ORGANIZATION PROFILE

1.1. History of the Organization

Fig 1. Reckitt's logo since 23 March 2021

The company was incorporated on 5 th July , 1951 in Calcutta. The company manufacture
ultramarine blue food products, antiseptics, polishes cosmetics and pharmaceuticals. The
Company took over the manufacturing assets and manufacturing operations of Atlantic (East)
Ltd., a company in the Reckitt & Colman group incorporated in England, trading in India in
1934 and established new facilities for the manufacture of several household, pharmaceutical,
food and toiletry products. In 1969 Atlantic (East) Ltd., was amalgamated with the company
as from the close of business on 30th April, whereupon the Company also acquired the trading
activities of the amalgamated company. The Company was a wholly owned subsidiary of
Reckitt & Colman Ltd., U.K. The company owns three factories situated at Dhadka, Chetla
and Behala of which the one at Dhadka is reported to be one of the world's largest ultramarine
blue factories. In 1996 the Company launched Lizol, Woolite, Dettol Shaving Cream and Gel
and Harpic Flushmatic which received good market response.
The company made major investments in creating capacities for the manufacture of mosquito
coil. The Company also invested substantially in the area of information technology and
communication systems which would help in increasing the productivity, reduction in cost and
achieve higher growth. During 1997 a joint venture company viz. Reckitt Piramal Ltd. was set
up with Reckitt and Colman Plc. and Nicholas Piramal India Ltd. to create a unique force in
India by combining the focussed marketing of both the companies OTC brands. Reckitt &
Colman India is to hold a 20 per cent stake in Reckitt Piramal India Ltd, a joint venture with
Nicholas Piramal India Ltd. (NPIL). Its British parent Recikitt & Colman Plc and NPIL will
each hold 40 per cent of the company's Rs.10 crore equity. Reckitt & Colman is close to a deal
to acquire from Knoll (India) the well known burns and antiseptic ointment Burnol. Reckitt &
Coleman of India Ltd. (RCIL) has acquired the brand `Colin', a glass and household cleaner,
from Fernhill Laboratories & Industrial Establishment.
The Company has launched `Cherry Blossom Handyshine' in a new compact case with a
neutral polish that can be applied on any colour leather. The Company launched its
internationally popular Calgonit range of automatic dishwashers in India. The Company
changed its name to Reckitt Benckiser (India). The firm is a unit of Anglo-Dutch consumer
products group Reckitt Benckiser. Vanish, a stain-removing brand of Reckitt Benckiser, has
entered the Indian market. In 2001 Reckitt Benckiser, the Indian arm of billion Reckitt
Benckiser Plc, has launched two new versions of its 24-year old brand Dispirin for various
therapeutic usesReckitt Benckiser 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 (india) Limited is an Indian Non-Government Company. It's a public
company and is classified as'company limited by shares'
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 and Scholl's footcare products, in a £2.5 billion
deal.
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.
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)

Reckitt Benckiser

Type Public limited company

Founded 1814,1938 by merger of Reckitt & Sons ana J&J Colman

1999 by merger of Reckitt & Colman and Benckiser

Headquarters Slough England, UK

Key people Christopher A Sinclair (chairperson)

Industry Consumer goods

Products Cleaning products, healthcare, nutrition

Revenue  £13.993 billion (2020

Operating £2.160 billion (2020

income

Net income   £1.203 billion (2020

Employees 40,000 (2021)

Website www.reckitt.com

Vision
Reckitt Benckiser delivers better solutions in household, health and personal care to
consumers, wherever they may be. They do it through constant innovation. They look at the
little things that drive people mad in their everyday life. Then They deliver brilliant, fast-
acting solutions that help make life better and easier - and create outstanding shareholder
value in the process
Mission 
To make a difference by giving people innovative solutions for healthier lives and happier
homes. This means They are expanding Their capabilities and investing in innovation to stay
ahead of the game
In 2009, CNBC named Bart Becht, CEO of RB, as European Business Leader of the Year.
This award is given to the leader of a company that has delivered outstanding performance
and results. Reckitt Benckiser is sponsoring the new Brand Innovators award recognizing the
best of innovation within the industry. It will reward an idea, product or a brand that can
demonstrate new thinking in a specific sector and can boast significant success. The
innovation may be related to a new brand; the rejuvenation or repositioning of an existing
brand; brand extension; or innovative marketing campaign and will be measured in sales
figures, early market share figures and a description of how the market had to respond to the
idea

1.2. Business Process of the Organization

Reckitt Benckiser is a global force in household, health and personal care products, delivering
ever better solution to consumers opportunities to develop a rewarding career at the very
forefront of FMCG. Their offer is simple - bigger, better and more competitive. Backing up its
Power brands is a great portfolio of local hero brands. It operates in no fewer than 60
countries, while its brands are sold across 180. Its people are the power behind these brands -
around 23,000 talented, driven and entrepreneurial individuals, all working together the
company's strategy is to have a highly focused portfolio concentrating on its 17 most
profitable brands, which were responsible for 62% of net revenues in 2008. 35% of net
revenues come from products launched in the past three years, this focus on innovation was
recognized by The Economist Corporate Use of Innovation Award in 2009 it’s success is led
by ITS Power brands big-name brands like Finish, Vanish, Dettol and Veet that aim to
achieve global market leadership. Through them it has become No.1 in the vast majority of
markets and categories in which it compete.

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 First, Reckitt Benckiser aims to focus on B2C and marketplaces with an emphasis on
driving scale and efficiency

Reckitt Benckiser currently produces the following products:

 Vanish  Bonjela

 Calgon  Brasso

 Woolite  Brio

 Lysol  Bryza

 Dettol  Calgonit

 Durex  Cattlemen's

 Scholl  Ceraclen

 Cillit Bang  Cherry Blossom

 Harpic  Clean and Smooth

 Finish (previously Electrasol in North America)  Cling
 Air Wick  Cling Free
 Mortein  Cobra Brilliant Shiner
 Strepsils  Colon
 Mucinex  d-Con
 Nurofen  Coral
 Gaviscon  dip-it
 Veet  Disprin
 Clearasil  Dosia
 French's  Easy-Off
Other  Easy On
 Elena
 Aerogard  Frank's Red Hot
 Amphyl  French's Foods
 Glass Plus  Perk
 Glassex  Poliflor Pratic
 Hoffmann's  Poliflor Maximo Brilho
 Intima Liasan / Intima Bidex  Precision Blend
 Kalia  Quanto
 Kaltron  Resolve
 Lanacane  Rid-X
 Lanacort  Robin Blue
 Lanza  Sagrotan
 Lemsip  Sani Flush
 Lewis Red Devil  Senokot
 Lime-A-Way  Silvo
 Lovela  Sipuro
 Masterpiece Metalist  Spray 'n Starch
 Mop & Glo  Suboxone
 Mr. Sheen  Vani-Sol
 Mr. Min  Vitroclen
 Nenuco  Vivid
 Neutra-Air  Wenol
 NoSalt  Windolene
 Noxon  Wizard
 Nugget  Yes
 Nurofen for children  Zud
 Old English
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.

A responsible approach across our global value chain

“We’re developing impact measurements throughout our value chain, with a goal of assessing
every single step to ensure that we, our suppliers and our suppliers’ suppliers are living up to
our values and standards”
These are the key areas within our value chain where we believe we can make the most
positive and long-lasting contributions
 Transparency and traceability
 Safeguarding the human rights of people throughout our value chain
 Protecting ecosystems
 Reducing environmental impacts
 Animal welfare , Partnerships to help deliver impact and scale

1.3 Customers of the Organization

Here the customer pull strategy is such a device where the distribution people are to depend on
“the natural demand” for Reckitt’s product at the retail level. That is if the retailers want a
high volume of products then Reckitt can generate high-scaled revenue.Here the key
challenges they face are divided into two teams that is the distribution people and the brand
team. The key challenges both the group faces are as follow:

 To create natural demand.

 To ensure visibility at point of sales (POS).
 To influence trade to be Brand Ambassador for RBBL products.

Forms of Distribution: There are two forms of distribution in Reckitt Benckiser Bangladesh
Limited

  Direct distribution.

  Indirect distribution.

Direct Distribution

            In direct distribution process Reckitt Benckiser (Bangladesh) Limited has full control
over the entire supply chain ranging from depot down to the point of sale. Here RBBL
practice direct coverage policy. The benefit direct distribution is to retain ownership and
control over supply chain.

Indirect Distribution

            The control mechanism of indirect distribution passes to the wholesaler to ensure that
the product is available at retail level. Indirect distribution is where RBBL don’t have full
control of the entire supply chain. Indirect distribution is playing the role of passive
distribution. In passive distribution one wholesaler is selected in a remote trade area and is
given a certain profit margin. The percentage depends on the following factors such as:
 Distance of the market.
 Area coverage.
 Sales growth.
 Reputation in the market.
 Financial solvency.
 The rationale to adopt the indirect distribution strategy is:
 To minimize the distribution cost.
 When the outlet universe is big and fragmented.

Defining market as the prerequisite of distribution planning:

Market can be defined based on:

Administrative structure, whether the company has direct control over the market or out of
it. Economic profile, the consumption pattern and the economy of that particular market
area. Geographic nature, the geographic characteristic of the particular market. Such as
Chittagong hill tracts, plain land markets are of Khulna. Reckitt Benckiser Limited defines its
market in following ways: Urban market: Urban market is based in metropolitan city and all
the district head quarters. Sub-Urban market: Sub-Urban market is based on all the Thana
head quarter.  Rural market: market based in beyond Thana head quarter. For example, unions
and bazaars.

Urban and Sub-Urban market: 

1. Urban market accounts for more than 50% of the business for Reckitt Benckiser
(Bangladesh) Limited.
2. Disposal income is much higher than rural market.
3. Density of population is much higher than rural area.
4. Consumers are more critical as they are better informed.
5. Consumers tend to follow the life style of capital city. Here capital sets the trend.
6. Developed infrastructure.
7. Easy access to electronic media.

Distribution Strategy for Urban and Sub-Urban Market:

1. Route planning is very critical. The responsible person who has expertise regarding the
traffic routes of that area makes the route plan. Sometimes it is done with the negotiation of
the responsible groups. But 3 factors should be kept in account always.

 Cost effectively.
 Traffic jam free routes.
 Highest area coverage.
 Distributors sales representatives should not be over burdened.
 Engage a mix of top and medium performers

2. Right service frequency for each route based on the 80-20 theory. It means high volume
contributory routes should have higher service frequency. If required, additional service
during the peak season or any occasion e.g. before Eid and shab-e-barat.

3. Close supervision on distribution services by launching Customer satisfaction measurement

(CSM).
4. Ensuring distribution even in by-lines within the urban / semi-urban base market.

5. Outlet survey should be conducted in every November as the off pick season starts from the
month of November.

 Rural market:

1. Completely different life style than urban areas.

2. Infrastructure is yet to be developed in many rural areas.
3. Relatively less critical consumers.
4. Access to electronic media is Limited. So point of sale is the key source of brand
awareness.
5. 62% of outlet universe belong to rural markets.

Distribution Strategy for Rural market:

Distribution channels are completely different in rural markets. Rural market is the future
source of this business so companies should give extra emphasis.

Rural market penetration: Market prioritization is made through some approaches

Spot light approach:

Spot light approach is used through long-term analysis of some factors as

 Distribution network
 Performance of present distribution network.
 Manpower.

Now the grading colors of spotlights and their criteria are mentioned bellow:

      Green: Good distribution network

      Yellow: Where RBBL have distribution, but not up to the satisfactory level.

      Red: Where RBBL have no distribution or have an extremely poor distribution. (Covers
only highways with very low frequency).

 Red and yellow markets are selected for RMP-distribution drive.

Outlet classification: outlets are classified on the basis of the following factors, the
classification along with the factor are given bellow:

Channel:

 Traditional grocery.
 Departmental or general stores.
 Modern trade.
 Specialist (Hardware, pharmacy, cosmetics stores.).
 Non-retail channels. HoReCa (Hotels, Restaurants and Café.) Institutions, saloon,
beauty parlors and ladies hostel.
 Quality:

 High quality
 Normal quality.

Volume:

 Big outlets (Consisting of sales volume more than 2000 Taka of RBBL product per
month.)
  Small outlets (Consisting of sales volume less than 2000 Taka of RBBL product per
month.)

Market Positions Held By Different Categories:

 Market leader in pest control with Mortein coils, Mortein Mats and Mortein Liquid.
Mortein Aerosol holds the 2nd position in the market after the ACI aerosol.

 Market leader in Lavatory care with both Harpic power and Harpic total.

 In the Antiseptic category, Dettol liquid holds the 2nd position with 30% market share after
Savlon the market leader. The Dettol anti bacterial and skin care soap accounts for only
2% market share.

  In the Analgesic category, Disprin is the market leader in the Asprin market holding 68%
market share. Disprin CV 100 is the market leader in the market of cardiovascular
medicines. But Disprol, which is a variant of Paracitamol, holds only 1% of the market
share.

 Market leader in specialty care with Mr. Brasso holds approximately 80% market share.

 Market leader in the Barley Market with Robinson’s Patent Barley with 100% market
share.

    Market leader in the Fabric Care category with Robin liquid blue and Robin Powder blue
holding 50% and 35% market share respectively.

 Market leader in Dishwashing Liquid with Trix.

 Air Care consists of a very insignificant share of the market.

                    

1.4-COMPETITORS OF THE COMPANY

Top Competitors of RB
 Unilever.
 SC Johnson
 Procter & Gamble.
 Kao Group.
  KIK.
 McBride.
 Dial.
 Melaleuca.

COMPETITORS OF RECKITT BENCKISER IN THE MARKET

Name Last Price Market Cap. Sales Net Profit Total Assets
(Rs. cr.) Turnover
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

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.

1.5 Strategies of Reckitt Benckiser

BUSINESS STRATEGY

Beating the competition

The company’s financial figures speak for itself. Year after year it has consistently delivered
the fastest growth in its sector. In fact,it was the eighth consecutive year in which it
outperformed the market. Since 2000 it has doubled net revenue and quadrupled market
capitalization. Over the past five years its shareholders have received a return of around 200%,
against a market average of 22%.

Targeting growth
This is no accident. It’s the result of a clear, consistent and highly successful strategy. It focus
heavily on markets with significant growth potential. For example, it invest heavily in the
relatively new Automatic Dishwashing category rather than in the congested Laundry
Detergent category. Instead of investing in generic soaps and cleansers it specialize in the fast-
growing Young Skin Care category.

Innovation - our winning formulas

Within these fast growing categories it invest disproportionately in its 17 Power brands. 14 of
these 17 are now No.1 or No.2 worldwide. It top the league for its rate of product innovation -
nearly 40% of revenue comes from innovations launched in the last three years. That’s helped
it achieve like-for-like revenue growth of around 7% every year - at the top end of the
industry. In fact, since 2000 it has consistently outperformed its industry peer group

Eliminating waste
The company continue to work relentlessly on its margins, always looking for ways to manage
costs. It makes a real difference - enabling it to turn an average sales growth of 7% into a 17%
growth in profits over the past five years.

MARKETING DEPARTMENT:

 Major Functions of the Marketing Department:

Marketing is the key department of Reckitt Benckiser Limited. This department is
basically responsible for annual planning for the brands of the company. After the
regional and global headquarters approves the plans, marketing department decides
how it will be implemented. They decide on how the brands will move, in what
quantity they must be sold, how much should be invested on each brand and other
related aspects. Besides, marketing department also take care of the stages in the
product life cycle of each product as well as takes strategies for further improvement.

Other functions of marketing department are

 Gathering information and measuring market demand.

 Positioning the market offering through the product life cycle,
 New product development.
 Managing product lines and brands.
 Designing pricing strategies and programs.

SALES DEPARTMENT:

 Major Function of the sales Department: The three most important functions of the
sales department are

 Set up, maintenance & expansion of distributors’ network.

 Making products available and visible in the market place.

 Boosting In Market Sales.

FINANCE DEPARTMENT:

Major Functions of the Finance Department

The finance department of Reckitt Benckiser (Bangladesh) Limited is divided into

three functional areas:

 Finance and accounts

 Corporate affairs
 Management account and costing

HUMAN RESOURCES DEPARTMENT:

Major Functions of the Human Resources Department

The Human Resources department is relatively small compared to other departments.

The issues in the Human Resources are looked after the HR looks after director and the
administrative matters by the junior administrative officer. The basic function of this
department is to deal with all factors related with human resources like forecasting and
planning selection and recruitment, training and development etc. The various aspect
regarding administration like office security, vehicles, canteen, telecommunication etc.
are also dealt with through this department.

The head of HR is mainly in charge of the department. His/her major responsibilities

are:
  To update organ grams regularly
 To carry out the performance development review.
 Managing the internal and overseas postings.
 Managing the HR Information System.
 Looking after the internship program.

  

1.6-CSR ACTIVITIES

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

Save the Children and the organizers of the Beijing Marathon jointly organized a charity
marathon on 16 Oct 2011. This is the first time since 1981 that the Beijing Marathon has
organized a charitable marathon. Reckitt Benckiser proudly sponsored 9 employees in this
charitable .Our next ambitious goal is to raise a further £6 million which shows our continuous
commitment to the charity.

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 organization, 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 succor to them and make them smile again while they
make gradual return to their normal lives.’’ She appealed to other corporate organizations 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.

1.7-EXPORTS/IMPORTS

Reckitt Benckiser Exports limited is a 100% subsidiary of the company and is engaged in
FMCG exports. The focus of the FMCG exports operation is two-fold; to develop overseas
markets by driving distribution of brands, such as Harppic, lizeol, Dettol to effectively
provide cross-border sourcing of FMCG products to other Reckitt Benckiser companies
across the world. The export turnover of ethnic brands like has crossed Rs 1,000 crore. Reckitt
Benckiser wholly-owned subsidiary India Exports are distributed and marketed among the
Indian diaspora in international markets. Reckitt Benckiser India Exports is engaged in FMCG
exports business with a clear focus to develop the overseas market by driving distribution of
ethnic brands and to effectively provide cross-border sourcing of FMCG products to the
companies across the world.

Reckitt Benckiser has imports from China worth INR 429 crores. The import items include
raw materials and part packing materials. The company is a leading importer of lauric acid and
microcrystalline wax. Reckitt Benckiser mainly imports products to India from Malaysia and
mainly receives the consignment at Madras sea. The other major importers of Reckitt
Benckiser are Brazil, Mexico, the Philippines, Vietnam, Chile, Ukraine, and so on.

The Company is committed to proactively encouraging its suppliers and contractors to

demonstrate responsible business behavior and high standards of business conduct. This
commitment is presently focused on direct suppliers involved in the manufacture, assembly or
distribution of products on behalf of Reckitt Benckiser Group companies, and on those
suppliers /contractors who are actively engaged in work at Company facilities. The
Company’s Global Manufacturing Standard sets out minimum levels of performance and
performance expectations in the areas of working conditions / human rights at work,
occupational health & safety and environmental management, for all suppliers manufacturing,
assembling or distributing products on behalf of Reckitt Benckiser Group companies. The
Company’s environmental and occupational health & safety management systems include in
their scope the activities of suppliers and contractors who are actively engaged in work at
Company facilities

1.8-COLLABORATION AND EXPANSION PLANS

In the future it’ll continue its relentless focus on powerful brands in fast-growing categories.
It’ll keep delighting consumers with solutions to everyday problems. Its people, highly
motivated and well rewarded, will continue to enjoy real ownership of their achievements.
Meanwhile it continues to look for talented, entrepreneurial and dynamic people worldwide
Opportunities range from professionals in sales and marketing, research and development,
supply chain and to experts in information services, finance and human resources.
The company is only looking for true talent: people hungry for the opportunity and freedom to
make their mark. It’s going to be an exciting journey - and you could be part of it.

Future Expectation
This is an intense and very fast-moving environment that will give you the chance to work
with some of the best professionals in this industry. As well as the wealth of commercial
challenges, India is increasingly seen as a source for high-quality talent for the Company as a
whole. Number of exceptional people transfer to other global sites each year. Outside of work
you’ll find no time to be bored either: in India a rich cultural heritage combines with
advances in science and technology to produce a heady mix of tradition and change. In the
midst of this progress and excitement, its people continue to provide strong support to
disadvantaged children through Save the Children initiatives in Kolkata and elsewhere

Reckitt Benckiser is about passionately delivering better solutions in household cleaning and
health & personal care to customers and consumers, wherever they may be, for the ultimate
purpose of creating shareholder value.

This vision defines both Reckitt Benckiser’s purpose and values as a Company and
encompasses the commitment to product quality and safety, customer service, innovation,
global reach and corporate social responsibility

1.9 SWOT ANALYSIS

Strengths in the SWOT analysis of Reckitt Benckiser

Successful brands: Reckitt & Benckiser has a successful portfolio of products many of which

are top selling brands in their respective categories. Some of these include Harpic, Strepsils,
Dettol, Lysol, Clearasil, Mortein, Vanish and Durex. These brands are all household names
and have given the company a very high level of brand equity.

Strategy: Reckitt & Benckiser has been trying relentlessly to move higher than the industry
average in all their categories and build a leading position in high growth portfolios through
ensuring a consistent cash flow in all their products. This is what has helped them build
successful brands.

Global leadership in multiple categories: Reckitt & benkinser has the world’s top brands in
multiple categories. Some of this areHarpic in the toilet cleaning category, Dettol in
antiseptics, Woolite in the detergent category, Lysol in the home cleaning category and Durex
in condoms.

Focus on acquisitions: Reckitt & Benckiser have made some very intelligent acquisitions
focusing primarily on East Asian markets like Japan and China where the company is yet to
gain critical mass. They are also focusing on acquiring small yet successful companies in
areas where they do not have the presence or leading products.

Focus on depth: Reckitt & Benckiser have been focusing on deepening penetration in

existing markets than focus on diversifying into newer product categories. The company has
18 power brands and instead of looking at creating more successful brands they are looking at
using the power of the current success to replicate it in markets where the company has no or
little presence
Weaknesses in the SWOT analysis of Reckitt Benckiser

Leadership problems: Four of Reckitt & Benkiser’s top executives walked out of the
company in Septemeber 2017 indicating that the company could be facing severe leadership
crunch in the following year. The exit of the heads of IT, personnel, marketing and developing
markets simultaneously has affected the goodwill of the company and caused negative
speculations amongst the stakeholders.

Over-dependence on power brands: Reckitt & Benckiser has been focusing excessively on

their 18 power brands and more than 40 % of their sales has been attributed to these brands
many of which were launched in the last three years. This is affecting the culture
of innovation in the company which will work against it in comparison to more innovative
competitors like Unilever.

The takeover of Mead Johnson: Reckitt & Benckiser spent a whopping 18 million pounds to
take over Mead Johnson a company which operates in the infant nutrition domain. This move
turned out to be a disaster since the company did not have any history in the domain of infant
nutrition which is a highly competitive sector in itself

Opportunities in the SWOT analysis of Reckitt Benckiser

Growth in new markets: Reckitt & Benckiser have been ramping up focus on emerging
markets like the BRIC countries and also East Asian countries. The company has been gaining
popularity in these markets and they show a lot of promise in the future especially in the
domain of home care.

Improvement of R&D: investment in the R&D department can increase the possibility of
offering innovative products and may increasing profit as well.

Focus more on selling products in Developed countries: as the developed countries have a
low unemployment rate and the purchasing power of the people is high, it can earn more profit
in those countries.

Globalization: given the opportunities to be functional in more than 60 countries and the
opportunities are increasing because of the functionality of globalization. The revenue is
increasing in Europe, North America, Australia and New Zealand.

Threats in the SWOT analysis of Reckitt Benckiser

Brexit: Companies which have been headquartered in the United Kingdom have faced severe
financial issues because of Brexit and the relatively unstable commodity prices have also
escalated the costs of most products. These have become critical threats to the company.

Competition: The company also faces competition from SmithKline Beecham, Unilever, and
Procter & Gamble.

High unemployment & Low Spending: as the developing countries employment is low and
their spending capability is low as well, RB may experience low sales in those countries.
Changing of technologies frequently: it makes the existing technologies obsolete and may
require more investment in future.

Growing Competition: competition in similar industries are increasing, the competitors are
becoming much stronger.

CHAPTER 2
AN OVERVIEW OF THE INDUSTRY
2.1 HISTORY OF THE CONSUMER GOODS INDUSTRY

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.
Reckitt & Colman sold the Colman's food business in 1995 but still has some food brands.

Benckiser

Johann A. Benckiser founded a business in Germany in 1823. Its main products were
industrial chemicals. Benckiser went public in 1997.

Merger and subsequent developments

The company was formed by a merger between Britain's Reckitt & Colman and the Dutch
company Benckiser NV in December of 1999. Bart Becht became CEO of this new company
and has been credited for its transformation, focusing on core brands and improving efficiency
in the supply chain. The new management team’s strategy of “innovation marketing” – “A
combination of increased marketing spend and product innovation, focusing on consumer
needs – has been linked to the company’s ongoing success”. For example, in 2008, the
company’s “rapid succession of well publicized new product variants” was 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.”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.

The company was incorporated on 5 th July , 1951 in Calcutta. The company manufacture
ultramarine blue food products, antiseptics, polishes cosmetics and pharmaceuticals. The
Company took over the manufacturing assets and manufacturing operations of Atlantic (East)
Ltd., a company in the Reckitt & Colman group incorporated in England, trading in India in
1934 and established new facilities for the manufacture of several household, pharmaceutical,
food and toiletry products. In 1969 Atlantic (East) Ltd., was amalgamated with the company
as from the close of business on 30th April, whereupon the Company also acquired the trading
activities of the amalgamated company. The Company was a wholly owned subsidiary of
Reckitt & Colman Ltd., U.K. The company owns three factories situated at Dhadka, Chetla
and Behala of which the one at Dhadka is reported to be one of the world's largest ultramarine
blue factories. In 1996 the Company launched Lizol, Woolite, Dettol Shaving Cream and Gel
and Harpic Flushmatic which received good market response. The company made major
investments in creating capacities for the manufacture of mosquito coil. The Company also
invested substantially in the area of information technology and communication systems
which would help in increasing the productivity, reduction in cost and achieve higher growth.
During 1997 a joint venture company viz. Reckitt Piramal Ltd. was set up with Reckitt and
Colman Plc. and Nicholas Piramal India Ltd. to create a unique force in India by combining
the focussed marketing of both the companies OTC brands. Reckitt & Colman India is to hold
a 20 per cent stake in Reckitt Piramal India Ltd, a joint venture with Nicholas Piramal India
Ltd.(NPIL). Its British parent Recikitt & Colman Plc and NPIL will each hold 40 per cent of
the company's Rs.10 crore equity. Reckitt & Colman is close to a deal to acquire from Knoll
(India) the well known burns and antiseptic ointment Burnol. Reckitt & Coleman of India Ltd.
(RCIL) has acquired the brand `Colin', a glass and household cleaner, from Fernhill
Laboratories & Industrial Establishment. The Company has launched `Cherry Blossom
Handyshine' in a new compact case with a neutral polish that can be applied on any colour
leather. The Company launched its internationally popular Calgonit range of automatic
dishwashers in India. The Company changed its name to Reckitt Benckiser (India). The firm is
a unit of Anglo-Dutch consumer products group Reckitt Benckiser. Vanish, a stain-removing
brand of Reckitt Benckiser, has entered the Indian market. In 2001 Reckitt Benckiser, the
Indian arm of billion Reckitt Benckiser Plc, has launched two new versions of its 24-year old
brand Dispirin for various therapeutic uses

MILESTONES

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.

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.

1912:- Lehn & 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.

1938:- Reckitt & Sons merge with J&J Colman to become Reckitt & Colman Ltd.

1943:- Air Wick launched in 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.

1965:- Gaviscon accidentally discovered during scientific research.

1972:- Launch of Vanish Stain Removal Bar.

1985:- Reckitt & Colman buys Airwick products.

1991:- Benckiser begins expansion into Eastern Europe.

1994:- Reckitt & Colman acquires Lehn & Fink Products, including Lysol, the famous
household disinfectant brand in the USA.

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

2002:- Reckitt Benckiser acquires outstanding minority interest in India and Sri Lanka.

2005:- Cillit Bang launched in 68 countries in just one year.

2007:- Air Wick Freshmatic launched, creating an entirely new Aircare segment.

Vanish hit the world No.1 spot!

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.

2009:- Reckitt 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'
2.2-BUSINESS PROCESS OF CONSUMER GOODS INDUSTRY

The demands of the products are initially determined through the demand review meeting held
between the sales department and the supply-planning manager from the supply department.
The supply-planning manager then conveys this unconstrained demand to the procurement
and production department. In return the production departments notifies procurement about
the amount that can be produced after an analysis of their production capacity, work force
development etc. procurement also looks at the supply possibilities, availability if the raw and
packaging materials, inventory management, import condition etc.

After the assessment of the unconstrained demand, a supply review meeting is held between
the supply-planning manager, the import-buying manager, the local and co-pack buying
manager and the procurement executive. In this meeting a constrained demand is determined.
Based on this demand the raw materials are ordered locally or imported. The production
department and the contract manufacturers are notified about the quantity and the timing of
orders.  Inventory analysis and timing of inventory are also function of the supply chain. As
the raw materials are received, the production process keeps on going.

The demand for the products is transformed into production schedules and manufacturing
takes place The procurement departments also monitors whether the raw materials and
finished goods are supplied according to the right quantity within the right time. Procurement
deals with the contract manufacturers to look after whether they are delivering the goods
properly. The quality assurance department plays an important role throughout the whole
process. They specify a certain quality level both for raw materials and finished goods. They
are also engaged in checking and monitoring the quality of raw materials and finished goods
and are responsible for any fault finding and rejection.

The Logistic Executive controls the Depot. He looks after whether the depots are functioning
properly. A Logistic Assistant and a Depot Contractor, assist each Logistic Executive. The
Depot Contractor works on a contractual basis and is not an employee of Reckitt Benckiser
Limited Depot contractor is involved in loading and unloading goods, controlling the receipts
and outgoing consignments, payments of labors and other miscellaneous payment. According
to the demand of the distributors, they place order in the Headquarter. Then orders are sent to
the depots in Dhaka and Chittagong. Then Logistics Department makes arrangement to
transport the goods to the destination.

India is one of the biggest of all developing markets for Reckitt Benckiser and this growth is
driven from our central office in Gurgaon. From here it support sales offices in Mumbai,
Bangalore and Kolkata, and our it commercial business numbers 375 employees. It also has
six manufacturing facilities in Tamil Nadhu, Uttarakhand, Jammu and Kashmir and Himachal
Pradesh, which together employ a further 270 people directly.

RB India and Harpic bring out the best in new marketing talent
RB India recently organised a large-scale brand study competition to bring out new ideas from
young marketing brains. The Company is committed to proactively encouraging its suppliers
and contractors to demonstrate responsible business behavior and high standards of business
conduct. This commitment is presently focused on direct suppliers involved in the
manufacture, assembly or distribution of products on behalf of Reckitt Benckiser Group
companies, and on those suppliers /contractors who are actively engaged in work at Company
facilities. The Company’s Global Manufacturing Standard sets out minimum levels of
performance and performance expectations in the areas of working conditions / human rights
at work, occupational health & safety and environmental management, for all suppliers
manufacturing, assembling or distributing products on behalf of Reckitt Benckiser Group
companies. The Company’s environmental and occupational health & safety management
systems include in their scope the activities of suppliers and contractors who are actively
engaged in work at Company facilities.

2.3-MARKET DEMAND AND SUPPLY

Health and hygiene major Reckitt Benckiser (RB) said that India was one of three largest
growth contributors for the company in 2020. The British fast-moving consumer goods giant
reported 11.8 per cent top line growth for the year.

“All geographic regions have grown, with the largest contributors to growth including the US,
India, and China. Around 70 per cent of our category market units by revenue either gained or
held market share,” in a post-earnings statement.

India is one of the largest markets for the group and in 2020, reach of its toilet cleaner brand
Harpic jumped significantly. “Harpic is now used in over 100 million homes in India, up by
nearly 30 million, compared to 2019”. “Purpose-led marketing campaigns” resulted in
“behaviour change” among Indian consumers over the past few quarters,

The local market’s performance during the year, in fact, lifted RB's business in other segments
as well. At the peak of the pandemic in mid-2020, its flagship brand Dettol took pole position
in India’s soap market, riding on the renewed surge in consumption of hygiene and sanitary
products

Mention the name Reckitt Benckiser and chances are it’ll draw a blank look from most 0f the
Yet if they were to open their kitchen cupboards they would probably find at least one of the
company’s products in them.

For Reckitt Benckiser is not only the world’s largest household cleaning company (excluding
detergents), it also owns some of the best-known health-care brands. Among them are Dettol,
Vanish, Woolite, Harpic and Nugget in the house-care market, and Nurofen, Strepsils and
Disprin in the health-care sector.

With such an array of well-known brands, it’s not surprising that the company is one of the
country’s top advertisers: it is ranked third in terms of adspend among the country’s top 10
advertisers overall. The company has a marketing story. It invests aggressively to create and
grow market categories and subsequently to maintain strong number one positions. It is not
surprising therefore that the company globally invests about 12% of net revenue in media
investment (advertising) to support its brands.

The demands of the products are initially determined through the demand review meeting held
between the sales department and the supply-planning manager from the supply department.
The supply-planning manager then conveys this unconstrained demand to the procurement
and production department. In return the production departments notifies procurement about
the amount that can be produced after an analysis of their production capacity, work force
development etc. procurement also looks at the supply possibilities, availability if the raw and
packaging materials, inventory management, import condition etc.
2.4-LEVEL AND TYPE OF COMPETITION

Relevance of the Factors influencing Intensity of Competition

Assessing the intensity of competition in an industry is the most important step in the 5 Forces
of Porter Model Analysis. This model analyses the competitive structure in an industry. For
that, it is of course highly relevant to reveal the intensity of rivalry. To do that, all factors
influencing intensity of competition should be taken into consideration.

Concentration of the Industry

Clearly, a high number of competitors of equal size will lead to more intense rivalry. There
will be less rivalry when a clear leader exists (at least 50 % larger than the second). Therefore,
the degree of concentration in the industry must be assessed as one of the primary factors
influencing intensity of competition in the industry.

Rate of Market Growth

The rate of market growth is another important factor. If market growth is high, competition
will be less intense. Why? Because slow growth will usually tend to greater rivalry: the market
is close to saturation at this stage, and no new customers are there to be attracted by
competitors. Contrarily, if the market is still strongly growing, there is enough new space and
untapped opportunities for competitors

Structure of Costs
Structure of costs refers to the share of fixed costs, as opposed to variable costs in a given
industry. This structure belongs to the important factors influencing intensity of competition
because high fixed costs encourage price cutting to fill capacity. Consequently, competition
will be more fierce

Degree of Differentiation
Certainly, degree of differentiation has a strong influence on the intensity of competition.
Commodity products encourage rivalry, because there are little opportunities to differentiate
the firm’s offerings from those of competitors. Thus, competition is all about prices – fierce
competition is the consequence. Highly differentiated products, on the other side, are hard to
copy and associated with less intense rivalry.

Switching Costs
When customers switch their supplier, switching costs arise, in whatever form. It may even be
that these costs are not even tangible – customers simply do not like to change. When
switching costs are high because the product is specialized, the customer has invested a lot of
resources in learning how to use the product or has made tailor-made investments. These may
be worthless with other products and suppliers. Thus, rivalry is reduced. On the contrary, if
customers do not have any switching costs, which is often the case for commodity products,
intensity of competition is higher.
SPEED OF EXECUTION

RB may be smaller than many of its major competitors but it has a culture which is based on
speed of thought, decision-making and execution, and it is this that has made it more
successful.This is achieved partly because of a very flat management structure, but also
because of RB’s ‘can do’ culture – and the entrepreneurial spirit found at every level. A very
good example of how quickly we are able to move is the case of the Air Wick air freshener
product called Fresh Matic

In 2004, while we were already the leader in air care in the UK, we realised that a great deal of
innovation was going on in this market and to stay ahead of our competitors we needed to
make a real step change. The biggest segment in this category then was the standard aerosol,
the one that you spray all the time. But the drawback was that after a few minutes the
fragrance dissipates and you can’t smell it any more. So we saw the opportunity to develop a
product that would deliver fragrance in a continuous way

They launched the first Fresh-Matic product in the UK in 2004, and within 12 months it had
been rolled out to 60 countries. But being RB it didn’t stop there. Subsequently there have
been regular innovations to the product including the introduction of the first ever motion
sensor air freshener. The most important thing is that once the consumer insight/ need had
been identified and the product idea generated, we did this quickly. RB created a whole new
market segment. This segment now represents approximately 15% of the global sales of all air
fresheners.

RB’s business has many global power brands in categories that have good growth potential
and global reach We launched the first Fresh-matic product in the UK in 2004, and within 12
months it had been rolled out to 60 countries. But being RB it didn’t stop there. Subsequently
there have been regular innovations to the product including the introduction of the first ever
motion sensor air freshener. The most important thing is that once the consumer insight/ need
had been identified and the product idea generated, we did this quickly. RB created a whole
new market segment. This segment now represents approximately 15% of the global sales of
all air fresheners.

2.5-PRICING STRATEGY IN THE INDUSTRY

Reckitt Benckiser has adopted the value based pricing as a part of its marketing mix and are
kept at optimal level and at the consumer's perception level. Though the prices are affordable,
they are a bit on the higher side which the consumer associates with better quality due to trust
built by the brand. The listing of Reckitt Benckiser is on London stock exchange and it is
constituent of FTSE 100 index. Company has adopted the strategy of having focused product
portfolio. It concentrates on 19 brands which generate more than 70% of revenue. The
company focuses on rapidly growing consumer sectors that are yet to be explored, thus having
superior margin potential and consistent return on investment to their investors. Another
strategy for revenue generation is shifting focus on developing economies with emerging
consumer potential. RB believes in conversion of profit to cash for which they have net
working capital objective incorporated in the annual bonus targets of all the operational
management teams.
Reckitt Benckiser Promotion & Advertising Strategy:
The promotional and advertising strategy in the Reckitt Benckiser marketing strategy is as
follows:
The organization has adopted the strategy of 'innovative Marketing’. As the products are
mainly in FMCG sector, it has used all the promotional media available (print, broadcast,
billboards and hoardings, digital). It has also implemented consistent and innovative
packaging which consumers recognize and associate. Reckitt Benckiser has put big emphasis
on advertising. In UK it is among top ten advertisers with first in television ads. It has also
invested in digital world like an i-phone application for Nurofen in UK, 2010. The company
has allocated budget for Marketing activities along with continuous products innovation
considering consumer needs. This proved to be profitable for the company which can be seen
in revenue boost in 2007 due to 'rapid succession of well practiced new product variants,’
which correctly seized consumer imagination. It has organized a scientific challenge for the
University students in UK to solve future consumer health problems. The winner of the
contest will get £5000 and paid summer internship at their latest facility. This completes the
marketing mix of Reckitt Benckiser.
The product strategy and mix in Reckitt Benckiser marketing strategy can be explained as
follows:
Reckitt Benckiser offers products in health, hygiene and home care section.
Health: Enfamil, Durex, Mucinex, Nutrofen, Scholl, Strepsils, Gaviscon, Nutramigen
Hygine: Dettol, Lysol, Harpic, Cillit Bang, Mortein, Veet, Clearasil, Finish
Home: Airwick, Vanish, Woolite, Calgon
Each of these brands has many variants and pack sizes. The organization combines the latest
knowledge in science with consumer requirements and builds relevant products. In future,
company plans to enter food and pharmaceutical sectors. Reckitt Benckiser has collaborated
with different partners to address some of the problems and have come up with innovative
solutions. Reckitt Benckiser have global R&D facility for product innovation. The products
comply with the relevant regulatory bodies and their safety is established by through clinical
and scientific evidence. They also have developed innovative packaging, devices and
manufacturing processes as a part of its marketing mix product strategy. Also, the strategy is
to tap the products which are relatively new and hence have new entrant advantage with
skimming pricing advantage. Also, they invest disproportionately among different power
brands.

Pricing Strategy of Reckitt Benckiser

A price helps a company to accept its products by the customers and earn the profit. A product
can also be denied by the customers if it’s much higher comparing to the alternatives. So, a
perfect pricing strategy is always important for the RB to make profit in one side, and be
accepted by the customer on other side.

Reckitt Benckiser evaluates its prices periodically. It puts utmost importance to the price
determination. They ensures fair price of their products, so that the customers can have those
products at their perceived value. The prices are kept to the optimal value level.

Place or Distribution Strategy of Reckitt Benkiser

The company has operations in more than 60 countries and its products are being sold in more
than 180 countries across the world.

The company distributes its products mainly in two ways. The first one is the E-Commercial
strategy. Here, the company sells its products online through its website. After selling
confirmation, the company directly send the product to the customers’ places. Second, RB
initially sells its products to the wholesalers. Then the wholesalers supplies the products to the
retailers through different areas. Finally, the retailers sell the products to the final consumers.
Promotion Strategy of Reckitt Benkiser
Generally, Reckitt Benksier promotes its products through different media channels.
Advertisement produces products for mass market. As the television is a common way to
reach the mass market in the developing counties like Bangladesh or India, RB has been using
television commercials to send the information of their products.
Also, RB uses the advertisement in the point of sales e.g. shops

2.6 PROSPECTUS AND CHALLENGES IN THE INDUSTRY

Unclear whether buying will be maintained in rest of 2020

Although the company was able to report strong sales growth across most geographies,
especially in March and April, Reckitt Benckiser did note it was unclear about what the split
between defensive buying and higher levels of underlying consumption’ actually was.
Although it believed key brands would ultimately benefit, it was expecting an unwinding of
‘pantry load’ as it works its way through the crisis.The company highlighted this was
especially likely in its over the counter heath relief product area, where it said there have been
likely significant pantry-loading activity which makes it difficult to fully assess changes in
underlying consumption caused by COVID-19’.

Demand and supply planning become difficult when demand patterns change. In the case of
the present pandemic it is clear there is not a sufficiently comparable historical event that can
be used to get a sense for customer demand. The company went on to underline this point,
noting a lack of clarity makes full year assessment challenging as material de-stocking could
reduce sales should COVID-19 effects pass

Ecommerce boosted by shoppers’ shift to stay at home

Reckitt Benckiser said revenues generated in the ecommerce channel rose by more than 50%
during the quarter, especially in March, as shoppers stayed at home and shifted more of their
spending online. It said the growth was broad based, with growth across all major platforms
and market places However, it did call out the strong growth it had seen in Greater China and
North America. As part of the announcement the company also highlighted how technology
and ecommerce are changing the way consumers know both what and how to buy, and where
to look for information and advice. This will likely boost visibility for well-known and
regarded brands, which has become a point highlighted by other manufacturers following the
pandemic

Long term strategy and trends remain intact

Despite the size and impact of the challenges provided by the pandemic, Reckitt Benckiser
was keen to stress the importance of remaining focused on the long-term trends driving its
strategy, which are likely to remain afterwards. It noted it how it remained convinced that
‘urbanisation and global warming will continue to drive hygiene as the foundation of health,
which will be affected by pressures on state-funded healthcare and result in growing demand
for self-care’. Given this, the company remained focused on implementing its long-term
strategy for growth, saying while there may be changes to the pace and sequence of some of
their investment our destination is clear.
Challenges

▪ Changing Consumer Demands

Demand tends to fluctuate rapidly. For example, consumer preferences have altered greatly in
recent years as demand shifts toward healthier and sustainable options. Consequently,
manufacturing success is closely related to time to market and new product introduction
capabilities. Additionally, demand can fluctuate cyclically and with economic volatility. The
success and profitability of any organization in this industry are heavily dependent on how
effective these companies are at addressing the changing demands of consumers. Those
changes in consumer behavior had a huge impact on the food & beverage
(F&B), transportation, local and international retail trade.

▪ Shrinking Operating Margins

As manufacturers need to ensure the delivery of high-quality products while finding

innovative ways to cut costs. Companies also need to account for fluctuations in factors such
as oil prices and their effect on transportation costs or petrochemicals which may be used for
chemicals and packaging. Replace humans with the automated Internet of Things device (such
as smartphone mobile application for self-services), will be rising and we can saw it in the
heavy use across sector and industries to bring down the operation cost.

▪ Compliance and Regulatory Pressures

The global regulatory environment is dynamic. Companies are faced with the challenges of
mitigating operational risk and managing non-conformance. Creating additional pressures, as
manufacturers rely on the global supplier network to battle shrinking operating margins,
meeting international compliance and regulations becomes a factor.

▪ Globalizing Economy

Leveraging the global supplier network is a means for reducing costs, however, it does come
with numerous risks in terms of compliance, product safety, and other areas.

▪ Data Granularity and Visibility

With compliance and regulations becoming stricter, traceability functionalities are more
pertinent and requisite than in the past. Consumer products companies need strong data
granularity to reduce operational risk, properly respond to an adverse event with a targeted
recall, provide high quality and compliant products.

2.7-KEY DRIVERS OF THE INDUSTRY

Material Prices & Availability:

The main raw materials of the industry are fuel, water, air, salt, limestone, sulfur, and other specialized
raw materials. The industry converts these materials into products; a chief characteristic of the
industry is that its products nearly always require further processing before reaching end users.

A variety of worldwide economic forces influence trends in chemical production. Growth of chemicals
industry in developing countries is influenced both by countries ‘needs for added production
domestically, and by production associated with trade. Factors influencing the situation of growth of
chemical use in manufacturing include proximity to raw materials, proximity to final markets,
development policies and a collection of things involved within the emergence of multinational
chemical companies.

Raw material prices are undoubtedly one amongst the foremost critical driving forces for the world
and largely determine where new production arises. Currently the industry is extremely enthusiastic
about the worldwide gas supply. This has grave implications for chemicals producers unless new
energy resources will be accessed by the world. Calls are being made for more noteworthy
subsidizing of coal gasification projects.

Economic Forces and continued Globalization:

Chemicals Industry is evolving as a really globalized industry during which competition takes place at a
world level. The continued globalization of the industry could be a source of opportunity for chemical
companies. Companies desperate to expand are looking toward growing regional markets round the
world.

The increased capacity in developing countries, combined with a decrease in demand in developed
countries, means many companies in developed countries are selling off or shutting down
capacity. this suggests that the chemicals industry is experiencing slower growth in developed
markets and increasing growth in developing markets, as a matter of fact, emerging economies
have a more chemical intensive pattern of the economy. This has resulted in emergence of
multinational chemical companies that are driving the worldwide expansion of the chemicals industry and
as a consequence, the bulk of world investment in chemical plants is going on within the developing
world.
 Regulatory Environment and Impact of Shift:

Chemicals can affect all aspects of natural resources: atmosphere, water, soil, and biodiversity. Many of
the chemicals are well-known environmental contaminants in developed countries. Increasing use of
those chemicals in developing countries is probably going to supply similar patterns of
environmental contamination. As developing countries and countries with economies in
transition doing an oversized scale of chemical production and consumption, these changes also has
potential implications for human health.

Global issues regarding business conditions and business structures increase business complexity. Chemical
companies are centralizing around lines of business (both products and markets), clarifying matrix
structure accountabilities and shifting to global management processes.

Companies are recognizing that green product design principals may help top and bottom-line
growth. the arena is already fully swing within the race to satisfy demand for alternative and
renewable energy technologies. These trends will gradually change the face of the chemicals
sector, particularly as new technologies at the quantum scale enable increasingly cleaner modes
of production and which can yield fundamentally safer products over the very long- term.
Changing Lifestyle
It is difficult to ignore lifestyle trends that are today impacting consumer purchasing decisions.
For the consumer goods industries, these trends are positive and encouraging innovation.
Consumer lifestyle is continuously evolving. Companies are tailoring their product with
features that suit the lifestyle of their target segment. On the other hand, consumers are buying
products that match up with their living standard, class and which are acceptable in the
culture. The growing market for healthy and nutritious food is proving to be an opportunity for
several food and beverage manufacturers, which are aligning their strategies in line with the
changing consumer preferences. Several foods and beverage companies are responding to this
trend through new product launches that have the same taste but reduced levels of salts/
sugars.
Availability and Accessibility

It is the biggest driver of industry sales. Availability of products has become way easier as the
internet and different channels of sales have made the accessibility of the desired product to
customers more convenient at the required time and place online grocery stores and online
retail stores like Grofers, Flipkart, Amazon making the FMCG product s more readily
available. Availability of products and their brands on the shelves of a retail shop is inducing
customers to add those products into their consideration set and then make a purchase decision

Role and need for Innovation:

Innovation: Innovation is far over just Research &Development activities rather it's a company-wide
strategic thrust driven by a culture that encourages and rewards new ideas all told aspects of the
business, from design to marketing, from manufacturing to talent development. A successful
innovation strategy relies on insightful knowledge about what customers need and need, together
with a process for using this information to steer market-back development. This also must be supported
by highly visible leadership commitment for innovation, including investment pools for novel ideas
and bold targets for innovation- driven growth across the organization to encourage
entrepreneurialism.

Moreover, direct exposure of business managers, including the CEO, to markets and customers is critical, as
is establishing application development and production facilities and customer relations centers within
the areas (such as emerging nations) where market growth is predicted to be strongest and where proximity
to customers will be a major advantage.

Innovation within the chemicals industry is leading to new products that increase energy efficiency,
enhance environmental protection, and reduce reliance on oil-based products. because the industry becomes
tougher thanks to global developments, innovation as a core capability are going to be the key
differentiator and a key determinant of success

2.8 STALWARTS IN THE INDUSTRY

1.Hindustan Unilever Limited 

(HUL) is an Indian consumer goods company headquartered in Mumbai, India. It is a

subsidiary of Unilever, an Anglo-Dutch company. Its products include foods,
beverages, cleaning agents, personal care products, water purifiers and other fast-moving
consumer goods.HUL has its farms for the production of Agro-based products. The company
has a strong network of suppliers who supply materials for production. The company is in the
fast-moving consumer goods business comprising primarily into four business segments such
as home care, personal care, food, and refreshment. The company is known for its presence
across almost all categories of consumer products and has a wide variety of products in each
category targeted to almost all the customer segments.

 Revenue: Rs 40,511 Cr
 Employees: 5,645
  Market Cap:  451,666 Cr.

2.Dabur India Ltd

The world’s largest and leading Ayurvedic and Natural Health Care company with 135 years
of rich heritage and experience. It is sixth in the list of top 10 FMCG companies in India 2019.

Business is divided into three Strategic Business Units, i.e., Consumer Care Business, Foods
Business, and International Business. Consumer Care Business covers interests in Health Care
and Home & Personal Care. Dabur is 7th in the list of top fmcg brands in India

 Revenue: 8,813 Cr
 Employees: 7500
 Market Cap:  83,697 Cr

3.GlaxoSmithKline Consumer Healthcare Ltd

GSK Consumer Healthcare Ltd is an associate of GlaxoSmithKline plc. of U.K, one of the

world’s largest consumer healthcare companies. one of the world’s leading over-the-counter
(OTC) medicines company.

The company holds the number one position in OTC medicines across 36 markets and is
market leaders in specialist oral care. The company has a sales of Rs 4869 Cr. It is ninth in the
list of top 10 FMCG companies in India 2020.

 Revenue: 4,942 Cr
 Market Cap:  37,727 Cr.

4. Nestle India Ltd

Nestlé is the world’s largest food and beverage company. The company has more than 2000
brands ranging from global icons to local favorites and is present in 191 countries around the
world. After more than a century-old association with the country, today, NESTLÉ India has a
presence across India with 8 manufacturing facilities and 4 branch offices. It is the third
Largest in Top FMCG Companies in India

● Revenue: 12,117 Cr

● Employees:

● Market Cap:  139,532 Cr.
5. Britannia Industries Ltd

Britannia Industries is one of India’s leading Top FMCG Companies with a 100-year legacy.
Britannia is among the most trusted food brands and manufactures India’s favorite brands like
Good Day, Tiger, NutriChoice, Milk Bikis and Marie Gold which are household names in
India. Britannia’s product portfolio includes Biscuits, Bread, Cakes, Rusk, and Dairy products
including Cheese, Beverages, Milk, and Yoghurt.

● Revenue: 11,211 Cr

● Employees:

● Market Cap:  75,893 Cr.
 CHAPTER-3
INDUSTRY ANALYSIS
3.1- PORTER’S FIVE FORCES ANALYSIS

1.Threats of New Entrants

New entrants in Personal & Household Goods brings innovation, new ways of doing things
and put pressure on Reckitt Benckiser Group Plc through lower pricing strategy, reducing
costs, and providing new value propositions to the customers. Reckitt Benckiser Group Plc
has to manage all these challenges and build effective barriers to safeguard

Reckitt Benckiser Group Plc can tackle the Threats of New Entrants

 By innovating new products and services. New products not only brings new
customers to the fold but also give old customer a reason to buy Reckitt Benckiser
Group Plc ‘s products.
 By building economies of scale so that it can lower the fixed cost per unit. 
 Building capacities and spending money on research and development. New entrants
are less likely to enter a dynamic industry where the established players such as
Reckitt Benckiser Group Plc keep defining the standards regularly. It significantly
reduces the window of extraordinary profits for the new firms thus discourage new
players in the industry.

2.Bargaining Power of Suppliers

All most all the companies in the Personal & Household Goods industry buy their raw
material from numerous suppliers. Suppliers in dominant position can decrease the margins
Reckitt Benckiser Group Plc can earn in the market. Powerful suppliers in Consumer Goods
sector use their negotiating power to extract higher prices from the firms in Personal &
Household Goods field. The overall impact of higher supplier bargaining power is that it
lowers the overall profitability of Personal & Household Goods.

Reckitt Benckiser Group Plc can tackle Bargaining Power of the Suppliers
 By building efficient supply chain with multiple suppliers.
 By experimenting with product designs using different materials so that if the prices
go up of one raw material then company can shift to another.
 Developing dedicated suppliers whose business depends upon the firm. One of the
lessons Reckitt Benckiser Group Plc can learn from Wal-Mart and Nike is how these
companies developed third party manufacturers whose business solely depends on
them thus creating a scenario where these third party manufacturers have significantly
less bargaining power compare to Wal-Mart and Nike.

Bargaining Power of Buyers

Buyers are often a demanding lot. They want to buy the best offerings available by paying the
minimum price as possible. This put pressure on Reckitt Benckiser Group Plc profitability in
the long run. The smaller and more powerful the customer base is of Reckitt Benckiser Group
Plc the higher the bargaining power of the customers and higher their ability to seek
increasing discounts and offers.

Reckitt Benckiser Group Plc can tackle the Bargaining Power of Buyers
 By building a large base of customers. This will be helpful in two ways. It will reduce
the bargaining power of the buyers plus it will provide an opportunity to the firm to
streamline its sales and production process.
 By rapidly innovating new products. Customers often seek discounts and offerings on
established products so if Reckitt Benckiser Group Plc keep on coming up with new
products then it can limit the bargaining power of buyers.
 New products will also reduce the defection of existing customers of Reckitt
Benckiser Group Plc to its competitors.

3.Threats of Substitute Products or Services

When a new product or service meets a similar customer needs in different ways, industry
profitability suffers. For example services like Dropbox and Google Drive are substitute to
storage hardware drives. The threat of a substitute product or service is high if it offers a
value proposition that is uniquely different from present offerings of the industry.

Reckitt Benckiser Group Plc can tackle the Treat of Substitute Products
Services
 By being service oriented rather than just product oriented.
 By understanding the core need of the customer rather than what the customer is
buying.
 By increasing the switching cost for the customers.

4.Rivalry among the Existing Competitors

If the rivalry among the existing players in an industry is intense then it will drive down
prices and decrease the overall profitability of the industry. Reckitt Benckiser Group Plc
operates in a very competitive Personal & Household Goods industry. This competition does
take toll on the overall long term profitability of the organization.

Reckitt Benckiser Group Plc can tackle Intense Rivalry among the Existing
Competitors in Personal & Household Goods industry
 By building a sustainable differentiation
 By building scale so that it can compete better
 Collaborating with competitors to increase the market size rather than just competing
for small market.
3.2- PEST ANALYSIS

POLITICAL FACTORS

Political factors play a significant role in determining the factors that can impact Reckitt
Benckiser Group Plc's long term profitability in a certain country or market. Reckitt
Benckiser Group Plc is operating in Personal & Household Goods in more than dozen
countries and expose itself to different types of political environment and political system
risks. The achieve success in such a dynamic Personal & Household Goods industry across
various countries is to diversify the systematic risks of political environment. Reckitt
Benckiser Group Plc can closely analyse the following factors before entering or investing in
a certain market-

 Political stability and importance of Personal & Household Goods sector in the
country's economy.
 Risk of military invasion
 Level of corruption - especially levels of regulation in Consumer Goods sector.
 Bureaucracy and interference in Personal & Household Goods industry by
government.
 Legal framework for contract enforcement
 Intellectual property protection
 Trade regulations & tariffs related to Consumer Goods
 Favored trading partners
 Anti-trust laws related to Personal & Household Goods
 Pricing regulations – Are there any pricing regulatory mechanism for Consumer
Goods
 Taxation - tax rates and incentives
 Wage legislation - minimum wage and overtime
 Work week regulations in Personal & Household Goods

ECONOMIC FACTORS

The Macro environment factors such as – inflation rate, savings rate, interest rate, foreign
exchange rate and economic cycle determine the aggregate demand and aggregate investment
in an economy. While micro environment factors such as competition norms impact the
competitive advantage of the firm. Reckitt Benckiser Group Plc can use country’s economic
factor such as growth rate, inflation & industry’s economic indicators such as Personal &
Household Goods industry growth rate, consumer spending etc to forecast the growth
trajectory of not only sector name sector but also that of the organization. Economic factors
that Reckitt Benckiser Group Plc should consider while conducting PESTEL analysis are -

 Type of economic system in countries of operation – what type of economic system

there is and how stable it is.
 Government intervention in the free market and related Consumer Goods
 Exchange rates & stability of host country currency.
  Efficiency of financial markets – Does Reckitt Benckiser Group Plc needs to raise
capital in local market?
 Infrastructure quality in Personal & Household Goods industry
 Comparative advantages of host country and Consumer Goods sector in the particular
country.  
 Skill level of workforce in Personal & Household Goods industry.
 Education level in the economy
 Labor costs and productivity in the economy
 Business cycle stage (e.g. prosperity, recession, recovery)
 Economic growth rate
 Discretionary income

SOCIAL FACTORS

Society’s culture and way of doing things impact the culture of an organization in an
environment. Shared beliefs and attitudes of the population play a great role in how marketers
at Reckitt Benckiser Group Plc will understand the customers of a given market and how they
design the marketing message for Personal & Household Goods industry consumers. Social
factors that leadership of Reckitt Benckiser Group Plc should analyse for PESTEL analysis
are -  

 Demographics and skill level of the population

 Class structure, hierarchy and power structure in the society.
 Education level as well as education standard in the Reckitt Benckiser Group Plc ’s
industry
 Culture (gender roles, social conventions etc.)
 Entrepreneurial spirit and broader nature of the society. Some societies encourage
entrepreneurship while some don’t.
 Attitudes (health, environmental consciousness, etc.)
 Leisure interests

TECHNOLOGICAL FACTORS

Technology is fast disrupting various industries across the board. Transportation industry is a
good case to illustrate this point. Over the last 5 years the industry has been transforming
really fast, not even giving chance to the established players to cope with the changes. Taxi
industry is now dominated by players like Uber and Lyft. Car industry is fast moving toward
automation led by technology firm such as Google & manufacturing is disrupted by Tesla,
which has stated an electronic car revolution.

A firm should not only do technological analysis of the industry but also the speed at which
technology disrupts that industry. Slow speed will give more time while fast speed of
technological disruption may give a firm little time to cope and be profitable. Technology
analysis involves understanding the following impacts -

 Recent technological developments by Reckitt Benckiser Group Plc competitors

 Technology's impact on product offering
 Impact on cost structure in Personal & Household Goods industry
 Impact on value chain structure in Consumer Goods sector
 Rate of technological diffusion

CHAPTER – 4
DISCUSSION
4.1-OBJECTIVE ASSESSMENT

Observations based on SWOT analysis

● There is a high demand for Reckitt Benckiser as it is the most preferred brand.
● Being available for buying products with its 20+ shopper sections Reckitt
Benckiser assisted with ruling the wide rack space of staple or retail chains.
● They are the market leader in the FMCG Market as two out of three Indian
clients use Reckitt Benckiser items. To arise as a market chief in the Indian
market, Reckitt Benckiser has utilized focusing on approach.
● Reckitt Benckiser has a complete and computerized conveyance chain in which
the items are easily recognized names that must be utilized in light of the four-
level circulation framework.
● The company also has a comprehensive and automated chain in which the
products are now used as common household names that can only be used
 because of the four-tier distribution system.
● They also develop a strategic partnership with manufacturers, distributors,
retailers, and other interested parties.
● The market share is limited due to the presence of other strong FMCG brands.
● Because of the stable political situation, increased literacy rate, and regulated
inflation the income of people changes as a result the demand increases and
there is a change in the lifestyle of people
● Reckitt Benckiser can tap rural markets and increase penetration in urban areas
● The mergers and acquisition strengthen the brand
● There is a rise in competitors both locally and nationally which is becoming
difficult for businesses to separate themselves from others.
● The services and Logistics of Reckitt Benckiser are very efficient.
● The sales services of Reckitt Benckiser are very efficient as their supply chain
management is very efficient.
● Reckitt Benckiser distribution network is recognized as one of its key strengths.
Its focus is not only to enable easy access to our brands to consumers
Based on the observation of PEST analysis of the Organization

Reckitt Benckiser does not support any political party or government by funding its
operations since the business entity wants to restrict the operations to that field only.
Reckitt Benckiser market environment is becoming highly competitive especially in
Western Europe. Procter & Gamble (P&G) is one of the major competitors in the market.
More so, there are so many discounters in the market. This has harmed regularly
Reckitt Benckiser profit potentials. In the developing countries and the emerging
economies, where there is political instability, Reckitt Benckiser has adopted its
company strategy to ensure that its profitability drive is sustained. Some Products are
packaged in small sizes for low- or regular-income earners, for affordability .The
company has launched many projects to empower women and uplift society.
Reckitt Benckiser also uses initiatives to increase social awareness in rural areas
relating to cleanliness, hygiene, etc Reckitt Benckiser is focused on building an
exclusive culture and embracing difference, which resulted in the high demand for its
products in developing and emerging markets.
The business continues to boom in the 1950s with new technology being invented to
boost production and enhance quality products for consumers, competitors improving
their products using new inventions.
Reckitt Benckiser has been spending on IT to improve its business especially in the area
of e-business to improve brand communication and market through the internet,
making the transaction simple along the chain.
Based on the Observation of PORTER’S FIVE FORCE MODEL of the
Organization

 Reckitt Benckiser is facing a high level of competition in the industry.

 The business of Reckitt Benckiser depends on the customer response to the
products.
 The company is having a very competitive with many brands available, and new
products coming in each quarter make innovation very important. FMCG
business is highly dependent on advertisement and companies spent a big
percentage on it.
 The switching costs for the customers are very low in this sector as the product
differentiation is moderately low, which intensifies the competition.
 The bargaining power of the customers for Reckitt Benckiser is high
 The external factors which contribute are overall supply, the moderate
population of suppliers as well as the moderate size of individual suppliers
 Reckitt Benckiser has a very good relationship with its suppliers as well as with
the customers.
 The distribution network is very large and branched, which further eases out
barriers of entry.
 The threat of substitute products for Reckitt Benckiser is high.
 Reckitt Benckiser is a reliable and well-reputed company that has loyal
customers.
 They offer high-quality products at fair prices
 The threats of new entrants for Reckitt Benckiser are low as Reckitt Benckiser
enjoys a good repute customer.

4.2 Specific Learning Outcome

Reckitt Benckiser employs high quality people who consistently deliver outstanding results.
Reckitt Benckiser is a highly innovative business organization where entrepreneurship is
encouraged and valued. How much you earn and how fast you progress depends on talent and
achievement. It’s a beautifully simple, exceptionally powerful philosophy:

 People get promoted as soon as they’ve proved they’re ready and the company has the
right opportunity
 Exceptional rewards for people who deliver exceptional performance.

People in senior management can earn an annual bonus of up to 144% of base salary. Reckitt
Benckiser has a true multi-national team, where no single culture dominates. Reckitt
Benckiser believes that combining talented people with different professional and cultural
backgrounds in action-oriented teams is what gives us real competitive edge. “For a complex
problem, teamwork is extraordinarily powerful.” The Reckitt Benckiser managers are highly
mobile and flexible; moving regularly to opportunities where their development needs are
best matched with the company’s interest. The company is home to many ‘best-in-class’
minds in all the key areas of business. Reckitt Benckiser people think and act with consistent
quality and effectiveness – but don’t confuse consistency with uniformity. The structures and
systems are there to facilitate action. They leave room for flexible thinking and new ideas.
People know that what works today for consumers may not work tomorrow. “Reckitt
Benckiser is right for anyone who’s as passionate about winning as they are about beating the
competition.”

 Sustainability Performance:

The successful execution of the sustainability strategy at Reckitt Benckiser positions it among
the leaders of the industry supported by high level of engagement across all three corporate
sustainability dimensions. Its capabilities in mitigating the challenges in the economic
dimension are among the best in the industry underlined by a particularly strong performance
in brand management and corporate governance. The company considers its brand
performance to be the key to the company’s performance. In the environmental dimension, it
scores significantly above the industry average with a clear out performance in environmental
policy and management and environmental reporting. Moreover, it performs among the best
in the social dimension, particularly in human capital development.

 Values Statement:

Reckitt Benckiser passionate about delivering better solutions to consumers and customers.
Reckitt Benckiser is about passionately delivering better solutions in household cleaning and
health & personal care to customers and consumers, wherever they may be, for the ultimate
purpose of creating shareholder value.

This vision defines both Reckitt Benckiser’s purpose and values as a Company and
encompasses the commitment to product quality and safety, customer service, innovation,
global reach and corporate social responsibilityThe core values are a set of guiding principles
through which Reckitt Benckiser think, behave and conduct the business in order to deliver
on the vision, they are:

 Achievement
 Teamwork
 Entrepreneurship
 Commitment

Reckitt Benckiser Code of Business Conduct:

Reckitt Benckiser is committed to responsible corporate behavior; this includes high

standards of business conduct in relationships with employees, customers, consumers,
shareholders, suppliers, governments, competitors and the local communities in which
Reckitt Benckiser operate. It applies to all employees in all Reckitt Benckiser Group
companies globally. Where the Company participates in joint ventures the Code’s standards
should also be actively promoted. Compliance with the Code is an important factor in
maintaining and building the reputation of Reckitt Benckiser as a responsible and trustworthy
business partner, employer, supplier and corporate citizen. The Code forms the core element
of Reckitt Benckiser Corporate Responsibility Framework; this comprises a set of policies
and control arrangements that govern how Reckitt Benckiser acts as a Company and how
Reckitt Benckiser interact with its stakeholders in conducting the Company’s business. It is
not possible to anticipate every situation. The Code is necessarily broad and general in nature
and is not intended to replace more detailed policies and procedures. Nevertheless, these
basic principles and ethical values should serve as a guide to each employee in his or her
dealings with customers, suppliers, shareholders, colleagues and others with whom the
company has relationships. Together with Reckitt Benckiser Vision and Values Statement,
and the other components of Reckitt Benckiser Corporate Responsibility Framework, the
Code outlines the way the Company wants to conduct business now and in the future.

Commitment to employees.

 Freedom of association

Reckitt Benckiser recognizes the right of employees to freedom of association (or parallel
means where such activities are restricted under law).

 “Whistle blower” help line

During 2003 Reckitt Benckiser rolled-out its “whistle-blower” help line. Employees globally
have access to a telephone help line; run by an external organization, to report – anonymously
if desired – any suspected breaches of Reckitt Benckiser Code of Business Conduct. Internal
Audit then investigates these.

 Equal opportunities – no discrimination

Reckitt Benckiser is a truly multi-cultural company. Reckitt Benckiser believes that

combining talented people from different professional and cultural backgrounds drives
innovation and gives us a competitive edge. 20% of the Company’s Board, and 15% of
Reckitt Benckiser ‘Top 400’ senior management, are women.
Commitment to International Standards:

Reckitt Benckiser subscribes to a number of international standards and guidelines relevant to

corporate responsibility and business conduct, including:

• The United Nations (UN) Declaration of Human Rights (www.un.org)

• The United Nations (UN) Convention on the Rights of the Child (www.un.org)

•The International Labor Organization (ILO) eight Fundamental Conventions (www.ilo.org)

• The Organization for Economic Co-operation and Development (OECD) Guidelines for
Multinational Enterprises the principles and requirements of these standards and guidelines
are incorporated into this Code of Business Conduct and other elements of Reckitt Benckiser
Corporate Responsibility Framework.

Compliance with laws, regulations and Company policies:

There are many laws and regulations applicable to the conduct of the Company’s business.
All employees should be aware of and observe the laws and regulations governing their work
activities, including those concerning: occupational health & safety; employment practices;
protection of the environment; competition; intellectual property; and, the payment of taxes
and social security. Compliance with the Company’s internal operating policies and
procedures is of equal importance.

Ethical business conduct and fair dealing:

All employees must accept responsibility for maintaining and enhancing the Company’s
reputation for integrity and fairness in its business dealings. In its everyday business
transactions the Company must be seen to be dealing even-handedly and honestly with all its
customers, consumers, suppliers, employees and others with whom the Company has a
relationship.

The Company must approve any exceptions to this requirement, which could for example
apply to a part-time employee. Insider trading employees in possession of information on the
basis of which an effect on the Company’s securities may reasonably be predicted, may not
trade in any of the Company’s securities as long as they could take advantage of such
sensitive information. Additional trading restrictions exist for senior executives during the
two months prior to publication of the year-end results and for one month prior to the
publication of quarterly results, and at other times indicated by the Executive Committee
when the Company may be deemed to be in receipt of insider information. Gifts and
entertainment employees of the Company must ensure that they deal with customers,
suppliers and other business relationships in a way that avoids their independent judgment on
behalf of the Company being influenced by personal advantage, or any appearance that this
may be the case.
The Company is committed to proactively encouraging its suppliers and contractors to
demonstrate responsible business behavior and high standards of business conduct. This
commitment is presently focused on direct suppliers involved in the manufacture, assembly
or distribution of products on behalf of Reckitt Benckiser Group companies, and on those
suppliers contractors who are actively engaged in work at Company facilities. The
Company’s Global Manufacturing Standard sets out minimum levels of performance and
performance expectations in the areas of working conditions human rights at work,
occupational health & safety and environmental management, for all suppliers
manufacturing, assembling or distributing products on behalf of Reckitt Benckiser Group
companies. The Company’s environmental and occupational health & safety management
systems include in their scope the activities of suppliers and contractors who are actively
engaged in work at Company facilities.

 Sustainability and the environment:

Reckitt Benckiser views corporate responsibility and sustainability as one and the same and is
committed to moving its business towards greater sustainability across the economic, social
and environmental dimensions of its activities. The Company believes that a more sustainable
business will not only better fulfill the responsibilities to society but also contribute to
delivering Reckitt Benckiser vision of better consumer solutions and greater long-term
shareholder value. The Company’s Environmental Policy and objectives are publicly
available and a Group Environmental Management System (EMS) is in place to coordinate
environmental management across the Company.

Company assets:

Protecting Company assets – employees of the Company are responsible for the proper use,
the protection and the maintaining of company assets, including intellectual property e.g.
patents, trademarks and designs. Company assets may only be used in relation to the
Company’s business. Crisis management – the Company has in place a Crisis Management
Policy and Group Crisis Management Guidelines, supported by regional local control
arrangements and emergency response plans, to minimize the risks to the business, its
customers, employees and shareholders in a crisis situation. Business Continuity Planning
forms a key part of these arrangements. Authorities the existence of an agreed authority’s
structure is an essential requirement for establishing an effective financial and operational
control environment. All business units are required to establish and maintain appropriate
levels of authority to cover all items of asset value expenditure and all transactions which
need to be subject to management approval. Integrity of company financial records –the
books and records of the Company must accurately reflect the nature of the underlying
transactions and no undisclosed or unrecorded liabilities or assets shall be established or
maintained. Books and records must be maintained in all respects according to law and the
accounting principles, policies and procedures that the Company has adopted. The Company
will not evade tax obligations and all taxable benefits which employees may receive will be
listed and

CORE VALUES

Four key values:-

1. Achievement - Achievement makes them who they are. They don’t just aim high,
their aim to achieve beyond expectation - to outperform. And they develop and
support their people to outperform so they can all achieve results wherever they focus,
be it products, profits or CSR.
2. Entrepreneurship - They encourage bold thinking and commercial drive. They allow
daring ideas to thrive and value the passion that people bring in turning ideas into
great execution.
3. Teamwork - They pull together to succeed. As individuals they are competitive high-
achievers, but they bring their strengths together when needed to work as one united by
common principles and attitudes, not rules and processes, to drive success.

4.Commitment - For them, ‘the buck stops here’. They take personal responsibility for
their areas of accountability and take the initiative in doing what’s needed. They aren’t
slaves to process or spoon-fed. Their people are given the latitude to do what they think is
right within a framework for success. Leaders at all levels select people against this
attitude and develop it further to ensure the sustainability of the business
Valuable

 The Reckitt Benckiser Analysis shows that the financial resources of Reckitt
Benckiser Group are highly valuable as these help in investing into external
opportunities that arise. These also help Reckitt Benckiser Group Plc in combating
external threats.
 According to Analysis of Reckitt Benckiser Group its local food products are a
valuable resource as these are highly differentiated. This makes the perceived value
for these by customers high. These are also valued more than the competition by
customers due to the differentiation in these products.
 The Reckitt Benckiser Group Analysis shows that Reckitt Benckiser Group
employees are a valuable resource to the firm. A significant portion of the workforce
is highly trained, and this leads to more productive output for the organisation. The
employees are also loyal, and retention levels for the organisation are high. All of this
translates into greater value for the end consumers of Reckitt Benckiser Group Plc's
products.
 According to the Analysis of Reckitt Benckiser Group Plc, its patents are a valuable
resource as these allow the firm to sell its products without competitive interference.
This results in greater revenue for Reckitt Benckiser Group Plc. These patents also
provide Reckitt Benckiser Group Plc with licensing revenue when it licenses these
patents out to other manufacturers.
 The Reckitt Benckiser Group Plc Analysis shows that Reckitt Benckiser Group Plc’s
distribution network is a valuable resource. This helps it in reaching out to more and
more customers. This ensures greater revenues for Reckitt Benckiser Group Plc. It
also ensures that promotion activities translate into sales as the products are easily
available.
 According to the Analysis of Reckitt Benckiser Group Plc, its cost structure is not a
valuable resource. This is because the methods of production lead to greater costs than
that of competition, which affects the overall profits of the firm. Therefore, its cost
structure is a competitive disadvantage that needs to be worked on.
 The Reckitt Benckiser Group Plc Analysis shows that the research and development
at Reckitt Benckiser Group Plc is not a valuable resource. This is because research
and development are costing more than the benefits it provides in the form of
innovation. There have been very few innovative features and breakthrough products
in the past few years. Therefore, research and development are a competitive
disadvantage for Reckitt Benckiser Group Plc. It is recommended that the research
and development teams are improved, and costs are cut for these.

Rare

 The financial resources of Reckitt Benckiser Group Plc are found to be rare according
to the Analysis of Reckitt Benckiser Group Plc. Strong financial resources are only
possessed by a few companies in the industry.
 The local food products are found to be not rare as identified by Reckitt Benckiser
Group Plc Analysis. These are easily provided in the market by other competitors.
This means that competitors can use these resources in the same way as Reckitt
Benckiser Group Plc and inhibit competitive advantage. This means that the local
food products result in competitive parity for Reckitt Benckiser Group Plc. As this
resource is valuable, Reckitt Benckiser Group Plc can still make use of this resource.
 The employees of Reckitt Benckiser Group Plc are a rare resource as identified by the
Analysis of Reckitt Benckiser Group Plc. These employees are highly trained and
skilled, which is not the case with employees in other firms. The better compensation
and work environment ensure that these employees do not leave for other firms.
 The patents of Reckitt Benckiser Group Plc are a rare resource as identified by the
Reckitt Benckiser Group Plc Analysis. These patents are not easily available and are
not possessed by competitors. This allows Reckitt Benckiser Group Plc to use them
without interference from the competition.
 The distribution network of Reckitt Benckiser Group Plc is a rare resource as
identified by the Analysis of Reckitt Benckiser Group Plc. This is because
competitors would require a lot of investment and time to come up with a better
distribution network than that of Reckitt Benckiser Group Plc. These are also
possessed by very few firms in the industry.

Imitable

 The financial resources of Reckitt Benckiser Group Plc are costly to imitate as
identified by the Reckitt Benckiser Group Plc Analysis. These resources have been
acquired by the company through prolonged profits over the years. New entrants and
competitors would require similar profits for a long period of time to accumulate
these amounts of financial resources.
  The local food products are not that costly to imitate as identified by the Analysis of
Reckitt Benckiser Group Plc. These can be acquired by competitors as well if they
invest a significant amount in research and development. These also do not require
years long experience. Therefore, the local food products by Reckitt Benckiser Group
Plc provide it with a temporary competitive advantage that competitors can too
acquire in the long run.
 The employees of Reckitt Benckiser Group Plc are also not costly to imitate as
identified by the Reckitt Benckiser Group Plc Analysis. This is because other firms
can also train their employees to improve their skills. These companies can also hire
employees from Reckitt Benckiser Group Plc by offering better compensation
packages, work environment, benefits, growth opportunities etc. This makes the
employees of Reckitt Benckiser Group Plc a resource that provides a temporary
competitive advantage. Competition can acquire these in the future.
 The patents of Reckitt Benckiser Group Plc are very difficult to imitate as identified
by the Analysis of Reckitt Benckiser Group Plc. This is because it is not legally
allowed to imitate a patented product. Similar resources to be developed and getting a
patent for them is also a costly process.
 The distribution network of Reckitt Benckiser Group Plc is also very costly to imitate
by competition as identified by the Reckitt Benckiser Group Plc Analysis. This has
been developed over the years gradually by Reckitt Benckiser Group Plc. Competitors
would have to invest a significant amount if they are to imitate a similar distribution
system

Organisation

 The financial resources of Reckitt Benckiser Group Plc are organised to capture value
as identified by the Analysis of Reckitt Benckiser Group Plc. These resources are
used strategically to invest in the right places; making use of opportunities and
combatting threats. Therefore, these resources prove to be a source of sustained
competitive advantage for Reckitt Benckiser Group Plc.
 The Patents of Reckitt Benckiser Group Plc are not well organised as identified by the
Reckitt Benckiser Group Plc Analysis. This means that the organisation is not using
these patents to their full potential. An unused competitive advantage exists that can
 be changed into a sustainable competitive advantage if Reckitt Benckiser Group Plc
starts selling patented products before the patents expire.
 The distribution network of Reckitt Benckiser Group Plc is organised as identified by
the Analysis of Reckitt Benckiser Group Plc. Reckitt Benckiser Group Plc uses this
network to reach out to its customers by ensuring that products are available on all of
its outlets. Therefore, these resources prove to be a source of sustained competitive
advantage for Reckitt Benckiser Group Plc
 CHAPTER-5

FINDINGS

Reckitt Benckiser is a Multi national company which is also operating in India. The
organization behavior regarding goal setting for employees we have concluded that the
management of Reckitt Benckiser is effective in setting goals according to the competition in
the FMCG sector in India.

As the requirement of growing FMCG sector it is necessary to set challenging and effective
goals so as to become market leaders. Despite of setting challenging goals the employees of
Reckitt Benckiser are satisfied with these challenging goals and performing well to achieve
the goals which were provided to them.

The management style in Reckitt Benckiser is kind of participative management in which

employees are given chance to share their ideas for decision making so the Reckitt Benckiser
is utilizing its employees by getting different ideas from different employees this provides
greater chances for getting better and innovative ideas. Not only this but from this activity
employees feel motivated because they think they also have the authority in decision making
process and they are also a part of an organization. During the interview of an employee of
Reckitt Benckiser he told us “All the employees here are given title of relationship officer
rather than any other designation and at the beginning of each month the top level
management visits every branch and arrange meeting with all the employees of the branch
and discuss the problems faced by every employee and immediately tries to resolve the
problem and this is the major motivating factor for us”.

As the motivation and reward systems are up to the expectation of the employees so the
employees are very much satisfied and don’t want to leave the organization. The leadership
styles in Reckitt Benckiser are mixture of both the task oriented and relationship oriented but
it is little lien towards relationship oriented leadership style.

Overall we concluded Reckitt Benckiser inherits strong organizational culture having values
for leaders and as well as for employees and the organization behavior is up to the mark for
any company being in India.

FUTURE OF RECKITT BENCKISER

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.

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 2018. 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.
Suggestions

 The company should more focus on maintaining its liquid position by having more
liquid assets in the form of cash and cash equivalents.

 The company should also improve its current ratio by having some more current
assets. Its current assets decreased at high rate.

 To maintain its current growth rate, the company should control its operating and non-
operating expenses.

 It is necessary for the company to adopt a good marketing strategies for its new 10
products which will launch in 2010 to increase its revenue.
 To face severe competition from its competitors like Proctor & Gamble, HUL ETC,
the company should always strive for better market position and have a high market
share.

 Besides these quantitative aspects, the company should also focus on qualitative
aspects like information technology, employees satisfaction and customer preferences
etc.

 All types of documentation like Daily sales report, weekly sales report, DSR incentive
report, trade promotion report should be prepared and monitored regularly.
 The condition of the warehouse should be made standard and there should be one
warehouse to store the products.
 The company management must ensure the retailers’ and the wholesalers’
opportunities in trade promotion.
 The management should provide the rewards to the Distributors Sales Representatives
(DSR) for each and every better performance and this field sales force should be
trained on a regular basis.

BIBLIOGRAPHY

 http://www.rb.com

 http://www.rb.com/RB-worldwide/RB-History

 http://www.reckittbenckiser.jobs/about

 http://www.reckittbenckiser.jobs/about/brands
 http://www.rb.com/Innovators/The-innovation-story-at-RB

 http://www.rb.com/Innovators/Awards

 http://www.reckittbenckiser.jobs/about/csr

 http://www.reckittbenckiser.jobs/about/strategy

 http://www.rb.com/new2010

 http://www.rb.com/Our-Brands/Category-Performance