abhinav gsk report
TRANSCRIPT
Summer Internship Project Report On
Campaign Plans for Restaging of BOOST
By
ABHINAV MATHUR
MBA- Class of 2012
Under the Supervision of
Dr. Padmakali Banerjee
In Partial Fulfillment of the Requirements for the Degree of Masters of
Business Administration
At
AMITY BUSINESS SCHOOL
AMITY UNIVERSITY HARYANA
Acknowledgement1
Project work is never the work of an individual; it is the manifestation of views, ideas, suggestion, contribution and work involving many individual. One of the most pleasant parts of writing a report is an opportunity to thank those who have contributed to it. We are thankful to all those who helped us to give a shape to this project report.
Perseverance, inspiration and motivation have always played a key role in the success of any venture. Working on this project was a challenge. It is often difficult to understand a wide spectrum of knowledge without proper guidance and advice.
I am highly indebted to Mr. Satadru Bagchi (Brand Manager , Boost, GSKCH) for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project.
I am thankful to Ms. Rasneet Kaur ( Brand Team, Boost, GSKCH) and Ms. Esha Khanna (Mindshare). Under their superlative guidance my project has attained the goal of reality and success. It has been a privilege and pleasure working under their guidance and experience to be cherished for long time to come. I am very thankful to them for providing me with an opportunity to work under their guidance and making impossible look easy for me.
I am also thankful to our project guide, Mrs. Padmakali Bannerji (Assistant Vice Chancelor, Amity Business School, Amity University, Haryana) for her continuous support, guidance and inspiration.
Abhinav Mathur
Abstract2
This project is about building Boost marketing plans for Q4, 2011 to full 2012 which includes restage of Boost in October 2011. Analyze 2010 to 2011 performance and design detailed campaign plans for the restage in 2011.
The objective of this project is about accelerating the growth rate which got stagnated in 2011. Boost needs a change in its packaging (structure and graphics), clinical proofs and communication strategies.
The major task of this project would be attracting customers from its competition, i.e., Bournvita in the markets of North, East, West and South.
The methodologies used in this project are Comparative Analysis and Execution Trend Mapping through data collection from “ AC Nielsen ” which was the Primary source of data collection and online research and GSK data base was the Secondary source of data collection.
The result at the end of this two months project was the introduction and finalizing in the packaging of Boost. The entire structure and graphics of the SKUs (Stock Keeping Units) was changed. Communication strategies were made which included a month long competition on radio, i.e., Boost Super Kid Challenge.
Table of Contents3
Introduction
4
S. No Content Page No.
1 Introduction 5
2 Company Profile 6-7
3 Materials and Methods 8-24
4 Result and Discussion 25
5 Conclusion and Recommendation 26-28
6 References 29
Boost“Boost is the secret of winning energy”
Boost is India’s leading malt-based Health Food Drink in a chocolate flavor. It was developed by the company’s R&D team in 1974 and launched in 1975-76. Its success characterizes the manner and skill with which Glaxo Smith Kline Consumer Healthcare has responded to the changing contours of this product segment in recent times.Boost has a market share of 13.5% countrywide amongst all Health Food Drinks (HFD), while in South India- the biggest region for the category – it commands a market share of 26%
Boost is the first HFD to have used celebrity endorsement to convey its energy proposition and has thereby successfully differentiated itself from other brands. It has been successfully endorsed by India’s most famous cricket stars, particularly those with a humongous following among children. Kapil Dev the most charismatic cricketer of his time flagged this off in the 1980s. The baton passed to Sachin Tendulkar in the 1990s. Sachin has remained steadfast in his support for Boost with the explosive Virender Sehwag joining the little master as brand master in 2001. In 2008, the current Indian cricket captain Mahendra Singh Dhoni also joined the brand ambassador.
It is also the first brand in this segment to have developed a ‘shrink-sleeved’ packaging way back in 1999. In recognition of this, Boost has won the prestigious World Star award for its packaging. Boost also won India Star award for Best Packaging in 2007 and the world star award for packaging in 2008.Boost is India’s only Health Drink food drink scientifically proven to increase stamina by 3 times.
With the band philosophy being to continuously innovate and pioneer changes, in line with the changing market dynamics and ongoing consumer feedback, Boost has been restaged in October 2011. The brand now offers :
A more sporty, more convenient and exciting bottle structure.
Exciting new graphics.
Compelling advertising with a high visual appeal that depicts the winning energy we all aspire to have.
New Boost is a malt-based health food drink which comes in a chocolate flavor.It is now enriched with EnVita Nutrients, a unique scientific combination of essential vitamins and minerals that significantly improves the levels of key nutrients, important for energy metabolism to help increase stamina.
Sachin Tendulkar appeared in a Boost advertisement for the first time at the age of seventeen.
The kid, who starred in the Boost advertisement with Kapil Dev, went on to become a member of the Indian Cricket Team- Nikhil Chopra.
There is a range of interesting products prepared with Boost which cater to local taste : the Boost ‘barfis’, for example, in certain parts of India.
Company Profile5
GlaxoSmithKline Consumer Health Care Ltd.(GSKCH) is an Indian associate of GloaxoSmithKline plc, UK. It is one of the world's leading research-based pharmaceutical and healthcarecompanies. Headquartered in the UK, it is a global organisation with offices in over 100 countries and major research centres in the UK, USA, Belgium and China.
GSKCH is one of the largest players in the Health Food Drinks (HFD) Industry in India. The company, with its manufacturing plants located in Nabha, Rajmundry and Sonipat, has a total workforce of over 2700 people, each driven by a spirit of enterprise.
Its flagship product, Horlicks, is a highly respected brand which is over 100 years old in India. The company also manufactures and markets Boost, Viva, Maltova, biscuits, Foodles and in addition promotes and distributes a number of products in diverse categories, including prominent brands such as Eno, Crocin, Iodex and Sensodyne.
GSKCH has a strong marketing and distribution network in India comprising over 4800 wholesalers and direct coverage of over 7,00,000 retail outlets.
GlaxoSmithKline Consumer Healthcare business is based on scientific innovation. The company has dedicated consumer health care R&D centers and takes research as seriously as marketing excellence, offering cutting-edge capability in both.
GSK is one of the few pharmaceutical companies researching both medicines and vaccines for the World Health Organization’s three priority diseases – HIV/AIDS, tuberculosis and malaria, and are very proud to have developed some of the leading global medicines in these fields.
It produces medicines that treat major disease areas such as asthma, anti-virals, infections, mental health, diabetes, cardiovascular and digestive conditions.
In addition, it is a leader in the important area of vaccines and are developing new treatments for cancer.GSK also markets other consumer products, many of which are among the market leaders:
Over-the-counter (OTC) medicines including alli, gaviscon and Panadol
Dental products such as Aquafresh and Sensodyne
Smoking control products Nicorette/Niquitin
Nutritional healthcare drinks such as Lucozade, Ribena , Horlicks and Boost
Operations
As the second largest pharmaceutical company in the world, based on net income, the company had sales of £22.7 billion and made a profit of £7.8 billion in 2007. It employs over 90,000 people worldwide, according to GSK website, including over 40,000 in sales and marketing. Its global headquarters are GSK House in Brentford, United Kingdom, with its United States headquarters based in Research Triangle Park (RTP) in North Carolina and its consumer products division based in the Pittsburgh suburb of Moon
6
Township, Pennsylvania. The research and development division has major headquarters in South East England, Philadelphia and Research Triangle Park (RTP) in North Carolina.
The company's stock is listed on the London stock exchange and ADRs are listed on the NYSE. The single largest market is in the United States (approximately 45% of revenue), although the company has a presence in almost 70 countries.
In November 2009 GlaxoSmithKline formed a joint venture with Pfizer to create ViiV Healthcare. Viiv Healthcare received all of Pfizer and GlaxoSmithKline's HIV assets. ViiV Healthcare is 85% owned by GlaxoSmithKline and 15% owned by Pfizer.
Locations
Global Pharmaceutical Operations headquarters in Brentford, United Kingdom with US operations based in Research Triangle Park, North Carolina.
Consumer Products headquarters in Moon Township, Pennsylvania suburb of Pittsburgh Major R&D sites in Stockley Park, Stevenage and Ware in the United Kingdom; Zagreb,
Croatia; Evreux and Les Ulis in France; Research Triangle Park, North Carolina; Laval, Quebec and Upper Merion and Collegeville, Pennsylvania
Major centre for biopharmaceutical products in Belgium (Wavre and Rixensart), Germany (Dresden), Canada (Quebec, QC), USA (Marietta PA & Hamilton MT) and Hungary (Gödöllő)
New R&D centres in Thane, India and Nashik, India R&D centres in Shanghai, China and Boston, USA Major manufacturing sites for prescription products in Irvine, Ware, Montrose, Barnard
Castle, Worthing and Ulverston in the United Kingdom; Evreux, France;Bristol, King of Prussia and Zebulon in the United States; Cidra, Puerto Rico; Jurong, Singapore; Cork, Ireland; Poznań, Poland; Parma, Italy; Brasov, Romania;Boronia, Australia, Brussels, Belgium.
Major manufacturing sites for consumer products in Maidenhead, United Kingdom; Dungarvan, Ireland; Mississauga, Ontario; Aiken, South Carolina; Clifton, New Jersey; and St. Louis, Missouri, and Kenya.
GSK has a presence in 99 cities across 39 countries.
AWARDSGlaxo Smith Kline has won numerous awards , some which are:
GSK ranked 5th in Newsweek’s 100 greenest global companies. CEO cancer gold standard. Vanguard" award to the Nutritional Healthcare UK team for Ribena as a model of sustainability
and to Pharmaceutical R&D team that developed "Liquid Dispensing Technology", an innovative approach to manufacturing high potency medicines that protects employees and provides a revolutionary approach to making the final medicinal form.
Materials and Methods
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My Area of study is in accordance with the Comparative Analysis and future plans of BOOST.The study focuses on the data collected by GSKCH in Eastern India regarding market competition of BOOST against BOURNVITA.
1) West Bengal- BOOST
MAY10
JUN10
JUL10
AUG10SE
P10
OCT10
NOV10
DEC10
JAN11
FEB11
MAR11
APR11
MAY11
0.0
2,000.0
4,000.0
6,000.0
8,000.0
10,000.0
12,000.0
14,000.0
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Value offtake
%MS VALUE
In this Graph , Value Offtake(in kg) represents , the total quantity of BOOST bought by the Distributors so that it can reach to the customers.
- The value off-take shows good growth in 2010 reaching its max in Dec. shows downward trend in 2011- The market share shows an upward trend in 2010 with a max of 3.7 in Dec. 2011 shows a downward
trend.
MAY10
JUN10
JUL10
AUG10SE
P10
OCT10
NOV10
DEC10
JAN11
FEB11
MAR11
APR11
MAY11
0200400600800
1000120014001600
Per Dealer Offtake
Per Dealer Offtake represents (in 000’kg) - PDO (Vol) = Sales Weight / No. of Dealers
- The PDO shows good growth in 2010. - In 2011, it falls at a slow pace .
BOURNVITA-
8
MAY10
JUN10
JUL10
AUG10SE
P10
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NOV10
DEC10
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FEB11
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0.0
2,000.0
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8,000.0
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12,000.0
14,000.0
16,000.0
18,000.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Value offtake
%MS VALUE
- The value off-take shows a steady growth with max in Dec. Falls down in 2011.- The market share shows a little growth in 2010 but flows a downward trend in 2011.
MAY10
JUN10
JUL10
AUG10SE
P10
OCT10
NOV10
DEC10
JAN11
FEB11
MAR11
APR11
MAY11
0
500
1000
1500
2000
2500
Per Dealer Offtake
- The PDO shows steady growth in 2010.- It falls in 2011 with min in April.
BIHAR
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Boost
MAY10
JUN10
JUL10
AUG10SE
P10
OCT10
NOV10
DEC10
JAN11
FEB11
MAR11
APR11
MAY11
0.0
500.0
1,000.0
1,500.0
2,000.0
2,500.0
0.0
0.5
1.0
1.5
2.0
2.5
Value offtake
%MS VALUE
- The value offtake in 2010 showed little growth but decreased in 2011.- The market share value showed slow growth in 2010 and fell in jan but coming back to earlier levels
fast.
MAY10 JUN10 JUL10 AUG10 SEP10 OCT10 NOV10 DEC10 JAN11 FEB11 MAR11 APR11 MAY110
100
200
300
400
500
600
700
800
Per Dealer Offtake
- The PDO shows a growth trend in 2010 , - Low PDOs noticed in 2011, however recovering
Bournvita10
MAY10
JUN10
JUL10
AUG10SE
P10
OCT10
NOV10
DEC10
JAN11
FEB11
MAR11
APR11
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0.0
2,000.0
4,000.0
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14,000.0
16,000.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Value off-take
%MS VALUE
- The value offtake showed good growth in 2011 reaching a max in Dec. In 2011 , it showed a steep downward trend.
- the market share value showed an upward trend in 2011touching a max of 12 in Dec . There was huge erosion in Q1 2011 .
MAY10 JUN10 JUL10 AUG10 SEP10 OCT10 NOV10 DEC10 JAN11 FEB11 MAR11 APR11 MAY110
500
1000
1500
2000
2500
Per Dealer Offtake
- The PDO shows a growth trend in 2011 reaching a max of 1900.- Huge drop in Q1, and stable a low level
JHARKHAND
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Boost
MAY10
JUN10
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P10
OCT10
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FEB11
MAR11
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0.0
200.0
400.0
600.0
800.0
1,000.0
1,200.0
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Value off-take
%MS VALUE
- The value offtake shows rapid growth in 2010 reaching a max of 1100. - It shows a rapid downward trend in 2011
MAY10 JUN10 JUL10 AUG10 SEP10 OCT10 NOV10 DEC10 JAN11 FEB11 MAR11 APR11 MAY110
100
200
300
400
500
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800
900
Per Dealer Offtake
- The PDO shows an upward trend on 2010 with a max of 750. - 2011 PDOs are low .
Bournvita
12
MAY10
JUN10
JUL10
AUG10SE
P10
OCT10
NOV10
DEC10
JAN11
FEB11
MAR11
APR11
MAY11
0.0
500.0
1,000.0
1,500.0
2,000.0
2,500.0
3,000.0
3,500.0
4,000.0
4,500.0
5,000.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
Value offtake
%MS VALUE
- The value offtake in 2011 going down steeply. - Leading to market share erosion .
MAY10 JUN10 JUL10 AUG10 SEP10 OCT10 NOV10 DEC10 JAN11 FEB11 MAR11 APR11 MAY110
500
1000
1500
2000
2500
Per Dealer Offtake
- The PDO shows little growth in 2010. - It shows a downward trend from Q4 2010, throughout 2011
EAST
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BOOST
M J J A S O N D J F M A M
0.0
5,000.0
10,000.0
15,000.0
20,000.0
25,000.0
30,000.0
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Value Offtake
% MS Val
- The value offtake has shown an increasing trend in 2010 and reached its max in December. It shows a downward trend in 2011.
- The market share value depicts an upward trend in 2010 reaching max of 3% . In 2011, shows a downward trend
MAY10 JUN10 JUL10 AUG10 SEP10 OCT10 NOV10 DEC10 JAN11 FEB11 MAR11 APR11 MAY110
200
400
600
800
1000
1200
1400
Per Dealer Offtake
- The PDO has been fluctuating throughout but shows a growth trend reaching max in Dec 2010 . - It shows erosion in 2011 with a low of 640 in May.
BOURNVITA
14
MAY10
JUN10
JUL10
AUG10SE
P10
OCT10
NOV10
DEC10
JAN11
FEB11
MAR11
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0.0
10,000.0
20,000.0
30,000.0
40,000.0
50,000.0
60,000.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Value Offtake
%MS Value
- The value offtake shows a steady rise in 2010 with a max of 54000. In 2011, there is an abrupt decrease in Q1 , with low of 42000.
- The market share has been fluctuating throughout, and shows a downward trend in 2011 .
MAY10 JUN10 JUL10 AUG10 SEP10 OCT10 NOV10 DEC10 JAN11 FEB11 MAR11 APR11 MAY110
200
400
600
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1400
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1800
Per Dealer Offtake
- Shows a stable trend in 2010 holding on to aprox 1400. - 2011 shows a drop in PDO with a lowest in February.
15
Saliency – East
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Brand Saliency and Awareness
Market :- East, Base :- All Respondents 650 MUMS
Interpretations
- Boost TOM (Top of Mind) and Spontaneous Awareness at a very low level, not surprising considering low media investments.
- Bournvita has very low TOM even with higher media investments.
17
Market :- East, Base :- All Respondents 649 Kids
Interpretations
- TOM level higher compared to Mums, but shows a decreasing trend.
- TOM for Bournvita shows a fall along with Spont even after high GRP in all its quarters. .
18
Advertising: East
Claimed Ad Awareness,Source of Ad Awareness,
Spontaneous Recall,Prompted Recall,
Brand Link
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Market: Total , Base : All Respondents Mums
Interpretations
Boost being seen as a science based energy solution, for kids who are active in sports, Not seen (unlike Bournvita) as a nutrition provider.
20
Behavioral Brand Profiling: East
21
Market:- East , Base:- All Respondents 650
Interpretations
- The non tiers awareness of Boost significantly higher than Bournvita.
- No loyal or core consumers in Boost.
- Most of the users are occasional and repertoire users.
22
Market:- East, Base :- All Respondents (650) Mums
Interpretations
- While awareness of Boost is not an issue, conversion to consideration and usage is much lower than Bournvita.
- Need to generate trials.
23
Market :- East, Base :- All Respondents (650)
Interpretations
- Trials in Boost and Bournvita are going down.
- Absolute levels of trials for Boost are half that of Bournvita.
24
Results and Discussion
The results of this study are in the form of a SWOT Analysis .
Strength
Strong on science credentials
Used by kids who are physically very active
High reach in terms of number of outlets
Weakness
Awareness of Boost is high, however not considered part of the mainline HFD brands.
Basic HFD imagery parameters of nutrition and child growth are not associated with boost
Opportunities
Kolkata looks the most lucrative market to invest, contributing 1/3 of Browns sales in East, with increasing brownization trends noted in the long term
Bihar and Jharkhand also show good contribution with brownizaton trends
Weighted Distribution (stocking levels in top outlets) would improve Market share
Threat
Kolkata & and East Bihar are Horlicks strong markets. Increasing equity in Nutrition health space can lead to internal Cannibalization
25
Conclusions & Recommendations
Conclusion
QTRFC0208
QTRFC0308
QTRFC0408
QTRFC0109
QTRFC0209
QTRFC0309
QTRFC0409
QTRFC0110
QTRFC0210
QTRFC0310
QTRFC0410
QTRFC01110%
10%
20%
30%
40%
50%
60%
WB
Bihar+JKd
Kolkata
Patna
State/City contribution to Brown in East
- West Bengal contributing half to Browns, but with a declining trend
- Bihar showing an increasing trend @ 30%
- Kolkata decline is lesser, contributes more than Bihar + Jharkhand
- Patna contribution is very low.
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QTRFC0208
QTRFC0308
QTRFC0408
QTRFC0109
QTRFC0209
QTRFC0309
QTRFC0409
QTRFC0110
QTRFC0210
QTRFC0310
QTRFC0410
QTRFC011110%
12%
14%
16%
18%
20%
22%
24%
26%
East WB Bihar+JKd Kolkata Patna
Browns in category Volume trend
QTRFC0208
QTRFC0308
QTRFC0408
QTRFC0109
QTRFC0209
QTRFC0309
QTRFC0409
QTRFC0110
QTRFC0210
QTRFC0310
QTRFC0410
QTRFC01110%
5%
10%
15%
20%
25%
30%
35%
40%
East WB Bihar+JKd Kolkata
Boost in Browns Volume trend- Brownisation trend in east led by Bihar & Kolkata.- Boost contribution to Browns volume encouraging trend in Kolkata, weak in Bihar + Jharkhand.
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Recommendations
The recommendations in reference to this project are :-
1) The source of growth for BOOST in 2011 should be gaining from competition from North ,West and East.
2) Attract Bournvita users which include ‘ Sole users, Core Users and Non Core users.
3) Attract and gain share form competition ,ie, Bournvita.
4) Focus on Non Health Food Drink Households with kids.
5) Gain on opportunity from Boost Sole Users Households with Kids.
6) Buid on “Stamina to do more”.
7) Build Science Credentials
8) Imagery through Celebs, Packaging, Tonality
9) Induce trials by sampling .
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References
AC Nielsen
GSK.com
GSK-CH.in
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