RIN detergent positing or repositioning

Topics: Marketing, Laundry detergent, Detergent Pages: 7 (2119 words) Published: February 25, 2014

Rin DETERGENT CASE
RIN DETERGENT: TO POSITION OR REPOSITION

Section - A
Group - 12
Write up # 2

Submitted By:
Roll Numbers: 34015
34016
34048
34122
34142

Total Words - 1623

Executive Summary
Case describes the introduction of Rin laundry detergent bar of lever Brothers Pakistan Limited. In initial days (1984) the sales of the detergent bar was far below the expectation regardless of many promotional activity of the product. General Manager Mustafa anticipated that it may be because of the vague advertisement and blue color associated with the bar. The problem may be the advertisement of Rin which portrays it as better than laundry soap so customer relates Rin from dish wash (which is considered superior product in the market). Then in June 1986 Rin was re-launched to focus on the target group where in a new advertisement campaign was started and resizing of the product was done. Mr. Mustafa now realized that despite of achieving the satisfactory sale in 1988 Rin was primarily perceived among the customer as dish washing soap not as a laundry detergent bar. Research Bureau of Lever in 1988 had shown that approximately 65 % of the respondents (half of them were regular Rin customer) used the product for dish wash instead of laundry. The decision problem before the Manager Mustafa was how to position Rin in the Pakistani market to build long term brand loyalty as well as a profitable business for the Levers. Rin was a non-soap detergent bar and a fabric washer that gives consumers a superior cleaning power with much less effort than other laundry bars in the market. But the main sales are coming from dish wash segment which shows that dish wash segment is easy to penetrate. Customer in this segment could be attracted towards a good product if the product delivers requisite value at appropriate price. Establish Rin as fabric washer and launch other variant of Rin bar in the dish washing segment is the best option as it will allow levers to enter in niche segment (NSD bar) and in long term will certainly give the advantage of early bird. This segment have small base now but is growing at rate of 29% and Rin is the only brand selling in this segment, so it must adhere to the this market and make its stronghold in due course with little change in the look of the wrapper and advertisement of the product . On the same time the market now can be captured through dish washing segment. Rin already tried to enter this segment with liquid wash but failed. The market is not yet very matured of the liquid wash. It is good that Rin discontinued liquid wash because launching two niche products can put extreme constrain on the finances of the company. So now Rin should launch the dish washing bar which will cost less than Rs 25(after reduction of 33% variable cost) to penetrate the market and make a stronghold of the brand in the mind of people of Pakistan. Such strategy will require the restructuring of the product line but will result in better market penetration and creating value for the customer. Hence in long term Rin with fabric as well as dish wash will lead to the creation of loyal customer.

Situation Analysis:
In initial days (1984) the sales of the detergent bar was far below the expectation regardless of many promotional activity of the product. General Manager Mustafa anticipated that it may be because of the vague advertisement and blue color associated with the bar. The problem may be the advertisement of Rin which portrays it as better than laundry soap so customer relates Rin from dish wash (which is considered superior product in the market). Then in June 1986 Rin was re-launched to focus on the target group where in a new advertisement campaign was started and resizing of the product was done. Mr. Mustafa now realized that despite of achieving the satisfactory sale in 1988 Rin was primarily perceived among the customer as dish washing...
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