Dalmia Group launches Dalmia Consumer Care; appoints Contract and Lowe

At a press meet in the capital yesterday, the Rs 1,200-crore Dalmia Group announced the launch of its FMCG start-up - Dalmia Consumer Care (DCC). DCC is a concept marketing company that would develop and retail packaged products in the Rs 45,000 crore oral gratification space. Beyond this introduction, the top brass of the company refrained from giving out more details on either the product portfolio or the strategic direction of the company.

However, DCC announced it has appointed Contract Advertising and Lowe to chalk out the broad advertising direction of the soon-to-be-launched products. Both these would work on a retainership fee arrangement with DCC. Kartik Raina, COO, DCC, told agencyfaqs!, "Our business was not opened for a pitch. We decided to directly appoint the agencies based on our past experience with them." A decision on the AOR is yet to be taken. "We still have to figure out how to reach our target audience - which is the Indian consumer with a rural mindset. Once we have decided on that, we'll start looking for a media agency," said Raina.

It seems, it will take another six to eight months for the company to be fully operational and roll out its products in the market. While the manufacturing facility is in place, DCC is open to outsourcing as well. And yes, the company will have a national presence. Regional offices are already in place in Delhi, Kolkata, Mumbai and Hyderabad. As of now, the company has a staff strength of 60.

While some of the products are in the testing stage at this point in time, some others are under research. However, to give an idea of the range, Sudershan Banerjee, managing director and CEO, DCC, said, "The company is considering everything from a ‘shikanjvi' (lemon drink) to ‘churan' (a form of digestive). Each product would bear a health tag." Confectionary products are also in his consideration set, it seems.

The most crucial task, according to company executives, has been to identify the mindset of its target audience. After extensive research and consumer ‘in-sighting', DCC identified its target group as the Indian consumer with a rural mindset. "This segment, in the shanty towns and slums of the top eight metros, accounts for 3-3.5 per cent of the GDP," pointed out Raina. Banerjee was quick to add that a rural ‘mindset' should not be confused with people living in the rural parts of the country. He said, "While a person with an urban mindset would look at convenience, speed, and attach an aspirational value to her product, price and value for money would be a concern for the a rural mindset. It is this target group we intend to reach." © 2003 agencyfaqs!