ansoff, BCG, SWOT of RASANA

2.  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

3.  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.

4.  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)

5.  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.

6.  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.

7.  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.

8.  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”

9.  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.

10.  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.

11.  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.

12.  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.

13.  Strong positioning of Rasna SDC as a
cost effective drink.
 Priced RS.4 higher than the SDC version.
 Inconvenience of preparing.

14.  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.

15.  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.

16. POSITIONING 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.

17.  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.

18.  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.

19.  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.

20.  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.

21.  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

22.  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

23.  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

24. › 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

25.  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

26. 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

28.  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.

30.  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.

31. Porter Competitive Model
Intra-Industry
Rivalry
Strategic Business Unit
Bargaining
Power
of Buyers
Bargaining
Power
of Suppliers
Substitute
Products
and Services
Potential
New
Entrants

32.  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.

33.  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.

34.  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.

35.  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.

37.  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

38.  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

39.  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.

40. 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.

41. 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.

42. 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

43.  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.

44.  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

45.  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