Reckitt Benckiser (RB) has a product mix consisting of 4 product lines - Health, Hygiene, Home, and Portfolio. The product mix includes over-the-counter medicines, cleaning products, and some food brands. RB focuses on 19 Powerbrands which make up 70% of revenues. The company's marketing strategy is to invest heavily in brand marketing through education programs to build brand equity. RB targets both developed and developing markets with campaigns tailored to each. Competitors include Unilever in home care, P&G in hygiene, and Dabur in health care.
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Product Mix
Reckittt
Benckiser
Health
Strepsil
Mucinex
Nurofen
Gaviscon
Durex
Dr. Scholl’s
Cepacol
K-Y jelly
Suboxen
Lemsip
Aerogard
Airborne
Bonjela
Hygiene
Lysol
Dettol
Calgon
Cillit Bang
Harpic
Vanish
Braso
Cepacol
d-CON
Glass Plus
Mr. Sheen
Home
Airwick
Mortine
Harpic
Amphyl
Glass Plus
Mr. Sheen
Sani Flush
Woolite
Portfolio
French’s
Mustard
Frank’s
RedHot
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Basis of Product Mix
Product mix refers to the complete range of products present within a
company. RB’s strategy is to have a highly focused portfolio
concentrating on its 19 most profitable brands, which are
responsible for 70% of net revenues.
The product line is a subset of product mix & generally refers to a type
of product within an organization. RB has 4 product lines namely
Health, Hygiene, Home and Portfolio (including Food).
The total number of products in all product lines form the length of
the product mix. Currently, RB has a worldwide product length of
35[1]
Width of the product mix is equal to the number of product lines &
is 4 for RB.
Consistency of the product line is moderate, as not all products
are closely related within the product lines.
Consumer perspective
From consumer’s perspective, the product mix focuses mainly on Over-
the-counter medicines, Domestic and commercial cleaning solutions,
some specialized cleaning products like Woolite, Glass plus and Dettol.
Some products fall into more than one product lines , like Dettol(health
& hygiene ) and Harpic (Home & Hygiene).In this report, classification
is as per the annual report of Reckitt-Benckiser.
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Marketing Strategy
RB invests disproportionately in high-potential markets (16
Powermarkets) and its faster growing brands (19 Powerbrands).
Their product mix doesn't rely on any one market or brand
for an overall broad based growth of the company. RB focuses
on underpenetrated markets to satisfy particular needs of the
customers through their products.
To drive growth, RB's marketing strategy is to invest heavily in Brand
Equity Investment (BEI) through penetration-building and consumer
education programmes. This helps them create a favourable, unique
and strong brand image in the minds of the customers while focussing
on their mission – Healthier lives Happier homes.
Dettol invests in many educational
programmes around the world
teaching young school age children
about healthy hygiene habits. RB
makes its programmes fun,
engaging and interactive for the
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children.
For instance: In China, they helped break two world records, working
with Save the Children and the local health campaign committee in
Anhui province. 2,571 children created a new record for the longest
handshake chain. Adult volunteers also joined in the fun, with 366
health volunteers setting a record for the most participants in a hand
washing relay.
RB also works with charities and NGO’s to health care professionals
such as paediatricians and midwives and various governmental
organisations in over 40 countries around the world to reach new moms
and inform them on basic yet powerful healthy hygiene habits to protect
the health, not only of their new arrival, but their whole family. Within
South Africa, Dettol has reached over 3.5 million moms in both the
government and private health sector, informing them of these basic
hygiene habits.
RB India is using jingles like “Dettol Dettol ho” to remind as well as
teach people about the habit of hand washing. Taking a break from its
signature visual imagery of mothers and young children, RB India is
now using campaigns that feature men and women across age groups at
outdoor locations like fairs, weddings and railway platforms.
RB launched the Harpic All-in-One Toilet Solution Campaign in
Nigeria. Based on consumer preferences through research, it identified
a special celebrity (Helen Paul ) whose character is congruent with its
brand. They started the Harpic All in One Challenge where she put
traditional toilet cleaning methods to the test to prove Harpic efficacy to
consumers through Mystery Home visits as well as other door- to- door
activities.
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Competitors
HUL – home care
product line
P&G – hygiene
care product line
Dabur – health
care product line
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Strengths
1.Its brands are of use to every
society,region,religion or sect..
2.RB 's prooductsmeet under-served demands
giving it a sustaianble competitive edge.
3.RB operates in higher margin markets like
health which gives it room to invest in
innovation and in building brands.
4.Its brands enjoy a socially responsible brand
image, firmly ingrained in the minds of its
consumers. For instance, the penetration-
building initiatives within Dettol and Harpic
support the Government’s health and
hygiene initiatives in India. Similarly, Durex
and e-commerce driven initiatives have led
the growth of its brands in China.
Weaknesses
1.Uneven distribution of
benefits
2.Since Rb operates in
underpenetrated markets,
extensive marketing is
required in the form of
educational campaigns etc
to educate the customers.
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Financial Analysis
On an Average,20.6% of the previous year’s revenue was spent in advertising alone each year.
In 2015,74% of the revenue came from Health and Hygiene Alone . Power brands are the cash
cows of RB.
0
2
4
6
8
10
12
14
2011 2012 2013 2014
Ad costs and Net revenue for RB
Ad.costs worldwide(billions) Net Revenue(Billions USD)
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2011 2012 2013 2014 2015
Yearly revenue in Millions GBP
Health Hygiene Home Portfolio
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References
[1] WEBSITE,WIKIPEDIA.ORG.
[2] ANNUAL REPORT AND FINANCIAL STATEMENTS,RB GROUP,2015
[3] ANNUAL REPORT AND FINANCIAL STATEMENTS, RB GROUP,2014
[4] ANNUAL REPORT AND FINANCIAL STATEMENTS GROUP,2013
[5] ANNUAL REPORT AND FINANCIAL STATEMENTS, RB GROUP,2012
[6] ANNUAL REPORT AND FINANCIAL STATEMENTS, RB GROUP,2011