Reckitt Benckiser: Becoming Indian healthcare giant

Reckitt Benckiser: Foraying in the Indian healthcare market.

The only thing that perhaps found in each and every first aid kit is Dettol. Off the decade the Dettol has become synonym of antiseptic liquid. The matter of the fact is that many such antiseptics, like Savlon, tried to enter in the market, but could not survive the place where people rely on their faith in brand as major criteria for their choices. One important reason for maintaining its position in top ten constantly is its marketing strategy which involves innovative advertisement shown on the Television regularly. Remember the punch line; “aapka Dettol kya kya karta hai”.

Reckitt Bensicker seems to be very much focussed about its plan to become, or perhaps maintain, its numero uno position when it comes to producing household products and consumer healthcare/personal products.

It is clearly visible that their strategy depends on acquiring the already stabilised brands while maintaining the brand value of their existing products. RB could easily produce the analgesic balm and effective face wash but it acquired SSL (producing and marketing ultrasil) and Indian Paras pharmaceutical (MOOV). Marginal benefit seems to be far good than marginal cost involved in this deal.

Paras pharmaceuticals had already occupied Indian OTC drug market through the vast variety of products like MOOV, D’COLD, DERMICOOL, KRACK CREAM and ITCH GUARD.

RB bought Paras for INR 32.6 Billion which seems to be reasonable as Paras has a strong hold in Indian market.

Though in February this year, when RB slashed the margin of the retailers, HUL launched a special market drive and flooded modern retail shelves with its brands Lifebuoy and Domex to take on RB’s top brands like Dettol and Herpic toilet. However, it barely affected the people’s choices when it comes to personal hygiene.

The man behind the success of RB in Indian market and of course worldwide too is Mr Rakesh kapoor, executive vice president, global category development and an executive committee member. Mr Kapoor is designated to become global CEO on 1^st September 2011 after the retirement of Bart Betcher as the current CEO. He, XLRI alumni, is joining the Indian originated global CEO club following Indira Nooyi and Vikram Pandit.

The success of RB is majorly due to its innovative marketing ideas, a couple of years back the company launched ‘surakshit pariwar’, an awareness campaign on hygiene. With a budget of just 5 crore,which primarily meant to spread awareness on hygiene in family and school environment. As per Mr Chander Mohan sethi, MD of RB India Ltd. He planned to reach about 12 lakhs new mother and 3 lakhs student under its hand wash programme in school.

A major segment where RB, more likely Dettol can make its presence felt is making and marketing antiseptic self-adhesive bandages. There was a time when Band-Aid by Johnson and Johnson ruled the market. But at this point of time RB can encash upon its Dettol brand by making this product as no other major player is visible in the market

Thus with the kind of power it enjoys in Indian healthcare/personal care market. The day is not far away when it will start manufacturing even the prescribed/scheduled drugs and will become the king of market replacing Ranbaxy and cipla.

Rohit Sah

B.Pharma

PGDM 2011-2013