Tuesday, November 20, 2007


1. Executive Summary

Advertisement in India
The year was 1973. The advertising industry was the size of only Rs. 150 crore. The billing of the largest agency was about Rs. 8 crore. It was also a time of recession. The advertising industry was in a state best described as chaotic.
Two young mavericks, Diwan Arun Nanda and Ajit Balakrishnan, decided it was just the time to form the agency of their own. Hell-bent on changing the perception that advertising was only a profession that wrote slogans and drew pictures, they quit MCM and they founded Rediffusion.
Young, lean, mean, and even a little arrogant, it grew into an agency that demanded and got treated as an equal. In the following period Rediffusion attracted the finest talent in the country. Rajiv Agarwal, M.B. Parameswaran, V. Shantakumar and Freddie Birdie, to name just a few.
The benchmark for creative excellence in Indian advertising had been set. The Arrogance of youth had come good.
Overview of health drinks market in India

Indian health drinks market is still in its infancy due to the lack of awareness among the population. In value terms, the health food drink market is around Rs 1, 400 crore and in volume terms around 65,000 tonnes per annum. Glaxo Smithkline (GSK) with four brands - Horlicks, Boost, Viva and Maltova - is the leader in Indian health drink market. Complan, Glucon D from Heinz India and Cadbury India's Bournvita are also popular among the Indian health drink brands.
The biggest milestone in television was the Asiad '82 when television turned to color transmission. Bombay Dyeing becomes the first color TV ad .13th Asian Advertising Congress in New Delhi. Media planning gets a boost.





According to retail audit unit ORG Marg, GSK with four brands in the category Horlicks, Boost, Viva and Maltova - has a 69 per cent volume market share and Complan's share is 13 per cent.

No doubt, Horlicks is the leading health drink brands in India since 1930, immediately after its launch in the country. 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. Boost is health food drink (HFD), which is positioned on the energy platform in India. Developed by the Indian R&D team in 1974, and launched in 1975-76 in Kerala, Boost has been one of the fastest growing brands in the Indian GSK Consumer portfolio. Realizing that the energy segment had a huge potential, GSK India launched the brand as the 'Vitaminised Energy Fuel' with a unique chocomalt taste. The brand was launched nationally in the early 80s and has always been targeted at 8-14 year old boys. This is the section of population most enthusiastic about sports, and also with high-energy needs, in India. According to GSK sources, Viva is based on the belief that a good start to the day ensures that rest of it goes well too. New Viva is Vita health, combination of nine essential vitamins (vitamin A, C, D, B1, B2, B6, B12, Niacin and Folic acid), Iron, Phosphorus and Calcium. Viva contains a natural goodness of milk, wheat and malted barley. Maltova, a chocolate health food drink, was acquired from Jagjit Industries in Feb 2000. According to GSK official sources, to kids Maltova is the fun health drink, which is extremely tasty and makes nourishment truly enjoyable and exciting. It was re-launched in June 2002 with an enriched formulation and improved packaging. The re-launched Maltova had active rechargers, a combination of essential vitamins, minerals and carbohydrates. Maltova has again been restaged in November 2004, with an attractive new packaging that connotes an extremely high taste
1993India's only advertising school, MICA (Mudra Institute ofCommunications Ahmedabad), is born

appeal and a sense of fun and excitement.

American foods major H J Heinz's Indian arm Heinz India has a strong market presence with brands like Complan and Glucon-D. Complan contributes 40 per cent to Heinz's sales. Heinz's most profitable products are Complan and Glucon D. Even Glucon D has shed its health tag and repositioned itself as a fun drink. In 2001, Heinz launched a slew of new products - coffee flavored Complan. Complan is ideal for convalescents and the elderly - complete nutrition when you're off your food, pregnant and nursing mothers provides vitamins and minerals necessary for good health, busy people - a satisfying lunchtime snack at home or at work, athletes - who require fluid, carbohydrate and high quality protein without the bulk of solid food.

In early 1990s Cadbury reentered the health drink market with Bournvita, the product of essential vitamins and minerals with memorable campaigns based on the 'Tan ki Shakti, Man ki Shakti'. The next big breakthrough happened in 1999 when the brand was re-launched with a new RDA Balanced Formula. The brand was re-launched with a completely new identity in 2001. Bournvita has a unique taste that combines the goodness of malt and chocolate. It gives the child physical and mental alertness resulting in a healthy body and an active mind. In 2001 Bournvita, complete with new packaging and design was re-launched. A loyalty program, in the form of a Bournvita Nutrition Centre, dedicated to counseling mothers on her child's daily nutritional needs was opened. Cadbury Bournvita has been advertising since the 1970s. In the early years the positioning centered on 'Good upbringing' with Bournvita being an essential building block for children. In the 1980-82 years it was 'Goodness that grows with you'. By 1987, it had become the more aggressive 'Brought up right, Bournvita bright'. In the last decade of the 20th Century, competition between children was becoming intense and Bournvita was there with its 'Extra energy to stay ahead'. In the 1992-95 period 'Shakti har din ke champion ki' (Energy for the everyday champion) was its payoff line. In 2000, 'Bournvita poshan, sahi poshan' (Bournvita nutrition, right nutrition) encouraged consumption. In the following year 'Confidence kuch kar dikhane ka' (Confidence to achieve) became the reason to buy. The current Cadbury Bournvita positioning suggests that it contains specific ingredients that augment stamina and concentration in children.

























2. Introduction

Advertising is a fascinating subject-“the most fun you can have with your pants on”, as Jerry Della Femina once said.

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.























3. Aim of the study

The aim of our study is to analyze the various advertising strategies adopted by the two giants of Health Beverage market namely Horlicks and Complan in the Indian market.

· How they positioned and repositioned in various stages.
· Who is ahead and who is lagging behind and the reasons behind it.
· How did advertising boost up their sales?
· Successful repositioning of Horlicks by means of effective ad campaign.
· How did complan position themselves in various stages?
· What is the present stage of the two brands?
· How did advertisement affect the sales?


















4. Theoretical Overview:

4.1 Horlicks:
Quite often, a jar of Horlicks occupies a visible position in Indian kitchens. 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 (Source: AC Nielsen ORG-MARG 2002).
Despite Operation Flood, the durability of the Horlicks brand has remained and has, in fact, been strengthened over the years. This is because the brand has been able to reinvent itself – and the market – and create positioning strategies that are in sync with consumer needs. It has created new segments in the market place by introducing sub-brands aimed at specific consumers. Mothers Horlicks is targeted specifically at pregnant and lactating mothers, while Junior Horlicks has been especially formulated for little children. This strategy has expanded the market and brought new groups into the Horlicks fold.
Most brands in the category, today, offer a variety of flavors to cater to the changing tastes of consumers. Product innovations, too, are the norm as the brand that offers the most value to consumers is likely to win. Horlicks’ enviable brand reputation and continuous product improvement has helped it stay ahead of its competitors.

Achievements
Horlicks has a significant presence in over fifteen countries. Today Horlicks is the best known brand in the health foods category in India. The brand enjoys the trust of generations of Indian mothers and this relationship has been nurtured by the brand by fortifying the product from time to time. In 1998, Horlicks was fortified with Smart Nutrients – a unique combination of vitamins and minerals – intended to imbibe growing children with mental agility and physical fitness. Junior Horlicks was relaunched with extra nutrients to build the immunity of little children. Today, Junior Horlicks contributes 11% to Horlicks’ total sales turnover and has been one of the fastest growing product extensions to the Horlicks brand.
But it isn't just product development that Horlicks has concentrated upon. It has also created new attractive packaging options including jars, refill packs and sachets. Horlicks was the first brand in India to introduce a refill pack option and also the first to shrink-wrap bottles. In a way, there’s a Horlicks pack for every occasion and mood.
History
Some malted barley, pinches of wheat flour with a dash of evaporated milk. That's Horlicks recipe for success. James Horlicks, after whom the brand is named, was a chemist who worked for a company which produced dried infant food. He became ambitious after inventing some recipes of his own. So along with his brother William, they found J and W Horlicks of Chicago.
In the 1870s, babies often fell sick as fresh milk soured quickly without refrigeration. It was this recipe, invented by James and William that saved the day. From then on, their business grew rapidly. It was in 1906 that James returned to Britain and opened the Horlicks Malted Milk Company. Later, their sons sold the brand to SmithKline Beecham, now known as Glaxo SmithKline, (GSK) for £20 million.
Up until the 1960s Horlicks was positioned as an adult restorative drink that gave extra energy, especially during convalescence. The 1970s saw its position shift to ‘The Great Nourisher’. It was in this phase that the brand saliency shot up. Suchitra, the protagonist, epitomized the modern housewife of those days. She was the gatekeeper of her family's health. The medical credentials were reinforced through the depiction of a doctor as the rational voice.
The next decade saw Horlicks face an immense external challenge. Thanks to Operation Flood, there was availability of milk and the raisins détre for buying the brand became weaker. Horlicks fought back. In 1984, Horlicks aimed at growth by growing the consumer base. By 1994, it had created ‘Ideal Horlicks’ – and improved product formulation that also brought back the taste people reminisced about. In 2002, Horlicks was re-launched on the immunity platform.
Product
Put a couple of tablespoons full into a mug. Add warm water or milk and you’re ready to enjoy a drink that’s tasty and nourishing. Add ice cubes, cold milk or water to reconstituted Horlicks and it turns into a delicious, thirst quenching drink on a hot afternoon. That is why Horlicks is considered to be ‘the great nourisher’ for the entire family. The medical credentials and heritage of the brand have reinforced the image of the brand for years.
'Beverages like Horlicks, now don't talk to the mothers but to the kids. Kids are providing an interesting repositioning opportunity'

4.2 J.W.T- the Ad agency for Horlicks

J Walter Thompson is one of the most famous names in advertising history. It was arguably the world's first advertising agency, although it now prefers the term global brand communications. Owned since 1987 by WPP, the company also took steps to brighten up its image in 2005, dropping the J Walter Thompson name in favor of its well used abbreviation JWT and a new logo. Under any name, the agency has an enormous geographical spread, with offices in 150 cities in 86 countries. Advertising Age ranked JWT as the #3 agency network worldwide in 2005 with revenues of $1.3bn


'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. In fact, we have established this through a large clinical trial among school going children.
4.3 GSK History
Merger history
There are four main companies in the history of GSK: Burroughs Wellcome & Company, Glaxo Laboratories, Beecham, and SmithKline and French.
In 1880, Burroughs Wellcome & Company was founded. Wellcome Tropical Researches Laboratories was opened in 1902. McDougall & Robertson Inc. was bought by the Wellcome Company to be more active in animal health. Also, the production center was moved from New York to North Carolina in 1970 and the following year another research center was built.
Drink well……..sleep well…………. Horlicks is positioned as a bed time drink in Uk.

Glaxo was founded in Bunnythorpe, New Zealand. Originally a baby food manufacturer processing local milk into an early baby food by the same name, which was sold in the 1930s under the slogan Glaxo builds bonny babies. Still visible on the main street of Bunnythorpe is a derelict dairy factory (factory for drying and processing cows' milk into powder) with the original Glaxo logo clearly visible, but nothing to indicate that this was the start of a major multinational.
http://video.google.com/videoplay?docid=2733807771045626560
Glaxo became Glaxo Laboratories, and opened new units in London in 1935. Glaxo Laboratories bought two companies called Joseph Nathan and Allen & Hanburys in 1947 and 1958 respectively. After it bought Meyer Laboratories, it started to play an important role in US market. In 1983, Glaxo Inc. moved to Research Triangle Park (US headquarters/research) and Zebulon (US manufacturing) in North Carolina. To be stronger in the medicine market, Burroughs Wellcome and Glaxo, Inc merged in 1995. The new name of the company was GlaxoWellcome. Same year, GlaxoWellcome opened Medicine Research Center in England. Three years later GlaxoWellcome bought Polfa Poznan Company in Poland.
Beecham opened its first factory in St Helens, Lancashire, England for rapid production of medicines in 1859. Beecham Inc. bought companies for various products. It added Lucozade energy drink and Macleans tooth paste to its product chain in 1938. The following year it added hair products for men by buying another company. In 1943 it decided to focus more on improving its research. It built Beecham Research Laboratories and six years later it bought C L Bencard Inc. which specialized in vaccines.


The GSK Headquarters in Brentford.
In 1830, John K. Smith opened its first pharmacy in Philadelphia. Over the years Smith, Kline and Company favorably amalgamated with the French, Richard and Company because of their successful management decisions. It changed its name to Smith Kline & French Laboratories to more focus on researching in 1929. Years later, Smith Kline & French Laboratories opened a new laboratory in Philadelphia; furthermore, it bought a laboratory called Norden Laboratories which was doing research into animal health to benefit their research in various other areas.
To move on this path, Smith Kline & French Laboratories bought Recherche et Industrie Therapeutiques in 1963 to focus on vaccines. The company also wanted to spread all over the world to capture shares in various medicine markets. Because of this, Smith Kline & French Laboratories bought 7 more laboratories in Canada and US six years later. In 1982, it bought Allergan which was making products about eye and skin. It also merged with Beckman Inc. After this merge, it changed its name to SmithKline Beckman.
In 1988, SmithKline Beckman bought its biggest competitor, International Clinical Laboratories, and enlarged by 50%. The next year, Beecham and SmithKline Beckman became one and changed the name of the company to SmithKline Beecham plc. The headquarters of the company were then moved to England. To improve the R&D in US, SmithKline Beecham bought a new research center in 1995. Yet another new research center was opened in New Frontiers Science Park two years later.

Second……GSK is the world’s second largest Health Care company in the world.
The latest merge occurred in 2000 with GlaxoWellcome. Since 2000, the name of the company has been GlaxoSmithKline.

HORLICKS improves your resistance level and stamina helping u live a healthier life.This time Horlicks has taken the negative approach. They speak about protection.Here they emphases the need of the drink.This is a milestone in its advertising strategy. Horlicks was always very close to Health. It was always an ideal health supplement. But it has latch on to the social trend of health via the “Resistance” route, because this aspect of health is more relevant today.
So as a marketer wanting to launch new products, irrespective of whether your brand core is in the health space, remember to connect to a health trend relevant today.

Horlicks- updating always

Horlicks is the market leader in the Rs 1300 crore health drink market in India.

The brand owns more than 50% market share. As discussed in the one of my blogs, the success of the brand lies in its ability to change with the changing consumer.

The new strategy of the company is to extend the brand into a family health drink brand with variants suiting every member of the family i.e. Parents and Kids. The brand initially was aimed at kids aged around 6- 16 years and has been successful in establishing its present there. The brand in 2005 extended itself to a new segment: adults with its Horlicks Lite variant. The Lite boasts about Zero Cholesterol, Zero Added sugar

is clearly aimed at the Parents. The brand also came up with another line extension Junior Horlicks aimed at pre-schoolers. Junior Horlicks claims to have DHA which is Docosahexaenoic Acid which is an Omega-3 fatty acid which will boost the brain power. With these three variants, Horlicks have covered all the life stages ( except infant) of a consumer.
The latest campaign of Lite aims at the lady in the house and reminds her to keep her husband active with Horlicks lite..
To promote the Junior Horlicks, the brand has come out with a Piggy Bank shaped Horlicks Jar which is a consumer promotion scheme. Currently Horlicks is running a Topical that is related to exams. The campaign says that Horlicks can drive away the Exam GHOSTS. Right now this brand is rocking.

About 11% of total sale of Horlicks comes from Junior Horlicks

4.5 COMPLAN

There is this story of a taxi driver in Kolkata, who, despite his limited means, wants to ensure that his child gets Complan. He wants this because he desires her to grow healthy and bright. Complan’s offering of ‘Complete Planned Food’ has, indeed, struck a powerful chord with consumers. A proactive brand, Complan – the Complete Planned Food – has endeared itself to many. By continuously reinventing itself in different flavors it has breached the banks and, today, also reaches adults who find it to be the perfect nutritional supplement.

Since its entry into the Indian market in 1964 and as an over-the-counter (OTC) product since 1969, Complan has come a long way. It has kept pace with a growing market which itself has evolved into a mature category.

Traditionally positioned as milk substitutes, the biggest markets for Milk Food Drinks (MFDs) were in the milk deficient Southern and Eastern regions of India. However, after the success of Operation Flood by the National Dairy Development Board in the 1980s, MFDs were repositioned as health beverages. (Operation Flood was a program launched in Gujarat and was aimed at increasing milk production).

Today, the market for health beverages as a category is valued at Rs.10,400 million and comprises a volume of 48,000 tonnes (Source: ACNielsen Retail Audit,’ MAT September 2003). It has grown at an average compounded annual growth rate of between 10% and 12% per annum over the last decade and is retailed in over 700,000 outlets.

MFDs can be broadly segmented into the Whites (milk derivatives) and the Browns (malt derivatives). While the Whites were considered therapeutic, the Browns were perceived simply as taste modifiers. Today, Whites account for 69% of the category with Browns accounting for the rest (Source: ACNielsen Retail Audit, MAT Sept. 2003).

Complan is a key player in the MFD category. In fact in two of the largest category markets – Kolkata and Chennai – the brand outperforms competition on two key image parameters: high on nutrition and children’s growth (Source: Pathfinders Track).

There are two important reasons for the brand’s success. On the one hand, Complan has been able to successfully establish itself in the mother’s mind, as a food essential for growing children; on the other, Complan’s availability in exciting flavors has endeared it to children.

Achievements

Complan’s growth closely resembles its core consumers; it has been growing over the last twenty years to register a constant upswing in its market. In this period, it has doubled its market share while commanding a price premium in excess of 40% over its nearest competitor.

History

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 (Source: Pathfinders Track - Kolkata). 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 (Source: IMRB Household Panel, MAT August 2003). Apart from India, Complan is also available in the UK, Australia, Venezuela, Nepal and Sri Lanka.

Product

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.

4.6 Leo burnett

Creating such iconic symbols of American-branded products, Leo Burnett worked long and hard to push a new style of advertising – one that focused on giving the product national recognition more than long-winded persuasion. Early business ventures allowed him to make it, but it was his creation of the Marlboro Man, the Jolly Green Giant, and Tony the Tiger that would make his small mid-western company became one of the largest, most sought-after agencies in the world.

Although Leo Burnett studied journalism at the University of Michigan and even worked after graduation as a reporter, he found that it was in advertising where the money was made. So, he quit is job and began working for Cadillac Clearing House, working as an editor. He then climbed his way to the top of the advertising department, and it was at that point that had his mind set on going to New York, where the real advertising dollars were spent.

After entering the Navy for six months, he then decided to remain in the mid-west and subsequently moved his family to Indianapolis, Indiana. He began to head the advertising department for a new car company, but as the company left the state, he wanted to stay in the area. Burnett then decided to head to Chicago where he started working for Erwin Wassey and remained for five years. He had some trouble hiring the most sought-after and creative personnel because they were all heading to New York. However, his trusted and loyal employees encouraged him to start his own advertising firm.

The Leo Burnett Company, Inc. was formed, and the company started with small products – anything they could contract. He stuck to his staunch beliefs about how advertising should change. He was able to create ads different from anyone else; ones that grabbed the consumer’s attention, lured them in, and made them examine the scene. The company who produced Jolly Green Giant products even changed their company name to Green Giant after the Giant’s success. Burnett’s company’s billings grew from one, to five, to ten, to nearly 100 million dollars in ten years. Now, his company makes well over eight billion dollars a year in worldwide sales.

4.7 H. J. Heinz Company

Heinz logo

H. J. Heinz Company commonly known as Heinz, famous for both its "57 Varieties" slogan and its British commercial jingle "Beanz Meanz Heinz," was founded in 1869 by Henry John Heinz in Sharpsburg, Pennsylvania, United States-- a borough adjoining Pittsburgh. Heinz, then 25 years old, began by delivering processed condiments to local grocers by horse-drawn wagon. The company's first product was horseradish, followed by pickles, and tomato ketchup.

The company was initially named the Anchor Pickle and Vinegar Works, and was run by Heinz and partner L. C. Noble. The name changed to Heinz, Noble & Company in 1872 when E. J. Noble joined on and the company relocated to nearby Pittsburgh.

After a banking panic forced him into bankruptcy in 1875, Heinz restarted his business with the help of his brother John and his cousin Frederick, and in the following year they introduced what would become its most well-known product: tomato ketchup. The new company was known as F. & J. Heinz until 1888, when Henry bought controlling interest from his brother and gave the business its current name.

New and old versions of the brand

New and old versions of the brand

The company's famous slogan, "57 Varieties", was chosen by Henry Heinz in 1892 after he saw an advertisement for "21 varieties of shoes" in an elevated train car in New York. In actuality, the company was producing over sixty different products at the time, but Heinz chose the number 57 because the numbers "5" and "7" held a special significance for him and his wife (H.J. Heinz Company Heinz - Consumer FAQs Retrieved Oct 25 2006).

Another famous slogan is "Beanz Meanz Heinz", used in the 1960s and beyond to advertise their baked beans in the United Kingdom. Variations of this slogan were used over time, such as "A million housewives every day pick up a tin of Beans and say, Beanz Meanz Heinz", or "Don't be mean with the Beans Mum, Beanz Meanz Heinz". The slogan was put in abeyance during the 1990s, and officially dropped in favor of "Heinz Buildz Britz" c.1996, but after a surprise decline in sales, the new slogan was quickly dropped. In 2002, the company used the nostalgia that by this time surrounded the slogan by running a campaign called "Keep it or can it?" in which Heinz ads from the 1960s and 1970s were re-run, with the addition of an invitation to the public to vote on whether the slogan should be kept. The result was, as expected, a massive majority in favour of keeping the slogan. This, however, was not immediately acted upon, with Heinz's subsequent ad campaign using the slogan "The bean. The superbean." instead, although in 2004 they started spelling "Baked Beanz" with a "z" on their beans, which is seen as a reminder of the slogan, and in 2006 it was announced that the company are planning to re-introduce the slogan in a future campaign.

In 1919 Henry Heinz died, and control of the company passed to his son, Howard Heinz, who was then succeeded by Skull and Bones member, H. J. Heinz II, in 1941. By 1972, sales had reached the billion dollar mark. Today, Heinz sells more than 1,300 products worldwide ranging from ketchup to baby food and canned seafood.In 1994 heinz bought the brand Complan fron Glaxo.

Journey of Complan

Stage 1

It was given as a part of ration in the UK army.

Stage 2

Initially the ad agency for Complan was Lintas.It is Lintas who made the “complete Planned food” advertisement.

Too Much of a Good Thing

The problem of marketing COMPLAN is somewhat unusual. It is, and it is perceived as, ‘far superior’ to competing products. And that is precisely the problem. As one housewife remarked, “It’s too much of a good thing. Do I need really all that?”

The origin of COMPLAN explains its vastly superior formulation. It was developed by GLAXO Laboratories as a Complete and balanced nourishment for serious medical and surgical patients unable to take normal food. Introduced into the Indian market in the early sixties. COMPLAN was first promoted ‘ethically’, that is, to doctors who then prescribed it for their patients. This ethical positioning as complete and balanced nourishment obtained very good support from doctors and a growing, if modest, tonnage of sales was achieved. However, after some time growth leveled off.

In 1970, Glaxo set up a family products group in the company with the object of promoting some of its ethical brands over-the- counter, which is, promoting them directly to consumers with mass media advertising. It was judged that this would greatly increase their sales volume. Complan was one such product and it more than justified those expectations- for a while.

Stage 3

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`

Notice 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.

Stage 4

The strategy seemed to be readymade! How should we reposition COMPLAN? Why, against HORLICKS, of course, the leader in the health beverage category? Just ask the consumer to compare the label of COMPLAN, so packed with all good nourishing thing, with the label of HORLICKS whose list of ingredients runs out after naming a few.

The positioning strategy was similar to what had proved to successful earlier-positioning by attributes and by the main competitor. Research data also showed that many COMPLAN users were earlier users of HORLICKS. `The great nourisher’-HORLICKS –was to be treated as the reservoir from which would flow a steady stream of consumers to COMPLAN

The new headline in the press ads (1973-74) said; `Your body needs 23 vital foods every day. Check: how many do other food drinks give?’ The consumer was urged to read the label on the COMPLAN tin and to compare it with the label of his present brand, assumed to be HORLICKS.

This strategy bombed. The year 1974-75 was the first time when sales of COMPLAN declined. A thorough review seemed called for Review of strategy:

Sales data as well as consumer research, including group discussions, brought some key problems to the surface.

Price:

COMPLAN’S price was almost twice that of HORLICKS. Consumers agreed that COMPLAN was a superior source of nourishment but they also felt it was ` Too much of a good thing` for them. Did they really need it?

Taste:

Its taste was almost universally disliked, violently so by children, who were often forced to drink it by health-conscious mother. Even a spoonful of sugar couldn’t make it go down!

Strategy:

Was COMPLAN on the right track in its preoccupation with fighting the competitor, HORLICKS, head-on? Would it better for COMPLAN to achieve a perception in its own right? Instead of making HORLICKS the standard of comparison, should one try to create a unique position for COMPLAN and then ask consumers to judge if HORLICKS or any other competitor could be substituted in that position?

Dialogue with the Consumer:

COMPLAN’S dialogue with the consumer had evidently broken down. Several interviews had the following pattern.

Mother: ‘I know COMPLAN is good for him (my son), but he can’t stand the

Taste.’

Elderly person: ‘My doctor asked me to take COMPLAN after my illness; now that I

Am all right, enough is enough.’

Housewife: ‘COMPLAN is good but we can’t afford it. I think we’ll switch over to

HORLICKS. It costs only half as much.’

Interviewer: ‘Madam, why do you use HORLICKS?’

Housewife: ‘Well, all of us work hard and I feel a bit more reassured if we take

Something extra, besides normal food. And it’s such a well-known

Product and a sort of family tradition, you see.’

Interviewer: ‘But Madam, COMPLAN gives you so much more nourishment than

HORLICKS.’

Housewife: Well, we’re not a sick family, you know. What we need is a bit of

Extra nourishment, not a daily dose of medicine.’

A large mass of research data brought out one priceless nugget: In the HORLICKS household there were more than two users of the product on the average. In the COMPLAN household, the average number of product users was far less. This seemed

Significant-that COMPLAN was perceived as something more special than HORLICKS and was therefore more selectively used.

While other brands like BOURNVITA and the industry were growing, COMPLAN was not. But the more significant data was that even if there were few additional converts, there was steady re-purchase of COMPLAN by many households indicating that it had a core of loyal users despite its seeming handicaps.

Why did they stick with COMPLAN? Research plus judgment provided the answer. There were many households with children who were fussy eaters and mothers constantly worried about their lack of nourishment. There were workaholic husbands who skipped breakfast or lunch. There were elders and convalescents for whom the housewife felt responsible when they went off their food. And there was these marvelous women herself, busy taking care of others and thoroughly exhausted at the end of her daily chores.

Stage 5

The New Look of COMPLAN

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!

The Take-Off

In a very real sense, this repositioning strategy, together with product improvements, provided the thrust for a take-off in sales. From an index number of 203 of sales volume in 1974-75(1969-70 = 100), sales shot up to an index of 408 by 1978-79-a doubling of volume in four years. The availability of full –fledged commercial TV in 1978 and the heavy use of this medium by COMPLAN gave the brand further thrust.

It became clear that price was not the barrier to growth. By positioning COMPLAN in a unique slot, consumers were persuaded to see that it had no real substitute and a new price-value perception was created for the brand.

A Sharper, Narrower Positioning

If you read the fine print in the earlier ads for COMPLAN n this versatility would become apparent. Take the very first ad with which COMPLAN went ‘public’.

Who Should Take COMPLAN

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.

The next ads positioned COMPLAN single-mindedly for ‘growing children’ and were created and released by Lintas in 1981

Sales data show that COMPLAN’S growth was accelerated following this most recent re-positioning. 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.

1998

Lintas becomes Ammirati Puri Lintas (APL)

You should note, 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.

4.7 Ad Criticism:

Complan ecstasy

Failures

Complan Ecstasy (2000)

A boy returns home late night.

Afraid of his parents he looks nervous

Dad scolds him and does not listen to his explanation.

The boy shows his frustration on his mother.

The mother prepares Complan Ecstasy for the boy.

Boy drinks Complan and starts reading his subjects.

The Parents feel very happy.

This campaign failed to capture a proper place in the minds of the consumer and the product failed completely. The target group was not clear. There is no strong reason for the consumers to buy Complan Ecstasy. The advertisers should have given a proper reason for the consumers to make the purchase.The brand name appears only after 10 seconds. This time delay might prompt the viewer to switch over to some other channel.

The Boy is relaxed and relieved of tension

Cricket Quiz Book

2001


2006

Mothers measure the heights of their children.

One of the mothers who uses ordinary health drink says her child has grown by ½ an inch

The mother who uses Complan says that her kid has grown up by an inch.

The mother who uses Complan says that her kid has grown up by an inch.

Complan has 100% milk protein that helps in the growth of the children.

The mother who uses ordinary health drink decides to change over to complan.

Complan provides you with extra growing power.

2007

A kid invites all his friends to play.

He is fascinated by his new flying disc and wishes to share it with his friends.

He shows them his new flying disc.

All his friends have their own flying disc with each other.

Everyone starts playing happily with their flying discs which comes with Complan.

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.

4.8 Complan VS Horlicks

1960’s…..

Horlicks was introduced in India in 1930 and Complan in 1964. Both beverages were prescribed only by the Doctors in the initial stage. From that these two brands have come across a lot of changes. During that stage health beverage was very much new to Indian market.Glaxo owned Complan and Beecham owned Horlicks.

Complan:

After Complan 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.

Horlicks:

Up until the 1960s Horlicks was positioned as an adult restorative drink that gave extra energy, especially during convalescence.

1970’s……

Milk scarcity in India. Milk is regarded to the most Nutritious drink among Indians.

Horlicks:

Horlicks tried to make use of the milk scarcity and positioned itself as a substitute to milk. Milk scarcity in India promoted the sales of Horlicks.

The 1970s saw its position shift to ‘The Great Nourisher’. It was in this phase that the brand saliency shot up. Suchitra, the protagonist, epitomized the modern housewife of those days. She was the gatekeeper of her family's health. The medical credentials were reinforced through the depiction of a doctor as the rational voice. The reason for Horlicks shift in positioning was “The Operations Flood” in Gujarat which is popularly called as “The White Revolution” swept off the milk scarcity. People were getting enough milk. This forced Horlicks to change its positioning.

Complan:

In 1970, Glaxo set up a family products group in the company with the object of promoting some of its ethical brands over-the- counter that is, promoting them directly to consumers with mass media advertising. It was judged that this would greatly increase their sales volume. Complan was one such product and it more than justified those expectations- for a while.

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`

Notice 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

The next positioning:

The strategy seemed to be readymade! How should we reposition COMPLAN? Why, against HORLICKS, of course, the leader in the health beverage category? Just ask the consumer to compare the label of COMPLAN, so packed with all good nourishing thing, with the label of HORLICKS whose list of ingredients runs out after naming a few.

The positioning strategy was similar to what had proved to successful earlier-positioning by attributes and by the main competitor. Research data also showed that many COMPLAN users were earlier users of HORLICKS. `The great nourisher’-HORLICKS –was to be treated as the reservoir from which would flow a steady stream of consumers to COMPLAN

The new headline in the press ads (1973-74) said; `Your body needs 23 vital foods every day. Check: how many do other food drinks give?’ The consumer was urged to read the label on the COMPLAN tin and to compare it with the label of his present brand, assumed to be HORLICKS.

This strategy bombed. The year 1974-75 was the first time when sales of COMPLAN declined. A thorough review seemed called for Review of strategy:

Sales data as well as consumer research, including group discussions, brought some key problems to the surface.

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. The reason behind Complan repositioning itself was the same “Operations flood” in Gujarat.

(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 flavors were introduced: chocolate, because of its universal popularity, especially with the young; Cardamom saffron, a typically Indian flavor with images of health and goodness; the strawberry flavor was reserved for later introduction-as a delicious, iced drink. And the price was increased!

1980’s…..

Testing Phase for Horlicks

Complan:

The next ads positioned COMPLAN single-mindedly for ‘growing children’ and were created and released by Lintas in 1981

Sales data show that COMPLAN’S growth was accelerated following this most recent re-positioning. 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. In this stage Complan was moving faster than Horlicks.

Horlicks:

The next decade saw Horlicks face an immense external challenge. Thanks to Operation Flood, there was availability of milk and the raison détre for buying the brand became weaker. Horlicks fought back. In 1984, Horlicks aimed at growth by growing the consumer base. By 1994, it had created ‘Ideal Horlicks’ – and improved product formulation that also brought back the taste people reminisced about.

Chocolate complan 1989

Chocolate Horlicks(late 80’s)

1990’s…..

The Horlicks Come back

Horlicks diversified its product in the 90’s.It launched Junior Horlicks for kids under the age of 3.This boosted up the sales of Horlicks.About 11% of Horlicks sales come from Junior Horlicks.

Refill packs instead of Jar

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

Horlicks 1992

Complan’s “tall Claim “ starts in the early 90’s

“Iam a Complan Boy” “ Iam a Complan Girl” became popular.

New Horlicks( Font has Changed)

Complan (1996)

Doctor prescribing Horlicks

Complan attacks Horlicks ( Brand C Brand H ). Committing the same mistake of 1970’s.

Horlicks introduces Junior Horlicks

Vishwanathan Anand ( Grand master , Chess) for Horlicks.

Gayathri( Tamil tevevision actress) for Horlicks to target the house wifes.

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.

The New look

Market share

The competition

Smith Kline Beecham’s Horlicks is the leader. The competition is amongst the others for the number two slot.

Distribution network

The distribution network generally involves the transfer of finished products from the factory to packing stations or depots. From here it is sent to the distributor or the semi-wholesaler, who finally sends it to the retailer.

Consumer behavior

Energy drinks or milk drinks are perceived as a luxury. This explains the slow off-take. While white beverages are hailed for their therapeutic offerings, consumers look at browns as mere taste additives. Brand loyalties are not very strong as the key target, children, are always looking for new products. Promotion campaigns such as freebies and contests also play an important role in influencing brand choice. These campaigns are mainly targeted at children who force their parents to buy these products. Free gifts like crystal jars, pet jars and sippers also attract consumers.

SmithKline Beecham (Horlicks, Boost, Maltova, Viva)

69%

Heinz (Complan)

13.8%

Cadbury (Bournvita)

12.9%

Nestle (Milo)

3.4%

Market prospects

The Hygene cautious south India tops the health beverage sale.Much of the sale comes from Tamil Nadu and Andhra Pradesh.

Media spends:

The growth opportunities in this area are tremendous. However, the growth rates have been slow so far, hovering around 6 per cent per annum, in terms of volume. The total market size is estimated to be 90,000 tonnes per annum. About 65 per cent of the total beverages market consists of white beverages. In 2000, the market shares of the major players in this sector were as follows:

SmithKline Beecham Consumer Healthcare is the leader, with its brand Horlicks accounting for 52 per cent of the share, Boost 10 per cent, Maltova 4 per cent and Viva 3 per cent.

The malted food beverage industry is popularly known as the health beverages sector. It is estimated to be a Rs 9.40 million market and is growing at the rate of 12-14 per cent per annum. Historically, malted beverages has had a strong association with milk, which also explains its strong presence in the southern and eastern regions of the country. These regions suffered from milk deficit and malted beverages positioned themselves as substitutes for milk.

Operation Flood, launched in the 1980s, changed the scenario. Undertaken by National Dairy Development Board, Operation Flood made milk available in all parts of the country and the demand for white drinks was hit. With a view to revive demand for the brands, malted foods were repositioned as strength and energy drinks with a nutritional thrust. And this positioning stands valid till date.

Apart from the availability of milk, another significant reason for medium growth rates of malted food industry lies in its limited acceptability and/or reach in Indian society. Malted foods have primarily been used in upper and upper middle-class families, which constitute a small proportion of the Indian population. However, over the last few years, there have been clear indications of a recovery.

Several factors are responsible for this. Chief among these is the demand for better products and an increased acceptability of malted products. This demand has contributed to the growth in consumer options in terms of variety of taste and products. Other factors include improved standard of living, increased awareness and health consciousness amongst people, and product availability at reasonable prices. This trend is in keeping with the patterns observed across international economies where the growth of middle-class has driven the uptrend in food industry in general and health beverages in particular.

As an obvious outcome, this proliferation is bound to have an impact on the supply chain, making it more complex. Speed and reach will become critical and differentiation in supply-chain capabilities would determine the success of competing.

5 Methodology

A survey was taken to read the minds of the consumers about the health Beverages.

Questionnaire method

Who makes the purchases in your Home?

Do you force your children to take health drinks?

Which health beverage do you take? Please give reasons.

Which is More tastier? Complan or Horlicks?

6.Inference:

1960-1970:

Complan took over in 1964 in the Indian market. But it went public only in the later stages of 1960’s. When we analyze the print ad’s of Complan during this period Complan tried to portray itself as a medicine. So when people were ill they take up Complan and quit as soon as they relieve from illness. Horlicks at this time was more a casual drink than Complan. It stressed it’s part in everyday diet. kid’s did not like the taste of complan mainly because it was recommended by Doctor’s. Usually we will have a mentality to avoid medicines. That’s what happened with Complan. Complan concentrated mainly on Doctor’s. This worked out well to some extent as the concept of family doctor was prevailing in those days. Complan established itself as something which is superior to milk. That made it as a formal drink. This period was a testing period for Complan.

1971-1980:

This is the most crucial stage of Complan. They changed their positioning several times within a decade.They were not clear about who was their competitor.Horlick’s was moving steadily at this stage. They always tried to position themselves as a family drink.The sales of Complan dropped once in 1970’s when they positioned themselves against the market leader Horlicks. Complan was not able to compete with Horlicks mainly because of the fact that the cost of complan was 40% more that Horlicks most of the time. This blunder of comparing itself to Horlicks was repeated again in the 1990’s.Anyway Complan was successfully positioned as a supplementary frink for growing children. At last they found out their target group, namely “Growing children”. Complan slowly began to eat into the market of Horlicks.During this stage both the beverages were riding on a single concept , “ Scarcity for milk”.

1981-1990:

This was the most successful period for Complan. When the milk scarcity in Indian was swept off by “The operations flood”, in Gujarath when several Dairies like Mother’s dairy was opened up in Gujarat, these beverages dipped in sale. Complan made a smart move by advertising itself as a supplementary drink for growing children( created by Lintas in 1981). After a couple of years the sale of Complan overtook Horlick’s and Complan began to eat into the market share of Horlicks. This was the struggling phase of Horlicks. Horlicks fought back and positioned itself as, “ The Great family nourisher”.Now at this stage Complan was little ahead of Horliks. Horlicks had to rethink its strategies as it was challenged by a comparatively younger brand like Complan.At this stage Complan was going great guns.the advertisements began concentrating on sports and the Doctor was removed from the ad’s. Parent’s started to purchase Complan mainly for kid’s.Complan started to dominate the Indian household.This was a decade of set back for Horlicks. But they fought back and was ready for a comeback. This time more aggressively.

1991-2000:

This decade witnessed Complan making too many mistakes and Horlicks making too many smart moves.

Complan failures:

Complan Mango shake

Brand H Brand C ad

Sacking the Complan boy and Complan girl.

Trying to stress only on growing taller.

Success of Horlicks:

Horlicks made the masterstroke by introducing “Junior Horlicks”. Usually kids below age of 3 are always prone to get ill and need continuous nourishment. Every family irrespective of it’s lower income will spend money on kid’s health.Horlick’s stressed the need for Junior Horlicks. They stressed that the base should be strong.Horlicks created emotional ad’s which appealed to the housewife’s. They began to stresses on the Importance of mother’s decision in the family. They gave a great respect and responsibility to the mother in their ad’s .Horlick’s spoke to the mother directly which was a big success formula.Complan made a mistake by comparing itself to Horlicks( Brand H, Brand C ad). This mistake was done before in 1970’s(when sale of complan dipped for the first time).Complan spent most of the time speaking about freebies. These freebies increased the sale for a short period.( the freebie was a big success in the early stages of 1990’s). But later it had very little impact on kid’s with the invention of new technologies and video games.The major failures of complan were “Mango shake and Ectacy”. Ectacy failed to reach the target audience.

2001-2007:

The blunder’s of complan continued in the millineum.Horlicks diversified it’s products while Complan kept on speaking about growing tall. They never tried to expand their consumer base. Tey neglected the huge market which lies below the age of 3 and above 14.They always targeted children between 3-14.It failed to create any impact by giving freebees like flying disc’s. This is an era where kids play with X-box,X-box 360, PS2 and so many video games., flying disc’s left very little impact on the present Indian kids.Survey says that kid’s are spending most of their leisure time with video game’s. So freebees like flying disc’s are not going to work out anymore. Horlicks ad’s are more emotional and speaks into the ears of the mother. Now even Horlicks is speaking directly speaking to the kids as the kids these days are gaining more decision making powers in the family.( Super man ad of Horlicks do not have the mother in the frame).Now Horlicks has grown up into a giant.Lot of thinking has to be done by Complan if they have any idea of competing with Horlicks.

Does this kid is going to play with flying disc’s anymore!!!!!!!!!!!

7. Observation

The research brought out some key findings.

  • Consumers rate Complan as a better health beverage than Horlicks.
  • Horlicks has a clear cut lead over Complan.
  • The main threats for these beverages are Tea and Coffee.
  • Majority of the adults do not take any health beverage.
  • Horlicks Ad’s are perceived better because of its emotional appeal.
  • Majority of the consumers said that Horlicks tastes better.

Complan has failed to create seriousness among the Consumers. Complan ad’s are always easy going and they emphases on physical health. They speak about mental strength very rarely. So it has to promote itself as a drink supporting both studies and sports.

8. Conclusions

· Horlicks clearly is far ahead of Complan in sales.

· Complan is respected as a better health beverage than Horlicks.

· Horlicks successfully diversified its product whereas Complan failed to do so.

· Horlicks has explored the opportunities at every nuke and corner.

· Horlicks ad’s are emotional and sentimental which suits the Indian market very well.

· Complan ad’s are vague and lack creativity.

· Complan has more loyal consumers but it has failed to attract new consumers.

· As Complan always speaks about growing taller, it has very less impact on adults (Growth stops after the age of 21).

Today Horlicks is miles ahead of Complan. Complan lost its grounds which it achieved in the 80’s and 90’s.when we analyze the ad’s of complan 1 notable thing which we find is that they did not think out of the box. The same formula will not succeed all the time. Changes are needed at specific times. These days consumers are gathering knowledge day by day. So Products should be competitive enough to provide the consumers what they need.Horlicks on the other hand is still learning. Complan has stopped learning.

When a man stops learning, he stops growing.

Same is the case with marketing Complan boy is growing but not the market share of Complan.If complan fail to attract new consumers it will be washed away from the market one fine day.

9 Recommendations

Horlicks has to keep up its good work and complan has to rethink its advertising strategies and try to diversify its products.Complan has to reposition itself as a family drink to achieve betterment in terms of market shares.

Complan has to diversify its products in order to witness a growth in market shares. It seems Complan has failed to attract new consumer’s. It’s time for Complan to reposition itself.

Complan targets Growing Children. There is a huge market with the grown up’s. It has to reposition itself to make in roar into the adult segment.Complan has to be more creative in its advertisements. It has to deliver message more seriously.

Complan has to segment like Horlicks did in the late 90’s.Once in 90’s complan has an ad in which the boy takes the mother in the bicycle. Such kind of emotional ad’s are needed to counter the Indian households where people are very much sensitive.

10 Bibliography

Brand positioning by Subroto sengupta

Web sites

www.hinduonline.com

www.blogger.com

www.magindia.com

www.superbrandsindia.com

www.fnbnews.com

Television Commercials purchased at:

R.R.Radio’s,

Kodambakkam.

11 Annexure

Concrete advertising history begins with classified advertising. Ads appear for the first time in print in Hickey's Bengal Gazette. India's first newspaper (weekly). Studios mark the beginning of advertising created in India (as opposed to imported from England) Studios set up for bold type, ornate fonts, more fancy, larger ads
Newspaper studios train the first generation of visualizers & illustrators

Major advertisers: Retailers like Spencer's, Army & Navy and Whiteaway & Laidlaw

Marketing promotions: Retailers' catalogues provided early example Ads appear in newspapers in the form of lists of the latest merchandise from England

Patent medicines: The first brand as we know them today were a category of advertisers

Horlicks becomes the first 'malted milk' to be patented on 5th June 1883 (No. 278967).

905

B Dattaram & Co claims to be the oldest existing Indian agency in

Girgaum in Bombay

1912

ITC (then Imperial Tobacco Co. Ltd.) launches Gold Flake

1920s

Enter the first foreign owned ad agencies

Gujarat Advertising and Indian Advertising set up

Expatriate agencies emerge: Alliance Advertising, Tata Publicity

LA Stronach's merges into today's Norvicson Advertising

D J Keymer gives rise to Ogilvy & Mather and Clarion

1925

LR Swami & Co, Madras

1926

LA Stronach & Co (India) Pr. Ltd, Bombay starts

Agency called National set up for American rather than British advertisers

American importers hire Jagan Nath Jaini, then advertising manager of Civil and Military Gazette, Lahore. National today is still run by Jaini's family

Beginning of multinational agencies

J Walter Thompson (JWT) opened to service General Motors business

1928

BOMAS Ltd (Formerly DJ Keymer & Co Ltd) set up

1929

J Walter Thompson Co Pr. Ltd formed

1931

National Advertising Service Pr. Ltd. Bombay set up

Universal Publicity Co, Calcutta formed

1934

Venkatrao Sista opens Sista Advertising and Publicity Services as first full service Indian agency

1935

Indian Publicity Bureau Pr Ltd, Calcutta established

1936

Krishna Publicity Co Pr. Ltd, Kanpur begins operations

Studio Ratan Batra Pr. Ltd, Bombay established

Indian Broadcasting Company becomes All India Radio (AIR)

1938

Jayendra Publicity, Kolhapur started

1939

Lever's advertising department launches Dalda - the first major

Example of a brand and a marketing campaign specifically developed for India

The Press Syndicate Ltd, Bombay set up

1940

Navanitlal & Co., Ahmedabad set up

1941

Lux signs Leela Chitnis as the first Indian film actress to endorse the

Product.

Hindustan Thompson Associates (HTA), the current incarnation of

JWT, coins the Balanced Nourishment concept to make Horlicks More relevant to India Green's Advertising Service Agents, Bombay formed

1943

Advertising & Sales Promotion Co (ASP), Calcutta established

1944

Dazzal, Bombay comes into existence

Ranjit Sales & Publicity Pr. Ltd, Bombay started

1945

Efficient Publicities Pr. Ltd, Madras set up

Tom & Bay (Advertising) Pr. Ltd., Poona begins operations in India

1946

Eastern Psychograph Pr. Ltd., Bombay set up

Everest Advertising Pr. Ltd, Bombay established

1947

Grant Advertising Inc, Bombay formed

Swami Advertising Bureau, Sholapur started

1948

RC Advertising Co, Bombay set up

Phoenix Advertising Pr. Ltd, Calcutta formed

1950s

Radio Ceylon and Radio Goa become the media option

1951

Vicks VapoRub: a rub for colds, causes ripples with its entry

in the balm market

1952

Shantilal G Shah & Co, Bombay

1954

Advertising Club, Mumbai set up

Express Advertising Agency, Bombay

India Publicity Co. Pr. Ltd., Calcutta

1956

Aiyars Advertising & Marketing, Bombay

Clarion Advertising Services Pr. Ltd, Calcutta

1957

Vividh Bharati kicks off

1958

Shree Advertising Agency, Bombay

1959

Associated Publicity, Cuttack

1960

Advertising Accessories, Trichur started

Marketing Advertising Associates, Bombay set up

1961

Industrial Advertising Agency, Bombay comes into existence

Bal Mundkur quits BOMAS to set up Ulka the same year

1962

India's television's first soap opera - Teesra Rasta enthralls viewers

1963

BOMAS changes names to SH Benson's, Stronach's absorbed into Norvicson Lintas heading for uncertainty Levers toying with giving its brands to other agencies Nargis Wadia sets up Interpub Wills Filter Tipped cigarettes launched and positioned as made for each other, filter and tobacco match.

1965

Kersey Katrak sets up Mass Communication and Marketing (MCM)

1966

Government persuaded to open up the broadcast media. Ayaz Peerbhoy sets up Marketing and Advertising Associates (MAA)

1967

First commercial appears on Vividh Bharati

1968

Nari Hira sets up Creative Unit.India wins the bid for the Asian Advertising Congress

1969

Sylvester daCunha left Stronach's to run ASP; later sets up

daCunha Associates

1970

Frank Simoes sets up Frank Simoes Associates

1970, 1978

National Readership Studies provided relevant data on consumers' reading habits

1970

Concept of commercial programming accepted by All India Radio. Hasan Rezavi gives the very first spot on Radio Ceylon

1971

Benson's undergo change in name to Ogilvy, Benson & Mather

1972

Western Outdoor Advertising Pvt Ltd (WOAPL) introduces first closed circuit TV (CCT) in the country at the race course in Mumbai

1973

RK Swamy/BBDO established

1974

MCM goes out of business.Arun Nanda & Ajit Balakrishnan set up Rediffusion.

1975

Ravi Gupta sets up Trikaya Grey

1976

Commercial Television initiated

1978

First television commercial seen

1979

Ogilvy, Benson & Mather's name changes to Ogilvy & Mather

1980

Mudra Communications Ltd set up. King-sized Virginia filter cigarette enters market with brand name of 'Charms'

1981

Network, associate of UTV, pioneers cable television in India

1982

The biggest milestone in television was the Asiad '82 when television turned to colour transmission. Bombay Dyeing becomes the first colour TV ad .13th Asian Advertising Congress in New Delhi. Media planning gets a boost.

1983

Maggi Noodles launched to become an overnight success. Canco Advertising Pvt. Ltd. founded Manohar Shyam Joshi's Hum Log makes commercial television come alive.

Mudra sponsors first commercial telecast of a major sporting event with the India-West Indies series.

1984

Hum Log, Doordarshan's first soap opera in the color era is born. Viewers still remember the sponsor (Vicco) of Yeh Jo Hai Zindagi!

1985

Mudra makes India's first telefilm, Janam

1985-86

915 new brands of products and services appearing on the Indian market

1986

Sananda is born on July 31. The Bengali magazine stupefies India by selling 75,000 copies within three hours of appearing on the News stands. Mudra Communications creates India's first folk-history TV serial Buniyaad. Shown on DD, it becomes the first of the mega soaps. Price quality positioning of Nirma detergent cakes boost sales.

1988

AAAI's Premnarayan Award instituted

1989

Advertising Club Bombay begins a biennial seminar called 'Advertising that Works'

Advertising & Marketing (A&M) magazine launched.

1990

Marks the beginning of new medium Internet. Agencies open new media shops; go virtual with websites and Internet advertising Brand Equity (magazine) of The Economic Times is born

1991

First India-targeted satellite channel, Zee TV starts broadcast.

Close on the throes of the Gulf War enters STAR (Satellite Transmission for Asia Region)

1992

Spectrum, publisher of A&M, constitutes its own award known as'A&M Awards'.Scribes and media planners credit The Bold And The Beautiful serial on STAR Plus channel as a soap that started the cultural Invasion.

1993

-

India's only advertising school, MICA (Mudra Institute of

Communications Ahmedabad), is born

-

Tara on Zee TV becomes India's first female-centric soap

1995

-

Advertising Club of Bombay calls its awards as Abby

-

Country's first brand consulting firm, SABRE (Strategic Advantage for

Brand Equity) begins operations

1996

-

The ad fraternity hits big time for the first time by bagging three

awards at the 43rd International Advertising Festival, Cannes.Sun TV becomes the first regional TV channel to go live 24 hours - a day on all days of the week

1997

Media boom with the growth of cable and satellite; print medium sees an increase in titles, especially in specialized areas. Government turns towards professional advertising in the private sector for its VDIS campaigns. Army resorts to the services of private sector agencies. Advertising on the Internet gains popularity. Equitor Consulting becomes the only independent brand consultancy company in the country. Several exercises in changing corporate identity. For the first time ever, Indians stand the chance of winning the $ 1-million booty being offered by Gillette as part of its Football World Cup promo.

1998

Events assume important role in marketing mix.Rise of software TV producers banking on ad industry talentReinventing of cinema -advertising through cinema begins

1998

Lintas becomes Ammirati Puri Lintas (APL)

1999

B2B site agencyfaqs.com launched on September 28

1999

The Advertising Club Bombay announces the AdWorks Trophy.

2000

Mudra launches magindia.com - India's first advertising and marketing Gallery.Lintas merges with Lowe Group to become Lowe Lintas and partners(LLP). bigideasunlimited.com - a portal offering free and fee ideas for money

launched by Alyque Padamsee and Sam Mathews Game shows like Kaun Banega Crorepati become a rage; media buying industry is bullish on KBC.

Kyunki Saas Bhi Kabhi Bahu Thi marks the return of family- Oriented soap on TV

French advertising major Public’s acquires Maadhyam

2001

Trikaya Grey becomes Grey Worldwide. Bharti's Rs 2.75-crore corporate TV commercial, where a baby girl is born in a football stadium, becomes the most expensive campaign of the year

2002

Lowe Lintas & Partners rechristened Lowe Worldwide.

For the first time in the history of HTA, a new post of president is created. Kamal Oberoi is appointed as the first president of HTA.

Jagatjit Industries (Jagatjit), established in 1944, is a company primarily engaged in manufacturing and marketing of liquor and food products. It is also into manufacturing of glass and pet containers. Under its liquor division, it manufactures a range of alcoholic beverages which include whisky, rum, gin and vodka. These beverages are sold under the brand name of Aristocrat, Binnie and Captain Henry.


The company’s food products division manufactures milk products such as milk powder and ghee which are sold under the brand name of Binnie’s and Compleat

It manufactures malted milk powder for Smith Kline Beecham Consumer Health Care and also markets Aristocrat apple juice.


Jagatjit`s manufacturing base is located at Kapurthala in Punjab. Besides that, it has other manufacturing units in Uttar Pradesh, Andhra Pradesh, Kerala, Rajasthan, Maharashtra, Pondicherry, Himachal Pradesh and Tamil Nadu.


The company also exports to countries like UAE, Oman, Saudi Arabia, Bangladesh, UAE, Sri Lanka, Malaysia, Japan, Portugal and Belgium among others.
Jagatjit`s also manufactures glass jars and bottles of various sizes used in liquor, soft drinks, food and pharmaceuticals products. Its glass container manufacturing plant is in Sahibabad in Uttar Pradesh. It manufactures food grade pet containers which are used in various industries and has a pet container manufacturing facility in Noida.

Jagatjit Industries reported 3.1 times growth in net profits at Rs 41.2 million for the quarter ended Sep. 2006 as against Rs 13.30 million in the corresponding quarter, a year ago. Sales for the quarter rose 48.16% to Rs 987.90 million compared with the corresponding quarter, a year ago. The company’s net profit for the year ended Mar. 31, 2006 stood at Rs 67.1 million as against a loss of Rs 8.48 million. The EPS for the year ended Mar. 31, 2006 was Rs 1.29.