You are on page 1of 23

m 


m  


    
    
 

R 
Reckitt Benckiser's objective is to generate
above industry average profitable growth
by:
Ȉ Focusing on building the power brands in high growth
categories
Ȉ Geographic expansion of the portfolio
Ȉ Continuous innovation
Ȉ Higher investment in brand building
Ȉ Margin expansion and cash conversion to fund
reinvestment in core brands and to grow returns to
shareholders.
Ȉ Selective add-on acquisitions
|  | |
Some uncontrollable situational factors that are faced by the Reckitt
Benckiser and Dettol soap are as follows,
Ȉ 
: Although the demand for Reckitt Benckiser products is very
high but when we talk about the demand of the Dettol soap the demand is
growing in the antibacterial category.

Ȉ   There was no direct competitor of Dettol soap at the time


of launching but today; two brands are directly competing Dettol.
Safeguard (P & G) and lifebuoy (Unilever) are direct competitors

Ȉ  these are the uncertainties that are extremely variable


in the political conditions of India. Constant political instability does affect
the company in terms of building new relations with new governments all
the time.

Ȉ  
  : the company has to be very careful in the
implementation of its promotional campaigns
›  

In the mind of the consumer, anti-bacterial soap
should have the following:
Ȉ A product whose core function is to clean skin, making
it softer and smoother, while leaving a feeling of
freshness behind. Good perfume and foam combine to
deliver this freshness experience.
Ȉ Like Dettol has given itǯs slogan of DzDettol protects
against a wide range of unseen germs, including
bacteria and virusesdz
Ȉ  
   !"  !
 !#
Ȉ $%  &!$'%#

  

As per my point of view:


Ȉ All Hospitals of the City or Town
Ȉ All Hotels of the City or Town
Ȉ All School or Colleges of the City or Town
Ȉ All Restaurant of the cities.
  | ^


Ȉ RB is conscious of the changing consumer


needs and trends and is constantly
conducting market research to assess
opportunities and threats. Quality of the
product is the number 1 priority as well
as research on new variants. The next
planned variant is Dettol Herbal soap.
› ( )*+
Ȉ In India, soaps are available in five million retail
stores, out of which, 3.75 million retail stores are in
the rural areas. Therefore, availability of these
products is not an issue. 70% of India's population
resides in the rural areas; hence around 50% of the
soaps are sold in the rural markets.

The major players in Soap market are HLL, Nirma,


P&G and RB.
Ȉ The overall soap market is growing by 10 % while
the antibacterial segment is growing by 7%. Hence,
there is a lot of potential in the market for growth
and additional brand penetration and brand building.
`(›,( 
 *+
Ȉ Dettol soap is a brand of Reckitt Benckiser
India Ltd and it has been operating in India
since 1933. Dettol is the leader in the antiseptic
market with 85 per cent market share.
Ȉ  is the No. 1 antibacterial soap
worldwide; it is the only bar soap registered
with the FDA
Ȉ $% is one of Unilever's oldest brands.
Lifebuoy has a market share of 16 %.
(,,(-
 
 *+
Ȉ Based on the competitive analysis, Reckitt Benckiser
found out that there are a lot of opportunities which will
help the New Dettol soap capitalize a greater market
share.
 hxtensive Market Growth
 Market Penetration and Market hxpansion.
 Achieving High Gross Margins
 High Customer Services and Satisfaction
 New Product Development and hntrepreneurship.
For hx.
New Dettol Fresh
[Stay Protected, Saty
Fresh with new Dettol]
,(-`(..
The product is offered in 5 variants (2 skus Ȃ
115 Gms and 70 Gms):
Ȉ Original: Contains essence of the Dettol antiseptic
solution
Ȉ S! : Contains moisturizer for Skin care.
Ȉ : Contains Active cleaning agent for Active
cleaning.
Ȉ : Contains Fresh scent for a Fresh feeling.
Ȉ  : Contains Skin-friendly ingredients for
Sensitive skin.
,( (  

m    

Ȉ Dettol is positioned as a premium brand which the


mother chooses for 100% protection against all germs
and bacteria for her family.

m      m



  
Ȉ The primary positioning vis a vis product attribute is
that Dettol Soap has the essence of Dettol Solution, the
no. 1 antiseptic brand in the world trusted by families
everywhere for over a century.

m  
    
Ȉ As Dettol is a premium brand, it is priced at a premium
to its competitors (Safeguard and Lifebuoy).
,`  

m
  
    
Ȉ Dettol soap is priced at retail price of Rs. 38.00 (115 gms)
and Rs. 26.00 (70 gms) which is at a premium of Rs 3 and
Rs. 2 to its competition (Safeguard and Lifebuoy).
    
Ȉ RB give a special trade offer on Dettol Soap of 2% during
the summer season so as to push to product into retail and
an additional discount of 4 % to wholesalers to maximize
loading in the channel and improved distribution when
demand (consumer pull) is maximum.
Ȉ In addition, for the months of June to August Ȃ RB runs a
special consumer promotion pack of three Dettol Soaps (in
one package) with a Rs. 19 price off on a purchase of three
soap bars.
 /-(  

  |   | 


m 
There are 2 primary channels of distribution for Dettol soap:

$$$*
Ȉ The company sells the products to its appointed distributors and sub
distributors that are responsible for the distribution of pre-defined
geographical areas who distribute it further to wholesalers and/or
retailers.

0%1% 2
Ȉ The company provides direct delivery to select large customers like
institutional buyers of key accounts which sell directly to the consumer
or to small retailers / end-consumer.
m  

Ȉ The five variants provide an ideal


product mix in terms of consumer needs
i.e. Original with Dettol Solution, Skincare
with moisturizer, Active with active
cleaning agent, fresh with fresh scent and
Sensitive for sensitive skin. A new launch
of Dettol Herbal Soap, which takes the
tally of soaps to six variants.
3  ,(›((
 

   | 
 |m
Ȉ DzReposition Dettol soaps range as a preferred everyday use
solution for the whole familydz

`(››-` ((/4`3
Ȉ Announce new & improved Dettol soap.
Ȉ Protection against a wide range of unseen germs (including
bacteria & viruses).
Ȉ Better experience (lather / perfume / feel-on-skin).
Ȉ Show all 5 variants of new Dettol soap.

`
  `(*

     
3 
DhTTOL prefers TV because of their philosophy that; DzHhALTH
AND HYGIhNh ALWAYS COMhS FIRST.dz
""567 30
$     "#
Ȉ › , +31over 12 minutes per channel per day2
Ȉ › , + (
Ȉ , 3 ›
Dettol soap has a very aggressive approach in print
advertising with the launch of the new Dettol soap ads appear in
almost all the leading newspapers around the country e.g. Times
of India, Dainik jagran HT etc.

/-
Dettol soap is a Rs 1 billion brand annually and so the marketing
budget allocated to it approx 20 % of total Net revenue.
For the year ǥ.. April 2010 to April2011

 :-
Main target for the year is Hospitals, Hotels
and Big colleges. For them
we going to road shows.
Distribute Free Sample.
In case of Hotels we offer them discount on
our best selling price. Or we offer them 4%
discount on product for whole year, which
we offer to our whole sellers.
Ô
 
Ȉ In case of advertisement..
0% !#, 
0%
For Shows 40,000 (3 times) 1,20,000

For sample 10000 (6 times) 60,000


distribution
For Kiosk/ cafe 20000 (3 times) 60,000

TOTAL --------- 2,40,000


  

For the Yearǥ


Ȉ In 1st Month we are going to advertise
in all targeted areas.
Ȉ But after 1st Month our target is at
least 10 Hospitals/Hotel/Institutional
area per month.
Ȉ It means in whole year our target is
near about 100 to 150 institutes. Which
are ready to use only Dettol products.
 
`! -" - , 
! % 1 
2
Hotel (100 Soap: 100 Soaps: 1100 19.20 Rs. 21,120 Rs.
rooms) units Liquid: 1650 38.40 Rs. 63,360 Rs.
Liquid: 150
units
Hospitals Soap: 200 Soap: 2200 19.20 Rs. 42,240 Rs.
units Liquid: 2200 38.40 Rs. 84,480 Rs.
Liquid: 200
units
Institutes Soaps 50 units Soap: 550 19.20 Rs. 10560 Rs.
Liquids 50 Liquid: 550 38.40 Rs. 21,120 Rs.
Units
Total ----- Soap: 3850 ------ 2,42,880 Rs.
Liquid: 4400

This is the estimation of only one institutes of every segmentǥ.


       

Ȉ Total hxp. On the Advertisement in a yearǥ
(Rs. 2,40,000) + hxtra hxpenses (Rs. 60,000)
Ȉ Income of the year ǥ From 3 institute
average income (Rs. 2,40,000), Our
estimation for sale is 50 to 60 institutes.
So income is (2,42,480 * 50 =
1,21,24,000)

Profit = 1,21,24,000 Ȃ (3,00,000 +


Manufacturing cost)
 
 
Ȉ |

  
Lets assume for Soap its 18 Rs.
Liquid its 36 Rs.
Then Total unit
Soap: 3850*50 = 1,92,500*18 = 34,65,000
Liquid: 4400*50 = 2,20,000*36 = 79,20,000
Total Manufacturing cost :
34,65,000 + 79,20,000 = 1,13,85,000
m

1,21,24,000 Ȃ (3,00,000 + 1,13,85,000) =
†  
======================



You might also like