Analysis of Cavinkare

STRATEGIC MARKETING
INDIVIDUAL ASSIGNMENT
GROWTH STARTEGIES FOR RECKITT BENCKISER
Submitted To:
Prof.Subodh Tagare
Submitted By:
Garrima Parakh
2014091
Sec AB1
INTRODUCTION
Reckitt Benckiser Group plc. (RB) is a multinational consumer goods company headquartered
in Slough, Berkshire, England. It is a producer of health, hygiene and home products. It was
formed in 1999 by the merger of the UK-based Reckitt & Colman plc. and the Netherlandsbased Benckiser NV.
The vision and mission of the company is to create a world where people are healthier and
live a better live. Their purpose is to make a difference by giving its customer innovative
solutions for healthier and happier homes.
They have even inculcated their vision in their core values .i.e. Achievement,
Entrepreneurship, Ownership and Partnership. Thus, their focus is at innovating products at
a faster pace in order to survive in global competition by striving for superior performance
and taking calculative risk in order to become global leader
RB organises 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
RB's brands include the antiseptic brand Dettol, the sore throat medicine Strepsils, the hair
removal
brand
Veet,
the
air
freshener
Air
Wick,
Calgon,
Clearasil,
Cillit
Bang, Durex, Lysol, Mycil and Vanish. It has operations in around 60 countries and its products
are sold in almost 200 countries.
SWOT ANALYSIS
Strength
Affordable Pricing.
Geographical coverage .i.e. has
presence in many countries.
Strong R&D infrastructure along with
efficient management.
Have 19 Power Brands across the
globe.
Weakness
Poor supply chain.

Retailers using expired products
which hampers the brand name.
Opportunities
Can acquire or takeover and spread

the business.
Innovate.
Create new brands for economic
class and rural market.
Threat
Competitors like P&G, HUL, and

Colgate Palmolive, ITC.
Exchange rate fluctuation.
STRATEGIES TO ACHIEVE PROFITABLE GROWTH
For RB to thrive in a highly competitive market, it must develop its marketing plans in
alignment with their customers and differentiate them from their competitors. They will
struggle to create value and generate growth if they do not develop innovative and integrated
strategies for their products. For this, they have to identify their competitive advantage that
they have in the market they are serving or intend to serve.
Currently, RB is serving health hygiene FMCG products. Their main customers are hospitals,
clinics and urban households. Some of their famous brands include: Dettol, Durex, Harpic,
Lizol, Veet, Cherry Blossom, Dispirin, Colin, and Vanish.
RBs main strength lies in the areas like health, hygiene and home. For this reason they have
even acquired Paras and are investing in innovation of the same. The following strategies they
can be incorporated in their business plan:
Investing in Power Brands: Since RBs main motto is Healthier Homes, they can bring
together their power brands around the same objective and make them a priority.
They have around 19 Power brands which makes up more than 70% of their business.
They can invest in its R &D, promotion, distribution and hence try further increasing
its market share.
Catering to Geographical Needs: Different countries have different preferences. The

products that are famous in North America may not be liked in Asia or so. RB needs to
deploy different strategies according to different geographical locations. For example,
taking the case on India, Cherry Blossom is a great brand in India but not the same
anywhere else. Therefore they should invest and nurture the local hero in order to
satisfy the demand of its customer of that region.
Acquisition & Takeovers: As we all know India is a country which wants Value for its
Money, RB provides the same. Its prices are usually affordable to its customer. But
just on the basis of one factor they wont be able to grab market share. Due to strong
competition from its rivalry their market expansion is slow. In order to overcome this
barrier RM can acquire other companies as it has done with Paras which align with
their already existing brand.
Rural Market: Further penetrate into rural markets and improve the overall
distribution system. Dettol, one of the Power Brand of RB in India can get a tough
competition from Savlon which has been currently acquired ITC. ITC has deep
penetration in rural markets especially with the help of e-choupal. In order to build its
network out there, RB has to stretch its distribution.
In the current scenario urban markets are at a brim of saturation. Most of the big
companies are now investing in rural market. Hygiene being a main issue in rural area
will align with the motto of RB. One of the hygiene products which is famous there is
Lifebuoy. This also pose a threat to Dettols soaps. The company in order to expand its
market have to invest in rural India by coming out with 25g, 50gm of soaps, in different
varieties and small denomination.
It can further expand its rural base by taking Mortein coil, sachets of Harpic & Lizol for
weekly wash since in these areas there are community toilets, downward stretching
of brands like Durex .i.e. by making the name more localized which will be easier for
the people to understand, changing its packaging.
Educating Customers: RB also need to invest in educating the customer in using

certain brands like Veet .i.e. hair removing cream , Durex .i.e. condoms. Indian
consumers are still very shy and narrow minded with respect to such products. The
sales force must be well equipped and well versed in educating as well as handling the
questions of the customers.
Innovation: RB needs to diversify and innovate its product but in the right direction.
They had done blunder by creating dish washing liquid under Dettol. They need to
stretch the brand keeping in mind its value proposition, its core competency and not
extend it just for the sake of same.
Discouraging Malpractices: As mentioned in the SWOT analysis, retailers try selling

expired products in the market. This provides a negative connotation to the Brand.
The company has to keep a tight watch on the retail outlets in order to avoid such
malpractices.
Cost Cutting: Lastly, RB in order to cut down its operational cost can set up
manufacturing plants in India. Large number of unskilled labours along with cheap
skilled man force will help them in bring down their cost. In short run setting up plant
and machinery will cost huge sum of money but in long run due to economies of scale
and cheap resources it will be beneficiary to them.

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STRATEGIC MARKETING

Poor supply chain.

Can acquire or takeover and spread

Competitors like P&G, HUL, and

STRATEGIES TO ACHIEVE PROFITABLE GROWTH

Catering to Geographical Needs: Different countries have different preferences. The

Educating Customers: RB also need to invest in educating the customer in using

Discouraging Malpractices: As mentioned in the SWOT analysis, retailers try selling

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