DS Group's Entry Into Food and Beverages Sector

Ds Foods – Spicing Up Strategies Contd...

Some analysts also felt that DS Foods' natural spring water, at Rs 25 per litre was unlikely to find a market. Although they claimed that the product was different from bottled mineral water, Catch was likely to face a stiff competition from Parle's Bisleri, a Rs.3 billion brand in a Rs.5 billion market.

DS Foods was looking at hotels, embassies, clubs and restaurants to begin with, and hoped for sales of Rs 250 million in the next two years. In December 2001, DS Foods announced plans to enter the ready-to-eat snacks market by the end of the month.

Six varieties of Catch snacks were to be initially available – jumbo corns (in two variants) chana dal, cashew etc. The products were claimed to have a shelf life of a minimum of six months as compared to other brands, which had a shelf life of around two to three months.

The USP of the newly launched products was that no oil was used to prepare it. The company, which had a growth rate of 10% during 1999 had set an internal growth target of 35% in the next three years.

Analysts felt that if it achieved the target that it had set itself, the foods and beverages venture will be highly successful. By 2006, the group aimed to achieve a target of Rs.5 billion in the Food and Beverages business alone.

Excerpts

Excerpt I: DS Foods' Product List

Excerpt II: Catch Brand and Catch Salt Sales: 1995-99

Excerpt III: Prices of Catch Prdoucts

Excerpt IV: Comparison of Prices of Various Brands of Salt & Spices

Excerpt V: Prices of Catch Salt & Spices

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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