Consumer Behvior

Nitesh Awasthi

FT14498

Assignment

Consumer Behavior

GLIM

GSK Consumer: Will pushing Horlicks into new categories destroy the brand?

Key Issues

The key issue over here is the aspiration of Zubair Ahmed to transition Horlicks into a megabrand due to its high equity. For GSK, the brand extensions mean more than just moving on from being a health-beverage maker to a company with FMCG aspirations. It signals a higher trajectory in its risk-taking ability. This move is in line with the company's vision to be perceived as more than just a health food drinks company. It’s a concerted effort over the last few years which has been made to enter allied food and beverage categories. Despite commanding more than 70 per cent in the malted health drinks market, with its basket of brands - Boost, Maltova, Horlicks and Viva - the company is hunting for more. And Horlicks, accounted for 85% of the company’s revenue is paving the way.

Horlicks Nutribar and biscuits came first, followed by instant noodles (Horlicks Foodles) last year. Now, the company has decided to enter breakfast foods with a product called Horlicks Oats. The product will be available in shelves in the South, before it is scaled up nationally.

Another issue is there weak distribution channel as compared with the other FMCG companies.

The product targeted at the BOP audience failed as the consumers perceived it as stripped down version of Horlicks, priced lower which was not acceptable to them. To create a new mindset the company must have a focused strategy.

Pricing of Horlicks Oats –

Rs 32 for 200 gm pack, Rs 58 for 400 gm and Rs 125 for 1kg.

So what will the Horlicks brand look like in the years to come?

Horlicks is entering a market which has seen considerable action in the last few years. Players like Kellogg (Heart to Heart oats), Marico (Saffola Oats

How consumer perceived Horlicks Foodles

A brand with an inherently easy to understand positioning is more likely to get its message...