Reckitt Benckiser - Study of the Modern Trade Channel

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Reckitt Benckiser: Study of the Modern Trade Channel

Company Overview

Reckitt Benckiser Group plc (RB Group) is Berkshire, UK based FMCG engaged in the production, marketing and distribution of household cleaning, health and personal care products. RB has significant presence in 200 countries across Europe, North America, Latin America, Middle East Asia & Africa and Asia Pacific. Established in the year 1823 the company has gone on to become a major player in the segment with an annual revenue of

£9.8 billion in FY2016.

The group operates in two category of markets: a. ENA (with annual sales of £6.4 billion, FY16) comprising of Europe, Russia/Commonwealth of Independent States (CIS), Israel, North America, Australia and New Zealand; b. DVM (£3.07 billion, FY16) includes Developing Markets comprising North Africa, Middle East and Turkey, Africa, South Asia, North Asia, Latin America, Japan, Korea and ASEAN. RB also has a separate food business. The primary source of revenue for all these regions is through sale of branded products in the health, hygiene and home categories. The Food segment is operational primarily in the ENA countries.

Product Portfolio

RB operates on the following Business lines: health, hygiene and home. Health and hygiene constitute for 75% of the net revenue. Apart from the three RB also has presence in food products but it is limited to the ENA segment.[pic 3]

Health Business: offers products OTC products for fever, cold, flu, skin, nails and sexual wellbeing including condoms and other aids. Key brands: Nurofen, Scholl, Durex, Stencils etc.  

Hygiene Business: offers multiple cleaners, disinfectants and multipurpose solutions. These also include products for lavatory care, dish wash detergents, pest control and acne treatments. Key brands include Dettol, Veet, Finish, Harpic , Lysol, Mortein, Clearasil etc. Many of these brands enjoy a majority market share in their respective categories.