introduction horlicks complan

BRAND WARS

Vs

Introduction

Horlicks :

In India, over 2 billion cups of Horlicks are drunk every year. Horlicks is the only drink clinically proven in India to make kids taller, stronger and sharper. The Horlicks available has been scientifically developed and specifically caters to the nutritional needs of the Indian diet. Horlicks alone enjoys 50% of the Health Food Drinks market. Horlicks has been a popular brand in India since 1930.Re-launched in 2003; included a new look for the brand targeting its core consumer, children up to 14 years old. New products have been developed specifically for India, catering different segments of the Indian market. Successive generations of Indians over the past half-century have consumed it – stirred in a glass of hot milk or water – and become totally confirmed believers in Horlicks’s virtues of good health and nutrition. This is only to be expected for a brand that consumers have been using since the 1930s. Today, Horlicks is one of the best known brands in the health food category. It owes its success to a strong brand heritage, commitment to quality, focused communication, a strong distribution network and a deep understanding of consumer needs.

Health food drinks provide nourishment for the family, particularly growing children and serve as energy providers for adults. The market for malted milk powders in India is huge as the product is widely used as a nutrition and energy supplement by children and adults. The size of the market is estimated at Rs. 10,170 million. Horlicks occupies the leading position with over 50% shares of the market

Complan :When British soldiers landed on the beaches of Normandy during World War II, they were carrying more than just ammunition for firepower. They carried with them a powdered nutritional supplement called Complan which had been introduced by Glaxo. Glaxo brought Complan to India in 1964 and marketed it through doctors as a convalescence drink. After it went OTC in 1969, Complan continued to be perceived as

an ethical product. In those days its tag line “Complan has 23 Vital Nutrients whereas Milk has 9” had established Complan’s superiority over milk on nutritional delivery. The brands’ next major milestone was reached in 1975 when, in order to expand its user base, Complan made a strategic shift in its target market and positioning. Complan was now repositioned as an ideal nutritional supplement for growing children. In 1994, Heinz bought out Complan from Glaxo. Given Heinz’s commitment to quality and leadership, Complan has evolved into India’s premium health beverage 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 are its greatest strengths today. Complan’s current consumer base runs into hundreds of thousands of households across the country. It is retailed through more than 225,000 outlets and has an impressive 16.8% share across the entire MFD category Apart from India, Complan is also available in the UK, Australia, Venezuela, Nepal and Sri Lanka.

Enriched with 23 vital nutrients in balanced proportion Complan is an ideal nutritional supplement for children in its target segment of four to fourteen years. It is Heinz’s constant endeavor to upgrade Complan’s formulation as per the latest developments in nutritional sciences and the changing requirements of growing children. Complan – the Complete Planned Food in a Drink – is formulated as per the World Health Organization (WHO) guidelines suggested for growing children.

Target audienceHorlicks:The Great Family Nourisher' Horlicks is the leading Health Food Drink in India and as the ‘Most Trusted Drinks Brand' (Economics Times Survey, 2004) in India, enjoys more than half of the Health Food Drink market. Although it has been a popular brand in the Indian market since the 1930s, Horlicks underwent a revamp in 2003 to further increase its relevance. The modern & contemporary Horlicks offers 'pleasurable nourishment' with a delicious range of flavors including Vanilla, Toffee, Elaichi and Chocolate. With revitalized packaging synergistic with the new brand personality, it is a favorite with both mothers for its nourishment and kids for its great taste and variety. Horlicks is sold in a number of

countries across the world. In different countries, the product has different formulations in order to cater to varying consumer segments and serve different consumer needs In India, the Horlicks available has been scientifically developed and specifically caters to the nutritional needs of the Indian diet. It helps meet the requirements of essential nutrients in children, such as iron and vitamins that aid iron absorption. From the available data, it has been seen that children in India are not getting enough of these vitamins and minerals from their daily diet. Research shows that these nutrients are very important for school age children for their attention, concentration and memory as well as their physical performance and growth. Thus, Horlicks is a beneficial supplement for children to aid not only their growth, but also enhanced attention and concentration.

Earlier Horlicks believed, white drinks are for the entire family in contrast to the browns, whose prime target audience is children. This is probably because whites–whose growth rate is faster than the browns–have the added advantage of being perceived as food which enhances the healthy image of those who are recovering. But gradually they realized that they have to focus on one segment of market that is children. Horlicks is now positioned as a pleasurable nourishment drink aimed at children between the age group of 8 -14. Nowadays children have tremendous influence on the things purchased for the family and therefore we want children to prefer Horlicks as a pleasurable nourishment drink. While all the action will be in the general Horlicks segment, the focus of Junior Horlicks (target segment: kids between one and three) will continue to remain the same.

Complan :Complan mainly target growing children because children need adequate and balanced nutrition to help them achieve their maximum growth potential. Complan with 23 vital nutrients in planned proportions is the ideal food supplement during these crucial years. Other than children they also target other person like.  Active people, which needsn the extra nourishment for traveling & sporting activities. Busy Executives , who now & then have to skip their meal due to increase work load. Pregnant Women & Lactating Mothers, because they require nutrients during these vital periods.

Complan is ideal for growing children, busy adults (especially housewives and rushed office-goers), expectant and nursing mother, elderly people and athletes. It had long been surmised that the actual

users of COMPLAN were predominantly children of school-going age. Later research corroborated this belief. It was found that close to half of the actual users of COMPLAN were of school-going age. This was a far younger age profile than for other malted milk beverages. It is noteworthy that with sales rapidly increasing, the next repositioning exercise brought about a much more focused and narrower positioning by target user, instead of broadening its user positioning. This calls for a great degree of strategic clarity and courage.

COMPLAN was positioned single-mindedly for ‘growing children’ in 1981.But, with hindsight, you may wish to go more deeply into the reasons for this sharply focused positioning for growing children and apparent indifference to other user, such as the elderly and the busy, active adult. However, that COMPLAN was consistently advertised to the medical profession through ads such as in . Also note that a much higher percentage of COMPLAN sales came from chemists as compared to other malted milk drinks.

PriceComplan is priced higher than other competitors because of its nutritional contents and there is no compromise on the quality of the product and price is given a second thought when it comes to health.

COMPLAN

Weight(gm) Flavours (Rs)

Chocolate Plain Mango Chocolate

200 68 55 60 75

500 140 120 - 150

1000 245 - - -

To enable consumers choose different flavours, Horlicks is now available in Regular,Chocolate,Creamy,Vanilla and Honey Buzz varieties in a new package.  Horlicks drinks provide the following

essential nutrients:  Proteins, Carbohydrate, Fat, Vitamin A, Niacin, Vitamin B1, VitaminB12, Vitamin E, Vitamin B6, and Iron & Calcium

HORLICKS

Weight(gm)

Flavours (Rs)

Elaichi Chocolate Honey buzz

Vanilla

Jar Refill pack

Jar Refill pack

Jar Jar

200 57 - 57 - - -500 108 103 108 103 108 1081000 199 189 - - - -

Product positioning Horlicks :

It was first patented the malt-based milk drink as baby food. It was a substitute of ―Milk as Baby Food. In India, It is popularly known as ―Mother‘s Horlicks.

From a drink that was supposed to promote a good night‘s sleep to one that can help children grow taller, stronger and sharper, Horlicks has come a long way.

Simultaneously, its brand image, too, has changed—from a fuddy-duddy, boring health drink recommended by doctors to something that is nourishing, and enjoyable.

It was initially introduced both a substitute & an additive to milk and it was initially positioned itself as ―food for convalescing‖ & a nutrient supplement for kids onlyRepositioning-

From a boring nutritional drink, GSK positioned Horlicks as `pleasurable nourishment', by launching it in vanilla, chocolate and honey variants.

It introduced other variants like - Jr. Horlicks, Women‘s Horlicks, Mother Horlicks & Horlicks Lite to reposition itself from the children segment to other segment for consumption.

GSK launched Chill Dood an instant milkshake in the dairy based product market.

The brand today talks to every member of the family rather than the entire family. The idea is to address all age groups.

The Horlicks visual identity has undergone a complete makeover. The packaging of its various segments of products was designed according to the target consumers. The brand strengthens its market position with the power of advertisement and distribution network.

Complan :

Complan proclaims itself as Complan for growth´ and has the taglines: a Complete Planned Food´ and³Ideal for Growing children´.

Complan has protein content that is 100milk protein which is one of the best proteins for growth.

Complan claims to be ideal for the child’s physical and mental development.

Complan has been successful in translating its clams of being a nutritional drink, of being a complete planned food into sales growth

Complan entered to India in 1964 and marketed it through doctors as a convalescence drink. In those days its tag line Complan has 23Vital Nutrients whereas Milk has 9 had established Complan’s superiority over milk on nutritional delivery. Repositioning-

In 1975 , in order to expand its user base, Complan made a strategic shift inits target market and positioning.

Complan was now repositioned as an ideal nutritional supplement for growing children .

In 1994, Heinz bought out Complan from Glaxo. Given Heinz’s commitment to quality and leadership, Complan has evolved into India’s premium health beverage for growing children.

The brand’s positioning as the Drink for growing children is its greatest strengths today. Complan’s current consumer base runs into hundreds of  thousandsof households across the countries

Marketing strategy Horlicks :

It was really a surprise to everyone when horlicks re-positioned itself. Initially, horlicks was just a nutritional drink positioned only for the sick patients and mal nutritioned. But later GSK trend change among the people towards health concern and people were searching for something nutritional and tastier for their children and hence it repositioned itself as “complete nutritional drink”. With the slogan “happong , oppang , chappong” it captivated the childrens mind. Sensing its competitors with complan and it again improved itself to “Taller, Stronger, Sharper. “. This made horlicks really a leader in the market and its sales grown rapidly. Before other competitors could react it went ahead. It also affected sales of boost but still both are from same company they make sure that boost also gets sales in the market. Considering the diabetes patients they also extended to “horlicks lite”. For kids they added more nutrients and designed as “1-2-3 junior horlicks”. For mother they changed with improved nutrients as “Mother horlicks”. Being a nutritional drink they were able to extend in the same category. Thus built a strong brand through brilliant marketing. They also consistently came up with good series of AD campaign. Every AD was kindling the target audience. It spoke both to the mother and the children that was the secret in their promotion. Every level of emotional and comparison ADS were made to get the market leader position in the market. Every advertisement had group of children and mother convincing more to drink in the people mind. During every extension ads were made differently and carefully differentiated such that every extension sustains in the market. JWT (J WALTER THOMPSON) ad agency was responsible for their successful promotion

Horlicks definitely hold a shelf space because customers expect the product to be available as it is an essential product in their monthly grocery list. Since Horlicks has extended into various categories as Junior Horlicks, Mother’s Horlicks, Horlicks Lite they definitely require a store space.

Attracting new customers:

As their campaigning right from its inception of explaining its features to till date with Junior Horlicks , Mother’s Horlicks and Horlicks Lite providing the nutritious benefits it creates a strong awareness thereby pulling in new customers .

The reassurance of the brand is achieved by the existing customers, since it holds a better market share and strong awareness. Time to respond to competitive threats: GSK Horlicks is one of the brand which comes up with innovative product line they were able to withstand threats at each stage of their growth.

Complan :

In its very first public appearance, Complan adopted the strategy of `Positioning by Competitor`. It positioned itself directly against milk. `Your body needs 23 vital food’, said the first ad. `Milk gives 9 Complan gives all 23` The semi-clinical look of the advertising which reflects the transition from ethical to consumer promotion. The copy gives considerable factual information about these 23 nutrients and how they affect bodily functions; e.g. protein to build up and repair tissues and cells; calcium for healthy teeth and bones; folic acid to form new blood cells; vitamin A for the eyes, etc. This advertising and the position assumed by the brand created a high degree of awareness and trials. The consumer off take of the brand rose from a volume index of 100 in 1969-70 to 298 in 1973-74. The steady growth also reflected that a considerable number who tried the brand stuck to it and repeatedly purchased it. Despite the success of this strategy, there was cause for rethinking. What really did this positioning imply? Taken to its logical extreme. It meant that COMPLAN should Displace milk from the dining table. In India, particularly, milk has a unique position in the consumer’s psyche. It is regarded as the source of life, growth and health; it is almost an object of reverence as a necessary ingredient in many religious rituals. Moreover, with Operation Flood well under way , milk, in the form of powder and also as fresh milk from the Mother Dairies, was being given a great deal of marketing and advertising support. Fighting milk would not be a cakewalk. And, as a socially aware corporate citizen, Glaxo wondered whether it should be in the business of `knocking` milk formed such a vital part of the nation’s health and nourishment plans. Very wisely, this positioning strategy for COMPLAN was abandoned. In fact, here was a classic instance of looking afresh at a key positioning decision: which product class are we competing in? If not milk, then the logical product class definition had to be other malted milk-foods like HORLICKS, VIVA, and BOURNVITA. This can also be described as the health beverage product class. COMPLAN strategy went through a radical change. It was now decided to position it-not by competitor-but by target user and usage occasion.

COMPLAN’S position could now be stated as follows: COMPLAN is ideal for totally fulfilling the nourishment needs of people who

cannot or do not eat enough because only COMPLAN is complete with 23 vital foods for the body. (1975-76) is an unambiguous example of advertising designed to serve a clear-cut positioning strategy. The cinema commercial (TV became available at a later data) dramatized these usage occasions more vividly: the problem eater child tossing his food aside; the husband rushing off with his uneaten breakfast on the table; the convalescing elder who has no appetite for food; the harassed housewife herself. In such situations, to what could the worried mother and housewife turn? What health drink would assure her of all the nourishment that was needed in these special, but everyday situations? The ads clearly presented COMPLAN as a product which was unique and COMPLAN in its nourishment value. It was no longer ‘too much of a good thing’ but the only brand with enough good things to give her the reassurance she needed. Could this position be adequately substituted by any other brand? No way. Not only COMPLAN advertising, but the product itself wore a new and more attractive look. The package design was cleaned up and modernized. The product’s taste was improved through a change in the manufacturing process. New flavours were introduced: chocolate, because of its universal popularity, especially with the young; Cardamom saffron, a typically Indian flavour with images of health and goodness; the strawberry flavour was reserved for later introduction-as a delicious, iced drink. And the price was increased.

Product overviewWhy HORLICKS is necessary for life?

It improves the immune system of your body.

Helps in building resistance power

Helps in improving Stamina

Provides nutrition for growing up.

Prevention is better than cure. Helps in maintaining your health

It Helps children growing up in a healthier way

HORLICKS improves your resistance level and stamina helping u live a healthier life protection strategy.

It was always an ideal health supplement.

Supports mental & physical development.

Why go for COMPLAN ?

It is specifically designed to provide balanced nourishment

It provides 23 vitamins and minerals for health and vitality

It is a rich source of antioxidant vitamins A, C and E

It contains calcium for healthy, strong bones

It has iron to help maintain physical stamina, strength and mental alertness

It provides high-quality protein

It is gluten-free and suitable for vegetarians

Its balanced goodness contains everything your body needs to recover fast from illness. Complan is recommended by healthcare professionals.

Promotion strategyHorlicks :Horlicks is a flagship product from the Glaxo Smith Kline (GSK) stable and came into existence in1873. Horlicks commands about 54% market share in Indian Health Drink industry which is valued at around Rs.1300 crores. Horlicks positions itself with nutrition. It had a strong nutritive association for very long period.GSK decided to extend

this nutritive association and the communication was changed from Family Nourisher to Pleasurable Family Nourisher. GSK began to introduce different flavors (Chocolate, Vanilla, and Elaichi) in an attempt to create excitement in the customers. The packaging of the bottle was also changed in order to give the bottle a more attractive look. Horlicks also decided to tap the market of the aged with the introduction of Horlicks lite. The brand was further restrengthened by the launch of Horlicks and Junior Horlicks. . The TV commercial had children going around the town, cheering ”Epang Opang Jhapang” a chant without any meaning. However, the TVC showed their mothers deciding on the choice of health drink.Now, Horlicks has gone a step further in promising not only height, but a stronger body and a sharper mind. Horlicks wants the children to decide on their healthdrink. The new campaign for Horlicks gives the kidmotto: 'Badlo Apne Bachpan ka Size'. The new TVC has Darsheel Safary. Safary and his friends are on a mission to change things they don't like and question age old practices around them. On the other hand the Horlicks (GSK) claimed: Children have become taller, stronger and sharper . The Horlicks challenge now proven. 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.

Complan :

Complan is a very old highly nutritional drink in Indian Market and may be one of the first in this category. Hence it doesn’t require an aggressive kind of promotion techniques. Hence complan is know concentrating on sponsorship of various sports related events and also introducing various schemes such as window display scheme etc.

The various sports event it sponsored are: Complan Junior Squash Open 2002, sponsored by Heinz India Private Limited. The Complan junior Open may be the highest junior prize money tournament in India. The total value of price distributed was Rs. 2.25 lakhs. Heinz India has launched the Complan Under-15 National Cricket Talent

Search, in which a galaxy of former India captains like Polly Umrigar, Nari Contractor, Chandu Borde, Hanumanth Singh, Bishen Singh Bedi and former Australian captain Bob Simpson, are involved. Young under-15 schoolboys from all the five zones across the country — North, South, East, West and Central — are being put through a rigorous regimen on the fundamentals of cricket.

The new tvc of complan showed the mother who uses Complan says that her kid has grown up by an inch. The mother who uses ordinary health drink decides to change over to complan. And other offers like Flying Disc free with every 500gm of Complan. This ad can give short term hike in sales. This ad shows that Complan’s desperate attempt to increase the sales.

Refill packs instead of Jar were introduced.

Former Indian cricketer Sanjay Manjrekar for Complan( Early 90’s).This is the only time when Complan used a celebrity.

Horlicks vs complan : The ad war

In late 2008, a legal battle broke out between GlaxoSmithKline Consumer Healthcare (GSK) and Heinz India (Heinz) over the advertisements of their respective health drinks Horlicks and Complan (Refer to Exhibit I for a snapshot of GSK and Heinz).

The advertisements talked about how their respective brand was better than the other and showed the competitor's product in bad light when compared to the company's products.

The ad goes like this :

Scene outside store. Mother and adoloscent child duo - 2 pairs; one Mother's bag showing a refill pack of Complan and the other Mother's bag showing a Horlicks bottle (Both very very CLEARLY - no pixelations, no attempt to hide whatsoever).

The spot goes on with the Complan boy saying, my health drink has 23 nutrients, how much does yours have? To which the Horlicks boy's answer is 23 nutrients and also something (eludes me, at the moment).

The Complan boy goes on to say, Mine makes me Taller' with the show of measuring up the height on one's shoulder at the Complan ads, the Horlicks boy replies, mine makes me Taller, Stronger & Sharper'.

The Complan boy then says, mine costs Rs.170 and the Horlicks boy replies, mine costs only Rs.131. The Complan boy then jubilantly says, Mummy, In this case we are higher right with the Mother making a grimace of I've-been-had kind of look

The Ad ends with a couple of people carrying a Horlicks billboard with the 3 tenets of Taller, Stronger & Sharper clearly written in the background.

Horlicks and Complan are the common names of Indian households. These two brands have a decent market share in the Health Beverage market. These two brands are involved in aggressive advertising in print and television over three decades. No doubt both the brands are a grand success in the Indian market but our study aims in disclosing the advertising strategies of both the brands and how they positioned themselves in the minds of the consumers.

The war between these two brands started in the 60’s and is continuing till date. Both the brands have changed a lot in the past 4 decades.

Horlicks vs. Complan:

After 2000….

Horlicks gaining massive lead in the market. Horlicks launched Horlicks Lite and Mother’s Horlicks. Horlick’s Light was positioned for adults( diabetic patients) and Mother’s Horlicks for pregnant woman. In this mean time Complan launched Complan Ectacy which failed. No doctor’s prescription in the ad. This is because the literacy level of the people has increased and people know what they need.

Today Horlicks has a commanding market share in Health Beverage segment. It has got over 50% market share. Complan on the other hand failed to capitalize its initial success. It is growing at a lesser rate when compared to Horlicks

Range of productsCOMPLAN is focused on varieties of products:

HORLICKS targeted for 5 different products:

Complan muesli

Complan for growth

Complan biscuits

Complan for nutri gro

Complan Shake

Complan for memory Mother's Horlicks

Horlicks Lite

Women Horlicks

Horlicks Ninja

Horlicks nutri bar

Junior Horlicks

The Fight for the Indian Health Drink Market Turns

UglyIn late 2008, a legal battle broke out between GlaxoSmithKline Consumer Healthcare (GSK) and Heinz India (Heinz) over the advertisements of their respective health drinks and Complan.

The advertisements talked about how their respective brand was better than the other and showed the competitor's product in bad light when compared to the company's products. In September 2008, Heinz moved the Bombay High Court objecting to advertisements of Horlicks which highlighted the nutritional content and price gap between the two brands, and showed Horlicks as a better and more inexpensive health drink.

Heinz vs GlaxoThis suit which was transferred from the Bombay High Court to the Delhi High Court was filed by Complan (Heinz) against Horlicks. This 30 seconds advertisement placed both the products i.e. Complan & Horlicks next to each other, compares the prices and according to Heinz, passes disparaging comments against the quality and nutritional value of Complan when compared to Horlicks.

Judgment: The law in regards commercial disparagement is crystal clear i.e. a trader can puff up his goods in comparison to his competitors goods but he cannot denigrate or disparage the competitor’s goods while doing so. Therefore while it may be permissible to state that Product A is better than Product B it is not permissible to state that Product B is worse than Product A. There is a plethora of Indian case-law laying down the criteria for ‘puffing’.

In his order, Justice Bhat the The advertisements was held to be in the realm of puffing. Justice Bhat did not agree with Complan’s allegation that the manner of comparison between both products disparaged its own product and held the same for fair.

The interesting part of this judgment is where Justice Bhat draws a distinction between advertisements in different mediums i.e. print and television with the standard of judicial scrutiny being much higher in the latter than in the former. The reason for this according to Justice Bhat is the fact that television advertisements unlike print advertisements make an instant impact across consumer classes and the level of impact of such advertisements on the consumer is much greater than a print advertisement where each word has to be read, analysed and understood. Advertisers therefore will have to read much more carefully when creating comparative advertisements for television

Conclusion So, comparative advertisements are important and beneficial from the consumer’s and producer’s point of view only to the extent it is providing information about the product and making them aware.�Brand wars, when tastefully executed , can be an example of successful advertising. Brands are built on competitive spirit, but there has to be a long term strategy in building brands and the proposition should be unique enough to make it convincing. Else it s a kin to salesmen fighting among each other proving their brand to be better, which ends up actually mocking the product.