Downloaded 399 times
More Related Content
Similar to GSK Horlicks Presentation
GSK Horlicks Presentation
- 2. Introduction • A Britishpharmaceutical company headquartered in Brentford, London • Established in 2000 by a merger of Glaxo Wellcome and SmithKline Beecham • GSK was the world's sixth largest pharmaceutical company as of 2015 • Slogan : Do more, feel better, live longer • Pharmaceutical division alone employs 16646 people with a revenue of $36.65 Billion • GSK products include Sensodyne, Aquafresh, Horlicks, Breather Right Nasal Strips, Nicorette • Chairman : Philip Hampton • CEO : Andrew Witty • Source- www.forbes.com
- 3. Organization Structure Boardof Directors Chairman and CEO Deputy Chairman Executive Directors Marketing Management department Strategic Department Product Management Department Human Resource Department Selection and recruitment department Finance Department Audit Department Quality Control Department Product Line Quality Control Department Product Quality Control Department Sales management department National Sales Department Regional sales manager Branch Sales manager Area sales manager Sales Officer Salesman Trade net Department International trade department General administration Department Planning and Finance Department Overseas and domestic branch office Committee on administraion Source- www.gsk.in
- 4. Organization Culture The corevalues • Patient Focus • Transparency • Integrity • Respect for people 0% 85% 15% GSK PRIDE 81% 19% CUSTOMER FOCUSED 0% 84% 16% ETHICAL BEHAVIOUR 0% 97% 3% RECOMMEND A FRIEND 0% 100% APPROVE OF LEADERSHIP Sources 1. GSK WEBSITE 2. Glassdoor INDIA
- 5. Vision & Mission Vaccines Missionand vision Mission-to improve the quality of human life by enabling people to do more. Operating responsibly and making sure that our values is embedded in our decision making and our culture Conquer the challanges that they face as an industry and as a society Pharmaceuticals Mission and Vision The mission is to help people do more, feel better and live longer Grow a Diversified business Deliver more products of value Simplify the operating model Create a culture of individual empowerment Build trust Consumer Healthcare Mission and Vision The global quest is to improve the quality of human life by enabling people to do more, feel better and live longer To deliver innovative products to help people from around the world liver better lives To become the indisputable leader in the industry not simply in terms of size but how we use that size to achieve our mission and improve the quality of human life Source- 1.GSK India 2.GSK Pharmaceuticals 3.GSK Vaccines 4.GSK Consumer Healthcare
- 6. Porter’s 5 forces Threat ofnew entrants: • The cost of entering - extremely high • Economies of scale – very low margins • The patents - a huge barrier • brand value- GSK a famous and appreciated brand in the industry. • FDA regulations- strictness of the regulations will act as a barrier Threat of substitutes: • Generic medications – High threats due to medicines from expired patents are easily copied • Complementary Alternative Medicines- the same product is delivered except just the brand name and price Bargaining power of buyers: • Individual buyers do not pose a significant threat to GSK. • Low risk because high quantity of buyers against less quantity of suppliers Bargaining power of suppliers • GSK’s major suppliers are labour, Raw material providers, patients in clinical trials, study staff and others ranging from production marketing and distribution. High influence of suppliers as they hold the key to timely deliveries and quality material Rivalry among competitors: • cut throat competition • The industry is very aggressive and dynamic and GSK has used foresights and planning which has kept them in the industry for so long
- 7.
- 8.
- 9. Organic Growth Ansoff ‘sGrid High Penetration Continuous product development Rural Penetration is the new horizon Biotech Products. Investing into packaged foods and energy supplements in consumer healthcare segment Diversification possibility in biologics and investing in technologies for sustainable development Developing Countries in need of cheaper drugs and consumer health care products. Present New PresentNew Market Product
- 10. Horlicks • British brothersWilliam and James Horlick developed formula for Horlicks • In 1883 they obtained the U.S patent for their drinks’ ability to mix up in liquid • Got popular in South India mainly because of its water solubility and the fact that regions of South India are milk deficient. • Over the time, many new flavors dedicated to children, women, breast feeding mothers, etc. were introduced. • Flagship brand for GSK-HealthCare contributing more than 70% of sales • Packaging has been a main focus for different product offerings. • The only health drink, clinically proven in India to make kids taller, stronger and sharper!
- 11. Customer Preferences Product AttributesInfluencing the Purchase Decision The following product attributes were identified as influencing the purchase decisions of the customers: a) Nourishment b) Colour c) Palatability d) Economy e) Shelf-presence f) Packaging g) Brand Image h) Promotions Source-A STUDY ON CONSUMER PREFERENCE TOWARDS HEALTH FOOD DRINKS Mrs.J.Tamilselvi Mr. M.Kirubaharan
- 12. Brand Extensions • Juniorhorlicks 1-2-3 for kids in the age group 1-3 • Junior horlicks 4-5-6 for kids in the age group 4-6 • Mothers Horlicks for pregnant and lactating women • Women’s Horlicks for women in the age group of 30 and above • Horlicks Ninja the basic malted Horlicks drink now available in chocolate, kesar badam and vanilla • Horlicks Growth plus for children with growth related deficiencies • Horlicks Cardia for people having heart related issues • Horlicks Lite, low on sugar and low on calories, for people who like to keep fit • Horlicks Chill Dood, a ready to drink flavoured milk product • Horlicks Foodles Noodles, a brand extension into the noodles category • Horlicks Biscuits Oats and NutriBar, entry into the healthy snack category.
- 13. Marketing Mix Oldest brand Constantly evolved Hastargeted almost all the segments of the population. Lowest Pricing in comparison to competition Differential pricing for different segment products Strong distribution in South & East India. Distribution weak in north & west India. Segment wise targeting the decision makers, users. 1.Physical health campaign 2.Mental nutrition campaign Product Price PlacePromotion
- 14. Distribution Procedure Manufacture Packed in drums Packing Stations Jars& Cartons C&F/ Depots Institutional Buyers Distributors Wholesalers Retailers
- 15. Segment & Targets Behavioral Psychographic Demographic Age •Kids • 1-3 Age • 4-6 Age • Adult Gender • Women • Pregnant Ladies • New Mothers Health Conscious Recovery/ Energy Regain Growth Oriented Sports
- 16. Positioning . Points of parity Pointsof difference Variety of Products Nutritional Value- Supplemet nutrition Taste- Improve s the taste Pricing innovation Brand Mantra Executional properties/ Visual Identities Values/Personality/Character Trust worthy- Brand with long history Variety- 9 brand Extentions available Consumer Target This is an every day product. Target differs with each variety of offering Consumer Insight Food drinks that are nutritious and available at competitive pricing and easily available Customer need state A milk additive that improves the nutrition level and taste of the milk. Competitive Product Set Complan, Bournvita, Boost, Etc. Substantiators (RTB) Availability- Excellent Distribution acquisition in recent past Consumer Takeaway Horlicks gives one of the best malted food drinks additive. With a great variety to choose from that provides nutrition and improves the taste of the milk. Advertising Using the same concept Of Nutrition Supplement Value Proposition of filling the nutrition gaps Packaging sizes- Available in various Packaging sizes Brand identity- Health Drink, Recovery Drink, etc innovativeTaglin es- Taller, Stronger, Sharper, etc Contoured bottle- Innovation of packaging based on Repositioning, needs, Changing Behaviour of consumers Brand image as a health drink Horlicks Logo- Identifier
- 17. Financials for GSK’s ConsumerHealthCare Source- GSK financial statement 2015-16 • The turnover has remained constant in relation to the last year • Profit before tax and profit before interest and tax has also seen an increase • Net profit is also seeing a rising trend • Current ratio has also increased which shows the company’s ability to pay off its current liabilities and still have a surplus
- 18. Competition Analysis Direct competitors Horlicks BournvitaBoost Complan Pediasure Company GSK CH Cadbury GSK CH Heinz Abbott Market share 53 17 13 11 1 Base Malt and cocoa cocoa Malt and cocoa cocoa Soy POD Taller, stronger and sharper Physical energy and endurance Energiser for daily sports Stronger bones and muscles Complete nutrition with fibre SKU’s 100g,200g,500g, 1kg 100g,200g,500g, 1kg 100g,200g,500g, 1 kg 25g,200g,500g,1 kg 250g,750g Price (1kg) RS 394 Rs 380 Rs 400 Rs 464 Rs 1050
- 19. SWOT Strengths • market supremacy •brand loyalty • Presence in a lot of niche markets • Distribution channel • ability to rediscover and re- innovate Weakness • Marginal presence in northern and western market • Invested in not so successful products such as the cereal bar Opportunities • Increasing market share in northern and western part • increase its efforts in advertising as well as distribution channel in the rural market Threats • growing influence from Bournvita • Claims are challenged in the courts which has brought bad publicity for the brand • Emergence of Patanjali’s Power Vita
- 20. Euro Monitor Report Headlines •Other hot drinks registers current retail value growth of 15% to reach Rs68.8 billion in 2015 • GlaxoSmithKline Consumer Healthcare Ltd remains the leader and accounts for 64% of retail value sales • Other hot drinks is expected to register a retail value CAGR of 6% (constant 2015 prices) over the forecast period to reach Rs91.5 billion in 2020 • Children and teenagers remained the main target for such products. However, over the review period this age-based target group widened to include adults COMPETITIVE LANDSCAPE • GlaxoSmithKline Consumer Healthcare Ltd continued to lead the category and accounted for 64% of retail value sales in 2015 • Women’s Horlicks differentiated the brand from the others by positioning it on a “bone health” platform, which is a common health issue among older women. The positioning benefited the brand’s performance. Junior Horlicks was also re-launched with new claims, new packaging and a new mascot Source-Euro monitor report
- 21. Future Prospects • Otherhot drinks is expected to remain dominated by chocolate-based flavoured powder drinks as the main consumers of this type of drink are children who like the chocolate taste most • With the growing popularity of healthy lifestyles, family nutrition will be of prime importance and the consumer base is expected to expand to include adults and teenagers • Other hot drinks is expected to register a retail value CAGR of 6% (constant 2015 prices) • Other hot drinks – currently perceived as beverages for children, which contain nutritional supplements – will increasingly be considered family drinks due to growing concern for healthy living for all • With the rising holistic approach towards family and individual health, other age groups will become more interested in consuming other hot drinks such as chocolate- and malt-based flavoured powder drinks • Targeting consumers to be based on age or specific health condition to be continued Source-Euro monitor report
- 22. McKinsey 7S analysis HardSkills Structure- GSK follows a mix of both functional and divisional system of management Strategy- To respond to the changes in the external environment GSK has focussed on developing differentiated products for all sections of the population so there is something for everybody Systems- There are various committees that undertake formal and informal procedure to support the functioning strategy and structure Soft skills Style- The leadership style in the organization focuses on the mission and vision in cohesion with the organisation culture which promotes transparency, integrity and respect for people Staff- GSK’s staff has been its source of power and the company spends a lot on employee development, provides opportunities for socialising. Skills-GSK employs people with varied skills and also focuses on skill development Shared values- GSK and its employees focus on the same goal of improving lives of people and this is seen through out the organisation
- 23. Quality Assurance Reportsby NABL accredited laboratory
- 24. Thank You Group 9 SrishtiManocha Devank B Pandya Dhruv Adlakha Shubham Jain Sourav Jain
Editor's Notes
- #5 https://www.glassdoor.co.in/Reviews/GlaxoSmithKline-India-Reviews-EI_IE3477.0,15_IL.16,21_IN115.htm?filter.defaultEmploymentStatuses=false&filter.defaultLocation=false&filter.employmentStatus=REGULAR 85% of employees are proud to work for GSK 81% of employees confirmed that the way we work at GSK places patients, consumers, and customers at the heart of our business. 84% of employees said their work environment encourages ethical behaviour even when under pressure to meet business objectives. 93 %of GSK employees understand what constitutes ethical business practices and conduct in their job.
- #6 Need to streamline Clarity between vision and mission
- #10 Present market penetration is high; with new product development needed all the time. There are markets, such as the US, in which GlaxoSmithKline is strong and there are other areas, such as smaller countries, in which growth can be seen. Market Development: looking at entering a new market, that of developing countries with cheaper drugs that can save lives. Moreover for the consumer health care section entering into new market with a high proportion of adult population, similar to the Indian model for Horlicks New Product Development: looking at buying into the biotech business, in order to grow its product development. Getting into the consumer health care sector with more products such as Packaged foods and it can also move towards energy supplements, another segment of the population. Product/Market diversification: diversify in the sense of consumer products and medicines; could look at working with other companies to create biologics and could also look at the distribution network in the north and west part of the countries which contribute hardly 10-15% to Horlicks market share
- #21 On International Women’s Day, the company launched a promotion campaign that focused on mother-daughter relationships and engaged via social media with a Twitter tag #LoveYouMaa (Love you Mom). in September 2015, the company launched its “Unlock” campaign, which focused on the importance of supplementing a child’s regular diet to fill nutrition gaps. The company continued to focus on extensions of its flagship product Horlicks, such as Horlicks Junior, Mother’s Horlicks and Women’s Horlicks. Other hot drinks continued to be dominated by international manufacturers in 2015. GlaxoSmithKline Consumer Healthcare’s flagship brand Horlicks remained the most popular product in other hot drinks because of its long-standing presence in the country.