Marketing Management 1

Assignment on

To – By -

Prof. Jogendra Nayak Daipayan Ghosh MBA 1 Sec D Roll no 9202212

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Company History

The company was incorporated on 5th July , 1951 in Calcutta. The company manufacture ultramarine blue food products, antiseptics, polishes cosmetics and pharmaceuticals. The Company took over the manufacturing assets and manufacturing operations of Atlantic (East) Ltd., a company in the Reckitt & Colman group incorporated in England, trading in India in 1934 and established new facilities for the manufacture of several household, pharmaceutical, food and toiletry products. In 1969 Atlantic (East) Ltd., was amalgamated with the company as from the close of business on 30th April, whereupon the Company also acquired the trading activities of the amalgamated company. The Company was a wholly owned subsidiary of Reckitt & Colman Ltd., U.K. The company owns three factories situated at Dhadka, Chetla and Behala of which the one at Dhadka is reported to be one of the world's largest ultramarine blue factories. In 1996 the Company launched Lizol, Woolite, Dettol Shaving Cream and Gel and Harpic Flushmatic which received good market response. The company made major investments in creating capacities for the manufacture of mosquito coil. The Company also invested substantially in the area of information technology and communication systems which would help in increasing the productivity, reduction in cost and achieve higher growth. During 1997 a joint venture company viz. Reckitt Piramal Ltd. was set up with Reckitt and Colman Plc. and Nicholas Piramal India Ltd. to create a unique force in India by combining the focussed marketing of both the companies OTC brands. Reckitt & Colman India is to hold a 20 per cent stake in Reckitt Piramal India Ltd, a joint venture with Nicholas Piramal India Ltd.(NPIL). Its British parent Recikitt & Colman Plc and NPIL will each hold 40 per cent of the company's Rs.10 crore equity. Reckitt & Colman is close to a deal to acquire from Knoll (India) the well known burns and antiseptic ointment Burnol. Reckitt & Coleman of India Ltd. (RCIL) has acquired the brand `Colin', a glass and household cleaner, from Fernhill Laboratories & Industrial Establishment. The Company has launched `Cherry Blossom Handyshine' in a new compact case with a neutral polish that can be applied on any colour leather. The Company launched its internationally popular Calgonit range of automatic dishwashers in India. The Company changed its name to Reckitt Benckiser (India). The firm is a unit of Anglo-Dutch consumer products group Reckitt Benckiser. Vanish, a stain-removing brand of Reckitt Benckiser, has entered the Indian market. In 2001 Reckitt Benckiser, the Indian arm of billion Reckitt Benckiser Plc, has launched two new versions of its 24-year old brand Dispirin for various therapeutic uses.

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Products

A) Surface Care

Profile of Category :Five product groups. Disinfectant cleaners both clean and disinfect surfaces, killing 99.9% of germs. All purpose cleaners are ideal for many household surfaces, particularly in the bathroom and kitchen. Lavatory cleaners offer specialised cleaning and disinfecting for the toilet bowl and cistern. Specialty cleaners are designed for specific tasks – from cleaning ovens to removing limescale. Finally, Polishes & Waxes clean and shine hard surfaces such as furniture and floors.

Market Position :No.1 worldwide in Surface Care with leading positions across the five product groups described above.

1) Cillit Bang :Cillit Bang is a new range of power cleaners launched in 2004. It is now in over 50 countries with the following range of products: Lime & Grime and Degreaser Triggers, Grease & Floors Dilutables and Stain & Toilet lavatory cleaner.

Principal Markets :Europe, US, Developing Markets

2) Lysol :Lysol is the No.1 disinfectant brand in the U.S., with over 50% of households using Lysol products. Families have trusted the brand to help keep their homes healthy for over 100 years.

Hospitals across the U.S. also trust the brand to satisfy their cleaning and disinfecting needs.

Principal Markets :North America, South America, Asia Pacific, South Asia

3) Dettol :Dettol offers the No.1 anti-bacterial cleaning range in the UK. Launched first in 1984 as Dettox with Dettox Antibacterial Cleanser, the anti-bacterial cleaning range has now been regrouped under the Company's other strong Antiseptic/Disinfectant brand, Dettol. Dettol Anti-bacterial Surface Cleanser safely kills harmful bacteria such as Salmonella, Listeria and E-Coli but contains no bleach and leaves no taint or odour, so it's safe to use around young children and on food

preparation areas.

Principal Markets : UK

4) Harpic :Launched in England in the 1920s, Harpic toilet bowl cleaner has been successfully extended to 47 countries on a platform of powerful cleaning. Harpic provides a full range of liquid

toilet bowl cleaners, tablets, wipes, toilet bowl blocks, cistern blocks.

Principal Markets :Africa & Middle East, Asia Pacific, Europe, Latin America

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B) Fabric Care

Profile of Category :This category consists of five product groups used for cleaning and treating all fabrics. It covers products used before, during or after the main laundry wash cycle. Fabric Treatment products remove stains from clothes, carpets and upholstery. Garment Care products are specially formulated for washing delicate fabrics. Water Softeners protect the machine and laundry against the build-up of limescale and other deposits. Fabric Softeners are used for softening and freshening fabrics and ironing aids help make ironing more convenient.

Market Position :No.1 worldwide in Fabric Treatment and Water Softener categories.

No.2 worldwide in Garment Care.

1) Calgon :Calgon has been trusted by consumers for over 50 years to protect all the vital parts of their washing machines from limescale build up: that's "Calgon Protection". It is the only water softener recommended by leading washing machine manufacturers. It is sold in over 20 countries, in each of which it holds the clear No. 1 market position. Recent launches in the range include Calgon Energis (2008), the best ever Calgon. It not only protects all parts of the washing machine but also improves laundry results by helping to protect whites from greying and colours from dulling.

Principal Markets :France, Turkey, Germany, Russia, Italy, Spain, UK, Greece, Belgium, Switzerland (sold under Calfort brand name in Italy).

2) Vanish :Vanish is the leading global trusted stain removal expert for both fabrics and carpets. For stains on your fabrics, Vanish is available in both in-wash formats and pre-treat. Recent launches in the Vanish range include Vanish Oxi Action Crystal White (2006) which not only removes stains from all your white garments, it also restores them to their original bright whiteness. Vanish Oxi Action Magnets (launched 2007) is a unique sachet which contains a dose of Vanish which is released during the wash cycle and attracts and traps dirt and colour runs on its sachet. Whether you are dealing with a stain on your clothes or on your carpet, Vanish provides amazing, effective and safe stain removal: all stains gone, right before your eyes. Vanish: trust pink, forget stains!

Principal Markets : UK, Russia, Korea, Spain, Italy, Germany, Australia, Poland, Turkey Sold under Spray’ n Wash and Resolve brands in the U.S.

3) Resolve :Resolve is the #1 Carpet Stain Remover in the USA in the Ready to Use segment with Resolve Triple Action and Resolve Pet Stains. It is available in different formats: Triggers and Aerosol for spot and stain removal, and Foam and Steam for large areas. Recent launches include Resolve Multi-fabric (2007) which is specially designed to lift away dirt and odors from household fabrics.

Principal Markets :USA.

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4) Spray 'n Wash :Spray 'n Wash provides effective and safe stain removal on all kinds of laundry fabrics, and is available in different pre-treat formats. Recent launches include Spray n Wash Max

(2008) which even removes dried-in stains before your eyes.

Principal Markets :USA, Canada.

5) Woolite :Sold in more than 30 countries, Woolite is a range of detergents that actively protect clothes against wash related damages. Coming from a 40 years heritage of fine fabric washing, the Woolite brand broadened its scope and has become the global brand of choice for all wash loads with a need of protection. Woolite protects fabrics against shape loss as well as colors against fading and color run accidents.

Principal Markets :USA, Canada, Italy, France, Belgium, UK, Poland, Czech Republic, Spain and

Portugal.

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C) Dishwashing

Profile of Category :Products used in automatic dishwashing machines and for washing dishes by hand. In automatic dishwashing our range consists of detergents that deliver an amazing clean and shine and additive range that enhances the performance of dishwasher and detergent.

Detergents: Powerful multi-benefit detergents like Quantum, Max in 1 Power Tabs and All in 1 tablets and classic range like Classic tablets, powders, liquids and gels

Additives: Detergent performance enhancers like Turbo Dry, Diamond Shine rinse aid and Special salt and dishwasher enhancers like Fresheners, Machine Cleaner and Glass Protector

Market Position :No.1 worldwide in Automatic Dishwashing

1) Finish :Finish is our brand of Automatic Dishwashing Products in UK, Italy, Scandinavia, Australia, New Zealand, Japan and Korea. Due to the excellent performance, all Finish products carry the endorsement of the leading dishwasher manufacturers and glass and crockery brands. Finish leads the market with successive innovative products developed and tested in Germany. Finish offers a complete range of detergents and additives in a choice of formats and variants. The most popular Finish detergents are the unique multi-benefit PowerBall Tabs with all-inclusive system incorporating rinse aid function, salt function and glass protection. Now Finish PowerBall are also available as Quantum with 3 unique chambers combined to give you amazing cleaning and shine every time you use your dishwasher.

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Finish additives include Diamond Shine Rinse Aid, Special Salt, Machine Cleaner, Freshener, the glass protection product - Protector and the new Turbo Dry for cupboard dry dishes. All Finish Additives are designed to enhance your dishwasher experience.

Principal Markets :UK, Italy, Scandinavia, Australia, Ireland, New Zealand, Japan and Korea

2) Finish / Electrasol :Finish/Electrasol is our brand of Automatic Dishwashing Products in North America. Finish/Electrasol products are endorsed by more dishwasher brands than any other brand, and Finish/Electrasol leads the market with successive innovative products developed and tested in Germany. Finish/Electrasol was the first ever automatic dishwasher detergent. It was invented in 1948, the same time as the automatic dishwasher. With over 50 year's experience, Finish/Electrasol offers products that meet the needs of today's lifestyle. Whichever form you prefer, Quantum, PowerBall Tabs, Gelpacs, Powder or Gel, Finish/Electrasol has a product for you.

Principal Markets :USA, Canada

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D) Home Care

Profile of Category : Consists of three categories. Air Care products remove odours and add fragrance to the air to create an ambience. Various formats include: autosprays, electrical plug-ins, aerosols, gels and candles. Pest Control products offer solutions to domestic infestation. The category includes insecticide and rodenticide products – in formats such as coils, mats, baits, traps, vapourisers and sprays – to prevent infestation and to kill pests. Shoe Care cleans and protects

shoes.

Market Position :No.2 worldwide in Air Care, Pest Control and Shoe Care.

1) Airwick :Air Wick was first launched in the USA in 1944 with the invention of Air Wick Liquid, a wick in a glass bottle of liquid, which absorbs odours as it is pulled up within the bottle. Airwick is now present in 85 countries offering consumers a large and growing range of fragrances and formats including plug ins, battery operated devices, candles, gels and aerosols. They are used to freshen or add fragrance to the air, but also, increasingly to create ambience.

Principal Markets :Europe, North America, Asia Pacific

2) Mortein :Mortein was first launched in the 1880s in Australia. It has been successfully launched throughout New Zealand, South Asia and the South Pacific. This pest control brand is famous for the 'Louie the Fly' cartoon character advertising in Australia which has been used for over three

decades. 'Louie' is now being used in South Asia for Mortein, and in Malaysia, Singapore and Thailand for Shieldtox.

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Principal Markets :Asia Pacific, South Asia.

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E) Health and Personal Care

Profile of Category :Products that relieve common personal or health problems. Antiseptics protect against infection and deliver germ kill. Analgesics, Cold/Flu/Sore Throat and Gastro-Intestinals are generally over the counter medications for common ailments like pain, fever, cold, flu, sore throat or heartburn. Suboxone is the Company’s prescription drug against opioid dependence. Veet, our Depilatory product, removes hair leaving beautiful smooth skin. Our skin care range consists of products like Clearasil to fight spots and break-outs for visibly clearer skin and products like E45 for dry skin. Denture Care consists of both denture fixatives and cleaners.

Market Position :Dettol is the No.1 worldwide in Antiseptics. Nurofen and Gaviscon are leading Analgesic and Gastro-Intestinal brands in Europe and Australia. Strepsils is No.1 in Sore Throat globally. Veet is the No.1 depilatory brand worldwide. Suboxone is the global leader in prescription opioid dependency treatment. Clearasil is the No:1 brand in Europe across all markets it plays in.

1) Veet: The world leader in cosmetic depilatory products. Trusted for its efficacious solutions, Veet markets a range of modern products that deliver beautiful, touchably smooth skin. Leadership is driven by constant product innovation, such as our new improved creams containing twice the moisturisers and our new High Precision Facial Wax which allows for precise and long lasting results at home.

Principal Markets :West and Eastern Europe, North & South America, Africa, Asia Pacific, Australasia

2) Dettol :The world's leading brand of Antiseptics and trusted champion of family health. Dettol is the gold standard of effective germ kill recommended by medical experts and healthcare professionals for its proven ability to protect families from germs. The brand remains up to date through the launch of new products relevant to changing lifestyles such as hand sanitizer, liquid hand wash, shower gel, all purpose cleaners, and antibacterial wipes.

Principal Markets :South Asia, Africa & Middle East, Asia Pacific, Europe, Australasia

3) Clearasil :The expert in spot care. Clearasil is renowned for its highly effective range of acne treatment creams, facial washes and cleansing pads, giving consumers the confidence of visibly clearer skin. It’s strong position is continuously reinforced with innovation such as the re-launch of the Stay Clear range of products including our new Skin Perfecting Wash.

Principal Markets :N. America, Europe, Australasia, Japan.

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4) Nurofen :Nurofen is the fastest growing analgesic brand globally, and the leading analgesic brand in UK, Australia and New Zealand. Nurofen is available in a variety of formats including tablets, gel caps and liquids. Its range includes Nurofen for Children and heat patches for back pain and mentrual pain.

Principal Markets :Nurofen is available in 90 countries, with Nurofen’s top 5 markets being UK, Australia, France, Russia and Belgium.

5) Strepsils :Strepsils is the world's leading sore throat medicine. Trusted by consumers and pharmacists alike, the brand is now present in over 100 countries. From its inception as a sore throat gargle in 1950, the range has grown to a wide range of both lozenges and sprays giving consumer the choice they require in treating their sore throats.

Principal Markets :Strepsils is the No1 sore throat product with principal markets in Europe, Asia, Australasia, Africa and Middle East

6) Gaviscon :Gaviscon is a well-established heartburn and indigestion remedy which provides, long lasting relief though its unique raft forming mode of action. It is prescribed by doctors, and recommended by pharmacists and sufferers alike. Gaviscon Advance is stronger and offers longer lasting relief. Following its UK launch in 1997, it is now available in a number of countries globally.

Principal Markets :Africa & Middle East, Asia Pacific, Europe, Latin America, South Asia.

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F) Food

Profile of Category :The Food business is focused on products that liven up the flavour of your favourite foods and make meals more enjoyable. Our major segments are mustard, barbecue sauce, hot sauce and French Fried Onions. While the category is focused primarily in North America, our famous food brands are distributed and sold in more than 55 countries. More than 90% of our portfolio is made up of number one or number two brands.

Market Position :French’s is the leading brand of mustard in the world; its North American market share is more than 30%. Frank’s RedHot Sauce is the region’s number two hot sauce and Cattlemen’s Barbecue Sauce is the number one barbecue sauce in Foodservice.

1) No Salt :No Salt is a popular alternative to salt, designed for people who enjoy the taste of salt but wish to consume lower levels of salt in their diets. The product is typically used on the table, in baking and cooking. NoSalt is available in two varieties, original and seasoned.

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Principal Markets :North America

2) French's Mustard :The mustard we've all grown up on has delighted consumers for over 100 years. French's mustard has been America's favorite since 1904. And no wonder: 125 million bottles of French's mustard are sold each year. That's why French's Classic Yellow outsells all other major yellow brands of mustard combined. Using the finest grade mustard seeds, French's Classic Yellow remains the number one best-selling mustard in American homes. The French's family has grown to include a variety of flavors: Honey Dijon, Spicy Brown, Horseradish and Honey.

Principal Markets :Asia Pacific, Europe, Latin America, North America.

3) French's Potato Sticks :FRENCH'S® Potato Sticks have been America's most popular potato stick snack since their 1935 introduction. Both children and adults love the unique shape and flavor that make French's stand above the rest. French's Potato Sticks are available in 1.5 oz and 7 oz cannisters and in a 100 calorie snack pack.

Principal Markets :Asia Pacific, Europe, Latin America, North America

4) French's Fried Onions :FRENCH'S® Original French Fried Onions have served over 40 million holiday tables year after year. While essential for making the traditional holiday Green Bean Casserole, they provide a great crunchy and flavorful coating for chicken, fish and pork.. Available in two flavors, original and cheddar.

Principal Markets :Asia Pacific, Europe, Latin America, North America.

5) French's Worcestershire Sauce :FRENCH'S® Worcestershire Sauce was introduced over 50 years ago and, as a leading brand, it offers a wide range of uses including a marinade for meats, flavor enhancer for soups and stews, topping on sandwiches, ingredient for meatloaf, gravy, sauces and party mix. French's Worcestershire Sauce is so versatile and flavorful that it makes any meal special. Available in 5, 10, and 15 ounce bottles.

Principal Markets :Asia Pacific, Europe, Latin America, North America.

6) Frank's RedHot :Since 1920 Frank's RedHot has been providing a delicious surge of flavor and heat to almost everything - from wings to pizza to pasta - even popcorn. Frank’s RedHot was the secret ingredient used in the first ever Buffalo wing in Buffalo, NY in 1964. It is the top selling volume hot sauce in both US grocery and foodservice. Frank’s RedHot comes in four varieties, original, extra hot, buffalo wing sauce and Chili ‘n Lime. Frank’s is the leading hot sauce in the Foodservice channel.

Principal Markets :North America.

7) Cattlemen's :Cattlemen's is the #1 BBQ sauce in US foodservice and was recently introduced to the retail channel. Made with top-quality ingredients and backed by more than 30 years of

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experience, Cattlemen's sauces are used by top restaurants in their finest recipes. Year after year Cattlemen's is the secret ingredient behind award-winning sauces at the renowned Memphis in May BBQ competition. Cattlemen’s is available in many varieties including, Classic, Smoky, Honey, Sweet, and Gold.

Principal Markets :North America.

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These power brands accounted for more than 62% of Rekitt Benckiser’s net revenues in 2008, and

61% in 2007

Product – Mix Width

Home & Personal Care Food

Health & Fabric Surface Dishwashing Home Food

Personal care Care Care Care

Product Veet Calgon Cillit Bang Finish Airwick No Salt

Line Dettol Vanish Lysol Electrasol Mortein French’ Mustard

Length Clearasil Resolve Dettol Potato Sticks

Nurofen Spray n Wash Harpic Fried Onions

Strepsils Woolite Red Hot

Gaviscon

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This is a list of other brands owned by Reckitt Benckiser:

Aerogard Dosia Mop & Glo Robin Blue

Amphyl Glass Mates Mr. Min Mr. Max

Cherry Blossom Glassex Neutra-Air Sagrotan

Colon Kalia Poliflor Pratic Vitroclen

Cattlemen's Kaltron Precision Blend Windolene

Disprin Lewis Red Devil Quanto Wizard

Dosia Lovela Resolve Zud

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Competitors

Here are the list of competitors

Clorox Henkel GlaxoSmithKline S. C. Johnson &

Son

Unilever

Colgate-Palmolive Spotless Group Procter & Gamble Church and

Dwight

Sara Lee

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Product Levels

A) Core Benefit : Care of the customer’s belongings

B) Basic Product : Provide proper washing and cleaning

C) Expected Product : Cleaning without fade of original colours

D) Augmented Product : Exceptional whitening of dirty products

E) Potential Product : Proper care of the customer’s skin using the products

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BCG Matrix

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BCG matrix of Reckitt Benckiser

STARS

Health and Personal Care

Home Care

Surface Care

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Dishwashing

COWS

Fabric Care

DOGS

Food

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Revenue Model

For the year ended 31 December 2008 2008 (m. pounds) 2007(m. pounds)

Net Revenues 6563 5269

Cost of Sales (2673) (2198)

Gross profit 3 ,890 3,072

Net operating expenses (2,385) (1,839)

Operating profit 1,505 1,233

Finance income 31 22

Finance expense (62) (46)

Net finance expense (31) (24)

Profit on ordinary activities before taxation 1,474 1,209

Tax on profit on ordinary activities (354) (271)

Profit for the year 1,120 938

Earnings per ordinary share On profit for the year, basic 157.6p 131.2p

On profit for the year, diluted 154.7p 127.9p

Dividend per ordinary share 62.0p 50.0p

Total dividends for the year 441 358