Reckitt Benckiser adjusts its product portfolio

Reckitt Benckiser's product portfolio includes brands for the home (Vanish, Calgon, Woolite), for personal health (Scholl, Nurofen, Strepsils) and for hygiene (Dettol, Harpic, Lysol). Until recently, RB also had some food brands in its product pantry.

Now it has sold those food brands to McCormick, a major spice company based in the US. This is a strategic move, not just to raise money for debt reduction following the acquisition of Mead Johnson Nutrition. Strategically, food brands like French's condiments and Frank's RedHot sauce are not core to RB's product portfolio, given the move toward health and hygiene. Also, these food brands contribute less than 5% of RB's revenues.

Interestingly, RB had several bidders trying to buy its food brands, partly because brands like French's are strong in specific areas (US and Canada) but also to keep these brands out of the hands of competitors. French's has a devoted customer following in Canada because it makes its ketchup there, giving the brand a strong local connection.

This post updates coverage of product-mix and product-line decisions in Chapter 6 of Essential Guide to Marketing Planning.

Researching most trusted brands

Every year, Reader's Digest works with marketing researchers to survey consumers in various parts of the world about the brands they most trust.

In its introduction to the 2016 report about trusted brands in Asia, Reader's Digest wrote:

A trusted brand enjoys international appeal, yet at the same time upholds a strong local connection. It has individual relevance for all its consumers, just about anywhere and in any culture.

Conducting research about trusted brands in Canada, Reader's Digest reported the top brands within product categories, with some winners being Canadian brands and some global brands, such as:

• Most trusted cereal: Kellogg's (global brand)
• Most trusted smartphone: Apple (global brand)
• Most trusted pharmacy: Shoppers Drug Mart (Canadian brand)

In New Zealand, Reader's Digest reported the top brands within product categories, again a mix of global and national brands, such as:

• Most trusted bank: Kiwi Bank (New Zealand brand)
• Most trusted car rental firm: Hertz (global brand)
• Most trusted car brand: Toyota (global brand)