Brazil in the center of Glaxos plans for dermocosmetics
Valor Econômico 09/20/10
When the British group GlaxoSmithKline (GSK) acquired the German laboratory Stiefel in 2009, there was a very clear goal in the deal: to become a heavyweight player in the dermocosmetics market in the world. With R$ 79.5 billion (US$ 45.4 billion) in annual sales, Glaxo is one of the greatest manufacturers of medicines in the world, but its operation was little significant in the area of skin products. Nothing was known, however, on the participation of Stiefel do Brasil in the business plan created with the merger of the assets. Now, it is already decided the country will be the center of decisions of Stiefel in Latin America.The strategic issues concerning the segment of dermocosmetics in the region must be taken by the front line of Stiefel in the country. That because Brazil has become the only operation of Stiefel (with plants in 20 countries) to have a team with such autonomy. "We follow a path other than that of the rest of the world as a result of the size of the operation we have here. We must keep the agility in the making of decisions", says Márcia Sena, Marketing Officer of the area of prescription products of Stiefel. With 120 items for sale in the country and a plant in Guarulhos (SP), Stiefel sold R$ 220 million (US$ 111.7 million) in 2009, with growth of 19% compared to 2008. The market of fragrances and cosmetics grew 14.7% in the period. This year, the increase in the earnings should reach 20% and the amount of items sold should grow between 10% and 15%.
Second largest branch of the group in the world, the Brazilian subsidiary is only behind the USA in annual sales. According to the annual report, Brazil was responsible for 14% of the total of 600 million Pounds earned by Stiefel in 2009 in world (R$ 1.6 billion). To prevent bottlenecks in the production, there are investment plans of R$ 20 million (US$ 11.4 million) in plant of Guarulhos for the acquisition of machinery and equipment. "We currently work in two shifts and, for some products, in only one. We can grow more without difficulties", says Marco de Marchi, Marketing Officer of Stiefel's Division of Consumption.
The executive tells he was hired by Stiefel two years ago because of a new project of the group. The company realized it could increase the sale in the retail of products that do not require a prescription, such as lotions, cleaning creams and sunscreens of the brand. Today, nearly 70% of the sales of the company come from prescription products.
To attract the attention of the consumers, the company started making investments in advertising campaigns for the cream brands Clariderm and Spectraban. It also closed partnerships with the large drugstores to sell their line in the noblest spaces of the stores. In less than two years it increased from 28% to 30% the amount of the earnings invested in marketing actions, sales and development of products. "We will keep such level of investment for years to come", says Marchi.