Reckitt Benckiser
Global Business
Presentation
June 2002
Outline
• The Company
• Organisational structure
• Vision and strategies
• Case studies
Reckitt Benckiser - The Company
• Listed on London Stock Exchange
• Included in FTSE 100 index
• Current market capitalisation of £7.9b
(share price @ £ 12.50)
• Profit & Loss statements reported in
Pounds Sterling
– Sales (net revenue) = £3.5b
– Operating Profit = £525m
– Net income = £340m
History
• Reckitt Benckiser has a diverse history
spanning about 200 years
• From humble beginnings it has expanded into
the world’s No.1 in household cleaning
• A short summary of the company history is
available here:
or from the official website:
www.reckittbenckiser.com
Global Business
• Approximately 23 000 employees globally
• Offices in about 60 countries
• 52 manufacturing centres in 35 countries
• Sells products into about 180 different
countries globally
• Consumers are familiar with our products &
brands but know little about our company
Over 9 million of our
products are sold everyday
Reckitt Benckiser Global Offices
60 countries
Reckitt Benckiser Countries with
Local Factories
52 manufacturing centres in 35 countries
Organisational Structure
- Major Functions
• Area Management
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Sales
Finance
Human Resources
Information Services
• Supply Organisation
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Procurement
Production
Logistics
Distribution
• Category Development
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Marketing
Research & Development
Media
Market Research
Area Management (Operating Regions)
• RB is classified into 3 global regions:
• Western Europe
• The Americas / Australia / New Zealand
• Rest of World
Reckitt Benckiser - Global regions
Western Europe
RoW
The Americas/ANZ
Reckitt Benckiser - Major Competitors
– Procter & Gamble
(USA)
– Unilever (UK &
Netherlands)
– Colgate Palmolive
(USA)
– The Clorox Company
(USA)
– Henkel (Germany)
– Dial Corporation
(USA)
– SC Johnson & Sons
(USA)
– Bayer (Germany)
– Sara Lee (USA)
World No.1 in Household Cleaning
Net Revenues $bn from
Household Cleaning Products *
4
3
2
1
0
Reckitt
Unilever
Benckiser
P&G
Colgate
Clorox
* Excluding laundry detergents
Source: Company reports, industry and brokers reports, latest available data
Company Vision
“Reckitt Benckiser is about passionately
delivering better solutions in household
cleaning and health & personal care to
customers and consumers, wherever they
may be, for the ultimate purpose of
creating shareholder value.”
This vision defines both our purpose and our
values as a company.
Reckitt Benckiser - Core Strategies
• Reckitt Benckiser’s objective is to generate
above industry average profitable growth, by:
– Focusing on the 5 growing core categories
– Building on our brand positions through continuous
innovations and investment
– Geographic portfolio expansion
– Selective add-on acquisitions
– Margin enhancement and cash flow improvement to
fund reinvestment in core brands and profit growth
Competitive advantage
• “Globally local” approach
• Combines swift day to day decision making
with action
• Clear responsibility of area / local management
• Clear framework set by global categories and
functions
Competitive edge
• Aim to have products at # 1 or # 2 in markets in
which we operate
• Strong global brand heritage and brand loyalty
• Innovation / 1st to market / speed to market /
quality of delivery
• Constant stream of New Product Development
and Existing Product enhancements
Competitive edge (cont)
• Understanding of consumer attitudes to gain
consumer insights into their needs
• Good R&D investment to provide technical
support, new technologies, sharing know-how
across the business
• Intellectual property protection
• Good management with strategic planning on
direction
Competitive edge (cont)
• Efficient use of available resources prioritisation
• Operational efficiencies
• Emphasis on cost control
• Strong economies of scale and purchasing
power
Recent Global Acquisitions
• Company has strong history of
acquisitions
• Current company resulted from merger of
Reckitt & Colman with Benckiser in 1999
• Recently:
• Tiga Roda (Indonesia) acquisition in 2001
• Oxy Chemicals (Korea) acquisition in 2001
Management Responsibility in a Global
Environment
• Strictly observe all laws & regulations
applicable in the conduct of business
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taxes
social security
operations
employment conditions
occupational health & safety
fair trade practices
intellectual property
• Ensure ethical business practices
Management Responsibility in a Global
Environment
• Community involvement - India, South America,
South Africa, USA, Australia (“Community News”)
• Community & Ethical Responsibility Policies
include:
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Code of Business Conduct
Environmental policy
Animal Testing
Product Safety
Health & Safety
Crisis Management
Community Involvement
Reckitt Benckiser - Product Categories
• 5 core categories
– Fabric Care
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Surface Care
Dishwashing
Health & Personal Care
Home Care
• account for 86% of total company net revenue
Reckitt Benckiser Global Category R&D
Laboratories
Pharmaceuticals & Home Care
Auto - Dishwash
Surface
Care
Fabric
Care
Pest Control
Core Category Breakdown
Fabric Care
Surface Care
fabric treatment, fabric & water softeners,
detergents
disinfectants, lavatory, general
purpose, specialty, polishes & waxes
Napisan, Calgon, Woolite, Spray’n
Wash, Vanish, Dosia, Resolve,
Oxyclean
Pine O Cleen, Harpic, Lysol, Easy
Off, Brasso, Mr Sheen, Resolve,
Veja, Sagrotan, Old English,
O’Cedar
Dishwashing
Finish, Calgonit, Electrosol,
Jet Dry
Health & Personal Care
antiseptics, depilatories, analgesics,
cold/flu, gastrointestinal
Dettol, Disprin, Veet, Lemsip,
Steradent, Gaviscon, Fybogel,
Senokot, Bonjela
Home Care
air care, pest control, shoe care
Haze, Airwick, Wizard, Mortein,
Aerogard, Pif Paf, Shieldtox, d-Con,
Nugget
Reckitt Benckiser - Leading brands
Surface Care - 24 % of net revenues
Disinfectant
Lavatory Care
#1 worldwide
#2 worldwide
Fabric Care - 26 % of net revenues
Fabric Treatment
#1 worldwide
Water Softeners
#1 worldwide
Fine Fabric
#1 worldwide
Dishwashing - 13% of net revenues
Automatic Dishwashing
Note: positions calculated for the
measured worldwide markets
#1 worldwide
Reckitt Benckiser - Leading brands
(cont)
Homecare - 12% of net revenues
Air Care
#2 worldwide
Pest Control
#3 worldwide
Health & Personal Care - 12% of net revenues
Antiseptics
Depilatories
#1 worldwide
#1 worldwide
Note: positions calculated for the measured worldwide markets
Competitive
Strategies
• Innovation
• Product rollouts
• Brand harmonisation
Innovation
• Substantial increase in
new product initiatives
in 2001
• 20% of net revenues
from new products
launched since
January 2000
• Working towards 40%
of net revenues from
new products by 2005
Vanish ActionBall Tabs
• ActionBall provides
enzymatic pre-soaker
for better stain
treatment
• Launch in UK, France,
Spain, Portugal in Q1
Further Innovation in Wipes
• Lysol Floor Wipes
• Lysol Heavy Duty
cleaning wipes
• Harpic Flushable Wipes
for toilet cleaning
Dishwashing
• Combines
convenience of 3 in 1
with cleaning power of
Powerball
• Launch across
Western Europe
Air Care
• Crystal Air for Cars Launched in Western
Europe
• Click Spray success - rolled out all across
Europe
Pest Control
• Mortein Ultra Fast
Killing Spray for
flying insects
• Outdoor Barrier
Spray
Brand Management
One global visual identity
Brand Management
Global brand harmonisation
Intellectual Property
We have to protect all our knowledge & innovation
We use patent attorneys locally and internationally
to provide legal support for:
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Patents
Design registration
Trademarks, logos and brands
Checks of existing intellectual property and
possible infringements
This is one of our competitive strategies
Internet-based information
• Information about Reckitt Benckiser, its
operations, products, annual reports,
announcements, etc are available on the
official company web site:
www.reckittbenckiser.com
Case Studies
Case Study 1:
Globalisation of the Mortein Brand
• Pack Graphics progression to laser beam graphics
• Insect Seeking Flyspray example of Product
Harmonisation
• Globalisation of Louie the Fly in marketing strategy
from Australia (local) to global markets (ie Latam
Middle East etc)
Globalisation of Laser Beam Graphics
The Mortein Brand Globally
Australia
Bangladesh
Singapore
Malaysia
Eastern Europe
Hungary
South Africa
Globalisation of Louie the Fly
Louie the Fly - Early advertisement ~ 1960s
Louie the Fly - mid to late 1980’s
Louie the Fly - Globalisation into Middle East
Case Study 2
Insect Seeking Flyspray
Insect Seeking Flyspray
The Product Development Process
Concept
Development Brief
Development and Testing
Formulation
Packaging
Patenting
Product
Launch
Roll-out
Insect Seeking Flyspray: Concept
• Market research
• Consumer need identified
• Suitable available technology electrostatics ie. Sprayed product targets
just insects based on its static charge
• Brainstorming / idea generation
• Winning Product Concept:
“Mortein Fly and Insect Killer with Insect
Seeking technology - safer for people, but
deadly for flying insects.”
Insect Seeking Flyspray: Brief
Input of information from business functions
• Marketing strategy
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Countries of launch
Financial analysis
Trade strategy
Supply / Purchasing chain
R & D info
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Required resources
Regulatory / Safety requirements
Specify claims
Price
Type of Packaging
Formula
Development Brief
Insect Seeking Flyspray: Development
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Electrostatics optimisation
Product Performance - knockdown and kill
Benchmarking against competitors
Stability of formula for 2 or 3 years min
– study the product for many years
– degradation
• Compatibility of formula with aerosol cans
– corrosion, dissolving, leaking
• Product safety testing
• Regulatory / legal requirements - registration
Insect Seeking Flyspray:
Development (cont)
• Packaging materials are important for the
product
• Artwork & brand name
• Transport & warehouse tested
• Applied for international Patent protection of our
intellectual property (our strategy to be No 1)
Insect Seeking Flyspray: Launch
• Manufacturing - build up stock in
warehouses
• Final trade briefing about a new product
• Final advertising plan
• Launched in Australia 1999
• Ongoing advertising, marketing and
selling
• Tracking of sales, market share and
consumer feedback
Launch Brief
Insect Seeking Flyspray: Roll-Out
• Harmonised graphics, cans, brand names (Mortein,
Shieldtox, Doom, Neocid, Pif Paf)
• Marketed in more than 40 countries:
– ANZ
(Australia, New Zealand, Fiji, PNG)
– Africa Middle East
(S.Africa, Kenya, Middle East- UAE, Kuwait, Jordan, Tunisia,
Libya, Jordan, Pakistan)
– E.Europe
(Russia, Lithuania, Estonia, Latvia, Czech Republic, Slovak Republic,
Hungary, Croatia, Bulgaria, Yugoslavia, Ukraine)
– W.Europe
(Spain, Switzerland, France)
– Latin America
– East Asia
(Argentina, Brazil, Chile, Mexico, Colombia, Venezuela)
(China, Philippines, Indonesia,Malaysia, Singapore, Hong Kong, S. Korea,
Thailand)
– South Asia
(Sri Lanka, Bangladesh)
Insect Seeking - More information
• More information regarding Insect Seeking
Technology can be found at:
www.mortein.com.au/insect_seeking.html
• Further information regarding Louie the Fly,
Mortein products and their uses can be
found at:
www.mortein.com.au
Louie the Fly - Insect seeking technology 2001