interestrateripoff Posted July 27, 2010 Share Posted July 27, 2010 http://www.guardian.co.uk/business/2010/jul/26/reckitt-benckiser-sales-drop Reckitt Benckiser, the company behind household brands Cillit Bang and Vanish, today reported its first quarter-on-quarter sales decline in Europe as rival products muscled in under the kitchen sink.Chief executive Bart Becht said sales growth had evaporated in this important region, which generates more than 40% of sales: "Six months ago we were seeing 4% growth in our markets in Europe, now it is below 1% ... In Europe there is now virtually no market growth." Reckitt said demand for laundry products such as Vanish and Woolite had waned in the second quarter as new products were launched by rival Procter & Gamble (P&G). That was on the back of flat sales of cold remedies such as Nurofen and Strepsils in the first three months of the year as fewer bugs did the winter rounds. As a result, like-for-like sales in Europe were down 1% in the six months to 30 June. Total sales in the region were also down 1% at £1.75bn. Becht said the company had broadly held its market share in Europe but had ceded ground in the fabric care category as Vanish was pitted against P&G's new Actilift stain remover. To win customers back, the group is ploughing more cash into advertising. So reducing prices to win customers back is a bad idea then? Far better to blow more money on ads and then blame the ad firms for a poor marketing campaign when sales don't rebound? Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted July 27, 2010 Share Posted July 27, 2010 http://www.guardian....iser-sales-drop So reducing prices to win customers back is a bad idea then? Far better to blow more money on ads and then blame the ad firms for a poor marketing campaign when sales don't rebound? wait for new improved products....thats why they need to spend....they have the same products, but a repositioning of a brand costs money to expose it. Quote Link to comment Share on other sites More sharing options...
kilroy Posted July 27, 2010 Share Posted July 27, 2010 http://www.guardian.co.uk/business/2010/jul/26/reckitt-benckiser-sales-drop So reducing prices to win customers back is a bad idea then? Far better to blow more money on ads and then blame the ad firms for a poor marketing campaign when sales don't rebound? The most famous brands you see around today are the ones which either maintained or increased advertising budgets during hte great depression. Quote Link to comment Share on other sites More sharing options...
R K Posted July 27, 2010 Share Posted July 27, 2010 Vanishing recovereh? Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted July 27, 2010 Share Posted July 27, 2010 Vanishing recovereh? finished recovereh Quote Link to comment Share on other sites More sharing options...
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