Porters five forces, mission,vision,organisation structure and culture, 4p's, Pestel, Ansoff,BCG, Life cycle

2. Introduction
• A British pharmaceutical company headquartered in Brentford, London
• Established in 2000 by a merger of Glaxo Wellcome and SmithKline Beecham
• GSK was the world's sixth largest pharmaceutical company as of 2015
• Slogan : Do more, feel better, live longer
• Pharmaceutical division alone employs 16646 people with a revenue of $36.65 Billion
• GSK products include Sensodyne, Aquafresh, Horlicks, Breather Right Nasal Strips, Nicorette
• Chairman : Philip Hampton
• CEO : Andrew Witty
• Source- www.forbes.com

3. Organization Structure Board of Directors
Chairman and CEO
Deputy Chairman
Executive Directors
Marketing
Management
department
Strategic
Department
Product
Management
Department
Human Resource
Department
Selection and
recruitment
department
Finance
Department
Audit
Department
Quality Control
Department
Product Line
Quality Control
Department
Product Quality
Control
Department
Sales
management
department
National Sales
Department
Regional sales
manager
Branch Sales
manager
Area sales
manager
Sales Officer
Salesman
Trade net
Department
International
trade
department
General
administration
Department
Planning and
Finance
Department
Overseas and
domestic branch
office
Committee on
administraion
Source- www.gsk.in

4. Organization Culture
The core values
• Patient Focus
• Transparency
• Integrity
• Respect for people
0%
85%
15%
GSK PRIDE
81%
19%
CUSTOMER FOCUSED
0%
84%
16%
ETHICAL BEHAVIOUR
0%
97%
3%
RECOMMEND A FRIEND
0%
100%
APPROVE OF LEADERSHIP
Sources
1. GSK WEBSITE
2. Glassdoor INDIA

5. Vision & Mission
Vaccines
Mission and vision
Mission-to improve the
quality of human life by
enabling people to do
more.
Operating responsibly
and making sure that
our values is embedded
in our decision making
and our culture
Conquer the challanges
that they face as an
industry and as a society
Pharmaceuticals
Mission and Vision
The mission is to help
people do more, feel
better and live longer
Grow a Diversified
business
Deliver more products of
value
Simplify the operating
model
Create a culture of
individual empowerment
Build trust
Consumer
Healthcare
Mission and
Vision
The global quest is to
improve the quality of
human life by enabling
people to do more, feel
better and live longer
To deliver innovative
products to help people
from around the world
liver better lives
To become the
indisputable leader in the
industry not simply in
terms of size but how we
use that size to achieve our
mission and improve the
quality of human life
Source- 1.GSK India
2.GSK Pharmaceuticals
3.GSK Vaccines
4.GSK Consumer Healthcare

6. Porter’s
5 forces
Threat of new
entrants:
• The cost of
entering -
extremely high
• Economies of
scale – very low
margins
• The patents - a
huge barrier
• brand value-
GSK a famous
and appreciated
brand in the
industry.
• FDA
regulations-
strictness of the
regulations will
act as a barrier
Threat of
substitutes:
• Generic
medications –
High threats due
to medicines
from expired
patents are
easily copied
• Complementary
Alternative
Medicines- the
same product is
delivered except
just the brand
name and price
Bargaining power
of buyers:
• Individual
buyers do not
pose a
significant
threat to GSK.
• Low risk
because high
quantity of
buyers against
less quantity of
suppliers
Bargaining power
of suppliers
• GSK’s major
suppliers are
labour, Raw
material
providers,
patients in
clinical trials,
study staff and
others ranging
from production
marketing and
distribution.
High influence
of suppliers as
they hold the
key to timely
deliveries and
quality material
Rivalry among
competitors:
• cut throat
competition
• The industry is
very aggressive
and dynamic
and GSK has
used foresights
and planning
which has kept
them in the
industry for so
long

7. Nutrition
OTC
Medicine
Oral
Care
Skin
Health
Industry Life Cycle

8. PESTEL
Analysis
Source-Strategicplanet.com

9. Organic Growth
Ansoff ‘s Grid
High Penetration
Continuous
product
development
Rural Penetration
is the new horizon
Biotech Products.
Investing into
packaged foods
and energy
supplements in
consumer
healthcare
segment
Diversification
possibility in
biologics and
investing in
technologies for
sustainable
development
Developing
Countries in need
of cheaper drugs
and consumer
health care
products.
Present New
PresentNew
Market
Product

10. Horlicks
• British brothers William and James Horlick developed formula for Horlicks
• In 1883 they obtained the U.S patent for their drinks’ ability to mix up in liquid
• Got popular in South India mainly because of its water solubility and the fact that regions of South
India are milk deficient.
• Over the time, many new flavors dedicated to children, women, breast feeding mothers, etc. were
introduced.
• Flagship brand for GSK-HealthCare contributing more than 70% of sales
• Packaging has been a main focus for different product offerings.
• The only health drink, clinically proven in India to make kids taller, stronger and sharper!

11. Customer Preferences
Product Attributes Influencing the Purchase Decision
The following product attributes were identified as influencing the purchase
decisions of the customers:
a) Nourishment
b) Colour
c) Palatability
d) Economy
e) Shelf-presence
f) Packaging
g) Brand Image
h) Promotions
Source-A STUDY ON CONSUMER PREFERENCE TOWARDS HEALTH FOOD DRINKS Mrs.J.Tamilselvi Mr. M.Kirubaharan

12. Brand Extensions
• Junior horlicks 1-2-3 for kids in the age group 1-3
• Junior horlicks 4-5-6 for kids in the age group 4-6
• Mothers Horlicks for pregnant and lactating women
• Women’s Horlicks for women in the age group of 30 and above
• Horlicks Ninja the basic malted Horlicks drink now available in chocolate, kesar badam
and vanilla
• Horlicks Growth plus for children with growth related deficiencies
• Horlicks Cardia for people having heart related issues
• Horlicks Lite, low on sugar and low on calories, for people who like to keep fit
• Horlicks Chill Dood, a ready to drink flavoured milk product
• Horlicks Foodles Noodles, a brand extension into the noodles category
• Horlicks Biscuits Oats and NutriBar, entry into the healthy snack category.

13. Marketing
Mix
Oldest brand
Constantly evolved
Has targeted
almost all the
segments of the
population.
Lowest Pricing in
comparison to
competition
Differential pricing
for different
segment products
Strong distribution
in South & East
India.
Distribution weak in
north & west India.
Segment wise
targeting the
decision makers,
users.
1.Physical health
campaign
2.Mental nutrition
campaign
Product Price
PlacePromotion

14. Distribution Procedure
Manufacture
Packed in
drums
Packing
Stations
Jars &
Cartons
C&F/ Depots
Institutional
Buyers
Distributors
Wholesalers Retailers

15. Segment & Targets
Behavioral
Psychographic
Demographic
Age
• Kids
• 1-3 Age
• 4-6 Age
• Adult
Gender
• Women
• Pregnant
Ladies
• New
Mothers
Health
Conscious
Recovery/
Energy
Regain
Growth
Oriented
Sports

16. Positioning
.
Points of parity
Points of difference
Variety of
Products
Nutritional
Value-
Supplemet
nutrition
Taste-
Improve
s the
taste
Pricing
innovation
Brand Mantra
Executional properties/ Visual Identities
Values/Personality/Character
Trust worthy-
Brand with
long history
Variety- 9
brand
Extentions
available
Consumer
Target
This is an every
day product.
Target differs
with each
variety of
offering
Consumer
Insight
Food drinks that
are nutritious
and available at
competitive
pricing and
easily available
Customer need
state
A milk additive
that improves
the nutrition
level and taste
of the milk.
Competitive
Product Set
Complan,
Bournvita,
Boost, Etc.
Substantiators
(RTB)
Availability-
Excellent
Distribution
acquisition in
recent past
Consumer
Takeaway
Horlicks gives
one of the best
malted food
drinks additive.
With a great
variety to
choose from
that provides
nutrition and
improves the
taste of the
milk.
Advertising
Using the
same concept
Of
Nutrition
Supplement
Value
Proposition
of filling the
nutrition
gaps
Packaging
sizes-
Available in
various
Packaging sizes
Brand
identity-
Health Drink,
Recovery
Drink, etc
innovativeTaglin
es- Taller,
Stronger,
Sharper, etc
Contoured
bottle-
Innovation of
packaging based
on
Repositioning,
needs, Changing
Behaviour of
consumers
Brand image
as a health
drink
Horlicks
Logo-
Identifier

17. Financials for GSK’s
Consumer HealthCare
Source- GSK financial statement 2015-16
• The turnover has remained constant in relation to the
last year
• Profit before tax and profit before interest and tax has
also seen an increase
• Net profit is also seeing a rising trend
• Current ratio has also increased which shows the
company’s ability to pay off its current liabilities and
still have a surplus

18. Competition Analysis
Direct
competitors
Horlicks Bournvita Boost Complan Pediasure
Company GSK CH Cadbury GSK CH Heinz Abbott
Market share 53 17 13 11 1
Base Malt and cocoa cocoa Malt and cocoa cocoa Soy
POD Taller, stronger
and sharper
Physical energy
and endurance
Energiser for
daily sports
Stronger bones
and muscles
Complete
nutrition with
fibre
SKU’s 100g,200g,500g,
1kg
100g,200g,500g,
1kg
100g,200g,500g,
1 kg
25g,200g,500g,1
kg
250g,750g
Price (1kg) RS 394 Rs 380 Rs 400 Rs 464 Rs 1050

19. SWOT
Strengths
• market supremacy
• brand loyalty
• Presence in a lot of niche
markets
• Distribution channel
• ability to rediscover and re-
innovate
Weakness
• Marginal presence in
northern and western
market
• Invested in not so
successful products such as
the cereal bar
Opportunities
• Increasing market share in
northern and western part
• increase its efforts in
advertising as well as
distribution channel in the
rural market
Threats
• growing influence from
Bournvita
• Claims are challenged in
the courts which has
brought bad publicity for
the brand
• Emergence of Patanjali’s
Power Vita

20. Euro Monitor Report
Headlines
• Other hot drinks registers current retail value growth of 15% to reach Rs68.8 billion in 2015
• GlaxoSmithKline Consumer Healthcare Ltd remains the leader and accounts for 64% of retail value sales
• Other hot drinks is expected to register a retail value CAGR of 6% (constant 2015 prices) over the forecast
period to reach Rs91.5 billion in 2020
• Children and teenagers remained the main target for such products. However, over the review period this
age-based target group widened to include adults
COMPETITIVE LANDSCAPE
• GlaxoSmithKline Consumer Healthcare Ltd continued to lead the category and accounted for 64% of retail
value sales in 2015
• Women’s Horlicks differentiated the brand from the others by positioning it on a “bone health” platform,
which is a common health issue among older women. The positioning benefited the brand’s performance.
Junior Horlicks was also re-launched with new claims, new packaging and a new mascot
Source-Euro monitor report

21. Future Prospects
• Other hot drinks is expected to remain dominated by chocolate-based flavoured powder drinks as
the main consumers of this type of drink are children who like the chocolate taste most
• With the growing popularity of healthy lifestyles, family nutrition will be of prime importance and
the consumer base is expected to expand to include adults and teenagers
• Other hot drinks is expected to register a retail value CAGR of 6% (constant 2015 prices)
• Other hot drinks – currently perceived as beverages for children, which contain nutritional
supplements – will increasingly be considered family drinks due to growing concern for healthy
living for all
• With the rising holistic approach towards family and individual health, other age groups will
become more interested in consuming other hot drinks such as chocolate- and malt-based
flavoured powder drinks
• Targeting consumers to be based on age or specific health condition to be continued
Source-Euro monitor report

22. McKinsey 7S analysis
Hard Skills
Structure- GSK follows a mix of both functional and divisional system of
management
Strategy- To respond to the changes in the external environment GSK has
focussed on developing differentiated products for all sections of the
population so there is something for everybody
Systems- There are various committees that undertake formal and
informal procedure to support the functioning strategy and structure
Soft skills
Style- The leadership style in the organization focuses on the mission and vision in
cohesion with the organisation culture which promotes transparency, integrity and
respect for people
Staff- GSK’s staff has been its source of power and the company spends a lot on
employee development, provides opportunities for socialising.
Skills-GSK employs people with varied skills and also focuses on skill development
Shared values- GSK and its employees focus on the same goal of improving lives of
people and this is seen through out the organisation

23. Quality Assurance Reports by NABL accredited laboratory

24. Thank You
Group 9
Srishti Manocha
Devank B Pandya
Dhruv Adlakha
Shubham Jain
Sourav Jain