rasna marketing management

INTRODUCTION• Rasna is a soft drink concentrate brand owned by Pioma Industries which in based in Ahmadabad, 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.

PIOMA STARTED SELLING RASNA

• Pioma was the first company to introduce the concept of SDC (soft drink concentration) 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.

REASONS FOR THE BRAND’S SUCCESS

• 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)

RESEARCH AND DEVELOPMENT

• 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.

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 flavor ”Rasna Yarker & 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”.

PEST Analysis

POLITICAL

• Supply of raw material

• Government rules and regulation regarding the soft drinks and aerated drinks

Economical

• Economies of scale –introduced in small sachet to target a low income group

• The rise in prices had been in line with the inflation through the years.

• Efficient sales and distribution network.

Social

Increase the nutrious value by introducing the juice beverage which effect the health of consumers.

Rasna CSR trust ties up with US varsity for management sources.

PR companion of Rasna are very strong

For promotion free sachet of Rasna are distributed in rural area.

Work with a belief of “everything for everyone” .

Technical

• Highly introvert towards the advertisement ,marked by many popular agencies Mudra Voltas etc.

• Many buses and vans are used for distribution network.

• Varieties of flavor.

• R&D experts for every product.

• The packs were pilferage-proof with moisture-resistant lining, thus, retaining both flavor and freshness.

SWOT ANALYSISSTRENGTHS

• They are always ready to fight with competition ATTITUDE.• Marketing and Brand Building.• Strong Brand name with 93+ market shares.• One of the most visible advertising Featured many

celebrities from the field of entertainment and sports, like Hrithik Roshan, Karishma Kapoor, Paresh Rawal, Anupam Kher, Kapil Dev.

• Suits all classes of the society.• Efficient sales and distribution network.

WEAKNESS

• Takes extra effort to mix the components to prepare. • Rasna targeted specifically for children. • Major products of Rasna are seasonal.

• Failed to understand shifting preference towards ready-to-drink preparations.

• Not able to stop Piracy .

OPPORTUNITY

• Opportunity to enter into ready drink section.

• Rasna can also bring its international products into Indian market.

• Entering into glucose section is definitely a good initiative.

• Also concentrating on rural markets.

THREAT

• Entrance of soft-drink brands like Coke and Pepsi etc.

• Other competitor brands like HUL,PARLE etc.

• Fruit juice section ,which is much suitable for Rasna, but that section is also established by other brands.

• New regulations & policies .

• Change in concept.

Competitors of Rasna

Sunfill (coca-cola),2%Tang (Kraft food),0.5%Sugar free D’lite (Zydus cadila),0.2%Kissan Mr. fruit (HUL),8%Roohafza,7%

Rasna was able to retain its leadership in theRs2.5 billion preparatory soft drink market, with an estimated 82% market share.

SegmentationGeographic• Region- Semi-urban, Urban

Demographic• Age- Above 4 years

Psychographic• Life style- sport oriented, outdoor oriented and family oriented

• Personality- Ambitious, gregarious & individualistic

Behavioural • Occasions- regular, special• Benefits- quality, economic & taste• User status- regular, potential & first time • Loyalty status- medium • Usage rate- medium & light• Attitude towards product- positive

POSITIONING STRATEGY

1. Positioned as an International brand.

2. Reached out to the masses and created brand awareness in towns and remote villages.

3. Laid emphasis on price range of 80ps per glass to Rs.4 per glass.

4. Placed Rasna international along with other preparatory brands such as tang in the retail stores.

5. Brought out value added products for the existing consumers and implemented strategies to attract new consumers.

Product Life Cycle

Time

ProductDevelopment

Introduction

Profits

Sales

Growth Maturity Decline

Losses/Investments ($)

Sales andProfits ($)

Introduction Stage of the PLC

SalesSales

CostsCosts

ProfitsProfits

Marketing ObjectivesMarketing Objectives

ProductProduct

PricePrice

Low sales Low sales

High cost per customerHigh cost per customer

NegativeNegative

Create product awareness and trial

Create product awareness and trial

Offer a basic productOffer a basic product

Use cost-plus Use cost-plus

DistributionDistribution Build selective distributionBuild selective distribution

AdvertisingAdvertising Build product awareness among early adopters and dealers

Build product awareness among early adopters and dealers

Growth Stage of the PLC

SalesSales

CostsCosts

ProfitsProfits

Marketing ObjectivesMarketing Objectives

ProductProduct

PricePrice

Rapidly rising sales Rapidly rising sales

Average cost per customerAverage cost per customer

Rising profitsRising profits

Maximize market shareMaximize market share

Offer product extensions, service, warranty

Offer product extensions, service, warranty

Price to penetrate marketPrice to penetrate market

DistributionDistribution Build intensive distributionBuild intensive distribution

AdvertisingAdvertising Build awareness and interest in the mass market

Build awareness and interest in the mass market

Maturity Stage of the PLC

SalesSales

CostsCosts

ProfitsProfits

Marketing ObjectivesMarketing Objectives

ProductProduct

PricePrice

Peak salesPeak sales

Low cost per customerLow cost per customer

High profitsHigh profits

Maximize profit while defending market share

Maximize profit while defending market share

Diversify brand and modelsDiversify brand and models

Price to match or best competitorsPrice to match or best competitors

DistributionDistribution Build more intensive distributionBuild more intensive distribution

AdvertisingAdvertising Stress brand differences and benefitsStress brand differences and benefits

Decline Stage of the PLC

SalesSales

CostsCosts

ProfitsProfits

Marketing ObjectivesMarketing Objectives

ProductProduct

PricePrice

Declining salesDeclining sales

Low cost per customerLow cost per customer

Declining profitsDeclining profits

Reduce expenditure and milk the brandReduce expenditure and milk the brand

Phase out weak itemsPhase out weak items

Cut priceCut price

DistributionDistribution Go selective: phase out unprofitable outlets

Go selective: phase out unprofitable outlets

AdvertisingAdvertising Reduce to level needed to retain hard-core loyal customers

Reduce to level needed to retain hard-core loyal customers

Product Mix

1. Width :- Rasna Utsav ,Rasna Rozana Amrit, Rasna Rozana Ras, Rasna Fruit Booster. (i.e., Total 4)

2. Length :- Rasna Utsav (10 flavors), Rasna Rozana Amrit (3 flavors), Rasna Rozana Ras (3 flavors), Rasna Fruit Booster (3 flavors). (i.e., Total 19)

3. Depth :- Rasna Utsav (10 flavors)Rasna Rozana Amrit (3 flavors)Rasna Rozana Ras (3 flavors)Rasna Fruit Booster (3 flavors)

4. Average Length :- 19/4 = 4.75 (Total Length / Total Width)

ITEM

PRODUCT TYPE

PRODUCT LINE

PRODUCT CLASS

PRODUCT FAMILY

NEED FAMILY

Product Hierarchy

1. Need Family :- Thurst

2. Product Family :- Hot or Chill

3. Product Class :- Aerated / Non-Aerated

4. Product Line :- Rasna Fruit fun, Rasna Utsav , Rasna 1 ka 2.

5. Product Type :- Sunfill (Coca-cola), Tang (Kraft Food) .

6. ITEMs :- Rasna Utsav (1,6, 8 lit.),Rasna Rozana Amrit ( 1 ,10

glasses), Rasna Rozana Ras (100,200 ml) , Rasna Fruit Booster

(200,500 mg)

4 P’s of Rasna

1. PRODUCT 2. PRICE 3. PROMOTION 4. PLACE

Product Rasna began with 9 flavors in 1982.

It added 10th flavor 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: 1. Rasna frootfun in various flavors

2. Rasna fresh fun in various flavors

The company follows different pack size on carton basis. The pack sizes may vary with the local market demand.

Product of Rasna Rasna Utsav • Rasna Nimbu Pani• Rasna Orange • Rasna Mango• Rasna Cola-Cola Rasna Rozana Amrit• Rasna mango • Rasna orange • Rasna lemon Rasna Rozana Ras• Rasna mango • Rasna orange• Rasna Pineapple Rasna Fruit Booster• Rasna mango • Rasna orange• Rasna Pineapple

Price 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.

1. Its volume sale comes from its Rs 1.

2.The added sugar product Rasna Frootplus starts from Rs 2 and goes up to family pack which costs Rs 105.

 3.The Box pack has starting price of Rs 10 which is enough for 12 glass of water.

4.The family box pack is available at the price of Rs 35 which is for 32 glass of water.

5. The air tight jar has different pack size with price range starting from Rs 75.

 6. The company is constantly focusing on the rural market of India. So pricing accurately is very important for the growth.

Promotion 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

• The promotion of Rasna is always highlighted a strong brand association with there customer.

•  Rasna always want to create a good brand value by emotionally attaching there customer with there brand. 

• Focus of the company always is the quality of Rasna.

• Once , Rasna was the only soft drink company in India. So they has been trying for a good brand recall by there various ad campaign.

Promotion of Rasna • Communication :- Through attractive banners, posters , news papers etc• Activities promotion• Outdoor• TV channels

• Celebrity promotion

1.Anupam Kher

2. Kapil Dev

3. Karishma Kapoor

4. Hrithik Roshan

5. Vivian Richards

6. Paresh Rawal

7.Johny Lever

• In various ad campaign of Rasna, various child artists have been used heavily. This kind of campaign shows a high focus on quality. The quality of Rasna has been really the success factor and in there various advertisement they are heavily focusing on that part.

• In India where summer is very hot and long, focus of a soft drink company should be to understand that and to associate themselves with the misery of their customer.

• Rasna has done a great deal to understand the pain of a long and hot summer and to delver a product which would make that summer a little less painful.

• This kind of unique marketing idea and innovative ad campaign helped Rasna to become a monopoly in the concentrated soft drink market.

Timeline of Rasna (T.V Commercials)

Places1. Delhi 2. Lucknow3. Ghaziabad4. Dehradun5. Ambala6. Ludhiana 7. Chandigarh8. Jammu 9. Kolkata 10. Patna 11. Rachi 12. Guwahati13. Ahmadabad14. Bangalore15. Bhubaneswar

16. Jaipur

17. Chennai

18. Goa

19. Mumbai

20. Trichi

21. Vijayawada

22. Bhiwandi

23. Indore

24. Nagpur

25. Raipur

26. Jabalpur

Advertisement strategy

1.  Advertisements were targeted at the urban and semi-urban families.

2. The company focused on multimedia advertising and promotions which included TV, Radio and print.

3. Advertising and promotional activities were undertaken by “Mudra communications” (a leading advertisement agency).

4. Emphasis was laid on outdoor visibility and over 45,000 bus shelters, 300 bus panels and over 200 bill boards were used to display the brand message.

5. Catchy Brand taglines like “WHENEVER YOU FEEL LIKE CELEBRATING, DRINK RASNA“ and RELISH A GAIN” .

6. The advertising strategy was changed to include every age group and every section of the society.

Conti..7. It categorized its product line into two brands, Rasna Utsav , Rasna Rosana and

sub brand Rosana fruit boosters.

8. For distinct visibility of its products Rasna chose the leaf as its brand symbol.

9. New brands were enriched with vitamins and ingredients to render instant energy.

10. Priced Rosana Amrit sachets at Rs.2 competing Sunfill and Tang.

Distribution channel of Rasna

Steps Distribution channel• Rasna use supper-sub concept of distribution and Follows 3-5 Tier

Architecture

1. First the product is produced in the factory which is strategically located to minimize the transportation cost.

2. The packed product has been sent to various company depot across the country to distribute & meet the respective market demand.

3. From the company depot the product has been delivered to the different supper stockiest according to there previously placed order.

4. Then the goods has been send to the sub stockiest point or in some cases wholesale store.

5. The secondary sale from the sub stockiest or from the supper stockiest is ensured by the constant monitoring by the company personal.

Channel View

1. Super – stockiest

2. Sub stockiest

3. Making a sub- stockiest

Super-stockiest :-Super stockiest is the kind of C&F agency, where companies keep their stock to pass it on to the next stage of the distribution cycle viz. wholesalers, dealers, retailers and finally to the consumers. They do all kinds of jobs like sales and marketing, stock analysis, inventory management & control, packaging and distribution etc.

Super stockiest are appointed by the company itself for receiving, warehousing, safe storage and dispatching of the Company's goods. The super stockiest works according to the area assigned and is liable for the dispatch of the consignments ordered by other sub- stockiest and is responsible for all theft & damage to goods in his custody.

Sub stockiest:Sub stockiest is a person in the next level of distribution cycle who is appointed by the company person or by the super- stockiest. The Sub- stockiest receives consignments from the super- stockiest and delivers them to the retailers according to the consignment ordered.

Making a sub- stockiest:A sub-stockiest is appointed by the company person or a super-stockiest along the interior villages and towns which is beyond the reach of the company itself. The variables that come into play in the appointment of a sub-stockiest are:-

1. His ability to pay at a stipulated time period of his orders placed.

2. His ability to reach to every retailers in the market.

3. Area of his work so that order could be supplied to him at any point of time.

4. Large space of warehousing for storing or stocking goods

Intermediates

1. Retail stockiest (2500)

2. 7 Distributing Branches 3. 35 Depots across India

Recommendations

• Promotional events along with the distribution of brochures, stickers and leaflets are nil. So, It is hereby recommended to distribute such materials to the sub-stockiest and retailers which will help in Increasing the brand value.