Consumer goods major Reckitt & Colman India Ltd. has chalked out an expansion strategy to introduce 20 new brands in the year 1999-2000. The strategy also involves repositioning its existing brands and consolidating sub-brands under its main umbrella brands -- Dispirin, Dettol, Harpic and Cherry Blossom. The strategy is designed to vault Reckitt & Colman, currently ranked seventh among fast moving consumer goods companies in terms of sales, into the big league.
With the launch of new brands and the repositioning of its existing brands, the company aims to achieve a sales growth of 30 per cent in the year 1999-2000, up from its present five per cent growth.
The company has centred its thrust areas on its existing mega brands -- Dispirin, Dettol, Harpic and Cherry Blossom -- which will constitute the umbrella brands. Sub-brands will be brought under them. Broadly,
- Dispirin will become the umbrella brand for OTC medicines for cold and influenza as well as for cardiovascular drugs. Dispirin OTC products will take on Proctor & Gamble's Vicks range of products. The cardiovascular drugs will be marketed by Reckitt Piramal, the marketing joint venture between Reckitt & Colman and Nicholas Piramal.
- Dettol as an antiseptic lotion will provide brand support to Dettol soap, which will be re-launched in a fragrant form called Dettol Fresh. This brnad will take on HLL's Liril.
- Harpic, which according to the company is the No one toilet cleaning brand in the country, will function as an umbrella brand for several sub-brands. The product itself will be given a touch of fragrance. There will also be a freshner variant.
- Cherry Blossom will act as a mother brand for several easy-to-use home products. The low-profile Mansion floor shine polish will be bought under this brand.
Following the 30 per cent expected increase in sales growth in 1999-2000 as a result of this brand repositioning and introduction of new brands, Reckitt & Colman expects to double its turnover every 2-3 years.
Reckitt & Colman's business consists primarily of two segments- household products and over the counter pharmaceuticals. The former comprise products in fabric care, shoe care surface care, insecticides and toilet care. In each of these segments the company has strong brands. The brands in the household category include Cherry Blossom, Robin Blue, Lizol, Harpic and Mortein. The over-the-counter (OTC) pharmaceutical range consists of the Dettol range ( Dettol antiseptic lotion, liquid soap, and shaving gel) and medicinal products such as Dispirin and Coldarin.
In 1997-98 Reckitt & Colman entered into a joint venture with Nicholas Piramal under a separate company, Reckitt Piramal Ltd. As per the agreement under the joint venture the marketing and sales promotion foe Reckitt & Colaman's OTC products were to be handled by Reckitt Piramal by utilizing the distribution network of Nicholas Piramal.
Parent company Reckitt & Colman Plc holds a 51 per cent in the Indian subsidiary. Its support to the Indian entity has been demonstrated through access to the parent company's brand portfolioand a regular introduction of new products/ brands in the existing or new market segments.