Transforming Reckitt Benckiser Harvard Case Study Analysis

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Transforming Reckitt Benckiser Case Study Solution and Analysis


Transforming Reckitt Benckiser Case Study Solution is a widely known international brand in technology industry, founded in 1938 by Lee Byung Chul, in South Korea. Transforming Reckitt Benckiser deals in a great deal of product categories consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and a lot more other electronic products. Historically, the company's core clients include the Original Devices Manufacturers (OEMs), which utilized to offer Enterprise items withtheir own brand name. Till early 1990s, the core proficiency of Corporation lie in its low rate offerings than its competitors by producing existing items at economies of scale. Its customer circle consists of Original Equipment Manufacturers (OEMs), who used to offer Transforming Reckitt Benckiser Case Study Help products with their own brand. Corporation was not merely understood outside Korea. There were likewise no or little interest in developing the trademark name internationally. Marketing budget was controlled by production department with a prime focus on providing low-cost products.During the 1997 Asian Financial Crisis the business practically got insolvent, however with the Vision of Chairman Lee it entirely turn its fortune around and in 2002 was noted the top 25 most valuable business worldwide. When Kim was employed as a Chief Marketing Officer in 2000 the company was not even noted. He repositioned Corporation as a worldwide brand and educated his divisional managers to comprehend marketing and its significance. Now their goal is to reach the top 10 by 2005.

Problem Statement

Venture's shift from an item based to a marketing business is not going as smoothly as planned.Overcoming the reluctance of divisional managers to incorporate marketing efficiently is still a significant obstacle. Developing a constant brand name identity throughout the entire world and employing marketing methods that finest fits the local culture is no easy job.
Executive Summary
Situational Analysis

Transforming Reckitt Benckiser Case Study Help efforts for building its brand across the world was begun after introducing the "brand-new management effort" by Chairman Lee in 1993. The goal was to transform Venture from an inexpensive OEM to a high value-added item provider. To make the vision of Company a truth, Chairman Lee designated Yun as a vice chairman in 1997. Yun had a rather clear image in his mind about how Corporation can change from a low end to a luxury product company. He understood that improvement can only be done through positioning Business as a company using high-end items and this could just be done through high level of marketing.

In spite of having a clear vision about how to build Corp brand, with a prospective support of its executives, Yun dealt with several marketing challenges in early years of its efforts.

Among the marketing obstacles for Yun was the understandings of executives about the value of marketing. They thought about marketing and selling as same tools and thought that quality items do not required marketing for increasing sales. As their focus towards marketing was rather low in their previous service practices, and the present marketing requirement was too much high, the gap was too larger and to fill this gap with wrong understandings about marketing was quite difficult for Yun.

As specified above, marketing focus was really low in previous practices, therefore there were no appropriate marketing spending plans for each of the product on the portfolio. There was no marketing preparation provided for the existing items. Together with it the item range of the business was increasing with the ripening of new item ideas by the R&D sector of Business. Yun had a challenge to perform marketing planning and to develop marketing budgets for existing along with for new products from the very beginning, and this would take a big time.

A substantial shift would be needed in current marketing expenditures to build the Corp brand name. This would result in increased marketing expenditures for Corporation and might disturb the administration concerning increased expenses, as they were hesitant to marketing expenses formerly and a sudden big shiftwould make them interrupt.

Internal Analysis
SWOT Analysis

Venture strengths lie in its huge product portfolio. Venture has largest variety of patents in the market with overall number of 15499 patents granted in US( USP). Big amount of R&D spending has actually made it possible for the company to grow its item portfolio at a greater rate than its competitors. Transforming Reckitt Benckiser Case Study Analysis spent about $13.079 billion on its R&D sector in 2016, which is 7.3% of its overall revenues.

Another strength of Transforming Reckitt Benckiser Case Study Help is its capability to develop ingenious items at a continuous rate. It major proves for the innovation and product creating of Organization is that the business has gotten so many awards for its innovation and product design.

Unlike Apple and other competitors, Company is concentrated on producing devices which can be easily incorporated with any kind of open source Operating System (OS) and software. This offers Business an edge over Apple gadgets.
Porter's 5 Forces Analysis
Business's ability to produce luxury products at low expense of production is likewise among the major strength of Enterprise as it enables the business to catch more market by offering quality items with expense control.

Weak points

Venture's weaknesses are concealed in the business's dependence on outsourcing software application for its gadgets due to company's inability in developing software, unlike Sony. Transforming Reckitt Benckiser Case Study Help likewise has low earnings margins as compare to Apple due to big difference in the costs of Apple and Enterprise with a much lower difference in quality.


Opportunities for Corporation depend on the growing Smartphone market and the business's effectiveness in the market. It can increase its market share and incomes from cell phone as the business is rather effective in cellular phone market. Organization presently runs in about 80 countries and the business has an opportunity to increase its geographical expansion by moving towards more emerging markets outside Asia. Company can move towards acquisitions to obtain patents. It would enable the company to increase its product portfolio with a boost in its wealth.


The dynamic industry environment of innovation industry posture an extreme hazard on Venture's survival and force the company to spend much of its earnings share on R&D in order to endure in the long run. The marketplace saturation in industrialized nations i.e. saturation of mobile company is likewise a huge risk for the company's growth in the presence of strong competitors like Apple.

4 P's of Marketing
Swot Analysis

Transforming Reckitt Benckiser Case Study Solution offers quality products and has a quite rich portfolio which accommodates various sections. Most of the items remain in the top three of their respective markets. LCD and smart phones are the biggest products of Corp, whereas DRAM is likewise not far behind in comparison of them. Following is the line of product of Company:

• Laptops.
• Smart phone.
• A/c unit.
• Computer.
• Hard drives.
• Washing machines.
• Refrigerators.
• Electronic cameras.
• Microwaves.
• Flash memory.


Transforming Reckitt Benckiser Case Study Solution utilizes both market competitive and market skimming pricing strategies for its wide range of items. In competitive pricing it adjusts the price according to the competition in order to get benefit, whereas, it utilizes market skimming strategy where the item has actually an added worth and by selling a couple of products it can reach break-even.


It has one of the very best supply chain networks, with retail distributors, their own sole suppliers, E commerce channels like Amazon and so on. All its products are timely provided to the selling place/ delivered to the customers straight in case of online order.

Vrio Analysis
It uses both offline & online channels of promotion to market their items. Paid product advertisements, social promotion and digital advertisements are utilizes to create awareness about Org products.

Value Chain Analysis.

It's an analytical framework for recognizing company activities that include worth or competitive advantage for the business.

Inbound Logistics.

For its incoming logistics it owns different logistics firms as it subsidiaries. It looks after its suppliers and creates an unified relationship with them and even reduced their payment cycles to increase this relationship further which includes value to their chain network.


Corp's core proficiency is its mass producing it produces 90% of its items in-house. Divided into three different divisions its operations are particularly IT & Mobile Communications, Gadget Solutions and Customer Electronic Devices. It is keeping operation centers worldwide to further include value to its worth chain network.

Outbound Logistics.

Its outbound logistics system efficiency is among the primary reasons Transforming Reckitt Benckiser Case Study Help is able to compete with Apple. Company's own Electronic Logitec system plays a significant role in the outgoing logistics operations. It even carries out the jobs of collection of payment, settling insurance claims, etc. on behalf of Venture.

Marketing and Sales.

Drawing in target consumer attention towards the product is done through marketing and sales to interact with them the worth and competitive advantage the item offers. Transforming Reckitt Benckiser Case Study Solution marketing budget plan is continually on the rise since they began their repositioning globally and will continue to do so as they are continually wanting to expand and invest in high potential growth markets. The budget is spent on occasions, print and media advertisements, public relations etc.

Organization Service. Company put their consumers on top and continuously aim to provide unmatchable customer service requirements. As after sales service is ending up being exceptionally important to keep consumers pleased and engaged, they even perform studies through third parties to discover their customer's feedback and implement it in the positive way to lower or if possible entirely eliminate their client issues. By adding a direct assistance line to contact them 24 hours they have even more increased the included value of Transforming Reckitt Benckiser Case Study Solution service.


Transforming Reckitt Benckiser Case Study Analysis has actually diversified market division, based upon its arrangement of large range of products to a great deal of consumers. Organization target client sectors can be divided into 3 classifications i.e. Transforming Reckitt Benckiser Case Study Help IT and Mobile Communications, Enterprise Consumer Electronics and Company Gadget services.


Transforming Reckitt Benckiser Case Study Help geographical division is based upon two criteria i.e. area and density. Org serves about 80 countries worldwide with its items supplied to Urban in addition to Rural areas of the country. The Enterprise is likewise growing its global existence and the company's flexibility in locating its plants encourages worldwide growth of Corp.


Enterprise produces items that can be utilized by both males and women. The target consumers for Corporation IT and mobile interaction products have an age range of 18-65 with bulk at a young or freshly wed life cycle phase. Apart from it, Org Customer Electronic devices are targeted to a consumer sector with an age range of 25-65.


The psychographic division of Transforming Reckitt Benckiser Case Study Solution s based upon the social class and the life style of the consumer. Corporation target customers on the basis of social class are generally upper middle, middle and working class customers, as Org offer products like mobile phone very little cheaper i.e. Motorola along with very little expensive i.e. Apple. It supplies quality items to middle level consumers at a slightly high rate than others targeting the very same sector.


Transforming Reckitt Benckiser Case Study Analysis majority target consumers have distinct behavioural qualities. They are drawn in towards Org because of its moderate costs with an extent of quality.

Quantitative analysis.

Sales of Transforming Reckitt Benckiser Case Study Solution has increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net revenue of.48 billion $ to 5.9 billion $. Digital media is the largest selling category of Corp with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Whereas, the core strength of the business is presently manufacturing however long gone are those days when great items were offering themselves. Kim has already begun to enhance the marketing activities of Enterprise and really quickly it will become one of its core strength like manufacturing if not better.



Corp runs styles, manufactures and offer a vast portfolio of customer electronics. It runs in a very competitive environment and has actually effectively placed itself as the maker of quality products. So, the response is yes.


As, said previously that Transforming Reckitt Benckiser Case Study Help runs in an extremely competitive environment, which suggests all the companies have comparable products. The answer for rarity is no.


Due to the nature of the industry, it is very easy for rivals to understand the functionality of the items and easily make their own models. Yes, Org is just behind IBM in registering brand-new patents yearly, however the benefit is extremely short term in this industry.


Chairman Lee has entirely turn-around Business, from going almost bankrupt throughout the Asian monetary crisis of 1997 to the leading 25 business worldwide. Absolutely yes there appertains company in the company and the outcomes promote themselves.

External Environmental Analysis

PESTLE Analysis


Being an international brand name spread nearly in every country worldwide, bulk of the environments like U.S.A., Europe, China and so on, are extremely conductive for its operations. Nevertheless, it deals with some political pressures in less industrialized nations where law and order situation is not good. Latin American, African and some Asian nations fall in this category, where political instability do have an impact on Transforming Reckitt Benckiser Case Study Analysis operations.


Buying power of consumers is vital for business like Company to be successful and grow. Emerging markets like India, middle-eastern nations and so on provide growth chances, whereas, due to recession even the clients of developed nations suffer terribly. For this reason it is very essential for the company to watch on the ongoing financial scenario of the country before entering the marketplace.


International business have to deal with numerous social and cultural concerns during its operations in a foreign nation. Enterprise has likewise dealt with many problems but have actually embraced to the regional environments of most of the nations remarkably well. It has tailored its products, practices, policies etc. accordingly in order to be successful.


With an annual expense of 2.4 billion dollars in Research study & Development, and with consistent ingenious product launches, Transforming Reckitt Benckiser Case Study Solution is one of the top ingenious companies of the world. With a clear mission to be ahead of the rest when it comes to technological improvements, Org has increased to the no 25 of the top successful business of the world.


Each country has their own laws and policies, being a multinational business Corporation have to strictly follow those laws in their jurisdictions. Failure to do so, will lead to major legal consequences. It has to study or employ a local law expert prior to starting its operations in a specific nation.


With the rising awareness amongst consumers about the ethical & ecological infractions of business, Organization needs to guarantee that it follows all the safety standards. Environmental damages, ethical misconducts are not appropriate and in some countries the consequences can be very serious. On the other hand it needs to do some Business Social Responsibility practices to show the locals that it appreciates their environment and individuals.

Porter's 5 Forces

Threat of Replacement

Hazard of replacement for Company's each item category is quite considerable. Running in an incredibly dynamic market lead the company to deal with a high threat of alternative. Elements for high threat of replacement for Transforming Reckitt Benckiser Case Study Analysis Mobile phone include the presence of high variety of providers and Market saturation in developed nations, that make the cost of changing for customers nearly absolutely no. Alternative dangers for Company visual screen lie in the changing life style of consumers. Consumers can switch to enjoying visuals at home towards outside activities. In addition to it, Org printing services products are threatened by the increasing attraction of clients towards cloud storage.

Competition Among Existing Firms:

The rivaly among Organization and its close competitors is extreme. The significant factor behind this is the method of market saturation in various number of product categories, forcing Corp to introduce more innovative features in existing products and new innovative items to preserve its development. The significant competitors for Transforming Reckitt Benckiser Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.

( Organization Sustainability Report, 2016) Provider's bargaining power for Corp is low as Org runs economies of scale and its orders are of prospective size and worth. Due to incapability of Transforming Reckitt Benckiser Case Study Solution to construct its own software, it has to outsource its software development to Google, which ends up being a potential provider of software for Business, resulting in high bargaining power of Google.

Bargaining Power of Purchasers:

Negotiating power of buyers for various number of product classifications of Org is extreme. Among the aspect resulting in the intense bargaining power is the availability of a great deal of competitors in almost each item category i.e. rivals of Org Smart device, with a very little differentiation. The high accessibility of providers of Smartphones with minimum distinction, make the changing cost for purchasers almost zero, thus increasing the bargaining power of buyers. Market saturation in the majority of the product classifications also make the bargaining power of buyers more extreme in for Transforming Reckitt Benckiser Case Study Help. In spite of igh bargaining power Corporation is rather capable of selling its items at a greater rate than much of its competitors, due to high-end quality item and a fair brand image.

Hazard of New Entrants:

Risk of new entrants for Corp is quite low. One of the significant element for low hazard of new entrants is the high competition in the market. The requirement of big amount of capital to go into in the market is also among the possible barrier to entry. Along with it, requirement of huge competence and research and development expenditures for survival in the market likewise make brand-new entrants hesitant to enter in the market. Market saturation is also among the barrier of entry in innovation market. High bargaining power of providers require the gamers in the industry to charge as low prices as possible and this can just be accomplished by production effectiveness. New companies, in majority cases, lack the production effectiveness, hence increasing the dangers for entryway in the innovation market.

Competitive Analysis

Corporation's high product diversification offers it differentiation from its competitors. Unlikely to its close rivals including Sony, Intel and Nokia, who focus majority on a single item classification with Sony focusing on customer electronics, Nokia on cell phones and Intel on chips, Transforming Reckitt Benckiser Case Study Analysis had a substantial R&D costs on all of its item classifications which enable the business to earn possible profits from sales of almost all of its items.

The company ranks first in 4 product classifications i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave, in regards to worldwide market share, among 8 different item categories. Venture was the global leader in manufacturing DRAM, SRAM and NAND flash chips. Organization incomes from chips was less than Intel however its earnings from chips was growing faster than Intel and has actually grown close to the revenue levels of Intel, as offered in the case Exhibit 2.

In addition to the chips Company mobile market was likewise thriving at a high rate than its rivals i.e. Motorola and Nokia. Business's cell phone's sales development was 51% as compare to Motorola with only 4% and Nokia with no sales development. The major reson behind Company's high development despite of greater prices than Nokia and Motorola was the company's high-end quality cell phones.

Corporation was also profiting from increasing market share of high end LCDs as given up case Exhibition 3. The significant reason, making the business allow to get the opportunity is its mass production at low expense. Sony was the most significant rival for Transforming Reckitt Benckiser Case Study Help in LCD market, however, it had also begun joint endeavor with Organization in 2003 for LCD manufacturing, lessening the competitors for Business.

Porter's Competitive Method

Low Cost Management method of porter is totally carried out by Business the method they attain economies of scale by enhancing their core proficiencies of production. They constantly bring something brand-new and innovative whether it's a service or an item.


Alternative Service 1

The Chief Marketing Officer (CMO) of Transforming Reckitt Benckiser Case Study Help would create a brand-new brand name image by targeting the more youthful generation of the particular nation. As, particularly mobile phones of Corporation are incredibly popular among the younger group.


1. It is the very best technique to construct Client Life time Value (CLV) by developing a long-lasting relationship with consumers. Develop commitment through delivering worth and reap the benefits for long-term, as research study has showed it is more affordable to retain existing clients than to draw in new ones.
2. Another pro of this alternative is that word of mouth spread quicker among more youthful individuals and which in turn will bring in new consumers for my items.


1. Old customers who were connected with Organization before might not like this brand-new image the business is attempting to depict.
2 It will sustain additional expenses to rearrange some items and it may not even bring success as the trends alter extremely quickly amongst the younger group.

Alternative option 2.

It would be done by setting up training workshops throughout which significance of marketing will be taught and numbers will be given. Marketing environment must be created internally first as real marketing begins inside the corporation.


1. Its pro will be that all the marketing approach fans will come out and likewise the opposite ones.


2. Its con can develop an extremely unhealthy environment in the office, as individuals frequently resist modification since they fear it.

Identify the very best option

Option is the finest as it plainly has more pros because when a Customer Life time Worth is built the business will profit from it till that consumer is alive and has buying power. Plus, our target customers are the younger generation which are bound to live longer than the present aging people. Nevertheless, Corporation's primary objective is to create commitment among its clients and make them repurchase it from them and even purchase their various products as well.

Execution Plan

• Targeting younger generation through social marketing, creating a link with them like Pepsi do with music. And set the expectations possible and sensible.
• A team including best marketing and sales specialists must be assemble, and both views ought to be taken into account before securing the resources required to carry out the strategy.
• Thorough communication of the plan must be done as it is very crucial for everybody to be on the same page to make it work.
• Tasks and timelines need to be construct and interacted appropriately to each person responsible.
• The supervisor ought to use a dashboard which shows the progress of all the jobs which have been done or about to be done and by whom.
• The manager should keep track of and keep a continuous look at the overall and specific performance.
Since any brand-new pattern or policy may come in due to which all the things already prepared have to be adjusted, • Everybody ought to be willing to adjust midway. It's better to have contingency plans currently prepared.
• At the end of the campaign the supervisor need to communicate the results and if successful need to celebrate with the team.


The M-net program revealed compelling analysis about the low and high development prospective areas and just how much advertising budget must be assigned appropriately. This modification the budget allocation of numerous supervisors and various nations were unhappy and argued but the analysis done by the program was precise and showed figures like North America and Russia growth possible merited a 35% allocation while they were receiving 45%. Whereas, China and Europe need to be getting 42% but were instead offered 31%. It actually assisted to fairly distribute the resources and catch more clients by spending more on ads on the high growth potential regions of the world.

Transforming Reckitt Benckiser Case Study Solution is a top 25 company worldwide now and prepares to get ahead of Sony who sits currently at no. 20. Its consistent investment in R&D and innovative practices have actually moved them to new heights but for them its' only the start and they want to be amongst the leading 3 brand names in the world. They completely turnaround from almost going bankrupt during the Asian Financial Crisis to a world prominent brand name, understood for quality and development. Their worth chain and their core proficiency their production capability, along-with global brand image structure have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With further growth in China and other emerging markets those numbers will just increase even more in the future. Their marketing efforts need to be directed towards more youthful group amidst the internal arguments about marketing and must produce Consumer Life time Value as it will not only provide benefits now however will continue to gain it till the consumer life time. As the cost of keeping the customer is much cheaper than drawing in a brand-new one.