Brand Managing & Product Launch and Re Launch
Of
Horlicks and Junior Horlicks Biscuit
A Summer Training Project
Submitted in partial fulfillment of the requirements for the
Award of degree of Bachelor of Business Administration
2009 – 2010
Submitted by Guided by
(Internal Guide)
BHARATI VIDYAPEETH UNIVERSITY
INSTITUTE OF MANAGEMENT & RESEARCH, NEW DELHI
An ISO 9001:2008 Certified Institute
“A” Grade Accreditation by NAAC
1
Preface
The primary objective of this report is to provide the readers the insight into the success
of GlaxoSmithKline and its marketing strategies.
Through this report I would like to draw the attention of the reader, the remarkable
progress and growth of the company over the years and the work conducted by the brand
manager of the company.
I have benefited immensely by meeting the people who are directly associated with the
GlaxoSmithKline and working under them for this project and referred to many
publications and articles on the internet. I express my gratitude to all such authors and
publishers.
Any suggestions to improve this report in contents or in style are always welcomed
and will be appreciated and acknowledged.
Siddhant Chandra
2
Acknowledgement
My deepest thanks to Ms. Himani Grover for her valuable inputs, guidance and constant
support in motivating me to come up with this project. Her suggestions and
encouragement at the critical junctures were of great help. She has also taken the pain to
go through my project and make necessary correction as and when needed.
I would also like to express my immense gratitude to our H.O.D, Mr. Navneet Gera for
his informative and valuable lectures on the project that helped me carrying out this
project work.
I wish to thank my parents for their undivided support and interest who inspired me and
encouraged me to go my own way.
At last but not the least I want to thank my friends who appreciated me for my work and
motivated me and finally to God who made all the things possible...
Siddhant Chandra
3
Student Undertaking
This is to certify that I Siddhant Chandra had completed the Project titled “ Brand
Managing & Prduct Launch of Horlicks and Junior Horlicks Biscuits” in
(GlaxoSmithKline) under the guidance of Ms. (Himani) in the partial fulfillment of the
requirement for the award of degree of Bachelor of Business Administration of BVIMR,
New Delhi. This is an original piece of work & I have neither copied nor submitted it
earlier elsewhere.
Siddhant Chandra
4
To Whomsoever It May Concern
This is to certify that Mr. Siddhant Chandra
of BBA (IV –Section C ) has undergone his/her project titled ‘Brand
Managing & Product Launch and Re Launch of Horlicks and Junior
Horlicks Biscuit’ under my supervision and guidance. His work is
original to the best of my Knowledge and belief.
Project Guide
(Internal Guide)
5
Contents
Chapter 1: Introduction………………………………………………… 7
Chapter 2: Company Profile……………………………………………
Chapter 3: Research Methodology………………………………………….
Chapter 4: Data Presentation and Findings…………………………………
Chapter 5: Analysis and Conclusions……………………………………….
Chapter 6: Suggestions……………………………………………………
Annexure
6
Chapter 1 INTRODUCTION
1.1 FMCG
Products which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods (FMCG). FMCG products are those that get replaced within a year.
Examples of FMCG generally include a wide range of frequently purchased consumer
products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products
and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper
products, and plastic goods. FMCG may also include pharmaceuticals, consumer
electronics, packaged food products, soft drinks, tissue paper, and chocolate bars.
Indiaʹs FMCG sector is the fourth largest sector in the economy and creates employment
for more than three million people in downstream activities. Its principal constituents are
Household Care, Personal Care and Food & Beverages. The total FMCG market is in
excess of Rs. 85,000 Crores. It is currently growing at double digit growth rate and is
expected to maintain a high growth rate. FMCG Industry is characterized by a well
established distribution network, low penetration levels, low operating cost, lower per
capita consumption and intense competition between the organized and
unorganized segments.
The Rs 85,000-crore Indian FMCG industry is expected to register a healthy growth in
the third quarter of 2008-09 despite the economic downturn. The industry is expected to
register a 15% growth in Q3 2008-09 as compared to the corresponding period last year.
Unlike other sectors, the FMCG industry did not slow down since Q2 2008. the industry
is doing pretty well, bucking the trend. As it is meeting the every-day demands of
consumers, it will continue to grow. In the last two months, input costs have come down
and this will reflect in Q3 and Q4 results.
Market share movements indicate that companies such as Marico Ltd and Nestle India
Ltd, with domination in their key categories, have improved their market shares and
outperformed peers in the FMCG sector. This has been also aided by the lack of
competition in the respective categories. Single product leaders such as Colgate
Palmolive India Ltd and Britannia Industries Ltd have also witnessed strength in their
respective categories, aided by innovations and strong distribution. Strong players in the
economy segment like Godrej Consumer Products Ltd in soaps and Dabur in toothpastes
have also posted market share improvement, with revived growth in semi-urban
and rural markets.
7
FMCG Fast Moving Consumer Goods are products that are sold quickly at relatively
low cost. Examples include non-durable goods such as soft drinks, toiletries, grocery
items etc. Though the absolute profit made on FMCG products is relatively small, they
generally sell in large quantities, so the cumulative profit on such products can be large.
The term FMCG refers to those retail goods that are generally replaced or fully used up
over a short period of days, weeks, or months, and within one year. This contrasts with
durable goods or major appliances such as kitchen appliances, which are generally
replaced over a period of several years.
FMCGs have a short shelf life, either as a result of high consumer demand or because the
product deteriorates rapidly. Some FMCGs – such as meat, fruits and vegetables, dairy
products and baked goods – are highly perishable. Other goods such as alcohol, toiletries,
pre-packaged foods, soft drinks and cleaning products have high turnover rates.
1.2 Characteristics of FMCG’s
From the consumers' perspective:
o Frequent purchase
o Low involvement (little or no effort to choose the item -- products with
strong brand loyalty are exceptions to this rule)
o Low price
o
Aggregate sale
From the marketers' angle: FMCG industry is
o High volumes expected to increase
by 19.2 per cent
o Low margins during the December
o Extensive distribution networks 2008 quarter.
o High stock turnover.
1.3 SWOT Analysis of FMCG’s
Strengths:
• Low operational costs
• Presence of established distribution networks in both urban and rural areas.
• Presence of well-known brands in FMCG sector
Weakness:
• Lower scope of investing in technology and achieving economies of
scale, especially in small sectors
• Low exports levels
• "Me-tooʺ products, which illegally mimic the labels of the established
brands. These products narrow the scope of FMCG products in rural
and semi-urban market.
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Opportunities:
• Untapped rural market
• Rising income levels, i.e. increase in purchasing power of consumers
• Large domestic market- a population of over one billion.
• Export potential
• High consumer goods spending
Threats:
• Removal of import restrictions resulting in replacing of domestic
brands
• Slowdown in rural demand
• Tax and regulatory structure.
1.4 Industry Category and Products
1.4.1 Household Care
Personal Wash:
The market size of personal wash is estimated to be around Rs. 8,300 Cr. The
Hindustan Unilever personal wash can be segregated into three segments: Premium, Economy
Limited is the biggest and Popular. The penetration level of soaps is ~92 per cent. It is available in 5
producer of Personal
wash and detergents. million retail stores, out of which, 75 per cent are in the rural areas. HUL is the
The segment is leader with market share of ~53 per cent; Godrej occupies second position
expected to grow by
double digit. with market share of ~10 per cent. With increase in disposable incomes,
1.4.2 growth in rural demand is expected to increase because consumers are
moving up towards premium products. However, in the recent past there has
not been much change in the volume of premium soaps in proportion to
economy soaps, because increase in prices has led some consumers to look for
cheaper substitutes.
Personal Care
Detergents:
The size of the detergent market is estimated to be Rs. 12,000 Cr. Household
care segment is characterized by high degree of competition and high level of
penetration. With rapid urbanization, emergence of small pack size and
sachets, the demand for the household care products is flourishing. The
demand for detergents has been growing but the regional and small
unorganized players account for a major share of the total volume of the
detergent market. In washing powder HUL is the leader with ~38 per cent of
market share. Other major players are Nirma, Henkel and Proctor & Gamble.
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1.4.3Pattern
Spending Food & Beverages
An increase is spending pattern has been witnessed in Indian FMCG market.
There is an upward trend in urban as well as rural market and also an increase
in spending in organ-ized retail sector. An increase in disposable income, of
household mainly becauseFood Segment
of in-crease :
in nuclear family where both the
husband and wife are earning, has leads to growth rate in FMCG goods. The Skin Care
SkinThe Care:-
foods category in FMCG is gaining popularity segment is expected to
with
register a swing
a growth rate of launches
Theby total skinITC,
HUL, care Godrej,
market is andestimated
others. This to becategory
around [Link]
of 3,400
mare 16Cr.
% The
18thatmajor skin care
brands
market is at a primary stage in India. The penetration level
aggregating Rs. 4,600 Cr. Nestle and Amul slug it out in the powders segment. of this segment in
IndiaThe is around 20 per cent. With changing life styles, increase
food category has also seen innovations like softies in ice creams, ready to in disposable
Changing Profile and Mind incomes, of greater
Set rice
eat Consumer
by HUL product choiceby
and pizzas andbothavailability,
GCMMFpeople are becoming
and Godrej [Link]
People are becoming conscious about health
about personal and hygienic.
grooming. The There
majoris players
a change inin this segment are Hindustan
the mindset of the Consumer Unilever and:-now
withlooking
a marketat “Money
share for Value”
of ~54 perrather
cent, fol-lowed by CavinKare with a
Tea
than “Value for Money”. We have seen willingness in consumers to move to
marketThe share
major of ~12
share per
of teacent and
market
evolved products/ brands, because of changing lifestyles, rising disposable Godrej
is with a by
dominated market share of players.
unorganized ~3 per cent.
More
According
income [Link] Consumers
Tea arethan 50 per
switching fromcent of thetomarket
economy premium share
productis capture
even by unorganized players.
Board of India, the export of tea Hair Care:-
we have witnessed
is expected to be more that 210 a sharp Leading
increase inbranded
the sales tea
of players
packaged are
water HUL
and and
water Tata Tea.
purifier.
million kg for the year 2008 The hair care market in India is estimated at around Rs. 3,800 Cr. The hair care
Findings according to amarket
against Coffee
recent can:-be
survey bysegmented
A. C. Nielseninto hair
shows oils,71shampoos,
about per hair colorants &
about of
cent 179Indian
million take
kg notice of packaged goodsʹ labels containing nutritional
last year. conditioners, and hair gels. Marico is the leader
The Indian beverage industry faces over supply in segments in Hair Oil segment with and
like coffee
information compared market to two years ago which was only 59 per cent.
tea. share
However, of ~ more
33 perthan cent;50Dabur
per cent occu-pies secondshare
of the market position is inatunpacked
~17 per cent.
or
loose form. The major players in this segment are Nestlé, HUL and Tata Tea.
Shampoos:-
The Indian shampoo market is estimated to be around Rs. 2,700 Cr. It has the
1.51.6Growth
Advantages Prospect penetration
to the Sector level of only 13 per cent in India. Sachet makes up to 40 per cent of
the total shampoo sale. It has low penetration level even in metros. Again the
Large Market market is dominated by HUL with around ~47 per cent market share; P&G
India Policy occupies
has a population
Governmental of more second
than 1.150 position
Billionswithwhich
market is share of around
just behind China.~23 per cent. Anti-
Indian Government
According dandruff
has enacted by
to the estimates, segment
policies
2030aimed constitutes
Indiaat population around
will be around 1.450 total shampoo market.
attaining international15 per cent of the
competitiveness
Billion and willthroughsurpass The
liftingmarket
China of the is furtherthe
to quantitative
become expected
restrictions,toreducing
World largest increase due to
inexcise
terms of increased marketing by players and
duties, automatic foreignavailability
in-vestment and of food laws resulting
shampoos in in an
affordable sachets.
population.
environment FMCG Industry
that fosters growth. which
100 per is directly
cent ex-port related
oriented to thecan
units population
be set is
expected to maintain
up by government a robust
approval and usegrowth
of foreignrate.
brand names is now freely
permitted.
Oral Care:-
Spending Pattern The oral care market can be segmented into toothpaste - 60 per cent;
An increase is spending pattern has- been
toothpowder 23 perwitnessed in Indian FMCG
cent; toothbrushes - 17 permarket.
cent. The total toothpaste
India is second largest
There is an upward trend in urban as well as rural market and also an increase
market is estimated to be around Rs. 3,500 Cr. The penetration level Country in terms of
of
Population growth
in spending in organ-ized retail sector. An increase in disposable income, of
toothpowder/toothpaste in urban areas is three times that of rural areas. Thisin
and increase
household mainly because of in-crease in nuclear family where both the
segment is dominated by Colgate-Palmolive with market share of ~49 population has a Survey by A. C.
per cent,
relation toNielsen shows about
husband and wife are while
earning,
HULhasoccupies
leads to second
growth position
rate in FMCG [Link] of ~30 per direct
with market cent. Products.
FMCG In 71 per cent of Indian take notice of pack
toothpowders market, Colgate and Dabur are the major players. The oral care aged goods' labels
Changing Profile and Mind Setes-pecially
market, of Consumer
toothpastes, remains under penetrated in India with containing nutritional
information compared
People are becoming conscious
penetrationabout
levelhealth andcent.
~50 per hygienic. There is a change in to two years ago which
the mind set of the Consumer and now looking at “Money for Value” rather was only 59 per cent.
than “Value for Money”. We have seen willingness in consumers to move to
evolved products/ brands, because of changing lifestyles, rising disposable
income etc. Consumers are switching from economy to premium product even
we have witnessed a sharp increase in the sales of packaged water and water
purifier.
Findings according to a recent survey by A. C. Nielsen shows about 71 per
cent of Indian take notice of packaged goodsʹ labels containing nutritional
10
information compared to two years ago which was only 59 per cent.