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Project on Dettol
STRATEGIES AND OBJECTIVES ± Reckitt Benckiser's objective is to generate abo ve industry average profitable growth by: Focusing on building the power brands in high growth categories Geographic expansion o f the portfolio Continuous innovation Higher investment in brand building Margin expansion and cash conversion to fund reinvestment in core brands and to growreturns to sharehold
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 Dettolfamily. 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 thismarket particularly the anti bacterial segment. The anti bacterial market segment hasgrown year on year by more than 7 % percent due to increased consumer awareness andeducation 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 Pakistanand Dettol soap are as follows
Demand: Although the demand for Reckitt Benckiser products is very high but whenwe talk about the demand of the Dettol soap the demand is growing in the antibacterialcategory. 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 co mpetitor of Dettol soap at the time of launching butto day; 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 politicalconditions 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 implementationof its promotional campaigns, since the social cultural environ ment of Pakistan is veryconservative and any suggestive advertisements usually face a lot of negative reactionson the part o f the consumer.
Other factors: like the government regulations and t echnological advancements havehad 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, whileleaving a feeling of freshness behind. Good perfume and foam combine to deliver thisfreshness 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 co nsumer, but are a function of Dirt anddisease. Research led us to know that consumers are largely unaware of the d iversenature of µjaraseem¶.
They just know that Germs (jaraseem) are the bad guys. They don¶tknow that there are different types of germs. Different antibacterial competitors are trying to own a higher gro und by building onalready present germ-kill equity. Like Dettol has given it¶s slogan of ³Dettol protectsagainst a wide range of unseen germs, including bacteria and viruses´ While safeguard is focusing on µDin Raat Lagat aar Tahaffuz¶ which is more powerful inthe mind of the consumer.Lifebuoy is following the ³germ b uster¶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 providesthem and their family with a 100% anti-bacterial solution complete protection from allgerms/ bacteria and cleanliness from dirt / grime. MARKET DEMOGRAPHICS (GEOGRAPHIC, DEMOGRAPHICS, BEHAVIORALFACTORS)
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 (Q UALITY CRAFTSMANSHIP, INNOVATIVE DESIGNS,CUSTOMER SERVICE)
RB is conscious of the changing consumer needs and trends and is constantly conductingmarket 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 Herbalsoap. 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 oilwhich 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 pricesmeans 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 retailmarkets 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 o f potential in the market for growth and add itional brand penetration and brand building. SWOT ANALYSIS THE STRENGTHS
The brand¶s Germ-kill heritage (brown liquid) is seen as strong and add s ontrustworthiness (RTB) Excellent for treating skin irritations, cuts/bruises and seasonal applications Brand comes from a reputable (old) company Loyal following of µOriginal¶
THE WEAKNESSES
Not perceived as an µeveryday 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 DettolSoap an everyday use proposition. THE THREATS
Other main players in the antibacterial soap category (Safeguard and Lifebuo y) have positioned their brands for everyday use against bacteria ± Dettol soap positioning lacksthat 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 Pakistansince 1999 after taking over from Reckitt & Colman. Market share of Dettol soap in thesoap market is around 10% at the end of December 2007. The Dettol soap users have the percept ion that it is effective in germ kill with themedicinal smell of Dettol liquid which is used for Bruises & Cuts, Insect bites, washingof clothes, Mopping of floors, Shaving, Bathing and Cleansing o f skin and used mostlyduring summers. Its functional core need is incidental antibacterial. Safeguard® is the No. 1 antibacterial soap worldwide; it is the only bar soap registeredwith the FDA. Safeguard is designed to provide excellent germ protection for the wholefamily. 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 do ctors' number 1recommended choice throughout the world. The market share of safeguard is the biggestin antiseptic soap category with 22 % share. Safeguard users have the percept ion that it is providing them with Continuous Germ Protection, Gentle on skin, Smells Good, has aeasy 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 waslaunched in 1894 as an affordable new product in the UK, to support people in their mission for better personal hygiene. Lifebuoy soap a ims to provide affordable andaccessible hygiene so lutions that enable people to lead a life free from hygiene relatedworries, everywhere, regard less of the boundaries of nationality, religion and socio-economic status. Lifebuoy has a market share of 16 %. Lifebuoy users see the soap as adecent 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 ma rket share. NewDettol Soaps ability to gain real consumer insights, to launch products and variants thatconsumers actually want, supported by insightful advertising that talks to consumers intheir 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 s kus 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% p rotectionagainst all germs and bacteria for her family. The m other of the family is the focal pointfor Dettol Soap positioning compared to Safeguard and Lifebuoy which focuses onchildren. 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 p remium 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 andLifebuoy). 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 g ms) whichis 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 maximizeloading in the channel and improved distribution when demand (consumer pull) ismaximum. 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 threesoap bars. Geographic pricing strategy
In pricing the seller must consider the cost of shipping. There are different geographicstrategies. But RB utilizes the uniform delivering pricing (the same delivering pricequoted 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 allover Pakistan) that are responsible for the distribution of pre-defined geographical areaswho distribute it further to wholesalers and/or retailers. The retail distribution is further classified
into TOP STORES (TSPs) which include all the high profile outlets like al-fatah, HKB, Akbari stores etc and whole sale comprises of categories of diamond, goldand 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 buyersof key accounts which sell directly to the consumer (in case of USC and CSD) or to smallretailers / endconsumer (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 isalso direct delivery service to key accounts (USC, CSD, MAKRO &METRO). Everyavailable channel is utilized for maximum distribution and coverage to al l thehypermarkets, supermarkets, general stores, kiryana stores and medical stores. Thecompany also has in place a RDF (rural development force) which is covering the ruralareas 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 its target market, which is all households (primarilymothers) 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 / gri me. Product mix
The five variants provide an ideal product mix in t erms of consumer needs i.e. Originalwith Dettol Solution, Skincare with moisturizer, Active with active cleaning agent, freshwith 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 beaut y but whathealthy skin requires is both freedom from germs and the u se of natural extracts;something only offered by Dettol Herbal Soap which pro vides not only MaximumProtection 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 DettolBrand. Product Life Cycle
Since this is a Fast Moving Consumer Pro duct, the average product life cycle of this product (if used every day) is 30 da ys and 2 years if not in use (if stored in a cool and dr ylocation). The brand is entering from growth to maturity. ADVERTISING AND PRO MOTION STRATEGY COMMUNICATION STRATEGY OF DETTOL
SOAP³Reposition Dettol soaps range as a pre ferred everyday use solution for the wholefamily´ COMMUNICATION OBJECTIVES
Announce new & improved Dettol soap . Protection against a wide range o f 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 selectedManhattan 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 itapprox 20 % of total Net revenue, not much resources have been allocated to Dettol soapmarketing efforts due to its squeezed margins and close competition with other antibacterial soaps, it mainly derives its sales from the brand equity of Detto l liquid.
MARKETING
COMMUNICATION METHODOLOGIES
This is a summary section. Give a brief overview of your advertising, consumer promotions, personal selling, sponsorship programs and database pro grams. Discuss therelative mix of each of these components and how you will integrate them together intoseamless plan. This discussion should relate back to your Marketing CommunicationObjective 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 pr int alsoforms a crucial part of the communications strategy. But increasingly campaigns areintegrated across all these communication channels. All advertisements of Dettol soap area blend of hard sell and so ft sell advertising, as all the Dettol soap advert isements firstshow the ingredient it co ntains (Dettol Antiseptic solution) and then portray theemotional benefit for t he user which revolves around the theme of a mother and childrenin which the mother is the one who makes her family use Dettol soap as she is one whodec ides 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 inalmost all of the Detto l ad campaign is mahnoor baloch. When it comes to advertising, DETTOL prefers TV because of their philosophy that;³HEALTH AND HYGIENE ALWAYS COMES FIRST.´ Thus TV is the best media, asyou can show how Dettol soap keeps you hygienically clean and protected and gives youdaylong protection from body odour. Apart from this, in Pakistan, TV is a strongmedium, it has highest reach. T hus a large part of advertising budget is focused on TV. Dettol soap spends around 60 % of the TV advertising budget on all channels with highrating points like PTV, PTV WORLD, GEO, ARY, I NDUS 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 protectionagainst 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 callchannel 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 twospots 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 goo d 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 inLahore and Karachi. PRINT ADVERTISE MENT The next priority of DETTOL SOAP is Print media. Dettol soap has a very aggressiveapproach in print advertising with the launch of the new Dettol soap ads appear in almostall the leading newspapers around the country e.g. DAWN, THE NEWS, NAWAI-WAQT etc. the print ad in given below clearing spelling out t he message that Dettol soapis daily usage soap for the whole family with a new formulation, which smell good, feelsgoods on the skin a nd is available in 5 different variants.Post Eid a print campaign for the NewDettol Herbal Soap was a lso 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 o f new product promotion andsampling effort has been carried out at METRO stores in Lahore and Islamabad where afree soap bar is being offered on a single purchase o f 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 dedicatedshelves to t he 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 Sa feguard.
Place between Lux & Safeguard where Possible.
Build brand block wherever po ssible.Various placement strategies are shown below.Displays in Top Store Program (HKB, AL-FATEH, AKBAR I etc) / Top 1000 storesthrough dedicated shelves so to have maximum visibility.
