A British multinational consumer goods company Essay
A British multinational consumer goods company
Dettol was founded by Reckitt Benckiser, a British multinational consumer goods company headquartered in Slough, United Kingdom. Formed in December 1999 from the merger of Reckitt and Colman plc and Benckiser N.V, it has operations in over 60 countries and its products are sold in over 180 countries. Reckitt Benckiser is listed on the London Stock Exchange and had a market capitalisation of approximately £31.6 billion as of 13 February 2013. Reckitt Benckiser owns a wide range of household brands which can be grouped into four main areas health, personal, home and fabric.
Being 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 wide range of products across multiple categories that help to protect them from germs. These include bar soaps, hand sanitizers, liquid hand washes, shower gels and antibacterial wipes.
Vision and Mission
Vision: To have a world where people are healthier and live better. Mission: To make a difference by providing innovative solutions for healthier lives and happier homes.
2) Current Market Analysis
Dettol currently has the highest market share of 83%. Their body wash was launched in 2005 for further penetration into related categories and progression into the urban market. The body wash market is a small but fast growing category.
As announced by Reckitt Benckiser Group chairman, the company delivered a strong performance with results coming both from the world’s emerging markets and also a return to growth in the developed markets of Europe and North America.
Reckitt Benckiser delivers performance in everything it does, including corporate social responsibility. It is deeply committed to sharing some of the wealth it creates with the people who need it most and helps to improve children’s health, hygiene and social development around the world.
There are several body wash brands in the market at the moment namely Dettol, Life buoy, Kirei Kirei, Dove and Lux. On average, they carry 5 different kind of fragrances and 3 types of sizes. They also have refill packs for consumers.
The table below shows the on-going promotions held at our local supermarkets:
Twin Pack @ $15.75
Buy 2 @ $14.25
Buy 2 @ $15.50
Buy 2 @ $9.90
3) Product – Description, Target Market, Market Segmentation and Consumer Profile
Dettol products offer a high standard of germ kill and are recommended by healthcare professionals for their proven ability to keep families healthy. Dettol’s current range include shower gels, bar soaps, hand wash, disinfectant sprays, wipes, laundry sanitizers and all-purpose cleaners. 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.
Dettol has a range of shower gel products offered in six variants:
1) Original – moisturises and gives a hygienically clean, healthy and refreshing feeling 2) Smoothing – hydrates, naturally healthy skin
3) Nourishing – restores, naturally healthy skin
4) Fresh – enriched with extra moisturizers and gives the best protection from dryness 5) Cool – protects from a wide range of unseen germs and with menthol to gently cleanse 6) Skincare – cares and maintains our skin’s natural moisture to help prevent dryness
3.2 Market Segmentation
The market is usually divided into 4 different segments, geographic, demographic, psychographic, behavioural segmentation.
3.2.1 Geographic Segmentation
Target locations include almost all urban, suburban and small towns. It can also be found in hospitals and nursing homes for use in first aid as well as disinfecting washing linen and etc. Consumers use it for bathing, mopping and other purpose. Although it started its journey as the ‘cuts and wounds’ brand in UK, it has taken over the role of ‘protector from germs’ in every situation.
3.2.2 Demographic Segmentation
Dettol targets consumers of any age and gender mainly the stayed-home couples, traditional housewives, pregnant mothers and families with children while keeping in mind the entire section of consumers irrespective of their market.
3.2.3 Psychographic Segmentation
Due to past outbreaks of SARS and H7N9 virus people are more conscious of their personal hygiene and general well-being.
3.2.4 Behavioural Segmentation
Dettol attracts consumers who expect a solution with the effective use of antiseptic. It does this by targeting both the brand and category users with its‚ “Aapka Dettol Kya Kya Karta Hai” campaign. This campaign resonated with the targeted audience, forming a special bonding brand which saw the consumers using it whenever they felt a need for disinfection.
3.3 Customer Profile
The typical characteristic of their customer is someone who is financially capable and not too concerned about prices. They are not attracted by fancy packages or design but places more importance on product effectiveness. Their needs are to give the best protection to their family and love ones by killing germs while being environmentally friendly.
4) Competitors Analysis
The Unilever brand is a trusted name in nutrition, hygiene and personal care found in a consumer product in millions of homes across 150 countries.
Lifebuoy’s goal is to provide affordable and accessible hygiene and health solutions that enables people to lead a life without fear of hygiene and health consequences.
Lifebuoy has been consistently championing health through hygiene political process since the brand was founded in 1894. The brand constantly develops and improves its products to keep up with changing consumer needs in the area of personal hygiene.
Lifebuoy body wash provides deep cleansing of pores, protecting against the three root causes of skin health problems – clogged pores, over-drying and infection-causing germs.
Lion Corporation Singapore Pte Ltd
Established in 1891, Lion Corporation Japan produces and markets innovative products that offer maximum value to both consumer and industrial users. Lion Singapore has marketed a wide range of successful brands and products like Kirei Kirei, Kodomo, Shokubutsu, Systema, Mama Lemon, Top and Essence.
Kirei Kirei family medicated body foam and hand foam provide anti-bacterial protection. With 100% cleansing ingredients from plants, it gently cleanses the skin, keeping it hygienically clean and healthy.
Kirei Kirei family medicated body foam has anti-bacteria and deodorant effects to help prevent body odour and acne while keeping one hygienically clean.
1. Good brand image. Dettol has been in the antiseptic liquid industry for about 20 years. 1. Consumer may be unwilling to try a new product. 2. New product is convenient to use and buy. Using low amount of resources to increase the volume of output in products and have online shopping on the internet to promote sales volume. 2. Lack of awareness amongst prospective consumers. They usually target the home makers to increase sales, forgetting that the main consumer’s base is the young and active. 3. Excellent for treating skin irritations. Dettol has a strong marketing team to spear the launch of the products. 3. Price of the product maybe slightly higher than the competitor’s product. 4. Dettol has a strong financial background which can support the sales and marketing efficiently. 4. Dettol products have a stronger smell that people tend to associate with hospitals. 5. Loyal following of “Original”
5. Not perceived as a dynamic innovative and contemporary brand. OPPORTUNITY
1. Growing awareness of health issues.
1. Intense competition in the existing antiseptic liquid industry. 2. Increasing concern about worsening environmental issues.
2. Product price maybe sensitive if competitors were to start a price war. 3. Healthcare requires more antiseptic products in their premises. 3. High cost of input resources could affect pricing adversely and cause consumer to switch to a new product. 4. Activities can be held at sports events to promote hygiene awareness. 4. Good advertising attempts by competitors.
Regulations to regulate the interaction between humans and the natural environment. 1. Economy trends
Direction in where nation economy is moving. As the nation has no natural resources, it mainly survives on exports and imports. 2. Current legislation
Legislation covers a few factors such as commercial marketing and workforce. 2. Market/Trade cycle
Longer term price movement in a broader market index, including one compete uptrend and one complete downtrend.
Eg: Targeting pricing in Dettol case
3. International legislation
International exports and imports stability affects the costs of the products significantly. 3. Specific industry factors
A Market assessment tool designed to provide a business with an idea of the complexity of a particular industry.
Industry analysis involves reviewing the economic, political and market factors that influence the way the industry develops. 4. Regulatory bodies and processes
The product is to be in accordance with the regulations set by Health Science Authority. 4. Distribution trends
As Singapore is approaching a higher standard in economical standard in economical standards, living standard also rise. Therefore there is a need to have a need to have the distribution trend innovate accordingly to the society demand. 5. Government policies
Consumer’s laws are set up to prevent predatory pricing in the market. 5. Interest/Exchange rates
This mainly affects the pricing when inflation kicks in as products come from the global region. 6. Government term and change
Term and change has not affect the company drastically in the recent years. 6. International trade and monetary issues
As Singapore is a trade hub in the region, it is important for exports and imports to be ongoing. International trade is one of the key factors for Singapore survival. 7. Funding grants and initiatives
As the company is a MNC, government grants are not appealing. However, they can use some of the grants to increase the capabilities of the workers in the work place.
Dettol also promotes good hygiene practices everywhere by giving products product sachets in sports and national events.
8. Home market pressure
Because of the high cost of living and increase of inflation in the country,
the company has to adjust their prices according to meet home market expectations.
9. International pressure
Because of the unstable economy around the region, they will have to react accordingly by adjusting prices in the different regions to meet the expectations.
1. Lifestyle trends
Increasing trend in a healthy living environment
1. Competing technology development research funding
Dettol has strong financial backing thus allowing them to have strong research funding and compete with their competitors on new technology development. 2. Demographics
Can be use regardless of age and gender
2. Replacement technology/ solutions
Dettol not only have products for shower foam, they also expand their market in industries like healthcare sectors. 3. Consumer attitudes and opinions
Good value because of low pricing, affordable to the consumers. 3. Manufacturing maturity and capacity
Dettol can probably produce more products to stock in times of low demand of offset manufacturing capacity requirements in times of high demand. However miscalculation can happen in manufacturing capacity due to overstating demand and growth projections. 4. Media views
Classified as a good hygiene product for the young and old
4. Information and communications
Local websites are set up to address consumers queries and complaints efficiently. Information on products are widely put up on the sites. 5. Law changes affecting social factors
There is no law on the hygiene factors, but a person is encouraged to practice good practices. 5. Consumer buying
Online shopping is available in this era, this allow consumers to buy
products online hassle less. 6. Brand, company and technology image consumer buying patterns Dettol users are usually the middle and older age folks, thus they are brand loyal customers, company has been around in the market for a long time and thus a bond is formed between the company and the consumers. 6. Innovation potential
Dettol has been researching continuously to achieve a high quality but low cost products for the consumers. 7. Buying access and trends
It can be easily access in any major super market or convenience store. the recent virus outspread has increased significant sales figure in the products. 7. Intellectual property issues
It is known as copyright and patent rights. Dettol has patent right to their products which allow them to maintain their product specialty in the market. 8. Ethnic/ religious factors
There is not much of any ethnic or religious factors as this is a product used by the general public. 8. Global communications
International websites on Dettol products allow consumers to understand the products better everywhere. 9. Adverting and publicity
High advertising using the media has been ongoing for many years to increase awareness. Mini roadshows in supermarkets also allow the customers to understand the product better.
6) Marketing Objective
Launching of new product to create awareness for hygiene purpose.
7) Marketing Strategy – 4Ps and their Strategy
Dettol shower gel can be used both by men and women. Dettol can adopt Modifying the Product Strategy. Alter a product’s characteristic like their quality, performance and appearance to increase the product’s value to consumers and increase sales. New features, packaging or scent can be used to change a product’s characteristics and give the sense of a revised product.
Product line extension
The product is used primarily for showering/ bathing but is also used for hand washing. A product line extension is Dettol Hand wash which is also available under the Dettol Brand.
Product Life Cycle
Since this is a Fast Moving Consumer Product, the average product life cycle of this product (if used every day) is 30 days and 2 years if not in use (if stored in a cool and dry location). The brand is entering from growth to maturity.
Dettol shower gel price range from: $5.00 to $11.00
In pricing strategy we can use the Penetration Pricing Strategy by setting a low initial price as it would attract more consumers and it discourages competitors from entering the market. It also help to maintain the initial price for a time to gain profits lost from its low introductory level and increases volume to generate the necessary profit.
Geographic pricing strategy
In pricing the seller must consider the cost of shipping. There are different strategy pricing the seller must consider the cost of shipping. There are different geographic strategies. But Reckitt Benckiser utilizes the uniform delivering pricing (the same delivering price quoted to all buyers regardless of their location) for Dettol shower gel.
Reckitt Benckiser give a special trade offer on Dettol shower gel so as to push the product into retail and an additional discount to wholesalers to maximize loading in the channel and improved distribution when demand (consumer pull) is maximum. Reckitt Benckiser can use the Bundle Pricing Strategy by placing two or more products in a single packaging to introduce the new product to the consumer. This save consumer time and cost to make separate purchase as consumer will pay a lower cost for the total bundle than if the items were purchase separately.
RECKITT BENCKISER’s can also use Odd-Even Pricing. Using this strategy consumer psychologically will be affected as our pricing end with cents instead of the whole number dollars pricing. There is some evidence to suggest that demand increases if the price drop from $500 to $499.99.
RECKITT BENCKISER’s can also use the means of Media to create awareness of our new launch product. Through advertising on:
Mediacorp Television (Channel 5, 8 and U over 35 seconds per channel per day) Meidacorp Radio (938Live, Love 97.2FM and Ria 89.7FM)
Newspaper (Today, Straits Times, Lian He Zao Bao)
Manufacturing plant is located at Mumbaiin Marwa road. Manufacturer produces on a average 6000 –8000 kilolitres annually for sales. After manufacturing company sends its products to S.K.U and C&F agents all over India to distribute it to the distributor. 2. S.K.U OR C&F AGENTS :S.K.U OR C&F AGENTS It act as moderator between distributor and manufacturer. Company itself has established their warehouse where they keep their products and then S.K.U.distribute it to the market. It provide all local help to the company. It observe the market and give response about the demand of the distributor.
Dettol are using Intensively Distribution. As this is listed as convenience product it should be distribute intensively in neighbourhood area as our target market is all the household consumers. To distribute intensively means consumers can get the product at anywhere and anytime convenience for them to purchase. We can place them at the following convenience store like: NTUC, Giant, Cold Storage, 7-11
Dettol can consider using contractual vertical marketing system to help
distribute their products. This will require Reckitt Benckiser to work in hands with distributors on a contractual basis to achieve maximum distributing efforts.
As far as distributing intensity level is concerned, Reckitt Benckiser can consider distributing the new products intensively as they are categorized as convenience products. This means that Reckitt Benckiser will want to have as many retailers carrying their products as possible. This includes places like NTUC Fairprice, Giant, Cold Storage, Watson, Guardian and sundry shops around the neighbourhood.
Dettol is positioned as a premium brand which the mother chooses for 100% protection against all germs and bacteria for her family. The mother of the family is the focus point for Dettol shower gel positioning compared to Lifebuoy and Kirei Kirei which focuses on children.
8) Budget and Control
For a new product launching, one usually do it for a maximum of 6 months. After doing some research finding on the type of advertising programs and rates, we have required an approximate of S$ 3 million. The table of Annex (1) display 1 type of our advertising cost. Control
We will be using the four main papers in Singapore for our advertising campaign. They are namely Zao Bao, Straits Time, Berita Harian and Tamil Murasu. This can ensure that almost the whole of Singapore’s population is covered. Next control to put into place will be customer feedback. This can be carried out one month after the launch and for the subsequence year on a monthly basis. This will allow us to alter the marketing mix program accordingly.
Nowadays, due to stiff competition with different varieties of home care products, Dettol had
build a well branding and reputation along with their marketing strategy. They also left a
deep impression in different age groups of people for its protection.
Dettol is listed one of the most hygiene body gel worldwide. In order to stay competitive in this market, we need to target on new market group and to create more awareness to them. In Hygiene, Dettol continues to grow very strongly in Emerging Market Areas through innovation and category expansion. Not only focusing on the product elements such as ingredient use, Dettol had invent new fragrances, packaging in order to seek more attention of new consumer and giving the existing consumer a whole new look of the product. It no longer target only on household consumer but also hopes to target all consumers regardless of gender, occupation, age or even different income level of consumers. The whole concepts of Dettol are to let consumer know the importance and benefit of hygiene by providing all knowledge they need to know. Once hygiene practice is observe, all can be healthier in many way.
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