𝟯 𝗦𝗹𝗶𝗱𝗲𝘀 𝗛𝗶𝗴𝗵-𝗟𝗲𝘃𝗲𝗹 𝗣𝗹𝗮𝘆𝗯𝗼𝗼𝗸 𝗳𝗿𝗼𝗺 𝗥𝗲𝗰𝗸𝗶𝘁𝘁 𝗮𝗯𝗼𝘂𝘁 𝘁𝗵𝗲𝗶𝗿 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝘂𝗽𝗱𝗮𝘁𝗲.
Reckitt's recent strategy update focuses on boosting operational efficiency, innovation, and core category strength. Their "Fuel for Growth" program aims to generate cost savings and reinvest in high-growth areas and key brands. I browsed through their recent strategy update, and summarize dit in 3 slides here.
💡Reckitt is streamlining its organization by moving from a five-layer global structure to a more agile three-layer structure (Global, Area, Market). I can say that they're going for faster decision-making and greater operational efficiency.
💡I noticed that they're in the middle of a strategic pivot towards brands and segments that offer robust growth potential. Reckitt is honing in on its core portfolio of high-growth and high-margin "Powerbrands," ensuring a long-term runway for growth, an attractive earnings model, and enduring competitive advantages.
They're also maintaining its non-core segments (Essential Home and Mead Johnson Nutrition) which, while not central to the core strategy, provide stable cash flows and attractive margins, supporting overall financial health.
💡A team of experienced leaders will drive the execution of this new strategy: Ryan Dullea (Category), Jérôme Lemaire (North America), Eric Gilliot (Europe), and Nitish Kapoor (Emerging Markets). Their collective experience and regional expertise are expected to ensure the strategy's effective implementation across all key markets.
💡They go bold on digital, as usual. Reckitt's strategy emphasizes the importance of leveraging digital channels for growth. The "Execution Excellence" pillar of their playbook focuses on achieving excellence at both the shelf and screen, indicating a strong emphasis on digital retail and e-commerce optimization.
Digital investments are geared towards enhancing platform innovation and brand building, with a focus on fewer, bigger, and better propositions that break through in both digital and traditional retail environments.
Reckitt’s commitment to becoming "Consumer Obsessed" indicates significant investments in digital media to gain deeper consumer insights and to evolve category needs effectively. This is aligned with their strategy to drive household penetration and category creation, particularly through online channels.
I believe that the new strategy, supported by a simplified organizational structure and a focus on core high-growth brands, positions the company well for sustainable growth. The leadership team, with their regional expertise, will be critical in driving this strategy forward. Best of luck Team Reckitt! 👍
𝗧𝗼 𝗮𝗰𝗰𝗲𝘀𝘀 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 ecommert® 𝗮𝗻𝗱 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿. 👇
#management #leadership #CPG #FMCG #growth #strategy
#ecommert #ecommerce #retailmedia #artificialintelligence #ai
love it! so much ad spend is being push into socials which don’t always do the results you expect. Strong CPG good ads in relevant retail locations have THE best conversion rates - i’ll add your book recommendation to our company read list!