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RIN Detergent – To Position or Reposition
Management Dilemma: To Position or Reposition
• LBPL a subsidiary of Lever Brothers International produced and marketed a variety of consumer products in Pakistan.
• Product line consisted of items shampoos, skin and shaving creams, edible oils, margarine, toilet soaps, scourers, and laundry detergents in powder and solid bar forms.
• RIN was a solid, blue NSD bar introduced in 1984.
• Increase in 1988 market share compared to 1987– The laundry soap - 5%– NSD detergent - 12%– NSD bar - 29%
• Dilemma– Suspicion that RIN was primarily being used for dish washing
Case Snapshot
• Several consumer promotion schemes were used for RIN but none of them was successful
– A Rs 0.50 price-off campaign – 1984
– Discount of Rs 1.00 on two RIN bars on submitting newspaper coupons – 1985
– Promotional shows and demonstrations
• Post 1985 no consumer promotion scheme given.
Consumer Promotions
• Trade promotion schemes were also used for RIN but the sales picked only till the time the promotions lasted (40-60% more orders)
– e.g. One free bar for every dozen bars– Lasted 2-3 weeks, – Offered 2-3 times in a year
Trade Promotions
• Positioning is a marketing concept relating to a process of creating an image of the product in the minds of the consumer or in other words create a niche market for itself.
• Repositioning is changing the position of the product in the market/consumer’s mind– E.g. Dairy Milk repositioning to Adults
Positioning vs Repositioning
• Positioning is a marketing concept relating to a process of creating an image of the product in the minds of the consumer or in other words create a niche market for itself.
• Repositioning is changing the position of the product in the market/consumer’s mind– E.g. Dairy Milk repositioning to Adults
Positioning vs Repositioning
Option Details Focus Assumptions Cost Implications Priority Verdict
Option 1 Rin as Fabric + Dishwasher
Both usage targeted
Will uniquely re-position and differentiate RIN from competing products, Caters full customer base
-Least-Only advt, and packaging
4
Option 2 Rin as Fabric Washer Only
Maintain Current Brand Focus
Reinforces current Brand position, Also Rin is the only NSD bar in the market
Expense on new packg and advt.
1
Option 3 Rin as DishWasher Only
Segment that is actually generating sales
Targets the actual customer, Brand to be repositioned
33% lesser variable cost.Expense on packg, advt, trade promotions
3
Option 4 Option 2 + Option 3
Both usage targeted with separate product
Competitive products for entire customer base
Doubles the cost of development, packaging, advt. and promotion
2
Positioning vs Repositioning Alternatives