Revamping Rasna - A Marketing Overhaul Saga

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Case Details:

Case Code : MKTG025
Case Length : 11 Pages
Period : 1995 - 2002
Pub Date : 2002
Teaching Note : Available
Organization : Pioma Industries Ltd
Industry : Food, Beverages and Tobacco
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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No More 'I Love You Rasna' Contd...

Pioma soon released music cassettes and CDs featuring remixes of old, popular Hindi songs and the new Rasna song. In addition to this, the company sponsored musical events across the country. Industry observers were however, viewing the above developments as Pioma's desperate attempts to infuse fresh life into Rasna.

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. And unlike the late 70s, the average beverage consumer in India had a host of other options, such as colas, fruit juices, iced tea, tetrapacked juices and other soft drinks.

Most importantly, Rasna's stronghold in the SDC market was facing severe competition from Coca-Cola's newly launched Sunfill and Dr. Morepen's C-sip. Rasna's fading 'brand awareness' and its lacklustre image had become major hurdles, capable of marring the prospects of the new marketing overhaul exercise as well.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

The Making of Rasna

Pioma, an Ahmedabad (Gujarat) based company was the first to introduce the concept of SDC in India. Its proprietors, the Khambattas saw a huge untapped potential in the market with Coca-Cola, an MNC cola major, on the verge of closing all its operations in India, due to policy changes with regard to MNCs operating in India.

At that point of time, there were no major players in the preparatory SDCs market. Pioma thus launched an SDC under the brand name 'Jaffe' in 1976 and marketed it with the help of Voltas.

The brand name was changed to Rasna in 1979. Rasna's SDC, comprised a powder sachet and a small bottle of thick, coloured liquid. While the powder provided the taste, the liquid gave the flavor.

These ingredients had to be mixed with a specified amount of water and sugar. The resulting syrup could then be used over a period of time by mixing it with water.

Though many analysts felt that Rasna's do-it-yourself concept would be cumbersome and hence unappealing to consumers, it became the very reason for its success. This was because Rasna was able to exploit the Indian middle class housewife's traditional distrust for food and drink not made at home...

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