Lal Salaam - RoohAfza

Submitted to:

Submitted by: Group 2 Anand Kumar Anisha Bansal Ankush Singla - 12P127 - 12P128 - 12P129

Dr. Kanwal Kapil

Anubhav Gupta - 12P130 Bhoomi Ashwin - 12P131 (3047 Words) Aditya Chadha - 12P132

Lal Salaam - RoohAfza

Executive Summary
The objective of this report is to apply the concepts and methods of marketing to a real world marketing opportunity. This exercise imparts a clear design and practical knowledge on the implementation of marketing strategies and plans. RoohAfza has been selected as the product for the report because it is a traditional drink that has stayed relevant and is one of those rare brands that has a hold over consumers not because of marketing but because of its product. Energy and health has been made the unique selling proposition for the brand. For this purpose, market research was done over a sample of 259 people using the questionnaire method. The market research data was critically analysed in order to make conclusions. In the trailing report the marketing strategy for RoohAfza has been mentioned to put these conclusions into practice. The target market, positioning, competition & product, pricing, placing, promotion strategy is specified to accomplish the goals in the best possible manner. The report covers SWOT analysis, PEST analysis and Porters Five Forces model to evaluate the current position of the brand itself. All possible areas and topics have been covered in the report that is necessary for repositioning RoohAfza.

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Tables of Contents
Introduction.... SWOT analysis....................... PEST analysis..................... Porters Five Forces Model Analysis.. Hypothesis... Methodology....... Survey Results and Analysis....... STP Strategy.................... Future Scope............ Conclusion............................ References......... 5 6 8 11 14 15 16 24 26 27 28

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Section I

(725 Words)

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Introduction
In India, Bangladesh & Pakistan, Hamdard (Wakf) Laboratories is one of the most renowned Unani and Ayurvedic pharmaceutical companies and the world's largest producer of Unani medicines. It saw its inception in 1906 by Hakeem Hafiz Abdul Majeed in Delhi, and transformed into a non-profitable trust (Wakf) in 1948. Some of its most famous products include Safi, Sharbat RoohAfza, Cinkara, Roghan Badam Shirin and Pachnol are among its most popular products. Hamdard Foundation is a charitable educational trust in India which it reinvests its proceeds into altruistic activities. The scarlet-hued refresher, RoohAfza was founded by the company in 1907. This traditional summer sharbat has survived the Indo -Pak Partition, the licence raj, the economic reforms, fizzy drinks and tetra-pack juices. When the motor car was on its way in and the horse buggy on its way out, Sharbat RoohAfza was there, an advertisement in an ancient newspaper defines its long survival race. More than 100 years older, it is still going strong. The explicit Unani recipe of RoohAfza is a mix of several popularly-considered cooling agents, like rose, and used as remedy for hot summer winds loo. It is commercially sold as flavoured syrup for sharbats, cold milk, shakes and cold desserts like the famous lassi and falooda. By its idiosyncratic taste, colour and aroma, it not only began attracting the common populace, but also motivated the poets and writers to make it a premise of their creative efforts.

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SWOT Analysis
Strengths -Acts as a coolant -Made of natural ingredients -Additive and Taste maker - Low Price Drink Weaknesses -Not ready to drink -Available in glass bottle & one size -Seasonal sale variation

-Explore new flavours

-Tapping high congregation points -Produce complimentary products -Tapping nutrition trend Opportunities -Cola loving generation -New entrants -Presence of alternatives Threats

Strengths:
It is a popular drink that acts as coolant and an instant source of energy It is made out of natural ingredients, a type of UNANI medicine which has zero side effects It is used as an additive and a taste maker It comes under the category of low price drinks It is recognized as a Ramadan Drink to break days fast

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Weaknesses:
It is not a ready to drink beverage It experiences seasonal variation in sales It is available only in one standard size, leaving no choice for customers It is available only in glass bottles which should be handled with care It is not suitable for diabetic patients

Opportunities:
Tapping high congregation points Metro stations, hospitals, malls, highways, tourist spots Explore new flavours Produce RoohAfza complimentary products In the current nutrition trend people are becoming more health conscious which can be tapped

Threats:
As todays young generation is cola-fan and milk-diffident, it might lose its market share Other companies shifting to health market, e.g. - tetra-pack juices. Squash, homemade syrups and Glucose are competitors

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PEST Analysis
Changes in Law and Regulation Political Political unrest and other regulations Changes in non-alcoholic business environment Economic GDP growth - High disposable income Changing consumer habits and lifestyle Changing buying behaviour

Social

Improvement in processing and packaging techniques Technolo New avenues - Social networking websites
gical

Political:
Non alcoholic beverages fall within the food category under the FSSAI (Food Safety and Standards Authority of India). Behind the operation of manufacturing these products, the government has an important role in terms of regulations. There are impending fines laid down by the government on the companies not adhering to a standard of laws. Following are the factors that could cause a deviation in RoohAfzas actual results from the expected results:

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Reforms in law and regulations include changes in accounting standards, up to date taxation norms and environmental laws in domestic as well as overseas jurisdictions. Political changes include government reforms and civil turmoil.

Economic:
1. Frequent changes in non-alcoholic business environment which include competitive product, pricing pressures and their ability to achieve or maintain allocation of sales in the local market as a consequence of endeavour by competitors. 2. The GDP is growing at 6-7% which has resulted in an increase in disposable income. This shows that the buying power of people is increasing which has two effects: A positive effect on the sales of RoohAfza since more people will be able to buy the product A negative effect on the sales as people will look for comparatively expensive alternate options such as soft drinks and juices

Social:
1. Change in consumer habits as well as lifestyles Todays consumer is seeking healthier alternatives. 2. Consumer buying behaviour is changing.

Technological:
1. With the introduction of the tetra-pack, packaged juice market has come into existence which is giving a tough competition to RoohAfza. 2. Improved processing such as distilled extraction of fruits, vegetables and drugs. 3. Improvement in packaging technology. 4. New marketing avenues with the advent of social networking sites like Facebook.
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Section II

(1214 Words)

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Porters Five Forces Model Analysis

Threat of new competition Low

Intensity of competitive rivalry - High

Threat of substitute products - High

Bargaining power of suppliers - Low

Bargaining power of consumers Low

1. Threat of new competition - Low Advertising and Marketing Beverage industry needs huge amount of money to spend on advertisement and marketing. This makes it exceptionally hard for a new competitor to enter the market and expand. Customer Loyalty RoohAfza has a fair amount of share in the minds of consumers. Hence, it becomes nearly impossible for a new player to establish its product. 2. Threat of substitute products - High This product line is enriched with many substitutes such as water, tea, juices, coffee etc. accessible to the consumers. The majority of the substitutes cannot counterpart the offers of the active players

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Assertiveness of substitute products in endorsement Companies in the beverage industry spend vast amount of money on advertisement and marketing to distinguish their products from others and also build brand equity, loyal customer base and enhance visibility Switching cost of the alternative product is very low so consumers can easily move towards the substitute products Perceived Price/Value in this industry is very low because most products are somewhat same and are only eminent by promotional activities. 3. Bargaining power of consumers - Low Vending machine, convenience stores, food stores, restaurants, college canteens and others are the key significant buyers for the beverage industry. Vending Machine It provides commodities to the regulars in a straight line with a great deal no authority with the buyer Food Stores This buyer segment is combined with local supermarkets and hypermarkets. It demands lower prices because it gives paramount shelf space. 4. Bargaining power of suppliers - Low Majority of the raw materials enviable to manufacture beverages are basic stuffs like sugar, flavour, colour and packaging. The suppliers have no supremacy in bargaining over the pricing. Large no. of important suppliers Raw material is easily obtainable to every manufacturer and has low cost. Switching Cost to the suppliers is very low; producers can easily vary the suppliers. Threat of forward integration Since Hamdard is a well established brand and has full-size manufacturing plants, bottling system and a well-built distribution network; suppliers could not afford losing such a well established network.

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5. Intensity of competitive rivalry - High Scope of Competition RoohAfza has dominated the market since its evolution. But big players like Coke and Pepsi are also entering the health market which will give a good competition to RoohAfza Degree of Differentiation Marketing and Product differentiation have become very significant. Where RoohAfza is selling mainly due to its product quality, other brands are depending more on marketing.

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Hypothesis
Hypothesis I: Level of health consciousness affects consumer decision making process. People are becoming health conscious which is being realised by other players in the beverage and as a result they are tapping the potential health market in the beverage market. Due to this, people are getting more options such as tetra pack juices which can affect the sales of RoohAfza Hypothesis II: Customers with high level of product knowledge make decisions based upon their predefined premises while customers with low level of product knowledge make an overall assessment before making a decision. While buying the product, if the person is a regular consumer and is well aware of the product, the factors like taste and health are more important to him as compared to the price.

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Methodology
Based on the above hypotheses, a 9-question survey was prepared which tested each of the above hypotheses. The questionnaire was floated on e-mail and social networking sites. The simple random Sampling Method was considered for the study, which is based on assumption that the respondents are randomly drawn from population. The consumers would have consumed Roohafza and other beverages from most brands available in India. The sample is random from these consumers.

Sample Size and Sample Description The sample size of this study is the response to the questionnaire, and it consists of: 259 responses from consumers collected online

Collection of Data The primary data is based on the objectives of the study. Survey method that is questionnaire development and responses has been obtained by floating the questionnaire to social networking websites and sending it to email ids of known/potential customers.

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Survey Reports and Analysis

1. Consumption of RoohAfza by Age Group

As the major sample population were targeted by email and social networking the pre dominant age group who took the survey consisted of people in their early twenties and secondly in their late twenties. 2. Awareness about the presence of RoohAfza

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This poll allowed us to test the awareness level of people with regards to the presence of RoohAfza in the market and the results were in tune with expectations and a large majority was highly aware as to the brand.

3. Beverage preferred as thirst quencher

Data obtained from this poll clearly showed a declining market share for RoohAfza due to increased competition from juices. Even soft drinks are catching up thus proving the need for RoohAfza to market itself more aggressively as a healthier option. 4. How much does the below parameters influence the choice of consumption? Status

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From this data it is amply proved that social status plays a negligible role when taken into account as a factor for altering consumer behaviour. Price

Again as the price of RoohAfza is moderate it is not the most important constituent of the decision making process when consumer buying behaviour is taken into account.

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Taste

The taste of RoohAfza is the defining characteristic of the brand and this can be seen be seen from the results of the poll where its taste is the most important factor in the decision making process. Health

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Although a healthy tag is attached to the brand yet it is not the most important factor which provides us scope to push the marketing campaign on the basis of the health factor. Ease of Availability

Market penetration and distribution network is very healthy as is proved by the results of this poll which shows that the product is easily available and accessible to a wide majority of consumers. 5. Frequency of Consumption of RoohAfza

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Due to seasonal nature of consumption of RoohAfza and also general perception as a childrens drink the use is seen to be rare because our majority sample size consists of people in their early twenties. 6. RoohAfza as an additive

This poll helped us to identify the preferences of consumers as to the mode of consumption of RoohAfza thus displaying actual consumer behaviour and choice. 7. Recall Value of Products

Again we see that RoohAfza enjoys a very strong connect with consumers and it is comparable to other iconic products like Maggi, Parle-G, Bournvita and Chyawanprash.

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8. Rating of packaging by consumers

From the data obtained we can conclude that the packaging of RoohAfza does not affect the buying behaviour of consumers. 9. Frequency of Consumption of RoohAfza

The poll shows that a large proportion of the consumers like to consume RoohAfza at home. This is quite evident as RoohAfza is not a ready-to-drink beverage. An important thing to note is that there are a good proportion of people to whom location does not matter showing the preference of the consumer towards the product.

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Section III

(579 Words)
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STP Strategy
1. Market Segmentation: As far as market segmentation is concerned, RoohAfza is not targeting a single segment. Rather, it is following a pattern of Full Market Coverage. In this, a company tries to serve all customer groups with all the products they might need.

2. Targeting RoohAfza focuses its market on joint families and middle class people (upper and lower). Since it is a healthy drink made out of natural ingredients, it can be consumed by people of any age group. RoohAfza comes in a standard packing of 700ml at a price of Rs105/-. Since it is an additive, so the overall consumption is far greater in volume. Also, it is a long lasting product, so the price is also justified and a middle class consumer will not find it difficult to purchase.

3. Positioning RoohAfza came into existence around 40 years before independence and is running successfully since then. It has survived partition, licence raj, economic reforms, carbonated drinks and tetra pack juices. The positioning became strong because of the early mover advantage RoohAfza has in the market

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. Its image is stored in the minds of people to an extent that every RED coloured sharbat is perceived as RoohAfza. Due to this, no product is able to compete in this category. One of the examples is Sharbat-E-Azam by Dabur. It is one of its kind beverages in terms of its ingredients. It is made up of natural ingredients and is a type of UNANI medicine. Hence, people see it not only as a thirst quencher, but also as a healthy drink having medicinal properties.

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Future Scope
As per the survey, people prefer fruit juices as compared to RoohAfza to quench their thirst. Even soft drinks are sharing an equal percentage as the chosen product. This is a potential threat for RoohAfza as a product in terms of market share. With the introduction of tetra packs, the market of packaged juices has increased significantly which will be a good competition in todays health conscious generation. To counter this, as a future strategy, the company can come up with ready-to-drink RoohAfza packing. As per the survey, a large proportion of the consumers are aware of the product. Out of these, majority have considered health and taste as important factors while making their choice of consuming a beverage. Since Roohafza is having a good image in the market in both these parameters, it is a good sign for the company. So, the company should make taste and health its agenda for marketing. The survey also tested the recall power of consumers with respect to famous brands like Maggi, Bournvita, Parle G and Chyawanprash. As per the results, the recall value of Bournvita is quite high whereas all others share more or less an equal percentage. This is a positive sign for the company because RoohAfza so far is known for its product quality rather than marketing strategy. So, if the product is able to maintain an equal mind share as of other products like Maggi (which rely heavily on marketing), so an increase in the marketing strategy will increase the market share of the product. The company can give small recipe booklets attached with the bottle. With this, people will come to know about new uses of RoohAfza as an additive. This will help in increasing the marketing as well as sales of the product.

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Conclusion
RoohAfza, the scarlet-hued refresher, has been going strong since 1902. The product has survived the test of times on the power of its better product proposition. We have chosen RoohAfza, the prime product of Hamdard, as our project focus as we think that with marketing Roohafza can ride on the health trend. RoohAfza has kept itself relevant on the basis of its thirst quenching ability but with the proliferation of tetra-pack juices, colas, it might lose mind share in the coming generations. RoohAfza has to make it attractive to the health conscious people who do not have time. In the survey, we have found that people give importance to health and taste over price. Also, people prefer fruit juice over Roohafza. Thirdly, most people prefer having RoohAfza at home but a substantial proportion does not have any inhibitions in consuming RoohAfza outside also. We propose RoohAfza to develop and promote a ready-to-drink option to the consumers. With improvement in packaging technology, it is possible for it to develop such a product. The places it can promote its product are the high congregation points like stadiums, hospitals, etc. It should also market the product for youth who are looking for healthier options. With product innovation and increase impetus on marketing, RoohAfza can become a market leader in health drinks.

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References
Marketing Management : Philip Kotler, 13th Edition www.hamdard.org Mint Lounge, 10th August 2012 www.wikipedia.com www.hamdardbd.com

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