Germany's Dr Oetkar lines up India foray

Dr Oetkar, the 116-year-old German foods brand, is eyeing an entry into the world's biggest consumer markets, India and China. The euro 1.5 billion giant is a significant player in desserts and foods.

"We will be testing consumer response for our products over the next six months," says Adetti Gaurr, marketing manager, Dr Oetker India.

The German food company is present in 35 countries. The company is planning a slew of product launches that include introduction of its baking range this month, followed by the muesli range, desserts and frozen pizzas, later in the year.  "Currently, we are only testing the markets here. We are undertaking a number of sampling activities because as a company we believe in letting the consumers taste our products," explained Gaurr.  Depending on the results of these test runs, the company will decide upon an Indian portfolio and launch the products accordingly.

The Indian portfolio will be launched keeping the price range, quantity, quality and the Indian tastes in mind. The company is looking at Asian markets and has a team in China conducting similar exercises.

The products would be launched in Mumbai, followed by three other major metros, indicated company executives. According to them, the market research conducted in the four metros has thrown up encouraging results for the company.

The company is looking to gain a foothold in the Indian sub-continent and in the future will look at expanding their operations to Pakistan, Myanmar and other neighbouring countries.

However, company executives added that the market would have its fair share of challenges. "India is a very challenging market for us because of various factors like traditional tastes and so on. We have kept all the factors in mind before deciding to enter the market, and I am sure our product range is so vast that there is something for everyone in it," said Gaurr.

The company is giving almost a year to establish itself in the market. "It takes time to establish ourselves, especially in the food segment. A year should be a healthy period to know the direction our company is taking," said Gaurr.

The company rather than looking at institutional sales will focus on extensive sampling to spread awareness about their products. While Dr Oetker's products will be available in all the leading malls like Hypercity, Big Bazaar, Nature Spa, Foodland, Shoprite, the company is not looking at mom-and-pop grocery outlets as of now.

Currently, the company is importing their products but in due course of time, the entire manufacturing unit will be set up here. It is looking at either setting up an independent establishment or acquiring an already established unit in the country. "We have just entered the country. We are keeping all our options open," said Gaurr.