RECKITT BENCKISER – A LEADING COMPETITOR IN INDIA (FMCG INDUSTRY)

SUBMITTED TO:SUBMITTED TO: SUBMITTED BY:SUBMITTED BY:

Pankaj Upadhyay Samir Sharma

Siddhant chandel

Pankaj Sharma

Vibhanshu Upadhyay

Navneet Soni

JIMS KALKAJI

CONTENTS

FMCG Industry in India Introduction of RB Products of RB Famous product of RB New products of RB for the year 2013 Market share of RB Market coverage in all over the world SWOT analysis of RB Competitors of RB in India Marketing strategies of RB Operations in different countries CSR of RB in India Future of RB in India Conclusion

Suggested by Mr Pankaj Upadhaya

History of Dettol Porter’s Model BCG Matrix 5 Case study 4 p’s

FMCG INDUSTRY IN INDIA

The fast-moving consumer goods (FMCG) sector in India is the fourth largest sector in the economy. It also called the consumer packaged goods sector. The FMCG sector in India has market size in excess of US$ 13.1 billion as of the year 2012. The FMCG sector in India had a growth rate of 15% in the year 2011.

FMCG sector in India

The fast-moving consumer goods (FMCG) sector in India is the fourth largest sector in the economy. It also called the consumer packaged goods sector. The FMCG sector in India has market size in excess of US$ 13.1 billion as of the year 2012. The FMCG sector in India had a growth rate of 15% in the year 2011.

FMCG companies in India

The following is a list of FMCG companies in India:

Hindustan Unilever Ltd. Colgate-Palmolive (India) Ltd. ITC Limited SABMiller, India Britannia Industries Ltd. Marico Industries Ltd. Nestlé India Godrej Group Tata Global Beverages Parle Agro Nirma Bovonto Cavin Kare Grove limited Wipro GCMMF (AMUL) Reckitt Benckiser Cadburys India Procter & Gamble Hygiene and Health Care Gillette India Ltd. Godfrey Phillips Henkel Spic Johnson & Johnson Himalaya Herbal Healthcare Modi Revlon Amul India Godrej Consumer Products Ltd. Wital See Group Jahana Electricals and Galaxy Graphics

FMCG covers the sector overview in India, sector size, competitive landscape, enviromental scanning and recent developments in the industry. It also covers the key economic indicators for India, trends in home care segment, trends in personal care segment and trends in food and beverage segment, plus the profile, comparative matrix and SWOT analysis of the industry leading players: Hindustan Unilever Limited (HUL), Godrej Consumer Products Limited (GCPL), Dabur India Limited (DIL) and Colgate-Palmolive India Limited (CPIL).

The Indian economy experienced an economic slowdown with high inflation in fiscal year 2012. However, India’s FMCG Industry was resilient in face of slowdown with growth in both sales and profitability. The ever increasing middle class backed by rising per capita income is driving the growth of the FMCG sector in the country. Moreover the wide distribution network built by erstwhile major players ensures the high penetration of the FMCG products in rural India as well, which is home to more than 65% of Indian population. Hence, FMCG is one of the sectors in the country which has successfully mitigated the rural-urban divide.

In the second half of 2012, consumer confidence remained strong in the Indian market. India was ranked first along with Indonesia in a consumer confidence index published by Nielsen. However, inflation was hovering around the 10% mark which prevented the Reserve Bank of India from initiating any cuts in benchmark interest rate. The performance of leading players in FMCG sector was above par in the second half with almost all of them experiencing double digit growths. Their stock prices also saw a significant appreciation during the course of the year.

The outlook for Indian FMCG is positive because of growing sales, strong financials of leading players and ever increasing urbanization. Reforms announced in second half of the year like opening of retail sector to foreign companies will add further to the growth of the sector

Indian FMCG Sector -Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged goods. Items in this category include all consumables (other than groceries/pulses) people buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and extends to certain electronic goods. These items are meant for daily of frequent consumption and have a high return. 

CONCLUSION

Analysis of FMCG Sector 

Strengths

1. Low operational costs2. Presence of established distribution networks in both urban and rural areas3. Presence of well-known brands in FMCG sector

Weaknesses

1. Lower scope of investing in technology and achieving economies of scale,          especially in small sectors2. Low exports levels3. Counterfeit Products. These products narrow the scope of FMCG products in rural      and semi-urban market. 

Opportunities

1. Untapped rural market2. Rising income levels i.e. increase in purchasing power of consumers3. Large domestic market- a population of over one billion.4. Export potential5. High consumer goods spending 

Threats

1. Removal of import restrictions resulting in replacing of domestic brands2. Slowdown in rural demand3.Tax and regulatory structure

INTRODCUTION OF RECKITT BENCKISER

Reckitt Benckiser plc is a British multinational consumer goods company headquartered in Slough, United Kingdom. It is a major producer of health, hygiene and home products. It was formed in 1999 by the merger of the UK-based Reckitt & Colman plc and the Netherlands-based Benckiser NV.

Reckitt Benckiser's brands include Dettol (the world's largest-selling antiseptic), Strepsils (the world's largest-selling sore throat medicine), Veet (the world's largest-selling depilatory brand), Air Wick (the world's second-largest-selling air freshener), Calgon, Clearasil, Cillit Bang, Durex, Lysol, and Vanish.It has operations in around 60 countries and its products are sold in almost 200 countries. it is the global No 1 or No 2 in the majority of its categories.

Reckitt Benckiser is in the top 25 of companies listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. It had a market capitalization of approximately £31.6 billion as of 13 February 2013.

Origins

Reckitt & Colman

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.

Benckiser

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 plc and the Dutch company Benckiser NV in December 1999. Bart Becht became CEO of the 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. For example, in 2008, the company's "rapid succession of well publicised new product variants" were credited for helping them "to capture shoppers' imagination".Business Week has also noted that "40% of Reckitt Benckiser's $10.5 billion in 2007 revenues came from products launched within the previous three years."

In October 2005, Reckitt Benckiser agreed to purchase the over-the-counter drugs manufacturing business of Boots Group, Boots Healthcare International, for £1.9 billion. The three main brands acquired were Nurofen's analgesics, Strepsils  sore throat lozenges, and Clearasil anti-acne treatments.In January 2008, Reckitt Benckiser acquired Adams Respiratory Therapeutics, Inc., a pharmaceutical company, for $2.3 billion; one of the major brands acquired

was Mucinex. In July 2010, Reckitt Benckiser agreed to buy SSL International, the makers of Durex condoms andScholl's  footcare products, in a £2.5 billion deal.

On 27 August 2011, Reckitt Benckiser recalled all remaining stock of its major analgesic product, Nurofen Plus, after packs were found to contain an antipsychotic drug. It turned out that this was the work of a codeine addict who had been stealing the pills and replacing them with his anti psychotic medication.

In April 2011, Bart Becht announced he was to retire as CEO of Reckitt Benckiser and would be replaced from September 2011 by executive vice president of Category Development, Rakesh Kapoor, who had played a key role in recent acquisitions.

In November 2012, Reckitt Benckiser agreed to acquire Schiff Nutrition, a United States-based manufacturer of vitamins and nutritional supplements, for US$1.4 billion (£877 million)

Operations

Reckitt Benckiser is headquartered in Slough, United Kingdom, and has operations in around 60 countries. Its products are sold in nearly 200 countries.

The company runs a number of graduate programmes, in most of its markets, with over 200 graduates joining the schemes worldwide. Once hired, graduates tend to work for a couple of years as a trainee in the country in which they were originally employed, followed by a posting overseas for those who have excelled during initial training. Graduate trainees start off in one of the firm's business areas—marketing and sales, supply chain, research and development, and information systems.

Vision and values

As part of its continued strategy for outperformance, Reckitt Benckiser announced its new vision and purpose in 2012. Its vision is "a world where people are healthier and live better", while its purpose is "to make a difference by giving people innovative solutions for healthier lives and happier homes".

The company has also defined core values which form the foundation of how it works. They are: Achievement; Entrepreneurship; Partnership; Ownership.

PRODUCTS OF RB

PRODUCTS

Reckitt Benckiser organizes the majority of its products into three main categories – health, hygiene and home – with other brands belonging to three further categories: food, pharmaceuticals and portfolio brands. The company's strategy is to have a highly focused portfolio concentrating on its 19 most profitable brands, which are responsible for 70% of net revenues.

Reckitt Benckiser currently produces the following products:

"POWERBRANDS"

Vanish

Calgon

Woolite

Lysol

Dettol

Durex

Scholl

Cillit Bang

Harpic

Finish (previously Electrasol in North America)

Air Wick

Mortein

Strepsils

Mucinex

Nurofen

Gaviscon

Veet

Clearasil

French's

Other

Aerogard

Amphyl

Bonjela

Brasso

Brio

Bryza

Calgonit

Cattlemen's

Ceraclen

Cherry Blossom

Clean and Smooth

Cling

Cling Free

Cobra Brilliant Shiner

Colon

d-Con

Coral

dip-it

Disprin

Dosia

Easy-Off

Easy On

Elena

Frank's Red Hot

French's Foods

Glass Plus Perk

Glassex

Hoffmann's

Intima Liasan / Intima Bidex

Kalia

Kaltron

Lanacane

Lanacort

Lanza

Lemsip

Lewis Red Devil

Lime-A-Way

Lovela

Masterpiece Metalist

Mop & Glo

Mr. Sheen

Mr. Min

Nenuco

Neutra-Air

NoSalt

Noxon

Nugget

Nurofen for children

Old English

Poliflor Pratic

Poliflor Maximo Brilho

Precision Blend

Quanto

Resolve

Rid-X

Robin Blue

Sagrotan

Sani Flush

Senokot

Silvo

Sipuro

Spray 'n Starch

Suboxone

Vani-Sol

Vitroclen

Vivid

Wenol

Windolene

Wizard

Yes

Zud

FAMOUS PRODUCT OF RB

Cillit Bang

Cillit Bang is a range of power cleaners launched in 2004. It is now in over 30 countries with the following range of products: Lime & Grime, Degreaser and Stain & Mildew Triggers, Grease & Floor and Stain & Floor Dilutables and Stain & Toilet lavatory cleaner.

Clearasil

The expert in spot care, Clearasil is renowned for its highly effective range of acne treatment creams, facial washes and cleansing pads which give consumers the confidence of visibly clearer skin. Its strong position is continuously reinforced with innovations such as the re-launch of the Stay Clear range of products as well as exciting launches in the high efficacy Ultra range. The new Ultra 4 hour treatment cream is clinically tested to help reduce redness and spot size in 4 hours while the Ultra spot blocker pen helps stops a spot in its tracks, helping to stop it appearing in the first place.

Dettol

As the world's leading brand of antiseptics and a trusted champion of family health, Dettol products offer a high standard of germ kill and are recommended by healthcare professionals for their proven ability to keep families healthy. The brand has stayed contemporary through the launch of new products and offered consumers a breadth of products across categories that can help protect them from germs. These include bar soaps, hand sanitizers, liquid hand washes, shower gels and antibacterial wipes.

Finish

Finish is RB’s global brand of automatic dishwashing products UK, Italy, Scandinavia, Australia, New Zealand, Japan and Korea. With its excellent performance, all Finish products are endorsed by the leading dishwasher manufacturers and glass and crockery brands. Finish leads the market with successive innovative products developed and tested in Germany. Finish offers a complete range of detergents and additives in a choice of formats and variants. The most popular Finish detergents are the unique multi-benefit PowerBall Tabs with an all-inclusive system incorporating rinse aid function, salt function and glass protection. Finish PowerBall is also now available as Quantum, with 3 unique chambers combined to give amazing cleaning and shine every time.

Finish additives include Diamond Shine Rinse Aid, Special Salt, Machine Cleaner, Freshener, the glass protection product Protector and the new Turbo Dry for cupboard dry dishes. All Finish additives are designed to enhance the dishwasher experience.

Harpic

Launched in England in the 1920s, Harpic toilet bowl cleaner has been successfully extended to 47 countries on a platform of powerful cleaning. Harpic provides a full range of liquid toilet bowl cleaners, tablets, wipes, toilet bowl blocks, cistern blocks.

Lysol

Lysol is the No.1 disinfectant brand in the US, with over 50% of households using Lysol products. Families have trusted the brand to help keep their homes healthy for over 100 years.

Hospitals across the US also trust the brand to satisfy their cleaning and disinfecting needs.

Mortein

Mortein was first launched in the 1880s in Australia. It has been successfully launched throughout New Zealand, South Asia and the South Pacific. This pest control brand is famous for its Louie the Fly cartoon character advertising in Australia, which has been used for over three decades. Louie is now being used in South Asia for Mortein and in Malaysia, Singapore and Thailand for Shield ox.

Veet

World leader in depilatory products and trusted by millions of women worldwide. Veet markets a range of products that help women radiate a sexy femininity by giving them beautiful, touchable smooth skin. Leadership is driven by constant innovations to meet women's beauty needs. The new Spray-On Hair Removal Creams makes it easier to achieve 'superior to shaving' smoothness, while the new High Precision Facial Wax allows for salon precision and long lasting results at home.

RB'S LATEST PRODUCT INNOVATIONS FOR 2013

Our strength comes from our constant drive to innovate – on average 30% of our revenue comes from innovations launched in the last three years. 

A range of exciting products are set to join RB's already extensive family in 2013.  

Finish® Quantum with Power GelNew formula of Finish Quantum that now comes with a revolutionary gel chamber to deliver amazingly clean and shiny dishes.

Veet Naturals Hair Removal Cream -Combines Veet’s hair removal expertise with nature's skin care ingredients.

Dettol Radiance Soap and Body WashHealthy skin is radiant skin.

Dettol Healthy Kitchen GelLaunching in India, a unique dish wash gel that gives you clean, healthy dishes and kitchen surfaces. 

Vanish Gel Treat and GoTreat the stains directly, soak or add to the washing machine – for amazing stain removal first time.

Air Wick Filter & Fresh Car Physically captures odours as well as adding great fragrance, thanks to its Activated Carbon Filter. A truly clean, fresh fragrance experience.

Airwick Ever Fresh GelSlow-release gel for bathrooms.

FUTURE OF RECKITT BENCKISER

Reckitt Benckiser expects India to be largest market in 3-5 years

Consumer goods major  Reckitt Benckiser said it expects the Indian operations to become its biggest market globally in terms of revenue in the next 3-5 years.“Their aim and vision is that India should become the single biggest market in the next 3-5 years for Reckitt Benckiser in revenue”.

The company has globally identified and named 16 'power markets' for future growth and India is at present fourth in the list of top five markets.

“It is not going to be easy to compete with markets like the US, but they will do it on the back of innovation and investment on building our brands”.

As we know that India is one of the fastest growing markets in the world for the company.

“India is critical for global growth and is in the top block for investment and focus.”

Reckitt Benckiser had recorded net revenue of 2,357 million pound during January-March quarter this year.

The top focus markets for the company include the US, the UK, Germany, France, India, Brazil, Russia, South Africa, China and Australia.

They will focus on areas like health, hygiene and home, and invest in innovation.Health is clearly the focus area that is why they have acquired Paras

Last year, Reckitt Benckiser had completed acquisition of Paras Pharmaceutical's over-the-counter brands, including Moov pain relief ointment, Krack heel care lotion and D'Cold cold remedy for Rs 3,260 crore, along with its personal care business with brands such as Set Wet and Zatak, and hair lotion brand Livon.

Following this deal, Reckitt Benckiser, the maker of Dettol, Lysol, Bang, Vanish, and Veet, directly entered the personal care segments such as deodorants, haircare products, anti-ageing creams and over-the-counter healthcare products.

However, Reckitt Benckiser had sold part of the personal care business of Paras Pharma to Marico earlier this year.

When asked if Reckitt Benckiser was looking for more acquisitions, "They are trying to look out, but it is a matter of finding the right opportunity and time.

COMPETITORS OF RECKITT BENCKISER IN THE MARKET

Name Last Price Market Cap.(Rs. cr.)

SalesTurnover

Net Profit Total Assets

HUL 440.50 97,576.41 22,116.37 2,691.40 3,512.93

Godrej Consumer 753.75 25,652.07 2,980.08 604.39 2,761.43

Dabur India 132.90 23,163.61 3,759.33 463.24 1,576.54

Colgate 1,355.50 18,433.83 2,693.23 446.47 435.40

Marico 215.80 13,913.72 2,970.30 336.58 1,677.27

Godrej Ind 287.15 9,623.86 1,438.04 201.56 1,739.27

Emami 595.40 9,009.10 1,389.82 256.81 804.23

P and G 2,503.60 8,126.87 1,297.41 181.29 697.06

Gillette India 1,959.10 6,383.77 1,232.90 75.73 619.25

Bajaj Corp 224.55 3,312.11 473.31 120.09 427.86

Jyothy Labs 162.70 2,623.77 662.97 83.52 1,226.42

Amar Remedies 17.20 45.00 671.33 44.62 626.58

JHS Svendgaard 16.45 39.64 92.80 -3.64 159.53

GKB Ophthalmics 20.10 8.35 31.13 1.71 30.44

Strengths Cost advantageHigh R&DInnovationMarket share leadershipStrong management teamStrong brand equityPricing 

Weaknesses  Diseconomies to scale  Not diversified Poor supply chainWeak, damaged brand Ubiquitiouegory, products, services Developed markets as key source of production Very high employee turnover

Opportunities Acquisitions Innovation Takeovers 

Threats Competition launching and gaining shares in core strength categoriesEconomic slowdownExternal changes (government, politics, taxes, etc)Exchange rate fluctuationsLower cost competitors or importsProduct substitution

SWOT ANALYSIS

MARKETING STRATIGIES OF RECKITT BENCKISER

RB is today announcing a number of important changes to the company and its strategy to fuel another decade of market outperformance and attractive shareholder returns. 

Targets Health & Hygiene Powerbrands: successful Powerbrand strategy continues, but focus and investment increased on higher growth, higher margin health & hygiene in addition to home.

Targets faster growing markets: prioritises 16 “Powermarkets”, mainly emerging, for disproportionate investment and growth.

Redeploys resources to emerging markets: 2 new emerging market Area structures formed, North America and Europe merged into one Area structure

Increases investment in brand building: targets annual cost savings to fuel an additional investment of £100m in brand equity building.

Targets steady operating margin expansion: continues strategy of steady operating margin* enhancement over medium term – whilst increasing brand investment.

Sets 3 medium term (5-year) key performance indicators: 200bps of net revenue (NR) growth above market growth on average each year; emerging market Areas to be 50% of “core” business NR by 2016 (up from 42%); health and hygiene to be 72% of core business NR by 2016 (up from 67%).

OPERATIONS IN DIFFERENT COUNTRIES

1823

Founding of Benckiser by Johann A. Benckiser,Core business derived from industrial chemicals.

1840

Issac Reckitt rents, then subsequently (in 1848) buys a starch mill in Hull. Diversifies into other household products; becomes renowned for starch, washing blue and black lead for polishing.

1862

Death of Issac Reckitt aged 70. Business left to three sons.

1880

Mortein launches in Australia.

1886

Reckitt & Sons begins its expansion and opens businesses around the world - firstly Australia.

1888

Reckitt & Sons is launched on the London Stock Exchange.

1894

James Reckitt accept Baronetcy and becomes Sir James Reckitt.

1912Lehn & Fink Products begins US production of Lysol - originally imported from Germany.

1913

Joint venture set up in South America between Reckitt & Sons and J&J Colman - Atlantis Ltd. So successful that it is extended, in 1921, to cover all trading outside the UK.

In the UK, Reckitt & Sons join the Mason brothers in forming the Chiswick Polish Company. Diversification into other branded household products continues through the war years and the Twenties.

1932

Harpic Lavatory Cleaners bought. A major breakthrough for Reckitt & Sons, with the decision to market a germicide, Dettol, endorsed by the medical profession. Dettol launched.

1935

Sanpic disinfectant launched.

1937

Visit of King George VI and Queen Elizabeth to Dansom Lane, Hull in October.Steradent business acquired.

1938

Reckitt & Sons merge with J&J Colman to become Reckitt & Colman Ltd.

1943

Air Wick launches in USA.

1953

Finish launches into the automatic dishwashing market in the USA.

1954

The Chiswick Polish Company merges with Reckitt & Colman Ltd.

1956

Benckiser diversifies into consumer goods and industrial cleaning products. In the same year, Benckiser launches Calgon water softener.

1964

Benckiser develops and launches Calgonit Automatic Dishwashing Detergent and Quanto Fabric Softener in 1966.

1965

Gaviscon accidentally discovered during scientific research.

1972

Launch of Vanish Stain Removal Bar.

1982

Benckiser continues its expansion into consumer goods via acquisitions and divestitures and in 1985 acquires St. Marc S.A, France.

1983

Nurofen is the first OTC (over the counter) product to use ibuprofen - the first new OTC analgesic since 1950s.

1985

Reckitt & Colman buys Airwick products.

1988

Benckiser purchases Mira Lanza Spa and Panigal Spa, Italy.

1989Benckiser acquires S.A. Camp Group, Spain.

1990

Reckitt & Colman acquire Boyle-Midway, the American household products group with brands Woolite, Easy-Off, Sani-Flush, Wizard and Old English.

Benckiser acquires worldwide branded business of Beecham Household Products in US and Canada.

1991

Benckiser begins expansion into Eastern Europe.

1994

Reckitt & Colman acquires Lehn & Fink Products, including Lysol, the famous household disinfectant brand in the USA.

1995

Reckitt & Colman sells the Colman’s food business.

1996

Benckiser continues its expansion into the Baltic countries, Belorussia, China and Israel.

1999

Reckitt & Colman and Benckiser merge to become Reckitt Benckiser - The world No.1 in household cleaning.

2000In November, Reckitt Benckiser acquires Tiga Roda - an Indonesian pest control business.In March, Reckitt Benckiser acquires Oxy, a leading household business in Korea.

2001In April, Reckitt Benckiser disposes of the (non-core) firelighter business.In August, Reckitt Benckiser disposes of Dr. Becher, a non-core business.

2002

Reckitt Benckiser acquires outstanding minority interest in India and Sri Lanka.

2005

Cillit Bang launches in 68 countries in just one year.

2006Reckitt Benckiser completes acquisition of Boots Healthcare International for £1,926 million, gaining a new platform for growth in the attractive OTC (over the counter) healthcare market.

2007

Air Wick Freshmatic launches, creating an entirely new Aircare segment.

2007

Vanish hits the world No.1 spot! From it's UK launch in 1999, Vanish becomes market leader in 75% of the 57 countries it now sells in.

2008

Reckitt Benckiser completes acquisition of Adams Respiratory Therapeutics, Inc., allowing it to enter the USA's over-the-counter market with Mucinex – the clear No.1 cough remedy in the US.

2009Reckitt Benckiser launches its new corporate brand identity. Contemporary and bold, it reflects RB's spirit and what RB is all about as a business: 'The Power behind the Powerbrands'

2010

Reckitt Benckiser completes acquisition of SSL International and adds Durex and Scholl to their list of Powerbrands.

2011Bart Becht steps down as CEO after over a decade. He is replaced by Rakesh Kapoor.

2012RB announces new strategy for continued outperformance, along with a new vision and purpose. Our vision is a world where people are healthier and live better. Our purpose is to make a difference by giving people innovative solutions for healthier lives and happier homes.

2012Reckitt Benckiser acquires nutritional supplement and vitamin company Schiff Nutrition

COPORATE SOCIAL RESPONSIBILITY OF RECKITT BENCKISER

Our responsibility

We treat CSR as seriously as we do business...

Carbon20

A remarkable 21% improvement in lifecycle greenhouse gas emissions per dose since 2007 – beating its 2020 target eight years ahead of time.

Our Home Our Planet

And we're encouraging our consumers to help with Our Home Our Planet.

Our partnership with Save the Children

Reckitt Benckiser globally has been cooperating with major international charity organizations

including Save the Children, which is part of RB’s target of continuous development. 

Save the Children, a charity organization headquartered in UK, aims at helping the children

across the globe who need help, providing assistance in health, education and anti-maltreatment. 

Marketing and Sales Departments of Reckitt Benckiser

China have made a positive response to the call of RB global in the cooperation with the Chinese

organisation of Save the Children including funds collection, volunteers dispatch, etc.

Save the Children and the organisers of the Beijing Marathon jointly organised a charity

marathon on 16 Oct 2011. This is the first time since 1981 that the Beijing Marathon has

organised a charitable marathon. Reckitt Benckiser proudly sponsored 9 employees in this

charitable marathon.

Our next ambitious goal is to raise a further £6 million which shows our continuous commitment

to the charity.

a

CSR: RECKITT BENCKISER IN BAYELSA, DONATES TO FLOOD VICTIMS (ARTICLE)

As part of it Corporate Social Responsibility (CSR) and  commitment to healthy living, Reckitt

Benckiser Nigeria Limited has donated range of its  products including; Mortein, Dettol and

Harpic to victims of the recent flooding in Bayelsa State. The gesture was aimed at

complementing the various efforts by government and public-spirited organisations and

individuals to bring relief to the victims.

The products were received by the office of the wife of the state governor, Mrs. Rachael

Dickson, in Yenagoa, the state capital for distribution to the victims at the various relief camps

set up by the state government. The assistance from the company was made on the platform of its

Mortein insecticide brand’s partnership with the National Association of Nigerian Nurses and

Midwives (NANNM), which is currently holding its 5th Quadrennial 2012 National Delegate

Conference in Yenagoa.

Speaking at the presentation of the products, the Brand Manager (Mortein), Mrs. Oluwatoyin

Yusuf, said the act of kindness by Reckitt Benckiser Nigeria Limited was a further

demonstration of its belief in Nigeria and the people. ‘‘This gesture is simply to demonstrate

again that the people are at the heart of what we do at all times.

We believe that our people, who have been rendered homeless by flood, need every available

help and support that they can get so that they can carry on with life again. This is no doubt a

trying and difficult period, but we must all rise to their need and help them to get back their

lives’’, she said.

Yusuf noted that as a responsible and responsive organisation, Reckitt Benckiser was sensitive

enough to know the health and hygiene challenges which persons displaced by flooding were

facing especially children and pregnant mothers.

She explained, “We know that in situation like this, children and pregnant mothers are more

easily predisposed to health situations like malaria, diarrhoea and other respiratory diseases. This

is why we have come in our own little way to offer whatever help we can to see to the

improvement of lives at the camp especially those of children and pregnant mothers, and every

other Nigerian.’’

Receiving the products on behalf of the flood victims, the First Lady, Mrs. Dickson, commended

Reckitt Benckiser for its concern for the people of Nigeria. Represented by the Commissioner for

Women Affairs, Mrs. Sarafina Otazi, she said the assistance would go a long way in alleviating

the plight of the beneficiaries.

‘‘This act of kindness demonstrated by Reckitt Benckiser will significantly impact the lives of

the people. Definitely, it will bring succour to them and make them smile again while they make

gradual return to their normal lives.’’ She appealed to other corporate organisations and well

meaning Nigerians to emulate the example shown by the company by offering their assistance to

flood victims across Nigeria.

On his part, NANNM National President, Mr. Lawal Hussaini Dutsinma described Reckitt

Benckiser as a worthy and progressive partner whose commitment to the health and welfare of

Nigerians was unequalled. He added that the company has remained at the forefront of efforts to

make Nigerians especially children and mothers healthy and free from the scourge of malaria and

other diseases.

‘‘The show of love shown to the internally displaced persons in Bayelsa depicts them as a

responsible, caring and sensitive organisation. It shows a company that responds to the needs of

people irrespective of their location in the country. This, I must say is laudable and worthy of

emulations by other organisations in the country’’, he said.

MARKET SHARE OF RECKITT BENCKISER

Reckitt Benckiser is trying to expand its reach in India and penetrate its hinterland, which accounts for 35% of the Rs1.4 trillion packaged consumer goods industry and grew by an estimated 16.9% in calendar year 2009. In comparison, urban markets expanded 9.2%, according to market research firm Nielsen.

Competition is rising as consumer goods makers such as Hindustan Unilever Ltd (HUL) and Procter and Gamble Co. are also trying to drive growth in the country of one billion-plus people.

Reckitt Benckiser is known in India for its range of germ killers and insecticides. Dettol, a 75-year-old antiseptic brand, earns yearly revenue of Rs1,000 crore for the company in India, according to Nielsen. Toilet bowl cleaner Harpic, glass cleaner Colin, and pest and mosquito repellant Mortein have 75%, 88% and 60% market share, respectively, in their market segments.

In some products, Reckitt’s market share in India has slipped because of growing competition from multinational, national and regional consumer products makers that are selling cheaper products or dangling promotional offers before consumers.

Competitive pressure can only rise. Shirish Pardeshi, industry specialist at securities house Anand Rathi, said Mortein is facing competition in the mosquito coils market from cheaper brands such as Maxo from Jyothy Laboratories Ltd.

Over the last nine months, Reckitt Benckiser has implemented an initiative trying to reach smaller towns and gain higher visibility there.

According to research firm TAM, the firm was the second largest advertiser on television in the packaged consumer products industry after HUL in 2009. Globally, it spends 12-12.5% of its revenue on advertising and promotions.

HISTORY

Dettol is the trade name for a line of hygiene products manufactured by Reckitt Benckiser.

As a brand, it is ranked the 48th most-trusted one in India by The Brand Trust Report 2011.

Composition and chemistry

Dettol liquid antiseptic and disinfectant is normally light yellow in colour; but, as several of the ingredients in Dettol antiseptic are insoluble in water, it produces a white-coloured milky emulsion of oil droplets when diluted with water during use, exhibiting the ouzo effect.

The active ingredient in Dettol that confers its antiseptic property is  chloroxylenol  (C8H9ClO), an aromatic chemical compound. Chloroxylenol comprises 4.8% of Dettol's total mixture,[2] with the rest composed of pine oil, isopropanol, castor oil soap, caramel and water.

Usage

When diluted, Dettol may be used to clean cuts, wounds, etc.

Controversial usage

In Australia, Dettol spray has been shown to be lethal to cane toads, an invasive species that was introduced from Hawaii due to a poor outlook and bad judgment in 1935 forcane beetle control. Spraying the disinfectant at close range has been shown to cause fast-acting death. It is not known if the toxic effects are disintegrated or may harm other Australian flora and fauna.

Due to concerns over potential harm to other Australian wildlife species, the use of Dettol as pest control was banned in Western Australia by the Department of Environment and Conservation in 2011.

Humans

As with other manufactured household cleaners, Dettol has the potential for causing lethal toxicity. It is poisonous when ingested, and even when it is unintentionally inhaled.

In a case report, a 42-year-old British man died from Dettol overexposure in May 2007. The autopsy was not able to conclude whether the lethal exposure to Dettol was via ingestion or inhalation

Other animals

The Dettol Cleansing Floor Wipes disposable wipes product contain benzalkonium chloride, which is highly toxic to fish.

DECLARATION

This is to certify that Project Report entitled “RECKITT BENCKISER – A LEADING COMPETITOR IN INDIA (FMCG INDUSTRY) which is submitted by us in partial fulfillment of the Global Business Environment comprises only our original work and due acknowledgement has been made in the text to all other material used.

Signature:

Place:

Date:

PREFACE

This project is prepared under the guidance of Mr. Pankaj Upadhyay

Hence, this report is designed with the objective to gain practical knowledge and is undertaken

on FMCG Industry.. To take theoretical knowledge is important but it becomes more valuable

when we apply it in the practice. So there is a huge gap between theory and practice. So, for

fulfilling this requirement it is a good exposure for us. This provides golden opportunity for all

students, especially when the management student does not have perfect understanding of the

working of a unit.

Hence, this report is designed with the objective to gain knowledge about the FMCG.

ACKNOWLEDGEMENT

We extend our sincere gratitude to Mr. Pankaj for giving us the opportunity to do this project and undergo the process of learning. We thank him for all the trust and faith he posed in us and we only hope that we have been able to live up to his expectations.

Lastly we would like to thank all those persons associated with us in making this project a success.

BCG MATRIX

STAR

1.Dettol

2.Air Wick

3.Colin

4.Veet

5.Durex

QUESTION MARK

1.French Mustard

2.Clearsil

3.Robin Blue

COWS

1.Harpic

2.Strepsils

3.Mortein

4.Cherry Blossom

5.Disprin

DOG

1.Easy of bang

2.Ring Guard

3.Moov

4.Crack heel

5 CASE STUDY OF RECKITT BENCKISER

Case study: 1Cherry Blossom (Reckitt Benckiser)

Introduction In June 2006, the Brand Manager of Cherry Blossom, looked back with some degree of satisfaction to the positive uptrend in the last couple of years to various initiatives taken by the brand team to recoup some of the lost ground. Despite his pre-occupation with the "100 shining years" celebrations going on for this life-touching brand that had for long added an early morning glimmer to shoes, he was keenly working towards finalising the strategic shifts in the marketing strategy of the brand to take it to the next orbit.

The journey of Cherry Blossom (Cherry) as a brand had begun a hundred years ago and had seen many ups and downs. For a long time till mid 1990's, it was the dominant category leader, with virtually no competition, and a market share of about 75%*. Market environment changed when Kiwi emerged actively as one of Sara Lee India's core brand. The changing shoe care habits of consumers and growing popularity of new shoe types further changed the market environment for Cherry. By the end of 1990's, Cherry was losing its shine. The brand had lost its market share steeply from 1999 onwards, and by 2002 it fell to a low of 61% - a drop of 12% in market share. A series of measures helped Cherry to fight this serious erosion to its leadership position, and the slide was arrested in 2003. From there onwards, many active efforts helped the company regain some of the lost ground, and gradually, Cherry’s market share inched up to above 65% in 2005.

The brand team’s endeavor now was not just to redefine the brand but also re-evaluate all the elements of its marketing strategy and set the direction for the brand for the next few years while utilizing the limited resources and marketing effort judiciously for maximum effectiveness to further consolidate the position of Cherry as a brand.

About The Company

Reckitt Benckiser plc, world’s no.1 company in household cleaning came into being with the merger of Reckitt & Colman plc with Benckiser NV in 1999. The company had operations in 60 countries, sales in 180 countries and had net revenues in excess of $5.5 billion. Reckitt Benckiser India Ltd (RBIL) was a fully owned subsidiary of Reckitt Benckiser Plc. It manufactured and marketed a wide range of household and personal products in categories of Pest control, Shoe care, Antiseptics, Lavatory care, Floor care, Fabric care, Dishwashing, Air care. etc Amongst its many well known brands were, Dettol, Mortein, Harpic, Eazy Off Bang, Vanish, Lyzol, Veet, Disprin, Robin powder, Collin glass cleaner etc. Most of these brands were either number 1 or number 2 in their respective categories in India. RBIL’s sales revenues in 2005 were about Rs.1000 crores. The Shoe Care Market

Cherry was introduced in India in early 1900’s and practically created the market over all these years. Many generations of consumers had grown up with the brand touching their lives closely. In the early years, Cherry was the only major brand in this category. Much later in the 1970’s Kiwi, a brand from the Household care products of Sara Lee, entered Indian market, but it really became active only in early 1990s in India. The market expanded radically during the 1980’s and early 1990's. Between them, Cherry and Kiwi, held between 85 to 90% of the Indian market in value terms over these years. In terms of volume, however, these two players accounted for about 70 to 75% of the market. The remaining market was accounted by a number of regional players like Robin, Billi, and many others. Many of these local/regional brands offered products at very low prices and were active in localized markets only. After the steady growth of the 1980’s and 1990’s, the shoe care market witnessed reversal of this trend in the 2003 -2005 period in volume and value terms.

In 2005 the total market was estimated to be about Rs. 91 crores, which included sales through trade channel and shoe shops channel. Cherry was the market leader by far in the trade channel while Kiwi had domination in the shoe shops channel.

Shoe Polish Formats

Shoe care market primarily consisted of polishes, creams, shampoos, whiteners, brushes etc. In India, this market had been traditionally dominated by polishes for leather footwear, which accounted for almost 90% of the total shoe care market in 2005, and were predominantly sold in wax format or liquid format. Products like creams, shampoos, whiteners, brushes etc. were categorized as other formats and were used for leather or non leather footwear.

For most part of the last century, shoe polishes were almost synonymous with the wax polishes. The wax polish was sold in round flat tins and had to be applied on shoe using a brush. Next the shoe had to be brushed vigorously to bring the shine to the leather surface. Sometimes a piece of cloth and shoe cream would also be used to get an extra shine. The considerable personal effort required to be made by the polish user would be rewarded by the shine on the shoe. While the polishing effort meant close personal involvement by the user, on the other hand the infrequent purchase of polish (a tin would usually last a long time, even upto 6 months) limited the customer involvement with the brand.

Till the early 1990's, the polish usage in India was predominantly that of wax polish. In 1991-92, Cherry introduced the liquid shoe polish format in its range. It was a convenient format, with a simple nozzle to apply the polish straight on the shoe to give it instant shine. The liquid polish format held great promise and was expected to appeal to the changing life styles of the Indian consumers. Kiwi also introduced its range of liquid polishes in India around the same time and made it a key component of its marketing strategy since Kiwi had been finding it tough to challenge Cherry in the wax polish format where Cherry had built such a stronghold.

In the initial years of its introduction in the Indian market, the liquid format showed good growth. However, despite its unique appeal to the convenience seekers, the growth rate of liquid polishes started to taper off by the end of 1990’s. After 15 years of launch, the liquid polishes could grow to about 21% of the category by 2005, waxes continued to be the dominant format with a share of 70% and other formats accounted for the rest.

Consumer research among polish users revealed a major reason for the liquid format not living upto its promise. There was a perception amongst consumers that the liquid 'dried' the leather, making the shoe surface harder with time, and did not provide the nourishment that leather needed.

An attitude study showed that amongst the serious shoe care consumers, liquid shoe polishes were not very popular. Such consumers preferred wax polishes and did not generally switch to liquid polishes and also tended to be more loyal towards the brand, while other users were not so committed to any format.

In 2004, Cherry revolutionized the market by introducing the Quick wax polish format. This new formula combined the dual benefits of convenience the consumer was looking for and the nourishment of leather that wax polish provided. Its easy-to-apply brush was inbuilt in the bottle cap and user could just open the bottle and straightaway apply the semi liquid wax to the shoe surface. In a new swanky packaging, Quick wax polish reached out to the consumers as a new platform altogether and provided an opportunity to RBIL to rejuvenate the brand and also emerge as an innovation leader. 35 gm pack of Quick wax had a retail price of Rs. 40 as against Rs. 27 for a 40gm tin of wax polish. In 2006, it was already a major sku in the Cherry’s portfolio with sales running at about 5% of wax products.

Sara Lee was also active in this period in building its product portfolio and had launched a number of products. In 2004, it launched a new instant shoeshine sponge with a liquid level indicator (the Kiwi express shoeshine sponge) priced at Rs.40 at retail. Another product Sara Lee launched in the same year was the shoe freshener Kiwi Fresh Force, to deal with the problem of shoe odour, and towards end of 2005, it also launched its easy wax product against the Quick wax.

Players in the market

Cherry had long been the category leader of the shoe care market in India. In 1990’s, significant changes had taken place in consumers’ preferences and habits. Leisure had 1become fashionable and shoes originally designed for sport were becoming fashion statement even in work and casual occasions. In the backdrop of the growing customer acceptance of non-leather shoes and changing shoe care habits, the shoe care market started to stagnate in late 1990’s. Kiwi started to offer aggressive consumer promotion schemes at this time and Cherry started to lose its market share.

A series of measures in 2003 helped to arrest the slide in market share with the brand gaining 1% share. From then onwards, a flurry of activities were undertaken by Cherry in terms of new product launches, improved packaging, new promotional schemes etc.

Kiwi Shoe Polish, the 2nd largest shoe care player in India and the major competitor of Cherry in the world, was a brand of the multi-national Sara Lee Corporation. Its 100 per cent subsidiary in India, Sara Lee Household & Body Care India (SLHBCI) manufactured Kiwi range of shoe care products, Brylcreem range of shaving gels, creams, foams and after-shave in the men's toiletries range and also Kiwi metal polish for silver and brass, Kiwi Drainex and Kiwi Kleenflush.

In 2005, SLHBCI had a sales turnover of approx. Rs.50 crores, more than half of which came from Kiwi shoe care products. The other major contributor to revenues was the Brylcreem range of products, categories in which the company held over 85 per cent market share. All the products of the company were distributed by Sara Lee TTK, a joint venture with TTK Healthcare.

Kiwi Shoe Polish was a late entrant in the Indian shoe care market sometime in the 1970’s but actually became active only in early 1990’s. Kiwi was also an important brand of SLHBCI and enjoyed unbridled support and investment from Sara Lee. India had been designated as the South Asia hub for innovation, hence SLHBCI had been very.

Shoe polish usage

According to an independent research in 2005, around 63% of the shoe owners were shoe polish users. However, the use of polish did not appear to be tilted towards specific gender with about 60% amongst males as well as females using shoe polish, in their respective groups. It was also observed that in age-wise categorization, 25-44 year olds were the highest shoe owners, out of which around 62% used shoe polish. The research indicated that shoe polish usage across socio-economic classifications varied quite a lot, with a high of around 80% of shoe owners using polish amongst the SEC A groups, and a low of almost 50% shoe owners using polish in SEC C group. The study also revealed that the total shoe owners increased from 50.42 million to 50.82 million between 2003 to 2005, while the polish users grew from 30.10 million to 31.86 million in the same period.

The research also indicated wide variations in the frequency of shoe polish usage amongst different groups, but no patterns could be seen in the same. In many cases, a shoe polish tin would last six months or one year to a customer.

Trends in Footwear Market

Besides the shoe ownership trends, another important factor determining the growth of the shoe care market was the introduction of new types of shoes and shoe materials in the Indian footwear market. With the multinationals entering the Indian market in the 1990’s, the popularity of the sports shoes/sneakers among men was growing at a fast pace. Especially amongst the male population, growth in the number of people buying sports shoes was twice the rate of growth for leather shoe buyers as per trends in the footwear purchase during the years 2003 and 2005.

Because of the footwear market and shoe care trends stated above, the shoe care market could be best described as sluggish, and showed a remarkable decline in volume terms from 2002 to 2005.

Distribution Channel

RBIL distributed all its products through its common distribution channel which had a wide and deep reach in the markets and was a key strength for the company. The channel was managed by a well structured sales force, responsible for achieving company’s sales of entire product portfolio of more than 150 SKUs.

The shoe care range of products was distributed through Trade channel and Shoe shops channel. In the Trade channel, Cherry had much deeper penetration and was present in more than one million outlets across length and breadth of the country. Northern India was the biggest market for shoe care products followed by Western India and these markets contributed above 50% and about 22% to the category sales respectively. The rest came equally from the eastern and southern markets.

Quest for Growth: 2003 Onward

With the strong support of RBIL’s management, the entire brand team of Cherry swung into action to rejuvenate the brand and identified key growth drivers. These drivers, constituting the marketing mix of the brand, helped the company to bring back Cherry on an encouraging growth path and sustained leadership. These strategies addressed the following key drivers:

• Reintroduction of Advertising through media in place of consumer promotions • Enhancing the reach and the visibility of the brand by driving up its presence and placement

in the channel • Pacing up the innovations and becoming the pioneer of new products and usage formats in

the shoe care market

Branding and Promotion Mix

Traditionally, Cherry had not been using media to build its brand equity and was off air from late 1990’s to 2002. It was a conscious decision, now, to include media as an integral part of equity building measures. Hence it was decided to use the pull created by advertisements and other media support as a supplement to the push activities through trade promotion, and consumer promotion schemes were discontinued.

Especially the centenary celebrations were to be used as an occasion to leverage media promotions to generate a lot of public interest, and bring the Cherry brand into limelight. It was believed that the boost to such brand building initiatives would be the best defense against a competitive attack and would help in building long term brand equity also. The target was to achieve the highest possible share of voice and share of market.

The brand, which for long had been associated for its Cherry Charlie ad campaigns, stood for success, honesty and hard work. It had earlier positioned itself as the No. 1 shoe polish for well-groomed adults. Now, after a long gap, Charlie was brought back into the advertisements in 2003, and the new message was "Cherry's shine is far superior to that of other brands". In 2005, a new positioning plank was used when the brand tried to bring back the convenience and fun in polishing shoes and offer value for money in a category that was largely driven by product promotions.

Sara Lee had been very liberal in deciding the media spends for its Kiwi advertisement campaigns and used it well to support the launch of many innovating products it brought to the Indian market in these years. The visibility of the brand got a strong boost when Kiwi launched its new advertisement campaign in mid 2006 featuring the new hero of the Indian cricket team M S Dhoni.

Kiwi’s high aggression was not just in media spends but also in trade spends where it came out with numerous schemes from time to time to drive up its sales. While Kiwi was already giving higher retail margin than Cherry, it was also very actively trade promoted with very high additional discounts. It was estimated that Cherry’s additional trade spends were very limited and did not exceed more than half of Kiwi’s trade spends. Kiwi was highly consumer promotion driven too with more than 75% of all its products under some consumer promotion or the other. However RBIL decided that it was unnecessary for the market leader to match up the trade margins offered by the challenger brand, and no consumer promotions were considered necessary to be offered.

Presence and Placement (Visibility)

These two measures were core ingredients of the new marketing mix initiatives undertaken by the brand team to enhance Cherry’s reach across geographies and visibility inside the retail outlets. The number of retail outlets that Cherry reached increased significantly to almost 1.20 million in 2005. To drive the volumes of sales at the retail outlets, Cherry decided to use placement tools to execute a mega.

visibility drive in 2004. Shelf talker, wall dispensers, hangers etc. were placed well before the season to boost the sales through out the season.

Innovation – Drives business and growth

Many aspects of the shoe care industry had undergone tremendous change over the last 5-6 years. According to industry research, these changes in the product users profiles, product forms and usage patterns, shoe care habits and competitive scenario had changed the environment where innovation was not just a choice but a strategic imperative.

It was believed that the innovation dynamism would not just help build durable brand equity among the consumers but also enable the company drive up its market share by deriving higher value per usage. This strategy had seen RBIL introduce Cherry's international range in 2003 which included products from their global portfolio, with an improved packaging for the first time in Indian markets.

In 2004, Cherry came out with the new format of Quick wax. Again in 2005, to drive consumer benefit of keeping the shoes looking new for longer, Cherry changed the formulation of wax polish and introduced wax with a special oils for leather (anti-ageing polish).This innovation was supported by promotions for “100 shining years” celebrations of Cherry.

Since the implementation of these initiatives over 2003-2005, the brand started to reap the benefits, and was on a growth path despite market stagnation, and attained a market share level of almost 67% in first half of 2006.

Exploring New Avenues

With 100 years of rich history and strong presence in the Indian market, Cherry Blossom was well on the recovery path after the turmoil of the mid 1990’s and early 2000’s.

The brand team was evaluating different ways to expand the markets and increase the growth rate, while at the same time remaining committed to keep the profitability of the brand intact and also ensuring to guard itself from any share losses similar to the ones that had occurred earlier.

Realizing that initiatives couldn't be taken in all directions at one time, the team wanted to use the creative ideas and innovative minds of the young business managers of the future, to help formulate new avenues for growth and chalk out the future of this endearing hundred year strong ‘Cherry Blossom’ brand to a new level. The brand team expected the young analysts to also do primary research of market segments, consumers and competition etc that they considered necessary to come out with strategic recommendations.

Case study 2:

Dettol (reckitt benckiser)

History: Owned by Reckitt Benckiser India Ltd

Status: A legacy brand, it was launched in India in 1932. Dettol has become the generic name for the liquid antiseptic products category and enjoys 85% market share in the segment. The brand today is present in various segments such as soaps, hand wash, shaving creams and plasters.

Brand story: Despite its first mover advantage, it did not become a household name from the word go. To break into the consumer space, the company launched an aggressive advertising campaign in 1960.

“By 1970, 4.7 million Dettol bottles were sold and, over the next one decade, the brand had penetrated into 40% of urban households in India,”

Dettol’s reign in the market, though, has not been unchallenged. When UK-based consumer products company ICI Plc. brought its flagship brand Savlon to India, Reckitt Benckiser realized how serious the competition was—and “Dettol went to consumers with even more forceful campaigns”.

In the 2000s, the company’s long-standing slogan, Strong enough to protect the ones we love, changed to Dettol, be 100% sure. “As a brand, Dettol has always retained its standing on the anti-germ platform, although its portfolio has expanded to suit the lifestyle demands of consumers,”

Dettol antiseptic liquid has strong , distinct association – first and foremost in its trademark smell. Who can miss the characteristic dettol smell that has been a reassurance to many a child’s scrapped knee! Consumers recognize the smell enough to refer to a medicinally clean room as “Dettol like smell”

The second characteristic is its amber gold colour. The third is the ‘clouding’ effect that appears when it is added to water.

Dettol packaging is distinct in its very own way. The green and white colours are associated with hospitals. All Dettol products have a sword on the pack, which is a symbol of fighting germs and infection.

Case study 3 :

French’s mustard (reckitt benckiser)

To raise brand awareness, generate product trial and drive sales for French's Mustard, utilising a promotional product sampling campaign to showcase the versatility and great taste to the target audience of families at National Family Week's major events.

Campaign Description:

A team of experienced brand ambassadors set up a BBQ and serving area at the National Family Week's busiest events in Hull and Liverpool, as a base to cook and distribute tasty burgers, hotdogs and vegetarian equivalents, all topped with a generous squirt of French's Mustard.

A member of costumed promo staff also dressed as a giant French's Mustard bottle which further raised brand awareness and drew families towards the product sampling event area.

In addition to the Experiential product sampling activity, the promo teams also handed out National Family Week branded goody bags to the event goers, which contained promotional leaflets detailing recipe ideas using French's Mustard, a French's sachet sample and info on how to enter a competition to win a family day out.

Branding:

The giant costumed promotional mascot in the shape of a fully branded French's Mustard bottle was the main branded element. It provided a clear visual link to the packaged product being promoted and also allowed easy, immediate opportunity for interaction with families.

All members of the promotional team wore branded T-shirts with the National Family Week and French's Mustard logos on front and back. This made the brand ambassadors easily identifiable and also aided interactions with members of the public.

Branded French's Mustard banners were also set up across the front of the serving tables that were situated in the BBQ product sampling area. This made the brand's event stand more prominent amongst the crowds.

Results:

Throughout the campaign, the promotional team delivered over 33,000 freshly cooked product samples alongside the equivalent number of dry sample goody bag packs.

The client was very pleased at Link Communication's ability to deliver a well targeted promotional product sampling campaign, and has since substantially extended their activity across both the French's brand and other products within their portfolio.

Case Study 4

Lizol Disinfectant ( reckitt benckiser)

Lizol All Purpose Cleaner is playing the price vs. value game with the commodity local brands of surface cleaners available in the market. The consumer is currently using the local brands of phenyl unaware of the disinfectant benefits that the premium price brings for them.

Visuals like visible germs under a magnifying glass that the brand has been using were used in a shopper engaging way. Also extensive use of the floor for brand messaging at the retail store enhanced the shopper experience.

The shopper journey was followed to give a holistic brand experience

Trolley Branding

Shopping trolley is a media space that moves around the store and can be used for brand messaging to speak to shoppers around the store who can view the trolley in its full view as well as the shopper who is pushing the trolley. OmniSpace used the shopping trolley as a eye catching visual for the shopper viewing the trolley along with the brand message.

Floor sticker

Samaanya phenyl Deta Hai, Samaanya SafaiAapke farsh pe koi aur bhi rehta hai Khatron se khel rahe hain aapke apne

Floor stickers with the key visual and emotionally appealing copy addressed to the lady of the family to address the superior value of disinfection that the brand provides.

MOP standee

A hard-hitting, shopper interactive display unit to nail the Lizol disinfectant message. Shopper reads the message, ‘Can your mop see…’ and in invited to look down into the magnifying glass. When one reads through the magnifying glass the message reads ‘Wish your mop could see hidden germs’. This copy is not visible to the naked eye as the print on the floor graphic on the floor is tiny. The standee was placed at the product dispensing area in order to act as the push to complete the sale.

Shelf strip

Shelf strip with a visual of the tiny mop moving the germs away to reveal the Lizol disinfectant message. Message on the shelf is complete lest the shopper has missed out on any earlier communication; Using the limited horizontal area in the best possible way to convey the brand message visually.

Bay sticker

Product bay is demarcated using a floor sticker that says that the marked area is Lizol disinfected. The idea is to highlight the category bay by breaking the monotony on the floor. It is also to reinforce to the shopper the Lizol disinfectant message.

Leaflet holder

Once the shopper has completed the shopping process, we would like to leave behind a brand message. At the cash counter the shopper is eager to pay and leave and could do with some activity while they wait in the queue. The Lizol leaflet holder gave them an opportunity to pick up and read the leaflet and also take it along if they found it interesting.

From the time the shopper entered the store to the time they leave the brand has touched them at various touch points and given the brand message in retail relevant language, media and format. Lizol has decided to take the activity national in June 2008.

CASE STUDY 5: Mortein

50 Years of Louie the Fly

Mortein was originally manufactured in Australia as an insecticidal powder in the late 19th century. It went through several phases of evolution before the company introduced aerosol to Australia in the early 50s; just in time for the start of television. The then Managing Director, Bill Graham, believed in aggressive marketing and advertising and immediately saw the enormous potential of the television medium.

Background

Mortein has a long association with Free TV. In 1956 when television first arrived in Australia,Mortein was one of the first TV ads on air with a lengthy infomercial. In 1957, Louie the Fly was born, when author Bryce Courtney famously scrawled out the concept and jingle in a taxi on a way to a meeting with Graham.

Challenges

Mortein’s business is highly seasonal with 75 per cent of annual sales generated between October and March each year. Keeping the brand relevant from year to year therefore is a key challenge. The other challenge for Mortein was to ensure their message and brand remained contemporary and relevant. This needed to be considered within the framework of, “if it ain’t broke…”

The Solution

The beauty of a long-lived and much-loved character such as Louie the Fly is the continuity of association that means as each season rolls around, the Mortein brand doesn’t have to start from scratch in building awareness. One of the key strengths of the original idea was that Louie was animated, which directly addressed the issue of how to depict the effectiveness of insecticide without using potentially off-putting vision such as real flies crawling over food or the like. Yet the original Louie was a line-drawing for black and white television. To keep Louie fresh, he has had several makeovers: from line drawing to cartoon animation; from black and white to colour; and from cartoon to 3-D. In celebration of his 50th anniversary, Louie has this year been given an image overhaul and appears in dazzling computer generated form.

The Role of TV

There are few better illustrations of television’s ability to build brand fame as with Mortein. TV has played an integral role in the establishment of Louie the Fly as one of the nation’s most enduring brand icons. To cap it all off, last year, the Advertising Federation of Australia, named Louie the Fly as one of the top 50 television ads of all time.

Results

After 50 years, Mortein continues to be one of Australia’s favourite brands. “Thanks to Louie, when asked to name a product ‘that kills insects’, over 90 per cent of respondents answered ‘Mortein,’” says Frederique Hull, Marketing Director of Reckitt Benckiser. “More importantly, they strongly associate both the character and the jingle with the Mortein brand.”

Porter's Five Forces   Analysis

Bargaining Power of Suppliers

This threat is fairly low, RB has a wide range of suppliers, both in terms of the materials and geographically. This is due to the wide range of products which RB sells.

Bargaining Power of Buyers

This is a medium threat, no one buyer counts for more than 10% of RB's sales and the top 10 buyers only account for between 0.25 and 0.33 of sales. However, the buyers are increasingly bigstores such as the supermarkets for whom individual products are not of great importance to. These stores are also often competitors creating their 'own branded' products. 

Threat of New Competitors

This threat is fairly low. With RB operating in so many markets there are opportunities for development. With new developments can come new products and new competitors. RB and its competitors enjoy economies of scale and the benefit of experience in developing products, marketing and distribution. 

Threat of Substitutes

This is a medium threat. With the wide range of products and markets there is always a threat of new products to enter which substitute the existing products. The major retailers 'own branded' products are the main substitute to the famous branded lines. 

Intensity of Competitive Rivalry

This is high. RB's main competitors are Unilever, Proctor and Gamble and Colgate Palmolive they all offer a wide range of products some of which compete directly against RB's products. The products offered by RB are often directly competing with similar products that they share the same shelf with. There is some differentiation is the market, usually brought about by the marketing campaigns which play a major role in building the brands. RB has trademarks on its products and in some cases patents. 

4 P’S OF RECKITT BENCKISER

Product - A product is seen as an item that satisfies what a customer needs or wants. In case or

RB their products are common house hold products which comes in FMCG sector .The product

that are related to RB are as follows:

Mortein

Dettol

Airwick

Moov

Durex

Harpic

Cherry blossom

Vanish

Price- The price is an amount a customer pays for the product and its is very important factor

and RB products comes under affordable price because o the daily need of the consumer. RB

products are affordable and RB has maintained market share because of its competitive market

pricing strategy

Place - Refers to providing the product at a place which is convent for consumer to access. RB

distribution channel is so strong that their products are available at very grocery shops, in malls

and even rural area as well.

Promotion – Refers all methods of communication that marketer may use to provide

information to different parties about the product. RB promotion comprises elements are

advertising, public relation , personal selling and sales promotion