RASNA CASE STUDY

Ekta Batra | Nastasha Pant | Tesfaye

Tumdedo | Shilpa Dangi | Shuchi Kalra

1.AnalyzetheenvironmentinwhichPiomastartedsellingRasnaandhighlightthereasonsforthe
brandsrunawaysuccess.DoyouthinkRasnaislosingitsstrongholdintheIndianbeveragesmarket?
Justifyyourstand.

Ans:
The environment under which Pioma launched Rasna (Also known as Jaffe before)
were very favorbale to its growth because of the following points:

Pioma was the first company to introduce the concept of SDC (soft drink
concentrates) in India.
Competitors like Cola and MNC cola prevailed in the market.
Untapped market potential in the field of SDC.
Closing of the operations of colas in India due to policy changes with
regard to MNCs operation in India.

The reasons for the success of Rasna:

RasnawasabletoexploittheIndianmiddleclasshousewifestraditionaldistrustforfoodand
drinknotmadeathome.

NotonlywasRasnaeasytoprepare,itwasreportedlythefirstbrandinthecountrythat
providedconsumersrealfruitlikeflavorandtaste.

Andatonly50paiseperglass,itwaseasilyoneofthemostaffordabledrinksavailableinthe
market.

WithmanypopularflavorssuchasPineapple,Orange,MangoandLimebecomingrunaway
successes,Rasnasoonestablisheditselfasaneffectivealternativetootherproductssuchas
squashes,softdrinksandsyrups.

We think that yes Rasna is losing hold of the strong hold in the Indian
Beverage Market, Although Rasna had a market share over 82% of the
total SDC market in 2001 it gradually declined due to these reasons.

Change in the dynamics of the market due to liberalization in early

1990s.(coca cola and Pepsi).
Advent of fruit juice s in tetra packs and Aerated drinks in plastic
bottles.
Shift in consumers preferences towards ready to drink products.

Question 2:
Critically comment on the failure of products such as Rasna Royal, Rasna
AquaFun and Oran jolt. What were the factors that led Rasna to go for a
major revamping exercise for the brand?
Answer 2:
The failure of Rasna products happened because of the various decisions taken by
the company.
Failure for Rasna Royal:
o

Expensive than the other offerings by Rasana Customers were unwilling

to do so for Rasna Royal as they had paid higher price for it, was priced
Rs.4 higher than the SDC version due to less sales and no interest of
the customer into the product the company had to discontinue.

Failure for Rasna AquaFun:

The failure of Aqua Fun was blamed majorly on its blue color, which
was not accepted by the Indian consumer in the food products
segment.

Failure of Oranjolt
Was available only a very few outlet, limited exposure to the customers

Low shelf life also contributed to the failure of this product.

The factors that led to the revamping exercise for the brand are as
follows:

In the early 1990s, after the markets opened up due to the liberalization
Coca-Cola and Pepsi changed the dynamics of the market. Moreover, with
the arrival of fruit juices in tetra packs and aerated drinks in plastic bottles,
the scope for SDC products such as Rasna that needed to be prepared
began declining.

Many new entrants made venture into the market.

It became extremely difficult for Pioma to hold on to its market shares and
sales figures.

Availability of more international products in tetra packs

Increase in purchasing power.

Growing awareness among the consumers regarding difference between

natural and artificial flavors.

Steady increase in the price of Rasna SDC proved to be another hurdle.

Sales volume reduced by 7% every year.

The decline in Piomas fortunes was mostly of its own making, as it failed
to understand the shifting preference of the consumers towards ready-todrink preparations. They pointed that Rasna ignored the changing trends in

the market. Variations were launched only when competition had strongly
established itself.

Rasna failed to maintain its stranglehold in the lower-income segment as

less input was given to promotional activities initially.

Q#3 Rasna Case Study

Discuss the initiatives taken by Rasna to rejuvenate its brand with
specific reference to the positioning and advertising aspects. In light of
the changing market dynamics and the intensifying competition, will the
current strategies help Rasna sustain its leadership position?
Initiatives taken by Rasna to rejuvenate its brand with specific reference
to the positioning and advertising aspects are:1. New brand launching (2 brands i.e Rasna Rozana and Rasna Rozana) which
was accompanied by amulti media ad campaign The television campaign
that ran across all major national and regional channels which helped the
company to become a trusted and popular brands amongst Indian
consumers sponsoring and appearing in the national state owned TV and
sponsored the most liked spider man animated series featured a song
exclusively composed for the new launches. A notable feature of this
commercial was the fact that it was voiced by one of the countrys most
well known singers, Asha Bhonsle,
2. The company undertook various creative promotional activities. These
included shop sampling, house-to-house calls, and live demos on the
method of preparation, retail window displays, gift offers to customers and
other trade schemes.
3. Uses creative and innovative approach every year to sustain
4. Participate in exhibition and fairs which helps direct interaction with
customers
5. Development of whole new range of non alcoholic beverage under the
brand name Rasna for global market
6. Launch of Rasina ethnic basket and Rasna beverage and foods
7. Launch of pre-sweeten mix and drink product and vitamin enriched
products which is positioned and Priced at higher end
Will the current strategies help Rasna sustain its leadership position?
Yes with help of constant adaptation to the situations arising at market place
Rasna will keep its leadership position.