case study RIN DETERGENT

1. CASE INTRODUCTION
 In early January 1989, Irfan Mustafa, General Manager,
Personal Products and Market Research, Lever
Brothers Pakistan Limited, was wondering what action
to take regarding the marketing of the laundry
detergent bar RIN, which had been introduced to the
Pakistani market in April 1984.
 The product was specially formulated and promoted as
a fabric washer. Mr. Mustafa felt the sales volumes for
RIN had reached reasonably satisfactory levels in 1988.
However, a recent survey confirmed his suspicion that
RIN was primarily being used for dish washing.

2. COMPANY
 Since the time Unilever Pakistan began its operations in
1948, the Company has been closely connected to the
Pakistani people and its brands have been an integral
feature in their daily lives.
 The company had a turnover of Rs. 23.3 bn (Euro 309
mn) in 2007, and enjoys a leading position in most of its
core Home and Personal Care and Foods categories,
e.g. Personal Wash, Personal Care, Laundry, Beverages
(Tea) and Ice Cream.

3. MARKET ANALYSIS (DETERGENTS)
 In 1988, the total fabric wash sale of 263,050 tones in
Pakistan consisted of247000 tones of laundry soap, 14500
of non soap detergents and 1550 NSD bars.
 The market for laundry soap, NSD detergent and NSD bars
grew by 5%, 12% and 29%.
 Lever had no entry in laundry soap segment, butt its two
brands of NSD powder surf and sunlight had captured 50%
of powder market.
 Liver did not have any formal product entry in dishwashing
market since late 1987. lever had introduced sunlight dish
wash in 1985 butt brand could not establish itself.

4. RIN
 Blue non soap detergent Introduced in 1984, and was priced to
sell at retail for 2.95 per pack of 130 gm.
 Rs 5 million promotion and advertising budget support the
introduction of the product in the market.
 “ A little amount of RIN washes a large lot of clothes”. This is the
main phrase of commercial.
 Sale of RIN in the first three years disappointed never crossing
700tones per year. In march the price of 130 gram packaging
raised to 3.15.
 In nov 2011, rin market share in pakistan was probably was
16.20% in which 41% sharing was of surf excel same company
unilever, and others were bonas, brite, express, wheel and etc
comprising of 14.63%.

5. PROBLEMS
 Several consumer production schemes were used for RIN but,
according to Mustafa non of then was successful.
 A Rs 0.50 price off campaign from august to December 1984
raised sale by only 10% against an expected 50% increase.
 A Rs 0.70 price of campaign was expected to increase sale by
50%, again only a 10% increase is sales assured.
 However in 1989 different consumer promotion schemes have
started.

6. PROMOTIONS SCHEMES 1984-1988
 Delivering of free samples of RIN to major cities of
Pakistan.
 In addition promotional shows were arranged and several
decorative items used in promoting RIN.
 In June 1986package size reduced to 125 gm and a new 250
gm size introduced.
 A new media campaign against laundry soups was
launched in which is well known movie star launch RIN.
 since the RIN was launched, trade promotion for the
product was limited to offer of one free bar for every dozen
bar ordered.

7.  RIN was currently distributed through 315 distributors to
60000 retail outlets in Pakistan.
 The retail margin had remained at 7.4% since the RIN was
introduced to market .

8. CURRENT PROBLEM
 In September 1988, Mr mustafa asked the domestic
research bureau of Lever to conduct a consumer survey.
 The survey cost 50,000 and conducted in 12 sample cities of
Pakistan.
 Only 50% of the respondent surveyed were using fabric
washing and 65% using it as dish washing.
 The result was that the RIN was primarily used for
dishwashing despite using for fabric wash.
 R&d department had informed to mustafa that eliminating
wash fabric from RIN would reduce its variable cost by 33%
without affecting its dishwashing performance.

9. Marketing strategy
 RIN have to adopt Market Repositioning
 Re-positioning involves changing the identity of a
product, relative to the identity of competing
products, in the collective minds of the target market.
 It involves:
 Using objectivity and creativity to develop the best
business repositioning strategies for your company
 Utilising careful market research and analysis
 Planning a product repositioning strategy
 Analysing strengths and maximising competitive
advantages

10. REPOSITION STRATEGIES
 Reposition brand internally
 Carry out consumer analysis
 Competitive analysis
 Fine tune your advertising strategy
 Create good relationship with trade partner and
channel members
 carry out assessment of brand position