Revamping Rasna – A Marketing Overhaul Saga
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FACING CHALLENGES – THE SECOND INNING Contd...
In addition, a completely new identity, a new ‘leaf'symbol was added to the
Rasna brand name. Commenting on this, Khambatta said, “Apart from talking
about the core values of Rasna, we also wanted a symbol for Rasna so that
the product gets distinct visibility. We want the consumers to identify
Rasna from the image of the leaf.” Since the company planned to focus on
rural markets, it felt that the product awareness could be best created by
means of a symbol and hence the leaf (with red and green background) was
chosen as the brand symbol.
All the new brands were enriched with vitamins and ingredients to render
instant energy. Commenting on the launches Khambatta said, “With the launch
of the Rozana line, we are reiterating our commitment to providing a health
gain to our consumers. The products in the Rozana line contain Fruit Powder,
Glucose/lactose, Vitamin A, C, B2, B6 as well as Niacin, Folic Acid, Calcium
and Phosphorus, making it one of the healthiest and most refreshing soft
drinks available. Cutting across all segments, Rasna has also ensured that
the Rozana line is affordable to all sections of society.”
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Rasna in order to establish its Rozana line strongly
in the market, priced Rozana Amrit sachets at Rs.2, while its major
competitors Sunfill and Tang sachets were priced at Rs 2 and Rs 5
respectively. This was expected to help Rasna beat competition as well
as increase its reach among the lower-income groups. Speaking about the
launch of the Rs 2.00 Rozana Amrit sachets, Khambatta said, “At Rs 2 per
sachet, it will be both a value-for-money product as well as convenient
as you just have to mix it in water and drink.” It also seemed to be
more convenient compared to other product offerings of Rasna, as you did
not need to add sugar to the mix. According to the company sources, the
launch of single-use sachets was expected to trigger the sales of
powdered soft drinks in India expanding the market exponentially and
increasing the share of powdered soft drinks in the total cold drinks
market in India (in 2002, the powdered soft drink market accounted for
less than 1% of the 12.1 billion cold drink market). |
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As a result of the above initiatives, Rasna was able to
retain its leadership in the Rs 2.5 billion preparatory soft drink market, with
an estimated 82% market share. The other major players, Kissan and Roohafza
respectively shared 8% and 7% of the market. In 2002, Rasna was credited to be
one of the most widely distributed products in India reaching over 5,00,000
independent retail outlets throughout the country. Rasna emerged as a mass brand
appealing to all socio-economic classifications (SEC) in both rural and urban
markets. In 2002, Rasna was rated 7th in the Food and Beverages category in
India and was rated 21st among the most recalled brands in India.
HOPING FOR A SWEET FUTURE
Although Rasna succeeded in increasing its sales in mid-2002, few analysts were
skeptical about the long-term success if revamping strategy. The entry of
players like Coca-Cola, Kraft Foods, Dr.Morepen Labs and Hindustan Lever Ltd.
and their financial muscle was expected to pose tough competition for Rasna in
the future.
In 2002, Rasna was in the process of finalizing a joint venture with Del Monte,
the largest producer of canned fruits and vegetables in the US to offer
convenience foods. While Del Monte wanted to leverage Rasna's vast and efficient
distribution network, the latter planned to access Del Monte's technical
expertise. Though the venture was planned to take off in mid-2002, analysts felt
that the decision to foray into other segments of the food market might not
yield expected results given the intense competition in the sector. However,
brushing off the apprehensions, Khambatta said, “I believe that competition is
an opportunity for growth. We will fight competition with good quality. Our
strength lies in Rasna's nationwide distribution network. We are not scared or
nervous of the cola giant Coke.”
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QUESTIONS FOR DISCUSSION
EXHIBIT I RASNA –INTERNATIONAL PRESENCE & OFFERINGS
EXHIBIT II SOFT DRINK MARKET IN INDIA
ADDITIONAL READINGS & REFERENCES
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