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INFINITY BUSINESS SCHOOL
Submitted to Prof.P.C.Mehra
GlaxoSmithKline Consumer Healthcare Limited (GSKH) is an India-based company that operates mainly in the food processing industry. The Company manufactures and markets malted milk food products, malted food products and biscuits. GSK is the leader in Indian Health Drink Market. It has four brands – • Horlicks,
• Viva and
Glaxo Smith Kline is actually a single-product single-brand company. They acquired Viva and Maltova brands from Jagatjit Industries to become the only company in the white beverage segment. Horlicks is the most dominant player in the category.
According to retail audit unit ORG Marg, GSK with four brands in the category has a 75 percent volume market share (Press Trust of India). The company enjoys market leadership in 90,000 Tonnes Indian malted milk food market.
Horlicks has been a popular brand in India since 1930. It was re-launched in 2003 and included a new look for the brand targeting its core consumer, children up to 14 years old. Traditionally it has been positioned as "The Great Family Nourisher”. New products have been developed specifically for India, catering different segments of the Indian market.
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.
In South India, which is milk deficient, Horlicks is consumed as a substitute to milk. Horlicks was first invented as to substitute milk as baby food. However, in North India, it is consumed as a taste enhancer, although now it’s being recognised as a health food drink proven to make kids ‘taller, stronger and sharper’.
Health Beverages Industry
Health beverages can broadly be divided into two categories, namely 1. Milk food beverages (also known as milk food drinks)
2. Fruit juices
The Rs. 14.4 billion malted foods market is composed of two segments - brown and white. 1. White beverages (such as Horlicks, Viva, Complan) and
2. Brown beverages (such as Bournvita, Maltova, Boost, Milo etc).
While the brown drinks are held to be as energy boosters, the white drinks are regarded as milk substitutes.
The consumption pattern of malted beverages differs according to usage patterns across geographic zones. In the southern and eastern regions white beverages are preferred as substitute for milk. The people in the east prefer for sweetness of taste, the southern region prefers more cocoa based beverages.
All the brands target SEC A and B households with one or more children. The decision- maker is the mother though “pester power” plays a significant role and is the reason for the school level promotions undertaken by all the brands.
“The mother is like a gatekeeper, who allows the entry of the product into the house because of its nutrition values. The child is only the user.” The penetration of malted food in India is a low 6.1 per cent. Over the last few years, there have been a number of attempts to expand the health-beverages business. In view of the tremendous growth potential, many multi-national corporations (MNCs) as well as domestic players have made aggressive investments in this sector, but there are very few players left in this sector in India, today. Malted beverages with nutritional attributes control around 70% of the total market and energy drinks (brown beverages) account for the rest. The Major Players
• GlaxoSmithKline’s Horlicks
• Cadbury's Bournvita
• Nestlé’s Milo
• Heinz's Complan'...