Boosting Boost: Charting Growth Opportunities
(9 pages of text)
The general manager of GlaxoSmithKline India has been tasked to increase annual sales of the health food drink Boost to upwards of 18 per cent, without any significant change in contribution margins.
Repositioning the brand could increase the size of the target market, but may also jeopardize the brand’s sharply defined positioning. Attempting expansion of the distribution network, where the competition is strong and deeply entrenched, might strain company resources and may even be counterproductive. Executing the two strategies will require entirely different skills and the deployment of diverse resources. The general manager needs to make a firm and calculated choice.
The case is best suited for postgraduate elective courses in marketing. It is recommended for courses in Brand Management, when discussing such topics as brand repositioning, brand portfolio management and growth strategies; for courses in Marketing Strategy, to explore alternatives among strategic and operational solutions; and for courses in Marketing Management, for discussions on segmentation, targeting and product positioning.
The case has the following objectives:
- To evaluate a brand’s repositioning options, when a portfolio of brands is involved.
- To decide between two very different growth options (brand positioning or distribution) in a category characterized by high brand loyalty.
- To understand the concepts of brand relevance and brand portfolio management.
- To assess the competitive responses to any change in marketing strategy.
- To decide between the ideal and optimal strategy from a brand manager’s perspective.
India, Large, 2014
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