CASE STUDY

ANALYSIS

Muscle-RDX in India
Suzanne Wootton Tutor: Christine Moody
N9108567 Word Count: 1486
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TABLE OF CONTENTS

1.0 STATEMENT OF PROBLEM ___________________________________ 3

2.0 PROBLEM ANALYSIS_________________________________________ 4

3.0 EVALUATION OF ALTERNATE SOLUTIONS ______________________ 5

4.0 RECOMMENDED COURSE OF ACTION _________________________ 8

5.0 REFERENCES ______________________________________________ 9

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1.0 STATEMENT OF PROBLEM

Following proven success in the growing sports nutrition market, Indian healthcare company Strength
Pharma (SP) pursued a new, strategic initiative. The initiative would consist of a key product, Muscle-
RDX, focused on enhancing endurance over an extended duration.

As India’s first home-made whey protein for high-endurance athletes, SP aimed to boost their position
in the ₹7.3 billion sports nutrition market in India. In addition to boosting their position, SP explicitly
pursued brand awareness and knowledge, as well as avoidance of stagnation through brand attitude,
ultimately achieving long-term stability.

The company aimed to achieve these objectives by producing a clinically proven, Food Safety and
Standard Authority of India (FSSAI) approved product. Despite the proof of success, SP still faces
heightened challenges with trust.

Market research discovered alarming facts, with 85% of male athletes expressing dissatisfaction with
formulas of Indian origin, and majority expressing long term struggles with poor performance from
current products. Once a flourishing market of counterfeit supplements, and no precedent for Indian-
made endurance protein, the SP advertising team faces a substantial advertising challenge - gaining,
and retaining, trust from the market to create long-term stability with ever-increasing demand.
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2.0 PROBLEM ANALYSIS

Factors Relevance
Exponential growth The supplement industry had grown by 17% in 2015. As demand and growth
within industry increases, so does competition, thus making continual penetration
challenging. Consumers want for the latest products effect the longevity of
others (Businessnews Publishing, 2014), making constant development and
innovation from Muscle-RDX key.
Long term distrust Initial research exposed long term struggles with current products,
with current products particularly those of Indian origin. Fitness professionals also expressed their
concern over the effectiveness of Indian-based products in comparison to
key international competitors.
Clinical trials prove Research groups indicated the importance of clinical trials in whey protein
effectiveness of powders. Fortunately, Muscle-RDX executed these trials and proved
RDX effectiveness in helping high-endurance athletes increase their stamina.
Considering the importance of trust in ongoing purchase, as well as the
influence professionals have, it is paramount that transparency with clinical
studies and success-rates are conveyed.
₹4,800 – 5,400 price The price of ₹4,800 - 5,400 per 5-pound bag is standard in comparison to
range competitor’s (Dewani & Nigam, 2016). Whilst this may seem effective, it fails
to implement a modern and innovative pricing strategy. A focus group
participant exclaimed “I am willing to pay a premium to get a solution.”
Studies show the psychological correlation between price and quality, and
how premium pricing strategies can create an effective placebo effect (Kim &
Jang, 2013). The standard price of this product has the potential to be both
effective and ineffective for this product.
Psychographic The household income of the five psychographic segments range from ₹1
segment evaluation million, to ₹1.5 & 2 million in the two wealthiest segments. It should be noted
that the two segments with highest income, also have the longest-term goals
for their endurance career. This is relevant to the future target market,
pricing strategy, and planning for the longevity of Muscle DRX.
App has been The inclusion of the app opens opportunities for ongoing support and proof
developed in of success, with coaches believing it will assist in ‘altering athletes behavior,
assistance thereby increasing chances that they will maintain their training regimen’. It
is important to note, however, that lack of clinical trials for the apps
effectiveness can be disadvantageous.
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3.0 EVALUATION OF ALTERNATE SOLUTIONS

Solution Advantages Disadvantages
Reposition Muscle Protein whey powder has 96% share ▪ Risk failure due to lack of
DRX powder to in value sales of protein popularity and product
protein bars and supplements, protein bars has knowledge
other forms of remaining 4% ▪ Research shows consumers are
protein supplements ▪ Potential for growth in under- already skeptical and untrusting
developed market (this may be developing too far
▪ Limited competition from the norm)
▪ Unique competitive advantage
▪ Ongoing innovation retaining
market interest
Shift target market to Segments: “I do not want to suffer a ▪ Prime consumers are proven to
older male heart attack,” (A) and “I want to be 18-35 years old
psychographic present myself as an example to ▪ Potentially creates a smaller
segments (instead of inspire others,” (B) are: market, going against objective
all endurance ▪ aged 35-40 to gain brand awareness
athletes, and in ▪ have the highest income
addition to ▪ have long term aspirations in
professionals) endurance training (most
important)
▪ the latter segment wants peers to
follow, meaning word-of-mouth
advertising (earned)
Advertise discounts ▪ Encouraging increased ▪ Potential to be deemed invasive
through the app for performance and too personal
personal ▪ Encouraging ongoing purchase ▪ Requires athletes to be actively
achievements and ▪ Positive reinforcement has been using app (may forget
long-term use proven to be synonymous with occasionally, causing
improved performance discouragement)
▪ Taps into Maslow’s highest need, ▪ Does not have a high reach
personal actualisation
▪ Builds brand affinity
▪ Emotional connection is a proven
factor of product success

Reposition to luxury ▪ Places product in a segment on
item and implement its own, meaning lowered
a luxury pricing competition
strategy ▪ Builds brand aspiration
▪ Positively effects consumer’s
psychological belief of product
value and quality
▪ Directly targets segments A and
B
▪ Taps into Veblenian Social-
Psychological Model, attracting
both desiring prestige and
utilitarian fulfilment
Professional athlete ▪ Muscle DRX users
endorsement predominantly partake in running
and cycling, meaning a wide
array of sports need not be
covered
▪ Millennials place greatest trust in
recommendations of
peers/others
▪ Opportunity to advertise at
upcoming events where
endorsing athletes compete
(wide exposure)
Continue to promote ▪ Continued, repetitive advertising
as-is is easy for consumers to
remember
▪ Builds a sturdy brand image
▪ Change can deteriorate trust
▪ Trials show promising results for
future Muscle-RDX usage
▪ Substantial revenue in 2015
proves brand affinity
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▪ Can cause consumer
disgruntlement
▪ Risk consumers reverting to
competitor’s products
▪ Case study states quotes from
coaches about happiness in an
‘affordable product for their
athletes’
▪ Celebrity endorsement in India is
heavily saturated
▪ Data shows influencer
endorsement can largely have a
negative effect due to
questioning transparency (trust is
already an issue)
▪ Expensive method of promotion
▪ Potential to bore the target
market (become stale and
stagnant)
▪ Easier to forget
▪ A large risk (rarely has effective
payoff)
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Reposition to a ▪ Ensures product use longevity ▪ Can still become stale and
subscription ▪ Lowers loyalty shifting stagnant
purchase ▪ Potential to leave consumers
angry if money is invested but
competitors introduce new and
better products
▪ Restricts room for improvement
and immediate innovation
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4.0 RECOMMENDED COURSE OF ACTION

It is recommended that Strength Pharma employs two key courses of action:
▪ shifting target market to psychographic segment A and B
▪ advertise through app, targeting achievements and long-term use
These effective, efficient, and feasible solutions will work in tandem to combat the advertising problem
- product stagnation, and assist in the company’s objective - long-term stability.

The market is expanding exponentially, making it vital for SP to retain consumers already interested in
Muscle-RDX. Losing consumer’s to growing competition is a high risk, making a frequent and targeted
approach more suitable than a reach campaign.

Targeting psychographic profiles A and B is advantageous predominantly due to the long-term goals
these segments pursue. Their ability and will to motivate and involve others is the second key benefit.
Word-of-mouth, or earned advertising, is generally the best form due to its low cost and complete
transparency.

Advertising through the app welcomes competitive advantage due to no other brand producing an app
available on most platforms. Despite a saturated market, this will allow SP to indirectly compete with
other brands. Additionally, and indirectly, trust will be built through the app’s ability to show
performance whilst using Muscle-RDX. This feature builds brand affinity within direct consumers, but
also professionals, leading to further and future recommendations.

Apps allow for highly targeted ads, along with tracking and measurable success. Personalised ads
and achievement rewards encapsulates psychological theories of social status, as well as fulfils
Maslow’s highest need – self achievement.

To implement these recommendations, SP is advised to continue direct-to-consumer (DTC)

advertising, as well as print and online ads targeting fitness professionals. It is advised through this
continued advertising that SP shifts the focus onto the key competitive advantage, the app. The
protein supplement in addition to the app allows the package to be promoted as a ‘second’ or ‘free’
trainer, thus appealing to new athletes, experienced athletes, and their trainers and coaches. This
unique selling point in addition to targeted personal advertising and earned word-of-mouth will work in
tandem to prevent the product from becoming just another supplement.
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5.0 REFERENCES
Businessnews Publishing. (2014). Summary : trading up - michael silverstein and neil fiske. Retrieved
from https://ebookcentral.proquest.com

Dewani, P., & Nigam, A. (2016, November 30). MUSCLE-RDX: PRICING, PACKAGING, AND
DEMAND FORECASTING FOR A NEW PRODUCT

Kim, D., & Jang, S. (. (2013). Price placebo effect in hedonic consumption. International Journal of
Hospitality Management, 35, 306-315. doi:10.1016/j.ijhm.2013.07.004