Rin Detergent: To Positon OR Reposition

RIN DETERGENT
TO POSITON
OR
REPOSITION
Aditi Rathor (PGPBL0136)

Karthika Warrier (PGPBL0146)
Nidhi Nair (PGPBL0149)
Pranav Rajmohan (PGPBL0151)
Priyanka Vyas (PGPBL0153)
INDEX
S.NO. CONTENTS SLIDE NO
1 PROBLEM STATEMENT
2 DECISION
3 CASE NOTES
4 ALTERNATE SOLUTIONS
5 FINANCIAL ANALYSIS
6 FUTURE IMPLICATIONS
Problem Statement
■ What was Mustafa’s problem?
 Rin bar is being used as Dish wash bar instead of the intended use as a fabric wash
 Mustafa has to decide whether to reposition the brand so that the promotional and
advertisements efforts are relevant to the customer.
■ What would you do?

 To maintain the current brand focus on RIN as a fabric bar (it is only NSD bar in
the market)
 strengthen the position of RIN in the fabric bar segment, by changing the color
of the bar and packaging - to yellow of white
 Better marketing strategy to educate the customer
 Launch a new product DIN, a dish wash bar (blue) to utilize the existing
customer base of Rin (80% of Rin was used as dish wash bar)
 Create a promotional strategy to introduce DIN in the market
Decision
 Continue to Position RIN as a fabric wash bar
 Create a new product DIN as a dish wash bar
 Sell RIN + DIN as a twin pack for the first 3 months as a promotional activity, introducing DIN and
educating the consumer.
 The twin pack would contain the two soaps of 125 gms each.
 The twin pack will be priced at Rs 3.25( RIN's Selling price of 1988) , DIN being sold as a free
product.
 The Profits from RIN will be utilized to provide DIN free for the first 3 months
 Post 3 months, RIN and DIN to be sold separately
 A single advertising campaign will be run for both RIN and DIN emphasizing their respective
usages
 The twin bar would be strategically positioned between Fabric and Dishwash sections.
 A part of the existing advertising cost would be used for giving benefits to the retailers and
distributors
 Advertising mix would be changed with respect to TV viewership, News paper subscribers etc and
on basis of language, to suit the Pakistani market .
Case Notes
Lever Brothers Pakistan Ltd
 Lever Brothers Pakistan Limited is a subsidiary of Lever brothers International
--> Lever brothers did not have any product in the Dish wash market
About RIN
 RIN , the only NSD fabric wash bar was introduced in Pakistan in the year 1984
 RIN sales reached satisfactory sales levels in 1988 (Target Sales: 1300, Actual
Sales: 1550 -> 119.2%)
Dishwash bar
Total dish wash bar sales in the country were 60000 tonnes in 1988.
Sales distribution:
•Hard Soaps: 88%
•Retailed between Rs.20-40 per kg
•Annual growth rate of 5%
•Bars: 12%
•Retailed between Rs. 25-40 per kg
•Annual growth rate of 3%
Case Notes: Promotion Schemes
■ Marketing campaigns for RIN constituted of
– TV advts (70 % of advertising cost):
■ lightening and thunder from the heavens with tagline: A little amount of
RIN washes a large lot of clothes.
■ Prancing horses and decorated elephants with the same tagline as above
– Newspaper coupons campaign ( – in urdu and English news papers
– Door to door campaigns – demonstration of washing properties at
women’s association meetings, girl colleges, Juma Bazars
– Distribution of Leaflets
Case Notes: Survey Results
Result %
Fabric Washer Dish Washer Both

Available Alternatives
Option 1
(RIN as Fabric + Dishwasher) Option 2 (RIN as a Fabric) Option 3 (RIN as a Dishwasher) Option 4 (RIN + VIM)
Pros 2-in-1 product which is unique Only NSD bar in the market Already perceived value due to Brand image is not
in market blue colour of the bar compromised
No Cost Implications
No change in manufacturing 33% lower total variable cost Both usages are targeted
process with separate products
Cons Consumers might get confused Blue color is misleading Re-branding RIN leads to Delayed Revenue
what RIN actually stands for customer mistrust
Dish wash market segment is not Challenges of launching
Positioning in the store targeted Manufacturing process needs to and marketing a new
becomes confusing be altered product
New Advt, Promotion costs
Our Approach
Option 1 Option 2 Option 3 Option 4
Ability to capture both - -
segments
Brand positioning - -
Cost Of Development - -
Future Profits - -
Total 2 2 1 3
Financial Analysis
Actual Income Statement 1988-89
Projected Income Statement 1989-90

Financial Analysis
PROMOTION STRATEGY
DIN:
• Total Production Cost for 32 Tonnes
of DIN = Rs. 4,44,240
Profit Rs. 0 (DIN is sold free with RIN)
RIN:
• Total Production Cost for 120
Tonnes of RIN = Rs. 22,15,000
• Sales = Rs. 24,05,000
• Profit = Rs. 1,90,140
BREAK EVEN STAGE

DIN:
• Total Production Cost for 120
Tonnes of DIN = Rs. 17,28,840
• Sales = Rs. 24,05,000
• Profit = Rs. 6,76,580 (total
production cost for promotional
volume of DIN + profit we would
have earned had RIN been sold)
Financial Analysis
Future Implications
additional profit
generated(due to two component strategy)
35,000,000.00
30,000,000.00
25,000,000.00
20,000,000.00
15,000,000.00
10,000,000.00
5,000,000.00
0.00
1986 1988 1990 1992 1994 1996 1998 2000 2002 2004

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RIN DETERGENT

Aditi Rathor (PGPBL0136)

■ What would you do?

Fabric Washer Dish Washer Both

New Advt, Promotion costs

Projected Income Statement 1989-90

BREAK EVEN STAGE

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