Reckitt breaks convention - and comes out on top
Some of the biggest names in packaged-goods have been outshined in the past five years in sales and profit growth by a smaller company with a lesser-known name. As reported by AdAge’s Jack Neff (“How Reckitt Routed Rivals,”), unheralded Reckitt Benckiser has been beating the likes of its European neighbor L’Oreal, its Anglo-Dutch big brother Unilever and Cincinnati-based industry juggernaut Procter & Gamble Co. (P&G) on the top and bottom lines of late. And although Reckitt’s 17 “power brands,” including Lysol, Airwick, Finish, Mucinex, Veet and French’s mustard, may be growing, they’re a far cry from competitors’ multibillion-dollar offerings.
So what’s the strategy? In an industry where big competitors have been moving toward lower attrition rates and longer job tenures, Reckitt embraces its fluid and polyglot talent. It draws the 400 employees based in its U.S. headquarters from 30 countries. And it encourages even junior executives to switch countries and roles frequently to help foster an entrepreneurial mindset. It’s a flatter and less-hierarchical organization than many, where promotion comes based on merit, with no preset tenure required and an expectation of a transfer six to eight months after mastering a job.
Other lessons companies can learn from Reckitt Benckiser include:
TV advertising works - at least for now. Reckitt keeps spending more on advertising, particularly TV, and it keeps posting strong top-line growth.
Conflict beats forced consensus. “In that friction, one of those sparks that flies out will be a richer idea,” said Alexander Lacik, general manager, marketing, North American household products.
Role reversal helps. Reckitt executives cycle often between global roles with three-year-plus horizons and short-term, profit-and-loss-driven regional assignments, so they understand the people and purpose on both sides.
Recession doesn’t have to be a deal breaker. Through a substantial economic and industry downturn, Reckitt has raised spending, accelerated sales and gained share.
Looking for a church? Let the mystery worshipper guide you.
Department stores hire mystery shoppers. Restaurant chains bring in undercover diners to rate their food and service. Churches have begun following suit and showing an affinity for modern marketing research practices by enlisting mystery worshippers, according to Alexandra Alter’s October 10, 2008, article “The Mystery Worshipper,” in The Wall Street Journal.
Mystery worshippers pose as first-time churchgoers to evaluate everything from the cleanliness of the bathrooms to the strength of the sermon. One particular church’s laundry list of imperfections included: a water stain on the ceiling, a “stuffy odor” in the children’s area, a stray plastic bucket under the bathroom sink and a sullen greeter who failed to say good morning before the worship service.
Pastors say mystery worshippers offer insight into how newcomers judge churches. In an increasingly diverse and fluid religious landscape, churches competing for souls are turning to corporate marketing strategies such as focus groups, customer satisfaction surveys and product giveaways. Church leaders say they’re seeking new ways to assess their services and evaluate everything from the style of music to how comfortable the pews are as they court fickle churchgoers.
At least half a dozen consulting companies have introduced secret-church-shopper services in recent years. Churches have shown up eager and willing to pay top dollar for blunt advice on how they can improve both the size of their congregations and their offerings. The cost of mystery worshipping services can range from around $150 for a one-time visit to $1,500-$2,500 for multiple visits and a detailed report.
The rise of these services has been bolstered by the growth of the secret-shopper industry. So far, secret-shopper services mainly target Christian churches, where declining brand loyalty among worshippers has become an all-too-common occurrence. A 2008 survey by the Pew Forum on Religion and Public Life, which drew from interviews with more than 35,000 people, found that 44 percent of American adults have switched religious affiliations.
Some theologians warn that mystery-worshipper services will drive “spiritual consumerism.” Evaluating churches as if they were restaurants or hotels could encourage people to choose their church not according to its theology, but based on which one has the best lattés or day care, said Paul Metzger, professor of theology at Multnomah Biblical Seminary in Portland, Ore. Others say that church shopping has become necessary for churches seeking to compete in an increasingly mobile and consumer-oriented society.
Families that tech together, stay together
In addition to having 1.34 children, a dog and a white picket fence, the American nuclear family is also more likely to have cell phones, computers and a broadband connection compared to other not-married-with-children households, according to Pew Internet & American Life Project, a report by Pew Research Center, Washington, D.C.
Over 90 percent of married-with-children households have at least one cell phone, in addition to one computer, compared to 84 percent of all adults owning one cell phone, and 77 percent owning one computer. Fifty-eight percent of these nuclear families have two or more desktop or laptop computers, and 89 percent own multiple cell phones (47 percent own three or more).
While some fear that technology is ruining families, the survey found that couples use their phones to connect and coordinate their lives, especially if they have children at home. Spouses, parents and kids all manage to stay connected by cell phones and the Internet during the day when they are separated and are more likely to share moments with other family members online. At least a quarter of survey respondents said that their families today feel closer than their families when they were growing up, thanks to the Internet and cell phones. Sixty percent said that new technology has not affected family closeness.
Dallas telephone service provider AT&T also released survey results indicating that families are using SMS to communicate with each other more than ever before. Seventy-six percent of parents felt that their children were more likely to keep them abreast of their activities through text messaging, while 73 percent of parents said that their kids were more likely to respond to a text compared to other communication methods. Spouses and romantic partners were also found to be texting more, with 68 percent using SMS to send love notes to each other.