"Brands are our lifeblood," Licht, a Dane who took over as CEO last year, recently told Fortune at Reckitt's headquarters in Slough, a hamlet near London's Heathrow airport. "What is a power brand? It's when you have a very large brand that enjoys very high levels of trust." This statement encapsulates Reckitt's strategic shift towards concentrating on brands that not only retain consumer trust but also promise higher profit margins and significant growth potential in new markets.
Such brands offer higher profit margins at a time when some categories have become so crowded that companies have lost a lot of their pricing power. But a power brand is also one that still has a lot of runway left, and can grow in new markets. This perspective highlights the importance of selecting and nurturing brands that possess both profitability and future growth opportunities, which ultimately allows Reckitt to navigate a competitive landscape.
#consumer-packaged-goods #brand-management #market-strategy #reckitt-benckiser #business-transformation
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