Alokananda Chakraborty

Glaxo SmithKline Consumer Healthcare consolidates AOR with MindShare

The account is estimated at Rs 60-70 crore.

GlaxoSmithKline Consumer Healthcare (GSKCH) has appointed MindShare as the AOR to manage its media investment in India. The appointment comes hot on the heels of MindShare winning the GSK account in China.

agencyfaqs! diehards would recall the article we carried in November 2002 (‘Glaxo SmithKline Consumer Healthcare hunts for an AOR', November 6), where we stated that GSKCH, the consumer products division of Glaxo SmithKline India, was looking for a media agency to consolidate its media planning and buying duties. "The reason for this course, is better synergies and better buying prospects," observes a senior media official.

The account is estimated at Rs 60-70 crore. Besides MindShare, Carat, Initiative Media, Madison Media and Mediacom were also in the fray for the account.

"We are thrilled to extend our relationship with GSK," said Ashutosh Srivastava, managing director of MindShare India, confirming the news to agencyfaqs!. MindShare's relationship with GSK has been expanding in the recent past. It was appointed the AOR for the Middle East in late 2001, followed by China in December 2002.

"Our task is to help grow GSK's business, by applying our consumer insights and proprietary research and tools. Our proposal to GSK was focused on innovative solutions that were developed out of these insights. By integrating below the line promotions and micro marketing with GSK's mass media campaigns, we demonstrated a true competitive edge."

Commenting on the appointment, Nick Massey, managing director, GSKCH, said, "We chose MindShare, as their proposition showed good understanding of our business. Apart from intelligent and innovative thinking, their passion was unequalled. We're looking forward to a very productive partnership."

The brands that are likely to be brought under the aegis of the new AOR are Horlicks (including Junior Horlicks, Mother's Special and Horlicks biscuits), Boost, Viva, Maltova, Eno, Crocin, Aquafresh (toothpaste and toothbrush) and Iodex. Incidentally, this is the first time that the company is looking to unify these eight brands under the aegis of a single AOR. This win now consolidates strategic planning, buying and implementation for the entire brand portfolio of GSKCH with MindShare. Creative work for various brands in the portfolio continues to be handled by JWT, O&M, Grey and Enterprise Nexus.

To put things in perspective, GSKCH is the market leader in the health drinks market with 70 per cent share and strong brands such as Horlicks, Boost, Maltova and Viva (Maltova and Viva were acquired by the company for about Rs 98 crore from Jagatjit Industries in February 2000). Sales of malted foods contribute about 95 per cent to the company's turnover. Other products including biscuits contribute the balance 5 per cent. © 2003 agencyfaqs!