Marketing Strategy of Reckitt Benckiser analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Reckitt Benckiser marketing mix, help the brand succeed in the market. Let us start the Reckitt Benckiser Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Each of these brands has many variants and pack sizes. The organization combines the latest knowledge in science with consumer requirements and builds relevant products. In future, company plans to enter food and pharmaceutical sectors. Reckitt Benckiser has collaborated with different partners to address some of the problems and have come up with innovative solutions. Reckitt Benckiser have global R&D facility for product innovation.
The products comply with the relevant regulatory bodies and their safety is established by through clinical and scientific evidence. They also have developed innovative packaging, devices and manufacturing processes as a part of its marketing mix product strategy. Also, the strategy is to tap the products which are relatively new and hence have new entrant advantage with skimming pricing advantage. Also, they invest disproportionately among different power brands.
Image: company website
Reckitt Benckiser Price/Pricing Strategy:
Below is the pricing strategy in Reckitt Benckiser marketing strategy:
The pricing of the product is of utmost importance for proper functioning and RB periodically evaluates it. Reckitt Benckiser has adopted the value based pricing as a part of its marketing mix and are kept at optimal level and at the consumer's perception level.
Though the prices are affordable, they are a bit on the higher side which the consumer associates with better quality due to trust built by the brand. The listing of Reckitt Benckiser is on London stock exchange and it is constituent of FTSE 100 index. Company has adopted the strategy of having focused product portfolio. It concentrates on 19 brands which generate more than 70% of revenue. The company focuses on rapidly growing consumer sectors that are yet to be explored, thus having superior margin potential and consistent return on investment to their investors. Another strategy for revenue generation is shifting focus on developing economies with emerging consumer potential. RB believes in conversion of profit to cash for which they have net working capital objective incorporated in the annual bonus targets of all the operational management teams.
Following is the distribution strategy in the Reckitt Benckiser marketing mix:
The company founder Johann Benckiser established the company in Pforzheim, Germany in 1823. The first overseas business was opened in Australia in 1886. Reckitt Benckiser is a global organization operational in nearly 60 countries and sales in 200 countries spread over 6 continents. Over 40000 employees are working for RB in these locations. In India, corporate operations of RB are located in Gurgaon, Haryana. The company has always focused on its core brands with emphasis on supply chain and distribution. For continuous innovation Reckitt Benckiser has R&D facilities located in 35 countries. Major facilities and based in India, Germany, Italy, China, Thailand and USA. This global network of experts works together for formulation of new products. They have planned to start newest Center for Scientific Excellence in Hull, United Kingdom in 2018. It is largest single investment for company with £105 millions.
The centre has sustainable building harboring health department compliant to Good Manufacturing Practices for formulation and testing of products.
The promotional and advertising strategy in the Reckitt Benckiser marketing strategy is as follows:
The organization has adopted the strategy of 'innovative Marketing’. As the products are mainly in FMCG sector, it has used all the promotional media available (print, broadcast, billboards and hoardings, digital). It has also implemented consistent and innovative packaging which consumers recognize and associate. Reckitt Benckiser has put big emphasis on advertising. In UK it is among top ten advertisers with first in television ads. It has also invested in digital world like an i-phone application for Nurofen in UK, 2010. The company has allocated budget for Marketing activities along with continuous products innovation considering consumer needs. This proved to be profitable for the company which can be seen in revenue boost in 2007 due to 'rapid succession of well practiced new product variants,’ which correctly seized consumer imagination. It has organized a scientific challenge for the University students in UK to solve future consumer health problems. The winner of the contest will get £5000 and paid summer internship at their latest facility. This completes the marketing mix of Reckitt Benckiser.
About Reckitt Benckiser:
Reckitt Benckiser (RB) group PLC is a multinational group of British origin. The Company was formed in 1999 by merger between Reckitt & Colman PLC in UK and Benckiser NV from Ireland.
It believes in 'Purpose with Passion' and has been active in improving the consumer health products since its beginning. They bring together passionate people and defines clear goals for them to act fast and responsibly.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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