Current Marketing Situation Target Market: Product Description
Current Marketing Situation Target Market: Product Description
buying soap and who want to fulfill an everyday need (primarily bathing) that provides them and their family with a 100% anti-bacterial solution, complete protection from germs or bacteria and cleanliness from dirt and grime. The target market analysis of Dettol soap is: Geographic location Include almost all Urban; suburban; and some rural areas Demographic Gender Male; Female mainly mothers Age 18years to 45years Mainly targeting middle class and upper middle class in urban and sub-urban areas-primarily cities and surrounding areas. Rural market penetration is limited and is primarily driven through indirect channels, as an example wholesale. Market description: Soap is a major consumerable item and there is a huge demand and potential in this market particularly the anti-bacterial segment. The anti-bacterial market segment has grown year on year by more than 7% percent due to increased consumer awareness and education on the benefits of anti-bacterial soaps. As a result, the pie is growing bigger every year. The demand or Reckitt Benckiser products are very high but the demand of the Dettol soap is growing in the anti-bacterial category.
Product description:
Original Soap New and Improved Dettol Original Soap is specially formulated for everyday use. Dettol Original Soap is 10 times better at fighting germs compared to ordinary soaps. Available in two sizes 75g and 125g.
Skincare Soap: In 2004, the company came up with a newline extension, Dettol Skincare soap bar. It was mainly targeted at women. Product formulation was done to take care of the skincare needs of women. Available in two sizes -75g and 125g. Cool Soap: In 2006 Reckitt introduced another soap bar with the name Dettol Cool. It was enriched with menthol to deliver a cool sensation, specically designed for teens and young consumers. Available in two sizes 75and125g. Dettol soap gradually established its hold on the market. In2001, Dettol soap had a market share of 3% (in value terms),going up to 3.6% in 2005. Sales of Dettol soap grew from Rs.210.5 million in 1995 to Rs.1849.4 million in2005. Apart from Dettol soap, Lifebuoy, Savlon, Medimix, Margo, and Hamam were other competing brands in the health and hygiene segment in the soaps market.
The key competitors for Dettol soap were Hindustan Lever Limiteds (HLL) Lifebuoy soap with germ killing positioning and Savlon, positioned as a family protection soap.
THE THREATS Other main players in the antibacterial soap category (Safeguard and Lifebuoy) have positioned their brands for everyday use against bacteria Dettol soap positioning lacks that desired everyday benefit and experience!
COMPETITION ANALYSIS
Here is a brief description about the antiseptic soap producing companies Reckitt Benckiser India Limited (RBIL) was a wholly owned subsidiary of Reckitt Benckiser plc. The parent company was the worlds number one in household cleaning products. It had its operations in over 60 countries and its products were sold in 180 countries. In 2004, it had a turnover of3,871 million and net prots were 586 million. The Indian subsidiary was incorporated in 1951 as Reckitt & Colman India. The company had two main divisions: household products and over-the-counter (OTC) pharmaceutical products. The Dettol soap users have the perception that it is effective in germ kill with the medicinal smell of Dettol liquid which is used for Bruises & Cuts, Insect bites, washing of clothes, Mopping of floors, Shaving, Bathing and Cleansing of skin and used mostly during summers. Its functional core need is incidental antibacterial.
Safeguard is the No. 1 antibacterial soap worldwide; it is the only bar soap registered with the FDA. Safeguard is designed to provide excellent germ protection for the whole family. Safeguard, launched in 1995 by Procter & Gamble has set new standards for defining "health & hygiene" in Pakistan. It is an anti-bacterial soap that provides germ protection for twice as long as ordinary soaps making it the doctors' number 1 recommended choice throughout the world. The market share of safeguard is the biggest in antiseptic soap category with 22 % share. Safeguard users have the perception that it is providing them with Continuous Germ Protection, Gentle on skin, Smells Good, has a easy to grasp shape and the functional needs portrayed is of an everyday soap with germ protection.
Lifebuoy is one of Unilever's oldest brands. Lifebuoy Royal Disinfectant Soap was launched in 1894 as an affordable new product in the UK, to support people in their mission for better personal hygiene. Lifebuoy soap aims to provide affordable and accessible hygiene solutions that enable people to lead a life free from hygiene related worries, everywhere, regardless of the boundaries of nationality, religion and socio-economic status. Lifebuoy has a market share of 16 %. Lifebuoy users see the soap as a decent quality, affordable germ protection agent containing carbolic acid as its germ protection agent and its functional need portrays that it is an everyday soap with germ protection for the middle and lower middle class.
OPPORTUNITY ANALYSIS
Based on the competitive analysis, Reckitt Benckiser found out that there are a lot of opportunities which will help the New Dettol soap capitalize a greater market share. New Dettol Soaps ability to gain real consumer insights, to launch products and variants that consumers actually want, supported by insightful advertising that talks to consumers in their own language, are all vital elements, which will lead to success of Dettol and the New Dettol soap as a brand. Extensive Market Growth Market Penetration and Market Expansion. Achieving High Gross Margins High Customer Services and Satisfaction New Product Development and Entrepreneurship. PRODUCT OFFERING The product is offered in 5 variants (115 Gms and 70 Gms): Original: Contains essence of the Dettol antiseptic solution Skincare: Contains moisturizer for Skin care. Active: Contains Active cleaning agent for Active cleaning. Fresh: Contains Fresh scent for a Fresh feeling. Sensitive: Contains Skin-friendly ingredients for Sensitive skin.
POSITIONING STRATEGY Positioning Against Competitor Dettol is positioned as a premium brand which the mother chooses for 100% protection against all germs and bacteria for her family. The mother of the family is the focal point for Dettol Soap positioning compared to Safeguard and Lifebuoy which focuses on children.
The primary positioning vis a vis product attribute is that Dettol Soap has the essence of Dettol Solution, the no. 1 antiseptic brand in the world trusted by families everywhere for over a century which its competitors do not posses. Hence, it is considered a premium brand in the anti-bacterial segment. Positioning by price and quality As Dettol is a premium brand, it is priced at a premium to its competitors (Safeguard and Lifebuoy). Being premium means there will be no compromise in quality as the link between price and quality exists and customer is always willing to pay more for perceived quality which in the case of Dettol soap, he/she does!
MARKETING MIX STRATEGY Geographic pricing strategy In pricing the seller must consider the cost of shipping. There are different geographic strategies. But RB utilizes the uniform delivering pricing for Dettol Soap.
DISTRIBUTION STRATEGY Channel Of Distribution For Consumer Product There are 2 primary channels of distribution for Dettol soap: Distributors and sub distributors: The company sells the products to its appointed distributors and sub distributors that are responsible for the distribution of pre-defined geographical areas who distribute it further to wholesalers and/or retailers. The retail distribution is further classified into TOP STORES (TSPs) which include all the high profile outlets and whole sale comprises of categories of diamond, gold and silver divided on the based on their average purchase per month and from here the product reaches the point of sale for the customer. Direct Delivery (Key Accounts) The company provides direct delivery to select large customers like institutional buyers of key accounts which sell directly to the consumer (in case of USC and CSD) or to small retailers / endconsumer (in case of MAKRO / METRO).