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This document provides an analysis and recommendations for growing the market share of Boost energy drink in the North and West markets of India. It summarizes that Boost currently has an 11% market share but the goal is to increase it to 18% annually. Two options are analyzed: repositioning the brand or focusing on new markets. The recommendation is to focus on the North and West markets where share is currently low and penetrate rural areas. A multi-year marketing strategy is proposed that includes new products, pricing, distribution expansion, and promotional activities like sponsorships and social media.
This document provides an analysis and recommendations for growing the market share of Boost energy drink in the North and West markets of India. It summarizes that Boost currently has an 11% market share but the goal is to increase it to 18% annually. Two options are analyzed: repositioning the brand or focusing on new markets. The recommendation is to focus on the North and West markets where share is currently low and penetrate rural areas. A multi-year marketing strategy is proposed that includes new products, pricing, distribution expansion, and promotional activities like sponsorships and social media.
This document provides an analysis and recommendations for growing the market share of Boost energy drink in the North and West markets of India. It summarizes that Boost currently has an 11% market share but the goal is to increase it to 18% annually. Two options are analyzed: repositioning the brand or focusing on new markets. The recommendation is to focus on the North and West markets where share is currently low and penetrate rural areas. A multi-year marketing strategy is proposed that includes new products, pricing, distribution expansion, and promotional activities like sponsorships and social media.
V SHARADA vsharda17@iimk.ac.in 08589811480 VISWESH S viswesh1990@gmail.com 08589811483 S AKSHAYA sakshaya17@iimk.ac.in 08589812062
EXECUTIVE SUMMARY EXECUTIVE SUMMARY: This case was commissioned to examine the growth opportunities of Boost energy drink ( a part of the GSK-CH) in the Indian HFD category. The study draws attention to the fact that in 2013, market share of Boost was 11% and the planned growth rate was 12%. The shares of their key competitors such as Bournvita, Complan, and Horlicks across India were 14%, 12% and 46% respectively. Though HFD being a mature market, the management expected Boost to deliver higher growth of 18% in keeping with the organisations objectives. The recommended options were: a) To extend the brand positioning from solely energy proposition to taste and nutritional values b) To focus on the Northern and Western Indian markets where its current share is low We found that the second option was more feasible as it provided scaling and penetration of fast growing rural markets over the first option which involved huge investments in repositioning. The addition of nutrients would be highlighted in the regular variant and would not be highlighted in the new flavours. B u s i n e s s
G r o w t h
R a t e
Relative Market Position HIGH H I G H
LOW L O W
? DOG CASH COW BCG PRODUCT MATRIX FOR BOOST IN INDIAN MARKETS SOUTH Horlicks 46% Boost 11% Bournvita 14% Complan 12% Pediasure 4% Others 13% All India Horlicks 41% Boost 25% Bournvita 6% Complan 9% Pediasure 6% Others 13% South Horlicks 25% Boost 4% Bournvita 35% Complan 18% Pediasure 6% Others 12% North Horlicks 16% Boost 4% Bournvita 44% Complan 13% Pediasure 4% Others 19% West COMPETITOR ANALYSIS- REGION WISE 1
GROWTH OPTIONS AVAILABLE FOR BOOST: AN ANALYSIS PROS CONS PROS CONS REPOSITIONING FROM ENERGY TO NUTRITION & ENERGY FOCUS ON THE NORTH AND WEST MARKETS The repositioning of the brand from energy to nutrition might cause us to lose the unique differentiation, confusing the existing buyers. Also, a one for all solution by Boost might reduce credibility. Whereas, focussing on the North and West markets gives us the benefit of scale and ownership of the category, nation wide.
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BOOST - MARKETING & BRAND BUILDING IN NORTH AND WEST HFD MARKETS IN INDIA (1/3) Jar Refill - Malt based HFD in chocolate flavour - Nutrients: Iron, Vitamin-D,C and B, Calcium, Copper -Variants: Choco clair Choco Nut Choco Caramel Choco Zing
Sports magazines Celebrity endorsement YouTube channel Social media marketing BTL activities Sales promotion Sports event sponsors
Supermarket Hypermarket Grocers Kirana Stores Schools/Colleges Sports Academy Gyms Trains Indian Armed Forces FUTURE MARKETING MIX STRATEGIES Product Price (INR)s Place Promotion 90gm 25 200gm 99 94 500gm 204 198 750gm --- 310 1Kg --- 375 Introducing: 25gm boost sachet, each priced at Rs.8 Y1 5 Metros Y2 5 Mini Metros Y3 33 Tier-2 cities: Surat, Baroda, Faridabad etc. Y4 28 Tier-3 cities: Noida, Gurgaon, Raipur etc. Y5 Scaling to other targeted geographies inclusive of rural markets PHASED SUPPLY CHAIN STRATEGY FOR NEXT 5 YEARS New product variants and SKUs - A smaller size trial pack (25gm) From survey we found that first time buyers dont want to spend much amount on bigger SKUs. - Launch 2 NEW Flavours: CHOCO CARAMEL: 3X Stamina, now in a delectable caramel flavour and CHOCO ZING: Benefits of extra Iron and Dietary fibers in a yummy chocolate twist!
2X Chocolaty 3X Stamina A d v e r t i s i n g
A d - G o a l
S a l e s Time MEDIUM HIGH HIGH N/A Build brand awareness Build brand preference Focussed marketing in target areas to create brand loyalty LOW Since product marketing is focussed on the previously unpenetrated North and West markets State of current HFD market in India RENEWED PLC OF BOOST IN TARGET MARKETS Image Source: http://blog.deonbotha.com/wp-content/uploads/sites/4/2011/09/dffc0-productlifecycle.gif 3
SPORTS ACTIVITIES MASS MEDIA VIRAL MARKETING - INTERNET AND SOCIAL MEDIA Throughout the time frame, ensure strategic placements of Vending Machines or dedicated GSK Kiosks to dispense Boost in various schools and colleges (See Appendix for Smart Cards and Vending Machine Design.) RECOMMENDATIONS: PROMOTION AND ADVERTISING STRATEGIES BOOST - MARKETING & BRAND BUILDING IN NORTH AND WEST HFD MARKETS IN INDIA (2/3) PROMOTION STRATEGIES YEARS 1&2 City marathons like Delhi Marathon, Mumbai Marathon etc. School sports day events Regional sports tournaments Sponsorship and advertising like IPL, World Cup Product placement in movies and realty shows like MTV Roadies, Big Boss and vernacular television Dedicated YouTube channel Advertising in Yahoo!, Rediff, MSN, Facebook, Twitter homepages Tie-up with Zynga games to develop android games Online contest such as quiz based on brand heritage and recognition Viral marketing through social media Tie-ups and contracts with boarding schools/private colleges/ gyms/ corporate clubs Building relationship with Engg/ MBA/ Medical Colleges Sponsor events like Boost Treasure Hunt, Rock-Band competitions etc. SALES PROMOTION
STRATEGIC PARTNERS BTL ACTIVITIES PROMOTION STRATEGIES YEARS 3, 4 & 5 Targeting wholesalers and retailers with margins Free samples and freebies Qtty and price discounts Road shows Promotional vans distributing hot/cold boost in rural areas TIE UPS/ CONTRATCS Trained sales personnel deployed at various retail stores near shelves which stock Boost Direct e-mail and PR activities towards target retailers Influencing buying decisions at the point of purchase through hoardings, banners and other promotional activities Dedicated shelf for boost in supermarkets POINT OF PURCHASE 1 2 Tie-up with Indian railways to provide boost along with existing beverage choices in trains and railway canteens Sales and service within the Armed Forces distribution channel 4
BOOST - MARKETING & BRAND BUILDING IN NORTH AND WEST HFD MARKETS IN INDIA (3/3) PACKAGING BOTTLE DESIGN: 1. A Sleek design, with Teflon/special wax coating inside the bottle: this would ensure the non- sticky flow of Boost. Can be sold at a premium 2. A FREE FLOW CAP as shown in the figure, to ensure ease of flow and comfort to the users. Prevents use of spoons: A source of clumping of Boost. LABEL: 1. For the regular pack, retain the design, highlighting the 3XStamina 2. For the variants, focus on the different flavours and highlight them, keeping stamina in the background COLOUR: Regular pack: RED Choco Zing: Red with molten chocolate lava image in the bottom Choco Caramel: Red and Golden bottle TO HIGHLIGHT: In all the variants: Highlight chocolaty taste Retain 3X Stamina across variants In regular pack: Highlight nutritional content PROPOSED TAGLINES: Jeet pehle kabhi itna swadisht nahi tha Taste in style, Run a mile BOOST. Taste your success Taste. Energise. Revitalise Yeh swaad hai jo josh mein badlein
The new proposed lid cap for the Boost bottles: Addressing the common problems of storage and coagulation.
The existing design is as shown. 5
INGREDIENT BRANDING:
Energy Dietary Fibres Vitamin D Calcium Sodium
To mention the ingredients clearly in all the variants. Caters to the needs of the nutrient conscious customer APPENDIX-1
Figures for Boost - Year 2013
Figures for Boost - Year 2018 Current Sales - All India 5.3344 Expected Sales - All India 10.109 Current Sales - South 4.978 Expected Sales - South 7.659 Current Sales - North 0.1432 Expected Sales - North 0.98 Current Sales - West 0.1432 Expected Sales - West 0.98 Current Category Penetration - North 2.20% Expected Category Penetration - North 7.60% Current Category Penetration - West 2.40% Expected Category Penetration - West 8% Current Sales through Grocers 2.93392 Expected Sales through Grocers 6.78 Current Sales through Chemists 1.60032 Expected Sales through Chemists 3.6987 Current Sales through Modern trade 0.586784 Expected Sales through Modern trade 1.356 Current Sales through Paan Plus 0.213376 Expected Sales through Paan Plus 0.49316 Mkt Share in North and West 4% Mkt Share in North and West 8% The Market share has been doubled Table 1: Figures to Double the Market Share of Boost in North and West Markets NOTE:
Calculations done with the assumption that the HFD Indian Market is growing at a CAGR of 9%
Calculations made using figures provided in Case Exhibits 4 13
All sales figures in INR Billion ( i )
APPENDIX-2 VENDING MACHINE IDEA: TO PLACE THESE MACHINES IN SCHOOLS, COLLEGES & SPORTS ACADEMIES CONCEPT IDEA FOR THE KIOSK CONCEPT IDEA FOR THE VENDING MACHINE SMART CARD FOR STUDENTS CONCEPT IDEA FOR THE VENDING MACHINE Options available in the Kiosk would include: Hot Boost (in regular as well as flavour variants) Cold Boost(in regular as well as flavour variants) Hot Horlicks Cold Horlicks Supplementary options available though the Kiosk would be branded with the name of Boost. ( i i )