RIN have been introduced in Pakistan in 1984. It was the only brand that was the non-soap detergent (NSD) bar for the fabric; this was the reason for its less likely acceptability of it in Pakistan. As it was a newly offered product and compared to other NSD powders. Powders charged the price of 20 to 80 per kg. Bars have been sold in the grams-pack. The bar charged the rice and 3.25 of 125 grams, the reduction in price also did not increase the sales as per expectation. Market share in 1988, laundry Soap- 5% NSD detergent-12% NSD bar-29%
Their thunder and lightning advertisement confused the
customers in relating it and when they increased the prices they did not
increase margins for the retailer.
The coupon scheme of wrappers was also unsuccessful and when they
increased the promotion it caused an increase in prices as well.
The blue color of their bar also caused confusion because
all the dish-washing bars were blue color.
The 26 price per kg was also higher than the comparable dishwashing
war charging 25-40 per kg.
Packaging was also not compelling because that looked like
that dishwashing,, not like fabric
washing that the company wanted to position itself.
What I would have done?
When I would have launched the NSD bar in Pakistan. First I
would have set the lower prices of it than 25 per kg
I would have set a color other than blue because of the
other blue dishwashing brands.
I would have advertised it in a compelling direction that
would have focused on the fabric-like component other than thunder because
people related the thunder with rain like they cannot wash in the rain.
My focus is on positioning it in the fabric category and
promoting it hugely in fabric-related ads.
Identify and evaluate the
alternative available to Mr. Mustafa. What would you do? Why?
As we know RIN was intended to
position for fabric washing but it was wrongly positioned for
dish-washing.
Alternative 1: first
alternative available to Mustafa is to position it now as dishwashing because 65% of customers buy it for the sake of dishwashing and 15% buy for
fabric washing and reaming for both purposes.
From the statistics, we can see that
65% of customers use it for the sake of dishwashing hence Mr. Mustafa should now
reposition it as a dishwashing NSD bar. As it would also reduce their variable
cost by 33% without affecting the dish-washing market share. This could be the
best alternative because it is already performing well
Alternative 2: The
second alternative is to continue it as both for fabric washing and
dish-washing but position it and promote it rightly. Change the color for
fabric washing other than blue, but keep the same blue color for dish-washing
as other dish-washing bars are also blue and at the time it has also better
performance as dish-washing. Also, change the packaging for the fabric but keep the same
for dishwashing. I mean Mr. Mustafa should carry on both but reposition it as a fabric-washing bar.
Alternative 3: the third
alternative could be to reposition it as a fabric washing bar and reduce the
performance of dish-washing by de-marketing it but to make some changes in the
fabric washing bar, in terms of packaging, pricing, color, and promotion. Like
using another color other than blue, reducing the pricing from 26 per kg,
changing its packaging, and promoting it rightly other than thunder and brightening,
brightening is ok but thunder is not ok because people have related it wrongly
with the rain.
What I would do and why?
I would choose the first alternative
of re-positioning it as dish-washing because it is used 65% for dish-washing,
15% for fabric and reaming for both. Hence from this statistics it can be
understood that 65% lot of times more than 15% hence it is rational and logical
decision to reposition it as dish-washing and also reducing the 33% variable
cost by discontinuing the fabric washing without affecting the dish-washing
performance. I would go for dish-washing alternative.