vanish case

8/8/2019 Vanish Case

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Vanish- Challenge of removing stains and banishing detergents(case developed by Prof Harsh V Verma, FMS, University of Delhi for Reckitt BenckiserIndia Limited)

The still in the room was palpable. The fluttering of papers on the table created noise

which usually went unheard could now be heard loud and clear. The meeting last eveningwith the marketing director had some unsettling effect on the brand manager of Vanishwhich sent him in deep thinking mode. How can the penetration level of the brand whichenjoys leadership position worldwide in stain remover market be increased? Even afterfour years of its launch it continues to struggle with abysmal house hold penetration levelof 1.1%.

Working with a company like Reckitt Benckiser (RB) in India was a great thing for herewas an organization which led the categories it operated in. Name a category in whichRB operated trying naming the leader and it would be a RB brand. This is what people inReckitts office at Gurgaon took pride in. But then this pride and pleasure also put a

strong burden on the managers. The implicit norm here was that each brand must becometop seller. The meeting last evening was about the brand which underperformedcompared to other brands in the companys portfolio like Dettol, Che rry and Colin.

The brand manager (name) reclined the seat to have a more comfortable posturesimultaneously turning it towards the large window which allowed a peek outside. Thisprobably was much more than a simple gesture to get some physiological comfort ratheran inner urge to get some out of box ideas to turn the performance of his baby Vanisharound.

The Pride

RB is not an ordinary company. It is an extraordinary business organization withworldwide leadership position in household cleaning. The Indian arm Reckitt BenckiserIndia Limited is a fully owned subsidiary of RB. Prior to 1999 the Indian firm was knownas Reckitt Colman which was rechristened as Reckitt Benckiser after RBs merger withBenckiser NV. The company is truly global with its operations spread in sixty countries,sales in 60 countries and revenue in excess of $6.5 billion last year. The last couple of years have not favorable to the businesses worldwide especially in the Europe and theUS. The economic slowdown affected one and all irrespective of the nature of business.But all this notwithstanding RB exhibited very strong financial performance. The netrevenue grew by a decent 13 per cent to 6563m euros in 2008. The brilliant showing was

a testimony to companys managers for thei r ability to navigate the company successfullyeven during turbulent time. This demonstrated that ultimately it is the strategy and itsexecution which matters and the leadership and employees are the driving force behindany system.

Indian Operations


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The Indian counterpart, Reckitt Benckiser India Limited (RBIL) is the multi-productcompany which goes into several markets. These include personal care, pest control, shoecare, antiseptics, surface care, and fabric care. Some of the well known brands incompanys portfolio include Dettol, Mortein, Harpic, Clearasil, Brasso, Cherry Blossom,Lizol, Disprin and Colin. And most of these brands enjoy top positions in their respective

markets. These are either number one or two in their categories. One of the reasonsbehind the success of these brands is the product innovation and quality which allowcustomers to get superior product benefits compared to other competing products.Marketing equally plays an equally important role brand building efforts.

Reckitt is one of the fast growing companies in India. Its growth is fueled by hugelysuccessful star brands. For instance Dettol once known to be the antiseptic liquidproduct in India to be applied for minor nicks and cuts has evolved into a powerful brandconcept. Now Dettol brand stands for much more than antiseptic liquid and supportsproducts in other categories like shaving cream, soap, hand wash and talcum powder.Cherry Blossom the shoe polish brand is leader in its category which has managed to

keep the competition at bay by careful maneuvering of the marketing space. AccordinglyCherry Blossom enjoys strong brand equity both with the business partners and ultimateend customers. Harpic toilet cleaner is also like others is a brand with long history. It wasfirst launched in England in 1920. This brand enjoys a strong position in toilet bowlcleaner market as a strong powerful cleaning positioning.

The companys products need wide distribution set up in order to reach to its targetcustomers. Some of the products typically fall in the fast moving consumer categorieswhich require servicing a wide market area. RBIL uses its common distribution channelsfor distribution of its products which enjoy wide and deep reach in Indian market. This isone of the important strengths of the company. The channel system of the company ismanaged by its well structured sales force which is accountable for ensuring supply andsales of companys entire product portfolio of more than one hundred and fifty stock keeping units.

The product

Technically a product is nothing more than sum of parts or components or ingredients.And this sum of parts may be creation of an extraordinary genius but is of little worth if itdoes not solve a customer problem. Stain remover like others is a product whichembodies a great useful functionality of getting rid of the stains from clothes. The ideabehind the stain remover is that as long as people wear clothes and use fabrics they cannot escape stains. People on the one hand struggle to avoid stains but this avoidance isnever hundred percent successful. And this is where an opportunity for a stain remover isgerminated. Thanks to things mud, oil, grease, coffee, dust, and food which soil clothes.

Vanish is product meant to remove stains. This is to be used as an additive along with thedetergent. The products superiority is vouched by the fact that this is number one in thefabric treatment category worldwide. Vanish was the first brand of stain remover brand tohave been launched in India in 2005 and thereby creating the category of stain remover


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market. Although the market for stain remover is still small but Vanish enjoys theleadership position with a close to 50% market share. Brands which create categoriesoften walk away with first mover advantage unless some lapses happen in marketing.Like other Reckitt brands Vanish lives up to the reputation of being the top brand in itscategory.

Globally Vanish is perceived to be a trusted stain removal expert. As brand the source of its trust is the expertise in stain removing from fabrics as well as carpets. Thanks to itsunique product formulation with Vanish consumer can get rid of stains from their fabricsand carpets right in front of their eyes. The product comes in two application formats-thein wash and pre-treat.

Stains, detergents and washing bars

Detergents and washing soaps is a big market in India. For washing housewives usedetergents in different forms like the powders, liquid and bars. The detergent category is

apparently vertically divided into three categories: the compact or premium, mid valueand economy segments. The top end of the market is dominated by brands like Surf andAriel in the compact category. In the middle segment brand like Rin and Tide wrestlewith each other and in the economy category wheel, Nirma, Ghari, Sasa, Hippolin, 555and host other local brands fight for a slice of the market.

Apparently detergent and stain remover are two different products. Chemically these aretwo different formulations. And in terms their functionality these also perform differentfunctions and utilities. One gets the dirt out and cleans the clothes and the other removesthe stains. And from a pure technical perspective these belong to two different categories.But what is inner reality is not the perceived reality. Both of these products intersect inmarketing and brand building. Typically detergent brands are marketed with propositionsincluding stain removal. And often the core value proposition of detergent brands tends tothe stain removal. HUL brand Surf once ran a campaign with a statement daag dhoontereh jaoge (you will keep searching stains) and its current stains are good campaignalso focuses on stains (daag acche hai). Thus direct or indirect referencing of stains isvery common in detergent brand building effort.

The detergent market can be viewed to be consisting of three dominant benefit segments:

Tough stain removal ( dominant brands include Ariel, Surf and Henko and otherhigh end detergents)

Dirt grim and regular stain removal and whiteness (Wheeel, Nirma and otherpopular detergents)

Brightness and dirt removal (Tide, Rin and other mid price detergents)

Detergent market is not only competitive but also a home for many big players includingHUL, P&G and Henkel. Accordingly detergent market is intensely competitive space.This necessitates companies to invest substantial amount of resources on both productdevelopment and marketing. Consequently detergent brands attempt to value add to their


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core utility of cleaning with things like stain removal, fragrance, and water savings. Andthe most common among these strategies being the stain removal. This marketingapproach of detergent marketers acts to preempt the market for a product like Vanish. If detergents offer a complete solution for their need (sought at the time of washing) thenwhat is the need for an additional product given to stain removal. It is difficult situation

for a brand like Vanish. The competitive intensity in the detergent market is forcingdetergent brands to expand value to fight with each other. The promised detergentfunctionality and benefits is spilling into the category of stain remover category whichVanish has created and seeks to dominate. The following are the samples of differentdetergent brands communication:

Henko2009: Key claim: Removes tough difficult stainsBenefit: Complete stain removalKey stains: Coffee, Grease, Pickle, Mango2010: Key claim: No stains, no germs

Benefit: Oxygen power and anti-bacterial neemKey stains: No stain story

Surf Excel2009: Key claim: Tough stain removalBenefit: Complete assurance of stain removalKey stains: Ink, Mud/Grime, Orange juice, mustard, ketchup, curry, grease, pickle2010: Key claim: Tough stain removalBenefit: Removes stains in 1 minuteKey stains: Ink/water colour

Ariel2009: Key claim: Removes set in stains, No need to rub barsBenefit: Stain removal, clothes shine like diamondsKey stains: Oil, Food, Pickle, Fresh curry, mustard, ketchup2010: Key claim: Doesnt let stains set -in, so they go easilyBenefit: Stain removalKey stains: Rust

RinKey claim: Double whitenessBenefit: Whiteness with proof Key stains: Dirt, Cuff/Collar grime

TideKey claim: Whiteness only with TideBenefit: Whiteness that gives shineKey stains: Dirt, Mud, Grime

Wheel


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Key claim: Removes dirt, stains without sweatingBenefit: Value, less effortKey stains: DirtAs long as customers see detergents offer benefit of stain removal the market of Vanish isadversely affected. The challenge is how to get consumers to believe Vanish gives them

something that detergents do not.The Launch

RBIL launched Vanish in India in 2005 in a powder format under the brand name VanishShakti 02. Within two years in June 2007 the brand the company re-launched the brandwith new improved formula adding the word Max to the existing brand name (VanishShakti 02 Max). The product was reformulated to give it more power so that even driedin stains could be easily removed. The product is an effective remedy for tackling thetoughest of stains.

Till the end of 2009 after the four years of its launch brand has not been able to achievehigher levels of market penetration. It current penetration level is mere 1.1% of all IndiaHH. Confronted with this reality the brand team of Vanish has been putting all effortsthey could to achieve higher penetration of the product in Indian households. One of therecent outcomes of this endeavor has been to get into consumer homes by inducing trials.

Context of washing and research findings

Marketing a product like stain remover requires deeper understanding of the context inwhich it is used by the consumers, feels one of the member of the marketing team.Therefore the target of achieving a greater penetration levels to build volumes must beginunderstanding the total backdrop in which stain remover is placed. The strategy must be

built on consumer insights. A consumer would walk down the store and ask for Vanishonly when first the product and then the brand is perceived to be relevant and meaningfulin their life context asserted the member of the marketing team. Driven by themotivation of gaining deeper understanding of the fabric care phenomenon research wascommissioned which threw up interesting facts:

Method of washing : on the question how clothes are actually washed by people theresearch revealed that it is done by hand. The following figure shows methods used bypeople in washing.


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Washing by hand is most common in India.

Once a day Once a day 2-3 times a week

Once a day Once a month Less often than once a month

Lower incidence of washing machines

Median values

67% amongst people with maid 70% amongst SEC A

Once a day 3 or more times a day

M ac hi ne W as h H an d w ash

Total 12.6 15.6

Mean number ofwashes per week

Reasons : Washing by hands is a common phenomenon in India. People do is for aseveral reasons. The following table lists the reason for washing by hands.

Reasons for washing by hands:All

Base: All using washing machine and hand wash %When you have to wash delicate fabrics such as wool or silk 40When the clothes can be washed by hand only 39When washing delicate garments such as lingerie / hosiery 29When the colours of the garment bleed 27When I dont have electricity 26When the wash load is too small for the washing machine 25When the clothes are not very dirty 23When I have a very tough stain that requires scrubbing byhand 22

When washing babys/ childrens clothes 22When its more hygienic 20Because garments can be stretched/ loose their shape in awashing machine 18

Because its better for the environment 16Because it uses less energy/ water 16Because I get a better quality wash when wash by hand 15


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When I dont have time to wait for a full washing machinecycle 12

When I dont have ru nning water available 10

Types of stains and consumer annoyance : Stains are the obvious targets to removal for

Vanish. The presence of stains in consumer life is the reason for the existence of aproduct like Vanish. And consumers do not want stains in their lives.How do stains on the clothes or fabrics arrive, what types of stains are frequently

occurring and how much annoying are these? The research mapped the stains on thedimensions of incidence and annoyance. The mapping is given as under:

Experience every/most washes

V e r y a n n o y i n g

Food Stains experience every/mostwashes vs very annoying

High Incidence

Low Annoyance

High IncidenceHigh Annoyance

Low IncidenceHigh Annoyance

Source: Q3p, Indicate how often you deal with each of these types of stains,Q3q, How annoying do you find each type of stain to deal with?

Sauces/Condiments

Tea

Cooking Sauces

Tea is her most frequent and most annoying stain

Low Incidence

Low Annoyance

Greasy food stains

Butter/Oil

Fruit

Baby Formula / Food

Vegetable

Dairy

Curry / Other Spices

Red Wine

Cola/Soft Drinks

/ Chocolate

CoffeeFruit Juices/

Egg

Other food / drink

Ice cream

Jam/Spread


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Experience every/most washes

V e r y a n n o y i n g

Low IncidenceLow Annoyance

High IncidenceLow Annoyance

High IncidenceHigh Annoyance

Low IncidenceHigh Annoyance

Source: Q3p, Indicate how often you deal with each of these types of stains,Q3q, How annoying do you find each type of stain to deal with?

Ink/Marker

along with cuffs / collars and dirt / mud

Non-Food Stains experienceevery/most washes vs very annoying

Vomit

Mould/MildewHair Dye

Blood Dirt/Mud

Cuffs & Collars

Deodorant

Lipstick/Cosmetics

Grass Stains

Baby Stains

Toothpaste

Grease/Motor Oil

Other non food stains

Rust

Pollen/Flowers

Paint/ Varnish

Other body fluids

Medicines Sweat

Stain remover product usage: stains being a common problem with different levels of annoyance households do use specialized products for this job. Stains are removed byconsumers using both home remedy and specialized products. The use of some specialiststain remover treatment in households was found to be 42% in Delhi, 23% in Chennai,28% in Kolkata and 20% in Mumbai.

Reasons behind non-usage of specialist stain remover products : the brand Vanish canmove up on the sales ladder only when the idea of using a specialized stain removerproduct is perceived necessary. Although the incidence of stains is a pervasivephenomenon yet the product usage is lower. This suggests the presence of some kind of barriers which prevent people from using the product. Accordingly the reasons for notusing the specialist stain removers were probed. The following responses were found onthe question why do you never use specialist stain removal products?

Reasons % of total marketToo expensive 28I dont believe they work 21Spoils the clothes 21Rinsing/brushing straight away is the most effective way 18Didnt know products existed to treat stains 17Havent felt the need for one 16Laundry detergents are sufficient 15Affects color of the clothes 15Harsh on skin 13


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I rarely have stains on clothes 12

Reasons for not using brand : the customers were further probed on the issue as to whythey do not use Vanish. The following data were generated in response to the question:why do you not use Vanish?

Reasons % of total marketToo expensive 42I dont know what they do 16Harsh on the skin 14I dont believe they work well 14I dont have a use for their products 13I dont know/ when to use them 11Not environmentally friendly 10It is too aggressive/ harsh on my clothes 9

Not safe for childrens clothes 8Damages color of the clothes 8Not available where I usually shop 6Contains too many chemicals 5Spoils the clothes 5No particular reason 26

Customer treatment of stains and its effectiveness: on the issue of how effective is theconsumers current method of stain removal two questions were asked to discover thereality. First do stains still remain even after consumer has treated them and second if thestains still remain even after their removal treatment what steps to do they take to get ridof them.

44% of women find stains cease to exist after their treatment but 56% find the stains to bestill present even after they are treated.

If the stains still remain after they have been treated what do women do to get rid of them? They resort to the following:

Steps taken % of respondentsWash items again by hand 54Use laundry blue 42Scrubbed/soaked them 29Use laundry bleach 27Do nothing- live with stains 24Wash item again by machine 20Tried a different pre-treatment product 19Nothing- decided not to use/ throw away 19Used fabric whitner 16


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General household chlorine bleach 13Treatment carried out after washing 11Tried different in-wash product 9Items taken to a professional cleaners 3

Market penetration of stain removers

The brand manager while looking out of his window and staring into wintry haze wasstruck by the observations made by various marketing team members in the last meeting.

Low penetration of products special ly formulated to remove stains is a major obstacle toVanish garnering more volumes. It is further compounded by low per capitaconsumption, opines one member of the marketing team . The data on the stain removercategory penetration are given in the exhibits.

These bar diagrams under different heading s/ titles are provided to us by the researchcompany but these require serious interpretation then only meaningful inference can bedrawn, says another member of the team . There are strategies which most managersemploy and then there are effective strategies which only a few managers use. This iswhat marks crucial difference between high and low performance. Great strategies arebased on insights which require out of box thinking, he added.

He remembered a new management trainee who happened to be part of the meetinghaving reluctantly observed, the research inputs provided to us by the marketingresearch company apparently look complete but simply questioning the users or non usersas to why they use a product or why they dont often does not reveal the true consumer

reality. It may require more indirect probe to fully appreciate the psycho-social context inwhich consump tion occurs.

The Way forward

In March 2010 a complete re-launch of the brand was done again. This time marketing of the brand was revamped. Specific and concrete changes were executed in marketing mixelements:Product: new formula was created that ensured better stain removal benefit in order toreinforce its superiority over detergentsPackaging: packaging was redesigned to convey superior stain removal efficacy and use

instructions in simplified mannerPrice points: lower price packs to induce trails ( 120 gms @ Rs 35 and 90 gms @ Rs 29Building recall: celebrity endorsement route was adopted and actress Sridevi was used inbrand communicationAdvertising idea: the brands advertising focused on establishing the functionality(superior stain removal) and its relevance for the consumer (housewifes victory over her battle with stains)


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The lower penetration level of Vanish continued to bother the brand and marketing teamof Vanish. A case was built with in the company which suggested that if the brandneeded to achieve higher household penetration levels it must strategically address some

of the critical issues. Many opinions and observations flashed in the mind of brandmanager:

The brand must be strongly differentiated from detergents otherwise consumer wouldcontinue to use stain removal from detergents .There is a need to establish brands equity as stain removal expert - expertisepositioning. Consumers must perceive value for money in the product. The higher price pointdiscourages trial. The brand must forge emotional hooks and create relevance not only in terms of stainremoval (functionality) but also emotionally.

But the challenge still confronted him.

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Exhibits

Market Size and Vanish share trends - Value

Figures at the top of the rows, in black & bold absolute value (Rs Mn) Figures in blue value share


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Any Stain Remover Penetration & Consumption 2009 Metros

Any Pre-Post Penetration & Consumption 2009 Metros


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Bleach Penetration


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Vanish Penetration & Consumption Trend 6 Metroscombined

Vanish Penetration & Consumption 2009 Metros

vanish case

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