GlaxoSmithKline GSK CH - A report on Business Strategy and Growth Avenues in Himachal Pradesh

“Growth Avenues for GSK in Himachal Pradesh” 2012
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“Growth Avenues for GSK in
Himachal Pradesh”
Summer Internship report on finding the Growth Areas for GlaxoSmithKline Consumer
Healthcare in Himachal Pradesh
This document is a report based on the exercise for finding the growth potentials for GSKCH in
Himachal Pradesh Area under xxxxxxxxxxx ASM Punjab, xxxxxxxxxxxxx ASM Himachal Pradesh and
xxxxxxxxxxxxx TSE Himachal Pradesh. The duration of this exercise was 2 months from 11th May,
2012 to 10th July, 2012.
Submitted by-
Maneesh Garg
ID: 20110025
Manigarg21@hotmail.com
MBA 2011-13
Jindal Global Business School

1 Report by: Maneesh Garg – Jindal Global Business School
11jgbs-mgarg@jgu.edu.in
Acknowledgement
A Summer Training project is a synthesis of knowledge and experience of experts in their related
fields. However, no project is possible without the guidelines and help that are extended by the
experts to the student with the sole benevolent purpose of intellectual development.
First and foremost I would like to express my gratitude and thank to xxxxxxxxxxxxxx ASM, Punjab
who was my mentor, for guiding me throughout the entire training period.
I owe enormous intellectual debt towards my teacher Dr. xxxxxxxxxxxxxxxx whose suggestions and
guidance were invaluable and helped me throughout my project
I am also thankful to Mr. xxxxxxxxxxxxxxx (ASM, Himachal Pradesh), Mr. xxxxxxxxxxxxxx (TSE,
Himachal Pradesh) and Mr. xxxxxxxxxxxxxx (HR, Delhi Branch) for guiding me and for providing
fruitful insights on subject. This Report would not have completed without the inputs and the
words of advice from them for which I shall always remain grateful to them.
I would also like to thank all members of the Sales, Marketing and HR Department who have
directly or indirectly helped in providing the information and amenities which have helped in
development of this report, without such help this report would not have been possible.
This project has given me the opportunity to work with one of the most respected companies in the
world. I am Thankful to GlaxoSmithKline for providing me with this opportunity

Table of Contents
Executive Summary........................................................................................................................................................................................ 5
INTRODUCTION............................................................................................................................................................................................... 6
About GlaxoSmithKline................................................................................................................................................................... 6
GSK Products....................................................................................................................................................................................... 6
Organizational Structure of GSK................................................................................................................................................. 7
Incentives to USRs............................................................................................................................................................................. 7
Table 2 – GSKCH Product Details ............................................................................................................................................... 5
The Distribution System................................................................................................................................................................. 7
GSK Distribution Model........................................................................................................................................................ 7
Trade Parties............................................................................................................................................................................. 7
Margin Structure of agents dealing in GSK products .............................................................................................. 8
Growth Avenues for GSK.............................................................................................................................................................................. 9
The Research....................................................................................................................................................................................... 9
Facts and Points to be considered for this Research......................................................................................................... 9
Process of Research.......................................................................................................................................................................... 9
Retailer Questionnaire........................................................................................................................................................10
Distributor Questionnaire.................................................................................................................................................17
Benchmark Companies...............................................................................................................................................................................18
P&G........................................................................................................................................................................................................19
Products List ...........................................................................................................................................................................19
P&G’s Revenue by segment ..............................................................................................................................................19
Distribution Model ...............................................................................................................................................................20
P&G’s Working style............................................................................................................................................................21
P&G’s Strategy........................................................................................................................................................................21
Initiatives..................................................................................................................................................................................22
Nestle....................................................................................................................................................................................................24
Strategy .....................................................................................................................................................................................24
Nestle products list and major brands...................................................................................................................................24
Organization Structure.......................................................................................................................................................26
Sales and Distribution Model...........................................................................................................................................26
Transportation Expenses ..................................................................................................................................................27
Display Scheme......................................................................................................................................................................28
Travelling Allowence in case of Night Halt................................................................................................................32
Field Force Travel entitlement .......................................................................................................................................32
HUL........................................................................................................................................................................................................34
HUL products detail.............................................................................................................................................................35

Distribution Model ...............................................................................................................................................................37
Strategy .....................................................................................................................................................................................37
Growth Drivers ......................................................................................................................................................................38
Marketing Initiatives...........................................................................................................................................................40
Colgate Palmolive............................................................................................................................................................................42
Products Detail.......................................................................................................................................................................42
Salary Structure of PSR (Primary Sales Rep)- Colgate....................................................................................................43
Sales and Distribution.........................................................................................................................................................44
Colgate Distributors .......................................................................................................................................................................44
Analysis of Himachal Population and Geography...........................................................................................................................46
Map of Himachal Pradesh..........................................................................................................................................................................47
Analysis of sales on “Per Capita” and “Per Outlet” basis..............................................................................................................48
Analysis of per capita sales in HP.............................................................................................................................................51
Analysis of sales per outlet in HP .............................................................................................................................................52
Cost cutting in transportation expenses.............................................................................................................................................53
Analysis of existing transportation expenses.....................................................................................................................53
Transport quotation (at floating rate).........................................................................................................................53
Transport quotation @ floating rate ............................................................................................................................53
Transport Quotation @ fixed rate .................................................................................................................................55
Visibility Analysis..........................................................................................................................................................................................57
POS material-.....................................................................................................................................................................................57
In Store Visibility.............................................................................................................................................................................57
Visibility of other brands...................................................................................................................................................60
SKU Analysis....................................................................................................................................................................................................61
Horlicks................................................................................................................................................................................................61
Analysis of competitors’ products (Malt Drinks) ...................................................................................................61
Research results ....................................................................................................................................................................64
Women & Mother Horlicks..........................................................................................................................................................65
Target Market.........................................................................................................................................................................65
Availability...............................................................................................................................................................................65
Junior Horlicks..................................................................................................................................................................................66
Availability...............................................................................................................................................................................66
Target Market.........................................................................................................................................................................66
Product packaging comparison......................................................................................................................................66
Boost .....................................................................................................................................................................................................67
ENO........................................................................................................................................................................................................68

Analysis of competitors’ products.................................................................................................................................68
Sensodyne Toothpaste..................................................................................................................................................................70
Analysis of competitors’ products.................................................................................................................................70
Packaging Comparison .......................................................................................................................................................70
Research Results ...................................................................................................................................................................71
Availability...............................................................................................................................................................................71
Sensodyne Brush.............................................................................................................................................................................72
Competitor product detail ................................................................................................................................................72
Product Packaging Comparison .....................................................................................................................................72
Iodex......................................................................................................................................................................................................74
Analysis of competitor products....................................................................................................................................74
Product packaging comparison- ....................................................................................................................................74
Crocin Tablet .....................................................................................................................................................................................76
Horlicks Foodles ..............................................................................................................................................................................78
Reason of product failure..................................................................................................................................................79
Horlicks Biscuit ................................................................................................................................................................................80
Analysis of USR’s job satisfaction level................................................................................................................................................81
Table showing job satisfaction score of USRs.....................................................................................................................81
Recommendations ..........................................................................................................................................................................81
Van Operations (Ready Stock Model) ..................................................................................................................................................82
Analysis of 2nd Base for Super Distributor.........................................................................................................................................83
Other Observations and Recommendations .....................................................................................................................................84
Increasing the product portfolio ..............................................................................................................................................84
Joining hands with culture ..........................................................................................................................................................85
Recommendations (Schemes for SKUs)..............................................................................................................................................86
Summary of Growth Avenues..................................................................................................................................................................87
Campaign Ideas..............................................................................................................................................................................................88
Learnings ..........................................................................................................................................................................................................89
References........................................................................................................................................................................................................90

Executive Summary
The scope of this project was to identify the avenues of growth for GSKCH (GlaxoSmithKline
Consumer Healthcare) products in Himachal Pradesh. The duration of this internship was two
months. The project involved benchmarking the “go to market model” and distribution structure of
Major FMCGs in Himachal Pradesh along with their distribution models, current coverage status,
gaps in their distribution structures, margins, transportation expenditures and distribution
infrastructure. The project also involved benchmarking the “in-market” visibility standards of
major FMCGs, identifying the sources of growth for GSKCH, devising a complete annual brand
activation calendar, doing a pilot implementation of suggested recommendations and doing a cost
benefit analysis of the activation plan.
By looking into this report, the company will be able to know the current status of the
distribution model, availability, loopholes in the current distribution system, visibility of GSKCH
products at major outlets in HP(Himachal Pradesh), possible scope for cost cutting, optimum
utilization of available resources, SKU wise analysis and their marketing plans. This report also
helps to understand the competitors' and other major FMCGs’ (P&G, HUL & Nestle) strategies.
The below table shows a snapshot of HP demographics and the sales data in the three different
belts of Parwanoo, Mandi and Dharamshala for an overall view of the region.
Code Belt Population
No of
distributors
No of
drug
licensees
No of Direct/
Super
Distributors
No of
outlets
Avg. per
capita
sales
Average sales
per belt in
percentage
1 Parwanoo 364000 18 11 2 540 ₹8 40%
2 Mandi 142000 15 10 0 715 ₹8 25%
3 Dharamshala 133500 22 15 1 587 ₹12 35%
Himachal 6850000 56 36 3 1842 ₹1 100%
Parwanoo Belt-Shimla, Ponta Sahib, Una, Baddi, Solan are the major towns
Mandi Belt-Mandi, Bilaspur, Manali and Bilaspur are the major towns
Dharamshala Belt-Kangra, Dharamshala, McLeodganj, Hamirpur and Bhota are the major towns.
As a part of this internship, more than 350 retail stores, and 50 distributors were visited at
25 places, their issues addressed, observed the sales pattern, collected research data, checked
visibility and availability of products, analyzedretailers’ choice, and analyzed the strategy of other
FMCG companies.

INTRODUCTION
About GlaxoSmithKline
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 the former is
headquartered at DLF Gurgaon and the latter at Worli, Mumbai. In the Indian market, GSKCH's
journey began with Horlicks.
Headquartered in the UK GSK has over 100,000 employees worldwide including 35000 employees
at 85 manufacturing sites in 37 countries, over 16,000 in R&D and over 40,000 in sales and
marketing.
GSKCH Owned Manufacturing Sites in India are at
 Nabha, Punjab
 Rajahmundry, Andhra Pradesh
 Sonepat, Haryana
GSKpharma is the parent company which has two divisionsviz., GSKCH (GSK consumer healthcare)
and GSK pharma. GSK’s global quest is to improve the quality of human life by enabling people to do
more, feel better and live longer.
GSK Products
GSKhas three different types of products
a) Nutritional(also called HFD-Health Food Drinks)
 Boost, Horlicks [Competitor products are Bournvita and Complan)
 Horlicks Biscuits
 Foodles [Competitors are Nestle Maggie, Knorr Soupy Noodles, Yippee Noodles, etc.]
b) Oral Healthcare
Sensodynetoothpaste and brush [Competitors- Colgate Sensitive]
c) Wellness
 Analgesics-Crocin Range [Competitors are Saridon and Disprin]
 Gastro Intestinal-Eno [Competitors are Digene, Gas-O-Fast, Pudin Hara, Fast Melt]
 Rubs-Iodex [Competitors areMoov, Volini, Fast Relief]

Organizational Structure of GSK
Incentives to USRs
Every company has some kind of incentives for its employees and dealers. This motivates
them to give more to their work and take more responsibility. The incentives could be in the form
of money or material. At GSK, the incentive structure is based on three kinds of targets
 D1- It is based on the number of parties billed for particular products. For example, on
selling Women Horlicks to 15 distributors, Rs.340 will be paid as incentive.
 D2- This is same as D1 but for products which are different from those in D1. If D2 is
achieved Rs.320 will be paid as incentive.
 D3- This target is based on the total number of parties billed, irrespective of the products.
For example on billing 25 parties (Distributors) in a particular month, If D3 is achieved then
Rs.320 will be paid as incentive.
 Value Target- Value target is set based on sales revenue that needs to be generated in a
month. For example, a USR(Upcountry Sales Representative) needs to achieve a sales target
of Rs.20 lakh in a particular month. If the value target is completely(100%) achieved, then
Rs.1000 will be paid as incentive and if 105% is achieved, then Rs.1200 will be paid as
incentive.
Hence a sales man can claim a maximum of (340+320+320+1200) = Rs.2180 as incentive per
month.

Table 2 – GSKCH Product Details
Product Detail of GSKCH (Consumer Healthcare) - Himachal
Product
Category
Product
Name
Variants
SKU (Stock Keeping
Unit)
Case Lot Expiry MRP per unit USP (Unique Selling Point)
NHC
(Nutritional
Healthcare)
[R- Refill; J-
Jar]
Horlicks
Standard/Original 200 gm./500 gm./1 Kg. 48/24/12
12 months
Rs.80/165/285
Taller, Stronger, SharperElaichi 500 gm. 24 ₹165.00
Chocolate 80gm./200gm./500gm. 96/48/24 Rs.25/80/165
Junior
Horlicks
(Stage1)
Standard/Original 500gm. 24
12 months
₹190.00 "Specially designed for toddlers" 1) A-Z
Nutrition, 2) 100% RDA of Nutrients 3)
DHA for brain developmentChocolate 500gm. 24 ₹190.00
Junior
Horlicks
(Stage2)
[Refill]
Standard/Original 500gm. 24
12 months
₹190.00 "Customized for preschoolers"1) 25 vital
nutrients 2) Power of protein 3) Smart
nutrients for brain development 4) Rich in
calcium
Chocolate 500gm. 24 ₹190.00
Women
Horlicks
Chocolate 330gm. 24
12 months
₹180.00 For confident, Health Conscious and Multi-
Tasking women (Hemocal Nutrients for
Blood & Bone Health)Caramel 330gm. 24 ₹180.00
Mother
Horlicks
Standard 500gm. 24 12m ₹260.00
Boost Standard
80gm.(R)/180gm.(R)/
450gm(Jar)/750gm(R)
96/48/24/12 12 m
Rs.
25/75/162/240
Increase stamina by 3 times
Horlicks
Cookies
Butter 80gm. 96
6 months
₹10.00 Contains calcium equillent to two glass of
milk ( 1.No Artificial flavor 2.No Artificial
color 3.No Cholesterol 4.No Trans-fat)Cashew 80gm. 96 ₹12.00
Horlicks
Biscuit
Standard
52.5/114/152.5/244/
310gm.
144/72/60/48/36 6 months
Rs.5/10/15/20/
25
Contains cornflakes crunchies and calcium
equillent to two glasses of milk
Horlicks
Foodles
4 Grain-Tomato 80gm. 120
6 months
₹15.00
Health maker with power vitamins (4
Grains- Rice, Wheat, Ragi, Corn)
Regular Must
Masala
80gm. 120 ₹10.00
Health maker with power vitamins. (The
more Nourishing Noodles)
OHC (Oral
HealthCare)
Sensodyne
Toothpaste
Fresh Gel 40gm./80gm. 144/72
24 months
Rs.45/ 85
Clinically proven relief and daily protection
for sensitive teeth, Works in 60 seconds
Fresh Mint 40gm./80gm. 144/72 Rs.45/ 85 24*7 sensitivity protection
Rapid Relief 40gm./80gm. 144/72 Rs.55/ 110
Clinically proven to relieve the sensitivity
of tooth, Works in 60 seconds
Sensodyne
Brush
Ultra-Sensitive 1 unit 12 pieces*12 Box=144 ₹45.00
Specially designed for people with
sensitive teeth

Wellness or
OTC (On
The
Counter)
Crocin Tab.
Pain Relief 10 Tab.
40 Dispenser*10 Blisters=
400
24 months
₹20.35 Targeted pain relief
Cold & Flu 6Tab.*2stripes=12 Tab. 80 Hangers*5 Blisters= 400 ₹11.60 Multi Symptom Relief
Analgesic Tab. 15 Tab.
35 Blisters*48
Dispensers=1680
₹22.39 It’s my trusted choice
Advance Tab. 15 Tab.
25 Stripes*36 Dispensers=
900
₹30.00 Paracetamol fast release tablet
Crocin Syrup
Suspension 60 ml. 72 Bottles
24 months
₹33.73
Suspension-DS 60 ml. 72 Bottles ₹35.31
Crocin Drops Standard 15 ml. 25 Bottle*8 Box=200 24 m ₹26.50 Analgesic and Antipyretic
ENO
Regular
5gm.
30 Pouch*72
Dispensers=2160
24 months
₹6.00
Gets to work in 6 seconds
30gm. 12 Box*12 Bottles=144 ₹36.00
100gm. 48 Bottles ₹80.00
Lemon
5gm.
60 Pouch*36
Dispensers=2160
₹6.00
30gm. 12 Box*12 Bottles=144 ₹36.00
100gm. 48 Bottles ₹80.00
Orange
5gm.
30 Pouch*72
Dispensers=2160
₹6.00
100gm. 48 Bottles ₹80.00
Cola 5gm.
Iodex
Ultra Gel 30gm. 180 units
24 months
₹70.00
Effective relief from Back, Joint and
Muscular pain
Double power 10gm./20gm./50gm. 384/240 units/120 units Rs.24/ 46/? Quick Action, Fast Relief
Fast Relief 20gm. 240 units ₹46.00
Breath Right Standard 8 Strips 72 units of 8 strips=576 strips 5 years ₹55.00
Breath better, Relieve nasal congestion,
Reduce snoring

The Distribution System
GSK Distribution Model
Trade Parties
Company has two kinds of trade
a) General Trade – In General trade goods are sold to directly to distributors and then from distributor
to retailers.
b) Modern Trade - In this type of trade goods are sold to big organized retail stores like Big Bazaar,
Vishal Mega Mart and WalMart, etc.

Margin Structure of agents dealing in GSK products
There are different kinds of agents like distributors, retailers, wholesalers, etc. who deal in GSK products and
push the products in the market to fulfill Consumer demands and company’s objectives and targets. They
form an important and an integral part of the supply chain of the GSK products in the market. The margin
structure of GSK is different for agents at different levels and is decided by the company. The margins for
various agents are as follows
Distributor’s Margin
 Direct Distributor- 4.5%
 Super Distributor- 1.7% + 1% (as transportation expenses from GSK)
Retailer’s Margin
 Malt Drinks – 8%
 Biscuits - 10%
 Foodles – 10%
 Wellness (ENO & Crocin)- 20%
 Iodex – 23%
 SensodyneToothpaste– 15%
 Sensodyne Brush- 40%
 Biscuit/ Cookies – 12%

Growth Avenues for GSK
Himachal Pradesh is an important state for GSK and GSK wants to grow its business in Himachal. But
to grow, the company needs to find out the ways by which it could devise a different strategy for each of its
products. The company needs to know the current position of its products (visibility, availability, product
placement, and USP of the products) and the competitors’ strategy.
The Research
A research was to be done on finding out the growth avenues for GSKCH in Himachal Pradesh as a
part of this internship in GSK. This research aims to fulfill the objective stated above and also to find out the
demand and supply scenario of each product, i.e., if the product is pulled by or pushed to the customer. The
responsibilities for this research included visiting the distributors and retailers of GSK products and also of
the competitors’, liking and brand image of GSK products among the distributors and retailers, finding out
their margin structure from other companies, transportation cost, salaries/wages paid to sales persons,
product availability, visibility, etc.
Facts and Points to be considered for this Research
 Measuring of consumer loyalty is not included in this research. Consumer Loyalty depends on the
buyer’s satisfaction upon consuming the product. Consumer satisfaction has a crucial impact on
consumer loyalty, but it is beyond the scope of this research.
 A pre assumption was made about availability of all the SKUs of GSK products at the retailers. But this
was not the case when the actual visit happened. Many of the SKU variants were not available at a few
retailers. But the retailers were aware of all the SKUs.
Process of Research
The research was done with two questionnaires, one for retailers and the other for distributors. The
one for the retailers had all questions based on awareness about GSK products, self-use, personal opinion
about the product, availability of products, visits by USR and Sales Persons, SKUs and other details related to
competitor products. The questionnaires and the resulting outcome from the analysis are presented in the
next few pages of this report.

Retailer Questionnaire
Firm Name-
Owner’s Name-
Contact No.-
Place-
Date-
Any Comments, Complaints or Suggestions (Write in
this box after filling up the questionnaire)
1. Please mark the products you are aware of or used sometime…
Aware Used Aware Used
Horlicks Iodex
Boost Sensodyne Toothpaste
Horlicks Biscuits Sensodyne Brush
Horlicks Cookies Crocin Tablet
Horlicks Foodles Crocin Syrup
ENO Crocin Drops
2. Whether customer asks for the product or you suggest him to buy the product? (Mark in the appropriate
column)
Customer asks
for this product
You Suggest Customer asks
for this product
You suggest
Horlicks Iodex
Boost Sensodyne Toothpaste
Horlicks Biscuits Sensodyne Brush
Horlicks Cookies Crocin Tablet
Horlicks Foodles Crocin Syrup
ENO Crocin Drops
3. As a retailer if you need to suggest the customer, what would be your 1st choice and Why? Mark the
product & write
(1)For Higher Margins (2)Better Schemes/Incentives (3)Better Advertisement (4)Bettertaste/quality(5)No such
particular reason (6)Other (please specify)
Product (+Any Scheme you are getting) Reason Of your choice
Complan Boost Bournvita Horlicks Other
Horlicks Biscuit Other [ ]
Maggie
Horlicks
Foodles
Yippy
Noodles(ITC)
Knorr Other
Fast Melt Gas-O-Fast ENO Other
Moov Iodex Fast Relief Volini Other
Seridon Crocin Disprin Other [ ]

4. How frequently GSK salesman visits at your shop?
a)Twice in a week b) Once in a week c) Oncein 2 weeks d) Once a month e) You order on phone (visit very rarely)
5. SKU’s available at store… (Mark in the box)
Mark Grocery & Confectionary Variants Mark Medical Stores Variants
Horlicks ST CH El PCH Horlicks ST CH EL PCH
Women Horlicks CH CR Women Horlicks CH CR
Junior Horlicks ST CH Junior Horlicks ST CH
Boost ST PCH Boost ST PCH
ENO ST LM OR CO ENO ST LM OR CO
Sensodyne Toothpaste FG FM RR Sensodyne Tooth Paste FG FM RR
Sensodyne Brush ST Sensodyne Brush ST
Iodex FR Iodex FR DP UG
Horlicks Foodles 4G RM Crocin Tablet ANL ADV CF PR
Horlicks Biscuits & Cookies St CF BC CC
Crocin Syrup SS SS-DS
Crocin Drops ST
Other product related details…
Sr.
No.
Product Margin Scheme
Any
Other
Incentive
Distributor/wholesaler
(+place)
Any other comments
(campaigning or
display)
1 Colgate Sensitive
2 Sensitive Brush
3 Bournvita (Cadbury)
4 Complan (Heinz)
5
Nestle Ceramal/
Lactogen/ Nan
6 Maggie (Nestle)
7
Knorr Soupy
Noodles(HUL)
8 Yippy Noodles (ITC)
9 Fast Melt (Digene)
10 Gas-O-Fast(Mankind)
11 Pepfiz (Ranbaxy)
12 Moov (ParasPharma)
13 Volini(Ranbaxy)
14 Fast Relief (Emami)
15 Disprin (RB)
16 Seridon (Bayer CH)
17
18
19

Research Results from Retailer Questionnaire
Q.1 Please mark the products you are aware of or used sometime…
Table 3 – Product Awareness
Product awareness
Not
aware
Aware Used
Not
aware
Aware Used
Horlicks 100% 73% Iodex 100% 73%
Boost 100% 45%
Sensodyne
Toothpaste
100% 55%
Horlicks Biscuits 36% 64% 45% Sensodyne Brush 9% 91% 27%
Horlicks Cookies 73% 27% 9% Crocin Tablet 100% 55%
Horlicks Foodles 45% 55% 18% Crocin Syrup 100% 45%
ENO 100% 91% Crocin Drops 27% 73% 27%
Sample size-33 retail outlets
Observations-
 ENO is our landmark product. 100% people are aware of it. Almost all of them have used
it.Most of our brands (Horlicks, Boost, Iodex andCrocin) have 100% awareness.
 73% of retailers don’t even know that there is a product called Horlicks Cookies, which is
quite alarming.
For more detailed analysis please refer to “SKU wise analysis” in this report.

Q.2Whether customer asks for the product or you suggest him to buy the product?
Objective- If the retailer is pushing our product, we need to give more focus to retailer – hence
incentivize the retailer (by giving him better margin and schemes).
If consumer is pulling our product we need to focus more on consumers – hence incentivize the
consumer (by giving them better discounts and promotional offers).
Table 4 – Consumer’s Choice
Consumer's choice
Product
Don’t keep
this product
Customer
asks for this
product
You
Suggest
Product
Don’t keep
this product
Customer
asks for this
product
You
suggest
Horlicks 82% 18% Iodex 91% 9%
Boost 9% 73% 18%
Sensodyne
Toothpaste
45% 64%
Horlicks
Biscuits
36% 36% 27%
Sensodyne
Brush
9% 27% 64%
Horlicks
Cookies
45% 36% 18% Crocin Tablet 73% 27%
Horlicks
Foodles
36% 36% 27% Crocin Syrup 64% 36%
ENO 82% 18% Crocin Drops 73% 27%
Sample Size-33 retail outlets
 Most of the retailers say that Horlicks, Boost, ENO, Iodex (highlighted in green) are the
products which most of the customers ask themselves. So we do not need to increase the
retailers’ margin in these products. But we should incentivize the consumer for these
products to further increase the sales.
 Sensitive category is the category where the company should be highly focused. Because
64% of the retailers say that they suggest the consumer to choose a brush or toothpaste for
sensitive toothpaste. So there should be more incentive for retailers in this category. Also
our competitor Colgate sensitive is trying to increase its market share through better
product visibility, and consumer and retailer offers.
For further detailed research analysis please refer to “SKU analysis” in this report.

Q.3 As a retailer if you need to suggest the customer, what would be your 1st choice and Why?
Objective-If a product is most of the retailers 1st choice than they will always try to push that
product. The objective of this question was to find out that which of our products are retailers 1st
choice, and which are not. The products which are not retailers 1st choice are the products where
need to focus more.
Table 5 – Retailer’s first choice and ranking
Retailer's First Choice and Ranking
Category Product Results Rank Reason of choice
Malt Drinks
Bournvita 64% 1 Higher Margin, Better Schemes
Horlicks 18% 2
Compaln 9% 3 Good No. of variants
Boost 9% 4 Scheme
Biscuit
Others (Britannia) 91% 1 Consumer asks for it
Horlicks Biscuits 9% 2
Noodles
Maggie 73% 1 Consumer's first choice/ Better Ad
Yippy Noodles 18% 2
Horlicks Foodles 9% 3
Knorr 0% 4
Digestives
ENO 82% 1 Old brand/ Consumer's first choice
Gas-O-Fast 18% 2 Good placement of product/ Tv Ad
Fast Melt 0% 3
Pain relief cream
Moov 45% 1 Tv Ad
Iodex 27% 2
Fast Relief 18% 3
Volini 9% 4
Pain relief Tablet
Disprin 55% 1 Old Brand
Seridon 27% 2
Crocin 18% 3
Sensitive Toothpaste
Sensodyne 64% 1 Better Ad/ Quick relief
Colgate Sensitive 36% 2
Sensitive Brush
Colgate Sensitive 64% 1 Better Schemes/ Higher Margins
Sensodyne 36% 2
Sample size-33 retail outlets
Observations-
 In malt drink category Bournvita is at top. It is also the first choice of most of the retailers. 3
out of 4 Retailers will suggest Bournvita to consumers (if they need to).
 Our top products are Sensodyne Toothpaste and ENO, which are most of the retailers’ first
choice.
 In Pain Relief Tablets, Crocin and in Sensitive Brush category, Sensodyne are at bottom.
Which means most of the retailers’ 1st choice is some other product, and not ours.

Q.5. Product Availability Sheet-All retailers do not entertain the request of filling up questionnaire. So this sheet was made to record the
observation related to product availability (SKU ), visibility % and POS Material.This is same as given in Q.5 of Retailerquestionnaire.
Outlet No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Visibility %
POS Mat. Y, N
ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST
CH CH CH CH CH CH CH CH CH CH CH CH CH CH CH CH CH CH CH CH CH CH CH CH CH
El El El El El El El El El El El El El El El El El El El El El El El El El
PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH
CR CR CR CR CR CR CR CR CR CR CR CR CR CR CR CR CR CR CR CR CR CR CR CR CR
PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH PCH
LM LM LM LM LM LM LM LM LM LM LM LM LM LM LM LM LM LM LM LM LM LM LM LM LM
OR OR OR OR OR OR OR OR OR OR OR OR OR OR OR OR OR OR OR OR OR OR OR OR OR
CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO CO
FG FG FG FG FG FG FG FG FG FG FG FG FG FG FG FG FG FG FG FG FG FG FG FG FG
FM FM FM FM FM FM FM FM FM FM FM FM FM FM FM FM FM FM FM FM FM FM FM FM FM
RR RR RR RR RR RR RR RR RR RR RR RR RR RR RR RR RR RR RR RR RR RR RR RR RR
Sensodyne Brush ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST
FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR FR
DP DP DP DP DP DP DP DP DP DP DP DP DP DP DP DP DP DP DP DP DP DP DP DP DP
UG UG UG UG UG UG UG UG UG UG UG UG UG UG UG UG UG UG UG UG UG UG UG UG UG
ANL ANL ANL ANL ANL ANL ANL ANL ANL ANL ANL ANL ANL ANL ANL ANL ANL ANL ANL ANL ANL ANL ANL ANL ANL
ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV
C&F C&F C&F C&F C&F C&F C&F C&F C&F C&F C&F C&F C&F C&F C&F C&F C&F C&F C&F C&F C&F C&F C&F C&F C&F
PR PR PR PR PR PR PR PR PR PR PR PR PR PR PR PR PR PR PR PR PR PR PR PR PR
SS SS SS SS SS SS SS SS SS SS SS SS SS SS SS SS SS SS SS SS SS SS SS SS SS
DS DS DS DS DS DS DS DS DS DS DS DS DS DS DS DS DS DS DS DS DS DS DS DS DS
Crocin Drops ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST
Product Availability Sheet (M.S.)
Sensodyne
Toothpaste
Horlicks
Women Horlicks
Junior Horlicks 1
Junior Horlicks 2
Boost
ENO
Crocin Tablet
Iodex
Crocin Syrup

Analysis of Product availability
Table 6 – Results of product availability analysis
Results of product availability analysis
Variants Availability Variants Availability
Horlicks
ST 66%
Sensodyne Toothpaste
FG 60%
CH 76% FM 38%
El 46% RR 40%
PCH 18% Sensodyne Brush ST 48%
Women Horlicks
CH 38% Horlicks Foodles 24%
CR 30% Horlicks Biscuits & Cookies 28%
Junior Horlicks 1
ST 56%
Iodex
FR 46%
CH 42% DP 40%
Junior Horlicks 2
ST 38% UG 40%
CH 26%
Crocin Tablet
ANL 52%
Boost
ST 50% ADV 44%
PCH 22% C&F 64%
ENO
ST 42% PR 40%
LM 98%
Crocin Syrup
SS 56%
OR 28% DS 32%
CO 60% Crocin Drops ST 40%
Sample Size-50 retail outlets
The above sheet shows the results of product availability analysis. Columns in Green show the
products which are above average and columns in red show the products which are below average
(in terms of availability at stores).
Observations-
Product Availability-
 ENO Lemon is GSK’s landmark product which was available at 98% of the retail outlets
visited.
 Horlicks Standard, Chocolate, Junior Horlicks (St-1) Standard, Boost, ENO Cola,
Sensodyne Fresh Gel, Crocin Analgesic, Cold & Flu, and Syrup are above average-
available at more than 50% of the stores.
 Horlicks & Boost Pouch, Women Horlicks Caramel, Junior Horlicks (Stage-2) and ENO
Orange were available at very few stores.
Product Visibility-
 GSK’s average visibility score was approximate 35%. This is below average score which
means, GSK’s competitors have65% share of visibility.
POS Material-
No POS material was found at any Store except Parwanoo and some retail shops in Solan.

Distributor Questionnaire
Firm Name-
Place-
Population-
Total GSK Sales-
Date-
No. of Outlets-
Any Comments, Complaints or Suggestions
(Write in this box after filling up the questionnaire)
Q. Which other company’s distributorship you have apart from GSK? (Please Name them)
Sr.
No.
Company
Name
Distributor
Type
(Direct/Supe
r/ Sub)
Dist.
Margin
Retailer
Margin
Scheme (If
applicable)
Any Other
Incentive
(Transportati
on etc.)
Monthly
Sales
Total
Himachal’s
monthly
Sales
Credit
Period
1 Colgate
2 Cadbury
3 Heinz
4
Rickett
Benckiser
5 Nestle
6 ITC
7 HUL
8
9
10
Product wise detail…
Sr.
No.
Product
Distributor
/Retailer
Margin
Scheme
Any
Other
Incentive
Transpor
tation
Expenses
Monthly
Sales
(Individua
l)
Total
Himachal
Sales
(per
month)
Any other
comments
(campaignin
g/display/
Credit
Period etc.)
1 Colgate Sensitive
2 Sensitive Brush
3 Bournvita (Cadbury)
4 Complan (Heinz)
5
Nestle Ceramal/
Lactogen/Nan
6 Maggie (Nestle)
7 Knorr Soupy Noodles(HUL)
8 Yippy Noodles (ITC)
9 Fast Melt (Digene)
10 Gas-O-Fast (Mankind)
11 Pepfiz (Ranbaxy)
12 Moov (ParasPharma)
13 Volini(Ranbaxy)
14 Fast Relief (Emami)
15 Disprin (RB)
16 Seridon (Bayer CH)

Benchmark Companies
These 3 companies are chosen as benchmark companies-
The reasons of choosing these companies as benchmark are following-
 They have very large portfolio of products.
 Their supply chain is much better than others.
 Their coverage is better than other FMCG companies.
 They are the most innovative companies in this sector.
 They are the market leaders, in terms of highest revenue and market share.
There are many things which can be learned from these companies. They handle so many brands
under the single roof with their continuous innovation and efficient network.
Focus Areas-
These are the things which differentiate them from others. The key focus areas are-
i. Working strategy
ii. Organization structure and Supply chain
iii. Product portfolio
iv. Innovations
v. Marketing strategies
vi. Payments and expenses structure
Note- Everything is not included while analyzing the strategy of these companies. The data which is only relevant for GSK is included in
this report.

P&G
Products List
P&G Product List and Key Brands
Segment Products Key Brand
Revenue By
Segment
Beauty
Cosmetics, Deodorants, Hair
Care,Personal Cleansing,
Prestige,Fragrances, Skin Care
Head & Shoulders, Olay,
Pantene,Wella
23%
Grooming
Blades and Razors, Electric
Hair,Removal Devices, Face and
Shave,Products, Home Appliances
Braun, Fusion, Gillette, Mach3 10%
Health Care,
Snacks, Pet
Care
Feminine Care, Oral Care, Personal
Health Care, Pharmaceuticals, Pet
Food, Snacks
Actonel, Always, Crest, Oral-B,
Iams, Pringles
17%
Home Care
Air Care, Batteries, Dish Care,
Fabric,Care, surface Care
Ariel, Dawn, Downy, Duracell,
Gain,Tide
28%
Family Care
Baby Wipes, Bath Tissue,
Diapers,Facial Tissue, Paper Towels
Bounty, Charmin, Pampers 16%
P&G’s Revenue by segment
Revenue By
Segment
0% Family Care
16%
Beauty
23%
Grooming
10%
Health Care
17%
Snacks
6%
Home Care
28%
P&G - Revenue By Segment

Distribution Model
P&G has entirely different systems of distribution. GSK has a C&F agent (in Zeerakpur) and
also has appointed 8 Redistribution stockiests (who cover the urban areas), and to cover the Rural
areas they further appoint wholesalers. Redistribution stockiestsbill the wholesaler at Basic Margin
+ 1.5% extra on all items and 3% extra on Vicks.
Plans for wholesalers
 Wholesale – 1.5% extra margin on all items and 3% extra on Vicks
 Wholesale 1 – Target + Extra 1.5% (on all items) and 3% (on Vicks) + schemes +
Quarterly points
 Wholesale 2 – No quarterly points + Extra 1.5% (on all items) and 3% (on Vicks) +
Extra 1% + Scheme

P&G’s Working style
 P&G has complete control over retailers and sales team. The company selected 547 retailers
in Kangra District (retailers who sell at least 15-20 products of P&G and give good sales to
the company). There is a target fixed for these retailers as well. The retailers get some extra
incentive of 1-1.5% on completing these targets.
 A wholesaler can work for many companies but distributors work only for P&G.
 The sales team is entirely paid by the company. And distribution expenses are also fully
paid by the company.
 The distributor has its own vehicles for distribution/ or they hire.
 Company pay salary of 12000-15000 per month to the drivers + Fuel expenses (actual)
Or
They are also paid on per Km. basis (Depending upon the route)
 Supply is weekly at most of the places. They take order one day in a week and supply next
day by jeep.
 The sales man need to cover approx. 32 retail shops a day. Or 8-10 wholesale shops per day.
 Company use SWING (software package) for all of its Billing and online operations.
P&G’s Strategy
 Differentiation through Research and advertisement-Procter & Gamble competes through
differentiation, and spends heavily on research and development to create products that are
differentiated from that of competitors. P&G spends over twice as much on research and
development than its nearest competitor.
Company spends heavily on advertising to signal the value of its brands.P&G’s largest
competitors by 4 quarters revenue (in 2008) are Unilever ($60B), Kimberly Clark ($19B),
and Johnson & Johnson’s consumer segment ($16B). Only Unilever has the scale to come
close to what P&G can spend on advertising.
A high absolute value of research and development spending allows the development of
Products that actually do add value over the products of rivals, and high spending on
Advertising facilitates the signaling of this value. Some examples:
 Detergent optimized for cold water washing (saves energy costs)
 Detergent optimized for single rinse (where clothes are washed by hand)

 Compact detergents to reduce packaging waste
P&G’s relative level of innovation is apparent from the results of the 2008 industrial
research institute’s pace setter study that measures the top new products measured by
sales. In 2008, P&G had 10 out of 25 of the top new products in the non-food category. In
comparison, Unilever, J&J, Kimberly Clark, Colgate, L’Oreal, and Energizer collectively had 7.
 Very well placement of product-P&G place their products so well in the market that no
retailer can do business without keeping P&G’s products. For example- Wal-Mart
accounting almost 20% of sales. But Wal-Mart needs P&G about as much as P&G needs Wal-
Mart.
 Continuous cost cuts-P&G consistently cuts costs unrelated to differentiation, giving P&G a
cost advantage that acts as a barrier to entry. For example, continuous reformulation can
provide the same product performance with different ingredients, allowing the formulation
to be optimized for current commodity costs, and consequently saving on input costs.
 Evergreen products-P&G sells the types of productswhich are typically resistant to
diminishing demand during a recession.
Procter & Gamble realized it needed a “consumer-driven supply network” to stay ahead in
the consumer packaged goods industry.
Initiatives
Consumer Driven Supply Network (CDSN) - Initiative P&G started its supply chain from store
shelves and moved back to its suppliers. This operating strategy was called Consumer Driven
Supply Network. CDSN required P&G to create a responsive supply chain that would produce and
supply products as per demand at the customer level.
CDSN – Intelligent Daily Forecasting (IDF)IDF is one of the most important components of
CDSN.IDF is software used by P&G to forecast the demand based on actual sales. Following are the
Inputs and outputs that this software provides.
Input: ◦ Daily Order Information ◦ Daily Shipment Information ◦ Weekly shipment forecast
Output: ◦ Daily estimates for next 42 days ◦ Refreshed Daily
Collaborative Planning Forecasting and Replenishment (CPFR)
Overview- Procter & Gamble’s CPFR focus is to build on the current success of the Continuous
Replenishment Program (CRP). CRP has delivered greater than 99% service levels, and has reduced

customer distribution center inventories by as much as 50% in customers representing over 40%
of our U.S. and European businesses. P&G has deployed CPFR to enable creation and integration of
consumer demand data. This will trigger product flow from our manufacturing plants to our
customers’ DCs, from the customers’ DCs to their retail store shelves, and ultimately from the store
shelves into consumer homes.
ModelCPFR is a nine-step process model consisting of
1
•Developing collaboration agreement
2
•Creating joint business plan
3
•Creating sales forecast
4
•Identifying exceptions for sales forecast
5
•Resolving collaborating on exception items
6
•Creating order forecast
7
•Identifying exceptions for order forecast
8
•Resolving / collaborating on exception items
9
•Generating orders

Nestle
Nestlé is one of the world’s leading nutrition, health and wellness companies. Founded in 1866,
the company now employs over 280,000 people and has factories or operations in nearly every
country in the world.
It is one of the leading branded processed food companies in the country with a large market
share in products like instant coffee, weaning foods, instant foods, milk products, etc. It also has
a significant share in the chocolates and other semi-processed foods market. Nestlé's leading
brands include Cerelac, Nescafe, Maggie, Kit-Kat, Munch and Milkmaid. It has 511 factories in
86 countries and employs nearly 283,000 individuals around the world.
Nestlé has been a partner in India's growth for over nine decades now and has built a very
special relationship of trust and commitment with the people of India.
Strategy
The Company continuously focuses its efforts to better understand the changing lifestyles of
India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness
through its product offerings. The culture of innovation and renovation within the Company
and access to the Nestlé Group's proprietary technology/Brands expertise and the extensive
centralized Research and Development facilities gives it a distinct advantage in these efforts. It
helps the Company to create value that can be sustained over the long term by offering
consumers a wide variety of high quality, safe food products at affordable prices.
Top 5 towns Sales
Rank Town Sales
1 Shimla 80 L
2 Parwanoo 65 L
3 Kangra 60 L
4 Kullu 58 L
5 Rampur 50 L
Distributor
Margin
Re-distributor Margin
(Direct Dist. Keep 1.8%)
Retailer
Margin
Scheme Transportation
Maggie 5.80% 4% 9.00% NA
Approx. Rs.12-
15 Per Case
Nestle products list and major brands
Growth
Actual 18-19%
Expected 25%
Credit Period (For
Distributor)
3 Days

Category Products & Brands
% Share in
Revenue
1 Beverages
 NESCAFÉ Classic
 NESCAFÉ MY FIRST CUP
 NESCAFÉ Cappuccino
 NESCAFÉ Sunrise Premium
 NESCAFÉ Sunrise
 NESTEA ICED TEA
30%
2
Milk products and
Nutrition
 NESLTÉ JUNIOR DAHEEZ
 NESTLÉ MILKMAID Creations
 NESTLÉ a+ milk
 NESTLÉ ActiPlus Probiotic Dahi
 NESTLÉ Creamy Vanilla
 NESTLÉ EveryDay Dairy Whitener
 NESTLÉ EveryDay Ghee
 NESTLÉ BhunaJeeraRaita
 NESTLÉ Milkmaid
 NESTLÉ NESLAC
 NESTLÉ Real Fruit Yoghurts
 NESTLÉ Slim Dahi
 NESTLÉ Slim Milk
 Nestle Cerelac
 Nestle Lactogen
 Nestle NAN
43%
3
Chocolates &
Confectionery
 NESTLÉ DARK CHOCOLATE
 NESTLÉ DARK CHOCOLATE Dry Fruits
 NESTLÉ Fudges
 NESTLÉ SELECTIONS Fine Chocolates
 NESTLÉ SELECTIONS Panned Dry Fruits
 NESTLÉ KITKAT
 NESTLÉ BAR-ONE
 NESTLÉ MUNCH
 NESTLÉ MUNCH POP CHOC
 NESTLÉ Milk Chocolate
 NESTLÉ MILKYBAR
 NESTLÉ MILKYBAR CHOO
 NESTLÉ MILKYBAR Crispy Wafer
 Eclairs
 POLO HOLE NEW FASHION
 POLO
14%
4
Prepared Dishes &
Cooking Aids
 Maggie Noodles,
 Maggie Pazta,
 Maggie Sauce,
 Maggie Bhuna Masala,
 Maggie Coconut Milk Powder,
 Maggie Soups,
 Maggie Magic Cubes
14%

Organization Structure
Sales and Distribution Model
VP
GM
Branch Head (BH)
Regional Sales
Manager (RSM)
Area Sales Manager
(ASM)
Sales officer (SO)-
[Total 6 in HP]
Primary Sales
Executive (PS)
DS

Nestle does not have Super model in HP. Nestlé’s business is running through Direct
Distributors only. Nestle is having total 26 Direct Distributors in Himachal Pradesh.
Transportation Expenses
Nestle pay 12-15 Rs. /case to distribute goods from Direct Distributor to Sub-D
Cash Distributors- The entire business of Nestle is conducted through Cash Distributors known
as CD. The CD is the main party of contact between the company and the Retailer. There are
around 450 CDs under the Delhi Branch.
The role of a CD is:
 Accomplish the Company Business Plan
 Shares Leadership of the company
 Provides support in Distribution

 Maintain effective contact with the market
 Co-ordinate with the Sales Officer
There are 3 main groups of CDs:
a) Trade Parties- This CD handles all those products which come in retail packs and are meant
for the end consumer to buy directly from the retailers
b) Nestle Professional (NP) - This includes CD who looks after the Food Services (FS), Vending
& Alternate Trade Channels (ATC). FS includes all the Nescafe and Maggi Stalls that we see
in different Institutions. Vending products are those which are packed in bulk for the
various Vending machines that we see for ex. The Nescafe Vending Machines. ATC includes
packings meant for events, gatherings ex. Weddings. There are CDs specially established for
the sale of these packs or a CD can look after both Trade Products and NP products
c) Chilled Dairy-This includes CDs who handle only the milk products of Nestle. There are only
6 exclusive Chilled dairy CDs and that only so far in Delhi as the other areas face problems
of logistics.
Each CD has a Sales Officer (SO) who is an employee of Nestle. A SO is the link between a CD
and the company. A SO reports to an Area Sales manager (ASM) who looks after a particular
area. This area may be a city and a few towns in the same district. The ASM in turns reports
to the Regional Sales Manager. There are 6 RSMs.
Re-Distributor/ Sub-Distributor- Another important party is the Re-Distributor known as
RD. A RD is a distributor in small rural areas where it is not viable to set up a separate CD.
An RD looks after a smaller area mostly which are in the rural areas. A RD is set up under a
CD.
The Role of a RD is:
 Vital distribution link
 Sell in areas which cannot be reached by a CD
 shouldn’t be in the same town as a CD
Display Scheme

The Display claims in Nestle mostly come under “Nestle Corporate Visibility Program‟ (NCVP)
head. There are 3 main programs under NCVP described as below:
STAR PROGRAMME
Display
Long Term
NCVP
Star Programme
Platinum
Silver
Gold
Diamond
Magic Stick
Chocolate
Dominance
Gold
Silver
Short Term

The objective is to have dedicated space for Nestle Products within the shop, showcasing Nestle
Products & New from Nestle to the Shopper with the purpose of increasing Sales. The priority
channels targeted here are Large Grocers and Tier III Supermarkets. This program would
operate in areas where there are currently CDs undertaken Merchandise. The Payout for the
retail outlets would be on a Quarterly basis. The Star Program is classified into Platinum, Gold,
Diamond and Silver.
Summary Of The Star Programme
T 1.2–Summary
of the Star
Program Star
Programme
Monthly
Turnover in Rs.
Brands &
Products
Maximum Pay
Out in Rs.
Classification
Pay Out
(Quarterly)
Minimum Maximum
2.50% 5000 7449
*F&B(-C&C-NUT-
GHEE)
SILVER
2.75% 7500 14999
F&B-C&C-NUT-
GHEE
GOLD
3.00% 15000 79999
F&B-C&C-NUT-
GHEE
DIAMOND
3% 80000
F&B-C&C-NUT-
GHEE
9000 PLATINUM
*Food & Beverages excluding Chocolate & Confectionary, Nutrition and Ghee
MAGIC STICK PROGRAM
The objective is to have a dedicated space for nestle product specific SKU‟ s within the shop on
a hanger called Magic Stick for a clear visibility to the shopper with the sole purpose of
inducing trials & increasing sales. The priority channels for this program are Small Groceries.
The payout is fixed at Rs. 300 per quarter. The SO has to provide the Sales data for each outlet
monthly. A SO also has to make visits at outlets to see if the Displays are put correctly and are
clearly visible.
Summary of Magic Stick

Magic Stick
Minimum
Turnover
Brands &
Products
Pay Out Rs.
300/- per
Quarter
1500/-
*Only F&B (-
Ghee-NUT.)
*Food & Beverages excluding Ghee and Nutrition
CHOCOLATE DOMINANCE PROGRAM
The objective is to have a dedicated space for only Nestle Chocolates within the shop,
showcasing Nestle Chocolates & Confectionery to the Shopper with the purpose of increasing
Sales through Visibility Program. The priority channels here are Bakeries & Large Grocers. The
payout here would be made on a monthly basis. There are 2 classifications here are Gold and
Silver.
Summary Of Chocolate Dominance Programme
Chocolate
Dominance
Programme
Monthly Turnover in Rs.
Brands &
Products
Maximum Pay
Out in Rs.
Classification
Pay Out Minimum Maximum
4% 2000 4999 *C&C SILVER
5% 5000 C&C 2500 GOLD
*Chocolate & Confectionnary
Incentives & Allowences
Grade M L
Level Officer Executive
Daily Headquarter Allowance 125 125
Daily Travel Allowance(1) 110 110
Conveyance Allowance 800/month 800/month
Mobile Expenses 400/month 400/month
Laptop/Wireless/Data 1000/month 1000/month

Fax,CyberCafe,Photocopy,Postage 200/month 200/month
*The Executives who possess their personal Vehicle (4 wheeler) are entitled to Rs. 6/KM. In this case the person will not
be eligible for 110/-
Travelling Allowence in case of Night Halt
The employees travel to various locations. The towns and cities have been classified as Metros &
Mini Metros, Class A & B towns are divided on the basis of their cost of living index. The towns that
have been identified as per the classification mentioned above.
Branch
Metros & Mini
Metros
Class A Class B
Delhi
Chandigarh Amritsar Rest all towns
Delhi Dharmshala
Gurgaon Jaipur
Jammu
Joshimath
Kathmandu
Leh
Lucknow
Ludhiana
Manali
Nanital
Pokhra
Shimla
Delhi
Srinagar
Udaipur
Agra
Allahabad
Dehardun
Jaisalmer
Jalandhar
Kanpur
Kullu
Mussiore
Parwanoo
Rishikesh
Varanasi
Bathinda
Field Force Travel entitlement
L Grade-

Particulars Entitlement
Own arrangement with night halt Rs. 400 per night
Up country allowance ( with night halt only) Rs. 1000/- per day (Class A towns) this includes
Upcountry allowance- Rs.210/-, Hotel stay & others
(incl. morning tea, laundry, etc.) up to Rs. 790/-
Rs.750/- per day (class B towns) this includes
Upcountry allowance of Rs. 210/-, Hotel stay & others
(incl. morning tea, laundry, etc.) up to Rs. 540/-
Transit Bhatta Rs.175/- per night
Head quarter Allowance/Ex-head quarter
allowance without night halt
Rs.125/- per day
Conveyance allowance Rs.6/- per k.m. for employment with cars. Actuals for
auto/ Rickshaw/Bus & for others, capped at Rs. 110/-
per working day.
Travel Road:
 State transport/ Luxury buses must be availed
where it is convenient and time saving. (Bus
tickets above Rs.100 per travel needs to be
attached to the expense statement)
 Shared taxis allowed in consultation with ASM
(only pre-approved routes or where the above
mentioned mode is not applicable)
 Special taxi coverage is allowed only on need
basis duly approved by Branch manager.
 Train
 During day journey- 2nd Tier AC chair car/ 1st
class ordinary.
 During overnight journey- 1st class ordinary/AC
sleeper- 2nd tier/ AC sleeper-3rd Tier
 Air:
 Economy class air travel allowed only in defined
sectors as approved by Branch manager.
M Grade-
Particulars Entitlement
Up country allowance (with night halt only)  Rs. 650/- per day (class A towns) (Upcountry
allowance of Rs.150/- and hotel stay (incl. all
expenses) up to Rs. 500)
 Rs 600/- per day (class B towns) ( Upcountry
allowance of Rs. 150/- and hotel stay (Incl. all
expenses) up to Rs. 450)
Transit bhatta Rs 175 if the person reaches HQ town after Midnight
Head quarter allowance/Ex- Head quarter
allowance without night halt
Rs. 125/- per day
Conveyance allowance Actual Auto/ Rickshaw/ Bus for others, capped at Rs.
110/- per working day.
Travel Road:
 State transport / Luxury Buses must be availed it

is convenient and time saving. (Bus tickets above
Rs 100 per travel needs to be attached to the
expense statement.
 Shared Taxis allowed in consultation with ASM
(only pre- Approved routes or where the above
mentioned mode is not applicable)
 Special taxi coverage is allowed only on need
basis duly approved by Branch manager
Train:
 During day journey- 2nd tier AC chair Car/ 1st
class ordinary
 During overnight journey- 1st class ordinary/AC
sleeper – 2nd tier/ AC sleeper- 3rd tier
Air:
 Economy class air travel allowed only in defined
sectors as approved by Branch manager.
Sales Incentive Scheme-
 It is an performance based Scheme for sales personnel
 Performance evaluation is done on monthly/Quarterly an annual basis
 It is designed to drive in market execution
 It is structured with focus on
a) RIG achievement
b) Redistribution turnover
c) Bad goods
d) Trade spends
 The grade- incentive entitlement at 100% achievement level is as follows for „eligible
employees‟ :
L & M Grade : 30% or 18.08% of fixed salary (as per the role)
Performance Bonus Scheme-
Maximum bonus payout under this bonus scheme is up to 18.08% for employees in sales team
(Activation, Sales training, Channel, Key accounts etc.) and 12% of fixed salary for other employees.
HUL
Hindustan Unilever (HUL) is the largest pure-play FMCG Company in the country and has one of the
widest portfolio of products sold via a strong distribution channel. It owns and markets some of the

most popular brands in the country across various categories, including soaps, detergents,
shampoos, tea and face creams.
HUL products detail
Products List of HUL
Food brands: Homecare Brands Personal Care Brands:
 Annapurna salt and
atta
 Bru coffee
 Brooke Bond (3
Roses, Taj Mahal,
Taaza, Red Label)
tea
 Kissan
squashes,ketchups,
juices and jams
 Liptontea
 Knorr soups &
meal makers and
soupy noodles
 Kwality Wall's ice
cream
 Modern Bread,
ready to eat
chapattis and other
bakery items
 ActiveWheeldetergent
 CifCream Cleaner
 Comfort fabric softeners
 Domexdisinfectant/toilet
cleaner
 Rin detergents and bleach
 Sunlight detergent and
colour care
 Surf Exceldetergent and
gentle wash
 Vimdishwash
 Aviance Beauty Solutions
 Axe deodorant and
aftershaving lotion
 LEVER Ayush Therapy
ayurvedic health care and
personal care products
 Breeze beauty soap
 Clear anti-dandruff hair
products
 Clinic Plus shampoo and
oil
 Close Up toothpaste
 Dovebar & skin cleansing,
hair care range,lotions &
Creams and anti-
perspirant deodorants
 Denim shaving products
 Fair & Lovely - fairness
products
 Hamam
 Lakmé beauty products
and salons
 Lifebuoy soaps and
handwash range
 Liril2000 soap
 Lux soap
 Pears soap
 Pepsodent toothpaste
 Pond's talcs and creams
 Rexona soap
 Sunsilk shampoo
 Sure anti-perspirant
 Vaseline petroleum jelly,
skin care lotions

VP
GM
Senior Sales
Manager (SR)
Area Sales
Manager (ASM)
Territory Sales
Manager (TSM)
Team Leader (TL)
Sales Executive
(SE)

Distribution Model
Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and its
products are available in over 6.4 million outlets in the country. As per Nielsen market research
data, two out of three Indians use HUL products
HUL is not having Super model in Himachal Pradesh. They are covering the low population areas
through wholesalers (P&G is also doing same).
Strategy
HUL always believes in customer friendly products with major emphasis on low cost overall
without compromising on the quality of the product. They are leveraging the capabilities and scale
of the parent company and focusing on the value of execution. The entire product portfolio is also
being tweaked to include premium offerings such as Pond's Age Miracle and dove shampoo in skin
and hair care.
HUL
C&F Agent
Redistribution
Stockiest
Wholesaler
Retailer
Customer
Retailer
Customer

HUL is driving innovation, not only in their products, but across the value chain of their business.
For example HUL introduced Project Shakti to penetrate the rural market (covering 135000 plus
villages) is an innovative win-win distribution model, which helps HUL to reach consumers in
remote villages across the country while enhancing livelihoods of rural women.
Growth Drivers
HUL has been launching new products and brand extensions, with investments being made towards
brand-building and increasing its market share. HUL is also streamlining its various business
operations, in line with the ‘One Unilever' philosophy adopted by the Unilever group worldwide.
Introduction of premium products and addition of new consumers via market expansion will be
HUL's growth drivers.
Continuous Innovation-
1) Project Shakti- Changing Lives in Rural India
 Need-HUL realized that although it was enjoying a greater penetration in the rural market
when compared with its competitor such as Nirma and ITC, its direct reach was restricted to
only 16%. The FMCG giant was desperate to increase this share. HUL saw its dream
fulfillment in the vast Indian rural market.
As competition is increasing day by day, it’s difficult to maintain the leader position & to
further strengthen the distribution network HUL made a project called project SHAKTI.
 Structure-This group of usually 15 members contributed a small amount of money to a
common pool and then offered a micro-credit to a member of the group to invest in a
commonly approved economic activity.
 Social Side- The social side of the Project Shakti was that it was aimed to create income-
generating capabilities for underprivileged rural women (targets small villages with
population of less than 2000 people or less.), by providing a sustainable micro enterprise
opportunity, and to improve rural living standards through health and hygiene awareness
through the Shakti Vaniprogramme, and creating access to relevant information through the
iShakti community portal. Most SHG women viewed Project Shakti as a powerful business
proposition and are keen participants in it.
 Coverage- Partnering with these SHGs, HUL Started project Shakti in 2001. Shakti has already
been extended to about 135000 plus villages in 15 states.
 Training & Support- HUL offered a wide range of products to the SHGs, which were relevant
to rural customers. HUL invested significantly in resources that work with the women on the

field and provide them with on-the-job training and support. HUL provided the necessary
training to these groups on the basics of enterprise management, which the women need to
manage their enterprises. For the SHG women, this translated into a much-needed,
sustainable income contributing towards better living and prosperity. Armed with micro-
credit, women from SHGs become direct-to-home distributors in rural markets.
2) Sustainable Living Plan- Unilever launched Sustainable Living Plan in on November 15, 2010 at
London, Rotterdam, New York and New Delhi simultaneously.
The Unilever Sustainable Living Plan has three major goals, which Unilever aims to achieve by
2020:
 Help more than one billion people improve their health and well-being
 Halve the environmental impact of their products
 Source 100% of their agricultural raw materials sustainably
The plan also sets out over 50 social, economic and environmental targets.
Apart from this HUL launched many programs which are running successfully. Some of them
are-
3) India Water Body- an initiative aimed to address the challenge of water scarcity in India.
4) Plastic Recycling Project-to promote plastic recycling among consumers in the National Capital
Region (NCR) in 2011. Consumers were encouraged to bring empty plastic bottles and pouches,
for which they were given discount coupons in return.
5) Creating Financial Inclusion- joined forces with the State Bank of India (SBI) to introduce
banking services to people from low-income groups in rural areas. The project was piloted in the
states of Maharashtra and Karnataka.
HUL also renders services to the community, focusing on health &hygiene education,
empowerment of women, and water management. It is also involved in education and
rehabilitation of underprivileged children, care for the destitute and HIV-positive, and rural
development. HUL has also responded to national calamities, for instance with relief and
rehabilitation after the 2004 tsunami caused devastation in South India.
6) Shakti Entrepreneur- Recruits village women as sales persons called Shakti Amma and train
them to communicate and sell HUL products in villages. The idea is to be able to reach those
villages which do not have good road connectivity and where the penetration of media is poor.

7) Shaktimaan- Through the Shaktimaan initiative, men in the Shakti Amma families distribute HUL
products to villages adjoining the respective Shakti village. Through the GIS (Geographical
Information System), villages around the 'Shakti' families are tracked and based on this they are
allotted five to six villages. They go to these villages and sell HUL products. The Shaktimaan have
also been given bicycles to ensure smooth travelling between villages. HUL now has over 26,000
Shaktimaans (through the Project Shakti network) across the country now. The revenue earned
by the Shaktimaan further augments the household income of the 'Shakti' family. etc.
Marketing Initiatives
Some of the marketing initiatives include
1) Khushiyon Ki Doli-
Through this initiative more than 10 million consumers were contacted directly in more than
28,000 villages across three states UP, AP and Maharashtra. Through this initiative, the
company also reached out to 170,000 retailers in these villages and engaged with 25 million
rural consumers in media dark areas in 2011.
Various personal care and home care brands of HUL have participated in this initiative
including: Wheel, Surf Excel, FAL, Sunsilk, Vim, Lifebuoy and Close-up.
The module follows a three-step process-
I. Starting with awareness-The first step of spreading awareness is achieved through a
team of promoters who head to each village and invite the villages to what is known as
‘Mohallas’ to make them aware of the company and its products. In every village, there
are about 4-5 teams that conduct these events in local language for small focused
groups so that it allows for greater engagement and involvement for the consumers.
During this activity, brands are introduced with the help of TVCs that are played
continuously. And the promoters by way of ‘live’ demonstrations bring alive the hygiene
benefits of using such brands and improving the quality of daily life.
II. Moving on to consumer engagement -To increase the ‘fun’ element and enhance
involvement, promoters also conduct simple quizzes and games around the brands and
daily hygiene habits. As part of this activation, the company offers schemes both for the
participating consumers and also local retailers for generating trial among consumers
as well enhancing availability at retail. Post the ‘mohalla’ activity, the promoters go

home to home and conduct consumer home visits to generate trial where they offer
attractive promotions to the consumers.
III. Retail contact-Similarly, there is another team which visits all the shops in the village
which ensures improved availability and visibility of HUL brands. Technology has been
used to highlight the benefits of HUL’s brands in a simple and engaging manner. At the
same time, traditional symbols have also been used to create more acceptance. For
example, the brand films and hygiene messages are shown to the consumers through
the use of Palki.
2) Lessons In Marketing Excellence-
The company tied up with CNBC TV18 in 2009 to launch a television show titled, ‘Lessons in
Marketing Excellence’ a marketing case-study competition for management students in India.
3) Perfect Stores-
The ‘Perfect Stores’ initiative was launched by HUL in May 2010 with the aim to improve the
availability and visibility of its products in retail stores across the country. In May 2010, four
thousand HUL employees from across functions launched the initiative through ‘Project Bushfire’
and created 16,000 ‘Perfect Stores’ in 130 towns in India in a span of 6 days. The employees not
only laid out various products on the stores’ shelves but also dusted them, thereby transforming the
whole look of the stores. The company is constantly increasing the number of stores it covers under
the Perfect Stores programme. Technology has played a key role in this initiative. The company’s
salesmen have been provided with a hand held terminal called iQ, which gives customized
recommendations for each store – which products to sell, when to sell them and in what quantity.
The salesman just has to sync the iQ device when visiting the distributor and download data from
the center to retrieve information on the market. To strengthen this initiative, HUL launched
POPeye - an initiative that puts the power of iQ in the hands of the employees. When an HUL
employee visits an outlet and finds the company’s product out of stock, he can log stock calls either
by logging on to the POPeye site or report the information by phone or email.

Colgate Palmolive
Colgate Palmolive is a well-reputed company with a large series of its well-known products having
different varieties in terms of flavor. Colgate Palmolive is the world leader in oral care industry.
They cater the need of different segments by offering innovative products.
In the oral care product segment following Colgate Palmolive are the toothpaste available in Indian
market:
Products Detail
Sr. No. Brand
% Share in
Revenue
Total Sales
(HP)
1 Colgate Dental Cream
92%
70-80 Lakh
2 Colgate Total 12
3 Colgate Max Fresh
4 Colgate Kids Tooth Paste
5 Colgate Fresh Energy Gel
6 Colgate Herbal
7 Colgate Cibaca Family Protection
8 Colgate Active Salt
9 Colgate Maxwhite
10 Colgate Sensitive
8%
11 Colgate Sensitive-Pro-Relief
Others
92%
Colgate
Sensitive
Category
8%
% Share Of Colgate Sensitive Category
in Total Sales

Salary Structure of PSR (Primary Sales Rep) - Colgate
Salary Component Breakup
Basic 5500
HRA 0
Mob 0
PDR 1500
Gross 7000
PF @ 12% of basic (EE) 660
ESIC @ 1.75% of Gross 123
NTH 6217
PF @ 12% of Basic (ER) 660
EDLI & PF Admn@1.61% of Basic (ER) 89
ESIC @ 4.75% of Gross (ER) 333
Bonus 293
CTC with Bonus 8375
Contract for 1 year
VP (Sales)
Branch Manager
(BM)
RSM
Area Manager (AM)- [1
for Himachal &
Haryana]
Sales Officer (SO)
Primary Sales Rep.
(PSR)

Sales and Distribution
Colgate Distributors
Company Warehouse
(Morind)
Company Warehouse
(Parwanoo)
C&F Agent
Super Distributor
Re-Distributor (Indirect
Rural Stockiest)
Retailer
Consumer
Wholesaler
Retailer
Consumer
Direct Distributor
Retailer
Consumer

Total
No.
Distributor Type Place Distributor Coverage
2
Super Parwanoo Mukul Enterprises
Parwanoo, Rampur, Sungra,
Peo, Jubbal
Super Damtal Sourav Enterprises Chamba, Dalhousie, Damtal
6
Direct Baddi Jain Enterprises Nalagarh, Baddi
Direct UNA Auro Sales Corp. Kangra, UNA
Direct Shimla
Lotus Sales Corp.
Contact No.-9418140700
Shimla, Theog, Rohru
Direct Solan Geeta Sales Agency Solan, Sirmor
Direct Nalagarh
Direct Chintpurni BalakramBhagatram
60+ Sub-D Others Rest of the HP
Tooth paste Brush
Distributor
Margin
5.75% 5.75%
Retailer Margin 15.00% 40.00%
Consumer
Scheme
Original 40gm. MRP 45-
Rs. 7 off
org.80gm. 80-Rs.10 off
pro 80gm. 130-Rs. 31 off
Retailer Scheme
6+1pc.
Rs. 10 extra on
every Rs. 250 sale
Transportation NA
Credit Period Advance Payment
Place Colgate Sensitive Sales (case/month)
Original Pro Rapid Brush
40gm. 80gm. 40gm. 80gm. Pc.
Total
Himachal
80L - 1 Crore total
Mandi 2 case 2 case
15-20% of
total sale
6-8
case
NerChowk
3-4 case 1 case 6-7
case
Shimla 7 lakh Total 2 lakh

Analysis ofHimachal Population and Geography
Some important considerations from Population Census-2011
 Approx. 90% of Himachal population lives in villages.
 Shimla district has highest urban population- 24.77% and Solan is at 2nd No.-17.70%
 Shimla, Hamirpur, Chamba, Mandi and Bilaspur districts have highest literate population (in
that order)- more than 92%. Himachal’s overall literacy rate is 83%
 Kangra District has highest female population- 758,664 and also highest child population
between 0-6 years age - 160,865
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
Kangra Mandi Shimla Solan Sirmau
r
Una Chamb
a
Hamirp
ur
Kullu Bilaspu
r
Kinnau
r
Lahul &
Spiti
Population 1,507,2 999,518 813,384 576,670 530,164 521,057 518,844 454,293 437,474 382,056 84,298 31,528
Percentage Share 21.98% 14.58% 11.86% 8.41% 7.73% 7.60% 7.57% 6.63% 6.38% 5.57% 1.23% 0.46%
1,507,223
999,518
813,384
576,670 530,164 521,057 518,844
454,293 437,474 382,056
84,298 31,528
21.98% 14.58% 11.86% 8.41% 7.73% 7.60% 7.57% 6.63% 6.38% 5.57% 1.23% 0.46%
Population
District wise population HP - 2011 census
Rural Population
89.96%
Urban Population
10.04%
Himachal Population (2011 census)-
Total - 6,856,509
Rural - 6,167,805 (89.96%)
Urban - 688,704 (10.04%)

Map of Himachal Pradesh

Analysis of sales on “Per Capita” and “Per Outlet” basis
It becomes very necessary for this research project to find out the per capita income and the sales
per outlet for GSK products. The reason for this is that we need to find out the areas where the
potential for growth is very high, and the areas which could be turned into potential ones with a
little effort from the company.
The per capita sales is calculated by dividing Sales Revenue per month by the area’s population.
This shows the Average Revenue Per Consumer for GSK products.
The per outlet sales is calculated by dividing Sales Revenue per month by Total No. of outlets in that
area (who are selling GSK products). This shows the revenue generated per outlet.

Analysis of sales on “Per Capita” and “Per Outlet” basis
Relation among GSK- Distributors, Population and Sales
Sr.
No.
Place Distributor
Drug
License
Dist.
Type
Population
No. Of
Outlets
GSK
Sales/month
Per
Capita
Sales
Sales
Per
outlet
Himachal
Pradesh
56 6,850,000 2,000 ₹6,500,000 ₹1 ₹3,250
1
Mandi,
KulluBilaspur
(USR-Mr.
Aman-2) - 12
Towns
Sundar Nagar
1.Gupta Sales Corp. N Sub-D
25,000 50
₹40,000
₹2 ₹800
2.Durga Remedies Y Sub-D ₹20,000
2 Mandi Gourav Sales Corp. Y Sub-D 28,000 150 ₹200,000 ₹7 ₹1,333
3 NerChowk MahajanBidi N Sub-D 3,500 25 ₹30,000 ₹9 ₹1,200
4 Bhuntar Mahalaxmi General Store Y Sub-D 4,500 90 ₹80,000 ₹18 ₹889
5 Manali BM Enterprises N Sub-D 7,000 100 ₹30,000 ₹4 ₹300
6
Ghumarvin
1.Natraj General Store N Sub-D
6,000 40
₹35,000
₹6 ₹875
7 2. Shankar Medical Y Sub-D ₹100,000
8
Bilaspur
1.Abhi Medilinker Y Sub-D
37,000 25
₹30,000
₹1 ₹4,0009 2.Surya Medical Y Sub-D ₹30,000
10 3. Gupta Sales N Sub-D ₹40,000
11 Kullu Kailash Sales Y Sub-D 20,000 40 ₹150,000 ₹8 ₹3,750
12 SarkaGhat Laxmi Medical Y Sub-D 4,000 100 ₹100,000 ₹25 ₹1,000
13 Paprola Kailash Store N Sub-D 500 40 ₹60,000 ₹120 ₹1,500
14 Chontra Ajay Medical Y Sub-D 5,000 35 ₹150,000 ₹30 ₹4,286
15 Bali Chowki Himachal AushadhiBhandar Y Sub-D 1,500 20 ₹30,000 ₹20 ₹1,500
16
District-
Chamba,
Una,
Hamirpur,
Kangra
(USR- Mr.
Sanjeev-3) -
19 Towns
Palampur Amarbharat Store Y Sub-D 5,000 35 ₹100,000 ₹20 ₹2,857
17 Maranda Rishi Sales Corp. N Sub-D 4,000 25 ₹30,000 ₹8 ₹1,200
18 Nagrota Shriram Medical Y Sub-D 6,000 40 ₹200,000 ₹33 ₹5,000
19
Kangra
1.Malhotra Traders N Sub-D
10,000 43
₹100,000
₹10 ₹2,326
20 2.New Ratna Remedy Y Sub-D ₹25,000
21 Dharamshala Chadha General Store N Sub-D 15000 70 ₹200,000 ₹13 ₹2,857
22 Giroh Sachin Enterprises Sub-D 5000 25 ₹30,000 ₹6 ₹1,200
23
Jassur
1.Manoj Traders Y Sub-D
5000 25
₹60,000
₹12 ₹2,400
24 2.Kumar Pharma Y Sub-D ₹40,000
25 Damtal New Ratna Medical Y Super 10000 25 ₹100,000 ₹10 ₹4,000
26 Dalhousie KasturiLalMahajan N Sub-D 8,000 30 ₹70,000 ₹9 ₹2,333
27
Chamba
1.Climex Confessionary N Sub-D
15,000 30
₹60,000
₹4 ₹2,000
28 2.Sukhdayal Y Sub-D ₹30,000
29 Hamirpur 1.Gupta Medical Y Sub-D 18,000 35 ₹60,000 ₹3 ₹1,714

30 2.Hakimraj Hansraj Sub-D ₹25,000
31 Nadon Walia Medical Y Sub-D 5,000 25 ₹40,000 ₹8 ₹1,600
32 Bhota Laxmi Medical Y Sub-D 2,000 23 ₹250,000 ₹125 ₹10,870
33 Amb Harekrishna Medical Y Sub-D 5,000 25 ₹35,000 ₹7 ₹1,400
34 Gagret Simran Medical Y Sub-D 3,500 26 ₹35,000 ₹10 ₹1,346
35 Chintpurni BalakramBhagatram N Sub-D 5000 25 ₹30,000 ₹6 ₹1,200
36 Teras Rakesh Agencies Sub-D 3000 25 ₹30,000 ₹10 ₹1,200
37 Daliara Jai Bharti Medical Y Sub-D 5000 30 ₹35,000 ₹7 ₹1,167
38 Dharampur Rahul Medical Y Sub-D 4,000 25 ₹40,000 ₹10 ₹1,600
39
District- (Usr-
Mr. Sandeep
Sharma-1)-
16 Towns
Shimla Lotus Sales Corp. Y Direct 170,000
250 (150
local)
₹400,000 ₹2 ₹2,667
40 Baddi Kaushal Medical Store Y Sub-D 23,000 80 ₹175,000 ₹8 ₹2,188
41 Rampur Ram KishanJeeva Ram N Sub-D 6,000 30 ₹100,000 ₹17 ₹3,333
42 Narkanda Kedar Nain Pradeep Kumar N Sub-D 1,000 15 ₹15,000 ₹15 ₹1,000
43 Theog Bimla Agencies N Sub-D 4,000 20 ₹15,000 ₹4 ₹750
44 Karsog Premji Remedies Y Sub-D 5,000 20 ₹25,000 ₹5 ₹1,250
45 Rohru Krishna Trading Co. N Sub-D 7,000 25 ₹50,000 ₹7 ₹2,000
46 Solan Deffodil Associates Y Sub-D 35,000 90 ₹200,000 ₹6 ₹2,222
47
Dharampur
1.Medisales Y Sub-D
21,000 50 ₹120,000 ₹6 ₹2,400
48 2.Dhingra N Sub-D
49 Kunihar ChamanlalMalhotra N Sub-D 1,000 15 ₹15,000 ₹15 ₹1,000
50 Parwanoo Him Stores Y Super 9,000 25 ₹50,000 ₹6 ₹2,000
51 Nalagarh Jagdish Ram Sharma Y Sub-D 10,000 20 ₹225,000 ₹23 ₹11,250
52 Ponta Sahib Veer Singh Surjeet Singh Y Sub-D 20,000 35 ₹100,000 ₹5 ₹2,857
53 Nahan
Naval
KishorDharamParkash
Y Sub-D 27,000 35 ₹100,000 ₹4 ₹2,857
54 Mehetpur Puri Trading Co. N Sub-D 9,000 20 ₹35,000 ₹4 ₹1,750
55
Una
1.Yogsons Trading Co. Y Sub-D
16,000 60
₹125,000
₹8 ₹2,083
56
2. Himachal Medical
Agencies
Y Sub-D ₹50,000

Analysis of per capita sales in HP
To be more precise in analyzing the per capita sales and the potential for growth, the following
table shows the per capita sales arranged in ascending order.
Analysis of per capita sales = (Avg. sales per month/population)
Sr.
No. Place
Per Capita
Sales
Sr.
No. Place
Per Capita
Sales
Himachal Pradesh ₹1.00 24 Baddi ₹7.61
1 Bilaspur ₹0.81 25 Una ₹7.81
2 Sundar Nagar ₹1.60 26 Nadon ₹8.00
3 Shimla ₹2.35 27 NerChowk ₹8.57
4 Hamirpur ₹3.33 28 Dalhousie ₹8.75
5 Nahan ₹3.70 29 Kangra ₹10.00
6 Theog ₹3.75 30 Damtal ₹10.00
7 Mehetpur ₹3.89 31 Gagret ₹10.00
8 Chamba ₹4.00 32 Teras ₹10.00
9 Manali ₹4.29 33 Dharampur ₹10.00
10 Karsog ₹5.00 34 Jassur ₹12.00
11 Ponta Sahib ₹5.00 35 Dharamshala ₹13.33
12 Parwanoo ₹5.56 36 Narkanda ₹15.00
13 Solan ₹5.71 37 Kunihar ₹15.00
14 Dharampur ₹5.71 38 Rampur ₹16.67
15 Ghumarvin ₹5.83 39 Bhuntar ₹17.78
16 Giroh ₹6.00 40 Bali Chowki ₹20.00
17 Chintpurni ₹6.00 41 Palampur ₹20.00
18 Amb ₹7.00 42 Nalagarh ₹22.50
19 Daliara ₹7.00 43 SarkaGhat ₹25.00
20 Mandi ₹7.14 44 Chontra ₹30.00
21 Rohru ₹7.14 45 Nagrota ₹33.33
22 Kullu ₹7.50 46 Paprola ₹120.00
23 Maranda ₹7.50 47 Bhota ₹125.00
Observations-As it is clear from the above tablethat we have a share ofapprox. Rs. 1/month of
consumer’s pocket in Himachal Pradesh. This is also clear that per capita sale is very low at places
1-5. The places highlighted in green (Bilaspur, Sundar Nagar, Hamirpur, Manali, Ponta Saheb,
Parwanoo, Baddi and Damtal) have more potential of salesbecause these places have high
population and large No. of outlets.
Places highlighted in Red (Shimla, Chamba, Solan, Mandi and Dharamshala) are the places which
have extremely high potential. Because these places have
 High population – above 5000 (especially tourist population)
 Higher number of outlets

GlaxoSmithKline GSK CH - A report on Business Strategy and Growth Avenues in Himachal Pradesh

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GlaxoSmithKline GSK CH - A report on Business Strategy and Growth Avenues in Himachal Pradesh