Case study Del Montes vision

Case study Del Montes vision Brand Del Monte is a 118 year old brand which is synonymous with quality and taste. The brand  originated in the US and is now available all across the globe. Del Monte has branded processed food and beverage products. The Del Monte range include Fruit drinks, Ketchup Sauces, Packaged Fruits and the Italian Range consisting of Pasta, Olive Oil and Olives/Jalapenos and a Culinary range which is aimed at HORECA, Foodservices and QSR industries. Bharti Del Monte Joint Venture Del Monte came to India in 2007 courtesy a joint venture company known a FieldFresh Foods Pvt between Bharti Enterprises and Del Monte Pacific. It sells fresh and processed fruits and vegetables in the domestic as well as international markets, including Europe and the Middle East. Bharti enterprise has interests in telecom, agri business, financial services, retail and manufacturing businesses in India. Del Monte Pacific Ltd, headquartered in Manila, Philippines, is a company engaged in the production, marketing, and distribution of Del Monte products in the select Asian markets. Del Monte has following product lines in India: Sauces, Juices, Italian cuisine and Packaged fruit. The market size of these products approximately Rs 4000 crore and it will grow at 20% per annum and faces competition from players like Nestle, Hindustan Unilever, Dabur, Parle Agro, Pepsi, ITC, Heinz in India. The company has invested Rs 300 crore in a food processing plant at Hosur in Tamil Nadu and in research on fruit and vegetables which will be operational by 2011. It is now selling products in 25 cities in India. Product Lines in India Ketchups and Sauces Del Monte has launched following four variants in this product line in India and they are : Del Monte Tomato Ketchup: Is made from quality tomato paste and secret blend of spices natural fragrant oils. Del Monte Zingo: Is made from of Red chillies, Red Bell Pepper, Garlic and Ginger. It offers sweet and spicy eastern taste to the consumers. Del Monte Twango: Del Monte TWANGO is a tangy and fruity sauce specially aimed at the younger audiences, and brings a twist to the tomato taste with a splash of the goodness Del Monte Tomato Chilli Sauce: Del Monte Tomato Chilli Sauce is made from tomato paste and hint of red chillies it has a pungent and tangy taste. Packaged Fruit Corn Del Monte has launched Pineapple Tidbits, Pineapple slices, Peach halves, Prunes and Fruit Cocktails in India. Italian Range Del Monte has launched Olives, Pasta and Extra Virgin Oil in India. These product lines popularly used by Restaurants, Caterers and consumers are also using these products at home. Fruit Drinks Del Monte has launched 5 variants under the Fruit drinks in 240 ml cans and dispensers. Percentage Share of Different Product Lines The graph given below gives the current percentage share of different product lines in India: Chapter 5: Current Marketing Strategy Chapter Highlights: Target Market Positioning Product Strategy Distribution Strategy Pricing Strategy Promotional Strategy CURRENT MARKETING STRATEGY Target Market: The Indian youth segment residing in Indian cities age 16-25 is Del Montes primary target market. Positioning: Del Monte Fruit Drinks current positioning is delivering Refreshment, convenience and nutritional value to the youth. Product Strategy Del Monte Fruit Drinks have 5 flavours: Pineapple Fruit Drink (with real fruit pulp) Four Seasons Fruit Drink (a delightful mix of guava, pineapple and mango) Pineapple-Orange Fruit Drink Green Apple Fruit Drink Orange Fruit Drink Product Benefits: Del Monte fruit drinks are naturally fat and cholesterol free, they are rich in antioxidants, they are a good source of Vitamin C and Vitamin B1 and do not have any artificial preservatives. Packaging: Del Monte Fruit Drink is selling its juices in aluminium cans of 240 ml and so it possible to have a shelf life of 24 months. Del Monte Fruit Drink has setup dispensers which can dispense 20 cups a minute. Distribution Strategy COMPANY WAREHOUSE DISTRIBUTOR GENERAL TRADE RETAILERS/ WHOLESALERS MODERN TRADE RETAILERS END USER HOTELS RESTAURANTS CATERING B2B MARKET B2C MARKET Del Monte products are sold in B2C and B2B markets: B2B market In the Business to Business Market Del Monte fruit drink cans along with other Del Monte products are sold to and used over 2200 institutions in the HORECA: Hotels/Restaurants/ Catering(Airlines) segments. Restaurants like: Coffee Day Xpress, Dominos, Subway and Barista, and low cost airlines like: Jet Lite, Jet Connect and Indigo. Del Monte has over 70 persons they help the distributors to sell to institutions. B2C Market Del Monte operates in B2C market and these products are available in 25 cities including major cities like Delhi/NCR, Mumbai, Bangalore, Chennai, Hyderabad, Pune and Kolkata. The company has Distributors and Retailers (Modern Trade and General Trade) as its Channel partners. Del Monte has also setup vending machines and dispensers in institutions and tourist spots to reach the end users more effectively. Distributors The company appoints distributors who supply Del Montes product lines (Ketchups Sauces, Italian Range, Fruit Drinks Packaged Fruit Corn) to general trade outlets and to some modern trade outlets in the major cities. Each distributor has approximately 200 -600 retailers under him and the average monthly sales for each distributor is between Rs 250000- Rs 1500000. Del Monte offers a margin of 7% to its distributors. General Trade Retailers/Wholesalers Del Monte supplies products to 30,000 retailers in 25 cities. It supplies to major General Trade Retailers or the Kirana Shops (neighbourhood grocery stores)/Wholesalers in these cities. These retailers/wholesalers get their supply from distributors who take orders on a fortnightly/weekly basis. These shops have an average purchase ticket of Rs 30,000 per month. Modern Trade Retailers Del Monte is supplying its supermarkets, convenient stores (In and Out store at IOCL Petrol pumps) and speciality food stores (Eg: Le Marche) and the company is selling to them directly through its sales force and some of the modern trade outlets are also supplied through distributors. These are organisations purchase their products weekly and their average purchase ticket vary between Rs 20,000 to Rs 2000000. Distribution Penetration Pricing Strategy Del Monte Fruit Drinks are available in 240 ml cans for Rs. 25. The Del Monte fruit drink offered through dispensers is available in 200 ml cups for Rs 20. Promotion Strategy Del Monte has relied on in store promotions for its Fruit Drinks i.e. price discounts, buy one get one offers and promotional material such as posters displays to promote Fruit Drinks in retail outlets. Del Monte launched Legend Brigade to popularise the range of Del Monte fruit drinks in pineapple, four seasons, pineapple-orange and the newly-launched green apple and orange flavours. This activation will travel to metros and mini-metros where the winner will receive a custom-made bike worth Rs 200,000. Del Monte has also launched an online biker game is on at its micro site, www.worldfoody.com to promote thrill of biking.