Rasna is a soft drink concentrate brand owned by Pioma Industries based in India. It dominated the market in the 1970s-1990s with its tagline "I love you Rasna". However, it started losing market share in the 1990s with the entry of competitors like Coke and Pepsi. In response, Rasna revamped its strategies in 2002, including repositioning itself, extensive advertising, and improving distribution. The revamping was successful, with Rasna emerging as a mass brand and regaining 93% market share in the Indian soft drink concentrate market by 2009.
Research starts having objective of to find out the conflicts among distribution levels in Rasna Ju C, also to find out the factors which are affecting the purchasing willingness of Retailers and Customers. This report clearly mentions objective of the study and the research methodology utilized, both primary data and secondary data. The data collection method used is a structured questionnaire in which the types of questions used are open ended, multiple choice and close ended.
The report contains a detailed view of the tasks, which have been undertaken to analyze the market of Rasna Ju C. Competitive analysis of Rasna Ju C has been done on the bases of factors like Product price, advertisement, varieties in product, modern outlet distribution, post sales service and brand awareness. These factors are selected on the bases of market observations and data is collected by interviewing the retailers and feedback form.
Rasna Ju C has different flavors, low pricing with respect to its competitor and parent company brand image but still this product is not performing well in the market. In this project, I interviewed super stockist, distributors and retailers. I observed the competitor marketing strategy and I found some gaps which are responsible for low performance of Rasna Ju C in Lucknow.
Research starts having objective of to find out the conflicts among distribution levels in Rasna Ju C, also to find out the factors which are affecting the purchasing willingness of Retailers and Customers. This report clearly mentions objective of the study and the research methodology utilized, both primary data and secondary data. The data collection method used is a structured questionnaire in which the types of questions used are open ended, multiple choice and close ended.
The report contains a detailed view of the tasks, which have been undertaken to analyze the market of Rasna Ju C. Competitive analysis of Rasna Ju C has been done on the bases of factors like Product price, advertisement, varieties in product, modern outlet distribution, post sales service and brand awareness. These factors are selected on the bases of market observations and data is collected by interviewing the retailers and feedback form.
Rasna Ju C has different flavors, low pricing with respect to its competitor and parent company brand image but still this product is not performing well in the market. In this project, I interviewed super stockist, distributors and retailers. I observed the competitor marketing strategy and I found some gaps which are responsible for low performance of Rasna Ju C in Lucknow.
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2. INTRODUCTION
• Rasna is a soft drink concentrate brand owned by Pioma Industries which
is based in Ahmedabad, India
• Piruz Khambatta is Chairman and managing director of Rasna.
• The brand name was changed to Rasna in 1979
• Rasna claims 92.7% market share in non-carbonated soft drinks
concentrate powder.
• It has manufacturing facilities outside India in Bangladesh, Dubai, Saudi
Arabia and Egypt as well.
• Rasna Pvt Ltd. is a proud family owned company and a global benchmark
in Taste and Quality.
• Awarded with ITQI (International Taste & Quality Awards), Belgium for
its unbeatable taste & Quality.
3. TIMELINE OF RASNA
• 1976-: Introduced SDC under the brand name “JAFFE”
•
• 1979-: Brand name change to “RASNA”
• 1980-:1990 -: Ruled the market by the tag line “I LOVE U RASNA”
• 1991- : Decline in sale due to the enter of competitors i.e. Coca-Cola, Pepsi etc.
• 1993-: Launched product of 2 categories at global level i.e. “Rasna Beverage ,foods &
Rasna ethnic basket”.
• 1996-: Launched Rasna international & Rasna royal as pre sweetened mix drink.
• 1999-: Launched 2 new flavour ”Rasna Yorker & Rasna Aqua Fun”
• 2000- Launched ORANJOLT aerated drink but soon fail.
• 2001-: Company name changed to Rasna ltd.
• 2002-: Launched RASNA UTSAV & RASNA ROJANA as juice products.
• 2013-: Rasna enter ready to drink beverage segment with the brand name “RASNA JU-
C”.
4. SELLING ENVIRONMENT
• Pioma was the first company to introduce the concept of soft
drink concentrates (SDC) in India
• Pioma thus launched an SDC under the brand name 'Jaffe' in
1976 and marketed it with the help of Voltas
• Rasna’s SDC comprised a powder sachet and a small bottle of
thick, coloured liquid.
• Competitors like Cola and MNC cola prevailed in the market.
5. MARKETING AND ADVERTISING STRATEGY
• Tagline- “I love you Rasna”
• Shop sampling
• Gift offers to customers and other trade schemes.
• House-to-house calls
• Direct interaction
• Live demos (Events)
• Ad in Doordharshan
• Used Asha Bhonsle for ad song.
6. REASON FOR INITIAL SUCCESS
Many flavours, real fruit-like flavour and taste
Easy to prepare
Priced at 50 paisa per glass- (used the production concept)
Do it yourself concept
Strong R&D and supplier chain
Sales and distribution network
Modern packing technology
Advanced world-class technology was used for packaging.
7. • Planned for entering global market by 1993
• Produced new beverages and ready to eat foods.
• Priced high, targeted at the upper end of the market who were
health conscious consumers.
• Realised potential for ethnic Indian food
• Rasna ethnic basket and Rasna beverages and foods.
8. MARKET DYNAMIC
• By 1995, Rasna held 90% of the SDC Market
• Estimated a total market share of 75%. in 1995
• Markets opened for Cola and Pepsi.
• Targeted at the upper end of the market
• By 1999, Rasna International's sales accounted for an estimated
15% of the Rasna's total turnover
• SDC's contribution kept declining.
90%
10%
SDC MARKET
RASNA
OTHER
9. DECLINE IN PIOMA’S FORTUNES
• Decline starts mainly due to the short sightedness
• Failure to understand changing customer preferences
• Do it yourself concept
• Advent of fruit juices in tetra packs and Aerated drinks in plastic
bottles.
• Failed to sustain its stronghold in the lower-income segment.
• Focus on children had significantly contributed to Rasna's downgrade
• Govt. policies(Introduction of MNC)
10. BRAND EXTENSION
• Rasna International nutritious and vitamin-enriched version of
the regular Rasna SDC version.
• Rasna Royal a vitamin enriched version of Rasna SDC in 1996.
• Launched new flavours Rasna Yorker and Rasna Aqua fun in
1999.
• Launched of Oranjolt in 2000, an aerated fruit drink
• Rasna was made available in many local flavours such as 'Kala
Khatta' (tangy), 'Khus' and 'Rose' .
11. PRODUCT FAILURE
• Products were priced at the higher end.
• The failure of Aqua Fun was attributed mainly to its blue
colour.
• Weak distribution network of Oranjolt
• The short shelf life of the Oranjolt also contributed to its
failure.
12. PARALLEL HURDLES/REVAMPING NEED
• Volume shrinks by 7% every year
• Late 90’s priced between Rs.22-24
• Growing awareness between natural and synthetic flavours.
• Tetra pack category increased
THREAT OF SUBSTITUTE
Coke & Pepsi were the main substitutes.
People preferred readymade rather than products like RASNA which ought to be prepared.
Fruit juices in tetra packs and aerated drinks in plastic bottles .
13. RESTRUCTURING PLAN
POSITIONING STRATEGY
Available at price range of Rs 80 paisa to Rs 4 per glass.
Create brand awareness
Reach out masses
Increase the target segments
Positioned as an International brand
14. ADVERTISEMENT STRATEGY
• Advertisements were targeted at the urban and semi-urban
families.
• Advertising and promotional activities were undertaken by
Mudra communications, a leading advertisement agency.
• Television commercials, Radio commercials and outdoor
campaigns
• Tagline- “relish a gain”
• Aimed at every age and income group.
• Re-launched rasna International as Rasna’s fruit Booster.
15. ADVERTISEMENT STRATEGY
• Special emphasis was laid on 'outdoor visibility' and over 45,000 bus shelters, 5300
bus panels and over 200 billboards.
• Product awareness created by means of a symbol of leaf (with red and green
background
• Multi-media advertisement campaign, of Rs 160 million.
• Changes name to “Rasna Ltd” for brand identity.
• Catchy Brand taglines like “WHENEVER YOU FEEL LIKE CELEBRATING,
DRINK RASNA“
16. DISTRIBUTION STRATEGY
• Rasna planned to reach an estimated 7,00,000 retailers annually.
• The company appointed 47 additional sales personnel, 350 cycle
salesmen, and 145 pilot salesmen
• 500 vans for the coverage of rural areas.
• The company had 24 warehouses in various parts of the country,
24 distributors and 2000 stockists.
17. REVAMPING OUTCOME
• The revamping exercise was fruitful
• 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
• Rated as the 21st among the most recalled brands in India.
• As of 2009, Rasna had a 93% market share in the soft drink
concentrate market in India
18. HOPING FOR SWEET FUTURE
• Make Rasna 'everything to everyone.
• Views of competition.
• Joint venture with Delmonte
• Depends on economy, taste and children affinity
SWOTANALYSIS
STRENGTHS
Always ready to fight with competition ATTITUDE
Strong brand name
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
19. 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
20. CONCLUSION
• Rasna owned by Pioma industries
• The tagline “ I love you Rasna “ was popular among masses
• Main reason for success- Do it yourself concept
• Started by 1976 when no MNC players were there
• Went for globalization.
• Entry of Competitors by 1990’s
• Starts losing market share by every quarter
• Decide on new strategically decisions
• Plans on revamping by 2002 and reasons for the same
• A major foresight helped the company to reach the masses
• Pricing was done using penetration strategy
• Could not understand the changing market dynamics immediately
• A complete restructuring helped it regain its position THANK YOU