Vanish- Challenge of removing stains and banishing detergents

(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 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 him in 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 trying naming the leader and it would be a 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
top seller. The meeting last evening was about the brand which underperformed
compared to other brands in the company’s portfolio like Dettol, Cherry and Colin.

The brand manager (name) 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.

The Pride

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 RB’s merger with
Benckiser 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 the
US. The economic slowdown affected one and all irrespective of the nature of business.
But all this notwithstanding RB exhibited very strong financial performance. The net
revenue grew by a decent 13 per cent to 6563m euros in 2008. The brilliant showing was
a testimony to company’s managers for their ability to navigate the company successfully
even during turbulent time. This demonstrated that ultimately it is the strategy and its
execution which matters and the leadership and employees are the driving force behind
any system.

Indian Operations

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The Indian counterpart, Reckitt Benckiser India Limited (RBIL) is the multi-product
company which goes into several markets. These include personal care, pest control, shoe
care, antiseptics, surface care, and fabric care. Some of the well known brands in
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 the product innovation and quality which allow
customers 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 hugely
successful star brands. For instance Dettol once known to be ‘the’ 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 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. Accordingly
Cherry Blossom enjoys strong brand equity both with the business partners and ultimate
end customers. Harpic toilet cleaner is also like others is a brand with long history. It was
first launched in England in 1920. This brand enjoys a strong position in toilet bowl
cleaner market as a strong powerful cleaning positioning.

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.

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 it
does not solve a customer problem. Stain remover like others is a product which
embodies a great useful functionality of getting rid of the stains from clothes. The idea
behind the stain remover is that as long as people wear clothes and use fabrics they can
not escape stains. People on the one hand 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 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 the
detergent. The product’s superiority is vouched by the fact that this is number one in the
fabric treatment category worldwide. Vanish was the first brand of stain remover brand to
have 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 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 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 consumer can get rid of stains from their fabrics
and carpets right in front of their eyes. The product comes in two application formats-the
in wash and pre-treat.

Stains, detergents and washing bars

Detergents and washing soaps is a big market in India. For washing housewives use
detergents in different forms like the powders, liquid and bars. The detergent category is
apparently vertically divided into three categories: the compact or premium, mid value
and economy segments. The top end of the market is dominated by brands like Surf and
Ariel in the compact category. 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 host other local brands fight for a slice of the market.

Apparently detergent and stain remover are two different products. Chemically these are
two different formulations. And in terms their functionality these also perform different
functions and utilities. One gets the dirt out and cleans the clothes and 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 to
the stain removal. HUL brand Surf once ran a campaign with a statement ‘daag dhoonte
reh jaoge’ (‘you will keep searching stains’) and its current ‘stains are good’ campaign
also focuses on stains (‘daag acche hai’). 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 (Wheeel, 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 value add to their

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core utility of cleaning with things like stain removal, fragrance, and water savings. And
the most common among these strategies 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 to stain removal. It is difficult situation
for a brand like Vanish. The competitive intensity in the detergent market is forcing
detergent brands to expand value to fight with each other. The promised detergent
functionality and benefits is spilling into the category of stain remover category which
Vanish has created and seeks to dominate. The following are the samples of different
detergent brands’ communication:

Henko
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

Surf Excel
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

Ariel
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

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

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

Wheel

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Key claim: Removes dirt, stains without sweating
Benefit: Value, less effort
Key stains: Dirt
As long as customers see detergents offer benefit of stain removal the market of Vanish is
adversely 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 Vanish
Shakti 02. Within two years in June 2007 the brand the company re-launched the brand
with new improved formula adding the word ‘Max’ 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 brand has not been able to achieve
higher levels of market penetration. It current penetration level is mere 1.1% of all India
HH. Confronted with this reality the brand team of Vanish has been putting all efforts
they could to achieve 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.

Context of washing and research findings

‘Marketing a product like stain remover requires deeper understanding of the context in
which 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 begin
understanding 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 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 research was
commissioned which threw up interesting facts:

Method of washing: 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.

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 Washing by hand is most common in India.
67% amongst people with maid Mean number of
70% amongst SEC A washes per week

Machine Wash Hand wash

Total 12.6 15.6

Median
Once a day Once a day Once a day Once a day Once a month Less often than
values 3 or more times a day2-3 times a week once a month

Lower incidence of washing machines

Reasons: Washing by hands is a common phenomenon in India. People do is for a

several 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 40
When the clothes can be washed by hand only 39
When washing delicate garments such as lingerie / hosiery 29
When the colours of the garment bleed 27
When I don’t have electricity 26
When the wash load is too small for the washing machine 25
When the clothes are not very dirty 23
When I have a very tough stain that requires scrubbing by
22
hand
When washing baby’s/ children’s clothes 22
When it’s more hygienic 20
Because garments can be stretched/ loose their shape in a
18
washing machine
Because it’s better for the environment 16
Because it uses less energy/ water 16
Because I get a better quality wash when wash by hand 15

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When I don’t have time to wait for a full washing machine
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cycle
When I don’t have running 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 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:

Tea is her most frequent and most annoying stain…

Low Incidence Food Stains– experience every/most High Incidence

High Annoyance washes vs very annoying High Annoyance

Tea
Baby Formula / Food
Fruit Juices/ Coffee
Sauces/Condiments
Very annoying

Curry / Other Spices

Butter/Oil
Other food / drink Greasy food stains / Chocolate
Fruit
Red Wine Vegetable
Egg Cooking Sauces
Jam/Spread Cola/Soft Drinks
Dairy
Ice cream

Low Incidence High Incidence

Low Annoyance Low Annoyance
Experience every/most washes
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?

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 … along with cuffs / collars and dirt / mud

Low Incidence Non-Food Stains– experience High Incidence

High Annoyance every/most washes vs very annoying High Annoyance

Cuffs & Collars

Ink/Marker
Blood Grease/Motor Oil Dirt/Mud
Paint/ Varnish Grass Stains
Very annoying

Mould/Mildew
Hair Dye Rust
Vomit Deodorant
Medicines Baby Stains Sweat
Other non food stains Lipstick/Cosmetics
Other body fluids Toothpaste
Pollen/Flowers

Low Incidence High Incidence

Low Annoyance Low Annoyance
Experience every/most washes
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?

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.

Reasons behind non-usage of specialist stain remover products: 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 ‘why do you never use specialist stain removal products?’

Reasons % of total market

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

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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 why
they do not use Vanish. The following data were generated in response to the question:
‘why do you not use Vanish?’

Reasons % of total market

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

Customer treatment of stains and its effectiveness: 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

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General household chlorine bleach 13
Treatment carried out after washing 11
Tried different in-wash product 9
Items 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 was
struck by the observations made by various marketing team members in the last meeting.

‘Low penetration of products specially formulated to remove stains is a major obstacle to

Vanish garnering more volumes. It is further compounded by low per capita
consumption’, opines one member of the marketing team. The data on the stain remover
category penetration are given in the exhibits.

‘These 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. ‘There 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, ‘ the 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’.

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 mix
elements:
Product: new formula was created that ensured better stain removal benefit in order to
reinforce its superiority over detergents
Packaging: packaging was redesigned to convey superior stain removal efficacy and use
instructions in simplified manner
Price points: lower price packs to induce trails ( 120 gms @ Rs 35 and 90 gms @ Rs 29
Building recall: celebrity endorsement route was adopted and actress Sridevi was used in
brand communication
Advertising idea: 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)

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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:

‘The brand must be strongly differentiated from detergents otherwise consumer would
continue to use stain removal from detergents’.
‘There is a need to establish brand’s equity as stain removal expert- expertise
positioning.’
‘Consumers must perceive value for money in the product. The higher price point
discourages trial.”
‘The brand must forge emotional hooks and create relevance not only in terms of stain
removal (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 Metros
combined

Vanish Penetration & Consumption 2009 – Metros

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