MARKETING MANAGEMENT

ASSIGNMENT :1
Case Study : Pluse
GROUP NO: 6

PRESENTED BY:
SRAMANA SANYAL (19DM003)
POOJA SAHA (19DM007)
SUBHAM CHOUDHURY(19DM017)

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Summary
The DS Group - manufacturer of brands such as Rajnigandha,
Baba and Catch entered the candy segment with Pass Pass
'Pulse'. The Kaccha Aam-flavoured hard-boiled candy with a
tangy twist, which was the USP for pulse and is the new product
launched by DS Group. Pulse crossed the Rs 50 crore mark
within six months of its launch and contributed 40 per cent to the
Group's revenue in the confectionery segment. The HBC
segment was growing is growing at 23% where the existing
flavours were mango, orange and caramel. Ds group chose raw
mango as their flavour as it was dominating in the market with
26%. As in India the common practise is to have raw mango with
some tangy spices, they developed the idea of power filled
candy. It was named ‘Pulse’ because they claimed ‘it sets your
pulse racing’. At the time when Pulse was launched, 86 per cent
of the industry was at Rs 0.5 for a candy weighing anywhere
between 2-2.5 grams. The DS Group decided to go with Re 1
instead, and to justify the price, the weight was increased to 4
grams. As Pulse is an anytime, anywhere candy, so there was
no particular target group singled out for Pulse. As DS Group
had their distribution channels even in remote corners,
distribution was not a matter of concern for them. Initially, they
faced problem to scale up production to meet the skyrocketing
demand but eventually they managed to produce in seven
contract-manufacturing units. They also launched guava flavor.
Pulse was promoted through word-of-mouth and the company
pushed the candy through in-store promotions and an outdoor
ad at select locations. The presence on all social networking
platforms including Facebook, Twitter and Instagram has helped
the brand to build their image. The unorganized candy market in
India is big, and no brand has been able to break the tradition of
flavour over brand, wherein customers ask for "orange, mango
or mint wali " candy. Pulse has changed that. It has taken the
category from impulse-driven to Pulse-driven.

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1. Why is ‘Pulse’ a new product for DS Group? How did
DS Group ensure diffusion of innovation with respect
to Pulse?

DS Group introduced a new product line as they entered

into the candy segments. Previously there manufacturing
products were pan masala, tobacco, and species. So
PULSE itself is a candy and different from previous
products that is why pulse is a new product for DS Group.

DS Group ensure diffusion by the following ways:

As there are only straight flavour in the market such as

mango, orange and caramel.so they realize the need and
innovation.

As HBC segment is growing at 23% having Kaccha Aam

flavour of 26% and mango flavour 24% together claiming
50% sharing in the HBC market, so raw mango was the
obvious choice to enter into the market.
As in India the common practice is to eat raw mango with
something tangy weather it is Aam paana or a slice of raw
mango.it is incomplete without the tangy spices. That how
they got the idea of powder filled candy.
Raw mango are relished by people of all age groups and
geographies in India.as India is a hot country where you
need to keep having something to keep the saliva going.
That exactly the reason why candy sales are maximum in
tropical areas. Since Rajasthani and Gujarati cuisine share
a similar tanginess as pulse, the company decided to test-
market it in these states first the exercise proved so
successful that it had to be converted into a full-fledged
launch.

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 2. How was the pricing decided for ‘Pulse’? Discuss with
respect to the six steps usually followed for ‘setting the
price’.

There are six steps in setting price of a particular product:

 The first step is setting the pricing objective. The DS
Group initially thought of pricing the candy at Rs 0.5 as
per the prevailing market price.
 The second step is determining demand. As the candy
was low priced, the DS group presumed that candy will
have high demand.
 The third step is estimating cost. High raw material costs,
fewer 50 paise coins in circulation, and the demand for
higher margins by retailers were some of the factors that
contributed in estimating the cost.
 The fourth step is analyzing competitors’ costs, prices and
offers. The big players such as Mondelez, PVM (Perfetti
Van Melle), and Parle launched or re-launched their
products at Re 1.
 The fifth step is selecting the pricing method. Looking at the
competitor’s price and market conditions they thought of
pricing their candy at Re 1.
 The sixth step is selecting the final price. The DS Group
decided to go with Re 1 and to justify the price, the weight
was increased from 2-2.5 grams to 4 grams.