Why has Reckitt's Dettol hand sanitizer sales volume dropped by 30% in the past quarter?

Introduction

Dettol hand sanitizer's 30% sales volume drop in the past quarter is a significant concern that requires immediate attention and a thorough root cause analysis. To address this issue, I'll employ a systematic approach to identify, validate, and resolve the underlying factors contributing to this decline. My analysis will cover various aspects, including market dynamics, product performance, user behavior, and potential internal and external influences.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this 30% drop been compared to the same quarter last year?

Why it matters: Seasonal variations can significantly impact sanitizer sales. Expected answer: Yes, it's been compared to the same quarter last year. Impact on approach: If it's not seasonal, we'll focus more on recent changes or market shifts.

• Considering the competitive landscape, I'm curious about market share changes. Have our competitors experienced similar declines, or have they gained market share?

Why it matters: This helps distinguish between industry-wide trends and Dettol-specific issues. Expected answer: Competitors have maintained or slightly increased their market share. Impact on approach: If competitors are growing, we'll need to focus more on Dettol's unique challenges.

• Given the nature of hand sanitizers, I'm wondering about any changes in public health guidelines. Have there been any significant updates to hand hygiene recommendations from health authorities?

Why it matters: Public health guidance can dramatically influence consumer behavior in this category. Expected answer: No major changes in public health guidelines. Impact on approach: If guidelines haven't changed, we'll focus more on product or marketing factors.

• Thinking about product quality, I'm concerned about potential issues. Have there been any changes in product formulation or packaging, or any increase in customer complaints?

Why it matters: Product changes or quality issues could directly impact sales. Expected answer: No significant changes or increase in complaints. Impact on approach: If there are no product issues, we'll need to look more closely at marketing and distribution factors.