2. MARKETING MANTRA - CCDVTP
Creating, Communicating and delivering Value to a Target
Market at a Profit.
- Philip Kotler
3. OBSERVATION
Customer survey & Market survey was not
done prior to launch of the product
Blue color of the bar created a wrong
perception.
Misleading advertisement of the product.
Sales were 1550 tonnes against 5000
tonnes of production capacity
65%
15%
20%
Usage Breakdown as per the
Survey
Dishwashing bar
Fabric Washing bar
Both
4. Market Segment – Households with Income group upper lower to upper middle
class
Broad Product Market : Non Soap Detergent(NSD) Bar Market
Promised values: Functional and economical benefits
Positioning Statement – RIN is brand of Non Soap Detergent(NSD) Bar Market for
Households with Income group upper lower to upper middle class that has
functional & economical benefits because of ???
PRESENT STATUS
5. PARAMETERS Position RIN as A Fabric
Washer
RE-Position RIN as Dish
Washer only
RE-Position RIN as
both Fabric Washer
and Dish Washer
Position RIN as A Fabric
Washer and Launch new
product as Dishwasher
Product Revamp Change Color of bar and
packaging
Change the packaging Status Quo Change Color of bar and
packaging
Launch New product as
Dish washer
Product Placement
in Retail Outlets
Among other fabric
washing category
Among other dish-
washing category
Not Required Among respective
categories
Advertising and
Branding
Communicate its functional
value
Create and communicate
new value proposition.
Reposition the image of
RIN
Highlight the multi-
purpose use of RIN
Communicate functional
value of each product
clearly
Offer Combo packs with
discounts
+ve Implication Not much financial
implication.
Minimize COP (33%)
High profit market
Target Market is
larger
Target Market is larger.
Minimize COP (33%) as a
Dish washer
-ve Implication Loosing on the potential of
dishwashing market
segment, which is larger
Create confusion in
market.
Huge Advertising
-ve perception that
dishwasher being
used for washing
Limitation of production
capacity
6. PARAMETERS Position RIN as A Fabric
Washer
RE-Position RIN as Dish
Washer only
RE-Position RIN as
both Fabric Washer
and Dish Washer
Position RIN as A Fabric
Washer and Launch new
product as Dishwasher
Financial
Implication
Market potential (NSD bar
+ NSD powder)*
potential =1550 +
(14500/2) considering 50%
of market is already with
brand = 8800 tones
Average price = Rs.34 /kg
Cost of RIN = Rs.18.46 per
kg
Potential = 8800* 34 =
Rs.29.92 crores
Potential Profit = Rs. 15.54
per kg
*Laundry soap is not
economical viable
segment.
Average price of
dishwashing bar in market =
Rs. 32.5 /kg
Price of RIN = Rs. 26 per kg
Potential as dishwashing as
bar (volumes)=12% of
60000 = 7200 tones
Potential as dishwashing as
bar (price) = 7200*32.5 =
Rs. 23.4 crores
Cost of RIN = Rs. 12.37 per
kg
Potential Profit = Rs. 20.13
per kg
Average price of
dishwashing bar in
market = Rs. 30 /kg
Price of RIN = Rs. 26
per kg
Potential as
dishwashing
(volumes)=88% of
60000 = 52,800 tones
Potential as disbar
(price) = 52800*30 =
Rs. 158.40 crores
Potential Profit = Rs.
11.46 per kg
Cost of RIN = Rs.18.46
per kg (Fabric Washer)
Average price = Rs.34
per kg (Fabric Washer)
Cost of RIN = Rs. 12.37
per kg ( Dish Washer)
Average price = Rs.26
per kg (Dish Washer)
Potential Profit = Rs.
15.54 per kg
(Fabric Washer) + Rs.
20.13 per kg (Dish
Washer)
7. RECOMMENDATION
Alternative 4:
Position RIN as A Fabric Washer and Launch new product as Dishwasher
Potential Profit = Rs. 15.54 per kg
(Fabric Washer) + Rs. 20.13 per kg (Dish Washer)
To communicate clear value of both the products to the target market.