Marketing and Strategy Analysis Assignment Example | Topics and Well Written Essays - 2000 words

Marketing and Strategy Analysis - Assignment Example Strategic decisions are concerned with the issue of setting a direction for the organization to move or the course the organization will follow. Though very crucial, yet preparing 'strategic moves' for future often is not always based on hard fact, but on presumptions as well. It involves past experience, forecasting and 'surround-effect'. Reckitt Benckiser has over the year successfully implemented the strategy of building strong brands across all its key categories like surface care, fabric care, dishwashing, home care, health and personal care and food. If Lysol is a leading brand in disinfectant cleaning, Calgon holds the number one market position in fabric care in Europe. Similarly placed are the major categories like Vanish (fabric care), Veet (cosmetic depilatories), Mortein (pest control) and Airwick (air fragrance). This strategy has paid rich dividends for the company with its top 15 brands consistently accounting for a majority of the company's revenues, from 40% of total revenues in 2001 to about 56% in 2005. such a brand creation in different categories allows Reckitt to; The consumer products business is mainly driven by three basic demographic factors: population growth, household formation and household income growth. Reckitt Benckiser has been consistently on the lookout for such a market in order to register strong growth in many such developing markets. Increasing focus on the developing markets like India and China are part of this strategy. The strategy of Brand building in such a market helps in deep penetration of the product reach. This way the investment in brand building is more than compensated by the market revenues. Reckitt Benckiser has made strategic moves with the help of the management comprising of young as well as experienced with careful selection of team from different nationalities in order to solicit contributions from them in good measure which helps in devising marketing strategies for different markets. Bart Becht, Chief Executive Officer, a Dutch national leads the pack. He has served many good companies in various capacities. Bart is followed by five Executive Vice Presidents with Javed Ahmed (a Pakistani), Freddy Caspers (a German), Rakesh Kapoor (Indian), Alain Le Goff (French national) and Elio Leoni-Sceti (Italian). Company has segmented its market broadly in three categories worldwide; North America & Australia, Europe and Developing markets. This helps the company in gaining a broader outlook about different markets. PESTLE analysis for Reckitt Benckiser PESTLE stands for political, economical, socio-cultural, technological, legal and ecological factors. Political: The range of products that Reckitt Benckiser is in, doesn't make it too controversial and unpopular with any government or society. The company has committed itself to the health, safety and welfare at work of its employees; complying with applicable health & safety legal requirements; and, the continual improvement of its health & safety control arrangements and performance. The products too are categorized as safe and great emphasis is laid in understanding all the issues involving safety associated with its products. Keeping high standards of safety saves it from the ire of the political classes as