New Delhil: FMCG major GlaxoSmithkline Consumer Healthcare is stepping up its supply chain management and in-store execution seeking to enhance its modern retail trade, targeting the segment to contribute 10% of its annual sales by 2010.
“Our modern retail initiative contributes about 4.5% of our overall sales. By 2010, we expect sales through modern trade to contribute around 10% to our turnover,” GlaxoSmithKline Consumer Healthcare (GSKCH), General Manager, Modern Trade and CSD, Aditya Kapoor said.
The company expects modern trade sales to account for about 6.7% in 2009.
GSKCH had reported an annual sales of Rs1,600 crore last fiscal and in the quarter ended September, its net sales stood at Rs456.95 crore.
The FMCG firm, which has hired internationally renowned Glendinning Management Consultants to advice on its modern trade arena, recently conducted a customer preference study as part of its strategy to strengthen sales in the organised retail channel.
“The exhaustive Voice of Customer survey through Glendinning that helped us understand our customers, in this case modern format retailers, better. We, therefore, are focused on building our customer centric capabilities such as supply chain management, in-store execution, category expertise and joint business planning amongst others,” Kapoor said.
At present, GSKCH care products are available in around 30 retail chains across the country. Some of its key partners include Big Bazaar, Metro, Subhiksha, Reliance and Shoprite.
After successfully positioning its newly launched Women’s Horlicks in the modern trade chain, it is taking up similar initiatives for other products as well.