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GlaxoSmithkline (GSK)Leader in Indian Health Drink Market.

Four brands - Horlicks, Boost, Viva and Maltova

According to retail audit unit ORG Marg, GSK with four brands in the category has a 75 percent volume market share (Press Trust of India)

Competition: Complan, GluconD, Bournvita are other popular brands.

“The mother is like a gatekeeper, who allows the entry of the product into the house because of its nutrition values.

The child is only the user.”

Horlicks in India

In India, over 2 billion cups of Horlicks are drunk every year.

Horlicks is the only drink clinically proven in India to make kids ‘taller, stronger and sharper’.

The Horlicks available has been scientifically developed and specifically caters to the nutritional needs of the Indian diet.

Horlicks alone enjoys 50% of the Health Food Drinks market.

Horlicks in India

Horlicks has been a popular brand in India since 1930.

Re-launched in 2003; included a new look for the brand targeting its core consumer, children up to 14 years old.

Traditionally positioned as "The Great Family Nourisher.“

New products have been developed specifically for India, catering different segments of the Indian market.

Horlicks Lite

Targets mature consumers and does not contain any cholesterol or

added sucrose.

Junior Horlicks 1-2-3 Large extension available in award winning

packaging is specially designed for pre-school children.

Mother’s Horlicks Specialist nutritional

extension for pregnant and lactating mothers

2006: ‘Year of Horlicks’.

Impressive growth of 12.8% supported by :

Intense market research and product development activities

Aggressive advertisement and various sales and marketing initiatives.

Operate with minimum trade pipelines

Sells as per the market demands

Maintains a very efficient supply chain.

SKU’s

Horlicks Ninja (Chocolate, Vanilla, Elaichi)1 Kg: Jar and Carton500 gm: Jar and Carton200 gm: Carton

Junior Horlicks500 gm: Jar and Carton200 gm: Carton

Mothers Horlicks500 gm: Carton200 gm: Carton

Emerging Trends Vending Machines

Strongest Emerging Format : To meet the demand of fast pace of life

Have your food “Anywhere & Anytime”

Making pleasurable nourishment available to consumers on the go

Nearly 500 vending machines, placed at institutions such as school, corporate & hospital.

Consumer Appeal

Shelf visibility and consumer appeal is becoming very important.

Modern trade outlets call for instant consumer attraction.

The key consideration for any new packaging design: Pack appearance and ability to engage consumers

Modern trade: Fighting for consumer attraction.

Differentiated shapes/ attractive graphics are the need of the day

Consumer Convenience

Easy to Tear.

Laser etched pouches.

Inbuilt handle in cap for ease in carrying.

Sales Organization Structure

COUNTRY SALES HEAD

REGIONAL SALES HEAD

BRANCHSALES MANAGER

AREASALES MANAGER

SALES OFFICER

SALESMEN

KEY ACCOUNTMANAGERS

Distribution StructureFactories bulk powder

Packed in drums

Packaging stations Bottles cartons

Company owned depots Or C&F Agent

Distributors

Wholesaler

Semi-wholesaler

Retailer

Distribution centreReliance

Institutional buyers/ army canteens

Area of CoverageSample Area: North DelhiSales Officer : Mr. Sunil VermaUnder this Sales Officer, three distributors1. Kwality, Roop Nagar : 400 Retailers2. S.N. Trading, Filmistan: 380 Retailers3. Budhiraja Trading, Sadar Bazar: 50 Semi-wholesalers

Key Accounts (except Reliance) Subiksha, Spencer’s: S.N.TradingBig Bazar, Vishal Megamart: Separate DistributorsBig Apple: Arian Enterprises

Retail Coverage

Total retail universe will have different channels • General Merchants: Branded & Packaged• General Grocers: Vegetables,Foods,Non Branded• Chemist Outlets• Confectionary• Bunk Outlets: Paan, Bidi Shops, Small Pouches

Commissions

Distributors’ Commission: 5%

Retailers’ Commission: 9%

Wholesalers/ Semi-Wholesalers: No Commissions, discounts given by the distributor

“Low Margin, High Volume Business”

VAT: 12.5%

No discounts or incentives are given to distributors.

They are only given at the retailer level.

About Distribution

C&F Agents in absence of Company owned Depots.In North India, no depots. Only C&F AgentIn West India, they have only one depot in Pune. Rest all C&F.

CreditUsually 7 to 10 daysAt times extended upto 15 days, depending upon the credit worthiness of the distributor.According to an RDO at GSK“No MNC accepts cash payments from the distributors.”Electronic Clearing System

Stock Rotation Policy Incase a retailer can’t sell stocks, the Sales Officer will designate to some other retailer.

Beat Plan

“A scientifically designed route plan to maximize coverage during a period of time and minimize transport cost.”

• Typically, a distributor will make a beat plan to cater to a market.

• Depending on the size of the market, a salesperson can cover half a market or even more than two markets

• The sales officer will ratify the beat plan.

• ASM involves himself when finds a problem.

• Beat plans can be bi weekly, weekly, fortnightly, monthly; depending on the potential of the market.

Demand

• During summer vacations, demand for Horlicks is lower than during school days.

• In summers, kids consume more Horlicks with as a cold drink with milk.

• Mothers’ Horlicks is sold only at through doctors’ prescription.

• Horlicks Lite is sold only at confectioners.• At bunk outlets, only small SKU’s of Horlicks are sold.

Merchandising

GSK has dedicated merchandisers in a few selected areas.They do not book orders or deliver products, just give lift to the visibility of the product. If no dedicated merchandisers, the salesmen perform the task of merchandisers.

VisibilityPosteringPOPPacks facing customer or notFIFO followed for pack placement.Dust the packs

Delegating New Distributor

The following factors are considered:• Adequate space• Hygienic Conditions• Credit Worthiness• No competitor product

(though in small towns, this criteria is waived)• Market reputation• Should be having only 2-3 more accounts

Damaged/Expired Goods

• Compensation given by the company: irrespective of who causes the damage (distributor, wholesaler or retailer)

• Sales Officer is shown the damaged goods.• GSK has a Report Format that is to be filled. • A credit note is issued by the company.

Group 9Chhavi ThukralKarishma ShroffMansi JindalNehaa KediaPratima Kanodia