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Glaxo India kicks off plan to revamp marketing structure 

Anju Ghangurde  
Mumbai, Dec 2: Glaxo India has kicked off plans to revamp its pharmaceuticalsales and marketing function, a move that will see the devolvement of thecompany's three trading faces into seven business units. The existingtrading faces -- Glaxo Pharmaceuticals, Glaxo Allenburys and BurroughsWellcome will be reshaped into seven distinct units christened "TheMagnificent 7".

This is possibly the second major realignment within the marketing functionof Glaxo India. The British multinational had, in 1998, put in place anarrangement where Glaxo India would promote and market all BurroughsWellcome products and charge the latter "the actual costs associated withrendering this service".

The new marketing structure will be in place by January 1, 2000. VVS Kashyapwill take charge as executive vice-president, pharmaceutical sales andmarketing, of all the seven business units. Each unit will have its ownsales and marketing staff.

The new structure will also see the recruitment of around 400 additionalmedical representatives, so that each of the seven teams "is adequatelybacked". Currently, Glaxo has a field force of around 1,350.

A Glaxo release said that the changes "envisaged is a move away from atrading face centered approach to a therapy area focussed approach. Thetherapy areas on which the seven business units will be anchored are:gastroenterology, dermatology, respiratory, paediatrics and neurology,gynaecology and surgery, intensive care, cardiovascular and diabetes.

The company release also said its large portfolio of over 200 product packs"will be trimmed, rationalised and reallocated among the business units".Indications are that products that "do not fit in" will be sold and thefunds generated will be pumped back in the restructuring effort.

The brands which, according to analysts, could face the axe includeDermaZovate, Anovate, Macraberin, Otina eye drops, Escorlin eye drops andinjectables, Vibelan Forte and Derobin and a mandate is believed to havebeen given to Citibank. These brands have a combined turnover of Rs 28crore.

The new structure will enable Glaxo India to address the critical successfactors in the increasingly competitive market place.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.

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