Rin Detergent Case Analysis

RIN DETERGENT TO POSITION OR REPOSITION

Kush Kumar – 13P149 Aviral Bansal – 13P135 Rochak Mathur – 13P163 Rattan Preet Singh – 13P161 Devasheesh Mathur– 13FPM91

Overview • Lever Brothers Pakistan Ltd a FMCG company in Pakistan • In 1984 launch RIN as solid, blue NSD bar as fabric washer in 130 gm standard pack • Advertised as being introduced from heavens by thunder and lightning bolts • Disappointing sales for first three years

Overview Contd • Promotional schemes didn’t help much • In June 1986 package size reduced to 125 gms and new 250 gms package size introduced • New advertising campaign designed to portray as cleaner, brighter and more economical wash than soaps • Successful relaunch and sale reached 1200 ton

Fabric Wash Market • Total fabric wash sales of 263,050 tonnes NSD Bar, 0.50%

NSD Powder, 5.50%

Laundary Soap, 94%

• Laundry soap retailed for Rs. 10-15 /kg • NSD Powder price range : Rs. 20-48 /kg • Sunlight & Surf had 50% of NSD powder Market

Dishwash Market • Total dishwash sales of 60,000 tonnes Bars, 12.00%

Hard Soaps, 88%

• Hard soap retailed between Rs. 20-40 /kg • Dishwashing Bars retailed between Rs. 25-40 /kg

Why people view RIN as Dishwasher ? • Representative Heuristics – People associate blue color with dishwash bars

• Retailers shelved RIN with wrapped personal soap or completely separate • Company portrayed as Economic Soap – In terms of price was more suitable and competitive as Dishwash Bar – Avg price of RIN Rs. 26/kg ( Rs. 3.25 for 125gm ) – Price range of Dish wash bar: Rs. 25-40 /kg – Price range for laundry soap: Rs. 10-15/kg

Recommendation • Reposition RIN as economic Dishwash Bar • Use cost as SCA – Eliminate fabric wash ingredient – Can pass some cost advantage to customers

• Position it on Shelves along with other Dishwash Bars • Can also launch RIN liquid Dishwash

For Fabric wash Market • Can launch a new fabric wash bar under the Brand name of Sunlight and Surf • Keep its colour any other than blue • Place it on shelves in Laundry Section

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