Marketing and Soft Drink Concentrate Essay Example for Free

Marketing and Soft Drink concentrate on EssayThe brand Rasna is owned by Pioma Industries that introduced the concept of Soft Drink Concentrate (SDC), a segment that had been created and nurtured by the comp whatever(prenominal) in the Indian beverages Market. The brand was originally launched by the put forward of Jaffe in 1976 and market placeed with the help of Voltas, but was re let outd to Rasna in 1979. When the proceeds did not do as wellspring as it was expected, in 1983, the advertisement was handed over to an advertising agency named Mudra Communications Ltd. Pioma Industries Limited is perhaps not a familiar name for the average Indian consumer.But Piomas brand Rasna is very well known. In fact, the name Rasna is al well-nigh a generic name for gentle imbibe concentrates in Indian beverages market. Rasnas extremely popular advertisements with the tagline I bash you Rasna had become an integral part of the Indian advertising folklore. In March, two hundred 2, Pioma announced a radical overhauling of its strategies for the Rasna Brand. This development was rather unexpected, as the brand had been lying hibernating(a) since keen-sighted. Rasna is the market leader in the 250 Crore Indian soft drink concentrate industry. The SDC industry is miniscule comp ard to the calciferol0 crore carbonated soft drink industry (CSD).The powdered soft drink concentrate industry is worth around 90 crore. During the 80s, Soft Drink Concentrate (SDC) was not a known concept. For the consumers, Soft Drinks were just the charged drinks which could be purchased in bottles and were usually consumed outdoors. Rasna came, and changed the whole mind set. COMPETITORS IN THE MARKET As the pioneers in Concentrated Soft Drink Industry in India, Rasna, neer had to hardiness any threatening from any of its competitors, be it a global player or a small local company.Powder concentrate accept 85% of the total soft drinks concentrate market. Here, in this study, w e ar considering both Powder and Syrup CSD as competition for the Brand Rasna. Following argon somewhat(a) of the competitors who tried to make their mark in the 250 Crore Indian soft drink concentrate industry 1. Tang- Kraft Foods. 2. Sunfill- Coca Cola. 3. Fanta Fun times- Coca Cola. 4. Sugarfree Dlite- Zydus Cadila. 5. Kissan Mr Fruit- Hindustan Unilever. The travel of a brand is not perpetually easy. The market is very dynamic and a brand needs to keep a track of the changes in the market. Rasna had to face such challenges as well.But it is the resurrection this brand has shown, through strategic marketing, in all instances that makes it stand out and lead the market. MARKET SHARE Rasna has always been recognised at large for Brand and Company. It ranks No. 1 in the beverages category as Most Trusted Brand of India. It is listed among the top 15 brands in the country. It was awarded as the most preferred brand in the SDC category at the FMCG Most Preferred Awards 2003 and 2004 and Consumer World Award 2004. It has pioneered not only with its arduous marketing strategies but overly with its proper scaled statistical distribution chain.Rasna has always concentrated on its marketing and brand building and has achieved an expertise in flavour technology. Its efficient management in production and market environments has harnessed to bring to the global consumers, technologically superior products in fruits, vegetables, beverages and confectioneries and to stand as the leader in processed food industry. Rasna has fitted and in-depth knowledge and information on Market sizes and behaviours, Growth prospects, Project Viabilities, Government Policies, Finances etc.and access to more, enabling the company to respond fast to any end with suitable recommendation.It believes that there is a huge and emerging market for Rasnas kind of product range, all over the world. Rasna is capable of managing global size manufacturing set-ups working on the most advance d technologies to cater to the huge markets, locally and globally. Rasna has managed to dominate the colossal SDC market because of its massive International operations. One of Rasnas biggest strength is its marketing and barters set-up, through which millions of customers worldwide is experiencing the flavour of satisfaction.It provides a strong and pro-active marketing support to its distributors and importers around the world- just so that their products stand out and apart on the shelves. Timely delivery schedules of its products anywhere in the world are what defecate helped them to reach a strong position in the global market. Rasna has its offices in the pastime countries * USA and Canada * UK and Europe * Saudi Arabia * Russia * Fiji This strong chain of distribution to large number of countries within a stipulated period of time has helped the brand gain a reputation in the market.It has also helped Rasna in creating enormous business relations all over the globe. The co untries which imports Rasna products globally are as under In new-fashioned years, the brand has had to face off challenges, though not from its direct competitors. International soft drink giants like Coca-Cola (Sunfill) and Kraft Foods (Tang) assimilate introduced competitor products in the market. PepsiCo India too is gearing to launch a glucose-based ready-to-drink beverage under the Lehar brand that bequeath be sold at price point of Rs. 5 for a 200 ml stock-keeping unit.All of them puzzle deep marketing pockets and standard products to lure customers away from Rasna. Even the profile of Rasnas target audience is changing. Kids today are a lot more aware, and their parents dont mind buying more expensive ready-to-drink products, which the MNCs have. But, true to its entrepreneurial spirit, Rasna is not about to give any ground to its rivals. Though some analysts feel that Rasna has been slow to react to the competition, Piruz Khambatta, Chairman, Rasna, still dismisses the challenge saying water is our only competition. According to the 2010 data, Rasna leads the SDC market.The market bundles of Rasna and all the competitors are as hold fasts * Rasna- 97. 2 % * Coca-Colas Sunfill 2% * Sugarfree Dlite- 0. 2% * Kissan Mr Fruit- 0. 1% and * Tang- 0. 5%. COMPARTIVE STUDY ON 4 Ps SCALE The Marketing meld Here in this study of the Brand Rasna, we are comparing the brand with its competitors available in the market on the scale of the 4 Ps. The 4 Ps of the marketing mix are 1. Product. 2. Price. 3. Promotion. 4. Place. Product Line of Rasna Rasna began with 9 flavours in 1982, and added the 10th in the year 1987. The company was revamped in the year 2002.* In 2002, Rasna changed its attend to and came up with a new logo. * The tagline of the company was also changed and with a new tagline Relish a Gain, Rasna has tried a deep penetration in the rural and semi-urban market. The recent product line of Rasna is as follows Name Pack Size Flavour Price () R asna Frootfun 32 provide Orange, Mango, Lemon, Pinaple 35 Rasna Frootfun 12 glasses Orange, Mango, Lemon 10 Rasna Freshfun 32 glasses Shahi Gulab, Keshar Elaichi, Kool Khus, Cola Cola 35 Rasna Freshfun 12 glasses Shahi Gulab, Cola Cola 10 Rasna 1 ka 2 2 glasses Orange, Mango, Lemon 1.Rasna FrootPlus Jar 500 grams Orange, Mango, Lemon 85 Rasna FrootPlus Pouch 750 grams Orange, Mango, Lemon 105 Rasna FrootPlus Pouch 500 grams Orange, Mango, Lemon 75 fisticuffs Details The operating product line of Rasna consists several sku. The company follows different take aim size on carton basis. These pack sizes may vary depending on local market demand. The following table will give a general idea of the pack sizes. Sr. No. Product Units per Carton 1 Rasna Instant Drink (powder beverages) Laminate Pouch Packings A 3 gm hammock pack 50*60.B champion Serve pouch pack (12 gm pouch-orange) 10*12*6 C 25 gm single serve sachet 12*2*12 D 250 gn replenish packs 36 E 500 gm refill packs 24 F 75 0 gm standby refill packs 15 G 1 kg standby refill pack 15 H Litro packs 1 ltr 12*10 Glass Jar Packings A 250 gm glass jar 40 B 500 gm glass jar 20 C 750 gm sleek glass jar 15 Plastic jar packing 1 kg 15 OTS tin Packing 900 gm tin 15 1. 5 kg tin 6 2. 5 kg tin 6 2 Litro Pack Instant Drink Pouch suitable to make 1 litre 12*10 3 Gofrut Instant Drink (5gm pouch) 72*10 4 Shakeup Instant Drink . 25 gm single serve pack 24*30 150 gm standby pouch 108 5 Rasna Lite 250 gm jar 15 6 Rasna Soft Drink Concentrate 32 glass pack 200 7 Rasna Single Serve Iced Tea 9 gm 14*24*20 Whereas Rasna has so many different varieties of drinks (flavours) and in so many different sized packets its competitors are lacking behind in both flavours and availability of different quantity packs. The Price of Rasna Accessing all socio-economic class Rasnas sole goal has been always to make profit with the volume sale. The pricing strategy has always been the key of Rasnas success.It targeted the mass r ather than the class. * Rasna has always made its products in such a way that it domiciliate be accessible to all socio-economic classes. * Its volume sale starts at as low as 1 popular in the name of 1 ka 2. * The added sugar product Rasna Frootplus starts from 2 and goes up to 105 for the family pack. * The box pack has a starting price of 10 which can make 12 glasses of drink and is known popularly as 10 ka 12. * The family box pack is available at 35 which is enough for 32 glasses of water. * Rasna has some skus which are very interesting for regular use.The air tight jar has different pack size with price range starting from Rs. 75. The company is forever focussing on the rural market of India. So, accurate pricing is very important for the companys growth. For Rasna, accurate pricing has been the key growth driver. They unsounded that the Indian market is highly segmented. And making products targeting each segment has helped a lot. Whereas pricing has been the key growth f actor for Rasna, the competitors have not been able to bang that benefit of pricing. Only Tang is available at a sachet of 2 which is again meant for making 1 glass of drink.Likewise, the other competitors cannot even come reason out to the pricing strategy of Rasna. Promotion Adding an Emotional Touch Rasna has from its inception relied heavily on advertisement. The famous mass media campaign, I love you Rasna was one of Indias interminable running TV ad. * The promotion of Rasna always highlighted a strong connection with its customers through brand association. * Rasna has always created a brand value by emotionally attaching the customer to their brand. * Focus of the promotion is always to promote the quality of Rasna.* Rasna spends a lot on Research on the target audience, and promotes there products accordingly. * Rasna has used babe characters in their advertising campaigns, and through them the company emphasised on the quality of products which was an effective way of promotion. * Rasna has done a great deal to understand the suffering of summer and to deliver a product which will ease the pain. This kind of unique and innovative marketing ideas and campaigns made Rasna the monopoly in the Soft Drink Concentrate industry till the time the competitors entered the market.Even now, no brand has been able to beat the promotional campaigns of Rasna. Going by the set standards of Rasna, we can say that the competitors have spent very less time and money understanding the Indian market and the promotional activities that works in the India. Place Distribution Channel of Rasna The distribution channel of Rasna follows 3 to 5 tier architecture. It follows the Super-Sub concept of distribution. The steps are as follows 1. First the product produced in a factory which is strategically fixed to minimise the transportation court.2. The packed product is sent to various company depots across the country to distribute and meet the respective market demand. 3 . From the company depot, the product is delivered to the different super stockists according to their previously placed order. 4. Then the goods are sent to the sub stockists or in some cases to the wholesale store. 5. The secondary sale from the super stockist or the sub stockist is ensured by the constant monitoring by the company personal. Rasna follows different distribution channel model according to local market demand.But for every model the end goal of the company is to deliver a quality product to the end user. With a distribution channel consisting of 35 depots across the country and 1. 8 million retail outlets Rasna is bound to be the leader. Among the competitors the only one that has a good and competitive network of distribution is Sunfill by Coca Cola, but still they are not able to compete as availability with retailers is not as widespread as Rasna. COMPETITIVE favour The competitive advantages of Rasna are listed below* macrocosm the Pioneer in the market Rasna is well known and very much trusted in the Indian market. * Being in the market for a long time, Rasna knows the Indian taste the best. * Having 7 state of the art production units across the country, the production is never disturbed for any reason. * Because of the widespread distribution network, it is more close to the public. * The marketing strategies used by the company are of superior standard. * Last but not the least, the pricing of the product, which is so low that it is affordable by the lowest segment of the pyramid also.The competitive advantages of Tang are * Being one of the largest brands of the world, Tang has the sustainability even if it is hit at the beginning. * Tang is available in variety of flavours based on local consumers preference. * Tang is fortified with vitamins and minerals. * It is available as powdered and ready to drink bottles. * The powdered Tang is available at low cost. The combative advantages of Sunfill are * Being a brand owned by Coca Col a, the distribution cost is cheaper, so can offer the product at a low and competitive price.* The taste is superior compared to other competitive brands. * Setting up of a production unit close to the target customer segment will help in better marketing. * The company can spend substantial come up on advertising and promotion. The Competitive advantages of Sugarfree Dlite are * It is a brand owned by a medical company, so people have trust in the product. * It contains no sugar, so it is healthier. * Has medicinal advantages. * Helps in controlling blood sugar level, at the same time gives the pleasures of a soft drink.The Competitive advantages of Kissan Mr.fruit are * It is there in the market for a long time, so knows the customer taste and preferences. * Tastier than many of the competitor products. * Supply chain is quite strong as its a product owned by Hindustan Unilever. SUGGESTIONS FOR GAINING UPPER MARKET SHARE As we conclude the study on the No. 1 Soft Drink Concentrat e in India, Rasna, I have the following suggestions to make so that the company can gain more market share and continue to be the leader of the industry Product- In terms of product, the following can be done1. Try to minimise waste in production, so that the cost of production comes down further. 2. Venture into new products, like ready to drink bottled drinks. 3. Try producing sugar free products so that even a diabetic patient can enjoy the drinks. 4. Health drinks and energy drinks is another field where the company can venture into. 5. Backward integration is another option that can be suggested to minimise the cost of production. Price- the Company can be more price effective and in turn can gain more market share if, 1.More products are offered in the lower price category. 2. Price be reduced for the larger quantity cartons or bottles. 3. New and introductory products are sold for lesser price so that people are interested in trying the new things. Promotion- In terms of prom otion, the company can follow the following suggestions 1. Use newer and cheaper modes of advertisement, like the social networking sites. 2. Spend more on Banners, posters, Hoardings. 3. Stop the use of sportspersons and celebrities, as the same doesnt have a long standing effect on the general public.4. Remove the time lag between the promotion and the availability of new products in the market. Place- Place plays a rattling role in the success of a company or a brand. The following are my recommendations for improving the market share 1. Go to the newer potential places which have not been tapped earlier. 2. The untimely dispatch of goods from the depot to the super stockist needs to be taken care of as it may lead to cancellation of order bookings. 3. Unavailability of goods at certain periods needs to be taken care of with a proper distribution control.4. Promotional events along with the distribution of brochures, stickers and leaflets should be done through sub-stockists and retailers which will help in increasing the brand value.References During the preparation of this project, help and references has been taken from many web sites and blogs and articles. They are mentioned here -Rasna Pvt Ltd. Official site. -Wikipedia-the free encyclopaedia -Puneet Tandon Blogs -Economic Times -Times of India Articles -4psbusinessand marketing. com.