Reckitt Benckiser Global Business Presentation June 2002.
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Transcript of Reckitt Benckiser Global Business Presentation June 2002.
Reckitt BenckiserReckitt BenckiserGlobal Business
PresentationGlobal Business
Presentation
June 2002June 2002
OutlineOutline
• The Company
• Organisational structure
• Vision and strategies
• Case studies
• The Company
• Organisational structure
• Vision and strategies
• Case studies
Reckitt Benckiser - The CompanyReckitt Benckiser - The Company
• Listed on London Stock Exchange
• Included in FTSE 100 index
• Current market capitalisation of £7.9b(share price @ £ 12.50)
• Profit & Loss statements reported in Pounds Sterling– Sales (net revenue) = £3.5b– Operating Profit = £525m – Net income = £340m
• Listed on London Stock Exchange
• Included in FTSE 100 index
• Current market capitalisation of £7.9b(share price @ £ 12.50)
• Profit & Loss statements reported in Pounds Sterling– Sales (net revenue) = £3.5b– Operating Profit = £525m – Net income = £340m
HistoryHistory
• Reckitt Benckiser has a diverse history
spanning about 200 years
• From humble beginnings it has expanded into
the world’s No.1 in household cleaning
• A short summary of the company history is
available here:
or from the official website:
www.reckittbenckiser.com
• Reckitt Benckiser has a diverse history
spanning about 200 years
• From humble beginnings it has expanded into
the world’s No.1 in household cleaning
• A short summary of the company history is
available here:
or from the official website:
www.reckittbenckiser.com
Global BusinessGlobal Business
• Approximately 23 000 employees globally
• Offices in about 60 countries
• 52 manufacturing centres in 35 countries
• Sells products into about 180 different
countries globally
• Consumers are familiar with our products &
brands but know little about our company
• Approximately 23 000 employees globally
• Offices in about 60 countries
• 52 manufacturing centres in 35 countries
• Sells products into about 180 different
countries globally
• Consumers are familiar with our products &
brands but know little about our company
Over 9 million of our products are sold everyday
Over 9 million of our products are sold everyday
Reckitt Benckiser Global Offices Reckitt Benckiser Global Offices
60 countries60 countries
52 manufacturing centres in 35 countries52 manufacturing centres in 35 countries
Reckitt Benckiser Countries with Local Factories
Reckitt Benckiser Countries with Local Factories
Organisational Structure- Major Functions
Organisational Structure- Major Functions
• Area Management– Sales– Finance– Human Resources– Information Services
• Area Management– Sales– Finance– Human Resources– Information Services
• Supply Organisation– Procurement– Production– Logistics– Distribution
• Supply Organisation– Procurement– Production– Logistics– Distribution
• Category Development– Marketing– Research & Development– Media– Market Research
• Category Development– Marketing– Research & Development– Media– Market Research
Area Management (Operating Regions)Area Management (Operating Regions)
• RB is classified into 3 global regions:
• Western Europe
• The Americas / Australia / New Zealand
• Rest of World
• RB is classified into 3 global regions:
• Western Europe
• The Americas / Australia / New Zealand
• Rest of World
Reckitt Benckiser - Global regionsReckitt Benckiser - Global regions
Western EuropeWestern Europe
The Americas/ANZThe Americas/ANZ
RoWRoW
Reckitt Benckiser - Major CompetitorsReckitt Benckiser - Major Competitors
– Procter & Gamble
(USA)
– Unilever (UK &
Netherlands)
– Colgate Palmolive
(USA)
– The Clorox Company
(USA)
– Procter & Gamble
(USA)
– Unilever (UK &
Netherlands)
– Colgate Palmolive
(USA)
– The Clorox Company
(USA)
– Henkel (Germany)
– Dial Corporation
(USA)
– SC Johnson & Sons
(USA)
– Bayer (Germany)
– Sara Lee (USA)
– Henkel (Germany)
– Dial Corporation
(USA)
– SC Johnson & Sons
(USA)
– Bayer (Germany)
– Sara Lee (USA)
0
1
2
3
4
ReckittBenckiser
Unilever P&G Colgate Clorox
Net Revenues $bn fromHousehold Cleaning Products *
Net Revenues $bn fromHousehold Cleaning Products *
* Excluding laundry detergentsSource: Company reports, industry and brokers reports, latest available data
World No.1 in Household CleaningWorld No.1 in Household Cleaning
Company VisionCompany Vision
“Reckitt Benckiser is about passionately delivering better solutions in household cleaning and health & personal care to customers and consumers, wherever they may be, for the ultimate purpose of creating shareholder value.”
This vision defines both our purpose and our values as a company.
“Reckitt Benckiser is about passionately delivering better solutions in household cleaning and health & personal care to customers and consumers, wherever they may be, for the ultimate purpose of creating shareholder value.”
This vision defines both our purpose and our values as a company.
Reckitt Benckiser - Core StrategiesReckitt Benckiser - Core Strategies
• Reckitt Benckiser’s objective is to generate above industry average profitable growth, by:
– Focusing on the 5 growing core categories
– Building on our brand positions through continuous innovations and investment
– Geographic portfolio expansion
– Selective add-on acquisitions
– Margin enhancement and cash flow improvement to fund reinvestment in core brands and profit growth
• Reckitt Benckiser’s objective is to generate above industry average profitable growth, by:
– Focusing on the 5 growing core categories
– Building on our brand positions through continuous innovations and investment
– Geographic portfolio expansion
– Selective add-on acquisitions
– Margin enhancement and cash flow improvement to fund reinvestment in core brands and profit growth
Competitive advantageCompetitive advantage
• “Globally local” approach
• Combines swift day to day decision making
with action
• Clear responsibility of area / local management
• Clear framework set by global categories and
functions
• “Globally local” approach
• Combines swift day to day decision making
with action
• Clear responsibility of area / local management
• Clear framework set by global categories and
functions
Competitive edgeCompetitive edge
• Aim to have products at # 1 or # 2 in markets in
which we operate
• Strong global brand heritage and brand loyalty
• Innovation / 1st to market / speed to market /
quality of delivery
• Constant stream of New Product Development
and Existing Product enhancements
• Aim to have products at # 1 or # 2 in markets in
which we operate
• Strong global brand heritage and brand loyalty
• Innovation / 1st to market / speed to market /
quality of delivery
• Constant stream of New Product Development
and Existing Product enhancements
Competitive edge (cont)Competitive edge (cont)
• Understanding of consumer attitudes to gain
consumer insights into their needs
• Good R&D investment to provide technical
support, new technologies, sharing know-how
across the business
• Intellectual property protection
• Good management with strategic planning on
direction
• Understanding of consumer attitudes to gain
consumer insights into their needs
• Good R&D investment to provide technical
support, new technologies, sharing know-how
across the business
• Intellectual property protection
• Good management with strategic planning on
direction
Competitive edge (cont)Competitive edge (cont)
• Efficient use of available resources -
prioritisation
• Operational efficiencies
• Emphasis on cost control
• Strong economies of scale and purchasing
power
• Efficient use of available resources -
prioritisation
• Operational efficiencies
• Emphasis on cost control
• Strong economies of scale and purchasing
power
Recent Global AcquisitionsRecent Global Acquisitions
• Company has strong history of
acquisitions
• Current company resulted from merger of
Reckitt & Colman with Benckiser in 1999
• Recently:• Tiga Roda (Indonesia) acquisition in 2001• Oxy Chemicals (Korea) acquisition in 2001
• Company has strong history of
acquisitions
• Current company resulted from merger of
Reckitt & Colman with Benckiser in 1999
• Recently:• Tiga Roda (Indonesia) acquisition in 2001• Oxy Chemicals (Korea) acquisition in 2001
Management Responsibility in a Global Environment
Management Responsibility in a Global Environment
• Strictly observe all laws & regulations
applicable in the conduct of business – taxes– social security– operations– employment conditions– occupational health & safety– fair trade practices– intellectual property
• Ensure ethical business practices
• Strictly observe all laws & regulations
applicable in the conduct of business – taxes– social security– operations– employment conditions– occupational health & safety– fair trade practices– intellectual property
• Ensure ethical business practices
Management Responsibility in a Global Environment
Management Responsibility in a Global Environment
• Community involvement - India, South America, South Africa, USA, Australia (“Community News”)
• Community & Ethical Responsibility Policies
include: Code of Business Conduct Environmental policy Animal Testing Product Safety Health & Safety Crisis Management Community Involvement
• Community involvement - India, South America, South Africa, USA, Australia (“Community News”)
• Community & Ethical Responsibility Policies
include: Code of Business Conduct Environmental policy Animal Testing Product Safety Health & Safety Crisis Management Community Involvement
Reckitt Benckiser - Product CategoriesReckitt Benckiser - Product Categories
• 5 core categories
– Fabric Care– Surface Care– Dishwashing– Health & Personal Care– Home Care
• account for 86% of total company net revenue
• 5 core categories
– Fabric Care– Surface Care– Dishwashing– Health & Personal Care– Home Care
• account for 86% of total company net revenue
Reckitt Benckiser Global Category R&D Laboratories
Reckitt Benckiser Global Category R&D Laboratories
Surface Care
Pharmaceuticals & Home Care
Fabric Care
Pest Control
Auto - Dishwash
Core Category BreakdownCore Category Breakdown
Fabric Care
fabric treatment, fabric & water softeners, detergents
Napisan, Calgon, Woolite, Spray’n Wash, Vanish, Dosia, Resolve,
Oxyclean
Home Care
air care, pest control, shoe care
Haze, Airwick, Wizard, Mortein, Aerogard, Pif Paf, Shieldtox, d-Con,
Nugget
Surface Care
disinfectants, lavatory, general purpose, specialty, polishes & waxes
Pine O Cleen, Harpic, Lysol, Easy Off, Brasso, Mr Sheen, Resolve,
Veja, Sagrotan, Old English, O’CedarDishwashing
Finish, Calgonit, Electrosol, Jet Dry
Health & Personal Care
antiseptics, depilatories, analgesics, cold/flu, gastrointestinal
Dettol, Disprin, Veet, Lemsip, Steradent, Gaviscon, Fybogel,
Senokot, Bonjela
Reckitt Benckiser - Leading brandsSurface Care - 24 % of net revenues
Fabric Care - 26 % of net revenuesFabric Care - 26 % of net revenues
Dishwashing - 13% of net revenuesDishwashing - 13% of net revenues
#2 worldwide
Lavatory Care
#1 worldwide
Automatic Dishwashing
#1 worldwide
Water Softeners
#1 worldwide
Disinfectant
#1 worldwide
Fabric Treatment
Note: positions calculated for the measured worldwide markets
#1 worldwide
Fine Fabric
Reckitt Benckiser - Leading brands (cont)
Reckitt Benckiser - Leading brands (cont)
Note: positions calculated for the measured worldwide marketsNote: positions calculated for the measured worldwide markets
Health & Personal Care - 12% of net revenuesAntiseptics
#1 worldwide #1 worldwide
Depilatories
Pest Control
#3 worldwide#2 worldwide
Air CareHomecare - 12% of net revenues
Competitive Strategies
Competitive Strategies
• Innovation
• Product rollouts
• Brand harmonisation
• Innovation
• Product rollouts
• Brand harmonisation
InnovationInnovation
• Substantial increase in
new product initiatives in
2001
• 20% of net revenues from new products launched since January 2000
• Working towards 40% of net revenues from new products by 2005
• Substantial increase in
new product initiatives in
2001
• 20% of net revenues from new products launched since January 2000
• Working towards 40% of net revenues from new products by 2005
NewNew
• ActionBall provides enzymatic pre-soaker for better stain treatment
• Launch in UK, France, Spain, Portugal in Q1
• ActionBall provides enzymatic pre-soaker for better stain treatment
• Launch in UK, France, Spain, Portugal in Q1
Vanish ActionBall Tabs Vanish ActionBall Tabs
Further Innovation in WipesFurther Innovation in Wipes
• Lysol Floor Wipes
• Lysol Heavy Duty cleaning wipes
• Harpic Flushable Wipes for toilet cleaning
• Lysol Floor Wipes
• Lysol Heavy Duty cleaning wipes
• Harpic Flushable Wipes for toilet cleaning
NewNew
Dishwashing Dishwashing NewNew
• Combines convenience of 3 in 1 with cleaning power of Powerball
• Launch across Western Europe
• Combines convenience of 3 in 1 with cleaning power of Powerball
• Launch across Western Europe
Air Care Air Care Rollouts
Rollouts
Rollouts
RolloutsNewNew
• Crystal Air for Cars Launched in Western Europe
• Click Spray success - rolled out all across Europe
• Crystal Air for Cars Launched in Western Europe
• Click Spray success - rolled out all across Europe
Pest ControlPest Control
• Mortein Ultra Fast Killing Spray for flying insects
• Outdoor Barrier Spray
• Mortein Ultra Fast Killing Spray for flying insects
• Outdoor Barrier Spray
NewNew
Rollouts
Rollouts
Rollouts
Rollouts
Brand Management
One global visual identity
Brand Management
One global visual identity
Brand ManagementGlobal brand harmonisation
Brand ManagementGlobal brand harmonisation
Intellectual PropertyIntellectual Property
We have to protect all our knowledge & innovation
We use patent attorneys locally and internationally to provide legal support for:
Patents Design registration Trademarks, logos and brands Checks of existing intellectual property and
possible infringements
This is one of our competitive strategies
We have to protect all our knowledge & innovation
We use patent attorneys locally and internationally to provide legal support for:
Patents Design registration Trademarks, logos and brands Checks of existing intellectual property and
possible infringements
This is one of our competitive strategies
Internet-based informationInternet-based information
• Information about Reckitt Benckiser, its
operations, products, annual reports,
announcements, etc are available on the
official company web site:
www.reckittbenckiser.com
• Information about Reckitt Benckiser, its
operations, products, annual reports,
announcements, etc are available on the
official company web site:
www.reckittbenckiser.com
Case StudiesCase Studies
Case Study 1:Globalisation of the Mortein Brand
Case Study 1:Globalisation of the Mortein Brand
• Pack Graphics progression to laser beam graphics
• Insect Seeking Flyspray example of Product
Harmonisation
• Globalisation of Louie the Fly in marketing strategy
from Australia (local) to global markets (ie Latam
Middle East etc)
• Pack Graphics progression to laser beam graphics
• Insect Seeking Flyspray example of Product
Harmonisation
• Globalisation of Louie the Fly in marketing strategy
from Australia (local) to global markets (ie Latam
Middle East etc)
Globalisation of Laser Beam GraphicsGlobalisation of Laser Beam Graphics
The Mortein Brand GloballyThe Mortein Brand Globally
Australia Bangladesh Singapore Malaysia Eastern Europe Hungary South Africa
Louie the Fly - Early advertisement ~ 1960s
Globalisation of Louie the FlyGlobalisation of Louie the Fly
Louie the Fly - mid to late 1980’s
Louie the Fly - Globalisation into Middle East
Case Study 2Case Study 2
Insect Seeking FlysprayInsect Seeking Flyspray
ConceptConcept Development BriefDevelopment Brief
Development and TestingFormulation Packaging
Patenting
Development and TestingFormulation Packaging
Patenting
ProductLaunchProductLaunch
Roll-outRoll-out
Insect Seeking FlysprayThe Product Development Process
Insect Seeking FlysprayThe Product Development Process
Insect Seeking Flyspray: ConceptInsect Seeking Flyspray: Concept
• Market research • Consumer need identified• Suitable available technology -
electrostatics ie. Sprayed product targets just insects based on its static charge
• Brainstorming / idea generation• Winning Product Concept:
• Market research • Consumer need identified• Suitable available technology -
electrostatics ie. Sprayed product targets just insects based on its static charge
• Brainstorming / idea generation• Winning Product Concept:
“Mortein Fly and Insect Killer with Insect Seeking technology - safer for people, but
deadly for flying insects.”
“Mortein Fly and Insect Killer with Insect Seeking technology - safer for people, but
deadly for flying insects.”
Insect Seeking Flyspray: BriefInsect Seeking Flyspray: BriefInput of information from business functions
• Marketing strategy • Countries of launch• Financial analysis• Trade strategy• Supply / Purchasing chain• R & D info
– Required resources– Regulatory / Safety requirements– Specify claims– Price– Type of Packaging– Formula
Input of information from business functions
• Marketing strategy • Countries of launch• Financial analysis• Trade strategy• Supply / Purchasing chain• R & D info
– Required resources– Regulatory / Safety requirements– Specify claims– Price– Type of Packaging– Formula
Development Brief
Insect Seeking Flyspray: DevelopmentInsect Seeking Flyspray: Development
• Electrostatics optimisation• Product Performance - knockdown and kill• Benchmarking against competitors• Stability of formula for 2 or 3 years min
– study the product for many years– degradation
• Compatibility of formula with aerosol cans– corrosion, dissolving, leaking
• Product safety testing• Regulatory / legal requirements - registration
• Electrostatics optimisation• Product Performance - knockdown and kill• Benchmarking against competitors• Stability of formula for 2 or 3 years min
– study the product for many years– degradation
• Compatibility of formula with aerosol cans– corrosion, dissolving, leaking
• Product safety testing• Regulatory / legal requirements - registration
Insect Seeking Flyspray: Development (cont)
Insect Seeking Flyspray: Development (cont)
• Packaging materials are important for the
product
• Artwork & brand name
• Transport & warehouse tested
• Applied for international Patent protection of our
intellectual property (our strategy to be No 1)
• Packaging materials are important for the
product
• Artwork & brand name
• Transport & warehouse tested
• Applied for international Patent protection of our
intellectual property (our strategy to be No 1)
Insect Seeking Flyspray: LaunchInsect Seeking Flyspray: Launch
• Manufacturing - build up stock in warehouses
• Final trade briefing about a new product• Final advertising plan
• Launched in Australia 1999• Ongoing advertising, marketing and selling• Tracking of sales, market share and
consumer feedback
• Manufacturing - build up stock in warehouses
• Final trade briefing about a new product• Final advertising plan
• Launched in Australia 1999• Ongoing advertising, marketing and selling• Tracking of sales, market share and
consumer feedback
Launch Brief
Insect Seeking Flyspray: Roll-OutInsect Seeking Flyspray: Roll-Out• Harmonised graphics, cans, brand names (Mortein,
Shieldtox, Doom, Neocid, Pif Paf)• Marketed in more than 40 countries:
– ANZ (Australia, New Zealand, Fiji, PNG) – Africa Middle East (S.Africa, Kenya, Middle East- UAE, Kuwait, Jordan, Tunisia,
Libya, Jordan, Pakistan)
– E.Europe (Russia, Lithuania, Estonia, Latvia, Czech Republic, Slovak Republic, Hungary, Croatia, Bulgaria, Yugoslavia, Ukraine)
– W.Europe (Spain, Switzerland, France)
– Latin America (Argentina, Brazil, Chile, Mexico, Colombia, Venezuela)
– East Asia (China, Philippines, Indonesia,Malaysia, Singapore, Hong Kong, S. Korea, Thailand)
– South Asia (Sri Lanka, Bangladesh)
• Harmonised graphics, cans, brand names (Mortein, Shieldtox, Doom, Neocid, Pif Paf)
• Marketed in more than 40 countries:– ANZ (Australia, New Zealand, Fiji, PNG) – Africa Middle East (S.Africa, Kenya, Middle East- UAE, Kuwait, Jordan, Tunisia,
Libya, Jordan, Pakistan)
– E.Europe (Russia, Lithuania, Estonia, Latvia, Czech Republic, Slovak Republic, Hungary, Croatia, Bulgaria, Yugoslavia, Ukraine)
– W.Europe (Spain, Switzerland, France)
– Latin America (Argentina, Brazil, Chile, Mexico, Colombia, Venezuela)
– East Asia (China, Philippines, Indonesia,Malaysia, Singapore, Hong Kong, S. Korea, Thailand)
– South Asia (Sri Lanka, Bangladesh)
Insect Seeking - More informationInsect Seeking - More information
• More information regarding Insect Seeking Technology can be found at:
www.mortein.com.au/insect_seeking.html
• Further information regarding Louie the Fly, Mortein products and their uses can be found at:
www.mortein.com.au
• More information regarding Insect Seeking Technology can be found at:
www.mortein.com.au/insect_seeking.html
• Further information regarding Louie the Fly, Mortein products and their uses can be found at:
www.mortein.com.au
Louie the Fly - Insect seeking technology 2001