Boosting Boost

Case Analysis

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TEAM 02

F17002 AJAY S

F17014 DEEPAK RAIKWAL

F17026 JASMINE JARALD

F17039 MONICA AARTHIE

F17047 RAJESH SINHA

F17058 THOMAS GEORGE

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HFD MARKET IN INDIA

 Health Food Drinks (HFD) refers to malt-based drinks,

act as both a taste enhancer and a substitute for milk
 Market segmented into- white powders (malt based
taste) and brown powders (chocolate based taste)
 Introduced in India in 1950s through the launch of
Horlicks
 USD 860 Million market in India in 2017
 10% Y-O-Y growth till 2015-16, since then, the volumes
have slumped
 Market size is expected to be greater than USD 1 Billion
by 2020, growing at 5.6% CAGR
 Market leader- GSK with > 60% market share with key
brands Horlicks and Boost
 Other major players- Mondelez’s Bournvita, Heinz’s
Complan, Abbott’s Pediasure, Nestlé's Milo, DANONE's 3
Protinex
GLAXOSMITHKLINE INDIA
 GSK India- Indian subsidiary of the British
multinational GlaxoSmithKline Plc.
 USD 411 Million turnover, as of March 2016
 Operates in- Pharmaceuticals, Vaccines, Consumer
Healthcare
 Portfolio of 140+ brands and 250+ SKUs
 A separate company, GlaxoSmithKline Consumer
Healthcare Ltd was created to focus on nutritional
and OTC products
 Leading brands of GSK India-
 Pharma- Augmentin, Ceftum, Neosporin, Phexin
 Vaccines- Harvix, Varilrix, Rotarix
 OTC medicines- Crocin, Eno, Iodex and Sensodyne
 Nutrition Products- Horlicks, Boost, Maltova, Viva, 4
Foodles
BOOST
 A chocolate flavoured health drink sold in India and
produced by GlaxoSmithKline
 Developed in the year 1974 and launched in the market
as a nutritional drink in the year 1975-76
 First HFD brand to be endorsed by a celebrity
 Kapil Dev- first brand ambassador, endorsed by
Sachin, Sehwag, Dhoni, Virat in the coming years
 Blockbuster tagline- Boost is the secret of my energy,
later changed to Boost is the secret of our energy
 Association with sports, especially, cricket
 Claims of 3X increase in stamina
 The brand has targeted children, especially ,boys
between ages of 8 to 14 years as its customers.
 Stronghold-South Indian Markets
 Main competitor in brown powder category - 5
Bournvita
MARKETING MIX
Product
 Health drink that includes a
unique taste of malt with
chocolate.
 Offers necessary nutrients to
and vitamins
 Several variants- Original,
Plus, Calorie Smart, Kid
Essentials, Glucose Control,
High Protein, Compact,
Choco Éclair, Choco-Nut etc.
 Recent years- Boost NRG
Biscuits
Price
 Competitive pricing policy,
similar to its rivals so as to
penetrate markets in both
rural and urban areas.
 Available in various SKUs to
penetrate rural markets
 Volume pricing policy. Its
products are available in
several quantities.
 1 KG pack of Boost ultimately
costs lesser than either ½ kg
pack or even lesser than a
200g pack.
Place
 Popular drink in South India
 Distinct distribution policy
 Supply channel includes
sending products from
manufacturers to depots in
bulk quantities.
 Picked by wholesalers who
supply to retailers as
per demand and necessity.
 Retailers bring in to
consumers through various
channels like grocery stores,
supermarket, discount
stores, convenience stores 6
and department stores.
MARKETING MIX

Promotions
 Boost has developed its promotional portfolio around sports and several sportspeople.
 Its advertisements are about people who are enthusiastic about sports and need
something extra to take them to next level.
 Brand promises to meet high-energy needs of its consumers through its products.
 Various cricketers have been a part of Boost through advertisements over the years.
 Kapil Dev in the year 1986 and Sachin Tendulkar in the year 1989 were roped in to endorse
this brand
 Later Virendra Sehwag, M.S. Dhoni and Virat Kohli have been endorsing Boost as the
secret of their energy.
 Boost realizes the power of children and hence has offered several freebies to attract
them from time to time.
 The brand also announced that it was launching Boost Cricket Cup in some of the states
like Tamil Nadu and Andhra Pradesh to identify and promote young talent in the field of 7
cricket.
STP

 Boost has always targeted kids, especially boys in the 8-14 years age group, mostly urban
and sub urban
 The product has been positioned as Vitaminized Energy-Fuel that includes a unique taste of
malt with chocolate.
 Its unique taste made it the preferred choice of the kids
 Its advertisements are about people who are enthusiastic about sports and need something
extra to take them to next level
 Due its association with sports, mothers who were usually the ones who purchased HFDs for
their kids, perceived its benefits as short term
 To change this perception Boost came up with the claim- 3x Increase in stamina

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SHOULD BOOST REPOSITION ITSELF?

 We, as a team, feel that Boost should not reposition itself as:
 Repositioning will dilute its USP which is that of a sports oriented health drink
targeted at kids
 Repositioning it to make it a family health drink like Horlicks will make it lose its
core TA
 Even if it succeeds, it will cannibalize Horlicks’ sales, which on the whole will be
unhealthy for GSK
 Also, considering the fact that HFD, as a category, is under a lot of pressure and is
on the decline (volumes fell by 6.8% between 2016-18) , Boost’s USP will help it
stand its ground
 Instead of repositioning, Boost should look at ways to penetrate rural markets as
there is ample headroom there.

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SHOULD BOOST FOCUS MORE ON NORTH & WEST?
 We, as a team, feel that Boost should not venture into the Northern & the western markets as:
 The Northern and the Western regions of India have ample milk production. Thus, the prospect
of being a substitute for milk is not there
 Also, the previously existing opportunity of being promoted as a masking agent or taste
enhancer for milk is lost due to availability of flavoured milk
 Further, the lack of enough modern retail outlets in these regions poses challenges to
distribution and sales
 HFD ,as a category, derives 60% consumption from the Southern and the Eastern regions of
India. However, Boost is strong only in the South
 Therefore, we suggest that Boost should focus on the Eastern markets in addition to the
Southern markets, instead of venturing into North & West
 The appeal of Boost’s association with sports, especially, its cricketer brand ambassadors, will
resonate well in these markets
 Though, lack of modern retail is a challenge there too, so, more focus will have to given to
groceries and pharmacies. 10
CURRENT SCENARIO
 Boost has continued with its existing positioning
and TA
 To gain attention of mothers, it has added the claim
of 3x increase in stamina in its communication
 Efforts have been made to gain traction in the
northern & eastern markets but without much
success
 Smaller SKUs have been created to target rural
markets
 Some attempts have been made to diversify: Pick-
Pop-Sip , a Boost based liquid ready to drink
product; Boost NRG Biscuits

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THANKS!

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