Reckitt Benckiser Competition
Now Viewing Reckitt Benckiser's competition in: Soap and Detergent Manufacture (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Who are the company’s main customers? - Customers in the consumer segment include supermarket chains, mass merchandisers, drugstores, and warehouse clubs. Customers in the commercial segment include industrial and commercial laundries, hotels, restaurants, and healthcare providers.
What type of sales operation does the company have? - Most large companies have an in-house sales force.
What is the company doing to enhance customer service? - Customer service is especially important in the commercial segment.
What role do distributors play in the company’s sales operations? - Companies use independent distributors to service small accounts.
What types of marketing or promotion are most effective for the company? - Marketing and promotional vehicles include TV and magazine ads, coupons, direct mail, and websites.
For companies in the consumer segment, which brands are most important to the company? - Brand names, like Tide and Dial, are extremely important.
How does the company’s retail pricing compare to the market's? - In the consumer segment, laundry detergent averages $5, dishwashing detergent $2; soap retails for $2.50.
How does the company's marketing spending compare to competitors'? - Both the consumer and commercial sector are highly competitive, with large companies spending millions to protect market share.
Competitive Landscape
Population growth, particularly among households with children, drives demand in the consumer sector, and economic growth drives demand in the commercial sector. The profitability of individual companies depends on efficient operations and effective sales and marketing. Large companies have scale advantages in purchasing, manufacturing, distribution, and marketing. Small companies can compete effectively by offering specialized products, providing superior customer service, or serving a local market. The industry is capital-intensive: average annual revenue per worker is more than $1 million.
Business Challenges
CRITICAL ISSUES
Volatile Production Demand - Overall demand for soaps and detergents depends on multiple factors and results in wide swings in production volume, making capacity planning difficult. Annual production changes can be more than 10 percent. Consumer demand is influenced by population growth, particularly of households with children; commercial demand is driven by the health of the hotel, restaurant, and hospital industries.
Slow Growth in Wholesale Prices - Market maturity and heavy competition have depressed growth in wholesale prices for soaps and detergents. Wholesale prices for household detergents have risen slowly in recent years. Consumers and businesses are generally price-sensitive about cleaning products, and likely to switch to lower-priced brands to save money.
Industries Where Reckitt Benckiser Competes
- Consumer Products Manufacturers
- Cleaning Products(primary)
- Personal Care Products
- Food
- Pharmaceuticals
- Pharmaceuticals Manufacturers
