When Reckitt Benckiser (RB) launched its Dettol Air Protect air masks exclusively through Amazon in

March 2016, it was strengthening its product-innovation legacy. When the price was set at ₹699,2 RB
was

renewing its promise to safeguard its customers’ health at affordable prices. 3 The world’s largest

manufacturer of household products and a major marketer of health-care and personal-care

at a threshold of marketing opportunities provided by increasingly health-conscious consumers in

who would stop at nothing to rid their homes of germs. 4 At a time when more and more Indians
were

looking for antibacterial products to protect their health, observers wondered if the time was right
for RB

to launch an anti-bacterial detergent powder as part of its brand-expansion strategy and if such a
move

would give RB a competitive advantage as the first company in the market segment (a first-mover

advantage).

RECKITT BENCKISER

Reckitt Benckiser was headquartered in Slough, Berkshire, England. Founded in 1819 as Reckitt &
Sons,

the company became Reckitt Benckiser in 1999 when the U.K.-based Reckitt & Colman merged with
the

Netherlands-based Benckiser NV. The company employed 37,000 people worldwide and had a global

presence with branches in more than 60 countries and almost 200 sales offices. 5 The company
reported

net revenue of £8,874 million6 for fiscal year 2015—a growth of 5 per cent over 2014 (see Exhibit
1).7

The company started its operations in India in 1910.8 With sales growing faster than in RB branches
in

other nations, the Indian arm of RB, Reckitt Benckiser (India) Ltd (RB India), was upgraded in 2012 to

become the regional headquarters for Southeast Asia. 9

RB India had three major portfolios: household products, personal-care products, and over-the-
counter

pharmaceutical products (see Exhibit 2).10 Much of the company’s revenue came from brands that
were

leaders in their categories. Another significant source of revenue was from one of RB’s core
strategies:
innovation. On average, 30 per cent of RB’s revenue between 2011 and 2014 was generated from

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innovations. Another part of RB’s strategy was to go after niche segments with a concentration of

unorganized companies and very few organized competitors. 11

DETTOL: THE BRAND

Dettol Antiseptic Liquid was RB’s flagship product. Introduced in 1932 as a skin antiseptic for surgical

procedures and childbirth, Dettol became an all-purpose antiseptic disinfectant that spawned a
brand

collection of antibacterial products. RB positioned Dettol as the invisible germ shield, using the
mother-

child relationship in its advertisements to convey protection against harm. Dettol allayed consumers’
fears

pertaining to cleanliness and hygiene and protected families—just as mothers did.12

Dettol’s antiseptic liquid was packaged in a clean, slim bottle with round edges and a large cap that
could

be easily opened. The bottle resembled medicine bottles, and the wrapping’s white-on-green colour

scheme was reflective of hospitals and nursing homes. The white sword in the logo drew upon the
staff of

Aesculapius, universally recognized as the symbol for physicians. RB referred to the white sword as
the

“sword of trust.” The clouding effect created when Dettol was added to water was used in advertising
to

represent the dispersion of Dettol in water.

Dettol was recommended by doctors as an antiseptic liquid for cleaning wounds and preparing skin
for

minor procedures. In due course, Dettol was used in hospitals for first-aid, to clean wards, and to
wash

linen. Patients could see the use of Dettol and followed doctors’ recommendation by buying the
product

for use at home. According to Kiran Khalap, founder of Chlorophyll Brand & Communication

Consultancy, Dettol represented the new, allopathic perspective that germs caused diseases—a
departure

from the historical view that disease was caused by an imbalance in the body.13 As Indian society
became
more accepting of the modern view, it was common to be told not just to use Dettol on wounds but
also to

bathe in Dettol-dissolved water after coming in from the heat and dust outside and to use Dettol for

cleaning toilets and household surfaces.

Dettol became the invisible protector against germs. With its distinct smell, colour, and sting, Dettol

evoked an emotional bond in millions of Indian hearts. The brand was so powerful in India that for
most

people, antiseptic liquid was synonymous with Dettol, and Dettol had top-of-the-mind recall. Of the

various strong associations that Dettol had built in the consumer’s mind, the first was the trademark
smell

that assured mothers of a quality good enough to make them trust Dettol every time their children
had a

cut or scraped knee. According to Nitish Kapoor, MD, of RB India, Dettol was considered the “gold

standard in germ protection.”14

The brand continued to stay contemporary through the launch of a breadth of products such as bar
soaps,

hand sanitizers, liquid hand washes, shower gels, and antibacterial wipes. 15 In 2013, Dettol even
entered

the dishwashing arena with a kitchen cleaning gel.16

Even though the brand evolved over the years, the core message for customer engagement
remained

consistent. 17 As the world’s leading brand of antiseptics, Dettol offered high anti-germ standards,
and

health-care professionals recommended it for its proven ability to keep families healthy. Consumers
saw

Dettol as an effective and versatile “expert,” an image RB reinforced with its tag line “Be 100% Sure.”

Through its advertisements, Dettol also enjoyed the emotional appeal of a mother’s love and care for
a

hurt child.18 RB constantly projected Dettol as a product that cares about families, just as mothers
do, and

allayed the fears of consumers pertaining to cleanliness and hygiene. 19

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Dettol was voted India’s most trusted brand numerous times. In 2013, Dettol was ranked second on
the
list of most trusted brands, compiled by Economic Times’ Brand Equity.20

DETTOL ANTISEPTIC LIQUID

The antiseptic liquid market in India was estimated at ₹3.5 billion in February 2015. The market was

dominated by Dettol, which had more than 80 per cent of the share. Johnson & Johnson’s Savlon

Antiseptic was the other significant product, with a market share of 15 per cent.21

The antiseptic liquid was the first product launched under the Dettol brand in India in 1933. The
liquid’s

distinctive smell was associated with cleanliness and hygiene—an association so entrenched in
people’s

mind that the Dettol smell was a stamp of proof that a room was medically clean and germ free. The

tingling, burning sting that Dettol inflicted when applied on wounds convinced consumers that Dettol
was

killing the germs and healing the affected area. In contrast, consumers deemed Savlon Antiseptic

ineffective because it lacked the sting.

Brand Extensions

After five decades of growth, the brand faced stagnation: despite being part of the average
consumer’s

emergency kit, Dettol was rarely used. Another issue was constrained revenue, as the Indian
government

had Dettol antiseptic liquid under the purview of price controlled drugs, so the company could not

increase the price without approval by the government. To coax consumers out of their lack of

engagement with Dettol, the company began promoting Dettol as a product with multiple uses:
cleaning

floors, washing clothes, shaving, bathing, and more.

RB also built on Dettol’s strong parent brand with a brand-extension strategy. Dettol’s antiseptic
liquid

was joined by Dettol soap, Dettol liquid hand wash, Dettol liquid body wash, Dettol shaving cream,

Dettol medicated plasters, and Dettol kitchen gel.22 The brand celebrated 83 years in 2016 and has

continued to grow strongly.

Dettol Gold Bar Soap

Dettol soaps were introduced in 1984 with the tagline “100 per cent bath,” consistent with Dettol’s
tagline

“Be 100% Sure.” According to brand equity research, despite Dettol’s emphasis on germ protection,
this
product was not a popular choice in the bathing soap category for consumers. 23

The soap market in India was worth ₹132 billion in 2015. Hindustan Unilever Limited (HUL) led the

category with Lifebuoy and Lux, with values of ₹22 billion and ₹19 billion, respectively. The Dettol

soaps market share was valued at ₹10.5 billion.24

Dettol Fresh Lather Shaving Cream

Dettol shaving cream was launched in India in 1996 and proved useful in growing the brand. The idea
for

the shaving cream originated from the use of Dettol antiseptic liquid in shaving water.25

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The shaving cream market in India was worth ₹2.44 billion in 2015 and was dominated by Vi-John.
The

volume market share of Vi-John, Dettol, and Axe—the top three brands—were 29.2 per cent, 8.5 per
cent,

and 7.4 per cent, respectively.26

Dettol Plasters (Bandages)

Dettol plasters, launched in India in 1991, became an important extension to the brand because the

product was directly used for first-aid, which was Dettol’s core area. 27

Johnson & Johnson led this category with 69 per cent share of the value sales in 2015. Johnson &

Johnson benefitted from having the first-mover advantage with its brand, Band-Aid.28

Dettol Original: Liquid Hand Wash

In 1994, Dettol launched its liquid hand wash, which provided consumers with handwashing

convenience.

Historically, the handwashing segment was dominated by Dettol because of RB’s efforts in building
this

sector and its continued emphasis on germ protection.29 Dettol held a major share of the ₹5–billion
liquid

hand-wash market in India in 2015.30

Dettol Original: Liquid Body Wash

RB launched its range of Dettol body-wash products for men and women in 2012. The products
marked

RB’s entry into the body-wash segment. RB continued to highlight the germ protection aspect of the
Dettol product and emphasized the liquid format that promised to be fresher than regular soap.31

Dettol Healthy Kitchen: Kitchen Gel

With the launch in February 2013 of Dettol kitchen cleaner, a new range of disinfectant kitchen gels,
RB

entered yet another new market. Dettol kitchen gel was launched with the objective of extending the

promise of Dettol’s germ protection to the kitchen with a single solution.32

Dettol Instant Hand Sanitizer Original

Dettol launched an instant hand sanitizer in India in 2010. The sanitizer was dermatologically tested
and

recommended by the Indian Medical Association. Commenting on this initiative, Chander Mohan
Sethi,

chairman and managing director of RB India, said that the trusted brand Dettol had always made
every

effort to provide their customers with the best germ-protection products. Dettol hand sanitizer,
which had

considerable acceptance and popularity the world over, was introduced in India to give customers
on-the-

go protection.33

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LAUNDRY CARE IN INDIA

The laundry-care market in India grew by 9 per cent in retail value and reached ₹189 billion in 2015.
The

launch of new variants and value-added products further expanded the category. Automatic
detergents

and high-quality hand-wash laundry soaps boosted value growth in the laundry-care market, while
fabric

softeners, laundry aids, and liquid detergents remained the slow-moving products in this category.34

India’s detergent market could be classified into two segments: hand wash and machine wash. Those
two

segments had two categories each. Powder detergents made up 98 per cent of the hand-wash
segment,

followed by bar detergents. Powder detergents in the machine-wash segment had a 68 per cent
share,
followed by liquid detergents. From 2005 to 2012, the sale of powder detergents grew at a
compounded

annual growth rate (CAGR) of 9.5 per cent in the machine-wash segment and 8.8 per cent in the
hand-

wash segment. Multinational companies had a strong presence in the laundry-care market in India,

serving about 56 per cent of the category.35

HUL was the market leader in laundry care with a value share of 34 per cent in 2014–2015, followed
by

Rohit Surfactants Private Limited (RSPL) with a share of 22.8 per cent in the same period. Procter &

Gamble (P&G)—which had the world’s largest-selling detergents, Tide and Ariel—held 18 per cent of

the market. 36 HUL’s stronghold was attributed to frequent product innovations and extensive
marketing.

The success of Ghari and Nirma was attributed to their long and sustained presence in the Indian
market

and their positioning as the common person’s detergent.37

Growth in the laundry-care market was fuelled by growing disposable incomes, increasing
penetration of

washing machines, and demand for better quality premium products. Added product benefits such
as stain

removal, shine, and softness also supported market growth. Fabric softeners, although a minuscule
part of

the market, grew at a rate of 23 per cent in 2015—a growth attributed to increasing customer
demand. In

rural areas, rising income led to further penetration of low-cost detergent powders such as Nirma,
Ghari,

and Wheel, but growth was plagued by lack of water supply and frequent power cuts. In urban areas,
new

detergents for automatic washing machines, such as Surf Excel and Ariel Matic, continued to grow

rapidly.38

Premium laundry detergents increased the growth rate of India’s laundry segment, as women
gravitated to

one product with multiple attributes to save time and energy. As consumers in urban India opted for

products that satiated their need to care for their clothing even if at an extra cost, the sale of
premium

laundry detergents and solution washes increased. Economy products had a larger market share in
the
laundry segment as a whole because of their high volume share and larger consumer base. Urban
Indians

were the prime consumer base for fine-fabric detergents, liquid detergents, and powder
detergents.39

MAJOR COMPETITORS

Hindustan Unilever Limited

In 2015, HUL, with its brands Surf, Rin, and Wheel, was the market leader in the laundry segment
with

37.6 per cent. Wheel led with a 17.5 per cent share of the laundry market. 40 Surf, launched in 1959,
was

the first detergent powder in India, thus creating the detergent powder category in India.41 HUL
launched

Rin bar soap in India in 1969 with a white lightning logo; over the years, the brand grew synonyms
with

sparkling white clothes. The company extended the brand with Rin detergent powder in 1994. The
brand

underwent two more extensions in 2007 and 2012 with the launch of Rin Bleach and Rin Perfect
Shine,

respectively.42 HUL launched Wheel detergent powder in 1988 to counter the success of the
detergent

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powder Nirma, which was launched by Nirma Limited at a price that appealed to cost-conscious

consumers. 43 HUL continuously innovated and improved its product portfolio to maintain its market

leadership position.44

Procter & Gamble

P&G entered the Indian laundry-care market in 1990 with the launch of Ariel. Ariel was positioned as
a

premium product, considered to be superior to HUL’s Surf because of Ariel’s advanced enzyme-based

technology. Ariel was upgraded to Ariel with Microshine in 1996. In 2000, P&G launched Ariel Power

Compact detergent bar.45 Indian households used both bar and powder detergents because Indian

housewives believed that powder could not clean dirt from collars and sleeves as effectively as a bar.
46

P&G launched Tide in India in 2000, wanting both Ariel and Tide brands in the market to capture the
growing premium detergent segment in India. Tide was introduced as a product that improved the
quality

of whiteness in laundry.47 P&G had a market share of 18 per cent in 2014–2015.48

Rohit Surfactants Private Limited

RSPL had a 22.8 per cent share of the laundry care market in 2014–2015,49 making it the second
largest

company in the market. 50 RSPL’s brand, Ghari detergent, was launched in 1987. RSPL developed a

strong distribution channel by providing dealers with higher margins, which gave a long-term
advantage

to the company.51

Nirma Limited

Nirma was launched in 1969 with a door-to-door campaign at a very low price. By 1985, Nirma had

overtaken HUL as the top detergent company in India, holding a 60 per cent market share. Nirma’s
price

point forced HUL to launch its low-cost detergent brand, Wheel. Without any innovation over the
years,

Nirma’s market share dropped to 10 per cent by 2014.52

VANISH: RB’S LAUNDRY MARKET TEST DRIVE

With the laundry-care market evolving and consumers demanding cleaner, whiter, stain-free clothes,
RB

launched Vanish as India’s first stain-remover brand in 2005, thereby creating the new stain-remover

category and placing RB in the laundry-care market. Vanish was a global brand that effectively
removed

tough stains caused by tea, coffee, ink, ketchup, and more. These stains were difficult to remove with

detergent alone, so stain removal products became imperative. Vanish was meant to be used with

detergents as an additive. Marketing a stain remover was complex considering many existing
detergents

(Ariel, Surf, etc.) had positioned themselves as detergents with stain removers.53

Vanish was relaunched in 2007 with a new, improved formula to remove even dried-on stains. In
2009,

two years after the relaunch, Vanish’s market penetration was only 1.1 per cent in India, because
most

customers thought that the brand was expensive and damaged clothes. 54

In 2011, the company launched Vanish Liquid with the slogan “goodness of oxygen,” positioning the
product as the safest stain remover for coloured, white, and delicate clothes. Vanish Liquid was
launched

in two cost-effective sizes: 180 ml for ₹25 and 500 ml for ₹49.55

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