Case Studies and Management Resources
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Case Studies and Management Resources
Asia's Most Popular Collection of Management Case Studies |
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However, of the total Catch brand sales of Rs.250 million in 1998-99, Catch salt alone accounted for Rs 100 million (See Exhibit II). In late 1998, with the launch of DS Foods, the Catch brand was transferred to it from Hi Tech. In October 1999, DS Foods launched Catch mineral water. Within a year, the product generated sales of Rs 100 million in volume, of which Rs 50 million was accounted for by exports.
Exports were mainly to the US, Europe and West Asian countries. Catch was the only Indian 'natural spring water' and was positioned in the premium segment (See Table II for various brands in the segment). It was the only brand in India to get National Sanitation Foundation (NSF) certification for meeting the quality and safety standards set by the US Food and Drug Administration (USFDA).
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. |
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.
However, the DS Group seemed to be sure of success. Ashok Aggarwal (Aggarwal), Vice President, DS Group said, "We did not have any competitors, as the brand was a high-priced commodity packaged for convenience." Manufacturers of other leading brands of salt seemed to be agree.
DS Group's Entry Into Food and Beverages Sector - Next Page >>>
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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