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Dettol Soap Marketing Strategy document sample
Dettol Soap Marketing Strategy document sample
& Present 75 Years of Dettol A Case Analysis Contest In association with The Marketing Club of MDI Reckitt Benckiser India Ltd.: 75 years of Dettol Dettol, the brand synonymous with protection from germs, had for long been voted as India’s most trusted brand. In September 2008, the marketing team of Dettol was reviewing the brand’s performance in its 75th year of existence to formulate a three-year plan. Dettol’s growth trend had been slow but steady over the years and a number of initiatives taken in the recent years had started yielding results. The brand started its journey in 1933 as antiseptic liquid, but over the years, it has been extended to a number of product categories like toilet soaps, liquid handwash, liquid bodywash, shaving cream and plaster strips. The growth trend in the last few years had been encouraging with shares showing an accelerated upward growth in most categories, but the team felt share gain could be much faster. The brand team decided to further build on the growth trajectory and set itself a visionary target - that of doubling Dettol’s overall share in next three years in the combined market of the product categories it is present in (Antiseptic Liquid, Bar soaps, Liquid Handwash, Bodywash). The team knew that it had to address various challenges to achieve its ambitious target viz. consumers saw the need for germ kill only in specific situations, resulting in irregular usage and seasonality. The brand had to fight in a competing environment in which new variants and re-launches were used for driving growth, it was critical to determine what & where should be the business thrust to optimize the marketing spend and further accelerate the brand growth. Company Background Reckitt Benckiser India Ltd (RBIL) is a fully owned subsidiary of Reckitt Benckiser Plc., world’s No.1 Company in household cleaning. Reckitt Benckiser Plc came into being with the merger of Reckitt & Colman Plc with Benckiser NV in 1999. The company has operations in 60 countries, sales in 180 countries and has had net revenues in excess of $5.5 billion. Reckitt Benckiser India Ltd (RBIL) manufactures and markets a wide range of products in Personal care, Pest control, Shoe care, Antiseptics, Surface care, Fabric care and other categories. Amongst its many well-known brands are Dettol, Mortein, Harpic, Cherry Blossom, Lizol, Disprin, Robin powder, Colin, etc. Most of these brands are either number 1 or number 2 in their respective categories in India. *Unless otherwise stated, all data given in the case refers to trade channel tracked by AC Neilson, supplied by Reckitt Benckiser India Ltd. This case is prepared by Prof. Vinod Kalia of Management Development Institute, Gurgaon for the Dettol case study contest organized by Reckitt Benckiser India Ltd. in association with MDI-Marquity. The case is not intended to serve as a source of primary data, or effective or ineffective management. The author would like to thankfully acknowledge inputs from the brand team of Reckitt Benckiser India Ltd. and Ms. Smriti Kataria, Ms. Charuta Ambardekar and Mr Karan Sood, students from MDI PGPM class of 2009. Reckitt Benckiser India Ltd.: 75 years of Dettol RBIL distributes all its products through its common distribution channel, which has a wide and deep reach in the markets and is a key strength of the company. The channel is managed by a well- structured sales force, responsible for achieving sales for the entire product portfolio of more than 150 Stock Keeping Units (SKUs). Brand Dettol The brand Dettol was launched in India in 1933 in the Antiseptic liquid form as a treatment for cuts and wounds. For almost the first 50 years, Dettol was present only as an antiseptic liquid. Although it was being used in hospitals and nursing homes for first aid and disinfectant uses like cleaning wards, washing linen, etc. Consumers were also using it for bathing, mopping, shaving and other secondary purposes. While it started its journey as the ‘cuts and wounds’ brand in the country, over the years it had taken over the role of ‘protector from germs’ in every situation. Dettol Antiseptic Liquid has some strong, distinct associations-first and foremost is its trademark smell. Who can miss the characteristic Dettol smell that has been the reassurance to many a child’s scraped knee! Consumers recognize the smell enough to refer to a medicinally clean room as ‘Dettol like smell’. In the book, ‘Planning of Power Advertising’, Anand Halve mentions, “It is a safe bet that you will be able to tell the smell of Dettol liquid on a cut with the reassuring tingling sensation which tells you it has begun to work. Savlon on the other does not have the same burning sensation, (and is) very often seen by consumers as ‘ineffective’ ”. The second characteristic is its amber gold color. The third is the ‘clouding’ effect that appears when it is added to water. Dettol’s packaging is distinct in its very own way. The green & white colours are associated with hospitals. All Dettol products have a sword on the pack, which is a symbol for fighting germs and infection. Over the years, the clouding action and the sword have become synonymous with the brand and have been creatively used in Dettol advertising. Consumers see Dettol as an ‘expert’, as something which is effective and versatile and guarantees protection from germs. It has been likened to a bodyguard who protects them from the unclean and unhygienic outside world. The brand’s versatility stems from multiple uses of the antiseptic liquid which offers protection in so many different forms. Usage of the brand gives rise to many emotions in the consumers’ minds. From making them feel safe and secure about the well-being of their family to making the mother feel that she has done the best for her family, the brand evokes positive imageries and emotions. Thus, it is only fitting that the brand’s tagline says - Be 100% Sure. Over the years brand Dettol has been extended and has made its presence felt in a number of product categories. While Antiseptic Liquid was the category where the brand was born and where it Reckitt Benckiser India Ltd.: 75 years of Dettol continues to command a dominant market share of 85%, its revenue growth is significantly driven by its presence in the other product categories of toilet soaps(or bar soaps), Liquid handwash, Body wash, Shaving Cream and Plasters too (see Exhibit 1 for the complete portfolio). Each of these markets are at varying stages of evolution, so while in one market the brand - as the leader - had the responsibility of driving overall market growth, in other markets, the brand strategy had been to garner share. Fundamental to all the categories was existence/creation of a consumer need for germ protection satiated by Dettol’s trusted promise. Markets for various categories - The Antiseptic liquid market The Antiseptic liquid market in India is estimated at Rs. 120 Crores in 2007(see Exhibit 2a for category sales). The market is dominated by Dettol Antiseptic Liquid, which has close to 85% share. Johnson & Johnson’s Savlon is the other significant player with a market share of 13%. A few years back, this market saw introduction of Suthol brand antiseptic liquid from G.D. Pharma (makers of Boroline). Dettol Antiseptic Liquid is under pricing control of a Govt. authorized body (see Exhibit 2b and 2c for market share & pricing). Communication: Dettol’s communication in the initial years was via medical detailing material, print advertisement in popular press and medical journals. This was followed by TV advertisements centered on first aid application for many years. U&A study showed that while First Aid use in the households had a near 100% penetration, many homes were using it for secondary purposes. In order to exploit this potential in 2005, the message strategy saw a shift to communicating secondary usages like adding Dettol to bathing water, disinfecting the floors, nappy rinsing etc. In early 2008, the brand’s communication took another step forward with its “Aapka Dettol Kya Kya Karta Hai” campaign – that showcased how brand users across the country had formed their own special bond with the brand – using it whenever and wherever they felt a need for disinfection. Antiseptic Liquid is a well-penetrated market, given its use in first aid, and is sold in over 16 lac outlets in the country (see Exhibit 2d for distribution details). Over the years, the product has been extended for other disinfection uses like adding to bathing water, disinfecting baby nappies, adding to water while mopping etc. and at present secondary usage contributes more volumes of Dettol Antiseptic liquid than the primary first aid usage. Other Players in the antiseptic liquid market: Savlon: It is the key direct competitor in the Antiseptic Liquid market. It was launched with ‘no sting with Savlon’ campaign. It attempted to pull the consumer base towards its product promise of non-sting. In Feb 2005, it started with a new ‘70% doctors prefer Savlon’ advertisement with heavy media support. However, brand’s share has more or less remained stagnant over the years. Since beginning of 2007, Savlon has been off air. Reckitt Benckiser India Ltd.: 75 years of Dettol Suthol: G.D. Pharma launched Suthol antiseptic liquid in April 2006 in their stronghold state of West Bengal, which was positioned on soothing sensation, from irritation due to prickly heat, mosquito bites, after-shave, etc. Both TV and print media were used to promote the brand in West Bengal during the launch phase. The brand has shown strong share gain mainly in the East. In 2007, the brand was rolled out to other states, with heavy print support in Delhi & West Bengal, but with little success beyond East. Markets for various categories - The Bar Soap Market The Bar Soap Market in India is worth Rs. 6550 Crores (see Exhibit 3a for category size). With a 100% penetration, the soap market has been volumetrically stagnant in the last few years. However, value wise, the market has been growing owing primarily due to price increases and to some extent a movement from economy brands to brands that are mid-priced or premium priced (see Exhibit 3b for category drivers). The Indian bar soap market has a large number of players that use different appeals to connect with their consumers. The market can be classified into about ten different appeals such as Beauty, Health, Fairness, Freshness, Herbal etc. While the market is dominated by beauty players (52% share), health platform constitutes approximately 23% of the total market (see Exhibit 3c for share and sales of the different classifications of soaps). Dettol Soap was launched in India in the early 80s. The launch was based on consumer feedback on Dettol Antiseptic Liquid, where secondary usage of the product always came up. Since many consumers used Dettol in their bath water, the company thought of offering Dettol in a more convenient form of soap. Dettol Original was the launch soap, which initially found limited acceptance from consumers. Its sales picked up after a changed positioning (please refer ‘Communication’ section for details). By 2000, it saw limited success but its market share had started stagnating. Research on brand equity revealed that while Dettol’s equity remained very strong on ‘germ protection’, the product’s relevance in the consumer’s choice for a bathing soap was getting limited. It was also gathered in the consumer research that while loyalists loved Dettol soap for its trademark fragrance, it was being rejected by a big chunk of consumers as a regular bathing soap bar. The brand team felt a need to launch variants in Dettol Soap given that sensorial measures like fragrance, moisturized soft skin, etc were key drivers when it came to consumers choosing their soap brands. Dettol Skincare soap was thus launched in January 2004 - A white colored soap, offering Dettol’s protection with moisturizers to nourish the skin. This was followed by the third variant – Dettol Cool in February 2006, which offered trusted Dettol protection with menthol to help feel refreshed and revitalized. Dettol occupies a 4.9% share (Full year 2007) in this market. Its major competitiors are Lifebuoy, Lux, Santoor, Savlon, Godrej No 1, etc (see Exhibit 3d for value & volume brand shares). The stronghold Reckitt Benckiser India Ltd.: 75 years of Dettol and dominance of these brands and their distribution, varies across regions and urban and rural markets (see Exhibits 3e and 3f for region-wise value shares and distribution for major brands).While some brands are strong across the market, others have their strongholds in only some of the regions in the country. Dettol variants have contributed incrementally to Dettol soap sales and now make up about 25% of total Dettol soap sales. However, given its heritage and years of existence, Dettol Original Soap continues to be the lead variant, and top of mind when it came to Dettol Soaps (see Exhibit 3g for variant contribution for Dettol and some major competitors). To suit the needs of different consumers, Dettol and its competitors are available in different pack sizes and combo-pack offers (see Exhibit 3h for pack size wise contribution). Pricing also plays a big role in this market that can be segmented as economy, mid-price and premium. Each player is present in different sizes, and hence tries to straddle different pick up prices. Dettol soap has a premium price versus other key players in the market. This has limited Dettol penetration in the lower end of the market. To overcome pricing barrier, small pack was launched in 2007, priced at Rs. 6. This helped in gaining further share (see Exhibit 3i for pricing details). Household penetration and consumer preferences towards Dettol vary across regions and seasons (see Exhibits 3j,3k and 3l for Brand Dettol seasonality, reasons for usage and dislike). Key Players in the soap market: Lifebuoy: Post a major positioning change in 2002 from “male victorious health” to “family health” in the bar soap market, Lifebuoy relaunched itself in March 2004 with improved product and new claim of ‘100% better germ protection*’, and since then has been trying to make strong its equity on germ protection through various communication and new product launches. In February 2005, Lifebuoy has launched a new campaign adding a layer of social good in its communication with a tagline of “Have no Fear”. In November 2007 another new ad was launched comparing vs. beauty soaps in general. Lux: It relaunched itself in 2004, with better packaging graphics and upgraded variants in line with the global range. It was highly visible on-air with a range of Aishwarya Rai copies. Post decline of share in early 2005, Lux launched a new campaign in Sep 2005 with Shahrukh Khan and four prominent film actresses to commemorate 75 years of Lux, via special Promo packs & new pack graphics. In Feb 2007, it again launched a new campaign, ‘Surat bhi, Khoobsurat bhi’. It launched new variant copies in Q2, 2008 (Peach cream & Strawberry cream) offering fruit based skin care. Santoor: It comes up with regular renewal of its copies (one every year) communicating ‘skin that looks younger than its age’ proposition. It launched a new white variant in September 2007. Reckitt Benckiser India Ltd.: 75 years of Dettol Savlon: In the soap category, it is positioned on the ‘Gentle Protection’ proposition. Its share has remained flat at 0.6% over the years. Godrej No. 1: It has had a very low key TV activity, relying mostly on regional print in select states. It frequently airs advertisement featuring popular soap-star ‘Jassi’. Dettol’s Communication: Dettol Original soap was launched on the platform of ‘Mild and gentle skin care’ with the selling proposition as – “Give your family the loving care of Dettol Soap”. However, the brand failed to take off since a mild soap from the Dettol stable did not make sense. Even after two years of launch, Dettol soap could not make its presence felt. In mid 80s, an exhaustive consumer research was undertaken with the objective of finding reasons for dissatisfaction among consumer and the result was the understanding that a consumer need platform has to be built for a special bathing soap based on Dettol’s core strengths and not on the mild and gentle skincare platform. After in-depth consumer research, it was seen that consumers were open to the idea of using Dettol Soap when they faced extreme dirt conditions. Hence, it was felt that Dettol Soap needs to be positioned for occasions that are special, but not rare in everyday life. These could be based on exposure to dirt and germs, pollution, heat, sweat etc. Another challenge was to create a positioning that managed a fine balance between a cosmetic and therapeutic medicated position. The final positioning that was decided was: “Dettol protection comes to you and your family in the form of a soap for those daily occasions when a specially clean germicidal bath is necessary. WHEN NO ORDINARY BATH WILL DO – DETTOL SOAP – THE 100% BATH” The advertising was thus developed along these lines and Dettol Soap was re-launched. The advertising clicked with the consumer. Dettol soap sales reacted very positively to this new communication. Dettol sales grew year after year, with communication being renewed periodically to keep consumer interest in the brand promise alive. Over the years, the communication was moved along this gradient of educating consumers, on how they pick up germs throughout the day and only Dettol soap can give the required protection everyday. Research showed that there was huge hand wash usage of the brand and moreover the usage was highly seasonal with highest usage seen in peak summer and monsoon months when consumers felt visibly dirty and hence associated the period with the presence of germs. The result was that while a high number of consumers used Dettol soaps during specific germy situations, they moved out of the Reckitt Benckiser India Ltd.: 75 years of Dettol brand to the regular soaps in the market once the felt need for germ protection was over. Moreover, while consumers accepted that germs might be presented, the linkage of germs to the illnesses they cause was limited. In order to address this, a new educative campaign, was launched in 2007 with the objective of driving everyday relevance of Dettol soap. As part of this campaign, seasonal hooks were used to establish germ relevance - summer, monsoon, and winter. Consequences of germ pick up were more explicitly voiced. Dettol soap witnessed a sharp surge in sales with the new advertisement (see Exhibit 3m for soap communication). Markets for various categories - The Liquid Handwash Market Dettol introduced the Liquid Hand Wash in 1994. It was known that many consumers use Dettol Soap for cleaning hands. Dettol Liquid Soap gave the consumers a soap in a more modern and convenient format for handwash. In hand washing, the need for germ protection is top most on consumer’s mind. Due to its early and continued efforts in building the segment and given the strength of the parent brand Dettol, this segment was historically dominated by Dettol Liquid Hand wash. The size of the liquid hand wash market is relatively small –Rs. 59 Crores by end of 2007(see Exhibit 4a for market size in volume and value). Although incidence of hand wash in a day is quite high, penetration of liquid handwash is still low in India (estimated as 10% of all Urban House Holds in 2007), bar soaps being typically used for washing hands. The key reasons for low penetration of the category are ‘expensive/low value for money’. Amongst users, the motivators are ‘protection from germs’ followed by ‘convenience of use’. Given category building efforts, the penetration has been showing a steady increase. Dettol’s major competitors in this segment are Lifebuoy, Palmolive, Savlon, Santoor, FEM, etc (see Exhibits 4b for brand shares). The segment is broadly split in two formats: i) Dispensing Format: Pump Packs ii) Refilling Formats: Refill sizes (varying from 200ml to 5 ltr) The category evolution has been based on the increasing penetration of the Pump pack over a period of time. The dispensing pack dominated the market with over 60% contribution (2005). Over the last three years, the refill segment has flourished – as regular consumers re-purchase the refill pack after entering into the segment via the Pump pack. However, the awareness for refill packs is still low. A large base of consumers still re-purchases the Pump pack instead of using a refill pack (see Exhibit 4c for pricing details). Reckitt Benckiser India Ltd.: 75 years of Dettol In building the segment, Dettol has played the role of the market leader and the innovator. In 2005, it was the first player to launch the Pouch refill pack. As the market evolved and the Pouch refill segment grew, all the other competitors entered the pouch refill segment in 2007. Similarly, the latest product innovation offering from Dettol has been the launch of the small pump pack, at a lower pick up price, in the first quarter of 2007. There are multiple product innovation opportunities from the international stable of Dettol hand Wash – which the brand team is evaluating for future launch. As per consumer research, the number 1 category driver for hand washing has been ‘need for protection from germs’. Additionally, consumers look for product attributes like nice fragrance and softness. Another characteristic of the hand wash market is its disproportional dependence on the Modern distribution channel, ie. Self-service stores. Close to 25% of the category business comes from this channel. The self-select environment of the target consumer has multiple implications for the brand. Variants become a key driver for widening the consumer choice set in such a shopping pattern. Dettol Liquid Hand wash currently has three variants, namely, Original, Skincare and Sensitive. Other players also have multiple variants with Lifebuoy having four and Fem having eight. The liquid hand wash portfolio is sold via all three distribution channels of the company, namely: (a) Modern Trade – self-service channel (b) Direct Distributors in large towns (c) Sub Stockist network for reach into smaller towns. The distribution for both category and Dettol Hand Wash has been on a rising curve – with more than three lac outlets stocking the hand wash segment (see Exhibit 4d for distribution details).. Players in the Market: Lifebuoy: It became a serious player in Liquid handwash market in Q3, 2006. Its share went up from 9.3% to 19.8% for the year 2007. Positioned on a ‘protection from germs’ platform it carries the tagline of ‘have no fear’ in the Liquid handwash segment too. Other than Dettol, it is so far the only significant player that invests in the category. With media support and strong promotional support, supporting its relaunch, it has made quick gains in this segment. FEM: Fem, from Ivory chemicals, was historically the key brand in liquid soap category. It used to be the strong number two brand until recently. However, it has lost share heavily since the Lifebuoy Handwash relaunch. The brand is positioned on the platform of ‘soft hands and moisturizing care of Fem’. In 2007, it launched a premium range of products under a sub brand of Fem Cool Angel (three variants, priced at Rs.79/- for 250ml pump pack). Reckitt Benckiser India Ltd.: 75 years of Dettol Palmolive: Palmolive launched handwash in October 2003 with a premium pricing and imported stocks. In Oct 2006, they dropped prices from Rs. 90/- for 300ml Pump to Rs. 55/- for 250ml Pump. While the brand is supported by promotions mainly in the modern trade, it is not active on air. Savlon: It launched its handwash in March, 2005 on the ‘gentle protection’ platform. It currently has a 2% share. It is not supported on air. Santoor: As a strong player in the bar soaps market and with a high market-share in the South, Santoor launched the Liquid Hand Wash in January 2007, along with media support.Post that, the brand has been off air. The liquid hand wash category has seen a sharp increase in the competitive environment with new players entering in 2007 and big brands like Lifebuoy getting active. As the liquid handwash category grows, given the usage of single product for handwashing and bathing in many homes, more and more bar soap players are launching liquid handwash. Chandrika & Margo are two such new entrants, but with no strong marketing support, they are yet to make their presence felt. Communication: Dettol hand wash communication has always focused on the core brand positioning of protection from germs. Over the years, the message of need for hand washing and the risk of germs has been highlighted in various daily germ pick up situations (see Exhibit 4e for the 2005-2007 advertisements). Markets for various categories -The Bodywash Market Dettol bodywash was launched in 2005 for further penetration into related categories and progression into the urban market. The Body Wash market is a small but fast growing category. Its category size was Rs. 16 Crores in 2007. For the last 3 years, the CAGR has been near 30% (see Exhibit 5a for category size). The market is dominated by a few key players namely, Lux Body Wash, Palmolive and Dove (see Exhibit 5b for volume and value brand shares). The current user profile of Body Wash is upper SECs who reside mainly in Metros. The user profile currently also has a slight female skew and the association of the product usage is with feelings of indulgence and ‘pampering oneself’. The category is considered ‘premium’ due to its high priced products (refer Exhibit 5c for the price chart). Given the size of the market, the support behind the category has been overall at a rather low level. The overall penetration in India is a meagre 1%. However, trends in other semi-developed markets Reckitt Benckiser India Ltd.: 75 years of Dettol show that shower gels clearly the body-wash market of the future. In many developed countries, use of soap is changed to bodywash format (almost to 50%). Players in the market: Lux: It launched the MTV range – Friday Night Fever and ran spots on MTV Palmolive: It has launched the ‘Spa’ range with two variants – Thermal and Firming Dove: Has picked up in the bodywash market and launched a new product in 2007 Communication: Lux Body Wash did a big bang advertising launch in 2004 with celebrity endorsement (Kareena Kapoor). That year the category grew by 135%. The other advertiser in this segment was Palmolive, which has been advertising on a low but regular basis. Both brands used niche channels and occasionally use targeted magazines. Dettol launched its campaign in May’07 ‘Pleasure for the Senses, Protection for the Body’. Currently, Dettol Body Wash is distributed by the company in the top six metros and in the self-service stores only. Other Categories Shaving Cream: Dettol launched its shaving cream in 1996.This has also been another successful extension for the brand. The insight into developing this product came from the use of Dettol Liquid in shaving water. Plaster: Dettol Plaster is an important brand in the basket since it is directly used in first aid and hence adds to the first aid range and core equity of the brand. The major competitor in the category is Band-Aid from Johnson and Johnson. At this point in time, these two segments are not the focus for the team. Other initiatives One of the key challenges on use of Dettol has been low consumer awareness on germ pick up situations. Recognizing the same, the team is evaluating how hygiene awareness can be increased further. Apart from communication the initiatives that are currently undertaken are: 1. Dettol Surakshit Parivar: An on-ground consumer contact program, where young mothers are educated on good hygiene practices and school children are educated on hand wash habits. Reckitt Benckiser India Ltd.: 75 years of Dettol 2. Dettol is working with Global Hygiene council, a council working towards increasing hygiene awareness across countries. The results of and recommendations from the studies done are shared through the mass media. 3. Periodic advertorials on good hygiene practices, threat of illnesses, hygiene habits, educational advertorials, etc are some of the other initiatives. Looking Ahead.. Brand Dettol’s growth trend had been steady over the years. In the last few years, there had been an acceleration in its growth, but the team felt that with the right strategies in place, it could leverage the growth momentum it had built in recent past. It was looking forward to finalizing various marketing strategies and initiatives to help it achieve its ambitious objectives. Reckitt Benckiser India Ltd.: 75 years of Dettol Exhibit 1 The complete range of products under Brand Dettol Reckitt Benckiser India Ltd.: 75 years of Dettol Exhibit 2 Antiseptic Liquid market 2a. Market Size 2005 2006 2007 Market Size Value (Rs Crore) 90.1 103.3 120.2 Market Size Volume (Kilo Ltr) 5719 6499 7339 2b. Market Shares Market Share (Value) 2005 2006 2007 Dettol 86% 85% 84% Savlon 13% 13% 13% Suthol 0% 1% 2% 2c. Pricing for Dettol & Savlon for different sizes in Rs. Dettol Savlon 50 ml 10.8 12.5 100ml 17 19.5 2d. Distribution for Dettol in 2007 Distribution (no of outlets) Volume Offtake ( Mn. Litres) All India 16,07,669 6.43 Northern Region 6,03,245 1.29 Eastern Region 3,80,580 1.18 Western Region 2,37,720 1.40 Southern Region 3,86,126 2.56 Reckitt Benckiser India Ltd.: 75 years of Dettol Exhibit 3 Bar soap market 3a. Market Size 2004 2005 2006 2007 Volume(Tons) 5,35,217 5,37,923 5,43,884 5,47,215 Value(Rs crore) 5768 5921 6046 6548 3b. Category ( Bathing soap ) drivers for consumption Category Driver : Bar Soap (body) Trust 0.4 Pleasant fragrance 0.36 Brand for me 0.35 High quality 0.34 Cleans effectively 0.34 Modern 0.32 Leaves skin soft 0.32 Lathers well 0.32 Good VFM 0.32 Is gentle on my skin 0.32 Ideal for whole family 0.32 Suitable for everyday 0.31 Innovative products 0.3 Connection Lasting fragrance 0.29 Germ Protection Rinses easily 0.29 Efficacy Value Effective killing germs 0.29 Innovative Natural ingredients 0.29 Experience Protects against infection 0.25 Gentle Kills viruses 0.23 Recommended by medical profession 0.2 Note: Each individual parameter is rated from a scale of 0 to 1. These parameters are grouped as shown. Reckitt Benckiser India Ltd.: 75 years of Dettol 3c. Toilet Soap Classification Sales revenues of major brands in 2007 2007 value 2007 value Classifications share Major brands Classifications in Rs crore JOHNSON'S Baby 2.8% BABY Baby 149.7 Beauty 52.3% LUX Beauty 1139.5 Fairness 0.7% SANTOOR Beauty 447.7 Freshness 3.4% GODREJ NO 1 Beauty 427.3 Haircare 0.3% BREEZE Beauty 409.4 Health 23.3% NIRMA Beauty 251.1 Herbal 8.2% REXONA Beauty 194.1 Others 4.3% NIMA Beauty 155.1 Skincare 4.7% JO Beauty 111.9 MYSORE Total Toilet Soap 100.0% SANDAL Beauty 96.5 DYNA Beauty 45.9 CINTHOL Freshness 145.5 LIRIL Freshness 71.8 LIFEBUOY Health 1151.0 DETTOL Health 322.5 SAVLON Health 37.7 HAMAM Herbal 202.0 MEDIMIX Herbal 175.6 MARGO Herbal 62.4 PEARS Skincare 242.5 DOVE Skincare 68.1 Reckitt Benckiser India Ltd.: 75 years of Dettol 3d. Market shares of major brands by value and volume Market Share Value (%) 2004 2005 2006 2007 Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Q3'07 Q4'07 Dettol 3.7 3.9 4.3 4.9 3.3 4 4.4 4 3.7 4.8 4.6 4.2 3.9 5 5.6 5.2 Lifebuoy 18 18.4 18.3 17.6 19 19 18 18 19 18 18 18 18 17 17 18 Lux 16.8 15.7 17.5 18.2 16 15 16 16 17 18 18 18 18 19 18 18 Santoor 4.8 5.4 5.9 6.8 5.3 5.1 5.7 5.6 5.2 5.9 6.3 6 6.2 6.6 6.9 7.5 Breeze 7.4 6.7 6.5 6.3 6.7 6.7 6.9 6.5 6.6 6.3 6.3 6.6 6.1 6.2 6.6 6 Godrej No 1 4.1 4.8 5.6 6.5 4.5 4.6 4.9 5.3 5.3 5.3 5.9 5.9 6.2 6.5 6.9 6.5 Savlon 0.4 0.6 0.6 0.6 0.5 0.6 0.6 0.6 0.6 0.7 0.6 0.5 0.5 0.6 0.6 0.5 Market Share Volume (%) 2004 2005 2006 2007 Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Q3'07 Q4'07 Dettol 2 2.3 2.6 3 1.8 2.3 2.7 2.5 2.2 2.9 2.8 2.6 2.3 3.1 3.5 3.1 Lifebuoy 21.8 22.2 21.6 20.9 23 23 22 22 23 21 21 21 21 21 21 21 Lux 14.2 13.5 15.5 16.2 14 13 14 14 15 16 16 16 16 17 16 16 Santoor 4.1 4.9 5.4 6.2 4.6 4.6 5.2 5.2 5 5.4 5.7 5.4 5.7 6 6.3 6.8 Breeze 11.5 9.9 9.5 9.2 10 10 10 9.6 9.6 9.3 9.3 9.7 9.1 9.2 9.6 8.7 Godrej No 1 5.5 6.6 7.8 9.1 6.1 6.3 6.7 7.2 7.2 7.4 8.3 8.3 8.6 9.2 9.6 9.2 Savlon 0.2 0.3 0.4 0.3 0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.3 0.3 0.4 0.4 0.3 Reckitt Benckiser India Ltd.: 75 years of Dettol 3e. Region Wise value share of major brands 2007 All India North East West South TOILET SOAPS value in Rs crore* 6548 1581 1091 1787 2088 LIFEBUOY 17.6 17.3 26.4 18.6 15.4 LUX 17.4 13.2 19.6 19.4 13.9 SANTOOR 6.8 13.1 8.7 7.8 14.6 GODREJ NO 1 6.5 8.1 7.3 5.5 7.8 DETTOL 4.9 10.3 5.1 6.4 7.2 BREEZE 6.3 9.1 2.3 8.0 5.1 PEARS 3.7 3.6 2.7 3.5 4.5 NIRMA 3.8 2.3 2.6 4.1 4.0 HAMAM 3.1 1.9 2.0 2.8 4.0 REXONA 3.0 0.9 0.9 2.5 3.2 MEDIMIX 2.7 1.3 1.9 2.1 3.9 JOHNSON'S BABY 2.3 1.2 1.5 1.0 2.0 CINTHOL 2.2 1.6 2.3 2.2 2.0 NIMA 2.4 1.2 0.5 1.3 1.3 JO 1.7 1.6 1.5 1.3 1.0 MYSORE SANDAL 1.5 1.0 1.1 0.9 0.9 DYNA 0.7 0.9 1.3 1.1 1.0 DOVE 1.0 0.9 1.1 0.9 0.6 MARGO 1.0 0.8 0.4 0.8 NA LIRIL 1.1 0.9 0.8 0.6 0.6 Reckitt Benckiser India Ltd.: 75 years of Dettol Geography-wise value shares (%) for major brands All India All India Towns Class All India Rest All India All India Metro 1 of Urban Rural (Urban+Rural) 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 TOILET SOAPS value in Rs Crores* 1,339 1,450 1,012 1,078 1,040 1,140 2,655 2,881 6,046 6,549 DETTOL 6.5 7.1 4.9 5.5 4.5 5.5 2.9 3.4 4.3 4.9 Dettol Small Packs 0.0 0.1 0.0 0.1 0.0 0.1 0.0 0.1 0.0 0.1 Dettol Large Packs 6.5 7.0 4.9 5.4 4.5 5.4 2.9 3.3 4.3 4.8 LUX 17.9 18.0 17.7 18.8 16.1 16.5 17.8 18.8 17.5 18.2 Lux Small Packs 2.0 2.2 2.3 3.0 2.1 2.4 4.7 5.9 3.2 4.0 Lux Large Packs 15.9 15.8 15.5 15.8 14.0 14.1 13.2 12.9 14.3 14.2 LIFEBUOY 14.1 13.1 14.7 14.0 16.5 15.5 22.6 22.0 18.3 17.6 Lifebuoy Small Packs 1.8 2.0 2.5 2.8 2.7 3.0 7.0 7.7 4.3 4.8 Lifebuoy Large Packs 12.3 11.0 12.2 11.2 13.7 12.6 15.6 14.3 14.0 12.8 SANTOOR 3.9 4.9 6.2 7.0 4.7 5.7 7.2 8.2 5.9 6.8 Santoor Small Packs 0.2 0.4 0.5 0.8 0.4 0.6 0.9 1.5 0.6 1.0 Santoor Large Packs 3.7 4.5 5.7 6.1 4.3 5.1 6.3 6.7 5.3 5.9 *Note: Figures are rounded off 3f. Distribution for the top brands in terms of number of outlets (table1) ;no of dealers (table 2) Table 1 2004 2005 2006 2007 Body soaps 57,29,961 59,14,089 60,75,797 62,44,942 Dettol 20,43,810 19,28,221 18,95,077 21,96,611 Lifebuoy 40,37,418 42,60,275 45,08,039 46,24,383 Lux 36,97,472 38,57,883 42,65,473 42,21,792 Santoor 11,63,726 12,35,822 13,16,524 14,29,301 Breeze 26,08,078 26,41,925 24,74,234 24,10,057 Godrej No 1 10,71,294 12,29,297 13,84,032 14,81,902 Savlon 5,90,696 6,53,858 5,61,717 6,07,843 Reckitt Benckiser India Ltd.: 75 years of Dettol Table 2 All India Metro All India Towns Class 1 All India Rest of Urban All India Rural All India (Urban+Rural) 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 TOILET SOAPS 7,10,977 7,65,497 6,81,077 7,16,910 9,72,667 9,74,185 37,11,031 37,88,334 60,75,773 62,44,918 DETTOL 54.7 57.5 47.1 48.8 41.3 46.7 21.1 25.1 31.2 35.2 Dettol Small Packs 0.2 7.5 0.4 5.6 0.4 4.2 0.2 3.7 0.2 4.5 LUX 83.6 82.3 76.2 73.7 70.1 69.5 66.6 63.0 70.2 67.6 Lux Small Packs 46.1 43.9 38.9 32.2 26.2 25.6 29.3 29.6 30.0 29.5 LIFEBUOY 80.9 80.2 76.8 71.2 72.0 69.5 73.0 74.5 74.2 74.0 Lifebuoy Small Packs 42.1 50.2 35.9 40.0 30.3 39.7 41.8 49.6 39.3 47.0 SANTOOR 32.8 32.8 27.1 28.4 20.5 21.8 18.8 20.1 21.7 22.9 Santoor Small Packs 10.6 12.6 10.1 11.9 5.8 7.5 9.7 11.9 9.2 11.3 Reckitt Benckiser India Ltd.: 75 years of Dettol 3g. Variant contribution to market shares for key players Dettol 2005 2006 2007 Cool 0 0.3 0.5 Skin Care 0.5 0.5 0.5 Original 3.3 3.5 3.8 Lifebuoy 2005 2006 2007 Skin Guard 0 0 0.1 Clear Skin 0.2 0.3 0.3 DeoFresh 0.9 0.7 0.4 Nature 0.7 0.9 0.5 Care 1.7 1.3 1.3 Total/Strong 14.9 15.1 15 Lux 2005 2006 2007 Pink 8.5 7.9 7.7 White 4.7 6.4 7.1 International 0.9 0.9 0.8 Black 0.9 0.7 0.6 Festive Glow 0.7 0.9 0.5 Aqua 0 0.6 0.7 Haute Pink 0 0 0.4 White Glow 0 0.1 0.3 Crystal Shine 0.1 Provocateur Reckitt Benckiser India Ltd.: 75 years of Dettol 3h. Pack size wise Contribution Pack Size Category Dettol Lifebuoy Lux Santoor 0-50g 16% 3% 28% 24% 16% 75g 11% 45% 1% 11% 0% 90-125g 39% 12% 55% 52% 70% 150g 3% 0% 0% 2% 3% Multi/Promo Pack 32% 40% 16% 12% 11% Total 100% 100% 100% 100% 100% 3i. Price chart for key players Size(g) MRP(Rs.) 35 7 Dettol 70 18 120 29 42 5 Lifebuoy 90 12 115 14 45 5 Lux 75 10 100 17 125 21.5 Reckitt Benckiser India Ltd.: 75 years of Dettol 3j. Brand Dettol: Seasonality Dettol Soaps : Low Penetration & share in off season months HH Penetration % (Urban) 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Val Share% 6 5.7 5.6 5.5 5.4 5.4 5.3 5.1 5.1 5 4.9 MS VAL 4.7 4.5 4.2 4 3.8 3.6 3.5 3 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2005 2006 2007 Note:The graphs show a trend in house-hold penetration of Dettol in urban areas and value share (actual & expected) in the soap market Reckitt Benckiser India Ltd.: 75 years of Dettol 3k. Region-wise seasonality for Dettol soap consumption Germ Relevance - a key reason for low consumption Seasons when Dettol soap is used I use it the same 34 amount all year 52 round 70 70 12 2 Mainly in Rainy 10 Season 0 51 8 10 37 3 3 Mainly in Winter 19 18 North East West South Mainly in Summer Reasons for using Dettol soap in a particular season North (105) East (124) West (49) South (32) 65 There are more germs at 78 94 90 this time of year I need it for different 22 3 6 18 things at this time It's smell is suited to that 8 3 4 21 time of year 2 It is more easily available 3 1 9 at this time Reckitt Benckiser India Ltd.: 75 years of Dettol 3l. Dettol: Reasons for dislike (if any) Dettol Dislikes What if anything do you dislike about Dettol Beauty Germ Protection Herbal Users Users Users Base: 1270 277 81 Too Expensive 10 12 4 Strong/ Harsh 5 4 6 Unpleasant 5 3 4 Fragrance Not for everyday 4 3 1 use Not effective at killing germs 3 6 5 Note: The base represents the number of respondents interviewed, while the other figures in the table indicate percentage of respondents who have given a particular reason for dislike Reckitt Benckiser India Ltd.: 75 years of Dettol 3m. Communication for Dettol soaps Summer Advertisement Monsoon Advertisement Reckitt Benckiser India Ltd.: 75 years of Dettol Winter Advertisement Reckitt Benckiser India Ltd.: 75 years of Dettol Exhibit 4 Liquid Handwash market 4a. Market Size 2004 2005 2006 2007 Market Size (Value,Rs. Crore) 26.3 27.8 39.4 58.7 Market Size (Volume,Kiloltr) 1430 1626 2185 3236 Recent Quarters Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Q3'07 Q4'07 Market Size (Value,Rs. Crore) 8.4 9.4 9.9 11.8 13.9 13.9 15.8 15.2 Market Size (Volume,Kiloltr) 478 513 542 651 764 758 865 850 4b. Market shares of leading brands Yearly 2004 2005 2006 2007 Dettol 53% 58% 54% 51% Lifebuoy 0% 4% 10% 20% Fem 29% 27% 26% 17% Savlon 2% 2% 1% Palmolive 13% 6% 4% 7% Santoor 0% 0% 0% 0% Recent Quarters Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Q3'07 Q4'07 Dettol 54% 54% 56% 53% 50% 50% 51% 50% Lifebuoy 8% 8% 11% 14% 17% 19% 20% 23% Fem 29% 29% 26% 21% 21% 19% 16% 11% Savlon 2% 3% 2% 1% 1% 1% 1% 1% Palmolive 4% 4% 3% 5% 7% 7% 7% 7% Santoor 0% 0% 0% 0% 1% 2% 2% 2% Reckitt Benckiser India Ltd.: 75 years of Dettol 4c. Price Chart for various pack sizes Format Brand MRP Size (ml) Dettol 55 250 Dettol 38 135 Lifebuoy 40 200 Fem 55 250 Palmolive 55 250 Pump Pack Santoor 55 250 Dettol 30 200 Lifebuoy 25 180 Fem 29.5 200 Palmolive 35 250 Pouch Refill Santoor 27 180 Dettol 150 1000 Lifebuoy 125 900 Fem 159.5 1000 Palmolive 150 1000 Large Refill Santoor 150 1000 Reckitt Benckiser India Ltd.: 75 years of Dettol 4d. Availability Trend with respect to the number of outlets 350000 300000 250000 200000 150000 100000 50000 0 6 7 06 6 6 07 7 07 08 6 7 6 7 8 '0 '0 '0 '0 '0 '0 '0 '0 '0 '0 y' n' n' n' l ov v ay ay ar ar ar pt pt Ju l No Ja Ja Ja Ju M M M Se Se M M N LHW Dettol Lifebuoy Fem Palmolive *LHW stands for Liquidhandwash 4e. Communication 2005 2006 2007 - current Reckitt Benckiser India Ltd.: 75 years of Dettol Exhibit 5 Bodywash market 5a. Market Size 2005 2006 2007 Value (Rs crores) 9.2 12.2 16.3 Volume (kilo ltr) 329 436 580 5b. Market shares for major brands by value and volume Market Size (Value) 2004 2005 2006 2007 Palmolive 52% 44% 41% 37% Dove 5% 5% 15% Lux 38% 42% 44% 41% Fiama Di Wills Fa Dettol 4% 6% 4% Market Size (Volume) 2004 2005 2006 2007 Palmolive 50% 43% 37% 36% Dove 4% 3% 12% Lux 39% 45% 50% 45% Fiama Di Wills Fa Dettol 4% 7% 4% 5c. Price chart for major players Brand Size(ml) Price(Rs.) Per 100 ml Price Index* Lux 250 70 28 100 Lux 125 40 32 114 Palmolive 250 90 36 129 Palmolive 130 45 34.6 124 Dove 250 125 50 179 Dettol 250 85 34 121 Dettol 125 45 36 129 *Note: Considering the ‘cheapest per 100 ml’ pack as 100, the price indices for competitive brands in various pack sizes has been calculated.
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