RECKITT BENCKISER: DEVELOPING A NEW
LAUNDRY- CARE CATEGORY IN INDIA
Submitted By:
Section- C
Group 7
AAYUSH RAJ-19A1HP069
ANKUR SRIVASTAVA-19A2HP453
PIYUSH KATRE-19A1HP060
SHIVKANT TIWARI-19A3HP658
AMAN KUMAR JHA-19A3HP660
RAM DHAR-19A3HP666
ROHIT JONATHAN YELLAMELLI-19A2HP452
Summary
Reckitt benckiser is a British multinational consumer goods company headquartered at slough,
Berkshire England. It was formed in the year 1999 under the merger of “Reckitt & colman”
with Netherlands based “Benckiser” NV. It is a major producer of consumer health and
hygiene products; it has operations in 60 countries and its products are sold in nearly 200
countries.
Reckitt Benckiser (RB) started its operations in India with three main portfolios: personal-care
products, household products, and over the counter pharmaceutical products(from exhibit 2).
RB was able to dominate each category with specific products like Veet, Air Wick, Strepsils.
The increasing trend in Indians for the need of health and personal care products was seen by
RB as an opportunity and introduced its flagship product “Dettol” in India in the year 1933.
Dettol is an anti-septic liquid used in surgical procedures and childbirth but later became an
all-purpose skin anti-septic, Dettol soon became a household name in the market.
Dettol was presented as a multi-purpose utility product which could cater to diversified needs
of people. Dettol’s successful start with an antiseptic solution helped it to diversify its business
with a new range of household utility products such as soap, shaving cream, plasters, liquid
hand wash, kitchen gel and hand sanitizer. Dettol with its 100% sure tag line soon became a
trusted brand.
Reckitt Benckiser India, noticed an opportunity to grow in the laundry care market which grew
by 9% in retail value and reached ₹189 Billion in 2015 , the launch of new variants and value-
added products further added to expand the category. (from Page:5)
Even with the presence of huge competitors RB wanted to enter the market, but they were in a
dilemma about whether to enter the market as a brand extension of Dettol or should they enter
market with a new brand. They were also worried about the possible obstacles involved in
expanding their business.
1. Launch of detergent as a brand extension of Dettol or develop new
brand for detergent:
It is better for RB to launch detergent as a brand extension of Dettol due to the following
reasons:
Well-known brand
Consumers have a positive image of Dettol as a brand, all thanks to emotional connect
created by the emotional marketing strategy over the past years. In addition, there is a close,
profitable and unique association of the brand with consumers, which pays special attention
to protection against microbes (health and hygiene).
Consumer faith
There is a credibility factor among consumers, as Dettol invariably demonstrates its brand
promises and matches its vision - what they should do and what they do for the consumer.
Reduced costs
Because Dettol is a recognized brand, the cost of promoting the new product launched under
it has decreased. Also, consumers are familiar with the brand so the percentage of consumers
trying the product reduces and percentage of repurchase increases.
Better brand recognition
Thanks to the multitude of products under the same brand, the brand is more visible among
consumers, because they see it more often, which can make them strengthen their belief that
it is a good brand, thus increasing the value of the brand.
Competitive advantage
By adding various products to its existing range, the brand is able to capture a broader
market share than its rivals, affecting their ability to capture the main product markets.
2. Brand Positioning bulls’ eye of new detergent
3. Possible obstacles to Reckitt benckiser in launch of detergent:
Strong Competitors:
RB would face stiff competition from huge companies like Hindustan Unilever limited,
Procter & gamble, Rohit surfactants private limited, Nirma limited should it launch a
detergent.
Huge R&D efforts
RB would have to invest heavily on research and development to come up with a new
detergent and at the same time provide high quality product at a low-cost product.
Threat of new entrants
There is every possibility that a new competitor may emerge with a new product at a
less price.
