Reckitt Benckiser: Strategy and Business Development Report Analysis

This report provides a comprehensive analysis of Reckitt Benckiser's strategy and business development. It begins with an executive summary and an introduction to the company, detailing its history, product portfolio, and market position within the competitive consumer goods industry. The report delves into Reckitt Benckiser's vision, speed of execution, and organizational culture, highlighting its focus on innovation and global expansion. It examines key aspects of the company's operations, including its mission, vision, core values, organizational structure, and internal stakeholder relationships. Furthermore, the report analyzes Reckitt Benckiser's marketing processes, including strategic marketing analysis, marketing mix planning, and implementation. It also presents internal and external analyses, such as SWOT and PESTLE analyses, to assess the company's strengths, weaknesses, opportunities, threats, and the impact of external factors. The report covers financial resources, including income statements, balance sheets, and cash flow statements, to provide insights into the company's financial performance. Finally, the report offers recommendations and a conclusion based on the findings of the analysis.

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:

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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.

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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

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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

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STRATEGY AND BUSINESS DEVELOPMENT OF RECKITT BENCKISER
Suppliers....................................................................................................................................69
Customers..................................................................................................................................70
Recommendation...........................................................................................................................70
Conclusion.....................................................................................................................................71
Reference List................................................................................................................................73

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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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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.

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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

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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.

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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