Advance Marketing Management

Advance Marketing Management
27/01/2010
PROJECT BY ROHAN DALVI

RASNA PGDM-RM
INTERNATIONA ROLL NO-03
L PROF: MANGESH BORSE
Advance Marketing Management | Project
1
INDEX
S.NO TOPIC
PAGE NO.
1. EXECUTIVE SUMMARY
2. COMPANY PROFILE
3. HISTORY
4. PRODUCT PROFILE
5. STDP ANALYSIS
13
6. STRENGTHS AND WEAKNESSES
16
7. BCG MATRIX
19
8. REASONS FOR FAILURE
22
2
9. MARKETING,ADVERTISING AND PR
30
10. BRANDING
36
11. MARKETING IN INDIA
42
12. NEW AVENUES
44
13. KEY DEVELOPMENTS OF
RASNA 46
14. BIBLIOGRAPHY
52
Acknowledgements
Any attempt at any level cannot be satisfactorily completed without sincere
support
And guidance of learned people And my project mentor Mr.Prof. Mangesh Borse.
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To all those whom I interviewed in Primary Survey and
helped in Completing the project
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Executive Summary
Pioma Industries Ltd. (Pioma) is perhaps not a familiar name for the average Indian
consumer. However, Pioma's brand 'Rasna' is very well known. In fact, the name Rasna is
almost a generic name for soft drink concentrates (SDC), a segment that had been created
and nurtured by the company in the Indian beverages market. Rasna's extremely popular
advertisements with the tagline, 'I love you Rasna,' had become an integral part of the Indian
advertising folklore.
Rasna is a brand that every Indian in the World knows of as standing tall vis-a-vis quality
flavor, and enjoyment in the in-house market of soft drinks. A favourite of the whole family.
I have chosen ‘Rasna’ as Struggling Brand in current market. The report focuses on how
rasna is fighting against the global soft drink companies like Pepsi, Coco-cola to name few.
Rasna Private Limited is the largest soft drink concentrate producer in India. Rasna Private
Ltd. manufactures and exports beverages and processed foods in India and internationally.
It offers drink in powder forms, milkshake mixes, soft drink concentrates, fruit jams, sports
drinks, fruit juices, ice tea, and non alcoholic beverages, as well as provides flavors for soft
drink, confectionery, bakery, ice-cream, and pharmaceutical industries. The company also
offers curries, pickles, curry pastes, chutneys, snacks, bites, and fruit syrups. Rasna Private
Ltd. was formerly known as Pioma Industries Ltd. The company was incorporated in 1992
and is based in Ahmedabad, India.
The 275 crore, Ahmedabad based company, has made Rasna, into one of the most
recognized brands in India. Rasna single-handedly created the Indian soft drink concentrate
market and is now the leader in this category with almost 93% market share and about 82%
of the in-house consumption of soft-drink market, making it a big force to reckon with, in any
soft drink category. (Source: DBM India, 2007)
Rasna has 6 regional offices and a strong distribution network including, 4, 00,000 direct
retailers and 7, 00,000 in-direct retailers. It has 24 warehouses and 2000 stockists across
the country. Apart from an extensive network in India, Rasna also has offices in USA, Dubai
and Bangladesh and a manufacturing base in U.A.E and exports to more than 40 countries
across the world.
Rasna has extended its range to include other products, synergetic to it's basic activities, by
introducing a variety of processed food products for the global consumer. Rasna has been
gain 1st rank in the soft drink beverage category (Source:Brand quality 2007). Rasna
received the 1st FMCT Award in the soft drink concern category in 2007.
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Rasna recently has been struggling to find its soul. All the way it was promoting itself on
economy platform which has become redundant because of the competitive pricing from
Carbonated softdrinks.
Company Profile:
PIOMA INDUSTRIES is a leading manufacturing company that produces the best

Beverages and Processed Foods viz. Sports Energy Drinks, Instant Drinks, Rose Syrup,
Soft Drink Concentrate, Ice Tea, Fruit Jam, Milkshake Powder and Fruit Cordial as per the
standards laid by HACCAP, ISO and ITQI. In the Indian market, we are known as one of the
specialized Instant Drinks Exporters and Suppliers. Established in the year of 1980, the
company has been owned by Mr. Piruz Khambatta and managed by Khambatta Family
Trust.
Values:
Rasna always deliver the products that are fresh and hold all the essential ingredients,
offered by nature. We understand customers’ demand as well as taste and deliver exactly as
per the same. In order to attain all Socio Economic levels, PIOMA INDUSTRIES maintains
cost effectiveness in all its operations, thereby delivering value added economic products.
We are an organization, working with ultimate transparency and with this distinguishing
feature we have been strengthening relations with our each and every associate.
Recognition:
Over the years, during our journey to the excellence, we have been
conferred with many prestigious awards and accreditation. Followings are
some of Recognitions that are testimony of our achievements and tireless
customers association:
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• Rank no.1 in the beverage category as Most Trusted Brand of India

by Economic Times
• One of the top 15 brands in the country
• Most preferred brand in SDC category at the FMCG Most Preferred

Awards 2003 & 2004 and Consumer
• India’s Greatest Brand Builder – Mr. Piruz Khambatta
• Young Entrepreneur Award – Dr. Dadabhai Naoroji Millennium Award

– Mr. Piruz Khambatta
• Marketing Man of the Year Award – AMA – Mr. Piruz Khambatta
• Superior Taste Award 2008 instituted by The International Taste &

Quality Institute, Belgium
Fact File:
Name of CEO : Mr. Piruz Khambatta
Year of Establishment : 1980
Bussiness Type : Manufacturer, Supplier & Exporter
Number of Employees : Appx. 100
Turnover : 20 to 25 crore
Annual Sales : USD 5,30,000.00
History:
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
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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.
Key Individuals in Company:
Mr. Areez Khambatta,

Founder and Chairman,
Pioma Industries
Mr. Areez Khambatta is Founder and Chairman of the firm that developed the Rasna
drink product.After graduating with a degree in Chemistry from
Gujarat College, he chose to continue his studies in food flavor creation at the
University of Minnesota.
Mr. Areez Khambatta earned numerous accolades in the Indian military and
continues to support the community of Gujarat by devoting his efforts to the
development of entrepreneurs. He has been a guest lecturer at the Entrepreneurship
Development Institute of India, the Indian Institute of Management and the B.K.
School of Management.
Mr. Piruz Khambatta,

Chairman and Managing Director,
Rasna Private Ltd.
Mr. Piruz Khambatta leads India's largest and most
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popular soft drink concentrate brand, Rasna. Piruz Khambatta joined his father’s business
when he was 18. Since then, the fruit juice concentrate maker has grown ten-fold and
spread its wings to 40 countries. As Chairman & Managing Director, Rasna Pvt. Ltd., Piruz
Khambatta supervises the entire operations. With him at the helm, Rasna developed core
strengths in brand salience, consumer understanding led marketing and a distribution
network spanning the length and breadth of the country. This highly competitive company
remains strong on innovations and has an effective promotion and advertising platform
based on intensive research. Under his direction, Rasna has sustained market growth and
currently holds 90 percent market share. Rasna has been recognized for its innovative
advertising and marketing techniques and is ranked as the number one trusted beverage
brand in India in a survey conducted by Nielsen and the Economic Times. Mr. Piruz
Khambatta earned two Bachelor's degrees; one in Biochemistry and one in Law, and has
completed management courses at the Wharton School.
Product Profile:
Rasna is the market leader in the Rs 250 crore Indian Soft drinks concentrate industry. The
SDC industry is miniscule compared to the 5000 crore carbonated soft drink industry ( CSD).
The powdered softdrink concentrate industry is worth around 90 crore.
Rasna began with 9 flavours in 1982. The 10th flavour was added in 1987. Rasna was using
children in advertising the brand. Like the Johnson's baby, Rasna girl was very popular
among the public. Rasna have used the catchy baseline " I love u Rasna " for decades.
Even now people remember Rasna Baseline.
Products / Services Offerings :
Manufacturers and Exporters of

Rasna Instant Drink
GoFrut Instant Drink
9
Fruto Instant Drink

Body Fuel:Health Drink
Rasna Shake Up
Rasna Juc Up
Rasna Soft Drink Concentrate
Rasna Fruit Jams
Rasna Fruit Cordial
Rasna Lite:1/3 Sugar
Rasna Flavors
Product Packaging:
FOOD AND POWDER BEVERAGES

Units No. of
Sr.No. PRODUCT Per Cartons/20'
Carton Container
RASNA INSTANT DRINK (powder
1.
beverages)
LAMINATE POUCH PACKINGS
a 3 gm pouch pack 50 x 60 420
Single Serve Pouch Pack - (12 gm 10 x 12

b 910
pouch - Orange) x6
12 x 2
c 25 gm single serve sachet (Orange) 1100
x 12
250 gm refill packs (Orange/ Mango/

d 36 1050
Pineapple)
500 gm refill packs (Orange/ Mango/

e 24 1000
Pineapple)
f 750 gm Standy Refill packs 15 1150
10
Orange & Mango
1 kg Standy Refill Pack (Orange/

g 15 850
Mango/ Pineapple)
h. LITRO PACK 25 GMS (1 Liter) 12 x 10 1350
GLASS JAR PACKINGS
250 gm Glass Jar (Orange/ Mango/

a 40 1000
Pineapple)
500 gm Glass Jar (Orange/ Mango/

b 20 950
Pineapple)
c 750 gm Sleek Glass Jar 15 785
Orange/ Mango/ Pineapple/ Lemon
PLASTIC JAR PACKING - 1 kg 15 940
Orange/Mango/Pineapple/Fruit
Punch/Lemon
OTS TIN PACKINGS
900 gm Tin (Orange/ Mango/

a 15 1000
Pineapple)
1.5 kg Tin
b 6 1400
(Orange/Mango/Pineapple/Lemon)
2.5 Kg Tin (Orange/ Mango/

c 6 960
Pineapple)
LITRO PACK INSTANT DRINK

2.
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Pouch suitable to prepare 1 liter 12 x 10 1350
Orange/Mango/Pineapple/Strawberry
GOFRUT INSTANT DRINK (5 gm

3. 72 x 10 850
pouch)
Orange/Mango/Pineapple/Lemon
SHAKE UP INSTANT DRINK (MILK

4.
SHAKE)
25 gm single serve pack (Strawberry,

24 x 30 780
Mango, Choclate)
150 gm Standy pouch 108 800
RASNA LITE (1/3 Sugar) - 250 gm

5. 15 2300
Jar
RASNA SOFT DRINK

6.
CONCENTRATE
a 32 glass pack 200 650
RASNA single serve Iced Tea -9 gm. 14 x 24

7. 1386
Lemon, Apple & Peach x 20
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INDIAN ETHNIC FOOD PRODUCTS
Sr.No. PRODUCT Units No. of

Per Cartons/20'
Carton Container
1. CURRY IN A HURRY (Retort Packs)
Dal Mughlai, Punjabi Kadhi, Chana
Masala, Dum Aloo, Aloo Muttur,
20 2000
Baingan Ka Bharta, Shahi Rajma & Dal
Makhani.
Muttur Paneer, Palak Paneer, Navratan
20 2000
Korma & Paneer Makhani, Pao Bhaji
RASNA PREMIUM PICKLES (400
2.
gms)
Mango/Mixed/Chilli/Lemon 12 3000
3. RASNA CURRY PASTE - (400 gms)
Tikka, Biryani, Chicken, Tandoori,
12 3000
Madras, Vindaloo
RASNA PREMIUM CHUTNEYS - 400
4.
gm (Carton)
Mango chutneys 12 3000
Coriander, Tamarind, Mango Grey,
12 3000
Lemon
Tamarind Date, Mint, Red Relish,
12 3000
Coriander Mint and Mix Fruit chutneys
RASNA FRUIT JAMS - 450 gm sleek
jars
Strawberry, Mixed Fruit, Mango and
12 2400
Pineapple
RASNA FRUIT JAMS - 500 gm jars
Strawberry, Mixed Fruit, Mango and
12 2400
Pineapple
RASNA ROSE SYRUPS – 710 ML
5.
bottle
Rose 12 1200
6. RASNA FRUIT CORDIAL (710 ml) 12 1200
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STDP Analysis:
Segmentation:
Call it the swadeshi branding strategy. Even as PepsiCo India has decided to up prices of
smaller 200ml bottles, domestic players like Parle Agro and Rasna are shifting their focus to
economy packs which are priced at affordable rates. The focus seems to be on a ‘mass
market strategy’ to target both rural and urban consumers across the country.
To announce the launch of ‘Magic Frooti’ priced at Rs 2.50 (for 60ml), Parle Agro is in the
process of rolling out an integrated marketing plan with the theme line ‘Paanch Ka Do’. On
the other hand, Rasna is also aggressively promoting its new launch ‘Cola Cola’ (in sachets)
which is available for just 50 paise. And Rasna is using the adline ‘Ek Ka Do’ to promote its
new launch.
Targeting:
Rasna is a brand that every Indian in the World knows of as standing tall vis-a-vis quality
flavor, and enjoyment in the in-house market of soft drinks. A favourite of the whole family.
Rasna has, over the last 10 years, successfully spread its wings with it's Exports Division,
offering the extremely successful Soft Drink Concentrates and Instant Drink Powders and
Ethnic range of products to the global markets.
Addressing a press conference in March 2003, the Chairman and Managing Director of
Rasna, Mr Piruz Khambatta, said in a market dominated by MNCs, Rasna has carved out a
niche and has garnered a market share of about 86.9 per cent as per ORG survey
conducted in December 2002. Now we are targeting a bigger export growth while reaching
out to the huge untapped rural marketplace. *(Source: March 11 ,2003 Business Line)
Piruz Khambatta, said: “At present, we are exporting our Rasna soft drink concentrates to
around 40 countries. We are now aiming to enter new markets in the CIS regions, including
Uzbekistan, Kazakhistan, Kyrghystan and also more countries in African continent.”
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“However, there is lot of potential still unexplored especially in CIS and Africa. We want to
have our manufacturing units there as most of these countries have a high customs duty of
around 60%,” Khambatta added. The Chairman said that the company is seeking joint
ventures with local firms in order to enter these markets but he refused to reveal the
companies with which Rasna is in contact.
Differentiation:
"Our aim is to make Rasna part of the daily life of the common man. With the launch of this
new product that gives a glass of Rasna at 50 paise, we are geared to touch the lives of 86
per cent of Indians, who have not had the privilege of enjoying a soft drink," Mr Piruz
Khambatta.*
And it is here that many multinationals have failed to read the Asian consumer. The Indian
market is replete with many such examples of foreign brands falling flat because brand
managers and marketing pundits failed to pay attention to the value proposition. Way back in
the 1980s, the largest selling soft drink concentrate brand Tang was launched with much
fanfare in India. Local brand Rasna was the only effective competition. Tang managers were
so cock sure of the power of the brand that it was priced at several times higher than Rasna
per unit. The value conscious Indian urban consumer was not impressed and Tang was one
of the first powerful global brands to bite the dust in India. (Source: Stratagic Innovators
Arindam Chaudhuri)
Positioning:
Rasna is Positioned as ‘an affordable drink for the masses’, contrary to its existing image of
being a family drink. Our products cut across ages, family, children and economic strata.
Rasna is more aware than anybody else about the price-centric behavior of the Indian
market and have accordingly positioned their products. So far, Rasna has been present in
only two price segments – Rs 4 and Re 1. But this year we have made an effort to raise the
number of segments so that Rasna becomes affordable to more people in newer regions.
Sometime back, Rasna had a project titled `Rasna for one billion Indians.’ Their range is
such that the pricing is not a barrier for one who resides in the slum; we have the Rs. 0.80
range for them. “We want them to feel that Rasna is a part of their everyday life. I don't think
any other FMCG company has gone to the extent we have in promoting a brand among the
masses” Mr Piruz Khambatta.*
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The different positioning strategies that are available are:
•Attribute positioning: Company positions itself on attribute, such as size or

number of years in existence.
•Benefit positioning: - The product is positioned as a leader in a certain benefit.
•Use or application positioning: - Positioning the product as best for some use or
application
•User positioning: - Positioning the product as best for some user group
•Competitor positioning: - The product claims to be better than the competitor
•Product category positioning: - The product is positioned as the leader in a

certain product category
•Quality or price positioning: - The product is positioned as offering the best value
Strengths & Weakness:
Strengths:
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Rasna is a Trusted Brand because of:
 Capability to understand Indian Taste
 Distribution Network
 Superior Marketing
 Pricing
One of Rasna's biggest strength is it's Marketing and Sales setup, through which Millions of
Consumers worldwide are experiencing the flavor of satisfaction
Having commenced international operations in 1993 Rasna is currently marketing it's diverse
Product range in a majority of the world markets. We provide a strong and Proactive
Marketing support to our Distributors and Importers around the World-just so that our
Products stand out, and apart, on the shelves. Timely Delivery schedules of our products
anywhere in the world is what has helped us to reach a strong position in the global
markets
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 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,
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innovating new flavors at regular intervals and analyzing new flavors at regular intervals.
Weakness:
By broadbasing its target audience, and by extending its product to all the sectors of the
community, Rasna brand lost its core slot, which its competitor Sunfill captured
with its commercial depicting a child on a hunger strike giving in to his temptation
for a glass of Sunfill. However, Rasna countered this argument saying that Rasna
products were always targeted at the family and never specifically for children.
Based on Primary Survey, some emerged weaknesses are listed:
• Inability to adapt to change in Consumer buying behaviour from preparatory

drinks segment to Ready to serve soft drinks.
• Confusion regarding Brand Image focus Youth or Children.
• Too much Varients of Soft drink concentrate in quick succession without

gauging needs.
• Strong Positioning of Rasna SDC as a cost-effective drink
• Do-it-yourself concept was be cumbersome and hence unappealing to

consumers.
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BCG Matrix
Stars Question Marks
• Fruit Plus • Rasna Shake-up
• Rasna Ice tea • Litro Pack Energy

Drink
Cash Cows Dogs
• Rasna 1ka 1-Mango • Rasna Ustav- Cola Cola
• Rasna Instant Drink • Body FUEL
• Rasna Rose Syrup • Dual Form - Powder &

Liquid
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The company can try one the following 3 strategies to increase its business –
1. Intensive growth – a review of whether any opportunities exist for improving the
existing business performance. This can be achieved in 4 ways (Anshoff’s Model)
a) Market penetration
b) Market development
c) Product development
d) Diversification
Anshoff’s Model
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Market Segmentation Product Development

Old
• Fruit Plus • Rasna Shake-up
Marke
t • Rasna Ice tea • Litro Pack Energy
Drink
•
New Market Diversification

Market
• Rasna 1ka 1-Mango • Rasna Ustav- Cola
Cola
• Rasna Instant Drink
• Body FUEL
• Rasna Rose Syrup
• Dual Form - Powder
& Liquid
2. Integrative growth – By backward Integration, Forward Integration, or Horizontal

integration.
3. Diversification growth – Exploiting opportunities in new businesses.
Competitive Strategy:
Rasna is as healthy as any fresh juice brand. Moreover, we are better value-for-money than
Tropicana or Real. A glass of Rasna along with sugar will cost Rs 1.25 in comparison to a
glass of Tropicana, which will cost Rs 10 per glass.
In addition to the standard fruity flavors, Rasna was made available in many local flavors
such as 'Kala Khatta' (tangy), 'Khus' and 'Rose' that became very popular. To ensure high
quality standards, Rasna's products were manufactured in a totally automated environment.
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Advanced world-class technology was used for packaging. The packs were pilferage-proof
with moisture-resistant lining, thus, retaining both flavor and freshness. One of the major
factors responsible for Rasna's rapid sales growth was its well-entrenched, efficient sales
and distribution network covering the entire country.
During summer, when the sales of the company soared, Pioma recruited additional sales
force on a temporary basis to ensure availability of the products. The company had 24
warehouses in various parts of the country, 24 distributors and 2000 stockists. These
stockists served over 2,00,000 retail outlets directly and over 2,00,000 retail outlets indirectly
via wholesalers.
Reportedly, Rasna's product range was one of the world's largest distributed food brands at
that time. To retain the interest and loyalty of its consumers, 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.
The company devised innovative methods every year to sustain the element of fun and
surprise. In addition, Pioma participated in various exhibitions and fairs that provided an
excellent opportunity for direct interaction with the consumers. The fairs also helped the
company increase its visibility in the rural markets by distributing large number of free
product samples to consumers in the fairs. Above all, Rasna's advertisement campaigns
helped it become a trusted and popular brand amongst Indian consumers. Pioma was one of
the few companies that went in for large-scale advertising on the state-owned TV channel,
Doordarshan. Rasna also sponsored many programs on the channel, especially the ones
that appealed to children, such as the animated series, 'Spiderman.'
Product Strategy: Failure
By 1995, Rasna accounted for an estimated 90% of the total SDC market in India. The
brand also led the in-home soft drink consumption market in India with an estimated market
share of 75%. However, Pioma's 'dream-run' seemed to be coming to an end with the
heightened activity in the Indian beverages market. In the early 1990s, after the markets
opened up due to the liberalization a Coca-Cola and Pepsi changed the dynamics of the
market. Moreover, with the advent of fruit juices in tetrapacks and aerated drinks in plastic
22
bottles, the scope for SDC products such as Rasna that needed to be 'prepared' began
declining.
The consumers soon began turning towards colas, fruit juices and other 'ready to drink'
products. At the same time, a large number of other national and regional players entered
the market. Reportedly, Pioma found it extremely difficult to hold on to its market shares and
sales figures. According to many analysts, the decline in Pioma's fortunes was mostly of its
own making, as it failed to understand the shifting preference of the consumers towards
ready-to-drink preparations. They pointed that Rasna ignored the changing trends in the
market. Variations were launched only when competition had strongly established itself.
Moreover, Rasna failed to sustain its stronghold in the lower-income segment as it did little
to sustain the brand's popularity among the consumers (after its initial promotional
exercises).
Pioma finally decided to extend Rasna's brand portfolio and launched a pre-sweetened mix-
and-drink product in 1996. Targeted at the upper end of the market, Rasna International was
a nutritious and vitamin-enriched version of the regular Rasna SDC version.
This was followed by the launch of Rasna Royal, positioned as a vitamin-enriched version of
Rasna. It was targeted at health-conscious consumers who did not prefer Rasna SDC on
account of its synthetic image (that is usage of synthetic colors and artificial flavors). These
two products were priced at the higher end, as against the 'low price' policy followed by
Rasna for the other products.
The sales of Rasna Royal did not pick up from the very beginning. Analysts attributed its
failure to the strong positioning of Rasna SDC as a cost-effective drink. While consumers
were willing to bear the inconvenience of preparing the SDC version on account of its lower
cost, they were unwilling to do so for Rasna Royal as they had paid a higher price for it
(Rasna Royal was priced Rs 4 higher than the SDC version). Eventually, the company had
to discontinue Rasna Royal. On the other hand, Rasna International became quite
successful, primarily because it did not need any preparation. Commenting on the analysts
forecasts that Rasna International might not succeed given the high pricing of the product,
Khambatta said, "Contrary to common perception, Rasna International has done
exceedingly well and has created a market segment for pre-sweetened fortified soft drinks."
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By 1999, Rasna International's sales accounted for an estimated 15% of the Rasna's total
turnover of Rs 650 million, even as SDC's contribution kept declining. In summer 1999,
Rasna also went against its tradition of launching 'one-new-flavour per season' and launched
two new flavours, Rasna Yorker (Yorker) and Rasna Aqua Fun (Aqua Fun). The company
launched these products in order to exploit the Cricket World Cup fever. Kapil Dev was
brought in to endorse Rasna Yorker. Though Yorker succeeded moderately, Aqua Fun was
a dismal failure. The failure of Aqua Fun was attributed mainly to its blue color, which was
not readily accepted by the Indian consumer in the food products segment. Pioma's efforts
at broadening its product portfolio continued with the launch of Oranjolt in 2000, an aerated
fruit drink, available in 1.5 litre PET bottles.
The brand, launched in selected outlets, failed to attract customers and soon had to be
withdrawn. Commenting on Oranjolt's failure, Khambatta said "Oranjolt was never meant to
be an aerated drink and it was just, one in the range of innovations that Rasna constantly
did." However, he agreed that Oranjolt's failure was a result of certain inherent product
problems.
It was common practice for many Indian retailers to switch their shop refrigerators at night.
This resulted in quality problems, as Oranjolt required refrigeration at all times. The short
shelf life of the Oranjolt also contributed to its failure as the company failed to set up a strong
distribution network for the product, which could allow it to replace Oranjolt every three to
four weeks.
Following its failure, the company sent the product for further improvement at its R&D facility.
Despite its efforts, the woes of Rasna increased through the late 1990s and 2000. Rasna
SDC's volume continued to shrink by over 7% every year. Moreover, the steadily increasing
prices of Rasna SDC, over the years proved to be another significant hurdle for Pioma.
Initially priced between Rs 8-10, Rasna SDC was sought by the middle-class family as an
affordable hospitality drink during the 1980s. By the late 1990s, it had gone up to Rs 22-24,
which according to the analysts was supposedly above the reach of its target audience.
24
However, company sources argued that the rise in prices had been in line with the inflation
through the years and was always in the affordable range. The growing awareness among
the consumers regarding the difference between natural and artificial synthetic flavors, the
increasing purchasing power and availability of more international products in tetrapacks all
resulted in the decline of Rasna's market. According to estimates, the tetrapack category
had increased three fold (to Rs 6 billion) between 1993 and 2001. In 2001, only 12% of the
soft drinks were consumed at home. The shift in consumer tastes towards colas and fruit
juices continued unabated. Alarmed by its failure to extend Rasna's product portfolio, Pioma
began planning a three-year revamping program in mid-2001. The program aimed at
overhauling all its operations and creating a new brand identity for Rasna. In the fiscal year
2001-2002, Pioma Industries changed its name to Rasna Ltd.
The major thrust of the company's restructuring exercise was to reach out to the masses and
create brand awareness in towns and remote villages.
Emphasis was also laid on the availability of Rasna products in the price range of 80 paise
per glass to Rs 4 per glass. Till now, Rasna was available only in two price segments – Rs 4
and Re 1.
The company's principal focus in 2002 was to increase the number of segments to make
Rasna products more affordable to larger various sections of society. The company also
extended its strategy of Rasna being a mass drink to its global markets.
Commenting on this, Khambatta said, "We have made sure that the Rasna International
brand is placed along with the other preparatory soft drink brands such as Tang in
international retail stores, and not in the Indian foods counter in those stores." Rasna's
revamping exercise included increasing the per capita consumption of Rasna from 15 to 100
glasses, reaching across to all sectors of society and age groups. Moreover, plans were also
made to foray into related segments in the food sector in the next two years and strengthen
its global operations. Efforts were also made to establish itself as one of India's top 10
products in terms of brand recall and visibility and become one of the top 20 most admired
companies in the country.
25
Rasna announced these plans in early 2002 and called the overall exercise as the 'Rasna
for one billion Indians' project. Khambatta, explaining the company's new marketing strategy
said, "We are implementing a strategy through which we wish to make consumers drink
more Rasna as well as get new people accustomed to the brand. We have come out with
more product offerings to attract the new consumers. For those who are already used to the
Rasna taste, we have brought out value-added products. We are more aware than anybody
else about the price-centric behavior of the Indian market and have accordingly positioned
our products." According to its renewed distribution strategy, Rasna planned to reach an
estimated 7,00,000 retailers annually. With its plans to reach the rural areas, the company
began strengthening its distribution channels in order to cover villages with a population of
up to 5,000.
Following this, the company appointed 47 additional sales personnel, 350 cycle salesmen,
and 145 pilot salesmen in addition to new stockists for the relevant areas. It also engaged
500 vans for the coverage of rural areas. However, Rasna was careful not to neglect the
urban markets.
According to company sources, "There are pockets with rural consumers even in the metros
and they are large in number." Hence, the company's advertisements also targeted the urban
and semi-urban families. As a part of its new strategy, the company focused on multi-media
advertising and promotion, wherein an effective marketing strategy was adopted to
communicate the brand message, using the different media such as TV, radio and print.
Mudra Communications (Mudra), a leading advertising agency, undertook the advertising

and promotional activities. Mudra developed an advertisement campaign constituting five
television commercials, radio advertising and outdoor media campaigns. Special emphasis
was laid on 'outdoor visibility' and over 45,000 bus shelters, 5,000 pole kiosks, 300 bus
panels and over 200 billboards were used to display the brand message across the country.
With a new, catchy brand tagline, 'Relish a gain,' the campaign highlighted the affordability
and easy availability of Rasna products. Speaking about the changed corporate identity and
its reflection in advertising campaigns, Khambatta said, "Our aim is to reach out to the
masses and we wanted a direct link between the brand and our advertising."
Commenting on the advertisement campaigns Sachin Kamath, Accounts Director, Mudra

Communications said, "We changed the advertising strategy to include every age group and
every section of the society. 'Relish a Gain' concept has been created in Hindi as a song,
which covers the total range of products to focus on Rasna's values in different moments of
life." According to company sources, the message expected to be conveyed through the
26
advertisements was, "Whenever you feel like celebrating, drink Rasna". Special emphasis
was laid on its affordability and value-for-money. Moreover, its product lines were
categorized into two brands (Rasna Utsav and Rasna Rozana) so as to effectively target
different consumer segments in India.
While Utsav, an improvement over Rasna SDC, targeted the lower income group in rural
markets, Rozana, a mix and serve powdered drink (no need to add sugar) targeted the
convenience seeking semi-urban and urban consumers. Rasna relaunched Rasna
International as well under the sub-brand, Rozana Fruit Booster. Fruit Booster was aimed at
competing with Sunfill and Tang (both pre-sweetened powdered soft drinks), serving the
upper end of the market (See Table I for Rasna's new brand profile). In addition, a completely
new identity, a new 'leaf' symbol was added to the Rasna brand name. Commenting on this,
Khambatta said, "Apart from talking about the core values of Rasna, we also wanted a
symbol for Rasna so that the product gets distinct visibility.
We want the consumers to identify Rasna from the image of the leaf." Since the company
planned to focus on rural markets, it felt that the product awareness could be best created
by means of a symbol and hence the leaf (with red and green background) was chosen as
the brand symbol. All the new brands were enriched with vitamins and ingredients to render
instant energy.
Commenting on the launches Khambatta said, "With the launch of the Rozana line, we are
reiterating our commitment to providing a health gain to our consumers. The products in the
Rozana line contain Fruit Powder, Glucose/lactose, Vitamin A, C, B2, B6 as well as Niacin,
Folic Acid, Calcium and Phosphorus, making it one of the healthiest and most refreshing soft
drinks available. Cutting across all segments, Rasna has also ensured that the Rozana line
is affordable to all sections of society."
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
27
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.
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.
While Del Monte wanted to leverage Rasna's vast and efficient distribution network, the
latter planned to access Del Monte's technical expertise. Though the venture was planned to
take off in mid-2002, analysts felt that the decision to foray into other segments of the food
market might not yield expected results given the intense competition in the sector.
However, brushing off the apprehensions, Khambatta said, "I believe that competition is an
opportunity for growth. We will fight competition with good quality. Our strength lies in
Rasna's nationwide distribution network. We are not scared or nervous of the cola giant
Coke." Analysts also commented that Rasna was making a big mistake by trying to make
Rasna 'everything to everyone.'1 Commenting on this, Jagdeep Kapoor, Managing Director,
Samsika Marketing Consultancy, said, "If you try to be everything to everyone you might end
up being nothing to anyone."
Kapoor said that focus on children had significantly contributed to Rasna's success. By
broadbasing its target audience, and by extending its product to all the sectors of the
community, Rasna brand lost its core slot, which its competitor Sunfill captured with its
28
commercial depicting a child on a hunger strike giving in to his temptation for a glass of
Sunfill. However, Rasna countered this argument saying that Rasna products were always
targeted at the family and never specifically for children. (However, company sources agreed
that in the past, children had been their means to get households to buy their product).
According to an advertising professional who was previously associated with Rasna, "The
problem with Rasna lies in its advertising, which is clueless about where the brand really fits
in today's scenario.
Rasna entered middle-class homes by saying you have so many glasses from one pack,
which works out to so much per glass. However, with the colas getting belligerent and prices
coming down steeply, that advantage ceased to exist. A glass of cola would be at most 20%
more expensive, but that is offset by the cola associations – young, hip, aspirational.
Increasingly, in middle-class homes, Rasna is not seen to be 'with it'. So what is Rasna?
Where does it fit? Is it still relevant?" Industry observers remarked that there were three
critical success factors in the preparatory drinks segment – economy, taste and children's
affinity. And with almost all the players focusing equally on all the three factors, Rasna
indeed seems to have a tough time ahead to retain its leadership status.
Rasna International plans to establish a plant in Bangladesh and begin operations

from next year.( By IANS Tuesday,17 June 2003, 12:30 hrs)
Sumit Sachdev, business development manager of Pioma Industries, the export

subsidiary of Rasna International, announced the move at a press conference here
Tuesday to mark the re-launch of Rasna drinks in the local market.
Rasna will now be available in five fruit flavours, including orange, mango and
pineapple, and in four different packs with the biggest priced at 170 taka.
29
Other products of Rasna International like paranthas, canned food and curry paste
will also be available in the Bangladeshi market, said Sachdev.
The firm had stopped Bangladesh operations because of fierce competition from
local and Pakistani firms. Rasna International has now entered the Bangladeshi
market in a joint venture with Agami Distribution of the Dekko Group.
Rasna is available in 48 countries and the firm has a major market share in the
Middle East, Sachdev said.
Marketing Advertising and PR:
Strategies:
Rasna’s extremely popular advertisements with the tagline, ‘I love you Rasna,’ had
become an integral part of the Indian advertising.
The company also had a efficient sales and distribution network across the country
so that the product is available for the target audience. It also employed extra sales
force during summer season to match the demand.
The company emphasizing to increase the number of segments to make Rasna
products more affordable to larger various sections of society and extended its
strategy of Rasna being a mass drink to its global markets.
The company focused on multi-media advertising and promotion, wherein an
30
effective marketing strategy was adopted to communicate the brand message, using
the different media such as TV, radio and print. Mudra Communications, a leading
advertising agency, undertook the advertising and promotional activities.
Mudra developed an advertisement campaign constituting five television

commercials, radio advertising and outdoor media campaigns. Special emphasis
was laid on 'outdoor visibility' and over 45,000 bus shelters, 5,000 pole kiosks, 300
bus panels and over 200 billboards were used to display the brand message across
the country. With a new, catchy brand tagline, 'Relish a gain,' the campaign
highlighted the affordability and easy availability of Rasna products. Speaking about
the changed corporate identity and its reflection in advertising campaigns,
Khambatta said, "Our aim is to reach out to the masses and we wanted a direct link
between the brand and our advertising."
Commenting on the advertisement campaigns Sachin Kamath, Accounts Director,

Mudra Communications said, "We changed the advertising strategy to include every
age group and every section of the society. 'Relish a Gain' concept has been created
in Hindi as a song, which covers the total range of products to focus on Rasna's
values in different moments of life." According to company sources, the message
expected to be conveyed through the advertisements was, "Whenever you feel like
celebrating, drink Rasna". Special emphasis was laid on its affordability and value-
for-money. Moreover, its product lines were categorized into two brands (Rasna
Utsav and Rasna Rozana) so as to effectively target different consumer segments in
India.
Product lines were categorized into two brands Rasna Utsav, an improvement over
Rasna SDC, targeted the lower income group in rural markets and Rozana, a mix
and serve powdered drink (no need to add sugar) targeted the convenience seeking
semi-urban and urban consumers.
A new ‘leaf’ symbol was added to the Rasna brand name, to get the new distinct
identity and to increase brand awareness in the rural market.
31
Overview:
Rasna was launched in 1982 by Pioma Industries Ltd. Rasna positioned its product
on the economy platform. The company aims to capture the customer's " every
moments of thirst " using Rasna.
Rasna tried to concentrate on three major attributes for establishing itself in the
market
1. Economy per glass
2. Taste
3. Children's affinity towards the product.
Rasna always wanted itself to be perceived as a value for money product. The "
price advantage " was promoted heavily and customers were given the details of
how each glass of rasna will cost compared to other softdrinks. Rasna began with 9
flavours in 1982. The 10th flavour was added in 1987. Rasna was using children in
advertising the brand. Like the Johnson's baby, Rasna girl was very popular among
the public. Rasna have used the catchy baseline " I love u Rasna " for decades.
Even now people remember Rasna Baseline.
Rasna Makeover:
Rasna in 2002, decided on a make over. The company no longer wanted to be a
kid's drink. It dawned a new look with new logo and a new baseline " Relish a gain"
32
highlighting the economy of using Rasna. Rasna also tried lot of new products and
variants. Realising that the market has shifted to "health and natural " proposition,
Rasna launched a new product "Juc fit" which is a fruit based health drink. The new
Leaf logo also signifies this shift. The logo signifies value for money and health( the
company claims).
Rasna also entered the 1000 crore milk foods category with its Shake Up brand
which has not been able to make a dent in to the highly competitive market
dominated by the likes of Horlicks and Complan.
Rasna also tried to take the competition for Colas by launching "Rasna Cola Cola"
and has roped in Hrith ik Roshan to endorse the brand.
Now Rasna have in the market a subbrands Juc Up ,Rasna International and Utsav
in the Powdered SDC category. In 2005 Rasna has launched a range of traditional
refreshers like Nimbu pani and Jaljira under the subbrand " Ghar Ka ".
Rasna recently has been struggling to find its soul. All the way it was promoting itself
on economy platform which has become redundant because of the competitive
pricing from Carbonated softdrinks. It has also changed the famous " I love you
Rasna " campaign to " Relish A Gain " baseline which is little confusing for the
customers. Customers still remember the Rasna Girl and "I love U " baseline . I am
confused why the company changed such a popular baseline?
Rasna is also trying to move away from children and trying to become everything to
every one which is a risky proposition. Although the brand has a generic status in the
category , it is witnessing stiff competition from Sunfill from Coke.Rasna is trying to
excite the market with new products and variants .
33
Rasna as a brand has lost its soul, not knowing what it stands for, trying to become
everything to everyone. What should a brand do when it is confused about its
persona? Simple. Ask the customer.
Its worth remembering that there is a child with in all of us. (don't take it literally)
Mr Piruz Khambatta, Chairman and Managing Director, Rasna Ltd, at a press

conference in Chennai on Friday.
(CHENNAI, March 8 2002)
A changed brand identity, launch of a health drink, Utsav, and a new ad campaign.
Preparatory soft drink company Rasna Ltd, is all set for a major image overhaul.
After years of `I love you Rasna', the company's new brand identity says `Relish a
Gain', which is symbolised by a leaf, which, according to Mr Piruz Khambatta,
Chairman and Managing Director, Rasna Ltd, speaks of freshness and health. "Apart
from talking about the core values of Rasna, we also wanted a symbol for Rasna so
that the product gets distinct visibility. We want the consumers to identify Rasna from
the image of the leaf," he says.
34
Talking about the launch of Utsav, Mr Khambatta says, "Utsav contains generous
amounts of glucose, calcium and Vitamin C, making it a healthy and refreshing
drink."
It is available in 10 flavours and comes in one litre, six litre and 18 litre packs, priced
at Rs 5, Rs 28.50 and Rs 65.50 respectively.
"A six-litre pack, for instance, contains two sachets - a powder called Nature Gain
and a liquid called Fruit Gain. The consumers have to mix both the sachets together
with sugar to make a syrup and then add it to water," says Mr Khambatta.
The preparatory soft drink market, according to Mr Khambatta, is around Rs 250

crore, out of which Rasna is supposed to have a market share of 82 per cent. "When
I say preparatory drink, I also include soft drinks such as Rooh Afza and Kissan," he
says.
Where does Rasna's claim of being a health drink stand vis-à-vis natural fruit juice
brands such as Tropicana or Real? "Rasna is as healthy as any fresh juice brand,"
says Mr Khambatta. "Moreover, we are better value-for-money than Tropicana or
Real. A glass of Rasna along with sugar will cost Rs 1.25 in comparison to a glass of
Tropicana, which will cost Rs 10 per glass," he adds.
Mr Khambatta wants to position Rasna as an affordable drink for the masses,

contrary to its existing image of being a family drink. "Our products cut across ages,
family, children and economic strata," he says. The company has extended this
strategy of Rasna being a mass drink even to the international markets "We have
made sure that the Rasna International brand is placed along with the other
preparatory soft drink brands such as Tang in international retail stores, and not in
the Indian foods counter in those stores," he says.
The company's new ad campaign, which comprises a 20-minute TVC, will be aired
across all national and regional channels and also reflects its strategy of being a
mass brand. The background song for the TVC has been sung by Asha Bhosle. The
company is also going to launch an outdoor campaign by setting up dealer boards,
pole kiosks and bus shelters.
35
The company is also planning to launch another ready-to-drink (no need to add
sugar) product shortly.
Branding:
Brand : Rasna
Company: Pioma Industries Ltd.
Agency : Mudra
Product Brand is the name associated with one or more items in the product line,
which isused to identify the source or character of the items.11 In order to target
different segments with different offers of the same satisfier, companies have
multiple brands in the same category.
These brands are promoted independently to different target segments. Some

brands, in the 4 process, become powerful in terms of awareness and preference in
the larger consumer segments. They eventually influence the identity of the company
itself. In order to transfer the equity of product brand, some companies change their
names to the product brand names; for
Example, Pioma Industries Ltd. became Rasna Ltd. and Sanskrut Comforts Ltd.
became
Symphony Ltd.
(Source: pg,5 ‘Equity’ Brand: Evolution of a
36
Brand From Stock Market By 1) Dr. Keyoor Purani, 2)Mr.Abhilash Nair
1-Assistant Professor, Indian Institute of Management Kozhikode, Kozhikode 673

570
(email: kpurani@iimk.ac.in)
2-Ph D Student, Indian Institute of Technology, Bombay.)
The brand Rasna is owned by Pioma industries, that introduced the concept of soft
drink concentrates (SDC), a segment that had been created and nurtured by the
company in the Indian beverages market. During the introduction period the
company launched it under the brans name, jaffe and it marketed with the help of
voltas.
Then it changed its name to Rasna in the year 1979. It was the first brand in the
country that provided consumers real fruit-like flavor and taste.
Business Model:
The business model is simply a working description that includes the general details
about the operations of a business. The components that are contained within a
business model will address all functions of a business, including such factors as the
expenses, revenues, operating strategies, corporate structure, and sales and
marketing procedures. Generally speaking, anything that has to do with the day to
day functionality of the corporation can be said to be part of the business model.
Business Details
The below mentioned brief outlines the business model of rasna for the proposed
Fast Food Retail venture. Its a customized to India model of Fast Food retail which is
based on the principles of Inclusive growth for Rasna and its business partners. The
37
USP of the business is its Meal between the Meals proposition which intends to
enhance the snacking habits of every Indian consumer.
The business model in terms of its product width combines the offerings of leading
fast food and beverages chain under one roof in a relatively small retail space.
Availability of the widest range of mouth watering Donuts (To which the Indian
consumer has not been exposed extensively yet) is one of the major traffic generator
of these outlets.
The business concept is quite scalable and tailor made to suit the taste buds of one
and all across different geographic and socio economic segmentation. Apart from
attracting all age segments, Devils Workshop Outlets specifically targets School and
College going Youth along with the segment of First Time Earners and DINKS. The
retail model of the chain has multiple formats like Cafeteria, High Street Shops,
Kiosks and Dispensers ( In schools, Colleges and Offices etc)
I am attaching a small business presentation along with this letter. Request you to go
through this document and let me know in case you would need any clarification.
Awaiting an early reversal
Investment Details
Date Commenced Operations : 2008
Date Commenced Frachising / : 2009
Distribution
Are you looking for Franchise?
Unit
38
Area Investment Franchise/Brand Royalty/Commission

Fee
Store Wise Rs. 2lac - Rs.5lac
What areas are available for Unit : Nationwide
franchise?
Where are you looking for
expansion?
North West East South Center Union
Territories
New Gujarat Assa Keral Chhatti Andama
Delhi Rajasth m a sgarh n&
Harya an Megh Karna Madhy Nicobar
na Mahara alaya taka a Pondich
Himac shtra Mizor Oriss Prades erry
hal Goa am a h Chandig
Prade Tripur Tamil Bihar arh
sh a Nadu Jharkh Lakshad
Jamm Aruna Andhr and weep
u and chal a Daman
Kash Prade Parde and Diu
mir sh sh
Punja Manip
b ur
Uttara Nagal
nchal and
Uttar West
Parde Benga
sh l
Sikki
m
How much working capital is : Rs 25,000
required in franchise addition to
this
Is there exclusive territorial rights : Yes
given to a unit franchise?
Are any performance guarantees : No
39
given to unit franchisees?

What is the anticipated percentage : 63
return on investment?
What is the likely pay back period : 18 months
of capital for a unit franchise?
Are there other investment : 2000000
requirements?
Property Details
What type of property is required : Floor space or a shop
for this franchise opportunity?
Floor area requirement : 70 square feet to 300 square feet . (1 Sq Meter
= 10.76 Sq Ft.)
Preferred location of unit : high traffic area
franchised outlet:?
Training
Do you currently have detailed : Yes
Operating Manuals for
franchisees?
Where is the franchisee training : No
done?
Is field assistance available for : Yes
franchisees?
Will someone from Head Office : Yes
assist me when I open my
franchise?
What IT systems do you : Yes
presently have that will be
included in the franchise?
40
Other Details
Do you have a standard : Yes
Franchise Agreement?
How long is the franchise term : 5yrs
for?
Is the term renewable? : Yes
41
Revamping Strategy:
(Source: Marketing Management

By Rajan Saxena)
42
Soft Drink Market in India:
(Source: Indiainfoline.com)
43
New Avenues:
“We were looking at new businesses that would take us ahead .After several
interactions with Sparkleminds we decided to pilot our Juice Parlors. Thank You
sparkleminds for your support and guidance without which we would not have been
able to take this ahead.”
Snehal Kulshreshtha
CEO Retail & Franchise
Rasna Pvt Ltd.
Swadeshi FMCG majors Emami Ltd and Rasna Private Ltd are foraying into the
retail arena, armed with different retail models.
For starters, the Emami Group is planning to extend its pharmaceutical retail chain
‘Frank Ross’ to market the company’s FMCG brands as well. On the other hand,
Rasna is opting for the ‘Shop-in-Shop’ retail model to promote its brands. Currently,
Rasna is in talks with Reliance Retail and Kishore Biyani’s Big Bazaar.
In the midst of this, Marico Ltd is planning to launch its new retail venture ‘Kaya Life’
which will market the company’s health & wellness products.” Besides retailing
Marico brands, Kaya Life will also offer services on the lines of its earlier retail-cum-
services venture ‘Kaya Skin Care Clinic’,” informed industry sources.
On Rasna’s retail initiatives, Piruz Khambatta, chairman and managing director,

Rasna Private Ltd, said, “Recognising the potential of the retail sector, we are
entering it now.
44
We are talking to major players in this segment to set up our retail outlets.” As for
Emami’s retail foray, Harish Agarwal, director, Emami Retail Mania
Ltd, said, "We are exploring many options before • Rasna is opting for the
entering this sector. Currently, we are working on a `Shop-in-Shop’ retail model
couple of retail models to market our brands.” • Marico will launch its new
retail venture ‘Kaya Life’
Incidentally, Dabur India is also planning to enter the
• Dabur India plans to
Indian retail sector by launching a chain of retail outlets
enter the Indian retail
across the country in the next two months, according to
sector with a chain of retail
industry sources.
outlets across the country
in the next two months
Just what’s fuelling this enthusiasm? Analysts say, having established their FMCG
business, players are searching for new avenues for growth. To supplement their
revenues, they are entering this so-called ‘hot sector’. Indian retail revolution has
truly begun in the FMCG sector like in other fields. Clearly, it’s survival of the fastest
(first movers) in the Indian retail arena.
45
Key developments Of Rasna Private Ltd.
Rasna plans foray into ready-to-drink market

(PTI, 28 April 2003)NEW DELHI:
Soft drink concentrate maker Rasna said on Sunday it is foraying into the ready-to-
drink market through the vending machines
franchisee route and plans to install about 10,000

machines at various joints in the country in the current
year.
"We would be installing about 10,000 machines at different joints such as railway
stations, petrol pumps, schools and super markets to step up the outside-the-
house consumption of the drink," Rasna chairman and managing director Piruz
Khambatta said.
He said the company would invest about Rs 15 crore in the venture and the cost of a
single machine, which is about Rs 30,000, would be shared equally by Rasna and
the franchisee holder.
Even at the modest sales projection of 100 glasses per installation per day, Rasna
was looking at sales of about 36 crore glasses per annum, he said, adding the
company has already tied up with franchisees in Gujarat and Maharashtra and was
in talks with various parties in other regions.
The digital machines would dispense two hot beverages — tea and coffee — and
two flavours of Rasna’s recently launched Juc-Up range.
46
Rasna was also planning a major foray into the rural market through its 50 paise per
glass drink.
"There is a vast untapped market out there and we want to expand to that segment
as well," Khambatta said.
The company would run about 3,000 vans on different routes in the country to
popularise the drink in rural areas, he said. The company was also expecting a 100
per cent growth in exports this fiscal, he said.
Rasna targets youth to offer: to offer juice mock tails (October 13, 2006)
In an evolving retailing strategy, Rasna- the third largest juice marketer in the
country- is targeting youth. Plans are underway to retail juice mocktails with such
trendy names as Tropical Breeze, Island Spice as April Lady reports the Hindu
Business Line. Rasna will vend these signature mocktails through Café Coffee Day
with whom the company has entered into an exclusive tie-up. “With this, Rasna sets
the mood for the festival season ahead. The recipe book will be given away as
complimentary with every one litre pack of Juce-fit,” said Rajan Vazirani, General
Manager (Sales), Rasna Pvt Ltd..
Pioma Industries Scouts For Joint Venture Partners
07/18/2008
Pioma Industries Ltd. (Rasna) said that the company is looking for joint ventures in
Africa and former Soviet countries for its expansion. Rasna, Chairman and Managing
Director, Piruz Khambatta, said: “At present, we are exporting our Rasna soft drink
concentrates to around 40 countries. We are now aiming to enter new markets in the
CIS regions, including Uzbekistan, Kazakhistan, Kyrghystan and also more countries
47
in African continent.” “However, there is lot of potential still unexplored especially in

CIS and Africa. We want to have our manufacturing units there as most of these
countries have a high customs duty of around 60%,” Khambatta added. The
Chairman said that the company is seeking joint ventures with local firms in order to
enter these markets but he refused to reveal the companies with which Rasna is in
contact.
Pioma Industries Ltd. Plans to Launch Instant Tea Brand Overseas
09/10/2008
Pioma Industries Ltd. plans to launch its Bollywood Chai in global markets, including
the US, the UK, Singapore and Australia. The company plans to launch its branded
instant tea in the US by October 2008.
Rasna targets youth to offer: to offer juice mocktails(October 13, 2006)
In an evolving retailing strategy, Rasna- the third largest juice marketer in the
country- is targeting youth. Plans are underway to retail juice mocktails with such
trendy names as Tropical Breeze, Island Spice as April Lady reports the Hindu
Business Line. Rasna will vend these signature mocktails through Café Coffee Day
with whom the company has entered into an exclusive tie-up. “With this, Rasna sets
the mood for the festival season ahead. The recipe book will be given away as
complimentary with every one litre pack of Juce-fit,” said Rajan Vazirani, General
Manager (Sales), Rasna Pvt Ltd..
48
Areez Khambatta Benevolent Trust and University of North Texas Announce

Launch of Khambatta Centre for Excellence
03/18/2009
The Areez Khambatta Benevolent Trust, charitable arm of the Rasna Group,
announced the launch of Khambatta Centre for Excellence (KCE) in partnership with
the University Of North Texas (UNT) of the US, to offer regular MBA courses at
Ahmedabad. The centre, aiming to offer quality education of international standards,
also signed an agreement with College of Business, UNT, under which the US
university would offer degrees to students studying at the Ahmedabad centre. The
first batch of students, to be admitted on the basis of their GMAT scores and other
criteria of UNT, would start their course in August. About 600 full-time and 1,200
part-time students are expected to be enrolled for different courses. The curriculum
will be taught by the faculty of the UNT Denton campus, both in person as well as
online, at the Ahmedabad centre.
49
Rasna to open 30 more Devil's Workshop

New Delhi
2009, May 28: Concentrate drink maker Rasna is expanding its fast food chain
Devil's Workshop to have pan- India presence with plans to add 30 more outlets this
fiscal.
The company, which last year launched the fast food chain in Ahmedabad, plans to
open in around 10 cities across the country, including Delhi and Mumbai this year.
"We are opening our fast food chain Devil's Workshop through local franchise
partners in almost 10 cities, including Delhi, Mumbai and big cities,...So it will be
around 30 outlets across the country," Rasna Pvt Ltd Chairman and Managing
Director Piruz Khambatta told reporters here.
Khambatta said the company currently has 15

company-owned outlets in Ahmedabad and has roped in 10 franchisees as part of its
plans to expand in other cities.
Besides, the domestic expansion of its fast food chain, Rasna will increase its core
business in the international markets, he added.
"Our products are also doing very well in overseas market. We are getting into two
countries very soon this year. We will be introducing only our powder concentrate
there," Khambatta said without disclosing details.
50
It currently has presence in more than 40 countries. The company today unveiled a
mega sized glass measuring 10 feet in height and six feet in width as it attempts to
enter the Limca Book of Records for the largest glass in the world.
BIBLOGRAPHY:
1. Zachariah Reeba, Rasna-Maker Pioma, Del Monte Talk Joint Venture,

www.rediff.com, March 2001.
51
2. Asha Bhonsle Sings Jingle for Rasna, www.domain-b.com, January 1, 2002.

3. Rasna Stirs Up an Image Change, www.blonnet.com, March 3, 2002.
4. Rasna Launches Rozana, www.reachouthyderabad.com, March 2002.
5. Srinivasan Lalitha, Rasna Set to Counter Coke's Sunfill with New Strategy,
www.financialexpress.com, March 28, 2002.
6. Shastri Padmaja, Small Is Beautiful: Rasna To Launch Sachet Packets, Financial
Express, March 2002.
7. Kurian Vinson, Rasna Promo Turns over a New Leaf, www.blonnet.com, April 11,
2002.
8. Shatrujeet N & Chakraborty Aloknath, Rasna and Frooti: Caught in an Advertising
Bind, April 15, 2002.
9. Srinivasan Lalitha, Mixing a Brand New Mocktail, Financial Express, May 4, 2002.
10. Rasna Booster Formula, www.business-standard.com, August 6, 2002.
11. www.rasnainternational.com
12. www.expresshotelierandcaterer.com
13. www.domain-b.com
14. www.blonnet.com
15. www.thesynergyonline.com
16. www.tribuneindia.com
17. www.agencyfaqs.com
18. www.indiainfoline.com
19. www.indiantelevision.com
20. www.aandm.com
21. www.geocities.com
52

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Advance Marketing Management

PROJECT BY ROHAN DALVI

Advance Marketing Management | Project

6. STRENGTHS AND WEAKNESSES

8. REASONS FOR FAILURE

11. MARKETING IN INDIA

12. NEW AVENUES

13. KEY DEVELOPMENTS OF

To all those whom I interviewed in Primary Survey and

helped in Completing the project

PIOMA INDUSTRIES is a leading manufacturing company that produces the best

• Rank no.1 in the beverage category as Most Trusted Brand of India

• One of the top 15 brands in the country

• Most preferred brand in SDC category at the FMCG Most Preferred

• India’s Greatest Brand Builder – Mr. Piruz Khambatta

• Young Entrepreneur Award – Dr. Dadabhai Naoroji Millennium Award

• Marketing Man of the Year Award – AMA – Mr. Piruz Khambatta

• Superior Taste Award 2008 instituted by The International Taste &

Year of Establishment : 1980

Bussiness Type : Manufacturer, Supplier & Exporter

Number of Employees : Appx. 100

Annual Sales : USD 5,30,000.00

Key Individuals in Company:

Mr. Areez Khambatta,

Mr. Piruz Khambatta,

Products / Services Offerings :

Manufacturers and Exporters of

Fruto Instant Drink

FOOD AND POWDER BEVERAGES

LAMINATE POUCH PACKINGS

a 3 gm pouch pack 50 x 60 420

Single Serve Pouch Pack - (12 gm 10 x 12

250 gm refill packs (Orange/ Mango/

500 gm refill packs (Orange/ Mango/

f 750 gm Standy Refill packs 15 1150

Orange & Mango

1 kg Standy Refill Pack (Orange/

h. LITRO PACK 25 GMS (1 Liter) 12 x 10 1350

GLASS JAR PACKINGS

250 gm Glass Jar (Orange/ Mango/

500 gm Glass Jar (Orange/ Mango/

c 750 gm Sleek Glass Jar 15 785

Orange/ Mango/ Pineapple/ Lemon

PLASTIC JAR PACKING - 1 kg 15 940

OTS TIN PACKINGS

900 gm Tin (Orange/ Mango/

2.5 Kg Tin (Orange/ Mango/

LITRO PACK INSTANT DRINK

Pouch suitable to prepare 1 liter 12 x 10 1350

GOFRUT INSTANT DRINK (5 gm

SHAKE UP INSTANT DRINK (MILK

25 gm single serve pack (Strawberry,

150 gm Standy pouch 108 800

RASNA LITE (1/3 Sugar) - 250 gm

RASNA SOFT DRINK

a 32 glass pack 200 650

RASNA single serve Iced Tea -9 gm. 14 x 24

INDIAN ETHNIC FOOD PRODUCTS

Sr.No. PRODUCT Units No. of

The different positioning strategies that are available are:

•Attribute positioning: Company positions itself on attribute, such as size or

•Benefit positioning: - The product is positioned as a leader in a certain benefit.

•Competitor positioning: - The product claims to be better than the competitor