Reckitt Benckiser: Building a Brand Powerhouse


Reckitt Benckiser (RB) believes in the power of a potential market, whereby it utilises innovative approaches to engage customers during product development. It collaborates with them and considers every idea that originates from potential consumers (Alahdab et al. 2013). The firm ensures that it focuses on ideas that meet the requirements of clients. In fact, the focus has made many companies in many countries globally admire its ways of dealing with their customers (Alahdab et al. 2013).

RB’s products have powerful brand names that are strengthened by high levels of creativity. The business establishment concentrates on adding value to its goods, encouraging its buyers to continue buying its goods (Chase 2013). This results from the originality of its products, making them draw customers’ attention. Innovation has increased its performance outcomes and has reduced both production and marketing costs.

Moreover, RB values its customers. Although it has its technologies, it spends a lot of time with clients in the laboratory, and in their homes to obtain their views about products. This has made them feel appreciated and cared for by the company (Chase 2013). The study case shows that RB has an excellent online platform that links its main page to other pages concerning the prices of products and their features. The online platform has enabled it to acquire relatively quick responses from customers across the world. Various responses enable the management to enhance marketing strategies to improve sales turnover (Chase 2013).

In addition, the company monitors technological and societal trends that may impact customer behaviours and sales of products. The approach allows the management to understand the needs of society and technological advancements that occur across the world (Kotler 2012). It is critical to note that the company encourages teamwork during product design and production processes. Teamwork helps it to respond quickly and efficiently to any issue that could emerge (Kotler 2012).

Thus, innovation is critical because it enables the company to come up with strategies to produce and sell unique goods that have the potential to increase the level of competitive advantage. It is important to state that the business establishment has achieved product leadership positions in the market because it has reduced the cost of its products, although they are of good high quality. It spends a lot of money on marketing its strategies and promoting its core brands. Above all, the company has strong, dedicated, and innovative leaders who understand the business and manage it with passion.

Reckitt’s product development

It is important to emphasise that for a business to thrive, consumers’ needs should be considered before developing products. It is noteworthy to engage clients to give their ideas about a product that is already in the market (Armstrong et al. 2008). This would help a company improve the quality of its commodities to meet buyers’ needs. RB utilises consumer-centred product development strategies to produce goods.

The approaches are systematic, implying that they are typified by sequences of steps. Consumers’ ideas are carefully considered during product development processes. Their ideas help to come up with great brands that culminate in excellent sales (Armstrong et al. 2008). Some personnel of the firm spend substantial time in the laboratory to investigate the level of workability and durability of new products (Armstrong et al. 2008).

Thus, the methods used in commodity development are empirical and utilise scientific ways to develop goods. The application of technology also shows that it is systematic. A high level of technical expertise promotes efficiency, saves time and reduces marketing costs (Armstrong et al. 2008). Brands are sorted out systematically to improve them and attract more customers.

The challenges in managing the brand portfolio based on the PLC

Based on the PLC, it is evident that the business enterprise faces several challenges. In 2008, there was an announcement that was made by the United States Environmental Protection Agency (EPA) vis-a-vis its plan to get rid of all second-generation poisonous chemicals (Lash 2014). They were only allowed to be purchased by the US licensed companies. RB, the producers of d-con commodities, experienced a legal challenge that could take a long time to resolve.

Another challenge is competition from other national brands that are emerging (Lash 2014). Therefore, it needs to develop some strategies to counter the competition and maintain its market shares. In addition, low prices could lead to its closure (Bloomberg 2009). Although low pricing approaches are aimed at catering for buyers with low purchasing power, if the company is not keen, it could become bankrupt (Lash 2014).

Moreover, the firm is not covered by patent protection, making profit reduce almost every year by about 20%, which was witnessed for the last 10 years (Lash 2014). Input cost fluctuations in the market could also negatively impact its performance. Sometimes, prices of raw materials may remarkably increase or decrease, making it difficult for RB to maintain the prices of its goods on a long-term basis.

Unstable foreign currencies, where values depreciate or appreciate often, could be another challenge that is experienced by the company. There are various challenges that RB would face concerning its operations and marketing. For example, incorporating vitamins, minerals and supplements into its products could be challenging. More so, suboxone, a drug that treats opiate dependence has lost a good position in the market (Lash 2014).

Maintaining market position

Maintaining a unique position in a highly competitive market requires commitment and adoption of strategies that are practical, and which can be applied to meet the expectations of clients (Kotler 2012). Therefore, it would be essential for RB to consider its customers’ interests first as it has always done. It would be advisable for the company to maintain its market position, although it is facing stiff competition from national brands.

This is demonstrated by a study that was conducted by Hansen and Skinner (2012) to assess the position of the business establishment in the market. The researchers revealed that its profit would increase by a third in that financial year. By 2015, they anticipated that the earnings could be 19 times more, and its position in the market could be 14 times ahead than it was then. In fact, its overall profits are expected to increase by 4.7% (Hansen & Skinner 2012).

Another study indicates that the standard sales growth rate could improve by approximately 4% every twelve months up to 2023 (Douglas & Craig 2011). Thus, it could be possible for the organisation to retain its global market leadership. The study also indicates that its efforts of expanding health and hygiene segments have started to pay off in the recent past. This has been the case due to the firm’s collaboration with Bristol-Myers Squibb in Latin America, and the purchasing of the long drug (Douglas & Craig 2011). Therefore, it is important to assert that RB would retain its position in the market despite the stiff competition from the emerging national brands.


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Armstrong, G, Harris, LC, Kotler, P, & Piercy, N, 2008, Principles of Marketing, 6th European edition, Pearson Education Limited, Upper Sandle River, NJ.

Bloomberg, 2009, Marketing in the age of turbulence. Web.

Chase, CW, 2013, Using Big Data to Enhance Demand-Driven Forecasting and Planning, The Journal of Business Forecasting, vol. 32, no. 2, p. 27.

Douglas, SP, & Craig, CS, 2011, ‘Convergence and divergence: developing a semiglobal marketing strategy’, Journal of International Marketing, vol.19, no.1, pp. 82-101.

Hansen, H, & Skinner, ME, 2012, ‘From white bullets to black markets and greened medicine: the neuroeconomics and neuroracial politics of opioid pharmaceuticals’, Annals of Anthropological Practice, vol. 36, no.1, pp.167-182.

Kotler, P, 2012, Marketing, Video recording, Chicago Humanities Festival, Chicago, CA.

Lash, E, 2014, Reckitt’s pharma spinoff will do little to assuage competitive pressures in its consumer business. Web.

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