Entry Strategies of DS Group*

            


Details

Case Code : CLBS045
Publication date : 2004
Subject : Business Strategy
Industry : FMCG
Length : 03 Pages
Price : Rs. 50

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Key words:

Dharmapal Satyapal Group (DS Group), Catch Salt Shaker, Paloma, Nestlé, Captain Cook, Tata Salt, Tulsi, Rajnigandha, saffron flavored chewing tobacco, suburban markets, diversification.


* This caselet is intended for use only in class discussions.
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Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

The caselet looks into the products that Dharmapal Satyapal Group (DS Group) has developed, the strategies that resulted in the development of these products, and how these products helped the bottom line of the company. The caselet also deals with the history of the company, nature of the market in which DS group operated and what the company plans to do in the future.

Issues:

 » Diversification undertaken by an FMCG company.
 » How the brand owners manage different brands and product lines.
 » Strategies that go into the development of new products.

Introduction

Dharampalji Sugandhi (Dharampalji) set up the Dharmapal Satyapal Group (DS Group) in 1929, as a manufacturer of fragrances. In 1935, it diversified into flavored chewing tobacco. By 1950, it had introduced many varieties of chewing tobacco. In 1965, it launched the first branded chewing tobacco in India.


This was the first saffron flavored chewing tobacco in the world. In 1979, the DS Group launched Tulsi Zafrani Zarda (tobacco powder) and Rajnigandha gutka (tobacco powder mixed with beetle-nut powder).

By the mid 1980s, the DS Group became a leader in tobacco-based products with brands like Baba, Tulsi and Rajnigandha. In 1983, the DS Group entered the food and beverages market when it acquired the Noida-based Hi Tech Foods Ltd., (Hi Tech)...

Questions for Discussion:

1. DS foods is trying to exploit its Catch brand name. Assess the product development strategy undertaken by DS foods?

2. Analysts feel that the product development strategy of the company might not be successful? What were the reasons for the same?