The article is about how one of the biggest FMCG companies in the country is yet to explore a product category

which has lot of growth potential and the probable reasons for the same. It is more of a personal hypothesis and does not reflect the companys future plans in any way. The company I am talking about is Procter and Gamble.

Why

Handwash?

After the swine flu (H1N1) reached epidemic proportions last year, a large part of the world stood up and took notice of the hand wash products. Hand washes and Hand swipes finally were being taken seriously. In US for example, the sales of hand sanitizers went up rapidly. In India, hand sanitizers were introduced for the first time. And of course, for the consumers, it was a convenient and healthy proposition as it was more effective and it was much more convenient than using a soap or a handwash (if at all people find that cumbersome). Let us consider the options PnG has among the already established brands. In personal hygiene and healthcare, there are some product categories which PnG is already into with two very popular brands Vicks an OTC drugs for cold and cough brand and Whisper a feminine health brand. These are very specific categories and personally I feel there is still lot of scope in personal hygiene. If oral health could be considered a part of personal hygiene, PnG is not doing too badly in India. It had acquired Oral-B brand earlier itself and is most probably going to enter the toothpaste category under Oral-B. But strangely enough, CREST in spite of being a popular brand the world over was never introduced in India. I am sure it could have given tough competition to the Colgates and the Pepsodents here in India. Mothers everywhere would like products which would not only help them ensure complete protection from germs for kids, but also convenience so as the whole process of washing hands is made a bit more interesting. Liquid handwash does this job to a large extent as children would find some amount of novelty factor in the hand wash dispense as against the regular soap. Reckitt Benckisers DETTOL and HULs LIFEBUOY have the largest market share in this category. How were these brands successful? Dettol since a long time stands for 100% safety and category extension into soaps and handwashes from antiseptic lotion was natural choice to them. Same with Lifebuoy. Lifebuoy with its unique carbolic acid odor

has been in the publics mind as health soap. It has been one of HULs oldest brands.

But personally I feel, HUL has such a large portfolio of products that had there been no lifebuoy they coud have easily entered the handwash category with the help of other brands. For example, lets us take VASELINE. Vaseline, a petroleum jelly product was always associated with skin care and winter. So when the time came, they extended brand VASELINE to include skin care as well. It was not that skincare was not already an area HUL was looking into. With products like Dove, Lux, Ponds and Fair and Lovely, they were already hugely into the skin care segment. What I intend to say is Vaseline though now intuitively seems to be a skin care product it could have been easily extended to something like handwash. Coming back to PnG, one fact we all will agree to is that PnG has been selling more of premium products and has not been into the middle class market as much as HUL. Hugo Boss, Escada , Lacoste are few such examples. But in India, PnG has been selling goods for middle income markets and by far MACH 3 would be the most premium brand PnG is into. But if at all it wanted to get into the health and hygiene products like handwash, is it possible? One of the easiest and most natural choices would have been to a soap brand (preferably with anti germ properties) which could have been easily used for brand extension. But in its absence, the next obvious choice would be the personal hygiene products which you already have in your portfolio. Definitely VICKS and WHISPER would not help PnG in this regard. Would a brand like CREST or ORAL-B have helped build a personal hygiene brand even this is debatable. Acquiring some already established brand is another option. Thus to conclude, I would say that for any FMCG company, it would always help to create brands keeping in mind the bigger picture so as to have more options for brand extension at a later point of time.

References ___________ http://www.dnaindia.com/money/report_p-and-g-near-toothpaste-entry-starts-production-trials-oforal-b_1437585 http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/Sanitizer-coscashing-in-on-swine-flu-scare/articleshow/5371846.cms

ARTICLES ON DETTOL AND LIFEBUOY HUL seen regaining market share in key business Hindustan Unilever Ltd (HUL), the countrys largest maker of home and personal care products, has started to see market share improvement in its key business of soaps and detergents, analysts tracking the company said. The maker of Lux, Lifebuoy and Dove soaps and Wheel, Rin, and Surf Excel detergents, has been able to reverse the trend of falling market shares as its brands gained traction at store shelves, in the last two quarters. While the company lost significant market share in soaps and detergents in the last few years due to intense competitive environment, it seems to have improved market shares across the two categories by 140-160 basis points each. HUL gets 44% revenue from soaps and detergents. In FY11, the company relaunched its soap brand Lux, and detergent brands, Rin, Surf Excel and Wheel. In detergents, majority of the improvement has been aided by its recovery in share in its mid-priced brand, Rin. Additionally, its premium detergent brand, Surf, is witnessing outperformance during the past six months and contributing to the improvement in shares. In soaps, Lux is witnessing better traction and recovery in its market share while Lifebuoy has maintained its market position, analysts Abhijeet Kundu and Hardik Shah of Antique Stock Broking Ltd wrote in a note to clients this week. HULs approximate market share in toilet soaps is 46% and about 36% in detergents. An email sent to the company did not draw any response, so current or improved market share figures are not known. According to analysts, the company had lost around 590 basis points (bps) of market share in the soap category, between December 2007 and March 2009, as consumers downtraded to competitors brands such as Santoor, Godrej No.1, Dettol and Cinthol. The recent correction in palm oil prices approximately 20% which is a key raw material in toilet soaps will help the company recover margin. Analysts said the company will have better pricing power in the key business while volume growth in these categories too are estimated to be in double digits. After discounting prices on toilet soaps and detergents to grow volumes, the company in FY11, took a corrective pricing action in both categories, as input costs rose. HULs aggressive ad-spend, promotions and price cuts are resulting in volume gain at the cost of profit. With rise in competition, HUL will have to further trade off margins for volumes in FY12 and FY13, a report by broking firm Anand Rathi this week said.

HUL promotes Lifebuoy and Domex as retailers boycott Dettol, Harpic Posted On: 28-02-2011 00:00:00 11

Soon after a number of big retailers stopped fresh orders from Reckitt Benckiser due to differences over margins, rival Hindustan Unilever (HUL) is reported to be launching a special marketing drive in modern retail outlets. HUL products company plans to flood modern retail shelves with its brands Lifebuoy and Domex that take on Reckitt Benckisers top brands Dettol antiseptic and Harpic toilet cleaners, and support it with brand promotions and price-offs. Hindustan Unilever will roll out a 15 day burst campaign from March 1 to create special counters for its brands and increase staff count to execute the heightened marketing activity. Almost two weeks ago, Reckitt had cut margins of big retailers to 14% from 16% on some of its products to partly offset rising input costs. The move resulted in leading retailers holding back all orders of Reckitt's brands. Reckitt Benckiser is trying to resolve the dispute over margins and it has had meetings with the senior management of a few retail companies recently to re-negotiate margins. Reckitts move to reduce retailers margin was part of their effort to contain price rise even as input costs have gone up tremendously. The company had also cut general trade margins, from 12% to 10% for brands such as Harpic and Cherry shoe polish, and distributors margins to 5% from 7.5% for Dettol antiseptic lotion. While smaller kirana stores, which contribute over 90% of Reckitts total sales, accepted the margin cut, most modern retailers had stopped issuing fresh orders for Reckitts products. Reckitt's biggest brand Dettol is the leader in antiseptic lotion space and also controls more than 9% share in the Rs 6,500-crore soap market. HULs Lifebuoy is the second largest soap brand in the country with 14.5% market share. Reckitt has almost a monopoly in the floor cleaner segment where its Harpic commands more than 73.5% share

Bigger Lifebuoy looks at larger market pie

When Unilever launches a Lifebuoy soap that claims bigger or equivalent relevance as any blockbuster drug in the pharma space, it is a pointer to the consumer goods giant's focus on science and innovation. This was evident when the company rolled out clini-care10, an extension of India's largestselling soap Lifebuoy, that it says has 10-times better germ protection and lasts longer. The company claims the soap is designed to act faster, catering to consumers who spend only few seconds for a hand wash. "It will have an impact on infectious diseases," Genevieve Berger, the company's chief research & development officer said, referring to the high incidence of diarrhoea and respiratory illnesses. Berger, a double PHD and former director of France's largest fundamental research organisation CNRS (Centre National de la Recherche Scientifique), was roped in by Unilever's chief executive Paul Polman in 2007. "It is something that is disruptive but also delivered via a product that is widely used by the consumer which makes it a breakthrough...It (soap) has the ability to reach a large part of the population, which will have an impact that is bigger or equivalent to any blockbuster in the pharma space," she added. Berger drives the company's research initiatives which attracted spends of around 1 billion euro across its six global centres in 2011. The Bangalore centre was responsible for developing the in-home water purifier Pureit - which has been launched across Brazil, Bangladesh, Indonesia, Mexico and parts of Africa - and Lifebuoy clini-care10 more recently. With the soap variant, Unilever is targeting higher-margin products. "It is part of our premiumisation strategy," Berger admitted, adding the company is convinced this price would not limit the reach of the mass product. Lifebuoy clini-care10 is priced over twice that of the regular Lifebuoy, at 27 for 75 g and 45 for 125 g. She says the company is also investigating how to reach out to more people by further developing the cost consideration. Among other things, Unilever has launched beauty pills to reduce wrinkles at its Dove and Ponds spa institutes. "We are introducing the best practices of the pharma business," Berger says, as the company adapts to regulatory demands and has clinical trials capability to prove the effect of products such as anti-dandruff shampoos and skin-lightening creams. It has also developed a new business unit to broaden its categories which will help it to differentiate. Unilever has also launched a portal to partner with small-medium enterprises and institutes for greater innovation. "Even if we have a strong R&D organisation with 6,000 people, we cannot do everything. We have to access the science and research that is there in the rest of the world," Berger said.

Dettol gains ground, Lux slips Reckitt Benckiser's germ-protection soap Dettol gained maximum value market share among soap brands in the last 12 months ended June, while Hindustan Unilever saw its topranked brands Lifebuoy and Lux lose footing, as per data by market researcher AC Nielsen. Dettol's share increased from 6.6% in June '08 to 7.7% in June '09, placing it ahead of Wipro's beauty soap Santoor as the country's third-largest soap brand by value. But Santoor retained the No 3 ranking on a cumulative basis during the last 12 months, with Dettol following close behind. The Rs 7,500 crore soaps market posted 11.8% growth in the 12-month period. Soaps is estimated to the second largest FMCG category after detergents in the non-foods segment. Analysts attribute multiple reasons for Dettol's growth consistent positioning on the germprotection platform, stable pricing and smaller packs. "Dettol soap has grown share to 7.7% last month this is a rare feat in a mature category like soaps where penetration is close to 100%," Reckitt Benckiser CMD Chander Mohan Sethi said. The brand is available in four variants and was extended two years ago to a smaller 35-gm pack at Rs 7. The company expects to cross the Rs 1,000-crore mark for Dettol by year-end. Despite some of Bollywood's biggest stars including Priyanka Chopra and Aishwarya Rai promoting it, Hindustan Unilever's beauty soap Lux saw the biggest dip of 2.1% in value market share in the 12-month period ended June. Its share stood at 15.5% at the end of last month. Similarly, HUL's germ-protection brand Lifebouy's share dropped from 17.9% to 16.6% during the last one year. Both Lifebuoy and Lux, however, retained the top two rankings among soaps. HUL has been seeing market share slip across categories, which analysts say is because of focus on premium products, frequent changes in pricing and lack of innovation. The firm's value-for-money soap brand Breeze also saw its share dip in the 12month period. Its premium brand Dove was the only exception, gaining value market share of 0.4% in the past 12 months. ITC's Vivel, a relatively new entrant, clocked the second-highest percentage share gain of 0.8% for the 12-month period after Dettol, though on a smaller base. Wipro's Santoor and Godrej's price-warrior brand Godrej No 1 also gained share. "Brands that did not alter grammage of products or maintained pricing did well. Value packs at price points of Rs 5 and Rs 10 saw good offtake," Godrej Consumer Products executive director and president Hoshidar Press said. Chennai-based Cholayil's Medimix lost share of 1.7% over the last 12 months. The two brands have been at war with each other over the property of germ protection..

Reckitt Benckisers Dettol brand appears to be the target of arch-rival Hindustan Unilever (HUL)s Lifebuoy for the second time in a row, with a new commercial saying the latter is far more effective than the former. In the line of fire is Dettols antiseptic liquid, whose heritage in India goes back almost 80 years. Dettol is the leader in the antiseptic liquids market in India with a share of 86 per cent, followed by Savlon from Johnson & Johnson at 8.1 per cent. This market, according to industry experts, is pegged at Rs 150-200 crore. The new commercial for Lifebuoy Total shows a rather unwell child at the doctors clinic. The doctor says the cause for the childs condition is germs and proceeds to ask the parent of the child what soap he uses during his bath. The parent says she puts antiseptic liquid in his water so that he can be free of germs. The doctor reprimands her, saying the antiseptic liquid is effective in killing germs in the bucket, but not on the childs body. Germ protection can be best achieved with a Lifebuoy Total soap, he proceeds to say. While there is no direct reference to Dettol in the commercial, advertising industry sources say the dig at the latter hardly goes unnoticed, given the equity it enjoys in the antiseptic market. The Dettol brand has been built on the germ-kill platform, which began from its antiseptic liquid," says a senior marketing executive with a soaps major. He declined to be named due to the sensitivity of the matter. Lifebuoy has been looking to appropriate the germ-kill space occupied by Dettol. The latest is an attempt in that direction," he says. An HUL spokesperson said, A study has shown that many consumers bathe with only antiseptic liquid diluted in water. The Lifebuoy Total television commercial currently on air is issued in public interest and seeks to inform consumers that bathing with soap and water removes more germs than bathing merely with antiseptic liquid diluted in water. The claim is substantiated by tests carried out in an independent laboratory. The television commercial does not refer to any product of any competitor." Officials at Reckitt, however, say HUL has been targeting Dettol for some time now. A month ago, Reckitt had complained to the Advertising Standards Council of India (ASCI), saying the voice-over in a commercial for Lifebuoy Clini Care 10 soap had claimed the product provided 10 times better germ protection than others around. This was misleading, the company had claimed. ASCIs fast-track consumer complaints council had ruled in favour of Reckitt, asking HUL to modify the commercial. HUL subsequently followed the instruction. Reckitts spokesperson did not indicate whether the company would knock on ASCIs doors again seeking a modification to the new advertisement. But experts say it would be inevitable, if the company sought to minimise the damage caused by the current commercial.

Lifebuoy enjoys a 14 per cent share to Dettols 8.2 per cent in the health segment of the Rs 10,000-crore soaps market. This segment is pegged at Rs 3,000 crore. The other big segment in soaps is beauty, pegged at Rs 5,000 crore. Driven by brands such as Dettol, whose rate of growth is 20-25 per cent per annum, the health segment, say market experts, is growing faster than the beauty. Dettol has successfully managed to extend the germ-kill proposition from the core antiseptic liquids to soaps, hand wash and hand sanitisers. It has also priced itself at a premium to Lifebuoy in an attempt to retain its upscale identity. A 70-gram bar of Dettol soap, for instance, costs Rs 20, while a 60-gram bar of Lifebuoy soap costs Rs 10. Lifebuoy takes a dig at Dettol again The two brands have been at war with each other over the property of germ protection.. Reckitt Benckisers Dettol brand appears to be the target of arch-rival Hindustan Unilever (HUL)s Lifebuoy for the second time in a row, with a new commercial saying the latter is far more effective than the former. In the line of fire is Dettols antiseptic liquid, whose heritage in India goes back almost 80 years. Dettol is the leader in the antiseptic liquids market in India with a share of 86 per cent, followed by Savlon from Johnson & Johnson at 8.1 per cent. This market, according to industry experts, is pegged at Rs 150-200 crore. The new commercial for Lifebuoy Total shows a rather unwell child at the doctors clinic. The doctor says the cause for the childs condition is germs and proceeds to ask the parent of the child what soap he uses during his bath. The parent says she puts antiseptic liquid in his water so that he can be free of germs. The doctor reprimands her, saying the antiseptic liquid is effective in killing germs in the bucket, but not on the childs body. Germ protection can be best achieved with a Lifebuoy Total soap, he proceeds to say. While there is no direct reference to Dettol in the commercial, advertising industry sources say the dig at the latter hardly goes unnoticed, given the equity it enjoys in the antiseptic market. The Dettol brand has been built on the germ-kill platform, which began from its antiseptic liquid, says a senior marketing executive with a soaps major. He declined to be named due to the sensitivity of the matter. Lifebuoy has been looking to appropriate the germ-kill space occupied by Dettol. The latest is an attempt in that direction, he says. An HUL spokesperson said, A study has shown that many consumers bathe with only antiseptic liquid diluted in water. The Lifebuoy Total television commercial currently on air is issued in public interest and seeks to inform consumers that bathing with soap and water removes more germs than bathing merely with antiseptic liquid diluted in water. The claim is substantiated by tests carried out in an independent laboratory. The television commercial does not refer to any product of any competitor. Officials at Reckitt, however, say HUL has been targeting Dettol for some time now.

A month ago, Reckitt had complained to the Advertising Standards Council of India (ASCI), saying the voice-over in a commercial for Lifebuoy Clini Care 10 soap had claimed the product provided 10 times better germ protection than others around. This was misleading, the company had claimed. ASCIs fast-track consumer complaints council had ruled in favour of Reckitt, asking HUL to modify the commercial. HUL subsequently followed the instruction. Reckitts spokesperson did not indicate whether the company would knock on ASCIs doors again seeking a modification to the new advertisement. But experts say it would be inevitable, if the company sought to minimise the damage caused by the current commercial. Lifebuoy enjoys a 14 per cent share to Dettols 8.2 per cent in the health segment of the Rs 10,000-crore soaps market. This segment is pegged at Rs 3,000 crore. The other big segment in soaps is beauty, pegged at Rs 5,000 crore. Driven by brands such as Dettol, whose rate of growth is 20-25 per cent per annum, the health segment, say market experts, is growing faster than the beauty. Dettol has successfully managed to extend the germ-kill proposition from the core antiseptic liquids to soaps, hand wash and hand sanitisers. It has also priced itself at a premium to Lifebuoy in an attempt to retain its upscale identity. A 70-gram bar of Dettol soap, for instance, costs Rs 20, while a 60-gram bar of Lifebuoy soap costs Rs 10. http://www.business-standard.com/india/news/lifebuoy-takesdig-at-dettol-again/477281/

Dettol finds wealth in health Soaps have been the biggest growth driver for the 76-year old brand When Chander Mohan Sethi announced last Friday that Dettol, the 76-year old iconic brand from Reckitt Benckiser, is well on its way to achieving a turnover of Rs 1,000 crore much before the year-end, no one was surprised. For, the brand has been clocking a double-digit growth even at a time when most others, including market leader Hindustan Unilever, have been losing market share. The brands revenues were pegged at Rs 900 crore in July 2009, according to A C Nielsen data. So the Rs 1,000 crore milestone will be achieved anytime now, says Sethi, Reckitts chairman and managing director (India) and regional director (South Asia).

Dettol has been able to command a premium because of the consumers preference for a brand that has never deviated from its health platform, says Arvind Singhal, chairman, Technopak Advisors. Others agree and attribute multiple reasons for Dettols growth consistent positioning, stable pricing, careful brand extensions and smaller packs. It is amazing to see how brand Dettol has been built over the last so many years with a message that is relevant even today. They have almost become a generic category in health, says Singhal. The packaging of all its products is distinct in their own way. The green and white colours and the sword have become symbols for fighting germs and infections, reinforcing the brands positioning as a bodyguard which protects people from the unhygienic world outside. Dettol has successfully extended germ protection -- the USP of its flagship product, the antiseptic liquid -- to soaps, hand washes and shaving cream, too. It has been able to guard the brand message and not let the brand occupy any other position in the consumer's mind, points out Singhal. Other brands, he feels, have tried to jump on to the bandwagon of health, but have had shorter lives because of the lack of such a focus. Soaps, launched in 1981, have been the biggest growth driver accounting for around 75 per cent of the total revenue. Soaps have seen a growth of 100-basis points in less than a year (from a market share of 6.5 per cent, it has inched up to 7.7 per cent) in a Rs 7,500 crore market that is growing 8 to 9 per cent in value and 2 to 3 per cent in volumes. It also helped that the two market leaders from HUL's stables Lifebuoy and Lux have been steadily losing market share over the last year, according to AC Nielsen's April-May, 2009 report. Up next could be herbal soaps from Dettol, which it is testing in Tamil Nadu. Its range of body washes, which is presently retailed through modern trade and large format stores, could also undergo a rejig and launched on a larger scale. The health platform has worked in other brand extensions as well. For example, liquid hand wash. Despite retailing at a higher price than competitors such as Fem and Lifebuoy, Dettol has maintained a lead in this segment with a 60 per cent market share in the Rs 100 crore market. In shaving cream, it has 30 per cent share in a Rs 200 crore market. Meanwhile, its original product, Dettol liquid antiseptics, is logging 20 per cent growth in a Rs 150-crore market. The brand is the leader (85 per cent share) with its nearest competitor, Johnson & Johnson's Savlon, not being able to make much headway. Not all brands balancing on the healthy plank have managed to get such success. Lifebuoy, also aligned with the hygiene and germ relief promise, trails behind Dettol in the liquid hand wash category. Unlike many brands, which at some point in their life cycles, have become less contemporary, Dettol has remained fresh through packaging changes communication, points out Singhal. and

According to TAM data, Dettols brand communication had 60 per cent share of voice (percentage of Gross Rating Points generated by the category) over the last seven months, 100 per cent in liquid antiseptics and 13-14 per cent in soaps. Its communication has been carefully different for urban, semi-urban and rural. Sethi wants to do more and is planning to increase advertising spends by 30 per cent. The biggest challenge has been low consumer awareness on hygiene, prompting Dettol to take the education route. So one-fifth of the ad spends go into non-mass media in smaller towns like wall-painting, dealer boards and vans with products and awareness literature. Dettol's communication has involved taking the message of preventing diseases through maintaining hygiene to the grassroots. It visits schools, hospitals, housing societies and takes the help of doctors to tell audiences the basics of hygiene. The brand is also endorsed by the Indian Medical Association. We have reached over a million new mothers through our Surakshit Parivar programme, says Sethi. The programme educated them about hygiene issues and handed them kits with Dettol products. Besides the rural programmes, smaller pack sizes have also seen distribution shoot up by 25 per cent and volume sales by 35 per cent in markets such as Bihar, Orissa and Madhya Pradesh, says Sethi. Reckitt: Working up a lather with Dettol Urban Indias appetite for Dettol has helped Reckitt jockey into third position in soaps, behind Levers and Godrej, but competitors wont let it rest on its laurels. Changing habits can never be easy. But Reckitt Benckiser India appears to have done just that with its germ-fighter Dettol. Four years ago, the market share of the flagship soap brand from the British consumer goods maker was just about four per cent. It is now close to nine. It was once number eight in the pecking order of soaps, but has clawed its way to number three. In the process, Reckitt, which derives close to half its Rs 2,000-crore turnover from Dettol alone, has successfully tapped into the growing health consciousness of Indians, pitching its product as an able fighter and protector against germs. I think the fact that we have never compromised on quality has worked, says Chander Mohan Sethi, Chairman & Managing Director, Reckitt Benckiser India.

DETTOLS WINNING WAYS In four years, market share of Reckitt's flagship soap brand has increased from four per cent to nine per cent Dettol was once in the eighth position in soaps, but has clawed its way to third

The firm derives close to half its '2,000-crore turnover from Dettol Urban areas have contributed to Dettols success, but Reckitt is training its sights on rural India for growth This means selling smaller packs and lower price points-like its 35-gram soap priced at '7 Reckitts Health segment is growing rapidly, next only to Beauty and occupies 25 per cent of the overall soaps market HUL and GCPL are first and second in soaps with a share of about 45 per cent and 10.1per cent The next three are neck and neck with only a percentage point separating GCPL, Reckitt and Wipro Reckitt faces renewed competition from Cinthol and Chandrika soaps which have made inroads into the health space Most Indians have known Dettol primarily through the antiseptic liquid which was launched in the 1930s. This product is used for a wide variety of reasons from cleaning floors to disinfecting wounds. Dettol soap, in contrast, has been a more recent addition by the company, launched in the 1990s. It now has a number of extensions too from liquid handwash to bodywash, hand sanitisers, plasters and shaving creams. But, its early adoption by people in urban areas is what has helped it gain share, say market experts. Reckitt in the last few years has also attempted to take Dettol into rural areas with smaller packs and lower price points to entice consumers there. For instance, the firm has a small 35-gram soap priced at Rs 7 in rural areas. In urban areas, an average Dettol costs nothing less than Rs 19 for a 70-gram and Rs 31 for a 120-gram. Sethi says the challenge for Reckitt now lies in winning consumers over in rural areas who dont necessarily bathe using a Dettol soap or even use an antiseptic liquid to clean their surroundings. The concept of cleanliness and hygiene is something we are pushing in these areas, he says. Consumer awareness programmes highlighting the need to fight germs is part of Reckitts strategy to increase penetration in rural areas. At the same time the firm is also expanding its distribution network in rural areas. Its soaps reach, for instance, has increased from 1.8 million outlets to 2.3 million outlets in the last few years, thanks to its endeavour to reach rural areas. The increase has given us direct access to 600 towns more than we had earlier, says Sethi. Reckitt reached 2,600 towns prior to this.

But its direct coverage pales in comparison to Hindustan Unilevers (HUL) and Godrej Consumer Products (GCPL) roughly 5,500 and 4,000 towns respectively. HUL and GCPL are the number one and two players in soaps with a share of about 45 per cent and 10.1 per cent respectively. FMCG experts say that increasing direct coverage is important for companies who are keen to push their products directly to retailers. This way firms are able to get a better grip on distribution. The greater the direct coverage, the more retailers you are able to reach, says Dalip Sehgal, managing partner, DS Consulting, who was formerly at the helm of GCPL. He has also worked with HUL in the past. Most firms have been working on boosting their direct coverage in an attempt to increase the footprint of their products aggressively. For the $12-billion Reckitt, these initiatives are critical as it turns to markets such as India in search of growth. For the full year 2010, revenue growth of the Slough (UK)-headquartered company was six per cent mainly because of stagnant markets in the west. Emerging markets, however, grew 18 per cent during the year, while North America and Australia grew three per cent only and Europe saw no growth at all. Reckitt hopes to drive growth in emerging markets through segments such as healthcare, where it has been investing heavily in the last few years. Reckitts current chief executive Rakesh Kapoor, who took over on September 1, helped the firm snap up buys such as Boots Healthcare in 2006 and SSL International and Paras Pharmaceuticals in 2010, which gave the firm access to brands such as Strepsils and Clearasil (from Boots), Dr Scholls and Durex condoms (from SSL) and DCold, Dermicool, Livon and Setwet (from Paras). What makes India exciting for Reckitt is that the Health segment is growing rapidly, standing second only to Beauty, which is the largest one with 50 per cent of the overall category. The Health segment occupies 25 per cent of the overall soaps market, having grown from about 18-20 per cent about three years ago. Beauty was about 55 per cent of the market then. But rivals argue that there is still a strong proposition for Beauty with Indian consumers who seek that quality in most products. Every brand has a strong functionality, says Tarun Arora, executive vice-president, marketing, GCPL. Whilst Health has been growing, Beauty is still a large segment, he says. This point is endorsed by Wipro Consumer Care & Lighting president Vineet Agrawal. Wipro is the number fourth soaps player with a share of 8.2 per cent. Both Wipro and GCPL have strong beauty brands in their portfolio, with Santoor and Godrej number one respectively. HUL, on the other hand, has both beauty and health with Lux and Lifebuoy, also the number one and two soap brands in the country.

With only a percentage point separating GCPL, Reckitt and Wipro from each other, experts say that it is easy for one company to swap positions with the other. The threat, in particular, to GCPL from Reckitt remains strong. Arora of GCPL says, I am not taking competition lightly. There are ways and means of addressing the health benefit. For instance, he points out that Cinthol has been increasingly addressing the issue of skin protection rather than freshness and deodarancy alone. Wipros Chandrika soap has also made inroads into the health space with its focus on treating skin problems. But with both players lacking a strong brand with a germicide property, this leaves Reckitt within striking distance of number two. HUL arrests market-share loss by relaunching brands FMCG major HUL, which has been losing market share to rivals like Godrej, Wipro and ITC in the soap segment, has managed to arrest the slide after relaunching various brands under its belt. This year HUL embarked on a major brand relaunch exercise, under which its soaps like Lifebuoy, Liril, Hamam, Rexona, Breeze and Lux were given new packaging and fragrance. After a long period, this is the first time that HUL has revamped its entire portfolio. The strategy is reaping benefits. It has helped arrest our declining market share," an official from HUL said. When contacted, an HUL spokesperson citing October data by research firm AC Neilsen, said the company's share in the soap market stood at 44.7 per cent. This is an improvement from 44.5 per cent during August to September period. According to market analysts, the Indian soap market is worth Rs 8,000 crore. Last year HUL had 50 per cent share in the segment but rival brands like Godrej No.1 from the Godrej Group, Wipro's Santoor and ITC's Vivel have eaten into its pie this year. While Godrej's share stands at 10.9 per cent, Santoor and Vivel hold 8 per cent and 1.5 per cent, respectively. "HUL's strategy to relaunch all the brands targeting the masses, especially in the personal care segment has shown some positive result and is likely to do better," Religare Capital Markets Research Analyst Gaurang Kakkar said. Lifebuoy Vs Dettol Mumbai, June 14 (TruthDive) : Dettol and Lifebuoy are engaged in an advt war as to who is a more effective germ killer. Dettol which is 80 years old and started with its antiseptic liquid and moved on to soap with the same feature is a market leader in the liquid segment cornering 80% of the Rs 200 crore followed by Savlon from Johnson and Johnson.

Lifebuoy is a clear leader in the health segment with 14 % share compared to Dettols 8 % but it is peeved that most Indians in a study showed that instead of anti-germ soap, they are using antispetic liquid mixed in water for bath. A commercial on air shows a doctor asking the parent of a child gone unwell due to germ infection and asks which soap he uses to bathe the child.The parent replies that he uses an antiseptic liquid in the water to which the doctor says that the liquid will only kill the germs in the bucket and not the ones in the body. He advises to use Lifebuoy soap. This has kicked off a storm with Reckitt, manufacturers of Dettol and has hit at them. Hindustan Union Lever (HUL) who makes Lifebuoy says that it was issued in public interest based on a study by a lab and not named anybody. It is not the first time that Reckitt cries foul. In an earlier commercial, Lifebuoy claimed that its new brand Lifubuoy was 10 times more effective in killing germs than any other brand. Reckitt went to Advertising Council who ruled that Lifebuoy should withdraw the commercial. It is not known whether Reckitt would this time go to the council but Lifebuoy is confident that it is based on lab reports. Of the health segment of the Rs 10,000-crore soaps market, Lifebuoy has Rs 3000 crore share and the other growing segment is beauty segment which is Rs 5000 crore. Now the health segment is growing faster than beauty segment with Dettol growing at 25% each year. It has also been priced higher to be in the premium bracket for its products like hand wash and hand sanitizer. Dettol's 'Health 100% Marks 100%' ad misleading: Regulator Taking cognisance of a complaint filed by MP Tarun Vijay, the Advertising Standards Council of India (Asci) has asked British consumer goods maker Reckitt Benckiser to rectify its advertisement for Dettol soap. The ad, which was published in leading dailies in February, spoke of how Dettol, if used everyday for bathing, could help keep a child healthy during exams. Author-journalist Vijay said the tone and tenor of the message disturbed him, since it exerted pressure on students to get cent per cent marks. The day I saw the ad, I immediately complained to the Asci, he says. While Asci Secretary-General Allen Colaco says the complaint was upheld in March for misleading readers into believing that the use of Dettol would lead to 100% health, 100% marks, a Reckitt spokesperson says the ad is not in circulation at the moment. The ad is not being run, the spokesperson said. This is not the first time when a complaint against an ad that has violated the Asci code has been upheld after it has run its course.

Two years ago, FMCG companies Hindustan Unilever and Procter & Gamble locked horns over the formers attempt at disparaging the latters Tide brand in a commercial for Rin. While P&G moved quickly by filing a complaint with Asci, the Rin commercial had run its course by then. HUL had taken advantage of the weekend during Republic Day (January 26) to air the ad repeatedly. By the time P&G hit back, HUL had finished communicating the message. The city-based Asci has, in recent months, introduced a fast-track service to address complaints quickly. But advertising industry executives say it is not enough. The reason: lack of a legal back-stop for violations in print, outdoor and other media. In the case of television commercials, the 1985-founded Ascis code of self-regulation has been made part of the Cable TV Networks (Regulation) Act, 1994, but that is not the case with other media. Persons in the know say advertisers take advantage of these loopholes to communicate their message http://www.scribd.com/doc/25858308/Business-to-Business-Sales-Forcast-of-DETTOL

Dettol: Managing Brand Extensions This case is prepared by Assistant Professor Anand Kumar Jaiswal of Indian Institute of Management, Ahmedabad, Arpita Srivastav, doctoral candidate at Management Development Institute Gurgaon, and Dhwani Kothari, MBA Class of 2003, XLRI Jamshedpur. It is prepared from the published sources and the information provided by ACNielsen ORG-MARG Private Limited ("ACNielsen"), as the basis for classroom discussion rather than to illustrate either effective or ineffective handling of an administrative situation. ACNielsen owns all rights in its information which is copyrighted in ACNielsen's name. Anand Kumar Jaiswal nd Kumar Jaiswal, Indian Institute of Management, Vastrapur, Ahmedabad 380015, India.

Arpita Srivastav

Dhwani Kothari

This case is about evolution of a parent brand and its subsequent extensions into different product categories. Dettol as a brand has immense trust and loyalty from the consumers. Since the 1930s when Dettol was introduced in India, it has occupied a distinct position in the mind of its consumers. To achieve fast growth and leverage the strong brand equity of

Dettol, Reckitt Benckiser India Limited (RBIL) rolled out a number of brand extensions. Some of these extensions such as Dettol soap and Dettol liquid hand wash became phenomenal successes, but most others failed to perform. The case deals with the questions of why some extensions achieve great success while others fail miserably.

Read More: http://www.worldscientific.com/doi/abs/10.1142/S0218927509001224

http://www.docstoc.com/docs/83587947/Brand-Analysis-of-Lifebuoy

About Lifebuoy: The desire to maintain one's personal hygiene and be spick and span are inherent in every human being. There are no bars to this ?? financial level, age. Lifebuoy products have long appreciated this aspect of human behaviour and filled in their need for cleanliness and sound health. For decades, Lifebuoy have been in the forefront of the movement to improve the cleanliness and personal hygiene of millions of people and now enjoy a leadership status in this segment of the market. To realise its objective and vision for clean, healthier communities, they created their brainchild and the most legendary brand, Lifebuoy to ably serve this need of the people. Ever since, it has been Lifebuoy??s endeavor to constantly evolve with innovation and serve the changing cleanliness and hygiene needs of the people and build a healthy community at large. Lifebuoy has been able to instill in people the need for a good personal hygiene with their team who have motivated people to revise their outlook and behaviour with regard to hygiene levels. Achievements: Leader in the soaps market with a Market share of 18.4% Sales turnover - 350 million euros worldwide and 200 million euros in India 140 million households as a consumer base Coining of the best slogan which equates to a health prayer for the nation Awards for the top ten most trusted brands Down memory lane, Lifebuoy India has one of the most impressive histories in the evolution of a nondescript red soap to that of a highly specialized range of products offering answers to health and hygiene requirements. It is actively involved in the total fulfilment of its dream and vision statements at every point. When you buy Lifebuoy products you own a bit of the

pioneers in education the general public on the benefits of hand-washing with soap to decrease diarrheal deaths and casualty. These Personal Care items maybe trivial but hold a place of importance in our lives. Now choose from a wide range of hand sanitizers, crepe bandages, Air Fresheners, antacids etc. and complete the void of daily life. Use the pepper sprays to be protected against animals or attackers. You can also use the nicotine free Herbal Cigarettes to quit smoking. attractive offers and discounts provided by Healthkart on all the items. Overall, have a gala time by choosing from these wide array of personal care products and enjoy the

About Dettol Launches Dettol "Sensitive"Handwash with GLYCERINE

Dettol, a leading brand in the Health and Personal Care category, has announced the launch of its new Dettol variant `Dettol Sensitive Handwash'. The new Dettol Sensitive Handwash comes in a soap free formulation and is enriched with glycerine, clinically proven to be mild on skin providing gentle protection for your hands. Its new style packaging makes the light blue liquid visible through a translucent bottle - making your bathroom look 'classy'. With its fresh new fragrance, Dettol Sensitive handwash delivers Dettol's trusted protection in a brand new way! It is priced at Rs.65 for 250 ml and Rs.175 for 1 litre bottle and is available nationally. Speaking on the occasion Ms. Anne Engerant, Marketing Director, Reckitt Benckiser said, "Hands have been identified as one of the key carriers of germs. Washing hands regularly is the single most important thing that one can do to protect oneself and family from illness causing germs. "She further added, "The new Dettol sensitive handwash not only effectively washes away germs but is gentle on your hands as it had glycerine, leaving skin soft and supple. What's more, its new international pack helps give your bathroom a premium look." Many soaps do not remove germs adequately and hands remain dirty. It has been clinically proven that one germ can multiply to more than four million in just eight hours. Dettol Liquid Handwash gives 10 times more protection from germs than ordinary soaps*. Also commenting on the launch, Mr. Chander Mohan Sethi, Chairman and Managing Director, Reckitt Benckiser India Ltd said, "For many years families have trusted Dettol products to protect them from

common infections. Dettol Liquid Handwash gives you protection from germs, in a convenient format, which is suitable for the entire family. This is why Dettol's share in Liquid Handwash is over 61% (ACNielsen Market Shares, Full Year 2005)" Dettol Liquid Handwash currently has two variants in the market - Dettol Original and Dettol Skincare Handwash

About Dettol and Reckitt Benckiser Dettol is a brand of Reckitt Benckiser and has stood for "trusted production"in India since the 1930's. The brand is endorsed by the Indian Medical Association (IMA) and has been voted among India 's Most Trusted Brand in recent years (2002 to 2005 ORG Marg Brand Equity Survey). Reckitt Benckiser (India) Limited, formerly known as Reckitt & Colman of India Limited, has many brands in India, namely - Dettol, Veet, Harpic, Mortein, Robin Blue, Cherry, Lizol, Colin, Disprin, Brasso, Mansion and others. It has major presence in home and personal care, surface care, fabric care, pest control and drugs. The company is present in 180 countries across the world and is No.1 in Household Cleaning Category. As seen across segments, Reckitt Benckiser brands are either number 1 or 2 in market share, in all the segments they are present in.

Will the new strategy of Dettol work? If smells bring back memories, chances are that a whiff of Dettol antiseptic liquid will remind most of us of scraped knees and shins, the taste of tears, hot bath water and, of course, the sting when the liquid touched the wound.

Launched in 1933 in India [ Images ], Dettol liquid continues to be a first-aid staple in most homes. It was voted as the third most-trusted brand in an AC Nielsen ORG Marg survey last year. Brand extensions such as Dettol liquid hand wash and Dettol soap have also managed to find a place in people's bathrooms. Reckitt Benckiser's flagship brand, Dettol makes for onethird of the company's Rs 1,000-crore (Rs 10 billion) turnover.

Dettol is the leader in the antiseptic market with 85 per cent market share. Liquid hand wash created a new market and lords over 60 per cent of the market in the category, while the various Dettol soaps account for 18 per cent of the health soap division. Others such as body wash and shaving cream make for a minuscule part of the turnover. The brand's foray into talcum and floor cleaners a few years ago, though, didn't work out. Now Reckitt Benckiser has bigger plans for Dettol. With the launch of its "Dettol Surakshit Parivar" initiative on March 21, Reckitt Benckiser will target new mothers, schools and hospitals in six metros - Delhi [ Images ], Mumbai [ Images ], Kolkata [Images ], Chennai, Bangalore and Hyderabad. Clarifies Chander Mohan Sethi, regional director, south Asia, and managing director, Reckitt Benckiser (India), "This is in continuation to several other initiatives of reaching out to people." Apart from ad campaigns and product schemes, the company used to sponsor programmes such as the National Nurses Meet. "Until now it was more of a single initiative that we sponsored or worked on, and then got out," Sethi says, "It was time we did things differently. We also look at it as a part of our corporate social responsibility initiative." Equity tracking is a continuous process at Reckitt Benckiser. "Dettol is believed in by everybody, even doctors. That is the core deliverable that we wanted to emphasise," says Sethi. With an initial investment of Rs 5 crore (Rs 50 million) and a year of work, Reckitt Benckiser aims to target those who are most vulnerable to infections. Thus, new mothers will be presented with a vaccination chart with tips on how to keep the new-born and its surroundings germ-free, along with a free bottle of Dettol antiseptic. School students will be educated in the importance of washing their hands before eating. The hospital programme will mean reaching out to hospitals and nursing homes where programmes will be conducted with nurses and staff to keep the environment germ-free. Health messages on first-aid and immunisation will also be displayed. The programme will mean getting in touch with 1.2 million new mothers, 300,000 students and 250 hospitals across the country. While the new mothers' programme has already started in the six metros, the school and hospital initiatives will kick off in a phased manner through the year (Q2-Q3). People from agencies specialising in dealing with people from the medical field and school children will reach out to the target groups. "At the same time, our brand team will train these people about the brand, too," adds Sethi. Constant checks by the company and the agencies ensure the plan moves smoothly. But if the project is a part of Reckitt's CSR initiatives, why target the metros? Surely cleanliness and hygiene need a boost more in rural India and small towns?

"This is just the start of the journey," explains Sethi patiently. "I believe that whatever we do, we should do it well. Later stages will involve smaller towns and, ultimately, rural India. And even with metros, we are not targetting the rich and wealthy." "I wish they mean what they say," counters Anand Halve of brand consultancy Chlorophyll. "Where brand building is concerned, it aims to make the product a definitive brand in the category." Halve says the programme might work in the same way as Colgate's initiative of free dental check-ups in school did. Arvind Singhal, managing director, Technopak Advisors, says such an initiative is a subtle way of nurturing the brand. "More and more companies are looking at doing contemporary things. They want to be seen as doing the right things." Will the exercise also mean a surge in sales for the company? "I would love it if my sales doubled," laughs Sethi, adding, "But on a more serious note, I am merely looking at establishing the importance of hygienic living."