Go to market for an OTC product

1. General Definition .
“It is a 'path' or 'pipeline' through which
goods flow in one direction (from
supplier to the consumer), and the
payments generated by them flow in the
opposite direction (from consumer to the
supplier).” Wikipedia

2. Introduction
Vitamins and minerals are considered essential nutrients—because acting
in concert, they perform hundreds of roles in the body. They help shore up
bones, heal wounds, and bolster your immune system. They also convert
food into energy, and repair cellular damage.
•Vitamin & Minerals together : 36 %: of Nutraceutical industry.,
•Growing in double digit.
•OTC market in India is 4000 cr. Growing -12-14%

3. Brands in the Market
Revital, is Sun Pharma flagship OTC brand and is the No. 1 Vitamin &
Mineral Supplement Brand.
Other brands ,
Himalaya’s Liv-52
and Pfizer’s Becosule.
Supractiv (Piramal),
Nutralite (Amway),
Nutrigo (Dabur),
Well AM- PM,Well multivitamin (Modicare) and
GNC (Guardian Life care Pvt. Ltd).
However, in the specific Vitamins + Minerals + Ginseng segment, the
competing brands are Actival – Z – (Taj Pharmaceuticals), Seven Seas
Multispectrum (Merck), etc.

4. STRENGTH: WEAKNESS:
Tier 1 cities –People awareness Only an urban market phenomenon
Govt also promoting cleanliness and hygiene and good health Awareness is less in 2 tier cities
Existing dietary supplement will help
competitive and hence limited scope to increase
market share
Neulife stores in 22 cities will help promote the brand
Pharmaceutical channel only, Grocery stores
reluctance
Good distribution, promotions, and campaigns for luring
customers
OPPORTUNITY: THREATS:
Expand in more varieties to make presence felt Competition fromstrong existing companies
Eventually tie up with Doctors and health advisors Customer retention difficult
Contact local Gyminstructor

5. Distribution Model
Pharma wholesaler

6. CHANNELS OF DISTRIBUTION
 Direct store delivery- like Big Bazaar, Spencer’s, Hyper city. ,E com
 DSD- Neulife stores
 DSD-Focussed outlets –Gym equipment's and protein supplement stores
 Through Distributor- Chemist outlets and Pharma wholesaler

7.  Population-1.5 Cr
 Approx outlet no all put together.-35000.
 Total targeted retailers (chemist+LFR+Focus
outlets)- 9000.
 Total market value- 10% *4Kcr=400 cr

8.  Population-1.5 Cr
 Approx outlets no.-9000
 Frequency of Visit in a month.
 2000 weekly, 5000 fortnightly,2000 monthly
 Scheduled calls :-2000*4=8000
,5000*2=10000 . Monthly -2000*1 =2000Total calls=20000
 1 dsm-20 calls*25 days=500
 Total distributor salesmen=20000/500=40.
 Key A/C (MT, Focus, Neulife stores) -100
 2 key a/c- executive. On payroll .
DSD(direct store delivery)

9.  10 distributor
Area Distributor
Byculla-Colaba-Nariman point 1
Dadar-Kurla 1
Mulund-gkp-mankhurd 1
Mahim-Bandra-Andheri 1
Jogeshwari-Dahisar 1
Thane-e+w 1
Meera road-vasai-Palghar 1
Dombiwali-Badlapur-karjat 1
Airoli-Belapur 1
Kharghar-Panvel 1
10
No. of retailers 9000 Total no. of distributor
sales men to cover the
arket-40

11. Rural
Urban
people
Kids
Low Income group
Middle to high
income group
Working
professionals
Females
Fitness
oriented,
Do not prefer

12.  Working corporate professional
 Middle and high income group
 Kids 12 yr+
 Young urban females.
 Gym goers and joggers.

13. “We offer fitness ,stress-free and healthy life to
the people from all the walks of life

14.  Incentive plan, quota per Sales Representative
 Distribution plan: initial stocking and terms
 CFA /warehouse Appointment
 Distributors Appointment.
 Meeting with LFRS and agreement .
 All the partners and sales people aligned .
 Salespeople should be in company uniform.
 Video models for use at launch role plays.
 use social channels for more meaningful engagement. See who is talking
about your offering online and then make contact with them. See how these
folks can help you further promote your offering within their social circles.

15. Product features and application
Handling retailer objections and competition.
Ensuring that first trials are successful
Group presentations
How to put the new product into the store
Route Action Plan
Presentations to store keeper(selling story)
Sampling allocation and plan
POP, utilization, etc.
All merchandising kits with sales team
Follow sell in norms.

16. Weekly review with the Team and Feedback on the plan.
Discussion- based on placement.
Placement norm
Category-channel Sell in
Replnis
hment
Outlet
s
60% /40%
placemen
t
Total
sales
LFR 20 10 40 24 480
Nutrition Store -Focus
stores 20 10 40 24 480
pharma wholesale 20 10 20 12 240
Chemist 6 3 9000 3600 21600
3660 22800
Note:-Sell in norms can be adjusted depending on pricing and packaging
of the brand and competition
40% for retail
chemist

17. -Our brand should be neatly
arranged.
-Flow should be right-left –high
price to low.
-They should be placed in the
category.
Need to be placed with brand
leaders like Revital etc.

18. Free sampling-small packs
Shopper contract forms to be filled in

19.  Analyze effectiveness of tactics and
effectiveness of message
 Analyze competitive response
 Handling store keeper queries
 Handling store keeper resistance
 Post launch bulletin
 Producing the Audio Cassette Training
Program, Post Launch Feedback
 Revising plans.

20.  Celebrating successes
 Selling tips
 New ideas to reinforce messages
 Interviewing happy users of new product
 How to respond to Rep’s questions