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RIN Detergent To Position or Reposition Case Solution
Positioning is a concept on which the companies base their communication on. There have been many examples in history in which a brand was not producing satisfactory results because of incorrect positioning. In these cases, the companies resort to repositioning their brand. This repositioning allows them to gain the targets that it could not gain with the previous positioning. Repositioning includes changing the product, the communication of the brand, and the target audience. The case of RIN in the Pakistani market was the same. If the case protagonist considers the repositioning, it would be on all the factors mentioned. The market strategies from 1984 to 1988 showed that the market was not developed for NSD bars that presented a huge challenge for the company. The confusion was generated because of the common features of color, price, and the bar shape of the product.
Following questions are answered in this case study solution
Explain the difference between positioning and repositioning and discuss why marketing managers may regard repositioning a product necessary. Give an example.
Evaluate Leverʼs marketing planning and implementation regarding RIN from 1984 through 1988. Evaluate their positioning of RIN and use of the marketing mix to support it.
Case Analysis for RIN Detergent To Position or Reposition
1. Explain the difference between positioning and repositioning and discuss why marketing managers may regard repositioning a product necessary. Give an example.
The positioning of a brand involves the development of perception about a brand or product. The perception assessed is on the basis of the ‘position’ that a brand has in the minds of the target audience as compared to the competitor brands. Repositioning is changing the positioning of a brand. The reasons behind repositioning are usually the results that are not satisfactory. It is considered that the repositioning of the brand will produce desired results. It is the perception of the alternatives available to them in a single category (Beri, 2008).
Appropriate positioning of a product requires a thorough analysis of the market in which the product is offered. It includes the assessment of the competitors and the market’s acceptability for the product. The consideration involved in the positioning of a product includes differentiation strategies, general strategies, and mathematical evaluation. General strategies include the design of the product, the image of the product or the general perception about the product, and the technology used in production. The positioning of a brand impacts marketing as well as production costs. Marketing managers might reposition or position a product for the same causes (Pitsch, Schippers, & Schuh, 2014).
There are about nine reasons identified for the managers opting for the repositioning of the product. These reasons are based on the dissatisfactory results that are the core reason for repositioning. The first is to increase the brand’s relevance to the customer. Second, are the increasing occasions in which the brand is used. In this case, this is the primary reason for the decision faced to reposition. Others include developing a serious perception about the brand, declining sales, differentiation from other brands, and changing market conditions in which the brand operates (Beri, 2008). Repositioning is changing the communication of the brand. It means that all the offerings of the brand have to be changed according to the new positioning strategy. It can also include changing the target audience for the brand and altering the personality that the brand portrays through its communication (Temporal, 2011).
An example of repositioning would be Ray-Ban in India. When the brand entered the Indian market, it was perceived to be a very exquisite brand that upper-class people could afford. This perception had an effect on the sales of the product. As a result, it was repositioned to include low-priced variants. In this example the product offering is changed, the perception was changed from a high class to an average brand, and the target audience was changed from upper-class to middle-class individuals (Ramesh, 2008).
2. Evaluate Leverʼs marketing planning and implementation regarding RIN from 1984 through 1988. Evaluate their positioning of RIN and use of the marketing mix to support it.
RIN was introduced in the Pakistani market in 1984. The market statistics available for the soap, detergent, and laundry market of 1988 show that RIN was the only brand that offered the non-soap detergent (NSD) bar in the fabric washing category. Therefore, it can be evaluated that the product had low acceptability in the Pakistani market. This product was new and was priced at a level comparable to the NSD powders available in the market. The powders were priced at Rs 20 to Rs 48 per kg. The bars were offered in a 125-gram pack. It was priced at Rs 26 per kg multiplied for comparing purposes. The bar was priced at Rs. 3.25 for 125 grams.
Another evaluation is that the size of the NSD bar confused the audience who were used to purchasing fabric washing products in kilo sizes. The laundry soap and the NSD detergent category’s prices are given for a kilo which means that the offering was in kilos as well. Lever’s NSD powder segment had had 50% of the market share of that category.
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