GlaxoSmithKline is trying to introduce newer product categories under the brand umbrella of Horlicks. The reason and vision behind this move is not to be perceived as only a health drink provider. Hence Horlicks is trying very hard to enter in the allied health food and beverage categories. In spite of having more than 70% market share in malted health drinks segment, Horlicks is trying to diverse the product portfolio because, to be alive in the market, they have to be innovative and keep updating their offerings as per consumer needs. Discuss how has Horlicks extended its brand to different product categories and state whether Horlicks has kept maintained, increased or decreased its competitive advantage by ding this?
The Horlicks brand is now a Mega brand in India due to the massive growth of its product line and brand extensions. They have constantly and successfully done product line extension by innovating different kinds of Horlicks drinks to tap all the potential segments. Horlick's journey started back in 1920s has extended its brand into foodles, nutribur, and chill doodh alongside several line extensions such as junior Horlicks, women’s Horlicks, Horlicks flavors, and Horlicks lite. They have already launched Nutribur, Horlicks biscuits, and Foodles. It positioned each of its product line extensions based on the health consciousness concept. Horlicks biscuits are positioned as calcium content which is good for the bone. Nutribur is positioned as a multi-nutrient bar that contains 11 vital nutrients. They position Foodles also on the same lime of concept of health having a good nutrition value. They came up with the “health maker” packet which contains nine essential vitamins with the goodness of rice, wheat, ragi, and corn. Horlicks has currently launched oats products for the breakfast food section.
Horlick’s brand extension has been increased overtime helping them gain a competitive edge by creating a greater sense of loyalty, reaffirming the brand promise and consumer perceptions of the brand, and sustaining the parent (GSK) brand's relevance in its existing category. Extensions can also help to establish a brand's position in new categories.