CASE STUDY ON REVAMPING RASNA

SUBMITTED BYABINAYA SHARIDEV S

KAVYA CKAYALVIZHI M

KAVYA CRAJENDRA PRASAD RP

SANTHOSH KSARANYA S

INTRODUCTION

Rasna is a soft drink concentrate brand owned by Pioma Industries which is based in Ahmedabad, India. Pioma launched SDC under the brand name Jaffe

in 1976 & marketed it with the help of voltas The brand name was changed to Rasna in 1979 First to introduce Dual Format Rasna claims 92.7% market share in non

carbonated soft drinks concentrate powder

ENVIRONMENT IN WHICH PIOMA STARTED SELLING RASNA

Pioma was the first company to introduce the concept of SDC in India.

Competitors like Cola and MNC cola prevailed in the market.

Untapped market potential. Closing of its operations in India due to

policy changes with regard to MNC’s operation in India.

REASONS FOR THE BRAND’S SUCCESS

Available in various flavors like Pineapple, Orange Mango, etc.

Do-It-Yourself concept. Real fruit like flavor and taste. Most affordable Drink available in the

market.( 50ps per glass)

RESEARCH AND DEVELOPMENT

Dedicated R&D team launching new flavors in quick succession.

Over the years new flavors were launched such as Kala Khatta, Khus, Rose.

Pilferage-Proof pack with moisture resistant lining thus retaining freshness and flavor.

SALES AND DISTRIBUTION NETWORK

Efficient sales and distribution network covering the entire country.

Easy accessibility. The company had 24 warehouses, 24

distributors and 200 stockists that served over 2lakh retail outlets indirectly via wholesalers.

CUSTOMER LOYALTY

Creative promotional activities that included › Shop sampling, House-House Calls, Live demo,

Retail window display, Gift offers to customers. Pioma participated in various exhibition and

fairs providing an excellent opportunity for direct interaction with the consumers.

It also helped the company increase its visibility in the rural market by distributing free product samples.

LARGE SCALE ADVERTISING

Large scale advertising on channels(Doordarshan).

It sponsored many programmes(spiderman) that appealed to children.

It had an extremely popular advertisement tagline i.e, “I LOVE YOU RASNA”

RASNA LOSING ITS STRONGHOLD IN THE INDIAN BEVERAGES MARKET

Although Rasna had a market share over 82% of the total SDC market in 2001 it gradually declined due to the following reasons.› Change in the dynamics of the market due

to liberalization in early 1990’s.(coca cola and Pepsi).

› Advent of fruit juice s in tetra packs and Aerated drinks in plastic bottles.

› Shift in consumers preferences towards ready to drink products.

RASNA MAKES UP TO THE CHALLENGE

Launched Rasna international , a pre-sweetened mix-and-drink and Rasna Royal a vitamin enriched version of Rasna SDC in 1996.

Priced high, targeted at the upper end of the market who were health conscious consumers.

Rasna Royal failed in the market whereas Rasna International became quite successful.

SUMMER OF 1999

Launched new flavors Rasna Yorker and Rasna Aqua fun.

These products were launched in order to exploit the Cricket World cup fever.

Kapil dev was brought in to endorse Rasna yorker.

BROADENING PRODUCT PORTFOLIO

In 2000, pioma broadened its product portfolio with its launch of Oranjolt.

It was an Aerated fruit drink available in 1.5 litre pet bottle.

FAILURE OF RASNA ROYAL

Strong positioning of Rasna SDC as a cost effective drink.

Priced RS.4 higher than the SDC version.

Inconvenience of preparing.

FAILURE OF RASNA AQUA FUN AND ORANJOLT

The failure of aqua fun was attributed mainly to its blue color.

This attribute was not readily accepted by the Indian consumers .

Launched oranjolt only in selected outlets.

Lower Shelf-life.

FACTORS THAT LED RASNA TO GO FOR A MAJOR REVAMPING EXERCISE

Sales volume reduced by 7% every year.

Steady increase in the price of Rasna SDC proved to be another hurdle.

Growing awareness among the consumers regarding difference between natural and artificial flavors.

Increase in purchasing power. Availability of more international

products in tetra packs.

STEPS TAKEN BY RASNA TO REJUVENATE ITS

BRANDPOSITIONING STRATEGY Positioned as an International brand Reached out to the masses and created brand

awareness in towns and remote villages. Laid emphasis on price range of 80ps per glass to

Rs.4 per glass. Placed Rasna international along with other

preparatory brands such as tang in the retail stores.

Brought out value added products for the existing consumers and implemented strategies to attract new consumers.

DISTRIBUTION STRATEGY

Planned to reach an estimated 7lakh retailers annually.

Strengthened its distribution channels in order to cover villages with a population of up to 5000.

Appointed 47 additional sales personnel, 350 cycle salesmen, 150 pilot salesmen, engaged 500 vans for the coverage of rural areas.

ADVERTISEMENT STRATEGIES

Advertisements were targeted at the urban and semi-urban families.

The company focused on multimedia advertising and promotions which included TV, Radio and print.

Advertising and promotional activities were undertaken by Mudra communications, a leading advertisement agency.

CONTD…

Emphasis was laid on outdoor visibility and over 45,000 bus shelters, 5,000 pole kiosks, 300 bus panels and over 200 bill boards were used to display the brand message.

Catchy Brand taglines like “WHENEVER YOU FEEL LIKE CELEBRATING, DRINK RASNA“ and RELISH A GAIN”

The advertising strategy was changed to include every age group and every section of the society.

CONTD…

It categorized its product line into two brands, Rasna Utsav , Rasna Rosana and sub brand Rosana fruit boosters.

For distinct visibility of its products Rasna chose the leaf as its brand symbol.

New brands were enriched with vitamins and ingredients to render instant energy.

Priced Rosana Amrit sachets at Rs.2 competing Sunfill and Tang.

RASNA – THE LEADER

The revamping exercise was fruitful Helped in retaining leadership , having

82% market share In 2002, Rasna was the most widely

distributed product Emerged as a Mass Brand across socio-

economic barriers Ranked 7th in F&B category in India, in

2002

SWOT ANALYSIS

STRENGTHS› We always ready to fight

with competition ATTITUDE› Strong brand name› most visible advertising Featured

many celebrities from the field of entertainment and sports Karishma Kapoor, AnupamKher, KapilDev

› Suits all classes of the society› Efficient sales and distribution

network

WEAKNESS› Takes extra effort to mix the

components to prepare› Has a synthetic image› Failed to understand shifting

preference towards ready-to-drink preparations.

› Major products of Rasna are seasonal.› Too many products ,may lose the

track

› OPPORTUNITY Opportunity to enter into ready drink section Entering into glucose section is definitely

a good initiative Entering into global markets Also concentrating on rural markets Mass market as a target

THREATS› Entrance of soft-drink brands like

Coke and Pepsi etc› Other competitor brands like

HUL,PARLE etc› Colas getting belligerent and their

prices coming down› New regulations & policies› Conceptual change

TOWS MATRIX

STRENGTHS

WEAKNESS

OPPORTUNITY

Prominent among all classes of society,due to its brand value, which creates opportunity to serve a large market

Many products are seasonal, this may create a sensation if marketed properly.

THREATS

High confidence level, “everything for everyone” attitude.

It is in the form of concentrate,lags behind ready to drink drinks and belligerent COLAS

BCG MATRIX

STRATEGIES BASED ON BCG MATRIX

BUILD – By increasing investment, pushing up Rasna Shake up.

HOLD – By not investing further on Rasna utsav.

HARVEST – Reducing investment and taking out maximum cash flow from Rasna utsav.

Divest – to release the money stuck from ice tea and Rasna jams.

Ansoff’s Matrix

Ansoff’s Matrix

Continuously adopting the Product Development strategy and providing a range of products from 1970’s.

Range varies from Rasna utsav to the Rozana line up.

Every product is aimed at a different audience.

Right from the start up, product differentiation is the tool.

Porter Competitive Model

Intra-Industry Rivalry

Strategic Business Unit

BargainingPower

of Buyers

Bargaining Power

of Suppliers

Substitute Products

and Services

PotentialNew

Entrants

This power was mostly minimal or absent because most of the raw materials were available abundantly.

Even If the materials are not available as such, through some manual or machine jobs it was ensured that it was available in surplus round the whole year.

Bargaining power of Suppliers

Buyers are the sole deciders of the fate of any product in the market.

If there is an increase in the price or if the quality is quite bad, then by all means they switch over to the substitutes.

Here, in this case, the main substitutes are COKE, PEPSI & the minor ones are TANG & SUNFILL.

Bargaining power of Buyers

Sunfill, Tang were the new entrants in the market against RASNA.

But from the case it is evident that RASNA had a whooping market share of 82% while the competitors shared the rest.

Hence the threat was minimal but it was inevitably present.

Potential New Entrants

Coke & Pepsi were the main substitutes.

People preferred the world famous brands which was ready made rather than products like RASNA which ought to be prepared.

Due to this there was a huge threat for RASNA & the dynamics of the market changed which resulted in the decline of RASNA’s market share.

Substitutes

Porter’s generic strategies

Cost leadership strategy

This strategy involves the firm winning market share by appealing to cost-conscious or price-sensitive customers

Rasna was introduced at oly 50 paise per glass

Still it is one of the soft drinks available at a cheaper price

The marketing mix of Rasna

PRODUCT: Rasna began with 9 flavours in 1982. it added 10th flavour

in 1987. the company was revamped in the year 2002. With a new tagline “relish a gain”, today rasna has tried a deep penetration in the rural and semi urban market.

Recent product line of rasna are: Rasna frootfun in various flavours Rasna fresh fun in various flavours

Packaging: The operating product line of

rasna consists several sku. The company follows different pack size on carton basis. This pack sizes may vary with the local market demand.

PRICE: Accessing all socio-economic class

Rasna being an Indian company from the very beginning of its lifecycle, its sole goal has been always to make profit with the volume sale. The pricing strategy has always been the key of Rasna’s success. It targeted the mass rather than the class.

Rasna has always made its product such an way that

it can be accessible to all socio-economic classes. The added sugar product Rasna Frootplus starts from

Rs 2 and goes upto family pack which costs Rs 105 The family box pack is available at the price of Rs 35

which is for 32 glass of water.

Promotion: adding an emotional touch

Rasna has started its media campaign heavily since its inception. The famous mass media campaign of “I love you Rasna” was one of the India’s longest running tv ad

Creating a strong brand value by emotionally attaching their customers with brand

In various ad campaign of Rasna, various child artists have been used heavily. Thiskind of campaign shows a high focus on quality. The quality of Rasna has beenreally the success factor and in there various advertisement they are heavilyfocussing on that part.

PLACE: DISTRIBUTION CHANNEL

The distribution channel of rasna follows 3 to 5 architecture . It follows the Supper-sub concept of distribution.

Product produced in the factory The packed products has been sent to various

company depot across the country From company depot it has been delivered to the

different supper stockist and then to wholesalers The secondary sales from the sub stockist is

ensured by constant monitoring

ENVIRONMENT IN WHICH PIOMA STARTED SELLING RASNA

Pioma was the first company to introduce the concept of SDC in India.

Huge Untapped market potential, with Coca-Cola, closing operations in India

No major players in preparatory SDC market.

CONCLUSION

Rasna was a pioneer in SDC segment in India

Still a market leader in the SDC segment and in-house consumption of soft drinks

Has one of the finest sales & distribution systems in India

Success in India, encouraged it to venture overseas

CONTD… Ruled the SDC market in India for

nearly two decades Complacency paved way for its decline Could not understand the changing

market dynamics immediately Failed to understand evolving Indian

lifestyle A complete restructuring helped it

regain its position

THANK YOU