GSK to focus on modern retail trade
31 October 2008
GlaxoSmithkline Consumer Healthcare has hired internationally renowned Glendinning Management Consultants to advice on its modern trade arena and recently conducted a customer preference study as part of its strategy to strengthen sales in the organised retail channel.
At present, GSKCH care products are available in around 30 retail chains across the country. Some of its key partners include Big Bazaar, Metro, Subhiksha, Reliance and Shoprite.
After successfully positioning its newly-launched Women's Horlicks in the modern trade chain, it is taking up similar initiatives for other products as well.
"Our modern retail initiative contributes about 4.5 per cent of our overall sales, and by 2010, we expect sales through modern trade to contribute around 10 per cent to our turnover," said Aditya Kapoor, general manager, modern trade and CSD, GlaxoSmithKline Consumer Healthcare (GSKCH).
The company expects modern trade sales to account for about 6.7 per cent in 2009.
Kapoor says, "The exhaustive 'voice of customer' survey through Glendinning that helped us understand our customers, in this case modern format retailers, better. We, therefore, are focused on building our customer centric capabilities such as supply chain management, in-store execution, category expertise and joint business planning amongst others."
GSKCH had reported an annual sales of Rs1,600 crore last fiscal and in the quarter ended September, its net sales stood at Rs456.95 crore.
"This initiative helps us connect with our target audience. We work together with the retailers and give suggestions and innovative ways to sell our products. It is more than the supplier and buyer relationship that we share with them," Kapoor added.