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Revamping Rasna - A Marketing Overhaul Saga

            

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Facing Challenges – The Second Inning Contd...

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).

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.

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Case Details

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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