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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." Analysts also commented that Rasna was making a big mistake by trying to make Rasna 'everything to everyone.'1 Commenting on this, Jagdeep Kapoor, Managing Director, Samsika Marketing Consultancy, said, "If you try to be everything to everyone you might end up being nothing to anyone."
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Kapoor said that focus on children had significantly contributed to Rasna's success. By broadbasing its target audience, and by extending its product to all the sectors of the community, Rasna brand lost its core slot, which its competitor Sunfill captured with its commercial depicting a child on a hunger strike giving in to his temptation for a glass of Sunfill. However, Rasna countered this argument saying that Rasna products were always targeted at the family and never specifically for children. (However, company sources agreed that in the past, children had been their means to get households to buy their product). According to an advertising professional who was previously associated with Rasna, "The problem with Rasna lies in its advertising, which is clueless about where the brand really fits in today's scenario. |
Rasna entered middle-class homes by saying you have so many glasses from one pack, which works out to so much per glass. However, with the colas getting belligerent and prices coming down steeply, that advantage ceased to exist. A glass of cola would be at most 20% more expensive, but that is offset by the cola associations – young, hip, aspirational. Increasingly, in middle-class homes, Rasna is not seen to be 'with it'. So what is Rasna? Where does it fit? Is it still relevant?" Industry observers remarked that there were three critical success factors in the preparatory drinks segment – economy, taste and children's affinity. And with almost all the players focusing equally on all the three factors, Rasna indeed seems to have a tough time ahead to retain its leadership status.
Exhibit I: Rasna –International Presence & Offerings
Exhibit II: Soft Drink Market in India
1] www.agencyfaqs.com, April 2002.
Case Code : MKTG025
Themes: Marketing Mix
Case Length : 11 Pages
Period : 1995-2002
Organization : Pioma Industries Ltd
Pub Date : 2002
Teaching Note : Available
Countries : India
Industry : Food, Beverages and Tobacco
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