RASNA CASE STUDYEkta Batra | Nastasha Pant | Tesfaye Tumdedo | Shilpa Dangi | Shuchi Kalra And at only 50 paise per glass. Change in the dynamics of the market due to liberalization in early 1990’s. Shift in consumers preferences towards ready to drink products. Orange. With many popular flavors such as Pineapple. Mango and Lime becoming runaway successes. soft drinks and syrups. We think that yes Rasna is losing hold of the strong hold in the Indian Beverage Market. Closing of the operations of colas in India due to policy changes with regard to MNC’s operation in India. it was reportedly the first brand in the country that provided consumers real fruitlike flavor and taste. Analyze the environment in which Pioma started selling Rasna and highlight the reasons for the brand’s runaway success. Untapped market potential in the field of SDC. Competitors like Cola and MNC cola prevailed in the market. Although Rasna had a market share over 82% of the total SDC market in 2001 it gradually declined due to these reasons. Rasna soon established itself as an effective alternative to other products such as squashes. Advent of fruit juice s in tetra packs and Aerated drinks in plastic bottles. .1. it was easily one of the most affordable drinks available in the market.(coca cola and Pepsi). Do you think Rasna is losing its stronghold in the Indian beverages market? Justify your stand. 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. Not only was Rasna easy to prepare. The reasons for the success of Rasna: Rasna was able to exploit the Indian middle class housewife’s traditional distrust for food and drink not made at home. Question 2: Critically comment on the failure of products such as Rasna Royal. 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. with the arrival of fruit juices in tetra packs and aerated drinks in plastic bottles. Failure of Oranjolt Was available only a very few outlet. The factors that led to the revamping exercise for the brand are as follows: In the early 1990s. Many new entrants made venture into the market. after the markets opened up due to the liberalization Coca-Cola and Pepsi changed the dynamics of the market.4 higher than the SDC version due to less sales and no interest of the customer into the product the company had to discontinue. Growing awareness among the consumers regarding difference between natural and artificial flavors. Failure for Rasna AquaFun: The failure of Aqua Fun was blamed majorly on its blue color. They pointed that Rasna ignored the changing trends in . Steady increase in the price of Rasna SDC proved to be another hurdle. Availability of more international products in tetra packs Increase in purchasing power. limited exposure to the customers Low shelf life also contributed to the failure of this product. The decline in Pioma’s fortunes was mostly of its own making. the scope for SDC products such as Rasna that needed to be ‘prepared’ began declining. which was not accepted by the Indian consumer in the food products segment. was priced Rs. 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. It became extremely difficult for Pioma to hold on to its market shares and sales figures. Rasna AquaFun and Oran jolt. as it failed to understand the shifting preference of the consumers towards ready-todrink preparations. Moreover. Sales volume reduced by 7% every year. Participate in exhibition and fairs which helps direct interaction with customers 5. Variations were launched only when competition had strongly established itself. A notable feature of this commercial was the fact that it was voiced by one of the country’s most well known singers. New brand launching (2 brands i. 3.the market. gift offers to customers and other trade schemes.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. These included shop sampling. Q#3 Rasna Case Study Discuss the initiatives taken by Rasna to rejuvenate its brand with specific reference to the positioning and advertising aspects. 2. In light of the changing market dynamics and the intensifying competition. Asha Bhonsle. 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. . Rasna failed to maintain its stranglehold in the lower-income segment as less input was given to promotional activities initially. 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. Launch of Rasina ethnic basket and Rasna beverage and foods 7. house-to-house calls. Development of whole new range of non alcoholic beverage under the brand name Rasna for global market 6. retail window displays. The company undertook various creative promotional activities. and live demos on the method of preparation. Uses creative and innovative approach every year to sustain 4.