sales and distribution of GSK consumerHealthCare Ltd

GLAXOSMITHKLINE CONSUMER HEALTH CARE LTD

KOUSALI INSTITUTE OF MANAGEMENT STUDIES, DHARWAD Page 1

CERTIFICATE

This is to certify that the Summer In plant Project 2015 entitled “A systematic

study on analysis of sales and distribution strategies adopted by GSK Consumer

Health Care ltd in Hubli locality” is the bonafide record of research work done by

Mr. AbdulQadir Koitewale (USN:15MBA001 ) under my supervision, submitted to

Karnatak University, Dharwad for the partial fulfillment for the award of the

Degree of Master of Business Administration and that the project has not

previously formed the basis for the award of any degree, diploma, Associate ship,

Fellowship or title.

Place: Dharwad Dr. Shivappa

Date: Associate Professor



ACKNOWLEDGEMENT

This is to express my sincere gratitude to all those who have helped me for the successful

completion and presentation of this project report. I am highly indebted to my project

guide Dr. Shivappa who has helped me in channeling my efforts in the right direction. He

has guided me to meticulously carry out each phase of the project.

I am highly obligated to Mr. Mohammed Azharuddin (Territorial Sales Executive)

of GlaxoSmithKline Consumer Health Care Ltd who helped in my project work.

Also I thank to Dr. Uttam Kinange and all faculty of Kousali Institute of

Management Studies for providing me relevant information and support pertaining to the

organization, and giving me full support of the course of my project work.

ABDULQADIR KOITEWALE

15MBA001



Declaration

I hereby declare that the Project entitled “A systematic study on analysis of sales and

distribution strategies adopted by GSK Consumer Health Care ltd in Hubli

locality” submitted to Karnatak University; Dharwad is a record by me under the guidance of

Dr. Shivappa, in partial fulfillment of the requirement for the award of the degree “Master of

Business Administration” by Karnataka University, Dharwad. This project work has not

performed the basis for the award of any Degree or diploma/ associate ship/fellowship and

similar project if any.

AbdulQadir Koitewale

[15MBA001]

Semester: 2nd semester

Year: 2016

Date:

Place: Hubli



EXECUTIVE SUMMARY:

INDUSTRY PROFILE: To begin with the study we need to first know about the FMCG Sector.

The fast moving consumer goods (FMCG) segment is the fourth largest sector in the Indian

economy. FMCG sector is growing at the rate CAGR of 10 to 12%. The fmcg sector is serving

in different categories like personal care, consumer health care, food and beverages etc.

COMPANY PROFILE: The study is based on a FMCG company GlaxoSmithKline Consumer

HealthCare Ltd. It manufactures healthcare products like Horlicks, Boost, Eno, Sensodyne,

Crocin etc. It is market leader in the Health Food drinks Category.

TITLE OF THE STUDY: “A systematic study on analysis of sales and distribution strategies

adopted by GSK Consumer Health Care ltd in Hubli locality”

MAJOR OBJECTIVES:

To understand retailers perception on the distribution strategies.

To understand the GSKCH product promotion practices at distribution level and its

overall satisfaction amongst the retailers.

To examine the channel wise and SKU wise sales contribution.

METHODOLOGY:

This study is based on exploratory as well as descriptive research. This study is exploratory

research as no previous study was carried out in this organization. Descriptive research

methodology since the secondary data like sales master file, item sales report was used to find

some objectives of the study.

THEORTICAL BACKGROUND: The study is carried out analyze the sales and distribution

strategy, a brief explanation about the distribution is given. Distribution channel is a bridge to

cover the gap between the producer and the consumer. So it is very important to adopt the

efficient distribution strategies in order to the market. A company can handle its own distribution



function in better position to exercise the control over product sale and potentially earn higher

profit.

ANALYSIS: The overall analysis of the questionnaire shows that retailers have average

response for damage policy and credit policy. Majority of the retailers are satisfied with the

behavior of sales representation and also the distribution. The sales report shows the leading

brands of GSK in Hubli locality and also the contribution channel and sku wise.

FINDINGS:

74% of the retailers have rated the distribution of the GSK Consumer Health Care in

Hubli locality as satisfying.

46% of the retailers have rated the damage policy as average as the product replacement

is done in 7 days.

The channel wise analysis shows that wholesale contributes around 57% of total sales in

Hubli locality.

Horlicks and Eno are the leading brands in Hubli Locality with 29% and 28%

respectively.

SUGGESTIONS:

Most of the retailers have rated the damage policy as average. The company should

reduce the number of days for the replacement as the retailers are satisfied with the

damage policy but they are not happy with the replacement period.

Distributor lacks the focus on other channels. As the wholesale channel is the source to

fill in the untouched market through indirect distribution. Increased number of

representative could help in reaching the unreached market.

The smaller packages are the assets to penetrate the new customers. The distributor needs

to focus on the smaller packages as it would help in penetrating new customers.

Conclusion:

The above study has helped me to understand sales and distribution of GSK Company. By

overall analysis I can conclude that the sales and distribution of the company in Hubli locality is

good and also there is scope for improvement in various some of the aspects.



CHAPTER NO-1

INTRODUCTION TO INDUSTRY



INDUSTRY PROFILE

FMCG SECTOR:

The fast moving consumer goods (FMCG) segment is the fourth largest sector in the Indian

economy. The market size of FMCG in India is estimated to grow from US$ 30 billion in 2011

to US$ 74 billion in 2018.

Food products are the leading segment, accounting for 43 per cent of the overall market.

Personal care (22 per cent) and fabric care (12 per cent) come next in terms of market share.

Growing awareness, easier access, and changing lifestyles have been the key growth drivers for

the sector.

What are FMCG goods?

FMCG goods are popularly known as consumer packaged goods. Items in this category include

all consumables (other than groceries/pulses) people buy at regular intervals. The most common

in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish,

packaged foodstuff, and household accessories and extends to certain electronic goods. These

items are meant for daily of frequent consumption and have a high return.

Rural – set to rise

Rural areas expected to be the major driver for FMCG, as growth continues to be high in these

regions. Rural areas saw a 16 per cent, as against 12 per cent rise in urban areas. Most companies

rushed to capitalize on this, as they quickly went about increasing direct distribution and

providing better infrastructure. Companies are also working towards creating specific products

specially targeted for the rural market.

The Government of India has also been supporting the rural population with higher minimum

support prices (MSPs), loan waivers, and disbursements through the National Rural Employment

Guarantee Act (NREGA) program. These measures have helped in reducing poverty in rural

India and given a boost to rural purchasing power.



Hence rural demand is set to rise with rising incomes and greater awareness of brands.

Urban trends

With rise in disposable incomes, mid- and high-income consumers in urban areas have shifted

their purchasing trend from essential to premium products. In response, firms have started

enhancing their premium products portfolio. Indian and multinational FMCG players are

leveraging India as a strategic sourcing hub for cost-competitive product development and

manufacturing to cater to international markets.

Top Companies

According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs,

and the balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these

are owned by Hindustan UniLever.

The top ten India FMCG brands are:

1. Hindustan Unilever Ltd.

2. ITC (Indian Tobacco Company)

3. Nestlé India

4. GCMMF (AMUL)

5. Dabur India

6. Asian Paints (India)

7. Cadbury India

8. Britannia Industries

9. Procter & Gamble Hygiene and Health Care

10. Marico Industries



What the millenniums expect

According to a study by TMW and Marketing Sciences that surveyed 2,000 people across

different age groups ranging, young consumers are the most „rational‟ and likely to spend more

time weighing up potential purchases. The survey also suggests that younger people are using

recommendations from their peers about products and services in order to make rational

purchase decisions. According to the study, shoppers aged 18 to 24 are 174 per cent more likely

to use recommendations on social media than shoppers aged 25 and over.

Another key factor today is – speed. Today's consumer wants packaged goods that work better,

faster, and smarter. The “need for speed" trend highlights the importance of speed as a

potentially decisive purchase factor for packaged goods products in a world where distinctions

between products are shrinking.

Younger consumers express the greatest need for speed, not a huge surprise for the smartphone

generation. Data monitor's 2013 Consumer Survey found that younger consumers those in the

15-24 year old age group were twice as likely to say that "results are achieved quickly" has a

"very high amount of influence" on their health and beauty product choices than consumers in

the oldest age group, those aged 65 or older. Speed matters, and 2014 will almost certainly see

the introduction of new game-changing timesavers.

Road Ahead

FMCG brands would need to focus on R&D and innovation as a means of growth. Companies

that continue to do well would be the ones that have a culture that promotes using customer

insights to create either the next generation of products or in some cases, new product categories.

One area that we see global and local FMCG brands investing more in is health and wellness.

Health and wellness is a mega trend shaping consumer preferences and shopping habits and

FMCG brands are listening. Leading global and Indian food and beverage brands have embraced

this trend and are focused on creating new emerging brands in health and wellness.



According to the PwC-FICCI report Winds of change, 2013: the wellness consumer, nutrition

foods, beverages and supplements comprise a INR 145 billion to 150 billion market in India, is

growing at a CAGR of 10 to 12%

List of Top 10 Food Brands in India

India has got a number of domestic as well as multinational companies involved in the business

of food processing. The top selling food product brands in India are as follows:

Nestle

Nestle India Private Limited, one of the famous food production

companies in India, is known for manufacturing chocolates, confectioneries, ready-to-eat food

items, milk products, cooking aids, nutritional products, beverages and many more. It is a

subsidiary of Nestle from Switzerland, which was founded in 1866. The most popular brand of

Nestle is Maggi noodles. Some of the other most popular Nestle India brands are Maggi tomato

ketchup, KitKat chocolates, Nescafe coffee and Nestle Everyday Dairy to name a few. The net

sales of Nestle on 19 May 2015 were valued at around Rs. 9,854.84 crore.

Britannia

Britannia is, by far, the largest producer and seller of biscuit

products in India. This is the reason why it is referred to as 'The King of Biscuits'. Britannia was

founded in 1892 and is based in Kolkata, West Bengal. The company is solely dedicated to



manufacturing almost every kind of processed food items. There is a wide range of Britannia

products that are leaders in the respective segments they belong to. The most popular brands are

Britannia Good Day, Britannia Cracker, Britannia Nutri Choice, Britannia Little Hearts,

Britannia Bread and Britannia Fruit Cakes to name some. On 19 May 2015, the net sales of

Britannia amounted to Rs. 6,307.39 crore.

GlaxoSmithKline Consumer Healthcare

GlaxoSmithKline Consumer Healthcare is a subsidiary of the British company

GlaxoSmithKline. It is a pharmaceutical company founded in 2000. The most popular products

of the company are nutritional health food drink meant for kids called Horlicks, Boost - India's

leading health food drink that is malt-based, Crocin tablets, Eno and Iodex. The net sales of

GlaxoSmithKline Consumer Healthcare on 19 May 2015 were valued at Rs. 4,868.57 crore.

Kwality Wall's

The Kwality group deals in frozen dessert food items and is

famous for its delicious ice-creams. It was founded in 1956 and is headquartered in Mumbai,

Maharashtra. The Kwality Wall's ice-cream is a household name in India. Some of the most

popular Kwality Wall's products are Cornetto, Feast, Cassatta, Creamy Delights and Fruttare. On

19 May 2015, the net sales of Kwality Wall's amounted to Rs. 4,578.05.

Rei Agro



India's Rei Agro is the world's largest producer of processed basmati

Rice. Haryana is the home state to its paddy and rice processing facilities. Rei Agro was

established in 1996 and is headquartered in Kolkata, West Bengal. The Raindrop series of rice is

one of the most famous rice brands in India. The Rei Agro net sales were valued at around Rs.

4,523.25 crore on 19 May 2015.

KRBL

KRBL was founded in 1889 in Lyallpur (now Faisalabad, Pakistan). The

company has specialised in the art of basmati rice processing and is famous around the world for

the same. India Gate basmati rice is the flagship product of KRBL. Some of the other hugely

popular KRBL brands are Doon, Nur Jahan, Bemisal, Taj Mahal Tilla and Lotus to name a few.

On 19 May 2015, the net sales of KRBL were valued at Rs. 2,791.31 crore.

Hatsun Agro

Hatsun Agro was founded in 1986 and has turned out to be the

largest dairy company in India as far as private sector is concerned. It is based in Chennai, Tamil

Nadu. The company is involved in processing of almost all kinds of dairy products. The net sales

value of Hatsun Agro amounted to Rs. 2,493.54 crore on 19 May 2015.

Lakshmi Energy



Laxmi Energy is an Indian food processing company based in Punjab. It is

involved in the wheat and rice processing business and grows 40% of rice and 70 % of wheat

grown India according to the company‟s official website. It produces basmati and non-basmati

rice, rice bran oil and wheat floor. The net sales of Lakshmi Energy amounted to Rs. 1,852.89

crore on 19 May 2015.

LT Foods

LT Foods is an Indian food processing company founded in 1990.

The company has its headquarters in Gurgaon, Haryana. The 'Daawat' series of rice is one of the

leading rice brands in India. Some of the top selling and most popular products of LT Foods are

Daawat Biryani Basmati Rice, Daawat Pulao Basmati Rice, Daawat Brown Rice, Devaaya

Basmati Rice, Rozana Basmati Rice Super 90 and Rozana Gold Basmati Rice. On 19 May 2015,

LT Foods‟ net sales amounted to Rs. 1,798.73 crore.

Heritage Foods

One of the largest private sector dairy companies in South India,

Heritage Foods was founded in 1992. The headquarters of the company rest in Hyderabad,

Telangana. Andhra Pradesh Chief Minister and Telugu Desam Party Chief Chandrababu Naidu

is the founder of Heritage Foods. The company is involved in retail, dairy and agricultural

business. The dairy food processing unit known as Heritage Foods is the flagship unit of the

Heritage Group. The net sales of Heritage Foods were valued at Rs. 1,722.04 crore on 19 May

2015.



HEALTH FOOD DRINKS IN 2016:

According to India Malted Health Drink Overview, India's malted drink market is expected to

grow with a CAGR of 17.4% for next six years. Owing to urbanization and increased income of

people, south India has the largest market share in malted drinks, followed by east and north. The

malted health drink market divided into white and brown powder i.e. without cocoa powder and

with cocoa powder consisting barley or corn malt. Nowadays, manufacturers have a range of

brands pleasing separately to kids, adults and the entire family.

The Malted Health Drink Market is one of the rapidly growing dynamic markets in food services

sector in India. Due to increase standard of living and changing lifestyle and high level of

consumerism backed by rising income levels, growing inclination of Indian consumers towards

healthier food and beverages by which Indian market become an emerging trend of food industry

that makes positive impact on Malted Health Drink Markets. The various malted health drink

products like Horlicks, Bournvita, complan, Boost, Milo, Amul pro has high impetus to the

Indian Malted Health Drink Market.

GSKCH is a dominant player in the HFD segment with 67.3% volume share. GSK's Horlicks has

53.5% volume share of the HFD market and remains an undisputed leader by a huge margin.

GSKCH has consistently gained market share over the years.



CHAPTER NO-2

COMPANY PROFILE



GLAXO WELLCOME:

THE HISTORIC GLAXO FACTORY IN BUNNYTHROPE, NEW ZEALAND

Glaxo was founded in the 1850s as a general trading company in Bunnythorpe , New Zealand, by

a Londoner, Joseph Edward Nathan. In 1904 it began producing dried-milk baby food, first

known as Defiance, then as Glaxo (from lacto), under the slogan "Glaxo builds bonny babies."

The company's first pharmaceutical product, produced in 1920, was vitamin D.

Glaxo Laboratories opened new units in London in 1935. The company bought two companies,

Joseph Nathan and Allen & Hanburys in 1947 and 1958 respectively. The Scottish

pharmacologist David Jack was working for Allen & Hanbury's when Glaxo took it over; he

went on lead the company's R&D until 1987. After the company bought Meyer Laboratories in

1978, it began to play an important role in the US market. In 1983 the American arm, Glaxo Inc.,

moved to Research Triangle Park (US headquarters/research) and Zebulon (US manufacturing)

in North Carolina.

Burroughs Wellcome & Company was founded in 1880 in London by the American pharmacists

Henry Wellcome and Silas Burroughs . The Wellcome Tropical Research Laboratories opened in

1902. In the 1920s Burroughs Wellcome established research and manufacturing facilities in

Tuckahoe, New York, which served as the US headquarters until the company moved to

Research Triangle Park in North Carolina in 1971.



Glaxo Wellcome acquired the California-based Affymax, a leader in the field of combinatorial

chemistry. By 1999 Glaxo Wellcome had become the world's third-largest pharmaceutical

company by revenues (behind Novartis and Merck), with a global market share of around 4 per

cent. Its products included Imigran (for the treatment of migraine), salbutamol (Ventolin) (for

the treatment of asthma), Zovirax (for the treatment of coldsores), and Retrovir and Epivir (for

the treatment of AIDS). In 1999 the company was the world's largest manufacturer of drugs for

the treatment of asthma and HIV/AIDS. It employed 59,000 people, including 13,400 in the UK,

had 76 operating companies and 50 manufacturing facilities worldwide, and seven of its products

were among the world's top 50 best-selling pharmaceuticals. The company had R&D facilities in

Hertfordshire, Kent and London, and manufacturing plants in Scotland and the north of England.

It had R&D centers in the US and Japan, and production facilities in the US, Europe and the Far

East.



SmithKline Beecham:

Beecham‟s Clock Tower, constructed 1877, part of the Beecham „s factory, St Helens.

In 1843 Thomas Beecham launched his Beecham's Pills laxative in England, giving birth to the

Beecham Group. In 1859 Beecham opened its first factory in St Helens , Lancashire. By the

1960s Beecham was extensively involved in pharmaceuticals.

John K. Smith opened its first pharmacy in Philadelphia in 1830. In 1865 Mahlon Kline joined

the business, which 10 years later became Smith, Kline & Co. In 1891 it merged with French,

Richard and Company, and in 1929 changed its name to Smith Kline & French Laboratories as it

focused more on research. Years later it bought Norden Laboratories, a business doing research

into animal health, and Recherche et Industrie Thérapeutiques in Belgium in 1963 to focus on

vaccines. The company began to expand globally, buying seven laboratories in Canada and the

United States in 1969. In 1982 it bought Allergan, a manufacturer of eye and skincare products.

SmithKline & French merged with Beckman Inc. in 1982 and changed its name to SmithKline

Beckman. In 1988 it bought its biggest competitor, International Clinical Laboratories, and in

1989 merged with Beecham to form SmithKline Beecham plc. The headquarters moved from the

United States to England. To expand R&D in the United States, the company bought a new

research center in 1995; another opened in 1997 in England at New Frontiers Science Park,

Harlow.



GlaxoSmithKline in India:

GlaxoSmithKline is a leading healthcare company born out of the merger of two leading

international organizations: GlaxoWellcome and Smithkline Beecham.

GSK Consumer Healthcare Ltd and GSK Pharmaceuticals Ltd are the two businesses of GSK in

India of which former are headquartered at DLF Gurgaon and the latter at Worli, Mumbai.

In the Indian market, GSKCH's journey began with Horlicks.

In the early years, Horlicks, manufactured by Horlicks Limited, Slough, England was being

imported, bottled and sold in India. The year 1955 saw a change in the import policy following

which the import of Horlicks was stopped.

In 1956-57, a team from Horlicks Limited visited India to explore the possibilities of setting up a

plant. With the support of the then Maharaja of Nabha, His Highness Pratap Singh, a plant was

set up at Nabha, in Punjab. Thus was born on October 30, 1958, Hindustan Milk food

Manufacturers Pvt. Ltd., promoted by Horlicks Ltd.

In the year 1969, Beecham plc, acquired Horlicks Limited and became the majority shareholder

in Hindustan Milk food Manufacturers Limited. Ten years later in 1979, Beecham India (Pvt)

Ltd. merged with Hindustan Milk food Manufacturers Limited and the non-resident equity

shareholding was reduced to 40%. The name of the company was also changed to HMM Limited,

in 1991.

Beecham plc, UK and SmithKline, USA merged in 1989 to form SmithKline Beecham plc, with

its registered office in the UK. HMM Limited thus became part of SmithKline Beecham

Consumer Brands, one of the three sectors of SmithKline Beecham and its name was changed to

SmithKline Beecham Consumer Brands Limited.



Yet another christening took place in March 1994 when the name of the Company was changed

to SmithKline Beecham Consumer Healthcare Limited, reasserting the Company's promise of

providing healthcare to consumers.

The plan to form GlaxoSmithKline was announced in London on January 17, 2000. It was on

December 27 that the two global giants SmithKline Beecham and Glaxo Wellcome merged to

form GSK. Our new identity, GSKCH, has been created to reflect our shared values towards

scientific research and improving people's lives.

GlaxoSmithKline Consumer Healthcare Ltd. (GSKCH) is an Indian group company/associate of

GlaxoSmithKline plc U.K. GSKCH is one of the largest players in the Health Food Drinks

industry in India. The Company, with its manufacturing plants located in Nabha, Rajahmundry

and Sonepat, has a total workforce of over 2700 people.

Its flagship product, Horlicks, is a widely regarded and highly respected brand, present in India

for over 100 years...

The Company also manufactures and markets Boost, Viva, Maltova, Horlicks Biscuits, and

Foodles and in addition promote and distributes a number of products in diverse categories,

which include prominent household names such as Eno, Crocin, Iodex and Sensodyne.

GSKCH has a strong marketing and distribution network in India comprising over 4800

wholesalers and direct coverage of over 7,00,000 retail outlets.



Manufacturing facilities in India

The manufacturing plants are located in Nabha(Panjab), Rajahmundry(Andra Pradesh) and

Khewra, Sonepat district(Haryana).

The factory at Nabha was set up in the year 1960 to produce Horlicks for the first time in India.

The Rajahmundry factory was set up in the year 1975 to meet the increasing demand of Horlicks.

The factory at Village Khewra, Sonepat District, on 140 acres of land, incorporates the highest

and most stringent global manufacturing practices in the industry. Set up at a cost of Rs 252

crores, the beauty of the factory is in its automated design that allows the final product to be

produced hygienically and completely untouched by human hands. Fully operational, the plant

will have the capacity to produce 26100 tons of Horlicks per annum. The sprawling facility is

environmentally friendly and is equipped with a technologically advanced effluent treatment

plant and an incinerator for solid wastes. Treated effluents from the plant will be devoid of any

harmful chemicals and will consist of treated water that will be utilized to develop a green belt

that is an integral part of the project.



VISION AND MISSION OF THE COMPANY:

Vision:

We want to become the indisputable leader in our industry - not simply in terms of size, but in

how we use that size to achieve our mission and improve the quality of human life.

Becoming the indisputable leader in our industry means conquering the challenges that face us as

an industry, and as a global society.

Mission:

Our global quest is to improve the quality of human life by enabling people to do more, feel

better and live longer.

We at GSK dedicate ourselves to delivering innovative products that help millions of people

around the world live longer, healthier and happier lives.



Projects undertaken by GlaxoSmithKline Consumer Health Care Ltd In

Recent Past:

Innovation Practices By GSKCH - “VISION 2X”

GSKCH (GlaxoSmithKline Consumer Health Care Ltd) is an UK based FMCG company which

has strong brands in India like Horlicks, Boost, Eno, Iodex, Crocin etc. in its portfolio. Till 2006

the organization was perceived to be a non-aggressive FMCG company as all its brands were

leaders in the category. The appointment of new MD, Zubair Ahmed in 2006 induced too many

innovative ideas in the organization. “VISION 2X” was been propounded by him where in it was

a bold step to double the company turnover in 4 years.

SKU additions

“Vision 2X” brought into innovation in launching and re launching of products. The company

added about 105 new Sku‟s (Stock Keeping Units). For instance the base brand Horlicks and

Boost were having 4 Sku‟s i.e. in 1kg Jar, 500gms Jar and Gazetted Pouch and 200 gms Jar.

They were further stretched to 2Kg Gazetted Pouch, 1Kg Jar and Gazetted Pouch, 500 Gram Jar

and BIB (Bag in Box), 200 Gram Jar and BIB (Bag in Box), 100 Gram Sachet and 18 gms

Sachet making it 9 Sku‟s. A bold step of converting traditional glass jar to Polyethylene jar was

initiated and also the Gazetted Pouch were converted to BIB in order to reduce the percentage of

damages of products in transit.

Figure 1



New Product Launches and Product extensions

Horlicks Gold, Horlicks Promind, Horlicks Ninja, Asha Horlicks, Women Horlicks, Toodler

Biscuits, Horlicks Foodles, Horlicks Oats, Breath Rite, Sensodyne Tooth Paste, Horlicks

Childhood, Horlicks Nutri Bar, Horlicks Cream Biscuits, Boost Bites, Boost Glucose, Eno

Orange, Masaumbi, Lemon and Guava. Acti Grow, lucozade, Crocin 650 etc.

Visibility Initiations (“Project SPLASH”)

There was a unique innovation in increasing visibility in outlets under the banner of project

Splash in order to create a clutter breaking effect. Attractive Gandolas, Stands, Air hangers,

Dispensers, Wall hangers etc were been used at different category of outlets.

Figure 2



Product Portfolio

The company also has a Consumer Healthcare portfolio comprising over-the-counter (OTC)

medicines, oral care products, Packaged foods and nutritional healthcare drinks, all of which are

among the market leaders.



HEALTH FOOD DRINKS:

GlaxoSmithKline consumer health care ltd offers malted based drinks. Health drinks powders are

consumed as milk substitute and nutrient boosters. GlaxoSmithKline consumer health care ltd is

market leader in the health food drinks category. The company offers the different products such

as Horlicks, boost, Maltova and Viva.

Horlicks:

Horlicks is the leading Health Food Drink in India and enjoys more than half of the

Health Food Market. The modern and contemporary Horlicks came with the delicious

range of flavors including Vanilla, Elachi, gold etc.

“Taller, Stronger, Sharper”-“Epang, Opang, chapang” ad became very famous.

GSKCH

HEALTH

FOOD

DRINKS

PACKAG

ED

FOODS

BOOST

HORLICK

S

MALTOV

A

VIVA

BISCUITS

FOODLES

OATS

OVER THE

COUNTER

PRODUCT

S

ORAL

CARE

PRODUCT

S

CROCIN

ENO

IODEX

SENSODY

NE

OSTOCAL

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DIVISION OF HORLICKS BASED ON THE CATEGORY:

JUNIOR HORLICKS:

Junior Horlicks 1-2-3:

An easy to digest* drink for the fussy toddler at home (*Junior Horlicks is partially pre-digested,

which helps make it easy to digest)

JUNIOR Horlicks 4-5-6:

Junior Horlicks 4-5-6 with Growth Boosters^, Power Vitamins# and Smart Nutrients$: A

nutrition packed health food drink for an active pre-schooler.

HORLICKS LITE:

Lite Horlicks is a HFD specially designed to suit the nutritional needs of adults. Packed with 23

vital nutrients, including high quality protein and antioxidants, Lite Horlicks provides strength

and stamina by maintaining and repairing damaged body cells. In addition to this, Lite Horlicks

has no added sugar and no fat.



HORLICKS GOLD:

Horlicks Gold is a superior tasting Horlicks made with perfect blend of selected malts by unique

process makes it faster dissolving and additionally promises double action nutrition through a

package of 20 vital nutrients .

HORLICKS KESAR BADAM:

Lite Horlicks is a HFD specially designed to suit the nutritional needs of adults. Packed with 23

vital nutrients, including high quality protein and antioxidants, Lite Horlicks provides strength

and stamina by maintaining and repairing damaged body cells. In addition to this, Lite Horlicks

has no added sugar and no fat

HORLICKS GROWTH PLUS:



Horlicks growth Plus is an advanced health drink for growth and development of children. It is

meant to nourish children.

MOTHER‟S HORLICKS:

Mother‟s Horlicks is a nutritional beverage to be consumed as a part of daily diet .It provides

nutrients to help meet the increased calorie requirements during pregnancy. It is nutritional

supplement for pregnant and breast feeding mothers to increased calorie.

PACKAGED FOODS:

Horlicks biscuits:

Horlicks Biscuits are available in two flavours - Standard & Elaichi - and live up to the Horlicks

promise of 'great taste' and 'nourishment'.



BOOST biscuits:

Boost Biscuits

Enjoy the Goodness of Boost * with the chocolatey crunch of Boost Biscuits!

"Goodness refers to the good presence and good taste of boost since boost has been added @

10% in the product"

HORLICKS FOODLES:

GSK consumer health care products ltd, Launched noodles named foodles. It is “Health Maker”

sachet which comes along with the noodles pack. The Health maker contains the essentials of

five vitamins.

HORLICKS OATS:



Designed as a healthy breakfast option for today‟s fast-paced life, Horlicks Oats comes with „3

Way Health Advantage‟– helps manage weight, helps manage healthy blood pressure and helps

reduce cholesterol. The product is available in 3 pack sizes of 200gm, 400gm & 1kg pouch pack

and comes with the trust of Horlicks Nutrition Academy

OVER THE COUNTER PRODUCTS:

Over the counter products are medicines that are sold directly to a consumer without prescription

from a healthcare professional. GSK Consumer health ltd, offers four products in this category

that are Crocin, Iodex, Eno and Ostocalicum.

CROCIN:

Crocin has been a trusted household healthcare name for over three decades and enjoys a strong

medical heritage. Widely used as an effective remedy for mild-to-moderate pain, Crocin is an

over-the-counter medicine which is easily accessible to patients.



IODEX:

It is one of the leading brands in the topical pain relief segment with a range of variants that

provide quick & effective relief from head, neck, back joint and muscular pain.

ENO:

The leading anti-acid taken for providing instant relief from acidity, gastric discomfort and heart

burn. Eno is available in Cola, Nimbu Shikanji, Lemon, Orange, Mausambi and Regular variants.

It is available in different sizes of 5g sachet, Multipack (pack of 6 sachets) and 100g bottle.

OSTOCALCIUM:

Ostocalicum Tablet is prescribed for the treatment of vitamin D deficiency, weak bones, bone

loss, decreased activity of parathyroid gland, muscles disease and calcium deficiency in pregnant

women.



ORAL CARE:

This category has products like Sensodyne toothpaste and brush.

SENSODYNE:

Sensodyne is the #1 toothpaste for sensitive teeth, offering a

range of specifically formulated toothpastes. Sensodyne works to relieve tooth sensitivity due to

sensitive teeth and to provide lasting protection all day. Sensodyne has different variants like

Fresh Gel, Rapid Relief and freshmint.



SWOT ANALYSIS:

STRENGHTS:

Strong market leader in Health Food Drinks category.

Global presence as one of the world‟s best company

GSK is the largest in the private sector, which is biggest funder of R&D.

Effective marketing mix

Products innovation

WEAKNESS:

High products price.

Focus on single category

Non availability of OTC products other than ENO in rural areas

OPPORTUNITIES:

Opportunity to occupy the market share of Complan as it is consistently falling

Large market for OTC products

Consumers changing preference to Health care products.

THREATS:

Growing competitors such as Bournvita, Complan and patanjali powervita.

OTC products becoming mature.

Rising cost of products



SALES ORGANIZATION STRUCTURE OF GLAXOSMITHKLINE

CONSUMER HEALTH CARE LTD:

MANAGING DIRECTOR:

The sales team of GlaxoSmithKline consumer Health care ltd. is headed by company sales head

Mr. Manoj Kumar who recently replaced Mr. Zubair Ahmed as Managing director.

REGIONAL SALES HEAD:

Mr. Ritesh Pandey is the general manager and he is also heads south region sales department.

BRANCH MANAGER:

COUNTRY SALES HEAD

(MANAGING DIRECTOR)

REGIONAL SALES HEAD

(GENERAL MANAGER)

BRANCH MANAGER

ASM (BANGALORE) ASM (NORTH KARNATAKA)

AREA SALES EXECUTIVE TERRITORIAL SALES

EXCEUTIVE

RURAL SALES EXECUTIVE

ASM (MYSORE)

DSR (DISTRIBUTOR SALES

REPRESENTATIVE)

RSR (RURAL SALES

REPRESENTATIVE)



Mr. Shatadru Bagchi is the branch manager of Karnataka region under whom there are 3 ASMs.

AREA SALES MANAGER:

There are 3 ASMs who are assigned with three regions of overall Karnataka. These ASMs heading the

North Karnataka, Bangalore and Mysore region which covers entire state. The North Karnataka region is

managed by an Area Sales Manager Mr. Prashanth. Every ASM has its subordinates like the Territory

sales Executives, Area sales Executive and Rural sales Executive.

TERRITORIAL SALES EXECUTIVE:

Territorial sales executive is been appointed by the company to look after the sales of a particular

territory wherein the executives is responsible to look after the distributors in the territory and make sure

that the targets of the company in the region is reached.



GLAXOSMITHKLINE DISTRIBUTION ORGANIZATION STRUCTURE (ROUTE TO

MARKET):

MANUFACTURI

NG PLANT

WAREHOUSE

CARRY & FORWARD

AGENTS OR

COMPANY OWNED

DEPOTS

SUPER

DISTRIBUTORS

DISTRIBUTORS

RETAILERS

SUB

DISTRIBUTOR

WHOLESALERS

RETAILERS

SEMI

WHOLESALERS

WHOLESALERS

RETAILERS

WHOLESALERS



ROUTE TO MARKET:

The GSK Consumer Health care ltd.‟s route to market starts from its manufacturing units

located at Nabha (Panjab), Rajahmundry (Andra Pradesh) and Khewra, Sonepat

district(Haryana). All the products and its variants in India are produced in these three

manufacturing units.

Once the products manufactured in these manufacturing units they are shipped to

different ware houses across the country. The products are shipped to Pondicherry

warehouse from where the products are dispatched to south India region.

The products dispatched from the Pondicherry reaches various Carry Forward Agents and

Company owned depots located in various states in the south India.

MANUFACTURI

NG PLANT

WAREHOUSE

WAREHOUSE

CARRY & FORWARD

AGENTS OR

COMPANY OWNED

DEPOTS



The sales officers from different region in the state places the orders for the products and

the products are dispatched to the specified locations.

The product reaches the super distributors and distributors in next 24 hours.

The super distributor distributes the products to the retailers, wholesalers and sub

distributors. The distributor takes care of the retailers, semi wholesalers and wholesalers

where the market is small as compared to the super distributor.

Products are eventually reached to the consumers from the retailers and wholesalers.

CARRY & FORWARD

AGENTS OR

COMPANY OWNED

DEPOTS

DISTRIBUTOR

S



DISTRIBUTOR PROFILE:

NAME OF THE FIRM

PRITHVI AGENCIES, GSK CONSUMER

HEALTH CARE LTD.

YEAR OF ESTABLISHMENT

2013

REVENUE

10.80 Cr

NUMBER OF EMPLOYEES

12

NUMBER OF PROPRIETORS

2

LOCATION OF THE WAREHOUSE

PRITHVI AGENCIES, GSK CONSUMER

HEALTH CARE LTD, “GOURAV KUSUM”

DESHPANDE NAGAR, HUBLI

WAREHOUSE SIZE IN SQ. FEET

1000 SQ FEET

NUMBER OF SUB-DISTRIBUTORS

20

AREA OF COVERAGE

HUBLI,DHARWAD,HAVERI,SIRSI,GADAG



NUMBER OF OUTLETS

500

OULETS IN HUBLI

PRITHVI AGENCIES GLAXOSMITHKLINE CONSUMER HEALTH

CARE LTD ORGANIZATION STRUCTURE:

DISTRIBUTOR ACTIVITIES:

Stock maintenance

Payments from the sub distributors and retailers.

Managing the DSRs, Operator, Accountant, loaders and drivers.

Supplying of stock to the retailers and sub distributors.

Interaction with Sub distributors and the retailers for the improvement and also to keep

track of the Market through the DSRs.

HEAD

MANAGER

OPERATOR

ACCOUNTANT

LOADER AND

DRIVER

DISTRIBUTOR

SALES

REPRESENTATIVE



OPERATOR:

There is an operator at the Prithvi Agencies, GSK Consumer HealthCare Ltd. The operator does

the following activities:

Billing for the products ordered by the retailers, sub distributors and wholesalers. The

billing is done through using the software forum which keeps all the record of the sales.

The operator takes care of the returns from the retailers.

The operator also keeps track payment collection of the products from the retailer.

The reports for the damages claim and also for the sales are done by the operator.

DISTRIBUTOR SALES REPRESENTATIVE:

Prithvi Agencies has 3 Distributor Sales Representatives who cover 600 outlets in Hubli city.

The DSRs performs following activities in the distribution channel:

Order booking is the main activity which the DSRs perform. The DSRs books the orders

given by the retailers and the wholesalers from the market.

Payment collection from the retailers and the wholesalers after the order delivery.

Merchandising.

Helps in bill generation by giving information to the operator.

Provides information about the market and the products.

The DSRs in GSK consumer health care ltd, focuses much on the following set of activities to

create an impact in the market.

P-PLANNING

A-APPRAOACH

S-STORE CHECK



S-SALES

I-INSTORE MERCHANDISING

O-OUTSATNDING COLLECTION

N-NEWNESS

LOADERS AND DRIVERS:

The loaders and driver are responsible for the delivery of the products ordered by the Sub

distributors, wholesalers and retailers within the specified time.

MARGINS:

Margin for the Distributor is 4.7% on the products sales in direct sales.

The margin is 2.4% for the distributor when sold to the sub distributor.

Margin for the retailers is based on the type of product.

HEALTH FOOD DRINKS: 8%

PACKAGED FOODS: 10%

ORAL HEALTH CARE PRODUCT: BRUSH-35% and TOOTHPASTE-15%

OVER THE COUNTER: 20%



INCENTIVES:

Incentives for DSRs:

When the DSRs achieve 100% target an incentive of Rs, 1,200 is given to them.

For 105% target achievement an incentive of Rs. 1,700 is given.

For 110% target achievement an incentive of Rs. 2,200 is given.



For total line sold an additional incentive of Rs. 500 is given.

Every month 3 focused brands are to be sold for that Rs. 500 is given for each focused

brand.

Incentives for Distributors:

Incentives for the distributor changes every month and they are offered with different incentives

and schemes.

To motivate the distributor the company offers incentives on the target achievement

Excellency Award

Trips

Credit Period:

Credit for the retailers: 7 days

Credit for the distributor: 15 days

DISTRIBUTION PROCESS

The very first step in the distribution process is to collect the order from the retailers,

wholesalers and the sub distributors.

To do the above process, the distributor has hired the sales representatives like DSR,

USR and RSR. It is the job of sales representatives to coordinate with the retailers,

wholesalers and the sub distributors and get the order.

Each distributor has their PDP (Permanent Dispatch Plan), i.e. there are some fixed days

like Monday and Thursday. So on these specific days the Sales representative will get the

order from the distributor.



BY CONTACTING DIRECTLY RETAILER

The sales representative from the distributor has to visit the retailer to get the order.

Each sales person is allocated areas which is called BEATS. The sales person has to

move as per their journey plan so that no retailer is missed out.

The sales person has been given SAMSUNG TABS in which they have to take the order.

The retailers give the order to the sales person the sales person enters the details in the

SAMSUNG TABS.

By the 5 PM in the evening DSRs and operator do the billing work in the Software called

FORUM.

The order is gathered by the loaders and then the next day the delivery is made to the

retailer.

The retailer is been given 7 days credit to payback the balance.



CHAPTER NO-3

THEORTICAL BACKGROUND



THEROTICAL BACKGOURND

Most of the producers do not sell their products directly to the end consumer there is a gap

between the manufacturer and the end consumer. There are intermediaries performing various

functions. The intermediaries are a chain of passing down to the chain to the next organization,

before it finally reaches the end consumer. This process is known as distribution channel. Each

of the elements in this chain will have its own specific needs which a producer must take account

along with those of all end users. A distribution channel consist of the intermediaries such as-

Warehouses, Carry forward agents, company owned Depots, distributors, wholesalers etc. Each

intermediary receives the goods at one pricing point and it to the next higher pricing point until it

reaches the final buyer.

Distribution channel is a bridge to cover the gap between the producer and the consumer. So it is

very important to adopt the efficient distribution strategies in order to the market. A company

can handle its own distribution function in better position to exercise the control over product

sale and potentially earn higher profit.

Distribution channel may not be restricted to physical product alone they may be as just

important for moving the service from producer to consumer in service sector since both direct

and indirect channels may be used. A well designed distribution channel strategy takes into

account the linkage between the sales people activities with channel partners and the marketing

managers‟ efforts to better reach and serve end consumer.

This project discusses the existing distribution channel of GSK Consumer HealthCare Ltd. This

project attempts to analyze the sales and distribution strategy adopted by GSK Consumer

HealthCare ltd at Hubli locality. This project brings out the retailers perception on the

distribution channel, the channel wise contribution for the sales, the analysis of the base brand

sales and also examining the performance of the representatives of the company in the market.

For this purpose the data has been collected using questionnaires for the retailers and also using

the sales records like Sales master file, Item wise sales report.



CHAPTER NO-4

PROJECT PROFILE



Topic of the study

“A systematic study on analysis of sales and distribution strategies adopted by GSK Consumer

Health Care ltd in Hubli locality”

Every study has some purpose to goal for which it is conducted. My study of “A systematic

study on analysis of sales and distribution strategies adopted by GSK Consumer Health Care ltd

in Hubli locality " has the following objectives

Objectives of the study:

1) To understand retailers perception on the distribution strategies.

2) To understand the GSKCH product promotion practices at distribution level and its overall

satisfaction amongst the retailers.

3) To examine the performance of the sales representatives perceived by the retailers.

4) To examine the channel wise and SKU wise sales contribution.

5) To ascertain brand wise performance of GSKCH products.

Need for the study:

1) To know about retailers perception and improve the distribution strategies.

2) To understand the all channels contribution, brand performance etc.

3) To get experience on field work.

SCOPE OF THE STUDY:

Market Expansion

Revenue expansion

Market Share optimization



Limitation of the Study

The whole work is based on areas falling under Hubli. The surveyed areas are just small

divisions of the large market due to lack of time, financial & transport problem. So my research

cannot be generalised on state or national levels. I have contacted only 50 retailers for the study.

Research Methodology

1. Exploratory research

2. Descriptive research

Data collection Method:

There are two types of sources for data collection, they are

1. Primary data 2. Secondary data

Primary Data:

The primary data are originated by a researcher for the specific purpose of addressing the

problem at hand. This is the data collected for the first time. I have collected the primary

data through interaction with retailers through questionnaire.

The methods that have been used to collect the primary data are:-

Questionnaire.

Secondary Data:

Secondary data are that have already have been collected for purpose other than the

problem at hand can be located quickly inexpensively. In this project I have collected

the secondary data from the distributor‟s sales files.

The various sources of secondary data used for this study are:-



Item wise sales

Retail master file

Sampling Method:

Target Population: Retailers of Hubli.

Sample Design: For the purpose of survey 50 people from the total population are taken

as sample size.

Sample Method: Simple random sampling method is used to observe the retailers which

are convenient and easier for sampling

Sampling Plan:

Sample unit : retailers in Hubli

Sampling Method : Random sampling

Sampling size : 50 outlets

Study area : Hubli

Data collection method:

Data collected through questionnaire method.



CHAPTER NO-5

ANALYSIS AND INTERPRETATION



1) Type of outlet?

RESPONDENTS Number of

Retailers

Percentage

Grocery Retailers 26 52%

Chemist 12 24%

Bakery 10 20%

Others 2 4%

Grand Total 50 100%

Interpretation: As per my survey report, 52% outlets are grocery retailers, 24% of outlets are

chemist, 20% of outlets are Bakery, 4% of outlets are others outlets like sweets shops.

Here Grocery retailer numbers are more, because here customers will visit daily to purchase

grocery and other things. It will helpful for the retailers and consumers. Here different outlets

sell different types of products of different categories.



2) Reason for selling these products?

Reason Response Percentage

Margin 13 26%

Promotion Schemes 0 0%

Demand 35 70%

Credit Facility 2 4%

Grand Total 50 100%

Interpretation: As per my survey report, 70% of retailers are selling the GlaxoSmithKline

products as there is demand for the products in the market. 26% of retailers are selling the

products because of the margin of the products and 4% of retailers think that the credit facility of

the company is the reason why they are selling the products. Most of the retailers are selling the

products as there is demand for the products. It shows that the products are having great brand

pull. As the GlaxoSmithKline is the market leader in the Health Food Drinks Category the

brands like Boost, Horlicks and Eno have great demand in the market.



3) Products which you are not selling currently?

Products Number

Women‟s Hlx 26

Horlicks Oats 34

Horlicks Foodles 38

Sensodyne 22

Crocin 36

Ostocalcium 39

Interpretation: As per my survey report 26 of 50 retailers are not selling the Women‟s

Horlicks, 34 of 50 retailers are not selling Horlicks Oats, 38 of 50 retailers are not selling

Horlicks Foodles, 36 of 50 retailers are not selling Crocin, 39 of the 50 retailers are not selling

Ostocalcium and 22 out of 50 retailers are not selling Sensodyne. So here we can see near apart

from Sensodyne more than 50% of the retailers are not selling these products. Ostocalcium is the

product which is the most common product not being sold in the market reason being no demand

for the products as per the retailers but as the product is recently been added in the product list of

GSK it may take some time to get into the market.



4) Reasons for not selling the product?

Reason Number Percentage

Credit facility 2 4%

Schemes Not Conveyed 2 4%

No Demand 42 84%

Supply of the Product 0 0%

Margin 4 4%

Interpretation: As per my survey report, 42 Retailers out of 50 outlets surveyed produced the

results the reason for not the products like Ostocalcium, Horlicks Foodles, Crocin and Horlicks

Oats is no demand for the products in the market. There might different reasons for the like the

outlets like bakery and grocery won‟t sell the products like Ostocalcium. But most of products

like Horlicks Oats, Horlicks Foodles and Ostocalcium have less demand.



5) How much time does it take for delivery of the products after ordering?

Delivery Respondents Percentage

6 to 12 Hours 9 18%

1 to 2 days 37 74%

2 to 7 days 4 8%

More than 7 days 0 0

Grand Total 50 100%

Interpretation: As per my survey report, 18% of retailers said that less than one day is taken

for the delivery of the products, 74% of retailers said that 1 to 2 days are taken for the delivery

of the products, 8% of retailers said it takes more than 2 days for the delivery. So here we can

see 74% of retailers are getting the products in 1 to 2 days this could be done better by

delivering the products in less than 24 hours so that the outlets shouldn‟t lose customers because

of stock out.



6) Does the sales representative convey the schemes on regular basis?

Convey Schemes RESPONSE Percentage

Yes 43 86%

No 7 14%

Interpretation: As per my survey report, 86% of retailers feel that sales representative

convey the company schemes to them in time. This shows that the sales representatives of the

company are doing well. 14% of the retailers think that schemes are not been conveyed to them

so the sales representatives should make sure that no such outlets are left where the schemes are

not been conveyed. This would reduce loss for both retailers and the distributors.



7) How do you rate the schemes of the Company?

Schemes RESPONSE Percentage

Very Good 2 4%

Good 28 56%

Average 17 34%

Poor 3 6%

Very Poor 0 0%

Grand Total 50 100%

Interpretation: As per my survey report, 56% of the retailers have rated the schemes of

the company as good, 34% of the retailers have rated the schemes of the products are

average, 6% of the retailers have rated the schemes as poor and 4% of the retailers have

rated the company schemes as very good. More than 60% of the retailers are satisfied with

the schemes offered by the company but 40% of the retailers think that the schemes are not

good enough so, the company should work upon the schemes and offer good schemes for the

retailers.



8) How satisfied are you with the margin on the products offered by the company?

Margin RESPONSE Percentage

Very Satisfied 3 6%

Satisfied 25 50%

Average 19 38%

Dis satisfied 3 6%

Very Dis satisfied 0 0%

GRAND TOTAL 50 100%

Interpretation: As per my survey report, 6% of retailers are very satisfied with margin

offered, 50% of retailers are satisfied, 38% of retailers are feel the margin is average, 6% of

retailers are dis-satisfied, none of the retailers are very dis-satisfied.

There is huge gap between retailers‟ expectations of margin and actual margin, around 44% of

retailers thinks that the margin is not enough. As the products offered are great in demand in the

market there is no such need of raising the margin but however to keep the retailers interested in

selling these products the company should work on this to full fill these gaps, by giving better

margin.



9) Are you getting enough information about the schemes of the products?

Information Response

Yes 45

No 5

Interpretation: As per my survey report, 45 out of 50 retailers feel that sales representative

convey the company schemes of the products to them in time. This shows that the sales

representatives of the company are doing well. 5 out of 50 retailers think that the information

about schemes of the products are not been conveyed to them so the sales representatives should

make sure that no such outlets are left where the schemes are not been conveyed. This would

reduce loss for both retailers and the distributors.



10) How do you rate the behavior of the sales representatives with retailers?

Good Behaviour Number of retailers Percentage

Very Good 20 40%

Good 26 52%

Average 4 8%

Poor 0 0%

Very Poor 0 0%

Grand Total 50 100%

Interpretation: As per my survey report, 52% of the retailers have rated the sales

representatives‟ behaviour as good, 40% of the retailers have rated the sales representatives‟

behaviour as very good, 8% of the retailers have rated the sales representatives‟ behaviour as

average. More than 90% of the retailers are happy with the behaviour of sales

representatives. This would help the company and distributor as the sales representatives are

doing well in the market.



11) How satisfied are you with distribution of GSK Consumer HealthCare products?

Distribution Response Percentage

Very Satisfied 5 10%

Satisfied 32 64%

Average 12 24%

Dis satisfied 1 2%


Grand total 50 100%

Interpretation: As per my survey report, 10% of retailers are very satisfied with distribution

of GSK Consumer HealthCare products, 64% of retailers are satisfied, 24% of retailers are feel

that distribution is average, 2% of retailers are dis-satisfied, none of the retailers are very dis-

satisfied.

The retailers around 74% are satisfied with the distribution of the company in Hubli locality.

This shows the distributor is doing good work but this could be improved with improvement in

damage policy, regular supply and credit policy.



12) How do you rate the damage policy of the company?

Damage Policy Response Percentage


Satisfied 21 42%

Average 23 46%

Dis satisfied 1 2%


Grand Total 50 100%

Interpretation: As per my survey report, 10% of retailers are very satisfied with damage

policy of GSK Consumer HealthCare products, 42% of retailers are satisfied, 46% of retailers are

feel that distribution is average, 2% of retailers are dis-satisfied, none of the retailers are very

dis-satisfied.

Most of the retailers have rated the damage policy as average. GSK replaces the product if it is

damaged. But it takes 7 days for the replacement of the products. This means that the retailer has

to wait for 7 days for the replacement. This is why the retailers have rated the damage policy as

average. The retailers are satisfied with the replacement but they want the replacement to be

done in fewer days.



13) How do you rate the credit policy of the company?

Credit Policy Response Percentage


Satisfied 24 48%

Average 16 32%

Dis satisfied 2 4%


Grand total 50 100%

Interpretation: As per my survey report, 14% of retailers are very satisfied with credit policy

of GSK Consumer HealthCare products, 48% of retailers are satisfied, 32% of retailers are feel

that credit policy is average, 4% of retailers are dis-satisfied, 2% of the retailers are very dis-

satisfied.

The retailers around 62% are satisfied with the credit policy of the company. The retailers are

satisfied as they are given with 7 days of credit after the order delivery.



14) According to you company should improve upon?

Improvement Response Percentage

regular supply 2 4%

Damage policy 13 26%

Sales Promotion 25 50%

Credit facility 7 14%

Other 3 6%

Grand total 50 100%

Interpretation: As per my survey report, 50% of retailers think that company should improve

on its sales promotion, 26% of retailers think that company should improve on its Damage policy,

14% retailers think that company should improve on its credit facility, 4% retailers think that

company should improve on its regular supply and 6% retailers think that company should

improve on its other things like scheme information etc.

Majority of the retailers said that company should work on sales promotion activities. The

retailers think that the company is doing less sales promotion activities and it is needed to be

improved.



CHANNEL WISE ANALYSIS:

CHANNEL AMOUNT PERCENTAGE

Bakery 644976.93 1%

Bunk 20195.64 0%

Chemists 7522856.16 15%

GM/GR 98603.69 0%

GMGR 10980769.21 23%

Institution 9899.72 0%

PHARMA STOCKIST 599982.91 1%

Self Service 881258.59 2%

Wholesale 27909020.48 57%

Grand Total 48667563.33 100%



INTERPRETATION:

The analysis of the sales report of Prithvi agencies suggests that the distribution of the GSK

Consumer HealthCare ltd products is dependent on the Wholesale distribution. The channel wise

analysis shows that wholesale contributes around 57% of total sales in Hubli locality. The other

contributors Grocery Retailer 23%, Chemist 15%, Self-service 2%, Bakery 1% and pharma

stockiest 1%. The unreached outlets are the reason for the over dependency on the wholesale

market. The distributor lacks focus on the other channels. As the wholesale channel is a source to

fill in the untouched markets through indirect distribution.



BRAND WISE SALES ANALYSIS:

BRAND CONTRIBUTION(INR)

Boost 7569177

Horlicks 14219000

Crocin 1856687

Eno 13644366

Iodex 1935892

Ostocalcium 662706

Sensodyne 4131927

Others 3999034

Otrinoz 520528

Grand Total 48539318



INTERPRETATION:

GlaxoSmithKline is market leader in the Health food drinks category where it occupies around

60% of the overall market. The Brand wise analysis of the sales of Prithvi agencies shows that

Horlicks is contributing 29% of the total sales. Surprisingly Eno has 28% of the contribution in

the total sales. The other contributors are Boost with 16%, Sensodyne 9%, Iodex 4%, Crocin

4%, Ostocalcium 1% and others 8%. Sales are been majorly through base brands being Horlicks

and Boost which stands uniform in overall India and as well as in South India but here the major

brands are Horlicks and Eno.



SKU WISE ANALYSIS OF SALES:

SKU Quantity

Horlicks 500g all category 15915



Horlicks 18 g all category 1291

Grand Total 32655

INTERPRETATION: The stock keeping unit wise sales analysis of base brand Horlicks

shows that the Horlicks variants like Junior Horlicks, Std Horlicks, Women‟s Horlicks, Growth

Plus, Horlicks Lite and Horlicks Gold all together are 32655 units sold. Horlicks 500g SKU‟s are

15915 units sold, Horlicks 400g SKU‟s are 7307 units sold, Horlicks 200g SKU‟s are 8142 units

sold and the smaller SKU‟s of 18g are 1291 units sold. The analysis shows that the Smaller

packs are driving less in the locality. The smaller packages are the assets to penetrate the new

customers. The distributor needs to focus on the smaller packages as it would help in reaching

new customers.



SKU WISE ANALYSIS OF SALES:

SKU Quantity CONTRIBUTION(INR)

Boost 1 kg BIB 365 231167

Boost 15 gm sachet 384 71410

Boost 200 gm BIB 3101 825769

Boost 500 gm 3412 4674529

Boost 75 gm 2431 699594

Boost 750 gm BIB 3 1435

Grand Total 9696 6503904

INTERPRETATION:

The SKU‟s wise analysis of another base brand shows the above results. The Boost SKU‟s total

sold is 9696 units in the year of 2015. Boost 750 g BIB 3 units are sold, Boost 1 kg BIB 365



units are sold, Boost 15 g 384 units are sold, Boost 75 g 2431 units are sold, Boost 200g BIB

units are sold and Boost 500 g BIB units are sold. The smaller SKU‟s as well as the larger SKU‟s

are sold less. The reason being that 500 g SKU is the standard pack which the consumers usually

buy. In order to reach new customers the smaller SKU‟s are to be sold as the new consumers

usually prefer to buy smaller packages for trail.



SALES TRENDS:

SALES TRENDS INR

September 1351328

October 4451730

November 1163431

December 2410511

INTERPRETATION:

The analysis of the sales of last four months of year 2015 shows that the sale of the products has

been consistently fluctuating. There was huge growth in the month of October as the growth was

about 3 times the September month. Then there was huge drop in the month of November as it

came down to 11 lakhs. In the month of December there was growth of 13 lakhs. This fluctuating

sale is a concern for the distributor as the sale of product had a huge drop in the month of

November.



FINDINGS:

Demand of the products is the reason why the retailers are selling the products of the

GlaxoSmithKline Consumer Health care rather than the margin or promotional activities.

The products like Ostocalcium, Women‟s Horlicks, Horlicks Oats, Horlicks Foodles,

Sensodyne and Crocin are less in demand as compare to the base brands that is reason

why the sales of the product is low in the market.

The products of the company are delivered next day after the order placement but this can

be improved so as to avoid stock outs.

The 86% of the retailers have agreed upon that the sales representative conveys schemes

on regular basis.

More than 60% of the retailers have rated the schemes of the company as good and the

rest had mixed response.

More than 50% of the retailers are satisfied with the margin and the rest had an average

response.

About 90% of the retailers said that the schemes information about the products is

conveyed.

More than 90% of the retailers have rated the behavior of the sales representatives as

good.

74% of the retailers have rated the distribution of the GSK Consumer Health Care in

Hubli locality as satisfying.

46% of the retailers have rated the damage policy as average as the product replacement

is done in 7 days.

The retailers around 62% are satisfied with the credit policy of the company. The retailers

are satisfied as they are given with 7 days of credit after the order delivery.

Majority of the retailers said that company should work on sales promotion activities.

The retailers think that the company is doing less sales promotion activities and it is

needed to be improved.



The channel wise analysis shows that wholesale contributes around 57% of total sales in

Hubli locality. As the wholesale channel is the source to fill in the touched market

through direct distribution.

Sales are been majorly through base brands being Horlicks and Boost which stands

uniform in overall India and as well as in South India but here the major brands are

Horlicks and Eno.

The analysis of base brands like Horlicks and Boost shows that the Smaller packs are

driven less in the locality.

The analysis of the sales of last four months of year 2015 shows that the sale of the

products has been consistently fluctuating.



SUGGESTIONS:

For the products like Ostocalcium, Horlicks oats, Horlicks foodles, Women‟s Horlicks

etc. aggressive advertisement and sales promotion needs to be done.

The delivery of the products can be done in less than a day so as to avoid stock outs by

hiring two or more additional sales representatives as the current sales representatives are

less in number.

Although the brand positioning of GSK is really good as it is market leader in HFD

category but the positioning of products like Ostocalcium, Horlicks oats and Horlicks

foodles seems to be missing so this should be looked upon.

Around 44% of the retailers had a mixed response for the margin as most of them have

agreed that the demand is the driving force of the products but the margin is very not

satisfying. The margin for the health food drinks and packaged foods is very less so this

should be improved as to keep the retailers interested in selling the products.

Most of the retailers have rated the damage policy as average. GSK replaces the product

if it is damaged. But it takes 7 days for the replacement of the products. The company

should reduce the number of days for the replacement as the retailers are satisfied with

the damage policy but they are not happy with the replacement period.

Distributor lacks the focus on other channels. As the wholesale channel is the source to

fill in the untouched market through indirect distribution. Increased number of

representative could help in reaching the unreached market.

The smaller packages are the assets to penetrate the new customers. The distributor needs

to focus on the smaller packages as it would help in penetrating new customers.



CONCLUSION:

I had a great experience of learning from this project, being a part of GlaxoSmithKline

Consumer HealthCare Ltd. I also understood how sales and distribution of GlaxoSmithKline

Consumer HealthCare Ltd is carried out. Through “A systematic study on analysis of sales and

distribution strategies adopted by GSK Consumer Health Care ltd in Hubli locality”

The overall study was regarding the sales and distribution of GSK consumer health care ltd. By

the study I can conclude that the most retailers are satisfied with complete sales and distribution

of the GSK Consumer HealthCare, however there is scope for the improvement in some of

aspects like damage, delivery, margin and credit policy. The distributor of the company in Hubli

should look upon the sales aspect like the channels of distribution and sales contribution.

I convey my thanks to my internal & external mentor, Prithvi agencies‟ staff and retailers of Hubli who

helped to complete this study.



BIBLOGRAPHY:

https://gsk.com

https://en.m.wikipedia.org/wiki/GlaxoSmithKline https://companiesinindia.net/fmcg/ www.ibef.org/industry/fmcg-presentation

Source: Company Documents

Sales master file

o Item wise sales file

https://gsk.com/

https://en.m.wikipedia.org/wiki/GlaxoSmithKline

https://companiesinindia.net/fmcg/

http://www.ibef.org/industry/fmcg-presentation



Annexure

Questionnaire

Hello sir/madam,

I’m AbdulQadir Koitewale, studying M.B.A 1st year in Kousali Institute of Management Studies

Dharwad, K.U.D. For the partial fulfillment of MBA I have taken up “Sales and distribution of

GSK Consumer Healthcare”. I hereby request you to kindly spare a few minutes of your valuable

time in answering the questionnaire. I assure you that, this is used exclusively for academic

purpose only and the information will be kept confidential.

Name of the outlet:__________________________________________________________

Date:___________________Address:____________________________________________

1) Type of outlet?

a) Grocery retailer b) Chemist c) Bakery

d) Pharma stockiest e) Others__________________

2) Are you selling products of GSK Consumer Healthcare Ltd?

a) Yes b) No

3) Reason for selling these products?

a) Margin b) Promotion schemes c) Demand

d) Credit Policy e) Others________________

4) Tick the GSKCH products which you are not selling currently?

a) Boost b) Horlicks c) Women’s Hlx d) Eno

e) Hlx biscuits f) Hlx Oats g) Hlx Foodles h) Sensodyne

i) Crocin j) Iodex k) Ostocalcium



5) Reasons for not selling the product?

a) Credit policy b) Schemes not conveyed c) No Demand

d) Supply of Product e) Promotional material not supplied

f) Others_____________________

6) How much time does it take for delivery of the products after ordering?

a) 6 to 12 Hours b) 1 to 2 days

c) 2 to 7 days d) More than 7 days

7) Does the sales representative convey the schemes on regular basis?

a) Yes b) No

8) How do you rate the schemes of the Company?

a) Very good b) Good c) Average

d) Poor e) Very Poor

9) How satisfied are you with the margin on the products offered by the company?

a) Very satisfied b) Satisfied c) Average

d) Dis-satisfied e) Very dis-satisfied

10) Are you getting enough information about the schemes of the products?

a) Yes b) No

11) How do you rate the behavior of the sales representatives with retailers?

a) Very good b) Good c) Average

d) Poor e) Very Poor



12) How satisfied are you with distribution of GSK Consumer HealthCare products?



13) How do you rate the damage policy of the company?



14) How do you rate the credit policy of the company?



15) According to you company should improve upon?

a) Regular supply b) Damage policy c) Sales promotion

d) Credit facility e) any other________________



EXCEL SHEET