Product Levels:

When deciding for the customer value hierarchy ,Rasna provides various add ons to its customers.  The five levels have been well fulfilled:

·     Core benefit given is powdered ready to mix drink in various sachets or bigger packs.

·    Rasna has “no sugar required” written on its pack. It turns its core benefit into basic product by  giving out proper quantity in a pack and comes in different flavors.

·     Customers expect Rasna to have no requirement to add extra sugar. The taste should not be lost. The various flavors have their respective tastes-expected product.

·     Augmented product- Rasna gives extra attributes of vitamins in it. Hence making it a healthy drink.

·     Potential Product – Rasna stands out in the market by giving out at most reasonable prices. That’s   why it is way ahead of its competitors in the market. A pack of 500 grams of Rasna orange comes at Rs.135. Tang comes at Rs. 215.

Pricing:

At Rasna we are constantly looking at new innovations and strategies. Today, the per capita consumption of Rasna is 15 glasses and our vision is to increase the per capita consumption to 100 glasses by 2005 and to reach out to one billion Indians every year."

- Piruz Khambatta, Chairman and Managing Director, Rasna Ltd., in March 2002

The limited shell life of the Oranjolt has also contributed to its failure as the company failed to set up a strong distribution network for the product, which could allow it to replace Oranjolt every three to four weeks. Following its failure, the company sent the product for further improvement at its R&D facility.The sorrows of Rasna increased through the late 1990s and 2000. Rasna SDC's volume is continuing to shrink by over 7% every year.And also the slow and steady  increasing prices of Rasna SDC, year on year proved to be another significant hurdle for Pioma.

The rise in Prices:

Earlier priced between Rs 8-10, Rasna SDC was mostly consumed by the middle-class family as an affordable hospitality drink during the 1980s.By the end of 1990, it had gone up to Rs 22-24, which according to the analysts was  above the reach of its target audience. Also company sources argued that the rise in prices had been in line with the inflation through the years and was always in the affordable range. The increasing awareness among the consumers regarding the difference between natural and artificial synthetic flavors, the incrementing purchasing power and availability of more international products in tetra packs all are resulting in the downfall of Rasna's market. According to estimates, the tetra pack category had increased three fold (to Rs 6 billion) between 1993 and 2001. In 2001, only 12% of the drinks which were soft were taken at home. The shift in consumer tastes towards colas and fruit juices continued unabated. Shocked by its failure it extend Rasna's product portfolio, Pioma began planning a three-year revamping program in mid-2001. Rasna's Director, Khambatta says keeping prices low despite the growing prices of sugar and manpower has been tough as has been staying consistent in the face of changing market dynamics, referring to government policies, logistics.

Also Piruz Khambatta, chairman and managing director of Rasna, claims, Kraft Food's Tang's average price increase has been around 22 per cent annually. In 2014 ,Beverage companies like Parle Agro and Rasna have decided not to hike prices despite raw material costs going up. Instead, they are innovating on pack sizes and price points.

"Mothers are already finding it difficult to manage discretionary spending, so we haven't hiked prices for most pack sizes," Piruz Khambatta,the Director said.