each container of Horlicks, the organization
contributes Re 1 towards the activity. The battle endeavors to bring issues to light about fitting
nourishment amongst moms of youngsters matured between 36 years.
Horlicks Wizkids It's an interschool social and scholarly rivalry for kids from class 1 to 12. The
opposition draws in understudies from India, Pakistan, Sri Lanka, Nepal and Bangladesh. With more
than 30 occasions in the field of expressions, writing, painting and additional curricular exercises,
Horlicks Wizkids is South Asia's biggest interschool holiday giving kids a chance to showcase their
ability on a worldwide platform.

DM16106
Ankilkumar Sanghvi

Brand extensions of Horlicks:

The first brand extension had been by

Horlicks is in the form of biscuits in 1992.
And it was fail. They launched biscuit as a
solid form of a nutritional food but it was
not accepted by Consumer. Primary reason
behind the failure is, according to consumer
Horlicks was consumed with milk and it's
hard to change the perception of consumer.

In 1995 Horlicks launched a

product for children between age
group of one to 3 named "Junior
Horlicks". And in these era the
advertisement of Horlicks is very
faced and the tag line was "Eppang,
Oopang , Jhapang". The messages
are "Taller Stronger and Sharper".
And this campaign become sudden
hit.

But at that time, Indian's mentality is that chocolate flavour is an anti nutritional
ingredient so their tagline like " Horlicks milao
doodh ki Shakti badhao .. aur chocoloaty
banao" didn't work and Horlicks was not
accepted by most of the Indian families. And
according to survey this kind of may degrade
their popularity amongst elder people. Horlicks
was associated with the family as nutrition's
specialist and it is specially connected with
children. This was the second incident in which
they taste failure while increasing their brand
image.

In 1996 Horlicks had introduced one

more variant special for the pregnant women.
They marketed Women's Horlicks that it
contains 26 vital nutrients and it will help to
improve quality and quantity of breast milk.
They mention that it contains DHA and this
will help in growth of child. Women Horlicks
contain specifically all ingredients which is
require for a women like Iron, foliate, calcium
and vitamins. Although they were not
succeeded.

DM16106
Ankilkumar Sanghvi

Horlicks had faced strong competition in western and Northern part of India from
Bournvita and Complan. That's the reason they acquire two companies Viva and
Maltova to fight against competitor. And because of the strong competition its require
for them to come up with new products. They can do brand extension or they can do
Line extension

In 2009, Horlicks did brand extension and introduced

Nutribar, a cereal snack bar. They introduce tree
flavours Nuts 'n Raisins, Choco Cricpy and Cereal 'n
Milk. But butribar had been failed again and the reason
behind it was lower association with the parent brand.
They withdraw it because of the in efficient supply chain
and distribution model and mediocre sales.

In 2009, Horlicks introduced "Foodle" as the

healthy nourishing noodle. They positioned it as a
more nourishing, healthy and filled with vitamin
noodles. Nut the problem behind this product is, it
was positioned as a Healthy noodle but it was made
of maida and which is not healthy but it is bad for
health. And again the product is failed.

Then Horlicks tried to change the perception of consumer by adertiments such as

"Bhaskar ki kahani". They introduce four grain noodles and added nutrition to the
noodle segment. In adds they mentioned "from Horlicks" which had strengthen the
brand association. Even though Foodles failed. Because it's clearly visible that
noodles with nutrition is the worst idea. So it scored low on salience, favourability
and relevance.
But in 2007 Horlicks introduce "Horlicks women" again with special ads which
shows the need of women and how this product is fulfilling it. The ad was focusing on
utilitarian attribute of the product. They also mentioned why women need a different
drink and what is the requirement of their body. Even they used catchy lines such as
"Your Body needs you too". According to the survey 58% of female doesn't like
chocolate flavour in milk so they introduce different variants like Toffee, Vanilla,
Elaichi and Chocolate. And finally Horlicks taste the success by this product and they
witness continuous growth of more than 17% in the years after introduction of this
product.
They introduce so many products in malt food drink categories like Horlicks Lite,
Asha, Horlicks Light chocolates and Horlicks Gold. They also introduce different
flavours like elaichi, Kesar etc. and most of these are famous.
One more product of brand extension was not accepted by consumer and ended up as
failure brand called chil Dood.
Aquafresh in toothpaste category and blackcurrant based fruit drink Ribena were the
examples of a failure, too.

DM16106
Ankilkumar Sanghvi

Impacts of Brand Expansions:

The actual myriad associated with alternatives and also extension associated with
product lines presents quite a job on the picture associated with Horlicks.
Several view this kind of being a dilution associated with manufacturer value and
many whom handle figures, contact it an inability in order to sustain inspiration thus
the particular deal with to utilise a turn in alternatives.
From a brands viewpoint, it is a higher risk getting power, indication associated with
advancement and also continual exploration and also development- a substantial
indicator associated with preserving ones central expertise undamaged.
On the other hand, as soon as thought of from the perception of an customer,
introduction associated with plenty of versions underneath the Parent manufacturer is
surely an indicator associated with confusion.
So much associated with extension commonly does weaken the objective of a brand
where in the little one merchandise pushes a lot more from the Parent merchandise
and gives back not much.
For instance, regarding Foodles, it had been a particular scenario associated with
impacting on the particular make of Horlicks.
Horlicks offers for a long time recently been known to be elevated in health written
content and also the kick off in this manufacturer featuring a large Maida written
content travelled solely from the products function and also guarantee.
Foodles took out medical value associated with Horlicks and also offered back the
particular taste value on the mommy manufacturer.
The actual apparent issue which problems the particular brands picture is is taste a
lot more critical as compared to wellness? Specially coming from a manufacturer
which assures shades religion given that ages.
Horlicks offers significantly small sexual penetration in Northern and also American
areas on Indian and also which has been hawaii for nearly 50 % of the particular
millennium.
Not leverage ones central expertise seriously isn't a wise action. And also the similar
might be explained pertaining to Horlicks which hasnt worked well or perhaps spent
to boost their market place share in the places mentioned above.
They're the particular places where at this time there supply techniques have been
minimal and also Horlicks would are a hit.
Also farm sexual penetration is associated with pivotal importance in order to GSK
because niche share pertaining to farm portion is just 30%.
The actual farm portion carries a enormous probable in Indian because important
chuck associated with Indian is catagorized underneath the farm category.
Except if GSK moves much deeper into farm areas, their recent state may just be a
situation where it makes a lot more alternatives as compared to shoppers need or
perhaps may take.
It is always easier to acquire primary market place but extension is what's difficult. It
is specifically important for the particular Indian shoppers seeing that Indian shoppers
today are getting to be a delicate shoppers.
Horlicks Asha that has been unveiled to the Beneath the particular low income range
BOP portion reasons dissonance in the thoughts associated with shoppers because
merchandise supplied ended up being of an poor quality.
This became unlike customer anticipation, whom actually in the farm category have
been wanting to spend a lot more for the good quality associated with merchandise.

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Ankilkumar Sanghvi

That clearly suggests which morphing and also tweaking the product or service with
no truly offering central ideals into it would likely disengage the customer from
implementing the product or service.
Related connection between malfunction have been affecting the particular situations
associated with products unveiled through GSK.
Several products have been unveiled a lot onward time and many still did not give
worth on the customer.
Even though some have been unveiled seeing that alternatives, a number of couldnt
actually appeal to shoppers whom had a lot more proclivity to your father or mother
manufacturer and also any fine-tune in it ended up being affiliated being a important
transfer.
That grew to become a concern associated with resolve pertaining to Horlicks seeing
that both their energy and also weak spot lay down in the belief that it had been a malt
structured ingest.

What could be done and what could have been avoided:

Horlicks has become the most honest brand names during the past 1 / 2 millennium
regarding Of India.
Client blindly connect Horlicks with excellent, health and eating routine. This has
been recently one of the greatest strength for Horlicks.
GSK would some sort of deep advertising study to get client information and came
out using the effects that ladies within Of India have been ignored and the common
nutritionary content material ended up being very much under the actual worldwide
common.
As a result Horlicks launched Ladies Horlicks within '08, also it started to be some
sort of blockbuster merchandise, obviously helped by simply information that it's
increasing on 60-65 percent per year.
Likewise, Horlicks provides launched a number number of solutions and alternatives
and contains definitely harnessed the actual possible regarding manufacturer exts.
What makes an item including Horlicks water down it is present market place by
simply introducing various alternatives?
A number of the good reasons could possibly be:
The health impression directly passes through the mother or father
manufacturer. The product looks forward to great development underneath
outdoor patio umbrella advertising and marketing along with consumers
derive exactly the same believe in through the child item.
Launching a fresh manufacturer pertaining to GSK would be a new investment
decision totally covering almost all aspects of new solution advancement. In
such cases, manufacturer extendable is usually a extremely achievable
circumstance where with both father or mother as well as child solution enjoy
a symbiotic romantic relationship.

Key take away from the Horlicks case marketing managers can be:

Brand expansion is effective merely when there is a robust relationship on the

completely new Product having Parent solution. Foodles has been a unhealthy Product
and also Horlicks has been famous as healthy brand. Their bond has been
straightforward and also brand name relationship has been a poor selection however.

DM16106
Ankilkumar Sanghvi

Horlicks is used to drink with milk and this perception you won't be able to eliminate
from consumer's mind and this could be the reason of failure for nutra bar and
biscuits. On the other hand biscuits, when it was used as the perpose of taste then it
made grand success, the example is Britannia. In short, do not shift from your core
value and dilute the customer based brand equity.
Too many options merely decrease the actual consumers decision making capacity.
Horlicks features possibly entered into options similar to Horlicks Gold. Native Indian
purchaser is a value hypersensitive purchaser plus the reasoning pertaining to
customers to repay far more doesnt seem to be justified while ordinary Horlicks has
become the actual mum or dad and many trustworthy brand name.

Conclusion
Brands tend to age if they are not nurtured properly. Horlicks had tested the test of times till
1990 when it hadnt introduced much of variants and hadnt worked much on product and
brand extension. While on one hand, Horlicks has been successful in strengthening its core
brand values of health by introducing products like Horlicks Women, it has failed to extend
its brand image to other products like biscuits and nutri bars. Horlicks had almost a decade of
no innovation after which it started to focus on innovation and reduced the risk aversion
processes. It came forward as a bold brand that was ready to try new products and introduce
risk by extend its existing core values into new product lines. Some of them have been
successful due to their strong association with parent brand. But some of them were a big
failure and that was because they lacked strong association with brand, had little congruence
and that didnt resonate with Horlicks consistency and cohesiveness of brand image. An
unsuccessful brand extension harms the core brand image by creating undesirable
associations and the case of Horlicks can be seen as a good example for marketing managers
who would like to create a strong and positive customer based brand equity. Extension so far
has been a mixed bag for Horlicks, but using its core competency will be the best way
forward.