This gives some insights of a product failure of one of Unilever products in Sri Lanka which fall in to seasoning powder category - Knorr Raskaree

1. NEW PRODUCT LAUNCH OF Knorr “RASAKAREE”
A Product By A Presentation By

2. Launched
2012
August

3. 18
16
14
12
10
8
6
4
2
0
BRAND PERFORMANCE ( RASAKARI )
Volume ( In MT )
Q3 - 2012 Q4 - 2012 Q1 - 2013 Q2- 2013 Q3 - 2013 Q4 - 2013
25
20
15
10
5
0
Value ( In Mn )
Q3 - 2012 Q4 - 2012 Q1 - 2013 Q2- 2013 Q3 - 2013 Q4 - 2013
MARKET SHARE
Rasakari Rasamusu
19%
81%
2012
Rasakari Rasamusu
6.5%
92.5%
2013

4. PRODUCT COMPARISON
Knorr - Rasakari Maggie - Rasamusu
Description
Ingredients
Blend of seasoning
powder
Blend of seasoning
powder
Price Rs . 7 Rs . 7
Grammage 5.5 g 5.0 g
Shelf Life time 6 Months 9 Months
Additional Nutrition's Vitamin A, Iron, Iodine Iron
Outlet Reach 40,000 +
General Trade
28,000+
General Trade

5. 40
EXPECTANCY VS PERFORMANCE
Market Share ( Volume ) In MT
Target Achivement
60
30
10
2012 2013
25
Market Share ( % )
Expected Achived
40
19
6.5
2012 2013

6. • Backed by a strong brand - Knorr
• Strong distribution channel
(110,000 + Outlets )
• Strong financial backing – Uniliver
• International expert knowledge
• Value for money
• Did not meet the local
palate
• Poor communication
Strategy
• One pack size & Less
consumer choice in terms
of flavors
• Wide space in this segment
(seasoning powder is 20% of the
taste enhancing category)
• Growing life style
• Its low price Vs Cubes in the similar
function
• Health conscious on
MSG contained products
• Strong competitor backed
by Nestle
• “ Rasakaree” Connotes “
Rasa Karaka”

7. NEED GAP
Total no of households in Sri Lanka = 5,251,125
Total Market Size of Taste Enhancing = 1 Billion
Total Market Size of Seasoning Powder = Rs. 200 Million
CONVENIENCE
QUICK TASTE
ENHANCER
AFORDABLE
PRICE
MORE
NUTRITION’S

8. NEW PRODUCT
DEVELOPMENT
• Need for an Instant Taste
Enhancer
• Increase of USL wallet share
IDEA
GENERATION
CONCEPT
DEVELOPMENT &
TESTING
• Concept Developed & Tested
in India
• R & D on new additions : Vitamin A
and Iodine
BUSINESS
ANALYSIS
• Product Launch and
PRODUCT
DEVELOPMENT
• Overall Market share
expected 25% in 2012
& 40% in 2013
• The product
development was
done in India
IDEA
• Idea screening was SCREENING
done in India
TEST
DEVELOPMENT
• Consumer Sampling
& Blind Tests were
conducted in GT
COMMERCIALIZATION
promotions were done
targeting the GT

9. MARKET ANALYSIS – PORTERS 5 FORCE
HIGH LOW
RIVALRY
Health conscious consumers
Distribution Network
Brand image – Nestle
Low visibility in Shelf Space in GT
No “Shelf space” in Modern
Trade
This is not a necessity
Choice of the buyer play a major role
No brand loyalty
Ample suppliers
High availability of ingredients
Natural spices
Stock cubes are more popular
“Maggie Rasamusu“
Strong Customer base
backed by Nestle
HIGH
Top of the mind brand recall
HIGH HIGH

10. ANSOFF MATRIX
EXISTING PRODUCT NEW PRODUCT
NEW MARKET EXISTING MARKET
MARKET
PENETRATION
MARKET
DEVELOPMENT
• Use of existing distribution
channel
• Strong brand presence
• Large marketing budget
• Introduce with convenient
sachet packet
• Additional Nutrition
DIVERSIFICATION

11. MARKETING MIX & THE GROWTH STRATEGY
Rs.7.00 in par with the
competitor
Affordable to general
trade consumers
Available in general trade
40000+ outlets
Rural / Semi urban
Rasakari is a food taste
enhancing seasonal powder
Additional grammage of 0.5 g &
the Nutrition Vitamin A & Iodine
have being the growth strategy
Heavy ATL & BTL Spend
Teaser campaign - “ Kawda
Game Rasakari “
TV , Radio, Press
Poster campaigns
Activations

12. MARKETING STRATEGY : LAUNCH
Total budget- 65 Mn
( 1st Year )
ATL - 35 Mn
BTL - 30 Mn

13. REASONS FOR FAILURE
Shorter Shelf life time
Rasakari connotes as an addictive to enhance
the taste (rasakaraka yak) - Perceived as a
substitute for “Ajina-moto”
Due to bad publicity by
opinion makers and other
journals publicized on MSG
“Rasamusu” Top of the mind brand recall
Late entry to the market Not followed a
Commercial was less memorable & was
not appealing to the target segment
structured NPD process
in Sri Lanka
Initially manufacturing was outsourced & afterwards USL started
manufacturing in-house ( 2013 – Q1 ) – Resulting a margin dilution

15. SEGMENTING
Demographics Female
Age between 25 to 50
Geographic Sub-urban, Rural
Household Income Rs.15,000 +
Industry General Trade consumers
TARGETING
• Mothers looks to prepare
a quick meal and concern
about health benefits.
• Also look forward for an
appreciation from their
loved once for her special
dishes.
• Nutrition deficiencies
POSITIONING
Social Class (High)
Low Price High Price
Social Class (Low)

16. PROPOSED MARKETING STRATEGY
• Re brand : “Knorr Rasakari” as “Rasata Rasak” to
mitigate the consumer perception on MSG addictive
• Introduce different pack sizes and flavors to cater the
broader consumer segment
• Out source the manufacturing - To enhance margin
• Enhanced the shelf life time with removal of iodine
from the product
General Trade Modern Trade B2B
Name Rasata Rasak Rasata Rasak Rasata Rasak Jumbo
Variance
Three: Fish & meat
Vegetables
Sambols
Four : Fish & meat
Vegetables
Sambols
Salad
Four : Fish & meat
Vegetables
Sambols
Salad
Pack size 5.5gms
5.5gms x 10 pax in a box
100 gms pack (refill)
100 gms bottle
500 gms and 1 kg
Price Rs.7
Rs.65 Box
Rs.110 Refill
Rs.130 Bottle
Rs.540 ( 500gms )
Rs.1,050 ( 1 Kg )

17. SEGMENTING AND TARGETING
General Trade Modern Trade B2B
Demographics
Geographic
Income
Female : Age 25 - 50 Female : Age 25 - 50 Chefs and cooks
Sub-urban, Rural Urban
Urban, Sub-urban,
Rural
> Rs.15,000 > Rs.15,000 Restaurants, Hotels,
Pubs
PRE LAUNCH
Description Budget Time
Sponsor Key opinion
makers to change
consumer perception
about MSG
Press / TV / Radio
Housewife's
associations (100
clubs)
TV - 5 Mn
Press - 2 Mn
Radio - 5 Mn
1st September –
31st November
2014
Teaser campaign 10 M 15th Sep 14
Launch
15 M
20 M
1st Oct 14
Annual partnerships
ATL / BTL
Press, TV, Radio
Branding at GT & MT

18. KEY PERFORMANCE INDICATORS
Objective General Trade Modern Trade B2B
Timeline
Induce sample
( Vol - 1 MT)
Bundle offers
(Ceylonta + Rasata Rasak
Laojee + Rasata Rasak)
Buddle offers
(Marmite + Rasata
Rasak, free sampling )
Free
sampling
Increase
frequency
12 months Bingo
card scheme and
receive 6 months of
tea
Raffle draws
12 months Bingo card
scheme and receive 6
months of tea
Bonus points for loyalty
card holders at
Supermarkets
10% off on your
second pack
Customer
retention
Additional incentives
on targets
Raffle draws
Additional incentives on
targets
Additional
discounts on bulk
quantity purchase
1St Oct
To 14 Oct ‘14
On going
( Continuous
Basis)
Availability
Outlet Reach
60,000 700 500 1st October
Revenue
Forecast
Q4 - 2014 - 30 Mn
H1 - 2015 - 90 Mn
H2 - 2015 - 120 Mn
H1 - 2016 - 150 Mn
As per
forecast
Q4 - 2014 - 7Mn
H1 - 2015 - 18 Mn
H2 - 2015 - 26 Mn
H1 - 2016 - 35 Mn
Q4 - 2014 - 11Mn
H1 - 2015 - 32 Mn
H2 - 2015 - 36 Mn
H1 - 2016 - 45 Mn
1St Jan
To 31st Dec
2015

19. OBJECTIVE OF THE LAUNCH - QUALITATIVE
Consumer value
• My cooking is even more tastier with
“Rasata Rasak”
• Gives me a balanced meal with nutrition
for my family
• It saves me time
• Everyday meal can be
just as a special occasion
Retailer value
• Increased demand gives me an additional
income
• My store ambience is better with Rasata
Rasak - Eg : AluFrame , Magic Stick ,
Category Branding etc .
• Health conscious consumers are added to
my clientele
Stakeholders value
Sales representative / Dealers / Stockiest / USL
• Additional revenue
• Increase USL share
( wallet Share / basket Share )
• Additional product to reach my budgets
• Enhance brand value

20. CONCLUSION
When launching “Rasaraki” our client should have
followed a structured NPD process catering the local
market
Apart from General Trade , USL to focus on Modern Trade &
Institutional sales to enhance the brand value proposition
The TV Commercial should be localized and emotionally
appealing to the target segment
Product name should communicate the product offering
clearly
This will enable our client to sustain in business achieve
wider market share

22. Appendix

23. Reality on MSG

24. Consumer Survey Sample

25. 2013 Gazette on MSG