GSK Consumer Healthcare to focus on driving consumption

GlaxoSmithKline Consumer Healthcare will focus on driving consumption through targeted communication, innovation, and expansion of distribution of its products, even as the FMCG sector continues to battle macro-economic challenges.

Manoj Kumar, Managing Director of GlaxoSmithKline Consumer Healthcare, said the company is focusing on not only attracting new consumers but also driving consumption among its current consumer base.

“We have activated our new media campaign that addresses the evening consumption segment. We believe the best dosage for Horlicks is to have it twice a day. While the message of ‘two cups a day’ has been there for Horlicks, we have renewed focus on it and it will continue to be the foundation pillar for growing consumption among our current consumer base,” he said.

New offerings In a bid to grab new consumers in both urban and rural markets, GSK Consumer Healthcare will also focus on introducing innovations. Recently the company launched Chocolate Horlicks, especially targeted at the North and West regions, focused on taste as well as nutrition.

Replying to a query on new product launches, Kumar said, “We keep on looking at designing products to meet our consumers’ needs and we will continue to introduce innovations.” At the same time the company will also be looking to drive growth through its adult health drinks portfolio with variants such as the Mothers Horlicks and Horlicks Light.

“These are science-based products that meet the nutritional needs of adults. We believe this portfolio offers a huge opportunity especially in terms of trials generation and we will be looking at more targeted communication for these products,” he added.

The company has been focusing on increasing accessibility of its products through the right price points and packs and be available in more stores. It recently ramped up distribution of its products to about 3.3 million stores, adding about 200,000 stores. Kumar said the company still has huge opportunity to make its products available in more stores, given the large universe of retail stores.

Accessibility Buoyed by the success of its ₹5 pack of Iodex in rural markets, the company could also look at bringing in more such packs for other products to increase accessibility.

The company’s revenues were impacted in the quarter ending December 2015, due to recent floods in the state of Tamil Nadu, which is a huge market for both Horlicks and Boost. The company, however, said it continues to be a market leader in the health drink category with 59.1 per cent in terms of value share and 67.3 per cent in volume share (MAT December 2015).

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