DETTOL – MANAGING BRAND EXTENSIONS

GIST OF THE CASE

This case is about how influential a brand equity of the product can be, both in positive as well as in the negative side.

RBIL decides on the brand extension of Dettol, one of the most trusted brands all over the world.

Brand extensions – soap, plaster, liquid soap, shaving cream, floor cleaner.

VERY STRONG BRAND EQUITY It has been in the market for nearly 75

years. Voted as one of the most trusted brands

all over the world. Ranked 52 in the Consumer Superbrands

in the world Perceived as King of Germ Killing. Core Benefit – Killing germs and Treating

Infections.

THE POSITIVE SIDE

Dettol has a market share of 85% as against the 12% of Savlon.

Revenues of various years through Dettol: 1990 – 27 crores; 1998 – 168 crores; 2001 – 230 crores.

Dettol soap promoted as 100% germ fighter – received good response from the market.

“Repositioned Product”

THE NEGATIVE SIDE

Dettol Soap: Variants – Dettol Fresh(perfumed variant), Dettol Junior, Dettol Extra(moisturizer), Dettol Skincare(women), Dettol Cool (teens).

Followed niche marketing based on age and life cycle stage.

Failure – People’s perception that Dettol is a germ killer and has antiseptic nature.

THE NEGATIVE SIDE

Dettol Liquid soap: Launched handwash which was well received since a customer would expect his hands to be 100% germ free which is the propsition of Dettol. Variants – Skin care and Sensitive.

Dettol Bodywash was launched but failed to make any mark in the market, since bodywash was used by high class customers and they expect something more than germ killing.

THE NEGATIVE SIDE Dettol Shaving cream – Again, this too

was a failure because of poor marketing and lack of expertise.

Dettol Talc – Promoted as a talc which fights body odor and kills germs.

But people expected fragrance and they perceived it to have medicinal odor.

Lost to Nycil, Boroplus and Dermicool.

BRAND KNOWLEDGE

THE NEGATIVE SIDE

Dettol Mouthwash: Value prposition of Dettol Mouthwash – fights germs in the mouth.

But mouthwash is for fighting bad breath and hence failed in the market.

People could not imagine using the same brand as a disinfectant and mouthwash.

DETTOL FLOOR CLEANER

Dettol floor cleaner: It was launched in 2002 with germ killing proposition.

The same company had already promoted a multi utility product which can be used in floor cleaning also – Dettol antiseptic liquid.

So people considered the floor cleaner as unwanted.

ROAD AHEAD

Reckitt is planning to launch a range of personal care products such as deodorants and creams.

The aim was to leverage the parent brand for rapid growth.

The idea was to move away from Dettol’s image of offering functional benefit of killing germs and make the brand more versatile.

PROMOTIONAL STRATEGY

Launched Surakshat Parivar in association with IMA to create awareness on hygienic practices

“Dettol is the brand every mother trusts to safeguard her family” – Mrs. Anne Engerant.

Functional: Projected the functional aspect of Dettol – ANTISEPTIC.

Emotional: Mother is not worried about the son who is staying away from her because he was under the protection of Dettol - LOVE AND CARE.

DEFENSE STRATEGY

J&J took over the main competitor of Dettol, Savlon and promoted the soap aggressively.

Dettol felt unsecured and ventured into medicated plasters field in which J&J was the market leader- mobile defense (market broadening) and counter offensive defense (invading attacker’s main territory)

The strategy worked and J&J started concentrating on Plaster variants instead of Savlon.

Plasters did not yield significant revenue as the market was too small ( 20 crores )

WHERE DID IT GO WRONG?

Negative Brand Equity Dettol Soap – Too many new variants

weakened the parent brand. Cannibalization – One variant started

eating up the market share of another variant.

Brand confusion – Parent brand lost its value proposition.

Did not differentiate the new variant properly.

A SIMILAR EXAMPLE - XEROX This is regarded as one of the worst Brand

Extension Failures. XEROX – Pioneer in photocopying

machines. Decided to go for a Brand Extension and

Forayed into computers and data systems. Incurred a loss of $85 million in the US. Negative brand equity – Xerox is strongly

associated with photocopies.

XEROX

In 1980s repositioned itself as provider of technology based products.

It launched XTEN and Ethernet Office network to compete with IBM.

The advertisement was – “XEROX Computer Services – This is not about copiers.”

But still it could not change the perception of the people.

SUGGESTIONS

Continue to work on your strength. Adopt constant innovation and come up

with a new revolutionary product which can change the outlook of Dettol.

Stop using the name Dettol to certain products such as mouthwash.

THANK YOU