Impact of Sustainability on FMCG Supply Chains
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AI Summary
This assignment delves into the crucial role of sustainability within Fast-Moving Consumer Goods (FMCG) supply chains. It explores various initiatives undertaken by FMCG companies to reduce their environmental footprint, enhance social responsibility, and promote ethical sourcing practices. The analysis considers the impact of consumer demand for sustainable products, government regulations, and stakeholder pressures on shaping supply chain strategies. Moreover, it investigates the challenges and opportunities associated with implementing sustainable practices across different stages of the supply chain.
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Running head: STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Strategy and Business Development Plan of Reckitt Benckiser
Name of the Student:
Name of the University:
Author’s Note:
Strategy and Business Development Plan of Reckitt Benckiser
Name of the Student:
Name of the University:
Author’s Note:
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1
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Executive Summary
This paper has been constructed in order to have an idea about the operational plan of Reckitt
Benckiser and the activities that have been taken in order to have an idea about the business
process that has been undertaken and the issues they have faced and the plans and policies that
they have undertaken in order to mitigate the issues and improve their business functions. The
various activities that have been undertaken by the company in their current operational activity
have been explained and the positive and the negative aspect of the company have even been
explained. The paper has even looked to make a comparison of the companies that manufacture
similar products and the measures that have been taken in order to make their business a better
one.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Executive Summary
This paper has been constructed in order to have an idea about the operational plan of Reckitt
Benckiser and the activities that have been taken in order to have an idea about the business
process that has been undertaken and the issues they have faced and the plans and policies that
they have undertaken in order to mitigate the issues and improve their business functions. The
various activities that have been undertaken by the company in their current operational activity
have been explained and the positive and the negative aspect of the company have even been
explained. The paper has even looked to make a comparison of the companies that manufacture
similar products and the measures that have been taken in order to make their business a better
one.
2
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Table of Contents
Introduction......................................................................................................................................6
Business Case Study........................................................................................................................8
Brands..........................................................................................................................................9
Vision of Reckitt Benckiser.........................................................................................................9
Speed of Execution....................................................................................................................10
An Obsession with the Brands...................................................................................................12
A Truly Global Company..........................................................................................................14
A Very Entrepreneurial Culture.................................................................................................15
Constructive Conflict.................................................................................................................16
Rewards.....................................................................................................................................17
Social Responsibility.................................................................................................................17
The company and its strategies......................................................................................................20
Key Stakeholders.......................................................................................................................21
Mission......................................................................................................................................24
Vision.........................................................................................................................................25
Core Values of Reckitt Benckiser..............................................................................................26
Strength and culture of the company.........................................................................................28
Strategy of Reckitt Benckiser....................................................................................................29
Organizational Culture...............................................................................................................30
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Table of Contents
Introduction......................................................................................................................................6
Business Case Study........................................................................................................................8
Brands..........................................................................................................................................9
Vision of Reckitt Benckiser.........................................................................................................9
Speed of Execution....................................................................................................................10
An Obsession with the Brands...................................................................................................12
A Truly Global Company..........................................................................................................14
A Very Entrepreneurial Culture.................................................................................................15
Constructive Conflict.................................................................................................................16
Rewards.....................................................................................................................................17
Social Responsibility.................................................................................................................17
The company and its strategies......................................................................................................20
Key Stakeholders.......................................................................................................................21
Mission......................................................................................................................................24
Vision.........................................................................................................................................25
Core Values of Reckitt Benckiser..............................................................................................26
Strength and culture of the company.........................................................................................28
Strategy of Reckitt Benckiser....................................................................................................29
Organizational Culture...............................................................................................................30
3
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Kinds of the organizational structure.........................................................................................30
Advantages of the functional structure......................................................................................33
Disadvantages............................................................................................................................33
Internal Stakeholders.................................................................................................................34
Perception of the Company.......................................................................................................36
Functional Resource areas.............................................................................................................37
Human Resource........................................................................................................................37
Policy.........................................................................................................................................39
Human Rights and Responsible Business Principles.................................................................40
Human Resource Department....................................................................................................41
Recruitment and Selection.........................................................................................................42
Training and Development........................................................................................................42
Employee Relation.....................................................................................................................42
Compensation and Benefits.......................................................................................................43
Performance Appraisal..............................................................................................................43
Policies.......................................................................................................................................43
Safety Management...................................................................................................................43
Responsibilities of the Department............................................................................................44
Financial Resources.......................................................................................................................46
Group Income Statement...........................................................................................................47
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Kinds of the organizational structure.........................................................................................30
Advantages of the functional structure......................................................................................33
Disadvantages............................................................................................................................33
Internal Stakeholders.................................................................................................................34
Perception of the Company.......................................................................................................36
Functional Resource areas.............................................................................................................37
Human Resource........................................................................................................................37
Policy.........................................................................................................................................39
Human Rights and Responsible Business Principles.................................................................40
Human Resource Department....................................................................................................41
Recruitment and Selection.........................................................................................................42
Training and Development........................................................................................................42
Employee Relation.....................................................................................................................42
Compensation and Benefits.......................................................................................................43
Performance Appraisal..............................................................................................................43
Policies.......................................................................................................................................43
Safety Management...................................................................................................................43
Responsibilities of the Department............................................................................................44
Financial Resources.......................................................................................................................46
Group Income Statement...........................................................................................................47
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STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Statement of Comprehensive Income........................................................................................48
Balance Sheet.............................................................................................................................49
Changes in the group Equity......................................................................................................50
Cash Flow Statement.................................................................................................................51
Marketing Process.........................................................................................................................53
Strategic Marketing analysis......................................................................................................54
Marketing mix planning............................................................................................................55
Marketing implementation.........................................................................................................55
Production......................................................................................................................................55
Distribution....................................................................................................................................56
Matching....................................................................................................................................57
Logistics.....................................................................................................................................57
Communication..............................................................................................................................58
Price Product and Quality Relationship.........................................................................................59
Power and Politics.........................................................................................................................60
External Analysis...........................................................................................................................61
SWOT Analysis.........................................................................................................................61
PESTLE Analysis......................................................................................................................65
Marketing Mix...........................................................................................................................66
Key Competitors........................................................................................................................68
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Statement of Comprehensive Income........................................................................................48
Balance Sheet.............................................................................................................................49
Changes in the group Equity......................................................................................................50
Cash Flow Statement.................................................................................................................51
Marketing Process.........................................................................................................................53
Strategic Marketing analysis......................................................................................................54
Marketing mix planning............................................................................................................55
Marketing implementation.........................................................................................................55
Production......................................................................................................................................55
Distribution....................................................................................................................................56
Matching....................................................................................................................................57
Logistics.....................................................................................................................................57
Communication..............................................................................................................................58
Price Product and Quality Relationship.........................................................................................59
Power and Politics.........................................................................................................................60
External Analysis...........................................................................................................................61
SWOT Analysis.........................................................................................................................61
PESTLE Analysis......................................................................................................................65
Marketing Mix...........................................................................................................................66
Key Competitors........................................................................................................................68
5
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Suppliers....................................................................................................................................69
Customers..................................................................................................................................70
Recommendation...........................................................................................................................70
Conclusion.....................................................................................................................................71
Reference List................................................................................................................................73
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Suppliers....................................................................................................................................69
Customers..................................................................................................................................70
Recommendation...........................................................................................................................70
Conclusion.....................................................................................................................................71
Reference List................................................................................................................................73
6
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Introduction
In the current competitive economy there are several organizations that are operating and
each of them have their goals and policies with the help of which they can attain their objectives
and establish themselves in the market. The strategy and the business development policies are
one of the key aims with the help of which the company is able to course their business and
thereby have a smooth operational activity for the future.
This paper has the aim of analysing the strategy and business development plan of a
company that is already existent with the help of which the company is able to run their business
and change their plans and policies according to the changing environment and market needs1.
The paper therefore, has selected Reckitt Benckiser Group Plc as the organization that would be
assessed and accordingly the business development plans and the operational activities of the
business can be understood.
Reckitt Benckiser Group Plc is a British Multinational manufacturer of consumer goods
that was established in the year 1999 in Slough in England. The company is a leading marketer
and manufacturer of hygiene and health products along with home products all over the globe.
Reckitt Benckiser Group Plc is a merger of Reckitt and Coleman Plc which is a UK based
company and Benckiser which a company that is based in Germany. The product mix of the firm
is inclusive of antiseptic brands like Dettol and other medicines like Strepsils, Veet and other
home and health products. The organization even sells hair removal and air freshener products
that is able to improve the lifestyle of the consumers and have even licensed their trademarks
with the assistance of other mediums or channels like the grocery stores along with the retail
1 Sahu, Mukesh Kumar. "Opportunities for MNC’S (FMCG Products) in Rural Market." (2016).
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Introduction
In the current competitive economy there are several organizations that are operating and
each of them have their goals and policies with the help of which they can attain their objectives
and establish themselves in the market. The strategy and the business development policies are
one of the key aims with the help of which the company is able to course their business and
thereby have a smooth operational activity for the future.
This paper has the aim of analysing the strategy and business development plan of a
company that is already existent with the help of which the company is able to run their business
and change their plans and policies according to the changing environment and market needs1.
The paper therefore, has selected Reckitt Benckiser Group Plc as the organization that would be
assessed and accordingly the business development plans and the operational activities of the
business can be understood.
Reckitt Benckiser Group Plc is a British Multinational manufacturer of consumer goods
that was established in the year 1999 in Slough in England. The company is a leading marketer
and manufacturer of hygiene and health products along with home products all over the globe.
Reckitt Benckiser Group Plc is a merger of Reckitt and Coleman Plc which is a UK based
company and Benckiser which a company that is based in Germany. The product mix of the firm
is inclusive of antiseptic brands like Dettol and other medicines like Strepsils, Veet and other
home and health products. The organization even sells hair removal and air freshener products
that is able to improve the lifestyle of the consumers and have even licensed their trademarks
with the assistance of other mediums or channels like the grocery stores along with the retail
1 Sahu, Mukesh Kumar. "Opportunities for MNC’S (FMCG Products) in Rural Market." (2016).
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7
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
outlets and departmental outlets. The organization even market and advertises their mix of
product by making the consumers aware about the significance of hygiene in one’s personal life
and how maintenance of health and hygiene is able to improve the lifestyle and growth of an
individual2. The company has extensive level of total revenue and the company is looking to
increase their sales by making use of the innovative and new kinds of tools and strategies.
Reckitt and Benckiser generally competes and functions in the retail home and health product
industry.
The industry had experienced a significant slowdown during the year 2009 because of
the economic calamites and the transformations in the tastes of the consumers with the revenue
of the industry falling significantly. Before this crisis, this industry had a consistent growth.
However, during the current time period the industry has recovered from such crisis and has
established in the economy3. The prospect in the health and hygiene products all over the globe
has increased significantly as the population of the world is growing and every one of them
wants to lead a safe and healthy life. This has influenced various new companies to enter into
this industry and make a mark for themselves and establish themselves in the market. This has
led to the rise in the level of competition and therefore new and improved strategies and
development plans have been introduced by Reckitt and Benckiser in order to conserve their
2 Lütkenhaus, Davidson, and Marcella Nunes de Freitas. "Strategic management applied to the
Six-Sigma suitability appraisal for R&D in FMCG companies." Revista iPecege 2.1 (2016): 80-
99.
3 Truong, Yann, et al. "Branding strategies for high-technology products: The effects of
consumer and product innovativeness." Journal of Business Research 70 (2017): 85-91.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
outlets and departmental outlets. The organization even market and advertises their mix of
product by making the consumers aware about the significance of hygiene in one’s personal life
and how maintenance of health and hygiene is able to improve the lifestyle and growth of an
individual2. The company has extensive level of total revenue and the company is looking to
increase their sales by making use of the innovative and new kinds of tools and strategies.
Reckitt and Benckiser generally competes and functions in the retail home and health product
industry.
The industry had experienced a significant slowdown during the year 2009 because of
the economic calamites and the transformations in the tastes of the consumers with the revenue
of the industry falling significantly. Before this crisis, this industry had a consistent growth.
However, during the current time period the industry has recovered from such crisis and has
established in the economy3. The prospect in the health and hygiene products all over the globe
has increased significantly as the population of the world is growing and every one of them
wants to lead a safe and healthy life. This has influenced various new companies to enter into
this industry and make a mark for themselves and establish themselves in the market. This has
led to the rise in the level of competition and therefore new and improved strategies and
development plans have been introduced by Reckitt and Benckiser in order to conserve their
2 Lütkenhaus, Davidson, and Marcella Nunes de Freitas. "Strategic management applied to the
Six-Sigma suitability appraisal for R&D in FMCG companies." Revista iPecege 2.1 (2016): 80-
99.
3 Truong, Yann, et al. "Branding strategies for high-technology products: The effects of
consumer and product innovativeness." Journal of Business Research 70 (2017): 85-91.
8
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
market and maintain their share in the economy. The next sections of the paper would therefore
assess the strategies and the business development plans for Reckitt Benckiser in various areas of
operations and thereby having an understanding of the development of the business.
Business Case Study
In the modern economy, health and hygiene has one of the key concerns for the
consumers and they take various initiatives with the help of which they have a safer and healthier
lifestyle. In accordance to this issue, Reckitt Benckiser is one of the organization that is directly
associated with manufacturing products that are health and safety related. The company even
manufactures daily healthcare and household products as well.
The main issue that comes in the mind of the consumers is getting to know about the
company “Reckitt Benckiser”. Most of the consumers are not aware of the organization, even
though the consumers are well aware of the products they manufacture like Dettol, Finish,
Vanish, Durex Air Wick, Strepsils etc. The company is well known to the consumers with the
help of their products. The products are mainly household products that are generally seen in the
kitchens, medicine cabinets and bathrooms. The company is a young boy in the global market as
it is only ten years old and the company is an outcome of the merger that took place among the
English company Reckitt and Coleman the German company Benckiser. It is a global
organization that has more than 40,000 employees who are functioning in over 60 nations all
over the globe and selling more than 200 products. The company during the time of merger had a
company valuation of £ 3 bn and in the current time period the company has a valuation of £
8.45 bn as the company has been able to over perform their worldwide competitors in the current
year. There has been an observation that the net revenue on the sales growth has an increased
single digit and a double digit development in the net profit each year from the beginning of the
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
market and maintain their share in the economy. The next sections of the paper would therefore
assess the strategies and the business development plans for Reckitt Benckiser in various areas of
operations and thereby having an understanding of the development of the business.
Business Case Study
In the modern economy, health and hygiene has one of the key concerns for the
consumers and they take various initiatives with the help of which they have a safer and healthier
lifestyle. In accordance to this issue, Reckitt Benckiser is one of the organization that is directly
associated with manufacturing products that are health and safety related. The company even
manufactures daily healthcare and household products as well.
The main issue that comes in the mind of the consumers is getting to know about the
company “Reckitt Benckiser”. Most of the consumers are not aware of the organization, even
though the consumers are well aware of the products they manufacture like Dettol, Finish,
Vanish, Durex Air Wick, Strepsils etc. The company is well known to the consumers with the
help of their products. The products are mainly household products that are generally seen in the
kitchens, medicine cabinets and bathrooms. The company is a young boy in the global market as
it is only ten years old and the company is an outcome of the merger that took place among the
English company Reckitt and Coleman the German company Benckiser. It is a global
organization that has more than 40,000 employees who are functioning in over 60 nations all
over the globe and selling more than 200 products. The company during the time of merger had a
company valuation of £ 3 bn and in the current time period the company has a valuation of £
8.45 bn as the company has been able to over perform their worldwide competitors in the current
year. There has been an observation that the net revenue on the sales growth has an increased
single digit and a double digit development in the net profit each year from the beginning of the
9
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
year 1999. In the year 2010, the growth came to 6% and the value increased to 17% in the year
2016. The market capitalisation of Reckitt Benckiser has even magnified during the past ten
years and the value has come to £ 20 bn. It is due to this success that the company has been able
to rise from being in the bottom 25 of the FTSE to becoming a company that is places at the top
25 in the current time period.
Brands
The business of the company has moved ahead with the assistance of nineteen power
brands that comprises of all the categories that have positive and good prospective of reaching
the global consumers and the market.
These sources are assisted by a portfolio of effective, local brands and even the leaders in
their own markets like for instance in United Kingdom which is inclusive of the brands like the
E45, Lemsip and Optrex.
Vision of Reckitt Benckiser
The business of Reckitt Benckiser is very lucid and clear and their aim has been to
enhance and improve the lifestyle of every individual with effective deliverance of effective
solutions that can actually make a huge mark and difference4. This explains that the ongoing and
the current commitment towards the progress for sustainable and constant innovation. In this
scenario, specifically one-third of the global net sales of Reckitt Benckiser has been from the
products that have been launched in the past three years. However, there are other characteristics
4 Choudhary, Pooja, and Saad Bin Hamid. "STUDY ON STRATEGIC COST MANAGEMENT
IN FAST MOVING CONSUMER GOODS COMPANY." Journal of Commerce & Accounting
Research 6.2 (2017).
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
year 1999. In the year 2010, the growth came to 6% and the value increased to 17% in the year
2016. The market capitalisation of Reckitt Benckiser has even magnified during the past ten
years and the value has come to £ 20 bn. It is due to this success that the company has been able
to rise from being in the bottom 25 of the FTSE to becoming a company that is places at the top
25 in the current time period.
Brands
The business of the company has moved ahead with the assistance of nineteen power
brands that comprises of all the categories that have positive and good prospective of reaching
the global consumers and the market.
These sources are assisted by a portfolio of effective, local brands and even the leaders in
their own markets like for instance in United Kingdom which is inclusive of the brands like the
E45, Lemsip and Optrex.
Vision of Reckitt Benckiser
The business of Reckitt Benckiser is very lucid and clear and their aim has been to
enhance and improve the lifestyle of every individual with effective deliverance of effective
solutions that can actually make a huge mark and difference4. This explains that the ongoing and
the current commitment towards the progress for sustainable and constant innovation. In this
scenario, specifically one-third of the global net sales of Reckitt Benckiser has been from the
products that have been launched in the past three years. However, there are other characteristics
4 Choudhary, Pooja, and Saad Bin Hamid. "STUDY ON STRATEGIC COST MANAGEMENT
IN FAST MOVING CONSUMER GOODS COMPANY." Journal of Commerce & Accounting
Research 6.2 (2017).
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STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
as well in regards to the culture of Reckitt Benckiser that is existent behind their success and
make the business of the organization way more different from various other organizations.
Speed of Execution
Reckitt Benckiser can be smaller than most of their key competitors but it has a culture
which is reliant in the rapidity of thought, execution and decision making process and this has
been due to this factor that has made the company even more successful. This is accomplished
partly due to a very flat and basic management framework and even because of “can do” culture
and association of Reckitt Benckiser and even the entrepreneurial spirit discovered at each and
every extent. A precise instance of how rapidly the company is able to move ahead is seen in the
scenario of Air Wick air freshener product that is even known as Freshmatic.
In the year 2004, the company is even the leader in the air care product in United
Kingdom, the company has been able to realise that a huge extent of innovation was undertaking
in the market and in order to be ahead of their rival companies, Reckitt Benckiser required to
undertake an actual step transition. The biggest section in this section was the general aerosol
that is generally sprayed all the time. However, the the limitation of the product was that after
certain minutes the fragrance would disappear and one cannot have the smell anymore. Hence, a
scope for the development of such a product is possible with the help of which one would be able
to deliver the beautiful fragrance in a sustainable manner5.
5 Nowak, Magdalena. "The Development of Cooperation in FMCG Retail Chains with Selected
Suppliers of Own Brand Products from the Perspective of the TCT." KNOWLEDGE ECONOMY
SOCIETY (2015): 45.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
as well in regards to the culture of Reckitt Benckiser that is existent behind their success and
make the business of the organization way more different from various other organizations.
Speed of Execution
Reckitt Benckiser can be smaller than most of their key competitors but it has a culture
which is reliant in the rapidity of thought, execution and decision making process and this has
been due to this factor that has made the company even more successful. This is accomplished
partly due to a very flat and basic management framework and even because of “can do” culture
and association of Reckitt Benckiser and even the entrepreneurial spirit discovered at each and
every extent. A precise instance of how rapidly the company is able to move ahead is seen in the
scenario of Air Wick air freshener product that is even known as Freshmatic.
In the year 2004, the company is even the leader in the air care product in United
Kingdom, the company has been able to realise that a huge extent of innovation was undertaking
in the market and in order to be ahead of their rival companies, Reckitt Benckiser required to
undertake an actual step transition. The biggest section in this section was the general aerosol
that is generally sprayed all the time. However, the the limitation of the product was that after
certain minutes the fragrance would disappear and one cannot have the smell anymore. Hence, a
scope for the development of such a product is possible with the help of which one would be able
to deliver the beautiful fragrance in a sustainable manner5.
5 Nowak, Magdalena. "The Development of Cooperation in FMCG Retail Chains with Selected
Suppliers of Own Brand Products from the Perspective of the TCT." KNOWLEDGE ECONOMY
SOCIETY (2015): 45.
11
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
The company has looked into the kind of the air fresheners that are generally existent in
the public bathrooms and thereby construct a consumer market concept.
The significant point that is present, conversely, is the level of swiftness the whole
Freshmatic project was attained. It has taken only a small time period of around 8 months from
the scenario, when the product was examined and the concept with the consumers to the scenario
when the product was established in the market of United Kingdom. This is not only inclusive of
the requirement to construct a factory in China but even added an entirely innovative and new
technical aspect to the products. The company had to deal with the cables, wires and batteries,
which was a manufacturing process that was complex and new.
The company incorporated their first Fresh-Matic commodity in United Kingdom in the
year 2004 and after 12 months, the product was able to be rolled out in more than sixty nations.
But being Reckitt Benckiser, the company did not cease their operations there but consequently
there have been frequent innovations to the product that is inclusive of the incorporations of the
world’s first air freshener that had motion sensor attached with it. The most significant thing is
that after the consumer need had been rectified and the idea of the product constructed was
undertaken in a rapid manner. Reckitt Benckiser has created an entirely new market structure.
This section now is a representative of approximately 15% of the worldwide sales all the air
fresheners. The business of Reckitt Benckiser has various worldwide power brands in the
sections that have effective development prospective and universal reach.
An Obsession with the Brands
The core aspect of Reckitt Benckiser is marketing. The employees who have been
functioning in the business has a love and is very much excited about the brands manufactured
by Reckitt Benckiser. The employees are very much obsessed with the products manufactured by
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
The company has looked into the kind of the air fresheners that are generally existent in
the public bathrooms and thereby construct a consumer market concept.
The significant point that is present, conversely, is the level of swiftness the whole
Freshmatic project was attained. It has taken only a small time period of around 8 months from
the scenario, when the product was examined and the concept with the consumers to the scenario
when the product was established in the market of United Kingdom. This is not only inclusive of
the requirement to construct a factory in China but even added an entirely innovative and new
technical aspect to the products. The company had to deal with the cables, wires and batteries,
which was a manufacturing process that was complex and new.
The company incorporated their first Fresh-Matic commodity in United Kingdom in the
year 2004 and after 12 months, the product was able to be rolled out in more than sixty nations.
But being Reckitt Benckiser, the company did not cease their operations there but consequently
there have been frequent innovations to the product that is inclusive of the incorporations of the
world’s first air freshener that had motion sensor attached with it. The most significant thing is
that after the consumer need had been rectified and the idea of the product constructed was
undertaken in a rapid manner. Reckitt Benckiser has created an entirely new market structure.
This section now is a representative of approximately 15% of the worldwide sales all the air
fresheners. The business of Reckitt Benckiser has various worldwide power brands in the
sections that have effective development prospective and universal reach.
An Obsession with the Brands
The core aspect of Reckitt Benckiser is marketing. The employees who have been
functioning in the business has a love and is very much excited about the brands manufactured
by Reckitt Benckiser. The employees are very much obsessed with the products manufactured by
12
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
the firm. The company has the idea and the belief of maintaining a very increased level of
investments in marketing even in scenarios when the company is facing a downturn6.
The company has a belief that they must sustain to communicate with their consumers.
This is like a friendship. For instance, when one ceases to talk with their friends, the level of
friendship becomes weaker and permits the room for a new friendship and relationships and
specifically no one wants that to occur. The objective of Reckitt Benckiser has been to improve
and strengthen their friendship with the consumers and the customers every day. In this aspect,
the company had undertaken an investment of 11% of the net revenue in the media itself and
when the other expenses in the rest of the marketing mix are added in, then the level of
investment becomes distinctively higher. On the contrary to any other organization, this value
has increased year after year leaving apart the economy. There was a rise in the cost towards the
media in the previous year in accordance to the the past year itself. It has been explained by the
fact that in United Kingdom, Reckitt Benckiser is within the top ten overall advertisers and is the
third largest advertiser in television. Very few individuals would have expectations for a firm
with the size of Reckitt Benckiser to be one of the largest television advertiser in United
Kingdom, but it highlights the fact that our fascinations for the brands is matched by a stable
investment in marketing and media.
Reckitt Benckiser is rapidly becoming a key investor in the digital investment where
Reckitt Benckiser is pushing forward the boundaries of the market. For instance, at the end of the
6 Vomberg, Arnd, Christian Homburg, and Torsten Bornemann. "Talented people and strong
brands: The contribution of human capital and brand equity to firm value." Strategic
Management Journal 36.13 (2015): 2122-2131.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
the firm. The company has the idea and the belief of maintaining a very increased level of
investments in marketing even in scenarios when the company is facing a downturn6.
The company has a belief that they must sustain to communicate with their consumers.
This is like a friendship. For instance, when one ceases to talk with their friends, the level of
friendship becomes weaker and permits the room for a new friendship and relationships and
specifically no one wants that to occur. The objective of Reckitt Benckiser has been to improve
and strengthen their friendship with the consumers and the customers every day. In this aspect,
the company had undertaken an investment of 11% of the net revenue in the media itself and
when the other expenses in the rest of the marketing mix are added in, then the level of
investment becomes distinctively higher. On the contrary to any other organization, this value
has increased year after year leaving apart the economy. There was a rise in the cost towards the
media in the previous year in accordance to the the past year itself. It has been explained by the
fact that in United Kingdom, Reckitt Benckiser is within the top ten overall advertisers and is the
third largest advertiser in television. Very few individuals would have expectations for a firm
with the size of Reckitt Benckiser to be one of the largest television advertiser in United
Kingdom, but it highlights the fact that our fascinations for the brands is matched by a stable
investment in marketing and media.
Reckitt Benckiser is rapidly becoming a key investor in the digital investment where
Reckitt Benckiser is pushing forward the boundaries of the market. For instance, at the end of the
6 Vomberg, Arnd, Christian Homburg, and Torsten Bornemann. "Talented people and strong
brands: The contribution of human capital and brand equity to firm value." Strategic
Management Journal 36.13 (2015): 2122-2131.
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13
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
year 2010 in United Kingdom, Reckitt Benckiser incorporated an application with I-Phone for
Nurofen, which is the first for any sort healthcare brand. The company has even incorporated a
Facebook page for the purpose of interaction for Lemsip. Furthermore, even in the OTC
remedies, which is looked upon to be a more conventional sector, Reckitt Benckiser has been
making an effort to innovate themselves at all times. The organization tries to interact with the
customers in those aspects and regions where they attain their data and this transforms their
demands and requirements.
The organization has even generated two ground altering worldwide business games on
Facebook. The first Power Brands incorporated some years before is concentrated on the brands
manufactured by Reckitt Benckiser. During the initial three months, after it was incorporated, the
page had more than three million likes on this website, 161,000 active participants of the game
and have already positioned itself in the top 800 games of the entire 89,000 games that are
available in Facebook.
In the year 2011, a second game, known as the Urban Thrill positioned themselves on the
popular free running sport and is even reliant on the power brands of the firm, which was
incorporated in more than ten markets by Reckitt Benckiser that is inclusive of USA, Russia,
Brazil and UK all among the company website, Facebook and portals.
Constructed in order to generate awareness of Reckitt Benckiser to the literate people and
individuals early in the career of their business, the company wants them to know how much
entrepreneurial culture is existent and this makes the job much simple if individuals are already
have knowledge about something about the firm and are even self-selecting7. It is even one more
7 Zare, Sina. "Identifying and Prioritizing Supply Chain Management Strategic Factors Based on
Integrated BSC-AHP Approach." (2017).
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
year 2010 in United Kingdom, Reckitt Benckiser incorporated an application with I-Phone for
Nurofen, which is the first for any sort healthcare brand. The company has even incorporated a
Facebook page for the purpose of interaction for Lemsip. Furthermore, even in the OTC
remedies, which is looked upon to be a more conventional sector, Reckitt Benckiser has been
making an effort to innovate themselves at all times. The organization tries to interact with the
customers in those aspects and regions where they attain their data and this transforms their
demands and requirements.
The organization has even generated two ground altering worldwide business games on
Facebook. The first Power Brands incorporated some years before is concentrated on the brands
manufactured by Reckitt Benckiser. During the initial three months, after it was incorporated, the
page had more than three million likes on this website, 161,000 active participants of the game
and have already positioned itself in the top 800 games of the entire 89,000 games that are
available in Facebook.
In the year 2011, a second game, known as the Urban Thrill positioned themselves on the
popular free running sport and is even reliant on the power brands of the firm, which was
incorporated in more than ten markets by Reckitt Benckiser that is inclusive of USA, Russia,
Brazil and UK all among the company website, Facebook and portals.
Constructed in order to generate awareness of Reckitt Benckiser to the literate people and
individuals early in the career of their business, the company wants them to know how much
entrepreneurial culture is existent and this makes the job much simple if individuals are already
have knowledge about something about the firm and are even self-selecting7. It is even one more
7 Zare, Sina. "Identifying and Prioritizing Supply Chain Management Strategic Factors Based on
Integrated BSC-AHP Approach." (2017).
14
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
innovative process of highlighting their brands and in this scenario their culture to the customers
making use of the digital space, the significance of which has been expanding.
A Truly Global Company
An international organisation can be explained in various processes. In Reckitt Benckiser,
the management observes their employees as worldwide citizens who have been functioning for
the international economy not for the individual markets itself. For example, among the senior
functioning management team, there exists an American who controls and manages Germany, a
Belgian controlling Brazil and an Italian functioning the UK businesses etc.
Reckitt Benckiser encourage and motivate their employees to move ahead a lot due to the
fact that they have a believe that sharing of the knowledge about what works and the ones that
does not function in various nations and even making challenges to the local status quo, which is
a significant component in recipe for the success in Reckitt Benckiser.
The organization being an actually global, does not explain that everything is undertaken
a worldwide level with every nation just incorporating the core plans8. On the other hand, at
Reckitt Benckiser, their strategy and plan has been to maximise the overall benefits of being an
international player while sustaining an increased extent of involvement from the local nations.
For instance in United Kingdom, which is a leading market in various products, the
associated team has been concerned with the expansion of the most innovations, advertisement
8 Laeequddin, Mohammed, and K. Abdul Waheed. "Strategic management in cartelized
environment: case of Hisham Packaging, Dubai." Emerald Emerging Markets Case Studies6.2
(2016): 1-16.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
innovative process of highlighting their brands and in this scenario their culture to the customers
making use of the digital space, the significance of which has been expanding.
A Truly Global Company
An international organisation can be explained in various processes. In Reckitt Benckiser,
the management observes their employees as worldwide citizens who have been functioning for
the international economy not for the individual markets itself. For example, among the senior
functioning management team, there exists an American who controls and manages Germany, a
Belgian controlling Brazil and an Italian functioning the UK businesses etc.
Reckitt Benckiser encourage and motivate their employees to move ahead a lot due to the
fact that they have a believe that sharing of the knowledge about what works and the ones that
does not function in various nations and even making challenges to the local status quo, which is
a significant component in recipe for the success in Reckitt Benckiser.
The organization being an actually global, does not explain that everything is undertaken
a worldwide level with every nation just incorporating the core plans8. On the other hand, at
Reckitt Benckiser, their strategy and plan has been to maximise the overall benefits of being an
international player while sustaining an increased extent of involvement from the local nations.
For instance in United Kingdom, which is a leading market in various products, the
associated team has been concerned with the expansion of the most innovations, advertisement
8 Laeequddin, Mohammed, and K. Abdul Waheed. "Strategic management in cartelized
environment: case of Hisham Packaging, Dubai." Emerald Emerging Markets Case Studies6.2
(2016): 1-16.
15
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
campaigns and it is seen that each and every decision that is related to the strategy for their
brands.
It is observed to be a significant point of differentiation for Reckitt Benckiser in
comparison to their competitors. It permits all the advantages of the international brand
development while preserving a close relationship with the customers in various nations which is
known to be critical.
A Very Entrepreneurial Culture
The philosophy of Reckitt Benckiser has been that effective ideas arise from anywhere
and that after they have been granted, Reckitt Benckiser should provide effective assistance,
credit and responsibility from where it is deserving. A current instance of entrepreneurial
approach for the company is Brasso, which is a little can of metal polish that has been over 110
years old. This is specifically a brand that has not observed much development and innovations
in their long life. However, there have been different ideas as well, like for instance an individual
came up with an idea of developing a product of Brasso that would clean I-Pods, television
screens, phones etc. The aspect has been that success is in the requirement of an atmosphere
where the people at each level are motivated to speak up and defend and express their ideas and
views. The company encourages the ideas to flourish and furthermore needs to be understood.
Constructive Conflict
This explains that the company is not looking for consensus. The matter is about being
agile, fast and making use of the opportunities and undertaking the work that needs to be
undertaken to attain the market first9. In certain cases, it refers not looking to gain any consensus
9 Sengar, Anita, Vinay Sharma, and Rajat Agrawal. "Market development through integrating
value chains–a case of Patanjali Food and Herbal Park." Emerald Emerging Markets Case
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
campaigns and it is seen that each and every decision that is related to the strategy for their
brands.
It is observed to be a significant point of differentiation for Reckitt Benckiser in
comparison to their competitors. It permits all the advantages of the international brand
development while preserving a close relationship with the customers in various nations which is
known to be critical.
A Very Entrepreneurial Culture
The philosophy of Reckitt Benckiser has been that effective ideas arise from anywhere
and that after they have been granted, Reckitt Benckiser should provide effective assistance,
credit and responsibility from where it is deserving. A current instance of entrepreneurial
approach for the company is Brasso, which is a little can of metal polish that has been over 110
years old. This is specifically a brand that has not observed much development and innovations
in their long life. However, there have been different ideas as well, like for instance an individual
came up with an idea of developing a product of Brasso that would clean I-Pods, television
screens, phones etc. The aspect has been that success is in the requirement of an atmosphere
where the people at each level are motivated to speak up and defend and express their ideas and
views. The company encourages the ideas to flourish and furthermore needs to be understood.
Constructive Conflict
This explains that the company is not looking for consensus. The matter is about being
agile, fast and making use of the opportunities and undertaking the work that needs to be
undertaken to attain the market first9. In certain cases, it refers not looking to gain any consensus
9 Sengar, Anita, Vinay Sharma, and Rajat Agrawal. "Market development through integrating
value chains–a case of Patanjali Food and Herbal Park." Emerald Emerging Markets Case
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16
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
but influencing everybody to contribute early on and actually listening to their advices but then
someone who has the support and the courage to undertake swift decisions. This has been one of
the leadership aspect of Reckitt and Benckiser. More significantly, after one have taken the
decision, they need to have 1005 commitment of everyone associated in spite of the fact that they
have not looked for consensus. This explains that having effective debates, debates that are
heated that are being straight and direct. However, at the end, a deal requires to be put on the
table and in association the team will come to an agreement to the plan to appropriately assist it.
Rewards
Reckitt Benckiser provides responsibility and the freedom to construct new and improved
ideas from the initial stage and they even provide the prospect for a swift and rapid development
of their career.
This explains that payments that are disproportionate for the ineffective performance but
at the end, it is the overall culture of Reckitt Benckiser that motivates and attracts and maintains
the individuals here and which is motivating incredibly.
Social Responsibility
Reckitt Benckiser has a driven atmosphere but that is not applicable to their commercial
undertakings. This passion is obvious in the manner that the company looks at their
environmental and social accountabilities. In the current period, for instance, Reckitt Benckiser
had taken the zenith spot in the FTSE 350 for the carbon declaration and carbon performance
along with Royal Bank of Scotland.
Studies 7.4 (2017): 1-22.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
but influencing everybody to contribute early on and actually listening to their advices but then
someone who has the support and the courage to undertake swift decisions. This has been one of
the leadership aspect of Reckitt and Benckiser. More significantly, after one have taken the
decision, they need to have 1005 commitment of everyone associated in spite of the fact that they
have not looked for consensus. This explains that having effective debates, debates that are
heated that are being straight and direct. However, at the end, a deal requires to be put on the
table and in association the team will come to an agreement to the plan to appropriately assist it.
Rewards
Reckitt Benckiser provides responsibility and the freedom to construct new and improved
ideas from the initial stage and they even provide the prospect for a swift and rapid development
of their career.
This explains that payments that are disproportionate for the ineffective performance but
at the end, it is the overall culture of Reckitt Benckiser that motivates and attracts and maintains
the individuals here and which is motivating incredibly.
Social Responsibility
Reckitt Benckiser has a driven atmosphere but that is not applicable to their commercial
undertakings. This passion is obvious in the manner that the company looks at their
environmental and social accountabilities. In the current period, for instance, Reckitt Benckiser
had taken the zenith spot in the FTSE 350 for the carbon declaration and carbon performance
along with Royal Bank of Scotland.
Studies 7.4 (2017): 1-22.
17
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
This is a significant accomplishment for the company due to the fact that just few years
ago, the organization incorporated their very striving Carbon 20 initiative which assured a
programme decreasing the their total worldwide carbon emissions by 20% by the end of the year
2020. The company has a lucid KPIs linked with the objectives of everyone but the milestones
like this is proven if it is a target they can reach and attain.
Reckitt Benckiser is one of the essential commercial supporters of “Save the Children”.
The company has been able to raise £ 4 bn for their charity and the company has constructed a
target to gather around another £ 6 bn.
The company has even been encouraging all their teams to undertake something big and
this is inclusive of the hundreds of the employees from all over the globe at every every degree,
going to the projects and the company has been associated in providing physical assistance and
even raising cash as a section of their own global challenge of Reckitt Benckiser.
At Reckitt Benckiser, everyone at each level is accountable for and comes in whole
heartedly into the aspects they will be looking for in order to gather effective and new ways of
doing the same and this is the process that makes their operational activities way different and
unique.
Being international does not always mean that is everything has been decided previously
at the international level10. On the other hand, at Reckitt Benckiser their strategy has been to
10 Rosenbaum-Elliott, Richard, Larry Percy, and Simon Pervan. Strategic brand management.
Oxford University Press, USA, 2015.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
This is a significant accomplishment for the company due to the fact that just few years
ago, the organization incorporated their very striving Carbon 20 initiative which assured a
programme decreasing the their total worldwide carbon emissions by 20% by the end of the year
2020. The company has a lucid KPIs linked with the objectives of everyone but the milestones
like this is proven if it is a target they can reach and attain.
Reckitt Benckiser is one of the essential commercial supporters of “Save the Children”.
The company has been able to raise £ 4 bn for their charity and the company has constructed a
target to gather around another £ 6 bn.
The company has even been encouraging all their teams to undertake something big and
this is inclusive of the hundreds of the employees from all over the globe at every every degree,
going to the projects and the company has been associated in providing physical assistance and
even raising cash as a section of their own global challenge of Reckitt Benckiser.
At Reckitt Benckiser, everyone at each level is accountable for and comes in whole
heartedly into the aspects they will be looking for in order to gather effective and new ways of
doing the same and this is the process that makes their operational activities way different and
unique.
Being international does not always mean that is everything has been decided previously
at the international level10. On the other hand, at Reckitt Benckiser their strategy has been to
10 Rosenbaum-Elliott, Richard, Larry Percy, and Simon Pervan. Strategic brand management.
Oxford University Press, USA, 2015.
18
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
maximise all the advantages of a being an international player while preserving an increased
degree of the involvement from the domestic nations.
Reckitt Benckiser is looking on being associated with the consumer products as a section
of a push to demonstrate the investors their innovative mechanism that would be effective in
driving the growth. The CEO of the company discharged the recommendations that a current
failure of the product has highlighted the valuable organizations to lose their mojo for design.
The process of innovation for Reckitt Benckiser is deemed to be cultural. It is in the DNA
of the company that they have the repute for disciplined management of cost, and adding that
explained product pipeline assessments were undertaken on a monthly basis like the statement of
the profit or loss.
Reckitt Benckiser’s creative competence is under the assessment after the ineffective
market response to a $777 version of their Scholl electronic skin remover which sustained to
have an impact on the organization and contributed to their sales fall in the quarterly in the
previous month.
Even without the items which included a cyber-attack and the fall of their South Korean
business and thereby the core business of Reckitt Benckiser slowed down as well. The company
declared that the unit that comprises of the half their yearly sales after their $16.6 billion
purchase of Mead Johnson has remained strong and will take advantage from the new and
innovative products.
The Reckitt looks to start selling their new brand known as Siti in India and China and
would look to protect themselves from the air pollution coming from the outside and is even
looking to undertake the launch of a Fever Smart Temperature monitor in Australia. The product
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
maximise all the advantages of a being an international player while preserving an increased
degree of the involvement from the domestic nations.
Reckitt Benckiser is looking on being associated with the consumer products as a section
of a push to demonstrate the investors their innovative mechanism that would be effective in
driving the growth. The CEO of the company discharged the recommendations that a current
failure of the product has highlighted the valuable organizations to lose their mojo for design.
The process of innovation for Reckitt Benckiser is deemed to be cultural. It is in the DNA
of the company that they have the repute for disciplined management of cost, and adding that
explained product pipeline assessments were undertaken on a monthly basis like the statement of
the profit or loss.
Reckitt Benckiser’s creative competence is under the assessment after the ineffective
market response to a $777 version of their Scholl electronic skin remover which sustained to
have an impact on the organization and contributed to their sales fall in the quarterly in the
previous month.
Even without the items which included a cyber-attack and the fall of their South Korean
business and thereby the core business of Reckitt Benckiser slowed down as well. The company
declared that the unit that comprises of the half their yearly sales after their $16.6 billion
purchase of Mead Johnson has remained strong and will take advantage from the new and
innovative products.
The Reckitt looks to start selling their new brand known as Siti in India and China and
would look to protect themselves from the air pollution coming from the outside and is even
looking to undertake the launch of a Fever Smart Temperature monitor in Australia. The product
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19
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
consists of expensive monitors that can send in the data to the smartphones focused at prompting
the utilisation of the company products.
Siti are the face masks that has a cost of 2 pounds for everyone and is installed with a 20
pound vent that Reckitt explains that makes them perform in an effective manner than the
choices that are existent. For Fever Smart, it would comprise of a Nurofen tablet that would
lower the fever for the children.
The company has explained that the new product have greater prospects Mucinex cold
medicines and Lysol cleaners.
Reckitt Benckiser is going in deeper into the consumer health, which has been explained
as a market that Euromonitor International explains is a value of $217 billion proved by the
Mead Johnson deal and a development of a healthcare centre being constructed in Northern
England. At a value of $105 billion, the site in Hull is indicated to open in May 2018 and this is
indicated to be the biggest investment for the company till the current time period. The business
summary of Reckitt Benckiser has indicated that being a new company in the economy, the firm
is able to make a market for themselves and have established few of their products in such
manner that the consumers are not aware of the company name but are better known by their
products itself. The company has the ideology of expanding their business by bringing in new
products in the market with the help of which the company would be able to increase their
competitive edge and increase their level of revenue of the company11. In the current
11 Tibon, Maria Victoria P., and Divina M. Edralin. "SALIENCE OF STAKEHOLDERS AND
HUMANISTIC AND SUSTAINABILITY PRACTICES AMONG PHIL. FMCG
COMPANIES." ACADEMY OF STRATEGIC MANAGEMENT JOURNAL 15.2 (2016): 99.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
consists of expensive monitors that can send in the data to the smartphones focused at prompting
the utilisation of the company products.
Siti are the face masks that has a cost of 2 pounds for everyone and is installed with a 20
pound vent that Reckitt explains that makes them perform in an effective manner than the
choices that are existent. For Fever Smart, it would comprise of a Nurofen tablet that would
lower the fever for the children.
The company has explained that the new product have greater prospects Mucinex cold
medicines and Lysol cleaners.
Reckitt Benckiser is going in deeper into the consumer health, which has been explained
as a market that Euromonitor International explains is a value of $217 billion proved by the
Mead Johnson deal and a development of a healthcare centre being constructed in Northern
England. At a value of $105 billion, the site in Hull is indicated to open in May 2018 and this is
indicated to be the biggest investment for the company till the current time period. The business
summary of Reckitt Benckiser has indicated that being a new company in the economy, the firm
is able to make a market for themselves and have established few of their products in such
manner that the consumers are not aware of the company name but are better known by their
products itself. The company has the ideology of expanding their business by bringing in new
products in the market with the help of which the company would be able to increase their
competitive edge and increase their level of revenue of the company11. In the current
11 Tibon, Maria Victoria P., and Divina M. Edralin. "SALIENCE OF STAKEHOLDERS AND
HUMANISTIC AND SUSTAINABILITY PRACTICES AMONG PHIL. FMCG
COMPANIES." ACADEMY OF STRATEGIC MANAGEMENT JOURNAL 15.2 (2016): 99.
20
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
environmental scenario, there are various new and existent competitive companies functioning in
the global economy and therefore it is the role of the management of Reckitt Benckiser to
implement innovative plans and policies that can increase their market share in the global
economy.
The company and its strategies
Every organization has their own innovative plans and policies with the help of the
organizations functions in the current world. Reckitt Benckiser, like the other organizations have
their own plans and strategies with the help of which they are able to establish their products in
the market and are even able to improve their existing products in the market as well. There are
various aspects where the organization constructs their strategies and each one of them will be
explained in detail in order to have an understanding about the strategies exploited by the
organization12.
Key Stakeholders
The stakeholders are the essential associated partners with the help of which the company
is able to move forward and make a mark for themselves. The stakeholders consists of the
suppliers, shareholders and the customers. Reckitt Benckiser is a firm that totally moves on the
aspect of sustainability and the sustainability report is full of the information and the data that
explains how the strategy of sustainability also known as the better business aids their entire
business strategy. The key stakeholders of the business for Reckitt Benckiser are:
12 Chowdhury, Md. Supply chain practices on FMCG products of New Zealand Dairy Products
Bangladesh Ltd. Diss. BRAC University, 2016.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
environmental scenario, there are various new and existent competitive companies functioning in
the global economy and therefore it is the role of the management of Reckitt Benckiser to
implement innovative plans and policies that can increase their market share in the global
economy.
The company and its strategies
Every organization has their own innovative plans and policies with the help of the
organizations functions in the current world. Reckitt Benckiser, like the other organizations have
their own plans and strategies with the help of which they are able to establish their products in
the market and are even able to improve their existing products in the market as well. There are
various aspects where the organization constructs their strategies and each one of them will be
explained in detail in order to have an understanding about the strategies exploited by the
organization12.
Key Stakeholders
The stakeholders are the essential associated partners with the help of which the company
is able to move forward and make a mark for themselves. The stakeholders consists of the
suppliers, shareholders and the customers. Reckitt Benckiser is a firm that totally moves on the
aspect of sustainability and the sustainability report is full of the information and the data that
explains how the strategy of sustainability also known as the better business aids their entire
business strategy. The key stakeholders of the business for Reckitt Benckiser are:
12 Chowdhury, Md. Supply chain practices on FMCG products of New Zealand Dairy Products
Bangladesh Ltd. Diss. BRAC University, 2016.
21
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Customers: The customers are looked upon as one of the key stakeholders for the company as
they are the final consumers for the organization and they determine the level of profit and sales
for the organization. Reckitt Benckiser manufactures household, health related and hygiene
products with the help of which the consumers are able to have a healthy lifestyle13. The
company undertakes various strategies with the help of which their products can be enhanced.
Their products like Dettol, which is one of the renowned product for the company is used by
most of the consumers all over the globe. The consumers know the brand name of the product
and most of the customers do not have an idea about about name of the company that
manufactures the same. The company is not concerned about this factor but is satisfied about the
fact that their product have a distinct place in the market14. The competitor for Dettol is very
limited as people are well assured that Dettol is the most effective antiseptic liquid. The liquid
soap wash that has been manufactured by Dettol have their own uniqueness as well as it is seen
that it has click down bottle that keeps the dirt from coming in touch with the soap. The
consumers are always in the lookout for new and innovative products and it is seen that Reckitt
Benckiser in accordance to the expectations of the consumers have been improving their
products in such a way that the products have become demanding in the market as well. Reckitt
13 Bhupendra, Kumar Verma, and Shirish Sangle. "Strategy to derive benefits of radical cleaner
production, products and technologies: a study of Indian firms." Journal of Cleaner
Production 126 (2016): 236-247.
14 Manders, Jorieke HM, Marjolein CJ Caniëls, and W. Th Paul. "Exploring supply chain
flexibility in a FMCG food supply chain." Journal of Purchasing and Supply Management 22.3
(2016): 181-195.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Customers: The customers are looked upon as one of the key stakeholders for the company as
they are the final consumers for the organization and they determine the level of profit and sales
for the organization. Reckitt Benckiser manufactures household, health related and hygiene
products with the help of which the consumers are able to have a healthy lifestyle13. The
company undertakes various strategies with the help of which their products can be enhanced.
Their products like Dettol, which is one of the renowned product for the company is used by
most of the consumers all over the globe. The consumers know the brand name of the product
and most of the customers do not have an idea about about name of the company that
manufactures the same. The company is not concerned about this factor but is satisfied about the
fact that their product have a distinct place in the market14. The competitor for Dettol is very
limited as people are well assured that Dettol is the most effective antiseptic liquid. The liquid
soap wash that has been manufactured by Dettol have their own uniqueness as well as it is seen
that it has click down bottle that keeps the dirt from coming in touch with the soap. The
consumers are always in the lookout for new and innovative products and it is seen that Reckitt
Benckiser in accordance to the expectations of the consumers have been improving their
products in such a way that the products have become demanding in the market as well. Reckitt
13 Bhupendra, Kumar Verma, and Shirish Sangle. "Strategy to derive benefits of radical cleaner
production, products and technologies: a study of Indian firms." Journal of Cleaner
Production 126 (2016): 236-247.
14 Manders, Jorieke HM, Marjolein CJ Caniëls, and W. Th Paul. "Exploring supply chain
flexibility in a FMCG food supply chain." Journal of Purchasing and Supply Management 22.3
(2016): 181-195.
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STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Benckiser has looked to increase their product base in various other health and hygiene aspects
and thereby can increase their market share and competitive edge15. For instance, the company
has introduced a new brand of Durex and with the help of effective and fruitful marketing and
environmental campaigns have been able to attract existent and the prospective customers. The
company has taken added initiative in assessing the market and taking survey from the customers
in order to have some idea about the products that can be introduced and the improvements that
can be undertaken on the existent products. The market survey would be helpful in determining
the improvements that can be taken and thereby improve the market share for the organization.
The level of satisfaction among the consumers would determine the efficiency level of the
company and the market share of the company.
Suppliers: The suppliers refer to the ones who would be providing the raw materials to the
organization with the help of which the finished goods can be produced by the firm. The
company would be able to improve their level of productivity and cost depending on the quality
of the product supplied and the cost of the product. There are several products that are
manufactured by Reckitt Benckiser and therefore the number of suppliers are higher for the firm.
The company therefore undertakes the option of a tender with the help of which the company is
able to select the supplier who offers the most effective and quality products at the lowest price
rate. The quality of the raw materials supplied are assessed from time to time and thereby
maintaining the level of quality of the raw materials. The suppliers are made aware of the goals
and objectives of the company and thereby the suppliers can undertake various initiatives with
15 Vinayagamoorthy, A., and P. Kannan. "The Impulse Buying Behaviour of Consumes for the
FMCG Products in Salem." Impulse 2.2 (2015).
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Benckiser has looked to increase their product base in various other health and hygiene aspects
and thereby can increase their market share and competitive edge15. For instance, the company
has introduced a new brand of Durex and with the help of effective and fruitful marketing and
environmental campaigns have been able to attract existent and the prospective customers. The
company has taken added initiative in assessing the market and taking survey from the customers
in order to have some idea about the products that can be introduced and the improvements that
can be undertaken on the existent products. The market survey would be helpful in determining
the improvements that can be taken and thereby improve the market share for the organization.
The level of satisfaction among the consumers would determine the efficiency level of the
company and the market share of the company.
Suppliers: The suppliers refer to the ones who would be providing the raw materials to the
organization with the help of which the finished goods can be produced by the firm. The
company would be able to improve their level of productivity and cost depending on the quality
of the product supplied and the cost of the product. There are several products that are
manufactured by Reckitt Benckiser and therefore the number of suppliers are higher for the firm.
The company therefore undertakes the option of a tender with the help of which the company is
able to select the supplier who offers the most effective and quality products at the lowest price
rate. The quality of the raw materials supplied are assessed from time to time and thereby
maintaining the level of quality of the raw materials. The suppliers are made aware of the goals
and objectives of the company and thereby the suppliers can undertake various initiatives with
15 Vinayagamoorthy, A., and P. Kannan. "The Impulse Buying Behaviour of Consumes for the
FMCG Products in Salem." Impulse 2.2 (2015).
23
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
the help of which a healthy relationship can be maintained. Reckitt Benckiser has looked to
maintain healthy relationship with their suppliers as they have numerous suppliers with them.
The company offers discounts along with gifts and rewards that motivates the suppliers to
maintain their relationship with them16. The company even looks to construct a framework with
the help of which any discrepancies among the company and the suppliers can be highlighted
and effectively can be mitigated as well. The company takes special consideration on taking care
of their key stakeholders and thereby maintaining the effective operational activity and the
competitive edge of the organization. Reckitt Benckiser is even in the outlook for development
and improvement among the suppliers so that the employees remain loyal to the company.
Investors: The investors play a key role for the rise in capital within the organization. It is seen
that Reckitt Benckiser issues their shares with the help of which the company is able to earn
additional capital by issuing shares for the organization. The capital that is received from the
issue of shares is used for further developments for the firm. Therefore, it is essential for Reckitt
Benckiser to construct plans and policies that would satisfy the investors and thereby would
influence the new investors to undertake investments and the existent investors to increase their
level of investments. The company provides dividends to the investors on the basis of the
investments they have made and the profit earned by the company17. Reckitt Benckiser needs to
disclose their annual report with the help of which the investors can have clear and lucid idea
16 Grover, Veena Mehta. "Alignment of Business Strategy and Innovation Strategy: Strategic
Benefits." Imperial Journal of Interdisciplinary Research 3.1 (2016).
17 Ertek, Gürdal, et al. "New knowledge in strategic management through visually mining
semantic networks." Information Systems Frontiers 19.1 (2017): 165-185.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
the help of which a healthy relationship can be maintained. Reckitt Benckiser has looked to
maintain healthy relationship with their suppliers as they have numerous suppliers with them.
The company offers discounts along with gifts and rewards that motivates the suppliers to
maintain their relationship with them16. The company even looks to construct a framework with
the help of which any discrepancies among the company and the suppliers can be highlighted
and effectively can be mitigated as well. The company takes special consideration on taking care
of their key stakeholders and thereby maintaining the effective operational activity and the
competitive edge of the organization. Reckitt Benckiser is even in the outlook for development
and improvement among the suppliers so that the employees remain loyal to the company.
Investors: The investors play a key role for the rise in capital within the organization. It is seen
that Reckitt Benckiser issues their shares with the help of which the company is able to earn
additional capital by issuing shares for the organization. The capital that is received from the
issue of shares is used for further developments for the firm. Therefore, it is essential for Reckitt
Benckiser to construct plans and policies that would satisfy the investors and thereby would
influence the new investors to undertake investments and the existent investors to increase their
level of investments. The company provides dividends to the investors on the basis of the
investments they have made and the profit earned by the company17. Reckitt Benckiser needs to
disclose their annual report with the help of which the investors can have clear and lucid idea
16 Grover, Veena Mehta. "Alignment of Business Strategy and Innovation Strategy: Strategic
Benefits." Imperial Journal of Interdisciplinary Research 3.1 (2016).
17 Ertek, Gürdal, et al. "New knowledge in strategic management through visually mining
semantic networks." Information Systems Frontiers 19.1 (2017): 165-185.
24
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
about the activities that have been taking place so that the investors know what the company has
been doing with their money. Every financial detail is disclosed in the financial report and annual
general meetings are held where the shareholders and the management of the company can have
a meeting with each other and discuss on the issues that can be rectified and the company can
perform in an effective manner.
Mission
The mission statement of the company determines the process that would be undertaken
with the help of which the company can move forward and maintain their competitive edge. The
company has the aim of providing effective and quality products to the consumers with the help
of which they would be able to meet the demand and the desires of the consumers and improve
their lifestyle. The business looks to understand what the market wants and thereby construct
plans and policies with the help of which the needs and demands of the consumers can be
understood and accordingly steps can be taken that can enhance the operational activities of the
company18. The company looks to have a positive approach with the help of which they offer a
happy and prosperous lifestyle for the consumers. The company even takes programmes to save
the children and to educate women and empower them globally so that the women can regain
their confidence and stand face to face with men in the international market. The business even
has the intention of being the number one health and hygiene product manufacturer and hence
wants to implement the plans with the help of which they can attain the same.
18 Verma, Swati, Vrinda Malhotra, and Purba Halady Rao. "Exploring Initiatives to Measure and
Reduce Carbon Footprints Across Indian FMCG Supply Chain." Journal of Supply Chain
Management Systems 6.3 (2017).
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
about the activities that have been taking place so that the investors know what the company has
been doing with their money. Every financial detail is disclosed in the financial report and annual
general meetings are held where the shareholders and the management of the company can have
a meeting with each other and discuss on the issues that can be rectified and the company can
perform in an effective manner.
Mission
The mission statement of the company determines the process that would be undertaken
with the help of which the company can move forward and maintain their competitive edge. The
company has the aim of providing effective and quality products to the consumers with the help
of which they would be able to meet the demand and the desires of the consumers and improve
their lifestyle. The business looks to understand what the market wants and thereby construct
plans and policies with the help of which the needs and demands of the consumers can be
understood and accordingly steps can be taken that can enhance the operational activities of the
company18. The company looks to have a positive approach with the help of which they offer a
happy and prosperous lifestyle for the consumers. The company even takes programmes to save
the children and to educate women and empower them globally so that the women can regain
their confidence and stand face to face with men in the international market. The business even
has the intention of being the number one health and hygiene product manufacturer and hence
wants to implement the plans with the help of which they can attain the same.
18 Verma, Swati, Vrinda Malhotra, and Purba Halady Rao. "Exploring Initiatives to Measure and
Reduce Carbon Footprints Across Indian FMCG Supply Chain." Journal of Supply Chain
Management Systems 6.3 (2017).
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25
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Vision
The vision of the company is to deliver the enhanced solutions in the household, personal
care, and health sector with the help of innovative products and services that would improve the
lifestyle of the individuals. The company has the goal of undertaking constant innovation and
therefore undertakes various measures with the help of which the company is always on the
move for innovative products and services19. The company even has the aim of looking into the
bigger and the smaller things with the help of which all the demands and expectation of the
consumers and the other stakeholders will be satisfied. Reckitt Benckiser looks into small things
that have increased value for the consumers and thereby driving the people towards sustainable
life that can improve the day to day activities20. The company even looks to deliver fast acting
and brilliant products and solutions with the help of which the company is able to attain
competitive edge and even attain easier and better lifestyle of the consumers and even create
incredible value among the shareholders with the help of their operational process. The company
would be able to attain their goals and thereby establish themselves in the market and gain an
extensive level of market share.
19 Simms, Christopher, and Paul Trott. "Conceptualising the management of packaging within
new product development: A grounded investigation in the UK fast moving consumer goods
industry." European Journal of Marketing 48.11/12 (2014): 2009-2032.
20 Tandon, Manvinder Singh, and Vaishali Sethi. "An Analysis of the Determinants of Consumer
Purchase Behavior Towards Green FMCG Products." IUP Journal of Marketing
Management 16.3 (2017).
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Vision
The vision of the company is to deliver the enhanced solutions in the household, personal
care, and health sector with the help of innovative products and services that would improve the
lifestyle of the individuals. The company has the goal of undertaking constant innovation and
therefore undertakes various measures with the help of which the company is always on the
move for innovative products and services19. The company even has the aim of looking into the
bigger and the smaller things with the help of which all the demands and expectation of the
consumers and the other stakeholders will be satisfied. Reckitt Benckiser looks into small things
that have increased value for the consumers and thereby driving the people towards sustainable
life that can improve the day to day activities20. The company even looks to deliver fast acting
and brilliant products and solutions with the help of which the company is able to attain
competitive edge and even attain easier and better lifestyle of the consumers and even create
incredible value among the shareholders with the help of their operational process. The company
would be able to attain their goals and thereby establish themselves in the market and gain an
extensive level of market share.
19 Simms, Christopher, and Paul Trott. "Conceptualising the management of packaging within
new product development: A grounded investigation in the UK fast moving consumer goods
industry." European Journal of Marketing 48.11/12 (2014): 2009-2032.
20 Tandon, Manvinder Singh, and Vaishali Sethi. "An Analysis of the Determinants of Consumer
Purchase Behavior Towards Green FMCG Products." IUP Journal of Marketing
Management 16.3 (2017).
26
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Core Values of Reckitt Benckiser
There are four kinds of core values that Reckitt Benckiser has been able to construct and
each one of them have been explained as follows:
Achievement: The process of gaining any kind of achievement makes an organization who they
are. The company does not only aim for reaching the zenith, but their aim is even to accomplish
beyond the expectation of the company as well as the shareholders and thereby outperforming in
accordance to their own expectations and even from the competitive firms. They even develop
and assist their employees in motivating them in order to outperform them so that they are able
to accomplish the work on which they have concentrated on be it become the corporate social
responsibility, products and profits.
Entrepreneurship: The process of entrepreneurship motivates and encourages intelligent and
bold thoughts and thinking that would be helpful for the commercial drive. They permit the
initiation of challenging and courageous idea in order to thrive and provide a value to the passion
that consumers bring in and thereby transforming the ideas into greater level of expectations.
Teamwork: The process of making a teamwork is essential in order to drive in together in order
to succeed. The employees and the individuals are seen to be high doers and are found to be
competitive, but they are able to bring power and strengths together when required to function
together as one amalgamated by the general principles and the behaviours and not by the
procedures and the rules in order to drive the success.
Commitment: Reckitt Benckiser has the aim that money has to stop at some place. They take
the accountability for their regions of obligations and the take the added inventiveness in
completing a work that is required. The employees are slaves to the operational process but they
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Core Values of Reckitt Benckiser
There are four kinds of core values that Reckitt Benckiser has been able to construct and
each one of them have been explained as follows:
Achievement: The process of gaining any kind of achievement makes an organization who they
are. The company does not only aim for reaching the zenith, but their aim is even to accomplish
beyond the expectation of the company as well as the shareholders and thereby outperforming in
accordance to their own expectations and even from the competitive firms. They even develop
and assist their employees in motivating them in order to outperform them so that they are able
to accomplish the work on which they have concentrated on be it become the corporate social
responsibility, products and profits.
Entrepreneurship: The process of entrepreneurship motivates and encourages intelligent and
bold thoughts and thinking that would be helpful for the commercial drive. They permit the
initiation of challenging and courageous idea in order to thrive and provide a value to the passion
that consumers bring in and thereby transforming the ideas into greater level of expectations.
Teamwork: The process of making a teamwork is essential in order to drive in together in order
to succeed. The employees and the individuals are seen to be high doers and are found to be
competitive, but they are able to bring power and strengths together when required to function
together as one amalgamated by the general principles and the behaviours and not by the
procedures and the rules in order to drive the success.
Commitment: Reckitt Benckiser has the aim that money has to stop at some place. They take
the accountability for their regions of obligations and the take the added inventiveness in
completing a work that is required. The employees are slaves to the operational process but they
27
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
are given a task and role with the help of which a sense of commitment is attained. The
employees are provided with a latitude and a course in order to have an understanding what is
right in the model in order to reach the success they desire21. The entrepreneurs and the leaders at
every aspect choose the employees and the individuals against this behaviour and construct it
additionally to make sure that the sustainability of the business is attained.
Strength and culture of the company
The culture of Reckitt Benckiser is seen at the core of their success. The culture is moved
ahead by an effective management tea, who are intensively reliant and incentivized to attain the
performance and their individuals who have an entrepreneurial attitude take the work load on
them in order to generate initiatives and thereby delivering increased execution. They are
dynamic and self-driven and thereby wants to make their mark. The company is able to enjoy the
constructive disputes with one another and even with their partners and the shareholders and
thereby wants to undertake a calculative challenges and risks in order to attain some kind of
advantages in certain competitive economy and markets that is operational globally22. They
management of the firm keeps the company streamlined, slim and non-bureaucratic. In this
manner, they can undertake effective and fast process of decision making within the firm and
remain fast and spontaneous in order to answer swiftly to the transforming consumer demands
21 Zimon, Dominik. "Quality Management Systems' Impact on the Functioning of Distribution
Channels in the FMCG Market." Calitatea 18.156 (2017): 52.
22 Gurkov, Igor. "Oriflame CIS: The successful evolution of a regional subsidiary's
mandate." Global Business and Organizational Excellence 35.4 (2016): 44-54.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
are given a task and role with the help of which a sense of commitment is attained. The
employees are provided with a latitude and a course in order to have an understanding what is
right in the model in order to reach the success they desire21. The entrepreneurs and the leaders at
every aspect choose the employees and the individuals against this behaviour and construct it
additionally to make sure that the sustainability of the business is attained.
Strength and culture of the company
The culture of Reckitt Benckiser is seen at the core of their success. The culture is moved
ahead by an effective management tea, who are intensively reliant and incentivized to attain the
performance and their individuals who have an entrepreneurial attitude take the work load on
them in order to generate initiatives and thereby delivering increased execution. They are
dynamic and self-driven and thereby wants to make their mark. The company is able to enjoy the
constructive disputes with one another and even with their partners and the shareholders and
thereby wants to undertake a calculative challenges and risks in order to attain some kind of
advantages in certain competitive economy and markets that is operational globally22. They
management of the firm keeps the company streamlined, slim and non-bureaucratic. In this
manner, they can undertake effective and fast process of decision making within the firm and
remain fast and spontaneous in order to answer swiftly to the transforming consumer demands
21 Zimon, Dominik. "Quality Management Systems' Impact on the Functioning of Distribution
Channels in the FMCG Market." Calitatea 18.156 (2017): 52.
22 Gurkov, Igor. "Oriflame CIS: The successful evolution of a regional subsidiary's
mandate." Global Business and Organizational Excellence 35.4 (2016): 44-54.
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28
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
and the market scenario. The commitment of the firm is strong and level, whether it is a financial
outcome or having an effect on the transformations in the climate and assisting the ones that are
extensively susceptible to the community23. In order to handle the overall footprint of carbon out
of their products, from the cradle to the grave, in the year 2008, the company moved ahead with
their Carbon 20 initiative and constructed a detailed plan and measurements for functioning with
the customers in order to accomplish their commitment to mitigate the overall carbon footprint
by more than 20% by the end of year 2020. By the end of this year, the company even looks to
deliver the last section of their commitment in order to save 150,000 lives by taking an initiative
of functioning with the Save the Children all over the globe. They are currently working and
functioning with them on an innovative and new event and program which would make their
commitment have even more effect in the coming future.
Strategy of Reckitt Benckiser
The strategy of Reckitt Benckiser determines the process with the help of which the company
would move ahead and thereby would be able to provide effective solutions and services to their
stakeholders and the consumers globally. The constant and lucid strategy is to take the growth of
the industry ahead and make the returns and the earnings move ahead with the help of:
An inconsistent concentration on compelling the Power Brands, worldwide leaders in the
section with increased growth prospect and thereby concluding their international roll
out.
23 Renton, Michelle, et al. "Small but sophisticated: Entrepreneurial marketing and sme
approaches to brand management." Journal of Research in Marketing and Entrepreneurship 17.2
(2015): 149-164.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
and the market scenario. The commitment of the firm is strong and level, whether it is a financial
outcome or having an effect on the transformations in the climate and assisting the ones that are
extensively susceptible to the community23. In order to handle the overall footprint of carbon out
of their products, from the cradle to the grave, in the year 2008, the company moved ahead with
their Carbon 20 initiative and constructed a detailed plan and measurements for functioning with
the customers in order to accomplish their commitment to mitigate the overall carbon footprint
by more than 20% by the end of year 2020. By the end of this year, the company even looks to
deliver the last section of their commitment in order to save 150,000 lives by taking an initiative
of functioning with the Save the Children all over the globe. They are currently working and
functioning with them on an innovative and new event and program which would make their
commitment have even more effect in the coming future.
Strategy of Reckitt Benckiser
The strategy of Reckitt Benckiser determines the process with the help of which the company
would move ahead and thereby would be able to provide effective solutions and services to their
stakeholders and the consumers globally. The constant and lucid strategy is to take the growth of
the industry ahead and make the returns and the earnings move ahead with the help of:
An inconsistent concentration on compelling the Power Brands, worldwide leaders in the
section with increased growth prospect and thereby concluding their international roll
out.
23 Renton, Michelle, et al. "Small but sophisticated: Entrepreneurial marketing and sme
approaches to brand management." Journal of Research in Marketing and Entrepreneurship 17.2
(2015): 149-164.
29
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Increased extent and level of marketing and media investment and sustainable innovation
Changing the net revenue development into an even enhanced strong and profitable cash
flow.
Organizational Culture
The organizational framework is a key concept of hierarchy of the subordination of the
individuals that contribute and collaborate in order to serve on a general aim and objective. The
company is different from a clustered individuals. A company can be modelled in various ways
and styles and relying on their ambiance and nature. The framework of the firm will ascertain the
processes with the help of which it functions and performs. The structure of the firm permits the
expressed assignment of the accountabilities for the various processes and the functions to
various entities like the department, branch individuals, individuals and work group. The entities
in the business structure are generally hired under the time restricted work agreements and the
work orders or even under the permanent agreements of employment or the event orders.
Kinds of the organizational structure
Functional structure
The functional framework of the employees and the groups are together reliant on the
roles of the distinct jobs within the firm
Divisional Structure
The divisional framework is segmented in to three aspects and they are geographic,
product and market.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Increased extent and level of marketing and media investment and sustainable innovation
Changing the net revenue development into an even enhanced strong and profitable cash
flow.
Organizational Culture
The organizational framework is a key concept of hierarchy of the subordination of the
individuals that contribute and collaborate in order to serve on a general aim and objective. The
company is different from a clustered individuals. A company can be modelled in various ways
and styles and relying on their ambiance and nature. The framework of the firm will ascertain the
processes with the help of which it functions and performs. The structure of the firm permits the
expressed assignment of the accountabilities for the various processes and the functions to
various entities like the department, branch individuals, individuals and work group. The entities
in the business structure are generally hired under the time restricted work agreements and the
work orders or even under the permanent agreements of employment or the event orders.
Kinds of the organizational structure
Functional structure
The functional framework of the employees and the groups are together reliant on the
roles of the distinct jobs within the firm
Divisional Structure
The divisional framework is segmented in to three aspects and they are geographic,
product and market.
30
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Product Structure
The product structure groups and the employees are reliant on the distinct products that
have been manufactured by the organization. An instance of this would mean that the
organization that manufactures three specific products and the company would have a segmented
division for every product.
Market Structure
The market structure employees and the groups together are reliant on the distinct
markets in which the distinct markets within which the firm sells.
Geographic Structure
The geographic framework of the employees together is reliant on the distinct
geographical area. This is generally utilised by large and huge organizations that function in
many locations throughout US and even various other states and parts of the world.
Matrix Structure
The matrix structure employees and the groups operate in with the help of the product
and the functions. This model can blend the best of the segmented frameworks. An instance
would be that a firm that manufactures two products. By making use of the matrix framework,
the company would be able to organise and plan their functions within the firm. The matrix
structure is the most difficult and complex of for differentiated organizational frameworks.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Product Structure
The product structure groups and the employees are reliant on the distinct products that
have been manufactured by the organization. An instance of this would mean that the
organization that manufactures three specific products and the company would have a segmented
division for every product.
Market Structure
The market structure employees and the groups together are reliant on the distinct
markets in which the distinct markets within which the firm sells.
Geographic Structure
The geographic framework of the employees together is reliant on the distinct
geographical area. This is generally utilised by large and huge organizations that function in
many locations throughout US and even various other states and parts of the world.
Matrix Structure
The matrix structure employees and the groups operate in with the help of the product
and the functions. This model can blend the best of the segmented frameworks. An instance
would be that a firm that manufactures two products. By making use of the matrix framework,
the company would be able to organise and plan their functions within the firm. The matrix
structure is the most difficult and complex of for differentiated organizational frameworks.
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31
Managing Director
Logistic ManagerCommercial ManagerSales and Marketing ManagerHuman Resource Manager
Commercial Manager Sales and Marketing Manager Logistic Manager
Area Sales Manager Territory Sales in Charge Sales Representative
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Table 1: Structure of Reckitt Benckiser
Regional
Manager
Managing Director
Logistic ManagerCommercial ManagerSales and Marketing ManagerHuman Resource Manager
Commercial Manager Sales and Marketing Manager Logistic Manager
Area Sales Manager Territory Sales in Charge Sales Representative
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Table 1: Structure of Reckitt Benckiser
Regional
Manager
32
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Advantages of the functional structure
The advantages are as follows:
The benefit of supervising the tasks that are similar in association to the roles like the
manufacturing, marketing and research and development etc.
Entire monitoring and supervision is high and the collaboration can be accomplished with
ease
As the employees are performing similar jobs have been grouped together and hence the
entire learning and knowledge from each other’s expertise and skills are high.
Specialisation in every section for every department concentrates on their own work
Accountability with respect to which some of them are accountable for the section
Clarity that explains to know the roles of the others and their own roles as well.
Disadvantages
The disadvantages of this structure have been given as:
Less amount of communication and interaction among the other departments and
sections and the individuals who belong to the other departments.
It becomes difficult to influence the employees under the functional model due to
similar nature of the jobs and the tasks.
Closed level of communication can lead to the insufficiency of the focus.
The departments can become resistant with respect to the transformations
The collaboration or the coordination may take too much time
A gap among the bottom and the top
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Advantages of the functional structure
The advantages are as follows:
The benefit of supervising the tasks that are similar in association to the roles like the
manufacturing, marketing and research and development etc.
Entire monitoring and supervision is high and the collaboration can be accomplished with
ease
As the employees are performing similar jobs have been grouped together and hence the
entire learning and knowledge from each other’s expertise and skills are high.
Specialisation in every section for every department concentrates on their own work
Accountability with respect to which some of them are accountable for the section
Clarity that explains to know the roles of the others and their own roles as well.
Disadvantages
The disadvantages of this structure have been given as:
Less amount of communication and interaction among the other departments and
sections and the individuals who belong to the other departments.
It becomes difficult to influence the employees under the functional model due to
similar nature of the jobs and the tasks.
Closed level of communication can lead to the insufficiency of the focus.
The departments can become resistant with respect to the transformations
The collaboration or the coordination may take too much time
A gap among the bottom and the top
33
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
In this scenario, Reckitt Benckiser has been following the functional structure from the
time they started to operate in the global economy.
Internal Stakeholders
The internal stakeholders refer to the ones who have been associated with the
organization internally and have been contributing the growth and development of the
organization. The employees and the investors for the business are the key internal stakeholders
as they are associated with the industry from within and they have the ability to take steps and
actions with the help of which the company can develop their operational activities.
Employees
The employees play a key role in the development of the performance and the operational
activities of an organization. The employees undertake various measures with the help of which
the company is able to understand the actions that would be taken and thereby improve the
operational activities of the company. The employees are given with motivational idea and
concepts with the help of which they can have an understanding about what the company wants
from them and the benefits they would gain on their behalf and thereby take actions and steps
with the help of which they can perform in an effective manner and improve the operational
activities of the firm24. The company even takes the initiative of creating a bonding and
relationship among the employees and the management so that a free flow of information and
any discrepancies can be conveyed with the help of which the efficiency level of the overall
24 Beck, Susanne, and Peter Kenning. "The influence of retailers’ family firm image on new
product acceptance: an empirical investigation in the German FMCG market." International
Journal of Retail & Distribution Management 43.12 (2015): 1126-1143.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
In this scenario, Reckitt Benckiser has been following the functional structure from the
time they started to operate in the global economy.
Internal Stakeholders
The internal stakeholders refer to the ones who have been associated with the
organization internally and have been contributing the growth and development of the
organization. The employees and the investors for the business are the key internal stakeholders
as they are associated with the industry from within and they have the ability to take steps and
actions with the help of which the company can develop their operational activities.
Employees
The employees play a key role in the development of the performance and the operational
activities of an organization. The employees undertake various measures with the help of which
the company is able to understand the actions that would be taken and thereby improve the
operational activities of the company. The employees are given with motivational idea and
concepts with the help of which they can have an understanding about what the company wants
from them and the benefits they would gain on their behalf and thereby take actions and steps
with the help of which they can perform in an effective manner and improve the operational
activities of the firm24. The company even takes the initiative of creating a bonding and
relationship among the employees and the management so that a free flow of information and
any discrepancies can be conveyed with the help of which the efficiency level of the overall
24 Beck, Susanne, and Peter Kenning. "The influence of retailers’ family firm image on new
product acceptance: an empirical investigation in the German FMCG market." International
Journal of Retail & Distribution Management 43.12 (2015): 1126-1143.
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34
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
business activities can be enhanced. The employees are even provided with shares of the firm so
that employees feel that they are part of the company so that they can improve the operational
activity and is even able to give out decisions to the management.
Investors
The investors are the ones who provide external capital to Reckitt Benckiser and it is seen
that the company looks to take great care of them. The capital that is received from the share
issuance is used for further expansion for the organization. Hence, it is key for Reckitt Benckiser
to generate policies and plans that would gratify the investors and thereby would impact the new
investors to make investments and the current investors to increase their investment level. The
company gives out dividends to the investors on the basis of the investments they have
undertaken and the profit earned by the firm25. Reckitt Benckiser needs to reveal their annual
report with the help of which the investors can have a clear and articulate knowledge about the
operations that were taking place so that the investors are able to have some knowledge about
what the firm has been doing with their money. Every financial information is revealed in the
financial statements and annual general meetings that are held where the shareholders and the
company management can have a meeting with each other and undertake a discussion on the
problems that can be resolved and the firm can perform in an efficient manner.
25 Camillus, John, Bopaya Bidanda, and N. Chandra Mohan. The Business of Humanity:
Strategic Management in the Era of Globalization, Innovation, and Shared Value. CRC Press,
2017.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
business activities can be enhanced. The employees are even provided with shares of the firm so
that employees feel that they are part of the company so that they can improve the operational
activity and is even able to give out decisions to the management.
Investors
The investors are the ones who provide external capital to Reckitt Benckiser and it is seen
that the company looks to take great care of them. The capital that is received from the share
issuance is used for further expansion for the organization. Hence, it is key for Reckitt Benckiser
to generate policies and plans that would gratify the investors and thereby would impact the new
investors to make investments and the current investors to increase their investment level. The
company gives out dividends to the investors on the basis of the investments they have
undertaken and the profit earned by the firm25. Reckitt Benckiser needs to reveal their annual
report with the help of which the investors can have a clear and articulate knowledge about the
operations that were taking place so that the investors are able to have some knowledge about
what the firm has been doing with their money. Every financial information is revealed in the
financial statements and annual general meetings that are held where the shareholders and the
company management can have a meeting with each other and undertake a discussion on the
problems that can be resolved and the firm can perform in an efficient manner.
25 Camillus, John, Bopaya Bidanda, and N. Chandra Mohan. The Business of Humanity:
Strategic Management in the Era of Globalization, Innovation, and Shared Value. CRC Press,
2017.
35
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Perception of the Company
Perception has been looked upon as the method of gaining awareness and even having an
understanding of any information that is sensory in nature. The meaning of the word perception
refers to the collection, receiving and undertaking of the actions and the apprehension of the
senses or the minds. The two perceptions that are seen in the organization are:
Perception of the employees
Perception of the customers
The perception of the employees are influenced by the external and internal communications
in accordance to the organizational images that in turn has an effect on the behaviour and
organizational recognition of the employees. Specifically, it is debated that when there is an
existence of discrepancy among the internally perceived images and the external images that
have been perceived that are kept by the employees and it can lead to the key after effects in
terms of the behaviour of the employees26. After the employees joined Reckitt Benckiser, they
have discovered plenty amount of energy and drivers in an open and direct way. It is an area in
which the employees would be given independence in order to make their mark in the initial
years of their career. The employees look for stable innovation and the tangible outcomes and
there are other things that makes them actually characteristic. In Reckitt Benckiser they
employees receive an actual passion in order to outperform. From the very initial stages, an
employee who joins Reckitt Benckiser, the company ensures that the employees have an actual
26 Lam, Aris YC, Mei Mei Lau, and Ronnie Cheung. "Modelling the Relationship among Green
Perceived Value, Green Trust, Satisfaction, and Repurchase Intention of Green
Products." Contemporary Management Research 12.1 (2016): 47.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Perception of the Company
Perception has been looked upon as the method of gaining awareness and even having an
understanding of any information that is sensory in nature. The meaning of the word perception
refers to the collection, receiving and undertaking of the actions and the apprehension of the
senses or the minds. The two perceptions that are seen in the organization are:
Perception of the employees
Perception of the customers
The perception of the employees are influenced by the external and internal communications
in accordance to the organizational images that in turn has an effect on the behaviour and
organizational recognition of the employees. Specifically, it is debated that when there is an
existence of discrepancy among the internally perceived images and the external images that
have been perceived that are kept by the employees and it can lead to the key after effects in
terms of the behaviour of the employees26. After the employees joined Reckitt Benckiser, they
have discovered plenty amount of energy and drivers in an open and direct way. It is an area in
which the employees would be given independence in order to make their mark in the initial
years of their career. The employees look for stable innovation and the tangible outcomes and
there are other things that makes them actually characteristic. In Reckitt Benckiser they
employees receive an actual passion in order to outperform. From the very initial stages, an
employee who joins Reckitt Benckiser, the company ensures that the employees have an actual
26 Lam, Aris YC, Mei Mei Lau, and Ronnie Cheung. "Modelling the Relationship among Green
Perceived Value, Green Trust, Satisfaction, and Repurchase Intention of Green
Products." Contemporary Management Research 12.1 (2016): 47.
36
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
and effective job. From the beginning, it is anticipated to take the ownership for the function
after they have been selected and assisted in it. The employees are projected to be rewarded as
well.
Functional Resource areas
The functional resource are of Reckitt Benckiser comprises of the various operational
areas that the company has and undertakes various activities with the help of which the company
will be able to improve their operational activities. Each of the areas will be discussed as
follows:
Human Resource
In Reckitt Benckiser, people or the employees are at the heart of the success of the
organization. The company has implemented enthusiasm and ideas before their hierarchy and
they are in need of the passionate employees who would share their ambitions in order to deliver
happier and healthier lives to each one of the customers. The human resource management of the
firm has the intention of inspiring and recognising the diverse and exceptional talent for the
current time and even for the future and to strengthen and safeguard the winning and unique
culture of Reckitt Benckiser in order to deliver sustainable out performance27.
The organization has a belief that human rights are a worldwide need and has been
committed in upholding the rights and the powers that have been expressed in the “International
27 Gardasu, Satyanarayana, and J. Prasad Babu. "A STUDY ON THE BEHAVIOUR OF
RURAL CONSUMERS TOWARDS FMCG PRODUCTS." HUMAN RESOURCE
MANAGEMENT: NEW HORIZONS (2017): 71.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
and effective job. From the beginning, it is anticipated to take the ownership for the function
after they have been selected and assisted in it. The employees are projected to be rewarded as
well.
Functional Resource areas
The functional resource are of Reckitt Benckiser comprises of the various operational
areas that the company has and undertakes various activities with the help of which the company
will be able to improve their operational activities. Each of the areas will be discussed as
follows:
Human Resource
In Reckitt Benckiser, people or the employees are at the heart of the success of the
organization. The company has implemented enthusiasm and ideas before their hierarchy and
they are in need of the passionate employees who would share their ambitions in order to deliver
happier and healthier lives to each one of the customers. The human resource management of the
firm has the intention of inspiring and recognising the diverse and exceptional talent for the
current time and even for the future and to strengthen and safeguard the winning and unique
culture of Reckitt Benckiser in order to deliver sustainable out performance27.
The organization has a belief that human rights are a worldwide need and has been
committed in upholding the rights and the powers that have been expressed in the “International
27 Gardasu, Satyanarayana, and J. Prasad Babu. "A STUDY ON THE BEHAVIOUR OF
RURAL CONSUMERS TOWARDS FMCG PRODUCTS." HUMAN RESOURCE
MANAGEMENT: NEW HORIZONS (2017): 71.
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37
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Bill of Human Rights that comprises of the (Universal Declaration of Human Rights, the
International Covenant on Civil and Political Rights and the International Covenant on the
Social, Cultural and Economic Rights) along with the International Labour Organization’s
Declaration of the Fundamental Principles and the Rights at Work”. Reckitt Benckiser has
been committed to the follow the guidelines of the UN Guiding Principles on Business and
Human Rights and the Organisation for Economic Co-operation and the Development’s
(OECD’s) Guidelines for Multinational Enterprises.
The company is even focused on providing the accountable conduct of the business
among their suppliers, facilities and contractors that reaches or even goes above the laws and the
regulations that are applicable and even protects the safety and the health at work, safeguards the
environment and commonly assists the contribution of the business in order to attain the
development that is sustainable in nature.
The organization even identifies the significant role that the firms play in the community
and the obligation it has in functioning in an accountable manner and making sure that the
human rights are respected and safeguarded. Reckitt Benckiser takes into account any
adversative human rights effects very seriously28. In the circumstances where Reckitt Benckiser
recognises that it has contributed or caused to any of these effects, it would provide for or co-
operate in for legitimate and suitable procedures to rectify these issues.
28 Subbaiah, P. Venkata, and P. Chaithanya Bharathi. "Rural Marketing Strategies and its
Influences on buying Behavior of Selected Hindustan Unilever Limited (HUL) Products in
Rayalaseema Region." National Conference on Marketing and Sustainable Development
October. Vol. 13. 2017.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Bill of Human Rights that comprises of the (Universal Declaration of Human Rights, the
International Covenant on Civil and Political Rights and the International Covenant on the
Social, Cultural and Economic Rights) along with the International Labour Organization’s
Declaration of the Fundamental Principles and the Rights at Work”. Reckitt Benckiser has
been committed to the follow the guidelines of the UN Guiding Principles on Business and
Human Rights and the Organisation for Economic Co-operation and the Development’s
(OECD’s) Guidelines for Multinational Enterprises.
The company is even focused on providing the accountable conduct of the business
among their suppliers, facilities and contractors that reaches or even goes above the laws and the
regulations that are applicable and even protects the safety and the health at work, safeguards the
environment and commonly assists the contribution of the business in order to attain the
development that is sustainable in nature.
The organization even identifies the significant role that the firms play in the community
and the obligation it has in functioning in an accountable manner and making sure that the
human rights are respected and safeguarded. Reckitt Benckiser takes into account any
adversative human rights effects very seriously28. In the circumstances where Reckitt Benckiser
recognises that it has contributed or caused to any of these effects, it would provide for or co-
operate in for legitimate and suitable procedures to rectify these issues.
28 Subbaiah, P. Venkata, and P. Chaithanya Bharathi. "Rural Marketing Strategies and its
Influences on buying Behavior of Selected Hindustan Unilever Limited (HUL) Products in
Rayalaseema Region." National Conference on Marketing and Sustainable Development
October. Vol. 13. 2017.
38
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Reckitt Benckiser has given an acknowledgement to the developing significance and the
complexity to the problems related to the human rights and is even committed to the sustainable
improvement of their processes and approach and to motivate and encourage their suppliers to
undertake the same thing.
The organisation’s commitment to function in a responsible manner and respecting and
safeguarding the human rights is disclosed publically with the help of their policies and the
related Detailed Requirements of the documents.
Policy
Policy, Application and Compliance
The policy and the plan of Reckitt Benckiser includes that:
(i) The associated facilities in the provision for goods or productions and the services on
behalf of the Reckitt Benckiser Group organizations and
(ii) The suppliers associated with the services and the goods to the RB Group of
Companies and shall
Obey with the laws and the regulations that are applicable
Comply with the principles and the fundamentals that have been set forth in the Policy on
Human Rights and Responsible Business and
Aware and promote the regulations and the principles of the policy that is within the
supply chain of the company
This regulation and policy is applicable to all and the facilities associated in the
manufacturing or the provision of the services and the goods on behalf of Reckitt Benckiser
which is inclusive of both managed facilities, company owned and the facilities that managed
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Reckitt Benckiser has given an acknowledgement to the developing significance and the
complexity to the problems related to the human rights and is even committed to the sustainable
improvement of their processes and approach and to motivate and encourage their suppliers to
undertake the same thing.
The organisation’s commitment to function in a responsible manner and respecting and
safeguarding the human rights is disclosed publically with the help of their policies and the
related Detailed Requirements of the documents.
Policy
Policy, Application and Compliance
The policy and the plan of Reckitt Benckiser includes that:
(i) The associated facilities in the provision for goods or productions and the services on
behalf of the Reckitt Benckiser Group organizations and
(ii) The suppliers associated with the services and the goods to the RB Group of
Companies and shall
Obey with the laws and the regulations that are applicable
Comply with the principles and the fundamentals that have been set forth in the Policy on
Human Rights and Responsible Business and
Aware and promote the regulations and the principles of the policy that is within the
supply chain of the company
This regulation and policy is applicable to all and the facilities associated in the
manufacturing or the provision of the services and the goods on behalf of Reckitt Benckiser
which is inclusive of both managed facilities, company owned and the facilities that managed
39
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
owned and controlled by the suppliers, subcontractors and contractors and the services and goods
suppliers to the Reckitt Benckiser group.
The global supply leadership team of Reckitt Benckiser is accountable for monitoring and
distributing the policy throughout the Reckitt Benckiser supply organization. The Reckitt
Benckiser group of companies worldwide are accountable for making an application for it within
their entire supply chain that makes the contractors, suppliers and the subcontractors already
aware of the policies and their accountability to comply with it. For Reckitt Benckiser facilities,
it is accountable of the domestic human resource roles in order to assist the incorporation of this
policy that is inclusive of the assisting recognition risks and the prospective non-compliance and
facilitating the incorporation of the suitable corrective procedures and actions29. Functionally, it
is the accountability of every individual supplier and facility in order to conform to the principles
and the rules that have been set forth below in such a manner that does not breach the laws that
are applicable and even the regulations.
Human Rights and Responsible Business Principles
The approach of Reckitt Benckiser is coursed by the following essential principles and they
are as follows:
Restriction of work by the child workers
No compelled labour, human trafficking or modern slavery
A healthy and safe working atmosphere
29 Dembek, Krzysztof, Prakash Singh, and Vikram Bhakoo. "Literature review of shared value: a
theoretical concept or a management buzzword?." Journal of Business Ethics 137.2 (2016): 231-
267.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
owned and controlled by the suppliers, subcontractors and contractors and the services and goods
suppliers to the Reckitt Benckiser group.
The global supply leadership team of Reckitt Benckiser is accountable for monitoring and
distributing the policy throughout the Reckitt Benckiser supply organization. The Reckitt
Benckiser group of companies worldwide are accountable for making an application for it within
their entire supply chain that makes the contractors, suppliers and the subcontractors already
aware of the policies and their accountability to comply with it. For Reckitt Benckiser facilities,
it is accountable of the domestic human resource roles in order to assist the incorporation of this
policy that is inclusive of the assisting recognition risks and the prospective non-compliance and
facilitating the incorporation of the suitable corrective procedures and actions29. Functionally, it
is the accountability of every individual supplier and facility in order to conform to the principles
and the rules that have been set forth below in such a manner that does not breach the laws that
are applicable and even the regulations.
Human Rights and Responsible Business Principles
The approach of Reckitt Benckiser is coursed by the following essential principles and they
are as follows:
Restriction of work by the child workers
No compelled labour, human trafficking or modern slavery
A healthy and safe working atmosphere
29 Dembek, Krzysztof, Prakash Singh, and Vikram Bhakoo. "Literature review of shared value: a
theoretical concept or a management buzzword?." Journal of Business Ethics 137.2 (2016): 231-
267.
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40
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Independent of the association (where these operations are limited by the law and these
equivalent measures as are legal).
No discrimination and equal opportunities and rights
No inhumane and harmful treatments
Conditions of employment and reasonable terms
Safeguarding of the environment
Undertaking the business with integrity
Incorporation of the management process in order to drive the compliance.
Human Resource Department
Reckitt Benckiser has looked to treat their employees with humbleness and respect and
regards them as their most suitable assets. They have a human resource department that have a
strong management and control system. An effective environment in the firm is very crucial as it
gives out an increased level of satisfaction of the employees. The companies should provide an
atmosphere where the individual from various backgrounds can work unitedly and give out their
best level of performance30. The focus on these aspects would be able to provide sustainable
development of the department.
The key functions of the management of the company has been given as follows:
Recruitment and Selection
Training and development
30 Heinberg, Martin, H. Erkan Ozkaya, and Markus Taube. "A brand built on sand: Is acquiring a
local brand in an emerging market an ill-advised strategy for foreign companies?." Journal of the
Academy of Marketing Science 44.5 (2016): 586-607.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Independent of the association (where these operations are limited by the law and these
equivalent measures as are legal).
No discrimination and equal opportunities and rights
No inhumane and harmful treatments
Conditions of employment and reasonable terms
Safeguarding of the environment
Undertaking the business with integrity
Incorporation of the management process in order to drive the compliance.
Human Resource Department
Reckitt Benckiser has looked to treat their employees with humbleness and respect and
regards them as their most suitable assets. They have a human resource department that have a
strong management and control system. An effective environment in the firm is very crucial as it
gives out an increased level of satisfaction of the employees. The companies should provide an
atmosphere where the individual from various backgrounds can work unitedly and give out their
best level of performance30. The focus on these aspects would be able to provide sustainable
development of the department.
The key functions of the management of the company has been given as follows:
Recruitment and Selection
Training and development
30 Heinberg, Martin, H. Erkan Ozkaya, and Markus Taube. "A brand built on sand: Is acquiring a
local brand in an emerging market an ill-advised strategy for foreign companies?." Journal of the
Academy of Marketing Science 44.5 (2016): 586-607.
41
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Employee relation
Compensation and benefits
Performance appraisal
Policies
Safety
Recruitment and Selection
The most important job of HR departments is to select the most competent employee for
the firm. The success of the company is reliant on their employees. This department requires
employment and fills in the vacant positions of the company. They source, advertise, undertake
an interview and choose the best employee for the position that has been selected.
Training and Development
The employee after receiving the appointment letter, it is the duty of the HR department
to always monitor and observe their progress of the work. By looking at the observations they
have been able to discover whether the employees requires development or not. By looking at the
requirement of the employees they are in the need of undertaking training events for the
employees.
Employee Relation
The essential strengths for the employee relation are:
Satisfaction of the jobs
Employee engagement
Rectifying the conflict that is existent in the work place
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Employee relation
Compensation and benefits
Performance appraisal
Policies
Safety
Recruitment and Selection
The most important job of HR departments is to select the most competent employee for
the firm. The success of the company is reliant on their employees. This department requires
employment and fills in the vacant positions of the company. They source, advertise, undertake
an interview and choose the best employee for the position that has been selected.
Training and Development
The employee after receiving the appointment letter, it is the duty of the HR department
to always monitor and observe their progress of the work. By looking at the observations they
have been able to discover whether the employees requires development or not. By looking at the
requirement of the employees they are in the need of undertaking training events for the
employees.
Employee Relation
The essential strengths for the employee relation are:
Satisfaction of the jobs
Employee engagement
Rectifying the conflict that is existent in the work place
42
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
The department of human resource take the accountability on an effective working
atmosphere. They ensure that every employees are fairly and equally treated. If the employees
face any kind of issues they contact directly with the department of human resource.
Compensation and Benefits
The HR department is accountable in giving out the benefits to their employees like the
dental and medical benefits and providing life insurances as well. This is able to motivate the
employees besides attraction the employees who are talented for the organizations.
Performance Appraisal
The HR department supervises the level of the employee performance. They make sure
that the level of the employee performance is at a satisfactory level or not. This data is more
crucial for the payment, promotions and other kinds of benefits.
Policies
The HR department is accountable for providing the employees for all the policies of the
company. The policies are inclusive of the Whistle blower policy, Code of Business Conduct and
the other associated policies.
Safety Management
There are certain legal accountabilities that are related to providing safe work
environment for the employees. The HR department takes into consideration the concerns related
to safety due to the fact that safety is a key issue for the company and they should provide a safe
and effective working atmosphere for the employees.
Responsibilities of the Department
Organizational structure modification
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
The department of human resource take the accountability on an effective working
atmosphere. They ensure that every employees are fairly and equally treated. If the employees
face any kind of issues they contact directly with the department of human resource.
Compensation and Benefits
The HR department is accountable in giving out the benefits to their employees like the
dental and medical benefits and providing life insurances as well. This is able to motivate the
employees besides attraction the employees who are talented for the organizations.
Performance Appraisal
The HR department supervises the level of the employee performance. They make sure
that the level of the employee performance is at a satisfactory level or not. This data is more
crucial for the payment, promotions and other kinds of benefits.
Policies
The HR department is accountable for providing the employees for all the policies of the
company. The policies are inclusive of the Whistle blower policy, Code of Business Conduct and
the other associated policies.
Safety Management
There are certain legal accountabilities that are related to providing safe work
environment for the employees. The HR department takes into consideration the concerns related
to safety due to the fact that safety is a key issue for the company and they should provide a safe
and effective working atmosphere for the employees.
Responsibilities of the Department
Organizational structure modification
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43
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
The upgradation of the organizational framework on a frequent basis is the accountability
of the human resource management. All the new mechanism and the promotional and the exit
records needs to be added in the business framework and charts.
Leave and Attendance
Maintaining the attendance of the employees and looking into the matter that whether the
employees are coming to office on time or not is a significant obligation of the human resource
management department. Apart from this, the HR department takes care of the leaves taken by
the employees. This department even permits the applications.
Job design, analysis and evaluation
The construction of the detailed information of the job with specification and explanation
is undertaken in the HR department. The HR department then constructs the process of how the
task will be performed and assesses how much the task should be paid.
Maintenance of the employee file
It is the role of the department to maintain the employee data in a file in which the joining
letter, nomination and certificates etc.
Updating the employee information
During functioning in the firm if an employee receives a promotion or transformations in
their job position then this information is required to be updated in the file of the employees.
Security and Safety
It is essential to make sure that the safety in the office is a key accountability of the
human resource department. They take care of all the safety measures and issues.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
The upgradation of the organizational framework on a frequent basis is the accountability
of the human resource management. All the new mechanism and the promotional and the exit
records needs to be added in the business framework and charts.
Leave and Attendance
Maintaining the attendance of the employees and looking into the matter that whether the
employees are coming to office on time or not is a significant obligation of the human resource
management department. Apart from this, the HR department takes care of the leaves taken by
the employees. This department even permits the applications.
Job design, analysis and evaluation
The construction of the detailed information of the job with specification and explanation
is undertaken in the HR department. The HR department then constructs the process of how the
task will be performed and assesses how much the task should be paid.
Maintenance of the employee file
It is the role of the department to maintain the employee data in a file in which the joining
letter, nomination and certificates etc.
Updating the employee information
During functioning in the firm if an employee receives a promotion or transformations in
their job position then this information is required to be updated in the file of the employees.
Security and Safety
It is essential to make sure that the safety in the office is a key accountability of the
human resource department. They take care of all the safety measures and issues.
44
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Recruitment procedure and policy
The selection and the recruitment of the employees is a lengthy procedure and it should
be undertaken in a structured process. The HR department manages the selection and the
recruitment process.
Recruitment tracking
The tracking of the recruitment is an obligation for the HR department. If any of the
employees receives an appointment, the HR maintains all the record.
Exit Tracking
In case any of the employees exits the company, the HR department maintains a record
for that. They provide that the employees leave the organization an exit form in order to receive
relevance information from the exiting employees.
Maintenance of the hiring and exit forms
The maintenance of the hiring and the exit form is the work of the HR department. Even
after one of the employees exits the company, the HR maintains all their information.
Job Title changing record
The job title transformation and the promotional record of the current employees are
maintained by the HR department.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Recruitment procedure and policy
The selection and the recruitment of the employees is a lengthy procedure and it should
be undertaken in a structured process. The HR department manages the selection and the
recruitment process.
Recruitment tracking
The tracking of the recruitment is an obligation for the HR department. If any of the
employees receives an appointment, the HR maintains all the record.
Exit Tracking
In case any of the employees exits the company, the HR department maintains a record
for that. They provide that the employees leave the organization an exit form in order to receive
relevance information from the exiting employees.
Maintenance of the hiring and exit forms
The maintenance of the hiring and the exit form is the work of the HR department. Even
after one of the employees exits the company, the HR maintains all their information.
Job Title changing record
The job title transformation and the promotional record of the current employees are
maintained by the HR department.
45
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Figure 2: Recruitment Requisition Form
Financial Resources
The financial resources of Reckitt Benckiser determines the level of cost the
company has incurred in their overall business and the revenue thy have been able to
generate by selling their finished products in the market. The company even aims to
maintain their profit at a key level so that the company maintains competitive edge and
thereby is able to increase their customer base. The financial aspect has been explained as
follows:
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Figure 2: Recruitment Requisition Form
Financial Resources
The financial resources of Reckitt Benckiser determines the level of cost the
company has incurred in their overall business and the revenue thy have been able to
generate by selling their finished products in the market. The company even aims to
maintain their profit at a key level so that the company maintains competitive edge and
thereby is able to increase their customer base. The financial aspect has been explained as
follows:
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STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Group Income Statement
The net revenue of the company has increased by a key level from the year 2015 to the
year 2016 and the gross profit of the company has increased as well. The operating profit has
remained the same explaining that the net operating expenses for the year 2016 has increased
from the previous year. The net income in the year 2016 has increased and thereby the basic
earnings per ordinary shares has increased as well.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Group Income Statement
The net revenue of the company has increased by a key level from the year 2015 to the
year 2016 and the gross profit of the company has increased as well. The operating profit has
remained the same explaining that the net operating expenses for the year 2016 has increased
from the previous year. The net income in the year 2016 has increased and thereby the basic
earnings per ordinary shares has increased as well.
47
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Statement of Comprehensive Income
The group statement of the comprehensive income for Reckitt Benckiser for the year
2016 explains that the total comprehensive expense for the company has been £1328 and the
value has been higher than the year 2015. On the other hand, it is seen that the total
comprehensive income for the company has been £3164 in 2016 and the value is significantly
higher than the value gained in 2015.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Statement of Comprehensive Income
The group statement of the comprehensive income for Reckitt Benckiser for the year
2016 explains that the total comprehensive expense for the company has been £1328 and the
value has been higher than the year 2015. On the other hand, it is seen that the total
comprehensive income for the company has been £3164 in 2016 and the value is significantly
higher than the value gained in 2015.
48
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Balance Sheet
The group balance sheet for Reckitt Benckiser for the year 2016 explains that total asset
of the company is £18,109 and the value is higher than £15,268 which was attained in the year
2015. The liabilities of the company has been seen to have increased as well as with the rise in
the operational level, the cost of production and the borrowings have increased as well. There
has been a key rise in the total equity as well.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Balance Sheet
The group balance sheet for Reckitt Benckiser for the year 2016 explains that total asset
of the company is £18,109 and the value is higher than £15,268 which was attained in the year
2015. The liabilities of the company has been seen to have increased as well as with the rise in
the operational level, the cost of production and the borrowings have increased as well. There
has been a key rise in the total equity as well.
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STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Changes in the group Equity
The changes in the equity that has been obtained from the annual report of Reckitt
Benckiser have even indicated that there have significant rise in the comprehensive income of
the company from 2015 to the year 2016.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Changes in the group Equity
The changes in the equity that has been obtained from the annual report of Reckitt
Benckiser have even indicated that there have significant rise in the comprehensive income of
the company from 2015 to the year 2016.
50
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Cash Flow Statement
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Cash Flow Statement
51
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
The cash flow statement has indicated that the cash generated from the operating
activities have increased by a key margin in accordance to the previous year and net cash used
for the investing activities have increased as well. The net cash flow from the operations have
increased to £ 2250 and this value has been higher than £1681 which was the value in the year
2015. The financial figures and the values that have been attained in the year 2016 have
indicated that the company has seen growth in their operational activities and therefore there has
been a rise in the level of profit with the help of which the company has been able to establish
themselves in the market as well31. The company with the help of rising sales have been able to
attract more and more investors with the help of which the company would be able to increase
their level of capital and thereby can expand their operational activities and their business as
well.
31 Joshi, Richa, and Rajan Yadav. "Evaluating the Feedback Effects of Brand Extension on
Parent Brand Equity: A Study on Indian FMCG Industry." Vision 21.3 (2017): 305-313.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
The cash flow statement has indicated that the cash generated from the operating
activities have increased by a key margin in accordance to the previous year and net cash used
for the investing activities have increased as well. The net cash flow from the operations have
increased to £ 2250 and this value has been higher than £1681 which was the value in the year
2015. The financial figures and the values that have been attained in the year 2016 have
indicated that the company has seen growth in their operational activities and therefore there has
been a rise in the level of profit with the help of which the company has been able to establish
themselves in the market as well31. The company with the help of rising sales have been able to
attract more and more investors with the help of which the company would be able to increase
their level of capital and thereby can expand their operational activities and their business as
well.
31 Joshi, Richa, and Rajan Yadav. "Evaluating the Feedback Effects of Brand Extension on
Parent Brand Equity: A Study on Indian FMCG Industry." Vision 21.3 (2017): 305-313.
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STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Marketing Process
The method of marketing of Reckitt Benckiser is segmented into a tactical and strategic
step. The phase related to strategy has three aspects that includes the targeting, segmentation and
positioning. The company needs to differentiate among the various groups of the consumers in
the market division and select which group they can serve in an effective manner and interact the
core benefit they would be able to offer to the group.
The process of marketing is even inclusive of the introduction and designing of the
several strategies that are generally known as the marketing mix which is the product, price,
place and promotion32. The marketing mix is undertaken by assessing, controlling and rectifying
the process of marketing in order to accomplish the objectives of the company that is to
incorporate the innovative and improved products in order to lower their initial stage.
The managerial philosophy of the organization puts the main focus on the satisfaction of
the customers as the process of keeping and retaining the loyal consumers. The marketers of
Reckitt Benckiser to urge carefully and sustainably scale the expectations of the target customers
and reliably exceeding or meeting the expectations that have been highlighted. In order to attain
this, the employees in all these areas of the form need to concentrate on serving and
understanding the consumers and it will not succeed if all the marketing takes place only in the
marketing department33. Reckitt Benckiser wants their company to move from the practice of
transaction based marketing which concentrates on the individual exchanges to the relationship
32 Sohail, M. Sadiq, Ibrahim M. Al-Jabri, and Kamarudeen Masawudu Wahid. "Relationship
between marketing program and brand loyalty: Is there an influence of gender?." Journal for
Global Business Advancement 10.2 (2017): 109-124.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Marketing Process
The method of marketing of Reckitt Benckiser is segmented into a tactical and strategic
step. The phase related to strategy has three aspects that includes the targeting, segmentation and
positioning. The company needs to differentiate among the various groups of the consumers in
the market division and select which group they can serve in an effective manner and interact the
core benefit they would be able to offer to the group.
The process of marketing is even inclusive of the introduction and designing of the
several strategies that are generally known as the marketing mix which is the product, price,
place and promotion32. The marketing mix is undertaken by assessing, controlling and rectifying
the process of marketing in order to accomplish the objectives of the company that is to
incorporate the innovative and improved products in order to lower their initial stage.
The managerial philosophy of the organization puts the main focus on the satisfaction of
the customers as the process of keeping and retaining the loyal consumers. The marketers of
Reckitt Benckiser to urge carefully and sustainably scale the expectations of the target customers
and reliably exceeding or meeting the expectations that have been highlighted. In order to attain
this, the employees in all these areas of the form need to concentrate on serving and
understanding the consumers and it will not succeed if all the marketing takes place only in the
marketing department33. Reckitt Benckiser wants their company to move from the practice of
transaction based marketing which concentrates on the individual exchanges to the relationship
32 Sohail, M. Sadiq, Ibrahim M. Al-Jabri, and Kamarudeen Masawudu Wahid. "Relationship
between marketing program and brand loyalty: Is there an influence of gender?." Journal for
Global Business Advancement 10.2 (2017): 109-124.
53
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
based marketing which focuses on serving the consumers over a longer period of time. The
process of attaining new customers and losing the ones who are old will not assist the company
to accomplish their objectives.
In this scenario, Reckitt Benckiser have domestic rival firms and therefore there are more
services and goods than the desires of the customers and hence the company needs to work
harder in order to convince the consumers to exchange with them.
The process of marketing comprises of the four components that is inclusive of strategic
marketing assessment, planning of the marketing mix, marketing incorporation and the
marketing control.
Strategic Marketing analysis
The objective of marketing in Reckitt Benckiser is to attain the needs in a profitable
manner. The organization should therefore explain the need which they would be able to satisfy.
An essential step in the strategy of marketing is known as the positioning which is associated
with communicating and generating a message that lucidly bases the company or the brand in
accordance to the rivals.
Marketing mix planning
After the construction of the strategy, the firm needs to decide on which tactics will be
most suitable in order to accomplish the goals of the strategy. The process of tactical marketing
33 Grover, Priya, and Sabyasachi Dasgupta. "The Impact of Brand Variance on Gender in FMCG
Sector: With." Holistic Approaches to Brand Culture and Communication Across
Industries (2017): 24.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
based marketing which focuses on serving the consumers over a longer period of time. The
process of attaining new customers and losing the ones who are old will not assist the company
to accomplish their objectives.
In this scenario, Reckitt Benckiser have domestic rival firms and therefore there are more
services and goods than the desires of the customers and hence the company needs to work
harder in order to convince the consumers to exchange with them.
The process of marketing comprises of the four components that is inclusive of strategic
marketing assessment, planning of the marketing mix, marketing incorporation and the
marketing control.
Strategic Marketing analysis
The objective of marketing in Reckitt Benckiser is to attain the needs in a profitable
manner. The organization should therefore explain the need which they would be able to satisfy.
An essential step in the strategy of marketing is known as the positioning which is associated
with communicating and generating a message that lucidly bases the company or the brand in
accordance to the rivals.
Marketing mix planning
After the construction of the strategy, the firm needs to decide on which tactics will be
most suitable in order to accomplish the goals of the strategy. The process of tactical marketing
33 Grover, Priya, and Sabyasachi Dasgupta. "The Impact of Brand Variance on Gender in FMCG
Sector: With." Holistic Approaches to Brand Culture and Communication Across
Industries (2017): 24.
54
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
is associated with creating a marketing mix of the four elements that includes the price, place
product and promotion that meets the strategy for the targeted set of the needs of the customers.
Marketing implementation
Reckitt Benckiser by implementing the marketing components can more efficiently make
use of the resources. On the other hand, the managing the four of five promotional activities
individually has an effect on the marketing process34. Furthermore, promotional expenses are
seemed to be better allocated effectively as the differences among the promotional mechanism
become more obvious. This reasoning has to led to the cohesive marketing communications
within which all the promotional equipment are regarded to be a part of the similar effort and
every one of the equipment receives full regards with respect to their efficiency and costs.
Production
The production process of the company has an innovative strategy with the help of which
the company is able to manufacture quality products by making use of innovative technologies
with cost effective mechanisms. Reckitt Benckiser has many manufacturing units all over the
globe and each one of them has their unique feature according to the company where it
functions. The company maintains various batches within which the company has to
manufacture their products and thereby is able to maintain record of their products. The branding
of the product is difficulty as the company has various lines of products that are well managed
and financed. The company even has a well-established distribution system. The company has an
effective packaging and labelling process with the help of which the company is able to maintain
34 Mishra, Subrat P., Ayasa Kanta Mohanty, and Brajaraj Mohanty. "Are There Dominant
Approaches to Strategy Making?." Vilakshan: The XIMB Journal of Management 12.1 (2015).
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
is associated with creating a marketing mix of the four elements that includes the price, place
product and promotion that meets the strategy for the targeted set of the needs of the customers.
Marketing implementation
Reckitt Benckiser by implementing the marketing components can more efficiently make
use of the resources. On the other hand, the managing the four of five promotional activities
individually has an effect on the marketing process34. Furthermore, promotional expenses are
seemed to be better allocated effectively as the differences among the promotional mechanism
become more obvious. This reasoning has to led to the cohesive marketing communications
within which all the promotional equipment are regarded to be a part of the similar effort and
every one of the equipment receives full regards with respect to their efficiency and costs.
Production
The production process of the company has an innovative strategy with the help of which
the company is able to manufacture quality products by making use of innovative technologies
with cost effective mechanisms. Reckitt Benckiser has many manufacturing units all over the
globe and each one of them has their unique feature according to the company where it
functions. The company maintains various batches within which the company has to
manufacture their products and thereby is able to maintain record of their products. The branding
of the product is difficulty as the company has various lines of products that are well managed
and financed. The company even has a well-established distribution system. The company has an
effective packaging and labelling process with the help of which the company is able to maintain
34 Mishra, Subrat P., Ayasa Kanta Mohanty, and Brajaraj Mohanty. "Are There Dominant
Approaches to Strategy Making?." Vilakshan: The XIMB Journal of Management 12.1 (2015).
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55
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
quality and uniqueness of their products that is able to attract the consumers and is even able to
increase their level of sales35. The organization therefore looks to improve the level production
facility by bringing in new and improved technologies related to the process of production and
thereby is able to make use of the available resources in an effective manner.
Distribution
The process of distribution puts a lot of focus on the effective distribution plans and
strategies in order to make the product a huge success and therefore it is essential to undertake an
in-depth assessment of what the process of distribution means to the management and the
employees of Reckitt Benckiser and how they have the need to make it a differential benefit over
their competitors.
The distribution channel is undertaken in order to transfer the services and the goods from the
manufacturing unit to the market where the consumers can purchase the same. It looks to
overcome the possession gaps and the time place that separates the services and the goods from
the customers. An efficient distribution channel needs to be inclusive of the customers and the
manufacturers. In the current time as the horizon of the market has expanded, the customers are
quick in realising the significance of bringing in wholesalers and the retailers in the mechanism
as well. The distribution of Reckitt Benckiser has been given as follows:
35 Bhardwaj, Siddharatha S., and Dev Kumar. "Environmental scanning of FMCG companies in
India: a comparative study." International Journal of Management and International Business
Studies 4.1 (2014): 39-50.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
quality and uniqueness of their products that is able to attract the consumers and is even able to
increase their level of sales35. The organization therefore looks to improve the level production
facility by bringing in new and improved technologies related to the process of production and
thereby is able to make use of the available resources in an effective manner.
Distribution
The process of distribution puts a lot of focus on the effective distribution plans and
strategies in order to make the product a huge success and therefore it is essential to undertake an
in-depth assessment of what the process of distribution means to the management and the
employees of Reckitt Benckiser and how they have the need to make it a differential benefit over
their competitors.
The distribution channel is undertaken in order to transfer the services and the goods from the
manufacturing unit to the market where the consumers can purchase the same. It looks to
overcome the possession gaps and the time place that separates the services and the goods from
the customers. An efficient distribution channel needs to be inclusive of the customers and the
manufacturers. In the current time as the horizon of the market has expanded, the customers are
quick in realising the significance of bringing in wholesalers and the retailers in the mechanism
as well. The distribution of Reckitt Benckiser has been given as follows:
35 Bhardwaj, Siddharatha S., and Dev Kumar. "Environmental scanning of FMCG companies in
India: a comparative study." International Journal of Management and International Business
Studies 4.1 (2014): 39-50.
56
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Matching
In this process it is essential to keep in mind that the purchasers wants to buy the
products. The brand manager of Reckitt Benckiser explained the process of understanding the
product and making a comparison with the other products that have been manufactured.
Logistics
Reckitt Benckiser has an effective level of logistics and with the help of the same the
company is able to distribute the product to various markets and thereby is able to reach every
consumer who are available in the market36. The logistics maintains a key level of operational
activity with the help of which the company is able to connect with all the manufacturing units
and is able to make distribute the products in an effective manner.
The selling process is the method of influencing others in order to exchange something
that is in return for the price that is paid. Sales is looked upon as the lifeline any the company as
in common cases the selling is the revenue creating an activity of the firm. Therefore the sales
management department ascertains whether the company will be existent in the competitive
business aspect.
Distribution is the process that makes sure that the final goods availability of the final
goods of the effective quality at the correct place in the right quantity and even at the right time
in order to satisfy the real consumers. The process of distribution is to make sure that the
36 Peristeris, Orestes, Peter J. Kilbourn, and Jacobus Walters. "Benchmarking supply chain
management practices in a South African confectionery manufacturing organisation." Journal of
Transport and Supply Chain Management 9.1 (2015): 1-10.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Matching
In this process it is essential to keep in mind that the purchasers wants to buy the
products. The brand manager of Reckitt Benckiser explained the process of understanding the
product and making a comparison with the other products that have been manufactured.
Logistics
Reckitt Benckiser has an effective level of logistics and with the help of the same the
company is able to distribute the product to various markets and thereby is able to reach every
consumer who are available in the market36. The logistics maintains a key level of operational
activity with the help of which the company is able to connect with all the manufacturing units
and is able to make distribute the products in an effective manner.
The selling process is the method of influencing others in order to exchange something
that is in return for the price that is paid. Sales is looked upon as the lifeline any the company as
in common cases the selling is the revenue creating an activity of the firm. Therefore the sales
management department ascertains whether the company will be existent in the competitive
business aspect.
Distribution is the process that makes sure that the final goods availability of the final
goods of the effective quality at the correct place in the right quantity and even at the right time
in order to satisfy the real consumers. The process of distribution is to make sure that the
36 Peristeris, Orestes, Peter J. Kilbourn, and Jacobus Walters. "Benchmarking supply chain
management practices in a South African confectionery manufacturing organisation." Journal of
Transport and Supply Chain Management 9.1 (2015): 1-10.
57
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
availability of the brand by taking a precise orders and making sure that the optimal levels are
secured with an effective delivery service.
Communication
The process of communication determines the level of interaction that takes place inside
and outside of the company. The company is able to improve their effectiveness by taking
assistance of suggestions that have been given by the employees and the other related
stakeholders. The communication level within Reckitt Benckiser is an ideal and a suitable one.
There exists a healthy and cordial relationship among the employees and the management as a
simple and straightforward communication process is existent. The employees can communicate
with the management in an effective manner and is even able to take advices from them. This
improves the operational activity of the company. It is even seen that surveys are undertaken by
the company with the help of questionnaires in relation to their products and the issues faced by
the consumers. The questionnaire would be helpful for the company in gaining the responses and
the feelings that are in the minds of the consumers and thereby is able to make use of the
suggestions and rectify the issues that are existent in the business37. Reckitt Benckiser even
provides their helpline numbers in the products so that the consumers would be able to contact
the company directly and thereby would be able to express the issues they are facing. The
company even undertakes meetings with the investors and the shareholders either annually or
37 Mukiira, Evelyn Maradufu, Mr Celestine Musau, and Mr Joseph Munyao. "EFFECT OF
EXPERIENTIAL MARKETING IN BUILDING BRAND EQUITY: A CASE OF SELECTED
UNILEVER TANZANIA BRANDS." International Journal of Supply Chain Management 2.1
(2017): 1-31.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
availability of the brand by taking a precise orders and making sure that the optimal levels are
secured with an effective delivery service.
Communication
The process of communication determines the level of interaction that takes place inside
and outside of the company. The company is able to improve their effectiveness by taking
assistance of suggestions that have been given by the employees and the other related
stakeholders. The communication level within Reckitt Benckiser is an ideal and a suitable one.
There exists a healthy and cordial relationship among the employees and the management as a
simple and straightforward communication process is existent. The employees can communicate
with the management in an effective manner and is even able to take advices from them. This
improves the operational activity of the company. It is even seen that surveys are undertaken by
the company with the help of questionnaires in relation to their products and the issues faced by
the consumers. The questionnaire would be helpful for the company in gaining the responses and
the feelings that are in the minds of the consumers and thereby is able to make use of the
suggestions and rectify the issues that are existent in the business37. Reckitt Benckiser even
provides their helpline numbers in the products so that the consumers would be able to contact
the company directly and thereby would be able to express the issues they are facing. The
company even undertakes meetings with the investors and the shareholders either annually or
37 Mukiira, Evelyn Maradufu, Mr Celestine Musau, and Mr Joseph Munyao. "EFFECT OF
EXPERIENTIAL MARKETING IN BUILDING BRAND EQUITY: A CASE OF SELECTED
UNILEVER TANZANIA BRANDS." International Journal of Supply Chain Management 2.1
(2017): 1-31.
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58
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
half yearly with the help of which the all the issues can be put forth and thereby a good
relationship can be maintained.
Price Product and Quality Relationship
The process of pricing even has a psychological impact on the demand of the product.
The customers crucially depend on the price that acts as an indicator of the quality of the product
when they must take the decisions related to the purchase. The results have indicated that
perception of the customers towards the quality of the product is dependent to the price of the
product. Reckitt Benckiser generally looks to make use of the combination of the distinct
services and goods which is in relation to the objective of the transaction. The company even
provides the service of giving out the warranty with the help of which the in case of any
discrepancy in relation to the products, the company would be able to provide the refunds and
exchanges to the customers. The pricing aim and objective of Reckitt Benckiser has been to
optimise the level of profit and to raise the level of sales and increase and maintain the market
share of the company38.
The main aim of Reckitt Benckiser has been to maximise the level of profit and therefore
it tries to construct the prices that would optimise the profits. It anticipates the costs and the
demands related with the substitute prices and selects the prices that manufactures optimum
investment rate or the cash flow. Reckitt Benckiser even takes into account the impacts of the
other variables of marketing mix, competitors and the legal limitations on the price.
38 Lekhanya, Lawrence Mpele, Nze Grace Olajumoke, and Dorasamy Nirmala. "Exploring fast
moving consumer goods (FMCG) small, medium and micro enterprises manufacturers’ need for
innovation to achieve growth." (2017).
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
half yearly with the help of which the all the issues can be put forth and thereby a good
relationship can be maintained.
Price Product and Quality Relationship
The process of pricing even has a psychological impact on the demand of the product.
The customers crucially depend on the price that acts as an indicator of the quality of the product
when they must take the decisions related to the purchase. The results have indicated that
perception of the customers towards the quality of the product is dependent to the price of the
product. Reckitt Benckiser generally looks to make use of the combination of the distinct
services and goods which is in relation to the objective of the transaction. The company even
provides the service of giving out the warranty with the help of which the in case of any
discrepancy in relation to the products, the company would be able to provide the refunds and
exchanges to the customers. The pricing aim and objective of Reckitt Benckiser has been to
optimise the level of profit and to raise the level of sales and increase and maintain the market
share of the company38.
The main aim of Reckitt Benckiser has been to maximise the level of profit and therefore
it tries to construct the prices that would optimise the profits. It anticipates the costs and the
demands related with the substitute prices and selects the prices that manufactures optimum
investment rate or the cash flow. Reckitt Benckiser even takes into account the impacts of the
other variables of marketing mix, competitors and the legal limitations on the price.
38 Lekhanya, Lawrence Mpele, Nze Grace Olajumoke, and Dorasamy Nirmala. "Exploring fast
moving consumer goods (FMCG) small, medium and micro enterprises manufacturers’ need for
innovation to achieve growth." (2017).
59
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
The profit maximisation goal is looked upon to be far more advantageous to the firm if it
is taken for a longer period of time. It is due to this reason that the company even has to suffer
the losses during a short run.
Power and Politics
The word power concentrates on the usage of the non-permitted means and focuses on
the self-interest. On the other hand, politics is explained as the management of influence in order
to attain the ends that have not been permitted by the company and to gather the permitted ends
with the help of the non-permitted means of influence. Politics is seen to be a necessary role
coming out of the variations in the self-interests of the individuals and on the other hand, politics
is looked upon as the process of creative sacrifice among the interests that are competing in
nature39. Politics is the usage of the powers in order to construct communally acceptable ends
and the processes that balances the collective and the individual interests. Reckitt Benckiser
looks into the following issues and they are:
Gaining additional benefits
Impression
Promotion
These kinds of politics takes place in most of the organizations as the employees looks to
butter their seniors in order to make an impression for themselves. It is due to the fact that the
39 Kernstock, Joachim, Tim Oliver Brexendorf, and Shaun M. Powell. "Introduction: Luxury
Brand Management Insights and Opportunities." Advances in Luxury Brand Management.
Palgrave Macmillan, Cham, 2017. 1-24.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
The profit maximisation goal is looked upon to be far more advantageous to the firm if it
is taken for a longer period of time. It is due to this reason that the company even has to suffer
the losses during a short run.
Power and Politics
The word power concentrates on the usage of the non-permitted means and focuses on
the self-interest. On the other hand, politics is explained as the management of influence in order
to attain the ends that have not been permitted by the company and to gather the permitted ends
with the help of the non-permitted means of influence. Politics is seen to be a necessary role
coming out of the variations in the self-interests of the individuals and on the other hand, politics
is looked upon as the process of creative sacrifice among the interests that are competing in
nature39. Politics is the usage of the powers in order to construct communally acceptable ends
and the processes that balances the collective and the individual interests. Reckitt Benckiser
looks into the following issues and they are:
Gaining additional benefits
Impression
Promotion
These kinds of politics takes place in most of the organizations as the employees looks to
butter their seniors in order to make an impression for themselves. It is due to the fact that the
39 Kernstock, Joachim, Tim Oliver Brexendorf, and Shaun M. Powell. "Introduction: Luxury
Brand Management Insights and Opportunities." Advances in Luxury Brand Management.
Palgrave Macmillan, Cham, 2017. 1-24.
60
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
employees are in need of additional benefits like getting a promotion40. It is due to this factor that
the effective people are not able to gain promotions.
External Analysis
The external analysis refers to the external aspects with the help of which the company is
able to understand the aspects that have been taking place outside their organizational level and
thereby is able to understand their position in the global market.
SWOT Analysis
The SWOT analysis of Reckitt Benckiser that has been conducted reveals the following
outcomes. The SWOT analysis of the company essentially lists the strengths, weaknesses,
opportunities and the threats of Reckitt Benckiser as a corporate entity.
Strengths
The strengths of the corporate entity have been numerous which have enabled the
company to maintain the top position in the industry. One of the major strengths of the company
have been that the company have won numerous product of the year awards. This indicate the
fact that products of the company have been acknowledged and accepted by the consumers on a
vast range which has fetched the company the product of the year awards.
40 Tehrani, Narges Sharifi, Bahareh Javadizadeh, and Mohammadali Nadi. "The Relationship
Between Customer Knowledge Management, Customer Relationship with Organizational
Innovation and Customer Loyalty (Case Study: Consumers and Manufacturers of Proteinindustry
in Isfahan Province)." International Journal of Business and Management Invention 4.2 (2015):
59-67.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
employees are in need of additional benefits like getting a promotion40. It is due to this factor that
the effective people are not able to gain promotions.
External Analysis
The external analysis refers to the external aspects with the help of which the company is
able to understand the aspects that have been taking place outside their organizational level and
thereby is able to understand their position in the global market.
SWOT Analysis
The SWOT analysis of Reckitt Benckiser that has been conducted reveals the following
outcomes. The SWOT analysis of the company essentially lists the strengths, weaknesses,
opportunities and the threats of Reckitt Benckiser as a corporate entity.
Strengths
The strengths of the corporate entity have been numerous which have enabled the
company to maintain the top position in the industry. One of the major strengths of the company
have been that the company have won numerous product of the year awards. This indicate the
fact that products of the company have been acknowledged and accepted by the consumers on a
vast range which has fetched the company the product of the year awards.
40 Tehrani, Narges Sharifi, Bahareh Javadizadeh, and Mohammadali Nadi. "The Relationship
Between Customer Knowledge Management, Customer Relationship with Organizational
Innovation and Customer Loyalty (Case Study: Consumers and Manufacturers of Proteinindustry
in Isfahan Province)." International Journal of Business and Management Invention 4.2 (2015):
59-67.
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STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
The packaging of the products that is facilitated by the company has been of high quality.
This has brought the company acclamation from the consumers, all over the world41. Moreover,
the packaging of a product forms the major aspect of a product that enhances the pricing of that
particular product. This means that the portable packaging is an essential feature of the products
of Reckitt Benckiser that brings about a price advantage.
The research and development department of the selected corporate entity also reveals a
high degree of strength, which has helped the conglomerate to achieve greater heights in the field
of innovation. Furthermore, the production of innovative products has helped in the company to
maintain its top position in the industry42.
The marketing tools and structures utilized by the advertising and marketing department
of the particular company also has facilitated enough promotion of the products via the channels
of advertising media and print media like the TVCs and OOHs. Moreover, such an innovative
and farsighted marketing strategy has helped the management of the conglomerate to expand the
targeted band of customers thus, increase revenue.
The efficient management of Reckitt Benckiser also has led to the generation of a
dedicated and experienced work force that is always ready to fulfil the organizational objectives.
41 Bititci, Umit, and Stavros Karamperidis. "10 Operations Management." Enterprise and its
Business Environment(2016).
42 Saenko, Natalia R., et al. "Research in action integrated marketing communications as the
elements of information and virtualization market relations." International review of
management and marketing 6.1S (2016).
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
The packaging of the products that is facilitated by the company has been of high quality.
This has brought the company acclamation from the consumers, all over the world41. Moreover,
the packaging of a product forms the major aspect of a product that enhances the pricing of that
particular product. This means that the portable packaging is an essential feature of the products
of Reckitt Benckiser that brings about a price advantage.
The research and development department of the selected corporate entity also reveals a
high degree of strength, which has helped the conglomerate to achieve greater heights in the field
of innovation. Furthermore, the production of innovative products has helped in the company to
maintain its top position in the industry42.
The marketing tools and structures utilized by the advertising and marketing department
of the particular company also has facilitated enough promotion of the products via the channels
of advertising media and print media like the TVCs and OOHs. Moreover, such an innovative
and farsighted marketing strategy has helped the management of the conglomerate to expand the
targeted band of customers thus, increase revenue.
The efficient management of Reckitt Benckiser also has led to the generation of a
dedicated and experienced work force that is always ready to fulfil the organizational objectives.
41 Bititci, Umit, and Stavros Karamperidis. "10 Operations Management." Enterprise and its
Business Environment(2016).
42 Saenko, Natalia R., et al. "Research in action integrated marketing communications as the
elements of information and virtualization market relations." International review of
management and marketing 6.1S (2016).
62
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
The customer base of Reckitt Benckiser being so vast has been one of the major strengths
of this corporate entity. The conglomerate has expanded its operations in over 60 countries and
they are sold in over 180 countries.
Weaknesses
The major weakness of the corporate entity has been that being a manufacturer, the
ultimate reputation of the manufacturing firm lies in the hands of the retailers. This means that
the retailers selling the Reckitt Benckiser products that have already expired broadly affects the
image of the corporate entity.
The firm also faces strong competition from its competitors which evidently indicates the
fact that the market expansion is slow.
Opportunities
The opportunities of Reckitt Benckiser that still remain unexplored are that the entity can
consider the acquisition of other business units and firms that perform well locally. This will not
only add up to the goodwill of the firm but also spread the boundaries of business along with the
expansion of the customer base.
The marketing department of the company may also consider the strategy to bifurcate the
line of products. It may develop a particular line of product for the economy class and another
line of cheaper products for the consumers in the rural areas. This will not only increase the total
revenue but also add to the corporate social responsibilities of the firm.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
The customer base of Reckitt Benckiser being so vast has been one of the major strengths
of this corporate entity. The conglomerate has expanded its operations in over 60 countries and
they are sold in over 180 countries.
Weaknesses
The major weakness of the corporate entity has been that being a manufacturer, the
ultimate reputation of the manufacturing firm lies in the hands of the retailers. This means that
the retailers selling the Reckitt Benckiser products that have already expired broadly affects the
image of the corporate entity.
The firm also faces strong competition from its competitors which evidently indicates the
fact that the market expansion is slow.
Opportunities
The opportunities of Reckitt Benckiser that still remain unexplored are that the entity can
consider the acquisition of other business units and firms that perform well locally. This will not
only add up to the goodwill of the firm but also spread the boundaries of business along with the
expansion of the customer base.
The marketing department of the company may also consider the strategy to bifurcate the
line of products. It may develop a particular line of product for the economy class and another
line of cheaper products for the consumers in the rural areas. This will not only increase the total
revenue but also add to the corporate social responsibilities of the firm.
63
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
The conglomerate should also consider developing the supply chain of the company. To
be more precise, the development of the overall distribution system of the firm should be
considered.
Threats
A potential threat that Reckitt Benckiser is subjected to is that the economic slowdown
that is impending will, in all probabilities result in the reduction of the purchasing power of the
public. This means that the expansion and capabilities in regards to the industrial market is likely
deteriorate which will affect the corporate entity, Reckitt Benckiser, as well
The alterations in the Government policies and laws will affect the performance of the
Reckitt Benckiser products. This means that the increase in a particular business tax will increase
the price of a particular product, which will in turn impose a negative effect on the demand of the
products of the selected company.
The fluctuations in the exchange rate in regards to currency also are likely to affect the
business by Reckitt Benckiser.
Another potential threat is that the emergence of a competitor firm that offers the
products at a substantial lower price will drastically affect the established business by Reckitt
Benckiser.
PESTLE Analysis
Political – The political climate being volatile in nature and the economic uncertainty will in all
probabilities, affect the business by Reckitt Benckiser
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
The conglomerate should also consider developing the supply chain of the company. To
be more precise, the development of the overall distribution system of the firm should be
considered.
Threats
A potential threat that Reckitt Benckiser is subjected to is that the economic slowdown
that is impending will, in all probabilities result in the reduction of the purchasing power of the
public. This means that the expansion and capabilities in regards to the industrial market is likely
deteriorate which will affect the corporate entity, Reckitt Benckiser, as well
The alterations in the Government policies and laws will affect the performance of the
Reckitt Benckiser products. This means that the increase in a particular business tax will increase
the price of a particular product, which will in turn impose a negative effect on the demand of the
products of the selected company.
The fluctuations in the exchange rate in regards to currency also are likely to affect the
business by Reckitt Benckiser.
Another potential threat is that the emergence of a competitor firm that offers the
products at a substantial lower price will drastically affect the established business by Reckitt
Benckiser.
PESTLE Analysis
Political – The political climate being volatile in nature and the economic uncertainty will in all
probabilities, affect the business by Reckitt Benckiser
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STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Economic – The GDP growth has been strong in the emerging markets, which may affect
business. The fluctuations in case of the currency exchange rates also have the potential yo affect
business.
Social – The products provided by the Reckitt Benckiser have resulted in the increase in the life
expectancy of the consumers. However, it shall be noted here that the estimated life of the
consumers will only increase when they are able to afford the higher healthcare costs. The
company also has contributed in the social field by the partnership with ‘Save the Children’.
Technological – The corporate entity also has engaged in the innovation of the implemented
technology in order to move towards a sustainable organization. Reckitt Benckiser being a
manufacturing firm, has installed innovated technological equipment in its organization for the
production of the wide range of products43. This has not only decreased the cost of production
but also increased the amount of obtained revenue from the consumers.
Legal – The business promoted by Reckitt Benckiser may be exposed to the alterations in the
taxation laws and regulatory procedures that are brought about by the government of a particular
region. Moreover, the suppliers of the company have to comply with the already established
framework, which may have a negative effect on the business by the conglomerate.
43 Shabbir, Rizwan, Ahmad Sohail Khan, and Waseem Hassan. "EFFECTS OF CAUSE-
RELATED MARKETING (CRM) ON BUYING DECISION: DOES IT MATTER IN FMCG
SECTOR." (2017).
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Economic – The GDP growth has been strong in the emerging markets, which may affect
business. The fluctuations in case of the currency exchange rates also have the potential yo affect
business.
Social – The products provided by the Reckitt Benckiser have resulted in the increase in the life
expectancy of the consumers. However, it shall be noted here that the estimated life of the
consumers will only increase when they are able to afford the higher healthcare costs. The
company also has contributed in the social field by the partnership with ‘Save the Children’.
Technological – The corporate entity also has engaged in the innovation of the implemented
technology in order to move towards a sustainable organization. Reckitt Benckiser being a
manufacturing firm, has installed innovated technological equipment in its organization for the
production of the wide range of products43. This has not only decreased the cost of production
but also increased the amount of obtained revenue from the consumers.
Legal – The business promoted by Reckitt Benckiser may be exposed to the alterations in the
taxation laws and regulatory procedures that are brought about by the government of a particular
region. Moreover, the suppliers of the company have to comply with the already established
framework, which may have a negative effect on the business by the conglomerate.
43 Shabbir, Rizwan, Ahmad Sohail Khan, and Waseem Hassan. "EFFECTS OF CAUSE-
RELATED MARKETING (CRM) ON BUYING DECISION: DOES IT MATTER IN FMCG
SECTOR." (2017).
65
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Environmental – The corporate entity has taken enough initiative to implement sustainability in
the organization. Moreover, there has been numerous processes undertaken by Reckitt Benckiser
to reduce its carbon footprint.
Marketing Mix
The marketing mix comprises of the 4 Ps that are known as the price, product, place and
promotion. Each one of them for Reckitt Benckiser is given as follows:
Product
Fabric Care: Hydra Excel, Blanks, Calgon, Vanish, Woolite, Robin, Calfort, Spray n Wash
Surface Care: Espadol, Power Clean, Cillit Bang, Lysol, Dettol, Clean and Smooth, Lysol
Home Care: Finish, Mortein. Haze, PifPaf, Airwick, Sprayfresh, Born Ar
Health Care: Trix, Mucines, Benagol, Strepsils, Nurofen, Gaviscon, Nureflex
Personal Care: Veet, Cherry, Dettol, Clearasil, Sagrotan, Skincalm, Sunbeam
Food: Fried Onions, Nuggets, Redhot, French’s Mustard, Potato Sticks, Cattlemen’s
Pharmaceutical: Suboxone, Durex
Price
The company assesses their prices on a frequent basis. It gives their biggest significance
to the determination of the prices. They have the habit of making sure that fair price of their
products are being maintained so that the consumers can have those products at a seeming value.
The prices are maintained to the optimal level of the value and the price is not so high or neither
is very low. Even though similar products are sold in the market at a lower prices, but there are
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Environmental – The corporate entity has taken enough initiative to implement sustainability in
the organization. Moreover, there has been numerous processes undertaken by Reckitt Benckiser
to reduce its carbon footprint.
Marketing Mix
The marketing mix comprises of the 4 Ps that are known as the price, product, place and
promotion. Each one of them for Reckitt Benckiser is given as follows:
Product
Fabric Care: Hydra Excel, Blanks, Calgon, Vanish, Woolite, Robin, Calfort, Spray n Wash
Surface Care: Espadol, Power Clean, Cillit Bang, Lysol, Dettol, Clean and Smooth, Lysol
Home Care: Finish, Mortein. Haze, PifPaf, Airwick, Sprayfresh, Born Ar
Health Care: Trix, Mucines, Benagol, Strepsils, Nurofen, Gaviscon, Nureflex
Personal Care: Veet, Cherry, Dettol, Clearasil, Sagrotan, Skincalm, Sunbeam
Food: Fried Onions, Nuggets, Redhot, French’s Mustard, Potato Sticks, Cattlemen’s
Pharmaceutical: Suboxone, Durex
Price
The company assesses their prices on a frequent basis. It gives their biggest significance
to the determination of the prices. They have the habit of making sure that fair price of their
products are being maintained so that the consumers can have those products at a seeming value.
The prices are maintained to the optimal level of the value and the price is not so high or neither
is very low. Even though similar products are sold in the market at a lower prices, but there are
66
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
people who want this kind of product. Reckitt Benckiser has accomplished the loyalty and the
trust of the consumers. The products are based on the method of prices in relation to the
perception of the value of the buyers44. Reckitt Benckiser dies not make use of the pricing
strategy that is based on value. It constructs their relative price to their competitors and hence the
company makes use of skimming pricing.
Place
Reckitt Benckiser makes use of their general distribution channel in order to distribute
their products in an effective manner. The distribution channel is handled by a huge experienced
workforce. The distribution channel delivers their products directly to the retailers. In other
words, it is known as vertical integration and by making use of this strategy the Reckitt
Benckiser accomplishes the cost effectiveness.
Promotion
The company undertakes their promotion with the help of advertisements and the
company advertises their products for the mass population of the market. Advertisement is taken
as an effective mechanism as television is a key way to reach the mass market. Advertisements
through internet and social media is a key process with the help of which the products of Reckitt
Benckiser can be highlighted in the minds of the consumers.
44 Agarwal, Varun, and Sweta Agrawalla. "Patanjali’s marketing mix: the monk’s new
Ferrari." Emerald Emerging Markets Case Studies 7.4 (2017): 1-30.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
people who want this kind of product. Reckitt Benckiser has accomplished the loyalty and the
trust of the consumers. The products are based on the method of prices in relation to the
perception of the value of the buyers44. Reckitt Benckiser dies not make use of the pricing
strategy that is based on value. It constructs their relative price to their competitors and hence the
company makes use of skimming pricing.
Place
Reckitt Benckiser makes use of their general distribution channel in order to distribute
their products in an effective manner. The distribution channel is handled by a huge experienced
workforce. The distribution channel delivers their products directly to the retailers. In other
words, it is known as vertical integration and by making use of this strategy the Reckitt
Benckiser accomplishes the cost effectiveness.
Promotion
The company undertakes their promotion with the help of advertisements and the
company advertises their products for the mass population of the market. Advertisement is taken
as an effective mechanism as television is a key way to reach the mass market. Advertisements
through internet and social media is a key process with the help of which the products of Reckitt
Benckiser can be highlighted in the minds of the consumers.
44 Agarwal, Varun, and Sweta Agrawalla. "Patanjali’s marketing mix: the monk’s new
Ferrari." Emerald Emerging Markets Case Studies 7.4 (2017): 1-30.
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STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Key Competitors
Reckitt Benckiser is a renowned company that looks to manufacture products that is related to
personal, health and hygiene products for the commodity. There are various competitors that are
available in the economy and these companies have been taking the initiative of delivering the
products that are absolutely similar to the products that have been manufactured by Reckitt
Benckiser. The key competitors of Reckitt Benckiser have been given in the table below:
It is seen that most of the companies that have been highlighted in the table shows that
there exists a strong and stern level of competition in the market and thereby all the companies
have been additional and innovative measures with the help of which the companies would look
to attain competitive edge. The main aim of all the companies has been to earn profit and
therefore all the companies have been assessing the innovative strategies of their competitors and
thereby have been taking measures with the help of which their operational activities and
additionally the revenue of the company can be enhanced.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Key Competitors
Reckitt Benckiser is a renowned company that looks to manufacture products that is related to
personal, health and hygiene products for the commodity. There are various competitors that are
available in the economy and these companies have been taking the initiative of delivering the
products that are absolutely similar to the products that have been manufactured by Reckitt
Benckiser. The key competitors of Reckitt Benckiser have been given in the table below:
It is seen that most of the companies that have been highlighted in the table shows that
there exists a strong and stern level of competition in the market and thereby all the companies
have been additional and innovative measures with the help of which the companies would look
to attain competitive edge. The main aim of all the companies has been to earn profit and
therefore all the companies have been assessing the innovative strategies of their competitors and
thereby have been taking measures with the help of which their operational activities and
additionally the revenue of the company can be enhanced.
68
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Suppliers
Reckitt Benckiser is a manufacturer of various products and services therefore the
company is in need of the various suppliers. The main suppliers of the business are the ones who
have been providing raw materials like the various chemicals that are used for the purpose of
manufacturing health care products and hygiene products. The other suppliers include providing
raw materials like the papers and boards, palm oil, soy, rattan, latex, sola and raw dust. The
company has specified suppliers who are their key suppliers and they have been able to maintain
a cordial and peaceful relationship with the suppliers. On the other hand, there are domestic
suppliers as well with the help of which the companies are able to attain raw materials from
various domestic sources45. Hence, the company undertakes the measure with the help of which
they take tenders and thereby is able to make contract with the suppliers who provide the best
quality of the product at a cheaper rate. Therefore, the company needs to undertake various
strategies and measures with the help of which they can maintain effective relationship with the
suppliers and thereby able to gain all the raw materials in how much quantity whenever they
desire. The management needs to make frequent checks and examinations in order to see that the
payment given to the suppliers are on time and the product given as raw material of the standard
that has been assured by the supplier. It is seen that this makes an effective operational activity of
the company.
45 Åsberg, Per. "Perceived brand portfolios: how individual views hamper efficiency." Journal of
Product & Brand Management24.6 (2015): 610-620.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Suppliers
Reckitt Benckiser is a manufacturer of various products and services therefore the
company is in need of the various suppliers. The main suppliers of the business are the ones who
have been providing raw materials like the various chemicals that are used for the purpose of
manufacturing health care products and hygiene products. The other suppliers include providing
raw materials like the papers and boards, palm oil, soy, rattan, latex, sola and raw dust. The
company has specified suppliers who are their key suppliers and they have been able to maintain
a cordial and peaceful relationship with the suppliers. On the other hand, there are domestic
suppliers as well with the help of which the companies are able to attain raw materials from
various domestic sources45. Hence, the company undertakes the measure with the help of which
they take tenders and thereby is able to make contract with the suppliers who provide the best
quality of the product at a cheaper rate. Therefore, the company needs to undertake various
strategies and measures with the help of which they can maintain effective relationship with the
suppliers and thereby able to gain all the raw materials in how much quantity whenever they
desire. The management needs to make frequent checks and examinations in order to see that the
payment given to the suppliers are on time and the product given as raw material of the standard
that has been assured by the supplier. It is seen that this makes an effective operational activity of
the company.
45 Åsberg, Per. "Perceived brand portfolios: how individual views hamper efficiency." Journal of
Product & Brand Management24.6 (2015): 610-620.
69
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Customers
The final consumers irrespective gender, age, race, class are all the consumers for the
company. It is seen that the company has their operations all over the globe and has been able to
attract a large section of the consumers with the help of their variety of products. The products
that they offer are much demand and are used by all the consumers either directly or indirectly.
The products that they manufacture are all necessary products in the current lifestyle and
therefore are able to satisfy the needs of the consumers46. In order to classify the main customers,
it would be easier to say that the customers who are middle aged are in need of their product the
most as hygiene, health and personal care products are used by them the most. The company has
the aim of expanding their product network and their business with the help of which the
company would be able to enter new markets and gain an understanding of the products that are
demanded there and thereby bring in new products and even advertise their products in the new
market as well. The choice of the customers is a key factor and therefore measures have to be
taken with the help of which the company would be able to satisfy their competitive edge.
Recommendation
The analysis of the operational activities of Reckitt Benckiser explains that there are
certain aspects that can be improved and changes can be implemented in these aspects so that the
company can function in an effective manner. Reckitt Benckiser has an effective level of human
resource management but more focus should be given towards the employees by improving the
46 Rabe, Markus, et al. "Discrete event simulation as a strategic decision instrument for a CO2–
and cost-efficient distribution chain applied in the FMCG sector." International Journal of
Advanced Logistics 4.1 (2015): 47-53.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Customers
The final consumers irrespective gender, age, race, class are all the consumers for the
company. It is seen that the company has their operations all over the globe and has been able to
attract a large section of the consumers with the help of their variety of products. The products
that they offer are much demand and are used by all the consumers either directly or indirectly.
The products that they manufacture are all necessary products in the current lifestyle and
therefore are able to satisfy the needs of the consumers46. In order to classify the main customers,
it would be easier to say that the customers who are middle aged are in need of their product the
most as hygiene, health and personal care products are used by them the most. The company has
the aim of expanding their product network and their business with the help of which the
company would be able to enter new markets and gain an understanding of the products that are
demanded there and thereby bring in new products and even advertise their products in the new
market as well. The choice of the customers is a key factor and therefore measures have to be
taken with the help of which the company would be able to satisfy their competitive edge.
Recommendation
The analysis of the operational activities of Reckitt Benckiser explains that there are
certain aspects that can be improved and changes can be implemented in these aspects so that the
company can function in an effective manner. Reckitt Benckiser has an effective level of human
resource management but more focus should be given towards the employees by improving the
46 Rabe, Markus, et al. "Discrete event simulation as a strategic decision instrument for a CO2–
and cost-efficient distribution chain applied in the FMCG sector." International Journal of
Advanced Logistics 4.1 (2015): 47-53.
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STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
rewards and recognition and compensations to the employees for their performance at the
workplace so that they feel motivated and inspires them to provide maximum level of output.
Reckitt Benckiser even needs to assess the market from time to time in order to understand the
market trends and the taste and preferences of the customers with the help of which they can
introduce new and improved product in the market and thereby increase their market share and
customer base. In accordance to the financial aspect, the company has been able to improve their
income with respect to the expenses from the previous year and has even been able to increase
their level of asset for the company. Reckitt Benckiser can increase their level of profit by
increasing their level of sales in the market with the help of effective strategies so that the
company can sustain their cost and increase their revenue.
The company even needs to maintain an effective level of relationship with their
suppliers with the help of which they can attain the best quality of raw materials at a reasonable
level of price and thereby can provide quality products to the consumers at a cheaper price than
their competitors. The sales and marketing strategies of Reckitt Benckiser should be enhanced
from time to time by implementing innovative strategies with the help of which the company can
maintain competitive edge in the market and can even stay ahead of their competitors with
respect to sales and profits.
Conclusion
After analysing and a studying the effects of the paper after the numerous troubles
associated with the organizational behaviour within Reckitt Benckiser and the issues that are
affecting the overall performance of its management and specially its employee, followed by
using several preferred and particular list of areas where research was conducted at some point
by taking help of various external sources. Reckitt Benckiser is a multinational corporation
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
rewards and recognition and compensations to the employees for their performance at the
workplace so that they feel motivated and inspires them to provide maximum level of output.
Reckitt Benckiser even needs to assess the market from time to time in order to understand the
market trends and the taste and preferences of the customers with the help of which they can
introduce new and improved product in the market and thereby increase their market share and
customer base. In accordance to the financial aspect, the company has been able to improve their
income with respect to the expenses from the previous year and has even been able to increase
their level of asset for the company. Reckitt Benckiser can increase their level of profit by
increasing their level of sales in the market with the help of effective strategies so that the
company can sustain their cost and increase their revenue.
The company even needs to maintain an effective level of relationship with their
suppliers with the help of which they can attain the best quality of raw materials at a reasonable
level of price and thereby can provide quality products to the consumers at a cheaper price than
their competitors. The sales and marketing strategies of Reckitt Benckiser should be enhanced
from time to time by implementing innovative strategies with the help of which the company can
maintain competitive edge in the market and can even stay ahead of their competitors with
respect to sales and profits.
Conclusion
After analysing and a studying the effects of the paper after the numerous troubles
associated with the organizational behaviour within Reckitt Benckiser and the issues that are
affecting the overall performance of its management and specially its employee, followed by
using several preferred and particular list of areas where research was conducted at some point
by taking help of various external sources. Reckitt Benckiser is a multinational corporation
71
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
which is also working globally. The organizational behaviour concerning goal setting for the
company have concluded that the control of Reckitt Benckiser is powerful in placing dreams in
step with the competition within the FMCG industry globally. As there is requirement of
developing the FMCG sector globally, it is necessary to set difficult and effective dreams with
the intention to emerge as marketplace leaders. Despite of setting challenging dreams the
employees of Reckitt Benckiser are satisfied with those difficult dreams and acting well to gain
the goals which were supplied to them. The control style in Reckitt Benckiser is form of
participative control in which employees are given risk to fulfil their ideas for decision making
and thereby Reckitt Benckiser is utilising its employees by using getting one of a kind thoughts
from extraordinary employees this provides extra chances for purchasing better and
revolutionary thoughts. As the motivation and reward structures are in accordance to the
expectancy of the employees so the management are very a lot happy and do not need to go away
the business enterprise. The leadership patterns in Reckitt Benckiser are a combination of the
project oriented and relationship oriented however it is very distant towards courting the oriented
management style.
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
which is also working globally. The organizational behaviour concerning goal setting for the
company have concluded that the control of Reckitt Benckiser is powerful in placing dreams in
step with the competition within the FMCG industry globally. As there is requirement of
developing the FMCG sector globally, it is necessary to set difficult and effective dreams with
the intention to emerge as marketplace leaders. Despite of setting challenging dreams the
employees of Reckitt Benckiser are satisfied with those difficult dreams and acting well to gain
the goals which were supplied to them. The control style in Reckitt Benckiser is form of
participative control in which employees are given risk to fulfil their ideas for decision making
and thereby Reckitt Benckiser is utilising its employees by using getting one of a kind thoughts
from extraordinary employees this provides extra chances for purchasing better and
revolutionary thoughts. As the motivation and reward structures are in accordance to the
expectancy of the employees so the management are very a lot happy and do not need to go away
the business enterprise. The leadership patterns in Reckitt Benckiser are a combination of the
project oriented and relationship oriented however it is very distant towards courting the oriented
management style.
72
STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
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