dettol

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WHY DETTOL IS ONE OF THE MOST TRUSTED BRAND OF INDIA? ABOUT THE COMPANY: RECKITT BENCKISER (INDIA) LIMITED Reckitt Benckiser (India) Limited Profile: Reckitt Benckiser was formed on 3 December 1999 as a result of the merger with Reckitt & Colman plc and Benckiser N.V. It is headquartered at Berkshire, United Kingdom. Worldwide, the company has a leading position in household cleaning and health & personal care. Reckitt Benckiser products are sold in 180 countries and they have operations in 60 countries. Reckitt Benckiser is about passionately delivering better solutions in household cleaning and health and personal care to customers and consumers, whatever they may be for the ultimate purpose of creating shareholder value. The Company's principal activities are manufacturing and distributing a wide range of household and personal products. Reckitt Benckiser products are sold in 180 countries and they have operations in 60 countries. Products of the Company include antiseptics, toilet care products, shoe care products, mosquito repellants and personal health care products. The Company manufactures the Dettol branded antiseptics, soaps, talc, medicated creams and medicated plasters, Disprin analgesic tablets, Lizol floor cleaner, Mortein mosquito repellants and rat killer, Robin power, Harpic lavatory care product, Cherry shoe polish and Collin glass cleaner. Health and personal care products accounted for 58% of 2002 gross revenues; Household products, 41% and Food products, 1%. Reckitt’s Dettol brand, with decades of leadership, has become a generic name for the product. Dettol enjoys a monopoly position in the antiseptic market with an 85% market share. Dettol Antiseptic contributes to 8% of Reckitt’s turnover and is among the few brands in its portfolio that registered a positive growth. The company has also extended its brand equity to soaps and talc. Dettol soap enjoys a market share of 10% in the premium soap market. Dettol soap volumes registered an 8.2% yoy decline as against industry degrowth of 11.6%. FUTURE PROSPECTUS OF THE COMPANY: Reckitt has faced tremendous competitive pressure in key product segments from domestic as well as global players, which has resulted in steady market share decline in most categories. Growth in the last 2-3 years has been largely driven by pest control brand Mortein and product variants launched under its flagship Dettol brand. The company is now looking at new categories such as Incense sticks and extension of Dettol brand equity to surface cleaners to spur volume growth. However heavy advertising and promotion will be necessary to grow these markets as well as protect existing market shares in mature categories, which will impact margins. Dettol Liquid Soap today is the leader in the Indian handwash liquid soap category. Dettol - The very name brings to mind a brand synonymous with health

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Page 1: dettol

WHY DETTOL IS ONE OF THE MOST TRUSTED BRAND OF INDIA?

ABOUT THE COMPANY:RECKITT BENCKISER (INDIA) LIMITED

Reckitt Benckiser (India) Limited Profile: Reckitt Benckiser was formed on 3 December 1999 as a result of the merger with Reckitt & Colman plc and Benckiser N.V. It is headquartered at Berkshire, United Kingdom. Worldwide, the company has a leading position in household cleaning and health & personal care. Reckitt Benckiser products are sold in 180 countries and they have operations in 60 countries. Reckitt Benckiser is about passionately delivering better solutions in household cleaning and health and personal care to customers and consumers, whatever they may be for the ultimate purpose of creating shareholder value.

The Company's principal activities are manufacturing and distributing a wide range of household and personal products. Reckitt Benckiser products are sold in 180 countries and they have operations in 60 countries. Products of the Company include antiseptics, toilet care products, shoe care products, mosquito repellants and personal health care products. The Company manufactures the Dettol branded antiseptics, soaps, talc, medicated creams and medicated plasters, Disprin analgesic tablets, Lizol floor cleaner, Mortein mosquito repellants and rat killer, Robin power, Harpic lavatory care product, Cherry shoe polish and Collin glass cleaner. Health and personal care products accounted for 58% of 2002 gross revenues; Household products, 41% and Food products, 1%.

Reckitt’s Dettol brand, with decades of leadership, has become a generic name for the product. Dettol enjoys a monopoly position in the antiseptic market with an 85% market share. Dettol Antiseptic contributes to 8% of Reckitt’s turnover and is among the few brands in its portfolio that registered a positive growth. The company has also extended its brand equity to soaps and talc. Dettol soap enjoys a market share of 10% in the premium soap market. Dettol soap volumes registered an 8.2% yoy decline as against industry degrowth of 11.6%.

FUTURE PROSPECTUS OF THE COMPANY:

Reckitt has faced tremendous competitive pressure in key product segments from domestic as well as global players, which has resulted in steady market share decline in most categories. Growth in the last 2-3 years has been largely driven by pest control brand Mortein and product variants launched under its flagship Dettol brand. The company is now looking at new categories such as Incense sticks and extension of Dettol brand equity to surface cleaners to spur volume growth. However heavy advertising and promotion will be necessary to grow these markets as well as protect existing market shares in mature categories, which will impact margins.

Dettol Liquid Soap today is the leader in the Indian handwash liquid soap category. Dettol - The very name brings to mind a brand synonymous with health and hygiene. Most of us would have used the antiseptic lotion at sometime or the other, be it as an additive in water with our daily bath, cleaning the floor of the house, as an after-shave or simply to clean wounds/burns. Indeed such is the top-of-the-line recall of this brand that it’s been unfailingly named as one of the 20 most popular brands in India for the last 2 decades. The Dettol brand today is the most trusted brand in India and is regarded across the country as the Gold Standard in protection. Dettol products are available across all metros and towns and villages in over 15 lakh outlets.

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India's top brands - A&M/Mode Survey

RANK BRAND SCORE (Rs crore)

1 Colgate 56.2

2 Dettol 43.6

Dettol also brands, Dettol antiseptic liquid: Dettol’s makers are banking on the fact that their star brand,

Dettol antiseptic liquid, enjoys monopoly, and is entrenched firmly in the Indian market.

Dettol antiseptic soap: has a full 100%germ free wash that makes you feel fresh to start a new day in the morning/evening post a hard days work. The sheer smell of the product gives the feeling of fresh, clean and hygiene.

Dettol Liquid Soap: Dettol Liquid Soap was launched in 1994 to address consumers’ need for convenient hand hygiene. Dettol Liquid Soap comes in SKUs of 250 ml Pump and Flip-top packs. It is also available in 1 L packs. Dettol Liquid Soap carries the familiar Dettol smell and promises the same 100% protection that is identifiable with all Dettol products. As the handwash specialist, Dettol Liquid Soap is the leading player in the rapidly growing handwash liquid soap category and is widely available in all urban areas.

Dettol Disinfectant Cleaner Dettol talc Dettol antiseptic cream Dettol mouth wash Dettol medicated creams and Dettol medicated plasters.

Dettol Liquid Soap Skincare: Reckitt Benckiser has launched Dettol Liquid Soap Skincare, its latest variant in the Dettol Liquid Soap stable. Dettol Liquid Soap Skincare delivers protection against germs and illness, along with an excellent mild fragrance and added moisturizers to keep hands soft and supple. Dettol Liquid Soap Skincare, in stores nationally is available in a 250 ml Pump Pack for MRP Rs.55 and a 250 ml Flip-top pack for Rs.45. The 1 L Pack is available for Rs.140/-.

INGREDIENTS OF DETTOL:

It contains “Triclosan” – an excellent chemical that aids in cleaning germs and bacteria. Irrespective of the other ingredients, what we look for when buying a cake of soap is the amount of Total Fatty Matter (TFM) content in it. It only forms the basic and largest ingredient in any bathing soap. The more the TFM content, better the soap. TFM is a mixture of natural plant fats and artificial chemical fats and is the compound that’s responsible for all the lather that comes into view when the soap is made wet and rubbed against the body. It is common knowledge that more lather leads to better cleansing. A Dettol soap contains 73% TFM as against an average of 70% across all other soaps.

USP:

Page 3: dettol

The packaging not only uses the same colours-dark green and white-to ensure that the customer is directly or subliminally reminded of Dettol, but also uses the mnemonic of a sword that is strongly ensconced in public memory as associated with the parent product.

The soap is orangish in colour and fits well into the hand while (sc)rubbing the body. The price at which the soap sells is almost at par with other premium bath soaps like Lux,

Palmolive, etc. Longitivity The peculiar odour of Dettol is one of the most omnipresent smells in dispensaries, clinics

and hospitals. And as an antiseptic germ-killer and a potent disinfectant, Dettol must be unparalleled in medical history.

Being usable for different kinds of skins, it can also be used safely during different seasons without any negative effects. Many other soaps have this effect of inducing my skin to peel off during winters which was not the case with Dettol

Product Positioning: Dettol is positioned as’’hygiene soap’’.

Product tag line: Good health begins with hygiene’’, supposedly a slogan by Indian Medical Association.

Target market of dettol: The target market of dettol is a hygiene conscious consumer.

Brand Personality

The brand personality of Dettol is that of a person who fastidious, clean and sensible person is.

TO REINVIGORATE THE DETTOL BRAND

To evolve a brand that had great consumer good will, but had lost every day relevance. Sales of the Dettol household antiseptic brand had declined due to changes in cleaning behaviour. Our task was to reinvigorate the brand.

Dettol antiseptic had been a fundamental part of household life for decades. Before baths became an everyday occurrence and 'easy cleaning' surfaces had become the norm, powerful disinfectants were an everyday part of life. A capful of Dettol was an important and reassuring additive, as baths were about serious cleaning for a largely manual workforce. As times changed Dettol's strong carbolic smell became less appropriate for the more pampering role that bathing had acquired and suggested 'hospitals' or some disaster, rather than a clean home. We considered what to keep, add and lose in the Dettol equity and developed a range extension, that was more relevant to everyday living. Deep Fresh, the pampering bath additive; Dettox the virtually odourless and clear surface cleaner - both with the reassurance of Dettol's disinfective power. That reassurance came through the name and the retention of the Dettol sword in the pack graphics.

As a result of this brand extension, sales of the Dettol family grew two fold and the original 'mother brand' found a clear position as the ultimate in antiseptic power, when required.

Brand strength of DettolDettol’s fragrant bath soap was a failure. The consumer associated Dettol and its ‘antiseptic’ smell with cleanliness and being germ-free and when this was missing from the newly launched soap, they did not accept it. Here the strong brand strength worked against its extension.

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New variants of Dettol brand

Dettol Liquid Soap Skincare offer customers unbeatable protection which is also gentle on hands

Dettol shower gel.

Dettol floor cleaner.

Market share of dettol

In the premium soaps category, according to industry figures, Dettol soap is leading the race with a 3.3 per cent market share nationally, followed by Pears with 3.2 per cent while Liril has 2.5 per cent share. Margo and Mysore Sandal occupy the fourth slot with market share of 1.9 per cent each. On the other hand, while the Lux normal brand from the HLL stable is leading the charts in the overall toilet soap category with a market share of 15 per cent, the Lux International brand, which comes under the premium segment, is way behind with just 1.5 per cent. Industry figures show that Dettol grew, in value terms, by 13.8 per cent in April compared to 11.5 per cent in March. Similarly, Liril has grown by 10.5 percent in April compared to a 10 per cent growth in the previous month.