Iim Kozhikode Jagerbomb Round1

8/10/2019 Iim Kozhikode Jagerbomb Round1

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TEAM-JAGERBOMB

INSTITUITION IIM KOZHIKODE

V SHARADA [email protected]

VISWESH S [email protected]

S AKSHAYA [email protected]


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EXECUTIVE SUMMARY

EXECUTIVE SUMMARY:

This case was commissioned to examine the growth opportunities of Boostenergy 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 was11% and the planned growth rate was 12%.The shares of their key competitors such as Bournvita, Complan, andHorlicks across India were 14%, 12% and 46% respectively.

Though HFD being a mature market, the management expected Boost todeliver higher growth of 18% in keeping with the organisationsobjectives.The recommended options were:a) To extend the brand positioning from solely energy proposition to taste

and nutritional valuesb) To focus on the Northern and Western Indian markets where its current

share is lowWe found that the second option was more feasible as it provided scaling andpenetration of fast growing rural markets over the first option which involvedhuge investments in repositioning.The addition of nutrients would be highlighted in the regular variant andwould not be highlighted in the new flavours.

BusinessGrowthR

ate

Relative Market Position

HIGH

HIGH

LOW

LOW

?

DOGCASH COW

BCG PRODUCT MATRIX FOR BOOST IN

MARKETS

SOUTH

Horlicks46%

Boost11%

Bournvita14%

Complan12%

Pediasure4%

Others13%

All India

Horlicks41%

Boost25%

Bournvita6%

Complan9%

Pediasure6%

Others13%

South

Horlicks25%

Boost4%

Bournvita35%

Complan18%

Pediasure6%

Others12%

North

Complan13%

Pediasure4%

COMPETITOR ANALYSIS- REGION WISE


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GROWTH OPTIONS AVAILABLE FOR BOOST: AN ANALYSIS

PROS CONS PROS C

REPOSITIONING FROM ENERGY TO NUTRITION &

ENERGY

FOCUS ON THE NORTH AND WEST M

The repositioning of the brand from energy to nutrition might cause us to lose the uniquedifferentiation, confusing the existing buyers. Also, a one for all solution by Boost might reducecredibility.

Whereas, focussing on the North and West markets gives us the benefit of scale and ownership of thecategory, nation wide.


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BOOST - MARKETING & BRAND BUILDING IN NORTH AND WEST HFD MARKE

Jar Refill- Malt based HFDin chocolate flavour- Nutrients: Iron,Vitamin-D,C and B,

Calcium, Copper-Variants:Choco clairChoco NutChoco Caramel

Choco Zing

Sports magazines Celebrity

endorsement YouTube channel

Social mediamarketing 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 25200gm 99 94500gm 204 198

750gm --- 3101Kg --- 375

Introducing: 25gm

boost sachet, each

priced at Rs.8

Y1

5 Metros

Y2

5 MiniMetros

Y3

33 Tier-2cities:Surat,Baroda,Faridabadetc.

Y4

28 Tier-3cities:Noida,Gurgaon,Raipuretc.

Y5

Scaling toothertargetedgeographiesinclusive ofrural markets

PHASED SUPPLY CHAIN STRATEGY FOR NEXT 5 YEARS

New product variants a

- A smaller size trial pack (25gm)

From surveywe found that first time buye

amount on bigger SKUs.

- Launch 2 NEW Flavours: CHOCO CAR

a delectable caramel flavour

and CHOCO ZING:

Benefitsof extra Iron and

Dietary fibers in a yummy chocolate twis

Advertising

Ad-Goal

S

a

l

e

s

MEDIUM HIGH HIGH

Buildbrand

awareness

Buildbrand

preference

Focussedmarketingin targetareas to

createbrandloyalty

LOW

RENEWED PLC OF BOOST IN

Image Source: http://blog.deonbotha.com/wp-content/uploads/sites/4/2011/09/dffc0-productlifecycle.gif


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SPORTSACTIVITIES

MASS MEDIA

VIRALMARKETING- INTERNETAND SOCIAL

MEDIA

Throughout the time frame,ensure strategic placements of

Vending Machines or

dedicated GSK Kiosks todispense Boost in variousschools and colleges (See

Appendix for Smart Cards andVending Machine Design.)

RECOMMENDATIONS: PROMOTION AND ADVERTISING STRATEGIES


PROMOTION STRATEGIES YEARS 1&2

City marathons likeDelhi Marathon,Mumbai Marathonetc.

School sports dayevents

Regional sportstournaments

Sponsorship andadvertising like IPL,World Cup

Product placementin movies and realtyshows like MTVRoadies, Big Bossand vernaculartelevision

Dedicated YouTube channel Advertising in Yahoo!, Rediff,

MSN, Facebook, Twitterhomepages

Tie-up with Zynga games todevelop android games

Online contest such as quiz basedon brand heritage and recognition

Viral marketing through socialmedia

Tie-ups and contracts withboarding schools/privatecolleges/ gyms/ corporateclubs

Building relationship withEngg/ MBA/ Medical Colleges

Sponsor events like BoostTreasure Hunt, Rock-Bandcompetitions etc.

SALESPROMOTION

STRATPART

BTLACTIVITIES

PROMOTION STRATEGIES

Targeting wholesalers andretailers with margins

Free samples and freebies Qtty and price discounts Road shows Promotional vans

distributing hot/cold boostin rural areas

TIE UPS/

CONTRATCS

Trained sales personneldeployed at various retailstores near shelves whichstock Boost

Direct e-mail and PRactivities towards targetretailers

POINT

PURC1

2


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PACKAGING

BOTTLE DESIGN:1. A Sleek design, withTeflon/special wax coating inside thebottle: this would ensure the non-sticky flow of Boost. Can be sold at apremium2. A FREE FLOW CAP as shown

in the figure, to ensure ease of flowand comfort to the users. Preventsuse of spoons: A source of clumpingof Boost.

LABEL:1. For the regular pack, retain

the design, highlighting the3XStamina

2. For the variants, focus onthe different flavours and

highlight them, keepingstamina in the background

COLOUR: Regular pack: RED Choco Zing: Red with

molten chocolate lava imagein the bottom

Choco Caramel: Red andGolden bottle

TO HIGHLIGHT: In all the variants:

Highlight chocolatytaste

Retain 3X Staminaacross variants

In regular pack:Highlight nutritionalcontent

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 pbottles: Adof storage

The existin

INGREDIENT BRANDING:

EnergyDietary FibresVitamin DCalcium

Sodium

To mention theingredients clearlyin all the variants.Caters to theneeds of thenutrient

conscious

customer


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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 7.659Current 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:

Calculatio

that the HFat a CAGR

Calculatioprovided i

All sales f


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APPENDIX-2

VENDING MACHINE IDEA: TO PLACE THESE MACHINES IN SCHOOLS, COLLEGES & SPORTS ACADEMIES

CONCEPT I

CONCEPT IDEA FOR THE VENDING MACHINE SMART CARD FOR STUDENTS

CONCEPT IDEA FOR THE VENDINGMACHINE

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.

ELECTRONIC

USEONLY


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THANK YOU

Iim Kozhikode Jagerbomb Round1

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