RIN DETERGENT : TO

POSITION OR REPOSITION

GROUP 10 SEC C
OVERVIEW : FABRIC WASH MARKET
► 3 types of fabric wash product

► Laundry soap

► NSD Detergent

► NSD Bar

► Growth of NSD bar segment is 29% in 1988

OVERVIEW : FABRIC WASH MARKET
Fabric Wash Market Share
Laundry Soap NSD Powder NSD Bar

1%

5%

94%
OVERVIEW : DISH WASH MARKET

► 3 types of Dish wash product

► Hard soap

► Bar Detergent

► Liquid Dish Wash

► Total Market sales of 60000 TON

OVERVIEW : DISH WASH MARKET
Dish Wash Market Share
Hard soap Bar Liquid Dish Wash

0%

20%

80%
 OVERVIEW : PRICING
Price Range For Fabric Wash Price Range For Dish Wash
60 60

50 50

40 40

30 30

20 20

10 10

0 0
Laundry Soap NSD Powder NSD Bar Hard Soaps Bar Liquid Wash
OVERVIEW : PRODUCT INFORMATION-RIN

► RIN is only NSD bar in market

► RIN is solid blue NSD bar introduce in market in 1984

► Media advertising by thundering and lightning bolt

► Sales of RIN for first three years never crossed 700 ton.

► Failure of several consumer promotion schemes till 1985

► No consumer promotion scheme from 1985 to 1988

 OVERVIEW : DISTRIBUTION STRATEGY
► 12+1 scheme for traders

► Trade meetings

► 100% coverage in retail outlets

► 315 distributors to 60,000 retail outlets

► Good incentive for distributors like

► Increase in margin from 2.91% to 3.33%

► Travel expense reimbursement up to 0.2 % of retail value of goods

ordered

► No change in retailer margin

► Remain at 7.4 % of retail price

 RIN RE-LAUNCHED
► Introduction of 250 gm. size and 125 gm. size (130 gm. Size
discontinued)

► Reduction of variable cost of RIN by Rs1/Kg due to production

efficiency

► Launch of new media campaign against laundry soap

► RIN Portrayed as a superior washing product

► Cleaner

► Brighter

► Economical
 SALES GROWTH

Sales of RIN BAR

1800
1600
1400
1200
1000
800
600
400
200
0
1984 1985 1986 1987 1988
Target Sales volume Actual Sales Volume
 RIN RE-LAUNCHED CONTD.….
“you get much more out of RIN than you pay for.”

► Re-launch of RIN Was SUCCESSFUL with sale finally crossing

100O tons mark in 1987

► Still a far way to go to utilize 5000 tons plant capacity

► Consumer Survey conducted to ascertain consumer perception and

usages of RIN
 THE COMPANY’S DILEMMA

Consumer Survey Result (% of sample population)

70 65

60

50

40

30
20
20 15

10

0
Uses for soap
Solely use for Fabric Washing Solely use for dishwashing Use for both
 THE COMPANY’S DILEMMA CONTD..

Wrong Positioning of brand ???

► The colour of the bar

► First dishwashing bar introduced was blue in colour

► All the current dishwashing bars are also bluish in colour

► All existing laundry soaps are unwrapped and yellow or white in colour

► Wrong shelf positioning

► RIN was shelved with wrapped personal soap or complete separately

 FUTURE COURSE OF ACTION
► Reposition the existing product in dishwashing category

► Cost reduction by 33% will lead to higher profit margin

► Price can be reduced, however prices already lower then existing dish washer
products

► Try to know the consumer expectation from Fabric washing soap through
survey

► Launch new product in Fabric washing with different colour

► Proper shelving of product in retail outlets

► Name the new bar as SURF/SUNLIGHT to take brand advantage and to

show association with Fabric wash segment
 SUGGESTION FOR PROMOTION

► Start new campaign for both dishwashing and fabric washing

product

► Re-launch the promotional campaigns

► Introduce a trial bar with small size of fabric wash bar

► More advertisement on print media

► Provide incentives to retailers (like 12+1 scheme)

► Increase the retailer margin (not increased since introduction)

QUESTIONS ????
THANK YOU…..