Key Account

Management in Reckitt Benckiser

Submitted To:
Sir Saeed Ur Rehman
Sales Management
Submitted By:
Fahad Naseer
Hammad Hasan Jaferi
Hooriyeh Ali
Sarah Zubair Janoo
Samra Javed
23/04/15

ACKNOWLEDGEMENT
We would like to thank our course instructor Sir Saeed Ur Rehman
for giving us the opportunity to increase our knowledge and
broadening our vision through the process of compiling this
report. We are grateful and truly indebted to him for giving us the
chance to learn from the professional world, and having the
unique experience of meeting with professional salespeople. His
guidance and support, without which we would not have been
able to compile this report, are highly valued and appreciated. It
has been an honour to have been taught the course of Sales
Management by Sir Saeed Ur Rehman.
We would also like to acknowledge and thank Mr. Salman Tariq,
Head of Sales Operations at Reckitt Benckiser, for taking out his
time and imparting knowledge with us regarding key account
management at Reckitt Benckiser. We would not have been able
to present this report without his help and esteemed direction.

LETTER OF TRANSMITTAL
Respected Sir:

TABLE OF CONTENTS:
INTRODUCTION:....................................................................................................... 4
HISTORY:................................................................................................................... 5
MISSION STATEMENT:............................................................................................. 5
VISION
.5
WHAT ARE KEY ACCOUNTS?.................................................................................. 6
WHO MANAGES KEY ACCOUNTS AT RECKITT BENCKISER?...............................7
RESPONSIBILITIES OF KEY ACCOUNTS MANAGER..............................................7
SALES CALL FOR KEY ACCOUNTS.........................................................................8
SKILLS AND TRAINING REQUIRED.........................................................................9
INCENTIVES/DISCOUNTS TO KEY ACCOUNTS CUSTOMER:..............................10
SHELF WARS:......................................................................................................... 11
PROBLEMS FACED TO MANAGE KEY ACCOUNTS:.............................................11
THE DIFFERENCE BETWEEN KEY ACCOUNT MANAGEMENT AND
TRADITIONAL SALES............................................................................................. 13
OBSERVATION AND RECOMMENDATION:...........................................................15

INTRODUCTION:
Reckitt Benckiser is a multinational consumer goods company and
a major producer of health, hygiene and home products. We all
are quite familiar with its brands like Dettol, Strepsils, Mortein,
Harpic and Veet, which are the world's largest selling brands in
their respective industries.
In accordance to our project related to key account management
in FMCGs, we went to the Head of Sales Operations at Reckitt
Benckiser, Mr. Salman Tariq. He shared with us some useful
information, for e.g. the sales of Reckitt Benckiser are divided into
four regions: field sales, sales operations, trade marketing and
key accounts. Key accounts is a separate function at RB with its
own hierarchy. Field sales is divided into 4 regions headed by
regional sales manager. Then there is head of sales, head of trade
marketing and head of key accounts. The national sales manager
is responsible for sales teams, hirings, CFC operational budget for
incentives etc. The key accounts are spread throughout Pakistan.
The 4 key accounts that are classified as key accounts are
Hyperstar, Metro, utility stores and CSD stores. The key accounts
divided under two managers at Reckitt Benckiser, to ensure
smooth flow of process.
Reckitt Benckiser trusted medical devices, medicines, hygiene
and other home products filled its history of strong financial
performance along with social responsibility.

HISTORY:
Reckitt Benckisers history spans 150 years of innovation for
consumers across the world. Johann A. Benckiser founded a
business in Germany in 1823. Its main products were industrial
and consumer goods industrial chemicals. It was formed in 1999
by the merger of the UK-basedReckitt & Colman plc and the
Netherlands-based Benckiser NV.It has operations in around 60
countries and its products are sold in almost 200 countries.The
company runs a number of graduate programmes, in most of its
markets, with over 200 graduates joining the schemes worldwide.

MISSION STATEMENT:
Our purpose is to make a difference by giving people innovative
solutions for healthier lives and happier homes. This means we
are expanding our capabilities and investing in innovation to stay
ahead of the game.

VISION:
Reckitt Benckiser's vision is to passionately deliver better
solutions in household, health and personal care to customers and
consumers, wherever they may be, for the ultimate purpose of
creating shareholder value. Reckitt Benckiser aims at creating a

world where people are healthier and live better.

WHAT ARE KEY ACCOUNTS:

Key Account Management is normally associated with the idea of
looking after large and important accounts that are critical to the
business. Key Account Management is far more than just selling
products to big customers, its dealing and negotiating with those
customers who have a strategic role to play in the growth of a
supplier. Key account management is about developing long-term
relationships with strategic customers. A companys greatest assets
are its customers. Without customers there is no company.
People at large companies toss the terms "key
account management" and "strategic account
management" in conversation every day. Ask
people to define what these are, or to tell you
what the criteria are for an account to be
named a "key" account, and youre likely to get
very different answers.
At Reckitt Benckiser, according to Mr. Salman
Tariq a fixed definition is used to determine an
account as a key account. There are two types
of key accounts at Reckitt Benckiser:
Foreign Accounts
Government Accounts
Reckitt Benckiser has four key accounts in Pakistan, two foreign and
two governments. The four key accounts of Reckitt Benckiser are as
follows:
Hyperstar
Metro
Utility Stores

 CSD
Field sales cover all outlets from Karachi to Peshawar. What key
accounts do not cover is covered by field sales. For example if Tesco
comes to Pakistan it will be treated as Reckitt Benckisers key
account as it is a foreign account. In the same manner, government
and military have to be treated differently. If a new superstore opens
in your neighborhood, which is big and have departments it will not
be a key account for Reckitt Benckiser, but this doesnt mean
Hyperstar have a better deal than a down the road store. All stores
are given incentives and discounts differently.

WHO MANAGES KEY ACCOUNTS AT RECKITT

BENCKISER:
At Reckitt Benckiser there is a bit of hierarchy in place. The Head of
Key Accounts do the negotiations at all four key accounts of Reckitt
Benckiser. Key account managers duties not just include sales but
also planning and managing the full relationship between a business
and its most important customers. The four key accounts are also
divided into two Key Accounts Managers.
First Key Account Manager is responsible for the foreign accounts,
which include Hyperstar and Metro. The second Key Account
Manager is responsible for the government accounts, which include
Utility Stores and CSD stores.
Both the Key Account Managers have two different teams working
under them who are trained in the relative key accounts. As different
strategies are required to deal with the different key accounts.
There is not just a hierarchy in place at Reckitt Benckiser but also at
the customers end. For example at Hyperstar there is complete
team in working. Each time you meet a different person at
Hyperstar. Hence, strong relations are to be created.

RESPONSIBILITIES OF KEY ACCOUNTS

MANAGER:
We met with Mr. Salman Tariq, National Sales Manager at Reckitt
Benckiser. We asked him about his responsibilities and what is
included in his job description. He listed the following duties which
come under his scope:
Responsible for the complete sales team including their perks,
incentives etc.
Hiring
Complete distribution management.
Responsible for CFC or operational budget(CFC is the fund with
which you manage operations).
We asked Mr. Salman Tariq to tell us about the responsibilities of a
key accounts manager and he gave us the following list of duties:
Managing key accounts
Working in close coordination with trade marketing
department.
Manage relationships with key accounts
Negotiating with key accounts
Leading the team
Keep records of transactions
Strategic planning
Help in new innovations
Ensure customer satisfaction
Evaluate customer practices at the key accounts.
Mr. Salman Tariq told us that a key account manager fulfills many
other duties and responsibilities. This is not an exhaustive list. A key
accounts manager deals with any problems and issues which come
to him and needs urgent decisions.

SALES CALLS FOR KEY ACCOUNTS:

Usually pre-arranged and face-to-face meeting between a

salesperson and a prospect for the purpose of generating a sale.
Sales call is similar to a client call, wherein you discuss your
products, the benefits of your products and trying to end the call
with a sale. The term 'call' can apply not only to phone sales, but to
actual face-to-face visit to a prospective buyer.
According to Mr. Salman Tariq average sales call time differs
according to different accounts. Its obvious key accounts require
more time and attention but most key accounts have moved out of
the traditional sales call. Hyperstar and Metro no more require a
sales man going to them and recording stocks and orders. At Aghaz
the old model is still existence but at foreign key accounts of Reckitt
Benckiser automated orders are generated through softwares.
The government accounts of Reckitt Benckiser do not have
softwares installed so they require a sales man going and taking
orders. Which is given same time, equal to normal accounts.
What differs between key accounts and normal account is the time
dedicated to meetings deciding deals, incentives, shelf space etc.
Orders are automated but prices and promotions need to be
decided. As key accounts are major accounts and negotiating with
them is a difficult job, time is needed to be dedicated.
We even asked Mr. Salman Tariq about how to make a sales call
most effective. He said you must have read the usual model for an
effective sales call. But in my opinion for key accounts prior
preparation and knowing their needs is most important. For example
we know that Metro is famous for bulk buying, so we offer incentives
and deals accordingly.

SKILLS AND TRAINING REQUIRED:

According to Mr. SalmanTariq all sales person required special
training and skills for eg communication skills, negotiation skills but

the Key Account Manager is one step further than a area sales
manager. He require one step further training and working skills, the
reason for that is key accounts are not a easy customers to handle
because they also desire more from your side. And it is very difficult
for a company to entertain all the key account holders at the same
time.

According to Mr. Salman Tariq key accounts requires customize

attention, customize strategies and customize discounts and
importantly structured negotiation techniques. The one skill which is
essential for the key account manager at Reckitt Benkizer is
Negotiation skills, according to Mr. Salman Tariq this is the utmost
requirement, as already mentioned that key accounts always ask for
more, so to tackle them and get what
you want from them keeping them
happy is a challenging work, and this
is
beauty of this work and key account
manager at ReckittBenkizer are
going their work quite efficiently and
effectively. He added an example
that, for a special promotion at
hyperstar you gave them discount of Rs 2000/= on your product but
hyperstar wouldnt be happy they will ask for more,so here the
negotiation skills come, you sit with them try to find some solutions
and if there is a deadlock than you said that there is Rs 2000/= lying
on the table for a limited time if you agree than okay if not then I will
invest this somewhere else. Moreover he also mentioned some more
skills which are essential for a key account manager. According to
him we cannot a hire a fresh graduate or a person with a less
experience, people with high experience are pit in this place and
how understand this side of business closely, who have work in this
field in past. These people are highly trained on these skills, for e.g.
Imtiaz manage by only one person, but hyperstar is being looked by
the complete trained team. For all key account holder we have

different techniques and skills required to get the work done and it
depend upon the size, customer traffic of that key account, as
mentioned that Imtiaz is being looked by only one person and
hyperstar by the complete team. For the area sales manager, key
account manager is a next step. Key account management teams
are given special negotiation skills.

INCENTIVES/DISCOUNTS TO KEY ACCOUNTS

CUSTOMER:
Discounts and incentives offered to key account customers varies
from each other, it depends upon the size of key account and
customer traffic. We cannot
have good visibility
everywhere we need to
choose between the best
location. Two big stores
should at least be targeted
for the good visibility, Reckitt
Benkiser invest more in hyperstar for the good visibility, we hardly
see and visibility at metro. He also mentioned that we consider
Imtiaz as our big account in terms of sales but we give more priority
to hyperstar for promotional stuff because of customize customers.
Place like aghaaz, shaaz, Imtiaz we prefer to give discounts on lets
say 250 ml bottle of Harpic but in hyperstar we would like to give
discount on 750 ml bottle of Harpic, because of the customer traffic
there and the type of customer visit there, this thing also matter as
to give what type of discount to what account. But as compare to
retailers and wholesalers we give high discounts and incentives to
these key accounts because bulk buying is witness there, customers
buy products in bulk for their monthly grocery.

SHELF WARS:
Almost every company every
brand targets this big places
and desire to make them their
key account. Thousands of
products are there in these
places, so this gives rise to shelf war. Everyone wants the best
location to keep their products, so according to Mr. Salman there is a
three way war, one between the products of ReckittBenkizer,
secondly with competitors brand and lastly with the key account. its
like a triangle. For example in hyperstar every company desire to
get the most favorable promotional slots, and they cannot make
everybody happy a same time, so what actually happens that, we
splay it very sharply for example we have promotional strategy for
dettol like buy 2 get 1 free. We cannot put this strategy to
everywhere because it is not feasible for the company, so if we put
this strategy only on metro so hyperstar and Imtiaz will not be
happy with us and we cannot afford this, so we negotiate with all our
key accounts like if you give this slot to us so we will give offer to
you first, and than we have an agreement with them like in June this
offer will be in Imtiaz and in July this will be given to hyperstar.

PROBLEMS FACED TO MANAGE KEY

ACCOUNTS:
When we ask him the question about the problems faced due to
shelf war, so he replied I will not say this that these are the
problems, these our the challenges for us and every sales person
enjoys the challenges whether he is the salesperson of
ReckittBenkizer or the salesperson of uniliver. To achieve this
challenges we use structured negotiation techniques, build strong
relationships with our key accounts, persuasive and highly dedicated
team, and deliver the best service and offers to key accounts as
they requires customize attention, discounts and strategies,
ensuring the supplies on time.

KEY ACCOUNT MANAGEMENT:

Six Components of Defining Key Account Management
1. Viewing key accounts as separate from those that are simply
large accounts in terms of revenue.
2. Limiting the number of key accounts, and protecting
vigorously from uncontrolled and ill-advised key account list
growth.
3. Pursuing key accounts as institutional partners such that you
build innovation and value together, becoming deeply linked
to each others future.
4. Allocating key account focus on three core topics:
penetrating, expanding, and protecting accounts from
competition.
5. Viewing key accounts as assets that require continued, and
often significant, investment to yield maximum returns.
These investments often include structuring and aligning
your business processes and systems to maximize account
value.
6. Viewing key account investment returns as tied to long-term
business strategy.

THE DIFFERENCE BETWEEN KEY ACCOUNT

MANAGEMENT AND TRADITIONAL SALES

OBSERVATIONS AND RECOMMENDATIONS:

It seems Mr. Salman Tariq lacks patience. As he mentioned in the
interview, if the negotiation is taking more time than planned - he
puts the money on the table as a limited time offer and makes a
"take it or leave it" approach. This can be taken very negativelyespecially from the key account holders which the company
values greatly. They may not feel important and may at times
even be offended. Therefore, we'd recommend that a little more
patience is shown with key account holders and more time is set
aside for negotiations. He could also mention that the offer being
made is for a limited time along with the benefits of making an on
the spot decision while at the same time avoiding a "take it or
leave it" approach.
As mentioned by Mr. Salman Tariq, the organisation avoids hiring
fresh graduates or a person who lacks high level of experience.
The organisation may consequently be missing out on creative,
unique and "out of the box" thinkers. The young generation of
today sometimes is able to think differently and come up with
new ways and ideas that haven't been used in the past.
Therefore, it is recommended that the organisation considers
fresh and people and even those without high level of experience
as they may comprise of a charismatic personality and a creative
mind which if groomed correctly could lead to loyal employees
who contribute a great deal to the success of the organisation. It
would also be beneficial for Reckitt Benckiser if they would
consider stores like Imtiaz as part of their key accounts, in our
opinion. This is because it is a growing business and with an
increasing consumer traffic; thus, it has great potential and
should be utilized before some other company takes up the
opportunity.
Lastly, it is recommended that the organisation keeps an eye on
the number of key accounts that it caters to, because key
accounts require special attention and care and need to be
managed efficiently.