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7/29/2019 rindetergentcaseanalysisgroup10-111222100121-phpapp02

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RIN Detergent To Position or

RepositionPGHR 09 - Group 10


2/20

2

Agenda

The Situation1

Alternatives in Hand2

Evaluating the Alternatives in Hand3

What we feel4


3/20

3

Things to be further evaluated first before zeroing downon a strategy

Issues The Idea

Are Laundry soaps

also used for Dish-

washing

Possible that laundry soaps are also used for dishwashing

Promotion of RIN as being better than laundry soaps might have

added only new dish-washers as customers leading to greater

sales in 1987-88

Does the

consumer survey

actually serve the

purpose

Consumer survey gives results for Sep 88 Jan 89, while prices

had been raised earlier in August

Possibility that consumers have stopped using RIN as fabric

washer due to price increase

Why hasnt any

company tried toenter the NSD bar

market during the

last 5 years

Why havent other players entered the market during the last 5

years?

What can be the possible reasons?

Is their an unorganized market in Pakistan? Its strength?


4/20

4

Alternatives in Hand

Focus on primary as well as secondary function

Let us gain from whichever segment sales come

from

RIN as a Fabricwasher

RIN as a Fabric+ Dish washer

RIN as a Dishwasher

1

2

3

The Idea

The Idea

Focus on the primary function Let us maintain our

brands focus

Focus on the secondary function Let us target the

segment that is actually generating sales


5/20

5

Agenda

The Situation1



What we feel4


6/20

6

Alternative 1 Re-positioning RIN as a product that can be

used both as a fabric as well as dish washer

Premise

Will uniquely position and clearly differentiate RIN from

competing products, which are either fabric washers or dish

washers

Will be able to cater to its entire customer base, the intended

as well as the unintended, while not sacrificing any of them

Media Communication Campaign

A well-known Pakistani cricket all-rounder can be used to

endorseRIN is like me

Considering the target audience as housewives, a well-

known female personality who is involved in several activities

can also be used. Example Hema Malini is India

Demonstrations, free samples and plays in urban areas;

haats, mandis and melas in rural areas

RIN as a Fabric + Dish washer Alternative 1



RIN as a Dishwasher

1

2

3


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RIN as a Dishwasher

1

2

3

Alternative 1 Re-positioning RIN as a product that can be

used both as a fabric as well as dish washer

Distribution Network

Retailers to be sensitivized about the new product

Giving them incentives to shelve RIN separately, using it asthe dividing section between fabric washers and dish

washers

Customer will easily be able to identify RIN

Financial Implications

No tinkering with the product, only with the packaging Additional expenditure would be only in the form of

advertisements and sales promotional campaigns


8/208




RIN as a Dishwasher

1

2

3

Alternative 2 RIN in two separate brand variants One, as a

washing powder and; Second, as a dish washer

Premise

Lever will have a clear focus on the two target segments

both segments can be targeted properly

The entire market (possible usage) for RIN can be tapped

Customers will not be left confused as to What is RIN

actually meant for?

Product

Both products should be completely different in look and feel Fabric Washer Non-blue color, new fragrance

Dish Washer Blue (but separate from competitors), 33%

reduction in variable cost


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RIN as a Dishwasher

1

2

3




Fabric Washer

More focus on new features; more focus on outcomesthrough a well-known female personality

More focus on rural Pakistan as well; haats, melas etc

Dish Washer

Features of the new product

Advertisements targeting both hard soaps and other bars


Retailers to be sensitivized about the two products

Shelving of the two variants in their respective categories;

Incentives for positioning RIN as the dividing line


10/2010




RIN as a Dishwasher

1

2

3




Additional costs to be borne on new product and packaging

More retailer incentives, for both variants Heavy increase in expenditure in the form of advertisements

and sales promotional campaigns


11/2011

RIN as a Fabric washer



RIN as a Dishwasher

1

2

3

RIN as a pure Fabric washer taking initiatives to further

penetrate the fabric wash market in Pakistan

Premise

RIN is the only NSD bar in the market; hence it makes sense

to further penetrate the lucrative market as a unique product

Secondary sales in the form of dish washing will continue to

come by in any case

Product

Non-blue in color, make it different from other dish-washing

bars in Pakistan

Packaging should however have a tinge of blue, but largely

non-blue

Completely new fragrance we are in a sense re-launching

the product


12/2012




RIN as a Dishwasher

1

2

3




More focus on new features; more focus on outcomes

through a well-known female personality

Even the same mid-aged movie star can be used along with

a younger movie star

Customers will clearly get the idea of old vs new

Otherwise almost similar promotional techniques

More focus on rural Pakistan as well; haats, melas etc


Identify the margins earned by retailers give them the

maximum among all fabric washing products

Retailers will ensure shelving of RIN properly


13/2013




RIN as a Dishwasher

1

2

3




Additional costs on new product development, new

packaging

Continuing expenditure on advertisement and trade

promotion this time for a new product


14/2014

RIN as a Dish washer



RIN as a Dishwasher

1

2

3

RIN as a pure Dish washer re-launching RIN as a dish

washer and not as fabric washer

Premise

Targeting the actual customer, instead of the intended one

Five years of promotional activities does not seem to haveborne much fruit

The customer will be able to identify better with their RIN,

i.e. the way they have always perceived RIN as

Product

Blue in color (but a different than competitors), similar

packaging but with minor changes

Elimination of special fabric wash ingredients; 33% reduction

in variable cost


15/2015

RIN as a Dish washer



RIN as a Dishwasher

1

2

3

RIN as a pure Dish washer re-launching RIN as a dish

washer and not as fabric washer


Focus on dish washing qualities; RIN as their preferred dish-

washer


Identify the margins earned by retailers give them the

maximum among all dish washing products

Retailers will ensure shelving of RIN properly


33% lesser variable cost; Additional costs on new packaging

Initial expenditure on advertisement and trade promotion

this time for a new theme


16/2016

Agenda

The Situation1



What we feel4


17/2017

What we feel

Let us target the entire customer segment

Plant is already underutilized

Also, positioning only as a fabric washer hasnt

yielded desired outcomes



RIN as a Dishwasher

1

2

3

The IdeaPriority RationalePriority

Looks at only a part of the entire market

Positioning only as a fabric washer hasnt yielded

desired outcomes till now

Changes in product features and subsequent

promotion can have desired outcomes

Customers might be left confused what RINactually stands for?

Complete U-turn might leave RIN in no mans land

Also, dish-washing market is smaller and more

competitive than fabric washing market


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Alternative 1 vis. a vis. other possible strategies

1

2

3

Alternative Premise AdditionalExpenditure Time PeriodInvolved

Comparative

Chances ofIncrease in sales

F+D Alternative

1 vs. Alternative 2

Similar Less as focus

on a single

product

Less as no

product

tinkering in

alternative 1

Similar

F+D Alternative

1 vs. RIN as a

Fabric washer

Strong Larger Less asproduct

tinkering in

second case

Very High

F+D Alternative

1 vs. RIN as aDish washer

Very

Strong

Similar

promotion

Less product

cost in case 2

Less as

product

tinkering insecond case

Very High

Positives against alternatives Negatives against alternatives


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Conclusion

As such, despite increase in advertisement and sales promotion expenditure initially, we

believe positioning RIN as a fabric + dish washer would be the best strategy

Increase in sales is almost certain

The two-in-one concept will definitely appeal to the middle, lower middle and lower-

income class population of Pakistan

Increasing sales by targeting all customer segments reduces the per unit production

costs as RIN production plant remains highly underutilized


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Thank You

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