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DS Group's Entry Into Food and Beverages Sector

            

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The Pass Pass Gameplan Contd...

In November 2001, in a bid to increase the visibility of Pass Pass, particularly among the youth, DS Foods set aside a budget of Rs 10 million for exploring new branding initiatives. The company entered into an exclusive tie-up with Appu Ghar, a popular amusement park in Delhi. Under the agreement, Pass Pass would be associated with two major events at Appu Ghar in a year. DS Foods was also negotiating with Essel World, an amusement park in Mumbai (Maharashtra).

Ds Foods – Spicing Up Strategies

DS Foods aimed to become a Rs.5 billion company by 2002. To achieve this, DS Foods launched many variants under the Catch brand name. Aggarwal said, "Catch enjoys high brand equity but negligible volumes when compared to kitchen salt brands such as Tata Salt and Captain Cook."

DS Foods planned to launch Catch salt in lined cartons for the kitchen segment and hoped the product would exploit the suburban markets. DS Foods also planned to launch tea and edible oil in different pack sizes, sachets and pouches to cater to all market segments – larger packs for middle and upper classes and affordable, small pouches for daily wage earners.

Aggarwal said, "Neither branded tea nor edible oil is available in small packs for the daily wager. They buy loose tea and oil." The company was also working on a two-fold sales and distribution strategy. It planned to use regular kirana stores and general merchants. It would also employ its traditional retail channel – the neighbourhood paan shops. Said Aggarwal, "Even the rural areas have a neighbouring paan shop.

The concept will work beautifully even in villages and upcountry markets." Also, since most paan shops sold soft drinks, DS Foods planned to use their cold chain for the natural spring water and the proposed iced tea and flavoured water. However, some analysts felt that the strategy might not be successful. A few years back, Nestlé had failed to push its Paloma brand of iced tea.15

DS Group's Entry Into Food and Beverages Sector - Next Page >>>


15] Nestle planned to create a market for iced tea in India and launched Paloma iced tea in India in the late 1980s. The
company was not successful. Analysts felt that the idea of having a beverage cold was not acceptable easily in India, as
Indians traditionally liked to have a beverage hot.

Case Details

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

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