Dairy brand Paras moves to Dhar & Hoon

Delhi-based dairy Ved Ram & Sons has entrusted Dhar & Hoon with the creative and media duties for its brand Paras. With this, Dhar & Hoon will handle Paras (liquid) milk, lassi (buttermilk) and dahi (yoghurt). Dhar & Hoon won the business on the back of a strategy-cum-creative presentation in a three-way pitch. The other two agencies in the fray included Everest Integrated Communications and Percept Advertising. For the record, the business moves from mid-sized agency Confluence.

The company is still undecided on the size of the business. KK Bhandra, head, marketing, Paras, explains, "Things would be clear once the problem of milk shortage (in Delhi and the NCR) and the subsequent increase in the price is sorted out."

The communication task for the agency is two-fold. The first issue is to remove the ‘substitute' (for Mother Dairy) tag attached to Paras and make Paras the first choice. The second is to consolidate the position of Paras among its loyalists.

Dhar & Hoon has already plunged into action. A few radio spots are currently on air. Print and outdoor will also be part of the media plan. Though Paras is present in the markets surrounding Delhi, television is not being considered at the moment. Much depends on how and when the milk shortage in the region is sorted out.

Besides Delhi, Paras is present in Uttar Pradesh, Himachal Pradesh, Punjab, Mumbai, Bihar, West Bengal and Assam. Thought Paras liquid milk is not available in these markets, Paras ghee (saturated oil) and sweetened milk powder are widely available there.

For the moment, Paras will keep its focus on the Delhi market. The total size (which includes pouch and lose milk) of the liquid milk market in Delhi is 44-45 lakh litres per day. Of that, loose milk constitutes between 25 and 26 lakh litres per day, and pouch milk makes up for the balance. Mother Dairy is the market leader in both the segments - loose and pouches. Mother Dairy is the only organised player in the loose milk market selling 8-9 lakh litre per day. It leads the pouch milk segment with sales of 6.7-7 lakh pouches per day. Paras has the second position, selling 2.8-2.9 lakh pouches per day.

Clearly, there is a yawning gap between the No 1 and No 2 players in the market. Paras will have to work real hard to bridge that gap. © 2003 agencyfaqs!