Revamping Rasna

Submitted by :
Group 4:
Adithya Najunda
Apoorav Mahajan
Indrashish Ghoshal
Kabeer Singh
Preyas Patel
Vaibhav Agarwal
 Issues
• Analysis of Rasna’s initial success
• Causes of its loss in Market share
• Failure of products like Rasna Royal, Rasna
Aquafun and Oranjolt
• Factors leading to revamping of Rasna
• Revamping exercises
• Impact of new strategies
 Theory
• Brand positioning
• Product extensions
• Brand life cycle
• Product Life cycle
• Brand Revamping
• Product FUS
 Analysis
• Analysis of initial success:
– Environment :
• Huge untapped potential
• No major competitors ( Coca Cola left)
• Customers highly price sensitive
• Government policies leading to high entry barrier
• Customers preferred home-made potable and edible items
– Product Strategy
• Efficient Distribution Network
• Affordable
• Fruit like flavour
• Do it yourself type of product
• World class quality and packaging
• Extensive marketing (radio, tv commercials, sponsoring kid shows, trade fairs,
shop sampling, house to house calls, live demos etc.)
• Targetting children
Contd..
• Causes of loss in market share:
– Lowering of entry barriers
– Entering of new bigger players
– No proactive approach and stagnancy in strategy
– Changed consumer preferences
– Increase in prices
– Consumer awareness ( synthetic colours
considered unhealthy)
– Failed to sustain brand popularity due to decline in
promotional activities
– Change in target segment from children to families
Contd..
• Failure of products:
– Rasna royal: Higher price
– Aqua fun: Blue colour not suited to Indian
consumer’s taste
– Oranjolt:
• Refrigeration required
• Weak distribution and promotion
• Presence of established aerated orange drinks
Contd..
• Revamping exercises
– Renewed distribution strategy reaching across 7 lakh retailers
annually
– Positioned as a value added and low cost product
– Renewed Multimedia ads and promotion using tv, radio and print.
Focus on outdoor visibility.
– Campaigns highlighted affordability and easy availability. Also
campaigns were aimed towards every age group and every section of
society
– New tagline- relish a gain, indicating value as taste, lower cost as well
as its aspect of becoming a healthier drink . It also used leaf as the
new symbol to establish a new brand image.
– 2 different product lines – ‘utsav’ for rural population and ‘rozana’
targetting urban population and rozana international targetting
upper end
– It also introduced Rs 2 sachets to get consumers to become used to
its taste
Contd..
• Impact of new strategies:
– We disagree with their focus on all age groups
• We suggest retaining older target of children aged below 13
highlighting good fruity taste, health gains and lower cost
• These days different members of family usually have different
preferences and also since ready to use drinks are available at
competitive prices and also healthier drinks also readily
available in all sizes available, the so called gains of Rasna are
not really exclusive.
– It needs to think of more innovative to shift consumer
preferences from ready to drink to back to SDCs.
– Foray into food products a good idea but using the same
brand name is not.
 Application in Global context
• Social networking websites like Orkut.com,
hi5.com etc. in declining stage
• Bata shoes in India
 Application in Indian Context
• Lifebuoy soaps
 Learnings
• Targetting Specific segments instead of
targetting everyone
• Proactive approach towards market
• Making most of strengths like strong
distribution networks
 Issues
• Analyze the environment in which Pioma started selling Rasna
and highlight the reasons for brand’s runaway success. Do you
think Rasna is losing its stonghold in Indian beverages market?
• Critically comment on failure of products such as Rasna Royal,
Rasna Aquafun and Oranjolt. What were the factors that led
Rasna to go for a major revamping exercise for the brand?
• Discuss the initiatives taken by Rasna to rejuvenate its brand
with specific reference to positioning and advertising aspects.
In the light of changing market dynamics and intensifying
competition, will the current strategies help Rasna sustain its
leadership position?