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Rasna

Rasna

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Published by Nishant Upadhayay

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Published by: Nishant Upadhayay on Sep 09, 2010
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10/15/2012

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Abstract

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The case examines the market revamping exercise undertaken by Rasna Ltd., manufacturer of the leading soft-drink concentrate brand Rasna, in the Indian market. The case provides a detailed account of how the company built up the preparatory drink segment in the Indian beverages market by focusing on distribution, promotion and advertising. The problems faced by Rasna in the late 1990s that led to the decision of a marketing strategy overhaul have been examined. One of the revamping strategies of Rasna, in terms of new product launches, segmentation, pricing and advertising have also been discussed.

Issues:
» Understand the dynamics of the soft drink concentrate (preparatory) business as part of the Indian beverages market. At Rasna we are constantly looking at new innovations and strategies. Today, the per capita consumption of Rasna is 15 glasses and our vision is to increase the per capita consumption to 100 glasses by 2005 and to reach out to one billion Indians every year." - Piruz Khambatta, Chairman and Managing Director, Rasna Ltd., in March 2002.

No More 'I Love You Rasna'
Pioma Industries Ltd. (Pioma) is perhaps not a familiar name for the average Indian consumer. However, Pioma's brand 'Rasna' is very well known. In fact, the name Rasna is almost a generic name for soft drink concentrates (SDC), a segment that had been created and nurtured by the company in the Indian beverages market. Rasna's extremely popular advertisements with the tagline, 'I love you Rasna,' had become an integral part of the Indian advertising folklore. In March 2002, Pioma announced a radical

tetrapacked juices and other soft drinks. This development was rather unexpected. Most importantly. the average beverage consumer in India had a host of other options. such as colas. Pioma soon released music cassettes and CDs featuring remixes of old. . Pioma launched two new brands. iced tea. popular Hindi songs and the new Rasna song.. the company sponsored musical events across the country. Rasna's fading 'brand awareness' and its lacklustre image had become major hurdles. There were apprehensions regarding its success given the fact that previous attempts in form of brand extensions had failed to have any significant impact on Rasna's growth prospects. The launch was accompanied by a multi-media advertisement campaign. Rasna Utsav (Rasna Festive) and Rasna Rozana (Rasna Daily) in March 2002. as the brand had been lying dormant since long. No More 'I Love You Rasna' Contd. And unlike the late 70s. fruit juices. Industry observers were however. for which the company allocated Rs 160 million. The television campaign that ran across all major national and regional channels featured a 'song' exclusively composed for the new launches. Morepen's C-sip. Rasna's stronghold in the SDC market was facing severe competition from CocaCola's newly launched Sunfill and Dr. who had never sung for any commercial before.. capable of marring the prospects of the new marketing overhaul exercise as well.overhauling of its strategies for the Rasna brand. In addition to this. Company sources revealed that these developments were in line with a restructuring program that had been conceptualized in mid-2001. Keeping in line with this plan. viewing the above developments as Pioma's desperate attempts to infuse fresh life into Rasna. A notable feature of this commercial was the fact that it was voiced by one of the country's most well known singers. Asha Bhonsle.

Though many analysts felt that Rasna's do-it-yourself concept would be cumbersome and hence unappealing to consumers.. due to policy changes with regard to MNCs operating in India. Its proprietors. These ingredients had to be mixed with a specified amount of water and sugar. the liquid gave the flavor. Targeted at the upper end of the market. the Khambattas saw a huge untapped potential in the market with CocaCola.The Making of Rasna Pioma.. The brand name was changed to Rasna in 1979.. Excerpts Rasna Wakes Up To The Challenge Pioma finally decided to extend Rasna's brand portfolio and launched a pre-sweetened mix-anddrink product in 1996. comprised a powder sachet and a small bottle of thick. This was because Rasna was able to exploit the Indian middle class housewife's traditional distrust for food and drink not made at home. Emphasis was also laid on the availability of Rasna products in the price range of 80 paise per . Facing Challenges . on the verge of closing all its operations in India.. coloured liquid. Rasna International was a nutritious and vitamin-enriched version of the regular Rasna SDC version. At that point of time. The resulting syrup could then be used over a period of time by mixing it with water. While the powder provided the taste. positioned as a vitamin-enriched version of Rasna.The Second Inning The major thrust of the company's restructuring exercise was to reach out to the masses and create brand awareness in towns and remote villages. Rasna's SDC. This was followed by the launch of Rasna Royal. there were no major players in the preparatory SDCs market. an MNC cola major. an Ahmedabad (Gujarat) based company was the first to introduce the concept of SDC in India. Pioma thus launched an SDC under the brand name 'Jaffe' in 1976 and marketed it with the help of Voltas. it became the very reason for its success.

. Khambatta said. Rasna Ltd. Today. . Exhibits Exhibit I: Rasna -International Presence & Offerings Exhibit II: Soft Drink Market In India Revamping Rasna . Commenting on this. Hoping For A Sweet Future Although Rasna succeeded in increasing its sales in mid-2002. Chairman and Managing Director.. The company also extended its strategy of Rasna being a mass drink to its global markets. few analysts were skeptical about the long-term success if revamping strategy.Rs 4 and Re 1.. The entry of players like Coca-Cola. and not in the Indian foods counter in those stores. the largest producer of canned fruits and vegetables in the US to offer convenience foods.". Kraft Foods. Rasna was in the process of finalizing a joint venture with Del Monte.Morepen Labs and Hindustan Lever Ltd..glass to Rs 4 per glass. Dr. In 2002.A Marketing Overhaul Saga "At Rasna we are constantly looking at new innovations and strategies. "We have made sure that the Rasna International brand is placed along with the other preparatory soft drink brands such as Tang in international retail stores. The company's principal focus in 2002 was to increase the number of segments to make Rasna products more affordable to larger various sections of society.Piruz Khambatta. in March 2002. Till now. and their financial muscle was expected to pose tough competition for Rasna in the future. Rasna was available only in two price segments . the per capita consumption of Rasna is 15 glasses and our vision is to increase the per capita consumption to 100 glasses by 2005 and to reach out to one billion Indians every year.." .

the name Rasna is almost a generic name for soft drink concentrates (SDC). There were apprehensions regarding its success given the fact that previous attempts in form of brand extensions had failed to have any significant impact on Rasna's growth prospects. In addition to this. Rasna's extremely popular advertisements with the tagline. as the brand had been lying dormant since long. Pioma soon released music cassettes and CDs featuring remixes of old. Pioma's brand 'Rasna' is very well known. (Pioma) is perhaps not a familiar name for the average Indian consumer. Pioma announced a radical overhauling of its strategies for the Rasna brand. for which the company allocated Rs 160 million.' had become an integral part of the Indian advertising folklore. Industry observers were however. Keeping in line with this plan. A notable feature of this commercial was the fact that it was voiced by one of the country's most well known singers. viewing the above developments as Pioma's desperate attempts to infuse fresh life into Rasna. . This development was rather unexpected. The television campaign that ran across all major national and regional channels featured a 'song' exclusively composed for the new launches. iced tea. However. fruit juices. And unlike the late 70s. In fact.No More 'I Love You Rasna' Pioma Industries Ltd. Asha Bhonsle. such as colas. Pioma launched two new brands. 'I love you Rasna. popular Hindi songs and the new Rasna song. tetrapacked juices and other soft drinks. who had never sung for any commercial before. Company sources revealed that these developments were in line with a restructuring program that had been conceptualized in mid2001. Rasna Utsav (Rasna Festive) and Rasna Rozana (Rasna Daily) in March 2002. a segment that had been created and nurtured by the company in the Indian beverages market. the company sponsored musical events across the country. The launch was accompanied by a multi-media advertisement campaign. the average beverage consumer in India had a host of other options. In March 2002.

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