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Rin detergent case analysis group 10

Rin detergent case analysis group 10

  1. 1. RIN Detergent – To Position or Reposition PGHR ‘09 - Group 10
  2. 2. Agenda The Situation 1 Alternatives in Hand 2 Evaluating the Alternatives in Hand 3 What we feel 4
  3. 3. Things to be further evaluated first before zeroing down on a strategy <ul><li>Consumer survey gives results for Sep ’88 – Jan ‘89, while prices had been raised earlier in August </li></ul><ul><ul><li>Possibility that consumers have stopped using RIN as fabric washer due to price increase </li></ul></ul>Does the ‘consumer survey’ actually serve the purpose <ul><li>Why haven’t other players entered the market during the last 5 years? </li></ul><ul><ul><li>What can be the possible reasons? </li></ul></ul><ul><li>Is their an ‘unorganized’ market in Pakistan? Its strength? </li></ul>Why hasn’t any company tried to enter the NSD bar market during the last 5 years <ul><li>Possible that laundry soaps are also used for dishwashing </li></ul><ul><li>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 </li></ul>The Idea Issues Are Laundry soaps also used for Dish-washing
  4. 4. Alternatives in Hand <ul><li>Focus on primary as well as secondary function – Let us gain from whichever segment sales come from </li></ul>RIN as a ‘Fabric’ washer RIN as a ‘Fabric + Dish’ washer RIN as a ‘Dish’ washer The Idea The Idea <ul><li>Focus on the primary function – Let us maintain our brand’s focus </li></ul><ul><li>Focus on the secondary function – Let us target the segment that is actually generating sales </li></ul>1 2 3
  5. 5. Agenda The Situation 1 Alternatives in Hand 2 Evaluating the Alternatives in Hand 3 What we feel 4
  6. 6. RIN as a ‘Fabric + Dish’ washer – Alternative 1 <ul><li>Alternative 1 – Re-positioning RIN as a product that can be used both as a fabric as well as dish washer </li></ul><ul><li>Premise </li></ul><ul><li>Will uniquely position and clearly differentiate RIN from competing products, which are either fabric washers or dish washers </li></ul><ul><li>Will be able to cater to its entire customer base, the intended as well as the unintended, while not sacrificing any of them </li></ul><ul><li>Media Communication Campaign </li></ul><ul><li>A well-known Pakistani cricket all-rounder can be used to endorse – ‘RIN is like me’ </li></ul><ul><li>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 </li></ul><ul><li>Demonstrations, free samples and plays in urban areas; haats, mandis and melas in rural areas </li></ul>RIN as a ‘Fabric’ washer RIN as a ‘Fabric + Dish’ washer RIN as a ‘Dish’ washer 1 2 3
  7. 7. RIN as a ‘Fabric + Dish’ washer – Alternative 1 RIN as a ‘Fabric’ washer RIN as a ‘Fabric + Dish’ washer RIN as a ‘Dish’ washer 1 2 3 <ul><li>Alternative 1 – Re-positioning RIN as a product that can be used both as a fabric as well as dish washer </li></ul><ul><li>Distribution Network </li></ul><ul><li>Retailers to be sensitivized about the new product </li></ul><ul><li>Giving them incentives to shelve RIN separately, using it as the dividing section between fabric washers and dish washers </li></ul><ul><ul><li>Customer will easily be able to identify RIN </li></ul></ul><ul><li>Financial Implications </li></ul><ul><li>No tinkering with the product, only with the packaging </li></ul><ul><li>Additional expenditure would be only in the form of advertisements and sales promotional campaigns </li></ul>
  8. 8. RIN as a ‘Fabric + Dish’ washer – Alternative 2 RIN as a ‘Fabric’ washer RIN as a ‘Fabric + Dish’ washer RIN as a ‘Dish’ washer 1 2 3 <ul><li>Alternative 2 – RIN in two separate brand variants – One, as a washing powder and; Second, as a dish washer </li></ul><ul><li>Premise </li></ul><ul><li>Lever will have a clear focus on the two target segments – both segments can be targeted properly </li></ul><ul><li>The entire market (possible usage) for RIN can be tapped </li></ul><ul><li>Customers will not be left confused as to – What is RIN actually meant for? </li></ul><ul><li>Product </li></ul><ul><li>Both products should be completely different in look and feel </li></ul><ul><li>Fabric Washer – Non-blue color, new fragrance </li></ul><ul><li>Dish Washer – Blue (but separate from competitors), 33% reduction in variable cost </li></ul>
  9. 9. RIN as a ‘Fabric + Dish’ washer – Alternative 2 RIN as a ‘Fabric’ washer RIN as a ‘Fabric + Dish’ washer RIN as a ‘Dish’ washer 1 2 3 <ul><li>Alternative 2 – RIN in two separate brand variants – One, as a washing powder and; Second, as a dish washer </li></ul><ul><li>Media Communication Campaign </li></ul><ul><li>Fabric Washer – </li></ul><ul><ul><li>More focus on new features; more focus on outcomes through a well-known female personality </li></ul></ul><ul><ul><li>More focus on rural Pakistan as well; haats, melas etc </li></ul></ul><ul><li>Dish Washer – </li></ul><ul><ul><li>Features of the new product </li></ul></ul><ul><ul><li>Advertisements targeting both hard soaps and other bars </li></ul></ul><ul><li>Distribution Network </li></ul><ul><li>Retailers to be sensitivized about the two products </li></ul><ul><li>Shelving of the two variants in their respective categories; Incentives for positioning RIN as the dividing line </li></ul>
  10. 10. RIN as a ‘Fabric + Dish’ washer – Alternative 2 RIN as a ‘Fabric’ washer RIN as a ‘Fabric + Dish’ washer RIN as a ‘Dish’ washer 1 2 3 <ul><li>Alternative 2 – RIN in two separate brand variants – One, as a washing powder and; Second, as a dish washer </li></ul><ul><li>Financial Implications </li></ul><ul><li>Additional costs to be borne on new product and packaging </li></ul><ul><li>More retailer incentives, for both variants </li></ul><ul><li>Heavy increase in expenditure in the form of advertisements and sales promotional campaigns </li></ul>
  11. 11. RIN as a ‘Fabric’ washer RIN as a ‘Fabric’ washer RIN as a ‘Fabric + Dish’ washer RIN as a ‘Dish’ washer 1 2 3 <ul><li>RIN as a pure ‘Fabric’ washer – taking initiatives to further penetrate the fabric wash market in Pakistan </li></ul><ul><li>Premise </li></ul><ul><ul><li>RIN is the only NSD bar in the market; hence it makes sense to further penetrate the lucrative market as a unique product </li></ul></ul><ul><ul><li>Secondary sales in the form of ‘dish washing’ will continue to come by in any case </li></ul></ul><ul><li>Product </li></ul><ul><ul><li>Non-blue in color, make it different from other ‘dish-washing’ bars in Pakistan </li></ul></ul><ul><ul><li>Packaging should however have a tinge of blue, but largely non-blue </li></ul></ul><ul><ul><li>Completely new fragrance – we are in a sense re-launching the product </li></ul></ul>
  12. 12. RIN as a ‘Fabric’ washer RIN as a ‘Fabric’ washer RIN as a ‘Fabric + Dish’ washer RIN as a ‘Dish’ washer 1 2 3 <ul><li>RIN as a pure ‘Fabric’ washer – taking initiatives to further penetrate the fabric wash market in Pakistan </li></ul><ul><li>Media Communication Campaign </li></ul><ul><ul><li>More focus on new features; more focus on outcomes through a well-known female personality </li></ul></ul><ul><ul><li>Even the same mid-aged movie star can be used along with a younger movie star </li></ul></ul><ul><ul><ul><li>Customers will clearly get the idea of ‘old’ vs ‘new’ </li></ul></ul></ul><ul><ul><li>Otherwise almost similar promotional techniques </li></ul></ul><ul><ul><li>More focus on rural Pakistan as well; haats, melas etc </li></ul></ul><ul><ul><li>Distribution Network </li></ul></ul><ul><ul><li>Identify the margins earned by retailers – give them the maximum among all fabric washing products </li></ul></ul><ul><ul><ul><li>Retailers will ensure shelving of RIN properly </li></ul></ul></ul>
  13. 13. RIN as a ‘Fabric’ washer RIN as a ‘Fabric’ washer RIN as a ‘Fabric + Dish’ washer RIN as a ‘Dish’ washer 1 2 3 <ul><li>RIN as a pure ‘Fabric’ washer – taking initiatives to further penetrate the fabric wash market in Pakistan </li></ul><ul><li>Financial Implications </li></ul><ul><ul><li>Additional costs on new product development, new packaging </li></ul></ul><ul><ul><li>Continuing expenditure on advertisement and trade promotion – this time for a new product </li></ul></ul>
  14. 14. RIN as a ‘Dish’ washer RIN as a ‘Fabric’ washer RIN as a ‘Fabric + Dish’ washer RIN as a ‘Dish’ washer 1 2 3 <ul><li>RIN as a pure ‘Dish’ washer – re-launching RIN as a dish washer and not as fabric washer </li></ul><ul><li>Premise </li></ul><ul><ul><li>Targeting the ‘actual’ customer, instead of the intended one </li></ul></ul><ul><ul><li>Five years of promotional activities does not seem to have borne much fruit </li></ul></ul><ul><ul><li>The customer will be able to identify better with ‘their’ RIN, i.e. the way they have always perceived RIN as </li></ul></ul><ul><ul><li>Product </li></ul></ul><ul><ul><li>Blue in color (but a different than competitors), similar packaging but with minor changes </li></ul></ul><ul><ul><li>Elimination of special fabric wash ingredients; 33% reduction in variable cost </li></ul></ul>
  15. 15. RIN as a ‘Dish’ washer RIN as a ‘Fabric’ washer RIN as a ‘Fabric + Dish’ washer RIN as a ‘Dish’ washer 1 2 3 <ul><li>RIN as a pure ‘Dish’ washer – re-launching RIN as a dish washer and not as fabric washer </li></ul><ul><li>Media Communication Campaign </li></ul><ul><ul><li>Focus on ‘dish washing’ qualities; RIN as their preferred dish-washer </li></ul></ul><ul><ul><li>Distribution Network </li></ul></ul><ul><ul><li>Identify the margins earned by retailers – give them the maximum among all dish washing products </li></ul></ul><ul><ul><ul><li>Retailers will ensure shelving of RIN properly </li></ul></ul></ul><ul><li>Financial Implications </li></ul><ul><ul><li>33% lesser variable cost; Additional costs on new packaging </li></ul></ul><ul><ul><li>Initial expenditure on advertisement and trade promotion – this time for a new theme </li></ul></ul>
  16. 16. Agenda The Situation 1 Alternatives in Hand 2 Evaluating the Alternatives in Hand 3 What we feel 4
  17. 17. What we feel <ul><li>Let us target the entire customer segment </li></ul><ul><li>Plant is already underutilized </li></ul><ul><li>Also, positioning only as a ‘fabric washer’ hasn’t yielded desired outcomes </li></ul>RIN as a ‘Fabric’ washer RIN as a ‘Fabric + Dish’ washer RIN as a ‘Dish’ washer 1 2 3 The Idea Priority Rationale Priority <ul><li>Looks at only a part of the entire market </li></ul><ul><li>Positioning only as a ‘fabric washer’ hasn’t yielded desired outcomes till now </li></ul><ul><li>Changes in product features and subsequent promotion can have desired outcomes </li></ul><ul><li>Customers might be left confused – what RIN actually stands for? </li></ul><ul><li>Complete U-turn might leave RIN in no man’s land </li></ul><ul><li>Also, dish-washing market is smaller and more competitive than fabric washing market </li></ul>
  18. 18. Alternative 1 vis. a vis. other possible strategies 1 2 3 <ul><li>Similar promotion </li></ul><ul><li>Less product cost in case 2 </li></ul><ul><li>Larger </li></ul><ul><li>Less as focus on a single product </li></ul>Additional Expenditure <ul><li>Less as product tinkering in second case </li></ul><ul><li>Less as product tinkering in second case </li></ul><ul><li>Less as no product tinkering in alternative 1 </li></ul>Time Period Involved <ul><li>Very Strong </li></ul><ul><li>Strong </li></ul><ul><li>Similar </li></ul>Premise <ul><li>Very High </li></ul>‘ F+D’ Alternative 1 vs. RIN as a ‘Fabric’ washer <ul><li>Very High </li></ul>‘ F+D’ Alternative 1 vs. RIN as a ‘Dish’ washer <ul><li>Similar </li></ul>Comparative Chances of ‘Increase in sales’ Alternative ‘ F+D’ Alternative 1 vs. Alternative 2 Positives against alternatives Negatives against alternatives
  19. 19. Conclusion <ul><li>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 </li></ul><ul><li>Increase in sales is almost certain </li></ul><ul><ul><li>The ‘two-in-one’ concept will definitely appeal to the middle, lower middle and lower-income class population of Pakistan </li></ul></ul><ul><li>Increasing sales by targeting all customer segments reduces the per unit production costs as RIN production plant remains highly underutilized </li></ul>
  20. 20. Thank You

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