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Transcript of A Project paper on Supply Chain Management System of Reckitt Benckiser,Bd by Tanvir Wahid...
SUBMISSION DETAILS
SUBMITTED TO
Mr. Koushik Prashad Pathak
Lecturer
Department of Marketing
Jagannath University, Dhaka.
SUBMITTED BY
Tanvir Wahid Lashker
Ingenious Group
BBA
Department of Marketing
1st Batch, Session: 2006-07
Jagannath University, Dhaka.
Submission Date: 10 OCTOBER, 2011.
BBA
DEPARTMENT OF MARKETING
JAGANNATH UNIVERSITY
LETTER OF TRANSMITTAL
Date: 1O OCTOBER, 2011.
Mr. Koushik Prashad Pathak
Lecturer
Department of Marketing
Jagannath University,
Dhaka, Bangladesh.
Subject: Submission of the project paper on Supply chain system of Reckitt Benckiser.
Dear Sir,
Please enclose our project paper on “Supply Chain Management of Reckitt”. The project was
assigned to us as requirement for the completion of our Supply chain Management course.
The course that we are having with you is a wonderful learning experience for us that have
enabled us to know various aspects of Supply Chain Management processes and systems. This
report attempts to make our Supply Chain related knowledge and skills to be more effective for
future career path.
This course and the group project have helped us a lot to understand and experience the necessity
and effectiveness of Supply Chain Management course in modern business. Therefore, we
thank you a lot for assisting us to complete our group project successfully.
We shall remain available for further certification of any part of this report.
Yours truly,
Tanvir Wahid Lashker
Case: Supply chain difficulties of
Reckitt Benckiser in Bangladesh
Reckitt Benckiser, a European public Ltd. Company
enlisted in London Stock Exchange, now is the
world’s largest producer of household product and a
major producer of consumer health and personal
product. A company from Britain, Reckitt & Sons
and a Dutch company Colman & Benckiser become
merged and formed Reckitt Benckiser in 1938. It
becomes the market leader in production and
distribution of twelve products worldwide with
around 8453 million dollar revenue turnover and
with 27200 employees worldwide. Later RB expands
their market and extended into many third world
countries like India, Pakistan and Bangladesh.
In Bangladesh, RB is doing its business around 49
years with 250 crore taka annual turnovers. Even in
Bangladesh seven products achieves the position of
market leader and are still continued. This seven
leading products are Dettol Soap, Harpic, Mortein
Coil, Mortein Aerosol, Lysol, Veet and Robin Liquid
Blue. Though RB does not produce these entire
products locally in Bangladesh, they have strong
supply chain and distribution system to meet the
demand efficiently.
RB follows a concept of not maximizing their
infrastructural wealth in the host country. So they are
highly depended on third party association. From
collection of raw materials to transportation system,
RB depends on third party association. Even
sometimes, they produce some of the well known
product as Dettol Soap with the help of Third party.
In Bangladesh, RB, has a collaborative relationship
with the third parties. At present, when RB has
become highly dependent on the third party, the risk
of using third party increases as well as RB
outsources several functions of supply chain, they
loss control over the process. Though they have a
buy back contract but the implementation of this
contract has no value in practice because RB has
to place an order before buying and for the
scarcity of raw materials. As a result, RB cannot
ensure the quality as they promise. They have lost
the contract and communication with the source
suppliers and this gap makes obstacles to go for
collecting raw materials directly for their own. So,
they have lost all internal capability of
procurement.
As RB has an alliance with the Mamun
Transportation Agency and do not have any
transportation system for its own, sometimes the
schedule do not matches with the RB’s demand of
vehicles and the availability of vehicles of the
agency. It also creates a big problem But it is very
rare that any customer goes to buy a product and
do not get the RB product. They reserves safety
inventory, so that they can meet the customer
demand avoiding all unwanted situation. RB
reserves the inventory in a cycle to face the crisis
situation.
One remarkable advantage that RB have by using
third party association is, they can collect the raw
materials and produce product at a minimum cost,
which could be higher if they goes attempt to do it
for their own. So, the profit becomes maximized
because of using of third party association.
SL. NO. CONTENTS PAGE. NO.
1.1. Abstract 1
1.2. Introduction 1-2
1.3. Objectives of the Study 2
1.4. Research Methodology 2
2.1. Company Overview 3
2.2. Company History 4
2.3. FMCG Industry 5
3.1. Sourcing 6
3.2. Transportation 7
3.3. Purchasing Strategy 8
3.4. Value Creation of Supply Chain
9
4.1. Supply Chain Management 10-11
5.1. Evolution
11-12
5.2. Product Line
12
5.3. Major Customers
12
5.4. Representing Brands
13
5.5. Industry Position
14
5.6. Conclusion 14
The aim of the project is to assess the Reckitt Benckiser’s supply chain issues, identifies the
strategies related with the sourcing and purchasing, uncover issues of FMCG (Fast Moving
Consuming Goods), supply chain management process and determine how to strategically align
supply chain practices with business objectives. This paper provides a clear idea how a top
ranked multinational company such as Reckitt Benckiser operating their business in the
least developed countries like Bangladesh. The Purpose of the project is to know the
strategies followed by RB to capture their market, compete with their competitors, relation
build up system with the customer and supplier, transportation system, value creation
stages in the supply chain and other internal and external factors. Mainly, this paper
reviews the whole scenario of supply chain management practices of Reckitt Benckiser that
shows a complete picture how a FMCG (Fast Moving Consuming Goods) companies become
successful by utilizing the effective supply chain strategies.
In this new era of globalization, effective supply chain strategy has become a very a burning
question to all. Because no manufacturing firm is able to produce all the products and services
that they need because the production cost and other issues (raw materials, labor efficiency, and
low cost operations) are involved in the whole
supply chain system. So during the last decades
firms emphasized in the outsourcing
(making/collecting finished product from third
parties with rational prices).So outsourcing got a
better positioning on the companies’ supply chain
management. On the other hand fast moving
consumer goods manufacturer has been facing
many new problems regarding their supply on the basis of customers’ needs and demands. Not
only that sometimes they have to change their supply chain strategy on time due to cope up with
the competitors. In this regard we tried to identify the whole supply chain management of Reckitt
Benckiser (one of the worldwide leaders in fast moving consumer goods) according to the
context of Bangladesh. Here we noticed that they collect their raw materials of soap only from
Malaysia and Indonesia through the M.N international ltd and Haque enterprise on buy back
conditions. We also found in our study that Reckitt Benckiser is always relaying on the
outsourcing rather than direct manufacturing. Here they do work as a Re-seller of products that is
provided to them from the Indian, Malaysian, Pakistani, and French Reckitt Benckiser without
any buyback conditions. They make the push strategies directly to the customers’ through
advertising and then send the products to their agents, but agents are liable to sell all the products
to the end users within a specific time period. Not only that, at the time of sending products to
the agent Reckitt Benckiser uses another third party of transportation named Mamun
International. So in the every stage of supply chain of Reckitt Benckiser, the presence of third
party alliance is very much noticeable. By the effective relationship with all the stages of the
supply chain Reckitt Benckiser is creating value in their supply chain management and moving
with average business growth of 15% yearly. In this case we are trying to present all of these
issues very sequentially.
We mainly conduct the study in order to achieve some specific objectives. Here we have
mentioned some major objectives that we approach by studying the total supply chain of Reckitt
Benckiser.
1. Determine the major supply chain issues.
2. Determine the sourcing strategies.
3. Analyzing the transportation system.
4. Scanning the purchasing strategy.
5. Scrutinizing the relationship status.
6. Studying the value creation stages in the supply chain.
7. Learning the supply chain.
We have followed qualitative research method in order to conduct our research. Qualitative
research methods include depth interviews, focus group, metaphor analysis, collage research and
projective techniques. It was not possible for us to conduct all of the method of qualitative
research. We have conducted depth interview with some senior officer who are related with
supply chain management of Reckitt Benckiser. We have also approached on some focus groups
that have regularly used the company’s product. In order to conduct the research we have
collected both primary and secondary data.
1. Primary data: We have approached to collecting primary data from Reckitt Benckiser
by taking interview with the Management Trainee Officer (Mr. Hossain Mohammad
Sarram), Territory Sales Manager, Territory Sales Officer (Mr. Hasan AL Mamud).
2. Secondary data: In case of collecting secondary data we have examined various supply
chain related articles, textbooks, websites and other sources.
Company Name : Reckitt Benckiser
Full Name (Bangladesh) : Reckitt Benckiser Bangladesh Ltd.
Industry : Consumer goods (FMCG)
Founded : 1814 (1938 by merger of Reckitt & Sons
and J&J Colman 1999 by merger of Reckitt
& Colman and Benckiser)
Founded in Bangladesh :1962.
Headquarter : Slough, United Kingdom.
Head office in Bangladesh : Gulshan 1, Dhaka, Bangladesh
Products types : Cleaning products, healthcare, condiments
Power brands of the world : 19
Products : Vanish, Calgon, Woolite Lysol, Dettol,
Durex, Scholl, Cillit Bang, Harpic, Finish,
Air Wick, Mortein, Strepsils, Mucinex,
Nurofen, Gaviscon, Veet, Clearasil, French's
Power brands in Bangladesh: 7
Products in Bangladesh : Dettol Soap, Harpic, Mortein, Coil,
Mortein Aerosol, Lysol, Veet and Robin
Liquid Blue.
Chief Executive Officer : Rakesh Kapoor
Operation : over 60 countries
Products sold : Over 180 countries.
Revenue : £8,453 million (2010)
Operating income : £2,130 million (2010)
Net income : £1,570 million (2010)
Employees: 27,200 (2010)
The history of Reckitt Benckiser is very interesting. A company
from Britain, Reckitt & Sons and a Dutch company Colman &
Benckiser become merged and formed Reckitt Benckiser.
Colman's was founded in 1814 when Jeremiah Colman began
milling flour and mustard in Norwich, England. Reckitt & Sons
started in 1840 when Isaac Reckitt rented a starch mill in Hull,
England. He diversified into other household products and in
due course passed on his business to his four sons. Reckitt & Sons was first listed on the London
Stock Exchange in 1888. In 1938 Reckitt & Sons merged with J&J Colman to become Reckitt &
Colman Ltd. The company made several acquisitions, including the Airwick and Carpet Fresh
brands (1985), the Boyle-Midway division of American Home Products (1990), and the Lehn &
Fink division of Sterling Drug (1994). Reckitt & Colman sold the Colman's food business in
1995 but still has some food brands.
Johann A. Benckiser founded a business in Germany in 1823. Its main products were industrial
chemicals. Benckiser went public in 1997.
The company was formed by a merger between Britain's Reckitt & Colman and the Dutch
company Benckiser NV in December 1999. Bart Becht became CEO of this new company and
has been credited for its transformation, focusing on core brands and improving efficiency in the
supply chain . The new management team's strategy of "innovation marketing"– a combination
of increased marketing spend and product innovation, focusing on consumer needs – has been
linked to the company's ongoing success.
The company has held Platinum status in the Business in the Community CR Index, since 2005
and in 2009 entered the Dow Jones Sustainability World Index and the Carbon Disclosure
Leadership Index. In January 2008, the company acquired Adams Respiratory Therapeutics, Inc.,
a pharmaceutical company, for $2.3bn: one of the major brands acquired with this purchase was
Mucinex. RB was ranked 6th in the 2008 European Business Week 50, the magazine's annual
ranking of the best performing companies within the S&P European 350. In July 2010, the
company agreed to buy SSL International, the makers of Durex condoms and Scholl's footcare
products in a £2.5bn deal. On 27th August 2011, Reckitt Benckiser recalled all remaining stock
of its major analgesic product, Nurofen Plus, after packs were found to contain an antipsychotic
drug. Sabotage is suspected. In April 2011, Bart Becht announced he was to retire as CEO of
Reckitt Benckiser, to be replaced by executive vice president of Category Development Rakesh
Kapoor from September 2011. Rakesh Kapoor has worked for Reckitt Benckiser for 25 years in
India, the UK and northern Europe. An MBA from XLRI, Jamshedpur, Rakesh Kapoor played a
key role in helping the group acquire Boots Healthcare International, SSL International Plc and
India’s Paras Pharmaceuticals.
J A Benckiser circa 1823 (left), Isaac Reckitt circa 1860s (right)
The elaboration of FMCG is the Fast Moving Consumer Goods. Also known as the Consumer
Packaged Goods or CPG Industry, this multi-million dollar sector is made up of a huge range of
famous brand names – the kind that we use every single day. These fast moving consumer goods
are the essential items we purchase when we go shopping and use in our everyday lives. They're
the household items you pick up when you're buying groceries or visit your local chemist or
pharmacy. FMCG goods are referred to as 'fast moving', quite simply, because they're the
quickest items to leave the supermarket shelves. They also tend to be the high volume, low cost
items.
Cleaning and laundry products, over the counter medicines, personal care items and food stuffs
make up a large bulk of the goods in the FMCG arena, but it doesn't end there. Paper products,
pharmaceuticals, consumer electronics, plastic goods, printing and stationery, alcoholic drinks,
tobacco and cigarettes can all be considered fast moving consumer goods too.
The top FMCG companies are characterized by their ability to produce the items that are in
highest demand by consumers and, at the same time, develop loyalty and trust towards their
brands. Once people start referring to a product specifically by its brand name (for example,
Dettol instead of disinfectant) they're definitely doing something right.
Some of the leading FMCG companies in the world include:
Reckitt Benckiser: Famous brands - Dettol/Lysol, Air Wick, Veet; Vanish; Finish; French's
Mustard; Durex
Unilever: Famous brands - Dove bodycare; Axe, Flora dairy products; Domestos, Cif, PG Tips
tea
Colgate-Palmolive: Famous brands - Colgate toothpaste; Palmolive soap and cleaning products;
AJAX cleaning products.
Coca-Cola: Famous brands - Coca-Cola; Diet Coke; Fanta; Sprite
Johnson & Johnson: Famous brands - Johnson's Baby; NEUTROGENA, ACUVUE, Listerine
oral care;
Nestlé: Famous brands - Nestel Pure Life, Nescafe; Nesquik; Kit Kat, Purina
Procter & Gamble: Famous brands - Ariel, Gillette; Pampers; Olay; Duracell, Pantene
A growing trend in Reckitt Benckiser’s business today is sourcing. Generally, this sourcing
involves allowing another company to handle elements of a company's production and/or service
process. Most companies simply view sourcing as a way to save money. This sourcing strategy
includes
Supplier scoring and assessment,
Supplier selection,
Design collaboration,
Procurement,
Sourcing planning & analysis.
First, Reckitt Benckiser looks at the technology differences between their current suppliers and
the lower cost alternative. Obviously, not all suppliers are functioning at the same level. If any
one of the suppliers (M M International or Haque Enterprise) is able to provide the raw materials
in a lower price to the R.B. then will get the opportunity to supply that raw materials.
Besides this issue, Reckitt Benckiser also keeps
in mind other possible changes that could save
their money. Many companies mistakenly turn to
sourcing as their only means of lowering
production costs, but it is most effective as part
of a comprehensive expense reduction process.
Reckitt Benckiser needs to carefully review all
areas of production-related spending if they are
to receive the maximum benefits possible from
sourcing
After that, Reckitt Benckiser creates a supply
chain management strategy that will govern the
methods of securing a supply of the goods and
services needed to continue a steady production
after sourcing has been set in action.
Finally, Reckitt Benckiser sends their finished goods to their Dhaka and Chittagong’s
warehouses through the Mamun International transportation. After making a cycle inventory they
again sends their products to their divisional agents. Agents are liable to sell all the products to
the end users through retailer.
MAP: RB WAREHOUSES IN BANGLADESH
Like other FMCG companies Reckitt
Benckiser doesn’t have any self owned
transportation system in Bangladesh.
Reckitt Benckiser always does the
shipping through the third party in
Bangladesh. Reckitt Benckiser propels
their finished goods to all over the
countries from the Dhaka and
Chittagong’s warehouses through the
Mamun International transportation.
Dhaka warehouse covers the whole
west region while the Chittagong
warehouse covers the east portion of
Bangladesh to deliver their FMCG (Fast
Moving Consuming Goods) to the
ultimate customers.
The following diagram shows how Reckitt Benckiser carries raw materials, packaging materials
and finished goods to the factory and warehouses.
Purchasing is now considered as one of the most significant task of the supply chain
management. Now purchasing has emerged as a key source of competitive advantage. In the
quest for effectiveness and efficiency various type of purchase strategy are adopted, used and
developed by companies. Many multinational and local companies are succeeded by only
adopting effective purchase strategy.
There are many types of purchase strategy exist. According to the Senja Svahn and Mika
Westerland purchase characteristics are-
Strategies Followed by RB
These are the major frequently used purchasing strategy used by companies. If we analysis the
RB purchasing history and habit we can find out the strategy adopt by this company. RB supply
chain managers give maximum emphasis on the cost. Their primary target is minimize the cost
but with ensuring the quality as well.
Price Minimizing Strategy: RB collects their raw materials from the suppliers who offer
them the lowest price with the standard product among many competing suppliers. As
from this perspective we can say that RB’s adopted strategy is price minimizing strategy.
Bargainer Strategy: Moreover, there are some more characteristics we found about RB.
Sometimes RB use third party for collecting raw materials. MN international, Kazi
International and Haque International are frequently used for this type of sourcing. They
have a good relationship with them over a period of time but they use buy back condition
in their contract. They have no collaboration in Research and development with their
supplier or any other third parties.
No organization is an expert in everything that’s why integration and collaboration is essential
for delivering value. Though companies adopt various type of strategies for efficiency and
effective management, at the end of the day it only the necessity of the time and the market
condition (Demand and Supply). Some company emphasize on the transaction but during the
time of transaction and after doing this type transaction several time the relationship grew
stronger whether they want it or not.
Reckitt Benckiser’s value chain is a physical representation of the various processes that are
involved in producing goods, starting with raw materials and ending with the delivered product.
It is based on the notion of value-added at the link level. The sum total of link-level value-added
yields total value. Coordination and collaboration; Investment in information technology;
Changes in organizational processes; Committed leadership; Flexible jobs and adaptable, capable
employees; A supportive organizational culture and attitudes are the components of value chain
of Reckitt Benckiser. The value chain categorizes the generic value adding activities of an
organization. The "primary activities" include: inbound logistics, operations, outbound logistics,
marketing and sales, and services. The "support activities" include: administrative infrastructure
management, human resource management, technology, and procurement. The costs and value
drivers are identified for each value activity. Capturing the value generated along the chain is
taken by many management strategists. Reckitt Benckiser might require its parts suppliers to be
located nearby its assembly plant to minimize the cost of transportation. By exploiting the
upstream and downstream information flowing along the value chain, the firms may try to
bypass the intermediaries creating new business models, or in other ways create improvements in
its value system.
RB has followed the below supply chain into three parts of activities. This are-
Procurement
Manufacturing
Distribution
The graphical representation of the supply chain of RB will make it easier to understand and to
get the total picture.
Procurement
In the Procurement process, RB collects thee raw materials, packaging materials and finished
goods. RB collects their raw materials and finished goods. RB collects their raw materials from
Indonesia, Malaysia, India and from Bangladesh too. RB produce only the Dettol Soap, Harpic,
Mortein Coil and Dispirin and the packaging materials of these product are also been collected
from Bangladesh. Whatever the raw materials or packaging materials they procure, they procure
it through third party association. The most Three frequently and heavily used third party that are
associated with RB are MN International, Haque and Quazi International. RB also imports some
of the well known product in Bangladesh. They import Mortein Aerosol from Indonesia and
Malaysia. They import Veet from Pakistan, India and France and Lysol from India. These
importing are also included in there procurement process known as procurement of finished
goods.
Raw
Materials
Packaging
Materials
Finished
Goods
Factory
Dhaka
Factory
Chittagon
g
Warehouse
Dhaka
Warehouse
Chittagong
BD West
BD East
Distributor
Distributor
Distributor
Distributor
Distributor
Distributor
Customer
Customer
Customer
Customer
Customer
Customer
Diagram: Supply Chain of Reckitt Benckiser
Manufacturing
RB has two manufacturing plant in Bangladesh. One of them is in Dhaka and the other is in
Chittagong. In the factory of Dhaka RB produces Dettol Soap and Dispirin and in Chittagong
they produce Harpic and Mortein Coil. Sometimes RB produces Dettol Soap with Third party
association. In that case, they provide the raw and packaging materials, logistical support,
technology and the quality controlling measures. The third party provides the land labor and the
machineries. Except Bangladesh, RB also have production plan in India, Pakistan, France,
Indonesia and Malaysia.
Distribution
Like the production plant, RB has two depots in Dhaka and Chittagong. Both of these depot store
products that comes from the manufacturing plant of Dhaka and Chittagong and imported
finished goods that comes from abroad. For making the distribution more easy and efficient, RB
has divided the whole Bangladesh in two regional areas-
BD West
BD East
The warehouse of Dhaka serves and distributes the product in the west region of Bangladesh
from Dhaka to Dinajpur, Rajshahi and Panchagar. And the depot of Chittagong distributes the
product in the east region of Bangladesh from Sylhet to Chittagong including Comilla.
Transportation System
Another significant part of RB’s distribution is their transportation system. For shipping they
depend on the transportation agency. RB has an association with the Mamun Transportation
Agency a renowned shipping agency throughout Bangladesh. They fix the transportation fair
quarterly for different route and trip and payment must be ensured according to their agreement.
RB has a fixed allotment of vehicles for regular use. But in the urgent case if they require more
delivery, they have to inform it to the agency at least seven days ago.
Reckitt Benckiser is a public limited company. It traded as LSE: RB. It works generally for
producing consumer goods. It was founded in 1938 by merger of Reckitt & Sons and J&J
Colman. It was again merged by of Reckitt & Colman and Benckiser in 1999. Its Headquarter is
in Slough, United Kingdom. The CEO of Reckitt Benckiser is Rakesh Kapoor and the CFO is
Colin Day. The main products of them are Cleaning products, healthcare, condiments etc.
Reckitt Benckiser follows a concept of not maximizing their infrastructural wealth in the host
country. So they are highly depended on third party involvement. From collection of raw
materials to transportation system, Reckitt Benckiser depends on third party association. Even
sometimes, they produce some of the well known product as Dettol Soap with the help of Third
party. In Bangladesh, Reckitt Benckiser has a collaborative relationship with the third parties. At
present, when Reckitt Benckiser has become highly dependent on the third party, the risk of
using third party increases as well as Reckitt Benckiser outsources several functions of supply
chain, they loss control over the process. Though they have a buy back contract but the
implementation of this contract has no value in practice because Reckitt Benckiser has to place
an order before buying and for the scarcity of raw materials. As a result, Reckitt Benckiser
cannot ensure the quality they promise. They have lost the contract and communication with the
source suppliers and this gap makes obstacles to go for collecting raw materials directly for their
own. So, they have lost all internal capability of procurement. As Reckitt Benckiser has an
alliance with the Mamun Transportation Agency and do not have any transportation system for
its own, sometimes the schedule do not matches with the Reckitt Benckiser’s demand of vehicles
and the availability of vehicles of the agency. It also creates a big problem But it is very rare that
any customer goes to buy a product and do not get the Reckitt Benckiser product. They reserves
security inventory, so that they can meet the customer demand avoiding all unwanted situation.
Reckitt Benckiser reserves the inventory in a cycle to face the crisis situation. One significant
advantage that Reckitt Benckiser have by using third party association is, they can collect the
raw materials and produce product at a minimum cost, which could be higher if they goes
attempt to do it for their own. So, the profit becomes maximized because of using of third party
association.
The Company divides its brands into six categories: surface care, fabric care, and dishwashing,
home care, health and personal care, and food. The company's strategy is to have a highly
focused portfolio concentrating on its 19 most profitable brands, which were responsible for 62%
of net revenues in 2008. 35% of net revenues come from products launched in the past three
years. In Bangladesh they have some focused product. They marketed Dettol Soap, Dettol
Antiseptic liquid, Dettol Hand Wash, Strepsils, Desprin ,Veet, (Health and Personal Care)Harpic
Toilet Cleaner, Lyzol, (Surface Care) Vanish(Fabric Care) Mortein Coil and Mortein
Aerosol,(Home care) and Perk(Food).
Reckitt Benckiser has Marketed only household products in Bangladesh. They mainly targeted
the people who used to live in cities, districts and suburban areas. They do not have any self-
owned transportation system and not targeted the rural area. If anyone wants to buy their
products then they have to come to local town. In some rural areas Reckitt Benckiser’s products
are available but the number is not very significant.
Reckitt Benckiser refurbishes its corporate identity to reposition its brand as 'the power behind
the Power brands in 1999. This saw the launch of a new logo to replace the logo which had been
introduced at the time of the Reckitt/Colman merger in 1999. The new logo is a pink kite mark
containing the letters 'RB'. The logo is often used with the company's full name Reckitt
Benckiser in grey alongside the kite mark logo, using a typeface designed especially for the
company. The new logo, created by branding agency The Workroom, was inspired by a sports
kite and is intended to reflect the 'loud, confident personalities of its Power brands'. The identity
has been introduced on packaging, and is used on internal and external communications.
Reckitt Benckiser has 19 "Powerbrands" following the acquisition of SSL International.
Vanish
Calgon
Woolite
Lysol
Dettol
Durex
Scholl
Cillit Bang
Harpic
Finish
Air Wick
Mortein
Strepsils
Mucinex
Nurofen
Gaviscon
Veet
Clearasil
French's
Powerbrands in Bangladesh
Reckitt Beckiser presently served seven from their nineteen powerbrands in Bangladesh. RB
marketed the following powerbrands in Bangladesh.
There are several Multinational and local company competes with each other for hold their
market share and market growth in the fast moving consumer goods industry. But each company
in most cases has some competitive advantage. Renowned Fast moving companies operates in
Bangladesh are British American Tobacco, Reckitt Benckiser Ltd, Nestle, Marico Ltd, Square
Consumers and Toiletries Ltd, Pran Group, Akij Group, Abdul Monem Ltd etc.
Among all these company British American Tobacco is the market leader in tobacco sector.
Nestle has some superior product and brand image in the market (Maggi, Polo). Square
Consumers Ltd has great brand image both in consumer’s goods and health care sector (Ruchi
Chanachur, Square Pharmaceuticals Ltd.) Pran Group, Akij Group and Abdul Monem Ltd are
challengers for these companies in some sector.
The Company benefits from many very strong market positions for its brand portfolio. Excluding
Laundry Detergent and Fabric Softener, the Company is the world market leader in household
cleaning products and has leading positions in selected health & personal care categories. These
positions derive from the strength of the Company’s leading brands, which are the flagship
brands in the Company’s six major categories and on which the Company focuses the majority
of its efforts and investment. The Company also has other brands and market positions that are
less of a strategic focus, but which play a role as scale builders in local markets. We already
know that RB focused and marketed very few products in Bangladesh. But these products are
currently holds the major market share. For example Dettol Soap and Mortein coil has great
brand equity in the market. Again Veet is the most widely known and used Hair removing brand
in Bangladesh. Perk is one of the most popular chocolate brands as well. For the toilet cleaner
everybody prefers Harpic. Desprine and Strepsils are commonly used by the general people for
headache and cold. Superior product quality and consistent performance of the products of the
RB Ltd limited create a positive image in the customers mind and it reflects in the current market
position of their product. But there is a lacking of branding in Bangladesh. Because we know the
Veet or Dettol or Mortein rather then the parent brand Reckitt Benckiser. They should focus on
to recognize their parent brand also.
As global markets grow increasingly efficient, competition no longer takes place between
individual businesses, but between entire value chains. Collaboration through intelligent e-
Business networks will provide the competitive edge that enables all the participants in a value
chain to prevail and grow. Collaboration requires Individual participants to adopt simplified,
standardized s solutions based on common architectures and data models. Time to market is
critical and participants will have to forego the luxuries of customization and modification that
characterized the proprietary infrastructures of the past. In the last few years, the one thing most
businesses were not worried about was having a scarcity of quality suppliers. For the past few
years, the reverse was actually true. The supply of vendors was greater than the demand for their
services and, as a result, buyers found the perfect time to begin using high-tech tools to assist in
their purchasing decisions. One of the most popular of these tools was the E-Auction, which
allowed suppliers to view an RFP via the Internet and place bids on fulfilling the project. The
buyer then compares the bids and chooses the supplier he or she feels is the best fit for the
company's needs. Now, however, manufacturing is again in an upswing and companies are
beginning to fear that suppliers are going to soon be in short supply, which could leave many
businesses without the goods they need to keep producing their products. In our study we tried to
find out many of these issues of supply chain strategy of Reckitt Benckiser.