Complan Vs Horlicks: Comparative Advertising and the Question of Ethics

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Case Details:

Case Code : MKTG209
Case Length : 18 Pages
Period : 2008-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : GlaxoSmithKline Consumer Healthcare; Heinz
Industry : Consumer Packaged Goods; Health drinks
Countries : US; Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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The Fight for the Indian Health Drink Market Turns Ugly Contd...

The advertisement showed the competitor brand clearly while making the comparison. Heinz later followed up with its own ad comparing Horlicks unfavorably with Complan. This prompted GSK to file a case in the Delhi High Court⁸ in December 2008 claiming that the ad released by Heinz disparaged its brand by calling it low priced, and thereby damaging its reputation.

Horlicks and Complan were popular health drinks in Indian households. The estimated Rs.⁹ 18 billion health drinks market in India was growing at an annual rate of 20% as per AC Nielsen¹⁰ data. As of 2008, GSK was the market leader in the health drink category in India with a share of 55%, while Complan's market share was about 14%.¹¹

The ongoing war for supremacy between these two brands in the Indian health drink market started as early as in the 1960s. According to analysts, the latest round in the health drink war was initiated by the makers of Horlicks; the makers of Complan retaliated...

Excerpts >>

8] The Delhi High Court was established on October 31, 1966.
9] Here 'Rs.' refers to 'Indian rupees'. As of March 3, 2009, US$1 was approximately equal to Rs. 51.88 and one British pound was approximately equal to Rs.73.19.
10] AC Nielsen is a US-based global marketing research firm. It is a leading provider of marketing information and solutions.
11] Ratna Bhushan and Paramita Chatterjee, "Horlicks, Complan Slug it Out Over Price Points," www. economictimes.indiatimes.com, December 23, 2008.


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