Case study Del Montes vision

Case study Del four-card montes visionBrand Del Monte is a 118 year out of date brand which is synonymous with quality and taste. The brandoriginated in the US and is now useable all across the globe. Del Monte has branded touch food and drunkenness products. The Del Monte range include Fruit drinks, Ketchup acts, 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 VentureDel Monte came to India in 2007 courtesy a joint venture company known a FieldFresh Foods Pvt betwixt Bharti Enterprises and Del Monte peaceful. It sells fresh and processed takes 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 c ompany 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. intersection point Lines in IndiaKetchups and SaucesDel Monte has launched following four variants in this product line in India and they argon 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 going chillies, Red Bell Pepper, Garlic and Ginger. It offers sweet and spi cy eastern taste to the consumers.Del Monte Twango Del Monte TWANGO is a tangy and fruity sauce specially aimed at the young audiences, and brings a twist to the tomato taste with a splash of the goodnessDel 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 CornDel Monte has launched Pineapple Tidbits, Pineapple slices, apricot tree halves, Prunes and Fruit Cocktails in India.Italian RangeDel 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 DrinksDel Monte has launched 5 variants under the Fruit drinks in 240 ml cans and dispensers.Percentage Share of Different Product LinesThe graph given below gives the current percentage share of different product lines in IndiaChapter 5 Current Marketing StrategyChapter HighlightsTarget Market putProduct Str ategyDistribution StrategyPricing StrategyPromotional StrategyCURRENT MARKETING STRATEGYTarget MarketThe Indian juvenility segment residing in Indian cities age 16-25 is Del Montes primary target market.PositioningDel Monte Fruit Drinks current positioning is delivering Refreshment, convenience and nutritional value to the youth.Product StrategyDel Monte Fruit Drinks have 5 flavoursPineapple Fruit Drink (with real fruit pulp)Four Seasons Fruit Drink (a delightful unite of guava, pineapple and mango)Pineapple-Orange Fruit DrinkGreen Apple Fruit DrinkOrange Fruit DrinkProduct BenefitsDel Monte fruit drinks are by nature 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 simulated preservatives.PackagingDel 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 apparatus dispensers which can dispense 20 cups a min ute.Distribution StrategyCOMPANY WAREHOUSEDISTRIBUTORGENERAL handicraft RETAILERS/ WHOLESALERSMODERN TRADE RETAILERSEND USERHOTELSRESTAURANTSCATERINGB2B MARKETB2C MARKETDel Monte products are sold in B2C and B2B marketsB2B marketIn 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 twenty-four hours 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 MarketDel 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 pot and General Trade) as its Channel partners. Del Monte has also setup vending machines and dispense rs in institutions and tourist spots to r apiece the end users more effectively.DistributorsThe company appoints distributors who supply Del Montes product lines (Ketchups Sauces, Italian Range, Fruit Drinks Packaged Fruit Corn) to common 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 gross sales for each distributor is between Rs 250000- Rs 1500000. Del Monte offers a margin of 7% to its distributors.General Trade Retailers/WholesalersDel 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 RetailersDel 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 PenetrationPricing StrategyDel 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 StrategyDel Monte has relied on in store promotions for its Fruit Drinks i.e. price discounts, buy wholeness 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 met ros and mini-metros where the winner will receive a custom-made bike outlay 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.