You are on page 1of 11

RIN PAKISTAN

TO POSITION OR TO RE-POSITION
– Aparajita Biala, EPGP 12A - 023
• Lever has a product portfolio consisting of - shampoos, skin and shaving creams,
edible oils, margarine, toilet soaps, scourers, and laundry detergents in powder
and solid bar forms. In 1984, Lever launched a fabric washer named “RIN” in as a
solid, blue NSD Bar.
Background • PBT in 1988 was Rs 277Mio, 9% against sales revenue
• Market Mapping :

Vol Growth vs
Category Vol Contri. Price per Kg Lever Presence
(Tonnes) LY
La undry
FABRIC WASH CATEGORY 247000 94% 5% 10-15 Rs NIL
Soa p
Non Soa p Surf & Sunl i ght (
14500 6% 12% 20-45Rs
Detergent 50% ma rket s ha re)
RIN ( onl y NSD ba r
NSD Ba r 1550 1% 29% 20-48Rs
i n ma rket)
Total Fabric
263050
wash
DISHWASHER CATEGORY Ha rd Soa ps 52800 88% 5% 20-40Rs
Ba rs 7200 12% 3% 25-40Rs
Sunl i ght l a unched
Competition
i n 1985 ( di s conti.
Li qui d 160 0% s el l s 600ML
i n '87 ). Comp.: Zi p
/ Rs 23
s el l s 100 ton. ('89 )
Total
60000
Product
▪ Fabric washing Blue coloured NSD bar. Blue is not the existing category color, i.e.
white. .
▪ Key differentiators: Lathers well in any water condition , Active ingredients and
phosphates for better wash+ (ensures that dirt doesn’t settle back on the fabric),
Marketing Mix cleaner, brighter and mor economical wash, fragrance
▪ Packaging: Blue contrary to the existing category colors / codes of the fabric
washing category.
Promotion & Price - Timeline
1984 Jan – Mar 1985 Apr- Jul 1985 Jun 1986 onwards 1987
Rs. 0.50 price off Rs. 1 off on 2 bars Rs. .70 off Trade discounts
Trade promos Newspaper coupons Trade promos
Trade promos

• Launch Campaign • Media Advt.


- Thunder lightening theme • Celebrity endorsement
- “A little amount of RIN washes (middle aged )
large • Attacking laundry soap messaging
no. of clothes” • RIN: “You get much more out of
RIN than what you pay”
Rs 2.95/ 130gms Rs 3.15/ 130gms Rs 2.50/ 125gms, Rs 2.80/ 125gms,
Rs 4.75/ 250gms Rs 5.30/ 250gms
• While RIN’s intended and communicated usage was for Fabric wash, the survey findings
revealed: RIN usage – 65% only for dish washing, 15% only for fabric washing, 20% for both
usages. ( 80-85% of RIN sales were due to dish washing ).

Problem • Retailers’ low acceptance of RIN as a Fabric washer shows in their placement of the product
in wrapped personal soap or separate shelves instead of placement in fabric wasing category.
• RIN colour blue created confusion as this colour is established with the dishwashing category.
Fabric washing soaps were usually wrapped and were either white or yellow in color.
• In the neighbouring country, India, RIN has been successfully marketing itself as a fabric
washer for 8 years and it is established for this usage. Hence, there is an international repute
the brand as already acquired in the category.
• By this feedback, 33% of the cost (of the product) was being wasted since it was exclusive
fabric wash ingredients, while it was hardly put to use. In terms of volume capacity, the
manufacturing is thoroughly under-utilized, that has a capacity of 5000 tonnes
• Successively unsuccessful promotions were launched which pushed the sales by only 10% vis
a vis a higher 50% target.
• Overall, the volume size of the dishwashing bars category ( 7200 tonnes ) is much higher
than the fabric wash NSD category in which RIN is currently pegged in ( 1550 tonnes). Levers
currently has no presence in the former category. Even though it is a problem of
(re)positioning of RIN, the opportunity of higher volumes in dishwashing category should be
leveraged. The question arises – to straddle both categories or one, and if one, which one
considering category potential, RIN usage challenges due to category codes and the brand
image.
POTENTIAL SOLUTIONS
SHARPEN
REPOSITION AS
DISHWASHER FABRIC POSITIONING AS
DUAL USAGE –
ALTERNATIVES FABRIC SOFTENER &
ONLY SOFTENER ONLY FABRIC AND
LAUNCH A VARIENT
DISHWASHER
FOR DISHWASHING

• This would mean that Levers will need to forego the category of Fabric
NSD bars entirely ( 1550 tonnes ) and 35% of the consumer segment
that either uses it as both Dishwasher as well as fabric and only fabric
Re-positioning softner.
• Tapping the 65% of the consumer segment and re-affirming their
behaviour of using RIN as a dishwasher only.
RIN as a • Re-positioning RIN as a dishwasher will call for significant investments
across the marketing mix.
Dishwasher ✓ Maintain the blue color of the product for consumers to associate with the brand
✓ Focus on the new features of the product being a dish washer through a female celebrity to
endorse the product
✓ Advertising and marketing blitz for repositioning
• New product mix involves 33% lesser cost on elimination of fabric
softeners ingredients.
SHARPEN
REPOSITION AS
DISHWASHER FABRIC POSITIONING AS
DUAL USAGE –
ALTERNATIVES FABRIC SOFTENER &
ONLY SOFTENER ONLY FABRIC AND
LAUNCH A VARIENT
DISHWASHER
FOR DISHWASHING

• RIN is the only NSD bas in the market. Continue with the existing
strategy of marketing RIN as a fabric softener and sharper
Sharpening positioning as a fabric softener.
• While allowing for its usage as a dish washer to generate
Positioning As additional revenue, not pushing this in consumer positioning
communication.
Only A Fabric • Differentiate the product with a different color or shade from
dishwasher bars or invest heavily in establishing its fabric
Softner washing expertise.
• Focus on the new features of the product through a female
celebrity to endorse the product.
• New product mix might involves additional cost of production
and packaging.
• Heavy expenditure on advertisements and sales promotional
• Retailer and distributor education initiatives to shift perceptions.
SHARPEN
REPOSITION AS
DISHWASHER FABRIC POSITIONING AS
DUAL USAGE –
ALTERNATIVES FABRIC SOFTENER &
ONLY SOFTENER ONLY FABRIC AND
LAUNCH A VARIENT
DISHWASHER
FOR DISHWASHING

• Re-position the RIN brand to be used for both the purposes.


Position RIN • Will differentiate RIN from other competing brands which cater to either
fabric softeners or dish washers.
For A Dual • Will be able to leverage the customer base which is using the same
product for different uses
• Targeted at house wives and female population. To get a female
Usage celebrity to endorse the uses of the product
• No significant change in the product mix.
• Additional expenditure only in the form of advertisements and sales
promotional campaigns.
• Potential to create confusions as a result of which diluting the
associations that are already built by RIN in the last few years.
SHARPEN
REPOSITION AS
DISHWASHER FABRIC POSITIONING AS
DUAL USAGE –
ALTERNATIVES FABRIC SOFTENER &
ONLY SOFTENER ONLY FABRIC AND
LAUNCH A VARIENT
DISHWASHER
FOR DISHWASHING

Sharpen
Positioning RIN As • RIN targets two different markets - fabric softeners and dish washers .
Will be able to leverage the existing customer base and cater to the
A Fabric Softner entire mass without confusion as to what the product is meant for.
• Leverage the volume size of the dishwashing bars category ( 7200
And A New Product tonnes ) and fabric wash NSD category in which RIN is currently pegged
in ( 1550 tonnes).
Variant For • To differentiate both the products in terms of packaging and promotion
Dishwashing • No blue color for fabric softener to avoid confusion
• New product mix involves additional cost of production and packaging
• Heavy expenditure on advertisements and sales promotional campaigns
for introduction of new product
Sharpen position RIN as a Fabric Softner and a new product variant for
Dishwashing.
• Ensuring that there is no confusion between the usages of both
products and yet leveraging both categories. ( Dishwashing and Fabric
Softeners ). Keeping RIN’s international positioning as a fabric softner
intact.
What would you do? • Push the positioning sharpening agenda for RIN as a Fabric softner
across the marketing mix. Drive the perception change of retailers so
Recommendations the shelving of the product is corrected.
• Consider a re-packaging initiative for RIN ( fabric washing ) to adhere to
category codes yet keeping the brand’s differentiation.
• Launch the new variant / product with a similar sounding name to
leverage the RIN association. Yet there is a clear differentiation between
both product offerings based on their packaging and product colors.
• Tap into both category potentials ( volume ) and consumer perceptions.
• Allocate significant marketing – advertising funds for the launch of new
product and sharpen positioning of the existing product.
Thank You

You might also like