CLIM/010

IBS Center for Management Research

Horlicks’ Repositioning Strategies

This caselet was written by D.G. Prasad, under the direction of Sanjib Dutta, IBS Center
for Management Research. Caselets are intended to be used as a basis for class
discussion rather than to illustrate either effective or ineffective handling of a management
situation.

License to use for IBS Bengaluru

Prof. Harishankar M
Course: Brand Management

 2005, IBS Center for Management Research. All rights reserved.

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 CLIM/010

Horlicks’ Repositioning Strategies

Horlicks, a popular brand in the health drinks category, was invented by James
Horlicks and his brother William Horlicks in 1873. In 1969, the Horlicks brand was
sold by British Horlicks Business to the Beecham Group (which became the
SmithKline Beecham Consumer Health Care Company in 1989). In December 2000,
SmithKline Beecham Consumer Health Care Company merged with Glaxo to form
GlaxoSmithKline Beecham (GSK). The success of the Horlicks brand over the years
can be attributed to the company’s ability to constantly rejuvenate the product in
keeping with the consumer requirements. Over the years, Horlicks was extended to
new market segments, appealing to different age groups through the launch of new
variants.
Until the 1960s, Horlicks was positioned as a drink for the elderly and the sick,
helping in quick recovery. This created a strong feeling and positioning in the minds
of consumers that the drink was meant only for the sick and the old. In order to
change this image, SmithKline Consumer Health Care decided to reposition the brand
as a nourishment drink for the youth. In the 1970s, Horlicks was positioned as ‘The
Great Nourisher’ and this contributed to an increase in the sales of the product. Over a
period, Horlicks was introduced in various improved versions to suit the changing
tastes of consumers. In 2002, Horlicks was once again repositioned as drink that
could build resistance in kids, as the immunity level of children was a major concern
of mothers.

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 Horlicks’ Repositioning Strategies

The company also came up with various sub-brands to cater to the needs of various
segments in the market. It also planned to launch more products in India from its
global product portfolio. It launched Junior Horlicks and three-in-one sachets for
children that contained a combination of nutrients, which helped in building the
immunity. In 2003, Junior Horlicks was relaunched with a different positioning
strategy. The product claimed to contain nutrients that would help in the development
of children's brains and nervous systems. The re-launch of New Junior Horlicks was
backed by a new ad campaign. Other promotional activities were also designed to
strengthen the new positioning strategy. Sucheta Govil, General Manager of
Nutritional Health Care, stated, “New Junior Horlicks is specially formulated with
extra nutrients that help build the internal resistance of 1-2-3 year olds and thus helps
them in their natural and uninterrupted growth.”1
In a research conducted by the company, it was found out that children had a strong
dislike for Horlicks due to its old-fashioned image. Therefore, the company decided
to re-launch the brand completely in July 2003. The re-launch was complemented by
improvements in the product, introduction of new flavors, new packaging and a new
communication campaign. The re-launched brand specifically targeted children below
the age of 14. As part of this re-launch exercise, the company brought out Horlicks in
three flavors — vanilla, honey, and chocolate — besides the regular malt. The
packaging was also designed to match the contemporary outlook of the present day
customers. The new packaging was designed in bright blue and orange. The new
version of Horlicks was promoted through the ‘Pran chonchol’ campaign, which
brought about a tremendous change in the brand’s personality from being a serious,
do-good, earnest personality to a spirited, engaging, and fun-loving character.
Anindya Dasgupta, Marketing Manager of GlaxoSmithKline, said, “We are
contemporarising the brand. Traditionally Horlicks as a brand spoke to mothers and
other adults. Our new campaign is expected to convert many children (eight to 14
years) in favor of Horlicks. The theme of our commercials is based on kids with a
positive attitude. And children in general like other kids with a positive attitude.”2

1
Junior Horlicks relaunched, http://www.chennaionline.com/cityfeature/newlaunches/glaxo.asp
2
Horlicks gets new flavours, Venkatachari Jagannathan, 10 July 2003, http://www.domain-
b.com/companies/companies_g/glaxosmithkline/20030710_new_flavours.htm

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 Horlicks’ Repositioning Strategies

In 2004, GlaxoSmithKline launched Horlicks Light. The product was aimed at the
health conscious young female consumer segment. Horlicks Light was a low fat drink
that contained the original malt flavor and was rich in vitamins, protein, and calcium.
The launch of Horlicks Light was supported by an extensive promotional campaign
including print, point-of-sale, in-store displays, product sampling, and coupons. In
June 2004, the company launched a health drink for pregnant and lactating mothers
under the brand name Mother's Horlicks.
The company introduced tetra packs of Horlicks for the out-of-home consumers. The
company took care in choosing its positioning strategies. It always tried to appeal to
the right segment in an improvised way as per the changing tastes of the people. Of
late, the advertisements of the company have been targeted directly at children
instead of mothers, with supporting communication and promotional strategies. With
different promotional strategies, the company has succeeded in repositioning Horlicks
as a children’s drink.

Questions for Discussion:

1. Discuss the positioning strategies followed by GlaxoSmithKline Beecham for one
of its successful brands ‘Horlicks’.
2. Horlicks has been extended to new market segments through the launch of new
variants appealing to all age groups. Discuss.

Additional Readings / Reference Material:

1. Junior Horlicks relaunched,
http://www.chennaionline.com/cityfeature/newlaunches/glaxo.asp
2. Venkatachari Jagannathan, “Horlicks gets new flavours”, 10 July 2003,
http://www.domain-
b.com/companies/companies_g/glaxosmithkline/20030710_new_flavours.htm
3. “Horlicks”, Answers.com