Published on March 9, 2014
INDIAN BEVERAGE INDUSTRY AND RASNA JU-C By Kumar Rajgeet
Beverages Non Alcoholic Non carbonated Fruit juices, Fruit drinks, Fruit nectar, Tea, Coffee Alcoholic Carbonated Soda, Coca Cola, Tonic water Non distilled Distilled
Non Carbonated beverages Tea, Coffee, Bottled water, regional beverages, etc. Fruit Juice Nectar Fruit Drink
Fruit Juice Nectar Fruit Drink •Prepared by Fruit nectar contains mechanically 25%-99% of fruit squeezing fruit or juice content. vegetable flesh without the application of heat or solvents. Its 100% fruit juice. Fruit drinks contain an even lower percentage of fruit juice. •No preservatives, often pasteurized. Preservatives present. Preservatives present. •No artificial content. Sweetener and artificial color present. Sweetener and artificial color present.
THE BEVERAGE INDUSTRY IN INDIA Retail sales of fruit/vegetable juice grew by 30% in 2012 reaching Rs52 billion Fruit/vegetable juice competes head on with carbonates. The 100% juice category registers retail value growth of 38%. Unit prices increase by 5% in current terms. Dabur leads fruit/vegetable juices with a 25% retail value share. Fruit/vegetable juice is expected grow at a CAGR of 19% in retail volume terms over the forecast period. • www.euromonitor.com, 2013
According to the Associated Chambers of Commerce and Industry of India (ASSOCHAM), the non carbonated drink industry in India is about to take a jump from US $2.7bn in 2012 to US $7.9bn by 2015. This industry consisting primarily of fruit juices, drinks and nectars is fuelled by the increase in the net disposable income of Indians and the expansion of urban areas. Fruit juice segment of this industry is growing the fastest at a rate of around 35% annually while other components are showing a growth of around 10%-15%. www.euromonitor.com, 2013
Company Overview Rasna is a soft drink concentrate brand owned by Pioma Industries which is based in Ahmedabad, India. It was launched in mid-seventies but started gaining popularity in the eighties when the market was dominated by carbonated soft drinks like Thums Up, Gold Spot and Limca. As of 2009, Rasna had a 93% market share in the soft drink concentrate market in India and as of 2011, the company had a turnover of 3.5 billion. • www.pitchonnet.com, 2013
Rasna Ju-C In May 2013, Rasna launched its first ready to drink beverage named Ju-C. Ju-C which is positioned as a nutritionally healthy beverage having 100 per cent RDA of Vitamin Cis targeted towards 8-14 years old children. The drink has been launched in four flavours- mango, orange, apple and mixed fruit. Ju-C is designed to be consumed not just as breakfast flavour product but as a snack as well due to its nutritional value. • www.trendmonitor.com, 2013
The 7Ps of Marketing Mix.
PRODUCT Rasna Ju-C is a ready to drink beverage. containing available 100% RDA OF Vitamin Cs. in 1 litre and 250 ml pet bottles. available in 4 flavours i.e. mango, orange, apple and mixed fruit. www.thehindubusinessline.com, 2013
PRICE Ju-C’s 1 litre bottle is available at Rs 65 for mango flavor. 1 litre bottle of mixed, orange and apple flavor is available at Rs 75 Its 250 ml bottle is available at a competitive price of just Rs 18. www.thehindubusinessline.com, 2013
PLACE Rasna’s huge distribution network gives Ju-C a competitive advantage consisting of: 35 depots 2500 stocklists 1.8 million retail outlets Sales force of around 700 • www.trendmonitor.com, 2013
PROMOTION Rasna Ju-C is positioned as a healthy snack drink. Its advertising strategy targets kids between 8-14 years of age. The drink was launched by Bollywood actress Karishma Kapoor and the new Rasna girl Avan Khambatta, the daughter of Rasna’s Chairman. www.thehindubusinessline.com, 2013
PACKAGING Rasna Ju-C is available in attractive pet bottles. The name of the drink is made up word with phonetics containing the words Juice and C, pronounced same as “Juicy”. The name also signifies the 100% RDA of Vitamin Cs by the letter C at the end. The logo of Ju-C comprises a big C further stressing upon its Vitamin C content. www.thehindubusinessline.com, 2013
POSITIONING Ju-C is being positioned as a nutritional snack drink. Its trying to capture the imagination of kids as well as the consciousness of their moms. Its introductory phrase is ‘Tastier, Healthier and Fun’.
PEOPLE Sales, Marketing, Operations and Quality control divisions are already up and running. Ju-C is established as a separate SBU of Rasna. www.thehindubusinessline.com, 2013 www.thedelhisamachar.com, 2013
INGREDIENTS PER 100ML OF THE DRINK Dabur Real 56 cal Sugar 13 gm Vitamin C- 12.5 mg Potassium- 70 mg Calcium- 5 mg Contains added sugar Tropicana 48 cal Sugar 11gm Vitamin C- 16 mg Potassium- 170 mg Calcium- 18 mg No added sugar Dabur Real Activ 48 cal Sugar 12 gm Vitamin C- 20 mg Potassium- 86 mg Calcium- 18 mg No added sugar Rasna Ju-C USP-Fortified with 100% RDA Vitamin C Minute Maid 42 cal Sugar 10.5 gm (no more info) Contains added sugar www.fitho.com, 2013
VARIANTS Dabur Real Dabur Real Activ Rasna Ju-C Orange, Pineapple, Mixed fruit, Apple, Mango, Pomegranate, Cranberry, Guava, Grape, Sweet Lime, Litchi, Peach, Plum and Apricot. Orange, Carrot juice, Multi-fruit, Apple, Mixed Fruit Spinach-Cucumber Juice, Mixed Fruit Beetroot-Carrot Juice and Real ActiV+ fiber. Mango, Apple, Orange, Pineapple and Mixed Tropicana Minute Maid Orange, Cranberry, Apple, Mixed fruit, Pineapple, Mango, Guava, Litchi, Tomato, Grape, Pomegranate and 100% Tropicana. Pulpy Orange, Lemon, Apple, Mixed Fruit, Mango, 100% - Grape, Apple and Orange. www.fitho.in, 2013 www.thehindu.com, 2013 www.thehimalyantimes.com, 2014
PRICING Dabur Real Dabur Real Activ Rasna Ju-C 1 litre – Rs 80 to Rs 95 1 litre – Rs 95 1 litre -Rs 65 to Rs 75 330 ml – Rs 50 to Rs 60 250 ml - Rs 18 200 – Rs 23 to Rs 30 Tropicana Minute Maid 1 litre – Rs 99 1 litre – Rs 85 200 ml – Rs 18 to Rs 25 200 ml – Rs 20 *Various sources
SWOT ANALYSIS Rasna Ju-C S Strengths • Brand image • Competitive pricing • Attractive packaging • Vast distribution channel • Strong parent company • Health benefits • Popularity O Opportunities • Previously untapped vast segment of kids • Growing population • Premium pricing of ‘competitor products’ • Increasing health consciousness • Fast paced lifestyle W Weaknesses • Few variants • No ‘early bird’ advantage • Perceived as tasty, not healthy T Threats • Presence of many competitors • Stronghold of competitors in the market • Perception of “costlier means better”. • Environmental concerns near bottling plants.
The ready-to-drink beverages industry in India is already a cluttered space with PepsiCo’s Tropicana and Dabur’s Real Fruit juice as the dominant players. Rasna, which enjoys more than 80 per cent market share in the powdered and concentrates category, will need to recreate the same success story for Ju-C. Ju-C seeks to target kids who are adventurous and its communication approach will also reflect that tonality. It will organize adventure-centric BTL activities in schools, and in association with the RWAs. www.thenewdelhisamachar.com, 2013
REFERENCES www.thedelhisamachar.com, 2013 www.thehindubusinessline, 2013 www.fitho.in, 2013 www.trendmonitor.com, 2014 www.euromonitor.com, 2013
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