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Dalda Foods (Pvt.) Ltd.

Submitted to: MR.HASHEM ZIA JAFFERY

Prepared by: WAQAR-UL-SALAM (9092) SYED ABUL HASSAN ALI WAQAS NADIR

DANISH ALVI

MARKETING MANAGEMENT

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Executive summary:-

Concepts are built while we taking interviews and during group discussion and taking

help from marketing offices of DALDA COOKING OIL, and are given specific shapes

and dimension, while observing and analyzing the business activities of their firm.Getting

practical knowledge is one of the major aim of this report.We were assigned a report on

the subject of Marketing by MR HASHEM ZIA JAFFERY. Our objective was to visit

the multinational organization Dalda Foods Pvt. Ltd. and get maximum information

about their Market Offerings, Market Environment, Business and Consumer Markets and

their Pricing trends, Placement and Promotion, Positioning Strategies, how they avail

opportunities their action program. During this report Preparation our beloved teacher

MR HASHEM ZIA JAFFERY fully guided and helped us time to time a lot to refine

our report. During this Process we conducted interviews and visited website of DFL to

get the required information about the organization. On the basis of the fetched

information we try our best to fulfill the needs of the said report on Dalda Foods.

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Table Of Contents

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IntroductionDalda History and Overview :-

Dalda is a brand of hydrogenated vegetable oil popular in South Asia. The substance was originally imported from the Netherlands in the 1930s by the trading company Dada Limited. When Hindustan Lever Limited wanted to brand it, the trader, who still retained a commercial connection with the product, said it had to be named after his company.

HLL wanted to include the letter 'L' in it for Lever (of the Unilever group), and thus was born one of the longest-living brands in India. Dalda, which came to be synonymous with the Banaspati (hydrogenated vegetable fat) genre, was recently extended to a range of edible oils. Hindustan Lever has since sold the brand.

In July 2004, Unilever Pakistan accepted the offer of Rs. 1.33 million for the sale of its"Dalda" brand to Westbury Group in collaboration with Unilever Employee WelfareGroup, who formed a separated company under Dalda Foods (Private) Ltd. Dalda hasnow divested into Canola and Olive Oil product variants.

Today, Dalda Foods (Pvt.) Limited deals in Banaspati and cooking oils, Ghee (Banaspati)and claim to use Virtually Trans Fat (VTF) free technology. With total annual salesvolume exceeding USD 10 Million, Dalda is one of the leading brands available inPakistan for over 60 years.

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SWATT ANALYSIS:-

STRENGTH:-

Dalda is greatest strength is the blind trust of the consumers in the brand. The entire product range has extremely high brand awareness. The brand recall is as high as 97%. The quality of the product is maintained at high standards under the supervision

of Unilever International. In the Banaspati category it¶s the only Trans fat free brand available. Dalda is the largest player, closely followed by Habib.

WEAKNESS:- The brand suffers with an image problem. It is perceived as an old brand and the

consumers are bored with it. In the case of Dalda it poses great difficulties, as it is a regional brand catering to Pakistani and Indian markets only. There has been no innovative packaging change since 1994.

OPPORTUNITIES:- Dalda can cash up the banaspati market in Northern and Central areas of Pakistan

where there is a large consumption especially by the rural and lower income groups.

The branded market has been receiving a warm welcome lately in the metropolitan areas of Pakistan.

People are becoming health conscious and are switching to brands offering vitamins and cholesterol free attributes.

There is a growing segment of working women in search of modern and convenient methods of cooking. Therefore, the flavored oils stand a very good chance.

THREADS:- Fluctuations in the world oil prices. Banaspati is perceived to be old fashioned and unhealthy by the upper

income/urban consumers. Lately sunflower and Canola based single oils have aggressively entered the

market. The unbranded segment comprises an enormous 50 % of the edible oil and

Banaspati market. This is sold loose to the rural/lower income consumers.

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OPPORTUNITIES AND ISSUE ANALYSIS:-

As Pakistani people like spicy and oily food, Dalda have a lot of opportunities in the market to expand their business in local market. Having number of brands of edible oil in market, still Pakistani market is not saturated from the current oil supply. So for Dalda it’s the most important and big opportunity to increase the size of their business by increasing the production as well as plant size so that it can rule the market as a leader for a longer period of time.

ISSUES FACING:-

Major issues is Golden Sun, by a multi-national company IFFCO, and Habib Oil/ Banaspati, by HABIB Oil Mills (HOM). Strong competition from local brands, different brands in different geographic areas; such as Gulab Banaspati, in Peshawar. In different parts of country they have threats from different companies, as in N.W.F.P. The major threat is Shama as its quality is not bad and its price is low too as compare to all our brands. Same is the case with Dalda and the company’s other brands; low price brands e.g. Pakwan and Fauji, pose major threats. During delivery from factory to depots and than from depots to distributor, and finally from distributor to retailers, if carton or bottle leaks, affect company’s revenue as well as this can affect customer-satisfaction. Another major problem is the rising prices of Palm Oil in international market, which his affecting the sales adversely; sales are going down day by day. Company has set high prices and this is also a threat for the company. In the age of high inflation rate people either can’t buy expensive products because of high prices, or they have other less-expensive options available.

4 GOALS AND OBJECTIVES:-

The goals and objectives of DFL are: Commitment to quality

To understand customers needs

Strive to be ahead in edible oil sector

Offer healthy products

Continuous research and continuous innovation

Capture market share

To have the strongest distribution network across Pakistan Leader in Ghee and Oil

industry, who have imparted the generic name to ghee and oil category-DALDA.Dalda is

50 years old company.Known as DADA Ghee before Lever brothers bought it.In 1954

Lever brothers bought it.After Lever brothers had bought it they changed it to DALDA

Foods, by just adding “L” of Lever in DADA.Oldest plant is at Rahim Yar Khan,

Punjab.Dalda is the company who introduces different new products, S.K.U.s, and new

brands first time in Pakistani market and even in International market.Some of them are:

Danay-Dar Ghee

V.T.F. in 1992

5 kg and 3 liter bottle (S.K.U.)

Olive Oil

In 2002 Lever Brother sold it out and now Dalda Foods Pvt. Ltd. is property of Pakistani

owner.

5 BUDGET PLAN OR MILE STONE:-

SALE INFRA STRUCTURE:-

DISTRIBUTION OF DALDA PRODUCTS:-

Factory Store Depots Retailors Wholesalers Distributions

ENDS CUSTOMERS:-

4 companies owned and operated Regional sales office, i.e. Karachi, Lahore, Multan and Islamabad. 19 Area Sales Offices in major cities of Pakistan. Some of them are Karachi, Hyderabad, Sukkur, Rawalpindi, and Peshawar. e.t.c. To cover maximum areas of country Dalda have 11 depots in Pakistan. They are: 1. Karachi-1, 2. Karachi-2, 3. Sukkur, 4. Multan, 5. Lahore, 6. Wazirabad 7. Faisalabad 8. Gujaranwala, 9. Rawat 10. Mianawali and 11. Lawrencepur

6 PRICING COMPONENTS:-

Pricing is composed of: a) Invoice price b) Trade price (3% higher than invoice) c) Consumer or Retail price (4.5% to 5% higher than trade price)

PRICING STRATEGY MATRIX QUALITY LOW HIGH

HIGH

PRICE

LOW

PricingCompanies use different pricing strategies to position their brand effectively in the market. Dalda foods have set prices that are easily affordable by its target customers.

Price ranges in Premium A Segment:

Price for banaspati ghee ranges from 115-130/kg

Price for Cooking Oil ranges from 125-140/litre

ECONOMY PENETATION

SKIMMING

DALDA

PREMIUM

7Price ranges in Premium B Segment:

Price for banaspati ghee ranges from 100-115/kg

Price for Cooking Oil ranges from 110-125/litre

Price ranges in Mid Price A Segment:

Price for banaspati ghee ranges from 95-100/kg

Price for Cooking Oil ranges from 100-110/litre

Price ranges in Mid Price B Segment:

Price for banaspati ghee ranges from 85-95/kg

Price for Cooking Oil ranges from 90-100/litre

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Competitors

There are basically two types of competitors good and bad. Good competitors are those that don’t spoil the market. They make work in collaboration of others. For example if they have to increase the rates they take decision with the other premium brands so they don’t spoil the market of other brand. Dalda is one of those competitors.When we talk about the bad competitors these are the ones that spoil the market. For example the major competitor of Dalda Banaspati ghee in Multan region is “Sultan Banaspati” they take such decisions independently and the retailers take their product more because this earns them more profit also they don’t have sense that Dalda is a premium brand while Sultan is not. Also when they decrease their rates they take an independent decisions hence spoiling the market of our product.

Consumer Markets

There are three types of consumer markets that are involved in the sale of Dalda Banaspati. These are

Reseller Markets Government Markets International Markets

Reseller Markets

Different distributor firms buy the product from the company and sale it to the wholesalers as well as retailers and hence increasing the product’s sale volume.

Government Markets

Government Markets are involved in the sale of Dalda Banaspati e.g. in the form of utility stores. It also increases the sale of the poduct.

International Markets

Dalda Banaspati ghee is sold in several small foreign countries. This provides new horizons for the sale of the product.

9Public

The product has not much issues n terms of public. Just financial public and media public are involved. Banks finance the product for the import of raw material and issue the “LC”(Letter of Credit).Media Public help in the advertisement and promotion of the product e.g. “Makan Ericson”.

Macro Environmental Factors

These are the large factors that affect the micro environment. These include Demographic Environment Economic Environment Natural Environment Technological Environment Political Environment Cultural Environment

Few of them are discussed below that affect the product majorly

Demographic Environment

It’s the study of population in terms of size, location, age, occupation, gender and other statistics. The product is made for people of every age group, every occupation, gender and readily available at any location and is being used by the people.

Economic Environment

The economic environment consists of factors that affect consumer purchasing power and spending patterns. These affect the product in two ways

Changes in income Changing consumer spending patterns

As Dalda Banspati ghee is a premium brand it is maintaining the highest price in the market this price is being maintained on the basis of its high quality. The company is paying five thousand per ton sales tax an increase of thousand rupees in this will cause a 5 rupee per kg increase in the price. The buying patterns of significant middle class customers change immediately as this type of change occurs. So the company tries its best to keep the rates constant.

Natural Environment

The natural resources that are available and are being used as the raw material for manufacturing different products play an important role.

10As the raw material for the Dalda Banaspati is palm oil that is being imported from Malaysia and is a natural resource is available in the forms of large forests and it can be regenerated as it is a plant so its not a major issue for the company. On the other hand the polluting environment can cause serious impacts in future times.

Technological Environment

The technological environment changes rapidly. All the today’s common products were not available 100 years ago or even 30 years ago. The product production at Dalda Foods follow new technological principles latest machinery and hence give a pure, nutritious and readily available products to our customers.

Cultural Environment

The cultural environment s made up of institutions and other forces that affect a society’s basic values, perceptions, preferences and behaviors.The company is well in accordance with the cultural values.Our slogan is “Jahan Mamta Wahan Dalda”.All the products used in manufacturing the product are ‘halal’ and have no issues with the cultural values and the product is being well accepted by the customers.

Mid Price Segment

Mass Market

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Customer Driven Marketing strategy

Market Segmentation

Dividing a market into smaller groups of buyers distinct needs, characteristics, or behavior who might require separate products or marketing mixes.

Target Marketing

The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

Market Positioning

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Market Segmentation by Dalda Foods

Premium Segment

…………...

………………..

……………………….

Premium A Market:

DFL’s Brand:

Mid Price A: 500 K TonsDFL’s Brand: TulloCompetition: Kissan, Meezan, G.Sun , Sunny & Bulk Segment of Zaiqa and Sufi

Premium B Market: 900 K TonsDFL’s Brand: ManpasandCompetition: Sufi, Zaiqa & Kashmir

Premium A Market:300 K TonsDFL’s Brand: DaldaCompetition: Habib, Rafhan, Soya Supreme & imported brands

Mid Price B: 400 K TonsDFL’s Brand: PrideCompetition: Shan, Lateef, Data, Dastarkhuan, Handi & Shama

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Premium B Market:

DFL’s Brand:

Mid Price A Market:

DFL’s Brand:

Mid Price B Market:

DFLs Brand:

13Through this diversified product range and effective market segmentation Dalda is covering each and every segment of the market. As it is a food item so there is no specific market area that Dalda foods is focusing rather it is providing health and nutrition to all segments of the market in affordable prices. It is positioned most effectively in the market as compared to its competitors do.

Dalda Cooking Oil

Not only was Dalda the pioneer in banaspati but also keeping in mind the changing lifestyle of its consumers Dalda introduced cooking oil to the market.

Dalda Cooking Oil is a premium blend of canola, sunflower and soybean oil, which is then hygienically refined to perfection using Dalda’s state of the art plant and International Technology and Expertise. This process of refining is specially designed to preserve the natural goodness of each of the individual oils in the blend. Hence the optimum goodness of each canola, sunflower and soybean reaches the consumers.

Dalda Cooking Oil is 100% cholesterol free and contains Vitamin A and D together with Vitamin E which protects from skin and heart diseases. It also contains essential fatty acids, Omega 3 and 6 and natural antioxidants that boost the immune system of the body. Thus food cooked in Dalda Cooking Oil is not only delicious but also exceptionally nutritional.

Planta Cooking Oil

In its quest for innovation Dalda introduced Planta Cooking Oil for consumers who were reluctant to shift to cooking oil from desi ghee. Thus Planta Cooking Oil became the only cooking oil to contain the goodness of oil and the delectable taste of ghee. It is a blend of soybean, canola and sunflower oil and is 100% cholesterol free. It also contains Vitamins

14A and D. This makes food cooked in Planta Cooking Oil tasty as well as very healthy.

Dalda Canola Oil with Vitamin Power

Dalda also expanded its product range to include Dalda Canola Oil with Vitamin Power. Extracted from fresh canola seeds, Dalda Canola Oil with Vitamin Power not only provides the benefits of Canola oil but also additional nutrients to give consumers extra energy, superior health and great taste essential for a modern and demanding lifestyle.

It is these properties and the additional Vitamin Power in Dalda Canola Oil which make it a much superior product and an ideal choice for Canola oil consumers.

Dalda Olive Oil

Another novel product by Dalda is Dalda Olive Oil. Dalda Olive Oil is packaged and imported from Spain. Using its International Technology and Expertise, Dalda ensures that its olive oil is extracted from the purest and freshest hand picked olives from the fertile lands of Spain, which are then refined to perfection using the most advanced International Technology under stringent quality standards within Spain. Dalda Olive Oil is 100% cholesterol free and enriched with exceptional Shifa and health benefits of olives, and fortified with additional Vitamin A and E to provide its consumers’ life with the smile and sparkle that it deserves. Find out more about the benefits of Dalda Olive

15Oil.

Dalda Olive Oil is available in three variants Extra Virgin, Pure, and Pomace. The difference between the variants of Dalda Olive Oil is their acidity level, which affects mostly taste and not nutritional content.

Dalda Olive Oil Extra Virgin

Dalda Olive Oil Extra Virgin is from the first pressing of the olives and has a strong flavor and aroma with all natural vitamins. It is naturally enriched with vitamins and anti-oxidants which may help prevent against heart disease and cancer.

Dalda Olive Oil Pure

Dalda Olive Oil Pure is a blend of refined and virgin olive oil. It is refined using Dalda’s International Technology. It has a medium flavor and aroma and contains natural vitamins.

Dalda Olive Oil Pomace

Dalda Olive Oil Pomace is refined and filtered using Dalda’s International Technology. It has a light flavor and aroma. It has additional vitamin A as well as natural vitamins.

Manpasand

Manpasand Banaspati

Manpasand Banaspati is produced using the most advanced technology and fully automatic plant under stringent international quality and health standards. It is manufactured using similar plant/technology which is used to make Dalda.

Manpasand Banaspati with its granular texture; has a distinguished aroma and taste which

16enhances the flavor of the food to an unprecedented level.

Manpasand Banaspati is economical in use and enriched with Vitamins A & D to ensure healthy and great tasting food for your family.

Manpasand Cooking Oil

Manpasand Cooking Oil is produced using the world’s best vegetable oils on Pakistan’s most advanced plant under stringent international health and hygiene standards.

Manpasand Cooking Oil is a premium blend of Canola, Soybean and Cottonseed Oil. Manpasand Cooking Oil is best suited for all types of cooking, as it is economical in use and cholesterol free. It is enriched with Vitamins A and D, which provide your family the health and care they deserve.

PlacingThe Companies need to place their products effectively in the market for effective sales performance.

Dalda foods have their own distribution strategy. They have divided the shopkeepers into five major categories wholesalers, A, B, C and D and have specified the minimum SKU’s that they should posses.

AdvertisementThe Company does its Marketing itself. They don’t have any organization involved for marketing concerns. The advertisement is done by an advertisement organization “Makan Ericson”.

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