.

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.
 Junior Horlicks 1-2-3
Large extension available in award winning
packaging is specially designed for pre-school
children.

Horlicks Lite
Targets mature
consumers and does not
contain any cholesterol or
added sucrose.

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 Carton
500 gm: Jar and Carton
200 gm: Carton

Junior Horlicks
500 gm: Jar and Carton
200 gm: Carton

Mothers Horlicks
500 gm: Carton
200 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

BRANCH
SALES MANAGER
KEY ACCOUNT
MANAGERS
AREA
SALES MANAGER

SALES
OFFICER

SALESMEN
 Distribution Structure
Factories bulk powder
Packed in drums

Packaging stations
Bottles cartons

Company owned depots

Or C&F Agent

Distribution centre Institutional buyers/

Reliance army canteens

Distributors

Wholesaler

Semi-wholesaler

Retailer
 Area of Coverage
Sample Area: North Delhi
Sales Officer : Mr. Sunil Verma
Under this Sales Officer, three distributors
1. Kwality, Roop Nagar : 400 Retailers
2. S.N. Trading, Filmistan: 380 Retailers
3. Budhiraja Trading, Sadar Bazar: 50 Semi-wholesalers

Key Accounts (except Reliance)

Subiksha, Spencer’s: S.N.Trading
Big Bazar, Vishal Megamart: Separate Distributors
Big 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 Agent
In West India, they have only one depot in Pune. Rest all C&F.

Credit
Usually 7 to 10 days
At 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.

Visibility
Postering
POP
Packs facing customer or not
FIFO 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 9
Chhavi Thukral
Karishma Shroff
Mansi Jindal
Nehaa Kedia
Pratima Kanodia