Product details

The case describes the diversification strategy of Dharmapal Satyapal (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 the 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 aims to be a Rs 5 billion company. The case gives students an insight into: (1) product extension, proliferation and distribution strategies; (2) the factors responsible for the success/failure of DS Foods'' products; (3) brand extension and brand building strategies; (4) the implications involved in segmentation, volume, pricing and packaging; and (5) marketing strategies in the food and beverage business. The case is intended for MBA/PGDBM level students as a part of the strategy and general management curriculum.