Presented By:Sumant Paul 09927824

Yogesh Sardana 09927825Shrey Sharan 09927826

S. Dinesh 09927829Ashish Rijhwani 09927910

Rooh Afza

Case Overview• Concentrated drink made from fruit juices, flower extracts,

common vegetables and hermetic Indian herbs.

• Invented by Hakeem Hafiz Abdul Majeed in the 19th century.

• Marketed by the Hamdard Laboratories, one of India`s largest health and wellness company.

• Maintained position in the market as a refreshing healthy drink

• Stiff competition lately

• Therefore, it needs to undergo rebranding and repositioning to face this competition and increase its market share.

CURRENT BRAND POSITIONING:

• Drink has been positioned as a refreshing and thirst quenching drink, which provides added nutritional benefits.

• The content of its advertising themes has been constantly changing its focus over time.

• Initially, the product was advertised as a relief from the energy sapping summers of northern India.

• Later it used the ‘natural’ plank to differentiate itself from the emerging fizzy drinks in the market.

• With the beginning of the 90s, the brand again moved to ‘oral re-hydration’ and started espousing its health benefits.

• In the latter part of the decade, the freshness, or ‘taazgi’, aspect became the central pillar for promotion with the health and values being moved to fine print.

Liquid

ROOH AFZATea CoffeeFuntional DrinksJuicesBottled

WaterAerated Drinks

Concentrates

ColdHot

RTD

Powdered

Industry Structure

Beverages

Alcoholic

• India as a country offers the highest

• 10% of the global beverage consumption, which is the 3rd largest

• The market is highly seasonal in nature with consumption varying from 25 million crates per month during peak season to 15 million crates during off season.

• The market is predominantly urban with 25 per cent contribution from rural areas.

• Coca Cola and Pepsi dominate the Indian soft drinks market.

India – Soft Drinks Market

Marketing Mix Product

herbal concentrate with a blend of

crystalline sugar, distilled extracts of

citrus, flowers, fruits, vegetables and other herbal

ingredients. lasting cooling

effectsthirst quencher

Price

Place Promotion

Marketing Mix

Product

PricePriced with a

Premium over direct

competitorsJustified and

accepted over the year given

its focus on health benefits

Place Promotion

Marketing Mix

Product Price

Place‘RoohAfza on

Wheels’Penetration in

South India is very less

Promotion

Marketing Mix

Product Price

Place

Promotion‘Summer Festival’mocktail tasting

countersdispensers around high Congregation

points including malls, highways,

hospitals and tourist spots.

Porter’s Five Forces

Competitive rivalry within the Concentrate Industry:

% Shares

RasnaRooh AfzaKissan TangOthers

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

200

400

600

800

1000

1200

1400

1600

1800

2000

LiquidPowder

Rs M

illio

n

Forecasted

CAGR=3.9%

Concentrates’ Segment

Threat of Substitutes:

Bargaining Power of Consumers:

Bargaining Power of Suppliers

•Do not hold much of the bargaining power. •Here, most important raw materials like sugar and packaging have lot of competition and substitutes. Thus, if the prices of one the option are low, an easy switch is possible. •Bottlers are important for companies, and most of the major players sign contract with bottlers, such that they cannot supply to any other manufacturer. •Thus, in this force, the manufacturers have a favorable position.

Threat of New Entrants

•Brand names of the existing players are well established. •Thus, threat from the entry of new brands as such is low. •But the problem here is that most of the established brands diversify in the soft drinks market, by product diversification. •Another barrier for new entrants is the high fixed costs for facilities and economies of scale. Because of this, new entrants cannot compete on price point.

SWOT

Strengths:•a unique brand recall•Consumer is becoming aware day by day, they are preferring natural products instead of artificial•Consistent growth of the industry

Weaknesses:•Seasonality of the product – positioned currently as a summer drink•The drink faces the threat of changing consumer preferences. Consumer wants readymade drinks. •Low association with other variants

It should hence capitalize on its image & introduce products like processed milk with Rooh Afza flavour.

It should go for brand extension & introduce few similar fruit concentrates as well as increase the flavours in the existing space.

Make Rooh Afza available in the form of a ready to drink preparation. This should be something similar to the canned juices & drinks.

Threats

Changing consumer life styles & preferences towards convenience.

A product with similar taste as Rooh Afza if introduced in the market in a canned format, Rooh Afza will even lose its existing market rapidly.

The product is not available easily. The brand promotion is not that strong. This may lead to diminishing brand recall as far as the upcoming generations are concerned.

Increase in competition

Opportunities Threats

SWOT

Critical Issues• Not ready to drink - Due to this the consumption is limited. It cannot be

consumed outdoors.

• Sweetness - amount to syrup used can well be adjusted to modulate the level of sweetness.

• Not modern - possesses a household image.

• Low awareness of the health benefits – people are not much aware of the health benefits of the drink.

STP Analysis – RTDMarket Target market Segments Target Segments

Beverages Thirst Quenching Drinks

Based on Customers:a. Place of Consumption: Indoor/

Outdoorsb. Attitude towards Health: Highly

health conscious vs. Low awareness

Health Conscious

consumers with preference for

indoor and outdoor

consumption

Based on Products: a. Cola based and other Soft drinksb. Squashes and other fruit extractsc. Herbal/Medicinal drinksd. Energy drinks (Gatorade/Red Bull

etc.)e. Drinks like Glucon-D, Glucovita etc.

Herbal/Medicinal drinks

STP - Positioning

Marketing Mix - RTD

ProductThe product can be made into a ready to drink form and sold in the market. In this way, it

can be consumed

easily, as the consumer habits are

changing and they do not have time to

make the drink. RTD should be launched with variant flavors

possibly including Sugar-

freeShould launch

in different sized packages (300 ml, 500ml,

1ltr).

Price

Place Promotion

Marketing Mix - RTD

Product Price

Place Promotion

Capacity of concentrate

Total RoohAfza

price of concentrated bottle (in Rs)

plastic bottle cost (incl distr. Cost)

750 7500 90 2RTD capacity (in ml)

Price (in Rs)

300 6

500 8

1000 14

Marketing Mix - RTD

Product Price

PlaceA strong distribution infrastructure should be established in case

a ready to drink version is released.

Pilot distribution geographies must be chosen and gradually

expanded.Its penetration South

India is very less. Customization in

terms of taste should be taken care of

before the product is introduced and it should be made available all over India, based in

demand. The RTD Rooh Afza

has to be made available at various

places such as:Railway stations,

Airports, Bus Stands, and College

Campuses etc. The accessibility should be

good.

Promotion

Marketing Mix - RTD

Product Price

Place

PromotionShould come up

with their exclusive outlets at selected

locations promoting different

ways of drinking Rooh Afza -

Mocktails ,shakesShould launch a

fresh advertisment campaign for RTD in order to attract

youth Promotional stalls

in populated places to allow people to

taste the new variant.

Promotional campaigns near sports academy

etc. to promote the new variant as a

energy drink.Sponsoring college

festivals and distributing free

samples of the new variant to the

studentsShould highlight

more on its Health Benefits

Thank You !!