Reckitt Benckiser’s 13th year of constant growth is driven by fast incremental innovation and power-brand expansion.
Air Wick, Nurofen, Strepsils, Lysol, Dettol, Durex and Cillit Bang are just some of the many powerbrands in the Reckitt Benckiser stable. A dynamic but extremely focused company, this Anglo-Dutch operation has broken the mould in FMCG with consistent growth and margin increase for the past decade – year after year after year: Over the past 12 years revenues have doubled and its market capitalization has quadrupled. What some find surprising is that all this is achieved through fast incremental innovation rather than major platform changes. Where Reckitt Benckiser excels is in introducing small product or technology improvements very quickly into key markets on a regular basis. As such it is constantly at the fore in its categories and therefore commands premium pricing globally.
Reckitt Benckiser is master of introducing a host of new formulations and packaging changes into multiple power-markets, quickly identifying the potential winners and scaling them up for fast global distribution while simultaneously squeezing the manufacturing costs to enhance margins. This effort is applied onto the proven successes with underperforming launches rapidly killed and pulled from test markets. Brands like Finish and Vanish are recognized global market leaders. Driving this performance across a portfolio is a high-performance culture of incessant innovation. From the CEO down, everyone is focused on and significantly financially rewarded on innovation that drives growth. As long as there is evidence of customer-visible benefit that will create value, new ideas can flow rapidly through the innovation engine that the company is continuously tweaking to make everything faster, bigger and better.