Reckitt Benckiser is taking the brand extension route to revive its flagship household brands - Dettol and Mortein. These two brands account for over 60 per cent of Reckitt’s annual revenue of Rs 585 crore. The company further plans to push these brands through promotional activities for which it has increased the next year’s budget by 25 per cent to Rs 50 crore.
Reckitt is looking at the possibility of segmenting the Rs 1,500-crore premium soap market and is trying to develop soaps for specific use. The company is looking at pests in a holistic way and is planning to introduce new pesticides whose market is estimated to be over Rs 1,200 crore.
Apart from extending the range, the company is looking at how Dettol can be taken to different areas of use. A market research is already on to identify what consumer wants from an anti-bacterial soap.
The company is also trying to identify new pest areas and is looking for a holistic approach to this menace. Reckitt also plans to extend the ‘Mortein’ brand through coils, vapourisers and aerosols (sprays).
The company has already set aside around Rs 50 crore for promotional activities for these two brands. The overall budget has been fixed at Rs 100 crore, up from Rs 90 crore this year.
The promotional expenditure budget for Dettol and Mortein next year is up by almost 25 per cent. Although the company earlier tried to extend the Dettol brand through Dettol talcum, the company had to withdraw it as it failed. The company hopes to relaunch talcum in early 2003.