RIN Detergent To Position or Reposition

PGHR 09 - Group 10

Agenda

1 2 3 4

The Situation Alternatives in Hand Evaluating the Alternatives in Hand What we feel

Things to be further evaluated first before zeroing down on a strategy

Issues Are Laundry soaps also used for Dishwashing Does the consumer survey actually serve the purpose Why hasnt any company tried to enter the NSD bar market during the last 5 years The Idea Possible that laundry soaps are also used for dishwashing

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
Consumer survey gives results for Sep 88 Jan 89, while prices had been raised earlier in August Possibility that consumers have stopped using RIN as fabric washer due to price increase

Why havent other players entered the market during the last 5 years?
What can be the possible reasons? Is their an unorganized market in Pakistan? Its strength?

Alternatives in Hand
The Idea Idea The RIN as a Fabric + Dish washer

Focus on primary as well as secondary function Let us gain from whichever segment sales come from

RIN as a Fabric washer

Focus on the primary function Let us maintain our brands focus

RIN as a Dish washer

Focus on the secondary function Let us target the segment that is actually generating sales

Agenda

1 2 3 4

The Situation Alternatives in Hand Evaluating the Alternatives in Hand What we feel

RIN as a Fabric + Dish washer Alternative 1

RIN as a Fabric + Dish washer

Alternative 1 Re-positioning RIN as a product that can be used both as a fabric as well as dish washer Premise

Will uniquely position and clearly differentiate RIN from competing products, which are either fabric washers or dish washers

RIN as a Fabric washer

Will be able to cater to its entire customer base, the intended as well as the unintended, while not sacrificing any of them

Media Communication Campaign

A well-known Pakistani cricket all-rounder can be used to endorse RIN is like me

RIN as a Dish washer

Considering the target audience as housewives, a wellknown female personality who is involved in several activities can also be used. Example Hema Malini is India Demonstrations, free samples and plays in urban areas; haats, mandis and melas in rural areas

RIN as a Fabric + Dish washer Alternative 1

RIN as a Fabric + Dish washer

Alternative 1 Re-positioning RIN as a product that can be used both as a fabric as well as dish washer Distribution Network

Retailers to be sensitivized about the new product

Giving them incentives to shelve RIN separately, using it as the dividing section between fabric washers and dish washers Customer will easily be able to identify RIN Financial Implications No tinkering with the product, only with the packaging Additional expenditure would be only in the form of advertisements and sales promotional campaigns

RIN as a Fabric washer

RIN as a Dish washer

RIN as a Fabric + Dish washer Alternative 2

RIN as a Fabric + Dish washer

Alternative 2 RIN in two separate brand variants One, as a washing powder and; Second, as a dish washer Premise

Lever will have a clear focus on the two target segments both segments can be targeted properly

RIN as a Fabric washer

The entire market (possible usage) for RIN can be tapped Customers will not be left confused as to What is RIN actually meant for? Product Both products should be completely different in look and feel Fabric Washer Non-blue color, new fragrance Dish Washer Blue (but separate from competitors), 33% reduction in variable cost

RIN as a Dish washer

RIN as a Fabric + Dish washer Alternative 2

RIN as a Fabric + Dish washer

Alternative 2 RIN in two separate brand variants One, as a washing powder and; Second, as a dish washer Media Communication Campaign

Fabric Washer
More focus on new features; more focus on outcomes through a well-known female personality More focus on rural Pakistan as well; haats, melas etc

RIN as a Fabric washer

Dish Washer
Features of the new product Advertisements targeting both hard soaps and other bars

RIN as a Dish washer

Distribution Network

Retailers to be sensitivized about the two products

Shelving of the two variants in their respective categories; Incentives for positioning RIN as the dividing line
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RIN as a Fabric + Dish washer Alternative 2

RIN as a Fabric + Dish washer

Alternative 2 RIN in two separate brand variants One, as a washing powder and; Second, as a dish washer Financial Implications

Additional costs to be borne on new product and packaging

More retailer incentives, for both variants Heavy increase in expenditure in the form of advertisements and sales promotional campaigns

RIN as a Fabric washer

RIN as a Dish washer

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RIN as a Fabric washer

RIN as a Fabric + Dish washer

RIN as a pure Fabric washer taking initiatives to further penetrate the fabric wash market in Pakistan Premise

RIN is the only NSD bar in the market; hence it makes sense to further penetrate the lucrative market as a unique product

RIN as a Fabric washer

Secondary sales in the form of dish washing will continue to come by in any case Product Non-blue in color, make it different from other dish-washing bars in Pakistan

RIN as a Dish washer

Packaging should however have a tinge of blue, but largely non-blue

Completely new fragrance we are in a sense re-launching the product

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RIN as a Fabric washer

RIN as a Fabric + Dish washer

RIN as a pure Fabric washer taking initiatives to further penetrate the fabric wash market in Pakistan Media Communication Campaign

More focus on new features; more focus on outcomes through a well-known female personality

RIN as a Fabric washer

Even the same mid-aged movie star can be used along with a younger movie star Customers will clearly get the idea of old vs new Otherwise almost similar promotional techniques More focus on rural Pakistan as well; haats, melas etc

RIN as a Dish washer

Distribution Network Identify the margins earned by retailers give them the maximum among all fabric washing products Retailers will ensure shelving of RIN properly

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RIN as a Fabric washer

RIN as a Fabric + Dish washer

RIN as a pure Fabric washer taking initiatives to further penetrate the fabric wash market in Pakistan Financial Implications

Additional costs on new product development, new packaging

RIN as a Fabric washer

Continuing expenditure on advertisement and trade promotion this time for a new product

RIN as a Dish washer

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RIN as a Dish washer

RIN as a Fabric + Dish washer

RIN as a pure Dish washer re-launching RIN as a dish washer and not as fabric washer Premise

Targeting the actual customer, instead of the intended one

Five years of promotional activities does not seem to have borne much fruit The customer will be able to identify better with their RIN, i.e. the way they have always perceived RIN as Product Blue in color (but a different than competitors), similar packaging but with minor changes Elimination of special fabric wash ingredients; 33% reduction in variable cost

RIN as a Fabric washer

RIN as a Dish washer

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RIN as a Dish washer

RIN as a Fabric + Dish washer

RIN as a pure Dish washer re-launching RIN as a dish washer and not as fabric washer Media Communication Campaign

Focus on dish washing qualities; RIN as their preferred dishwasher

RIN as a Fabric washer

Distribution Network Identify the margins earned by retailers give them the maximum among all dish washing products Retailers will ensure shelving of RIN properly Financial Implications 33% lesser variable cost; Additional costs on new packaging Initial expenditure on advertisement and trade promotion this time for a new theme

RIN as a Dish washer

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Agenda

1 2 3 4

The Situation Alternatives in Hand Evaluating the Alternatives in Hand What we feel

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What we feel
Priority RIN as a Fabric + Dish washer Rationale The Idea Let us target the entire customer segment

Plant is already underutilized Also, positioning only as a fabric washer hasnt yielded desired outcomes

RIN as a Fabric washer

Looks at only a part of the entire market

Positioning only as a fabric washer hasnt yielded desired outcomes till now Changes in product features and subsequent promotion can have desired outcomes

RIN as a Dish washer

Customers might be left confused what RIN actually stands for?

Complete U-turn might leave RIN in no mans land Also, dish-washing market is smaller and more competitive than fabric washing market

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Alternative 1 vis. a vis. other possible strategies

Comparative Chances of Increase in sales Similar

Alternative

Premise Similar

Additional Expenditure Less as focus on a single product Larger

Time Period Involved Less as no product tinkering in alternative 1 Less as product tinkering in second case Less as product tinkering in second case

F+D Alternative 1 vs. Alternative 2

F+D Alternative 1 vs. RIN as a Fabric washer

F+D Alternative 1 vs. RIN as a Dish washer

Strong

Very High

Very Strong

Similar promotion Less product cost in case 2

Very High

Positives against alternatives

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Negatives against alternatives

Conclusion

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 Increase in sales is almost certain

The two-in-one concept will definitely appeal to the middle, lower middle and lowerincome class population of Pakistan
Increasing sales by targeting all customer segments reduces the per unit production costs as RIN production plant remains highly underutilized

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Thank You

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