
quest for new frontiers Integrative growth is becoming increasingly important for companies. The major challenge FMCG players today face is rising commodity prices, and gaining control over manufacturing is critical from Reckitt Benckiser’s perspective as well. According to Sethi, one of the key focus areas for the company over the next five years would be “to strengthen its position on the manufacturing side.”
Forward integration is not viewed as an option by the company, as it wants to retain focus on its core competency of brand building and relies largely on its distribution network, which has, so far, worked wonders for Reckitt. States Gautam Suri, Brand Manager, Reckitt Benckiser India Ltd., “Our marketing strategy has always focused around uplifting the brand. That’s the reason for each of our brands, our distribution channel has been totally different. Unlike other FMCGs, we don’t want to promote our company’s name, but rather the products that we offer.”
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Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
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