SUBMISSION DETAILS

SUBMITTED TO

Mr. Koushik Prashad Pathak

Lecturer

Department of Marketing

Jagannath University, Dhaka.

SUBMITTED BY

Tanvir Wahid Lashker

Ingenious Group

BBA

Department of Marketing

1st Batch, Session: 2006-07

Jagannath University, Dhaka.

Submission Date: 10 OCTOBER, 2011.

BBA

DEPARTMENT OF MARKETING

JAGANNATH UNIVERSITY

LETTER OF TRANSMITTAL

Date: 1O OCTOBER, 2011.

Mr. Koushik Prashad Pathak

Lecturer

Department of Marketing

Jagannath University,

Dhaka, Bangladesh.

Subject: Submission of the project paper on Supply chain system of Reckitt Benckiser.

Dear Sir,

Please enclose our project paper on “Supply Chain Management of Reckitt”. The project was

assigned to us as requirement for the completion of our Supply chain Management course.

The course that we are having with you is a wonderful learning experience for us that have

enabled us to know various aspects of Supply Chain Management processes and systems. This

report attempts to make our Supply Chain related knowledge and skills to be more effective for

future career path.

This course and the group project have helped us a lot to understand and experience the necessity

and effectiveness of Supply Chain Management course in modern business. Therefore, we

thank you a lot for assisting us to complete our group project successfully.

We shall remain available for further certification of any part of this report.

Yours truly,

Tanvir Wahid Lashker

Case: Supply chain difficulties of

Reckitt Benckiser in Bangladesh

Reckitt Benckiser, a European public Ltd. Company

enlisted in London Stock Exchange, now is the

world’s largest producer of household product and a

major producer of consumer health and personal

product. A company from Britain, Reckitt & Sons

and a Dutch company Colman & Benckiser become

merged and formed Reckitt Benckiser in 1938. It

becomes the market leader in production and

distribution of twelve products worldwide with

around 8453 million dollar revenue turnover and

with 27200 employees worldwide. Later RB expands

their market and extended into many third world

countries like India, Pakistan and Bangladesh.

In Bangladesh, RB is doing its business around 49

years with 250 crore taka annual turnovers. Even in

Bangladesh seven products achieves the position of

market leader and are still continued. This seven

leading products are Dettol Soap, Harpic, Mortein

Coil, Mortein Aerosol, Lysol, Veet and Robin Liquid

Blue. Though RB does not produce these entire

products locally in Bangladesh, they have strong

supply chain and distribution system to meet the

demand efficiently.

RB follows a concept of not maximizing their

infrastructural wealth in the host country. So they are

highly depended on third party association. From

collection of raw materials to transportation system,

RB depends on third party association. Even

sometimes, they produce some of the well known

product as Dettol Soap with the help of Third party.

In Bangladesh, RB, has a collaborative relationship

with the third parties. At present, when RB has

become highly dependent on the third party, the risk

of using third party increases as well as RB

outsources several functions of supply chain, they

loss control over the process. Though they have a

buy back contract but the implementation of this

contract has no value in practice because RB has

to place an order before buying and for the

scarcity of raw materials. As a result, RB cannot

ensure the quality as they promise. They have lost

the contract and communication with the source

suppliers and this gap makes obstacles to go for

collecting raw materials directly for their own. So,

they have lost all internal capability of

procurement.

As RB has an alliance with the Mamun

Transportation Agency and do not have any

transportation system for its own, sometimes the

schedule do not matches with the RB’s demand of

vehicles and the availability of vehicles of the

agency. It also creates a big problem But it is very

rare that any customer goes to buy a product and

do not get the RB product. They reserves safety

inventory, so that they can meet the customer

demand avoiding all unwanted situation. RB

reserves the inventory in a cycle to face the crisis

situation.

One remarkable advantage that RB have by using

third party association is, they can collect the raw

materials and produce product at a minimum cost,

which could be higher if they goes attempt to do it

for their own. So, the profit becomes maximized

because of using of third party association.

SL. NO. CONTENTS PAGE. NO.

1.1. Abstract 1

1.2. Introduction 1-2

1.3. Objectives of the Study 2

1.4. Research Methodology 2

2.1. Company Overview 3

2.2. Company History 4

2.3. FMCG Industry 5

3.1. Sourcing 6

3.2. Transportation 7

3.3. Purchasing Strategy 8

3.4. Value Creation of Supply Chain

9

4.1. Supply Chain Management 10-11

5.1. Evolution

11-12

5.2. Product Line

12

5.3. Major Customers

12

5.4. Representing Brands

13

5.5. Industry Position

14

5.6. Conclusion 14

The aim of the project is to assess the Reckitt Benckiser’s supply chain issues, identifies the

strategies related with the sourcing and purchasing, uncover issues of FMCG (Fast Moving

Consuming Goods), supply chain management process and determine how to strategically align

supply chain practices with business objectives. This paper provides a clear idea how a top

ranked multinational company such as Reckitt Benckiser operating their business in the

least developed countries like Bangladesh. The Purpose of the project is to know the

strategies followed by RB to capture their market, compete with their competitors, relation

build up system with the customer and supplier, transportation system, value creation

stages in the supply chain and other internal and external factors. Mainly, this paper

reviews the whole scenario of supply chain management practices of Reckitt Benckiser that

shows a complete picture how a FMCG (Fast Moving Consuming Goods) companies become

successful by utilizing the effective supply chain strategies.

In this new era of globalization, effective supply chain strategy has become a very a burning

question to all. Because no manufacturing firm is able to produce all the products and services

that they need because the production cost and other issues (raw materials, labor efficiency, and

low cost operations) are involved in the whole

supply chain system. So during the last decades

firms emphasized in the outsourcing

(making/collecting finished product from third

parties with rational prices).So outsourcing got a

better positioning on the companies’ supply chain

management. On the other hand fast moving

consumer goods manufacturer has been facing

many new problems regarding their supply on the basis of customers’ needs and demands. Not

only that sometimes they have to change their supply chain strategy on time due to cope up with

the competitors. In this regard we tried to identify the whole supply chain management of Reckitt

Benckiser (one of the worldwide leaders in fast moving consumer goods) according to the

context of Bangladesh. Here we noticed that they collect their raw materials of soap only from

Malaysia and Indonesia through the M.N international ltd and Haque enterprise on buy back

conditions. We also found in our study that Reckitt Benckiser is always relaying on the

outsourcing rather than direct manufacturing. Here they do work as a Re-seller of products that is

provided to them from the Indian, Malaysian, Pakistani, and French Reckitt Benckiser without

any buyback conditions. They make the push strategies directly to the customers’ through

advertising and then send the products to their agents, but agents are liable to sell all the products

to the end users within a specific time period. Not only that, at the time of sending products to

the agent Reckitt Benckiser uses another third party of transportation named Mamun

International. So in the every stage of supply chain of Reckitt Benckiser, the presence of third

party alliance is very much noticeable. By the effective relationship with all the stages of the

supply chain Reckitt Benckiser is creating value in their supply chain management and moving

with average business growth of 15% yearly. In this case we are trying to present all of these

issues very sequentially.

We mainly conduct the study in order to achieve some specific objectives. Here we have

mentioned some major objectives that we approach by studying the total supply chain of Reckitt

Benckiser.

1. Determine the major supply chain issues.

2. Determine the sourcing strategies.

3. Analyzing the transportation system.

4. Scanning the purchasing strategy.

5. Scrutinizing the relationship status.

6. Studying the value creation stages in the supply chain.

7. Learning the supply chain.

We have followed qualitative research method in order to conduct our research. Qualitative

research methods include depth interviews, focus group, metaphor analysis, collage research and

projective techniques. It was not possible for us to conduct all of the method of qualitative

research. We have conducted depth interview with some senior officer who are related with

supply chain management of Reckitt Benckiser. We have also approached on some focus groups

that have regularly used the company’s product. In order to conduct the research we have

collected both primary and secondary data.

1. Primary data: We have approached to collecting primary data from Reckitt Benckiser

by taking interview with the Management Trainee Officer (Mr. Hossain Mohammad

Sarram), Territory Sales Manager, Territory Sales Officer (Mr. Hasan AL Mamud).

2. Secondary data: In case of collecting secondary data we have examined various supply

chain related articles, textbooks, websites and other sources.

Company Name : Reckitt Benckiser

Full Name (Bangladesh) : Reckitt Benckiser Bangladesh Ltd.

Industry : Consumer goods (FMCG)

Founded : 1814 (1938 by merger of Reckitt & Sons

and J&J Colman 1999 by merger of Reckitt

& Colman and Benckiser)

Founded in Bangladesh :1962.

Headquarter : Slough, United Kingdom.

Head office in Bangladesh : Gulshan 1, Dhaka, Bangladesh

Products types : Cleaning products, healthcare, condiments

Power brands of the world : 19

Products : Vanish, Calgon, Woolite Lysol, Dettol,

Durex, Scholl, Cillit Bang, Harpic, Finish,

Air Wick, Mortein, Strepsils, Mucinex,

Nurofen, Gaviscon, Veet, Clearasil, French's

Power brands in Bangladesh: 7

Products in Bangladesh : Dettol Soap, Harpic, Mortein, Coil,

Mortein Aerosol, Lysol, Veet and Robin

Liquid Blue.

Chief Executive Officer : Rakesh Kapoor

Operation : over 60 countries

Products sold : Over 180 countries.

Revenue : £8,453 million (2010)

Operating income : £2,130 million (2010)

Net income : £1,570 million (2010)

Employees: 27,200 (2010)

The history of Reckitt Benckiser is very interesting. A company

from Britain, Reckitt & Sons and a Dutch company Colman &

Benckiser become merged and formed Reckitt Benckiser.

Colman's was founded in 1814 when Jeremiah Colman began

milling flour and mustard in Norwich, England. Reckitt & Sons

started in 1840 when Isaac Reckitt rented a starch mill in Hull,

England. He diversified into other household products and in

due course passed on his business to his four sons. Reckitt & Sons was first listed on the London

Stock Exchange in 1888. In 1938 Reckitt & Sons merged with J&J Colman to become Reckitt &

Colman Ltd. The company made several acquisitions, including the Airwick and Carpet Fresh

brands (1985), the Boyle-Midway division of American Home Products (1990), and the Lehn &

Fink division of Sterling Drug (1994). Reckitt & Colman sold the Colman's food business in

1995 but still has some food brands.

Johann A. Benckiser founded a business in Germany in 1823. Its main products were industrial

chemicals. Benckiser went public in 1997.

The company was formed by a merger between Britain's Reckitt & Colman and the Dutch

company Benckiser NV in December 1999. Bart Becht became CEO of this new company and

has been credited for its transformation, focusing on core brands and improving efficiency in the

supply chain . The new management team's strategy of "innovation marketing"– a combination

of increased marketing spend and product innovation, focusing on consumer needs – has been

linked to the company's ongoing success.

The company has held Platinum status in the Business in the Community CR Index, since 2005

and in 2009 entered the Dow Jones Sustainability World Index and the Carbon Disclosure

Leadership Index. In January 2008, the company acquired Adams Respiratory Therapeutics, Inc.,

a pharmaceutical company, for $2.3bn: one of the major brands acquired with this purchase was

Mucinex. RB was ranked 6th in the 2008 European Business Week 50, the magazine's annual

ranking of the best performing companies within the S&P European 350. In July 2010, the

company agreed to buy SSL International, the makers of Durex condoms and Scholl's footcare

products in a £2.5bn deal. On 27th August 2011, Reckitt Benckiser recalled all remaining stock

of its major analgesic product, Nurofen Plus, after packs were found to contain an antipsychotic

drug. Sabotage is suspected. In April 2011, Bart Becht announced he was to retire as CEO of

Reckitt Benckiser, to be replaced by executive vice president of Category Development Rakesh

Kapoor from September 2011. Rakesh Kapoor has worked for Reckitt Benckiser for 25 years in

India, the UK and northern Europe. An MBA from XLRI, Jamshedpur, Rakesh Kapoor played a

key role in helping the group acquire Boots Healthcare International, SSL International Plc and

India’s Paras Pharmaceuticals.

J A Benckiser circa 1823 (left), Isaac Reckitt circa 1860s (right)

The elaboration of FMCG is the Fast Moving Consumer Goods. Also known as the Consumer

Packaged Goods or CPG Industry, this multi-million dollar sector is made up of a huge range of

famous brand names – the kind that we use every single day. These fast moving consumer goods

are the essential items we purchase when we go shopping and use in our everyday lives. They're

the household items you pick up when you're buying groceries or visit your local chemist or

pharmacy. FMCG goods are referred to as 'fast moving', quite simply, because they're the

quickest items to leave the supermarket shelves. They also tend to be the high volume, low cost

items.

Cleaning and laundry products, over the counter medicines, personal care items and food stuffs

make up a large bulk of the goods in the FMCG arena, but it doesn't end there. Paper products,

pharmaceuticals, consumer electronics, plastic goods, printing and stationery, alcoholic drinks,

tobacco and cigarettes can all be considered fast moving consumer goods too.

The top FMCG companies are characterized by their ability to produce the items that are in

highest demand by consumers and, at the same time, develop loyalty and trust towards their

brands. Once people start referring to a product specifically by its brand name (for example,

Dettol instead of disinfectant) they're definitely doing something right.

Some of the leading FMCG companies in the world include:

Reckitt Benckiser: Famous brands - Dettol/Lysol, Air Wick, Veet; Vanish; Finish; French's

Mustard; Durex

Unilever: Famous brands - Dove bodycare; Axe, Flora dairy products; Domestos, Cif, PG Tips

tea

Colgate-Palmolive: Famous brands - Colgate toothpaste; Palmolive soap and cleaning products;

AJAX cleaning products.

Coca-Cola: Famous brands - Coca-Cola; Diet Coke; Fanta; Sprite

Johnson & Johnson: Famous brands - Johnson's Baby; NEUTROGENA, ACUVUE, Listerine

oral care;

Nestlé: Famous brands - Nestel Pure Life, Nescafe; Nesquik; Kit Kat, Purina

Procter & Gamble: Famous brands - Ariel, Gillette; Pampers; Olay; Duracell, Pantene

A growing trend in Reckitt Benckiser’s business today is sourcing. Generally, this sourcing

involves allowing another company to handle elements of a company's production and/or service

process. Most companies simply view sourcing as a way to save money. This sourcing strategy

includes

Supplier scoring and assessment,

Supplier selection,

Design collaboration,

Procurement,

Sourcing planning & analysis.

First, Reckitt Benckiser looks at the technology differences between their current suppliers and

the lower cost alternative. Obviously, not all suppliers are functioning at the same level. If any

one of the suppliers (M M International or Haque Enterprise) is able to provide the raw materials

in a lower price to the R.B. then will get the opportunity to supply that raw materials.

Besides this issue, Reckitt Benckiser also keeps

in mind other possible changes that could save

their money. Many companies mistakenly turn to

sourcing as their only means of lowering

production costs, but it is most effective as part

of a comprehensive expense reduction process.

Reckitt Benckiser needs to carefully review all

areas of production-related spending if they are

to receive the maximum benefits possible from

sourcing

After that, Reckitt Benckiser creates a supply

chain management strategy that will govern the

methods of securing a supply of the goods and

services needed to continue a steady production

after sourcing has been set in action.

Finally, Reckitt Benckiser sends their finished goods to their Dhaka and Chittagong’s

warehouses through the Mamun International transportation. After making a cycle inventory they

again sends their products to their divisional agents. Agents are liable to sell all the products to

the end users through retailer.

MAP: RB WAREHOUSES IN BANGLADESH

Like other FMCG companies Reckitt

Benckiser doesn’t have any self owned

transportation system in Bangladesh.

Reckitt Benckiser always does the

shipping through the third party in

Bangladesh. Reckitt Benckiser propels

their finished goods to all over the

countries from the Dhaka and

Chittagong’s warehouses through the

Mamun International transportation.

Dhaka warehouse covers the whole

west region while the Chittagong

warehouse covers the east portion of

Bangladesh to deliver their FMCG (Fast

Moving Consuming Goods) to the

ultimate customers.

The following diagram shows how Reckitt Benckiser carries raw materials, packaging materials

and finished goods to the factory and warehouses.

Purchasing is now considered as one of the most significant task of the supply chain

management. Now purchasing has emerged as a key source of competitive advantage. In the

quest for effectiveness and efficiency various type of purchase strategy are adopted, used and

developed by companies. Many multinational and local companies are succeeded by only

adopting effective purchase strategy.

There are many types of purchase strategy exist. According to the Senja Svahn and Mika

Westerland purchase characteristics are-

Strategies Followed by RB

These are the major frequently used purchasing strategy used by companies. If we analysis the

RB purchasing history and habit we can find out the strategy adopt by this company. RB supply

chain managers give maximum emphasis on the cost. Their primary target is minimize the cost

but with ensuring the quality as well.

Price Minimizing Strategy: RB collects their raw materials from the suppliers who offer

them the lowest price with the standard product among many competing suppliers. As

from this perspective we can say that RB’s adopted strategy is price minimizing strategy.

Bargainer Strategy: Moreover, there are some more characteristics we found about RB.

Sometimes RB use third party for collecting raw materials. MN international, Kazi

International and Haque International are frequently used for this type of sourcing. They

have a good relationship with them over a period of time but they use buy back condition

in their contract. They have no collaboration in Research and development with their

supplier or any other third parties.

No organization is an expert in everything that’s why integration and collaboration is essential

for delivering value. Though companies adopt various type of strategies for efficiency and

effective management, at the end of the day it only the necessity of the time and the market

condition (Demand and Supply). Some company emphasize on the transaction but during the

time of transaction and after doing this type transaction several time the relationship grew

stronger whether they want it or not.

Reckitt Benckiser’s value chain is a physical representation of the various processes that are

involved in producing goods, starting with raw materials and ending with the delivered product.

It is based on the notion of value-added at the link level. The sum total of link-level value-added

yields total value. Coordination and collaboration; Investment in information technology;

Changes in organizational processes; Committed leadership; Flexible jobs and adaptable, capable

employees; A supportive organizational culture and attitudes are the components of value chain

of Reckitt Benckiser. The value chain categorizes the generic value adding activities of an

organization. The "primary activities" include: inbound logistics, operations, outbound logistics,

marketing and sales, and services. The "support activities" include: administrative infrastructure

management, human resource management, technology, and procurement. The costs and value

drivers are identified for each value activity. Capturing the value generated along the chain is

taken by many management strategists. Reckitt Benckiser might require its parts suppliers to be

located nearby its assembly plant to minimize the cost of transportation. By exploiting the

upstream and downstream information flowing along the value chain, the firms may try to

bypass the intermediaries creating new business models, or in other ways create improvements in

its value system.

RB has followed the below supply chain into three parts of activities. This are-

Procurement

Manufacturing

Distribution

The graphical representation of the supply chain of RB will make it easier to understand and to

get the total picture.

Procurement

In the Procurement process, RB collects thee raw materials, packaging materials and finished

goods. RB collects their raw materials and finished goods. RB collects their raw materials from

Indonesia, Malaysia, India and from Bangladesh too. RB produce only the Dettol Soap, Harpic,

Mortein Coil and Dispirin and the packaging materials of these product are also been collected

from Bangladesh. Whatever the raw materials or packaging materials they procure, they procure

it through third party association. The most Three frequently and heavily used third party that are

associated with RB are MN International, Haque and Quazi International. RB also imports some

of the well known product in Bangladesh. They import Mortein Aerosol from Indonesia and

Malaysia. They import Veet from Pakistan, India and France and Lysol from India. These

importing are also included in there procurement process known as procurement of finished

goods.

Raw

Materials

Packaging

Materials

Finished

Goods

Factory

Dhaka

Factory

Chittagon

g

Warehouse

Dhaka

Warehouse

Chittagong

BD West

BD East

Distributor

Distributor

Distributor

Distributor

Distributor

Distributor

Customer

Customer

Customer

Customer

Customer

Customer

Diagram: Supply Chain of Reckitt Benckiser

Manufacturing

RB has two manufacturing plant in Bangladesh. One of them is in Dhaka and the other is in

Chittagong. In the factory of Dhaka RB produces Dettol Soap and Dispirin and in Chittagong

they produce Harpic and Mortein Coil. Sometimes RB produces Dettol Soap with Third party

association. In that case, they provide the raw and packaging materials, logistical support,

technology and the quality controlling measures. The third party provides the land labor and the

machineries. Except Bangladesh, RB also have production plan in India, Pakistan, France,

Indonesia and Malaysia.

Distribution

Like the production plant, RB has two depots in Dhaka and Chittagong. Both of these depot store

products that comes from the manufacturing plant of Dhaka and Chittagong and imported

finished goods that comes from abroad. For making the distribution more easy and efficient, RB

has divided the whole Bangladesh in two regional areas-

BD West

BD East

The warehouse of Dhaka serves and distributes the product in the west region of Bangladesh

from Dhaka to Dinajpur, Rajshahi and Panchagar. And the depot of Chittagong distributes the

product in the east region of Bangladesh from Sylhet to Chittagong including Comilla.

Transportation System

Another significant part of RB’s distribution is their transportation system. For shipping they

depend on the transportation agency. RB has an association with the Mamun Transportation

Agency a renowned shipping agency throughout Bangladesh. They fix the transportation fair

quarterly for different route and trip and payment must be ensured according to their agreement.

RB has a fixed allotment of vehicles for regular use. But in the urgent case if they require more

delivery, they have to inform it to the agency at least seven days ago.

Reckitt Benckiser is a public limited company. It traded as LSE: RB. It works generally for

producing consumer goods. It was founded in 1938 by merger of Reckitt & Sons and J&J

Colman. It was again merged by of Reckitt & Colman and Benckiser in 1999. Its Headquarter is

in Slough, United Kingdom. The CEO of Reckitt Benckiser is Rakesh Kapoor and the CFO is

Colin Day. The main products of them are Cleaning products, healthcare, condiments etc.

Reckitt Benckiser follows a concept of not maximizing their infrastructural wealth in the host

country. So they are highly depended on third party involvement. From collection of raw

materials to transportation system, Reckitt Benckiser depends on third party association. Even

sometimes, they produce some of the well known product as Dettol Soap with the help of Third

party. In Bangladesh, Reckitt Benckiser has a collaborative relationship with the third parties. At

present, when Reckitt Benckiser has become highly dependent on the third party, the risk of

using third party increases as well as Reckitt Benckiser outsources several functions of supply

chain, they loss control over the process. Though they have a buy back contract but the

implementation of this contract has no value in practice because Reckitt Benckiser has to place

an order before buying and for the scarcity of raw materials. As a result, Reckitt Benckiser

cannot ensure the quality they promise. They have lost the contract and communication with the

source suppliers and this gap makes obstacles to go for collecting raw materials directly for their

own. So, they have lost all internal capability of procurement. As Reckitt Benckiser has an

alliance with the Mamun Transportation Agency and do not have any transportation system for

its own, sometimes the schedule do not matches with the Reckitt Benckiser’s demand of vehicles

and the availability of vehicles of the agency. It also creates a big problem But it is very rare that

any customer goes to buy a product and do not get the Reckitt Benckiser product. They reserves

security inventory, so that they can meet the customer demand avoiding all unwanted situation.

Reckitt Benckiser reserves the inventory in a cycle to face the crisis situation. One significant

advantage that Reckitt Benckiser have by using third party association is, they can collect the

raw materials and produce product at a minimum cost, which could be higher if they goes

attempt to do it for their own. So, the profit becomes maximized because of using of third party

association.

The Company divides its brands into six categories: surface care, fabric care, and dishwashing,

home care, health and personal care, and food. The company's strategy is to have a highly

focused portfolio concentrating on its 19 most profitable brands, which were responsible for 62%

of net revenues in 2008. 35% of net revenues come from products launched in the past three

years. In Bangladesh they have some focused product. They marketed Dettol Soap, Dettol

Antiseptic liquid, Dettol Hand Wash, Strepsils, Desprin ,Veet, (Health and Personal Care)Harpic

Toilet Cleaner, Lyzol, (Surface Care) Vanish(Fabric Care) Mortein Coil and Mortein

Aerosol,(Home care) and Perk(Food).

Reckitt Benckiser has Marketed only household products in Bangladesh. They mainly targeted

the people who used to live in cities, districts and suburban areas. They do not have any self-

owned transportation system and not targeted the rural area. If anyone wants to buy their

products then they have to come to local town. In some rural areas Reckitt Benckiser’s products

are available but the number is not very significant.

Reckitt Benckiser refurbishes its corporate identity to reposition its brand as 'the power behind

the Power brands in 1999. This saw the launch of a new logo to replace the logo which had been

introduced at the time of the Reckitt/Colman merger in 1999. The new logo is a pink kite mark

containing the letters 'RB'. The logo is often used with the company's full name Reckitt

Benckiser in grey alongside the kite mark logo, using a typeface designed especially for the

company. The new logo, created by branding agency The Workroom, was inspired by a sports

kite and is intended to reflect the 'loud, confident personalities of its Power brands'. The identity

has been introduced on packaging, and is used on internal and external communications.

Reckitt Benckiser has 19 "Powerbrands" following the acquisition of SSL International.

Vanish

Calgon

Woolite

Lysol

Dettol

Durex

Scholl

Cillit Bang

Harpic

Finish

Air Wick

Mortein

Strepsils

Mucinex

Nurofen

Gaviscon

Veet

Clearasil

French's

Powerbrands in Bangladesh

Reckitt Beckiser presently served seven from their nineteen powerbrands in Bangladesh. RB

marketed the following powerbrands in Bangladesh.

There are several Multinational and local company competes with each other for hold their

market share and market growth in the fast moving consumer goods industry. But each company

in most cases has some competitive advantage. Renowned Fast moving companies operates in

Bangladesh are British American Tobacco, Reckitt Benckiser Ltd, Nestle, Marico Ltd, Square

Consumers and Toiletries Ltd, Pran Group, Akij Group, Abdul Monem Ltd etc.

Among all these company British American Tobacco is the market leader in tobacco sector.

Nestle has some superior product and brand image in the market (Maggi, Polo). Square

Consumers Ltd has great brand image both in consumer’s goods and health care sector (Ruchi

Chanachur, Square Pharmaceuticals Ltd.) Pran Group, Akij Group and Abdul Monem Ltd are

challengers for these companies in some sector.

The Company benefits from many very strong market positions for its brand portfolio. Excluding

Laundry Detergent and Fabric Softener, the Company is the world market leader in household

cleaning products and has leading positions in selected health & personal care categories. These

positions derive from the strength of the Company’s leading brands, which are the flagship

brands in the Company’s six major categories and on which the Company focuses the majority

of its efforts and investment. The Company also has other brands and market positions that are

less of a strategic focus, but which play a role as scale builders in local markets. We already

know that RB focused and marketed very few products in Bangladesh. But these products are

currently holds the major market share. For example Dettol Soap and Mortein coil has great

brand equity in the market. Again Veet is the most widely known and used Hair removing brand

in Bangladesh. Perk is one of the most popular chocolate brands as well. For the toilet cleaner

everybody prefers Harpic. Desprine and Strepsils are commonly used by the general people for

headache and cold. Superior product quality and consistent performance of the products of the

RB Ltd limited create a positive image in the customers mind and it reflects in the current market

position of their product. But there is a lacking of branding in Bangladesh. Because we know the

Veet or Dettol or Mortein rather then the parent brand Reckitt Benckiser. They should focus on

to recognize their parent brand also.

As global markets grow increasingly efficient, competition no longer takes place between

individual businesses, but between entire value chains. Collaboration through intelligent e-

Business networks will provide the competitive edge that enables all the participants in a value

chain to prevail and grow. Collaboration requires Individual participants to adopt simplified,

standardized s solutions based on common architectures and data models. Time to market is

critical and participants will have to forego the luxuries of customization and modification that

characterized the proprietary infrastructures of the past. In the last few years, the one thing most

businesses were not worried about was having a scarcity of quality suppliers. For the past few

years, the reverse was actually true. The supply of vendors was greater than the demand for their

services and, as a result, buyers found the perfect time to begin using high-tech tools to assist in

their purchasing decisions. One of the most popular of these tools was the E-Auction, which

allowed suppliers to view an RFP via the Internet and place bids on fulfilling the project. The

buyer then compares the bids and chooses the supplier he or she feels is the best fit for the

company's needs. Now, however, manufacturing is again in an upswing and companies are

beginning to fear that suppliers are going to soon be in short supply, which could leave many

businesses without the goods they need to keep producing their products. In our study we tried to

find out many of these issues of supply chain strategy of Reckitt Benckiser.