GlaxoSmithKline Consumer Healthcare (GSKCH) is planning to extend its Rs 1,200-crore flagship brand Horlicks into 8-10 new product segments over the next 12-18 months. The FMCG major expects nearly 30% of Horlicks's future growth in India will come from such new products.
The move is aimed towards consolidation of the Horlicks brands as a 'family nourisher' on the Indian turf. India already accounts for two-thirds of the global sales of the Horlicks brand. Hence, much of the current global product development around Horlicks is undertaken by GSK's Indian FMCG arm.
"Going forward, we would like to build the Horlicks brand by extending it into newer products without diluting its positioning as a family nourisher. A team has been formed in India to develop such products. We expect to launch 8-10 such products over the next 12-18 months," GSKCH executive vice president (marketing) Shubhajit Sen told ET.
As part of this strategy, GSKCH on Thursday announced its entry into the Indian toddler biscuit market by launching Junior Horlicks Biscuits. The product has been designed especially for children in the age group of 2-5 years and will be sold in two different SKUs. GSKCH expects nearly Rs 50 crore sales from this product over the next three years.
"At present, the Indian market for toddler biscuit is non-existent. We plan to create it with Junior Horlicks Biscuits. The product has been completely developed in India. This is the third extension of the Horlicks brand this year after the successful launch of cereal bar Horlicks NutriBar and ready-to-drink milkshake Horlicks Chill Dood," said Mr Sen.
GSKCH has also decided to stop the expansion of Horlicks vending machines even though it has already installed 800 such machines across India. "The business model has not been successful. As we tried to maintain the quality of the drink through vending machines, it increased our overhead cost. The model is not scaleable in its current format," said Mr Sen.
Interestingly, around 80% of sales of Horlicks is currently generated from the South and East. The company attributes this to the historical fact that access to quality milk in these two markets was limited. GSKCH now plans to strengthen the nationwide sales of Horlicks and is undertaking a series of consumer awareness programmes in the West and North.
The size of the Indian malted food market is pegged at around Rs 2,000 crore where four of GSKCH's brands - Horlicks, Boost, Maltova and Viva - compete with Bournvita and Complan.
The move is aimed towards consolidation of the Horlicks brands as a 'family nourisher' on the Indian turf. India already accounts for two-thirds of the global sales of the Horlicks brand. Hence, much of the current global product development around Horlicks is undertaken by GSK's Indian FMCG arm.
"Going forward, we would like to build the Horlicks brand by extending it into newer products without diluting its positioning as a family nourisher. A team has been formed in India to develop such products. We expect to launch 8-10 such products over the next 12-18 months," GSKCH executive vice president (marketing) Shubhajit Sen told ET.
As part of this strategy, GSKCH on Thursday announced its entry into the Indian toddler biscuit market by launching Junior Horlicks Biscuits. The product has been designed especially for children in the age group of 2-5 years and will be sold in two different SKUs. GSKCH expects nearly Rs 50 crore sales from this product over the next three years.
"At present, the Indian market for toddler biscuit is non-existent. We plan to create it with Junior Horlicks Biscuits. The product has been completely developed in India. This is the third extension of the Horlicks brand this year after the successful launch of cereal bar Horlicks NutriBar and ready-to-drink milkshake Horlicks Chill Dood," said Mr Sen.
GSKCH has also decided to stop the expansion of Horlicks vending machines even though it has already installed 800 such machines across India. "The business model has not been successful. As we tried to maintain the quality of the drink through vending machines, it increased our overhead cost. The model is not scaleable in its current format," said Mr Sen.
Interestingly, around 80% of sales of Horlicks is currently generated from the South and East. The company attributes this to the historical fact that access to quality milk in these two markets was limited. GSKCH now plans to strengthen the nationwide sales of Horlicks and is undertaking a series of consumer awareness programmes in the West and North.
The size of the Indian malted food market is pegged at around Rs 2,000 crore where four of GSKCH's brands - Horlicks, Boost, Maltova and Viva - compete with Bournvita and Complan.
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