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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Excerpts
Rasna Wakes Up To The Challenge
Pioma finally decided to extend Rasna's brand portfolio and launched a pre-sweetened mix-and-drink product in 1996. Targeted at the upper end of the market, Rasna International was a nutritious and vitamin-enriched version of the regular Rasna SDC version. This was followed by the launch of Rasna Royal, positioned as a vitamin-enriched version of Rasna...
Facing Challenges - The Second Inning
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The major thrust of the company's restructuring exercise was to reach out to the masses and create brand awareness in towns and remote villages.
Emphasis was also laid on the availability of Rasna products in the price range of 80 paise per glass to Rs 4 per glass.
Till now, Rasna was available only in two price segments - Rs 4 and Re 1. The
company's principal focus in 2002 was to increase the number of segments to make
Rasna products more affordable to larger various sections of society.
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The company also extended its strategy of Rasna being a mass drink to its global markets. Commenting on this, Khambatta said, "We have made sure that the Rasna International brand is placed along with the other preparatory soft drink brands such as Tang in international retail stores, and not in the Indian foods counter in those stores."...
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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... |
Exhibits
Exhibit I: Rasna -International Presence & Offerings
Exhibit II: Soft Drink Market In India
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