We plan to sell 5 mn units this year: Mansoor Ali on RoohAfza Fusion

In line with the massive transformation that is happening at Hamdard Laboratories India, the over 100-year old FMCG company is now venturing into the ready-to-serve beverage segment with the extension of their 100-year old iconic brand RoohAfza. Christened RoohAfza Fusion, the beverage is a unique combination of RoohAfza with pure fruit juice. Fusion’s formulation has the cooling power of 10 herbs. With the launch of this brand, Hamdard endeavours to target the youth who aspire for convenience, ‘cool’ and on-the-go formats. 

Following a test launch carried out in various parts of Delhi and Uttar Pradesh in September 2016, RoohAfza Fusion is now launching pan India. According to the company, feedback was obtained from 50,000 people (including consumers and trade partners) post the test launch and the product achieved primary sales of approximately 9 Lakh units in the launch month itself. Consumer off-takes recorded live from shelves were more than 70 per cent, the company claimed. 

Basis the feedback received from the test launch, the product’s packaging has been revamped to connect better with the target audience by showcasing RoohAfza in a brand new, cool avatar. Subsequently, basis the in-depth sensory panel study, the recipes of the product were also tweaked for an even better product experience. Instead of bottle packaging, RoohAfza Fusion is available in Tetrapaks in five flavours – Refreshing Lemon, Delicious Orange, Juicy Mango, Exciting Pineapple & Orange and Luscious Litchi. 

Speaking at the launch, Mansoor Ali, Chief Sales & Marketing Officer, Hamdard, said, “In the last few years, there has been a perceivable growth in the popularity of ready-to-drink fruit juice based beverages, especially amongst the youth. This segment is actually the pivotal force that is driving growths in the overall consumption for this category. There is a perceptible shift of consumers towards natural and herbal products, and this is evident with RoohAfza growing in share in modern and general trade. Keeping the intrinsic qualities of RoohAfza intact with the presence of 10 natural herbs fused with fruit juice, RoohAfza Fusion sits naturally on this positioning. We are confident that RoohAfza Fusion will create the positive disruption required, and prove to be a category shaker. Consumers are going to love this new avatar of their favourite drink.” 

In conversation with Adgully, Mansoor Ali speaks at length about the reason for foraying into the ready-to-drink market, marketing plans, digital push, the ready-to-drink market and much more. Excerpts: 

What was the need to foray into the ready-to-drink segment?
Two years ago, when we analysed what our strengths were and the current issues that we are facing, three things came up. The first was that RoohAfza is not a convenience-based format, which means that you have to actually take it home and make it. Secondly, it was not very relevant to the youth. They were only having it at home or when their parents insisted on their kids having it because they have a connect with the brand. So, we saw that the younger generation today didn’t have a very high connect with RoohAfza. Thirdly, it was available in only one flavour and in a bottle form, so we wanted more expansion. 

On analysing the market we saw that the juices market has been showing strong growth and hence, we decided to do a fusion version, which would be a new combination of RoohAfza and fruit juice. That’s when we started developing this product and we decided to package it in Tetrapak as that’s the most convenient format. Later, we did the test launch and got very positive results. We took all the learnings from the test market and then launched this final version of RoohAfza Fusion. 

What kind of feedback did you receive from the test markets and what changes did it bring to the product?
One of the feedbacks was on the sensorial side – when we made people taste it, some felt that the flavour of lemon came out more strongly than the RoohAfza flavour. So, we took that into consideration, collated the data and made those changes. Another feedback was on the earlier packaging, where people told us that the concept of it being a RoohAfza and fruit fusion drink was not coming out too clearly. So, we have made the packaging more attractive, relevant and understandable to more consumers. These were some of the changes that we did in the product. 

RoohAfza Fusion is targeted at the youth and working professionals (15-35 age group) and a large segment of this population is present on digital. How do you plan to utilise digital in your marketing plan?
We work with a very strong digital agency and all our strategies are focussed on what the current trends are on social media and digital. So, we do many live videos as well. For a product like this, we have to spend a lot of money on digital since the youth are largely on the digital platform and to make this product more relevant, it is not just about promoting and advertising – it is about engaging the youth through interesting videos, games, etc. When you engage them in your activity, they will automatically start writing about your product and share it. 

What is the budget allocated for marketing the product?
At present I can’t put a percentage to it because there are no sales. So there is going to be disproportionate investment. But I think we will be spending more than Rs 15 crore on marketing. 

What about the sales and revenue target?
We have a distribution target and a consumer acquisition target. Sales will automatically come in. We intend to sell close to 5 million units this year. 

When do you plan to launch the campaign?
We will create distribution in April and once we are done with a sufficient amount of distribution, we will launch the TVC probably in the first week of May. 

Any on-ground activities lined up?
We will do a lot of sampling in general and modern trade as we want more and more people to try out the product. We will also do samplings at schools, colleges, malls and get the consumer to engage more with the product by building kiosks, etc. That is where we will be able to build a strong connect. 

What about signing a brand ambassador for RoohAfza Fusion?
As of now we don’t have anyone onboard in the upcoming TVC. But going forward we will be considering a brand ambassador for the offering. 

How big is the ready-to-drink market?
If you look at the overall beverages, the market is about Rs 28,000 crore. If you remove the carbonated drinks, the market size is around Rs 18,000 crore. If you look at juices, it is about Rs 10,000 crore. The juice category is growing at about 25-26 per cent. That’s a massive growth coming in. So the entire growth engine is towards the juice category. Most of the juices are in PET bottles or Tetrapaks. That’s what we are focusing on. We might also be looking for 1 litre packs very soon and try to upgrade the people from the smaller pack to the larger pack.