Literature Review of the Brand – “Dettol” Submitted by Ankush Roy Krishna Bollojula Shubham Sharma Suddhasheel Bhattacharya Table of Contents Brand Dettol – The Evolution........................................................................................................................ 3 Company Background .............................................................................................................................. 3 Evolution, Positioning and Repositioning of Dettol Products....................................................................... 3 Dettol – The Antiseptic Liquid ................................................................................................................. 3 DETTOL SOAP........................................................................................................................................ 4 The Liquid Hand Wash ............................................................................................................................. 6 The Body Wash......................................................................................................................................... 7 Shaving Cream.......................................................................................................................................... 7 Plaster........................................................................................................................................................ 7 Advertising, sales promotion and segmentation strategy............................................................................ 8 Electronic Media....................................................................................................................................... 9 Outreach Media......................................................................................................................................... 9 Print Media................................................................................................................................................ 9 Sales Promotion ...................................................................................................................................... 10 Consumer sales promotion......................................................................................................................10 Business-Business promotion .................................................................................................................10 Sales persons promotion .........................................................................................................................10 Tools of sales promotion.........................................................................................................................11 Segmentation strategy for Dettol Antiseptic Liquid and Soap ................................................................... 12 Analysis of product and generic competition to the brand ........................................................................ 13 Communication:...................................................................................................................................... 13 Other Players in the antiseptic liquid market: .........................................................................................14 Savlon: ....................................................................................................................................................14 Suthol:.....................................................................................................................................................14 Lifebuoy:.................................................................................................................................................15 Santoor:...................................................................................................................................................15 Overall Strategy of Dettol antiseptic Liquid and Soap ................................................................................16 Distribution Strategy................................................................................................................................... 17 Summary regarding the future directions for the brand ............................................................................ 18 Brand Dettol – The Evolution The brand started its journey in 1933 as antiseptic liquid, but over the years, it has been extended to a number of product categories like toilet soaps, liquid hand wash, liquid body wash, shaving cream and plaster strips. The growth trend in the last few years had been encouraging with shares showing an accelerated upward growth in most categories, but the team felt share gain could be much faster. The brand team decided to further build on the growth trajectory and set itself a visionary target - that of doubling Dettol’s overall share in next three years in the combined market of the product categories it is present in (Antiseptic Liquid, Bar soaps, Liquid Hand wash, Body wash). Company Background Reckitt Benckiser India Ltd (RBIL) is a fully owned subsidiary of Reckitt Benckiser Plc., world’s No.1 Company in household cleaning. Reckitt Benckiser Plc. came into being with the merger of Reckitt & Colman Plc. with Benckiser NV in 1999. The company has operations in 60 countries, sales in 180 countries and has had net revenues in excess of $5.5 billion. Reckitt Benckiser India Ltd (RBIL) manufactures and markets a wide range of products in Personal care, Pest control, Shoe care, Antiseptics, Surface care, Fabric care and other categories. Amongst its many well-known brands are Dettol, Mortein, Harpic, Cherry Blossom, Lizol, Disprin, Robin powder, Colin, etc. Most of these brands are either number 1 or number 2 in their respective categories in India. These brands are either number 1 or number 2 in their respective categories in India. RBIL distributes all its products through its common distribution channel, which has a wide and deep reach in the markets and is a key strength of the company. Evolution, Positioning and Repositioning of Dettol Products Dettol – The Antiseptic Liquid The brand Dettol was launched in India in 1933 in the Antiseptic liquid form as 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, over the years it had taken over the role of ‘protector from germs’ in every situation. Dettol Antiseptic Liquid has some strong, distinct associations-first and foremost is its trademark smell. Who can miss the characteristic Dettol smell that has been the reassurance to many a child’s scraped knee! Consumers recognize the smell enough to refer to a medicinally clean room as ‘Dettol like smell’. Savlon on the other does not have the same burning sensation, (and is) very often seen by consumers as ‘ineffective’ ”. The second characteristic is its amber gold color. The third is the ‘clouding’ effect that appears when it is added to water. Dettol’s packaging is distinct in its very own way. The green & white colors are associated with hospitals. All Dettol products have a sword on the pack, which is a symbol for fighting germs and infection. Consumers see Dettol as an ‘expert’, as something which is effective and versatile and guarantees protection from germs. It has been likened to a bodyguard who protects them from the unclean and unhygienic outside world. The brand’s versatility stems from multiple uses of the antiseptic liquid which offers protection in so many different forms. Usage of the brand gives rise to many emotions in the consumers’ minds. From making them feel safe and secure about the well-being of their family to making the mother feel that she has done the best for her family, the brand evokes positive imageries and emotions. Thus, it is only fitting that the brand’s tagline says - Be 100% sure. Over the years brand Dettol has been extended and has made its presence felt in a number of product categories. While Antiseptic Liquid was the category where the brand was born and where it Reckitt Benckiser India Ltd. 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 hand wash, Body wash, Shaving Cream and Plasters too. 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. Fundamental to all the categories was existence/creation of a consumer need for germ protection satiated by Dettol’s trusted promise. Dettol’s communication in the initial years was via medical detailing material, print advertisement in popular press and medical journals. This was followed by TV advertisements centered on first aid application for many years. U&A study showed that while First Aid use in the households had a near 100% penetration, many homes were using it for secondary purposes. In order to exploit this potential in 2005, the message strategy saw a shift to communicating secondary usages like adding Dettol to bathing water, disinfecting the floors, nappy rinsing etc. In early 2008, the brand’s communication took another step forward with its “Aapka Dettol Kya Kya Karta Hai” campaign – that showcased how brand users across the country had formed their own special bond with the brand – using it whenever and wherever they felt a need for disinfection. Antiseptic Liquid is a well-penetrated market, given its use in first aid, and is sold in over 16 lac outlets in the country. Over the years, the product has been extended for other disinfection uses like adding to bathing water, disinfecting baby nappies, adding to water while mopping etc. and at present secondary usage contributes more volumes of Dettol Antiseptic liquid than the primary first aid usage. DETTOL SOAP The Dettol soap was launched in 1981 by Reckitt and Coleman India Ltd on the platform of ‘Mild and gentle skin care’ with the selling proposition as – “Give your family the loving care of Dettol Soap”. But its positioning did not fall in line with Dettol’s core property: fighting germs and protection. There were doubts regarding success of this extension. After in-depth consumer research, it was seen that consumers were open to the idea of using Dettol Soap when they faced extreme dirt conditions. Hence, it was felt that Dettol Soap needs to be positioned for occasions that are special, but not rare in everyday life. These could be based on exposure to dirt and germs, pollution, heat, sweat etc. However, luck favored Dettol soap because 1982-1983 there was a phobia in the minds of people regarding pollution of water and air. Dettol soap, re-launched in 1984, has made headway in the crowded premium toilet soap market by adopting a strategy of creating and dominating a specific usage occasion. By 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 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. The Liquid Hand Wash Dettol introduced the Liquid Hand Wash in 1994.It was known that many consumers use Dettol Soap for cleaning hands. Dettol Liquid Soap gave the consumers a soap in a more modern and convenient format for hand wash. In hand washing, the need for germ protection is top most on consumer’s mind. Due to its early and continued efforts in building the segment and given the strength of the parent brand Dettol, this segment was historically dominated by Dettol Liquid Hand wash. Though the incidence of hand wash in a day is quite high, penetration of liquid hand wash is still low in India, bar soaps being typically used for washing hands. The key reasons for low penetration of the category are ‘expensive/low value for money’. Amongst users, the motivators are ‘protection from germs’ followed by ‘convenience of use’. The segment is broadly split in two formats: i) Dispensing Format: Pump Packs ii) Refilling Formats: Refill sizes The category evolution has been based on the increasing penetration of the Pump pack over a period of time. The dispensing pack dominated the market with over 60% contribution during the initial stages until 2005. Over the past few years, the refill segment has flourished – as regular consumers re-purchase the refill pack after entering into the segment via the Pump pack.However, the awareness for refill packs is still low. A large base of consumers still repurchases the Pump pack instead of using a refill pack. In building the segment, Dettol has played the role of the market leader and the innovator. In 2005, it was the first player to launch the Pouch refill pack. As the market evolved and the Pouch refill segment grew, all the other competitors entered the pouch refill segment and also the launch of the small pump pack, at a lower pick up price, in the first quarter of 2007. Similarly, the latest product innovation offering from Dettol has been the Dettol No Touch Hand Wash System, yet another unique and innovative product in hand hygiene. True to its promise of ‘trusted protection’ a first of its kind in India, comes with the latest no touch technology thus providing its consumers with increased protection against germs. Dettol No-Touch Hand Wash System consists of a Battery Operated Gadget with a Refill. The sensor detects the hand movement (in front of the sensor) and automatically dispenses just the right amount of soap in to your hands and protects against a wide range of germs, helping you to maintain a healthier and happier home environment for your family. It is enriched with moisturizing ingredients that leaves your hands feeling refreshed and soft. The vacuum dispensation ensures no drip after dispensing and up to 98% use of the refill. The new Dettol No-Touch hand wash system is available in two unique fragrances; Original and Hydrating Cucumber Splash. The complete pack including the gadget, 250ml refill along with 4 AA batteries is available at an introductory price of Rs 450/- and the 250 ml refills are available at Rs 99/-. The Body Wash Consumer goods major Reckitt Benckiser has forayed into body wash segment with the launch of a range of body wash products under the Dettol brand for both men and women.IT was launched in 2005 for further penetration into related categories and progression into the urban market. Dettol body wash combines Dettol’s trusted protection from germs with a unique liquid formulation that provides 100 per cent more freshness than soap. The current user profile of Body Wash is upper SECs who reside mainly in Metros. The user profile currently also has a slight female skew and the association of the product usage is with feelings of indulgence and ‘pampering oneself’. The category is considered ‘premium’ due to its high priced products. Though the market is dominated by a few key players namely, Lux Body Wash, Palmolive and Dove taking more than 90% of the market size combined together. Shaving Cream Dettol launched its shaving cream in 1996.This has also been another successful extension for the brand. Though it was launched after a research which showed that 40% people used some antiseptic lotion after shave and 30% used Dettol lotion. This made Reckitt to launch the twin purpose shaving cream. But this did not address the secondary benefit of after shave. It was not supported by enough promotion .did not have any clear differentiation. Had poor positioning Plaster Dettol Plaster is an important brand in the basket since it is directly used in first aid and hence adds to the first aid range and core equity of the brand. The major competitor in the category is Band-Aid from Johnson and Johnson. Advertising, sales promotion and segmentation strategy Dettol’s Flagship brand, Dettol Antiseptic liquid since its launch in 1930’s was positioned as a Germ Killer and a cut and wound Cleaning Liquid. However, in the late 1950’s and early 60’s in a bid to increase the brands usage by increasing its target customer base the brand was subsequently repositioned and advertised as floor cleaning liquid – A must have for homes with young infants. The strategy clicked and was successful in increasing the brand’s revenue. Dettol Original soap 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, the brand failed to take off since a mild soap from the Dettol stable did not make sense. After indepth consumer research, it was seen that consumers were open to the idea of using Dettol Soap when they faced extreme dirt conditions. Hence, it was felt that Dettol Soap needs to be positioned for occasions that are special, but not rare in everyday life. Another challenge was to create a positioning that managed a fine balance between a cosmetic and therapeutic medicated position. 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 a specially clean germicidal bath is necessary. WHEN 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. Various communication tactics adopted by Dettol Straight selling Health care programs. Demonstration. Surprise gift. Free distribution of trial pack Different media formats adopted by Dettol for advertising are: Electronic Media The company RBIL proactively used Television channels like Star Plus and Sony to mainly target families in both urban and Rural areas by promoting Dettol soap and antiseptic liquids by primarily advertising in the prime time shows. Outreach Media Brand Dettol has carried out several campaigns both in rural and urban areas to increase awareness about cleanliness and hygiene and how Dettol soap and antiseptic liquid could be an aid in fighting infections and germs. Primarily such campaigns include “Safe Hai Surakashith Hai” , “saaf hai to safe Hai “ via road shows, and promotion campaigns in marketplaces, societies and other public areas Print Media Both Dettol soap and antiseptic liquid is been advertised in leading daily national and regional newspapers as well as women’s magazines in an attempt to increase brand awareness as well as to create general awareness on public health. Sales Promotion Types of sales promotion undertaken by Dettol Consumer sales promotion Done mainly via mass promotion campaigns on television , print and outreach media to build an inbound traffic for Dettol soap and antiseptic liquid thereby creating a pull and brand loyalty. Business-Business promotion Dettol as a Brand has tied up with both government and private partners for business to business promotions which includes promotion of its products like Dettol soap and antiseptic liquid via either government agencies or private parties. Sales persons promotion It involves mainly selling door to door using large fleet of sales persons. Though Dettol has not used this method recently but it regularly carries out in-store and neighborhood sampling and sales campaigns of their new products. Tools of sales promotion Consumer sales promotion Campaigns Internet marketing Lucky draws (mobile promo) Price offs Banded offers Quantity deals Consumer contests Gifts Segmentation strategy for Dettol Antiseptic Liquid and Soap Since the launch of its flagship brand, Dettol Antiseptic liquid in 1930’s, the product for the most of the time has been almost a monopoly in the market and hence it’s a preferred product in germ killer category in almost all urban areas and also has made its mark in the rural areas as well. As for the segmentation initially the target population of the prospective users was segmented into rural and urban population and for the socioeconomic classification was done for the same. Since its launch in 1930’s, Dettol initially targeted the urban and educated class who are well aware of public health concerns and threats posed by unclean cuts and wounds. However, since then Dettol has successfully targeted the other segments including the rural population of the country as well. Dettol soap which was launched in 1980’s also targeted the urban middle class uneducated consumers who wanted beauty soap with a property of antiseptic’s. Since then, the three other variance of Dettol soap namely Skin Care, Cool and Re-energize have been introduces as well, each targeting a different segment while skin care is targeted towards women who wish to take care of the skin and is primarily marketed as a beauty product. The Dettol cool soap tries to cater to the youth segment aged fewer than 35 with a proposition of being a cool, funky and effective germ killing soap and the Dettol re-energize is targeted towards the working population with a promise of freshness after every bath. Analysis of product and generic competition to the brand The Antiseptic liquid market in India dominated by Dettol Antiseptic Liquid, which has close to 83% share. Johnson & Johnson’s Savlon is the other significant player with a market share of 13%. A few years back, this market saw introduction of Suthol brand antiseptic liquid from G.D. Pharma (makers of Boroline). Communication: Dettol’s communication in the initial years was via medical detailing material, print advertisement in popular press and medical journals. This was followed by TV advertisements centered on first aid application for many years. U&A study showed that while First Aid use in the households had a near 100% penetration, many homes were using it for secondary purposes. In order to exploit this potential in 2005, the message strategy saw a shift to communicating secondary usages like adding Dettol to bathing water, disinfecting the floors, nappy rinsing etc. In early 2008, the brand’s communication took another step forward with its “Aapka Dettol Kya Kya Karta Hai” campaign – that showcased how brand users across the country had formed their own special bond with the brand – using it whenever and wherever they felt a need for disinfection. Antiseptic Liquid is a well-penetrated market, given its use in first aid, and is sold in over 16 lac outlets in the country. Over the years, the product has been extended for other disinfection uses like adding to bathing water, disinfecting baby nappies, adding to water while mopping etc. and at present secondary usage contributes more volumes of Dettol Antiseptic liquid than the primary first aid usage. Other Players in the antiseptic liquid market: Savlon: It is the key direct competitor in the Antiseptic Liquid market. It was launched with ‘no sting with Savlon’s campaign. It attempted to pull the consumer base towards its product promise of non-sting. In Feb 2005, it started with a new ‘70% doctors prefer Savlon’ advertisement with heavy media support. However, brand’s share has more or less remained stagnant over the years. Suthol: G.D. Pharma launched Suthol antiseptic liquid in April 2006 in their stronghold state of West Bengal, which was positioned on soothing sensation, from irritation due to prickly heat, mosquito bites, after-shave, etc. Both TV and print media were used to promote the brand in West Bengal during the launch phase. The brand has shown strong share gain mainly in the East. In 2007, the brand was rolled out to other states, with heavy print support in Delhi & West Bengal, but with little success beyond East. Lifebuoy: It became a serious player in Liquid hand wash market in Q3, 2006. Its share went up from 9.3% to 19.8% for the year 2007. Positioned on a ‘protection from germs’ platform it carries the tagline of ‘have no fear’ in the Liquid hand wash segment too. Other than Dettol, it is so far the only significant player that invests in the category. With media support and strong promotional support, supporting its prelaunch, it has made quick gains in this segment. Santoor: As a strong player in the bar soaps market and with a high market-share in the South, Santoor launched the Liquid Hand Wash in January 2007, along with media support. Post that, the brand has been off air. Overall Strategy of Dettol antiseptic Liquid and Soap Since its inception in 1930’s the Dettol antiseptic liquid has enjoyed a virtual monopoly in Indian Markets and almost a cult like brand loyalty. It is perceived as a very effective germ killer and cut and wound healer by its consumers and because of this it has a huge market penetration of almost 83% in the country. Consumers trust the brand and particularly Dettol antiseptic liquid hugely and because of this there has not been much change in its positioning or overall strategy since its launch. Some of the small changes that RBIL has done with Dettol Antiseptic are providing more SKU options at different price points so that it is affordable to a larger segment particularly in the rural areas. It has also strengthened its distribution and supply chain for the product to be available in the remotest of the villages. Also, Dettol antiseptic liquid is now being endorsed by the NIMA(National Integrated Medical Association) which increases the trust factor of the consumer in brand. For the Dettol soap range, the company RBIL changed its overall strategy in order to reach to wider consumer base and increase its revenue by launching three new variants of the soap, each targeted to the particular segment as already discussed above. In addition, it rebranded its original Dettol soap as not only a germ killer but also a beauty soap with germ killing and antiseptic properties there by tackling a head on competition with brands like Lux, Santoor, Lifebuoy and Hammam whereas all these mentioned brands with the exception of lifebuoy were only beauty soap and had no germ killing properties and lifebuoy was essentially a germ killing soap targeting in rural areas with no skincare properties Dettol tried to win over both the segments of skincare and hygiene by introducing the soap which has both the properties. Distribution Strategy RBIL’s distribution strategy is similar to other FMCG companies operating in the country. The Dettol products are first shipped form the manufacturing plants to a central/mother warehouses spread strategically across the country from these mother warehouses the product is shipped to wholesalers across the country to further distribute the product to over 1.6 million retail outlets in the nation and from it reaches to the end consumer. Manufacturer: It is the central location from where Dettol Antiseptic Liquid, Soap, kitchen gel and all other products of Dettol are manufactured in different SKU’s and shipped to Mother/Central warehouses usually by using surface transport. Central/Mother Warehouses: It’s a central location with proximity from major markets of Dettol where the Dettol products that come from the manufacturer are first stored. The central/ Mother warehouses are essentially huge storage depots but are less in number. They are either operated by the company itself or by the C&F (Carry and Forwarding Agents). Dettol Products from here are further distributed to various wholesalers across the country. Distributor/Wholesaler: Is a company approved agent who stores the various Dettol products in his warehouse and is responsible for further distribution to the retail outlets as per the current industry standards these distributors make a margin of 35% on RBIL products. Each distributor/wholesaler has a particular route/service area plan for which he/she is responsible for the service for the retailers on that particular route. Retailer: Usually make a margin of about 8-10% on the Dettol products and they are the first point of contact for the end customer. They are over 1.6 million retail outlets from which the product is available. Consumer: The end user gets the product from the retailer based on location and availability at the retailer. Summary regarding the future directions for the brand RBIL’s Flagship brand Dettol has a high penetration in the country and is also synonymous with first-aid emergency in the country. The brand enjoys very high brand record among the customers and it is available in both urban and rural areas quite easily. Though the competitors like suthol and savlon present in the market but the Dettol enjoys virtual monopoly over its competitors primarily because of stable and popular pricing and extensive distribution network. RBIL further in a bid to increase its target segment has extended its brand portfolio which now includes dettol shaving cream, no touch hand sanitizer, the Dettol Kitchen Gel all of which borrow heavily from the original brand projection which was that of an effective germ killer. Though everything seems to going good for RBIL’s flagship brand the fundamental question of whether the unwavering brand loyalty of customers to Dettol is because of its perception of safety and trust on the brand or is it because of the fact that there is no other viable alternative available in the market other than savlon still remains . References: https://www.rb.com http://www.dettol.co.in/ http://www.digitalimpulse.in/ http://articles.economictimes.indiatimes.com/ http://www.business-standard.com/ http://wikipedia.com http://www.marketline.com http://www.timesofindia.com