Rasna Project Report Final

ON

SUPER STOCKIST NETWORK

AT

RASNA PRIVATE LIMITED

Submitted In Partial Fulfilment of the Master of Business Administration at International

School of Business & Media, Kolkata

Reet Kanjilal

BATCH: 2009-2011

INTERNATIONAL SCHOOL OF BUSINESS & MEDIA, KOLKATA

Rasna Private Ltd. 1. ( Source : Brand quality)2. Economic Times

DECLARATION

I hereby declare that this project entitled “Super stockist network” at Rasna Private Ltd., Sitamarhi is submitted in the partial fulfilment of my M.B.A degree 2009-11 from International School of Business & Media, Kolkata. The project work was carried out with sincere intention of benefiting the organization. The project duration was from 20th March ’10 to 31st May ’10.

To the best of my knowledge & belief, it is an original piece of work and is the sheer outcome of my own efforts under the vigilant guidance of my guides and has not either in full or in part has been submitted to any other institution for the award of any other course.

Name: Reet Kanjilal

Date:

Place: Sitamari & Muzaffarpur (Bihar) Signature


TABLE OF CONTENTS

Contente Page No

1. Declaration 22. Acknowledgement 43. Executive Summary 5- 17

a. Rasna Company profile 6-7b. Rasna Pvt Ltd 8-10c. History of Rasna Pvt Ltd 11d. Marketing mix of Rasna 12-15e. Distribution Channel of Rasna 16-17

4. The Sitamarhi Project 18-275. Analysis and Recommendation 28-30


ACKNOWLEDGEMENT

A task or project cannot be completed alone. My gratification and elation on the success of this project would be incomplete without mentioning the names of all the people who helped me with it and without whose guidance and encouragement this would not have been successful.

I would like to first of all thank Mr. Debanshu Dutta ( Regional Business Head, East) for giving me opportunity to work on this project. This project study, carried out for Rasna Private Limited, would not have been possible without his help and valuable guidance of briefing me on their organization and providing me with all the required information needed to complete the project.

I would also like to thank Mr. Debasis Das(Territory Sales Manager) for his continuous support and guidance.

I acknowledge my gratitude to my Faculty Guide Professor Mr. Sudeep Chatterjee (ISB&M,Kolkata) for his extended guidance, support, encouragement and reviews without which this project would not have been a success.


EXECUTIVE SUMMARY


RASNA COMPANY PROFILE

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 brands 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.

o Rasna Pvt. Ltd. is a proudly family owned ISO 9002 & HACCP Certified Company.

o Rasna’ s philosophy rests on producing and marketing the best of products and developing long term relations in the market. Rasna Pvt. Ltd. holds steadfastly to its commitment to excellence, a commitment to being one of the largest Soft Drink Concentrate Manufacturing Companies in the world.

o Rasna has, over the last 10 years, successfully spread its wings with it's Exports Division, offering the extremely successful Soft Drink Concentrates, Instant Drink Powders and Ethnic range of products to the global markets.

o 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 gained 1st rank in the soft drink beverage category1. Rasna has also received the 1st FMCG Award in the soft drink concentrate category.

o Currently Rasna holds close to 93% market share in the soft drink concentrate market in India. As a tribe in action it promises to deliver, with individual performance and economy enhancement , substantial gain in its products for consumers at large to relish at every moment of their lives.

o Rasna has always been a brand that every Indian knows of as standing tall, vis-a-vis quality flavor and enjoyment in the in-house market of soft-drinks. Its backward integration ensures that most of the raw-materials are made by Rasna directly or through


job work. It has the largest capacity in Asia to make powder concentrate with 7 production units spread across the country.

Rasna Private Ltd. has always been among the trusted brand in the soft-drinks market and has managed in creating opportunities through Best International Prectie Benchmarks :

Consolidation of Suppliers and Vander Managed Inventory (VMI) to slash sourcing rates. Process and Technical improvements to lower production and formulation costs. Investments in ERP applications and technology to improve chain efficiencies


RASNA PRIVATE LIMITED

Rasna has always been recognized at large for brand and company. It ranks no.1 in the beverage category as “Most Trusted Brand of India”2. It is listed among the top 15 brands in the country. It was awarded as the most preferred brand in SDC category at the FMCG Most Preferred Awards 2003 & 2004 and Consumer World Award 2004. It has pioneered not only with its strong marketing strategies but also with its proper scaled distribution chain. Rasna has always looked into its marketing and brand building and has achieved an expertise in flavor technology. Its efficient management in production and market environments has harnessed to bring to the Global consumers, technologically superior products in fruits, vegetables, beverages, confectioneries... to stand as a leader in the Processed Food Industry. It has focused towards bringing to the Global Consumers Ethnic recipes and Food Products from India.

Rasna has adequate and in-depth knowledge & 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 proposal with suitable recommendations. It believes that there is a huge and emerging market for Rasna' s kind of product range, all over the world. Rasna is capable of managing global sized manufacturing set-ups working on the most advanced technologies to cater to the huge markets, nationally and globally.

Rasna as a brand has won many awards and credentials surpassing any other soft drink concentrates company. Rasna proudly received Superior Taste Award 2008 instituted by The International Taste & Quality Institute (ITQI), Belgium given to Mr. Areez Khambatta, the Founder Chairman and Innovation Officer at the hands of Hon. Shri Subodh Kant Sahai, Minister of State for Food Processing Industries, Govt. of India with the blessing of Dasturji (Dr.) Firoze M. Kotwal (High Priest of Mumbai) in the august presence of Mr. Christian De Bauw of ITQI.

Rasna has managed to dominate the colossal SDC market because of its massive International Operations. 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. It provides a strong and proactive 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 is what has helped them to reach a strong position in the global markets.


Rasna Global Offices:

USA & CANADA UK and EUROPE SOUDI ARAB RUSSIA FIJI

This strong chain of distribution to large no. 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 countries which imports Rasna products globally are as under:-

BUINEATanzania

Sudan

Nigeria

Angola Mozambique

Mali

SAUDI ARABIA

U.A.E.

Qatar

KuwaitUnmanRUSSIA

Pakistan

Nepal

Bangladesh

Myanmar

MadagascarHaiti

Angeles FIJI

BruneiMalaysia

Vietnam

Singapore Australia New Zealand Others


HISTORY OF RASNA PRIVATE LIMITED

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. In March 2002, Pioma announced a radical overhauling of its strategies for the Rasna brand. This development was rather unexpected, as the brand had been lying dormant since long. 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 soft-drink concentrate industry is worth around 90 crore.

Rasna pioneered this category and virtually owns this market with a marketshare of 93%.Rasna was launched in 1982 by Pioma Industries Ltd. Rasnapositioned its product on the economy platform. The company aims to capturethe customer's " every moments of thirst " using Rasna.


The marketing mix of RASNA

Product Line of RASNA

Rasna began with 9 flavours in 1982. It added 10 th flavour in 1987. The company was revamped in the year 2002.

In the year 2002 Rasna changed its look and came up with a new logo. Tagline of the company has been changed also. With a new tagline “Relish a gain”, today Rasna has tried a deep penetration in the

rural and semi urban market.

Recent product line of Rasna are as follows…..

Name Pack size FlavourPrice(rs.)

Rasna Frootfun32 glass or (180*32=)5.76lit

Orange, Mango,Lemon, Pineapple

35

Rasna Frootfun12 glass or (180*12=)2.16lit

Orange, Mango,Lemon

10

Rasna Freshfun32 glass or (180*32=)5.76lit

Shahi Gulab, Kesar Elaichi, Kool Khus, Cola Cola

35

Rasna Freshfun12 glass or (180*12=)2.16lit

Cola Cola, Shahi Gulab

10

Rasna 1ka2 2 glass or (180*2=)360ml

Orange, Mango, Lemon

1

Rasna Frootplus jar

500gm Orange, Mango, Lemon

85

Rasna Froorplus pouch

750gm Orange,Mango, Lemon

105

Rasna Froorplus pouch

500gmOrange, Mango, Lemon 75


Packing details:The opareting product line of rasna consists several sku. The company follows different pack size on carton basis. This pack sizes may vary with the local market demand but the below table will give a general view of the pack sizes.

Sr.No. P R O D U C T Units Per Carton

1. RASNA INSTANT DRINK (powder beverages)

LAMINATE POUCH PACKINGS

a 3 gm pouch pack 50 x 60

b Single Serve Pouch Pack - (12 gm pouch - Orange) 10 x 12 x 6

c 25 gm single serve sachet (Orange) 12 x 2 x 12

d 250 gm refill packs (Orange/ Mango/ Pineapple) 36

e 500 gm refill packs (Orange/ Mango/ Pineapple) 24

f 750 gm Standy Refill packs 15

Orange & Mango

g 1 kg Standy Refill Pack (Orange/ Mango/ Pineapple) 15

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

GLASS JAR PACKINGS

a 250 gm Glass Jar (Orange/ Mango/ Pineapple) 40

b 500 gm Glass Jar (Orange/ Mango/ Pineapple) 20

c 750 gm Sleek Glass Jar 15

Orange/ Mango/ Pineapple/ Lemon

PLASTIC JAR PACKING - 1 kg 15

Orange/Mango/Pineapple/Fruit Punch/Lemon

OTS TIN PACKINGS

a 900 gm Tin (Orange/ Mango/ Pineapple) 15

b 1.5 kg Tin (Orange/Mango/Pineapple/Lemon) 6

c 2.5 Kg Tin (Orange/ Mango/ Pineapple) 6

2. LITRO PACK INSTANT DRINK

Pouch suitable to prepare 1 liter 12 x 10

Orange/Mango/Pineapple/Strawberry

3. GOFRUT INSTANT DRINK (5 gm pouch) 72 x 10

Orange/Mango/Pineapple/Lemon

4. SHAKE UP INSTANT DRINK (MILK SHAKE)

25 gm single serve pack (Strawberry, Mango, Choclate) 24 x 30

150 gm Standy pouch 108

5. RASNA LITE (1/3 Sugar) - 250 gm Jar 15

6. RASNA SOFT DRINK CONCENTRATE

a 32 glass pack 200

7.RASNA single serve Iced Tea -9 gm.Lemon, Apple & Peach

14 x 24 x 20


Accessing all socio-economic class(The Price)

Rasna being an Indian company from the very beginning of its lifecycle, its sole goal has been always to make profit with the volume sale. The pricing strategy has always been the key of Rasna’s success. It targeted the mass rather than the class.

Rasna has always made its product such an way that it can be accessible to all socio-economic classes.

Its volume sale comes from its Rs 1 or the popular 1ka 2. The added sugar product Rasna Frootplus starts from Rs 2 and goes upto family pack

which costs Rs 105. The Box pack has starting price of Rs 10 which is enough for 12 glass of water. The

pack has a very attractive name which is 10ka12. The family box pack is available at the price of Rs 35 which is for 32 glass of water. Rasna has some skus which is very interesting for regular user. The air tight jar has

different pack size with price range starting from Rs 75. The company is constantly focusing on the rural market of India. So pricing

accurately is very important for the growth.

The accurate pricing strategy has been always the key growth driver for Rasna. They understood that the Indian market is highly segmented. So they are making product for each segment. Though they are always keeping an eye on there most valued which is always the bottom class of the pyramid.


Adding an emotional touch(The promotion)

Rasna has started its media campaign heavily since its inception. The famous mass media campaign of “I love you Rasna” was one of the India’s longest running tv ad.

The promotion of Rasna is always highlighted a strong brand association with there customer.

Rasna always want to create a good brand value by emotionally attaching there customer with there brand.

Focus of the company always is the quality of Rasna. Once upon a time Rasna was the only soft drink company in India. So they has been

trying for a good brand recall by there various ad campaign. In various ad campaign of Rasna, various child artists have been used heavily. This

kind of campaign shows a high focus on quality. The quality of Rasna has been really the success factor and in there various advertisement they are heavily focussing on that part.

In India where summer is very hot and long, focus of a soft drink company should be to understand that and to associate themselves with the misery of their customer.

Rasna has done a great deal to understand the pain of a long and hot summer and to delver a product which would make that summer a little less painfull.

This kind of unique marketing idea and innovative ad campaign helped Rasna to become a monopoly in the concentrated soft drink market.


Distribution channel of a FMCG giant RASNA(The Place)

The distribution channel of Rasna follows 3 to 5 tire architecture. It follows the supper-sub concept of distribution. The steps are as followes:

i. First the product produced in the factory which is strategically located to minimise the transportation cost.

ii. The packed product has been sent to various company depot accurse the country to distribute and meet the respective market demand.

iii. From the company depot the product has been delivered to the different supper stockist according to there previously placed order.

iv. Then the goods has been sent to the sub stockist point or in some cases wholesale store.

v. The secondary sale from the sub stockist or from the supper stockist is ensured by the constant monitoring by the company personal.

Rasna follows different distribution channel model according to local market demand. Abut for every model the end goal of the company is to deliver a quality product to the end user.


Factory

Company Depot in

major cities

Supper Stockist

Supper Stockist

Sub Stockist

Sub Stockist

Sub Stockist

Retailer

Retailer

Retailer

Wholesaler

Retailer RetailerRetailer

Wholesaler

Targeting the common man…..……..A common man’s product

In the initial phase Rasna as a soft drink product mainly concentrated on Middle and Lower class society. They followed the strategy on concentrating to children market. Rasna used children in advertising the brand to reach the preference of kids. Like the Johnson's baby, Rasna girl became very popular among the public. Rasna has used the catchy baseline “I love u Rasna “for decades. Even now people remember Rasna Baseline.

But in 2002, Rasta decided on a makeover. The company no longer wanted to cherish on kid's drink. It dawned a new look with new logo and a new baseline “Relish a gain" highlighting the economy of using Rasna. Rasna also tried a lot of new products and variants. All the way it was promoting itself on economy platform which has become redundant because of the competitive pricing from carbonated soft drinks. It has also changed the famous “I love you Rasna” campaign to “Relish A Gain” baseline which was little confusing for the customers because of the strong marketing of the Rasna Girl and "I love U” baseline. Although the brand had a generic status in the category, it witnessed stiff competition from Sunfill from Coke. Rasna is trying to excite the market with new products and variants.



THE SITAMARI PROJECT

Demographical study of SITAMARHI

The Sitamarhi district is situated in north Bihar state of India. It is one of the Bihar biggest district. But the purchasing power of this region is very low. Most of the income of this region comes from agricultural based product. In some research it is been shown that Sitamarhi district is one of the poorest region of India.

Sitamarhi District profile:

No of sub division: Three, (Sitamari sadar, Belsand, Pupri)o 1. Sitamarhi Sadar Sub-division

a) Runnisaidpur, b) Dumra , c) Riga, d) Bairgania , e) Majorganj, f) Bathanaha g) Sonbarsa h) Parihar i) Suppi

o 2. Belsand Sub-divisiona) Belsand b) Parsauni

o 3. Pupri Sub-divisiona) Sursand b) Bajpatti c) Pupri d) Nanpur e) Choraut f) Bokhra


Population Chart:o

o

Urban6%

Rural94%

%ge of population analysis

Sitamarhi is one of the most backward districts of the country. About 4,44,998 families live below the poverty line. The life here has been tough as the menace of flood every year forced people to abandon their villages and take shelter in makeshift polythene tents. The curse of Bagmati, which changes its course every year, has almost zeroed the effort by consecutive governments to improve the status of life of downtrodden.

In the last decade the literacy of district has improved from 28.49% to 38.46%. The female literates have relatively grown more than that of male literates.


Male Female Total

Urban 82397 70916 153313

Rural 1335214 1194193 2529407

Total 1417611 1265109 2682720

The Distribution channel of Rasna in Sitamarhi district

3

Distribution channel of Rasna in Sitamarhi district consists of one supper stockist point which is located in Sitamarhi town and seven sub stockist point. The location of a sub stockist point


Sub Stockist Point

Sitamrhi Town, (Supper

stockist point)

SursandParihar

Butihi

35 Km32 Km

25 Km

Saydpur

32 Km

Bairgania

Sibhar

55 Km

Phupri Bhitamore

40 Km40 Km

is strategically design to minimise the carrying cost as much as possible. The main aim of the company is to have presence in every corner of Sitamarhi district.

The supper stockist of the company collect the product from the regional company depot. In the case of Sitamarhi the depot is located in Patna.


CHANNEL VIEW

Super-stockiest:

Super Stockist is the kind of C&F agency, where companies keep their stock to pass it on to the next stage of the distribution cycle viz. wholesalers, dealers, retailers and finally to the consumers. They do all kinds of jobs like sales and marketing, stock analysis,

inventory management & control, packaging and distribution etc. Super stockist’s are appointed by the company itself for receiving, warehousing, safe storage and dispatching of the Company’s goods. The super stockist works according to the area assigned and is liable for the dispatch of the consignments ordered by other sub- stockists and is responsible for all theft, pilferage& damage to goods in his custody.

Sub stockist:

Sub stockist is a person in the next level of distribution cycle who is appointed by the company person or by the super- stockist. The Sub- stockist receives consignments from the super- stockist and delivers them to the retailers according to the consignment ordered.

Making a sub- stockist:

A sub-stockiest is appointed by the company person or a super-stockiest along the interior villages and towns which is beyond the reach of the company itself. The variables that come into play in the appointment of a sub-stockiest are:-

His ability to pay at a stipulated time period of his orders placed.

His ability to reach to every retailers in the market.

Area of his work so that order could be supplied to him at any point of time.

Large space of warehousing for storing or stocking goods.


LPC Analysis:

LPC or Line Per Call is a measure of identifying the number of SKU’s sold per productive call. It is measured by dividing the number of SKU’s sold in a day of a particular market by the number of productive calls made.

SKU’s stand for stock keeping unit is a unique identifier for each distinct product and service that can be purchased. SKU use is rooted in data management, enabling the company to systematically track its inventory or product availability, such as in warehouses and retail outlets.

This as a factor helps in analysing if the total product line is placed in the market and actually what are the number of retailers actually ordering calls.


LPC= Total no of SKU sold/ No of productive call

http://en.wikipedia.org/wiki/Retail_outlets

http://en.wikipedia.org/wiki/Warehouses

http://en.wikipedia.org/wiki/Data_management

http://en.wikipedia.org/wiki/Unique_identifier

Sales data analysis and inference…

Monthly Sale of total Sitamari district:

Inference:

The sales figure of three month shows no similarity at all. This is due to several reasons

Rasna was doing supper concept for the 1st time in Sitamarhi district. The introduction month is March 2010. So this whole month was taken to build up a good distribution channel, appointing sub stockist etc.

In April 2010 the distribution channel of the company was in full swing. So the sales figure is very high. Over demand of the product created a lack of supply in this month.

In may 2010 the sales figure again dipped due to three reasono Lack of timely supply.

o Over crowding the market.

o Heavy rain in certain part of the district.


Mar-10 Apr-10 May-100

50000

100000

150000

200000

250000

Totla sale in Rs.

Totla sale in Rs.

Weekly Sales of total region:

12 13 14 15 16 17 18 19 20 210

10000

20000

30000

40000

50000

60000

70000

80000

90000

Weekly Sales

Weeks

Infarance:

Weekly sales of three months follows the monthly sale pattern. But it shows muh clear view. According to the chart the sales hadn’t really picked up after week 15 because of the factors mentioned above.


Territory wise sales data:

Sursand

Bhitamore

Bairgania

Phupri

Saidpur

Parihar

Sibhar

3 months %ge sale


Analysis and recommendation

Swot Analysis:

Strength: o The rural marketing focusing on each and individual places of

interior,building distributor point over that place is one of greatest strength of Rasna.

o It is basically placed in premium powder segment and in this segment it has

been able to maintain its taste, it is continuously developing its products, in this segment Rasna has the highest available flavours in market.

o One of the majour strength lies in the packaging. The rasna packs start from 1

rupee and goes upto 85 rupees. o It is came up with lots of new products like Rasna fruitplus which is sugarmix,

rasna fruitplus lite and the newly launched rasna glucose.

Weakness: o There are few weaknesses like the majour products of Rasna are seasonal. So

the only in a particular time the demand for this raises. o This also include another problem related to brand recall.

o It should also consider its promotional issue to enter into the peoples heart and

also look on its rate.

One of the majour problem is it should take action on piracy or on them who produces duplicate products. This can be done by creating awareness.

Opportunity: o Many opportunities are still there to make this brand more strong. It can also

bring its international products into Indian market. o It has also opportunity to enter into ready drink section,it can also introduce

fruit juice. o Entering into glucose section is definitely a good initiative. Now rasna

premium powders are seasonal products but if it sell these products by making it ready drink then and in a better price then the sell may increase.


Threat: o The majour threat for rasna is that the big brands like HUL,PARLE

AGRO,NESTLE etc. They already have a established brandname, large network,invest more, may come with much better quality with better taste and may take a aggressive brand promotion. If these brands enter into this premium drink powder segment segment then problem may arise.

o The another threat to enter into ready drink section or fruit juce section, which

is much suitable for rasna might may be heard as the other brands have already established their brand value and fame.


FINDINGS AND RECOMMENDATIONS:

Findings:

The following inferences were drawn from the above survey:

Sales of Rasna products were towering in the month of April in comparison to March and took a drip in the month of May which amounted to be lowest.

Rasna 1 ka 2 sells the most in Bihar’s Sitamarhi district along with 10 ka 12 and 32 glass.

Rasna Fruitplus being a new product should have penetrated the market but due to improper and untimely promotions and ads the gap between products and consumers have increased.

The entire product line does not sell along with the product width. People prefer orange and mango flavour the most and the likability of pineapple, lemon and cola-cola are still very stringent throughout the region.

Promotional events along with the distribution of promotional materials are nil.

Rasna has managed to penetrate on the SDC market globally.

Recommendations:

Sursand, Bairgania and Sibhar region of Sitamari is a potential market so it is hereby suggested to look into the area. It is definite that it would contribute to the total sales more in the next year.

The untimely dispatch of goods from the depot to the super-stockiest needs to be taken care of as it leads to cancellations of order bookings.

Unavailability of goods at certain periods needs to be taken care of which leads to sore relationships of sub-stockists with retailers in the market.

Retailers of certain regions tend to buy goods from Patna at wholesale prices and sell it in the market at high margin. This in effect leads to low orders to the sub-stockist from the retailers so it is suggested that an equal price needs to be maintained so that it costs equal to all from wherever they buy.

Promotional events along with the distribution of brochures, stickers and leaflets are nil. So, it is hereby recommended to distribute such materials to the sub-stockists and retailers which will helping in increasing the brand value.


Rasna Project Report Final

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