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Say cheese -- Dabon, Sikkim Dairy process natural cheese brands 

Pummy Kaul  
New Delhi, Nov 16: Two major players -- Dabon International and Sikkim Dairy Products Ltd-have quietly entered the natural cheese market estimated to be a mere five per cent of the 7,000-tonne total cheese market. Hitherto dominated by the unorganised players and foreign brands available through grey market, the sales of natural cheese in India have so far been restricted to the institutional sector.

For the first time, at the retail end, organised players are staging an entry: while Sikkim Dairy has made a foray with its brand Sikkim Alpine Gouda cheese, Dabon is currently test marketing its brand Delicieux in the Capital. Sikkim Dairy Products Ltd is a bilateral project started under the Indo Swiss Project Sikkim (ISPS)-a technical cooperation between the State Government of Sikkim and the Swiss Agency for Development and Cooperation (SDC). Both cheese brand will cater to the institutions market as well.

While Sikkim Dairy plans to focus 50 per cent of its sales on the bulk market, Dabon which has been supplying to institutions for the last six months says it will split its business between retail and institutional markets in a 80:20 ratio.

The cheese market -- which itself is a nascent market in India-so far is dominated by processed cheese. However, according to the national dairy association, Dairy India, the varieties that show high demand in the Indian market are spiced cheese and Mozzarella cheese. The current product mix, as per Dairy India, for the Indian market is: Processed cheese: 50 per cent; Cheese spread: 30 per cent; Mozarella cheese: 10 per cent; Spiced cheese: 5 per cent and Natural cheese: 5 per cent.

Realising the market potential, marketers have begun to introduce other specialised varieties - for instance, Amul has just launched Mozarella cheese.

The Swiss come to Sikkim

The rollout for Sikkim Alpine Gouda began in April '99 in Delhi and Calcutta. The natural cheese is targeted at the premium segment with a price of Rs 495 a kg. The cheese is currently available in select supermarkets and specialised retail shops with cooling facilities. It is also available in a 200-gm pack, priced at Rs 90 and Sikkim Dairy is considering the launch of a 100-gm pack. In December '99, the brand will be launched in Mumbai and Goa, followed by Chennai and Bangalore.

The brand positioning intends to capitalise on the widely perceived characteristics of Sikkim such as `fresh, cool and pure,' and makes a distinct reference-for Indian consumers-to the Alps and to Swiss technical assistance in order to reinforce the quality image.

Though Sikkim Dairy does not see itself as a `marketing company' nevertheless, it plans to play a more active role in market promotion and concept development in the next few years.

``We are trying to continuously assess the market demand and we'll try to unite our marketing efforts, '' says Frank Udo Hoggel, consultant, Sikkim Dairy Products Pvt Ltd.

``We plan to create awareness about the brand and Gouda cheese by establishing direct contact with consumers,'' adds P J Joseph,consultant, Sikkim Dairy. Besides roadshows and promos, it plans to tie up with club and restaurants.

Established in 1997, the ownership of Sikkim Dairy Products Pvt Ltd is with the local milk producer co-operative societies, with Swiss and Sikkim government contributions.

A cheese production unit has been set up in the West District of Sikkim in an area called Dentam. The brand aims to capture 25 per cent of the market share.

LeBon's LeStrategy

After having established its brand LeBon in the processed cheese market, Dabon International, the joint venture between the French multinational Bongrain and Dabur India Ltd has entered the natural cheese market with the launch of a new brand Delicieux natural cheese.

Launched two weeks back in the Capital, Delicieux is available in two varieties: Gouda and Ricotta. Available in 200 and 250-gm packs priced at Rs 50 each, Delicieux is being distributed through 30 to 40 premium supermarkets and retail outlets in Delhi. According to P Rajagopalan, marketing manager, Dabon: ``The company is still testing the waters and will firm up its plans to launch in other cities as per the response.''

LeBon was launched in August 1998 in cans, bottles and portions. Later, to increase usage, it was introduced in blister packs and sachets as well.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.

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