Case: Reckitt Benckiser (RB)

1. Explain the concept of ‘Power Brands’. How did RB use Power Brands for product innovation and revenue / profitability growth (RB Treatment)?

MARKET OVERVIEW: Reckitt Benckiser (RB):

* Their alliance is their power. The two businesses were a good match, with a combined history of innovation spanning over 150 years. Complimenting each other geographically, they now covered extensive markets across Europe, the UK, Australia, the United States and many smaller markets worldwide. Similarly, their product portfolios worked well together, with Benckiser a market leader in automatic dishwashing and fabric care products, while Reckitt & Colman had achieved success in disinfectants, home care, pest control and health and personal care. The merger was a successful one, with RB the fastest growing business in its sector.
Achievement – RB don’t just aim high, we always aim to outperform
Entrepreneurship – RB allow daring ideas to thrive
Team Spirit – RB work as one united by common principles and attitudes
Ownership – RB take initiative to do what’s needed.
Power Brands: Power brands are a set of fast moving brands where market innovation is the key of success that will give the company a maximum profit share. RB has identified 19 of their best selling products that, in their category, are globally number one or two on the market. They call these their Power brands – global leaders in high growth categories. Focussing on their Power brands makes sense, as the profits from these 19 brands alone make up more than two-thirds of the company’s total revenue. RB invests heavily in these brands through advertising and marketing to maximise the returns and grow their market share.

Power Brands for product innovation and revenue / profitability growth (RB Treatment)?

Power Brands for product innovation: