Marketing Analysis for Reckitt Benckister's Expansion into Food Market

The report involves the analysis of an organisation's market share, market size and trends in the market that affects its overall marketing. There is an analysis of the company that is willing to expand its market across new fields and what would be its target area and who would be its potential customers.

Principles of
Marketing

EXECUTIVE SUMMARY
The report involves the analysis of an organisation's market share, market size and trends
in the market that affects its overall marketing. There is an analysis of the company that is
willing to expand its market across new fields and what would be its target area and who would
be its potential customers. There is also an explanation of various definitions and concepts of
brand extension and ways by which the company could enter in new market segment.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Existing Brand and Brand Values with the use of Kapferer's Brand Identity Prism..............1
Description of Target Market through STP Analysis.............................................................1
Analysis of New Market, Including Trends using PESTLE Analysis...................................2
An Expansion of New Product (Tauber's Brand Extension Options)....................................3
Competition (Porter's Five Forces).........................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES ...............................................................................................................................5

INTRODUCTION
Marketing is a very important function that is pervasive throughout all the organisations.
Reckitt Benckister is a British multinational consumer goods company, established in the
year1814 and headquartered at Slough, England. The report will cover an analysis of the
potential customers and market of the particular segment in which the company wants to enter.
The report will also identify the market and competition for the specific segment where the
company wants to expand.
MAIN BODY
Reckitt Benckister is willing to expand its segment into the eatables and daily use food
items, therefore an analysis of the brand and its new market segment is explained.
Existing Brand and Brand Values with the use of Kapferer's Brand Identity Prism
Kapferer's Brand Identity Prism is a structure that compose the brand identity with its
physical elements, relationship, culture, personality, reflection and self image (Abolmasom and
et. al., 2021). Kaffers Brand Identity prism of Reckitt Benckister is as follows:
 Physique: Iconic Pink colour logo with its products in health, hygiene and home cleaning
products.
 Personality: Genuine, hygienic, reliable and clean
 Relationship: Sharing health, hygiene and cleanliness
 Culture: Based on the cleanliness, health and hygiene habits of people
 Reflection: People who need safe, clean and hygienic homes
 Self Image: Clean, reliable, authentic and shiny
Description of Target Market through STP Analysis
STP analysis refers to segmenting, targeting and positioning of the products in the market
so that maximum number of customers could buy the products and maximum market area could
be covered (Altinay and Arici, 2021). STP of Reckitt Benckister into the food market sector is as
follows:
 Segmenting: Segmenting refers to the choosing the customers based on various
demographic factors to cover the market (Hay, Eagle and Bhati, 2020). The segmenting
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of the food products of the Reckitt Benckister would include the customers of all income
group and of every age.
 Targeting: The target customers would mainly include mostly the females (housewives)
ageing above 25 years who are the care takers of the houses and main customers of the
RB group.
 Positioning: The company's products would be placed across the market across UK along
with the products of the company which are already marketed. The places of positioning
would include all the small-big shops such as superstores, retail shops, grocery and online
stores.
Analysis of New Market, Including Trends using PESTLE Analysis
PESTLE Analysis is an effective tool that is used by the companies to analyse the market
environment of the economy (MacKenzie, 2021). The PESTLE analysis of Reckitt Benckister
products are given below:
 Political: These factors plays a significant role in determining the factors that can impact
the Reckitt Benckister in operating its activities across various countries. The Reckitt
Benckister is operating its activities in many countries and is exposed to different types of
political risks therefore it should evaluate them to invest in new market.
 Economic: The Reckitt Benckister should focus on economic systems in countries, their
government intervention, exchange rates, market conditions, infrastructure and household
goods industry, labour costs etc.
 Social: The Reckitt Benckister should identify demographics and skill level of
population, their traditions, practices and norms, their education level, attitudes towards
health and cleanliness etc.
 Technological: The Reckitt Benckister should analyse the potential developments of
competitors in the race of technology, impacts on costs of business, rate of tech up-
gradation, etc.
 Legal: The laws regarding personal and household goods in a country, discrimination
laws, copyright, patents, intellectual property law, consumer protection, health and safety,
etc. should be followed by company.
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 Environmental: The Reckitt Benckister should study the weather, climate, laws regulating
pollution, its products and pollution by them, ecological products, renewable green
energy, etc. to enhance their products in international markets.
An Expansion of New Product (Tauber's Brand Extension Options)
Reckitt Benckister is looking towards new brand expansion route to bring a new product
in the market that will include food products of daily use such as flour, whole grains, peas and
pulses etc. The company would try to identify new areas for developing healthy and sustainable
products in this sector (Ofori, 2021). Reckitt Benckister will use the marketing of its product
with new names, as such it does with its other products.
Competition (Porter's Five Forces)
Porter's Five Forces refers to a framework of methods to analyse the competitive analysis
of a business. The Porter's Five Forces of Reckitt Benckister is given below:
 Threat of New Entrants: New entrants in food sector brings innovations, new ways of
producing things and put pressure on Reckitt Benckister group through lower pricing
strategy, reducing costs and providing value propositions.
 Threat of Substitution: When New product or service meets a similar customer needs in
the same market, the profitability of company suffers. The threat of substitute products is
high because of available and existing products in consumer food items.
 Bargaining Powers of Suppliers: Almost all the companies in Food manufacturing and
consumer goods industry buy their products from numerous suppliers (Ofori And et. al.,
2020).
 Bargaining Power of Buyers: Buyers are demanding and need quality products at
reasonable prices therefore the Reckitt Benckister needs to face their high powers in
manipulating the costs of the products.
 Rivalry among Competitors: The competitors are intense in existing food and consumer
goods industry, and it could impact the pricing policy of the company and overall
profitability.
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CONCLUSION
The report had been explaining the expansion of a company by introducing a new product
in a market segment. For this purpose the report had been explaining the existing brand and
brand values with the help of Kapfer's Brand Identity Prism. Further, the report had been
analysing about the target customers and the market for expanding a new product segment with
the help of STP analysis and PESTLE framework. Moreover, the report had been identifying the
competition into the market, and explanation of New product with the help of Tauber's Brand
Extension Options.
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REFERENCES
Books and Journals
Abolmasom, M. and et. al., 2021. Smart Marketing Model in the Development of Handicraft
Investment Companies. Islamic Art Studies, 17(40).
Altinay, L. and Arici, H.E., 2021. Transformation of the hospitality services marketing structure:
a chaos theory perspective. Journal of Services Marketing.
Hay, R., Eagle, L. and Bhati, A., 2020. Broadening Cultural Horizons in Social Marketing.
MacKenzie, L., 2021. Using Web Site Scraping To Match United States Virgin Island
Employers’ Job Skill Requirements With Marketing Curriculum and Course
Development at the University of the Virgin Islands. Available at SSRN 3787083.
Ofori, D., 2021. Opportunities and Challenges of Green Marketing. In Green Marketing in
Emerging Markets (pp. 251-276). Palgrave Macmillan, Cham.
Ofori, W.O. And et. al., 2020. Marketing intangibles: the case of library services in higher
education institutions. Library Hi Tech News.
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