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Rin Case Study
RIN detergent was introduced in 1984 but sales were low for the first 3 years as it was primarily positioned as a fabric washing detergent. However, a 1988 survey found that 65% of users were actually using it as a dishwashing detergent, likely due to its blue color. The document considers alternatives for repositioning RIN, including keeping its dual usage, separating it into distinct fabric softener and dishwashing products, focusing solely on one usage, or changing its primary usage. It ultimately recommends repositioning RIN as both a dishwashing and fabric softening product by introducing a new color for the fabric softening bar to attract non-users while allowing current dishwashing users to continue that
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Rin Case Study
- 1. CASE STUDY SOLUTION RINDETERGENT:TO POSITION OR REPOSITION Group 8 Anshul Gupta Supraja Reddy Kunal Gandhi Pratit Vajani Shanmughanand Vishal Adkar
- 2. Situation Analysis RINwas introduced in April 1984 at a price of INR 2.95 per pack size of 130gm A thunder and lightning theme was used for ad campaigns For the first 3 years, sales of RIN were low at sub-700 tonnes/yr level Several consumer promotion schemes were tried during this period but none of them could produce the desired results In 1987, a new media campaign was launched that targeted the laundry soaps by emphasizing on the benefits of using RIN over soaps: Superior fabric washing Abundant and instant lather Cleaner, brighter and more economical wash 1984: INR 0.50 price-off campaign Jan-March 1985: INR 1 off on purchase of 2 bars April-Jul 1985: INR 0.70 price-off campaign June 1986: Package size reduced to 125gm @ INR 2.5 and a new 250gm size @ INR 4.75 was introduced
- 3. Situation Analysis Asurvey was conducted in 1988 and its results were: RIN was positioned as a fabric washing but still 65% of the users used it as a dishwashing bar Consumers associated blue color with a dishwashing bar which could have led them to perceive RIN as a dishwashing bar 15% 65% 20% RIN Usage Breakdown Fabric Washing Dish Washing
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- 5. Dish Washer & Fabric softner Dish washer + Fabric softener Only Fabric Softener Only Dish washer Alternatives RIN as Dishwasher and Fabric softener both Focus on the Re-positioning of RIN as Fabric softener as well as take the advantage of its usage as Dish washer. RIN as Dishwasher and RIN as Fabric softener Focus on the positioning RIN as Fabric softener as one product and Dish washer as another in turn not compensating on revenue RIN as Fabric softener Focus on the initial positioning of RIN as Fabric softener RIN as Dishwasher Focus on launching RIN as Dish washer
- 6. Details: Re-positionthe RIN brand to be used for both the purposes Will differentiate RIN from other competing brands which cater to either fabric softeners or dish washers Will be able to leverage the customer base which is using the same product for different uses Focus: Targeted at house wives and female population Get a female celebrity to endorse the uses of the product Implications: No change in the product mix Additional expenditure only in the form of advertisements and sales promotional campaigns Dish Washer & Fabric softner Dish washer + Fabric softener Alternatives Only Fabric Softener Only Dish washer
- 7. Dish Washer & Fabric softner Dish washer + Fabric softener Alternatives Only Fabric Softener Only Dish washer Details: RIN targets two different markets - fabric softeners and dish washers Will be able to leverage the existing customer base and cater to the entire mass without confusion as to what the product is meant for Focus: To differentiate both the products in terms of packaging and promotion No blue color for fabric softener to avoid confusion Implications: New product mix involves additional cost of production and packaging Heavy expenditure on advertisements and sales promotional campaigns for introduction of new product
- 8. Dish washer & Fabric softener Dish washer + Fabric softener Only Fabric softener Only Dish washer Alternatives Details: RIN is the only NSD bas in the market Continue with the existing strategy of marketing RIN as a fabric softener Take advantage of the consumer perception of using it as dish washer to generate additional revenue Focus: Differentiate the product with a different color or shade from dishwasher bars Focus on the new features of the product through a female celebrity to endorse the product Implications: New product mix involves additional cost of production and packaging Heavy expenditure on advertisements and sales promotional campaigns for introduction of new product
- 9. Dish washer & Fabric softener Dish washer + Fabric softener Only Fabric Softener Only Dish washer Alternatives Details: Re-launch the product as a Dish washer Re-affirm the trust consumer has in the product as a dish washer and tap the 65% consumers that use it as a dish washer Focus: 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 Implications: New product mix involves 33% lesser cost on elimination of fabric softeners ingredients Heavy expenditure on advertisements and sales promotional campaigns for introduction of new product
- 10. Recommendations We recommendto use RIN as Dish washer + Fabric softener in order not to lose market and to attract new customers Should use the current bar and introduce as Dish Washer and change the color of the bar and promote as Fabric Softener This way 65% population who use it as Dish Washer continue to do so Those who don’t use it for Fabric Softener because of the color would be inclined to use it because of extensive promotion and change of color The population of 15% who use it only for fabric washing will continue to use it. So overall sales increases
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