Reckitt Benckiser Group Plc

FMCG INDUSTRY IN INDIA

Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged

goods. Items in this category include all consumables (other than groceries/pulses) people buy at

regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste,

shaving products, shoe polish, packaged foodstuff, and household accessories and extends to

certain electronic goods. These items are meant for daily of frequent consumption and have a

high return. The Indian FMCG sector is the fourth largest sector in the economy with a total

market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a

well established distribution network, intense competition between the organized and

unorganized segments and low operational cost. Availability of key raw materials, cheaper labor

costs and presence across the entire value chain gives India a competitive advantage. The FMCG

market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration

level as well as per capita consumption in most product categories like jams, toothpaste, skin

care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian

population, particularly the middle class and the rural segments, presents an opportunity to

makers of branded products to convert consumers to branded products. Growth is also likely to

come from consumer 'upgrading' in the matured product categories. With 200 million people

expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of

investment in the food-processing industry.

India’s personal care industry is composed of hair care, bath products, skin care and cosmetics,

and oral care. The sector is driven by rising income, rapid urbanization, and celebrity

promotions. This industry accounts for 22% of the country’s fast-moving consumer goods

(FMCG), which is the term for Consumer Packaged Goods in India. Foreign direct investment in

this sector totaled $691 million in 2014.

Hair care is a main category of this industry. A study by Nielsen, a market research firm,

determined that shampoo is the most popular FMCG product in India. The $818 million

shampoo segment is dominated by Hindustan Unilever Ltd., owned by U.K.-based Unilever.

Its most popular brands are Sunsilk, Clear, and Clinic Plus. Hair oil is another important product,

1

valued at $1.3 billion annually. India-based Marico's Parachute and Dabur are leaders in the

production of branded coconut hair oil.

Estimated at $1 billion, the soap and bath category is significant. Soap is a prevalent product

found in more than 90% of Indian households. The most common brands include

Godrej’s Cinthol, Reckitt Benckiser’s Dettol, Wipro’s Santoor, and

Unilever’s Lux, Dove, Hamam, and Lifebuoy. For men, shaving cream and razors are important

personal care items. Procter & Gamble’sGillette is the most popular shaving cream and razor

brand in India.

Within the cosmetics category, India’s most prevalent products are skin creams, lotions,

whitening creams, and makeup. Hindustan Unilever has three brands that are popular among

Indian women—Fair & Lovely, Lakmé, and Ponds. Fair & Lovely was the world’s first skin

lightening cream and is the company’s leading skin care brand. Colgate

Palmolive’s Charmis moisturizer is also prominent. The majority of the demand for cosmetics

comes from working men and women. L’Oreal Paris develops both skin care and cosmetic

products for India. New York-based Revlon expanded further to smaller cities in India,

generating $40 million in revenues in 2014.

The organic skin care category grows at over 20 percent annually and is expected to total $157

million in 2020, according to Azafran Innovacion, an organic skincare group. Large Indian

organic skin care companies include Himalaya Herbals and Biotique. Both specialize in

Ayurveda-based products.

The oral care category is the smallest category; less than half of Indian consumers utilize

western-style products such as toothpaste. Colgate Palmolive dominates more than half of this

industry and was named India’s most trusted brand four years in a row by a brand equity survey.

Hindustan Unilever is another significant player with toothpaste brands Pepsodent  and Close

Up.

2

COMPANY OVERVIEW

. Reckitt Benckiser India Ltd (RBIL) is a fully owned subsidiary of Reckitt Benckiser Plc.,

world’s No.1 Company in household cleaning. Reckitt Benckiser Plc came into being with the

merger of Reckitt & Colman Plc with Benckiser NV in 1999. The company has operations in 60

countries, sales in 180 countries and has had net revenues in excess of $5.5 billion. Reckitt

Benckiser India Ltd (RBIL) manufactures and markets a wide range of products in Personal care,

Pest control, Shoe care, Antiseptics, Surface care, Fabric care and other categories. Amongst its

many well-known brands are Dettol, Mortein, Harpic, Cherry Blossom, Lizol, Disprin, Robin

powder, Colin, etc. Most of these brands are either number 1 or number 2 in their respective

categories in India.

RBIL distributes all its products through its common distribution channel, which has a wide and

deep reach in the markets and is a key strength of the company. The channel is managed by a

wellstructured sales force, responsible for achieving sales for the entire product portfolio of more

than 150 Stock Keeping Units (SKUs).

POPULAR PRODUCTS

Cherry Blossoms, Colin, Itch guard, Dettol, Air wick, Disprine, Finish, Harpic, Lizol, Mortine, Itch guard, Dettol, Air wick, Disprine, Finish, Harpic, Lizol, Mortine, Strepsils, Vanish, Veet.

3

DETTOL

An iconic brand has stood for “trusted protection” in India since 1933. The brand is endorsed by the Indian Medical Association and has been voted consistently as one of India’s Most Trusted Brands (ORG Marg Brand Equity Survey) since 2002. Today multiple product offerings of the brand Dettol touch the consumers in many more aspects of personal and home care in their daily lives. 

Consumers use Dettol in multiple ways and the brand has grown with introductions in synergistic segments like Bar, Soaps, Liquid Hand Wash & Sanitizers. The Dettol Antiseptic Liquid has been a household name for the family mainly used for first aid and personal care uses. Expanding the portfolio we have Dettol soaps, easy to hold and in four variants including Dettol Original, Dettol Fresh, Dettol Cool and Dettol Skincare. Dettol liquid hand wash provides 10 times better protection and Dettol Instant Hand Sanitizer assure us of 99.9% germ kill, rinse free and ideal for the entire family.

The brand first started in hospitals 80 years ago, where Dettol Antiseptic Liquid was first used

for the cleaning and disinfection of skin during surgical procedures. As a trusted brand by

doctors, Dettol was also used to protect mothers from illness after childbirth. Dettol was

launched in India in 1933, and ever since has been the gold standard of protection. Dettol has

been the trusted partner of health, for millions of mothers across the country, to protect their

family by preventing illness and infections.Even today, our brand continues to be one of the most

trusted protectors of health ranking among the top 10 Most Trusted Brands in India since the last

10 years.

4

The brand Dettol was launched in India in 1933 in the Antiseptic liquid form as a treatment for

cuts and wounds. For almost the first 50 years, Dettol was present only as an antiseptic liquid.

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. While it started its journey as the ‘cuts and wounds’ brand in the

country, over the years it had taken over the role of ‘protector from germs’ in every situation.

Usage of the brand gives rise to many emotions in the consumers’ minds. From making them

feel safe and secure about the well-being of their family to making the mother feel that she has

done the best for her family, the brand evokes positive imageries and emotions. Thus, it is only

fitting that the brand’s tagline says - Be 100% Sure. 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 (see Exhibit 1 for the complete portfolio). 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 b een to

garner share. Fundamental to all the categories was existence/creation of a consumer need for

germ protection satiated by Dettol’s trusted promise.

Markets for various categories –

The Antiseptic liquid market

The Body wash Market

The Liquid Handwash Market

The Bar Soap Market

5

Complete Range of Products under Brand Dettol

6

PROMOTIONS/INTEGRATED MARKETING

COMMUNICATIONS

Usage of the brand gives rise to many emotions in the consumers’ minds. From making them feel safe

and secure about the well-being of their family to making the mother feel that she has done the best for

her family, the brand evokes positive imageries and emotions. Thus, it is only fitting that the brands

tagline says - Be 100% sure. These are some Seasonal Advertisements that shows how Dettol Enters

into customers Minds.

Summer Advertisements

Monsoon Advertisements

Winter Advertisements

7

BANEGA SWACHH INDIA

RB (formerly known as Reckitt Benckiser) has a vision of a world, where people live healthier

and live better. The Power Brands - Dettol and Harpic, have stood for hygiene and sanitation

over the years and have been ranked amongst the most trusted brands in the country. In the last

decade, dettol have reached out to millions of children and mothers to raise awareness around

hygiene and sanitation. However, in a country where 53% of the population does not have access

to a toilet, and over 120 thousand children under the age of 5, annually, die from Diarrhea, there

is an increased need in the intensity of our initiatives.

“Dettol Banega Swachh India” is a 5-year ambitious program to address the rising need of

hygiene and sanitation in India. Dettol have made a commitment to invest a sum of INR 100 cr.

towards this initiative, which will aim to:

Drive behavior change towards hand hygiene, through numerous awareness initiatives

such as the School Hand Wash Program and Young Mother’s Program

Improve sanitation facilities by working with NGO partners to identify areas across the

country, to support the development and maintenance of cleaner toilets

The core pillars of the Dettol Banega Swachh India program are:

Drive Habit Change and Attitude towards hand Hygiene:

Through insightful communication, we will drive behavioural change towards hygiene and

sanitation. We will collaborate with noted experts like Prasoon Joshi from McCann World Group

to develop communication modules, which will aim to drive everyone to adopt healthy hygiene

practices

For a Swachh India, the message of hygiene and sanitation must reach millions across the

country. Thus, RB and its partners such as NDTV and Facebook, along with our campaign

ambassador, Amitabh Bachchan, will leverage our collective reach and credibility to achieve this

Best in class , On Ground Execution:

RB will collaborate with its NGO partners such as Water Aid, and CAF India, who bring the

right expertise and insights for the successful implementation and maintenance of sanitation

infrastructure in the programe. RB has longstanding expertise in developing health and hygiene

products through its Power Brands such as Dettol, Harpic.

8

1. Young Mother’s Programe

Having a new baby is an immensely rewarding and exciting time for new mums, which also

comes with a tremendous responsibility of caring for this bundle of joy. At this time, protecting a

new baby from illness and infection becomes more important than ever, after all, new-borns are

particularly vulnerable as their immune system is not yet fully developed.

Dettol has over 80 years’ expertise in hygiene and an enduring interest in protecting new-borns

and infants from infection. That’s why every year we reach over 8 million new mothers around

the world with hygiene education.  

The work with a variety of partners from 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 mums and teach them some basic yet powerful healthy hygiene

habits to protect the health, not only their new arrival, but their whole family. This is incredibly

9

important as every year almost 1 lakh children in India die under the age of five due to Diarrhea,

a disease that can be prevented by the practice of good hygiene. Dettol aim is to support new

Mums, to help them keep their families healthy and teach them how some small interventions

can be hugely health-giving and provide protection to all in their family.

We have reached out to 2.4 million mothers  in India since 2006 to spread the message of health

and hygiene. Dettol aim to create awareness around good hygiene regime for the mother and the

infant, helping lay a strong foundation for good hygiene practices in the future by also

distributing baby care booklets with tips on good hygiene practices and infant care in local

languages. At Dettol we passionately believe in the power of hygiene education, it goes to the

very core of who we are, because it helps protect families from illness and helps to give new

babies a healthy start to life.

10

2. School Programme

All children love to get their hands messy. When you’re around, you can keep a protective watch

over them and make sure their hands are cleaned after they use the toilet or before they eat. But

when they’re at school?  How do you know those good habits you’re setting are being followed?

School can be a place where germs are easily transmitted, as you have many children coming

into contact with one another. It only takes one child who doesn’t follow those good habits to

potentially spread infection to many.

Sadly in India 1 lakh children die annually from preventable illnesses such as diarrhoea and

some of those deaths could have been halted through the very simple act of hand washing with

soap.

Dettol invests in many educational programmes around the world teaching young school age

children about healthy hygiene habits.  We make our programmes fun, engaging and interactive

for the children.

In 2013 we reached over 63 million children around the world with hygiene education – hand

washing with soap. We did so by providing teachers with resources to support them in

reinforcing good hygiene habits and to reward children keeping their hands healthy with their

parents.  

11

In India, in 2013 we reached 1.1 million children in over 3000 schools across 50+ cities and

educated them about hand hygiene. Apart from this we also provided samples of Dettol LHW to

the children.

Behaviour change begins early and in our endeavour to create a healthy happy world we plan to

increase our reach by almost 3 fold next year. At Dettol we passionately believe in the power of

hygiene education, it goes to the very core of who we are, because it helps protect children from

illness and promote better health for all the family.

12

3. Dettol Surakshit Parivar Program

The Dettol Surakshit Parivar Program has three key parts:a)   New Mother Program: In this program 'new mothers' are provided with a  baby Care booklet (in local languages) giving them essential tips to protect the new born from infections. They are also given free sample of Dettol Antiseptic Liquid. Since 2006 we have been contacting over 1 million new mothers across India. The outreach numbers are constantly increasing from 4 lac last year -to a million in 2010 and 12 lac in the coming year, 2011.b)   School Handwash Program: In the School Handwash Program, children are educated on the importance and procedure of washing hands regularly and properly. This is the single most important thing that one can do to protect our self from illness causing germs. We are targeting 8 lacs children this year in 400 schools with our hand washing program. The program won the best school contact program by Handwash events and experiential marketing awards.c)   The Hospital Program: whereby Dettol reaches out to hospitals and conducts awareness programs with nurses regarding different illness causing bacteria/virus, and methods of ensuring a germ free environment. Additionally, it also works with hospitals to disseminate relevant information/public health messages on first aid methods, immunization etc. to the general public. The scope of the program is now being extended to smaller towns - after a successful implementation we are increasing the scope of the program every year consistently.

In 2010 we launched a 13 episode series of Dettol Surakshit Parivar, a 30 minute programme on Imagine TV aired weekly. It is an infotainment reality show on 'Health and Hygiene'. The 13-episode series based on a unique concept that was put together by Dettol, the iconic health brand from RB and NDTV Imagine, a leading national TV channel. The objective of the show was to spread awareness on everyday germ protection and enjoyed a viewer ship of 2 million.

13

Dettol Marketing Mix

Dettol

Parent Company Reckitt Benckiser

Category Personal care brand

Sector FMCG

Tagline/ Slogan Be 100% sure

USP The first of its kind in anti-bacterial segment.

STP

Segment Anti-bacterial

Target Group All age groups

PositioningDettol have always been positioned as a 100% germ fighter with germ fighting and protection as the core value

Dettol satisfies the basic need of the customers by helping them to protect their families from

germs, anywhere. Dettol products have targeted mainly the women and children group. Their

promise of providing products free from bacteria, dirt and germs is appreciated by everyone. The

trust that Dettol commands is proof enough that the customers have accepted their products with

alacrity. In order to satisfy their customers the company has provided a wide range of products.

Their main products are as following

Dettol liquid hand wash – It has been categorized as Skincare, Original and Sensitive and is

available in three sized pouches and refills of 250 ml, 200ml and 150ml.

No Touch Liquid Hand wash

14

Dettol Soapis available in sizes of 125 and 75 gm. It is a perfect, protective balance between

beauty and health.

Dettol Antiseptic Liquid- It is used as disinfectant for the whole family and as an antiseptic

against cuts, wounds and even laundry. It is available in sizes of 50ml to 500 ml.

Dettol Hand Sanitizer

Body Wash for both males and females

Shaving Cream in cool and fresh fragrances

Medical Plasters that are 100% germ free

The kitchen products of Dettol include “Dettol Healthy Kitchen Dish and Slab Gel” Which is

reputed to kill up to99% germs on utensils and surfaces. These safe and tested products are

available in two variants: Lemon Fresh and Lime Fresh in sizes of 750ml, 400ml, 200ml and

130ml.

Dettol 4 in 1 disinfectant floor and all-purpose cleaner

Price in the Marketing mix of Dettol

Dettol has been able to maintain a firm grip on the market by evaluating the price of its products

periodically. The company has also shrewdly kept a watch on all its competitors to maintain the

base price level at either par or a little less. Quite simply, the pricing used is value pricing

because the customer gets optimum value for the product bought. Neither is the pricing too high,

neither too competitive. The cost price of some of the products of its competitors is less than the

price of Dettol but still the main market belongs to Dettol.

Products of this brand are preferred over other similar products not because it is cheaper but

because it has earned the trust of a common man by maintaining the quality of its product. It has

kept a flexible pricing policy where the demands and the usage determine its prices. In order to

attract the customers it brings out periodic offers and schemes. This helps in maintaining the

balance between producers and consumers. Most of the online shopping websites give discounts

and attractive offers on every buy.

Place in the Marketing mix of Dettol

Dettol has been successfully targeting markets in Eastern and South Asian Countries. The

products of Dettol are available in many cities of China, Australia, Germany and U K. India has

been its faithful and constant market. In almost every part of the country, one can buy a Dettol

product. Dettol has captured nearly 60% of the Indian market and its strength is continuously

growing. Be it a Metropolitan city or a small village one can usually find a Dettol product. They

are sold in variety of places like Medicine shops, Super markets and Local markets.

There are many plants in India for the manufacturing of Dettol products. One of them is located

in Marwa road in Mumbai. After the manufacturing and packaging, the products are sent all over

15

India to C & F agents. These agents act as the mediator between the manufacturer and the

distributor. Dettol Company also has its personal warehouses where the products are kept safely.

The S. K. U agents then distribute the products to the retailers in the markets. It is up to them to

keep a watch over the happenings of the market and inform the distributor of the necessary

demands.

Promotion in the Marketing mix of Dettol

The main target of the company Dettol is the middle class group. They have also set their target

on the rural market as its products have already captivated most of the urban market. Special

emphasis has been laid on wooing the female section because in a middle class family woman

takes all the household decisions and hence the women are the decision makers.

Advertising for the Dettol products started from the year 1960 and has successfully being carried

out until date.  Dettol has been using a marketing communication strategy, which involves ATL

and BTL strategies. ATL strategies like print media, social media, newspapers, radio all are used.

Attractive packaging has also increased its popularity. All the products have a sword on their

green cover to indicate its fighting spirit. This packaging has become synonymous with Dettol.

Many schemes are launched to increase the awareness of the products and to provide detailed

information about each item. New and innovative ideas be introduced to boost up the sales.

During the rainy seasons from June to August, the company gives a 2% discount to the retailers

and 4% discount to the wholesalers in order to push up the sales. A special offer of one soap free

on purchase of three soaps is also open during these months. The company’s innovative schemes

have helped in the continuous loyalty of the customers.

In order to endorse their products Dettol has been using famous and well-known personalities.

They have hired Saad Imran for the Dettol soap add and famous TV personality Sakshi Talwar

for their advertising campaigns.

SWOT ANALYSIS

16

SWOT Analysis

Strength

1. The brand’s Germ-kill heritage (brown liquid) is seen as strong and adds on trustworthiness (RTB).

2. Excellent for treating skin irritations, cuts/bruises and seasonal applications.

3. Brand comes from a reputable (old) company

4. Loyal following of ‘Original’5. Increasing popularity of Dettol soap as a germ killer and hygienic soap6. Has products like antiseptic liquid, soaps, sanitizers, bodywash etc

Weakness1. Despite excellent product, limited penetration in rural markets2. Competition from other similar products means stagnant market share

Opportunity

1. Leverage the powerful brand equity associated with the Dettol Brand to make it an everyday use proposition.2. Tie-ups with schools, hospitals, hotel chains etc3. Better penetration in rural markets and emerging economies

Threats1. Other main players in the antibacterial  category 2. Other emerging players and alternatives available

Competition

Competitors

1. Savlon2.Safegaurd3. Lifebuoy

SOCIAL MEDIA CAMPAIGNS17

Dettol #Handfies To Promote Handwashing And A #SwachhBharat too

Its Global Handwashing Day (GHD) on October 15. Originally created for children and schools to promote habitual handwashing with soap, the occasion is now celebrated globally to raise

18

awareness on the importance of handwashing. Washing hands with soap can help prevent diarrhoea and respiratory diseases and also reduce child mortality rates by about 50%. As a build

up to Global Handwashing Day, soap brand Dettol from Reckitt Benckiser is taking handwashing awareness to the digital world. It has launched a global campaign called #Handfie,

which as the name suggests, is a selfie of your hands shared for a cause.

All one has to do to join the movement is click a picture of their clean hands and upload their

#handfie. For every handfie shared, Dettol pledges to teach a child healthy handwashing habits.

Handfies are being featured at the campaign website ‘Give Life a hand’.

Dettol’s #Handfie campaign is leveraging social media to raise awareness in a fun way. Together

with NDTV India, it has launched the ‘Banega Swachh India’ initiative too. So along with clean

handfies, the campaign is now extended onto a clean India too. People are being encouraged to

share #SwachhIndia pictures and the best ones will be aired on NDTV.

Dettol India has run a promoted hashtag #Handfie on Twitter India as well as roped in celebrities

to share their handfies, as part of the campaign. In addition, the campaign is also fast catching up

with the recent social media relay trend where you do something and tag your friends, family to

do the same and pass it along.

AWARDS:

19

Dettol was honored with the following awards:

1. Most trusted brand Award 20142. Mena Cristal Award.3. Wommy Awards.

20