BRAND DOSSIER ON DETTOL SOAP PROJECT SUBMITTED TO PROF SRINIVAS GOVINDRAJAN SUBMITTED BY : 1) 2) 3) 4) MASARRAT YASMEEN SAGAR KUMAR VINEET SAGAR ZEESHAN ALI MIRZA CONTENTS PARTICULARS 1) HISTORY 2) INITIAL POSITIONING 3) REPOSITIONING 4) ADVERTISING 5) SALES PROMOTION 6) SEGMENTATION 7) ANALYSIS OF PRODUCT 8) SWOT ANALYSIS 9) GENERIC COMPETETION 10) PRIME MARKET EXPANSION 11) DISTRIBUTION STRATEGY 12) FUTURE OF THE BRAND. 13) BIBLOGRAPHY HISTORY & EVOLUTION Dettol , the iconic brand from Reckitt Benckiser, is the first brand that comes to mind when anyone mentions the UK based Reckitt Benckiser. Dettol synonymous with protection from germs had for long been voted as India’s most trusted brand. In 2008 the brand celebrated its platinum jubilee of protecting families from illness causing germs. The brand Dettol was launched in India in 1933 in the Antiseptic liquid form as a treatment for cuts and wounds. For almost the first 50 years, Dettol was present only as an antiseptic liquid. Although it was being used in hospitals and nursing homes for first aid and disinfectant uses like cleaning wards, washing linen, etc. Consumers were also using it for bathing, mopping, shaving and other secondary purposes. While it started its journey as the ‘cuts and wounds’ brand in the country, it has been extended to a number of product categories like toilet soaps, liquid handwash, liquid bodywash, shaving cream and plaster strips. While Antiseptic Liquid is the category where the brand was born and where it continues to command a dominant market share of 85%, its revenue growth is significantly driven by its presence in the other product categories of toilet soaps(or bar soaps), Liquid handwash, Body wash, Shaving Cream and Plasters too. For each of these markets are at varying stages of evolution, so while in one market the brand - as the leader - had the responsibility of driving overall market growth, in other markets, the brand strategy had been to garner share. The growth trend in the last few decades had been encouraging with shares showing an accelerated upward growth in most of the categories, but the team felt share gain could be much faster. The brand team decided to furthe r build on the growth trajectory and set itself a visionary target - that of doubling Dettol’s overall share in the combined market of the product categories it is present in. Fundamental to all the categories is to the creation of a consumer need for germ protection satiated by Dettol’s trusted promise. POSITIONING & REPOSITIONING Dettol Soap was launched in India in the early 80s. The launch was based on consumer feedback on Dettol Antiseptic Liquid, where secondary usage of the product always came up. Since many consumers used Dettol in their bathing water, the company thought of offering Dettol in a more convenient form of soap. So Dettol Original was launched. It was launched on the platform of ‘Mild and Gentle Skin Care’ with the selling proposition as – “Give your family the loving care of Dettol Soap”. However, even after two years of launch Dettol soap could not make its presence. Then in mid 80s an exhaustive consumer research was undertaken with the objective of finding reasons for dissatisfa ction among consumer and the result revealed that a consumer platform has to be built for a special bathing soap based on Dettol’s core strengths and not on the mild and gentle skincare platform. It was also seen that consumers were open to the idea of usi ng Dettol Soap when they faced extreme dirt conditions. These could be based on exposure to dirt and germs, pollution, heat, sweat etc. Another challenge was to create a positioning that manages a fine balance between a cosmetic and therapeutic medicated p osition. The final positioning that was decided was “Dettol protection comes to you and your family in the form of soap for those daily occasions when an especially clean germicidal bath is necessary. WHEH NO ORDINARY BATH WILL DO – DETTOL SOAP – THE 100% BATH” The advertising was thus developed along these lines and Dettol Soap was re launched. The advertising clicked with the consumer. Dettol soap sales reacted very positively to this new communication. Dettol sales grew year after year, with communication being renewed periodically to keep consumer interest in the brand promise alive. Over the years, the communication was moved along this gradient of educating consumers, on how they pick up germs throughout the day and only Dettol soap can give the required protection every day. Again by 2000, it saw limited success and its market share had started stagnating. Research on brand equity revealed that while Dettol’s equity remained very strong on ‘germ protection’, the product’s relevance in the consumer’s choice for a bathing soap was getting limited. It was also gathered in the consumer research that while loyalists loved Dettol soap for its trademark fragrance, it was being rejected by a big chunk of consumers as a regular bathing soap bar. The brand team felt a need to launch variants in Dettol Soap given that sensorial measures like fragrance moisturized soft skin etc were key drivers when it came to consumers choosing their soap brands. Dettol Skincare soap was thus launched in January 2004 - A white colored soap, offering Dettol’s protection with moisturizers to nourish the skin. This was followed by the third variant – Dettol Cool in February 2006, which offered trusted Dettol protection with menthol to help feel refreshed and revitalized. As a result 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. Analysts attribute multiple reasons for Dettol's growth like consistent posi tioning on the germ-protection platform, stable pricing and smaller packs. As a result Dettol soap’s share has grown to 7.7% — this is a rare feat in a mature category like soaps where penetration is close to 100%. ADVERTISEMENT Dettol brand of Reckitt and Benckiser was launched in 1936 as an antiseptic liquid; the brand became a generic name for antiseptic liquid and then extended into soaps. From its launch to 1980's the brand had a dream run with virtually no competitors. TARGET MARKET - The target market for dettol soaps is mainly mothers and housewives as they mainly run the household and buying all household items and keeping the household germ free and hygienic is in their hands . PROMOTIONAL STRATEGIES - The Dettol advertising starting in 1960s has centered on educating consumers on the need for protection from germs, while offering solutions to manage the problem of germs wherever and whenever they may occur. Starting then and till now Dettol advertising has celebrated the role of a mother in protecting her family. PROMOTION TOOLS - The various promotion tools it has used are – 1. TELEVISION ADVERTISEMENTS - In the television advertisement it has focused on the mothers and their children everywhere they air the advertisement. They main idea of their each advertisement rests upon 100% germ protection. 2. PRINT ADVERTISEMENTS - These advertisement also focused upon the core value i.e. germ protection displaying its variants and extensions. 3. INTERNET ADVERTISEMENTS - Here advertisement focus on the variety on products which are offered. Dettol through its website is helping to educate people how to improve hygiene practice and provide training and education material on good hygiene. They also advertise the different variety of products offered. Recently Dettol has come out with a campaign – “Aap ka Dettol kya kya karta hai?” The campaign harps over the communication strategy of re -inforcing the relationship between pride and performance. Dettol also celebrated Mother's Day, by creating a special TV commercial with children thanking their mothers for all the love and protection they get all through the year. On a serious note, Dettol also donated Hygiene Packs to 'Save the Children' - a leading global NGO to flood affected states of West Bengal, Assam, Orissa and Bihar. Apart from this, Dettol also has tie -ups with numerous hospitals and medical care facilities. PUSH AND PULL STRATEGY - Dettol mainly uses pull strategy through its various advertisement campaigns and sometimes push strategy also by launching its various combo packs. Its various advertisements say that in every season, while taking bath, before having meal, a Dettol soap is a must. If we look upon the advertisements the advertisement focused upon mothers and the chil dren along with the guidelines of the Indian medical association to the viewers instead of focusing upon all of the family members. SALES PROMOTION BUNDLING OFFER The dettol soaps offers operate on logic of “Buy more to save more”. The offers help the companies to increase the trial of the new and upcoming variants which are often bundled with their best sellers. It provides them more shelf space and attracts eyeballs in the retail chain. Consumers may not buy them immediately but atleast will pick up the bundle, look at the price and may decide to buy one in future. Dettol has been in a constant use of a promotional offer where a bundle of three dettol soaps of 75 grams are packed together and on purchase of the bundle the customer saves rupees 7 which is prominently visible in the pack. Let’s look at how these offers work from the company’s perspective. Because of the lower price point the total value perceived by the customer goes up and customer is tempted to buy the bundle product. He would not have bought the unbundled standalone product. Also these bundle offers create one more price point for the customer. Some customers buy the product at the new price point. This strategy sometimes proves perilous for the company In the long run a s the customer may get used to lower price point and may not be willing to shell extra money once the offer is withdrawn. This happens with dettol Soaps which can often bundled in a pack of three and are price substantially lower. From the customer’s perspective these offers are often tempting. Great packaging adds fuel to this temptation. In case new flavours are bundled with existing flavours bundling provides customers the incentive to try the product. It also provides the customer with the incentive to buy more and pay less which the customer always strives for. FREEBIES Dettol comes up with many offers where buying a product the customer gets another product of the brand for free. One of the recent offering was Buy a Dettol Sensitive Liquid Handwash, and get dettol soap free with it, which is worth Rs.19. So your whole body will stay clean. And it's a good habit too. Dettol uses freebies for trial of new products and create a customer base for the product. This offer encourages the customer to buy the product because it has a free product attached to it. This creates a win -win situation where the company’s revenue rises from higher sales, it can introduce a new product or a existing product and create demand for the product. From the customers point of view it is a value for money deal as a free product is attached to it. SEGMENTATION DEMOGRAPHIC SEGMENTATION Dettol has always targeted and believed in Family Protection. Everyone from a child to the grandparents can use the dettol soap as it protects against germs. The brand promotes itself with taglines “Be 100% sure” and “Trusted Protection”. Its target group are mainly mothers and housewives as they run the household and are the decision maker of all household items purchased for consumption. The responsibility of keeping the household germ free and hygienic lies in their hands. PSYCHOGRAPHIC SEGMENTATION LIFESTYLE-Dettol has segmented our modern day lifestyle which is more outdoor unhygienic and bacterial. So for the hygiene seeking consumer’s dettol soap is the best option. PERSONALITY-Dettol soaps have introduced new variants of soaps which try to capture the personality for its customer there is the original soap which is germ protective. The dettol cool soap and dettol re -energise target customers who need freshness and those who live a very active lifestyle. Whereas dettol skincare soap is more of a soap which provides moisture and softness to the skin. BEHAVIOURAL SEGMENTATION BENEFITS-It appeals to the customers who have a high hygiene standard. Dettol soaps unique selling point is it kills germs and is recommended by Indian medical association. USER STATUS-It has targeted both the brand and category user with its “Aapka dettol kyakya karta hai” campaign that showcased how the brand users across the country had formed their own special bonds with the brand. LOYALTY STATUS- Dettol soap has a hardcore loyalty status therefore its loyal customers are intact and are satisfied with what the product has to offer and trust the brand. BUYER’S READINESS-Dettol products have a very high buyer readiness. Since years it has been used in Indian households for va rious purposes. Therefore customers have no hesitation in selecting a dettol product. PURCHASE OCCASIONS-It has no specific occasion for purchase although it tries to promote its sales on occasions like mother’s day. Dettol soap has also introduced different soap variants which cater to different weather conditions. In summer there is dettol cool soap and re-energize soap whereas in winter there is skincare soap. ANALYSIS Dettol is available in four variants across nation Dettol Dettol Dettol Dettol Original, Skincare, Cool and Re-energize . All the ranges of soaps from Dettol continue to bear recommendation from IMA - India Medical Association. ORIGINAL SOAP Dettol Skincare products offer a New and Improved Original Hand Soap, which is specially formulated for everyday use. Dettol Original Soap with pine fragrance provides trusted Dettol protection from a wide range of unseen germs and is 10times better at fighting germs compared to ordinary hand soaps available in the market. It protects and maintains your skin giving it natural feel, leaving it healthy and smooth every day. Its ingredients are so designed to deep cleanse, fight infection, as well as gently exfoliate the skins surface. It can be used as a trusted protection for the entire family. It is Available in two sizes - 75g and 125g. SKINCARE SOAP Dettol Skincare products offer a New Skincare Hand Soap that provides perfect balance between your beauty and protection needs. Dettol Skincare Anti Bacterial Bar Soap is enriched with added moisturizers to prevent dryness and roughness while providing trusted Dettol protection from a wide range of unseen germs. It cares for and helps maintain skin's natural moisture level leaving it feeling healthy and smooth every day. This soap is very gentle on the skin and gives the benefits of the beauty bathing bar and also ensures maximum hygiene and freshness. The benefits of this Dettol Skincare soap can be enjoyed by both men and women to ensure that the complete family enjoys good health and freshness. It is available in two sizes - 75g and 125g. COOL SOAP Dettol Cool Soap not only smells good but also protects you from germs. This protecting soap from Dettol breaks the common thoughts of people that healthy soaps do not leave a nice fragrance. This new and improved fragrance with menthol helps to keep you refreshed and revitalized. Dettol does not forget its main aim of letting people get rid of the daily impurities from their skin. Thus, the Dettol Cool Soap will not only invigorate and enliven people and their mood, but also shield them from germs that causes multiple health issues. This can be used for the whole family with the trust of Dettol. Available in two sizes - 75g and 125g. RE-ENERGIZE SOAP Dettol Skincare products offer a New Hand soap with the freshness of oranges & Dettol's trusted protection from germs. Consumers are always looking for a unique aspect within their daily regime, some special freshness that brings a special energy in everyday life. Dettol’s new Re-energize hand soap leaves people feeling healthy, fresh & re-energized every day. Dettol Re-energize is an ideal soap for the entire family whose zesty Orange fragrance leaves you feeling fresh and re-energized apart from its unique formulation that gives superior protection against germs. Available in two sizes 70g & 120g. SWOT ANALYSIS STRENGTHS: 1. STRONG MANAGEMENT Strong management helps Dettol antibacterial soap reach its potential by utilizing strengths and eliminating weaknesses. 2. STRONG SUPPLY CHAIN A strong supply chain helps Dettol antibacterial soap obtain the right resources from suppliers and delivery the right product to customers in a timely manner. 3. STRONG BRAND NAME Dettol comes from a reputable (old) company an d the brand’s Germkill heritage (brown liquid) is seen as strong and adds on trustworthiness (RTB).This gives Dettol antibacterial soap the ability to charge higher prices for their products because consumers place additional value in the brand. 4. CUSTOMER LOYALTY When given a choice, customers are loyal to following of ‘Original’. Instead of targeting all customers, dettol antibacterial soap only needs to target new customers in order to grow their business. 5. SKIN TREATMENTS AND VARIETIES OF PRODUCTS Dettol Soap is seasonal applications killer and hygienic sanitizers, body wash Excellent for treating skin irritations, cuts/bruises and which Increases the popularity of Dettol soap as a germ soap. It has products like antiseptic liquid, soaps, etc WEAKNESS: 1. LIMITED PENETRATION Despite of being the excellent product, dettol has limited penetration in rural markets. 2. COMPETITON Competition from other similar products means stagnant market share and less chance to increase the cost and other factors. OPPORTUNITIES: 1. FINANCIAL LEVERAGE Leveraging powerful brand equity associated with the Dettol Brand will allow dettol antibacterial soap to quickly expand into other markets and products, especially in fragmented industries. 2. NEW MARKETS New markets allow Dettol antibacterial soap to expand their business and diversify their portfolio of products and services. 3. PENETRATION Tie-ups with schools, hospitals, hotel chains etc will help in Better penetration in rural markets and emerging economies. THREATS: 1. SUBSTITUTE PRODUCTS Presence of other main players in the antibacterial category prevents the dettol antibacterial soap’s ability to raise prices as customers can easily switch to another product. 2. INTENSE COMPETITION Other emerging players and alternativ es available can lower dettol antibacterial soap’s profits, because competitors can entice consumers away with superior products. GENERIC COMPETITION The generic competition to the soap can be the body wash, shampoos, Multani Mitti and other plant extracts which gives lather and the freshness. Traditionally soapy plant extracts and the Multani Mitti were used for removing dirt and oil from the skin. These were the natural sources which were used for bathing to refresh self. As the commercial items started entering the market soaps came into picture and so are the other products. Awareness of these products led to the expansion of the soap market.Because of this, generic competition of soap shifted from traditional method of usage to modern method of usage. Presently body wash and shampoos can be classified as the generic competitors of the soap. Shampoo sachets are used as substitutes to soap for bathin g by people from poor section, taxi drivers, labours etc. The reason being the shampoo sachet is cheaper and easily available and convenient to carry. Body wash or liquid soap is another generic competitor to soap as the usage of it is growing amongst the people from different sectors. Many varieties of liquid soap are emerging in market trying to change the demand of bathing bar to liquid bathing soap. Hence it is clearly visible that the generic competition of the soap has undergone changes according to the public demand. PRIME MARKET EXPANSION Today, Dettol Soap as a product needs no introduction in India market. Dettol rips the fruits of smart establishment of its products in the market. Dettol Soap was launched in India in the early 80s. The launch was based on consumer feedback on Dettol Antiseptic Liquid, where secondary usage of the product always came up. Since many consumers used Dettol in their bath water, the company thought of offering Dettol in a more convenient form of soap. Hen ce, Dettol launched its first soap with the name Dettol Original and created an image of strong association of its products with the quality antiseptic in minds of Indian consumers. The Soap Market Classified into about ten different appeals such as Beauty, Health, Fairness, Freshness, Herbal etc. Dettol initially faced problem in penetrating the soap market as the competition was stiff. By the year 2000, it saw limited success but its market share had started stagnating. Research on brand equity revealed that while Dettol’s equity remained very strong on ‘germ protection’, the product’s relevance in the consumer’s choice for a bathing soap was getting limited. It was also gathered in the consumer research that while loyalists loved Dettol soap for its trademark fragrance, it was being rejected by a big chunk of consumers as a regular bathing soap bar. The brand team felt a need to launch variants in Dettol Soap given that sensorial measures like fragrance, moisturized soft skin, etc were key drivers when it came to consumers choosing their soap brands. Dettol Skincare soap was thus launched in January 2004 - A white colored soap, offering Dettol’s protection with moisturizers to nourish the skin. This was followed by the third variant – Dettol Cool in February 2006, which offered trusted Dettol protection with menthol to help feel refreshed and revitalized. Dettol strategically launched the two variants i.e Skin Care and Dettol C ool during January and Febuary respectively keeping in mind its utility during the climatic condition. Dettol then launched Re -Energize Soap in February 2012 again just before summer sets on in India. The Bar Soap Market in India is worth Rs. 6550 Crores. Dettol occupies approximately 5% share in this market. Dettol variants have contributed incrementally to Dettol soap sales and now make up about 25% of total Dettol soap sales. However, given its heritage and years of existence, Dettol Original Soap continues to be the lead variant, and top of mind when it came to Dettol Soaps. To suit the needs of different consumers, Dettol and its competitors are available in different pack sizes and combo-pack offers. Pricing also plays a big role in this market that can be segmented as economy, mid-price and premium. Each player is present in different sizes, and hence tries to straddle different pick up prices. Dettol soap has a premium price versus other key players in the market. This has limited Dettol penetration in the lower end of the market. To overcome pricing barrier, small pack was launched in 2007, priced at Rs. 6. This helped in gaining further share. Dettol has also change its advertising strategy over this period since inception. Earlier when Dettol Original was then only variant its advertisement was featured with the tag line “100% Bath”. To expand the market and promote various utility of all its variant Dettol started featuring seasonal advertisements. SUMMER ADVERTISEMENT MONSOON ADVERTISEMENT WINTER ADVERTISEMENT DISTRIBUTION STRATEGY DISTRIBUTION PROCESS : The Soap market today has a 98% penetration level. The market has been volumetrically stagnant in the last few years. However, value wise, the market has been growing owing primarily due to price increases and to some extent a movement from economy brands to brands that are mid -priced or premium priced. The Indian bar soap market has a large number of players that use different ap peals to connect with their consumers. Hence to stay ahead in the long list of producers the distribution channel has to be really strong. Dettol distributes all its products through its common wholesale distribution channel, which has a wide and deep reac h in the markets and is a key strength of the company. Dettol soap in the country is sold in about 5.5 million shops including paanwalas and mom-and-pop stores. Dettol soap is distributed in 2.3 million stores. Dettol soap has a penetration of about 62% in antiseptic soap category. The category penetration comes to about 70% in urban India, and 40% in rural India. The pictorial description of distribution channel of Dettol is as follows: Manufacturing MANUFACTURER : Stock Keeping Unit Distributors Retailers Consumer MANUFACTURER: The manufacturing plant of Dettol is located in Marwa road, Mumbai. Dettol annually produces on an average 6000 – 8000 kilolitres for sales. After manufacturing the company sends products to S.K.U and C& F agents all over India to distribute it to the distributor. STOCK KEEPING UNIT OR C&F AGENTS: Stock Keeping Unit act as moderator between distributor and manufacturer. It keeps check of the market demand. It observes the market and gives response about the demand of the distributor. DISTRIBUTOR: It is the most essential link between retailer and manufacturer. They enjoy a higher level of expertise, respond more quickly and have more local geographical knowledge than manufacturer. They also act as an ad visor for the future growth of companies. They save the cost of logistics. They have experienced handling manpower. They get a profit margin of 3 -5 %. Distributor work according to ACP(area chart plan) decided by company and distributor sales personn el. RETAILER : It is an important link as its effectiveness will only benefit the other links above it to survive in the competitive market. It is the final link where companies effective marketing strategy will decide the demand and will make the public aware of its existing product as retailers are medium for product display. They have a profit margin of 7-8% over dettol. FUTURE OF THE BRAND Back in 1942 when Dettol started its manufacturing in India it only had the iconic antiseptic liquid to promote. They have come a long way since then in India and have nine products in its basket today. They have worked hard to not just add product in their basket but also promote the various utilities of their each product by featuring the advertisement like “Aap ka Dettol Kya Kya Karta Hai”. Dettol has created an image of strong association of its products with the quality antiseptic in minds of Indian consumers. India being a developing nation turned out to be very advantageous for future of Dettol. There has been a consistent rise in the literacy rate in Indian population. Now the consumer has even more consciousness of living and sustaining a health life. Dettol smartly identified the growing female literacy rates who are their main target group. It knows these literate women are the decision maker of product to be consumed by their family and shall make no compromise with the living quality of their families. Hence, the new era home makers, new mothers and working mothers are the new target customer for their product. Dettol has left no stone unturned and is extensively promoting its association with health and quality living. Dettol has also been recently involved in many activities that educated school students of the benefits of washing hands with Dettol Soap and Liquid Handwash. Preaching student about the benefits of basic health and hygiene has also been a part of this venture of Dettol. Dettol sta rted this venture in October 2011 when more than 2 lakhs students from 700 schools participated in the program across the nation. Dettol keeping in mind it future aspiration has got into different level of marketing and publicity where it is inculcating an d developing the habit of using Dettol soap among its future customers. This program which Dettol had started currently covers 14 lakhs students across 3115 school of India clearly indicating the ambitions of Dettols as brand. The company is relentlessly trying to expand the size of slice in the cake as the penetration of soap is nearly saturated at 98%. Hence Dettol wants to expand its number of consumer keeping in mind the future of brand. Dettol currently marketing and promoting its product to attract c ustomers and consumers under three categories: Dettol under the above three categories i.e “My Family & First Aid”, “My Family & Good Hygiene” and “My New Baby” is trying to generate awareness among it’s consumers that they must observe to have a healt hy living. By doing these kind of advertisement Dettol is trying to be a part of individual lifestyle. Dettol has recently added new mother in its target group. It also publishes precautions against swine flu at its website. The future of brand in India seems prominent and prosperous. The brand understands it position in the market. It is working very hard to enhance and create its image among existing and future consumes respectively. BIBLOGRAPGY http://www.rb.com/home http://www.dettol.co.in/ http://articles.economictimes.indiatimes.com/2007-10-24/news/28494510_1_dettolgerm-protection-variants http://articles.economictimes.indiatimes.com/2009-07-23/news/28409810_1_dettol-soapbrand-value-market-share http://articles.economictimes.indiatimes.com/2010-12-01/news/27618064_1_reckittbenckiser-dettol-bart-becht http://articles.economictimes.indiatimes.com/2012-11-07/news/34971152_1_dettol-parlebrands http://articles.economictimes.indiatimes.com/2009-05-31/news/28402503_1_dettolbrand-hindustan-uniliver http://articles.economictimes.indiatimes.com/2003-12-17/news/27558214_1_dettol-cmsethi-soap http://www.mbaskool.com/brandguide/fmcg/2378-dettol.html http://www.wikiwealth.com/swot-analysis:dettol-antibacterial-soap