Tang,
the brand owned by Kraft Foods (owned by Phillip Morris) was first launched
in India through a JV in 1982. “However, conditions were not conducive
at the time for commercial viability,” says Sahgal. “However, the new
import duty structure and the liberalisation of food ingredients have
made the product commercially appropriate. This facilitated the launch
of Tang.” Tang is distributed across the country through the distribution
network of Dabur’s. “The long summers in India, coupled with the Indian
taste inclined towards multiple flavours, prompted the launch of Tang,”
Sahgal says.
Brand
positioning and pricing strategy
The brand
positioning of various drinks is quite diverse. “Rasna continues to
target the rural market and has a significant presence in urban markets
across India. Our products cut across all SEC (Socio Economic Category)
segments, and, thus, are more accessible to the rural masses,” says
Khambatta.. Sunfill is also targeted at the middle and lower-middle
income urban (SEC B/C/D) and rural consumer. “We plan to target about
200 million new consumers with this product,” says Choudhry. Tang, which
is the internationally dominant brand, is available in 22 cities across
the country and is positioned as a premium fruit-flavoured beverage.
The pricing
strategy of a high-volume product like powdered soft drink concentrate
plays a key role in its success or failure. Rasna has always strived
to market the lowest priced drinks in the segment and ensure that all
its products are affordable. “Considering that a glass of Rasna can
cost as little as Rs 1.20 makes it extremely affordable,” adds Khambatta.
Coca-Cola
has adopted the same pricing strategy for Sunfill. “Sunfill at Rs 2
per single serve and Rs 15 for a multi-serve pack (200 grams for eight
serves) gives the consumer a world-class product, which is not only
very convenient, but also has a very attractive price,” says Choudhry.
Tang is
available in three flavours in India — orange, mango and lemon. It is
available in 25-gram packs priced at Rs 5 and 100 gram packs priced
at Rs 20 each. Tang orange is also available in a 500-gram refill pack
(priced at Rs 90) and a 500-gram glass jar (Rs 110) that makes 25 glasses.
“The pricing of Tang is consistent with the perceived value of the product,
as well as the competing profile of in-home use products,” says Sahgal,
“Our aim is to offer value to the consumer. The feedback that we have
received shows that Tang provides good value for the price.” The commencement
of the company’s Indian facilities has allowed it to pass on the benefits
to the consumer without compromising on the quality.
“In our
test-launch of Sunfill in Andhra Pradesh and Tamil Nadu, we captured
a marketshare of 20 per cent in just two months,” claims Choudhry. “We
hope to break even in the fourth year. Sales of Tang this year are expected
to be in the range of Rs 5 to Rs 7 crore. We are aiming to grow at 20
per cent every year from this small base. It is our objective is to
attain dominance in the premium segment of the powdered soft drink category,”
says Sahgal.
As for
Rasna, Khambatta says that they expect a very significant and positive
growth for the brand over the next five years. Rasna’s three-year vision
is to reach one billion Indians and increase the per capita consumption
from 15 to 100 glasses. “Rasna is the only Indian company employing
Indian technology and raw material,” he adds.
