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Transcript of Reckitt Benckiser
Bargaining Power of Suppliers:
Strategic Context & Terminologies
Reckitt Benckiser penetrates the market by attaining the highest market share. The market share of dettol for the past years.
The company was formed by a merger between Britain's Reckitt & Colman and the Dutch company Benckiser NV in December of 1999.
The company has the sales of over 6 billion pounds consistently going ahead of the industry due to its leading brands, its operation in over 60 countries and sales in 180.
Net revenue to come from more sustainable products
Reduction in the water impact per product by one-third across its lifecycle
Reduction in carbon footprint per dose
The company focuses well in its advertising strategy. Right from the 1960’s, its advertising strategy has helped in educating its consumers on their need for protection from germs.
Internal: employees, managers an directors
Connected: shareholders, customers, suppliers
External: community, government and other organizations
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.
Is to retain its position & sell more products of different kinds. And vision is before 2015 become the number 1 house hold sellers in Pakistan & sell all types of products it has. Influencing people to use new products through making celebrity endorsement & making daily life usage product & make them highly using products for all.
We don’t just aim high, we strive for out performance.
Daring to be different, taking calculated risks.
Leveraging relationships for out performance.
Doing whatever it takes to win.
Dettol soap is priced at retail price of Rs. 38.00 (115 gms) and Rs. 26.00 (70 gms) which is at a premium of Rs 3 and Rs. 2 to its competition (Safeguard and Lifebuoy). RB give a special trade offer on Dettol Soap of 2% during the summer season so as to push to product into retail and an additional discount of 4 % to wholesalers to maximize loading in the channel
Dettol also launched an animated movie along with a website and video game under the name of Dettol warriors.
RB launched Dettol body wash in India and initially now they are importing it to different countries but gradually they will start delivering the production technology so each country will be able to produce on their own.
Dettol comes in different flavors like original, skin care, cool and re-energize. Each and every product has its specific usage specialty in ones every day use.
Rb adopts diversification strategy widely. Rb introduced Veet in health care category few years back and it is consider as one of the power brand of RB.
BCG growth share matrix
Shell's directional policy matrix
This matrix measures the health of the market and your strength to pursue it.
The SPACE matrix is just a little bit more complex than the SWOT analysis. The SPACE matrix evaluates different variables and assigns them a score considering how important they are for the situation of the company.
Porter's 5 forces analysis:
This threat is fairly low
Wide range of suppliers
Wide range of products
Bargaining Power of Buyers
This is a medium threat
No one buyer counts for more than 10% of RB's sales
Big stores such as the supermarkets for whom individual products are not of great importance
Bargaining Power of Competitors:
This threat is fairly low
Operating in so many markets
RB and its competitors enjoy economies of scale and the benefit of experience in developing products
Threat of Substitutes
This is a medium threat
Threat of new products to enter which substitute the existing products
Intensity of Competitive Rivalry:
This is high
Unilever, P&G and Colgate Palmolive are somehow competing directly
Dettol relatively has low competition in pakistan
Due to competitive rivalry high level of acquisition or merger activity likely to continue in future
political instability in Pakistan
rapid amendments in laws and regulations
globalization brought opportunities for RB
economic downturn in Pakistan is effecting the sales
demands in developing countries is not stable
social movement towards environment awareness
Rb committed to reduce carbon impact by 20% by 2020
patents right for new products to ensure that they are not copied by their competitors
use of state of the art technology to maintain high quality
sales are high due to innovation
Environmental friendly products
promoting sustainable development
utilization of renewable resources
Strategic Planning Issues
Impacts on managers:
Strategic planning make them to realize their role
Impacts on managers decision making
Help managers to achieve company goals
Role of planning:
Mapping out exactly how to achieve particular goals
Generating plans for actions
Deciding what needs to happen in the future (today, next week, next month, next year, or over the next five years)
When to plan:
Rb always plan and set their goals for the next ten years.
Who to involve:
In RB top level managers consists of the board of directors, president, vice-president, CEOs and others. They are responsible for controlling and overseeing the entire organization
Reach consumer and retailers at time
Recruit people with minimum qualification bachelors
Set new standards for promotions
Dettol Antiseptic Liquid’s segmentation for family life cycle is no segmentation at all. It’s a product for the whole family. Everyone from a kid to the grandfather can use the antiseptic liquid for various purposes.
Synergy, culture and values
Achievement - We don’t just aim high, we strive for outperformance.
Entrepreneurship - Daring to be different, taking calculated risks.
Partnership - Leveraging relationships for outperformance.
Ownership - Doing whatever it takes to win.