Payment issues damage Mudra-Rasna relationship

It has been 25 long years since the relationship between Rasna and its advertising agency Mudra begun. But over the past year or so, there has been serious strain between the two. If sources are to be believed, the relationship is on the verge of a break-up.

agencyfaqs! has learnt it from reliable sources that the dispute between the two parties is mainly on financial matters. It is believed that Mudra has not received any payment from Rasna for almost one year now. In addition, the soft drink major had also asked for a cut in the retainer fee, which was not acceptable to Mudra.

This certainly will come as a surprise for many because Rasna has been under Mudra’s custody since its birth in 1982, and as a matter of fact, the agency has played a critical role in building the brand.

Rasna also has a close emotional tie with Mudra as it was the second business that the agency bagged after Vimal. The brand Rasna is almost as old as Mudra and has been one of the agency’s longstanding accounts.

AG Krishnamurthy, the former chairman and managing director, Mudra Communications had once said that Rasna was undoubtedly one of the three brands that are dearest to his heart. The other two brands are Vimal and Dhara.

When agencyfaqs!, contacted the senior executives at Rasna, they refused to comment on this. The senior executive at Rasna also said that it will be too early to comment on whether and when the business will move out. He insisted that everything is fine between the two parties.

Even senior executives at Mudra are tight lipped on this, but a source close to the development has told agencyfaqs! that it has been a year since Mudra has done any work on Rasna. For this season, Rasna has been airing only a few old television commercials.

The media duties for Rasna are handled by Prachar Advertising.

© 2006 agencyfaqs!