43521772 brand management rooh afza
TRANSCRIPT
Presented By:Sumant Paul 09927824
Yogesh Sardana 09927825Shrey Sharan 09927826
S. Dinesh 09927829Ashish Rijhwani 09927910
Rooh Afza
Case Overview• Concentrated drink made from fruit juices, flower extracts,
common vegetables and hermetic Indian herbs.
• Invented by Hakeem Hafiz Abdul Majeed in the 19th century.
• Marketed by the Hamdard Laboratories, one of India`s largest health and wellness company.
• Maintained position in the market as a refreshing healthy drink
• Stiff competition lately
• Therefore, it needs to undergo rebranding and repositioning to face this competition and increase its market share.
CURRENT BRAND POSITIONING:
• Drink has been positioned as a refreshing and thirst quenching drink, which provides added nutritional benefits.
• The content of its advertising themes has been constantly changing its focus over time.
• Initially, the product was advertised as a relief from the energy sapping summers of northern India.
• Later it used the ‘natural’ plank to differentiate itself from the emerging fizzy drinks in the market.
• With the beginning of the 90s, the brand again moved to ‘oral re-hydration’ and started espousing its health benefits.
• In the latter part of the decade, the freshness, or ‘taazgi’, aspect became the central pillar for promotion with the health and values being moved to fine print.
Liquid
ROOH AFZATea CoffeeFuntional DrinksJuicesBottled
WaterAerated Drinks
Concentrates
ColdHot
RTD
Powdered
Industry Structure
Beverages
Alcoholic
• India as a country offers the highest
• 10% of the global beverage consumption, which is the 3rd largest
• The market is highly seasonal in nature with consumption varying from 25 million crates per month during peak season to 15 million crates during off season.
• The market is predominantly urban with 25 per cent contribution from rural areas.
• Coca Cola and Pepsi dominate the Indian soft drinks market.
India – Soft Drinks Market
Marketing Mix Product
herbal concentrate with a blend of
crystalline sugar, distilled extracts of
citrus, flowers, fruits, vegetables and other herbal
ingredients. lasting cooling
effectsthirst quencher
Price
Place Promotion
Marketing Mix
Product
PricePriced with a
Premium over direct
competitorsJustified and
accepted over the year given
its focus on health benefits
Place Promotion
Marketing Mix
Product Price
Place‘RoohAfza on
Wheels’Penetration in
South India is very less
Promotion
Marketing Mix
Product Price
Place
Promotion‘Summer Festival’mocktail tasting
countersdispensers around high Congregation
points including malls, highways,
hospitals and tourist spots.
Porter’s Five Forces
Competitive rivalry within the Concentrate Industry:
% Shares
RasnaRooh AfzaKissan TangOthers
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140
200
400
600
800
1000
1200
1400
1600
1800
2000
LiquidPowder
Rs M
illio
n
Forecasted
CAGR=3.9%
Concentrates’ Segment
Bargaining Power of Suppliers
•Do not hold much of the bargaining power. •Here, most important raw materials like sugar and packaging have lot of competition and substitutes. Thus, if the prices of one the option are low, an easy switch is possible. •Bottlers are important for companies, and most of the major players sign contract with bottlers, such that they cannot supply to any other manufacturer. •Thus, in this force, the manufacturers have a favorable position.
Threat of New Entrants
•Brand names of the existing players are well established. •Thus, threat from the entry of new brands as such is low. •But the problem here is that most of the established brands diversify in the soft drinks market, by product diversification. •Another barrier for new entrants is the high fixed costs for facilities and economies of scale. Because of this, new entrants cannot compete on price point.
SWOT
Strengths:•a unique brand recall•Consumer is becoming aware day by day, they are preferring natural products instead of artificial•Consistent growth of the industry
Weaknesses:•Seasonality of the product – positioned currently as a summer drink•The drink faces the threat of changing consumer preferences. Consumer wants readymade drinks. •Low association with other variants
It should hence capitalize on its image & introduce products like processed milk with Rooh Afza flavour.
It should go for brand extension & introduce few similar fruit concentrates as well as increase the flavours in the existing space.
Make Rooh Afza available in the form of a ready to drink preparation. This should be something similar to the canned juices & drinks.
Threats
Changing consumer life styles & preferences towards convenience.
A product with similar taste as Rooh Afza if introduced in the market in a canned format, Rooh Afza will even lose its existing market rapidly.
The product is not available easily. The brand promotion is not that strong. This may lead to diminishing brand recall as far as the upcoming generations are concerned.
Increase in competition
Opportunities Threats
SWOT
Critical Issues• Not ready to drink - Due to this the consumption is limited. It cannot be
consumed outdoors.
• Sweetness - amount to syrup used can well be adjusted to modulate the level of sweetness.
• Not modern - possesses a household image.
• Low awareness of the health benefits – people are not much aware of the health benefits of the drink.
STP Analysis – RTDMarket Target market Segments Target Segments
Beverages Thirst Quenching Drinks
Based on Customers:a. Place of Consumption: Indoor/
Outdoorsb. Attitude towards Health: Highly
health conscious vs. Low awareness
Health Conscious
consumers with preference for
indoor and outdoor
consumption
Based on Products: a. Cola based and other Soft drinksb. Squashes and other fruit extractsc. Herbal/Medicinal drinksd. Energy drinks (Gatorade/Red Bull
etc.)e. Drinks like Glucon-D, Glucovita etc.
Herbal/Medicinal drinks
Marketing Mix - RTD
ProductThe product can be made into a ready to drink form and sold in the market. In this way, it
can be consumed
easily, as the consumer habits are
changing and they do not have time to
make the drink. RTD should be launched with variant flavors
possibly including Sugar-
freeShould launch
in different sized packages (300 ml, 500ml,
1ltr).
Price
Place Promotion
Marketing Mix - RTD
Product Price
Place Promotion
Capacity of concentrate
Total RoohAfza
price of concentrated bottle (in Rs)
plastic bottle cost (incl distr. Cost)
750 7500 90 2RTD capacity (in ml)
Price (in Rs)
300 6
500 8
1000 14
Marketing Mix - RTD
Product Price
PlaceA strong distribution infrastructure should be established in case
a ready to drink version is released.
Pilot distribution geographies must be chosen and gradually
expanded.Its penetration South
India is very less. Customization in
terms of taste should be taken care of
before the product is introduced and it should be made available all over India, based in
demand. The RTD Rooh Afza
has to be made available at various
places such as:Railway stations,
Airports, Bus Stands, and College
Campuses etc. The accessibility should be
good.
Promotion
Marketing Mix - RTD
Product Price
Place
PromotionShould come up
with their exclusive outlets at selected
locations promoting different
ways of drinking Rooh Afza -
Mocktails ,shakesShould launch a
fresh advertisment campaign for RTD in order to attract
youth Promotional stalls
in populated places to allow people to
taste the new variant.
Promotional campaigns near sports academy
etc. to promote the new variant as a
energy drink.Sponsoring college
festivals and distributing free
samples of the new variant to the
studentsShould highlight
more on its Health Benefits