Project On Dettol Soap Reckitt And Benckiser

Project on Dettol Soap Reckitt and Benckiser ACKNOWLEDGEMENTS 　Countless thanks to ALLAH Almighty for giving us such extraordinary abilities and making us privileged enough to take part in such activities. I would like to thank my teacher Mr. Jawed Salem for his cooperation and help. He fully supported throughout the class. We express our heartiest gratitude to him. His cooperation made this project a lot much easier. We would also like to express our heartiest gratitude to Mr. Faisal razi, BRAND MANAGER (Reckitt Benckiser), who provided us with all the relevant information we required. Loads of thanks to our parents, who were and are very supportive and cooperative at all times. Reckitt Benckiser views corporate social responsibility (CSR) and sustainability as one and the same, and is committed to moving its business towards greater sustainability across the economic, social and environmental dimensions of its activities. We believe that a more sustainable business will not only better fulfill our responsibilities to society but also contribute to delivering our vision of better consumer solutions and greater longterm shareholder value. Reckitt Benckiser has in place a Corporate Responsibility Framework comprising of our Code of Business Conduct and specific policies, control arrangements and reporting. This framework governs how we act in conducting the Company’s business. 　 STRATEGIES AND OBJECTIVES Reckitt Benckiser's objective is to generate above industry average profitable growth by: • Focusing on building the power brands in high growth categories • Geographic expansion of the portfolio • Continuous innovation • Higher investment in brand building • Margin expansion and cash conversion to fund reinvestment in core brands and to grow returns to shareholders.

• Selective add-on acquisitions DETTOL PORT FOLIO DETTOL SOAPS DETTOL LIQUID • For Bruises & Cuts • Insect bites • Washing of clothes • Mopping of floors • Shaving • Bathing • Cleansing of skin DETTOL HANDWASH DETTOL PRICKLY POWDER Available in two sizes 75gm and 200 gm DETTOL MPC A new product Dettol Multipurpose cleaner recently launched and added in the Dettol family. Available in two variants floral and citrus. \ MARKETING STRATEGY SITUATIONAL ANALYSIS Soap is a major consumerable item and there is a huge demand and potential in this market particularly the anti – bacterial segment. The anti bacterial market segment has grown year on year by more than 7 % percent due to increased consumer awareness and education on the benefits of anti-bacterial soaps. As a result, the pie is growing bigger every year. Some uncontrollable situational factors that are faced by the Reckitt Benckiser Pakistan and Dettol soap are as follows,

 Demand: Although the demand for Reckitt Benckiser products is very high but when we talk about the demand of the Dettol soap the demand is growing in the antibacterial category. The market share of Dettol soap is more than 10 % in Pakistan out of the Rs 11 billion soap market.  Competition: There was no direct competitor of Dettol soap at the time of launching but today; two brands are directly competing Dettol. Safeguard (P & G) and lifebuoy (Unilever) are direct competitors  Legal/political: these are the uncertainties that are extremely variable in the political conditions of Pakistan. Constant political instability does affect the company in terms of building new relations with new governments all the time.  Social and Cultural factors: the company has to be very careful in the implementation of its promotional campaigns, since the social cultural environment of Pakistan is very conservative and any suggestive advertisements usually face a lot of negative reactions on the part of the consumer.  Other factors: like the government regulations and technological advancements have had no significant effect on the product and the company. MARKETING ANALYSIS In the mind of the consumer, anti-bacterial soap should have the following: A product whose core function is to clean skin, making it softer and smoother, while leaving a feeling of freshness behind. Good perfume and foam combine to deliver this freshness experience. The key functional benefit is that it removes dirt, oiliness and other impurities from skin. Germs are not top-of-mind for the average consumer, but are a function of Dirt and disease. Research led us to know that consumers are largely unaware of the diverse nature of ‘jaraseem’. They just know that Germs (jaraseem) are the bad guys. They don’t know that there are different types of germs. Different antibacterial competitors are trying to own a higher ground by building on already present germ-kill equity. Like Dettol has given it’s slogan of “Dettol protects against a wide range of unseen germs, including bacteria and viruses” While safeguard is focusing on ‘Din Raat Lagataar Tahaffuz’ which is more powerful in the mind of the consumer. Lifebuoy is following the “germ buster’s” strategy. 　

TARGET MARKET The target market for Dettol soap is all households (primarily mothers) who can afford buying soap and who want to fulfill an everyday need (primarily bathing) that provides them and their family with a 100% anti-bacterial solution – complete protection from all germs/ bacteria and cleanliness from dirt / grime. MARKET DEMOGRAPHICS (GEOGRAPHIC, DEMOGRAPHICS, BEHAVIORAL FACTORS) The target markets analysis of Dettol soap is:Geographic location Include almost all Urban; suburban; small town; and some rural areas of Pakistan Demographics Gender Male; female mainly mothers Age 18years to 45 years Socioeconomic status Mainly targeting middle class and upper middle class in urban and sub-urban areas – primarily cities and surrounding areas. Rural market penetration is limited and is primarily driven through indirect channels (e.g.Wholesale) Psychographics Young housewives and mothers who care about the health and well being of her family. MARKET NEEDS (QUALITY CRAFTSMANSHIP, INNOVATIVE DESIGNS, CUSTOMER SERVICE) RB is conscious of the changing consumer needs and trends and is constantly conducting market research to assess opportunities and threats. Quality of the product is the number 1 priority as well as research on new variants. The next planned variant is Dettol Herbal soap. In addition, a new customer hotline has also been added to get instant feedback on product use, problems and activities. MARKET TRENDS The soap market has been most affected by the recent sky rocketing price of palm oil which is the primary ingredient of soap noodles. This has caused the average price of soap noodles to increase by 20% - 25 % forcing producers (also RB) to increase prices of

their soap products by almost as much so as not to put excessive pressure on their margins. This will undoubtedly result in decrease in soap sales volumes (higher prices means less consumer off take) as well as disruption in the market due to several quoted prices of the same product available resulting in dissonance in the wholesale and retail markets as well as confusion in consumer buying decisions at the point of sale. MARKET GROWTH The overall soap market is growing by 10 % while the antibacterial segment is growing by 7%. Hence, there is a lot of potential in the market for growth and additional brand penetration and brand building. SWOT ANALYSIS THE STRENGTHS • The brand’s Germ-kill heritage (brown liquid) is seen as strong and adds on trustworthiness (RTB) • Excellent for treating skin irritations, cuts/bruises and seasonal applications • Brand comes from a reputable (old) company • Loyal following of ‘Original’ THE WEAKNESSES • Not perceived as an ‘everyday soap’ due to:  Smell - strongly associated with hospitals  Is harsh on skin – makes skin dry  Does not make satisfying lather  Shape not user-friendly • No awareness of variants • No perceived as a dynamic, innovative and contemporary brand • Low Top-of-Mind recall: Communication not engaging THE OPPORTUNITY

Leverage the powerful brand equity associated with the Dettol Brand to make Dettol Soap an everyday use proposition. 　 THE THREATS Other main players in the antibacterial soap category (Safeguard and Lifebuoy) have positioned their brands for everyday use against bacteria – Dettol soap positioning lacks that desired everyday benefit and experience! COMPETITION ANALYSIS Here is a brief description about the antiseptic soap producing companies Dettol soap is a brand of Reckitt Benckiser Pak Ltd and it has been operating in Pakistan since 1999 after taking over from Reckitt & Colman. Market share of Dettol soap in the soap market is around 10% at the end of December 2007. The Dettol soap users have the perception that it is effective in germ kill with the medicinal smell of Dettol liquid which is used for Bruises & Cuts, Insect bites, washing of clothes, Mopping of floors, Shaving, Bathing and Cleansing of skin and used mostly during summers. Its functional core need is incidental antibacterial. Safeguard® is the No. 1 antibacterial soap worldwide; it is the only bar soap registered with the FDA. Safeguard is designed to provide excellent germ protection for the whole family. Safeguard, launched in 1995 by Procter & Gamble has set new standards for defining "health & hygiene" in Pakistan. It is an anti-bacterial soap that provides germ protection for twice as long as ordinary soaps making it the doctors' number 1 recommended choice throughout the world. The market share of safeguard is the biggest in antiseptic soap category with 22 % share. Safeguard users have the perception that it is providing them with Continuous Germ Protection, Gentle on skin, Smells Good, has a easy to grasp shape and the functional needs portrayed is of an everyday soap with germ protection. Lifebuoy is one of Unilever's oldest brands. Lifebuoy Royal Disinfectant Soap was launched in 1894 as an affordable new product in the UK, to support people in their mission for better personal hygiene. Lifebuoy soap aims to provide affordable and accessible hygiene solutions that enable people to lead a life free from hygiene related worries, everywhere, regardless of the boundaries of nationality, religion and socioeconomic status. Lifebuoy has a market share of 16 %. Lifebuoy users see the soap as a decent quality, affordable germ protection agent containing carbolic acid as its germ protection agent and its functional need portrays that it is an everyday soap with germ protection for the middle and lower middle class. 　

　 OPPORTUNITY ANALYSIS Based on the competitive analysis, Reckitt Benckiser found out that there are a lot of opportunities which will help the New Dettol soap capitalize a greater market share. New Dettol Soap’s ability to gain real consumer insights, to launch products and variants that consumers actually want, supported by insightful advertising that talks to consumers in their own language, are all vital elements, which will lead to success of Dettol and the New Dettol soap as a brand. • Extensive Market Growth • Market Penetration and Market Expansion. • Achieving High Gross Margins • High Customer Services and Satisfaction • New Product Development and Entrepreneurship. PRODUCT OFFERING The product is offered in 5 variants (2 skus – 115 Gms and 70 Gms): • Original: Contains essence of the Dettol antiseptic solution • Skincare: Contains moisturizer for Skin care. • Active: Contains Active cleaning agent for Active cleaning. • Fresh: Contains Fresh scent for a Fresh feeling. • Sensitive: Contains Skin-friendly ingredients for Sensitive skin. POSITIONING STRATEGY Positioning Against Competitor Dettol is positioned as a premium brand which the mother chooses for 100% protection against all germs and bacteria for her family. The mother of the family is the focal point for Dettol Soap positioning compared to Safeguard and Lifebuoy which focuses on children. Positioning In Relation To Product Attribute:

The primary positioning vis a vis product attribute is that Dettol Soap has the essence of Dettol Solution, the no. 1 antiseptic brand in the world trusted by families everywhere for over a century – which its competitors do not posses. Hence, it is considered a premium brand in the anti-bacterial segment. Positioning by price and quality As Dettol is a premium brand, it is priced at a premium to its competitors (Safeguard and Lifebuoy). Being premium means there will be no compromise in quality as the link between price and quality exists and customer is always willing to pay more for perceived quality which in the case of Dettol soap, he/she does! MARKETING MIX STRATEGY PRICING STRATEGY Price v/s non price competition 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). Discounts and allowances 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 and improved distribution when demand (consumer pull) is maximum. In addition, for the months of June to August – RB runs a special consumer promotion pack of three Dettol Soaps (in one package) with a Rs. 19 price off on a purchase of three soap bars. Geographic pricing strategy In pricing the seller must consider the cost of shipping. There are different geographic strategies. But RB utilizes the uniform delivering pricing (the same delivering price quoted to all buyers regardless of their location) for Dettol Soap DISTRIBUTION STRATEGY CHANNEL OF DISTRIBUTION FOR CONSUMER PRODUCT There are 2 primary channels of distribution for Dettol soap: Distributors and sub distributors:

The company sells the products to its appointed distributors and sub distributors (+300 all over Pakistan) that are responsible for the distribution of pre-defined geographical areas who distribute it further to wholesalers and/or retailers. The retail distribution is further classified into TOP STORES (TSP’s) which include all the high profile outlets like alfatah, HKB, Akbari stores etc and whole sale comprises of categories of diamond, gold and silver divided on the based on their average purchase per month and from here the product reaches the point of sale for the customer. Direct Delivery (Key Accounts) The company provides direct delivery to select large customers like institutional buyers of key accounts which sell directly to the consumer (in case of USC and CSD) or to small retailers / end-consumer (in case of MAKRO / METRO). INTENSITY OF DISTRIBUTION RB has an intensive distribution strategy of the product through its distributors that cover every geographical area and who resell onwards to wholesalers and retailers. There is also direct delivery service to key accounts (USC, CSD, MAKRO &METRO). Every available channel is utilized for maximum distribution and coverage to all the hypermarkets, supermarkets, general stores, kiryana stores and medical stores. The company also has in place a RDF (rural development force) which is covering the rural areas and exploring new markets for potential market penetration. PRODUCT STRATEGY Consumer and biz product Dettol soap is a fast moving consumer product. Convenience good It is an essential good vis-à-vis it’s target market, which is all households (primarily mothers) who can afford buying soap and who want to fulfill an everyday need (primarily bathing) that provides them and their family with a 100% anti-bacterial solution – complete protection from all germs/ bacteria and cleanliness from dirt / grime. Product mix The five variants provide an ideal product mix in terms of consumer needs i.e. Original with Dettol Solution, Skincare with moisturizer, Active with active cleaning agent, fresh with fresh scent and Sensitive for sensitive skin. A new launch of Dettol Herbal Soap, which takes the tally of soaps to six variants. Unique Proposition that Dettol Herbal Soap has to offer is:

“The fundamental idea is that ordinary beauty soaps only offer aspects of beauty but what healthy skin requires is both freedom from germs and the use of natural extracts; something only offered by Dettol Herbal Soap which provides not only Maximum Protection from germs but also contains Aloe Vera, Avocado oil and botanical extracts.” Product line extension and uses The product is used primarily for showering / bathing but is also used for hand washing. A product line extension is Dettol Hand wash which is also available under the Dettol Brand. Product Life Cycle Since this is a Fast Moving Consumer Product, the average product life cycle of this product (if used every day) is 30 days and 2 years if not in use (if stored in a cool and dry location). The brand is entering from growth to maturity. ADVERTISING AND PROMOTION STRATEGY COMMUNICATION STRATEGY OF DETTOL SOAP “Reposition Dettol soaps range as a preferred everyday use solution for the whole family” COMMUNICATION OBJECTIVES • Announce new & improved Dettol soap. • Protection against a wide range of unseen germs (including bacteria & viruses). • Better experience (lather / perfume / feel-on-skin). • Show all 5 variants of new Dettol soap. AGENCY SELECTION Almost 135 Advertising agencies exist in market but Reckitt Benckiser has selected Manhattan International Limited (MIL) Advertising Company because of their outstanding work in Pakistani market. BUDGET Dettol soap is a Rs 1 billion brand annually and so the marketing budget allocated to it approx 20 % of total Net revenue, not much resources have been allocated to Dettol soap marketing efforts due to its squeezed margins and close competition with other antibacterial soaps, it mainly derives its sales from the brand equity of Dettol liquid.

MARKETING COMMUNICATION METHODOLOGIES This is a summary section. Give a brief overview of your advertising, consumer promotions, personal selling, sponsorship programs and database programs. Discuss the relative mix of each of these components and how you will integrate them together into seamless plan. This discussion should relate back to your Marketing Communication Objective and how these methodologies will help in accomplishing the objective. Different advertising rates of various media vehicles have been given in the appendix 1, 2, 3 and 4. ADVERTISING (TVC) Television is still the primary medium for advertising for Dettol soap, and print also forms a crucial part of the communications strategy. But increasingly campaigns are integrated across all these communication channels. All advertisements of Dettol soap are a blend of hard sell and soft sell advertising, as all the Dettol soap advertisements first show the ingredient it contains (Dettol Antiseptic solution) and then portray the emotional benefit for the user which revolves around the theme of a mother and children in which the mother is the one who makes her family use Dettol soap as she is one who decides what is best for her family in personal health, indicating that the target market of Dettol soap are the health conscious mother’s of young children. The main model used in almost all of the Dettol ad campaign is mahnoor baloch. When it comes to advertising, DETTOL prefers TV because of their philosophy that; “HEALTH AND HYGIENE ALWAYS COMES FIRST.” Thus TV is the best media, as you can show how Dettol soap keeps you hygienically clean and protected and gives you daylong protection from body odour. Apart from this, in Pakistan, TV is a strong medium, it has highest reach. Thus a large part of advertising budget is focused on TV. Dettol soap spends around 60 % of the TV advertising budget on all channels with high rating points like PTV, PTV WORLD, GEO, ARY, INDUS VISION etc. Dettol soap advertises highly in summer season i.e. mid of the year, as people prefer frequent washes in such seasons to keep hygienically clean and long lasting protection against body odour. MEDIA PLAN-TV Dettol has devised a well approached media plan which covers almost all of the major channels which are covered through high frequency spots on all (over 12 minutes per channel per day!), with the Dettol soap ad showing in the headline news of geo and PTV. Cable branding has also been carried out two major cities, in Karachi – world call channel branding (72 spots/day) and in Lahore – cable spots (72 spots/day)

The new Dettol Herbal Soap TVC, which went on air from in August on GEO with two spots of a 7 sec break bumper and a 30 sec full commercial every hour for two weeks. With the Presidential Elections due and the political debate it instigated a serious viewer ship and good exposure to Dettol Herbal Ad which helped in building the brand recall. MEDIA PLAN-RADIO The radio ad has been derived from the TVC with air time on all mainstream channels in Lahore and Karachi. PRINT ADVERTISEMENT The next priority of DETTOL SOAP is Print media. Dettol soap has a very aggressive approach in print advertising with the launch of the new Dettol soap ads appear in almost all the leading newspapers around the country e.g. DAWN, THE NEWS, NAWAIWAQT etc. the print ad in given below clearing spelling out the message that Dettol soap is daily usage soap for the whole family with a new formulation, which smell good, feels goods on the skin and is available in 5 different variants. Post Eid a print campaign for the NewDettol Herbal Soap was also launched and its presence was seen on all highly circulated newspapers and monthly magazines. CONSUMER PROMOTION Dettol soap also provides additional support by giving away various consumer promotions to provide the consumer with the extra value benefit. The consumer promotion introduced by Dettol soap was that on a purchase of three soaps the consumer will get a saving of Rs 19. The consumer promotion is as under. 　 　 Another consumer promotion opportunity as a part of new product promotion and sampling effort has been carried out at METRO stores in Lahore and Islamabad where a free soap bar is being offered on a single purchase of the new product, Dettol MPC. 　 INSTORE PLACEMENT STRATEGY Dettol soap has also planned an in-store placement strategy to promote and market their product so to have maximum visibility to the consumer; they have assigned dedicated shelves to the product and are also promoting their product in metro and makro aswell. Their placement strategy is mainly focused on

 Place Dettol Soap next to Safeguard  Equal or more facing than Safeguard.  Place between Lux & Safeguard where Possible.  Build brand block wherever possible. Various placement strategies are shown below. Displays in Top Store Program (HKB, AL-FATEH, AKBARI etc) / Top 1000 stores through dedicated shelves so to have maximum visibility. 　 　 DEDICATED SHELVES AT AKBARI SUPER STORE DEDICATED SHELVES AT AL-FATEH STORES. Display at makro and metro stores to provide maximum availability and visibility to consumer. METRO STORE, THOKAR NIAZ BAIG MAKRO STORE, RAVI ROAD LAHORE As a part of the placement and promotion strategy window branding is also very important.