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SMMCG7[TP2]_Reckitt Benckiser, Chinese market are highly competitive and…
SMMC
G7
[TP2]_Reckitt Benckiser
Differentiation Strategy
Differentiation strategy focuses on developing brand loyalty by offering premium products.
Reckitt Benckiser sets to achieve competitive advantage by adopting product, service, quality, image, people or innovation differentiation
Reckitt Benckiser main objective of using differentiation strategy is to differentiate by embedding the innovation
Example: Finish Dishwasher detergent
Reckitt Benckiser noticed consumers uses 3 different products in their dishwashers.
In 2008 Reckitt Benckiser came up with a new product called Finish Powerball 2-in-1
They extended their product line to differentiate themselves from competitors
Competitive Advantages
Resources
Human Resources
Spirits
Variety of brands
Capabilities
Materials management Capability
suppliers' policies
Responsible Business
Responsible Sourcing
Human Rights
Natural Raw Materials policy
Product designed Capability
Sustainable product innovation
reduce environmental footprints
HR management Capability
People-oriented employment culture
Talent Assessment
forums
86% employees are proud to work for RB
focus groups
listening sessions
Activities
R&D Activity
Investing in R&D and education
invested £105 million in Science and Innovation Centre to deliver the latest innovations in consumer health
responsibility to help their consumers with fighting issues
HR management Activity
New global parental leave policy
:one: parents can take care of babies whole-heartedly
:two: they can stay heads down on their works
Holding RB Global Challenge
helps students find and attract future talent
a competition for business ideas with a social purpose
provided 50 job offers as a direct result of the challenge
Freedom to Succeed
released new employee proposition, RB gave their employees space to develop
Chinese market are highly competitive and its hard to sustain high margins
Inflated television advertising rates made marketing expensive
In 2010, RB managed to overcome the constraints with Durex
Using Durex leveraging the Chinese social platform and also investing in offline and online distribution
In the end, RB pulled off the new strategy
Durex condom sales increased the threshold in China
which makes them wanting to have the same results in the whole world other than China
Value Chain Analysis
:one: Primary
Inbound logistics
Operations
Have a flexible manufacturing system
Procure high quality inputs
Outbound Logistics
Effective handling and better shipping
Services
Marketing and Sales
Having a wider sales coverage
Having a superior service quality
:two: Secondary
Firm Infrastructure
Increase database development for effective marketing
Human Resource Management
Using personnel training for effective interaction
Technological Development
Innovation integration in product designing
Procurement
Procure high quality raw material and replacement parts
An inefficient distribution system increases costs
Example: Social Durex In China