Introduction• A British pharmaceutical 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
Organization Structure Board of 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
Organization Culture
The core values • Patient Focus• Transparency• Integrity• Respect for people
85%
15%
GSK PRIDE
81%
19%
CUSTOMER FOCUSED
84%
16%
ETHICAL BEHAVIOUR
97%
3%
RECOMMEND A FRIEND
100%
APPROVE OF LEADERSHIP
Sources1. GSK WEBSITE2. Glassdoor INDIA
Vision & Mission Vaccines
Mission and 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 cultureConquer the challanges that they face as an industry and as a society
Pharmaceuticals
Mission and VisionThe mission is to help people do more, feel better and live longerGrow a Diversified business Deliver more products of valueSimplify the operating modelCreate a culture of individual empowermentBuild trust
Consumer Healthcare
Mission and VisionThe global quest is to improve the quality of human life by enabling people to do more, feel better and live longerTo deliver innovative products to help people from around the world liver better livesTo 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
Porter’s 5 forces
Threat of new 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
Nutrition
OTC Medicine
Oral Care
Skin Health
Industry Life Cycle
PESTEL Analysis
Source-Strategicplanet.com
Organic GrowthAnsoff ‘s Grid
High PenetrationContinuous
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
Pres
ent
New
Market
Product
Horlicks
• British brothers William 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!
Customer PreferencesProduct Attributes Influencing the Purchase Decision The following product attributes were identified as influencing the purchase
decisions of the customers:a) Nourishmentb) Colour c) Palatability d) Economy e) Shelf-presence f) Packaging g) Brand Imageh) Promotions
Source-A STUDY ON CONSUMER PREFERENCE TOWARDS HEALTH FOOD DRINKS Mrs.J.Tamilselvi Mr. M.Kirubaharan
Brand Extensions
• Junior horlicks 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.
Marketing Mix
Oldest brand Constantly evolved Has targeted
almost all the segments of the population.
Lowest Pricing in comparison to
competitionDifferential 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 campaign2.Mental nutrition campaign
Product Price
PlacePromotion
Distribution Procedure
Manufacture
Packed in drums
Packing Stations
Jars & Cartons C&F/ Depots
Institutional Buyers Distributors
Whole Salers Retailers
Segment & Targets
Beha
vior
al
Psyc
hogr
aphi
c
Dem
ogra
phicAge
• Kids• 1-4 Age• 5-7 Age
• AdultGender• Womens• Pregnent
Ladies• New
Mothers
Health ConsciousRecovery/Energy Regain
Growth OrientedSports
Positioning
.
Points of parity
Points of difference
Variety of Products
NutritionalValue- Supplemet nutrition
Taste- Improves the taste
Pricing
innovation
Brand Mantra
Executional properties/ Visual Identities
Values/Personality/Character
Trust worthy- Brand with long history
Variety- 9 brandExtentionsavailable
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.
AdvertisingUsing the same conceptOf Nutrition Supplement
Value Proposition of filling the nutrition gaps
Packaging sizes-Available in various Packaging sizes
Brand identity-Health Drink, Recovery Drink, etc
innovativeTaglines- Taller, Stronger, Sharper, etc
Contoured bottle-Innovation of packaging based on Repositioning, needs, Changing Behaviour of consumers
Brand imageas a health drink
Horlicks Logo-Identifier
Financials for GSK’s Consumer HealthCare
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
Competition Analysis
Direct competitors
Horlicks Bournvita Boost 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,1kg
250g,750g
Price (1kg) RS 394 Rs 380 Rs 400 Rs 464 Rs 1050
SWOTStrengths• market supremacy• brand loyalty• own niche markets. • ability to rediscover
itself has also kept it in good shape.
Weakness• distribution channel• northern and western
market• Invested in not so
successful products such as the cereal bar.
Opportunities• 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.
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
Future Prospects
• Other hot 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
McKinsey 7S analysisHard SkillsStructure- GSK follows a mix of both functional and divisional system of managementStrategy- 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 everybodySystems- There are various committees that undertake formal and informal procedure to support the functioning strategy and structure
Soft skillsStyle- 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 peopleStaff- 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 developmentShared values- GSK and its employees focus on the same goal of improving lives of people and this is seen through out the organisation
Quality Assurance Reports by NABL accredited laboratory
Thank You
Group 9Srishti ManochaDevank B PandyaDhruv AdlakhaShubham JainSourav Jain