Abstract

The case describes the diversification strategy of DS Group into the food and beverages market. The Delhi-based DS Group was a market leader in tobacco-based products like gutka, zarda and pan masalas. It entered the food market with its innovative Catch salt and peppershakers in the late 1980s. By mid 1990s, these products were quite a success in the premium segment. Soon, the DS Group established a subsidiary DS Foods. The Catch brand was extended to spices and natural spring water. DS Foods also launched the branded mouth freshener Pass Pass. DS Foods adopted aggressive marketing and promotional strategies for its products, including in-movie placements. Catch mineral water was the only brand in India to be certified by the National Sanitation Foundation. Within two years of its launch, Pass Pass had grown to a Rs.350 million brand. The Catch spices were also launched in lined cartons. By 2006, DS Foods aimed to be Rs 5 billion company.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Strategies in the food and beverage business.

Keywords

Diversification strategy, DS Group, food and beverages, Delhi-based, market leader, tobacco-based, gutka, zarda, pan masalas, food market, Catch salt, peppershakers, 1980, 1990, premium segment, DS Foods, spices, natural spring water, mouth freshener, Pass Pass, agressive marketing, promotional strategies, in-movie placements, Catch mineral water, National Sanitation Foundation, Pass Pass, Rs.350 million, lined cartons, 2006, Rs 5 billion, company