RIN Detergent – To Position or Reposition

Management Dilemma: To Position or Reposition

• LBPL a subsidiary of Lever Brothers International produced and marketed a variety of consumer products in Pakistan.

• Product line consisted of items shampoos, skin and shaving creams, edible oils, margarine, toilet soaps, scourers, and laundry detergents in powder and solid bar forms.

• RIN was a solid, blue NSD bar introduced in 1984.

• Increase in 1988 market share compared to 1987– The laundry soap - 5%– NSD detergent - 12%– NSD bar - 29%

• Dilemma– Suspicion that RIN was primarily being used for dish washing

Case Snapshot

• Several consumer promotion schemes were used for RIN but none of them was successful

– A Rs 0.50 price-off campaign – 1984

– Discount of Rs 1.00 on two RIN bars on submitting newspaper coupons – 1985

– Promotional shows and demonstrations

• Post 1985 no consumer promotion scheme given.

Consumer Promotions

• Trade promotion schemes were also used for RIN but the sales picked only till the time the promotions lasted (40-60% more orders)

– e.g. One free bar for every dozen bars– Lasted 2-3 weeks, – Offered 2-3 times in a year

Trade Promotions

• Positioning is a marketing concept relating to a process of creating an image of the product in the minds of the consumer or in other words create a niche market for itself.

• Repositioning is changing the position of the product in the market/consumer’s mind– E.g. Dairy Milk repositioning to Adults

Positioning vs Repositioning

• Positioning is a marketing concept relating to a process of creating an image of the product in the minds of the consumer or in other words create a niche market for itself.

• Repositioning is changing the position of the product in the market/consumer’s mind– E.g. Dairy Milk repositioning to Adults

Positioning vs Repositioning

Option Details Focus Assumptions Cost Implications Priority Verdict

Option 1 Rin as Fabric + Dishwasher

Both usage targeted

Will uniquely re-position and differentiate RIN from competing products, Caters full customer base

-Least-Only advt, and packaging

4

Option 2 Rin as Fabric Washer Only

Maintain Current Brand Focus

Reinforces current Brand position, Also Rin is the only NSD bar in the market

Expense on new packg and advt.

1

Option 3 Rin as DishWasher Only

Segment that is actually generating sales

Targets the actual customer, Brand to be repositioned

33% lesser variable cost.Expense on packg, advt, trade promotions

3

Option 4 Option 2 + Option 3

Both usage targeted with separate product

Competitive products for entire customer base

Doubles the cost of development, packaging, advt. and promotion

2

Positioning vs Repositioning Alternatives