The Rural India story - Horlicks Mission Health
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Founding Story
Vijay
I built my career over several years, as a sales and marketing professional in India’s largest FMCG company before deciding that I needed to change track – four years ago, I entered the unconventional, complex and unchartered terrain, where few people dare to go: building businesses in Rural India. And there’s been no looking back – working in Rural India gives one the unique thrill of setting up new businesses from scratch, while positively impacting life in the rural communities.
At GSK, I head the Rural business for the Consumer Healthcare division (makers of several nutritional products, including Horlicks.) We are a team of young passionate people who have been handpicked to set up this business. What drives us is the aim of winning the love and respect of the communities we serve.
* Passion for creating new businesses
* A strong desire to make a positive impact on society
* An ability to push for change
* Unconventional and creative thinking
* The ability to see the larger picture – to find holistic solutions and go beyond the brief.
* The ability to create a vision
* The persuasive communication skills to communicate that vision and excite others.
* A rather special quality – which we Indians refer to as ‘Jugaad’ – the ability to find creative, frugal innovative solutions and workarounds
* A strong sales and marketing background
* A wry sense of humor that keeps me and my team going when things go wrong, as they often do.
, HR, Gurgaon
, BR
The business is rolled out in eight states of India - West Bengal, Bihar, Jharkhand, Orissa, Tamil Nadu, Karnataka and A.P.
Consumer Products
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Growth (your pilot is up and running, and starting to expand)
The key factors are:
* The approach of building a business with the main focus on a larger goal: impacting the overall health of rural communities.
* Innovation in execution at various levels – an altogether new distribution model, and non-traditional modes of brand awareness such as using folk music, folklore and so on.
* The involvement of community members to propagate the messages themselves.
*A culture of experimentation, scaling up fast, learning from failures
Our products are now available in over 10,000 villages in the country. The Horlicks Mission Health has been rolled out to 4400 villages and by end of 2013, will reach out to 7000 villages.
Currently, over 350,000 kids and 110,000 mothers are spoken to every month as a part of our program. Over 5000 village registered medical practitioners are getting new educational material each month.
Over 95,000 new outlets are stocking and selling our products and there is business gain as well.
The above are more input parameters and we will now be putting out a detailed research on ground to understand the impact on the health indicators as we roll the model to more villages. This will give us a good sense of the final impact these programs are creating.
Over the next 3 years, we aim to reach out to over 35,000 villages and serve a population of 120 million people. The Horlicks Health Mission will touch over a million school children, 500,000 expecting mothers and 20,000 village doctors.
The positive impact of these programs will need to be ideally measured through recording baseline health indices in these villages over a stretch of time. The sheer number of people touched by our programs indicates that the impact will be huge in the medium and long term.
Apart from this, through a ‘’Village Level Enterpreneur’’ program, we intend to further enhance our access to products directly to homes by appointing underprivileged women who will go door-to-door with our products. These entrepreneurs will be the natural owners of Horlicks Mission.
The benefits that we’re creating for GSK are :
*Ensuring access to a large number of far flung villages through a sustainable distribution network, so that our products find new consumers.
*A very strong communication channel and platform to reach out to millions of rural consumers in otherwise media-dark markets.
*Creating programs that help brands win the hearts of consumers.
*Increased health awareness leading to improved consumption and penetration of our nutritional products.
* An example where business and societal impact are integrated.
While the Rural business is seen as a separate business model which is well funded and invested, it is extremely well entrenched in the overall business. The support from the organization is drawn through the following areas -
a. Sales support – The sales division supports by ensuring supplies to these markets – in fact, the Rural network is built on the existing distribution network.
b. Research & Development support through their know-how and work on innovations needed specifically for these rural markets.
c. Product support – through the creation of low-unit, affordable packs designed specifically for these markets to increase access.
d. GSK’s Pharmaceutical division knowhow is used for inputs to the Registered Medical Practioner Program
e. Senior leadership encouragement.
Unlike most start-ups – the Rural business of GSK has proved to be a profitable venture ( and then some!) in the first year of operation itself. The Health Awareness program is funded through the incremental revenues generated by the business. However, the scale of our ambition going forward will necessitate the need for funding, and we intend to pursue this through a partnership approach, specifically in the areas of Research ( to measure the impact on actual health parameters of the participating villages), and Health Infrastructure development ( in the platforms of schools and hospitals and health care providers)
Partnership at every level is proving to be the key to this business’s success.
At the grassroots level - in every village that we go to, we partner with local village level representatives – these are the key stake holders such as school principals, elected representatives of the village, doctors and so on.
Within the organization, a collaboration has been created between the Consumer Healthcare and Pharmaceutical divisions, to leverage each others strengths.
Apart from the funds, time, knowledge from various parts of GSK within India and globally – the most important support provided to us has been the Free Hand that we’ve got to run this business as an entrepreneurial, fast-paced, innovative business. The space to create has been provided by the organization, and this is a primary reason for the early success that we’ve seen, which has beaten our initial growth ambitions.