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