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Most importantly, Rasna's stronghold in the SDC market was facing severe competition from Coca-Cola's newly launched Sunfill and Dr. Morepen's C-sip. Rasna's fading 'brand awareness' and its lacklustre image had become major hurdles, capable of marring the prospects of the new marketing overhaul exercise as well.
Pioma, an Ahmedabad (Gujarat) based company was the first to introduce the concept of SDC in India. Its proprietors, the Khambattas saw a huge untapped potential in the market with Coca-Cola, an MNC cola major, on the verge of closing all its operations in India, due to policy changes with regard to MNCs operating in India. At that point of time, there were no major players in the preparatory SDCs market. Pioma thus launched an SDC under the brand name 'Jaffe' in 1976 and marketed it with the help of Voltas. The brand name was changed to Rasna in 1979. Rasna's SDC, comprised a powder sachet and a small bottle of thick, coloured liquid.
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While the powder provided the taste, the liquid gave the flavor. These ingredients had to be mixed with a specified amount of water and sugar. The resulting syrup could then be used over a period of time by mixing it with water. Though many analysts felt that Rasna's do-it-yourself concept would be cumbersome and hence unappealing to consumers, it became the very reason for its success. This was because Rasna was able to exploit the Indian middle class housewife's traditional distrust for food and drink not made at home. Not only was Rasna easy to prepare, it was reportedly the first brand in the country that provided consumers real fruit-like flavor and taste. And at only 50 paise per glass, it was easily one of the most affordable drinks available in the market. |
With many popular flavors such as Pineapple, Orange, Mango and Lime becoming runaway successes, Rasna soon established itself as an effective alternative to other products such as squashes, soft drinks and syrups. Pioma had eight factories that manufactured its SDC – five in Gujarat, two in Silvassa and one in Punjab. The company had a dedicated R&D team in Ahmedabad (Gujarat) to support its policy of launching new flavors in quick succession. The division was constantly involved in monitoring new flavor developments, controlling quality, innovating new flavors at regular intervals and analyzing new flavors at regular intervals.
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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