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Go-to-Market strategy to win in the Out-of-home consumption space

The Indian retail environment looks promising for most of the FMCG companies. The FMCG sector has been consistently growing in last five years and is expected to grow at a compound annual growth rate (CAGR) of 15% to 20% in the next five years. The bright outlook of Indian retail sector is largely due the fact that organized retail that currently accounts for less than 5 per cent of the total retail market is expected to register a CAGR of 40 per cent. It is expected to increase from 5 % of the total market in 2008 to 14% -18% of the total retail market.

Source: McKinsey & Company 'The Great Indian Bazaar: Organized Retail Comes of Age in India

The Indian consumer looks at the future with positive outlook and sees promise in the way opportunities are shaping up. The table below compares responses to the question How well things are going financially in your country these days? in India and Globally.

% of respondents who replied Very Well / Fairly Well to the above question

Source: Global Monitor 2011

Basis the above positive economic indices, FMCG companies are not only focusing on general trade, Modern retail and CSD channels but have also diversified into new channels to generate incremental business opportunities. This would include their foray into rural markets & alternate channels or out of home business services or emerging channels.

GLADIATOR: Company Profile Gladiator is a leader in multiple categories across channels in the country and has been one of the fastest growing Fast Moving Consumer Healthcare (FMCH) /FMCG Companies in India over years. The growth rate has surpassed the 20% mark over last 3 years & the momentum is expected to continue in the next 5 years well in line with its vision. Gladiator has been dominant in its current categories of Health Foods Drinks, Analgesic Tablets, Rubs, Oral sensitivity & Antacid. It is clearly no. 1 or no. 2 in all these categories. Its recently entered into the Oral Healthcare space and has gained tremendous market share. Its winning formula for success has been strong science based product proposition backed up by consumer research. Expert recommendation, penetration, consumption, visibility & activation plans have been strong pillars of growth. One of the major drivers of growth for Gladiator has been its famed entry into alternate channels space in 2010. The growth of this channel has been consistent & is currently clocking 100% growth year on year since its inception & contributing substantially to the overall growth of India business. Alternate channels is being defined as all businesses excluding general trade, modern retail, Army sales & Rural which helps drive trials & awareness of Gladiator brands in the on-the-go out of home consumption space .
Corporate Comfortable Workplaces Investment behind snacks and beverages

Quick Service Restaurants would flourish as more n more people spend more time out of home

Gladiators alternate channel has its presence across cities & touches lives of 2Mn consumers in BPOs, IT companies, Factories & Educational institutions. One of the biggest USP of the channel is focused captive audience where potential shoppers can interact with the brands and thus visibility/activation and knowledge is a critical input for this channel to drive awareness, trials and repeats for any brand. Currently out of home consumption space in the office space & quick service restaurants is being dominated by dispensing hot beverages of tea & coffee. The current business is largely skewed towards 3-4 dominant players in the category. Their combined market share would be +80%. However as more & more employees are looking for healthier & nourishing options in the menu, there has been significant change in the number of offerings being served in various office space & in the quick service restaurants. Following data substantiates growing importance of out of home consumption space. The data suggests that rising urbanization means consumers have to travel farther and longer to work adding to the pressure of managing time. Therefore out of home consumption points will drive growth.

Source: City Mayors Statistics, 2011 Rising

Target for Gladiator:


Gladiator aspires to be a strong player in out of home consumption space & dominate the hot beverages segment by leveraging its strong equity in the nutritional health drink category.

Following would be our focussed target groups to win in the out of home consumption space: 1. Office Space catering: Picture of success would be Gladiators products brand availability. 2. Quick Service Restaurants: Picture of success would be addition or use of Gladiators nutritional health drinks products in the creation of nutritional beverages option for the shopper.

Office Space catering

Cafeterias or dining halls in BPOs, IT companies Tea & Coffee points in offices

Quick Service Restaurants

QSR chains like Coffee day express , Fresh N honest, Nirulas, KFC, Pizza Hut, Subways

Task at hand: 1. Understand in detail the current winning formula of dominant players who together control +80% share of beverages business in the office space channel 2. Get deep shopper insights in the Office space & QSRs to understand the Key Drivers for Purchase 3. Develop a strong Below-the-line sales plan for OOH channel i.e. visibility, activation and shopper engagement 4. Recommend a strong GTM / Sales strategy basis the above understanding

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