Adspend key to Reckitt growth

22 November 2010

LONDON: Reckitt Benckiser, the household goods group, will continue to spend more on advertising than most of its rivals, having enjoyed substantial success with this approach during the downturn.

The owner of Scholl and Durex, acquired via the recent takeover of SSL, has a long term strategy of concentrating expenditure behind a core selection of "power brands" boasting the greatest potential.

"In 2009, the most challenging market conditions yet, we raised marketing spend by 8%," Camillo Pane, Reckitt's general manager, said at a recent conference.

"Marketing investment has always been high for the company, in the 12% to 13% of revenue range, far higher than most companies, and has consequently driven sharp growth for the company."

Such a model is supplemented by streamlined R&D and management processes, alongside several other key corporate characteristics.

"[These include] speed of execution, obsession for our brands, being truly global, an entrepreneurial company with the right people, and socially responsible," said Pane.

Pane suggested the Air Wick Freshmatic exemplified the organisation's guiding principles in action.

"This launched in just eight months from concept to development in the UK and then rolled out to 60 markets within a year," he said.

"We wanted to be first to market, and it now drives 15% of global air freshening sales."

Data sourced from Brand Republic; additional content by Warc staff