Marketing assignment 1 group12
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Reckitt Benckiser (RB) has a product mix consisting of 4 product lines - Health, Hygiene, Home, and Portfolio. The product mix includes over-the-counter medicines, cleaning products, and some food brands. RB focuses on 19 Powerbrands which make up 70% of revenues. The company's marketing strategy is to invest heavily in brand marketing through education programs to build brand equity. RB targets both developed and developing markets with campaigns tailored to each. Competitors include Unilever in home care, P&G in hygiene, and Dabur in health care.
![Reckitt Benckiser MBA631 Group 12
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Basis of Product Mix
Product mix refers to the complete range of products present within a
company. RB’s strategy is to have a highly focused portfolio
concentrating on its 19 most profitable brands, which are
responsible for 70% of net revenues.
The product line is a subset of product mix & generally refers to a type
of product within an organization. RB has 4 product lines namely
Health, Hygiene, Home and Portfolio (including Food).
The total number of products in all product lines form the length of
the product mix. Currently, RB has a worldwide product length of
35[1]
Width of the product mix is equal to the number of product lines &
is 4 for RB.
Consistency of the product line is moderate, as not all products
are closely related within the product lines.
Consumer perspective
From consumer’s perspective, the product mix focuses mainly on Over-
the-counter medicines, Domestic and commercial cleaning solutions,
some specialized cleaning products like Woolite, Glass plus and Dettol.
Some products fall into more than one product lines , like Dettol(health
& hygiene ) and Harpic (Home & Hygiene).In this report, classification
is as per the annual report of Reckitt-Benckiser.](https://image.slidesharecdn.com/marketingassignment1group12-161025113827/85/Marketing-assignment-1-group12-3-320.jpg)
![Reckitt Benckiser MBA631 Group 12
8
References
[1] WEBSITE,WIKIPEDIA.ORG.
[2] ANNUAL REPORT AND FINANCIAL STATEMENTS,RB GROUP,2015
[3] ANNUAL REPORT AND FINANCIAL STATEMENTS, RB GROUP,2014
[4] ANNUAL REPORT AND FINANCIAL STATEMENTS GROUP,2013
[5] ANNUAL REPORT AND FINANCIAL STATEMENTS, RB GROUP,2012
[6] ANNUAL REPORT AND FINANCIAL STATEMENTS, RB GROUP,2011](https://image.slidesharecdn.com/marketingassignment1group12-161025113827/85/Marketing-assignment-1-group12-9-320.jpg)
Marketing assignment 1 group12
- 1. Reckitt Benckiser MBA631 Group 12 0 Marketing Assignment 1 Group 12 Kriti Doneria 16125022 Aayushi Gupta 16125002 Shabaz Belim 14125
- 2. Reckitt Benckiser MBA631 Group 12 1 Product Mix Reckittt Benckiser Health Strepsil Mucinex Nurofen Gaviscon Durex Dr. Scholl’s Cepacol K-Y jelly Suboxen Lemsip Aerogard Airborne Bonjela Hygiene Lysol Dettol Calgon Cillit Bang Harpic Vanish Braso Cepacol d-CON Glass Plus Mr. Sheen Home Airwick Mortine Harpic Amphyl Glass Plus Mr. Sheen Sani Flush Woolite Portfolio French’s Mustard Frank’s RedHot
- 3. Reckitt Benckiser MBA631 Group 12 2 Basis of Product Mix Product mix refers to the complete range of products present within a company. RB’s strategy is to have a highly focused portfolio concentrating on its 19 most profitable brands, which are responsible for 70% of net revenues. The product line is a subset of product mix & generally refers to a type of product within an organization. RB has 4 product lines namely Health, Hygiene, Home and Portfolio (including Food). The total number of products in all product lines form the length of the product mix. Currently, RB has a worldwide product length of 35[1] Width of the product mix is equal to the number of product lines & is 4 for RB. Consistency of the product line is moderate, as not all products are closely related within the product lines. Consumer perspective From consumer’s perspective, the product mix focuses mainly on Over- the-counter medicines, Domestic and commercial cleaning solutions, some specialized cleaning products like Woolite, Glass plus and Dettol. Some products fall into more than one product lines , like Dettol(health & hygiene ) and Harpic (Home & Hygiene).In this report, classification is as per the annual report of Reckitt-Benckiser.
- 4. Reckitt Benckiser MBA631 Group 12 3 Marketing Strategy RB invests disproportionately in high-potential markets (16 Powermarkets) and its faster growing brands (19 Powerbrands). Their product mix doesn't rely on any one market or brand for an overall broad based growth of the company. RB focuses on underpenetrated markets to satisfy particular needs of the customers through their products. To drive growth, RB's marketing strategy is to invest heavily in Brand Equity Investment (BEI) through penetration-building and consumer education programmes. This helps them create a favourable, unique and strong brand image in the minds of the customers while focussing on their mission – Healthier lives Happier homes. Dettol invests in many educational programmes around the world teaching young school age children about healthy hygiene habits. RB makes its programmes fun, engaging and interactive for the
- 5. Reckitt Benckiser MBA631 Group 12 4 children. For instance: In China, they helped break two world records, working with Save the Children and the local health campaign committee in Anhui province. 2,571 children created a new record for the longest handshake chain. Adult volunteers also joined in the fun, with 366 health volunteers setting a record for the most participants in a hand washing relay. RB also works with charities and NGO’s to health care professionals such as paediatricians and midwives and various governmental organisations in over 40 countries around the world to reach new moms and inform them on basic yet powerful healthy hygiene habits to protect the health, not only of their new arrival, but their whole family. Within South Africa, Dettol has reached over 3.5 million moms in both the government and private health sector, informing them of these basic hygiene habits. RB India is using jingles like “Dettol Dettol ho” to remind as well as teach people about the habit of hand washing. Taking a break from its signature visual imagery of mothers and young children, RB India is now using campaigns that feature men and women across age groups at outdoor locations like fairs, weddings and railway platforms. RB launched the Harpic All-in-One Toilet Solution Campaign in Nigeria. Based on consumer preferences through research, it identified a special celebrity (Helen Paul ) whose character is congruent with its brand. They started the Harpic All in One Challenge where she put traditional toilet cleaning methods to the test to prove Harpic efficacy to consumers through Mystery Home visits as well as other door- to- door activities.
- 6. Reckitt Benckiser MBA631 Group 12 5 Competitors HUL – home care product line P&G – hygiene care product line Dabur – health care product line
- 7. Reckitt Benckiser MBA631 Group 12 6 Strengths 1.Its brands are of use to every society,region,religion or sect.. 2.RB 's prooductsmeet under-served demands giving it a sustaianble competitive edge. 3.RB operates in higher margin markets like health which gives it room to invest in innovation and in building brands. 4.Its brands enjoy a socially responsible brand image, firmly ingrained in the minds of its consumers. For instance, the penetration- building initiatives within Dettol and Harpic support the Government’s health and hygiene initiatives in India. Similarly, Durex and e-commerce driven initiatives have led the growth of its brands in China. Weaknesses 1.Uneven distribution of benefits 2.Since Rb operates in underpenetrated markets, extensive marketing is required in the form of educational campaigns etc to educate the customers.
- 8. Reckitt Benckiser MBA631 Group 12 7 Financial Analysis On an Average,20.6% of the previous year’s revenue was spent in advertising alone each year. In 2015,74% of the revenue came from Health and Hygiene Alone . Power brands are the cash cows of RB. 0 2 4 6 8 10 12 14 2011 2012 2013 2014 Ad costs and Net revenue for RB Ad.costs worldwide(billions) Net Revenue(Billions USD) 0 500 1000 1500 2000 2500 3000 3500 4000 4500 2011 2012 2013 2014 2015 Yearly revenue in Millions GBP Health Hygiene Home Portfolio
- 9. Reckitt Benckiser MBA631 Group 12 8 References [1] WEBSITE,WIKIPEDIA.ORG. [2] ANNUAL REPORT AND FINANCIAL STATEMENTS,RB GROUP,2015 [3] ANNUAL REPORT AND FINANCIAL STATEMENTS, RB GROUP,2014 [4] ANNUAL REPORT AND FINANCIAL STATEMENTS GROUP,2013 [5] ANNUAL REPORT AND FINANCIAL STATEMENTS, RB GROUP,2012 [6] ANNUAL REPORT AND FINANCIAL STATEMENTS, RB GROUP,2011