Distribution

Distribution channels can be defined as the chain/ set of of interdependent organizations that are involved in the process of making a product or service available for consumption, decisions regarding this are the most critical ones that a  management faces.The distribution channels of Dettol are explained below.

The distribution process of Dettol is as shown below:-






1.Manufacturer - Manufacturing plant of Dettol is located at Mumabi in Marwa Road. After the manufacturing process, the company sends it products to S.K.U and its C & F agents all over India to distribute it to their distributors.

2.SKU or C&F agents -  They act as the moderators between distributors and manufacturers. The Company itself has established certain ware house at distinct locations where they keep their products and then the SKU distribute it to the market. It also does the function of observing the market and gives response about the demand from the distributors end.

3. Distributor- This is the most essential link between retailer and manufacturer.

 Distributors of Dettol are: PK agencies.

 Profit Margin ranges between 3-5 %. 

Distributors work according to individual ACP ( Area Chart Plan ), this is decided beforehand by the company and by the distributor sales personnel .

 4. Retailer - Retailers are the mediums that are in direct interaction with the end customers. They represent the last point in the distribution channel. In Dettol distribution chain their profit margin varies between 7 - 8%.

5.Customers- The customers purchase their Dettol products from the nearest retailer or pharmacist.

Distributors & Sub distributors

In the case of Dettol, The marketing channels present are that of distributors & sub distributors.The company sells its products to its appointed distributors and from there the sub distributors are the ones responsible for the distribution in their of pre – defined geographical areas. The distributors and Retailers take the products from there.

Direct Retailing

The company also has the provision of providing direct delivery to certain bulk buying customers like institutional buyers.  Every available channel is utilized for maximum penetration in terms of distribution and coverage of all top all supermarkets, general stores, kiraana stores and pharmacies. The company also has put in place a Rural Development Force, their main objective is covering the rural areas.

Online Retailing

With the help of online  shopping sites, Dettol products can now be ordered online as well.

Pricing

The AMA defines Price as the ratio of the money needed to acquire a given good or service.Cost on the other hand is the money expended to produce and market its product and service.Sellers sell at a Price and Buyers buy at a cost.

                                                 

POSSIBLE CONSUMER REFERENCE PRICES - Per Kotler

1	Fair Price-what the product should cost
2	Typical Price
3	Last Price Paid
4	Upper bound price-reservation price / what consumers would pay
5	Lower bound price- lower thresh hold price / the least consumers would pay
6	Competitor Prices
7	Expected future price
8	Usual discounted price

Purchase decisions are based on the relative worth of how the consumers perceive prices. Customers have a lower price threshold beyond which the prices signal inferior quality and a higher threshold  price above which prices are prohibitive and seen as not worth the money.

 

ANTISEPTIC LIQUID MARKET

PRICING FOR DETTOL AND SAVLON IN DIFFERENT SIZES

	DETTOL(Rs/-)	SAVLON(Rs/-)
50ML	13.74	12.5
100ML	21.02	19.5
200ML	33	42
500ML	74.79	83

There are two chemicals that are used for the making of Dettol,i.e Chloroxylenol  and Terpineol. These chemicals are cheap, however, despite the low cost of these chemicals, Dettol is comparatively priced at a high rate.

Due to the brand registration, customers are less price sensitive to Dettol.They do not readily notice the higher prices. Per a pharmacist, I learnt that Dettol increases the price in very little margins on a regular basis. Even if it increases its price only by 50 paise or 1 piase, it generates substantial profits for the company.Customers do not tend to change their buying habits. The high price is justified and is relatively considered to be a small part of the total cost of operating, and servicing the product over its life time.

Dettol Antiseptic Liquid’s Demand does not show many changes with a small change in Price, also it is a small proportion of the total expenditure of an household, from the economics point of view. An example of Inelastic Demand is shown below:

                                

                     

                                               

The various price adaptation strategies followed by Dettol over the years are:

1.Geographical Pricing.

Its a  pricing strategy where the seller must consider the cost of shipping. RB utilizes a uniform and widespread service and hence quote the same delivery price (i.e the same delivering price quoted to all distributors despite their location) for Dettol Antiseptic Liquid.

2.Price Discounts & Allowances.

In case of Hospitals & Clinics, where Dettol is bought in large volumes a Quantity, Price Discount may be offered. Certain Pharmacist may avail the discount too.

3.Differentiated Pricing

 

Customer Segment Pricing-Doctors and other medical professionals could get the product at a lower price.

Sales Management

SALES FUNNEL

The diagram represents the conversion of prospective customers to converted sales and the relationship management for repeat purchases. The largest ring is the target market .And then it narrows down as the true leads emerge. These leads are then worked on, some staying put as the funnel narrows,turning into sales.

Fast Moving Consumer GoodS (FMCG), as the name suggests, are products that are sold quickly and are relatively low on cost. Though the profit on sale made on FMCG products is comparatively small, they generally sell in large quantities, hence the cumulative profit on such products is substantial.

Sales management is that part of the  business discipline which focuses on the practical application of sales techniques and the management of the firm's sales operations. It is an indispensably important business function as net sales and the resulting profit are what drive most commercial business. These are also typically the goals and performance indicators of sales management for future projections.

Sales manager is the title of the person who is in charge of sales management. The role typically involves functions of sales planning, human resources, talent development and control of resources.

In an FMCG product like Dettol, the importance of direct selling is comparatively lesser when compared to the product category of say an Aquaguard. The general buying pattern is when a customer picks the product from the shelf/ display when the requirement arises. Or, purchasing of Dettol Antiseptic Liquid from the closest pharmacy. Sales for Dettol is a build up of the following functions:

-  High volumes

-  Low contribution margins

-  Extensive distribution networks

 

Analyzing Business Markets and analysing consumer markets.

B2C & B2B Marketing

 

B2C stands for 'Business to Consumer' marketing.

B2C Marketing refers to the business that provides goods or services to the consumer.

On the other hand, Business-to-business (B2B) describes commerce transactions that take place between businesses, for instance, the transactions between a manufacturer and a wholesaler, or that between a wholesaler and a retailer, come under the gamut of B2B.

Marketing Differences:

There is a difference between marketing to a business as against marketing to a consumer.

When marketing to a B2B, the businesses work hard to streamline the buying process so as to save time and money. This explains why a B2B purchase is based highly on logic.
It is generally observed that the cost of a sale for the business-to-business market is comparatively expensive and typically higher than the B2C market. The easiest way to explain this is that a business-to-business transaction often takes a number of rational factors in consideration, before reaching the decision.
  Marketing to B2BWhen marketing to a B2B it is best to focus on the logic of the product. This is done by highlighting the features of the product. There is little to no personal emotion involved while making this purchase decision. The B2B market looks for knowledge before making their decision. The most effective marketing message would be on focusing how the product/service saves time, money/resources.

Marketing to B2CWhen marketing to a consumer the focus is solely on the benefits of the product. In the case of Dettol, the focus is on the benefits derived from the product.i.e 100% germ protection and a healthier family. The decision, thus in the case of the consumers is more emotionally skewed than based on logic as is seen in B2B.

The business-to-consumer market make purchases based more on the emotions.

Sustainable Marketing

Sustainability at business level:



 A sustainable business perspective takes into account not only profits and returns on investment but also focuses on how business operations can affect the environment, natural resources, and eventually our future generations. Sustainability at the business level is about taking steps, however small, such as recycling and conserving nonrenewable material and energy etc. alongside managing operations to reduce the negative environmental impact; all this weaved into the strategic perspective of the Business for its long term sustainability.

Reckitt Benckiser comes up with the sustainability report of the company just to sensitize its consumers and the industry on the various projects and measures they undertake for sustainability. Their focus is on four main areas:
  - Lifecycle carbon management
  - Sustainable operational excellence
  - Partnership with 'save the children'
 
Also, in Nigeria, Dettol, chose to take a different path to interact with its target market. Global Handwashing Day (GHD), a global campaign, observed on October 15 every year,  is one such platforms where Dettol, the world’s number one antiseptic soap leveraged maximally,  to help raise a hygiene-conscious generation in Nigeria.
Many other similar campaigns launched by Dettol include 'Good Health is in Our Hands'; 'New Mom Programme' and 'Health on Wheel campaigns'.

While most other brands adopt a one-off strategy to market its product , many others,like Dettol, queue up with a more sustainable approach and create a platform to engage with the target market on a regular basis, by educating them in their environment and on their terms!




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Branding - Dettol

BRANDING THE BRAND DETTOL

                     Dettol is India’s one of the most trusted brands.

Dettol Antiseptic Liquid has certain strong, distinct associations. First being its trademark smell. In ‘Planning of Power Advertising’, Anand Halve mentions, “It is a safe bet that you will be able to tell the smell of Dettol liquid on a cut with the reassuring tingling sensation which tells you it has begun to work. Savlon on the other does not have the same burning sensation, (and is) very often seen by consumers as ‘ineffective’.

The second characteristic peculiar to Dettol antiseptic Liquid is its amber gold color.

The third is the ‘clouding’ effect that it creates when it is added to water.

 Dettol’s packaging is also very distinct in its own way. The green & white colours are generally associated with hospitals. The sword on the pack, is a symbol that stands for fighting germs and infection. All these are synonymous with the brand and have been used time and again in Dettol's  advertising.

Brand Equity

Consumers now see Dettol as an ‘expert’, which guarantees protection from germs. The brand’s versatility also stems from multiple uses of its antiseptic liquid that offers protection in many different ways. 

Hence, the brand came up with the fitting and timeless tagline, that says - Be 100% Sure.

Over the years brand Dettol has extended and has made its presence felt in a variety of

product categories. While Antiseptic Liquid was the original category where the brand was born and where Reckitt Benckiser India Ltd. still continues to command a dominant market share of 80%, its revenue growth, though is substantially driven by its presence in a number of other product categories, like that of toilet soaps (or bar soaps), Liquid handwash, Body wash and Shaving Cream. Each of these markets are at their varying stages in life cycle, so while in one market the brand has the responsibility to drive the overall market growth, in certain other markets, the brand just focuses on garnering market share. Though Fundamental to all these categories was the existence of the basic consumer requirement for germ protection.

 

Antiseptic Liquid by Dettol is a well-penetrated market, given its extensive use in first aid from homes to hospitals, and is sold in over 20 lakh outlets in the country today . Over the years, the product has also extended itself into other disinfection uses like additon to to bathing water, disinfecting baby nappies, usage while mopping etc. and this secondary usage contributes more volumes of Dettol Antiseptic, than the primary first aid usage it was initially focused on.

Brand Resonance

 

 A cult brand such as Dettol benefits any marketer in many ways including : consumer's devotion, repeat usage and advocacy of the brand by loyal users that lend to the charm of owning a cult brand.Incase of Dettol, one can easily say that from a brand initially used for only first aid purposes , Dettol today, has successfully evolved into a brand that has a place in every home for various disinfectant functions.