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| Will Glucovita shake up Rasna? |
| Byravee Iyer / Mumbai May 03, 2010, 00:12 IST |
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The concentrated juice market may see some action with Wipro’s entry
Piruz Khambatta is dismissive about competition. The Chairman and Managing Director of Rasna, which has a whopping 97 per cent market share in the concentrated juice market, says his only competition is water, and nothing else.
Khambatta may have reasons to be so confident. Other players in the segment have managed only a negligible presence so far: Coca-Cola's Sunfill (2 per cent), followed by Sugar Free (0.2 per cent), C Sip Vitamin C (0.0 per cent); Kissan Mr Fruit (0.1 per cent) and Tang (0.5 per cent). This summer, however, the Rs 325 crore Rasna Ltd has a new competitor with deep pockets.
Just a month back, Wipro Consumer Care & Lighting (WCCL) launched its glucose powder brand, Glucovita, in the juice powder category. Anil Chugh, Senior Vice-President, WCCL, says while children consume Glucovita for replenishment of energy (when they are tired), there are also a large number of other products that they consume during the course of the day to satisfy thirst (like lemon juice, coconut water, fruit drinks, Rasna etc.) or for fun (soft drinks, etc). Hence we decided to launch the new variants.”
The timing is perfect, as about 65 per cent of all sales of concentrated juice makers happens between January and July. The new variants of Glucovita are available in orange, lime , mango, lychee and pineapple. And that is direct competition for Rasna, which has over 10 flavours.
Khambatta, however, is unfazed. “There is no such thing as competition. The more, the merrier. Glucovita is primarily seen as a medicine”, he says. Also, Rasna has a price advantage through its smaller packs. Khambatta says Rasna costs just 50 paise for a glass. While Rasna has packs ranging from 50 paise to Rs 10, Glucovita launched in March sells at Rs 10, with 50 grams free.
Despite his confidence, Khambatta is clearly aware of the potential of the new competitor. “We will be coming out with newer variants in the second half of the year.” For now, however, the company is relying heavily on its cheeky ad campaigns that ends with a tagline – Sharaarat ki ek goonth (a sip of mischief).
On its part, WCCL has its strategy clearly chalked out. “Our understanding is that while Rasna and Tang only provide taste with fun and thirst quenching properties, Glucovita’s formulation ensures that it has the ability to replenish energy faster. “This positioning would find favour with both – children for the taste factor and mothers for the health factor,” explains Chugh.
But the Rasna MD says he wants to position Rasna as an affordable drink for the masses, contrary to its earlier image of being a family drink. Rasna’s latest positioning came about after the company conducted a consumer study across four towns covering 600 families. “The Rasna brand partners with consumers in promoting exploration, discovery, victory and fantasy. Our products cut across ages, family, children and economic strata”, Khambatta says.
On distribution, both WCCL and Rasna are on a strong wicket. While Rasna is available in about 1.6 million outlets, Wipro is available in nearly as many grocers, chemists and modern trade outlets.
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