Horlicks - Glaxosmith Current Status

HORLICKS/GLAXOSMITH CURRENT STATUS

Glaxo to invest Rs 300 cr on 'Horlicks' relaunch

Press Trust of India / New Delhi September 13, 2010, 18:24 IST

GlaxoSmithKline Consumer Healthcare today said it is looking at investing over Rs 300 crore on a major brand building exercise to position 'Horlicks' as an umbrella brand of the company.

As part of the exercise, the FMCG firm is relaunching 'Horlicks' in a new look and promote the brand across media particularly focused on digital and mobile marketing space.

Besides, the company, which is aiming to achieve a sales of Rs 300 crore within the next two years from its foods business, is looking at foraying into other categories like breakfast and mid-meals.

"There is a fundamental shift towards synergising all our marketing activities on 'Horlicks' and bring under one platform. The idea is to position it as a range of health foods and beverage brand rather than just a health drinks brand," GSK Consumers Healthcare Executive Vice President (Marketing) Subhajit Sen told reporter here.

Under Horlicks, the company currently sells various health drinks like Lite Horlicks, Women's Horlicks, Junior Horlicks apart from biscuits and cereal bars. It has also recently entered into the noodles market through 'Foodles'.

"We will be spending around Rs one crore every day on various advertising and promotional activities. This is an increased adspend by around 15-20 per cent over last year," Sen said.

The company had last time relaunched Horlicks in 2005 and since then achieved a volume sales of 12 per cent. Sen said the company hopes to maintain similar growth rate of 12-14 per cent on the back of the relaunch.

"We will be engaging in a lot of above the line and below the line activities. We will go for sponsorships deals as a single brand rather than in a segmented way that we have been doing," Sen said.

Besides, the company said it is also planning to expand the product portfolio of the estimated Rs 1700-crore Horlicks brand, particularly into the foods segment.

"Foods segment is a major focused area for us. At present around 10-15 per cent comes from food division. In the next 18-24 months, we expect a sales of Rs 300 crore from our food business," he said.

At present, GSKCH sells biscuits, noodles and cereal bars under the food category and accounts up to Rs 200 crore to the company's overall sales.

"We are focusing on expanding the brand into non-lunch and non-dinner like for breakfast, lunch box for kids, travelers and other mid-meals. We are evaluating every category," he said.

While he did not specify the time frame that the company is looking at launching the products, he said some of the new products will be introduced this year.

HR Practices at GSK

Here are a few of the ways GSK works with its employees to help them achieve their fullpotential, although not all of these initiatives are available in every country in which GSKoperates.

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The GSK Experience

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Career development starts on the first day. This includes career and personaldevelopment planning and "The GSK Experience", an interactive, global inductionprogramme they provide in the UK and US.

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Performance and Development Planning

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Their global Performance and Development Planning process (PDP) is there to helpemployees at all stages of their career. PDP is a powerful tool for matching personalsuccess to the success of the business. Throughout the year, both the employees andtheir manager will work together on this process to set you challenging objectivesand identify career development needs.

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Career Innovation Zone

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Career Innovation Zone is an online resource that employees can access freely at anytime from work or home. It offers a wealth of interactive tools and tips to help themwork out the potential career directions and choices that would be right for them.

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MyLearning

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Employees will also have access to myLearning, its online course catalogue.myLearning allows employees to work with their manager to create a customisedlearning plan and to take advantage of the wide variety of instructor-led andeLearning courses, including a number of customised Leadership Developmentofferings.

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Coaching and feedback

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GSK foster a culture of ongoing coaching and feedback for all employees. A variety of formal and informal resources are available to help employees, including a 360-degree feedback process and external coaching. Employees will also be encouragedto take part in either a formal or informal mentoring relationship.

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On-the-job development