Going Global & Managing Global Businesses Case Study

Rasna Going Global

OR

Abstract:
“Rasna”, became a generic name in the Indian soft drink concentrate (SDC) market, with a market share of 93%. Rasna dominated the Indian market with its low price, extensive distribution network and innovative advertisements.

Meanwhile, Tang (manufactured by Kraft Foods Inc.) was the leader in the global SDC market. Tang had become popular in Latin America and emerging markets in Central and Eastern Europe and Asia, including People's Republic of China. In 2001, Tang ventured into India, attracted by the huge untapped soft drink market. But the company could not sustain the intense competition from Rasna and eventually left India.

In September 2005, Rasna decided to enter Tang dominated markets such as Bangladesh, Sri Lanka, Nepal, Indonesia, Vietnam and Middle East, with an English sounding brand name “Orchy”. The case ends with a question whether Rasna would be able to outsmart the global leader Tang (in its territory) as it did in India.

Pedagogical Objectives:

• To study the growth strategies of Rasna
• To discuss the leverage of advertising strategies undertaken by Rasna
• To analyse the future prospects of Rasna in global markets.

Contents:

• Introduction
• Rasna
• Tang-Evolution & Parent company
• The Road Ahead

Keywords : Rasna, soft drink concentrate, Philip Morris Inc., Kraft Foods Inc., Altria Group, Tang, Piruz Khambatta, KJS India Pvt. Ltd., Mukta Communications, Marketing Strategies Case Study, market share, competition, leadership, distribution network, advertising, marketing to children