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Marketing Plan for Dettol Liquid Handwash

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    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. ‘Reckitt Benckiser is about passionately delivering better solutions in household cleaning and health & personal care to customers and consumers, wherever they may be, for the ultimate purpose of creating shareholder value. ’ Dettol is a market leader in the liquid handwash market of India, with a market share of 61%.

    The industry has been growing at an average rate of 20%. Dettol plans to expand its market using the Market Development Strategy, that is, by increasing users and increasing usage. Increasing Users: Dettol plans to add new users by entering and penetrating the rural market of India on a grand scale. This will be done by introducing small Sachets with a nozzle for easy use. It also plans to tie –up with hospitals and major clinics located in rural India. Increasing Usage: By promoting the sachets in urban India as a carry item for travelling. 2. INTRODUCTION 2. Markets for various categories: The Liquid Handwash 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. 9 Crores by end of 2007. 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. 3. MARKETING STRATEGY 3. 1 Strategies and Objectives

    Reckitt 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 3. 2 SWOT Analysis [pic] 3. 3 Situation Analysis Population The population of India is estimated to be 1,17,73,39,000 in 2010. As per the 2001 census around 70% of the population continues to reside in rural areas.

    Hence there exists a huge untapped market in liquid hand wash segment. ? Michael Porter’s five forces Analysis: 1. The threat of substitute products or services In rural areas, to wash hands people commonly use • Ash or “rakh” • Mud • Plain water 2. The threat of entry of new competitors Due to the huge size of the rural market in India, other companies, international, national or local can enter the market. 3. The threat of existing competitors Due to the huge size of the rural market in India, existing players in the liquid hand wash market are a source of competition in the rural market like: Lifebuoy • Palmolive • Fem 4. Bargaining power of buyers The tendency of rural consumers is to purchase small quantities of a product. Thus customers behave differently than those in urban areas. So as a force consumers in rural areas collectively will influence the product design. 5. Bargaining power of suppliers The suppliers of raw materials in a liquid hand wash most probably will not cause any problem. 3. 4 Competition Analysis Dettol’s major competitors in this segment are Lifebuoy, Palmolive, Savlon, Santoor, FEM, etc. The segment is broadly split in two formats: ) 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.

    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 lakh outlets stocking the hand wash segment. 3. 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). 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. 3. 6 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. 3. 7 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. 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. 3. 8 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. pic] [pic] [pic] [pic] ? 3. 9 Objectives Return on investment The expected ROI is the same as that for urban India Image The image of Dettol as one stop solution to Household Cleanliness is the one targeted for rural India. 3. 10 Marketing strategies Targeting The main target market is the rural market of India, as well as the middle and lower income families of the urban market. Positioning The product is positioned as a necessity for a healthy and hygienic lifestyle- for protection against germs and resulting diseases. 4.

    Marketing Mix 4. 1 Product Strategy Dettol Liquid Handwash comes in sizes of 135 ml and 250 ml and refill packs of 200 ml and one litre. The mini packs will be of 25 ml sachets with a nozzle for convenient use and for easy carrying along for journeys. The product will first be introduced in its basic variant, that is, Dettol Original Handwash for one year. Thereafter decision regarding introduction of the other two variants will be taken after conducting a market survey. 4. 2 Price Strategy The sachet would be priced at 7 rupees.

    This price has been worked out from the cost of production and adding a slightly higher mark-up in order to compensate for additional promotion expenses. 4. 3 Place Strategy The product will be available to the rural market via the existing rural distribution channels of Dettol and at all Hospitals and major Clinics in the villages by setting up small counters there. 4. 4 Promotion Strategy Dettol Liquid Handwash sachets will be advertised as an ‘Easy to Carry’ pack in the urban markets using short, informative add-ons to the regular advertisements of Dettol Liquid Handwash.

    Also there would be separate display racks at grocery stores and at supermarkets. In the rural market, the product variant will be launched as a necessary household item with the campaign ‘ghar ka doctor’. Initially the company will undertake seminars at the hospitals regarding hygienic living and promote the product via the doctors by giving them incentives. Moreover, keeping in mind the low literacy level in urban India, it is important for companies to help consumers associate their products visually.

    Emotional surplus identity (ESI) is a concept in which packaging of a brand is made distinctive to the eye of the customer by applying a particular shape, color, and content. A brand’s value could be communicated in a better way through attractive packaging that has a ready appeal to the human eye. It’s not all about low pricing product customization plays a pivotal role Visual communication is important given the high illiteracy rate. Also, for rural marketing we can’t depend on TV or print media, as most of the people are illiterate and they dont have TV sets. so, we have to use different strategies. . e. their local festivals, local folks, their songs (we have to make jingles from their local songs), puppetry etc. Moreover we can use haats and melas as advertising. Because: 1. over 25000 melas and 47000 haats are held annually 2. annual sales at melas amounts rs 3500 crores 3. few melas like mela of puskar and kumbh mela  and etc. draw visitors from all over india 4. generally melas are organised after harvest season so the villager has enough money to spend. Following table shows list of different folks and local dramas (state wise) which we can use as marketing strategy. Name of State |Folks theatre songs/ forms in india | |Andhra Pradesh |Veethi natakam,kuchi pudi,buratatha | |Assam |Ankiya nat, kirtania natak, jat-jatni,bidpada,ramkhelia | |Gujarat |Bhavai | |Haryana |Swang, naqqal | |Himachal Pradesh |Kariyala,bhagat,ras,jhanki,harnatra haran or harin | |J&K |Sanata,doddata-bayalata | |Kerala |Kodiyyatam,therayattam | |MP |Maanch,nacha | |Orissa |Pala jatra,daskathia,mangal ras,sowing |Punjab |Nautanki,naqqal,swang | |Rajasthan |Nautanki,khyal. ras dhari,rammat | |Tamil Nadu |Therukutlu,veethi natakam,bhagvat mela natkam | |UP |Raam leela, ras leela,nautanki,bhagat | |Maharashtra |Tamasha,lalit bharud, gondha,dashavatar | APPENDIX [pic] [pic] [pic]

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