DETTOL [R.B.]I am a B2B manager of this company for

April 2010 to March 2011

• Submitted to: Mr. Rakesh Chaudhry

Submitted By:Amit SinghPG20082605Group 1

ObjectiveReckitt 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

SITUATIONAL ANALYSISSome uncontrollable situational factors that are faced by the Reckitt

Benckiser 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.

• 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 India. 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

MARKETING ANALYSISIn 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.

• 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:-

As per my point of view:• All Hospitals of the City or Town• All Hotels of the City or Town• All School or Colleges of the City or Town• All Restaurant of the cities.

MARKET NEEDS & Trends

• 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.

MARKET GROWTH:-

• In India, soaps are available in five million retail stores, out of which, 3.75 million retail stores are in the rural areas. Therefore, availability of these products is not an issue. 70% of India's population resides in the rural areas; hence around 50% of the soaps are sold in the rural markets. 

The major players in Soap market are HLL, Nirma, P&G and RB.

• 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.

COMPETITION ANALYSIS:-• Dettol soap is a brand of Reckitt Benckiser

India Ltd and it has been operating in India since 1933. Dettol is the leader in the antiseptic market with 85 per cent market share.

• Safeguard is the No. 1 antibacterial soap worldwide; it is the only bar soap registered with the FDA

• Lifebuoy is one of Unilever's oldest brands. Lifebuoy has a market share of 16 %.

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.

Extensive Market Growth Market Penetration and Market Expansion. Achieving High Gross Margins High Customer Services and Satisfaction New Product Development and Entrepreneurship.

For Ex. New Dettol Fresh

[Stay Protected, Saty Fresh with new Dettol] 

PRODUCT OFFERINGThe 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.

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.

Positioning by price and quality• As Dettol is a premium brand, it is priced at a premium to its

competitors (Safeguard and Lifebuoy).

PRICING STRATEGYPrice 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.

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 that are responsible for the distribution of pre-defined geographical areas who distribute it further to wholesalers and/or retailers.

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 or to small retailers / end-consumer.

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.

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:

Citrus Talent Management Agency

ADVERTISINGDETTOL prefers TV because of their philosophy that; “HEALTH AND HYGIENE ALWAYS COMES FIRST.” Dettol soap spends around 60 % of the TV advertising budget on all channels with high rating points.

• MEDIA PLAN-TV (over 12 minutes per channel per day)• MEDIA PLAN-RADIO• PRINT ADVERTISEMENT

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. Times of India, Dainik jagran HT etc.

BUDGETDettol soap is a Rs 1 billion brand annually and so the marketing budget allocated to it approx 20 % of total Net revenue.

For the year ….. April 2010 to March 2011

Advertising Strategy:-• Main target for the year is Hospitals, Hotels

and Big colleges. For them • we going to road shows.• Distribute Free Sample.

• In case of Hotels we offer them discount on our best selling price. Or we offer them 4% discount on product for whole year, which we offer to our whole sellers.

Budget for the year…

• In case of advertisement..Activity Amt. Per

activityTotal

For Shows 40,000 (3 times) 1,20,000

For sample distribution

10000 (6 times) 60,000

For Kiosk/ cafe 20000 (3 times) 60,000

TOTAL --------- 2,40,000

Sales Forecast for the Year…

For the Year…• In 1st Month we are going to advertise in

all targeted areas. • But after 1st Month our target is at least

10 Hospitals/Hotel/Institutional area per month.

• It means in whole year our target is near about 100 to 150 institutes. Which are ready to use only Dettol products.

Sales of the yearCustomers Units per

monthUnits in a year

Per unit cost (After Discount)

Total

Hotel (100 rooms)

Soap: 100 unitsLiquid: 150 units

Soaps: 1100Liquid: 1650

19.20 Rs.38.40 Rs.

21,120 Rs.63,360 Rs.

Hospitals Soap: 200 unitsLiquid: 200 units

Soap: 2200Liquid: 2200

19.20 Rs.38.40 Rs.

42,240 Rs.84,480 Rs.

Institutes Soaps 50 unitsLiquids 50 Units

Soap: 550Liquid: 550

19.20 Rs.38.40 Rs.

10560 Rs.21,120 Rs.

Total ----- Soap: 3850Liquid: 4400

------ 2,42,880 Rs.

This is the estimation of only one institutes of every segment….

Final Balance sheet of the year…• Total Exp. On the Advertisement in a year…

(Rs. 2,40,000) + Extra Expenses (Rs. 60,000)• Income of the year … From 3 institute

average income (Rs. 2,40,000), Our estimation for sale is 50 to 60 institutes.

So income is (2,42,480 * 50 = 1,21,24,000)

Profit = 1,21,24,000 – (3,00,000 +

Manufacturing cost)

Manufacturing Cost:• Sorry I can’t find it ….

Lets assume for Soap its 18 Rs.Liquid its 36 Rs.

Then Total unit Soap: 3850*50 = 1,92,500*18 = 34,65,000Liquid: 4400*50 = 2,20,000*36 = 79,20,000

Total Manufacturing cost :34,65,000 + 79,20,000 = 1,13,85,000

Profit: 1,21,24,000 – (3,00,000 + 1,13,85,000) =

4,39,000Rs.

• THANK YOU…