CASE STUDY

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(Case developed by Prof. Harsh V. Verma, FMS, University of Delhi for Reckitt Benckiser India
Limited)

The still in the room was palpable. The fluttering of papers on the table created noise, which usually
went unheard but could now be heard loud and clear. The meeting last evening with the marketing
director had some unsettling effect on the brand manager of Vanish which sent hi m in a deep
thinking mode. How can the penetration level of the brand, which enjoys leadership position
worldwide in stain remover market, be increased? Even after four years of its launch it continues to
struggle with abysmal house hold penetration level of 1.1%.

Working with a company like Reckitt Benckiser (RB) in India was a great thing for here was an
organization which led the categories it operated in. Name a category in which RB operated, try
naming its leader and it would be an RB brand. This is what people in Reckitt¶s 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 become a top seller. The meeting last evening was
about the brand which had underperformed compared to other brands in the company¶s portfolio,
like Dettol, Harpic and Veet.

The brand manager reclined the seat to have a more comfortable posture, simultaneously turning it
towards the large window which allowed a peek outside. This probably was much more than a
simple gesture to get some physiological comfort, rather an inner urge to get some out of box ideas
to turn the performance of his baby Vanish around.




RB is not an ordinary company. It is an extraordinary business organization with worldwide

leadership position in household cleaning. The Indian arm Reckitt Benckiser India Limited is a fully
owned subsidiary of RB. Prior to 1999 the Indian firm was known as Reckitt Colman, which was
rechristened as Reckitt Benckiser after Reckitt¶s merger with Benckiser NV The company is truly
global with its operations and sales spread in sixty count ries and revenue in excess of $6.5 billion
last year. The last couple of years have not been favorable to the businesses worldwide, especially
in Europe and US. The economic slowdown affected one and all, irrespective of the nature of
business. All this notwithstanding, RB exhibited very strong financial performance. The net revenues
grew by a decent 13 per cent to ¼ 6563m in 2008. The brilliant showing was a testimony to the
ability of the managers of the company to navigate the company successfully even during turbulent
times. This demonstrated that ultimately it is the strategy and its execution that matters and the
leadership and employees are the driving force behind any system.






The Indian counterpart, Reckitt Benckiser India Limited (RBIL), is a multi -product company which
operates in several markets. These include personal care, pest control, shoe care, antiseptics,
surface care and fabric care. Some of the well known brands in the company¶s 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 reasons behind the success of these brands is product innovation and
quality which allow customers to get superior product benefits compared to other competing
products. Marketing equally plays an equally important role in brand-building efforts.

Reckitt is one of the fast growing companies in India. Its growth is fueled by hugely successful star
brands. For instance, Dettol, once known to be µthe¶ antiseptic liquid product in India to be applied
for minor nicks and cuts, has evolved into a powerful brand concept. Now Dettol brand stands for
much more than antiseptic liquid and supports products in other categories like soap, hand wash
sanitizers and shaving cream. 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.
Accordingly, Cherry Blossom enjoys strong brand equity both with its busin ess partners and the
ultimate end customers. Harpic toilet cleaner, like other brands, has a long history. It was first
launched in England in 1920. This brand enjoys a strong position in the toilet bowl cleaner market as
a strong powerful cleaner.

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




Technically, a product is nothing more than the sum of its parts or components or ingredients. And
this sum of parts may be the creation of an extraordinary genius, but is of little worth if it does not
solve a customer problem. Stain remover, like others, is a product which embodies a great useful
functionality of getting rid of stains from clothes. Th e idea behind the stain remover is that as long
as people wear clothes and use fabrics they can not escape stains. People struggle to avoid stains,
but this avoidance is never hundred percent successful. And this is where an opportunity for a stain
remover is germinated. Thanks to mud, oil, grease, coffee, dust and food that soil clothes!

Vanish is a product meant to remove stains. This is to be used as an additive to detergent. The
product¶s superiority is vouched by the fact that this is the number one in fabric treatment category
worldwide. Vanish was the first brand of stain removers to have been launched in India, in 2005,
and thereby creating the category of stain removers. Although the market for stain remover s is sti ll
small but Vanish enjoys the leadership position with a close to 50% market share. Brands which
create categories often 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 its
category.

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

 







Detergents and washing soaps is a big market in India. For washing, housewives use detergents in
different forms like powders, liquid and bars. The detergent category is apparently divided vertically
into three categories: the compact or premium, mid value and economy segments. The top end of
the market, the compact category, is dominated by brands like Surf and Ariel. In the middle
segment brand like Rin and Tide wrestle with each other and in the economy category wheel,
Nirma, Ghari, Sasa, Hippolin, 555 and a host of other local brands fight for a slice of the market.

Apparently, detergents and stain removers are two different products. Chemically these are two
different formulations. And in terms of their functionality, these also perform different functions
and utilities. One gets the dirt out and cleans the clothes while the other removes the 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 in marketing and brand building.
Typically detergent brands are marketed with propositions including stain removal. And often the
core value proposition of detergent brands tends towards the stain removal feature. HUL -brand
Surf once ran a campaign with the statement m

  

(you will keep searching
stains) and its current m



 (stains are good) campaign also focuses on stains. Thus,
direct or indirect referencing of stains is very 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 other high -end
detergents)
Dirt grim and regular stain removal and whiteness (Wheel, Nirma and other popular
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 including HUL, P&G
and Henkel. Accordingly detergent market is intensely competitive space. This necessitates
companies to invest substantial amount of resources on both product development and marketing.
Consequently, detergent brands attempt to add value to their core utility of cleaning with things like
stain removal, fragrance and water saving. With the most common among these strat egies being
the stain removal. This marketing approach 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) then what is the need for an additional product given solely to stain removal. It is a
difficult situation for a brand like Vanish. The competitive intensity in the detergent market is
forcing detergent brands to expand the value to fight with ea ch other. The promised detergent
functionality and benefits is spilling into the category of stain removers, which Vanish has created
and seeks to dominate. The following are the samples of different detergent brands¶
communication:

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2009: Key claim: Removes tough difficult stains
Benefit: Complete stain removal
Key stains: Coffee, Grease, Pickle, Mango
2010: Key claim: No stains, no germs
Benefit: Oxygen power and anti-bacterial neem
Key stains: No stain story


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2009: Key claim: Tough stain removal
Benefit: Complete assurance of stain removal
Key stains: Ink, Mud/Grime, Orange juice, mustard, ketchup, curry, grease, pickle
2010: Key claim: Tough stain removal
Benefit: Removes stains in 1 minute
Key stains: Ink/water colour

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2009: Key claim: Removes set in stains, No need to rub bars
Benefit: Stain removal, clothes shine like diamonds
Key stains: Oil, Food, Pickle, Fresh curry, mustard, ketchup
2010: Key claim Doesn¶t let stains set -in, so they go easily
Benefit: Stain removal
Key stains: Rust


Key claim: Double whiteness
Benefit: Whiteness with proof
Key stains: Dirt, Cuff/Collar grime


Key claim: Whiteness only with Tide
Benefit: Whiteness that gives shine
Key stains: Dirt, Mud, Grime

$
Key claim: Removes dirt, stains without sweating
Benefit: Value, less effort
Key stains: Dirt
As long as customers see detergents offering the benefit of stain removals, the market for Vanish
will be adv ersely affected. The challenge is how to get consumers to believ e that Vanish gives them
something that detergents do not.


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

Till the end of 2009, after the four years of its launch, the brand has not been able to achieve higher
levels of market penetration. It current penetration level is a mere 1.1% of all -India HH. Confronted
with this reality, the brand team of Vanish has been putting all efforts they could to achiev e higher
penetration of the product in Indian households. One of the recent outcomes of this endeavor has
been to get into consumer homes by inducing trials.

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µMarketing a product like stain remover requires deeper understanding of the context in which it is
used by the consumers,¶ feels one of the members of the marketing team. Therefore, the target of
achieving greater penetration levels to build volumes must begin with understanding the total
backdrop in which stain remover is placed. The strategy must be built on consumer insights µ
consumer would walk down the store and ask for Vanish only when first the product and then the
brand is perceived to be relevant and meaningful in their life context,¶ asserted the member of the
marketing team. Driven by the motivation of gaining deeper understanding of the fabric care
phenomenon, a research was commissioned which threw up several interesting facts:

°
 
 : on the question how clothes are actually washed by people the research
revealed that it is done by hand. The following figure shows methods used by people in washing.
`   : Washing by hands is a common phenomenon in India. People do is for several reasons.
The following table lists the reasons for washing by hands.

 

    : Stains are the obvious targets to removal for Vanish. The
presence of stains in consumer life is the reason for the existence of a product 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 the dimensions of incidence and annoyance. The mapping is given as under:

±
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 by consumers using both
home remedy and specialized products. The use of some specialist stain remover treatment in
households was found to be 42% in Delhi, 23% in Chennai, 28% in Kolkata and 20% in Mumbai.

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: the brand Vanish can move up on
the sales ladder only when the idea of using a specialized stain remover product is perceived
necessary. Although the incidence of stains is a pervasive phenomenon 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 not using the specialist stain removers were probed. The
following responses were found on the question µwhy do you never use specialist stain removal
products?¶


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Too expensive 28
I don¶t believe they work 21
Spoils the clothes 21
Rinsing/brushing straight away is the most effective way 18
Didn¶t know products existed to treat stains 17
Haven¶t felt the need for one 16
Laundry detergents are sufficient 15
Affects color of the clothes 15
Harsh on skin 13
I rarely have stains on clothes 12
`   

 : the customers were further probed on the issue as to why they do not
use Vanish. The following data was generated in response to the question µWhy do you not use
Vanish?¶


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Too expensive 42
I don¶t know what they do 16
Harsh on the skin 14
I don¶t believe they work well 14
I don¶t have a use for their products 13
I don¶t¶ know/ when to use them 11
Not environmentally friendly 10
It is too aggressive/ harsh on my clothes 9
Not safe for children¶s clothes 8
Damages color of the clothes 8
Not available where I usually shop 6
Contains too many chemicals 5
Spoils the clothes 5
No particular reason 26

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   on the issue of how effective is the consumer¶s
current method of stain removal two questions were asked to discover the reality. First do stains
still remain even after consumer has treated them and second if the stains still remain even after
their removal treatment what steps to do they take to get rid of them.

44% of women find stains cease to exist after their treatment but 56% find the stains to be still
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 respondents

Wash items again by hand 54
Use laundry blue 42
Scrubbed/soaked them 29
Use laundry bleach 27
Do nothing- live with stains 24
Wash item again by machine 20
Tried a different pre-treatment product 19
Nothing- decided not to use/ throw away 19
Used fabric whitner 16
General household chlorine bleach 13
Treatment carried out after washing 11
Tried different in-wash product 9
Items taken to a professional cleaners 3
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The brand manager while looking out of his window and staring into wintry haze was struck by the
observations made by various marketing team members in the last meeting.

µLow penetration of products specially formulated to remove stains is a major obstacle to Vanish
garnering more volumes. It is further compounded by the low per capita consumption¶, opines one
member of the marketing team ( The data on the stain remover category penetration are given in
the exhibits.

µThese bar diagrams under different headings/ titles are provided to us by the research company
but these require serious interpretation then only meaningful inference can be drawn,¶ says another
member of the team µThere are strategies which most managers employ and then there are
effective strategies which only a few managers use. This is what marks crucial difference between
high and low performance. Great strategies are based on insights which require out of box thinking,¶
he added.

He remembered a new management trainee who happened to be part of the meeting having
reluctantly observed, µThe research inputs provided to us by the marketing research company
apparently look complete but simply questioning the users or non users as to why they use a
product or why they don¶t often does not reveal the true consumer reality It may require more
indirect probe to fully appreciate the psycho-social context in which consumption occurs¶


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In March 2010, a complete re-launch of the brand was done again. This time the marketing of the
brand was revamped. Specific and concrete changes were executed in marketing mix elements:

: new formula was created that ensured better stain removal benefi t in order to reinforce its
superiority over detergents



 : packaging was redesigned to convey superior stain removal efficacy and use instructions
in simplified manner


: lower price packs to induce trails (120 gms @ Rs 35 was replaced with 90 gms @ Rs 29)





: celebrity endorsement route was adopted and actress Sridevi was used in brand
communication

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: the brand¶s advertising focused on establishing the functionality (superior stain
removal) and its relevance for the consumer (housewife¶s victory over her battle with stains)

The lower penetration level of Vanish continued to bother the brand and marketing team of Vanish.
A case was built with in the company which suggested that if the brand needed to achieve higher
household penetration levels it must strategically address some of the critical issues. Many opinions
and observations flashed in the mind of brand manager:
µThe brand must be strongly differentiated from detergents otherwise consumer would continue to
use stain removal from detergents¶.

µThere is a need to establish brand¶s equity as stain removal expert- expertise positioning.¶

µC onsumers must perceive value for money in the product. The higher price point discourages trial.´

µThe brand must forge emotional hooks and create relevance not only in terms of stain removal
(functionality) but also emotionally ¶

Consumers must see a need for a specialist stain remover in their laundry.

But the challenge still confronted him

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

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