Final Report Dettol

a project report

on

< RECKITT BENCKISER (INDIA) LIMITED>

Submitted by-

Priyankita Hazarika

Roll no:- 28

3rd Semester

INTRODUCTION

Dettol, the brand synonymous with protection from germs, had for long been voted as India’s most trusted brand. In September 2008, the marketing team of Dettol was reviewing the brand’s performance in its 75th year of existence to formulate a three‐year plan. Dettol’s growth trend had been slow but steady over the years and a number of initiatives taken in the recent years had started yielding results. The brand started its journey in 1933 as antiseptic liquid, but over the years, it has been extended to a number of product categories like toilet soaps, liquid handwash, liquid bodywash, shaving cream and plaster strips. The growth trend in the last few years had been encouraging with share showing an accelerated upward growth in most categories, but the team felt share gain could be much faster. The brand team decided to further build on the growth trajectory and set itself a visionary target that of doubling Dettol’s overall share in next three years in the combined market of the product categories it is present in (Antiseptic Liquid, Bar soaps, Liquid Handwash, Bodywash).The team knew that it had to address various challenges to achieve its ambitious target viz.consumers saw the need for germ kill only in specific situations, resulting in irregular usage and seasonality. The brand had to fight in a competing environment in which new variants and re‐launches were used for driving growth, it was critical to determine what & where should be the business thrust to optimize the marketing spend and further accelerate the brand growth.

COMPANY PROFILE

Reckitt Benckiser was formed on 3 December 1999 as a result of the merger with Reckitt & Colman plc and Benckiser N.V. It is headquartered at Berkshire, United Kingdom. Worldwide, the company has a leading position in household cleaning and health & personal care. Reckitt Benckiser products are sold in 180 countries and they have operations in 60 countries. Reckitt Benckiser is about passionately delivering better solutions in household cleaning and health and personal care to customers and consumers, whatever they may be for the ultimate purpose of creating shareholder value.The Company's principal activities are manufacturing and distributing a wide range of household and personal products. Reckitt Benckiser products are sold in 180 countries and they have operations in 60 countries. Products of the Company include antiseptics, toilet care products, shoe care products, mosquito repellants and personal health care products. The Company manufactures the Dettol branded antiseptics, soaps, talc, medicated creams and medicated plasters, Disprin analgesic tablets, Lizol floor cleaner, Mortein mosquito repellants and rat killer, Robin power, Harpic lavatory care product, Cherry shoe polish and Collin glass cleaner.

ABOUT THE PRODUCT

I. BRAND NAME

Dettol Liquid Soap today is the leader in the Indian handwash liquid soap category. Dettol - The very name brings to mind a brand synonymous with health and hygiene. Most of us would have used the antiseptic lotion at sometime or the other, be it as an additive in water with our daily bath, cleaning the floor of the house, as an after-shave or simply to clean wounds/burns. Indeed such is the top-of-the-line recall of this brand that it’s been unfailingly named as one of the 20 most popular brands in India for the last 2 decades. The Dettol brand today is the most trusted brand in India and is regarded across the country as the Gold Standard in protection. Dettol products are available across all metros and towns and villages in over 15 lakh outlet. Consumers see Dettol as an ‘expert’, as something which is effective and versatile and guarantees protection from germs. It has been likened to a bodyguard who protects them from the unclean and unhygienic outside world. The brand’s versatility stems from multiple uses of the antiseptic liquid which offers protection in so many different forms. Dettol’s packaging is distinct in its very own way. The green & white colours are associated with hospitals. All Dettol products have a sword on the pack, which is a symbol for fighting germs and infection. Over the years, the clouding action and the sword have become synonymous with the brand and have been creatively used in Dettol advertising.Over the years brand Dettol has been extended and has made its presence felt in a number of product categories. While Antiseptic Liquid was the category where the brand was born and where it continues to command a dominant market share of 85%, its revenue growth is significantly driven by its presence in the other product categories of toilet soaps(or bar soaps), Liquid handwash, Body wash, Shaving Cream and Plasters too. Each of these markets are at varying stages of evolution, so while in one market the brand ‐ as the leader ‐ had the responsibility of driving overall market growth, in other markets, the brand strategy had been to garner share. Fundamental to all the categories was existence/creation of a consumer need for germ protection satiated by Dettol’s trusted promise.

II. PRODUCT ATTRIBUTES

Although it was being used in hospitals and nursing homes for first aid and disinfectant uses like cleaning wards, washing linen, etc. Consumers were also using it for bathing, mopping, shaving and other secondary purposes.

The price at which the soap sells is almost at par with other premium bath soaps like Lux, Palmolive, etc.

The peculiar odour of Dettol is one of the most omnipresent smells in dispensaries, clinics and hospitals. And as an antiseptic germ-killer and a potent disinfectant, Dettol must be unparalleled in medical history.

Being usable for different kinds of skins, dettol can also be used safely during different seasons without any negative effects. Many other soaps have this effect of inducing skin to peel off during winters which is not the case with Dettol. For people with sensitive skin dettol has also introduced its variant Dettol Skincare.

be 100% sure

The tagline “be 100% sure” acts as a unique selling point for its varied products. It manages to gain the confidence of consumers such that they are certain that by using dettol they remain germ free totally.

Consumers see Dettol as an ‘expert’, as something which is effective and versatile and guarantees protection from germs. It has been likened to a bodyguard who protects them from the unclean and unhygienic outside world. The brand’s versatility stems from multiple uses of the antiseptic liquid which offers protection in so many different forms.

Longitivity

III. DETTOL AND ITS COMPETITORS

The Antiseptic liquid market

The Antiseptic liquid market in India is dominated by Dettol Antiseptic Liquid, which has close to 85% share. Johnson & Johnson’s Savlon is the other significant player with a market share of 13%. A few years back, this market saw introduction of Suthol brand antiseptic liquid from G.D. Pharma (makers of Boroline). Dettol Antiseptic Liquid is under pricing control of a Govt. authorized body.Studies showed that while First Aid use in the households had a near 100% penetration, many homes were using it for secondary purposes. In order to exploit this potential in 2005, the message strategy saw a shift to communicating secondary usages like adding Dettol to bathing water, disinfecting the floors, nappy rinsing etc. In early 2008, the brand’s communication took another step forward with its “Aapka Dettol Kya Kya Karta Hai” campaign – that showcased how brand users across the country had formed their own special bond with the brand – using it whenever and wherever they felt a need for disinfection.

Other Players in the antiseptic liquid market:

Savlon: It is the key direct competitor in the Antiseptic Liquid market. It was launched with ‘nosting with Savlon’ campaign. It attempted to pull the consumer base towards its product promise of non‐sting. In Feb 2005, it started with a new ‘70% doctors prefer Savlon’ advertisement with heavy media support. However, brand’s share has more or less remained stagnant over the years. Since beginning of 2007, Savlon has been off air.

Suthol: G.D. Pharma launched Suthol antiseptic liquid in April 2006 in their stronghold state ofWest Bengal, which was positioned on soothing sensation, from irritation due to prickly heat, mosquito bites, after‐shave, etc. Both TV and print media were used to promote the brand in West Bengal during the launch phase. The brand has shown strong share gain mainly in the East. In 2007, the brand was rolled out to other states, with heavy print support in Delhi & West Bengal, but with little success beyond East.

The Bar Soap Market

The Indian bar soap market has a large number of players that use different appeals to

connect with their consumers. The market can be classified into about ten different appeals such as Beauty, Health, Fairness, Freshness, Herbal, etc. While the market is dominated by beauty players (52%share), health platform constitutes approximately 23% of the total market Dettol Soap was launched in India in the early 80s. The launch was based on consumer feedback on Dettol Antiseptic Liquid, where secondary usage of the product always came up. Since many consumers used Dettol in their bath water, the company thought of offering Dettol in a more convenient form of soap. Variants in bath soap category are Dettol Original,Skincare and Cool.The stronghold and dominance of the brands and their distribution, varies across regions and urban and rural markets brands are strong across the market, others have their strongholds in only some of the regions in the country. Dettol variants have contributed incrementally to Dettol soap sales and now make up about 25% of total Dettol soap sales. However, given its heritage and years of existence, Dettol Original Soap continues to be the lead variant, and top of mind when it came to Dettol Soaps.

Key Players in the soap market:

Lifebuoy: Post a major positioning change in 2002 from “male victorious health” to “family health” in the bar soap market, Lifebuoy relaunched itself in March 2004 with improved product and new claim of “100% better germ protection”, and since then has been trying to make strong its equity on germ protection through various communication and new product launches. In February 2005, Lifebuoy has launched a new campaign adding a layer of social good in its communication with a tagline of “Have no Fear”. In November 2007, another new ad was launched comparing vs. beauty soaps in general.Lux: It relaunched itself in 2004, with better packaging graphics and upgraded variants in linewith the global range. It was highly visible on‐air with a range of Aishwarya Rai copies. Post decline of share in early 2005, Lux launched a new campaign in Sep 2005 with Shahrukh Khan and four prominent film actresses to commemorate 75 years of Lux, via special Promo packs & new pack graphics. In Feb 2007, it again launched a new campaign, ‘Surat bhi, Khoobsurat bhi’. It launched new variant copies in 2008 (Peach cream & Strawberry cream) offering fruit based skin care.Savlon: In the soap category, it is positioned on the ‘Gentle Protection’ proposition. Its share hasremained flat at 0.6% over the years.

The Liquid Handwash Market

Dettol introduced the Liquid Hand Wash in 1994. It was known that many consumers use Dettol Soap for cleaning hands. Dettol Liquid Soap gave the consumers a soap in a more modern and convenient format for handwash. In hand washing, the need for germ protection is top most on consumer’s mind. The size of the liquid hand wash market is relatively small –Rs. 59 Crores by end of 2007. The key reasons for low penetration of the category are ‘expensive/low value for money’. Amongst users, the motivators are ‘protection from germs’ followed by ‘convenience of use’. Given category building efforts, the penetration has been showing a steady increase.The segment is broadly split in two formats:i) Dispensing Format: Pump Packsii) Refilling Formats: Refill sizes (varying from 200ml to 5 ltr)The category evolution has been based on the increasing penetration of the Pump pack over a period of time. The dispensing pack dominated the market with over 60% contribution (2005).A large base of consumers still re‐purchases the Pump pack instead of using a refill pack. In building the segment, Dettol has played the role of the market leader and the innovator. In 2005, it was the first player to launch the Pouch refill pack. As the market evolved and the Pouch refillsegment grew, all the other competitors entered the pouch refill segment in 2007. Similarly, the latest product innovation offering from Dettol has been the launch of the small pump pack, at a lower pick up price, in the first quarter of 2007.There are multiple product innovation opportunities from the international stable of Dettol hand Wash – which the brand team is evaluating for future launch. As per consumer research, the number 1 category driver for hand washing has been ‘need for protection from germs’. Additionally, consumers look for product attributes like nice fragrance and softness. Dettol Liquid Hand wash currently has three variants, namely, Original, Skincare and Sensitive.

Dettol’s major competitors in this segment

Lifebuoy: It became a serious player in Liquid handwash market in 2006. Its share went up from 9.3% to 19.8% for the year 2007. Positioned on a ‘protection from germs’ platform it carries thetagline of ‘have no fear’ in the Liquid handwash segment too. Other than Dettol, it is so far the only significant player that invests in the category. With media support and strong promotional support, supporting its relaunch, it has made quick gains in this segment.

Fem: Fem, from Ivory chemicals, was historically the key brand in liquid soap category. It used to be the strong number two brand until recently. However, it has lost share heavily since the Lifebuoy Handwash relaunch. The brand is positioned on the platform of ‘soft hands and moisturizing care of Fem’. In 2007, it launched a premium range of products under a sub brand of Fem Cool Angel.

Palmolive: Palmolive launched handwash in October 2003 with a premium pricing and imported

stocks. In Oct 2006, they dropped prices from Rs. 90/‐ for 300ml Pump to Rs. 55/‐ for 250ml Pump. While the brand is supported by promotions mainly in the modern trade, it is not active on air.

Savlon: It launched its handwash in March 2005 on the ‘gentle protection’ platform. It currentlyhas a 2% share. It is not supported on air.

The Bodywash Market

Dettol bodywash 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. Its category size was Rs. 16 Crores in 2007. The market is dominated by a few key players namely, Lux Body Wash, Palmolive and Dove. The current user profile of Body Wash is upper SECs who reside mainly in Metros. The user profile currently also has a slight female skew and the association of the product usage is with feelings of indulgence and ‘pampering oneself’. The category is considered ‘premium’ due to its high priced products.Given the size of the market, the support behind the category has been overall at a rather low level. The overall penetration in India is a meagre 1%. However, trends in other semi‐developed markets show that shower gels

clearly the body‐wash market of the future. In many developed countries, use of soap is changed to bodywash format (almost to 50%).

Players in the market:Lux: It launched the MTV range – Friday Night Fever and ran spots on MTV.Available at Rs 40 and 80.Palmolive: It has launched the ‘Spa’ range with two variants – Thermal and FirmingDove: Has picked up in the bodywash market and launched its new exfoliating and aloe vera range.

Other C ategories

Shaving Cream: Dettol launched its shaving cream in 1996.This has also been another successful extension for the brand. The insight into developing this product came from the use of Dettol Liquid in shaving water. Major competitors in this category are Old Spice, Gillette, Pamolive, Park Avenue.

Plaster: Dettol Plaster is an important brand in the basket since it is directly used in first aid andhence adds to the first aid range and core equity of the brand. The major competitor in the category is Band‐Aid from Johnson and Johnson.

COMPETITIVE ADVANTAGE OF DETTOL

Key success factors:

Dettol Surakshit Parivar: An on‐ground consumer contact program, where young mothers are educated on good hygiene practices and school children are educated on hand wash habits.

Dettol is working with Global Hygiene council, a council working towards increasing hygiene awareness across countries. The results of and recommendations from the studies done are shared through the mass media.

Periodic advertorials on good hygiene practices, threat of illnesses, hygiene habits, educational advertorials, etc are some of the other initiatives.

SUMMER ADVERTISEMENT

MONSOON ADVERTISEMENT

WINTER ADVERTISEMENT

RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

Understanding consumer behavior, how consumers buy, what influences purchasing To know the various steps involved in purchase decision.

SAMPLING FRAMEParents having children of different age groups and regular office goers . Sample size taken was 30.

LOCATION

Silpukuri to Chandmari area (Guwahati)

RESEARCH DESIGN

The research method used is exploratory as well as descriptive in nature. The research is intended to find out the purchase decision of consumers of dettol in and around Gwahati Club. This is done to gain an insight and understand the purchase decision process.

DATA COLLECTION PILOT SURVEY : A pilot survey was done taking 5% of the sample of employees and the questionnaires were also tested before the final distribution.

PRIMARY DATA :Collection of information through standardized questionnaires. A questionnaire was prepared for all the non-officers.It included questions both open- ended and close-ended, rating method and likeart scale. Ther was informal discussion with the employees.

SECONDARY DATA : Secondary data consisted of materials in-house journal like- newspapers,magazines,journals company website etc.

CONSUMER BUYING BEHAVIOUR

Steps in consumer decision making model:-

The Howard-Sheth model of buying behavior attempts to explain the complexity of the consumer decision making process in case of incomplete information. This model suggests three levels of decision making

A) Extensive problem solving. B) limited problem solving. C) Habitual response behavior

A)Extensive problem solving

At this level the consumer does not have any basic information or knowledge about the brand and he does not have any preferences for any product.

In this situation, the consumer will seek information about all the different brands in the market before purchasing.

B)Limited problem solving

This situation exists for consumers who have little knowledge about the market, or partial knowledge about what they want to purchase.

In order to arrive at a brand preference some comparative brand information is sought.C)Habitual response behavior

In this level the consumer knows very well about the different brands and he can differentiate between the different characteristics of each product.

According to the Howard-Sheth model there are four major sets of variables: Inputs. Perceptual and Learning Constructs Outputs Exogenous(External) variables

PURCHASE DECISION STEPS

1. Need/want/desire is recognized At the outset the consumer is determined that he is not satisfied and wants to improve his situation. A consumer must be motivated enough to actually look for a particular product. However, if the consumer does have the internal drive to satisfy the need they will continue to the next step.

2. Search for information Assuming consumers are motivated to satisfy his need, they will next undertake a search for information on possible solutions. The information acquired may be from past experience or locate information from outside sources. To appeal to consumers who are at search stage, marketers should take efforts to ensure consumers can locate information related to the product.

3. Evaluate options Consumer’s search may result in a set of options from which a choice can be made. There could be two levels at this stage. At level one the consumer may create a set of possible solutions to their needs while at level two the consumer may be evaluating particular products within each solution.

4. Purchase In many cases the solution chosen by the consumer is the same as the product whose evaluation is the highest. However, this may change when it is actually time to make the purchase. The ‘intended’ purchase may be altered at the time of purchase for reasons as: the product is out-of-stock, a competitor offers an incentive at the point of purchase, etc.

5. After-Purchase Evaluation Once the consumer has made the purchase they are faced with an evaluation of the decision. If the product performs below the consumer’s expectation then he/she will re-evaluate satisfaction with the decision, which at its extreme may result in consumer returning the product while in less extreme situations the consumer will retain the purchased item but take a negative view of the product. Such evaluations are likely to occur in cases of expensive goods. Thus to avoid such situations marketers need to more receptive and even encourage consumer contact.

ANALYSIS

Respondents were asked as to what were the major attributes to their purchase of dettol. This gives a clear cut idea as to the main reason for consumer’s preference for a particular soap or handwash.

Lathers

well

Leave

s skin

soft

Pleasan

t frag

rance

Rinses ea

sily

Cleans e

ffective

ly02468

101214161820

Strongly agreeAgreeNAND*DisagreeStrongly Disagree

INTERPRETATION

Consumers are faced with purchase decisions nearly every day. Out of a total of 30 samples 70% are regualr users of dettol. For the others they are planning to or have not found it very essential to jump to dettol.

Minor New Purchase - These purchases represent something new to a consumer but in the customer’s mind are not a very important purchase in terms of need, money, or other reason.

Minor Re- Purchase - These are the most routine of all purchases and often the consumer returns to purchase the same product without giving much thought to other product options.

With its distinct smell, color and sting, it evokes an emotional bond in millions of hearts – “if it’s Dettol, it’s working”. Dettol advertising starting in 1960s has centered on educating consumers on the need for protection from germs, while offering solutions to manage the problem of germs wherever and whenever they may occur. From the table above it is clear that consumers use dettol mostly because they think it cleanses effectively.

Consumers were asked why dettol enjoyed a competitive advantage over others. The responses were follows :-

First to enter the market

Product diversification

Customer loyalty

Continuous innovation

Price

Physical attributes-colour, smell and stinging sensation.

0 2 4 6 8 10 12 14

Strongly DisagreeDisagreeNAND*AgreeStrongly agree

INTERPRETATION

“Be 100% Sure”, the present slogan reflects the trust consumers have in Dettol. They know when they use Dettol, they can be 100% sure of getting superior germ protection for their family’s health and wellbeing. From rinsing a new born’s nappy to mopping your house every morning; from applying it to a child’s bruises to adding drops in ones shaving water; Dettol has found a usage at every life-stage. This way brand appeals to families as it assures germ protection to all the customers globally.

Most of the consumers agree that dettol enjoys competitive advantage because of customer loyalty. Using hygiene as the major theme, Dettol is trying to increase the usage of the product among the households. Because of the excellent brand equity, Dettol is in a position to ride this wave.

Thus we can say that Brand also plays a major role in purchase decision process.

Respondents were asked what factors motivated them to use dettol

Effective killinggermsProtects againstinfectionMultiple use of the productRecommended bydoctors

INTERPRETATIONEffectiveness in killing followed by multiple uses of the product was the most sought after reasons for the purchase decision of the customer. However recommended by doctors donot play any significant role in purchase decision process.

Now in order to know, whether advertisement play any role in consumer purchase process, or do words of mouth or suggestions by doctors also play any role, respondents were asked how did they come to know of the band. The responses given were as follows:

Electronic media

Parents Word mouth

Print media Doctors 0

2

4

6

8

10

12

14

16

Series1Series2

INTERPRETATIONTV Ads played the most important role in creating awareness. Thus we can say that awareness of any product is a major factor for the pre-purchase decision in the customer buying process.

RECOMMENDATIONS:

Glass bottles to Plastic bottles

Reduce burning sensation

Aggressive marketing strategy for Dettol Shaving Cream

Smaller size of Dettol Soap’s to enable the traveling people to be brand loyal.

Improving the Dettol Band-aid quality.

Need for Dettol Shaving Foam & Gel for younger Generation.

CONCLUSION

Dettol celebrated its 75 years of existence in 2008. This highly popular antiseptic brand has come a long way since 1933. After a plethora of extensions and experiments, this brand is still ruling the Indian market as the most preferred antiseptic lotion and also as a premium soap. The brand celebrated its 75 years by reinforcing the germ killing positioning and the tagline" Be 100% sure". The brand is currently running a campaign highlighting the efficiency and the multi-uses of the product.

Dettol now taken the platform of a multi-use antiseptic which can be used during bath, to clean wounds, to sterilize clothes,etc. Along with this initiative, the brand also reinforced its commitment towards hygiene. The brand has selected hygiene as the core brand value and theme which it will fight for. Out of RBIL ‘s total turnover Dettol Antiseptic Liquid contributes 22% and Dettol soap about 10%. According to the Economic Times Survey of India’s Most Trusted

Brands,Dettol was rated fifth in the year 2001and first in 2002. The brand is endorsed by the Indian Medical Association and has consistently been voted as one of India’s Most Trusted Brands (ORG Marg Brand Equity Survey).

Since year 2007, Dettol has also brought the Global Hygiene Council to India and shared its learning’s with media and consumers alike.