DS Group's Entry into Food and Beverages Sector|Business Strategy|Case Study|Case Studies

DS Group's Entry into Food and Beverages Sector

            
 
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Case Details:

Case Code : BSTR024
Case Length : 10 Pages
Period : 1998 - 2002
Organization : DS Foods
Pub Date : 2002
Teaching Note : Available
Countries : India
Industry : Foods, Beverage and Tobacco

To download DS Group's Entry into Food and Beverages Sector case study (Case Code: BSTR024) click on the button below, and select the case from the list of available cases:

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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EXCERPTS

Catching Up With 'Catch'

According to analysts, Hi Tech's willingness to take risks was largely responsible for the success of the Catch brand. Prior to the launch of Catch salt, Hi Tech carried out a random survey of the urban Indian market.

Based on the findings of this survey, the company targeted Catch at two segments - upper class Indian households in the metros, hotel, and restaurants, which would use the product in large volumes. The company built a national distribution network covering 1,600 premium outlets in India's A and B class cities. Catch Salt was launched with a price of Rs.6 for a 200 gm pack. At that time, Tata iodized salt, the market leader, was priced at Re1 per 1 kg pack and loose salt was priced at less that Re1. Analysts felt that there were bigger risks than what the price ratio would suggest at first glance. In India salt had always been a low-priced commodity, and many analysts felt that not many people would be willing to pay higher prices for it...

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

The Pass Pass Gameplan

In India, saunff (aniseed) or elaichi (cardamom) were commonly used as mouth fresheners. However, a yearlong research conducted by DS Foods prior to the launch of Pass Pass, revealed that while younger people consumed chewing gum, adults had paan masala, gutka and paan.

Explained Aggarwal, "Results showed that there was a need for a non-toxic, natural, herbal mouth freshener, since there was a vacuum in the market for that kind of product." DS Foods saw an opportunity in this segment and came up with Pass Pass, which they claimed did not have the health hazards of gutka (considered to be carcinogenic) or candy (bad for teeth). The ingredients included dried dates, dried-and-shredded coconut, saffron, silver-coated cardamom seeds, saunff and a herbal sweetener. The sweetener was imported and did not contain sugar or saccharine. Pass Pass was conceived as a product that would appeal to both adults and young people. The USP of Pass Pass was the health aspect and absence of synthetic essences or flavoring...

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